SAO PAULO – Four companies in the real estate sector have share buyback programs in progress and two have already closed, totaling operations of around R$750 million. They are JHSF (JHSF3), Eztec (EZTC3), Tenda (TEND3) and Moura Dubeux (MDNE3). BR Properties (BRPR3) and Even (EVEN3) ended their program last week.
The repurchase of shares consists of the purchase by companies of their own shares in the market, either canceling them or using them to meet the exercise of stock options.
In practice, the company is taking part of its equity from the stock exchange from circulation, either to adjust its capital structure and its cash levels, to signal that it believes in the potential of its shares as to offer a form of remuneration to replace the dividend, among other factors.
In the case of Even, the number of shares to be acquired was limited to three million common shares, which corresponds to 1.48% of the shares outstanding in the market. The closing was approved at the company’s board of directors meeting held on August 12, 2021.
At JHSF, the limit is 28 million common shares, which represent approximately 9.15% of the total outstanding shares in the market. The program is effective until February 17, 2023.
In the case of EZTec, the program involves up to 5,035,897 shares. The program has a term of up to six months, ending on February 23, 2022. The amount referred to is equivalent to approximately 5% of the company’s shares outstanding in the market.
At Construtora Tenda, the board of directors approved the amendment to the share buyback plan, released in December 2020, and may carry out operations with derivatives under the program, which is valid until December this year.
Moura Dubeux’s program, which began in April this year, involves up to 5,715,759 common shares and ends on April 19, 2022.
BR Properties, as well as Even, announced that it had completed its share buyback plan. It obtained 99.95% of the assets it had proposed to buy, with 10,994,600 shares being acquired for R$94.9 million, with an average cost per share of R$8.63.
In a report, Bradesco BBI assesses that the wave of buyback programs sends a strong signal of companies’ confidence in the business cycle, despite the recent collapse of the sector’s market value.
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The analysis team highlights that the sector had already signaled a purchase of around R$ 14 million by controllers in the real estate market, with Tecnisa, MRV, brMalls, Plano&Plano, as well as Eztec among the main buyers. Since then, stocks have lost about 26% on B3 on average, he writes.
“We emphasize that the recent crisis in the sector was driven by the deterioration of macroeconomic conditions, although the fundamentals of companies remain predominantly robust”, complete the bank’s analysts.
In addition to companies in the real estate, construction and shopping malls, the car rental company moved (MOVI3) also announced this Monday (23) its buyback program, of up to 12,335,379 shares. THE Locaweb (LWSA3) also announced a buyback program last week, projecting the purchase of up to 3 million shares by 2023.
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