Good morning, everyone, and thank you for waiting. Welcome to BR Properties 4th quarter 2022 results conference call. With us today we have Martín Jaco, CEO, and 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 participants 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 concluded. I'll turn the conference over to Martín Jaco. Mr. Martín, you may begin your presentation. Thank and good morning to everyone. Welcome to BR Properties call related to fourth- quarter 2022 results, and therefore the closing of the whole year of 2022. Thank you again for your interest and presence. In terms of the dynamics of this call, I'll make a brief introduction, then André will make all the detailing of the fourth quarter results, and we'll leave enough time for Q&A session. Let me start with introduction, opening statements here, I mean, before André start the detailing. The idea is that we emphasize, that we stress what were the main achievements throughout the entire year of 2022. It's important, and everybody, I think, already knows that 2022 was a transformational year for BR Properties, but as well as a many other years before 2022 were also transformational to the companies. BR Properties was always and will continue to be a very dynamic company in order to move fast and always try to raise the maximum value for our shareholders. Therefore, the behavior that we have throughout 2022 is not different from what we did over the last 16 years, therefore reacting first. In terms of the context that we were involved in 2022, in terms of the environment of 2022 was very challenging for everybody across the world. Not only on the macroeconomic point of view, on the global scenario, inflation, interest rates and also war. On the domestic environment, also inflation and interest rate, but also a political indefinition throughout 2022. Both the global and the domestic all is still with the effects of the pandemics. We were on the exiting or finalizing what would be the pandemic, the effects are still there on more or less level depending on the market. The effects are still there. When we consider the environment that we were in, the main highlights over 2022 of the company are, first of all, the largest transaction to be completed in Brazil of direct sale of real estate when we sold BRL 6 billion of our assets. It was completely executed throughout 2022, therefore shows the capacity, ability that the company has of concluding this type of deal. The idea of the selling of those assets, we informed the market at the end of 2021 that the interest rates were rising so fast that the idea was to sell assets to pay the debt. Once we achieved, we completed the sale of those of those assets, the first the first task that we have ahead of us was the prepayment of 100% of our gross debt, around BRL 3 billion. We prepaid all of our debt, therefore, the idea was to have no financial cost. Quite the contrary, with the cash that we have in the company, we became positive in terms of financial results. That was a very important achievement throughout 2022. As you've seen what happened with interest rate and companies that have some type of leverage, this is a very delicate issue. In our case, we are 100% deleveraged. This is a very important point. One of the main reasons for the sale of the assets. Once we concluded the prepayment of the debt, we passed to the second step that was how much capital distribution we were able to do. Throughout our capital reduction, we were able to conclude in 2022 a capital reduction of BRL 1.1 billion, equivalent to BRL 2.42 per share. That was carried out throughout 2022. All shareholders received their share of this capital reduction. Continuing the analysis of the capital reduction, considering what is the market ahead of us, how much capital we need to move forward, possibilities of new investments or not, we propose in the beginning of this year, on January 2023, a proposal from the management to carry out a second capital reduction, this time of a larger value, around BRL 2.5 billion, equivalent to BRL 5.41 per share. This capital reduction would take, the proposal was to take place half in cash and half in shares of an FII, Fundo de Investimento Imobiliário quotas, of these FII to the shareholders. The meeting, the general meeting was carried out in January 24th and was approved the second capital reduction that was proposed by the management of BR Properties. With this capital reduction being approved, it's still in 2023, probably around 60-70 days from now on, the company will have its first FII that will be the consultant, the real estate consultant for this FII, and it will be the first one that we're gonna provide consultation to the market as a whole. We used to own directly quotas of several funds in the past in terms of the structure that we decided. This will be the first one that we will actively carry out the real estate consulting. The first FII that we are creating right now, it will comprise the buildings Passeio in Rio de Janeiro and Águas Claras in Minas Gerais, both comprising more than 95% of occupancy. Therefore, just stating that we are that we're putting inside this fund AAA assets, already 100% developed, already 100% mature, and with very high levels of occupancy. This is a market that we believe we could continue growth in terms of the company, the BR Properties being more asset light, but we continue doing all the consultancy real estate service for third-party assets. This is something that we've been struggling throughout 2018 and 2019. In 2019, the idea was to create our first one, then came the pandemic. This is something that we've been cooking over many years inside the company, and now we'll be the first one, but we believe it could be a very interesting avenue of new growth for the company. Besides those punctual highlights that we have throughout 2022, we still have all the operational day-to-day tasks that the company continued to do. I think the main highlights could be the conclusion of Galpão Centauro, the Centauro logistic area in Jarinu that was already 100% pre-leased to L'Oréal, therefore continuing the growth in our logistic market. When we concluded this delivery, we consider all the leases throughout the year. Our vacancy levels reached 3.9% and 3.8%, respectively, financial and physical vacancy, showing extremely low levels of vacancy in the company, providing that the strategy that we created, the type of assets that we have, the relationship we have with the market and with the tenant, it's really very good. It's in the right place, therefore, providing very low vacancy levels in our in our portfolio. On the logistics side, we concluded on fourth quarter last year the delivery of 150,000 sq m of state-of-the-art logistics space in Cajamar, the project that we call Cajamar One. Out of the 150,000 that we delivered, 35,000 were already sold. We still have in our portfolio 150,000 sq m of this of this complex. Still on the fourth quarter of last year, we were able to make the first leasing of 23,000 sq m for the first tenant entering this complex. In less than 60 days of deliveries, 23,000 sq m were leased, thus showing the high demand and the quality of our assets. Again, the strategy is in the right place when we talk about logistic space. Also throughout 2022, when we look our governance, we always been very dedicated to have the right governance in place, the right transparency. We installed our auditing committee in the company comprising of three independent individuals doing a terrific job and helping us a lot, and this is something that will continue on the company as an idea of improving our governance levels. We were able to release our first annual sustainability report, ESG report. Last year was a very important factor. This is something that we've been working for many, many years, but now formalizing throughout the first annual report. Besides these extraordinary topics and items that we just discussed as highlight of 2022, entering 2023, we have, as we said, the approval of the second capital reduction, and immediately after this capital reduction approved, we receive on January 13th from GPIC a letter stating that they have an intention of putting in place a tender offer for acquiring the control of the company. At the same time, we receive a letter from the controller asking for the calling of a general assembly to discuss two points, the taking out of the poison pill and also exiting the Novo Mercado from B3, from the Bolsa, from the exchange market in stock exchange market in Brazil. We did as we were asked, and this general assembly will take place tomorrow at 10:00 A.M. Brazil time in our office. As a whole, as we see 2022, besides all the environment, besides all the challenges that we have, it's just another year that BR Properties was able to show its ability to recognize and react to the market, its ability to execute complex and difficult transactions, and its ability to deliver value to our shareholders. Therefore, we are very happy of what we achieved throughout 2022, we are certain that we still have a lot to do from the years ahead of us. With this first introduction, I'm passing now to André, who will detail the results of the fourth quarter. André, thank you. Thank you very much, Martín. Good afternoon, everyone, and thank you for joining our call today. As mentioned by Martín, we had a lot of changes in BR Properties through 2022. The local and foreign scenarios brought several challenges which affected the domestic and global economy, generating increased inflation and interest rates. In Brazil, we also faced tough discussions regarding fiscal policies. Despite this difficult scenario, I believe BR showed assertiveness by taking positive decisions from a financial and strategic point of view. We concluded the largest direct sale transaction of commercial real estate in Brazilian market, amortized 100% of our debt, and distributed BRL 1.1 billion through capital reduction. Moreover, without foreseeing any change in the outlook in the short term, we decided at the end of 2022 to carry out another capital reduction, of which BRL 1.276 billion will be paid in cash and another BRL 1.235 billion in kind to be paid for the delivery of quotas of the real estate investment fund. Totaling, thus, BRL 2.5 billion in the new capital reduction. The reduction was approved in the general meeting held on January 24th and will become effective by the end of March. On January 24th, it was also approved the reverse stock split of all the shares issued by the company at a ratio of 40 shares to 1. The company's corporate capital will no longer be divided into 464 million shares, but into 11 million 610 thousand shares. We will be able to pay the capital reduction in the FII in quotas at a one-to-one ratio. Considering these movements previously mentioned, the company's portfolio remains concentrated in high-quality AAA assets positioned in the industrial and logistics warehouse market. Talking about the financial results, we registered BRL 31 million net revenue in the fourth quarter. Year to date, net revenue total, BRL 297 million. The company adjusted EBITDA was BRL 5.2 million in the quarter, and year- to- date, BRL 167 million. The adjusted net financial result of the quarter total, BRL 53 million. This positive financial result is explained by the amortization of 100% of the debt in the third quarter and by the increase in the financial income due to the cash position related to the portfolio sale to Brookfield in July last year. We ended 2022 with BRL 295 million in cash. In January, last January, the company received from the Brazilian Federal Reserve BRL 176 million of restitution of negative balance of income tax and social contribution, referring to previous fiscal years. The refund amount was accounted for in the asset line recovery taxes, so it was a change of line. The net loss of the year was of BRL 1.5 billion impacted by the effect of the property's appraisal, both of those sold in July 2022, as well as the remaining ones, of which the appraisal at the end of the fourth quarter represented a net loss of BRL 153 million. Excluding non-cash and non-recurring effects, the company post in the fourth quarter of the year an FFO of BRL 51 million. The annual FFO was of BRL 114 million, and the margin achieved 38%. As Martín mentioned, the consolidated financial and physical vacancy rates were 3.9 and 3.8 respectively at the end of 2022. When considering the recent delivery of Cajamar One is still under leasing process, the financial and physical vacancy rates were 16.6% and 31% respectively. In the last quarter of the year, the rent per square meter per month of the same commercial property portfolio was up 11.7% in the last 12 months. Comparing to the previous quarter, the average rent increased by 2%. Regarding capital structure, during the year, the company paid to shareholders, through the distribution of dividends, the total amount of almost BRL 50 million corresponding to around BRL 0.11 per share. As I mentioned before, on October 14th, the company paid a total amount of BRL 1.1 billion via capital reduction, equivalent to BRL 2.42 per share. Well, I think those were the main highlights of the quarter. We will now open for the Q&A session. Thanks again very much for being with us today. 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 the order they are received. We do ask that when you pose your question that you pick up your headset to provide optimal quality sound. Please hold while we poll for questions. We have no questions, so 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. Thank you very much for your interest and time in our conference. As always, we'll be at your entire disposal for any doubt or clarifications that might be needed. Thank you very much and have a nice day. That does conclude BR Properties' conference call for today. Thank you very much for your participation, and have a nice day.
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