TEND3

Construtora Tenda S.A. is a Brazilian real estate developer focused on low-income housing, with common shares traded on B3 under the ticker TEND3. Founded in 1993 in Belo Horizonte, it began operations in 1994 and, over the following decade, gradually expanded into other regions of the country. In 1999 it began operating in São Paulo and, in 2006, started operations in Rio de Janeiro. The expansion gained momentum in 2007, when the company entered new metropolitan regions, including Salvador, Porto Alegre, Goiânia, Brasília and Vitória, and carried out its initial public offering, listing on Bovespa with an offering of 67 million shares. The company’s corporate history includes a period as a wholly owned subsidiary of Gafisa between 2009 and 2017, when its shares ceased to be traded on B3 and, subsequently, a return to the market as an independent company listed on the Novo Mercado.

Construtora Tenda’s business model is oriented toward the development and sale of residential units aimed at the low-income segment, with the majority of projects falling under the Minha Casa Minha Vida housing program. The company operates mainly in the development and sale of stand-alone units under the Tenda and Alea brands, offering products targeted at families with a monthly household income of up to approximately R$ 8,600.00. Operations are organized under a single operating segment, with revenue substantially originating from residential real estate development activities. In 2024, the company recorded net operating revenue of more than R$ 3.2 billion, with positive net income, reflecting the maturation of its model focused on standardized construction, commercial discipline, and integration with subsidized housing finance.

Starting in 2012, the company carried out a significant restructuring, temporarily halting new launches in order to address legacy projects and develop a new business model. This model, consolidated and later refined in 2021 and 2022, is based on operational pillars focused on efficiency and risk mitigation. The “contracted launch” concept establishes that new projects are only brought to market after formal approval by the financial institutions qualified under Minha Casa Minha Vida and registration of the development’s legal documentation, thereby reducing financing, licensing, and approval risks. The “assigned sale” model conditions the start of sales on the buyer’s prior credit approval by the financing bank, which shortens the operating cycle, reduces cancellations, and lowers working capital exposure. This is complemented by a sales strategy concentrated in company-owned stores and regional partners, and by an industrialized construction method based on concrete walls with aluminum forms, which enables greater standardization, productivity, and cost control.

Construtora Tenda’s products consist predominantly of two-bedroom apartments, with private areas of around 40 square meters, within projects aimed at income brackets 1, 2, and 3 of the Minha Casa Minha Vida program. The company works with standardized typologies, operating essentially with two product “SKUs”: buildings of up to four floors without elevators and buildings with more than four floors equipped with one or more elevators. This standardization supports economies of scale, project replication across different locations, and simplification of the production process, while allowing for specific adaptations such as balconies and garden units, depending on each project’s positioning. Construction is carried out using concrete walls molded in aluminum forms, a model that, together with a structured procurement and planning system, is designed to maintain tight cost control even in scenarios of inflationary pressure on materials and services, in addition to allowing work to begin only when the project has already reached a high level of sales and mortgage assignments.

The company’s commercial activities combine proprietary and third-party channels, with a strong physical presence at points of sale and integration with digital channels. Tenda operates its own stores and company-funded sales points for partner teams, which concentrate the sale of all products in a given region, seeking to leverage brand recognition and in-depth portfolio knowledge by internal teams. Marketing campaigns are planned in advance and launched after registration of the development’s legal documentation, in compliance with legislation, using traditional media such as newspapers, television, direct mail and flyers, as well as telemarketing structures and an online presence. Buyer financing is largely granted through the Minha Casa Minha Vida program, mainly via Caixa Econômica Federal and Banco do Brasil, with the buyer paying part of the price to the developer up to delivery of the property and the balance being financed by financial institutions under terms compatible with the target income level.

Geographically, Construtora Tenda concentrates its operations in large metropolitan regions, maintaining activities in ten urban areas: São Paulo and Campinas, in the state of São Paulo, Salvador, Rio de Janeiro, Porto Alegre, Fortaleza, Goiânia, Recife, Curitiba, and Belo Horizonte. The company reports nationwide operations, but with an emphasis on urban centers where it sees recurring demand for low-income housing and the possibility of operating with a continuous cycle of launches and construction. The Northeast region is highlighted by the company itself as its main market, in which it believes it holds a leading competitive position in the economic housing segment. All reported revenues originate in Brazil, with no material foreign operations, and no single customer accounts for more than 10% of net revenue, indicating a highly diversified buyer base.

The process of developing new projects involves structured stages of land prospecting and acquisition, product development, economic feasibility analysis, and obtaining licenses and approvals. Tenda seeks to acquire land in cities considered strategic and with sufficient demand to support continuous operations, using, where possible, swap structures (in kind or financial) with landowners as a way to reduce cash outlays and improve return on invested capital. Internal studies of demand, competition, sales velocity, and pricing support development decisions, which are submitted to internal governance bodies such as the Executive Committee and, when applicable, the Board of Directors. The company holds quality certifications for its construction processes, such as ISO 9001 and PBQP-H level A, evidencing the adoption of formal management and quality control systems on its worksites.

Construtora Tenda operates within a complex regulatory environment specific to the Brazilian real estate sector, which involves federal, state, and municipal legislation. The company is subject to the Real Estate Development Law (Law 4,591/64), the Civil Code, the Consumer Defense Code, as well as municipal master plans, land-use and zoning laws, building codes, and environmental regulations. Project approvals, development registrations, unit sales, and the formalization of financing guarantees follow the regulatory frameworks of the Real Estate Financial System and the Housing Finance System. From a governance standpoint, Tenda is listed on B3’s Novo Mercado, a segment with stricter corporate governance requirements, and in 2024 approved a clawback policy for variable compensation of officers, aligning itself with international corporate governance standards. In terms of the environmental, social, and governance (ESG) agenda, the company does not yet consolidate information in a dedicated report, but its inclusion in the IDIVERSA B3 index, which considers diversity aspects, indicates some market recognition in social and governance topics related to the company’s composition and policies.

In addition to traditional vertical real estate development, Tenda has been building a second business line in offsite construction through its subsidiary Alea, focused on mid-sized cities with populations between 100,000 and 500,000 inhabitants. This operation uses wood frame technology, based on structural wooden panels for the construction of houses and buildings of up to five floors, produced on an assembly line in Jaguariúna, in the interior of São Paulo. Alea’s plant was announced as one of the largest wood frame panel production lines in Latin America in terms of designed capacity and has been receiving investments for expansion and governance strengthening, including a minority investment by specialized funds. This front reinforces the company’s industrial nature and broadens its range of solutions for low-income housing, while maintaining the emphasis on products that fall under federal housing programs and target lower-income populations.

Over its recent history, Construtora Tenda has combined scale growth with process improvement and financial adjustments. The company has reached operational milestones such as the cumulative delivery of more than 150,000 apartments and inclusion in broad B3 stock indices such as IBRX 100 and IDIVERSA B3. In 2023, it carried out a follow-on offering to strengthen capital, in addition to transactions involving the sale of real estate receivables portfolios, aligned with the logic of the Real Estate Financial System and the use of securitization as a cash management tool. The company maintains an expansion strategy supported by a strategic land bank, standardized construction, integration with subsidized housing credit, and consolidation of its presence in metropolitan regions with structurally high demand for low-income housing, while preserving its focus on social housing and on the income brackets served by Minha Casa Minha Vida.

In summary, Construtora Tenda, through its ticker TEND3 on B3, positions itself as a real estate developer specialized in low-income housing, with an industrialized business model, its own sales structure, and strong integration with Brazil’s low-income housing finance framework. The combination of scale, product standardization, discipline in land origination, and participation in public housing programs defines its operations in a specific niche of the residential market, distinct from development aimed at middle- and high-income segments and influenced by public policy, credit availability, and the macroeconomic dynamics of the construction sector.