Hello, my name is Pedro Lourenço, Head of Investor Relations at the company. Joining us today are Mr. Silvio Ernesto Zarzur, CEO and Member of the Board of Directors. Mr. Samir Zakkhour El Tayar, Vice Chairman of the Board of Directors. Marcelo Ernesto Zarzur, VP. Mr. Emilio Fugazza, Chief Financial Officer and Investor Relations Officer. Please note that this event is being recorded, and all participants will be in listen-only mode during the company's presentation. After that, we'll begin the Q&A session when further instructions will be provided. If anyone requires assistance during this conference call, please request support from the investor relations team available in the chat. In case of connection issues, please reconnect using the same link or ID available on our website, ri.eztec.com.br. You can also find the presentation slides on our website under the Download Center.
All information is presented in Brazilian reais in accordance with BR GAAP and IFRS applicable to real estate development entities in Brazil, unless otherwise stated. Before we begin, I'd like to mention that any forward-looking statements made during this conference call regarding EZTEC's business outlook, including projections in operational and financial targets, are based on the company's management's beliefs and assumptions as well as currently available information. Remarks about the future are not guarantees of performance. They involve risks, uncertainties, and assumptions referred a few therefore, circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions, and other operating factors may affect EZTEC's future performance and may lead to results that differ materially from those expressed in these forward-looking statements. Now to begin, I'd like to hand it over to Mr. Emilio Fugazza, who will start with the presentation. Go ahead, Emilio.
Thank you, Pedro. Good morning, ladies and gentlemen. It's a pleasure to be here for this earnings call for the first quarter of 2026. This quarter demonstrates the strength of our results, especially from the operational standpoint in the first quarter. Our main highlight is our launches performance, which was BRL 925 million for the first quarter. This is the result of a strong effort from the fourth quarter of 2025 when we launched BRL 783 million. In 2 quarters only, we have reached over BRL 1.6 billion. If we were to look only at 2026, where we posted in January a guidance of launches between BRL 2.5 billion and BRL 3.5 billion, about 30% of it has been covered by the 4 launches that we made during the first quarter of 2026.
It's a strong volume, and we are seeing strong sales volumes. The company holds about BRL 9 million in its land bank, plus about BRL 4 billion in land under suspensive clauses. Now, I'd like to show you a few of our launches. We have Reserva São Caetano Bosque at its second phase. The second phase is 63% sold. This land in São Caetano has 4 phases. The Bosque phase is 60% sold in total. It's a middle-end enterprise with apartments from 33-64 sq m. The next one is spectacular in sales. Metropolitan by Lindenberg. It was launched near Parque da Cidade Mall, in Chácara Santo Antônio, very close to Lindenberg Alto das Nações, Parque da Cidade, Esther Towers.
This is a region that has been receiving a lot of demand for this kind of product, which has apartments from 22 to 74 sq m. We hold 70% of this, and Lindenberg holds 30%, and 86% has been sold until today, which is a revenue of BRL 56 million in addition to this quarter's revenue. Another spectacularly performing launch was Cidade Parque Guarapiranga in partnership with Cury. We have 5 phases to be launched in this area, and the first one was launched with 100% of units sold, which is BRL 146 million in additional PSV. These results have been recognized, the income from this phase is already posted. The next one is Casa Nacional.
This is our own land on Roque Petroni, very close to Morumbi Mall. It is very well located, and it allows the company to do at least 3 launches. Apartments are 114 to 136 sq m, and 16% has been sold until this date. Our understanding is that in this kind of launch, this is the right speed because we are at the appropriate price level, and we are very well positioned in the region. That concludes it. I would just like to mention that in the second quarter, we have already launched 1 more phase of the São Caetano area, which is Grand Resort Reserva São Caetano. 14% of it has been sold. It was just recently launched at the end of April.
Looking at the 3 phases, the Bosque phase has been 58% sold, Parque 70% sold, and now we are starting the Grand Resort Reserva phase, and 40% of it has been sold. I'd like to remind you that this was started in the fourth quarter. Thus far, in less than 6 months of launches, we have had absolutely incredible sales for these projects. 100% of EZTEC in the last 5-6 months. Finally, still on launches, we are going to see Azzure Resort Life. It's an enterprise in Osasco, close to the Bradesco headquarters with apartments from 63-120 sq m. We're going to add BRL 400 million in PSV this quarter. Let's talk about deliveries. This is not as relevant as it was in 2025 for the company.
We have BRL 951 million in deliveries. In the 1st quarter, we delivered Chanés Street with 75% of units sold. It represents a PSV of BRL 176 million. This shows that our inventories are low in this kind of product as well. The next ones to be delivered in the 2nd quarter are East Blue, Lindenberg Ibirapuera. All of them have been selling very quickly. On average, everything that is being delivered until today, 80% has been sold. 20% has remained in our inventory thus far. That concludes our operational highlights. Net sales, we reached BRL 697 million in net sales this quarter. The main highlight is the size of our growth versus the 1st quarter of 2025, which was BRL 377 million. It was an 85% growth. Nonetheless, we can also see the last 12 months.
A year ago, we were at around BRL 1.7 billion a year, and now we are close to BRL 2.3 billion in sales for the year. Contract cancellations are under control, and we're following the same monthly dynamics that we also saw in the fourth quarter. Here we have launches and sales behaving very well. In the next quarters, we're going to start to see this going into our revenue, this will impact our financial and operational results. Now we can start discussing our financial highlights. Net revenue is starting the year at BRL 323 million. This net revenue mainly comes from the sales of the enterprises that have been launched, some of the ones that are still under construction.
Although right now we have 19 areas in execution, we are starting construction for all of these enterprises, we should expect more traction in the next quarters. In our net revenue, we also have BRL 102 million in completed inventory. This was better than the fourth quarter of 2025. As a reminder, we often see sell side reports and see worries about our inventory, we are completely aligned with these concerns on the completed inventory. In this quarter, we're starting to see a recognition of the revenue, which is important when it comes to selling this inventory. There was a completion of the suspensive clauses for the Metropolitan and Cidade Parque enterprises. With that, we can continue with our gross profits. Our gross margins are 38.7%, which is in line with what you've seen in our results to be appropriated.
No expected or actual jumps here. The difference between our gross margin and the reference margin will always be due to the financing programs that which has been 2 to 2.5 percentage points and about half of the RET tax, specifically PIS and COFINS. Our financial results. This was also a highlight for the company. A significant part of it is due to our fiduciary alienation portfolio. We are continuing to grow 615 at the end of 2025 versus 661 this quarter. The main highlight here was the volume. If you look at the BRL 43 million in payments in amortization, if we were to look at this at an annual rate, this is about 30% of amortization.
This is for the yearly portfolio. This demonstrates the strength of our portfolio and the fact that people are seeing this as a new bridge. As a reminder, this is an IGP portfolio, which means that in the next 3 months we will have an additional financial result due to IGP, which has gone up in the last few months, and this is an average rate of 10.2%. We know that in this area we are creating a bigger inventory at the 12% rate. The company's net profit and ROE. We are at BRL 120 million in net profit with an ROE of 11.1%. We also can see the results we have here for our shareholders' equity. Most of what we see here are areas operated by the company.
When you look at the table that is produced by our investor relations team, you're going to see the enterprises that are operated by EZTEC except for Parque Guarapiranga. All of these make up the company's business efforts in real estate development. When we look at the results that led to Park Avenue this quarter, this is 50% under EZTEC, but it's completely managed by the company. Continuing with dividends. 25% of our net income represents BRL 28 million. The date is May 14, and these dividends will be paid on May 29, 2026, which is about BRL 0.10 per share. To conclude, before we hand it over to Silvio Zarzur, I have to mention the company's capital structure.
This quarter, given the cash generation that we've been having because of repasses that are taking place and the debt payments, we have some net cash, BRL 7 million versus BRL 147 at the end of 2025. As a reminder, at the holding, our position is much more comfortable for the consolidated figure. With that being said, I will now hand it over to our CEO for his closing remarks before we continue with the Q&A. Go ahead, Silvio. I'd just like to say that this quarter, sales have been very strong. We were able to sustain an aggressive commercial policy. We were very good with our media. The way the products reacted was very positive. We're always concerned about the future scenario.
You know, with the war, with some civil construction price hikes, this is always a concern, but I think we're surpassing what we had foreseen in a couple of areas. From my perspective, it's still acceptable if we want to sustain this sales speed. If we don't have any other negative factors, we're going to keep this under control. Emilio mentioned our alienation portfolio, and it's very strong. We have a lot of sales in this area. As you saw, we had a net increase of BRL 50 million. A net increase of BRL 50 million, and this is a very important sales device. It helps the company to control the interest rates we offer to our clients. We can use it if we need to add speed to the company's sales and improve our PSV.
We've also been able to sustain engineering costs under control. I'm not saying that we're not going to be affected by what we're seeing, but this has been mapped. We understand what is happening, and we've been able to face it in the best way possible. The company is perfecting its administrative side. Our governance has been improving, so I think the company is leaving the level it had before when we were a smaller company, and now we have governance tools of a big company. That's it. I don't know if Marcelo has anything to say. Yes, just adding to what Silvio said, we had a record quarter with expressive sales. Launches have been significant as well. Our construction is completely under control, and this is aligned with our market.
We are very strong in selling our inventory and the products that are under construction. With this entire effort, and if the market lets us, we're still going to overcome all of the records for this year. Thank you, Marcelo. Thank you, gentlemen, and now we will open up for questions and answer session. We're going to start from sell side, according to this order that was previously established and is listed on the screen. Please raise your hand, and if time allows, we will also receive questions from the chat. If we aren't able to answer your question, please send it to our investor relations team, so that we can answer you. The first question will be asked by Mr. Igor from Goldman Sachs. Go ahead, sir. Good morning, everyone. Can you hear me? Yes. Thank you. Thank you for taking my question.
I'd like to ask about first about the main topic in the industry, which is the construction costs. With the war, INCC is going up, but we know that your construction basket doesn't necessarily reflect that. Should we expect EZTEC to be impacted by inflation? If you can tell us anything about that would be helpful. The second point is the JV results here. This was a strong lever in your results, and this also happened in the previous quarters. I'd just like to know what we can expect from now on, if this will continue, and especially if you can tell us about low income projects. We know that about 100% of the Cury project has been sold, what is your appetite for the low income area?
If you can tell us anything about that would be great. Thank you. About construction costs, let me answer that. EZTEC has very accurate controls, and we showed relevant savings last year. We have our eye on all the stages of this of our construction. We have some materials that have been purchased in advance, like PVC, copper. We bought a lot of materials in advance. I think in some materials we're going to see higher prices, but this will not affect our constructions that much, and we will definitely have positive results. If it doesn't get worse, of course, we'll be able to surpass these challenges easily. This is not new for us.
Speaking only about the last 10 years, I'm not going to talk about the last 40 years, you know, we had the COVID pandemic where the supply chain was significantly disrupted. We had the Ukraine War, which also had a significant impact, and now we're seeing this new war. When we look at supplies, first of all, we have controlled our prices versus INCC. We're keeping on our eye on that, and we did this many times, and we will do it again. This is a business in which each project takes four years. When you look at these issues, they have been cyclical. This happens, you get an impact, and the impact dissipates. We have our inventory, we have the inventory under construction. We'll be able to get a better margin from that.
We're going to see some new things being built over some time. We're going to be affected, but this will tend to dissipate. You also talked about a detachment from INCC and the cost centers. We've controlled it loses control again, and at certain points it will improve again. At some point INCC will reach the company's costs. We will continue to adjust our sales to the INCC. It might be slightly higher. We expect it to be around 8.5%-9% this year. We have good margins, and we can control it with our margins. We have several instruments, so I don't think we're going to be affected negatively by this aspect. That answers your first question. Partnerships are a natural part of our business.
In this case, it's not a partnership, it's a controlled area, but this is contributing to with BRL 8 million this quarter. It was BRL 16 million in total, but we are getting 8% of that, so it was BRL 7 million, excuse me. Right, but it was about BRL 1.5 billion. Emilio is telling me that it's about BRL 1.5 billion total. We have other partnerships that we're looking at with Lindenberg and we have several partnerships, and we continue to invest in that. Once again, this is all cyclical. We're going to see an increase in launches, and as we have planned in our partnership, this will add to our contributions.
We have an exposure in low income with the partnerships that have been taking place right now, we've acquired a land area with a PSV of BRL 1.5 billion. Half of this is Cyrela's, but we purchased their share, and we have BRL 1.5 billion to perform internally. We have a couple more acquisitions that will be used in the low-income sector and which we can develop internally. We're getting prepared to work directly again in this area. I don't think it will take very long to go back to this market. This land area is significant. We have another one which is about BRL 400 million. This is dedicated to the low income bracket. Does that answer your question? Yes, that was clear. Thank you. The next question will be from Itaú Bank.
It will be asked by Mr. Elvis. Go ahead. Hi, everyone. My first question is about demand. You mentioned potentially reaching 8.5 or 9. During the COVID pandemic, it seems like the demand reduced a lot when INCC improved. I'd just like to understand your side about this. Is this a concern for you? Are you comfortable with this volume of launches that you have for the guidance? I'd also like to understand more about your cash generation. Do you still see a good cash flow volume for the next quarters, or has most of this already been passed? Thank you. Well, we reached record sales from the demand side, so of course we get concerned.
If you're responsible, you're always concerned. If your goal is to launch over BRL 3 billion, and our aim is, of course, to surpass our guidance, we get concerned, but it's going very well. This quarter we started selling very well. What I can tell you is that, yes, it is a concern, but while the engine is running, we can't stop. We can't stop, but we have financial models. In order to manage the company, you know, we have to keep our eye on it. We're looking at sales. It is a concern. We're doing well. We're considering that it will be better, but what's our margin here? It was 37, 3% more or 3% less won't make a big difference. If it's because of these 3%, I mean, we're going to continue selling.
We're going to sustain our IRR, our sales. We know how to operate with this. I also want to remind you of something. We're operating at these margins in a very adverse market, and that is without considering the war. The interest rates are at about 15%, so this is already terrible for the market, and we're still able to sustain this margin. When the market improves, we'll be able to expand that margin significantly. Just as we're selling for less to sustain our liquidity, this is our specialty. When we see that there's any space to grow, we'll see a big difference between sales prices and costs. Whenever we get the chance, we're going to get as much as we can.
When the market is positive, we can multiply our profits again, and if the market is poor, we'll have to reduce our margins a bit more. We don't expect to reduce our speed or any of that. Elvis, to answer your question about cash generation, the situation we're currently in the 1st quarter, we still haven't generated what was calculated based on the 4th quarter of 2025. There are things that are still being passed on. There are apartments that are still being registered. 2026, except for the land areas that can be purchased, this is a year that will generate net cash. This is already happening in the 2nd quarter, and this will continue till the next quarter. Cash generation is still happening.
If you look at our balance, we have about BRL 1 billion in receivables in our inventory, and I said that there was BRL 660 million in fiduciary alienation. At the end of the first quarter, we have a significant amount that is still in transit. We're talking about sales and the revenue it generated. Elvis, does that answer your question? Very clear. Thank you. The next question is from JPM organ, and it will be asked by Mr. Jonathan. Thank you, Pedro. Good morning, everyone. Thank you for your time. I have two questions on my side. The first is about the land sales that you had before. If you can tell us why this didn't progress. Was it because of you or the seller?
Also, if you can talk about Esther Towers, if you are expecting the first tower to be completed by the end of the year. What has the conversation been like with other potential renters? Thank you.
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Hi, Jonathan. Good morning. Thank you.
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We've included a line in our release about this.
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This was a transaction that took place in 2012.
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We gave up on this purchase, and this recovery was judicialized. This ended at the end of 2026. A negotiated, we negotiated this, the settlement, and this generated BRL 23 million in revenue.
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About BRL 5 million-BRL 6 million was the value that was initially given as a deposit.
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The cost of this was about BRL 5 million, and we reversed this provision in other revenues, which gave us a balance of BRL 23 million.
I'd just like to add something
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This is.
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Poor administration. When you buy something and the other side doesn't comply with what was said.
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If you can convert this into profit for the company, that's good.
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When you recover the cost paid, this is good management. When you manage anything in the company, we recently recovered the company's approval, which was BRL 40 million. It didn't go to the balance yet, but it will at one point. We've recovered this from authorizations that had been granted.
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An important part of the company's results is managing things carefully. We have Emilio, Marcelo , Silvio Lamoureux, and the other directors who are here, Marco Siqueira. Everyone is managing the company very closely. Being careful, I mean, if I were to tell you what happens here, across each business, we are getting better results.
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Sometimes we get things for very low prices and then sell them at higher prices.
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This was one such case.
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In this case, we were able to get this result, which was significant.
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Jonathan.
Jonathan.
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We're at the end stage signing the contract with the first renter in these 10,000 meters. We've been seeing a strong demand from customers who are looking for some space, clients who want very good spaces, and there are very few players in the market that have this contiguous area. We're very excited about the next few years, and we're going to give you some very good news.
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Does that answer your question, Jonathan?
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It does. Thank you.
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Thank you. Pedro?
Thank you. The next question will be asked by Mr. Rafael Rehder from Banco Safra. Go ahead, Rafael.
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Hi, good morning, everyone. Thank you. I have 2 questions that I'd like to discuss here. First, about the inventory, your completed inventory. A part of this repassing process is ending now, so I believe that helps in selling the units you delivered. From a qualitative perspective, what initiatives do you have that might help with the liquidity or, of these products? Another point I'd like to ask about is the fiduciary alienation portfolio. You mentioned that this would be used to boost sales, but I'd just like to understand if there's a level that you believe would make you not so comfortable, because this has been a very significant factor contributing towards your results.
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Hi, Rafael. Like I said, we're also concerned about our inventory. We've been making many campaigns.
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Like I said in the beginning of the presentation, we are making a very strong campaign with Smiles, a mileage program, through a partnership, and we believe that we will be able to sell our inventory very well, more than before.
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We have margins that we can sell, and we will definitely sell more than we had in the past. We had a strong campaign with actor Selton Mello in the first quarter. We didn't sell exactly what we wanted, but it was a reasonable amount. Now we will be even stronger with Smiles. We have to do something that draws people attention, and this campaign will do that. We also mentioned that we're going to invest more in media than we already are. We opened a new selling company recently. We have TecVendas, which is a sales machine, and it's been selling. Well, it's a spectacular company. It's been working very well, and we also have EZTEC Brokers, which is strong. It's representing about 15%-20% of our general sales, which is a significant number for a company that is just starting.
Imagine this, TecVendas sold this year about 40% more than in the first quarter of 2025, and Brokers has been selling 20% of this, of the general sales volume. 80% was done by TecVendas and 20% was done by Brokers. This also helps to sell our inventory. With these companies working the way they are, this is going to help us with liquidity. Sorry, excuse me, it was Danton Mello, not Selton Mello. This was a real life opportunity. They're very similar. I'm going to talk about the alienation portfolio. You asked if there was a comfortable level for that. I'd just like to remind you of this. One of the highlights was that we started 2026 with BRL 615 million. We generated new AFs representing BRL 17 million with interest rates of BRL 20 million, so that's BRL 90.
We received BRL 43 million in payments in that quarter. Although we grew BRL 90 million, at the end, half of that from that portfolio was reduced in payments. This is a very liquid portfolio now. We're not concerned about reaching this comfortable level because the amortization level is quite high. We hope to use this as a sales tool. We can pass on a part of it. If we see that, you know, for any reason that this is changing, it's very easy to pass this on. Very easy. APPA is very easy, at least a part of it, but we also like to have it in the company. Rafael, does that answer your question?
Perfect.
If I can also ask something else. In your portfolio, what's the average duration? Is it still 10 years?
Rafael, it's lower than that. Pedro has a description in the release of how the duration is doing, but you'll notice that a large part of it is in the SAC system. If we were to split this into two, it would be a 60/40 split. The average maturity is about eight years, but when you look at the amortization volume, it's about 30% a year. That reduces the average time to less than four years. The liquidity is incredible despite having an average maturity of about eight years.
Perfect. That was very clear. Thank you.
Thank you, Rafael. Pedro?
Thank you, Rafael. The next question will be asked by Ms. Fanny Oreng from Santander Brasil. Go ahead.
Hi, everyone. Good morning. I have a couple of questions. The first one Well, I always remember Emilio saying that when he goes to a booth to buy, clients are looking more at the INCC than the future interest that they will contract. What I'd like to hear from you is what your perception of the demand is due to this deterioration in INCC. If clients already have this perception, and if in the future this can impact your pipeline for the year. That's my first question. The second question is about G&A. We noticed that this is a bit lower than what you had before, and you talked about contracting. If you can share with us, what perspectives you have in this line and what hires you have. That's it. Thank you.
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Of course, when customers listen to this is discomforting, but this is not worse than what they had, you know, when they had their money, only getting 50% a year in the bank. The psychological aspect in practice leads to decisions that are not exactly the ones we expect.
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We have record sales, and why is that? People understood that this 15% doesn't pay for what happens to the real estate prices.
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Buildings that are nearly ready or ready, and then when they get there, they realize that they'll need to pay 13% more.
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They can get something that has already been built or, that has already included all of its costs there.
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I do think that this is a concern for customers, like I said, we expect to see a variation of 3% a year INCC or 3.5%. Our margin is 34%. Excuse me, 37%.
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That's my first point.
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When you postpone this and when you dilute this through the contract, it gets diluted. I have no doubt that this will impact the sales speed, but I understand that the company, if it actively manages these issues, will sustain, I know that the company is able to sustain its sales speed. Things can get worse. The war started and we don't know when it's going to end. Right now, as things are, with the increases we're seeing and with the current scenario, I understand that we can, in the case of our company, sustain these sales speeds and volumes, even if we have to see a lower margin. I'd also like to say this. The operational level, as we saw, in one year increased significantly.
When we compare what we did in one year to what we did to the previous 12 months, it went up significantly. This hasn't been reflected in our revenue yet. In our projects, these land areas are not so relevant, so we will see it going up as construction advances. We had some operational cost increases. The company is becoming more professional. There was a number of directors working with lower salaries. We have to adjust this as we hire professionals to come into new positions. When we look at the percentage of what was sold, it did not go up. What happens is that in the accounting system, we still haven't increased our operational volume. How much did we sell this quarter? How much was in our revenue?
We sold BRL 700, in our revenue we had BRL 300. When we get the remainder, this expense will be diluted. This happens as we execute this. I don't know if I explained it very well.
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Just to add to this answer. Fani, I think Silvio explained our operational growth, and I think you want to understand what this represents in this quarter. In the first quarter, we have a, this is the proxy for the year of 2026. What we expect, this represents the growth that we had and the adjustments that are being made to our administration and the directors and the changes to the company. Does that answer your question?
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It does. Thank you.
T hank you, Fanny. Pedro. Thank you, Fanny. The next question will be asked by Mr. João Pedro Rodrigues from XP. Go ahead.
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Good morning, everyone.
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Thank you for taking my questions. I'd like to ask about the corporate market, commercial enterprises. We're seeing some news about the Faria Lima region having some renters leaving, going to Chucri Zaidan and Rebouças as new corporate destinations. We've also seen that rent is expected to go up in Chucri Zaidan. They mentioned that that activity is very strong. I'd like to understand your take for your vision for the Chucri Zaidan region, if you expect rent there to catch up in the next few years.
Especially to Rebouças, there seems to be a strong difference between these 2 regions. How do you imagine this will influence rental demands and your future sales? Thank you. Hi, João. Good morning. First of all, about Esther Towers, this is the best project, the most beautiful project that São Paulo has. With the 2 towers, we're not going to accept a reasonable price for it. We're expecting premium customers, we are getting them. They're paying reasonable prices, which we believe are fair for the product. In the next year, we will fill a tower, and it may be even the 2nd one can be filled. As I said, there are customers who are looking for areas that only exist there. We're feeling very comfortable about this with the product that we have there.
I think, you know, now is the time in which we're going to get the results, and we're going to make this happen. We're confident. It's not that we're certain, but we're confident. Does that answer your question, João? It does. Thank you. Thank you, João. The next question will be asked by Bradesco, represented by Mr. Pedro Lobato. Go ahead, sir. Good morning, everyone. Thank you. I'd like to understand your take on the competition. You're at least, you know, one of the only companies that is publicly traded that has been working in the middle income bracket and has been performing very well. Do you believe that the competition is weaker in this segment? Or is competition still strong? I'd also like to ask about dividends.
Emilio mentioned that cash generation is doing very well, so what do you think will trigger an increase in payouts? Thank you for your question, Pedro. I think this is a regional industry. If you go to São Caetano, for example, we don't have the same competition that we get in Tatuapé. Of course, the Tatuapé market is much stronger than São Caetano. We have a number of competitors there who are very strong and who are working in Tatuapé. In São Caetano, we are the only ones in the middle income bracket, so this gives us a better selling conditions. It's a tight market. You know, everyone was in São Bernardo do Campo, São Caetano, Santo André, Guarulhos, and Osasco. We saw recurring losses, and there's a different way of working there. There's another point as well. These are major enterprises.
When you launch 600 apartments in the same building with a 50 m pool, I mean, that's a working methodology, and it's one way of working. I'm talking about São Paulo here. Of course, when you're in Osasco or in São Caetano, you have less of a competition than you do when you go to Tatuapé. This is just an example when it comes to middle income. If you look at the sector as a whole, there's a lot of competition when you look at São Paulo. I think São Paulo was a bit left behind and it gave us some space to work in. Should I start the answering about dividends?
Pedro, to answer your question about cash generation and dividends, Pedro, this is a year in which net cash generation is a reality considering how much we delivered in 2025 and the first quarter of 2026. The company is intending to launch BRL 2.5 billion to BRL 3.5 billion this year, which is significantly higher than the last years. From a practical perspective, of course, considering all of the external market factors, the company intends to continue at these levels. Notice how our land bank was purchased to be used over the next 3 years, and we have 1 additional year due to the suspension clause. When we look at the city of São Paulo, the Greater São Paulo area, all the time it takes to develop these projects, get licensed, and launch them, this would not be enough.
We do need to get this, and this is one of our considerations. Given the events that we have, we have the elections this year, we have the World Cup, and we're expecting a higher sales volume. When we understand the scenario for 2026, then we'll be able to plan this payout as we had in 2024 and 2025. Well, Emilio is very conservative, and we are as well, but I want to remind you that we had a huge payout at the end of 2025, which advanced some of the dividends. Which doesn't mean that throughout the year, you know, we won't be able to do more safely.
If that does, if we do think, it's possible, we will do it, but we'll need to look at the future scenario, how business will develop, how our liquidity is doing, and our goal is to pay out above 25% on the medium term, so one or two years. Does that answer your question, Pedro?
Thank you. Have a good weekend. Thank you, Pedro Lourenço. Have a good day and a good weekend. The next question will be asked by BTG Pactual. It will be asked by Mr. Gustavo Fabres. Go ahead. Hi, everyone. Good morning. I have a single question when it comes to gross margins. You have higher margins due to these older projects, you also have newer ones starting this year. My question is about how you see this gross margin trajectory for the next quarters, and also for 2026, for the full year of 2026. Thank you. Hi, Gustavo. Thank you for your question. Good morning. Gustavo, I like the graph that we have on page 8 of the release where they mention the gross margin variations per season of a project.
Your question is very fitting because then we'll be able to talk about the fact that when you look at the most recent seasons, it's about 33% gross margins. When you look at the older ones, they are above 40%. The inventory that's being formed has margins above 40%, which gives us some room to work in the commercial area. We can have sales campaigns based on this. On the other hand, with the newest seasons, it's important to mention that we have the AVP effect, and that removes at least 4 percentage points from our margins in each of these, especially because we're at a high level of interest rates. AVP is being done at a higher rate, but it basically concludes at the end of the enterprise. Also, there's a significant sales component here that happens over time.
The land has been paid for, within the customer's receivables, we have the construction cost in INCC, and the margins plus the land is free of INCC in the margins. As you have higher INCC phases, the more recent launches will have a better margin recovery and will be much closer to our current REF. I have the conviction that the REF that we're showing to you, which is at around 39, and as you can see in this release, is a proxy of the company's future result. That includes the next seasons that we've been discussing. Any comments, Pedro? Yes. What Emilio is saying is that INCC changes year on year on the project's results. If something is launched this year, it will be affected by INCC next year, and the next, and the next.
This margin varies, and it will reach the levels that we had before. Again, we're working in a very adverse market. I've never worked in such a difficult market as the current one. We have excess supply, 15% interest rates. There's a number of factors. As a real estate developer, we have to go and find the customers where they are, and that is what makes these margins this low. When interest rates go down, if the environment is better in Brazil, then we can get better margins. This is accounting. If we keep the sales as they are, I understand that we're going to keep the same margins, but if the business environment improves, then our margins will also go up.
When the sales volume increases, when we double our volume, we're going to have SG&A dilution, but we still haven't received that. Now that we got BRL 600 million in the 1st half of the year, you'll see that SG&A will go down and the base will go up. What Emilio is saying is that there's an accounting side, there's a part that is given, and what I'm saying is that with the market we can overperform. Similarly, if interest rates go up to 20%, we will underperform. That's it. Gustavo, does that answer your question? Yes, thank you. Thank you, Gustavo. Have a good day. The next question will be asked by Citibank, and it will be asked by Mr. Piero Trotta. Go ahead, sir. Hi. Good morning, everyone. Thank you for this call. I have 2 questions. The 1st one is a quick follow-up about INCC.
I'd just like to understand what you expect since some suppliers are already passing on this price through their end products. Do you believe that there will be some detachment between your cost basket to INCC? We know that the basket there is different from EZTEC's, and if you think there's a possibility of being some detachment. We know that receivables are adjusted based on INCC, but if your costs go up, then it could be higher than your adjusted receivable. That's my first question. My second question is, do you see any difference in appetite for banks in LTV % or interest rates? Because a part of it is being passed this year and a part of it was passed last year.
I'm asking because of the 5% that was released for FSH, and I don't know how much you do with Caixa Econômica Federal, but its budget went up from BRL 65 billion to BRL 90 billion this year. I'd just like to understand if there was any change in appetite in the banks. That's all. Thank you. Piero, as I said earlier today, there is an increase in INCC, this is under control at EZTEC. It might be detached by 2% or 3% versus the cost, we can equalize this. If the work continues, if we have any other factors, we can fix this. We had a control mechanism. Last year we had a significant savings, we're prepared to go through this period without any major issues.
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Piero, it's a pleasure to talk to you.
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This issue that you mentioned is happening in the following way. In the last 12 months, we had significant repasses because of the projects that we delivered over some times. What we realized was that our bank, which was Itaú specifically, made a huge effort to absorb these units and we do see an effort to pass costs on through these levels of rates. These are market rates. Sometimes a bank will make an additional effort if they are financing a project through the rate or through the total volume that they need to finance for those clients. When we look at fiduciary alienation in the past, on average, a reasonable time was 5% only, and in this period it was 25%.
That means that 75% of enterprises were really passed on to banks, and that demonstrates that banks have made a significant effort about this. Did that mandatory percentage make a big difference? This is my opinion, okay? I think it makes a bigger difference for corporations, but not necessarily individuals. Individuals, in this case, the big difference was the number of clients under a guarantee. This also makes a big difference, but the mandatory part is mostly for corporations. Does that answer your question, Piero?
Sorry, I was on mute. Yes, that was very clear. Thank you.
Thank you, Piero. Have a good day and a good weekend.
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Well, since there are no further questions I will now hand it over to our directors for their closing remarks.
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I'd just like to mention one thing, which is the administrative security and the business security.
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In the company, we try to be aggressive. We try to find a good level of profits, a good ROAE. We know that we owe you in that sense. We have to give an ROAE to the company, and we need to post better profits. I think that is the main goal of this acceleration.
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Our results are being delivered safely, so we're confident that we're not getting into trouble.
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We're not going to get any issues, have a liquidity problem or have a significant cost issue.
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We're being aggressive, but keeping it safe.
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We will reach the profitability that we need, but in order to do it, we won't let go of our safety administrative, safety, governance being aggressive and m anaging the company well because this is our obligation. We're being very careful about our management, and I'm speaking here about the entire board of directors.
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We're conservative, but we are also aggressive, and we're focusing on sales.
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The company is all about development. It's not a bank. It's all about development. We're buying land, we're selling, we're doing engineering. This is what the company has in its DNA.
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I'm very confident about our future.