IGTI3

Iguatemi S.A. is a publicly traded 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 trade 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 went through 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 sector, 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 operational 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 sector with the acquisition of assets from Construtora Alfredo Matias S.A., which included an 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 stakes in existing developments. The company has also engaged in successive capital raisings via share offerings and debenture issuances to finance expansion, acquisitions and projects for 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 the commercial operation, development, management and services associated with mixed-use developments. Its main revenues come from equity interests in shopping centers and from the provision of management, advisory and economic, financial and tax consulting services. As of December 31, 2024, the company held interests 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 rental and services revenue reached R$ 1,236,345 thousand in 2024, and 100% of reported net income derives 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 developments, provide management services for shopping centers and mixed-use real estate complexes, carry out the purchase and sale of commercial real estate and operate or lease areas for rotating parking lots. In addition, they act as intermediaries in leasing promotional spaces in common areas, in the preparation of promotion and merchandising studies and projects, and in the management of stores and sale of goods through partnerships, joint ventures and franchises, especially linked to 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 shopping centers are predominantly geared toward high-income customers, focusing on classes A and B, and are located in regions of 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 interest in Shopping Rio Sul. In total, the company has 760,083 m² of GLA in the developments 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 services contracts among tenants and partners.

In addition to 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 operated as a sort of incubator for international luxury brands in Brazil, offering comprehensive 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 e-commerce marketplace with Iguatemi’s brand curation, bringing together exclusive brands and seeking to integrate inventories and prices between the digital platform and physical stores. The company is compensated on a variable basis according to sales made on the platform. In parallel, Iguatemi manages stores and sells goods 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 developments. The Iguatemi One loyalty program complements this strategy by 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 revitalizations and expansions to maintain the attractiveness of the developments. In shopping center 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 lots, 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, condominiums and environmental licensing. The company reports that, over the past ten years, it has not faced insurmountable problems in obtaining the public authorizations necessary for the implementation and operation of its developments. The shopping centers require installation and operation licenses and, in some cases, authorizations for earthmoving, removal or pruning of vegetation, subject to conditions such as environmental offsetting measures. The company states that it holds the operating licenses and thermoelectric generation licenses where applicable and that it seeks to comply with the 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 mentions that its developments 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 temporary interruption of activities.

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