PDG Realty : 4Q18 Release

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4Q18 and 2018 Earnings Results

São Paulo, March 29th, 2019: PDG Realty S.A. (PDGR3) - Under Court-supervised Reorganization - announces today its results for the fourth quarter of 2018. Founded in 2003, PDG develops projects for different segments and publics, operating in the development, construction and sale of residential and commercial units, as well as land plots.

Highlights:

Between June and November, occurred the payment of the 6 installments to the creditors, as foreseen in the Plan, amounting to R$91 million. In total, considering the installments payment, the conversion of R$74.2 million of debt into equity, and the R$84.3 million of payments in assets, the Company already paid R$250 million in debts subjected to the Recovery Plan. (page 4)

Gross profit of R$137 million in 4Q18, compared to a loss of R$18 million in 4Q17. During 2018, gross profit was R$33 million, an increase of 25% over 2017.

The 2018 adjusted net loss* fell by R$1.8 billion (70%), from R$2.6 billion in 2017 to

R$792 million in 2018. When comparing 4Q18 to 4Q17, the reduction was R$1.4 billion (92%).

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		Conference Call
	Thursday, April 4th, 2019
 Portuguese			English (Simultaneous translation)

11:00 a.m. (Brasília)	10:00 a.m. (NY)
10:00 a.m. (NY)
	11:00 a.m. (Brasília)
Tel.: [phone]	Tel.: [phone]
([phone]
	[phone]
Replay: ([phone] | Code: 7529736#
	Replay: (11) 3193-1012 | Code: 0206125#
Investor	([phone]
	www.pdg.com.br/ri
Relations:
	[e-mail]

4Q18 and 2018 Earnings Results	1

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4Q18 and 2018 Earnings Results

Highlights:

Gross sales increased 14% in 4Q18 over 4Q17, from R$94 million to R$107 million. YTD gross sales grew 21%, from R$275 million in 12M17 to R$333 in 12M18.

Net sales also recorded a significant improvement in 2018, reaching R$140 million in the 12M18, in comparison to the negative sale recorded in the 12M17.

Accounting for the 12M18, the G&A expenses fell by 6%, from R$134 million in 2017 to R$125 million in 2018. This reduction reflects the adjustments made in our structure and the increase in the Company's operational efficiency.

In this quarter the number of units transferred was 33% higher than 4Q17. In the Q-o-

Q comparison the PSV increased 30%. (page 16)

Recent Events:

In March, 2019, we obtained the occupancy permit for the Mais Viver Campinas project, with 444 units and a PSV of R$63.3 million.

*Adjusted Net Loss: disregards the non-recurring effects of Fair Value Adjustments, Interest and Fines of debts subjected to the Recovery Plan, carried out in 2017.

4Q18 and 2018 Earnings Results	2

TABLE OF CONTENTS

Message from Management	4
Operating and Financial Indicators	8
Operating Performance - Launches	9
Operating Performance - Sales	9
Operating Performance - Cancellations and Resale	10
Operating Performance - Sales Speed (VSO)	11
Operating Performance - Inventory	12
Operating Performance - Landbank	14
Operating Performance - Historical Data	14
Operating Performance - Occupancy Permits	15
Operating Performance - Occupancy Permit Schedule	15
Operating Performance - Title Individualizations	16
Operating Performance - Mortgage Transfers	16
Financial Performance	17
Income Statement and Balance Sheet	22

4Q18 and 2018 Earnings Results	3

Message from Management

Initial Message

In 2018 we began the implementation of PDG's Court-Supervised Reorganization Plan and there were no shortage of challenges during this period. During this period, the Company took important steps towards recovery, the most important was the full payment of the six installments foreseen in the Plan, totaling more than R$91 million. Additionally, on June 15, we concluded the capital increase related to the conversion of debt into equity, amounting to R$74.2 million. Besides, also as foreseen in the Recovery Plan, we paid R$84.3 million in assets.

All in all, considering the payment of the installments, the capital increase and the payments in assets, the Company has already paid more than R$250 million in debts subjected to the Reorganization Plan.

Consequently, the Company fully complied with its Reorganization Plan, honoring the obligations assumed with its labor and unsecured creditors and suppliers.

From now on, considering that the next payments foreseen in the Reorganization Plan mature within approximately 15 years, the cash pressure faced by the Company in 2018 will be significantly reduced.

In addition to the implementation phase and compliance with the first payments foreseen in the Plan, we also continue paying attention to a detailed review of processes, controls and structures in order to improve efficiency and reduce costs. Besides allowing the prioritization of the Plan's needs, this revision has also helped us create the bases to resume PDG's activities. Additionally, with our external auditors, we reviewed a significant portion of our internal controls and are implementing important improvements, which will continue throughout 2019.

It is worth noting that although the Reorganization Plan comprises a good deal of PDG's liabilities, we continue negotiating with banks and other investors to find a solution for the unfinished projects.

In this regard, even in view of the strong cash pressure faced by the Company, in May 2018 we delivered Ville Solare, located in Belém, with a PSV of R$77 million and 518 units.

4Q18 and 2018 Earnings Results	4

Message from Management

At the end of 2018, we started our Strategic Planning for the short and medium term. In addition to planning the launches return, we are seeking to identify new opportunities that allow PDG to diversify its products, generating additional recurring revenues.

Although the recovery of the sector and the economy was hampered by certain extraordinary events, such as the truckers' strike, the World Cup and the pre-election period, it was still possible to observe a slight improvement in the real estate market. Therefore, we have a conservative, but positive expectation about a stronger recovery throughout 2019.

Operating Results:

In addition to the Court-Supervised Reorganization Plan, throughout 2018, the Company's Management undertook efforts to continuously reduce expenses and gain productivity. It also showed relentlessly dedication to ensuring the inflow and preservation of cash, mainly focusing on cash sales of unencumbered units, unwinding of partnerships, sale of plots, and review and optimization of its processes. All these initiatives helped the Company to overcome an extremely difficult moment related to its liquidity, imposed by Brazil's economic scenario, the still weak industry activity, the scarcity of new resources and the compliance with payments foreseen in its Reorganization Plan.

The Company's gross sales increased by 14% in 4Q18 over 4Q17, totaling R$107 million. In 2018, gross sales reached R$333 million, 21% up from 2017. Of the R$333 million in gross sales recorded in 2018, R$33 million refer to the sale of units that generated free cash, i.e. unencumbered resources.

In 4Q18, cancellations totaled R$45 million, 221% up from the R$14 million recorded in 4Q17. This increase was due to the Company's momentum in 4Q17, as its Reorganization Plan was in the final phase of approval and, therefore, the volume of cancellations was lower in the period. In 2018, the units cancelled corresponded to a PSV of R$193 million, 44% down from the R$344 million recorded in 2017. We will continue with our strategy to prioritize the cancellation of unencumbered units with good liquidity that generate free cash at the moment of resale.

4Q18 and 2018 Earnings Results	5