ABLE OF ONTENTS
Mexico Housing Review ......................................................................................................... 1
Recommendations, Target Prices, and EPS Estimates ............................................................ 3
Executive summary.................................................................................................................. 4
Company Outlook – Reiterating Geo as our Top Pick; Downgrading Urbi to Hold............... 5
Mexico Housing Sector Remains Defensive . . .......................................................................... 6
But up to What Point?.............................................................................................................. 8
Analysis of Mortgage Financing Institutions........................................................................... 8
Infonavit the Cornerstone of the Housing Program Remains Solid..................................... 9
Commercial Banks Playing It Safe .................................................................................... 11
Sofoles the Only High-Risk Sector .................................................................................... 12
Public Homebuilders Should Grow Above the Average of the Market................................. 12
With Cash Flow Generation Becoming a Key Issue.......................................................... 13
Lower Growth Already Priced In .......................................................................................... 14
Consorcio Ara ........................................................................................................................ 17
Corporacion Geo.................................................................................................................... 23
Homex................................................................................................................................... 31
Urbi ....................................................................................................................................... 39
Sare ....................................................................................................................................... 45
Important Disclosures ............................................................................................................ 52