Colonial SFL, Socimi S. A. (COL) Earnings Call Transcript & Summary

Welcome to the Inmobiliaria Colonial First Half 2022 Conference Call. The management read you through the presentation, which will be followed by a Q&A session. [Operator Instructions] I'm now pleased to introduce Mr. Pere Vinolas, CEO of Inmobiliaria Colonial.

Thank you. Good afternoon. I'm very pleased to have the opportunity again to present this time the results for the first half of the year. As usual, Carmina Ganyet, Corporate Managing Director; and Carlos Krohmer, Chief Corporate Development Officer, will share the presentation with me. Well, I'll introduce the highlights, and then we'll go into the details. First of all, I would like to say from a strategy point of view that during the first half of this year, what Colonial has been doing this to emphasize this strategic approach in order to get the full benefit of polarization. We insist in our model of being the company with the highest focus in super prime assets with best summers in terms of ERT. In order to obtain a number of benefits, the first of them is pricing power, so being able to pass through the full indication and obtain maximum rental prices. The second is to half the most resilient kind of assets across cycle with the strongest occupancy profile to secure cash flow profile with limited risk and to be able to have strong profitable growth on the back of this polarization. And this strategy has been developed consistently during the first half of this year. And we clearly believe that because of that, we are able to share with you today a set of results, which I believe that are excellent, as you will probably agree after you see the numbers. I'm on Page 7 of the presentation, and I will start with the basics. The basics are the group net profit for the first half of the year is now EUR 355 million, which is more than double of what it was June last year, 120% more. This result is obviously coming from 2 value drivers from the ordinary course of business from our cash flows. And second, from the reviewed appraisal of our assets. But let's say, this is coming from both. If we just look at the recurring net profit, it's also increasing significantly. It's now EUR 76 million for the first half of the year, which is 35% more than a year before. And consistently, the recurring earnings per share also grew by 27%, and now it's EUR 14.3 per share. The top line, the gross rental income is growing 9% to EUR 170 million. As we will see now more in detail, this gross rental income is growing, both because of the successful delivery of projects from our pipeline. But most of all, because of like-for-like growth in our existing assets, a 6%, which I believe is outstanding. It's not only outstanding in absolute terms but also in [ lots terms ]. And so far, compared with everything we know from our peers. It's again number one in the market. And finally, the EBITDA is also growing 10%, now being EUR 134 million. Why is this delivery of a strong profit growth? Well, this is an excellent support from operations from different value drivers from all of them at the same time. The first one obviously is letting volume. The letting volume for this half of the year exceeds 100,000 square meters. As you will remember from previous presentations, our standard level of speed is to do 100,000 for the whole year. So we do 100,000 for 6 months, that means a very, very high level of activity, a very high level of letting volume. In fact, 75% more than the year before, a year then as you may remember, was already outstanding 2021. This letting volume is very important because it's happening not only for our existing assets, which are already in operation, but also it's substantial if we talk about the pre-letting on new projects. The pre-letting on the projects of our pipeline was 51,000 square meters this first half of the year. And the renovation program on some of our selected assets also contributed with 15,000. This, I believe, is extremely important because that means that what we are sharing with you today has to do not only with the past performance of the company, but more importantly, with the future performance of the company because we have already now agreed on future rents for projects that have not been delivered yet. That means that our top line and our EBITDA and our EPS should grow substantially and this is already secured. The consequence of this highlighting volume for both our existing assets and for new projects has been a high degree of occupancy. The occupancy for the group is 96%. And in a place like Paris, we're fully occupied. It's 99.7%, which is a number that we have not seen in the past. So the letting volume is one of the main drivers I've explained, they’re the good delivery in our numbers. But also, I would like to highlight the rents. It's not only that we agree on new contracts. It's also at what level of rents. The ERV growth is 5% for the 6 months. That means that rental growth remains relevant for us. If instead of using the ERB number, we use the release spread, we're talking about 8%. And as a consequence of this solid operational level, these solid consequences on our recording net profit, on our EPS and all our activity as a consequence, of course, there is also a very positive impact in our GAV, in our NTA. Our gross asset value now goes above EUR 13 billion, EUR 13.3 billion. which means that we've grown an 8% like-for-like, year-on-year or 4% like-for-like for 6 months. Again, this is very satisfactory in absolute terms. And again, it's very well above what we've seen with our peers. So far, we believe showing the benefits of polarization, the benefits of our particular positioning in prime assets. Obviously, this has a consequence in the NTA that growth again and growth to a new level of EUR 12.49 per share. That is a 4% growth for the last 6 months. That is a 10% growth year-on-year. That's particularly significant, if you remember that we paid as many other companies, a dividend during the second quarter of this year. If we would include the dividend in the computation, that would mean a total shareholder return of 12% year-on-year, 6% for the last 6 months. All of this is within the framework of a healthy company with an LTV below 37% and with liquidity lines of EUR 2.6 billion. So all in all, I think that excellent results in line with the previous quarters, but confirming this trend that remains the same. And I think that's excellent news so far. So having gone through this introduction, I will now ask Carmina to step in to be more specific about our financial performance.

Okay, thanks. Thanks, Pere. In this section, as usual, we will cover the main financial metrics. Let me first in Page 9, to emphasize the strong growth year-on-year in all metrics. So the net group profit increases 120%, which results of EUR 355 million net profit in the first semester. The recurring net profit increases year-on-year 35% and EPS increases 27%. So very solid growth in all the financial metrics. On the proposal value and then will come in more details as Serra mentioned, increased 7%. We have today a portfolio value of EUR 13.3 billion, representing an increase on the last semester of 4% like-for-like. On NTA, consequently, in the last 6 months, our NPA increases 4%, consequently providing a total shareholder return, including our DPS of 6%. But what are the main value drivers behind this solid growth? The first one is the gross rental income. The gross rental income increased 13.2% without including the disposal of non-strategic assets, including the disposal of non-strategic assets, our rental income increase is close to 10%. And this is basically thanks to the beauty of our strategy and of our portfolio with a very significant impact for Beta coming from Beta. So the core portfolio increased $8 million. 50% of this EUR 8 million comes from inflation, but the rental growth is above inflation. On top, we have a positive impact of the acquisitions, as you know, among the headquarters in Paris and Danone headquarters in Barcelona, and on top, we have a positive impact coming from our [ office ] strategy with a significant impact of 5.2%. All in all, this is a number of an increase and a growth of rental income of close to 10%. This is a strong growth of rental income. Basically, it supported of prioritization strategy. As you could see here, in all the markets where we are. So all of them, as you see, the like-for-like growth is positive with outstanding, Paris 6%, outstanding Barcelona 9%, and basically driven by price impact, as you can see here in the right-hand side of the slide. So this is a well-balanced impact between volume and price, but with a very significant impact in price in all the markets as well. So this is the consequence of the beauty of the prioritization of our strategy in our portfolio. The same happens in the net rental income. So we maintained efficiency. We maintain all the expenses invoiced to our tenants. The same happens with inflation with the 100% pass-through, and this provides the same solid numbers in terms of net rental income, growing 6% like-for-like and in absolute terms, 7%. As you know, we continue to deploy this strategy to fly to quality. This first semester, we have been selling 3 noncore assets, non-strategic assets. As you could see here, 2 of them in Madrid, one of them in Paris with 2 of them vacant. So these assets have been vacant. And the other in Madrid, Alcalá 506 with a tenant living in the 3 quarter of this year. So basically, this strategy is confirming, I would say, our activity in selling at a premium, these assets non-core, secondary assets, vacant assets has been sold at a premium of 11%. Another way to read it is the prudency of our appraisal made for third parties. As you know, we updated our valuation every 6 months. And one of the main impacts in our results, this month has been the updated of the appraisal. As you can see here, our appraisal is growing 7%, basically 4% like-for-like and 3%, thanks to the acquisition, thanks to the investments. In other markets, you could see and you could appreciate the growth of the appraisals made by third parties in 6 months and also in 12 months, 4% like-for-like in 6 months in all the markets and 8% in 12 months positive in all the markets where we are. Basically, the valuation assumes, of course, the impact of inflation assumes, of course, the yearly growth, as you could see behind the contracts, and then you will see in details what are behind this gross rental income in terms of letting activity and release spread. So the appraisal includes inflation, impact includes yearly growth, includes the yield remaining nearly flattish. And of course, the impact of the revaluation coming from the project pipeline that when we are able to pre-let and the project has been able to be completed, what it's being translated in the revaluation of the price. And all these activities, as Pere mentioned, it's supported by a solid capital structure. I am in Page 15 with a loan-to-value less than 37% with a very solid liquidity position of more than EUR 2.6 billion. We maintain our investment grade with a stable outlook. Considering, as you know, because we have released in previous results, 80% of our debt matures after 2025. So we have a very, I would say, predictable stable debt maturity profile for the future. And also, as you know, all 85% of our debt today is fully let. It's a fixed cost with a spot cost of 128%, considering the ECPs, as you know, exactly we are issuing without considering the ECP, the commercial papers, the spot cost would be 1.4%, 1.39% to be more specific with an average maturity debt of 5 years. As you know, because we have released previously, we maintain 1/3 of our debt that will expire in the future already preferred at a strike of 0.64% average swap starting forward after each one maturity date for the following 9 following years after its maturity. What does it mean that is the present position today at a mark-to-market of more than EUR 200 million, which represents $0.40 per share significant? You know that we took advantage of a very, I would say, interesting condition in the past to protect the company for what is happening today. And it provides, I would say, a very stable financing profile of the company with a long-term maturity debt, but moreover, with a very interesting cost of debt for the future. What is the P&L looks like? You have in Page 16. So growth rental income increases today, it's EUR 170 million incorporation to EUR 155 million from the previous year. The recurring EBITDA increased 10% with EUR 134 million in the first semester, then we have savings in the recurring financial results, thanks to the liability management and this hedging strategies that we did last year, which impacted positively in this first semester. Consequently, the recurring earnings is 76%, 35% more than the previous year. Below the recurring earnings, you could see the impact on the fair value assets. So the appraisal is impacting positively in our P&L in the first semester of more than EUR 300 million, EUR 350 million. So all in all, without in a profit to the group of EUR 355 million with an EPS, as I mentioned before, increasing 27% from the previous year with EUR 14.13 per share. Consequently, the strong EPS, the strong increase of our appraisal results in NTA increasing 12% year-on-year and 10% year-on-year and 12% in 6 months with a strong capital value operation coming from all France and Spain, coming from both markets. And including the overshare that has been over distributed the total shareholder return for this first semester has been 6% and year-on-year focus.

So we'll step now quickly through operations. I'm on Page 19. First, a quick look on the market, the segments where we are, the CBD and in particular, the high-quality product of the CBD. What you can see on Page 19, is that there is a clear scarcity of this type of product, just 0.3% or nothing in the Paris market and in Madrid and Barcelona around 2%. On the other hand, what is happening with the demand, the demand in the CBD of Paris has increased 40%. The rental demand in Madrid, it has doubled, a very significant pickup of demand out of this 236,000 square meters of take-up year-to-date, more than 70% this take-up that has been signed in high-quality assets. And Barcelona also continues with a strong take-up recovery, plus 32% year-on-year. So a strong rental market with a specific preference for high-quality grade A product facing a situation where there is almost no available product in the market to let it up. On the investment side, the investment market behaves very solid in the 3 cities where we are. Year-to-date, in Paris, there have been transaction in either France total commercial real estate of EUR 7 million. This is 30% more than the same period of the year before. Interestingly, close to 90% of this activity has been Q2. So Q2, so after starting of the [ war ] . The big majority of it has been in the city of Paris inside in the France in the city center. If we look at Spain, we have EUR 541 million of investment transactions in Madrid. This is more than 3 times the year before, and 61% is concentrating in our city center and our CBD. And also Barcelona quite good, EUR 64 million, with a quarter-on-quarter increase equal to Paris, second quarter stronger than first quarter. A big chunk of the deals in the new district, in the new city center district that is a technological district 22 [ ad ] . And here, the most prominent factors are internationally invested. We will then go to Colonial metrics on the Page 20, you see the typical overview that we always present. Pedrables gone already through the top highlights. I think here what is also interesting on this page is the maturity profile of what we signed until the first [ drug ] option is just 6 years. It's a quite long period. When we go more into the details on Page 21, you can see what we have done. 15,000 square meters, this is as Pere mentioned, 75% higher than the previous year and previous year, as Pere also mentioned, was the second highest letting activity year in the history of Colonial. And on this year, we have increased another 75%. This means that we have secured annualized trends of EUR 45 million. And why? Because the product that we have is a product that is most thought after. On Page 22, you see where the main contracts have been signed and also the maximum rents that have been signed in our portfolio, 914 Paris, 40 in Madrid and 28 Barcelona clearly setting the reference for prime, capturing the maximum market rep. All of this leads to an improvement in occupancy. Why? Because out of the 100,000 square meters, I'm on Page 23, close to 70,000 square meters, 64% are new lettings. New lettings means letting up space that is empty. This means that we have 100 basis points quarter-on-quarter increase in occupancy. And as Pedro mentioned, Paris fully let. So what is there left to be let up 4% on Page 24. What is it 4% about? We have 1.5% increase in to operation of the renovation program. We have some square meters in Cézanne. We have Ortega y Gasset, were already conversations for the square meters, and we have the Torre Marenostrum scheme in front of the beach of Barcelona. This is the renovation program. And then we have another remaining 2.5% of vacancy out of this 2.5%, 2.1% is CBD, 1.3% in CBD Madrid on [ recolor ] that is part of this vacant space, we have already pre-let and 0.8% in Barcelona. The remaining 0.5% is the secondary location, a little bit weaker that we almost have none left and that we have been selling in the recent past. If we look at the price performance a little bit more in detail on Page 25, I would like to highlight the second quarter column on the left-hand side on the ERV. So out of all of the contracts that we have signed, the blended ERV increase is plus 6% versus the market rent of the appraisal as of December. This is 200 basis points higher than the market rental increase in Q1 and is mainly driven by Madrid and Paris. On the release spread, Pere already mentioned, 8% cumulative year-to-date and across every single market.

Thank you. So I will start the final section, which is just some thoughts on the company going forward and on the drivers for future performance. Basically, I would like to emphasize different sources of future growth. The first is just an emphasis, I'm on Page 28 about the business model of Colonial. Basically, I think that the business model of Colonial pretends to be different based on 2 things. The first is our prime positioning, the real prime positioning that we believe we've gone through this before that for a number of reasons, it has been delivering, and it will deliver a differential growth. And the second source of value is that we are not only relying on market trends, even if they are adjusted for a particular positioning, we are always contributing to growth with our own internal sources that are not depending on the market, what we call the alpha value creation. And basically, in this page, what we wanted to summarize that again, for many years now, we delivered a shareholder return that is 12% for the last 12 months. And part of it, as you can see here in this the composition breakdown of our increase in NAV and NTA. Part of it is coming from a superior return coming from our prime visioning and part of it, almost the same amount, it's coming from the alpha that arises from the delivery of projects. So this business model, we believe that it's behaving in a different way and will provide with a differential source of value in the future. This time, as I said before, if you compare individual performances, I think that difference it's there. The second point I would like to mention is on Page 29 and very specifically on indexation. We understand that this is a concern widespread in the market. The question being, what should we think about inflation. First thing that is obvious, inflation is here and it's relevant in our home markets in Spain and France, but it's a little bit everywhere. So if we are able to pass through this inflation, this is a source of value, which is differential and very relevant. So the question for us would be to what extent are you able to pass through inflation? Well, today, it is the first time that we come with the detailed numbers about that because inflation is on elements, and it's the first time that it makes sense to come with some numbers. What can we see so far that was covered before, but I would like to emphasize is, we've gone through more than 50% of the contracts that were due, we are updated with inflation. Let's remember that we have all of our contracts linked to CPI. And all of these contracts that we view so far, which are more than half were, of course, reviewed in line with inflation. So we passed through 100% of inflation. And this meant already EUR 4 million for the first half. That means that we already know that what we've done already will mean more than EUR 8 million. But if we project this into the future, will be additional EUR 50 million of rent that we did not have before. So basically, the message is as of today, we are fully hedged against inflation, and we are completely passing to this and for sure, that's what are the reasons why our NTA has gone up because the cash flows have already gone up more than expected initially. And we expect this to be a major source, not on the protection of value creation in the future. On the right side of this page, it's also common not only about indexation, but more generally speaking, about rental growth, but as you can see, remains very, very healthy. So source of value full passing through of inflation through indexation, something that we understand that the market today is not considering. The third source of value is the projects we are working. Page 30 provides a little bit of data on something that is already known, which is beyond. Let's skip to Page 31. Basically, what we are saying is our project pipeline is delivered should add EUR 81 million to our top line and that's a substantial amount. And today, we can only see EUR 6 million out of this EUR 81 million in our P&L. That's what the chart says on Page 31. Basically, what we are saying is we are going to provide at the very least $52 million because we've secured already this today with everything we have signed. Part of it is in our passing GRI, part of it will come additionally. By the way, important comment, everything we secured in this first half of the year or confirms a yield on cost of 6% or above. The details of these 6 months are the ones you see in Page 32. So we already knew about Naturgy and Goldman Sachs, but we've done 86% of Velázquez. We've done Marceau, we’ve done Biome. We've done a relevant share of Plaza Europa, and we are in line with Louvre-St-Honoré. The second part of this story is about the renovation program on existing assets. Here, the number is, if we deliver everything that we have to deliver, this will add EUR 47 million to our top line. But more importantly, after the work that has been done so far, we have already secured say EUR 5 million out of this EUR 47 million. Let's remember that the number was just EUR 17 million at the end of last year that we had passing GRI. So today, we already know that a source of future growth of cash flow has been secured because of the successful letting activity, pre-letting activity in this first half. Page 24 is just a reminder of where the number comes from Washington Plaza 100% let, Grenelle 100% let, Cézanne St Honoré 90% left, Charles de Gaulle 100% let, Cedro 79%, Ortega y Gasset 57% let. That means simply a cash flow profile that offers substantial secured growth. In Page 35, another way of looking at these numbers is as follows. We have, at the end of 2021, a passing of EUR 344 million. Basically, what do we know today is that our passenger with everything we've done so far is already EUR 385 million, which is not to be seen in our existing P&L for obvious reasons, but that would be the number with everything we know on our existing assets. If on top of that, we add what we have already secured or has or has high visibility, then we'll talk about an additional EUR 48 million, which would put us well above EUR 430 million, almost EUR 440 million. And finally, we are working on other things and other renovation programs that are not yet secured, example, Méndez Álvaro which all of them delivered should lead us to a maximum potential above EUR 500 million. So in the end, this company is to deliver a substantial increase in cash flow in coming years, not only because of the specific projects and programs that have already been delivered. It's also to deliver a substantial increase in cash flows because of the superior business model that so far, it's proving more resilience and more up cycle than other business models. And that means that we will have a very positive expectation in terms of our operations for the future. As a conclusion, on Page 37, this present presentation today had 2 parts. One is to highlight what has been achieved so far. Again, a very solid return on NTA, on GAV, on EPS, the numbers are self-explanatory. And what I would like to highlight the differential about these numbers, which we believe it's linked to our business model. So that's, let's say, looking back into the outcome of this first half of the year. The second part of what we presented today was in the direction of showing that Colonial is rather well positioned to play the cycle. Basically, we are sitting on assets who offer a lot of pricing power are proving folding decision pass-through and maximum rental prices. Also, if we forget about what the market for a moment, our projects and renovations are going on track and we have secured a substantial share of our future cash flow already. That's in the end of our views. And of course, as a final comment, as of today in terms of outlook and guidance, we reconfirm the performance of our positioning in Prime CBD, which is outperforming the market because of its benefits of polarization. And second, we reconfirm that our outlook for the EPS at the end of the year between EUR 0.28 and EUR 0.29 per share. So thank you very much. And if there's any questions, we are fully available. Thank you.

[Operator Instructions] The first question comes from Veronique Meertens from Kempen.

First, looking at the outlook of EUR 0.28, EUR 0.29, isn't it very conservative if you're already above EUR 0.14 for this half year? And then maybe secondly, already the results of SSL revealed that the net initial yield dropped from 2.2%. From my understanding, the large spot between the top of net initial yield was more technicality. But does that also mean that we can see that yield kick up again and go back to the sort of like 2.5% that we saw before?

Yes. I'm not sure I understood the second question, but talking about the first one, well, maybe I may agree that remain on the EUR 0.28 or EUR 0.29 EPS guidance, it's, let's say, prudent if I don't want to use another name as of today because the dynamics are very good. But let's say, let's say, we remain on the prudent side. That's why we didn't release the figure. But I agree that based on the performance that we showed so far, there's room to improve this. The second question, I will pass to Carlos. You understood the question. So maybe you can answer.

I think I understood. You've looked at the net initial yield, and it has gone a little bit down, but this is a consequence of the mix of the assets you should in order to get a true on valuation, you should more look at the top net initially. What does it mean that we have now new assets in operation, specifically French assets. And when these assets are in operation, as specifically in France, but also in Spain, you have a void period, you have a period where you have no cash flow, you have this void period. And therefore, because of the mix because we have these new entries into operation, we have now this temporary EPRA initial yield that goes on but from a top-up perspective. So once the void period has stopped or has finished, the cash flow is high. And when you look at this figure, that is better in terms of a like-for-like comparison that topped up net initial yield, actually, it has increased 100 basis points. But in terms of valuation, yields, as Carmina explained, have remained flat. So this is just a very technical consequence of the mix of the assets.

Okay. That's very clear. And maybe as a follow-up question then, looking at incentives. Obviously, there's always quite some data on Paris, but what are you seeing in Barcelona and Madrid, coming in as incentive currently?

As we outlined in the CBD and the segment where we are, the supply is scarce. And the demand is strong and is looking for this product. And more robust, Spain has never been a market, especially in the city center of incentives. So in our portfolio, we are not seeing any change on incentives with regard to a normalized period. So we are seeing there no change and almost no incentives, our portfolio and specifically the Spanish market in the CBD is a market where incentives do not play a major role.

[Operator Instructions] The next question comes from Alvaro Soriano from BNP Paribas.

Just quick question on your hedge policy. It seems that you have like EUR 0.40 profit on your mark-to-market. How does it work? I mean if you unwind that swap, you would get like EUR 200 million in your P&L. So then you would be exposed to interest rates, if not wrong. I'm just trying to understand if that is value for shareholders or not.

Yes. Well, today, the mark-to-market valuation, it's around to the equity because it's a full hedge, I would say derivative. If tomorrow, we would like to sell all this position, yes, it would have a positive impact on the P&L of EUR 200 million advertise, of course, yes. So what happens in reality that this position is to protect. It was closed on time to protect the future interest rate exposure, as we did also in the past, and this is a permanent strategy that we use to do in a permanent basis, and the is to protect the [ anti-theft cash flow ] or digital cost of debt but this is a value. but if the rates would remain as they are today, this EUR 200 million would be [ periodic ] and impacted in the P&L at the moment that it is going to be executed for covering the future debt.

Go ahead, please.

No, I was just to emphasize that if we were to sell these swaps, we would have EUR 200 million of cash. And then we would remain a company that has, let's say, our bonds for the next 5 years at one point something in terms of interest rate and no problems of any kind of problems during the next 5 years. But this hedge was beyond this horizon. And yes, your approach was right. This is a value and the mark-to-market capture this value, and that is included in the triple NAV, but not in the NTA.

Okay. And a quick follow-up. A few companies are providing guidance on indexation. You have done that on top line, of course. Do you have like a sensitivity on how much your cost and also your cost of debt eventually can increase in 2023?

Well, in 2023 overall, it's hedges so we have the debt that mature in the appendix of the presentation. You have maturities that have been the debt that matured this year, which, by the way, yesterday, we announced a call for the ones that expire in November, which is already mature and well, it provides some efficiency in terms of cost. Next year, in 2023, it's EUR 200 million. In 2024, less than 200 million. So for the following year, the estimated cost in Page 49 of the pending will up here at 1.5, 2022, 1.8, 2023, 1.9, 2024.

Okay. And in terms of administrative expenses?

No, it's already included.

The next question comes from Markus Kulessa from Bank of America.

Just coming back on the net initial yields on Paris, which assets are explaining the 2.2 net yield versus the 3% topped up?

Basically, as I said, these are entries into operations. We have had entries into operations of the renovation program and on the project pipeline, we can organize for you a separate call if you want to go more into detail, but it's basically this.

It's several assets, right. Okay. Then I wanted to know what is exactly the indexation impact is your like-for-like [ rent ] growth?

We have a total like-for-like rental increase of EUR 8 million. year-on-year. Approximately half of it is indexation. Around EUR 4 million, but that annualized are much more because they have been several months of first half, not all of this 4 million have been 6 months. So this is why we guide also that all of the things that we are doing will provide and what we have done already significant additional cash flows, especially in the next year but also this year. But as of today, EUR 4 million out of the EUR 8 million.

[Operator Instructions] There are no further questions. Dear speakers, back to you.

Okay. So thank you. It's been a pleasure to share with you these results, we believe that are very good. We hope we will be able to deliver a similar kind of results in the near future. So have a good holiday. Those of you who haven't had it yet. And thank you to everyone. Good evening.