MRV Engenharia (MRVE3.SA): Resia disposals outlook remains challenging amid weak fundamentals

Research evidence excerpt

MRV Engenharia (MRVE3.SA): Resia disposals outlook remains challenging amid weak fundamentals

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22 Jun 2026 17:00:00 ET │ 13 pages

MRV Engenharia (MRVE3.SA)

Resia disposals outlook remains challenging amid weak fundamentals

CITI’S TAKE

We see an unfavorable backdrop for Resia’s asset monetization strategy

Neutral / High Risk given the US multifamily sector has transitioned from a post-pandemic

Price (22 Jun 26 16:00) R$4.95 expansion phase into a prolonged period of absorption and price

discovery, creating a difficult backdrop for asset disposals. In our view, Target price R$7.50

Resia is attempting to execute its monetization strategy precisely when Expected share price return 51.5%

fundamentals, capital markets, and regional exposure are misaligned, Expected dividend yield 0.0%

increasing the probability of new impairments in assets sales (US$55m Expected total return 51.5%

per CITIe). Looking ahead, the path to improvement is gradual. Yardi Market Cap R$2,786M

Matrix forecasts indicate that rent growth should only normalize toward

US$541M 2028–2029, as oversupply is eventually absorbed. However, Resia’s

disposal timeline is much shorter, with a substantial portion of sales

targeted by 2026. Given this backdrop, we expect additional impairments

to be recognized throughout the year, including on assets already written Andre Mazini, CFAAC

down in 2025, should the company remain committed to executing +55-11-4009-2017

disposals by 2026YE. andre.mazini@citi.com

Piero Trotta

The main concern is not a slowdown in demand, but rather an imbalance between +55-11-4009-7781

still-resilient demand and excessive supply. This dynamic, combined with elevated piero.trotta@citi.com

interest rates and a volatile macro backdrop, is compressing rent growth and