TRIS3: quote, dividends and indicators for Trisul

Trisul S.A. is a Brazilian real estate developer and construction company formed in April 2007 through the combination of the operations of Incosul Incorporação e Construção Ltda. and Tricury Construções e Participações Ltda., companies founded in the 1970s and 1980s with a track record of more than 35 years in the real estate market of the São Paulo metropolitan area. The corporate reorganization gradually integrated operational and administrative structures, consolidating a single group focused on residential development. In October 2007, the Company obtained registration as a publicly held corporation with the CVM, carried out its initial public offering, and had its common shares, traded under the ticker TRIS3, listed on the Novo Mercado segment of B3, with capital composed exclusively of common shares. Since then, the share capital has been increased, especially through the follow-on offering completed in September 2019, which resulted in a new capital increase and cash reinforcement to expand activities.

Trisul’s business is focused on real estate development, construction of properties for sale, subdivision and land development, purchase and sale of properties, and equity interests in other companies as partner, quotaholder or shareholder. The Company is ranked among the largest developers and construction companies in the São Paulo metropolitan area, according to EMBRAESP rankings, with more than 40 years of experience in the sector. Throughout its history, it has delivered more than 350 projects, totaling over 60 thousand residential units across the city of São Paulo, Greater São Paulo, cities in the state’s countryside, the coast and the Federal District, although its current focus has become exclusively on operations in the city of São Paulo. Consolidated revenue mainly comes from the sale of properties, supplemented by service provision associated with development and construction activities, as well as rental income on a smaller scale.

Trisul’s business model is structured in a cycle that encompasses land prospecting, project development, regulatory approvals, construction, sales and after-sales. Land prospecting and evaluation is carried out by a New Business area supported by a market intelligence department responsible for monitoring competition, demand trends and socioeconomic characteristics of the target regions. The Company prioritizes land plots in established neighborhoods of the city of São Paulo, in areas of high population density and developed urban and transport infrastructure, with an emphasis on mobility corridors close to subway or train stations. Land acquisition takes place through direct purchase with own funds, financing, or physical and financial swaps, frequently using purchase options with termination clauses to reduce capital exposure and regulatory risks. As an internal policy, Trisul seeks to maintain a land bank capable of supporting planned launches for approximately the next two years.

In product development, Trisul operates in two broad residential segments: Middle and High-End (MAP) and Economic, the latter under the Side and Elev product lines, framed within the federal Minha Casa Minha Vida (MCMV) program. For the MAP segment, projects tend to be developed on land plots of around 3,000 m², with an average Gross Development Value (VGV) per project close to R$ 150 million, focusing on neighborhoods with higher income and demand for more sophisticated units. In the economic segment, the Company targets land plots of around 5,000 m², with an average VGV of about R$ 130 million per project, offering layouts geared to families with income compatible with subsidized financing. Projects are developed in partnership with architecture firms and marketing professionals, with the size, layout and price range of the units defined based on market research and analysis of competing supply in each region. Construction is managed by an in-house engineering team that coordinates contractors selected according to technical qualifications, performance track record and price, using contracts that are usually fixed-price and lean in-house staffing structures supplemented by third parties, which allows production capacity to be adjusted to the pace of launches.

Geographically, Trisul concentrates its operations in the city of São Paulo, with projects under development and delivered in different neighborhoods in the South, West and East zones. The land strategy favors established neighborhoods near bus corridors and subway stations, aiming to reduce commercial risk and increase unit liquidity. The Company’s land bank consists of properties already acquired, plots under purchase and sale commitments, swaps and contracts subject to termination conditions, which may include documentation regularization, settlement of debts, project approvals, environmental licensing, land consolidation or subdivision and obtaining financing. In parallel with the on-balance-sheet portfolio, Trisul continuously evaluates new land acquisition opportunities in areas considered strategic, adjusting the mix between shorter-cycle projects and more complex developments. From a customer base standpoint, sales are spread across thousands of residential unit buyers, with no material revenue concentration in any single buyer above 10% of annual net revenue.

The regulatory environment has a significant influence on Trisul’s activities, as is the case for other developers and construction companies operating in Brazil. Real estate development operations are governed primarily by Law No. 4,591/1964, which addresses condominiums and real estate developments, and by the Civil Code, which regulates purchase and sale of properties, construction contracts, condominiums and acquisition of property. The Company is also subject to the Consumer Defense Code in its relationships with unit buyers, as well as to municipal and state urban legislation that defines land use and occupancy guidelines, master plans, building codes and environmental protection rules. Project approvals and project execution depend on obtaining licenses and authorizations from municipal agencies and, when applicable, environmental entities. In the contractual sphere, Law No. 13,786/2018, known as the Termination Law (Lei de Distratos), sets parameters for the termination of off-plan property purchase and sale agreements, including maximum retention percentages in case of buyer withdrawal, while the segregation of assets and liabilities of specific projects through the “patrimônio de afetação” regime, provided for in development legislation, may be adopted, with impacts on buyer protection and the applicable tax regime via the Special Taxation Regime (RET).

From an environmental, social and corporate governance practices standpoint, Trisul has been structuring a sustainability agenda with periodic publication of a Sustainability Report. The document, which can be accessed on the Company’s Investor Relations website and on the CVM website, is prepared based on Global Reporting Initiative (GRI) guidelines and has more recently also incorporated the SASB (Sustainability Accounting Standards Board) framework, seeking greater standardization and comparability of information. The Company’s materiality matrix follows the concept of double materiality, covering socio-environmental and financial impacts related to the development, construction and sale of units, and considers the perception of various stakeholder groups such as clients, suppliers, employees, landowners, shareholders, financial institutions, associations, NGOs and regulators. The material topics identified are aligned with the UN Sustainable Development Goals and connected to corporate strategy, reflecting Trisul’s efforts to integrate sustainability variables into risk management, real estate product development and corporate governance.

As a publicly held company listed on B3, with TRIS3 shares traded on the Novo Mercado, Trisul has a capital structure composed exclusively of common shares and follows the governance practices required by this segment. The Company declares a dividend policy in line with Brazilian corporate law, providing for a mandatory minimum payment of 25% of adjusted net income, as per the individual financial statements. The track record of results, combined with the geographic focus on the city of São Paulo and the segmentation between middle- and high-end projects and the economic line tied to the Minha Casa Minha Vida program, positions Trisul as a relevant player in the São Paulo residential market, with operations centered on real estate development, management of a land bank geared to short- and medium-term cycles, and increasing attention to sustainability and transparency in its relationship with its shareholders and other stakeholders.