IGTI11 Iguatemi

Iguatemi S.A. is a publicly held company, registered with the CVM under No. 00867-2, with shares traded on B3 S.A. - Brasil, Bolsa, Balcão under the tickers IGTI3, IGTI4 and IGTI11, in the form of common shares, preferred shares and units. Its origins date back to the beginning of the last century in the state of Ceará, in textile retail activities, which evolved with the creation of Companhia Imobiliária Jereissati in 1946 and, later, with the acquisition of Metalúrgica La Fonte in 1960. Over the following decades, the company underwent corporate restructurings and a change of focus, leaving the industrial lock manufacturing activity in 1995 and consolidating itself as a holding company with a strong presence in the shopping center segment through the then Jereissati Participações S.A. This movement culminated in the inclusion of the commercial operation and planning of shopping centers in its corporate purpose in 1996, through its subsidiary Iguatemi Empresa de Shopping Centers S.A. (IESC). In 2007, IESC carried out its initial public offering, becoming the first shopping center company listed on the Brazilian stock exchange.

The operating core of the group is Iguatemi Empresa de Shopping Centers S.A., originally incorporated in 1979 as La Fonte Empresa de Shopping Centers S.A. and converted into a corporation in 1983. Founded by Carlos Francisco Ribeiro Jereissati, IESC entered the segment with the acquisition of assets from Construtora Alfredo Matias S.A., which included an ownership interest in Iguatemi São Paulo, considered the first shopping center in Brazil. Since then, the company has adopted a growth strategy that combines greenfield projects – such as Iguatemi Campinas, Iguatemi Porto Alegre, Praia de Belas, Iguatemi Caxias do Sul, Iguatemi São Carlos and others – with acquisitions and increases in ownership stakes in existing projects. The company has also been involved in successive capital raises through share offerings and debenture issuances to finance expansion, acquisitions and projects aimed at revitalization and growth of its gross leasable area (GLA).

According to its Reference Form, Iguatemi currently defines itself as a full-service shopping center company, focused on commercial operation, development, management and services associated with mixed-use projects. Its main revenues come from ownership interests in shopping centers and from providing management, advisory and economic, financial and tax consulting services. As of December 31, 2024, the company held stakes in 14 shopping centers, all under its management, in addition to 2 premium outlets and 4 office towers, totaling approximately 753 thousand m² of average total GLA, with gross rental and services revenue of R$ 1,477,074 thousand in the 2024 fiscal year. Consolidated net revenue from rentals and services reached R$ 1,236,345 thousand in 2024, and 100% of reported net income comes from this operating segment, highlighting the concentration of the business in the real estate operation of shopping centers.

Iguatemi’s business model combines several fronts of activity within the shopping center ecosystem. The company and its subsidiaries commercially operate and plan new projects, provide management services for shopping malls and mixed-use real estate complexes, buy and sell commercial properties, and operate or lease areas for rotating parking. In addition, they act as intermediaries in leasing promotional spaces in common areas, in preparing promotional and merchandising studies and projects, and in managing stores and selling merchandise through partnerships, joint ventures and franchises, especially in the luxury segment. The company also develops mixed-use projects around its shopping centers, such as office towers, seeking synergies that increase visitor traffic and tenant sales, resulting in higher rental and services revenue.

Iguatemi’s malls are predominantly aimed at high-income consumers, focusing on classes A and B, and are located in regions with high purchasing power in the Southeast, South and Center-West regions. The company is present in São Paulo, Rio de Janeiro, the Federal District, Rio Grande do Sul and Santa Catarina. In São Paulo, its main market, it concentrates 10 shopping centers/outlets and 3 towers, with 370,005 m² of owned GLA. In Rio Grande do Sul, it holds 3 shopping centers and 1 tower, with 69,266 m² of owned GLA; in the Federal District, it owns Iguatemi Brasília; in Santa Catarina, I Fashion Outlet Santa Catarina; and in Rio de Janeiro, an ownership interest in Shopping Rio Sul. In total, the company has 760,083 m² of GLA in the projects in its portfolio, with 480,957 m² of owned GLA, considering shopping centers, outlets, power centers and office towers. There are no individual customers accounting for more than 10% of total net revenue, which indicates a broad dispersion of lease and service contracts across tenants and partners.

Beyond traditional real estate operation, Iguatemi has expanded its model into physical and online retail through the I-Retail operation and the Iguatemi 365 digital platform. Since 2009, I-Retail has acted as a kind of incubator for international luxury brands in Brazil, offering full management of local operations in areas such as operations, financial services, human resources, IT, retail, marketing and merchandising. Iguatemi 365, launched in 2019, is a premium marketplace e-commerce platform curated by the Iguatemi brand, bringing together exclusive brands and seeking to integrate inventories and prices between the digital platform and physical stores. The company is remunerated on a variable basis according to sales made on the platform. In parallel, Iguatemi manages stores and sells merchandise in partnership with international brands such as Birkenstock, Comme des Garçons, Christian Louboutin, Golden Goose, Goyard, Loewe, Missoni, Polo Ralph Lauren and Villebrequin, among others, reinforcing the fashion and lifestyle positioning of its projects. The Iguatemi One loyalty program complements this strategy, offering benefits and exclusive experiences to its most engaged customers.

From an operational standpoint, Iguatemi describes structured processes for planning, developing and managing its assets. In the shopping center development phase, the company prepares detailed business plans, defines size, style and rental price range per square meter, hires architects, engineers and project managers, and conducts refurbishments and expansions to maintain the attractiveness of its assets. In mall management, it carries out financial, legal, commercial and operational management, as well as strategic planning for each asset, taking into account competition, customer profile, location and stage of maturity. In the operation of rotating parking facilities, the company obtains additional revenue both by leasing the areas to specialized operators and by directly operating the service in some cases. It also monetizes spaces for merchandising and promotional activities, with advertising panels, kiosks, stands and events, used by corporate clients for product launches and testing.

Iguatemi’s activities are subject to a broad set of federal, state and municipal regulations related to construction, zoning, land use, historical heritage, leasing, condominium and environmental licensing. The company reports that, over the last ten years, it has not faced insurmountable problems in obtaining the public authorizations required for the implementation and operation of its projects. Shopping centers require installation and operating licenses and, in some cases, authorizations for earthmoving and removal or pruning of vegetation, subject to conditions such as environmental compensatory measures. The company states that it holds the operating licenses and thermoelectric generation licenses where applicable and that it seeks to comply with such conditions. Some assets are located in areas classified by CETESB as rehabilitated for commercial use, due to the previous existence of gas stations, which illustrates the need for environmental risk management. In addition, the company notes that its projects are insured against property damage and loss of profits, although there is a risk of events not fully covered by the policies, which could lead to the temporary suspension of activities.

For investors analyzing the IGTI3, IGTI4 and IGTI11 shares on B3, Iguatemi thus presents itself as a real estate company focused on operating shopping centers, outlets and office towers, with strong exposure to high-income retail and cities with higher purchasing power in the country. Its track record includes growth in owned GLA via acquisitions, development of greenfield projects, expansions and increases in ownership stakes in high-quality assets, as well as digital initiatives and proprietary retail operations that complement rental- and services-based revenue generation. All these elements are anchored in a regulatory framework typical of large-scale real estate projects in Brazil, with a continuous need to manage licenses, lease contracts and relationships with various stakeholders, including tenants, consumers, public authorities and investors in the capital markets.