Syn Prop E Tech Sa S/Gdr

Good morning, ladies and gentlemen, and welcome to the video conferencing for the communication of the third quarter results 2022. And this video conference is recorded and the replay can be accessed at the company's site, ri.sim.com.br. The presentation is going to be available to be downloaded. We would like to inform that all the participants will be listening to this conference and then we are going to open up the floor for Q&A and then we give further instructions. Before resuming, I'd like to reinforce that the declaration has come based on the beliefs and suppositions of the Board of SIN and the current information for the company. And this declaration may involve risks and uncertainties considering they consider future events So they do depend on unforeseen circumstances. Investors, analysts, and journalists should consider that events about the macroeconomic scenario and other factors may change these results from what expected on the prospective declarations. We have in this video conference, Mr. Thiago Buramatsu, President, COC, and Mr. Hector Leitão, financial director and investor relationship with the company. I'd like to pass the floor to Mr. Thiago Muramatsu to start this presentation. Please, Mr. Thiago, go ahead. Thank you so much and good morning, everybody. Thank you so much for your attendance, for the participation on this call of results. Starting up the main fulfillments of this quarter, we have had So good news, interesting news in this quarter. And the first one we had rating elevation raising since 2017. The rating is A+. And after five years, we could raise this rating to AA. And this was an increase reflecting the hard work throughout the years. referring to our cash control balance position that is very strong. I think aligned with capital allocation, we prepaid the 11th debenture that we prepaid in September this year, and it was an amortization of 200 million, the total of the remaining value, and 100 million, it was 23, and 100 million in 24. When we see our amortization flow throughout the 24 months ahead, we have no amortization left. And because of the cost of money, it's very important to have this type of movement. And also in this quarter, we had two awards. We were awarded And I think that the first one is ValorMil. We were recognized as a company, best company in the sector of real estate entrepreneurship. We are the second time here in ValorMil. The first time we are awarded first place. And the third time in a row in 2021 and 22, we were awarded here a hundred open startups, acknowledging SIM as one of the 10 most innovative company in construction and real estate. Last year we were in third, 2020 we were in fifth. And we had a movement that was positive in shopping malls. Allocation and absorption. in the last 36 months record for 1,100,000 liters in the quarter in the net absorption 2.8. And during this quarter, we left occupation year 92 reaching almost 95% considering just the stores. And I believe this is part of what we are trying to do, being pragmatic, In the occupation and shop renting is a goal to finalize the year over 95% occupation for the most. Moving ahead with this presentation, operational performance and what we have been talking about occupation. We have an occupation that is really healthy at the most. We can improve, there is always room for improvement. We are growing quarter after quarter, month after month. We are occupying well our spaces. Triple A's as well. We keep occupational rate that is high. When we see general occupation of the portfolio, we have 86% financial occupation and 82% physical occupation. The penalty here on occupation is ITM. that is really representative more than half of vacancy that we have in development. The characteristics here are very specific based on the location outside commercial center. So it's difficult to trade these development, but we are always aware and we are open or conversation to maximize the value of this development. Moving ahead, next slide, we break down the occupation, physical and financial patient of the mall. Reflecting upon what I said, the quarter finalized with 94.9, Glen Plaza building, has never been occupied by stores and never will. It generates sales and renting for retail purpose. Moving ahead, next slide, talking about the malls, shopping malls, we finalized the quarter with sales, 173 million, 673 million, that is compared to the third quarter, 21. And third quarter 21, we had another mall, Estação BH Mall. So a comparable basis is even bigger than what we did this year. Parking lot, we have a growth even with one less mall, almost 2 million vehicles on the third quarter this year. And the same store sales, there is a growth. Meaningful growth, almost 20%. And now talking about corporate buildings. We have this financial occupation almost 73% when we compare a year ago. We won almost 90% because the occupation was not finished. And we had a portfolio of AAA that was 100% leased. The relevance impacted our portfolio today on AAA here in São Paulo is 100% ranked. So we have this open development after development affecting here. The AAA occupation is the seal Rio de Janeiro in Barra. that is more challenging to trade that building. When we see physical occupation of the buildings within CBDs, Sao Paulo and Rio de Janeiro, we see an occupation of 85% and led down by the CEO and Brazil Machado. To continue this presentation, let's talk about the performance, I pass the microphone to Hector. Let's see operational results of the development, our malls and buildings. We had a drop, expressive drop compared to the last year and 19 because of the portfolio. And breaking down just to analyze in a more assertive way, our performance in our Assets on the right hand side, we can see NOI of the same property, so we can realize the third quarter it was 44 million in our participation with the growth above 40% 2021 and also 2019. Highlighting all the fundaments that are important on these assets. Revenue growth. default that is under control discounts that we can gradually remove this granting of the accounts with healthy occupation and the sales increasing. As we see in openings and the malls, we can execute more events and occupying these malls with more interesting Nine months accumulated, the crew, we have a growth compared to 19, 25.8% and almost 70% compared to 21. And I believe that this fundamentally helps and we are keeping high levels of growth. Next slide, we are breaking down the segments. on the shopping malls. We reached almost 36 million of growth in NOIs this quarter compared to 19. Expressive growth, 35%. And the big difference this quarter and the others, our default operation was superior to 19. PDD has a difference almost 10% in 19 compared to now. So it's disconnected from the other quarters a better quarter. 2021, the growth is almost 47%. When we see the accrual of the year, we are doubling the result compared to the last year, growing almost 15% compared to 2019. Buildings segment, this market is more stable. So we had a growth of 27% compared to the last year. These are two main effects. The leasing spread is positive in AAA building that we have in São Paulo and higher occupation of Birman 10, that is retrofit class A that we started in 2019, bringing lots of results with this 100% occupation in the end of last year. Compared to 19, we see expressive growth in the accrual of nine months. We reached 25, almost 26 NOI. And we doubled the result in 2019. So we have this growth that is less robust in buildings, but I believe the fundaments are really well-equated. So our challenge is the occupation in class A's, especially TM, as Tiago commented. And next slide, we see adjusted EBITDA and we are breaking it down. The impact of the sales last year and we see a drop over 40% compared to 21 and 30 compared to 19. But if we remove this effect, we have a growth close to 10% compared to these two years. So the assets are performing better and the DNA is controlled. Observing nine months of the year, we also see the same impact, a little bit more expressive, 21 with growth almost 25%, removing the sales effect aligned with 2019. FFO adjusted, we add the impact of financial expenses, the result, and this year, Since last year, we had an increase, expressive increase of interest rate with a strong impact on FFO, closing the quarter with six positive, 71% lower than 21 and 33 compared to 19. And just to let you know the comparison, the financial result, the impact of interest rate was 17 million this year compared to 21. So we would be 10% over 21, adjusting the impact that we cannot control an interest rate increase. And if we add here the result of the assets that we sold, we could have a more expressive result. And in the accrual there, we close with FFO negative 7 million with the same explanations compared to 59 last year, 33 and 19. Moving ahead with the debt, we close the quarter with cash almost 400 million, gross debt would be 110, and net debt 700 million, leveraging half time, adjusting the EBITDA, removing the effect of all the sales that we performed in the last 12 months, we would reach five times. That is comfortable in seven times. The net debt on EBITDA, we are comfortable on this leverage. Financial expenses this quarter, A special impact of deflation IPC in two months, August, helping in the result that we have a debt for 100 millions indexed to IPCA. So there is a relief here on the IPCA. In the next quarters, we see improvement because of the prepayments we made. Following up to talk about the amortization timeline, all this anticipation. almost 300 million plus 200 million. That was the flow of payments for amortization. We have two years of advantage on cash relief, amortizations that are irrelevant in the next two years. And the rationale of the amortization was the differential on interest rate, the cost of the debt. The higher the CDI, we increase this cost of the debt. So the strategy here was to be more asset-like, capital-like, to optimize the capital allocation. We have an expressive amortization in 2025, the profile of the debt, the index. We have 139 IPCA and the rest is CDI and average spread 1.5 on CDI and 6.5 on IPCA. This debt is compatible and it's a good level compared to the floors in our weight. Next, we are opening the floor to Q&A. We are going to start now the Q&A session for investors and analysts. If you would like to place a question, you can press the reaction, you can raise your hand. If your question is answered, you can leave the queue and lower your hand. If you want to place your question on a chat, write your question on Q&A, followed by your name and the company's name. For questions, you click on raise hand or write your question on Q&A button. One more time, if you want to place your question, you can click raise hand or just write your question on chat box and Q&A. The Q&A session is closed. We would like to pass the microphone to Mr. Thiago for his final considerations. I believe that this quarter was a quarter that we were evolving. It's reflected in our EBITDA. Removing the effects. As Hector said, we have operational growth that is nice with a negative impact and all the companies are impacted. But the takeaway message is what we can control is capital allocation, improving more and more our operation. I believe we are excited. We're looking forward for the next month. This month and a half of the final quarter is positive as well. I'd like to thank you so much for your attendance. And if you have questions, you can contact us on our I or HMI. Thank you so much. This video call scene is closed. We would like to thank you so much for your attendance. Have you all a great day.