Good morning, everyone, and thank you for waiting. Welcome to BR Properties first quarter of 2023 results conference call. With us here today we have Martín 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 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. Now, I will turn the conference over to Martín Jaco. Mr. Martín, you may begin your presentation. Renan, thank you very much and good morning to all and welcome to BR Properties call for results regarding the first quarter of 2023. In terms of the dynamic, I'll make a brief introduction of the main highlights of the quarter, followed by André Bergstein detailed presentation of the financial results of the quarter. Last but not least, we'll leave enough time to Q&A of all participants. In terms of our brief introduction, main highlights. I think that the first of all, the main highlight that we're having was another quarter very strong in terms of corporate activity, which is the same behavior that we have over the last year, over the last four quarters, which the company showed once again to the market its great capacity, its high capacity of execution of complex tasks, within challenging market scenarios, and with always the objective of searching for the best results for the shareholders of the company. Specifically on what happened on the 1st quarter on the corporate side, the financial results will be provided by André. On the corporate highlights, I'd like to start by January, when on the beginning of January, the management team made a proposal for a new capital reduction, which was successfully approved in January 24th in general assembly called by the company. This new capital reductions comprise two different items. The first one, capital reduction in Brazilian currency, in cash. Another part of the capital reduction was to be made through quotas of FII Real Estate Funds that the company was about to create. The capital reduction in cash was carried out completely by April 19th. Therefore, all the work for being completed in the beginning of the second quarter was carried out throughout the first quarter. The total amount distributed was equivalent to BRL 1.276 billion roughly. The reduction carried out through quotas of the FII of this real estate fund also occurred in the beginning of April 5th, and it was due to all the work that we did throughout the first quarter of 2023. The shareholders received the same amount of quota, the same proportional amount of quota that they have their participation in the shares of the company at the time. The total quotas divided through the shareholders was equivalent to BRL 1.234 billion roughly. This FII which is called BROF11 or BROF11, comprises two assets. The first one, Passeio Corporate in Rio de Janeiro, which is comprising around 92% of the total fund, and Águas Claras asset, which is the build to suit to value. Both building they are triple A buildings, all with LEED certification. Combined, they have an occupancy of 96% divided in more than 25 ten of the showing the diversity of the income generated by this fund. The value, a valuation of BRL 1.2 billion. This fund is already considered one of the largest corporate funds in Brazil. It's around the main four in terms of size funds in Brazil, and its main objective is to be an important dividend payer for its quota holders. On the same assembly that we previous mention of the capital reduction was also approved. The reverse split of the shares of the company to 42-1, which was carried out successfully as well throughout the first quarter of 2023. Still on January, the company received a communication of an intention of a volunteer public offer to be presented in the future by Slabs Investimentos with the objective of acquiring the control of the company up to 100% of the shares of the company. This first intention of the public offer demanded for a first assembly to exclude the poison pill that the company had and to authorize the exit of Novo Mercado in case this public offer continues and is successful. In February, this the first quarter of this year, the assembly was carried out and both items were approved. Continuing and entering March, on March 10, the formal proposal to acquire the control of the company was presented to the market and carried out successfully by April 10, beginning of the second quarter, where the auction of the public offer was carried out. According to the informations that the company received, Slabs acquired on the first 10th 89.74% of the total social capital of the company. This participation increased to 94.32% according to the communications that we presented to the market today and the information that we received by Slabs. Consequently, as expected on April 12, since the public offer was successful, the company left the Novo Mercado segment of B3, and now is being traded at the basic segment, Segmento Básico, from B3. In conclusion, as you can see, once again, a lot of extraordinary activity on the corporate side besides all the operation on day-to-day tasks that the company continued to carry, with excellent result as we said. We would like to stress once again the capability of execution of BR Properties, which has been a characteristic throughout 16 years. Another important fact, on 13th March this year, the company completed 16 years of existence. I conclude the main highlights on the corporate side. Let me pass now to André Bergstein for the detailing of the financial results. André, thank you very much. Thank you very much, Martín, thank you for the ones that are attending today our call. Well, regarding the financial highlights, in the first quarter we had net revenues of BRL 21 million. I think it's worth mentioning that both Passeio revenue and Águas Claras revenues, that both properties were incorporated in the BRAS. We are not going to have the revenues from those two buildings in the second quarter. We have the difference between the first quarter and second quarter because of that. The Adjusted EBITDA of the first quarter was of BRL 13 million, the margin achieved 42%. Our adjusted net financial result total BRL 37.7 million in the quarter. This positive financial result is explained by the amortization of 100% of the company's debt issuances throughout the third quarter of 2022, and by the increase in financial income due to the very comfortable cash position related to the portfolio sale to Brookfield in July 2022. Our net loss got to BRL 43.7 million, mostly affected by non-operational expenses that came because of the movement that we made when we consolidated the two buildings in the real estate investment fund. Excluding those non-cash and non-recurring effects, the companies post in this first quarter an FFO of BRL 50 million with a margin achieving 162%. Our net cash position at the end of the quarter got to BRL 400 million. In order to enable the capital reduction, the company anticipated part of the receivables from the portfolio sale to Brookfield through the execution of the term of first issuance of commercial paper notes with Banco BTG Pactual in a single series secured for private distribution in the amount of BRL 1.19 billion, with maturity on August 23, 2023, and a cost of CDI + 1.65%. The resource was made available to the company by April 12 and was used in the company in the capital reduction in money, that was done in April 19. I think that those were the main highlights of the first quarter in terms of financial performance. Thanks very much again. Now, then we now are open to the Q&A. 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 handset to provide optimum sound quality. Please hold while we poll for questions. Excuse me. This concludes today's question and answer session. I would like to invite Mr. Martín Jaco to proceed with his closing remarks. Thanks very much for your presence and interest. As usual, we are at your entire disposal for any doubts or clarifications that you might need. Thank you very much. Have a nice weekend. That does conclude the BR Properties conference call for today. Thank you very much for our participation. Have a nice day.
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