Latam Real Estate - Today's News May INCC at +6.8% YoY, Rio’s MP to Regularize Annexes, HSI Malls M&A, Office Rents +0.6% MoM

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Latam Real Estate - Today's News May INCC at +6.8% YoY, Rio’s MP to Regularize Annexes, HSI Malls M&A, Office Rents +0.6% MoM

reserved properties. Homebuilders warn the move creates legal (1-212) 622-0424

garrett.greenblatt@jpmorgan.com

uncertainty, threatens ongoing deals, and could freeze investment, with several J.P. Morgan Securities LLC

high-profile projects now at risk.

• Daycoval Asset launches R$40mn retrofit fund in Vila Mariana – Metro

Quadrado. Daycoval Asset’s 1st retrofit fund invests R$40mn to renovate 2 Brazilian HBs Coverage Summary

abandoned 1970s buildings in Vila Mariana, São Paulo, targeting mid-market Rating PT Dec-26 P/BV

buyers with 84–114 m2 units and modern amenities. The project preserved CYRE N R$ 35.50 0.95x

EZTC N R$ 20.00 0.69x original features, merged the buildings into one condo, and set average prices TEND OW R$ 46.00 2.95x

at R$15.5k/m2, above initial expectations. The fund avoids riskier downtown MRVE OW R$ 11.00 0.66x

projects and plans to expand into hotel and retail retrofits as more viable assets CURY N R$ 47.50 6.40x

DIRR N R$ 18.50 3.27x

are identified.

Source: J.P. Morgan estimates. Priced as of last trading day

• Higher-risk mortgages are growing again in the US – Metro for all stocks.

Quadrado. Nonconforming loans, which don't meet all post-subprime crisis Latam Properties Coverage Summary

criteria, have doubled in the past 3 years and reached 6% of the US mortgage Rating PT Dec-26 P/FFO 26e

market in 2025, the highest level since the financial crisis. Mortgage lenders MULT OW R$ 42.00 11.8x

are accepting greater risk to cope with over 3 years of weak activity driven by IGTI OW R$ 36.00 10.7x

ALOS OW R$ 40.00 9.5x

high interest rates, while delinquencies on these alternative loans originated LOGG OW R$ 34.00 44.6x