São Carlos Empreendimentos e Participações S.A. is a publicly traded Brazilian company founded on October 10, 1985, with operations focused on investment, management and economic exploitation of commercial real estate. Originally conceived as a subsidiary of Lojas Americanas S.A., it began operations at the end of 1989, dedicated to the development and management of shopping centers to support the expansion of the retail chain into the country’s interior. In 1998, it received Lojas Americanas’ real estate assets through a capital increase, in a “dropdown” transaction that transferred street-front stores, distribution centers, office buildings, vacant properties and land to what was then the real estate subsidiary. The following year, a capital reduction at Lojas Americanas structurally separated the businesses, turning São Carlos into an independent company, with shares listed on what was then Bovespa and its own portfolio of real estate and financial assets, shifting its core focus to the investment and management of commercial properties. The company’s shares, traded on B3 under the ticker SCAR3, are part of the universe of publicly listed real estate companies in Brazil.

Throughout the 2000s, São Carlos consolidated a business model centered on the acquisition, active management and sale of commercial properties, with an emphasis on high-standard office buildings. In 2006, the company joined B3’s Novo Mercado and carried out a public offering of shares that strengthened its investment capacity. The portfolio was expanded mainly via acquisitions of high-grade office buildings in strategic locations in the São Paulo and Rio de Janeiro markets, reaching, in 2008, 48 properties valued at around R$ 1.8 billion, with a predominance of corporate assets. In 2011, the strategy was broadened with an entry into convenience centers through its subsidiary Best Center, diversifying the revenue base toward convenience retail, still with a majority weight of corporate buildings in the value mix. In the following decade, the company continued to recycle its portfolio, making relevant acquisitions, such as the EZ Towers – Torre A building in São Paulo, and disposing of assets deemed mature in order to finance new opportunities.

The business model of São Carlos Empreendimentos e Participações is structured in successive cycles of acquisition, development/management and eventual sale of properties. In the Office segment, the company seeks to acquire commercial buildings with operational or physical inefficiencies, such as the need for retrofit, modernization or improvement in occupancy rates, in regions with strong corporate demand. After acquisition, active management actions are implemented – retrofit, technological and aesthetic upgrades, review of tenant mix, reduction of vacancy, optimization of common area costs and capture of ancillary revenues – with the aim of increasing rental revenue per square meter and enhancing the value of the asset. Once the appreciation potential is achieved, the property may be sold, allowing the realization of capital gains and the recycling of capital into new investments. In the Best Center segment, focused on convenience centers and street-front stores, the company operates across the entire chain: land acquisition, project development, unit leasing and ongoing operational management of the centers.

The current portfolio of São Carlos is essentially segmented into two real estate platforms: Office and Best Center. As of December 31, 2024, the company held 75 properties, consisting of 18 corporate buildings and 57 convenience retail assets, including land, street-front stores and centers. Total gross leasable area amounted to 364,600 m², distributed into 248,100 m² of offices and 116,400 m² of retail. In value, the portfolio reached approximately R$ 3.5 billion, of which the Office segment accounted for around R$ 2.7 billion and Best Center assets totaled approximately R$ 829.8 million. In recent years, the company also tested the residential-for-rent segment through its subsidiary SC Living, but in 2024 it decided to discontinue this line with the sale of the GO850 project, reinforcing its focus on the corporate and convenience segments.

São Carlos’ revenue generation derives mainly from property rentals and the provision of services related to project management. In 2024, net revenue totaled R$ 178.6 million, with around 65% coming from the Office segment, 33% from the Best Center platform and 2% from SC Living, then in the process of discontinuation. The activities described in the corporate purpose include management of real estate projects owned by the company or third parties, purchase and sale of residential and commercial properties, leasing of real estate, operation of rotating parking lots, real estate consulting and management of real estate investment funds, in addition to holding equity interests in other companies. This scope allows the company to combine recurring rental income with occasional gains from asset sales, maintaining flexibility to adjust capital allocation according to market conditions in the office and convenience retail segments.

Geographically, São Carlos’ operations are concentrated mainly in the states of São Paulo and Rio de Janeiro, with a focus on regions with higher economic density and demand for corporate and commercial space. In the office market, the company directs investments to class A standard buildings and large corporate floor plates in established business districts, such as the Avenida Paulista area, the Faria Lima and Chucri Zaidan corridors in São Paulo, and central and South Zone areas in Rio de Janeiro. The company also invests in convenience centers and street-front stores in urban regions with high consumption potential, serving primarily large national retail chains. All of the company’s revenue is generated in Brazil, with no material operational exposure to foreign markets, and there is no concentration of individual clients accounting for more than 10% of net rental revenue.

From a regulatory standpoint, São Carlos is subject to urban planning, environmental and zoning regulations in the municipalities where it operates, in addition to federal and state laws related to construction, real estate development and commercial leasing. Property acquisition and development require approvals from city halls and environmental agencies, including project review, building permits, regularization of improvements and occupancy permits (habite-se), as well as interaction with power, water and telecom utilities. The company adopts documentary and environmental due diligence procedures before acquiring or developing assets, in order to mitigate risks related to regulatory liabilities and public authority approvals. There is no dependence on patents, trademarks, special licenses, concessions or royalty contracts for the development of its real estate activities, and the company states that it does not make financial contributions to political parties, candidates or lobbying activities in public policy.

On environmental, social and governance matters, São Carlos Empreendimentos e Participações stands out for incorporating sustainability practices into its portfolio management, especially through retrofits of existing buildings. The company seeks full compliance with applicable environmental legislation and verifies the compliance of properties prior to acquisition, including any liabilities inherited from previous owners. Environmentally, it maintains projects with international sustainability certifications, such as LEED O+M Platinum for the City Tower and EZ Towers – Torre A buildings, and LEED Silver for a specific set within the same asset, in addition to Guiaderodas Gold and Fitwell certifications related to accessibility, health and occupant well-being. It has also implemented the use of International Renewable Energy Certificates (I-REC) at a project in Campinas, signaling the consumption of energy from renewable sources. Although it does not yet publish a dedicated sustainability report or greenhouse gas emissions inventory, it discloses ESG information in its quarterly releases and has been gradually expanding the monitoring of environmental and social indicators, as part of an evolving governance and transparency process.

In the social and labor sphere, the company states that it complies with Brazilian labor laws and requires the same from its suppliers, in addition to carrying out occasional social initiatives such as food, clothing and school supply drives for donation to vulnerable populations. In governance, its presence on B3’s Novo Mercado and the trading of SCAR3 shares entail additional commitments to transparency, minority shareholder protection and sound corporate practices, which align with its long-term strategy based on active management of real estate assets and disciplined recycling of its portfolio of office buildings and convenience centers.