MTRE3

Mitre Realty is a real estate developer focused on the city of São Paulo, controlled by the Mitre family, which has operated in the real estate development and construction sector since 1968. The company, whose MTRE3 shares are currently traded on B3, has built a track record of more than five decades in the São Paulo market, with strong specialization in residential projects. Starting in 2008, with Fabricio Mitre taking over as CEO, the company went through a process of management professionalization and accelerated growth, expanding its portfolio and consolidating a vertically integrated business model. In 2014, the creation of Mitre Vendas marked the internalization of the sales force, while in 2016 there was a strategic reorganization of product lines into segments differentiated by income bracket and positioning. In 2019, Mitre became a corporation (sociedade por ações), and in February 2020 it carried out its initial public offering, listing in B3’s Novo Mercado segment, which is geared toward issuers with more demanding corporate governance practices.

Mitre Realty’s main activity is the development and sale of residential properties, operating in a single operating segment from an accounting standpoint. Its business model covers everything from land sourcing and acquisition to project development, construction of projects and sales of units, with strong integration between the different stages of the real estate cycle. The company’s net revenue derives entirely from the development and sale of properties in Brazil, with 100% of revenue attributed to the domestic market. In 2024, Mitre recorded net operating revenue of approximately R$ 1.18 billion, with profit for the year also concentrated in this same segment, reflecting a focused business profile with no meaningful diversification into other lines of business.

Mitre Realty’s projects are aimed at different income brackets within the São Paulo market, with four main product lines. The Origem line represents the entry point of the portfolio, targeting lower-middle-income customers, with compact and functional units. The Raízes line serves the middle-income segment, offering slightly larger apartments. The Haus Mitre line is geared toward the upper-middle and high-income segments, with an emphasis on comfort, locations in areas with established infrastructure and architectural and landscape design features. At the top of the pyramid, the Mitre Exclusive Collection (MEC) includes ultra high-end projects, with differentiators such as hospitality services inspired by international developments. The company prioritizes products located near transportation corridors, especially subway stations, in neighborhoods with full infrastructure and qualified demand for contemporary residential properties.

Mitre’s production process is structured in three major stages: origination, project development and approval, and construction. Land origination is conducted by the New Business area, which monitors supply and demand in various São Paulo neighborhoods, excluding peripheral and low-income regions in which the company does not operate. Land acquisition follows principles of agility, conservative economic assumptions and mitigation of legal, technical and environmental risks, with extensive use of land swaps (permuta física) and contractual mechanisms that condition payments on project approval. The development and licensing stage involves designing the real estate product, defining unit layouts, common areas and architectural concepts, in partnership with specialized architecture, interior design and landscaping firms, as well as obtaining the approvals and licenses required by public authorities. In construction, Mitre acts as manager and coordinator of the works, hiring specialized subcontractors and approved suppliers, with centralized planning, cost control and standardized processes.

The company maintains a robust landbank, estimated in billions of reais in potential gross sales value (VGV), entirely located in the city of São Paulo. A relevant portion of this land has payments tied to the final approval of projects by the São Paulo City Hall, which helps reduce cash exposure and regulatory risks. The construction cycle usually starts between four and eight months after commercial launch, with average timelines of 24 to 32 months until delivery to buyers. The planning, procurement and engineering structure seeks to capture economies of scale in purchasing, ensure construction quality and maintain adherence to physical and financial schedules, which is reinforced by certifications such as ISO 9001 and ISO 14001, as well as the Aqua seal, associated with quality management, environment and use of resources.

On the commercial front, product distribution is carried out through Mitre Vendas, its in-house sales operation inaugurated in 2014 which, as of 2023, became responsible for 100% of unit sales. This internal structure allows the company to specialize brokers in Mitre products, bring market intelligence closer to the sales operation and feed a process of continuous improvement based on direct customer feedback and real-time reading of demand. The customer base is fragmented, with no relevant concentration: no individual buyer accounted for more than 10% of net revenue in 2024, which reduces dependence on large contracts. The company also develops partnerships with financial institutions for construction financing and with institutional investors in equity structures or financial swaps for specific projects, which helps diversify capital sources and spread risk.

Mitre Realty’s geographical presence is highly concentrated in the city of São Paulo, where all projects and land under development are located. This regional focus strategy allows it to deepen its knowledge of the local market, urban planning regulations, neighborhood dynamics and demand profile, while simplifying operational management. The company operates in areas with established infrastructure, close to public transportation and services, and avoids segments dependent on government-subsidized credit programs, focusing on income brackets with greater resilience and scale in the context of the São Paulo metropolis. From a regulatory standpoint, its activity is subject to federal legislation governing real estate development, condominium buildings, purchase and sale contracts and consumer relations, in addition to municipal regulations on land use and occupancy, building codes and master plans, which directly influence the constructive potential of land.

In terms of corporate governance and ESG practices, Mitre Realty is listed on B3’s Novo Mercado, with an A-category issuer registration at the CVM, and a board of directors structure expanded compared with the pre-IPO phase. The company has implemented a compliance and internal controls area, adopts long-term incentive programs based on stock options and maintains a partnership program, Mitre Partners, which allows executives and selected talent to become shareholders, strengthening alignment between management and shareholders. On the environmental front, the company holds ISO 14001 and Aqua certifications, which attest to environmental management processes and rational use of resources, including proper waste disposal and water resource management. In 2024, MTRE3 shares were included in B3’s Corporate Sustainability Index (ISE), and the company was announced as a future constituent of the Carbon Efficient Index (ICO2), signaling market recognition of its sustainability practices and transparency in emissions management.

Beyond operational performance and governance practices, Mitre Realty develops organizational culture and people management initiatives designed to support its long-term strategy. The company emphasizes values such as meritocracy, ethics, ownership mindset, collaboration and focus on results, associated with talent development and retention programs. Technological tools such as the Mitre Experience app and the Ju Mitre chatbot complement the relationship with customers, expanding service channels and digital interaction. The creation of Mitre Capital, focused on monetizing the landbank through partnerships and specific structures, adds a capital management layer over the land inventory. Together, these elements form the framework through which Mitre Realty conducts its residential development operations in São Paulo, generating revenue from the development and sale of projects across different income brackets, with MTRE3 shares part of the universe of real estate companies listed on B3.