São Carlos Empreendimentos e Participações S A : Dados Econômico-Financeiros

EARNINGS RELEASE

4Q23 & 2023

4Q23 Videoconference

March 14, 2023

Portuguese

10:00 a.m. (Brasília) 08:00 a.m. (New York) Click here to access

Investor Relations

Phone: + 55 11 3048-5419

E-mail: [e-mail]

ITAG IGC IGC-NM

Index

MESSAGE FROM MANAGEMENT	3
PORTFOLIO HIGHLIGHTS	5
GROSS REVENUE	7
NOI - NET OPERATING INCOME	7
PORTFOLIO VACANCY	7
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	8
EBITDA	8
FINANCIAL RESULT	8
FFO	9
NET INCOME/LOSS	9
ASSET MANAGEMENT	10
CAPITAL STRUCTURE	11
CAPITAL MARKET	12
OUR BUSINESS PLATFORMS	12
SUSTAINABILITY - ESG (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)	17
ATTACHMENTS	19
GLOSSARY	26

4Q23 Results

Message from Management

2023 was marked by the successful execution of Company's assets recycling, resulting in a significant reduction in financial leverage. Assets sales totaled R$ 1.4 billion, leading to a 68.2% reduction in net debt (vs 2022) and a net profit of R$ 305.2 million.

In the quarter, we completed the sale of 100% of the following buildings: Centro Empresarial Botafogo (CEB), Morumbi Office Tower (MOT), Corporate Plaza and Alameda Santos 2477, totaling 58.875 thousand sq.m of GLA, for R$ 865.0 million. The cap rate was 7.4%, considering the rental revenue from the current contracts, and a real IRR after-taxes of 27.3% per year. In the Best Center unit, we executed the sale of another street store leased to Lojas Pernambucanas in Coxim/MS, for R$ 2.7 million. In total, 12 street stores were sold in 2023, totaling R$ 119.4 million and an average cap rate of 7.2%. Additionally, we completed the sale of two land plots for R$ 6.7 million. In total, four land plots were divested during the year totaling R$ 9.3 million.

As a result of the assets recycling, the net debt of the Company reduced from R$ 1,736.7 million to R$ 552.5 million. The Company's leverage, measured by the ratio of net debt over portfolio value, reduced from 31.5% to 13.9%, 17.5 p.p. lower compared to Dec/22.

Combating vacancy was also a priority in 2023. During the year we celebrated leasing contracts that totaled 37.2 thousand sq.m of GLA, of which 9.1 thousand sq.m in the 4Q23. The portfolio ended the year with a physical vacancy rate of 23.4%, 5.2 p.p. above 4Q22, explained by the sale of assets that were largely occupied.

Total EBITDA reached R$ 604.3 million in 2023, growing 175.7% when compared to 2022. Recurring EBITDA was R$ 164.9 million in the year.

In Office, we signed 17 new contracts in our Flex Office offer, expanding in 50.3% the GLA (vs 2022), reaching a total of 13.2 thousand sq.m, demonstrating our distinctive offer aimed at meeting customer's demand for furnished corporate spaces with services. In total, new leasing contracts reached 24.9 thousand sq.m of GLA in the year, of which 6.8 thousand sq.m in the 4Q23.

In the Best Center, we ended the year with 8.0% vacancy rate, a 0.5 p.p. reduction compared to 4Q22. Same Store Sales (SSS) from our strip malls grew 5.1% in 4Q23, when compared with the same quarter of the previous year. We have a portfolio of mature strip malls that have proven to be resilient across different market cycles.

In the SC Living, the year was marked by a strong demand for rental apartments and rental price increase above inflation. The GO850 building, located in Vila Olimpia, ended the year with 72.5% occupancy rate against 32.9% in Dec/22. Additionally, we are continuing our plan to convert office-to-residential buildings in downtown Rio de Janeiro, having already selected three buildings with potential for this use.

At the end of 2023, we received the resignation of the Chairman of the Board of Directors Mr. Rolando Mifano, after 12 years as Chairman and 12 years as CEO of the Company. Subsequently as part of a natural transition process and succession plan, it was appointed Mr. Felipe de Faria Góes as Chaiman of the Board of Directors and Mr. Gustavo Machado Mascarenhas as CEO and IR Director.

Our priorities for 2024 are client retention and vacancy reduction, selective recycling of mature assets and new models and structures that enable a smaller discount against NAV.

3

4Q23 Results

Gross revenue totaled R$ 1.4 billion and Net Income reached R$ 305.2 million

Net Debt reduction of 68.2%

São Paulo, March 13th, 2024 - São Carlos Empreendimentos e Participações S.A. ("São Carlos" or "Company") announces today its results for the fourth quarter of 2023 (4Q23). In order to preserve comparability, the Company presents an analysis of the recurring results of its leasing activity to exclude the impacts of non- recurring events (more details in the 'Adjustments to the Income Statement' section).

• Gross revenues from leases reached R$ 65.7 million in 4Q23
• Recurring EBITDA achieved R$ 32.9 million, with a margin of 54.4% in 4Q23
• Net Income was R$ 305.2 million in the year
• New leases totaled 37.2 thousand sq.m in 2023, of which 9.1 thousand sq.m in 4Q23
• Flex Office reached a total of 13.2 thousand sq.m of leased GLA (+50.3% vs 4Q22)
• Sales of assets totaled R$ 874.4 million in 4Q23
• Net debt reduction from R$ 1,736.7 million to R$ 552.5 million in Dec/23
• Dividends payment proposal of R$ 100.0 million, a 32.8% payout, subject to Annual Shareholders Meeting approval
• NAV (Net Asset Value) reached R$ 3.4 billion, with NAV per share of R$ 59.8

Key Indicators

Gross Revenues from leases (R$ million)

NOI Margin

4Q23	4Q22	∆ %

65.7 86.6 -24.1%

81.6%

91.9% -10.3 p.p.

2023

266.1

84.4%

2022

297.4

88.2%

∆ %

-10.5%

-3.8 p.p.

Revenues from Sales Properties R$ (R$ million)	760.3	89.6	749.0%	1,196.3	98.1	1119.9%
EBITDA (R$ million)	335.8	78.5	327.9%	604.3	219.2	175.7%
EBITDA Margin	42.6%	45.2%	-2.6 p.p.	43.2%	56.9%	-13.8 p.p.
Recurring EBITDA (R$ million)	32.9	67.0	-50.8%	164.9	206.8	-20.3%
EBITDA Recurring Margin	54.4%	79.9%	-25.5 p.p.	65.2%	72.1%	-6.9 p.p.
FFO (R$ million)	268.7	11.7	2198.9%	358.4	(11.0)	-3370.0%
FFO Margin	34.1%	6.7%	27.4 p.p.	25.6%	-2.8%	28.4 p.p.
Recurring FFO (R$ million)	(7.9)	11.8	-166.9%	(46.5)	(11.3)	310.7%
FFO Recurring Margin	-13.1%	14.1%	-27.1 p.p.	-18.4%	-3.9%	-14.4 p.p.
Net Income (Loss) (R$ million)	254.8	(11.2)	2171.7%	305.2	(80.2)	280.4%
Recurring Net Income Margin	32.4%	-6.5%	38.8 p.p.	21.8%	-20.8%	42.6 p.p.
Recurring Net Income (Loss) (R$ million)	(21.7)	(3.1)	593.4%	(99.6)	(72.6)	37.2%
Net Margin	-35.9%	-3.7%	-32.2 p.p.	-39.4%	-25.3%	-14.1 p.p.
NAV (R$ billion)	3.4	3.8	-9.8%
NAV per share (R$)	59.8	66.5	-10.1%
Portfolio value (R$ billion)	3.9	5.5	-28.4%
GLA (thousand sq.m.)	397	500	-20.6%

4

4Q23 Results

Portfolio Highlights

Asset recycling has always been an important part of the Company's business model. The liquidity and attractiveness of our assets are reflected in recently concluded transactions, with property sales values in line with NAV (Net Asset Value).

In 2023, sales of assets reached R$ 1.4 billion, 8.2% below NAV with a cap rate of 7.1%.

Asset

Name

Cornélio Procópio - PR

Jardim Europa - SP

Segment

Street Store Office

GLA (sq.m)

1,251

9,001

Date

jan/23

feb/23

		Desinvestment
	Cap rate		Amount R$		NAV
		(MM)
	6.9%		5.1		5.7
6.0%	150.0	143.1

Upside

-10.5% 4.8%

	Chácara Santo Antônio 1 - SP		Strip Mall			438		feb/23			5.4%		2.4		1.1			118.2%
	Leblon Green* - RJ		Office	3,084	mar/23	-	91.0	83.8	8.6%
	Campo Grande - MS		Street Store			2,001		mar/23			7.1%		8.1		9.1			-11.0%
	TOTAL - 1Q23					15,775					6.1%		256.6		242.8			5.7%
	João Brícola - SP		Office	12,106	apr/23	-	71.5	81.2	-11.9%
	Rondonópolis - MT		Street Store			1,667		apr/23			7.2%		5.9		8.4			-29.8%
	Cascavel - PR		Street Store	3,307	mar/23	6.3%	13.1	12.4	5.6%
	Guarulhos - SP		Street Store			1,599
	Gonzaga - SP		Street Store			1,141		jun/23			7.6%		51.0		50.1			1.8%
	Bebedouro - SP		Street Store			1,362
	Araraquara - SP		Street Store			2,162
	Ubatuba - SP		Street Store	2,086	jun/23	4.6%	13.4	13.6	-1.5%
	Bauru (Jd Cruzeiro do Sul) - SP		Landbank			-		jun/23			-		1.6		2.2			-27.3%
	Itaim Center - SP		Office	6,524	jun/23	6.8%	90.0	87.7	2.6%
	Chácara Santo Antonio 2 - SP		Strip Mall			555		jun/23			6.6%		3.8		4.2			-9.5%
	TOTAL - 2Q23					32,509					6.8%		250.3		259.8			-3.7%
	São José dos Pinhais - PR		Street Store	2,936	jul/23	7.1%	17.0	14.9	14.1%
	Presidente Prudente - SP		Street Store			496		sep/23			8.1%		3.1		3.4			-8.6%
	Bauru - Vila Souto - SP		Landbank	-	sep/23	-	1.0	1.7	-39.4%
	TOTAL - 3Q23					3,432					7.3%		21.1		19.9			5.8%
	Centro Empresarial Botafogo - SP		Office			23,440		dec/23
	Morumbi Office Tower - SP		Office			18,479		dec/23			7.4%		865.0		993.5			-12.9%
	Corporate Plaza -SP		Office			10,489		dec/23
	Alameda Santos 2.477 - SP		Office			6,468		dec/23
	São Carlos Miguel Petroni - SP		Landbank	-	dec/23	-	4.4	5.0	-13.2%
	Coxim - SP		Street Store			716		dec/23			9.3%		2.7		3.7			-26.4%
	Itapetininga - VI Popular - SP		Landbank	-	dec/23	-	2.4	2.8	-17.2%
	TOTAL - 4Q23					59,591					7.4%		874.4		1,005.1			-13.0%
	Office					89,590							1,267.5
	Street Store					20,724							119.4
	Landbank					0							9.3
	Strip Mall					993							6.2
	TOTAL - 2023					111,307					7.1%		1,402.4		1,527.6			-8.2%

1 Purchase and sale agreement with preconditions.

5

4Q23 Results

Transactions completed in the fourth quarter - total of R$ 874.4 million

In December of 2023, São Carlos completed the sale of 100% of the following buildings: Centro Empresarial Botafogo (CEB), Morumbi Office Tower (MOT), Corporate Plaza and Alameda Santos 2477, totaling 58.875 thousand sq.m of GLA, for R$ 865.0 million. The sale cap rate was 7.4%, considering the rental revenue from the current contracts, and real IRR after-taxes was 27.3% per year.

Also in December, Best Center completed the sale of the street store located in Coxim - MS with 716 sq.m of GLA for R$ 2.7 million and a cap rate de 9.3%. The transaction value was 26.4% below NAV. Additionally, as part of the Company's assets divestment strategy, two Best Center land plot were sold. The first located in Itapetininga (SP) for R$ 2.4 million and the second in São Carlos (SP) for R$ 4.4 million.

Transactions occurred in the 1st quarter of 2024 (Subsequent Events)

In January of 2024 São Carlos completed the sale of Edifício Vista Olímpica, for R$ 46.0 million, 100% paid in the act of signing. The transaction value was 0.2% above NAV. The property is an office building located in the Avenue Presidente Vargas, 62 - RJ with 6.401 thousand sq.m of GLA and was 100% vacant. Besides that, Best Center completed the sale of the street store leased to Lojas Pernambucanas and located in Trindade (SP) with a GLA of 2.336 sq.m for the value of R$ 17.3 million and a cap rate of 7.1%. The transaction value was 4.0% above NAV.

6

4Q23 Results

Gross Revenue

The Consolidated Gross Revenue with leases and services totaled R$ 67.0 million in 4Q23, a reduction of 24.9% when compared to the same period one year ago, impacted by assets sales in the last 12 months.

Gross Revenues - R$ million

Office

4Q23	4Q22	∆ %
47.4	66.5	-28.7%

2023

192.2

2022

217.7

∆ %

-11.7%

Best Center	16.3	19.0	-14.1%	66.7	75.8	-12.0%
SC Living	2.0	1.1	83.7%	7.2	3.9	84.8%
Gross Revenues from Leases	65.7	86.6	-24.1%	266.1	297.4	-10.5%
Services	1.2	2.6	-52.3%	5.1	7.6	-33.1%
Consolidated Gross Revenues	67.0	89.2	-24.9%	271.2	305.0	-11.1%

NOI - Net Operating Income

The Consolidated NOI with leases reached R$ 53.7 million in 4Q23 with a margin of 81.6%, impacted by assets sales in the last 12 months.

NOI - R$ million

Office

Margin NOI

4Q23	4Q22	∆ %

37.4 61.2 -38.9%

78.8%

91.9%

-13.1 p.p.

2023

158.7

82.6%

2022

189.0

86.8%

∆ %

-16.1%

-4.3 p.p.

Best Center	14.8	17.9	-17.2%	60.5	71.3	-15.2%
Margin NOI	90.9%	94.3%	-3.3 p.p.	90.6%	94.1%	-3.5 p.p.
SC Living	1.5	0.6	159.3%	5.3	1.9	181.9%
Margin NOI	73.0%	51.7%	21.3 p.p.	74.5%	48.8%	25.6 p.p.
NOI Consolidate	53.7	79.6	-32.6%	224.5	262.3	-14.4%
Margin NOI	81.6%	91.9%	-10.3 p.p.	84.4%	88.2%	-3.8 p.p.

Portfolio Vacancy

The portfolio's physical and financial vacancy rates ended 4Q23 at 23.4% and 23.5% respectively. The increase in vacancy, when compared to 4Q22, is impacted mainly from the sale of mature assets that had high occupancy rates.

In the quarter, new contracts totaled 9.1 thousand sq.m and net absorption was 7.1 thousand sq.m. The Company's vacancy rate remains below the averages of the markets in which we operate in (SP e RJ).

19.8%	23.9%	22.8%	22.6%	22.9%	21.7%	22.9%	23.5%	23.4%
18.2%

4Q22	1Q23		2Q23	3Q23	4Q23
			Financial Vacancy		Physical Vacancy

Note: not considering properties in retrofit, in use conversion processes and commercial spaces for sale.

7

4Q23 Results

Selling, General and Administrative Expenses

SG&A expenses reached R$ 27.0 million in 4Q23, a 56.7% increase when compared to the same quarter one year before, impacted by the operating expenses provision from assets sold and provision related to the achievement of Company's annual goals, resulting from higher volume of assets sales during the year.

SG&A - R$ million

Office

% Net Revenue

Best Center

% Net Revenue

SC Living

% Net Revenue

4Q23	4Q22	∆ %	2023	2022	∆ %
(19.6)	(12.0)	62.9%	(62.3)	(60.2)	3.5%
45.2%	18.5%	26.7 p.p.	-34.0%	28.4%	-62.3 p.p.
(6.2)	(4.4)	41.2%	(21.7)	(17.0)	27.3%
40.0%	24.5%	15.6 p.p.	-34.4%	23.9%	-58.3 p.p.
(1.3)	(0.9)	49.2%	(4.4)	(3.9)	11.9%
70.0%	86.5%	-16.4 p.p.	-67.2%	110.9%	-178.0 p.p.

Consolidated SG&A expenses	(27.0)	(17.3)	56.7%	(88.4)	(81.2)	8.9%
% Net Revenue	44.7%	20.6%	24.1 p.p.	-34.9%	28.3%	-63.2 p.p.

EBITDA

The Recurring EBITDA reached R$ 32.9 million in 4Q23. In 2023, the Total Consolidated EBITDA (including assets sales) totaled R$ 604.3 million, 175.7% higher than 2022.

EBITDA - R$ million

4Q23

4Q22

∆ %

2023

2022

∆ %

Office	23.1	53.3	-56.7%	121.3	152.9	-20.7%
EBITDA Margin	53.4%	82.1%	-28.7 p.p.	66.1%	72.0%	-5.9 p.p.
Best Center	9.2	13.5	-31.8%	41.4	54.3	-23.7%
EBITDA Margin	59.7%	75.5%	-15.9 p.p.	65.7%	76.3%	-10.7 p.p.
SC Living	0.6	0.2	236.4%	2.2	(0.3)	-779.3%
EBITDA Margin	34.6%	18.9%	15.6 p.p.	34.1%	-9.3%	43.4 p.p.
Consolidated Recurring EBITDA	32.9	67.0	-50.8%	164.9	206.8	-20.3%
Recurring EBITDA Margin	54.4%	79.9%	-25.5 p.p.	65.2%	72.1%	-6.9 p.p.
Total EBITDA	335.8	78.5	327.9%	604.3	219.2	175.7%
EBITDA Margin	42.6%	45.2%	-2.6 p.p.	43.2%	56.9%	-13.8 p.p.

Financial Result

The quarter's financial result reached R$ -36.7 million, 31.0% less than 4Q22, due to a lower net debt of the period.

Financial Result - R$ million

Office

4Q23

(29.1)

4Q22

(40.6)

∆ %

-28.2%

2023

(157.0)

2022

(151.0)

• %
  3.9%

Best Center	(5.1)	(9.8)	-47.5%	(27.7)	(42.2)	-34.4%
SC Living	(2.4)	(2.8)	-13.2%	(10.5)	(10.7)	-2.4%
Financial result	(36.7)	(53.1)	-31.0%	(195.1)	(204.0)	-4.3%

8

4Q23 Results

FFO

The Recurring FFO reached R$ -7.9 million in the quarter. Now the FFO including assets sales was R$ 268.7 million in 4Q23, (with 34.1% margin) and R$ 358.4 million in 2023, impacted positively by portfolio assets recycling done during the year.

FFO - R$ million

Office

FFO Margin

4Q23

(10.1)

-23.3%

4Q22	∆ %

8.9 -213.6%

13.7%

-37.0 p.p.

2023

(51.7)

-28.2%

2022

(14.6)

-6.9%

∆ %

254.1%

-21.3 p.p.

Best Center	3.1	4.3	-26.7%	9.8	9.5	3.7%
FFO Margin	20.3%	23.9%	-3.6 p.p.	15.6%	13.3%	2.3 p.p.
SC Living	(1.0)	(1.3)	-28.2%	(4.6)	(6.2)	-26.2%
FFO Margin	-51.6%	-132.5%	80.8 p.p.	-70.0%	-175.1%	105.1 p.p.
Consolidated Recurring FFO	(7.9)	11.8	-166.9%	(46.5)	(11.3)	310.7%
Recurring FFO Margin	-13.1%	14.1%	-27.1 p.p.	-18.4%	-3.9%	-14.4 p.p.
Consolidated FFO	268.7	11.7	2198.9%	358.4	(11.0)	3170.0%
FFO Margin	34.1%	6.7%	27.4 p.p.	25.6%	-2.8%	28.4 p.p.

Net Income/Loss

The Recurring Net Loss was R$ 21.5 million in the quarter. The Net Income including assets sales was R$ 254.8 million in 4Q23 and R$ 305.2 million in 2023.

Net Income - R$ million

Office

Margin

4Q23

(18.6)

-42.9%

4Q22

(1.6)

-2.5%

∆ %

1065.8%

-40.5 p.p.

2023

(87.1)

-47.5%

2022

(58.0)

-27.3%

∆ %

50.1%

-20.2 p.p.

Best Center	(1.3)	0.6	-324.8%	(4.8)	(5.7)	-14.6%
Margin	-8.3%	3.2%	-11.5 p.p.	-7.7%	-8.0%	0.3 p.p.
SC Living	(1.7)	(2.1)	-21.0%	(7.4)	(8.9)	-16.8%
Margin	-90.6%	-211.2%	120.6 p.p.	-113.9%	-252.9%	139.0 p.p.
Recurring Net Income (Loss)	(21.5)	(3.1)	586.1%	(99.4)	(72.6)	36.8%
Recurring Net Margin	-35.6%	-3.7%	-31.8 p.p.	-39.3%	-25.3%	-14.0 p.p.
Net Income (Loss)	254.8	(11.2)	2171.7%	305.2	(80.2)	280.4%
Net Margin	32.5%	-6.5%	39.0 p.p.	21.8%	-20.8%	42.7 p.p.

On March 13, 2024, as disclosed in a Material Fact, the Board of Directors approved the proposal for the allocation of the net profit for the fiscal year ended on December 31, 2023. This proposal will be submitted for shareholder approval at the Company's Annual Shareholders Meeting, to be held on April 26, 2024. The proposed distribution is R$100,000,000.00 (one hundred million reais) as dividends, representing 32.8% of the net profit, an amount that exceeds the mandatory minimum dividend.

9

4Q23 Results

Asset Management

São Carlos portfolio ended the year valued at R$ 3.9 billion, against R$ 5.5 billion in 4Q22. The reduction is explained by the volume of properties sold in the last 12 months.

Property Profile

Qtt.

Own GLA (sq.m)

%

Market Value

(R$

thousand)

%

Triple A

Class A

Office

Strip Malls

Street Stores

Landbank

1	47,002	11.8%	919,600	23.5%
19	210,886	53.1%	1,929,100	49.3%
20	257,887	64.9%	2,848,700	72.8%
45	98,441	24.8%	727,310	18.6%
21	36,793	9.3%	237,010	6.1%
4	-	0.0%	20,222	0.5%

Best Center	70	135,234	34.0%	984,542	25.2%
SC Living	1	4,077	1.0%	80,280	2.1%

Total

91

397,198

100.0%

3,913,522 100.0%

The properties are recorded in the financial statements at depreciated cost and their book value at the end of 4Q23 was R$ 2.1 billion.

In December of 2023, we acknowledged the impairment of R$ 12.8 million, of which R$ 11.0 million from Office and R$ 1.8 million from Best Center.

Investments

In the quarter, CAPEX totaled R$ 8.4 million, directed towards Office and Best Center. In the year was invested R$ 46.3 million, directed mainly to Paulista Office Park, Flex Office and Best Center.

R$ million

Office

4Q23

3.4

4Q22	∆ %

15.3 -77.6%

2023

29.5

2022	∆ %

97.6 -69.8%

Best Center	4.9	3.4	43.5%	14.7	12.3	19.6%
SC Living	0.1	0.9	-85.6%	2.1	7.7	-72.1%
Consolidated Investments	8.4	19.6	-56.9%	46.3	98.0	-52.7%

Net Asset Value (NAV)

The NAV for the period reached R$ 3.4 billion and the NAV per share was R$ 59.8.

NAV - R$ million	4Q23
Portfolio Value¹	3,966.9
Net Debt	(552.5)

4Q22

5,520.1

(1,736.7)

∆ %

-28.1%

-68.2%

NAV	3,414.4	3,783.4	-9.8%
Outstanding shares (net of treasury) - million	57.1	56.9	0.4%
NAV (R$/share)	59.8	66.5	-10.1%

1Note: Consider 100% of the net debt and the asset value of GO850 building. Portfolio value according to assessment conducted by international firms.

10