Lopes Brasil, traded on B3 under the ticker LPSB3, traces its origins back to 1935, when Francisco Lopes began real estate brokerage activities in the city of São Paulo. From the outset, the company focused its operations 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 in the promotion and sale of developments, using television channels, on-site sales stands, specialized catalogs and physical scale models. The figurative heart-shaped brand created in 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, is the result of 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 start of an expansion cycle via acquisitions, especially between 2007 and 2009, when the company acquired 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 line to brokerage. In 2010, a first follow-on offering provided funds to continue geographic and sector diversification, including a more structured entry into the secondary real estate market. Between 2010 and 2012, other 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 centered on providing services to the Brazilian real estate market, focusing on intermediation of the purchase, sale, exchange and rental of properties, management of its own and third-party assets, and equity interests in other companies. Its business model is based on three operating segments: brokerage of new and used properties, real estate franchises 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 gross sales value (VGV) of the properties brokered, both in owned operations and in franchised ones, while in the real estate credit segment compensation comes from commissions on the financed volume and profit sharing on 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 project 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’s 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 relevant factor for developers’ cash flow, and the use of physical and digital channels, particularly the Portal Lopes website, which has recorded more than 12 million annual sessions in recent years and generates hundreds of thousands of leads per year.

The franchise segment emerged as a 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 onwards, the company migrated part of its operations to the franchise model, divesting some companies and attracting managers interested in joining the Rede Lopes network in the form of franchises. In 2024, this network had 170 franchised stores and 15 owned stores, integrated into a single system for sharing properties and clients. The franchises operate in both the primary and secondary markets, with 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 members of the network to participate in the same transaction, splitting commissions according to the role played in sourcing the property and serving the buyer.

The real estate financing promotion activities are carried out by 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 real estate credit for the acquisition of new and used properties, mainly using Lopes’s network of owned and franchised stores, as well as partnerships with other real estate agencies and developers. CrediPronto promotes the offer 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 lead times 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 an operation concentrated in São Paulo to a presence in much of the national territory. The first expansions were into Rio de Janeiro, particularly the city of Rio, and then into 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 owned stores and 170 franchises operating under different regional brands integrated into the Lopes brand. The digital platform, especially the Portal Lopes website, complements this physical reach, serving as a lead generation channel and property showcase for local operations. The network of associated brokers and brokers linked to the franchises totals more than ten thousand professionals distributed across the country, strengthening 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 brokerage markets. The company and its subsidiaries must be registered with the Regional Real Estate Broker Councils (CRECI) in each jurisdiction where they operate, complying with the requirements of Law No. 6,530/78 and the resolutions of the Federal Council of Real Estate Brokers (COFECI), which regulate the profession and the obligations of brokers and real estate agencies. Operations are also affected by the Civil Code, the Public Records Law and the Real Estate Development Law, which establish requirements for contracts, property registration, launches and developers’ duties. Real estate credit policy, regulated by the Housing Finance System (SFH) and the Real Estate Finance System (SFI), indirectly affects the volume of brokerage business and originated financing. In socio-environmental terms, the company states that its activities do not generate significant environmental impacts and that its practices focus on social and governance issues such as promoting diversity, accessibility, respect for human rights, codes of ethics, whistleblowing channels and health, safety and ergonomics protocols in the workplace.

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 real estate credit. The recent strategy combines technology investments to improve the digital experience in property search and negotiation, 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 seeks to create an intermediation ecosystem that operates in both new launches and completed properties, with multiple revenue streams associated with brokerage and financing origination.