Syn Prop E Tech Sa S/Gdr

Good morning, ladies and gentlemen. Welcome to video conference of seeing to discussion of the results of the first trimester of 2024. This video conference is being taped and the replay can be accessed in the site of the company RI. And the presentation is also available for download. we inform that all participants are only watching this video conference during the presentation. Following, we will have the session of Q&A, where instructions will be delivered. And before continuing, the declarations here have a basis, suppositions of the administration of seeing information, present ones are available. And these declarations can be involved risks and uncertainties, and that we have to say that our future events, and this depends on circumstances that cannot occur, investors, analysts, and journalists should take in considerations that these macroeconomic environment in this segment and other factors can make that the results be materially different of those expressed in these declarations. We are present in this video conference, Mr. Jagu Muramatsu, Director, President of SEA, and Mr. Hector Leo, Financial Director and in relations with investors. Now, I would like to give the word to Jagu Muramatsu that will give the beginning of the presentation. You can begin, Jagu. Good morning, all. Thank you very much. Who's accompanying our are results of the first trimesters. And this is taped, of course. And I think that's beginning in this opening in the performances and the financial issues of the first trimester. I would just like to give everyone an update of the operation that we are doing with XP. And we have advanced a lot. And one of the main conditions for us to advance with this transaction is the captures of resources of through the emission of new quotas of XP has done recently. And this was concluded with very success, 1 billion in this emission. And this is an important phase that we had to go through to finalize this. Now we continue in the phases complimentary of diligence and negotiations with the contract Everything is going well, but we still don't have novelties in relation of this subject. And the trimester was a good trimester, operationally for our buildings and also for our malls. And we also, at the end of last year, we delivered the warehouse and we see some revenue in the area of logistics. And so with this, we are going to open and speak about our operational performance. In relation of occupation, physical and financial of our portfolio, we did not have big changes of what was the first trimester of 2023. It's important in 22, but in 23, it's more or less same level. The only novelty is that we consider these warehouses obviously an occupation that is lower because it was just delivered. It's in the phase of leasing. And so in the warehouse, we have more or less half of it leased, but we have had a lot of people that are interested and we are gonna see a good evolution in the vacancy, in the evolution of this venture. In relation to the occupation, Financial occupation, we have an impact that is less the vacancy of the warehouses, even though it's a big area, it has a rent that is lower in the segment of businesses and shopping centers. And going into this detail of the occupation of the malls, we maintained ourselves stable physically and it dropped a little financially, but it was stable. It was a small drop, but what's important half of the month of May, we saw that April was a good month for us in commercialization. So we had a lot of leases and less than we presented like a month that is very positive to commercialize the shopping. So we believe in the next trimester, we're gonna see an evolution that is very good in these numbers. In the sales, It was one of the items that we had an evolution that is very important. We grew in total sales almost 11%. And with this 7%, almost 8% was the sale of the stores. So when we look at the evolution of what we have in our portfolio, it is important evolution in terms of inflation. And also we had good substitutions. the stores during this period and we grew almost two percent in relation to what had been practiced in the previous leases and we developed very much the area especially of events and media in a way of attracting the public for our ventures and this was a growth of of the sales of 1%. When we look at the leases, we have a growth that is above what was in the third and fourth trimester of 2023. In the last two trimester, we grew almost 6% against three and 4.4 in the third three. And this is also reflects obviously of the evolution of the sales. And now, in the part of the performance, Hector's going to speak now. Good morning, all. Following the operational results of the ventures, we concluded the trimester with 50,900,000 of result operational of the assets. This is a growth of 7% of previous year, breaking the classes start with malls. We had a growth of 4.4% and concluding 40,900,000 of million in this trimester, the results should have been two, digits if it won't be the tpdv and here this is an effect of accountant of last year mainly of the not payment of the Americana stores, according to the policies after a year, we have to consider this in the fiscal balance. And even this not payment that is equalized, this is a flow that was agreed with them of payment, but because of consolidation for legal actions. In offices, we had a growth of 18% and 90 million concluding. And mainly the main effect, the end of in discounts where we had found various ventures. So this is very pulverized, especially it's a building that had a positive impact and very relevant. Following of EBITDA, we had a growth of 15%, very expressive, concluding 40, 50 million in the trimester, which is very explained by the operational performance of the ventures of the projects of expenditure of last year. Finally, at the end of the day, the bottom line, the profit of the trimester was 7,400,000 and also a debt and FFO and the generation of the cashflow 50,500,000 and a half versus the break even of last year. This is a good evolution in operational part and also the management of the debt. We opened the debt of the company we have, and we must highlight the decrease of the main cognate, which is the gross debt. We closed it twice, 4.4 times of the previous trimester. And here we have the main impact of this transaction of 300 million. We also, there's a disclaimer, with the rule, account rule, there's a big probability to conclude the transaction and us be with less than 10% less in five malls where we are selling. And we needed to disconciliate the cashflow of SPS and put assets, available for sale, circulating assets. This value is 1,200,000,000, the cost of these assets. So we have a notion of how this would be in terms of profit before the rate taxes. And to be more precise, and the cash flow of these SPSs are 68 million. So when we look at the patrimonial balance pro form, there is a difference. of this cash flow that is adjusted and it is also a net and we have to adjust it in the patrimonial issue in FFS which are the contracts of our debts. We also had a drop that was expressive and we concluded with three times two percent versus four and a half the previous semester and remember it's 7% so this is also a slack that's very expressive and that dishonor and this is also the release is 1.4 and we concluded five times before the previous trimester. We can continue. Concluding, nothing changed from the last trimester. Our timeline of amortizations is pulverized in the following years, and we only have amortization for the next year of 200 millions, 239.56, 162.57, and the biggest amortization in the Tower of Payments only in 2028. In relation to the transaction, we didn't make the decision of how much or when are we gonna prepay in these debts and the distribution of dividends. This is a doubt that made out for all of us, but I think in the next trimester, we're going to have this defined the strategy and also the allocation of yield and capital of the company. These are the financial results and I have just ended. We will begin now this session of Q&A for investors and analysts. If you have any question, please pressure the button, lift your hand. If your question is answered, you can leave the line and lower your arm. If you want to have a written question, please digit your question in Q&A with your name and your company, please. Please wait till we have all the questions. First question from Mr. Reynaldo Francisco. He says, congratulations for the results. If it maintains the projections of 3 million annually, how is the situation in opening and amplifying the shopping. Good morning, Reynaldo, how are you? In terms of ITM, we continue with this projection, which is a cost that is IPTU and maintenance of some securities and condominium. But I think differently than the previous trimesters, we have had some demands that are interesting there. And so just to give the same destination or even demands that are different, there is an asset that we have worked a lot on and in the moment has generated some engagements. But looking conservatively, we consider these $3 million of annual cost ideal. About the second part of your question, the amplification of Sao Paulo, we have approval of the Sao Paulo Mayor to do this and now we are working in technical projects to start and probably in the second semester of this year, this ideally. Thank you very much. Reminding you to ask questions. You just digit your question in Q&A located in the figure of the screen or apply, raise your hand. Mr. Eduardo Granjero is the next question. Is there a preview of acquisitions or disinvestment in the Raider of 2024, 2025? Eduardo, hello. I think that we have acquisitions. No. but we have been studying acquisitions and also in disinvestment. We have been working with some options for the two parts, but I think this is the business as usual. We've always done acquisitions and investments during our life. And so we are going to continue this, but today we are focused in our time to conclude this transaction. Thank you very much. Reminding you to have made questions, click the button, raise your hand. If your question is answered, you could leave the line and click Lower your arm. Please, just a moment when we collect more questions. Just a moment, please. Not having any more questions, this session of Q&A ended. We'd like to give Tiago Bouramatz that he makes considerations, the final ones of this company. I think, as I said in the beginning, this trimester was a good operational trimester. The second trimester that we are going through has been showing us that it is very active in terms of of leasing and sales of stores. And so we have an expectation that is positive for the second trimester of this year. And the good part of the energy, me and Hector especially, is now dedicated to conclude this transaction. And so in the next trimester, we will have more news. Thank you all very much and have a great day. The video conference has just ended. We thank all for your participation and have a great day.