Brazilian Low- To Mid-Tier Homebuilders Continue To Thrive Amid Government Housing Program Changes And Rising Demand
Jul 15, 2024 -… Among the homebuilders we rate, MRV Engenharia e Participacoes S.A. (MRV) and Construtora Tenda S.A. ...We project an average operating cash flow of R$121 million in 2024 and R$206 million in 2025 among the six rated low- to mid-tier homebuilders, compared with the loss of R$8 million in 2023 (excluding MRV). Chart 2 Operating Improvements Should Help Reduce Leverage Amid Expectations Of Debt Refinancing In 2025 Approximately 60% of the debt among these rated homebuilders consist of debentures and other corporate debt instruments. ...(not rated) sold 66% of homes through the Pode Entrar program, followed by Direcional (18%), MRV (12%), and Tenda (4%). Collectively, they sold 5,496 residential units, representing a PSV of R$1 billion. …
Recent Developments Signal Favorable Trends For Brazilian Homebuilders
Jul 25, 2023 -… Empreendimentos e Participacoes brAAA/Stable/-- Emccamp Residencial S.A. brA+/Stable/-- Even Construtora e Incorporadora S.A. brAA+/Stable/-- Kallas Incorporacoes e Construcoes S.A. brA+/Stable/-- MRV Engenharia e Participacoes S.A. brAA-/Negative/-- Tecnisa S.A. brA/Stable/-- Trisul S.A. brA+/Negative/-- Primary Credit Analyst: Valeria R Marquez, Sao Paulo 55 (11) 3039-4843; valeria.marquez@spglobal.com Secondary Contact: Wendell Sacramoni, CFA, Sao Paulo + 55 11 3039 4855; wendell.sacramoni@spglobal.com No content (including ratings, credit-related analyses and data, valuations, model, software, or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced, or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). …
Brazil's Developers Look To Build On Favorable Housing Conditions
Feb 4, 2020 -… Construtora Tenda S/A (Tenda; brAA+/Stable/--) primarily builds home units that fall under the program's Bracket 2 (mid-tier homes), and it intends to expand its share of that segment. On the other hand, MRV Engenharia e Participacoes S.A. (MRV; brAAA/Stable/--) plans to raise the share of its home sales volume through the SBPE-funded mortgages to up to 30% in the next four years from only 5% in 2019, while shrinking the one through the MCMV program. ...Yet, most of these developers are limited by narrow geographic or product diversification, because their operations are mostly in the state of Sao Paulo and the country's southeastern region, the country's wealthiest area. Only MRV operates in most of Brazil's 26 states, while Tenda aims to expand its operations to 13 states from 9 currently. ...This would enable developers, such as MRV, Cyrela, Even, and HM--which deliver units under Bracket 3 -- to increase their market share at the expense of peers, such as Tenda, which focus on home in Bracket 2. …
Brazilian Low- To Mid-Tier Homebuilders Continue To Thrive Amid Government Housing Program Changes And Rising Demand
Jul 15, 2024 -… Among the homebuilders we rate, MRV Engenharia e Participacoes S.A. (MRV) and Construtora Tenda S.A. ...We project an average operating cash flow of R$121 million in 2024 and R$206 million in 2025 among the six rated low- to mid-tier homebuilders, compared with the loss of R$8 million in 2023 (excluding MRV). Chart 2 Operating Improvements Should Help Reduce Leverage Amid Expectations Of Debt Refinancing In 2025 Approximately 60% of the debt among these rated homebuilders consist of debentures and other corporate debt instruments. ...(not rated) sold 66% of homes through the Pode Entrar program, followed by Direcional (18%), MRV (12%), and Tenda (4%). Collectively, they sold 5,496 residential units, representing a PSV of R$1 billion. …
Recent Developments Signal Favorable Trends For Brazilian Homebuilders
Jul 25, 2023 -… Empreendimentos e Participacoes brAAA/Stable/-- Emccamp Residencial S.A. brA+/Stable/-- Even Construtora e Incorporadora S.A. brAA+/Stable/-- Kallas Incorporacoes e Construcoes S.A. brA+/Stable/-- MRV Engenharia e Participacoes S.A. brAA-/Negative/-- Tecnisa S.A. brA/Stable/-- Trisul S.A. brA+/Negative/-- Primary Credit Analyst: Valeria R Marquez, Sao Paulo 55 (11) 3039-4843; valeria.marquez@spglobal.com Secondary Contact: Wendell Sacramoni, CFA, Sao Paulo + 55 11 3039 4855; wendell.sacramoni@spglobal.com No content (including ratings, credit-related analyses and data, valuations, model, software, or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced, or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). …
Brazil's Developers Look To Build On Favorable Housing Conditions
Feb 4, 2020 -… Construtora Tenda S/A (Tenda; brAA+/Stable/--) primarily builds home units that fall under the program's Bracket 2 (mid-tier homes), and it intends to expand its share of that segment. On the other hand, MRV Engenharia e Participacoes S.A. (MRV; brAAA/Stable/--) plans to raise the share of its home sales volume through the SBPE-funded mortgages to up to 30% in the next four years from only 5% in 2019, while shrinking the one through the MCMV program. ...Yet, most of these developers are limited by narrow geographic or product diversification, because their operations are mostly in the state of Sao Paulo and the country's southeastern region, the country's wealthiest area. Only MRV operates in most of Brazil's 26 states, while Tenda aims to expand its operations to 13 states from 9 currently. ...This would enable developers, such as MRV, Cyrela, Even, and HM--which deliver units under Bracket 3 -- to increase their market share at the expense of peers, such as Tenda, which focus on home in Bracket 2. …