Syn Prop E Tech Sa S/Gdr

Good morning, ladies and gentlemen. Welcome to SYNC's video conference about the third quarter results. This conference is being recorded, and you will be able to access the replay on our website, ri.sync.com.br. The slide deck will also be available for download. I would like to inform that all participants will be expectators only, and right after the presentation, we are going to have a Q&A session. We will provide further instructions then. I would like to provide that the informations that will be informed are related on the informations that are responsible or available right now. However, these future results may differ substantially from the results presented in hearing due to the various important factors. Among other factors, investors, shareholders and stakeholders need to take into account that there are other circumstances responsible for the decisions other than the information contained in this presentation. Here we have Tiago Moura-Maxos, the Director at CING and Erico Leitor, the Investors Liaison Director. Now I'd like to give the word to Tiago Moura-Maxos for the presentations. Tiago, please go ahead. Welcome everyone. Thank you very much for joining on this call to talk about our results. We are going to start talking about some of our achievements from the third quarter. So let's start with capital reduction that we had for this quarter. It was announced at the end of the month of July, a little bit before we had the second quarter results. We had a total of 330 million reduction, which is about 2.16 per share. on the date of September 18th. We are also moving on with the ShoppingD transaction where we are selling our participation along with XP malls. The sale of our entire stake represents a total of 8.9 million BRL. And we expect to finalize this transaction in the next coming weeks. Finally, as we mentioned at the beginning of the year, we also closed the sale of Brasilio Machado. We have already received the first five installments. There is a final one to be received at the end of this year where we are going to close the entire deal. Now a little bit about our operational performance. Let's start with shopping malls. In this quarter compared to the third quarter of last year, we had an increase of physical occupation of about 1% throughout this last year. We started with new rentals and exchanged 7% of our total number of stores focused on food, entertainment, and services. We also reduced our share in clothing stores focused on those three main areas. When it comes to financial occupation, we also had a slight increase, but we continue at about 95%, which we consider to be a healthy occupation. Now, a little bit about our sales. When we talk about sales evolution, we can see that we had an increase of 5.5% with 55 million coming from semi-store sales, 44 from new locations or new stores, and 18% from kiosks and events. So when we consider the total sales in percentages, Throughout the nine months of this year, we can see an increase of 4.2% and the same stores rent with an increase of 5.6. Despite the fact that we had these increment of 5.6 compared to 4.2% in sales, we were able to keep our turnover. that represents very healthy levels as well. And the majority of these increase or this growth of 18 million was considered also with this growth in portfolio compared about 50% compared to last year. Now about corporate buildings, we maintain basically the same level of physical occupation compared to the same period of last year. And when we look at 82.7 against 91.6, we had the vacancy of Brasilio Machado, which was a building that we have sold. So when we take that into account, we go from 91 to 93.8. as well as in financial occupation, going from 91 to 92.6. Lastly, but not least, talking about our warehouses, the CLD. As we have been seeing over the last quarters, we have already delivered Phases 1 and 2. Both of them are 100%. rented, already occupied, we expect to deliver the phase three on December this year. When it comes to the phase four, we expect to deliver that fourth phase on the first semester of 2026. But we have this expectation of being able to deliver the last phase already in the first quarter of 2026. We are already having some conversations about occupation. We already have a proposal for the rental of part of this warehouse of about 30%. And in terms of location, we are talking about 10% compared to the last value of phases one and three. I'm sorry, phases two and three. Now, I would like to give the floor to Hector to talk about financial results. Well, in the first phase, we can see the performance of our properties compared to the same period of last year and in the first quarter we had a very robust growth of 13.7 and throughout the nine months 11.8 percent both for shopping malls and offices the main driver or leverage of those results are in revenue for most we had this increase of 10 percent and offices 11 percent This is basically due to the fact that we had an increase of revenue of same stores. As Diago have mentioned, there were some store exchanges with the best portfolio as well as best profitability. There's another factor for shopping malls, though, which has to do with media in kiosks, events and other merchandise campaigns that have been growing at about 20% rate. which is something that has been providing great results for us. For offices, the results are basically focused on reviews, or I'm sorry, revisions, where we are focused on three main buildings, two at JKAAA, as well as Leblon in Rio de Janeiro. This growth is above the inflation rate. And also for the last nine months, we can see the same impact. where we grew 11.8%, total 13% in malls, getting to 48 million and 8.7% in offices, leading us to 17% or 5 million the year. On the next slide, we can see two very important indicators, the adjusted EBITDA. In the third quarter, we can see a growth that is cohesive to the ROI, 15.5%. our EBITDA of 20.8 million. Looking specifically at the nine last months, we can see that five months of this portfolio happened five months before the transactions that we have closed. So there is this decrease of 36.8. So 95.6 of last year compared to 60.4 of this year. However, when we look at the adjusted FFO, we can see that there is this growth of about 120% in the first quarter, where we had these 20 million FFO adjusted to sales effects. And specifically for the nine months of 2024, we had 35% last year, and this year 45.6%, showing a growth of 30%. showing that specifically for the fourth quarter on we have already distributed 960 million so even considering that we have these return for shareholders and we still have an FFO that is consistently better than the same period of last year in this slide we can see the evolution of our net debt from one quarter to the other we basically maintained at the same level of growth that in terms of cash we have closed at 231 million and this drop is due to the reduction of capital that we have had at the end of this quarter so with that we close with a total uh debt of 271 millions, which is about three times our adjusted EBITDA, which is still considered to be a quite healthy level of debt. And very important pay for our investors and shareholders as well. So When it comes to our indebtedness or amortization schedule, we can see the profile of our debt, which is mainly focused on IPCA, which led us to reduce our average cost with a very important spread compared to the CDI of 85% over the CDI. And I think now we can go to the Q&A session. Now we are about to start the Q&A for shareholders and analysts. If you have any questions, please click on Raise Hand. If your question is answered, you can click again to lower your hand. If you would like to type down or to write down your question, please send it on Q&A. The first question is by Reinaldo Verissimo. Congratulations for the results. How do you intend to reduce your gross debt until 2028? Do you have any plans to expand the ABL beyond the CLD warehouse? Hi, Ronaldo, how are you? Good morning. Well, about our leveraging. Yes, we have increased our leveraging rate because we had some extra cash. So specifically for this 3% of growth that Hector mentioned, it is already considering this reduction and it goes hand in hand with our practices. keeping the gross debt level. That is due to the fact that our debt is focused on IPCA which is a great cost. About the next coming years, This leverage is going to happen due to the expansion of our portfolios. This is the picture of the last 12 months, but over the course of the year and the coming years, we expect that due to the evolution of our portfolio results, we can reduce this leverage rate until we get to lower levels that maybe even allow for us to leverage our company. This deleverage result is coming again from the results of our asset. And when it comes to the expansion of ADL, specifically for CLD, unfortunately, we don't have any more room on that land so as soon as we finish the last phases we get to the limit of its constructed area but of course we are still analyzing new developments or maybe some new acquirements or expansions okay thank you so again if you have any questions just raise your hand or write it down on the q a icon so with that we would like to close the q a session we would like to give it back to tiago muramatsu so he can give his closing remarks okay so once again i would like to thank you all for your presence we had a very positive quarter and we are at your disposal to clarify any other questions Thank you very much. So with that, we will close our video conference. Thank you very much and have a great day.