Good morning, ladies and gentlemen. Welcome to the video conference of results of LOG Commercial Properties second quarter 2022. We have with us Mr. Sérgio Fischer, CEO, and André Vitória, CFO and Director of IR. This presentation is being recorded and transmitted simultaneously. Interpretation is the icon for those who should choose so, and you can mute the original audio during the presentation. All participants will have their mics disabled. We'll have Q&A. Click on Q&A for questions, and type your name and your company. Upon that, you'll have your mic released. You must activate your mic for questions. Statements during this conference are related to future projections. Economic and other projections may or not occur. Investors must understand that politics, macroeconomic, and other factors may affect the future of the company and differ from the considerations that are herein disclosed. To start this session, Mr. Sérgio Fischer, floor is yours. Good morning, everyone. Thank you for the participation. In the second Q of LOG, we had great development with three assets, 171,000 m². Ceará, Pernambuco, and Minas Gerais states, 240,000 m². The construction activities are within expected, 105,000 m² and 208,000 within the plan. We plan closing 2022 in 400,000 square meters. Our execution capacity, we have had eight simultaneous projects with 1,900 people in construction sites. We sold two assets, BRL 424 million reais. We are to deliver in the fourth quarter in the region of Belo Horizonte. The gross margin of 33%, 3% above the projection. Recycling of assets, we have accumulated BRL 1 billion in sales, 40% of our projection so far. We have clients per segment. We have vacancies stabilized in 2%. The lease contracts are slightly above the projection. Our growth has been leveraged by e-commerce and the room lease, and it is to keep on growing over the next years, reflected on the high demand for our assets. Even with the macroeconomic scenario being somehow chaotic, we are still growing in great consumption centers. Our real estate work, we are working to prepare the areas for commercialization, trading in the least time possible. 15% land bank for the conclusion of the plan with the trading and the negotiations of plots of land that are very positive. LOG ADM, we are serving our clients ever so more efficiently. With the management of more than 1 million square meters with retention of clients, with RPS remaining at high levels. Mr. André Vitória, with you, we have had the best results, BRL 136 million we have had during this quarter. Our capacity of added value with greenfield assets, 104 million in generated value. We have the strategy of recycling of assets being those are our main fundings for the company. When it comes to fundraising, we have BRL 400 million in debentures, CDI +1.65% within five years. Our fundraising required no guarantees, our great history. We had AA+ by the agencies of classification. We had that reflected in a very positive way in the results. Assets above the average ticket reflect the assets and the net revenue in BRL 54 million, 47% above the same period last year. Default net 0.6%. Administrative OPEX, in other words, reflect our growing efficiency, operationally speaking. Financial result was increased by the CDI and the debt. Debt and the swap had a negative effect of the order of BRL 36 million. LOG is focusing on many initiatives, SIG, decarbonization in ESG. Eliminating almost all the emissions of the company and helping our neighboring communities with more than 8,000 hours in Araçariguama, Betim and in Minas. Now we are moving to our Q&A. Thank you. We open now the Q&A, reminding you that in order to ask questions, you have to click on Q&A, type in your name, your role and your company. Upon your turn, you release your microphone for questions. Our first question, Mr. Ygor Altero. Mr. Ygor, please, your mic is open. He's from XP. Good morning. Congratulations on the results, and thank you for the presentation. Two questions from our side. Recycling. You have shown these asset sales in the order of BRL 400 million, and the assets are solid despite the macro scenario. How are discussions for prospective sales, if you could actually comment on that in terms of cap rate? Do you expect the trading in the order of the 8% cap rates and ease of execution? Do you plan on expanding? The second question is related to how you see yield on cost. The scenario starts to slow down. How do you sense that in terms of debts and costs for the third Q? This is Sérgio. Yield on cost. We believe, Ygor, that the worst that we had to face is behind us. We have been able to have great performances. The trend is increasing on yield on cost because not only considering the assets that we have built, but we are being able to get great prices. In the second semester, we have the yield projected to be greater than the same period last year. Recycling is a strategy. It has been recurring and ongoing. BRL 300 million last year. With this operation this year, we have hit a new record, and we are always negotiating and trading assets. Our assets have a great demand, and the liquidity that we used to have from last year, there is great selectiveness. We still see a demand that is very growing. We have more than BRL 1 million in trading negotiations and conversations. That doesn't mean that we'll hit that mark, but close to that. We have to combine that with procedures, with the plan of growth of the company. We cannot sell great stakes at this point and freeze our cash flow. This has been very well done in terms of fundraising with capital for new investments. We'll see new operations. Cap rates are below those numbers. That's very important. We have to deliver the gross margin. That is a must, and that's how we'll keep on working. Thank you, Mr. Fischer. Mr. Bruno Mendonça, next question. Bradesco BBI. Floor is yours. Good morning. Thank you for the question. Two questions. The average ticket from Amazon, how is the pipeline with a growing level of tenants, tenant improvement? You mentioned speculation, and you mentioned that was a different level. How that is going? A provocation to understand how things are going. The delivery and the levels of vacancies is very low. The vacancy in the previous quarters was at zero. Couldn't we have charged a little higher price and vacancy in delivery in a scenario that needs to elevate the price in order to get greater results? This is Sérgio. Thank you, and thank you for the provocation. We do that day in, day out here. We question that. The market is very strong. We have been able to invest in yield. We are serving our clients. 75% of the operations are closed. We cannot leave that client out of the demands. We have a lot of variables, where LOG is one-stop shop for many clients. We want to serve those clients well, consciously, day in, day out with the management of the condos so that they can grow with us and they can take advantage of what we can offer. The pipeline in this year, a major participation will be speculative. Speculation, in other words. We must have new BTSs, BTS, but different from what we have seen. It will be more speculative than a pipeline BTS. We'll see difference in the prices, BRL 20 per square meter. Great. Thank you. Sounds good. Great, thank you. Our next question, Mr. André Mazini, Citibank. Mister, your mic is open. Good morning. Thank you for the question. It's a follow-up from Amazon. The company has increased representativeness. We are almost at 24% of revenue coming from that tenant. It's Amazon. The credit risk is triple A. Now contract-wise, the terms are longer than the average. It's 10 years, the average is five. You have that provision. If they want to leave that contract prior to that period, they would have to pay for the whole period. That actually raises a question. How is the deployment of the TI after amortization in the improvements for the major e-commerce companies? Thank you, Mr. Mazini. This is Sérgio again. The relevance of Amazon in our business is not only a contract, it's a number of contracts. There are a number of things in the oven. There must be an increase in warehouses, and we'll keep on sealing many deals with them. This one specifically was a deal with BTS. They paid the whole flow, and the TI was CapEx from Amazon. It's a contract that is very settled. We don't see much of a difference or change over time due to that. We have a specification under American terms. There is a structural value besides TI. That's why this ticket is above the average tickets that we have. Changing lanes here, the sales that you had was the securities and real estate buying at Selic at 3.25%. I know the Selic rate was lower. Nevertheless, do you think you can still keep on selling to the real estate market and securities? Or should we consider underwriting other than Selic that may be much more of a difficulty for them? Yes, I understand what you're saying. The scenario is different. The fundraising is much harder. The last year we had proposals, none requested in terms of fundraising, but there are ongoing discussions in development. A lot of discussions with other international investors. There is major appetite in that sense. As soon as interest rates start dropping, things will grow, will increase. Where last year, the transaction that we had was with a margin of 44%. This year, it was 33%, and we have the possibility to increase that in the medium term. So far, we have discussions undergoing, but for securities and real estate, yes, we have the possibility of leveraging that, and we must divulge in the medium term something in that sense. Thank you, Mr. Sérgio Fischer. Our next question comes from Mr. Daniel Gasparete from Itaú BBA. Your mic is open. Good morning. Thank you for the presentation. This is a follow-up that I have. If you could actually comment further on your sales process, if you had other buyers, if you had competition, not only this one, but other potential buyers. When you mentioned this answer to Mr. André, these funds that are undergoing discussions, there is a round of capitalization ongoing or what? Thank you. This is Sérgio. We have no transaction that would depend upon the funds raising funds. It's not an easy scenario for that, so that will not be a condition for acquisitions. These sales from this week wasn't planned. We were approached, and actually, the development actually took a direction that was very interesting for us. It wasn't even delivered yet. Secondly, there are discussions undergoing. I don't want to go into details at this point. We have international investors, as I mentioned, and international investors have long-term perspectives over the economics of the country. The curve of interest rates will change over time, and we have no interest in selling. We must keep on going with this strategy, and we have to see our assets, and we'll keep with our pipeline. Thank you. Our next question comes from Mr. Marcelo Motta from JP Morgan. Your mic is open. Good morning. Two very quick questions. If you could actually comment on the release of CapEx in the second semester of the year. We know that there will be deliveries. We know that so far we actually have explained, but we'd like to understand the planning for warehouses for next year. In the line of others that you mentioned, what is recurring and what wouldn't be? Thank you. This is André Vitória. Let me start with the second question in terms of revenue. We have an expressive growth in that period, activities of location and attached to a statement from our clients that impacted positively the value of the revenue in this quarter. In this case, the real estate was relocated. This building was relocated, and it's generated revenue again. Sérgio, floor is yours. Thank you. Projections-wise, we are preparing for 2023 for at least indicators that are in the order of at least what we delivered in 2022, and we want new deliveries. Construction work is starting. Some of them are advanced, some are starting. That defines the CapEx for the second quarter. We aim at maintaining that level for the second semester. Thank you, and a great day. Our next question comes from Mr. Rafael Breder from Safra Bank. Your mic is open. Mr. Rafael Breder, your floor is yours. Good morning. Thank you for the question. I'd like to go into more detail in questions in the matter of budgeting. You have a volume of production. I'd like, how do you see inflation in the end? So what are you expecting for the remainder of this year? This is Sérgio. Thank you, thank you. We believe that the worst is behind us. This sector, the metallic structure is very impacting. We have seen in the second semester of last year, the structure going up very robustly. We see that the manufacturing floors are more idle, and the concern with the prices of construction are behind us. Altogether, we understand that the costs will not go up in a relevant manner. They will even decrease, if I'll be honest. Thank you. Our next question comes from Gustavo Cambauva, BTG Pactual. Hi, good morning. My question is to help understand how you see the effect of the inflation on lease prices. Thinking the future, we have the expectation of high inflation rates even for the next year. I'd like to understand your standpoint, how you will pass that on to the lease prices. The sector has a good level of demand, but companies in all segments have been suffering retail, wholesale with margin pressure. After all, logistics end up become a component that counts in accounts has to be accounted for. Does this persistent inflation levels concern you, or you think that will be easy to pass on to lease prices? This is Sérgio. Thank you. This quarter, we were slightly above the inflation, 0.1% above inflation in line with last quarter, and we have been able to pass on the inflation. We plan on keep on going that way. This sector is actually promising, very prospective. The perspectives are good. Looking ahead, we haven't had a lot of requests for discounts on the account of this scenario that you mentioned. It's very isolated cases, depending on the project, the location, the prices that have been negotiated. Looking ahead, we believe that we'll be above the inflation rates. I think and hope that the worst of the inflation rates are behind. Last year, we had a good result, and I think that during the same period this year, it will be even easier. Thank you for the answer, and a great day. Our next question comes from Mr. Jorel Guilloty from Goldman Sachs. Your mic's open. Thank you all. I have two questions. First of all, I'd like to understand your pipeline. I understand that you have part been constructed triggers for the rest of the pipeline. Is there anything specific or this pipeline is fixed? The second question is the Torino Park one of the assets sold, how much revenue is being generated by that asset? Mr. Guilloty, thank you. Pipeline-wise. What we have seen, the dynamics here is that the large clients that have many location with us, they understand our pipeline, they understand what we have ahead of us. That's why we have been able to have pre-lease rates very good because we are preparing for future growth and high quality. That is something very important. Brazil has 170,000 m² of warehouses. The pre-lease is very easy to deal with. At the end of the day, it's been very advantageous. They pay the square meter by the square meter, but the cost of occupation, final occupation is better. That this sector is not scared, if you will, of the scenario as a whole in the country because they see growth in the future. Our pipeline needs a level of pipeline that is steady to start construction. We see and we can tell what clients to start with, and we can actually marry ABL with the absorption of. Furthermore, we see here that we have controls in, as I said. 70 this semester. We show that and numbers show per se, keeping up with the evolution of those assets that you asked. This is recent. This is a project that is at 100% of capacity or do you believe it is still stabilizing? This is Sérgio. The occupation level is very strong. It's been delivered recently. The completion was December 2021. It's normal that we have a leasing curve. It's 9%. Full occupation, and we see that this is positive for the market. We have to have development. We don't have that as the case. We have a revenue that has been set BRL 22. Thank you. Our next question comes from Fanny Avino from Santander. Good morning, everyone. Good morning, Sérgio. This is a simple question because I've got most of my questions. Is there any sector of the industry that you see as the main demand, having seen the macroeconomic scenario deteriorated? The second one is more of a strategic question. How do you define recycling assets and the ones that you will keep in your base? This is Sérgio. Thank you for the question. This is not a decision. It takes into consideration some variables. Taxes, the fiscal matter is very important. The sector embraces the area. We have to see if there is upside. There is a series of variables that we take into consideration. There isn't a revenue specifically that we could actually touch upon, or mention upon now. In all sectors, we serve all sectors of the industry. We see speculative warehouses in the radar of many different industries, to be honest. That's why that's not a concern. We cater for the specific requests of different sectors. Food and beverage is one sector that actually has a good level of demand. We have catered for them, and I would highlight that e-commerce. Do you see any decrease in the demand? The deceleration is something that you notice. Do you see a problem or your discussions keep on going? Well, Ms. Fanny Avino, this is an industry that grew a lot due to the pandemic, due to the consumer habit changes. We have seen changes in sales in the past month. We see a lot organizing. Some of them are organizing the logistics mesh. I do not see personally looking at the average. Some projections show 2023 in electronics growing in the order of 22%. If that happens, we'll have a bottleneck, a lack of available warehouses. We may have had, due to the macro scenario, some drops. Nevertheless, on the way out, at this point that we are in the pandemic, we still are depending on consumers and demands. We have the industry that I mentioned as the latter one deciding that. Rodrigo Santiago, now a brief question. Good morning. Concerning the sales of the assets to FII. Is the NAV of the sales only for those sales or LOG as a whole? This is André Vitória. Objectively, the NAV was above 3% as we reported earlier. Our next question comes from Gustavo Cardoso. Would you comment please on any change in FFO concerning the first quarter and the second quarter of 2022? This is André Vitória again. We had a growth of FFO per location compared to the second quarter of 2020 to 20%. When we think these margins in our financial statement, we have this fluctuates from trimester to trimester, or from quarter to quarter. In this quarter, we had the operation of equity swap repurchase of shares. It fluctuates from quarter to quarter, but it changes from year to year. The fluctuations actually are due to our operations, the fluctuations in operations. Q&A is officially closed. Now we would like to pass the floor to Mr. Sérgio for the final considerations. Thank you all for being with us in this call. Looking into the future, I'd like to leave a message of growth. We keep on going with our plan. We have our clients with great demands. If we keep on delivering with quality and return on that quality, we'll have this spread within cap of sales and evaluation. If we keep on going in that direction, that is the trend. We'll keep on the indicators and the rates that points towards growth. The operational side of the company is doing quite well, and that is seen in our financial statements. Thank you all and have a great day. The video conference of IR is closed. You can send your questions to ri@logcp.com.br. Thank you all and have a wonderful day.