LatAm Real Estate "Another brick in the wall: Iguatemi update post 1Q26;..."

Research evidence excerpt

LatAm Real Estate "Another brick in the wall: Iguatemi update post 1Q26;..."

Global Research

18 May 2026ab

LatAm Real Estate Equities

Latin AmericaAnother brick in the wall: Iguatemi update

post 1Q26; Proposal to halve FGTS Real Estate

contributions as trade-off for ending 6x1; TainanAnalystCosta

Patrimar plans REIT to purchase inventory tainan.costa@ubs.com+55-11-2767 6091

Ana Julia Zerkowski

Associate Analyst

Iguatemi update post 1Q26: Keeping Buy rating; PT unchanged at R$35 ana-julia.zerkowski@ubs.com

+55-11-2767 6303We are updating Iguatemi, keeping Buy rating and PT 1y fwd unchanged at R$35/sh.

As main changes, we highlight i) we are trimming the stake acquisition of Pátio

Paulista (3% vs. previous 4.5% - here). Meanwhile, we highlight we had already

incorporated the stake sales of Iguatemi Alphaville, Iguatemi Ribeirão Preto,

Iguatemi São José de Rio Preto e Praia de Belas (here) - totalling ~24k GLA. ii) We are

also incorporating higher effective tax rate for current taxes (ex-deferred taxes) of

~19%, as Iguatemi's current portfolio is more exposed to the actual profit ("lucro

real"; ~60% of the portfolio) regime than presumed profit ("lucro presumido"; ~40%),

different from the past.

Main numbers: Net revenues remained almost unchanged at R$1.5bn in 2026

and R$1.8bn in 2027. For NOI, we model R$1.2bn and R$1.4bn, respectively.

Finally, we estimate FFO of R$675mn for 2026 (ex- capital gain; 4% below our

old estimates) and R$932mn for 2027 (in line with old estimates). Finally, for

2026, we are ~7% below consensus on the back of higher taxes and slightly

lower top line (given the recent divestment already incorporated into our

numbers). For 2027, we are more aligned.

Our view: We continue to like Iguatemi, alongside the other names under our