Good morning, everyone, and thank you for waiting. Welcome to BR Properties' Second Quarter of 2021 Results Conference Call. Also here today, we have Martín Jaco, CEO, André Bergstein, CFO, and IR Officer. This event is being recorded, and all persons will be in listen only mode during the company's presentation. After the BR Properties remarks, there will be a question and answer section. At that time, further instructions will be given. Should any party need assistance during this call, please press star zero to reach the operator. This event is also being broadcast live via webcast and may be accessed through BR Properties website at www.brpr.com.br/ir, where the presentation is also available. Participants may view the slides in any order they wish. The replay will be available shortly after the event is completed. I will turn the conference over to Martín Jaco. Martín, you may begin your presentation. Well, thank you very much and good morning to everyone. Welcome to the BR Properties Second Quarter 2021 Earnings Release. We thank you for your presence and for your interest. In terms of dynamic, I'll start with a brief summary of what happened and what were the main context during this second quarter 2021. Further, André will do a detailing of the results of the second quarter, and we'll leave enough time for Q&A and any other considerations that you might like us to clarify. Let me start with the summary part. Let's start with the context, the macro context. From one side, we had a positive scenario, which is a vaccination program in Brazil is improving. We have the beginning of the return to the office, therefore, more activity in terms of tenants looking for sites, as you can see in our leasing activity that we'll cover shortly. We have still a very volatile scenario, especially with the interest rate discussions and the high inflation levels that we have. This creating thus a very volatile environment. Throughout this context, when we go deeper into the real estate market, specifically on the office and logistics, let's start with the office. In this scenario, what we saw in the office was the returning to the office and the resuming of the leasing activity, which is very positive, specifically in AAA portfolios, very high-end quality portfolios, such as the one that we have, that we've been working very hard for the last five years to transform our portfolio into a pure AAA portfolio. This is really what we've been seeing, the large part of the movement of the resuming of the activity of leasing from offices. The good part that we have in terms of fundamental ahead of us for the next two or three years is a very low new stock delivery ahead of us of this type of property. If this property continues with this absorption, we will have scarcity of this type of property, therefore, generating pressure on prices, improvement in pricing, which is very healthy for our portfolio. On the other side, logistics that happened all around the world, and Brazil is not different from that, and we've been very active on the logistic market, specifically on the e-commerce. High demand from the part of logistic operators, e-commerce companies. They've been looking for more updated type of warehouses or last mile development, and thus taking benefit from the new deliveries in the market. If we take our two markets where we concentrate our logistic investment, like Jandira and Cajamar, on both, the market overall has one digit of vacancy rate. Jandira, where we have our existing properties, is almost close to 100% of occupancy. This is a very healthy market and will continue like this in the years ahead. Enough of the context. Let me just turn now to the main highlights of the results of the second quarter that we would like to mention, and specifically on the operational activities of the company. Same thing happened as on the previous quarters. All the different activities have been very strong. On the leasing side, this is the first one that we would like to mention. On the leasing activity, with the leases carried out on the second quarter, we ended up with the strongest first semester in the history of the company in terms of leasing activity. The total was 88,000 sq m of new leases signed throughout the first semester, being on second quarter 76,000 sq m. A special highlight to the leasing in Jandira, a logistics space that we acquired and pre-leased 100%, 63,000 sq m. On the Ventura Towers in Rio de Janeiro, with activity leasing close to 19,000 sq m of new lease signed. This is a very important highlight in the first semester, first quarter, second quarter of this year, the record in terms of leasing absorption in the history of the 14 years of the company. We provided a reduction on the vacancy levels, both physical and financial, for the third quarter in a row. Reduction in vacancy, and as we can see, this provided an increase in the net revenues of 4% when we compare to the second quarter 2020. We still consider that 32,000 of these is already signed and not showing and not being presented in the top line of the company yet. It will be from the third quarter onwards. EBITDA at the same level, 6% of improvement when we compare to the second quarter 2020. Again, this movement of vacancy reduction, that from one side you bring income, from the other side, you reduce the vacancy costs. Another area of very strong activity was the M&A. On the acquisition side, as we always will continue being on a very opportunistic approach, we were able to acquire the Centauri building in Jandira, the one that we were able to pre-lease. We bought 63,000 sq m at the price of BRL 2,500 per sq m. Delivery will be on the first semester of 2022, as we mentioned, 100% pre-leased to a AAA multinational. It's a very important leasing acquisition that we did. Parque da Cidade, we did a small acquisition of three commercial small buildings that we have in front of the three towers that we acquire. It's been 2,300 sq m at the price of BRL 12,000 per sq m, at a very good price. This is just part of the strategy of consolidation and control of this specific sector in Parque da Cidade. On the M&A, when we talk about the sales, whilst on one side we were able to acquire Centauri at BRL 2,500 per sq m in Jandira, we sold our building called Tucano. It's the second time that we sold this property. It's been in our portfolio once. We sold and then we bought it back, now we're selling it again. André will enter into the details of that sale that was very accretive for the company, creating value for our shareholders. We sold 32,000 sq m at the price of BRL 3,000 per sq m with 75% of occupancy. This is a very important trade, 32,000 with 75% vacancy trading for 63,000 of 100% of occupancy with a prime multinational company. This is a very good trade. This is the way that we grow the company on a very active and opportunistic approach. Most important of this sale is that the sale of Tucano was carried out with a premium to NAV of 5%. When we take the other sale that we did of the Torre B in São Paulo, that we sold 20% of our ownership in the building for BRL 30,000 per sq m, that represents a premium of 6% of NAV. Both sales, one at 5% of premium to NAV, the other one at 6% of premium to NAV, that show that the market recognizes the value that we have built in all of our properties, with a premium when we consider all those two cases. On the other hand, the share of a company determined depreciation or devaluation or discount of around 35%-40%. This is a very intriguing situation to put in mind, that doesn't make any sense at all in our case once we have the real market and buyers recognizing the value of the properties and buy them on premium of what we have on NAV. Also another very small sale that we did, this is part of the non-core portfolio, was a site that we have in Pirituba, pretty almost inside São Paulo site. We have the neighbor investor that wanted to acquire this site and build a last mile development. We ended up with an agreement that we will swap the end product, and 40% will be for BR Properties. This is a very important recycling, as well on the line of other recycling of the portfolio, with the intention of always keeping our portfolio as state-of-the-art, AAA pure portfolio. Therefore, when we see the leasing activity, when we see the M&A, both in sales and the acquisitions, we can see that once again, the company has been very strong on the operational activity in all the areas of the company. This is due to all the dedication and hard working of all the staff of BR Properties, both in the headquarters and in the buildings. It's important to mention that we've been now in five quarters in a row since this health crisis of COVID, and during those five quarters, we just provided to the market improving operational results and stability in our portfolio, and now decreasing of vacancy, increasing in EBITDA margins. This is another important quarter that we have ahead of us. Let me just pass the word now to André, who give more details on the earnings release of this quarter. André? Thank you very much, Martín. Good morning, everyone, and thank you for attending the call. Regarding the financial highlights of the second quarter of 2021, I would like to talk about the following points. In the second quarter, besides all the impacts of the pandemic, we reached BRL 78 million of net revenue, 4% up versus the second quarter of 2020. It's worth mentioning that nearly 32,000 sq m in new lease agreements already signed were not booked in the quarter results. Those 32,000 sq m correspond roughly to BRL 8.7 million of revenues per quarter. We keep managing our properties according to the pandemic restriction phases, having our own protocols and taking care of the employees' health. Even with the restricted conditions of the first half of the year, the volume of rent relief was present only in some of the retail tenants. While most of the adults are having the first vaccine, we see our tenants coming back gradually to the offices. In the second quarter also, G&A expenses, excluding vacancy expenses, stock options, land and taxes, BRL 14 million, 5% down versus the same period of 2020. In the first half of 2021, G&A total BRL 28.3 million, a reduction of 3% when compared to the first half of 2020. This result shows the company's historical commitment towards maintaining high levels of operational efficiency despite increasing inflation, which measured by IPCA, reached 8.35% in the last 12 months. Our delinquency level closed the quarter at 0.2% over gross revenues, a sharp decrease over the last quarter. Considering revenues and G&A just mentioned and vacancy expenses according to expectation, adjusted EBITDA reached BRL 55 million, 6% up versus the second quarter of last year. EBITDA margin achieved then 70% in the quarter. The adjusted net financial expenses total BRL 28.5 million. Despite the increase in the Selic interest rate between March and June to 4.25% per annum, it remained at historically low levels. The current level of interest rates, along with the company's enhancements in capital structure in recent years, made it possible for BR Properties to continue showing low net financial expenses. In the quarter, the average effective cost of debt was 6.5% per annum, which is equivalent to CDI, Selic + 2.2% per annum. Excluding non-cash and non-recurring effects, the company posts in the second quarter FFO of BRL 26 million, down nominally BRL 19 million versus the second quarter of 2020. The margin is 33% in the quarter. While our EBITDA increased when compared to the same quarter of last year, the reduction on the FFO came from higher Selic and higher net debt. As we start generating revenues from Parque da Cidade, Cajamar, and Centauri projects, we will see FFO going back to previous level. We posted net income of BRL 27.8 million in the second quarter, an almost 40% increase over the same period of the previous year. It's worth mentioning that net income in the quarter was positively impacted by mark-to-market adjustment of Complexo JK - Torre B as a consequence of the sale of 20% of the assets for a 6% premium, as mentioned by Martín to NAV. First half net income was BRL 41 million, an increase of 20% when compared with the first half of last year. Net debt closed the quarter with BRL 2.3 billion, and our cash position was of BRL 773 million. As mentioned earlier by Martín, we had a very strong quarter on the M&A side. It's important to highlight Tucano Warehouse and 20% of JKB sales, where we had prices above NAV, 5% in Tucano and 6% in JKB. We also have the Centauri Warehouse acquisition, 100% pre-leased. Within our recycling strategy, we acquired Centauri for BRL 2,500 per square meter, while we sold Tucano for BRL 3,000 per square meter. Tucano Warehouse had been acquired in 2018 for BRL 71 million, with BRL 16 million financed at CDI + 0.7% per annum. With the sale, we got to a 33% per annum nominal return in this investment. From BR Properties Fundo de Investimento Imobiliário, the REIT side, the company announced the signing of an agreement aiming the sale of some selected asset stakes to the fund. Once the fund offering is concluded, the company will be the real estate consultant of the fund. The transaction, its completion is still subject to the fulfillment of precedent and suspension condition. In accordance with our new dividend policy, it was approved on April AGM, the distribution of dividends in the amount of BRL 71 million, equivalent to BRL 0.147 per share. Out of these amounts, 23.7 were paid in June, and the remainder will be paid in two equal installments in September and December. Following the share buyback program approved last August, which aims the acquisition of up to 11 million common shares, and will be open until February 5th. Until June 2021, 5.2 million shares with no par value were repurchased for an average price of only BRL 8.94 per share. Well, those were the main financial and operational highlights of BR Properties in the second quarter of 2021. We will now open for the Q&A session. Again, thanks very much for your attendance here in this call. Thank you. The floor is now open for questions. If you have a question, please press star one on your touchtone phone at this or any time. If at any point your question is answered, you may remove yourself from the queue by pressing star two. Questions will be taken in order they are received. We do ask that when you pose your question, that you pick up your handset to provide optimum sound quality. Please hold while we poll for questions. Remembering, if you have a question, please press star one. This concludes today's question and answer session. I would like to invite Mr. Martín Jaco to proceed with his closing remarks. Please go ahead, sir. Well, thank you very much, everyone, for your attention and interest in the earnings release of BR Properties second quarter 2021. As always, we stay at your entire disposal for any doubts or clarifications that you might need ahead. Thanks, everyone, and have a nice day. That concludes BR Properties conference call for today. Thank you very much for your participation, and have a nice day.
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