Syn Prop E Tech Sa S/Gdr

Good morning, ladies and gentlemen. Welcome to the video conference I've seen to discuss the results for the first quarter of 2025. This conference call is being recorded and the replay can be accessed in the company's website. The presentation will also be available for download. We inform you that all participants will only watch the video conference during the presentation. And then we will have a question and answers session when further instructions will be provided. Before proceeding, I would like to emphasize that forward-looking statements are based on the beliefs and assumptions of SIN and current information available to the company. Statements may involve risks and uncertainties given that they relate to future events and therefore depend on circumstances that may or may not occur. Investors, analysts, and journalists should take into account that events related to the macroeconomic environment, the segment, and to other factors may cause the results to be materially different from those expressed in the respective forward-looking statements. With us here today, we have Mr. Tiago Muramatsu, CEO, and Mr. Hector Leitão, CFO and IRO. Now I'd like to pass the floor to Mr. Thiago Muramatsu. We'll begin with the presentation. Good morning. I would like to thank you for being here in our earnest release call. And we are here to explain you what happened in the first quarter of 25. Let's begin with realizations that we have until the first quarter quarter ending. We had the closure of Brazilian Machado. We signed the deal last year and the payments are going to be done And installments, each installment, they are going to be buying an area. So from the six, we have already had two. In March, we had 4.7 million and we still have four remaining installments. The next one is going to be done probably in this month. And also regarding the lease of the CLD, It is 100% leased, so the last vacant area was leased in January. And so we are going to have a slide talking about the CLD in details soon. So besides the achievements that we had in the first quarter, there happened some things some things between the first quarter and today. The first one was the anticipation of the XP installment. We had a receivable planned. It was the third and last installments. We had the closure installment. The first one was paid in December 24, and there was a remaining one that we've anticipated the cost was around 1.32 for the period of anticipation and we thought it was a low cost so we paid 590.5 million so we have left so potential risk of the fall of or of postergation, so the money is already in cash, and part of it, 360 millions, was used for the prepayments of one of our debentures. So this left the company still with a very robust cash, and we've reduced the debt cost because our debt now is linked to... PCA, we did this leverage management. And also we had the disclosure, the distribution or dividends in the order of 70 millions is 0.45 per unit. So it's going to be paid in the 20th of May. And now I would like to talk about our operational performance regarding our shopping malls. We improved our physical occupation, reaching 95.2%. So we were in 94.9% and now we are at this new mark. And this makes us comfortable, especially regarding the... the fact that the vacancies are in areas in which we are already conversations are ongoing. So the prognosis is very positive regarding our assets occupation. And also we had an increase in the sales. I mean, it was a little lower. The sales evolution was lower because of Easter. and it's an important date, especially for sales, especially for same-store sales, because during Easter, sales are focused on chocolates, and the impact is high in the same-store sales. So when we look at the four months to set off this effect, we had an increase of sales of almost... 6%, but when we look at the same store's sales, we grew 4.6%. In the same store's rent, we grew 4.3%. Now, about corporate buildings, there was a significant improvement regarding physical occupation and we are now in 93.5%. not taking into consideration Brasilio Machado that had a higher vacancy because we have already sold this asset. We still have some areas in the building under transition, but the effects of this asset are already out of it, you know, because it's going to be sold until the end of the year. So now, Looking at the triple A's and class A's, we have this impact of the CO in Rio de Janeiro. So financial occupancy is kind of flat if we don't consider Brasilio Machado, and without Brasilio Machado, we are in 92.9%, what we consider very comfortable. And now, warehouses. We have the first phase delivering operational. We've just delivered the second phase in April, one month ago, and the phases three and four are under construction. Phase three is 100% pre-rented for the same customer of the phase one, phase two, and phase four is a little bit delayed in terms of construction. We had expected, you know, since the market has a lot of demand, we have anticipated the beginning of the construction work and so we are going to deliver this in the first half of next year. I think it's the smaller of the phases and the idea is to work with the pricing of it because it's a smaller warehouse and we have a very good occupancy in the other phases. And now I'm going to hand the floor over to Hector. Thank you for your presence here in our conference call. And let's talk about the performance of our properties. We grew 7.7% in the NOI regarding the last year. And we are comparing here the same basis, excluding the effect of the enterprises sold last year. Looking at the malls, we had an NOI of 17 million, a growth of 6.2%. 5.6%. In offices, the quarter was flat. The growth was lower. And in warehouses, as Thiago just mentioned, we're going to see an increase in this NOI index due to the delivers and the maturity of the contracts. In malls, because of Eastern, We are sure going to see a more robust growth in the next quarters because the sales are increased in April and rent is going to follow this. Now, let's talk about our results. Of course, we have a decrease due to the sales. EBITDA closing 32 million, a decrease of a fall, a drop of 26%. And adjusting EBITDA, we see a drop in the index have reached 20 million. This is due to the seasonality, so the level of EBITDA is going to improve, especially to malls. Net income, we closed at 18.7 million, so excluding the effect of the sales. There was a decrease of 9.2% regarding next year. And here we had a fall in the EBITDA, but there was an increase in the financial results due to a more balanced balance sheet due to the net cash. And Now, the FFO, we closed at 22.4 million in this quarter, a growth of 52%. And the adjusted FFO, we exclude the effects of the sale, EBITDA had a fall of 32.5% related compared to last year. Net debt, the gross debt, we close the quarter at 877 million. When we consider the receivables, we have 1B and 9 millions in the quarter of availability. It's a net cash of 132 million. in the quarter compared to the last quarter is a significant improvement. And now looking at the indebtedness pro forma, we have this amortization schedule very comfortable for the next three years, including the remaining of 25. And we are going to have the needs for refinancing only in 28. So we want to gain flexibility in the deals and we want to have an adequate debt profile with an interesting cost. To the right side, we see that the IPCA is the main indexer of our debt. And the remaining is with the CDI and the average cost is 90% of CDI due to the debt in IPCA. So the flow is very comfortable with a very interesting cost. And I would like to open for the Q&A session. We will now begin with a Q&A session for investors and analysts. In case you want to ask a question, please press the button reaction and click on raise your hand. If your question is answered, please lower your hand. If you want to send your question in the written form, type it in the chat. Please hold while we collect the questions. Our first question is from Mr. Guilherme Ferraz. Mr. Guilherme Ferraz, please, you can proceed. Mr. Ferraz, your microphone is already open. Good morning. Good morning. Can you hear me? Yeah. Yeah, I think you were mute. So, hello, Tiago, Hector, good morning. Well, I have two questions. The first one is related to the portfolio of the company. As I see, it is around Rio-São Paulo access. You were closing the Goiás last year and now you are working on this access, Rio-São Paulo. So... What about the idea of the company? Do you intend to continue on this region, only Rio-São Paulo, or do you see the possibility of expanding to other regions in the country? And the second question is regarding the capital that was anticipated, paying the wealth debenture. By my calculations, this creates a very robust cash, around 250 millions, together with Brazilian Machado. I don't know if it's right. Do you have a plan for this cash? Do you want to anticipate a debt? Or do you want to invest in something? Do you have plans for it? Thank you for your question, Guilherme. Well, to answer the first one, well, we strategically have really left all the other regions to focus in Sao Paulo and Rio. So to invest in other regions, we would have to have a very specific opportunity. But the idea when focusing here in Sao Paulo is due to logistics. We really don't have any plans right now to invest in areas outside Sao Paulo Rio. Regarding the second question, yes, your calculation is right. We still have some cash coming from Brasilio Machado, but it's not that relevant. So we have been looking and trying to pursue opportunities for investments Regarding that anticipation, since we have a relative cost, that cost, this is not the plan right now. And, well, we've just done the prepayment and we are still, you know, evaluating the possibilities for using the capital that we have today. So we still don't have an answer regarding this, but... Since 2021, 2020, we try to look at what works better for our shareholders, looking at the market opportunities, opportunities for investment. So we are paying attention to all the possibilities and we will define alongside with the manager, with the management, with the board, What would be the destination of the capital? But so far we don't have a decision. Yes, so it's not just investing for just by investing sake. It's when you have opportunities that are good. This is what you mean. Yes, this is the idea. The idea is to have a good credit line to make use of the good opportunities. Thank you, Tiago. Thank you. Our next question comes from Mr. Eduardo Salma Filho from Conceito. Mr. Eduardo, you can proceed. Good morning, Tiago. Good morning, Hector. So my question is a quick one. I would like to know I remember the last time that we've talked, maybe you didn't have time, but I would like to know if there was some kind of evolution regarding Cidades São Paulo, and I would like also to congratulate you for the results. Well, regarding Cidades São Paulo, we still didn't have an evolution. We have had conversations, but nothing that we could say that we have an answer case regarding what we are going to do and when we are going to do things there. And regarding the EPM, well, it's a more complex asset, you know, so it's more difficult to find an alternative. We have four fronts open there to try to find a solution. We are thinking about incorporation, change of usage, rental, sales, but it's kind of a delicate issue. So we are working on it. And as soon as we have something that makes sense for us, for our partners, we are gonna disclose it for everybody. Okay, thank you. The Q&A session is ended. We would like now to pass the floor over to Mr. Thiago Muramatsu for his final comments. Well, I would like to thank again everyone. I think we were able to give you visibility about what we have done. The questions were also important. And regarding the operation of our assets, We were kind of pessimist before, but reality has been shown a better outlook, you know. And if you have any questions, doubts, you can send them to us. Okay, thank you again and have a nice day. This conference call of SIM. is ended. Thank you for your participation and have a nice day.