MRVE3

MRV Engenharia e Participações S.A. is a publicly traded company in the construction and real estate development sector, founded in 1979 in the city of Belo Horizonte, Minas Gerais, by Rubens Menin Teixeira de Souza, Mário Lúcio Pinheiro Menin and Vega Engenharia Ltda. Originally focused on the construction and development of residential projects in the state capital, the company gradually expanded its operations to other regions of the country starting in the 1990s, entering Americana (SP) in 1996 and, later, the South of Brazil, in Londrina and Curitiba, through dedicated subsidiaries. Throughout this process, it consolidated a relevant share in the Brazilian low-income housing market. In 2007, it obtained its registration as a publicly held company with the CVM and carried out its initial public offering, with its common shares, under ticker MRVE3, being traded on the then BM&FBOVESPA, now B3, in the Novo Mercado segment.

After the IPO, MRV Engenharia e Participações intensified its expansion with new fundraisings through a supplementary offering and a follow-on in 2009, which were directed mainly to land acquisition, development and construction of residential projects, as well as to reinforcing working capital. In 2009, it also began trading Level 1 American Depositary Receipts (ADRs) on the over-the-counter market in the United States, broadening foreign investors’ access to its capital. MRVE3 shares were included in the Bovespa Index (Ibovespa) in 2010, reflecting increased liquidity in the secondary market. Over the following years, the company sought gains in operational efficiency and product diversification, launching product lines aimed at income brackets above the initial focus of federal housing programs, while also evolving in sustainability practices, eventually joining B3’s Corporate Sustainability Index (ISE).

MRV’s business model is structured as an integrated housing platform, known as MRV&Co, which brings together different lines of business in low-income and middle-income housing, both in Brazil and abroad. Its core activity remains residential real estate development in Brazil, supported by a vertically integrated model that covers land identification and acquisition, project development, construction and sale of units. In 2024, real estate development accounted for around 94% of consolidated net operating revenue, highlighting its economic predominance within the group. Complementarily, MRV operates in the rental of residential properties developed for subsequent sale to institutional investors through the Luggo division in Brazil and the Resia subsidiary in the United States, and it also engages in the development and sale of urban lots through Urba Desenvolvimento Urbano.

MRV&Co’s operating segmentation is composed of four main pillars. The real estate development segment includes the development, construction and sale of residential properties of its own or third parties, including lines such as Sensia, aimed at the mid-market public with income of approximately 8 to 12 times the minimum wage, and its main focus on projects under the Minha Casa Minha Vida Program and other state and municipal housing programs. The Luggo division is responsible for projects designed specifically for residential rental in Brazil, with condominium management and bundled services, and a strategy of subsequent sale of the assets to investors or real estate funds. The U.S. subsidiary Resia develops, builds and manages apartment communities for rent in metropolitan regions of the United States, such as Texas, Georgia and Florida, also with a strategy of disposing of the assets to institutional investors or REITs after an occupancy period. Finally, the land development segment, concentrated in Urba, focuses on developing large areas into master-planned neighborhoods with complete urban infrastructure, for residential, commercial or industrial use.

From a geographical standpoint, MRV has broad presence across Brazil, operating in 22 states, including São Paulo, Minas Gerais, Rio de Janeiro, Bahia, Paraná, Rio Grande do Sul, Goiás, Pernambuco and Ceará, as well as the Federal District. This capillarity allows the company to benefit from different regional dynamics in demand for low- and middle-income housing. In many cases, its projects are associated with the Minha Casa Minha Vida Program, the main federal housing program, as well as state and municipal initiatives that enable financing and access to housing. Abroad, Resia ended 2024 operating in four metropolitan regions in the United States, with projects in cities in the states of Texas, Georgia and Florida, involving thousands of residential units at different stages of development, construction and completion, reinforcing the group’s multinational nature.

MRV’s customer base is highly fragmented, with no significant concentration in a single buyer, which is characteristic of residential development targeting individuals. There is no customer accounting for more than 10% of total net revenue, which reduces the risk of specific commercial dependence. In Brazil, products are mainly targeted at families with income between 2 and 12 times the minimum wage, covering both affordable projects tied to housing programs and mid-range projects under the Sensia brand. In the United States, Resia focuses on the so-called workforce market, made up of families with annual income of approximately US$ 35,000 to US$ 95,000, offering rental units in locations close to major urban centers. Urba, in turn, serves clients interested in urban lots in master-planned neighborhoods, while Luggo focuses on tenants seeking housing solutions with services, without the need to purchase the property.

MRV’s production process is characterized by standardization and mechanization at construction sites, with intensive use of concrete walls, aluminum formwork and pre-assembled installation kits. This approach aims to optimize cost control, reduce construction time and maintain technical uniformity across projects in different locations. The company combines its own workforce and specialized service providers, selected based on experience and technical capacity, adopting productivity-based compensation systems. Quality control is supported by certifications such as level A of the Brazilian Housing Quality and Productivity Program (PBQP-H) and ISO 9001, in force since 2001, as well as compliance with ABNT standards for the infrastructure and superstructure stages of construction. Operational risk management also includes a comprehensive insurance policy, covering construction phases, professional civil liability, post-delivery, multi-risk insurance for projects and insurance related to financing and employees.

MRV’s activities are subject to an extensive regulatory framework in Brazil, involving federal, state and municipal legislation on real estate development, public registries, land regularization, zoning, land use and occupancy, environment and historical and cultural heritage. For each project’s development, authorizations and permits are required from city halls, public works and environmental departments, the fire department and other public entities, including approval of architectural designs, building permits, environmental licenses, authorizations for vegetation suppression and earthmoving, as well as the occupancy permit (habite-se) at the end of construction. The company also complies with specific urban rental legislation for its residential leasing activities. Historically, MRV has obtained the authorizations necessary for its operations, although failure to comply with regulatory requirements may result in administrative, civil and criminal sanctions, as well as embargoes or suspensions of construction works.

In terms of corporate governance and sustainability, MRV Engenharia e Participações is listed on B3’s Novo Mercado segment, which includes companies with differentiated governance standards, such as capital composed only of common shares and additional transparency and minority shareholder protection requirements. The company is included in multiple Brazilian stock exchange indices, including Ibovespa, IBRX-100, the Real Estate Index (IMOB) and the Corporate Sustainability Index (ISE), evidencing the alignment of its risk management, social and environmental responsibility and governance practices with criteria assessed by the market. MRV also highlights the importance of qualified human capital, with a significant base of direct and indirect employees, retention policies and variable compensation programs, anchoring its long-term strategy in operational efficiency, disciplined capital allocation and profitability in its low- and middle-income housing businesses, both in Brazil and abroad, through its various subsidiaries and operating divisions.