PDG reaches US$ 2.8 billion in sales in the year
Valor Econômico 10/05/10
In a year of a boom in the sales in the real estate market, the alert eyes of investors turn towards the public companies: are the results of the large companies able to reflect, to the same extent, the heating of the sector? Largest land developer of Brazil after the purchase of Agre, PDG Realty took a step ahead and on the second business day of the month presented the market the numbers of the third quarter. Yes, the company shows its operating performance responds to strong demand.Regardless of the FIFA World Cup and the elections, the company sold R$ 1.85 billion (US$ 1.1 billion) in real estate between July and September, which represents growth of 39.3% compared to the same period last year and 19% compared to the second quarter this year - which had already been record. In the first nine months of the year, PDG Realty sold R$ 4.7 billion (US$ 2.76 billion), 59.3% more than in the period from January to September 2009. Last year as a whole, without Agre, PDG sold R$ 2.6 billion (US$ 1.32 billion).
In addition to the shareholders, the development of the PDG operation is carefully evaluated by the competition - that is rehearsing a new movement of consolidation. The gain in size and the volume have become essential for the sector that demands great working capital. And the figures also show that the purchase of Agre, a company with a complicated history that gathered three assets with problems and debts - Agra, Klabin Segall and Abyara -, have, in fact, leveraged the operations of PDG. Although it contaminated the balance of PDG with a greater debt - with a great part of it already renegotiated - and lesser net margin, the gigantism of new operation has not caused the company to become slower. The speed of sales reached 33% in the third quarter, above the two previous quarters.
With land inherited from Agra, Abyara and Klabin Segall - despite the financial debts, the companies have always been known for the quality of the assets -, the company managed to launch, only in the third quarter, R$ 2 billion (US$ 1.18 billion) in 67 new undertakings and reached 70% of the total volume of launchings planned for the year. If it repeats the performance of this quarter in the next, it will get to R$ 7 billion (US$ 4.12 billion), average point of the so-called "guidance". The "new" PDG has also lost the appeal of a company for the low-income segment and it is now positioned as a company for the middle class. 82% of the total undertakings launched regards real estate units of up to R$ 500 thousand/US$ 294 thousand (ceiling of the SFH, the Housing Financial System). In the low-income segment (below R$ 250 thousand/US$ 147 thousand), 63% are eligible to the My Home, My Life program.