Hello. Good morning ladies and gentlemen. Welcome to the earnings release call of LOG Commercial Properties. These are results referring to the third quarter 2024. We have here with us today Sérgio Fischer, CEO, André Vitória, CFO and Investor Relations Officer, and Henrique Schaffner, Director of Finance and Investor Relations. We would like to inform you that the presentation is being recorded and translated simultaneously. Translation is available by clicking Interpretation. For those listening to our video conference in English, you can mute the original audio by selecting the options. During the company's presentation, all participants will be in listen-only mode. Next, we are going to start our Q and A session. To ask a question, please click on the icon Q & A and type in your name and company name. When your name is called, you are going to get a message. To unmute your microphone, click and start asking a question. We would like to clarify that forward looking statements that may be made during this conference call with respect to business prospects and operational and financial goals of the company are based on beliefs and assumptions of the Executive Board of the Company which may or may not occur. Investors should understand that political, macroeconomic and other operational factors may affect the future performance of the company and lead to results which may differ materially from those expressed in these forward looking statements. To open our conference of 3Q24, I would like to hand it over to Sérgio Fischer. Good morning and thank you for being here for the LOG's. Third Quarter 2024 earnings release. Throughout 2024 we reached an important milestone with record asset sales of BRL 1.5 billion, consolidated gross margin of 38% and cash received of 61%, reflecting not only the attractiveness of our portfolio but also our ability to monetize assets at prices in line or above NAV. This result is part of five transactions involving three real estate funds and one institutional investor which covered eight projects in six different states in the Southeast. We sold LOG Viana I and II, LOG Betim, LOG Guarulhos and LOG São Bernardo. The latter is still under construction. In the Center-West we sold LOG Goiânia and in the Northeast LOG Fortaleza and LOG Salvador. Asset recycling has been carried out on a recurring and consistent basis in recent years with sales totaling 3.1 billion BRL, more than 843,000 square meters of GLA since 2020-2022 always in line with NAV. Cash generated from sale of assets has been mostly used as a source of funds to support our growth plan. In addition, the excess amount of asset sales was allocated to buy back shares and reduce leverage. From the beginning of 2024 to date, LOG has repurchased and canceled 14.3 million shares which correspond to 14% of the company's capital stock. The cancellation of shares reflected in our NAV per share, which showed a compound annual growth of 16.2% since the beginning of 2020 including paid dividends. Deliveries in the third quarter 2024 totaled 134,000 sq m of GLA in LOG Campo Grande, LOG Fortaleza III, LOG Juiz de Fora and LOG BH 68% of pre-lease. These deliveries are part of a total of 254,000 square meters of GLA distributed throughout the year. Production in the nine months of 2024 total 315,000 square meters of GLA which allow us to maintain a constant pace of deliveries. In addition, I highlight the efficient management of our portfolio which led us to the lowest stabilized vacancy rate in our history, only 0.44%, much lower than the industry average of 9%. Demand for our assets remained strong in all regions of the country. Gross absorption of 219,000 sq m of GLA in the quarter was the highest of the year. In 2024 we have accumulated 497,000 square meters of GLA with diversification between sectors. The most representative one amounting to 18% of total GLA, the most representative customer in terms of revenue corresponds to 8.5% of the total. Average ticket of LOG's portfolio was 20.23 while the price for new contracts was set as 24.12. It indicates a potential upside of 90% in relation to the current average ticket of our portfolio. Net rental revenue reaches BRL 55 million in this quarter. Even with significant volume of asset sales, the company showed growth in revenues from leases, showing 18% increase over the same period last year. Over the course of '24-'28 growth cycle, annualized rental revenue at the end of each year will grow substantially ranging between 20%-25% per year for nine consecutive quarters. LOG has achieved a positive lease spread reflecting the appreciation of contracts. Accumulated net delinquency of the last 12 months remains controlled at only 0.9% of accounts receivable. Quarterly revenue from asset management was BRL 4 million, 78% growth over the previous year. Direct reflection of active management of the projects managed by LOG. In addition, it should be noted that our projects enter the free energy market which brings cost saving to about 30%. SG&A showed reduction of 4% over the same period last year. EBITDA for the quarter was BRL 136 million, 77% increase compared to the last quarter driven by operational efficiency and rental performance and value generated. I also highlight EBITDA from lease reaching BRL 43 million, 16% growth over the same period last year with operating margin of 76%. Negative financial result of BRL 25 million showed improvement at 21% over the previous year. Net income reflected the high performance of the quarter reaching BRL 97 million, the double over third quarter 2023. We remain focused on maintaining healthy leverage. The net debt EBITDA ratio closed the quarter at 1.07 times, an improvement over the same period last year which closed at 1.49 times, showing our commitment to a responsible financial management. Our capital structure continues to strengthen 15% reduction adjusted net debt compared to the second quarter 2024 now totaling BRL 442 million. This improvement reflects our financial prudence and the success of the asset recycling carried out. In October we issued a new CRI issue raising BRL 300 million with extremely competitive conditions of CDI plus. This move was accompanied by the prepayment of more expensive debts, further aligning our capital structure with our long-term objectives. In addition, LOG achieved significant reduction in the effective cost of its debts which fell to CDI 1.5% after the new issuance compared to CDI 1.9% last year. This reflects our active management of the debt, which continues a downward trajectory, is expected to decrease even more. Adjusted LTV ended the period at 10%. LOG's well positioned to continue its growth trajectory supported by decisions that increase the value delivered to our shareholders. Let's now start the Q and A session. Thank you. We are going to start now our Q and A session. To ask a question, please go through Q and A and type in your name and company name. When your name is called, you are going to get a notice to unmute your microphone. Do it and ask your question. Please hold while we collect the questions. The first question comes from André Mazini, Citi. Hello. Good morning. Thank you for the call and for taking my question. I have two questions actually. The first one about e-commerce. It's interesting to see how e-commerce has getting more representativeness in your base, 80% of GLA. So the specifications of these e-commerce managers request, are they different from other tenants? Do they need cross-docking, which is very much related with e-commerce? That would mean different assets from conventional assets not for e-commerce. And secondly, cost of construction. LOG has always been very competitive in cost of construction, and now the index is 5.7%. The INCC, the index for construction. We know it has the amount very much related with home building. I don't know if that 5.7% is also be applicable to warehouse-to-shed construction. So how are you considering the cost inflation at large? Hi, Mazini. This is Sérgio speaking. Let me go first by e-commerce. We've been seeing an increasing demand of e-commerce in all regions of Brazil. The Asian companies are coming strong into Brazil. We have other investments and we are supporting them and their growth in Brazil. There is no specific specifications in our projects. The lease for e-commerce that we've made are the spec LOG warehouses with our specifications and it tends to meet their needs. We haven't done any specific adjustments and we've been meeting their demands with regular specifications. The demand is increasing. We can see they are getting prepared to expand their operations where they are already located and getting ready to spread further. We've been hearing about their growth plan and they seem to be very robust. They want to be close to consumers. Sometimes we are the only asset in the specific region. So we are surfing a very good wave with them going into 2025 with a very good pipeline of negotiations with these players concerning the cost of construction. Our cost is stable. We've been observing all the pressure of prices and the new rate that has been shared. But that's not our reality. I have to say our construction is highly industrialized. I think it tends to have more pressure over labor and but it hasn't been really any increased pain point. We've been having a stabilized cost of construction. We have a very good pipeline of development that we've put in place very advanced negotiations for procurement. So I don't expect in 2020 differences over the course of construction. That's perfect. Thank you. Have a good day. Second question comes from Elvis Credendio. BTG, your mic is available now. Hello, good morning. I have two questions. First, about pre-lease, this quarter used to have good numbers. What are your expectations for pre-lease in the fourth quarter? Also, what do you expect in terms of pre-lease for 2025? I think you are going to maintain high levels as you've maintained. Secondly, concerning liability management, the credit market is very heated. You've just had new issuance, very attractive costs margin. Do you think there is still more room for additional issuance? Is it part of your plans? Thank you. Hi Elvis, thank you for the question. I'm going to talk about the pre-lease and then André will answer the second one. The market is in high demand. In our history we've never had that much demand. Really a demand for our assets and we have a stabilized vacancy of 0.44% and it really confirms that this is an amazing moment for us. At the same time we have to talk about prices. We've succeeded to have better prices. Customers are willing to pay more. Some results for this year. Our average ticket is over 24 BRL in a very diversified portfolio all over Brazil. So it really shows that. It confirms that in the past 18-24 months things have really been improving. We've been adjusting our lease prices on a monthly basis and customers are following along which really what matters. Very good moment to all of us. It has been impacting our projects. Projects delivered in the quarter. Very considerable volume of 134,000 square meters. We had over 3% yield on cost and we expect to follow the same in the next quarter and the whole pipeline for 2025. There's a lot in pre-lease mode. It's going to follow long. So it's a very good time for all of us in terms of pre- lease. There is a very relevant share of pre- lease for all the projects in the fourth quarter. We are going to have very good quarter in terms of deliveries and we have very good pricing and yield on cost perspectives and the constructions which are going to be delivered next year. We also can anticipate some pre- lease and we intend to maintain that delivery assets with at least 70% pre- lease and reaching the stabilization of the assets a few months after deliveries. Let me now hand it over to André about credit concerning the liability management. For the recent months we've been assessing and appreciating our position of credit risk considering financial institutions and rating agencies. We could issue a new CRI with a very good attractive rate. We have revisited our debt and had a significant reduction of interest rates. At the same time we used the prepayment window of the most expensive debts which were CDI plus 2, approximately 2%. We intend to keep on doing the same considering all the prepayment windows that we have especially of most expensive debts to take our position according to what the market offers to us. This last issuance had very good conditions as you can see, our leverage index is 1.07 considering all the management adjustments we make and we do not expect to have any more capital raising. As of the second quarter last year we probably will use any prepayment window left. The market is offering as favorable conditions as the one we had in the beginning of October. We'll probably take the move to reduce our debt amortization plan for 2026-27. Great. Thank you very much. Have a good day. Question from Pedro Lobato, Bradesco BBI. Please unmute your mic. Good morning, Sérgio and André. Thank you very much for the opportunity. It was BRL 440 million below the BRL 700 million that you shared with us as your golden rule ceiling on net debt. So I have two questions. First, looking towards 2025, what is going to be the strategy of asset selling? Are you going to maintain the initial strategy of selling it to fund your CapEx or do you expect to sell as you did this year? And second, you've been extremely active in the buybacks in excess of cash. If it's maintained in 2025, will the company be more active in paying dividends? Considering the net debt of BRL 700 million, would you expect to pay more dividend? Thank you. Sérgio speaking. Let me start talking about sales. We are very optimistic with the liquidity of our assets. What we've been doing in recent years since 2022 we saw 3.1 million assets with NAV. This is what we use as a reference and always at very positive conditions with very good margins and increasing margins. This year the operations that we did of BRL 1.5 billion, it was over 38% on average margin, very positive margin. As you probably what we've noticed is that liquidity is the same. We are constantly approached, we are highly demanded. Even though the scenario is somewhat more complicated, there is still liquidity of some real estate funds coming to us and this is going to be maintained while we have the scenario of interest rates. But we are willing to play the game. We are very optimistic about liquidity this year we are not going to sell anything else. We have one more transaction now just coming to its end. It has been announced, not completed yet, and probably we are going to close that at BRL 1.5 billion. It's more than we initially thought. At first we wanted to sell close to the CapEx to support and maintain our net GLA at this agreed range, but we've noticed opportunity liquidity is there and we had the opportunity of doing something which would be interesting for our shareholders, which is the payback of shares which we concluded in 2020. There were BRL 300 million, so really very good. 14% of the capital stock. We have new plans, so we are willing really to move ahead whenever we see an interesting gap between the NAV of these sales and what is initially planned about 2025. Our trend is to maintain the same strategy in the beginning of the year of selling the needs of Capex to maintain constant activity. We do have a buffer. We are below what we consider to be healthy index of leverage. So we do have buffer area to do more, maybe additional dividends, maybe more buyback. We don't know. We are talking it internally and we have this reserve because we are very satisfied from an operational perspective. Capex is quite high. We've been producing a lot. We have high demand. So we want to have that buffer so that we can deliver new assets with high yields, probably will return, give back more of these resources back to our shareholders. Great. Thank you very much. Have a good day. Our next question comes from Ruan Argenton, XP. Please unmute your mic. Good morning. Thank you for taking my question. I have two questions actually. The first, about average ticket potential upside between the average ticket of new contracts and the average ticket of the current operation. What about the speed of growth of this average ticket in the next months? There are contracts to be renewed, but do you expect a gradual speed, a linear increase of every ticket with a potential of upside? Or do you think that things are going to pick up and be faster eventually? My second question is similar along the lines of what Sérgio has answered about portfolio recycling. Funds have been negotiating below their interest, company interest. So that's going to be a problem really of raising more money in the future. But do you anticipate any change in the profile of investors in the recycling of assets? Do you expect more institutional investors to be in demand for your assets? Do you think they are going to be your main buyers? Thank you. Thank you for the question. Sérgio speaking. Let's start from the liquidity one. We always have ongoing discussions. Lots of things happening every day. Some of them succeed, others not. We have demands from all kind of investors. Real estate funds. There is a component of the seller finance and that's going to be needed. As has been the case in recent cases. Institutional investors have approached us as well. But what matters is liquidity is ongoing. What we've done is a record this year of sales in our company confirms that. And we've done that at a cap rate. Very good. A very good cap rate. So I think that the mix between real estate funds and institutional investors will remain. There are real estate funds that we provide services to as real estate managers. They've been increasing significantly. It gives them more power so they can buy more assets in the future. We are very satisfied with that recycling of our assets. Sometimes they are in funds that we hold the management. So these real estate funds are growing with us. So it means that we can bring to them more assets. This is what we are anticipating concerning average ticket. This is the ninth consecutive quarter where we can have price adjustments above inflation rate. Very positive landscape. There is a large gap still, and as I told you, we've been changing our lease prices monthly. The spread between the current value and potential value will maintain while this situation maintains. We are just really driving it up. It's a very positive momentum. Looking ahead. We expect to maintain this pace of going ahead above inflation. This one was a very good quarter. Really above inflation. Very good number. We're very optimistic. We are going to be able to bridge the gap and keep on investing heavily. That's great. Thank you. The next question comes from Jorel Guilloty of Goldman Sachs. Please unmute your microphone. Thank you for your time. Two questions about demand. I would like to understand how you see that in terms of region or drivers. Do you see any region which is more accelerated? The other, southeast, Northeast, etc. And type of demand? You've talked about e-commerce, for example. Do you think e-commerce is going to be your main driver? Or maybe a restructuring of supply chain? I would like to understand more generally what are the demand drivers that you see? Thank you. Thank you for your question, Sérgio. Speaking here, there are two main drivers for demand. The main one is the flight to quality. Brazil is very poor in top quality sheds and warehouses, especially outside the Southeast. We see a lot of possibility of explosive expansion in different regions. Brazil is going to grow two million square meters of GLA. That's very little still, and we've been migrating to other regions, especially customers which are already in place. But they are not really occupying well. The reason they want to go with one of our warehouses because that's the only means more efficiency to them. So this is good because it doesn't matter on the macro scenario. Once you have a warehouse of quality in a region where it didn't use to exist, it's very easy to migrate potential good customers. This is our main driver. Even more than e-commerce, which is at a very strong pace. I know we are making businesses with e-commerce, but regional demand is the same. There is no different mix by region. Northeast, e-commerce requests a lot flight to quality as well the same center. West or Southeast. The demand is the same all over Brazil in terms of driver, and I would say that we are succeeding in meeting the market with top quality warehouses. Customers are willing to pay for this quality and we are there to support them, and these customers are already in-house. We know about their growth plans. We know what they need in terms of absorption. So it's so much easier to have the additional inventory in each region based on what our customers need so that we don't increase vacancy and do not have poor investment of our capital. So we've been very successful in working closely with them. Within this context, do you see more competition, other companies just developing warehouses? Do you see more competition or do you think you are alone or tend to be alone in the market? We haven't seen an increase in competition depending on the region. Yes, there are investments being made or investment funds making investments, but I would say not in a structured fashion. We haven't seen any strong competition. Some regions, such as the state of São Paulo or the capital city, we are delivering an asset in the capital city of São Paulo. The demand is huge and competition therefore. But we haven't felt that much of a competition, especially if the increase of ticket price. We used to have good territory, higher prices and then companies looking for further investments there. But not now, considering the industrial rates. Some decisions of competitors are being held back, which is positive to us. Great, thank you very much. This question comes from Marcelo Motta, J.P. Morgan. Please unmute your microphone. Thank you for taking my question. I'd like to talk about the revenues from the administration. Even though the GLA has been somewhat flat in recent quarters. We would like to hear about the improvements you've made to capture more benefits there. What can we expect in terms of benefit for 2025? Thank you, Marcelo, for the question. This is Sérgio speaking. We are very happy with this business unit. This strategy of selling assets to funds where we still have management is really important. This is a line that's going to increase in terms of revenues. It is something running at BRL 20 million in revenues per year. There are different services being provided. We have LOG Shop, which has been increasing LOG ADM which provides condominium management. And we also have management of commercial assets. You will see some increases. There is a new transaction which will just have the asset transferred to a fund where we have management services. So this line is going to get more and more momentum and in the near future we are going to see it paying for the whole SG&A of the company. We are getting close to 50% of SG&A and we expect to get to a robust number to pay the whole company for it. That's great. Thank you. The next question was submitted in writing by Paulo, Crowd Investors. He says. Good morning. Could you please approach the spread between yield on cost and the cap rate of assets in the operations of the last quarter. Has the margin maintained the 47% rate? Thank you, Paulo, for the question. Sérgio speaking here. This is a very strong moment of deliveries in terms of yield on cost. The construction cost is stable with an increasing lease price. It means we are delivering yield over 3% of return in the year, and we can see stabilization of the cap. We've had a less stressed scenario in the past. We have additional captures to make, but we are delivering nearly 40% gross margin. That's what we did this year. Four or five transactions that we had in the year were at a rate of about 38%. Our trend is that throughout 2025 we are going to maintain the same range. Looking ahead, we expect to capture additional margins at the cap rate once we see a more favorable interest rate curve. Our Q & A session is ended. I'd like to hand it over to Sérgio Fischer for his closing remarks. Well, thank you all very much for the call. Considering demand and our investments, we are very optimistic for 2025. It's going to be a very strong year, a record year in terms of delivery of new projects and yields close to 3%. Very strong demand, very strong pre- lease liquidity of assets is very important. We are very optimistic that we are going to maintain the same pace, capture or raise the funds required to maintain our operations. In terms of balance, it's important to emphasize this move of capital cancellation. It's returning value to our shareholders. We might do some additional activities like that in the near future. If we see this, there are opportunities. So this is something good for our NAV GLA. We expect to see an increasing number of revenues and positive indicators for our company. Thank you all very much for your interest and participation. See you next quarter. Earnings release call of LOG is concluded now. If you have a question, please send a message to the investor relations team through the email ri@logcp.com.br