Hello, and welcome to today's second quarter 2022 results conference call and webcast. My name is Leslie, and I will be your event specialist today. All lines have been placed on mute to prevent any background noise. Please note that today's conference call and webcast are being recorded. During the presentation, we will have a question-and-answer session. To follow the conference online, please visit https://consorcioara.transmision.com.mx. The word transmission is with one S only. If you would like to view the presentation in a full-screen view, please click the full screen button in the upper left-hand corner of your screen. Press the same button to return to your original view. It is now my pleasure to turn today's program over to Alicia Enriquez, Co-Chief Executive Administrative and Finance Officer. Please go ahead. Thank you, Leslie. Good morning, and a warm welcome to our conference call on the second quarter 2022 results of Consorcio Ara. This call will be also transmitted via webcast, accompanied by a slide show for visual support. With me on the call to discuss the results are Germán Ahumada Russek, Chief Executive Officer and Chairman of the Board, Griselda Ahumada Russek, Vice Chairman of the Board, and Miguel Lozano, Co-Chief Executive Operating Officer. I want to alert everyone that certain statements and comments made during the course of this call must be considered forward-looking statements as defined by the Securities Litigation Reform Act of 1995. Consorcio Ara believes that such statements are based on reasonable assumptions, but there are no assurances that current outcomes will not be substantially different from those discussed today. All forward-looking statements are based on information available to the company on the date of this call. The company is under no obligation to publicly update or revise any forward-looking statements as a result of new information that may become available in the future. As usual, at the end of our prepared remarks, there will be time for Q&A. We'll wait on the event to open the queue for questions. I will now turn over the call to Germán Ahumada Russek, Consorcio Ara Chief Executive Officer, for this morning's remarks. Please. Good morning, and thank you all for joining me this morning. Results for the second quarter of 2022 compared to the second quarter of 2021. Total revenues, meaning the sum of housing revenues plus revenues from other real estate projects, came to MXN 1.77 billion in the second quarter of 2022, a double-digit growth of 16.5% compared to the same period of the preceding year. This marks the highest amount on record for the past 11 quarters. Housing revenues totaled MXN 1.69 billion, a double-digit advance of 16.3% compared to the second quarter of 2021. These revenues came from the sale of 1,596 homes, 2.9% more than in the second quarter of last year, with an average price of MXN 1,059,000, a 13% increase. Breaking down our second quarter 2022 revenues by segment, Affordable Entry-Level homes brought MXN 544.6 million and remained practically stable year-over-year. Middle-Income home sales reached MXN 625.2 million, a significant 44.6% year-over-year increase. Residential home sales reached MXN 520.1 million, a 9.3% growth over the same period of last year. Revenues from other real estate projects, mainly from sale of land and shopping center leases totaled MXN 77.8 million with a 20.5% increase attributable to higher revenues of both land. Looking at the revenue mix in the second quarter of 2022, Affordable Entry-Level homes contributed 30.8%, Middle-Income homes 35.4%, Residential 29.4%, and other real estate projects 4.4%. Between April and June of this year, operating income totaled MXN 164.3 million, an 8.9% growth over the same period of last year. Excluding non-recurring expenses relating to tax in prior years, which was credited at the time and not being entered under expenses, operating income was MXN 192.2 million, a 27.4% advance. EBITDA totaled MXN 246.9 million, 12.7% higher. Excluding the nonrecurrent expenses I just mentioned, EBITDA was MXN 274.8 million, a year-to-year growth of 25.5%. In the second quarter of 2022, net income came to MXN 159.4 million, 14.3% more than in the same period of 2021. Excluding one-off expenses, it was MXN 138.9 million, a 28.3% increase. Between April and June of this year, the operating margin was 9.3%, the EBITDA margin 14%, and the net margin 9%. Excluding nonrecurrent expenses, the operating margin grew 100 basis points over the second quarter of 2021, reaching 10.9%. The EBITDA margin rose 110 basis points to 15.5%, and the net margin grew 90 basis points to 10.1%. In the second quarter of 2022, and on the ninth quarter in a row, we generated positive free cash flow to the firm, this time for MXN 81.6 million, which is impressive considering the investment required to open the development we have announced for this year. Results for the first half of 2022 compared to the first half of 2021. In the first six months of 2022, total revenues, which is the sum of housing revenues and revenues from other real estate projects, came to MXN 3.41 billion, 10% higher than in the same period of last year. Housing revenues totaled MXN 3.28 billion, 9.7% higher than in the first half of last year, and corresponding to the sale of 3,136 homes with an average price of MXN 1,050,000, a 15.7% increase compared to the first half of last year. Looking at the sales in each housing segment, in January-June 2022, Affordable Entry-Level homes totaled MXN 1.1 billion, a slight 1.9% reduction from the year earlier period. Middle-Income home sales totaled MXN 1.60 billion, 15.7% higher. Residential home sales reached MXN 1.04 billion, a year-over-year increase of 16.3%. Revenues from other real estate projects, mainly from the sales of land and shopping center leases, totaled MXN 127.9 million, a 17.9% year-over-year increase due primarily to higher revenues from shopping center leases. Breaking down our revenue mix in the first half of 2022, Affordable Entry-Level homes contributed 31.9%, Middle-Income homes 34%, and Residential 30.4%, while other real estate projects accounted for the remaining 3.7%. In the first six months of this year, operating income totaled MXN 317.1 million with a margin of 9.3%. EBITDA was MXN 465.6 million, a margin of 13.6%. Net income totaled MXN 298.3 million, which resulted in a net margin of 8.7%. Compared on the same terms as the second quarter results, that is excluding one-off expenses, operating income in the first half of the year totaled MXN 360.7 million with a margin of 10.6%. EBITDA was MXN 509.1 million with a margin of 14.9%, while net income was MXN 330.3 million, a margin of 9.7%. In the first six months of the year, we generated positive free cash flow to the group totaling MXN 176.4 million. Financial position as of June 30, 2022. As of June 30, 2022, cash and cash equivalents totaled MXN 3.33 billion, a slight 1.9% decline compared to the balance at the close of the previous year. Accounts receivable ended the second quarter of the year at MXN 697.2 million, 6.9% above the balance it registered as of December 31, 2021. Accounts receivable turnover was 1.3 months, practically stable against the turnover reported at the close of last year. Total inventories as of June 30, 2022 amounted to MXN 15.1 billion, a slight 1.3% increase over the balance reported on December 31, 2021. At the close of the second quarter of 2022, interest-bearing debt came to MXN 1.98 billion, a 3.4% reduction compared to the balance as of December 31, 2021. This mainly is a repayment of simple unsecured loans. Short-term maturities, meaning debt coming due in the next 15 months, made up 9.5% of interest-bearing debt and long-term debt 90.5%. As of June 30, 2022, 35% of our interest-bearing debt was in the form of ARA21X and ARA212X notes. 21.3% were simple unsecured loans for our shopping centers. 3.1% were lease liabilities. The remaining 0.6% were simple unsecured bank loans without real estate collateral. At the close of this year's second quarter, net debt remained negative because the balance of cash and cash equivalents exceeded our cost-bearing debt, resulting in a net debt position of negative MXN 1.35 billion. Our leverage ratios remain at optimum levels. Our cost-bearing debt EBITDA was 2.07 times. Net debt to EBITDA ratio was negative 1.41 times. While the interest coverage ratio was 5.18 times. If we base this ratio on coverage of net interest, meaning interest expense less interest income, it would be 41.6 times. Consorcio Ara credit ratings. On May 30 of this year, S&P Global Ratings upgraded its credit rating of Consorcio Ara as a long-term issuer on the national scale from mxA+ to mxAA- with a stable outlook. This is the highest grade ARA has received in the 16 years of being rated by this agency. This rating reflects S&P Global Ratings' opinion that ARA can be expected to maintain a prudent financial policy in the next 2 years while preserving key factors of its credit profile, like very low leverage and strong liquidity position. On July 7, Fitch Ratings affirmed its long-term national scale rating of A+(mex) for ARA, also with a stable outlook. At the same time, it rated its AA-(mex) rating of ARA's ARA 21X and ARA 21-2X notes. According to the agency, ARA's rating recognizes the diversification of its revenues by market segment. It's focused on maintaining a solid financial profile with high balances of cash and short-term investment and a capacity for generating positive free cash flow even during the low end of the business cycle. These reports can be viewed at www.consorciara.com.mx. Housing industry performance. According to Mexico's National Institute for Statistics and Geography, INEGI, between January and May 2022, industrial activity in general grew by 31% compared to the same period of last year. The construction industry saw a slight 0.3% increase, while the building subsector, which includes housing, declined by 1.4%. According to the data from the Unified Housing Registry, RUV, in the first half of the year, 72,966 homes were registered, a 36% decline from the same period of last year, and 66,859 homes were produced, 21% lower. Regarding mortgage lending in the first six months of this year, based on data from the National Housing Commission, CONAVI, INFONAVIT granted 67,778 loans for the purchase of new homes, a decrease of 16.9% compared to the same period of 2021. These loans represented an investment of MXN 36.7 billion, a 6% decline. The average size of a home loan between January and June 2022 was MXN 542,000, a 13.2% increase compared to the same period of 2021. FOVISSSTE, for its part, granted 10,161 loans for new homes in the first five months of the year, a 14.3% decline from the same period of 2021. The investment in these totaled MXN 7.36 billion, 14.3% lower. The average size of the loan granted between January and May of this year was MXN 724,000, a slight 0.7% reduction from the same period of last year. As for commercial bank home financing, in the first five months of 2022, 46,270 mortgages were granted for the acquisition of new and used homes, a 5% growth compared to the same period of 2021. The investment in these totaled MXN 86.4 billion, a 14.4% increase. The average size of a commercial mortgage loan granted in January to May 2022 was MXN 1.87 million, a 9% growth over the same period of last year. In the first half of 2022, 39.9% of our revenues came from homes financed by INFONAVIT, 19.2% from FOVISSSTE, and the remaining 14.9% from commercial banks and home purchases without financing. Shopping centers. The results of our shopping centers continue to show a solid recovery with double-digit growth. In the second quarter of 2022, revenues totaled MXN 102 million, a 29.66% growth over the same period of last year, while net operating income was MXN 69.1 million, a 44.5% higher. Revenues in the first six months of 2022 totaled MXN 193.9 million, a 36.6% increase over the same period of last year, while net operating income in the first half was MXN 131.1 million, a growth of 63.8%. These results correspond to shopping centers that are 100% owned by ARA and are consolidated into our financial statements. Centro San Miguel, Plaza Centella, Centro San Buenaventura, and Plaza Carey, uni, and mini, as well as 50% of Centro Las Américas and Paseo Ventura, according to our stake in those properties, which are entered under the equity method. Total gross leasable area in our six shopping centers and in uni and mini shopping centers is 205,043 square meters. The occupancy rate as of June 30, 2022 was 92%, a very competitive level. As of June 30, 2022, the expansion of our Plaza Centella shopping center was 90% complete. This expansion will add 3,600 square meters of built leasable area with a total estimated investment of MXN 178 million. As we announced in our previous conference call, in the ordinary annual meeting held this past April 21, Ara shareholders approved a dividend of MXN 290 million, or almost 50% of our net earnings in 2021, and 45% higher than the last dividend paid. The dividend yield was an attractive 7.2% based on the share price as of the close of the dividend payment date, which was MXN 3.24. The dividend, which was paid on July 14 of this year, was drawn from the net fiscal earnings account as of December 31, 2013, which means it was not subject to tax withholding. Purchase of Ara stock. As we announced in the official release sent to the Mexican Stock Exchange on June 9, Luis Felipe Ahumada Russek, one of Consorcio Ara's lead shareholders, acquired 30 million shares or 2.38% of the company's outstanding stock. Same time, Ara also purchased 20 million shares, 1.59% of the outstanding capital stock under the share buyback program. Both transactions were possible because we were advised that an investor who had maintained a position in Ara stock for 10 years intended to sell his shares. Additionally, in April, we canceled 22 million repurchased shares, equivalent to 1.72% of our outstanding capital stock. This was approved in the most recent general extraordinary shareholders meeting. This demonstrates our firm conviction that the current price of Ara's stock does not truly reflect its value. Ara's financial position is solid. Our strategy has proven appropriate for both taking advantage of favorable moments in the market and for weathering challenging or even crisis situations. We have a high-quality land bank that will enable us to maintain operations in states with strong prospects for housing demand. We have a supply of homes to serve the various segments of the market, and this in turn means a mix of revenues balanced between Affordable Entry-Level, Middle-Income, and Residential category homes. We also have a considerable source of value in our shopping centers. Another aspect to consider is that despite operating in the construction industry, which is capital-intensive with long cycles, Ara has always focused on generating positive Free Cash Flow to the Firm. From 2014 through June of this year, we generated MXN 6.37 billion in Free Cash Flow. This capacity has been fundamental in maintaining our policy of steady dividend payments. Having said that, we consider this stock purchase to have been a great opportunity. Renewal of market maker contract. On June 27th, we announced the extension of a contract for the provision of market maker services, which we signed in June 2019 with BBG Patra. This contract will help continue supporting the market liquidity of Ara's shares. The contract extension began on June 28th, 2022, and it will remain in effect for 12 months following that date. Conclusions. With these results for the first half of the year were good overall and in line with our plans. There are still major challenges ahead, like inflation and rising interest rates, but so far we have not seen a significant impact on housing demand, and mortgage lending continues to flow. In the second half of the year, we will continue to work on the openings we have planned, and as always, we will maintain our strategy of closely synchronizing sales and construction in each of our projects. Thank you, and we will now move on to the question and answers. We will now start the Q&A session. We would like to take any questions you might have for us today. If you would like to ask a question over the audio lines, please enter star eight on your telephone keypad. In case your question has been answered, you may cancel it by pressing star eight again. If you have been listening to the webcast and would like to ask a question, you may type your question using the chat located on the right-hand side of your screen and click Submit. We will begin by answering questions from the audio line, followed by those we receive from the webcast. Is there a question on the line? The first question from the audio line is from Antonio Hernández-Cotter from GBM. Please go ahead. Hello, guys. Thank you for taking my question and congrats on great results. I have just a couple of questions. The first one regarding performance and the pricing dynamics that you're seeing. I mean, overall, we saw that sale prices per unit significantly outgrew the cost per units. Do you expect this to sustain, to maintain in the future, or do you see any construction from inflation catching up with the price increments? Hi, Antonio Hernández-Cotter. Well, we think that at the end of the year, the price will remain very similar to the average price that we have in the second half. I mean, MXN 1 million. Obviously the increases that we are having in the costs are having. Well, as a result, we have been increasing our prices. That is the dynamics that we are expecting for the second half. Just a follow-up on that. I mean, do you expect to maintain current EBITDA margins or maybe to witness a little bit of a contraction going forward? It will be around 14.5% at the end of the year. Perfect. Also, sorry, if I may, another question regarding the VAT expense that you had during this quarter. I mean, you also had a big expense, an unexpected expense on this front during last quarter. Are you currently seeing anything else that could be similar to this, or do you expect something like this to happen in the future? It will be less on the second half. Maximum it would be MXN 50 million in the second half. We are analyzing that, but maximum MXN 50 million. It wouldn't be significant as it was in the first half. Okay. Sorry, another question. Just a quick one regarding the buybacks. You bought back a lot of shares during the quarter. What are your plans for this? I don't know if you mentioned it during the initial remarks. No, I think we will keep the shares and probably at the end of the year, we might cancel them. Perfect. Thanks a lot. Thank you. Thank you very much for your question. As a reminder, if you have a question over the audio lines, please enter star eight on your telephone keypad. Leslie, we don't have questions in the webcast. I thought it's working well, but no, there are no questions. Do you have another question on the line? Leslie? Yes. Our next question is from Mr. Antonio Hernández-Cotter from GBM. Please go ahead. Sorry, guys. Another question from me. This one is just a little bit more related to the values. I mean, I've seen that prices have increased roughly 15% beyond pre-pandemic levels, and the value of your land bank has remained pretty much unchanged at around MXN 140 per square meter. Because, I mean, I understand that you don't, you do not revalue the land bank. If you were to revalue the land bank, would you expect to see similar increments to the lands as seen in housing prices? Or should this increase in the value of land bank be even higher? Well, the average sale that we have in the balance is around MXN 140. If you divide the amount of our land and consider 3.6 million square meters. Therefore, to mention registered acquisition cost. First, we have enough land to continue our operations. This year we hope or we are expecting to invest around a total of MXN 300 million, but always focused in our strategy that is to buy a land well located and in a good price. No? We are focused on that. I don't know if I answered your question. Yes. Yeah, I mean, I understand that. If you were to look at your land bank again, and I know it's at book value. If you were to compare the value today, the market prices of that land bank that you mentioned that is at around MXN 140. Would that revaluation give you an increase in value of around or beyond 50%? I mean, the increase that we saw in units, in unit sold prices or how could that be seen? Yeah, I got it. Yes, we consider a higher value of our land to do that exercise. When we establish the prices of the house, we consider not like the real value, let's say, or the market value, sorry, but let's say a value considering at least inflation. Okay, perfect. That's clear, Alicia. Thank you. Thank you, Antonio. Thank you very much for your question. Leslie, we don't have questions in the webcast. I don't know if you have another question. There are no more questions from the audio lines at this time. Okay. I think we can end the call please, Leslie. Okay. That was the last question. This concludes the question and answer session for today.