ESG (Environmental, Social and Governance): Term addresses matters related to good environmental, social and governance practices. For more information on these practices at TEGRA, please access our Integrated Report by clicking here.

Gross Sales: Represents the total sales amount per period and is comprised of sales of launched units, units under construction and delivered units.

Habite-se: Document issued by the local city hall attesting that the property was built in accordance with the established norms.

INCC (National Construction Cost Index): Inflation index that reflects the increase or decrease in construction costs in Brazil. The INCC is compiled and published on a monthly basis by Fundação Getúlio Vargas (FGV).

Landbank: Land that TEGRA has for future developments. It consists of (i) land acquired and registered and (ii) land contracted and close to registration upon payment or formalization of a swap contract.

Net Sales: Represents the amount of Gross Sales minus Terminations that occurred during the period.

POC (Percentage of Completion): Specific methodology of the real estate sector regarding the accounting recognition of the economic result. Revenues are recognized upon the financial evolution of the construction, which is measured by the proportion of costs incurred in relation to the total budgeted construction cost for each project.

Project Financing Debt: Banking credit line destined to finance the construction costs of real estate projects.

PSV (Potential Sales Value): Represents the total potential value to be obtained from the sales of all units of a project.

Mortgage Takeout: The moment where customers settle their debts with TEGRA through bank financing. The mortgage takeout can occur in advance, during the construction phase, or when the project is delivered.

Result to be appropriated: Due to the POC methodology that recognizes costs and revenues as the construction progresses, this result refers to the future recognition of revenues deducted from the costs of units sold. This appropriation occurs as construction progresses.

ROE (Return on Equity): This financial metric compares the net income generated in a period in relation to the Company’s total equity.

SFH (Housing Financial System): Housing financing system deriving from savings account and FGTS resources, which offers favorable conditions regarding interest rates and payment terms for the acquisition and construction of real estate in Brazil.

SoS (Sales over Supply): It shows the volume of units sold in a given period in relation to the units available. It is calculated by the formula: Gross Sales in the period / (Initial Inventory of the period + Projects launched in the period).

Swap: Land acquisition method where the owner sells his property and in exchange for physical units or part of the revenue of that project.

Tegra (%) Participation: Percentage that represents only TEGRA’s share in the project, excluding any share belonging to partners.

Terminations: Represents the cancellation of the customer’s purchase agreement in accordance with current laws.