The following timeline briefly summarizes our history:
(1) CRI means Real Estate Receivable Backed Note (Certificado de Recebível Imobiliário).
We were founded in 1977 by Henrique Borenstein, together with nine other founding partners, under the name Helbor Empreendimentos Imobiliários Ltda. Since then, we have delivered nearly 38,000 units, and launched over 6.0 million square meters of properties. After developing more than 20 successful projects in the city of Mogi das Cruzes in the state of São Paulo, where we are headquartered, through 1997, we began diversifying our activities by launching projects in the municipality of São Paulo. In 2002, we opened an office in the municipality of São Paulo and in 2007 and transformed from a limited liability company to a corporation, taking on the current name of Helbor Empreendimentos S.A. In October of the same year, we raised R$232 million in our initial public offering where we listed on the Novo Mercado segment of the São Paulo Stock Exchange, under symbol HBOR3.
In 2010, we approved a capital increase of R$150 million to cover opportunities to develop new projects and growing competitiveness in the real estate sector and to expand Helbor’s operations to other regions of Brazil. This led to a strong expansion of our portfolio of acquired land to other geographical areas. One year later, the Suzano Group, with whom we had been exchanging properties over a decade-long relationship, identified a growth opportunity in the industry. Through their affiliate IPLF Holding, they formed a construction partnership with us, Alden Desenvolvimento Imobiliário, to develop residential and commercial subdivisions throughout Brazil. In 2013, our operations in other cities and segments had already become well established and we were launching projects with our partners.
The period between 2016 and 2017 was marked by deep financial crisis in the real estate sector. To support us during this period, our shareholders funded capital increases in the amount of R$120 million in 2016 and R$264 million in 2017. In 2016, we formed HB Brokers, our brokerage entity with more than 400 brokers, which accounted for 68% of our sales in the first seven months of 2019.
In 2018, we began a new growth cycle by investing in strategic partnerships to initiate a new cash generation cycle. The partnership model, whereby we issued CRI-backed units from inventory and entered into lease agreements with partners, was crucial to creating cashflow as it monetized our inventory and eliminated maintenance and carrying expenses associated with leased properties. The year 2019 has been marked by cashflow generation, sales of inventory and improvements in our levels of debt and debt profile.
The graph below illustrates our completed developments, the reduction in the number of construction sites and dividend payments (totaling R$720 million, as adjusted for inflation) since 2010.
Ready Inventory, Construction Sites and Dividend Payments
Note: (1) Finished inventory (ready stock) in 2Q19 adjusted by R$215million as a result of the reclassification of leased properties from inventory to investment properties; (2) Inflation adjusted between May of each year of dividend payments, from May 10 to June 19; (3) According to the Company’s bylaws, payment may be less than 50%, considering the terms and conditions described in the Company’s bylaws.