January 18, 2018 / 10:53 AM / 3 months ago

Brazilian developer Cyrela reports fourth quarter sales jump

SAO PAULO, Jan 18 (Reuters) - Sales at Cyrela Brazil Realty SA rose sharply in the fourth quarter while the volume of project launches remained roughly flat, the company said late on Wednesday, as the upscale developer benefits from a real estate rebound in Brazil.

In a securities filing, Cyrela, one of Latin America’s largest homebuilders, said net contracted sales rose 15 percent to 1.253 billion reais ($389 million). New home launches fell 0.4 percent to 1.269 billion reais, but jumped 107 percent quarter on quarter.

In 2017 overall, sales rose 17.8 percent to 3.26 billion reais, while project launches grew 3.9 percent to 3.05 billion reais.

In a client note, analysts at Itau BBA led by Enrico Trotta called the figures “solid” noting the speed of sales as well as launches and pre-sales figures all posted quarterly improvements.

Cyrela and its peers are benefiting from a real estate rebound in Latin America’s largest economy after a severe downturn that led to several major bankruptcies.

In particular, Cyrela’s lower-end peers, such as Construtora Tenda SA and MRV Engenharia e Participações SA are on aggressive expansion drives.

$1 = 3.22 reais Reporting by Gram Slattery; editing by Jason Neely

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