Ladies and gentlemen, good morning. Thank you for holding and welcome to MRV's first quarter of 2025 results conference call. Today with us, we have the CEOs of the company, Rafael Menin and Eduardo Fischer, and the CFO and IRO, Ricardo Paixão. We would like to inform that all participants will be in listen-only mode during the company's presentation. After the company's remarks are completed, there will be a Q&A session when further instructions will be given. Now, I would like to turn the floor over to MRV CEO, Mr. Rafael Menin.
Bom dia a todos.
Good morning, everyone. Thank you again for attending the MRV & Co conference call for the first quarter of 2025. As for the first quarter, we have presented some run-offs, especially regarding Resia, that I'll comment on after Brazil's remarks, and also run-off regarding a portfolio sale that Kaka will explain during the presentation. Despite the run-offs, we are absolutely certain that the company's management is on the right track, and the operational and financial indicators continue to improve quarter on quarter. Adjustments made to the operation in recent years have clearly shown results as we expected in MRV Day. On show in MRV Day, the areas commercial and have improved every quarter, and we are absolutely sure that the efforts made by the team in the last two or three years will reflect in a state-of-the-art operation very soon.
It's also important to highlight that in the Minha Casa Minha Vida housing project environment, there have been many adjustments made in the last two years, but more recently, 30 days ago, I'm sorry, more adjustments were made, making this sector even stronger, and this sector already had good dynamics. I also would like to highlight the regional programs that continue to gain speed, and every quarter, new states implement public policies targeted at these low-end housing segments, which causes in the state area, as well as domestic and national area, for these segments of low income to become very strong, resilient, with funding, good interest rates, and great affordability for our customers.
Because MRV is present in the best market in most of the states of Brazil, and it's a company that's been operating in every market for so many years, it is the company that's most exposed to the strength of the economic segment for low-income housing. We have made changes in our operations, and as well as the adjustments made to the rule of the MCMV program, this places us in a position to deliver very strong results in the next quarter, so that we can once again be the benchmark for the industry in that segment. Talking about Rezia, we started the deleveraging of Rezia at the end of last year with a sale of assets. We have marked the results of three assets, two plots of land, and one project in Dallas that reported losses, but the cash generation will come in the second quarter of this year.
The project continues going very well within plan, and the allocation of projects has accelerated more than we had estimated in the beginning of the year, which makes us absolutely sure that these projects will be sold within the timeline defined by the company. If at first, mark-to-market can hurt Resia's earnings results, later on, we'll receive a lot of cash, and Resia will be responsible for a very strong cash generation in future quarters, which will be very important for us to deleverage the result of MRV & Co very soon. As for guidance, we are very comfortable that the guidance will be met. All the metrics, income, sales price, margin, we are comfortable with them, and we'll certainly deliver on our promise, as stated in the beginning of the year. Now, I will turn the floor over to Kaka to talk more about our financial details.
Good morning, everyone. Now, going into detail and figures, we had an MRV real estate development. Just a minute, please. We had an MRV real estate development, an ROL, that net revenue that increased in 9,000 units than the first quarter of 2025 and 17.5% higher. Net sales lower than 1,400 units that were not transferred. Going into more detail on the impact, we had BRL 320 million in net sales lower than the first quarter, BRL 150 million in revenue, BRL 42 million in gross revenue, and BRL 102 million in cash generation. These bottlenecks were addressed, and the backlog that was generated in the first quarter of 2025 would be transferred. The generation of gross margin, we closed at 29.6% after interest, an evolution of 3.7 percentage points when compared to one year ago, and 2 percentage points when compared to the fourth quarter of 2024.
We had 100% BIPS, an improvement due to the Pro Soluto transfer, with BRL 32 million in. Revenues have grown on an annual basis as well as on a quarterly basis due to branding campaigns. G&A added up to BRL 108 million in the comparison. EBITDA continues to improve, reflecting the better performance of the company. 22% are higher than the fourth quarter of 2022, and 43% higher than Q1 2024. The BRL 132 million was adjusted by BRL 32 million negative in the debt to swap, and BRL 73 million negative in financial expenses due to anticipation of credit assignments, and because it was. Finally, BRL 30 million with a return of ECL and PVA. We had a cash burn of BRL 51 million in the quarter as a consequence of building 9,000 units and transferred 180, and we did not consider the units not transferred due to regional checks.
That has caused a debt in the Brazil operation of 41%, similar to the next quarter. That debt to EBITDA, we had a significant improvement compared to 1Q 2024, 1.27 times compared to 1.84, 56% improvement in this indicator. In the first quarter of 2025, we created a structure for receivables transfer not to generate any credit assignment liability. Brazil continued with the deleverage plan, with an increase in the greater lease speed, and we are making good projects for the right audience. We have the following percentage: 95% Dallas West in terms of leasing, 86% Tributary, Razor Ranch 67, 10 Oaks 60, and Memorial 43%. We sold Dallas West in the beginning of May and two pieces of land that add up to $14 million. So $71 million in properties sold, $35 million, and it generated an expected cash generation of $62 million.
We have $117 million in assets sold within the plan announced of $800 million for 2025 and 2026. This is what I had to say. Now, let's move on to the Q&A session.
Start the Q&A session now. If you have a question, please press the reaction button and then click on raise your hand. If your question is answered, you can leave the queue by clicking on put your hand down. Our first question comes from Tainan, from UBS, Mr. Tainan Costa, from UBS.
Good morning. I would like to explore your guidance regarding cash. You said the bottom is close to $500 million, and your MRV that you said that one-third of it could come from portfolio and the rest from operations. So we're talking about $300 million for operations. Now, thinking about the figures disclosed, we're talking about $350 million for the next nine months.
Are you comfortable with that level? The main driver for improvement for the first quarter is the operation itself, or do you think that the two detractors, like the change in the criteria of Caixa and the change in regional criteria, can be less significant during the year? What do you expect to have? When do you expect to have these two items normalized? Thank you.
Hello, Tainan. This is Rafael Menin speaking. As I said in the beginning, we are comfortable. The operation continues to flow well. Sales have improved every month. The program is strong with good launches. Pricing is moving above inflation, and cash generation will certainly reflect this operational development that is happening every quarter. The second quarter will certainly be better than the first one, the third better than the second, and the fourth is likely to be better than the third.
Nothing changes. We are comfortable and will meet the guidance proposed at the beginning of the year. As for regional programs, we see an improvement. Problems were not 100% solved. They were partially solved, and we expect that until the end of the quarter, we'll be able to solve a good portion of the backlog left from the first quarter. In terms of the change in the accounting criteria that was mentioned two years ago, Caixa defined a timeline for deployment that was followed, so it is only natural that cash generation is postponed. This was already considered in the model to build the guidance for the year. Today, there is BRL 150 million in cash that is not recognized due to this change in the model. This figure grows in the year, but this was considered when we built the model for 2025.
Okay, thank you.
That was very clear.
Our next question comes from Matheus from Santander.
Hello, thank you for the question. I have two questions regarding Resia. First thing, the call to attention in the figures disclosed for Resia. I saw that you reviewed the values up for land bank. I would like to understand this review. What's the rationale for that? The second question is regarding the project. Dallas West, was it according to cap rate compared to the cost of the project? Do you see a trend for improvement in the indicators for the next projects? Also regarding Resia, what's the percentage of the cost of the blond regarding the PSV of the project?
Good morning, Matheus. I'll start with the third point, says Mr. Menin. We haven't purchased land for a long time.
The last time we purchased a plot of land was three years ago, approximately. In general, land represents 10% of the PSV. That depends on the exit cap rate, but it is around 10%. That varies from city to city, so this metric varies a lot. With regard to the sale of Dallas West, the cap rate at the margin has improved quarter on quarter. This sales competitive price was much better. There was a lot more demand than in the last two assets we sold. We sold an asset in the fourth property in the fourth quarter of last year, in the first quarter of last year. Those were more complex sales with tougher contracts. Dallas was a more fluid selling process with a lot more competition. We see the market improving on the margin. Of course, the interest rate of 10 years still impacts this market.
Although inflation persists, there are some signs of deceleration of the U.S. economy. When interest rates drop below 4%, that will be reflected in the cap rate. As important is the rental dynamics. We see a very strong market for that. The number of projects delivered is being reduced. The market for new projects is being widely reduced, and that causes us to rent faster at higher rentals. That makes it more beneficial for us. Also important to know is that for each project that we sell, you notice a better profitability because projects were executed more efficiently and new rentals have increased in price. With time, we do expect a reduction in cap. Puto and Dallas West are the worst profitability projects.
From now on, sales that will happen in the third, fourth quarter of this year and first quarter of next year will certainly have better profitabilities. The last projects to be sold will have positive profitability. Golden Glades, which is to be finished this year in Miami, it will have a yield on cost very much in line with what we had close before COVID, which was close to 7%. There are projects with a yield on cost close to 6-6.5%. You will see that projects with better and better yield on costs and profitability. We do expect the cap to fall. Specifically for Dallas, we'll maintain the same policy than Puto, the publishing or disclosing the profitability, but we won't go into details of yield on cost and cap. What's important is to see that the profitability is improving project on project.
Some assets are, some lands are more difficult to sell because there are few development companies starting new projects. Of course, the profitability to sell land is more complex. That causes us to be able to sell the land much lower than the ideal price. It is a trade-off. We decided to be very aggressive on sales. Of course, if we decided to sell next year in 2027, these lands will be sold at much higher prices. We prefer to be very aggressive in selling, prioritizing balance sheet and speed. That is why we decided to sell these two plots of land at very low margins. In general, we sold them for $15 million, but they were accounted for around $30 million. Our book value was $30 million. If we were able to sell them later on, we would sell them for a much better price.
It was our choice to deleverage Resia as soon as possible. So it's a trade-off. The income statement will be a bit affected, but then Resia will be a great source of cash generation for incoming quarters. Now, Kaka will talk about the NAV.
There was a change in the zoning of two projects, and with that, the mark-to-market of these plots of land increased. These are not land that are for sale. These are plots of land that will be developing new projects later on.
Okay, thank you. Have a good day.
The next question comes from Gustavo from BTG Pactual.
Pessoal, bom dia.
Good morning. I have two questions. A follow-up from Resia. Rafael mentioned in the end about the income statement a bit affected and cash generation coming, you know, increasing soon.
From the point of view of capital, because you have a guidance for cash generation, I would like to understand whether you have an estimate in a bit longer timeframe for two, three years. How much capital do you think that Resia will release for the holding company or Brazil operation once it will be deleveraged and cash will be generated? When we see this loss that you booked on the sale, obviously, based on what Rafael said, it will improve in next sales. How much is left from money to help invest in new projects and deleverage Brazil even further? Resia is more about zeroing the debt in order to start new projects without. For next projects, you will need investors or maybe Brazil injecting capital. The second question is about Brazil.
You've shown an improvement in gross margins, so I would like to understand how do you think about the effects of recent changes announced in April of the brackets for MCMV sales? Has there been any increase in sales or sales oversupply? Do you see any benefits of these changes in the results of the second quarter?
Thank you. Hello, Cambauva. Good morning. Just to recap on Resia. First, regarding sales, we propose to sell and we will sell $800 million in assets in the years of 2025 and 2026. This sale will generate $500 million in cash. The final result, which is your concern, your question about capital, will be that no capital from Brazil will be invested abroad. Any new projects that we may start, that was mentioned in the presentation, will be in a very asset-light model. That is the land that we already have.
There's very little additional capital needed in addition to the land. And as you said, in the consolidation of Resia and your balance sheet, $500 million at an exchange rate of five something, we're talking about almost BRL 3 billion in cash generation in the balance sheet of MRV & Co until the end of 2026. It's a huge amount of money that will bring a huge deleverage to our balance sheet in the coming quarters. As we said many times, the chance of sending capital from Brazil to the U.S. is zero. It's quite the opposite. We have a debt in the U.S. We've discussed that, and Resia has capacity to pay that debt that was made to bring capital to Resia two, three, four years ago. So that's the opposite. No capital from Brazil will go there, and the U.S.
Operation has the capacity to repay this funding made from MRV Brazil to MRV U.S. many years ago. We are very comfortable with our projects. They have been rented at very good rates. Prices are going up. We believe that cap rates will fall. New projects have a very healthy yield on costs. Regardless of the corporate model or corporate structure we will have in the future, Resia will be very healthy because its area of operation is wonderful. The building construction model is tested, the right income segment. In coming years, it will be a very small company with a small balance sheet, deleveraged, and looking at the half full glass from now on. If the full half empty was the deleverage that it brought to our balance sheet, we will bring a huge balance cash generation from that from Resia.
At every asset we sell, you will see a less negative yield on cost until it becomes positive very soon. Today, we're discussing whether we disclose the income statement a bit more because we're being very vocal regarding the $500 million in cash generation. Today, there is a concern about the impact on the income statement of Resia. We may give you some more detail about that to remove that concern from MRV because it's recovering so well. We notice a consensus about the recovery of MRV Brazil. Resia pollutes a bit the storytelling of MRV. We may give you some more details about the income statement. We're discussing that at the board of directors, and soon we'll have some news for you. Again, every time an asset is sold, the profitability will be better than the previous one.
Now, speaking of Brazil, the accounting gross margin is comfortable. What we proposed in the guidance will be met. It's still a gross margin far from what we could deliver. We've seen new projects operating with a gross margin ex-interest close to 38% and with interest around 35%, which places us at a profitability at the top of the segment and with some room to go even beyond that eventually. The program on a regional basis, on a national basis, is very pro-positive. MRV is very well positioned because we did our homework very well in recent years in terms of production, new land, swap model, and percentage of swap portfolio building construction technology. We are very positive that MRV will be the best company in this low-income segment in Brazil. Did I answer all your questions?
Yes, Rafael, thank you.
It's very clear about the changes and Resia. Thank you.
Okay, have a good day, Cambauva.
The next question comes from Bruno from Bradesco BBI.
Good morning, Rafa and Kaka. I have two questions.
Hello, Bruno.
Maybe a bit more technical in accounting terms, but for us to try to reconcile everything because the result, the earnings of the first quarter was a bit dirty or polluted. Operations, it's clear there are operational terms, everything's fine, it's improved, but there was a change in the booking of sales of trade receivables. This was a topic that was widely discussed in the last two years, and you reported a new accounting for the Pro Soluto portfolio sold with a higher impact when compared to previous sales.
If you could, Kaka, tell us what changed and why the rule changed, and if from now on this will be applied to all sales, or if there is a possibility for you to change the booking of credit assignment liability going backward, because this could have a significant impact in the profit guidance. How could we think about this reconciliation of these new sales of trade receivables with the net income guidance? Do you need to make any adjustments to that guidance? I'll ask the second question later on because this was a dense one.
Thank you, Bruno. Good morning. What we've done is in the accounting, we changed the structure of the transaction. We were able to make a modeling in which the risk and benefit of the portfolio was derecognized.
In terms of figures, what happens is that now we have the investors as the subordinated quota, and MRV has a mezzanine quota. We have subordinated mezzanine, and investors are in the sub and senior series and MRV in the mezzanine series. Since we are free from the risk of the transaction, we made this a true sale. This is why it does not generate any credit assignment liability. We did this in the Pro Soluto portfolio. We were very detailed in the explanation. We are not generating any additional expense. We are just advancing an expense that would go through the operation in the entire duration and advancing it for now. That is why we highlighted the figure, because it was not comparable to previous ones. The idea is to simplify our income statement and balance sheet.
If it goes through the income statement all at once, we do not have to show everything. All the expected result goes simply in one time. The idea is to simplify. From now on, we will have this new model for credit assignment for new transactions. In Pro Soluto, that has been decided. This is how we do it. For Flex, we are still discussing the modeling, but it is possible that Flex transactions conducted in the first quarter from now on will be suitable for the recognition after keys are delivered. We do not have the obligation to repurchase after the permit is given and the keys are delivered. We plan to reconcile this amount. Not every financial expense that generated in this transaction that was already in the guidance, but a portion of it was.
We'll start reporting to you the percentage of this expense that was in the guidance and the parts that it was not.
So far, the guidance is capped for profit for net income?
Yes, of these 43 of impact, a percentage will be in the year. T his will be maintained.
And the addition?
Any addition to any additional amount will be disregarded.
As for the debt of MRV U.S., there was a movement that's not shown in the consolidated figures, but there was a change in the balance sheet, the division of the profit and loss of the company between income and loss. We saw the income statement of Resia going up. This bites the net worth of Brazil. I understand that's the funding from MRV U.S. There was a debt that was international, and now you decided to make this issue in Brazil.
If you could explain the rationale for this change in the profit and loss between Resia and Brazil. Thank you. That would be good.
Bruno, when we acquired Resia in 2020, we had a loan in two tranches, totaling $237 million, $107 million that matured in February this year, and the rest to mature February next year. The strategy was we did a loan in MRV Brazil and funded MRV U.S. to pay the debt. That is why a portion of the profit and the net worth comes from here and goes to the U.S. To have comparable figures, we decided to relocate managerially this debt from Brazil to the US so that we can continue to keep track of the result of our investment in the US subsidiary with all the debt and interest and the interest that this new debt will have.
We can have comparable basis.
Okay, just to make clear, there's no new money going from MRV Brazil to Resia, right? All these are liabilities from previous funding transactions.
Yes.
Despite seeing this drop in the cash of MRV Brazil going from here to there, this is reference to previous fundings.
Yes, this is not a Resia. For Resia, this came as equity. What we're doing is just a different way of looking at the balance sheet. The debt MRV U.S. is the same as MRV Brazil, but we're allocating them in different places to facilitate the investment analysis in the U.S. market as a whole.
Okay, understand. Thank you.
The next question comes from Jorel from Goldman Sachs.
Good morning. I have two questions regarding Resia. The first, I would like to understand this. Forecast sales, sales forecasts.
I would like to understand if you could have more impairments to these sales. If yes, at what level? This 10% of the projected value, 15%? The second question is very specifically, I would like to ask about the corporate debt of Resia because you said you paid the first tranche, BRL 107 million. That was funded in reais. How do you, can we expect you to pay the second tranche? Will it be funded in reais, or do you expect to save with Resia sales to pay this with Resia sales?
Hi, good morning, Jorel. This is Rafael speaking. As for profitability, there are several projects and several plots of land. It is complex to talk about the profitability of each project in the Q&A. The important aspect is that at each asset that is sold, the profitability will be better or less negative.
Some of them will still be negative, but less negative than Putu and Dallas West were. The projects that will be sold next year will have a positive profitability. As I said in the previous question, we are discussing internally since there is some lack of or some discomfort from analysts and investors as to what could be the size of the loss. We could then limit a range for loss in the years of 2025 and 2026. It will be likely, it will actually be lower than some people estimate given the price of our share today, but also talking about the counterpart of the cash generation of $500 million. As for the debt, when you sell the project, you automatically pay the debt of that project. We have three debts in the U.S. First is the debt of the project.
When you sell, it's the debt that is settled. Second is the corporate debt of Resia. And the third debt is MRV US debt. As Kaka explained in the previous answer, half of it was paid and the other half will be paid in a year. Since we have a long time to pay, we haven't defined whether we'll get funds in Brazil, if we'll find fund that in the US. But what's important is the deleveraging and a very quick reduction in the balance sheet of Resia. In a very short time, Resia will not only pay the debt of its projects, but also the corporate debt of the company. Is that clear, Jorel?
Yes, that's very clear. Thank you.
The next question comes from Juan from XP.
Hello, good morning. I have two specific points I would like to touch on. First, investment with Resia.
We see that the production number of units produced has dropped, but investment in construction is growing year on year and quarter on quarter. I would like to understand the effect of that. Do you expect a reduction in investments in construction? That will maybe generate a more consistent cash generation scenario for Resia in next quarters. The second, there was a significant drop in this quarter in terms of sales. Is it a seasonal effect or is there any strategy related to that?
Hello, Juan, good morning. Rafael speaking. Resia. Could you ask again? Juan,
it is about investment in construction. How do you see the scenario in the future? Because the number of units has dropped, but the investment is the same.
Thank you, Juan. We have one ongoing project, which is the Miami project, and starting a second project in Texas.
The equity of Resia comes first, and then comes the equity of partners. The capital stack for this project is closed and settled. We had a higher expense in the first quarter with the property taxes, permits to approve the projects. There was a higher disbursement in the first quarter than we have in the second quarter. There is a guidance for Resia this year, which is the generation of $270 million, and this guidance will be met. We are very comfortable with sales, especially the sales of projects. Expenses will be reduced quarter on quarter from now on. Also, because the next project, which is located in Dallas as well, will be different. Resia will be more of a service provider. A very small equity amount will be involved. Most likely, the construction debt will not be consolidated into Resia's balance sheet.
Now I will turn the floor to Fischer to talk about our strategy regarding sales of MCMV and in the Flex, which is direct financing.
Hello, this is Fischer speaking. This direct sales portfolio is something we like. We're able to sell Opar, as Kaka mentioned in the opening. We like it because it's an additional sale in addition to the regular funding sources for MRV. Some people who have any restrictions with banks and prefer to purchase directly from us. We sell. It makes sense for us. Also, after the construction is finished, we can recognize that and have everything in-house in the end.
The counterpart of that, as in one of the questions today, is that there was a very favorable change in the MCMV program and in all the brackets, but the creation of bracket 4 competes with this funding because then the customer has a very good option in terms of low-end conditions, low-end terms, and interest rates. Looking forward, I believe that there will be a drop in that line because it will compete with the funding sources that are more competitive and did not exist before. Our strategy does not change because we do see a specific target, but a part of it will migrate to bracket 4 because a good portion of our sales fits the price and the income levels that apply to bracket 4. Is it clear?
Yes. Thank you, Kaka, Fischer, everyone. Have a good day.
Our next question comes from Marcelo from JP Morgan.
Good morning, everyone. I have two questions. I want to go back to the impairment of Resia. I'm sorry about that, but just to make sure I understand it. What was the driver to recognize this in the first quarter if sale will happen in the second quarter? Is this a matter of signing the contract compared to the closing of the transaction? Also, do you really stop announcing when you sell Resia? Because you used to send a material fact of that, maybe we missed it. Just to understand whether we will not have any material fact communication in the future. Also, in terms of selling expenses, we tried to compare it to launches. It seems to be the total selling expenses have increased per se or when compared to budget.
Is there any change or any seasonality effect?
Thank you. Okay, Marta. Regarding Resia, what happened was since these three assets are as properties available for sale, and there was an assessment of the evaluation of these projects with purchase and sale agreements signed for the second quarter, we did the accounting and impairment because of that. When it is actually financially settled, that has not happened. It will happen in the second quarter. That is why we marked, but we did not announce the data. That is the difference.
This is Fischer answering your second question, Marta. Yes, there was an increase in expenses in this quarter. We mentioned that in some conversations, including MRV date. We made a significant investment in some branding and performance actions in the first quarter. That is basically what caused this increase.
The consequence of it was, as Kamba Uvest in the beginning earlier, we started the second quarter with a funnel of customers we've never had in our history. Looking at our launches strategy, that's very robust in the second and third quarters. With that, we're able to, we're prepared to have very good sales in these next two quarters. We have very great launches, a wonderful funnel because of this campaign, and we'll have very robust sales. Looking at the expense itself, it will tend to go back to regular levels and a trend of dilution if these sales that we expect do come true. Just to give you some context, we started, we closed April. It was a very good month of sales as a consequence of the campaign of launches.
Answering you more directly, the commercial expenses line will probably go back to historical levels with additional dilution that will come when these second and third quarter sales are affected.
That is clear. Thank you both.
The next question comes from Alejandra from Morgan Stanley.
Hi, good morning, MRV team. Thank you for taking my question. I mean, it is clear that the underlying fundamentals for Topline for Minha Casa Minha Vida are there, and we might see more of that. I was hoping if you can talk about how this could be translating into market share for you and how your market share has evolved over the last year. I mean, if you couple demand trends in each of the groups, what you are seeing on the ground and your land bank and your firepower to perhaps capitalize on that.
I mean, if you can comment on how all of this has helped you evolve in terms of market share, where do you see more room and where do you see your market share landing ahead? I mean, once all the moving parts settle. If I can tag to that, if you can remind us on your exposure to each of the groups, how does that look like today? Thank you.
Hi, Alejandra. This is Ricardo. The first question regarding the market share, what we are seeing is that we currently have historically, we currently we have like between 10-12% market share in the social housing program. We are currently a little below this number because the total number of units increased in the last cycle, in the last couple of years.
What you're seeing today is that we have a much broader exposure geographically speaking in all the markets in Brazil. We have this opportunity to catch up with this historical market share, meaning that we are currently roughly between 8% and 10%, we should go to 10%-12% in the years to come. I'm sorry, but I lost your second question.
Don't worry. My question was if you can remind us how much exposure you have to each of the groups today and how much we will have in the future. Like where do you see that landing?
Okay, perfect. Prior to the announcement of the bracket 4 of the social housing program, we used to have like 86% of the PSV within the social housing program and 14% outside of it.
But as it was announced, the bracket 4 going up to BRL 500,000 and BRL 12,000 of family income, we currently have like 97%-98% of the whole inventory inside the social housing program. The bracket 3 currently is towards about 30% of the total volume.
Got it. That was very clear. Thank you very much. You're welcome.
Encerramos nesse momento a sessão de perguntas e respostas. Para as considerações.
This ends the Q&A session. For the final remarks, I would like to turn the floor over to Mr. Eduardo Fischer.
Thank you very much. Just an additional point. Of course, most of the call was about Resia. Going back to one point, you attended MRV Day in April.
In addition to these ambitions of volume for this year, recovery of margin, and our guidance, we had a chance of explaining more in detail all the initiatives in increasing commercial efficiency, productivity gains, improved efficiency in land bank purchase. This is not in our guidance for 2025. When these operations go into the system during this year, in addition to what we've said in terms of guidance for recovery of operations of the company for 2026, there will be an additional development coming from productive efficiency in the three main operational areas we're in, as you could see in detail in the MRV Day. That is why Rafa said in the beginning that we do expect to be the benchmark in the industry, in the sector of MCMV. That is for better launch. We have better launches, better pricing.
When we reach that in 2025, but on top of that, we have all the initiatives that we showed in MRV Day, we are confident that beyond 2025, we'll be able to have a development, much better trend for recovering the company, improving margins, and once again, we'll be the benchmark of the sector. This is why I would like to make clear because MRV operation is gaining more and more efficiency and is in a trend recovery of trend that we expect to be very positive. Thank you very much.
The conference call of MRV has now ended. We thank you all for attending and have a good day.