Latam Real Estate – Today‘s News: Potential End to LCI Tax Exemption, Casa Brasil Update, Desenrola Extension, FGTS Meeting Today

Research evidence excerpt

Latam Real Estate – Today‘s News: Potential End to LCI Tax Exemption, Casa Brasil Update, Desenrola Extension, FGTS Meeting Today

ilding garrett.greenblatt@jpmorgan.com

materials industry reports sales down 3.4% in 1H26 yoy, prompting Abramat J.P. Morgan Securities LLC

to cut its 2026 growth forecast to 0.5% (from 1.9%); IBGE data show materials

retail volumes down 1% yoy in the first 5 months while nominal revenue rose

2.6%. Brazilian HBs Coverage Summary

• CSN Cimentos Sale: Huaxin vs Votorantim/Cementir near binding dids - Rating PT Dec-26 P/BV TEND OW R$ 48.50 2.78x

O Estado de São Paulo. Binding bids for CSN Cimentos are due on August- DIRR OW R$ 19.00 2.89x

7th, with Votorantim Cimentos teaming up with Italy’s Cementir to reduce CURY OW R$ 43.50 6.06x

potential antitrust hurdles given Votorantim’s ~35% share of Brazil’s cement MRVE N R$ 7.00 0.50x

CYRE N R$ 29.50 0.90x

market. China’s Huaxin is viewed by sources as the likely top bidder after EZTC N R$ 17.00 0.61x

conducting detailed diligence across CSN Cimentos’ 13 plants, and it Source: J.P. Morgan estimates. Priced as of last trading day

previously bought Embu S.A. for R$1bn in Dec/2024. CSN is seeking a deal for all stocks.

with limited regulatory delay as net debt was >R$40bn at the end of 1H. Its Latam Properties Coverage Summary

controller aims to reduce debt by R$15–18bn, and the company targets up to Rating PT Dec-26 P/FFO 27e

R$16bn (equity + debt) for the cement division. MULT OW R$ 38.00 9.2x

IGTI OW R$ 32.00 7.9x

• São Paulo’s dispute in Pinheiros moves from permit suspension to ALOS OW R$ 35.00 8.0x

negotiation phase - Metro Quadrado. The dispute between the Alto dos LOGG OW R$ 34.00 17.2x

Pinheiros neighborhood association (SAAP) and the Presbyterian Church of MALLPLAZ OW Ch$4,300 16.3x