Hello, and welcome to today's fourth quarter 2023 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 "transmision" 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 Enríquez, 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 fourth quarter 2023 results of Consorcio Ara SAB. This call will be also transmitted via webcast and combined via a slideshow for visual support. With me on the call to discuss the results are Germán Ahumada Russek, Chief Executive Officer and Chairman of the Board; Luis Felipe 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 Private 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 the information available to the company on the date of this call. The company is under no obligation to publish, 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 until then to open the queue for questions. I will now turn over the call to Germán Ahumada Russek, Consorcio ARA's Chief Executive Officer, for this morning's remarks. Good morning, everyone, and thank you for joining us. Results for year 2023 compared to 2022. In 2023, our company brought in revenues of MXN 6.75 billion, 3% less than 2022. Our housing revenues, which accounted for 95.5% of the total, amounted to MXN 6.44 billion, a decline of 2.7%. These revenues came from the sale of 5,573 homes at an average price of MXN 1,156,300, an increase of 9.8% over the previous year. At the close of 2023, you also have MXN 132.3 million in homes titled through the Build and Acquire Credit, or Line III, primarily in the affordable entry-level segment. These revenues will be recognized as the homes are completed and delivered to customers, which should be a maximum period of six months. I mentioned in our previous call, with this type of loan, beneficiaries can build their home either on their own or through a developer in an authorized housing complex, comprehensive model. It offers a number of benefits to the borrower, including a qualification score of just 880 points, which is lower than they need for a traditional loan. During the construction period, the developer receives installments as the work progresses under the supervision of managing financial entity. Breaking down our revenues for 2023 by housing segment, the affordable entry-level segment generated MXN 1.99 billion, 10.2% lower, middle-income sales totaled MXN 2.51 billion at 9.4% increase, and residential income came to MXN 1.94 billion, a decrease of 8.1% from the previous year. These reductions were the result of lower sales in our developments in Acapulco, a city that suffered devastating damage from Hurricane Otis, as well as delays in obtaining permits and the completion of some developments. Revenues from other real estate projects in 2023 amounted to MXN 305.2 million, 7.2% lower than in 2022 due to lower sales of commercial land. As for the mix of revenues in 2023, the affordable entry-level segment accounted for 29.5%, the middle-income segment 37.2%, the residential segment 28.8%, and other real estate projects with a remaining 4.5%. Operating income in 2023 totaled MXN 729.0 million, 4.7% higher than in 2022. Net income came to MXN 669.3 million, up 3.6%. EBITDA was MXN 985.5 million, rising 4.2%. As we mentioned at various moments in 2023, our profitability improved due to the absence of non-recurring expenses that affected us in 2022. Our operating margin was 10.8%, an advance of 80 basis points. The net margin was 9.9%, rising 60 basis points, and the EBITDA margin was 14.6%, a growth of 100 basis points. Mainly due to higher investments in our real estate inventories in 2023, we generated negative free cash flow to the firm, amounting to MXN 309.7 million. One of our main goals for this year is to return to the positive cash flow generation we have always been known for so that we can resume our dividend payment policy as stipulated for 2023. In yesterday's board meeting, our directors agreed not to bring a dividend payment proposal for the shareholders' meeting. Results for the fourth quarter of 2023 compared to the fourth quarter of 2022. In the fourth quarter of 2023, we faced very significant challenges that brought us further away from the goal we had set. The first of these was Hurricane Otis, a Category 5 storm that made landfall on October 25, wreaking unprecedented destruction and widespread human tragedy in the city of Acapulco. In the first nine months of 2023, this market accounted for 18% of our housing revenues, which came from the developments Punta Mar, serving the middle-income segment, Puerto Azul, middle-income and residential housing, and Dream Diamante, residential-level homes. Ara acted swiftly to extend support to both our employees and the community in our developments, delivering supplies, maintaining prompt and effective communication with our customers to provide information about the status of their homes, and immediately beginning cleanup efforts. I wanted to reassure you that the damage to our developments in Acapulco was not significant. It was mainly confined to warehouses, certain common areas near the beachfront, and in some homes with damage to window frames and property windows. This is a clear demonstration of the high quality we are known for, which also set us apart in 2013 during Hurricane Manuel and Ingrid. Furthermore, these developments are insured, and we have already begun the claims process to recover some of the losses. I should also comment that these three developments continue to operate. That is, we have kept up sales activities and construction at the pace they require. To a large extent, the homes we offer in Acapulco are an excellent second home or weekend getaway option. Depending on the segment they serve, they feature pools, private beach clubs, extensive green areas, sports and recreational areas, among other amenities. They're pleased and heartened to see families back during the past holiday seasons. Although sales have still not returned to where they were before Hurricane Otis, we have seen a gradual recovery and stronger than we had projected. Now, more than ever, we must be supporting and investing in Acapulco, a place of such immense personal and professional significance to all of us. Another challenge we faced was the delay in permits for two of Ara's most significant developments. These had been obtained by January of this year, so we are now in the process of titling the homes. As a result, in the fourth quarter of 2023, we generated revenues of MXN 1.3 billion-MXN 1 billion, which is 18.6% less than in the same quarter of 2022. Housing revenues, which accounted for 93.3% of total revenues, totaled MXN 1.41 billion, 19.7% lower, and came from the sales of 1,248 homes at an average price of MXN 1,127,900, an increase of 5.2%. Revenues in the affordable entry-level housing segment came to MXN 486.4 million, 19.3% reduction from the fourth quarter of 2022. Middle-income home sales totaled MXN 542.3 million, a 4.8% growth. In the residential segment, revenues came to MXN 378.9 million and decreased by 40%. Revenues from other real estate projects, mainly from the sales of land and shopping center leases, totaled MXN 101.9 million, practically stable compared to the previous year. As for the mix of revenues in the fourth quarter of 2023, sales of affordable entry-level homes accounted for 32.3%, middle-income homes 35.9%, and residential homes 25.1%, while the remaining 6.7% came from other real estate projects. The trend in our revenues affected our net income and, therefore, our profitability. In the last quarter of 2023, we reported operating income of MXN 144.1 million, with a margin of 9.5%. Net income amounted to MXN 144 million, with a margin of 9.5%, and EBITDA was MXN 203.5 million, with a margin of 13.5%. In the fourth quarter of 2023, we generated negative free cash flow to the firm, amounting to MXN 455.5 million, mainly due to the increase in investment in our real estate developments. Financial position as of December 31st, 2023. The balance of cash and cash equivalents closed 2023 at MXN 2.3 billion, a 26.9% reduction from the balance on hand as of December 31st, 2022, which, as I just mentioned, was primarily due to our investment in real estate developments. As of December 31st, 2023, the balance of accounts receivable stood at MXN 721.7 million, an increase of 9.4% compared to the balance at the end of the previous year, resulting from a higher volume of titling in the last weeks of the quarter. However, accounts receivable turnover remained at a fairly healthy level of 1.3%. Total inventories as of December 31st, 2023, amounted to MXN 16.76 billion, 7.7% higher than at the close of the previous year. This increase is attributable to various causes: the opening of new developments that initially required significant investment in urbanization and infrastructure. Second, homes built in developments where we had some delays in obtaining permits. Although these permits are now in hand, we are in the titling process. Acquisition of part of a plot of land, the rest of which we will be titling this year in Tijuana, a city where we believe it is crucial to continue operation. And four, increase in our vertical production, meaning developments with buildings. In 2023, 60% of our titled homes were in vertical developments. The close of the fourth quarter of 2023, cost of their inventory came to MXN 2.46 billion, a 6% increase compared to the close of the previous year. On November 29, 2023, ARA issued MXN 1.2 billion in sustainable unsecured bond certificates with the ticker symbol ARA23X, with a term of three years and an annual gross interest rate of 1.70% over the TIIE and up to 28 days. These bond certificates received a credit rating of HR AA+ from HR Ratings and mxAA- from S&P Global Ratings. We also have a sustainable impact rating of HR SB1+ from HR Ratings. Receipts of bonds will go toward financing future or existing projects, with a requirement they focus on remote social and environmental development in the communities where ARA operates. The issue was underwritten by the brokerage firms of Actinver and GBM. To keep our leverage ratios healthy, on the same day, November 29th, we redeemed all the outstanding ARA21X bond certificates in advance in the amount of MXN 1 billion. The issuance of the ARA23X certificates and the redemption of the ARA21X bonds significantly improved our maturity profile. At the end of 2023, short-term debt within the next 15 months made up only 10.2% of the total, and the remaining 89.8% was long-term. At the end of 2023, 68.4% of our gross bearing debt was in the form of ARA21X and ARA23X notes. 16% were simple secure loans for our shopping centers, 8% were simple unsecured bank loans without real estate collateral, and the remaining 7.4% were lease liabilities. Net debt at the close of the year was positive by MXN 165.1 million. Our leverage ratios remain at optimum levels at the close of 2023. Gross bearing debt to EBITDA was 2.5 times. The net debt to EBITDA ratio was just 0.17 times, while the interest coverage ratio was 3.15 times. We base this ratio on coverage of net interest, meaning interest expense less interest income, which would be 49.9 times. Housing industry performance in 2023 and outlook for 2024. According to Mexico's National Institute for Statistics and Geography (INEGI), industrial activities in general grew by 1.2% in 2023 compared to the previous year. Construction industry growth was 15.5%, mainly from construction of civil engineering works, and the building subsector, which includes housing and industrial base, grew by 7.4%. According to that data from the Unified Housing Registry (RUV), in 2023, 162,712 homes were registered, a 12.3% increase compared to 2022, and 131,048 homes were produced, the lowest level in record since 2013, and a 3.3% decline compared to the number of homes produced in 2022. Based on data from the Ministry of Agrarian, Territorial, and Urban Development, or SEDATU, in January and November of 2023, INFONAVIT granted 136,692 loans for the acquisition of new homes, a 4.9% increase over the same period of the previous year. These loans require an investment of MXN 87.4 billion, a 24.5% higher. The average size of home loans in the first 11 months of 2023 was MXN 640,000, year-over-year growth of 18.7%. FOVISSSTE therefore in part granted 15,020 loans for new homes between January and November of 2023, a 21.3% decline from the same period of 2022, and the investment in this totaled MXN 11.9 billion, 14% lower. The average size of a loan granted in the first 11 months of 2023 was MXN 790,000, a 9.2% advance over the same period of the year before. As for commercial bank home financing, between January and November of 2023, 90,419 mortgages were granted for the acquisition of new and existing homes, a 16.4% reduction compared to the same period of last year, and the investment in this totaled MXN 199.1 billion, 16% lower. The average size of a loan granted in the first 11 months of 2023 was MXN 2.2 million, a 12.4% growth compared to the same period of the previous year. In 2023, 49.4% of our revenues came from homes financed by INFONAVIT, 13.6% from FOVISSSTE, and the remaining 37% from commercial banks and homes purchased without financing. For 2024, according to its base case scenario, INFONAVIT expects to grant 299,579 loans to buyers of new and existing homes, with a total investment of MXN 200 million. INFONAVIT therefore in part expects to place 38,225 mortgage loans in 2024 with an investment of MXN 43.7 million. With regard to commercial bank mortgage lending, there is no official plan for 2024, but we expect it to remain at the solid levels we have been seeing in recent years. Shopping centers. In the fourth quarter of 2023, revenues totaled MXN 113.7 million, 10.3% growth over the same period of last year, while net operating income was MXN 83.3 million, 15.7% higher. In 2023, revenues totaled MXN 430.6 million, a 7.8% increase over 2022, while net operating income was MXN 302.5 million, a 10.5% increase. These results respond to shopping centers that are 100% owned by ARA and are consolidated into our financial statements: Centro San Miguel, Plaza Centella, Centro San Buenaventura, Plaza Calais, Uni, and Mini Shopping Centers, 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 Center is 205,318 sqm. The occupancy rate as of December 31st, 2023, remained at 95%, a very competitive level. Recognitions for Consorcio Ara in the fourth quarter of 2023. I am very proud to announce the number of recognitions we received during the last quarter of 2023. EDGE Champion. International Finance Corporation, a private arm of the World Bank, recognized as an EDGE Champion, citing its commitment to the design and construction of projects that make efficient use of our planet's resources and for having built more than 200,000 sqm of EDGE-certified space. Great Place to Work. We received this certification for the seventh year in a row because we strive to make our employees feel part of an organization that encourages teamwork, trust, leadership, commitment, respect, and camaraderie. 2022 National Housing Prize. We received this award in the category of Dignified Housing Promotion for our Colinas de San José 2 development in Mexico State, completed project with 424 apartments. The recognition came from SEDATU in coordination with the National Housing Organization, ONAVIS, INFONAVIT, CONAVI, and SHF, as well as the National Sustainable Land Institute. Conclusions. While we faced some daunting challenges at the close of 2023, we expect 2024 to be a good year for ARA, and we are working tirelessly to ensure that it is. We have 4 developments in operation, geographic diversification that will allow us to mitigate the impact, while the Acapulco market recovers, and we have a portfolio to serve all 3 market segments: affordable entry-level, middle-income, and residential. Likewise, we have a large and high-quality land reserve, experienced financial strength, and undoubtedly our greatest asset: a great team of dedicated employees. It is to them that we owe thanks for having recently celebrated 47 years of ARA's existence. We made significant investment in our development last year, so in 2024, we will focus closely on generating the positive free cash flow for the firm we have always been known for. This should allow us to resume our dividend payment policy. The prospects for Mexico's housing industry are good, both in the short and long term. We have a demographic bonus that will drive attractive housing demand. Inflation was low from its levels in 2021 and 2022. Interest rates have been steady for almost a year, and they are expected to decline in 2024. In 2023, housing production reached record lows, which represents a great opportunity for us. In addition, we have solid institutions providing mortgage financing such as INFONAVIT, FOVISSSTE, and commercial banks. For another year, I once again want to express my thanks to our investors for their trust, our clients for their preference, our suppliers for their support, and all the employees of ARA for their dedication. 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 line, please enter *8 on your telephone keypad. In case your question has been answered, you may cancel it by pressing *8 again. If you have been listening to the webcast and would like to ask a question, you may type your question using the chat area 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 received from the webcast. The first question is from the audio line from Juan Macedo from GBM. Please go ahead. Hi, I'm Juan Macedo. I'm asking my question. Alicia, you increased the land bank in Baja California? It was one of the firms in New City related to the land firm in Tijuana that you were previously looking to acquire. Yes. That's correct. Juan, we bought well, last year, in the fourth quarter, we bought part of this land that you mentioned is located in Tijuana. It's a very good market for Ara with a very high demand. As you know, north, it's a boom in terms of housing, so we need to be there. So we bought around MXN 80 million in the fourth quarter, and in this quarter, we are going to pay around MXN 120 million. So this project would serve to the affordable entry-level segment. So we could do it because it was very difficult to find a good piece of land in Tijuana. Yeah, that makes sense. So you paid MXN 20 billion pesos, MXN 200 million for the land plot, and did you give us the detail on how much meter for the land plot? The square meters? Y eah, yeah, the square meters, please. The total amount is around 500,000 sqm. All right. Thank you for the question. Thank you very much for your question. Our next question is from Ms. Isabela Salazar from GBM. Please go ahead. Hi, thank you for taking my question. We understand that you didn't propose a dividend given the cash flow gain this quarter. However, as cash flows begin to grow in 2024, how much could we expect the buyback program to be in this coming quarter? Well, for the second half—sorry, for the first half of the year, it wouldn't be significant, but as we resume our free cash flow generation, we expect to have it in a strong way in the second half of the year. Yes, I'm going to reactivate my buyback program around MXN 50 million in the second half. Thank you. Thank you, Isabela. Thank you very much for your question. Our next question is from Mr. Andrés Aguirre from GBM. Please go ahead. My question. Hello? Yes, Andrés. Thank you for taking my question. I was wondering if you could share more light on the economics post-year gain, and how are the sales dynamics looking? Okay. Well, I will tell you that now we are selling around 40% of the houses that we sold in 2023. So gradually, we expect to recover, maybe not the same level that we had hurricane, but for the second half of the year, we expect it to be 80% in terms of the units that we sold in hurricane. For this year, it wouldn't be significant in terms of revenues. I mean, in the full year, we expect these revenues to represent around 5% of our revenues. And as we mentioned, last year represented 18% in the first nine months of 2023, but in the full year, these revenues represented around 15%. For this year, it would represent just 5%. And in fact, it's doing well better than we expected after the hurricane. So as we mentioned, our projects are in excellent condition, so. Thank you very much. Thank you, Andrés. Thank you very much for your question. Our next question is from Mr. Felipe Garrán from BTG Pactual. Please go ahead. Hey, good morning, Alicia Pimentel. Thanks for taking my question. My question is on the industrial real estate development that you guys are considering. Is that still on the table? What's the discussion there? Thank you. Well, we don't have yet the definite, but we are looking into two of our own land banks. One in Toluca, and the other one is in Reynosa. So of course, we will have to change the zoning, yes, but I think both projects could be very good operation. Also, we are not experts in the industrial area. We are looking to have a partner in order to develop these projects that Mr. Ahumada mentioned. So we are looking for a partner. Great. Thank you. And a quick oh. No, no, no. Go ahead, Felipe. Sorry. Yeah, just a quick follow-up on that. Is there any specific timeline that we could foresee for this, or is it still too early? Probably towards the end of the year. Thank you very much. Very clear. Thank you, Felipe. Thank you. Thank you very much for your question. We have finished with the conference call questions and will now continue with the webcast questions. If you have been listening to the webcast and would like to ask a question, you may type your question in the chat located on the right-hand side of your screen and click Submit. Okay. Well, thank you. We have one question from Carlos Alcaraz. Hi, Carlos. He says, "Hello. Thank you very much for the call and congratulations for the results. I have two questions. The first one is related to what is your revenue expectation for 2024, and the second one regarding the permit delays. How many units were affected by this delay? Thank you very much." Well, regarding your first question, obviously, we expect to grow for this year. We are not providing formal guidance, but obviously, we expect to grow. The positive thing is that we already have the projects in operation, so it doesn't depend on new projects. So at this moment, there are no red lines. We are working very hard to grow for this year. And the second one, well, I don't have the exact amount in terms of units, but in amount, in millions, these two projects represented a little more than MXN 200 million in the fourth quarter. And the positive news is that we already have the permit, so we'll be buying the houses in this third quarter. And the second is from Benjamín Casco from Signum Research. He says, "Thank you very much for the call. I have two questions today. First, considering that the net profits for the period were positive, would the management consider the possibility of paying dividends in the second half of the year, assuming it generates the necessary cash flow? And the second is, what is your perspective for the distribution of income by type of development in 2024? Well, regarding your first question, no, in this year, we are not going to pay dividends. One requirement is the positive generation of free cash flow for the full year. So we expect to resume our dividend policy in 2025. And regarding your second question, well, the mix of revenues could be very similar to the revenue mix that we already have in the past year, or I would say that in the last two or three years. In general terms, I would tell you that 30% could be affordable entry-level segment, other 30% from middle income, and other 30% from residential. Well, maybe talking about middle income, it could be 35%. And the rest from other real projects that are land sales or revenues from our shopping mall division. There are no more questions in the webcast, so Leslie, please, we can end the call. And thank you very much again for your interest in the Consorcio Ara SAB. That was the last question. This concludes the questions and answers session for today.