Main Revenues, Costs and Expenses

Real Estate
  • Main Operating Revenues

Revenue from the sales of inventory from the projects launched (Fazenda Boa Vista, Boa Vista Village, Fasano Cidade Jardim and the pre-launch Boa Vista Estates), which are developed on land already paid and the Company maintains in his landbank, without the existence of swap.

Revenues from the sale of real estate units (apartments and houses) are recognized using the POC (Percentage of Completion) method, in which revenue is allocated according to the cost incurred for the work until its completion. For lots, revenue is 100% recognized in the period in which the sale was made, as the POC method does not apply.

  • Main Costs and Expenses

Project construction costs: land, construction material, labor, among others. The construction of the projects is carried out by outsourced companies.

Expenses: administrative (personal, legal, taxes and fees, among others) and commercial (marketing, sales stand, consulting and commissions).

Malls, Retail and Digital
  • Main Operating Revenues
  1. Rental Revenue (rent)

Revenue from lease agreements for commercial spaces in the mall that the Company has in its portfolio. These contracts, as a rule, have a term of five years, with annual adjustments on the anniversary of the contract. Tenants of commercial units generally pay a monthly minimum rent, adjusted annually mostly based on the variation of the General Price Index – Market (IGP-M), and an amount obtained by applying a percentage on gross sales revenue of each lessee.

  1. Other Operating Revenue

Revenue from assignment of rights of use: the amount paid by the tenant to enter the mall. Its revenue is recognized in the key money income account in straight installments, only after the opening of a store, for the period of the lease agreement.

Revenue from parking: operation of shopping mall parking lots. Revenues from services rendered: condominium management services, telecom services and sale of electricity to shopping malls.

Retail+Digital Revenue: Sale of exclusive national and international brands and other digital operations.

  • Main Costs and Expenses

Costs: salaries and benefits of employees who work in the operational functions of Shopping Malls, purchase of merchandise for the sale of telephony and electric energy services and purchase of merchandise in the Retail operation.

Expenses: administrative (expenses with personnel for administrative functions and stores in the Retail segment, rent in the Retail segment and condominium expenses) and commercial expenses (marketing and publicity and advertising).

Hospitality and Gastronomy
  • Main Operating Revenues

Hospitality:

Revenue from the operation of 9 hotels (São Paulo, Rio de Janeiro, Fazenda Boa Vista, Punta del Este, Angra dos Reis, Belo Horizonte, Salvador, Trancoso and New York). In owned hotels, revenues come from room and apartment rates, in addition to the consumption of food and beverages and other concierge services provided by the hotels. In managed hotels, revenue comes from operating fees.

Gastronomy:

Revenue from the operation of 28 restaurants and bars in 8 cities (São Paulo, Rio de Janeiro, Brasília, Angra dos Reis, Punta del Este, Belo Horizonte, Salvador Trancoso and New York). Revenue refers to the sale of food and beverages.

Other Revenues: Branding fees for the sale of properties under the Fasano brand and marketing fees. Note: The Company owns 65% of HMI, the holding company that owns the Fasano brand.

  • Main Costs and Expenses

Costs

Hospitality: expenses with personnel for the operational functions of the hotels, in addition to maintenance expenses of the facilities (laundry, electricity, repairs, among others).

Gastronomy: expenses with personnel for the operational functions of the restaurants, purchase of food and beverages, maintenance of facilities and rent expenses.

International Executive Airport
  • Main Operating Revenues
  1. Hangar allocation: revenue from the hangar of aircraft of customers with medium to long-term contracts or through individual customers who keep their aircraft hangared for a shorter period of time.
  2. FBO (Fixed Based Operations): Services provided such as aircraft cleaning, polishing, among others.
  3. Fuel Sales: revenue from the resale of fuel to hangared and freelance customers.
  4. Movements (hangared, freelance and international): revenue resulting from the fees for the use of the runway.
  5. Air taxi and Catarina Jets: revenue from the use of helicopters and aircraft owned by the Company. NOTE: revenues from international flights are received in dollars ($).
  • Main Costs and Expenses

Costs: expenses with personnel for the airport’s operational functions, purchase of fuel (variable cost) and maintenance of own aircraft.

Expenses: expenses with personnel of the administrative functions of the airport, insurance, condominium expenses and depreciation (without cash effect).