Good morning, everyone, and thank you for waiting. Welcome to BR Properties' Q3 of 2022 results conference call. With us here today we have Martin Jaco, CEO, André Bergstein, CFO and IR Officer. This event is being recorded and all participants will be in a listen-only mode during the company's presentation. After BR Properties remarks, there will be a question-and-answer session. At that time, further instructions will be given. Should any participant need assistance during this call, please press star zero to reach the operator. This event is also being broadcast live by webcast, and may be accessed through BR Properties website, www.brpr.com.br/ri/, 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 concluded. Now I'll turn the conference over to Martin J aco, Mr. Martin, you may begin your presentation. Thank you, and good morning, everyone. Thank you for your interest and presence in the Q3 2022 results of BR Properties. In terms of the structure of this call, I'll make a brief introduction, then, the second part, the detailing of the results by André, and the third and last session will be a Q&A, with enough time for all the question and doubts that you might have. Starting with introduction, we are very pleased with the results of BR Properties on the Q3, which came in line with what we expected, what the management expected, and above the expectations of the market. Mainly, our pleasure comes from being able to deliver all the strategy that we designed by the Q3 of last year when we announced to the market. We remember that last year, we announced that we wanted a strategy in order to, first, reduce the debt of the company, and second, give back resources to our shareholders. The objective was to maximize the value of the shareholders in the company. We even mentioned that the way of doing that would be through a sale. With the sale resources, the idea was to pay debt and return capital to the shareholders. We identified a possibility of sale of the portfolio that turned out to be the largest sale transactions of commercial properties, directly commercial properties in the country. Most important, we were able to execute it within the optimistic scenario related to timing. It was a complex transaction, a very difficult transaction, but we were able to deliver and complete the transaction by the Q3 of 2022, and we can see the results as we speak. It's important also to stress that the success of delivering this strategy is due to the capacity and quality of all the team of BR Properties that always work in order to deliver more than the expected. I'd like to thank everybody that works in BR Properties, all the team that we have for this amazing achievement. Once we completed all this transaction, the Q3 of this year, we already can perceive all the benefits of the strategy, the well-succeeded strategy that we were able to provide. So André will go into details, as I mentioned, but some of them I would like just to stress right now. First of all, the company was able to pay 100% of its debt, something around BRL 3 billion. That turned the company into a negative net result to a positive net result. The Q3 in the company, we were able to achieve a margin, an FFO margin of 71%, which is the highest margin ever registered in the history of the company, therefore showing the success of this strategy. Remember that when we say we don't care about the size, but we do care about being efficient and profitable. From the operational side, the company now being smaller and more efficient, is also achieving its occupancy. Occupancy today in the company in both physical and financial is around 95% or that means almost 100% occupancy, almost complete occupation. Also the strategy two years ago of resuming the investment in the logistics sector proved to be very assertive. Not only we have the occupancy in Jarinu almost 100%, but now we just completed 150,000 square meters of new property state-of-the-art logistics space in Cajamar. Few days ago, we were able to receive the permits for occupation. Therefore, all the leasing activity that we've been discussing with the tenants probably will now be accelerated since we have all the permits for starting occupations and tenants will start making their decisions right now. We do expect that still this year we have a contract signed in Cajamar, but the idea is to complete the leasing by this year and the first semester of 2023. Not only we have the existing properties in Jarinu and Cajamar, but just to remind everybody that we still have potential expansion both in Jarinu and Cajamar that will take them over as soon as we see that the market is there and we complete the leasing of Cajamar. A very good perspective on the logistics sector for the company. Continuing on the operational side, the focus of the company will continue to be, as we always said, in leasing. Now the leasing of Cajamar is a priority in the company, and we hope we can deliver news very soon to all of you. Also, as a subsequent event, it happened on October 15, we carried out the capital reduction, returning approximately BRL 2.42 per share to our shareholder, was included in the strategic sale. With this capital reduction, we completed the first phase of our plan. Last but not least, in terms of importance, in the Q3, in August of Q3, we were able to release our first sustainability report. The idea was to give a light, to give the main highlights of what the company had been doing over the last 15 years. We are also very proud of this report, and we leave the company at your entire disposal. If whoever needs any clarifications, any doubt or suggestion, we'd be more than pleased to discuss this issue with you. Looking ahead, we still have a lot of things to do in the company, not only the logistics, as we just mentioned, but we have a future discussion. We have capital, cash today in the company, zero debts or all the assets that we have are free of any type of debt. We'll still have to receive 30% of the sale by middle of next year, around BRL 1.8 billion. Of course, there are some investors, some shareholders ask, and we said the same to everybody, yes, the discussion of advancing this payment and maybe returning new capital to the shareholders is on the table, is under discussion. As soon as we have a definition regarding this issue, we'll come to the market and make all the announcements that are required. This is pretty much in a nutshell what happened on the Q3. Again, we're very happy we have been able to deliver the strategy that we promised last year. In terms of the Q3 results, all the detail, I'll pass now the word to André. André, please. Thank you, Martín. Good morning, everyone, and thank you very much for attending the call today. Regarding the financial highlights of the Q3 of 2022, I would like to talk about the following points. First, in the Q3, our net revenue reached BRL 84.8 million. Year-to-date net revenues total BRL 266 million. It's worth mentioning that revenues coming from sold properties still represented around 20% of the total revenues from the quarter. Some revenues that were being recognized during lease agreements periods were fully anticipated, generating about 40% of the total amount of revenues. In the Q3, G&A expenses excluding vacancy expenses, stock options plan, taxes, and other non-recurring expenses amounted to BRL 16.8 million. In the first nine months of this year, G&A totaled BRL 48.9 million. The G&A for this quarter was impacted by non-recurring expenses indirectly related to the asset sales. Costs from the layoff of certain employees and the provision of retention bonuses made the G&A expenses of the quarter a little higher than BRL 16.8. The 16.8 would be kind of the recurring G&A expenses of this quarter. The company Q3 adjusted EBITDA was BRL 40.4 million. The margin achieved was 48% in the quarter. Year-to-date, the adjusted EBITDA was BRL 161 million with a margin of 61%. The adjusted net financial result totaled BRL 17.2 million, a positive amount corresponding to a nominal increase of BRL 80 million comparing to last quarter when we adjusted net financial result accounted for an expense of BRL 63 million in the quarter. In the last quarter. This reversal on financial result is explained by the amortization of 100% of the company's debt issuance during the Q3 and by the increase in financial income due to the strong cash position related to the portfolio sale to Brookfield that happened in July. The net income of the company in the quarter got to BRL 50 million and the company posted in the Q3 an FFO of BRL 60 million with a margin of 71% in the quarter, the highest level ever recorded in the company. The FFO year-to-date got to BRL 62 million. In the Q3, the average rent per square meter per month of the same commercial property portfolio was up 16% in the last twelve months, and the average rental grew by 33.1% versus the last quarter, the Q2 of 2022. The increase was mainly explained by the inflation rental adjustments in Passeio Corporate. In this quarter, consolidated financial and physical vacancy rates were 5.4% and 4.9% respectively. According to the general meeting held on April 26, in which the distribution of complementary dividends in the amount of BRL 41 million was approved. The company paid the second installment on September 13 in the amount of BRL 13.8 million, which was equivalent to 0.029 BRL per share. The last installment will be paid in December. In July, as Martín has already mentioned, we conclude the sale to Brookfield, including 12 real estate properties owned by the company for the amount of approximately BRL 6 billion. Upon completion of the transaction, 70% of the total amount was paid and 30% will be received in July 2023. This 30% will be adjusted by inflation and Selic. Inflation until the end of the year, IPCA and Selic from January until July. Throughout the Q3 of the company, as we mentioned, amortize all the debt in the amount of almost BRL 3 billion plus prepayment premium when applicable. In August, we published with great satisfaction, as also mentioned by Martín, our first annual sustainability report as of 2021. It was a very deep work that was done by the company and the company that we hire to help us, getting impressions and comments from all our stakeholders, service providers, board members, analysts, investors, all of them. We think that we conclude a very good work that shows really what matters for us in terms of ESG, which is something that we've been taking care and doing a lot of efforts on it since the beginning of the company 15 years ago. Finally, on October fourteenth, the company paid the amount of BRL 1.125 billion of the capital reduction, which was equivalent to 2.42 BRL per share. Well, those were the financial highlights of BR Properties in the Q3 of 2022. We will now open for the Q&A session. Thanks very much. Thank you. The floor is now open for questions. If you have a question, please press star one on your touch-tone phone at this or any time. If at any point your question is answered, you may remove yourself from the questioning queue by pressing star two. Questions will be taken in the order they are received. Please hold while we poll for questions. Excuse me. As there are no questions, the question and answer session is concluded. I would like to invite Mr. Martín to proceed with his closing remarks. Please go ahead, sir. Thanks everyone for participating in the Q3 call, results call of BR Properties. If any doubt or clarification may arise, do please call us. We'll be more than happy to assist in any doubt. Thank you very much and have a nice weekend. That does conclude BR Properties conference call for today. Thank you very much for your participation, and have a nice day.
Loading workspace