LPSB3

Lopes Brasil, traded on B3 under the ticker LPSB3, traces its origins back to 1935, when Francisco Lopes began brokering real estate in the city of São Paulo. From the outset, the company focused on real estate consulting and brokerage, following the urban development of the São Paulo capital and the expansion of key commercial hubs such as Avenida Paulista, Faria Lima, Marginal Pinheiros and Berrini. From the 1950s to the 1980s, the company adopted pioneering practices for marketing and selling developments, using television channels, on-site sales stands at the projects themselves, specialized catalogs and physical scale models. The heart-shaped figurative logo, created during this period, consolidated the company’s identity in the real estate market. From the 1990s onwards, the company helped popularize concepts such as flats, condo clubs and duplex units, strengthening its presence in the more dynamic residential and commercial segments in São Paulo.

The current structure of LPS Brasil S.A., known as Lopes Brasil, results from a corporate reorganization carried out in 2006, which preceded its IPO on the then BM&FBOVESPA, now B3. The IPO in December 2006 marked the beginning of an expansion cycle via acquisitions, especially between 2007 and 2009, when the company bought several firms focused on the primary real estate market. In 2007, it entered into a joint venture with Banco Itaú to create CrediPronto, focused on promoting real estate financing, adding a complementary revenue stream to brokerage. In 2010, a first follow-on provided funds to continue geographic and sector diversification, including a more structured entry into the secondary real estate market. Between 2010 and 2012, additional brokerage companies were acquired and later integrated into a single sales platform, reinforcing the network model under the Lopes brand.

Lopes Brasil’s main activities are concentrated on providing services to the Brazilian real estate market, focusing on brokering the purchase, sale, swap and lease of properties, managing its own and third-party assets, and participating in other companies. The business model is based on three operating segments: brokerage of new and used properties, real estate franchising, and promotion of financing through CrediPronto. In 2024, net operating revenue totaled around R$ 192 million, of which approximately 55% came from brokerage, 15% from franchises and 30% from financing promotion. The main source of revenue is commission on the general sales value (VGV) of the properties brokered, both in own operations and in franchise operations, while in the real estate credit segment compensation comes from commissions on the financed volume and profit sharing from the portfolio originated in the joint venture with Banco Itaú.

The real estate brokerage segment remains the core of Lopes Brasil’s business, covering new properties (primary market) and used properties (secondary market). Through its subsidiaries, the company offers full consulting services to developers, including land use and development feasibility studies, market intelligence, product definition, commercial planning, marketing strategies and execution of unit sales. The operation involves a large business team, with thousands of brokers associated with the group companies, responsible for prospecting buyers, conducting visits, negotiating terms and supporting the formalization of transactions. The operating model prioritizes speed in selling new launches, a key factor for developers’ cash flow, and the use of both physical and digital channels, especially the Portal Lopes website, which in recent years has recorded more than 12 million annual sessions and generates hundreds of thousands of leads per year.

The franchise segment emerged in response to the need to make the structure lighter and more scalable after an acquisition cycle that preceded the economic and political crisis of the 2010s. From 2016 onward, the company migrated part of its operations to the franchise model, divesting some companies and attracting managers interested in joining the Rede Lopes network as franchisees. In 2024, this network had 170 franchised stores and 15 company-owned stores, integrated into a single system for sharing properties and clients. The franchises operate in both the primary and secondary markets and have access to a base of approximately 220,000 listed properties. Lopes Brasil’s revenue in this segment comes from royalties calculated on the VGV brokered by the franchisees, while technological integration and information sharing allow different network members to participate in the same transaction, splitting commissions according to the role played in sourcing the property and serving the buyer.

Real estate financing promotion is carried out through CrediPronto, a joint venture in which Lopes Brasil and Banco Itaú each hold 50% of the shares. Created in 2007, this operation aims to originate mortgage loans for the purchase of new and used properties, using mainly Lopes’s network of company-owned and franchised stores and partnerships with other real estate agencies and developers. CrediPronto promotes the offering of financing for developments that do not have agreements with commercial banks, integrating the brokerage and credit process into a one stop shop concept. Since its creation, the joint venture has accumulated tens of thousands of contracts and a significant financed volume, with credit analysis and contract issuance workflows designed to reduce processing time and operating costs. In 2024, the financing promotion segment accounted for around 30% of the company’s consolidated net operating revenue, with a significant contribution to net income.

Geographically, Lopes Brasil has evolved from operations concentrated in São Paulo to a presence across most of Brazil. The first expansions took place in Rio de Janeiro, especially the city of Rio de Janeiro, and then into the capitals and metropolitan regions of several states, through acquisitions and, more recently, the franchise model. As of December 31, 2024, the company was present in 23 Brazilian states, with 15 company-owned stores and 170 franchises operating under different regional brands integrated into the Lopes brand. The digital platform, especially Portal Lopes, complements this physical reach, acting as a channel for lead generation and as a property showcase for local operations. The network of associated brokers and those linked to franchises totals more than ten thousand professionals across the country, reinforcing the company’s ability to cover multiple regional markets.

Lopes Brasil’s activities are influenced by a regulatory environment specific to the real estate and real estate brokerage market. The company and its subsidiaries must be registered with the Regional Real Estate Broker Councils (CRECI) in each jurisdiction where they operate, meeting the requirements of Law No. 6,530/78 and the resolutions of the Federal Real Estate Broker Council (COFECI), which govern the profession and the obligations of brokers and real estate agencies. Operations are also affected by rules from the Civil Code, the Public Records Law and the Real Estate Development Law, which establish requirements for contracts, property registration, launches and developers’ obligations. Mortgage credit policy, regulated by the Sistema Financeiro da Habitação (SFH – Housing Finance System) and the Sistema Financeiro Imobiliário (SFI – Real Estate Finance System), indirectly affects the volume of brokerage and financing transactions originated. In social and environmental terms, the company states that its activities do not generate significant environmental impacts and that its practices focus on social and governance topics such as promoting diversity, accessibility, respect for human rights, codes of ethics, whistleblowing channels and workplace health, safety and ergonomics protocols.

Lopes Brasil’s position on B3, with common shares LPSB3, reflects a business model centered on integrated real estate services, in which revenue generation depends on the dynamics of the residential and commercial property markets and the availability of mortgage credit. The recent strategy combines investments in technology to improve the digital experience of searching for and negotiating properties, expansion and careful management of the franchise network, maintenance of relationships with developers of different sizes and strengthening of the joint operation with Banco Itaú at CrediPronto. The combination of broad physical presence, property database, broker network and digital platform aims to create a brokerage ecosystem that operates in both new launches and completed properties, with multiple revenue sources tied to brokerage and financing origination.