Fibra Shop ($FSHOP13)

Good morning, everyone. My name is [ Luis Chavera, ] Financial Analyst at Fibra Shop. Welcome to our First Quarter 2026 Earnings Call Conference. Please be advised that this call is being recorded. By remaining online, you consent to this recording. As with previous quarters, we are conducting this call via Zoom to share our results presentation on screen. Our earnings report was released yesterday. If you haven't received a copy, please e-mail us at [email protected]. Before we begin, I must remind you that forward-looking statements made today do not account for future economic shifts, industry fluctuation or unforeseen company performance. These statements are subject to risks and uncertainties. All figures are prepared in accordance with IFRS and stated in nominal Mexican pesos, unless otherwise noted. Joining us today from Mexico City are Gabriel Ramirez, CFO; Irvin Garcia, Controller; Mary Carmen Hernandez, ESG and Investor Relations. I will now turn the call over to Mary Carmen.

Thank you, [Luis]. Good morning, everyone. On behalf of our CEO, Salvador Cayon, I would like to share the following message for the first quarter 2026. The beginning of 2026 confirms the strength and consistency in execution of our strategy. During the first quarter, Fibra Shop recorded a year-over-year revenue growth of 7.3% with solid profitability levels and stable operating margins, a reflection of our cost discipline and the maturation of our portfolio. These results are not isolated events. They are the consequence of a comprehensive strategy that we have been implementing since 2023, focused on sustained value generation. Today, we see clear progress, a more robust portfolio, a strengthened capital structure and continuous improvement in the market's perception of our certificates. Now we are proud to announce that Moody's has assigned Fibra Shop a AA- rating with a stable outlook. This is more than just the rating. It's a powerful validation of our financial resilience. Moody's recognized our strong payment capacity and healthy balance sheet. This upgrade confirms that our Centros de Vida are producing the predictable, high-quality cash flows that world-class credit agencies demand. Key drivers for this rating include high occupancy above 92%, predictable cash flow, average lease maturity for nearly 5 years, tenant quality, a high credit profile tenant base, diversification, a resident geographic footprint, liquidity supported by healthy cash levels and commitment and committed credit lines. Growth and value creation. In 2023, Fibra Shop conducted an analysis to implement a growth and value creation strategy for the company. This study was based on the central premise. The certificate price did not reflect the operating strength or the intrinsic value of the portfolio, trading at a significant discount and limited by factors such as low liquidity, leverage and market perception. At that time, the certificate price fluctuated around MXN 6, reflecting these structural challenges. Since then, Fibra Shop has consistently executed a comprehensive strategy and focused on value generation, the results which are beginning to materialize in the performance of the certificate, which today trades above MXN 11.60, implying a significant and sustained appreciation. To ensure long-term value, our strategy is driven by 6 fundamental pillars: One, capital recycling. We divested noncore mature assets for a total of MXN 1 billion. The use of proceeds oriented toward maximizing value, 75% allocated to debt reduction, 10% certificate buybacks, 15% to investment in asset reconversion under Centros de Vida concept. A strategic growth. A Strategic assets were incorporated to strengthen NOI generation and positioning reinforcing the current portfolio under Centros de Vida concept. This directly addresses one of the key pillars identified in 2023 analysis, increasing scale to reduce the small cap discounts and improved efficiency in the certificate valuation. Three, a strengthening on the capital structure. During 2025, 85% of the total debt was refinanced, achieving extension of the maturity profile, moving of the amortization calendar, improvement in financial conditions, reduction of refinancing risk, return to the market with the issuance of a bond of MXN 1,950. This action directly addresses one of the main challenges highlighted in 2023 analysis, which was the impact of leverage and risk perception of the cost of capital. Four, Centros de Vida. The reconversion of assets towards the Centros de Vida model has allowed for increased foot traffic, increased deal time and strengthened tenant revenues, generation of operational resilience, improved portfolio diversification. Consequently, Fibra Shop has evolved from a traditional retail model to one focused on experience differentiation and long-term value generation, which is beginning to become a market standard. Five, greater visibility, a strengthening ESG strategy and certainty in returns. We have strengthened communication with the market through various channels, including quarterly financial reports, relevant events fugitive materials such as to payer with the goal of providing greater transparency and visibility regarding the Fibra's performance. In parallel, we have consolidated our ESG strategy, integrating environmental, social and corporate governance criteria into operations and decisions-making, reinforcing our positioning as Fibra committed to sustainability. In the fourth quarter of 2025, Fibra Shop announced its dividend distribution guidance, reaffirming its commitment to generation of recurring cash flows and value creation for investors. This initiative allows for providing greater visibility and expected returns, reducing market uncertainty regarding distributions and strengthening the position of the certificate as an attractive instruments. Six, a strengthening and validation of the credit profile. Fibra Shop has shown a positive and consistent evolution in its credit profile, reflecting a disciplined execution of its financial and operating strategy. Currently, Fibra Shop has holds 2 ratings in the AA range granted by 2 prestigious agencies. Overall, this evolution reduces the financial cost of our debt, strengthens market confidence in Fibra Shop's financial solidity, improves risk perception and access to financing, contributes to more efficient valuation of the certificate. This progress directly addresses one of the challenges identified in 2023 analysis, the importance of strengthening the credit rating as key lever to reduce the cost of capital and unlock market value. Market reaction. Our strategy is being recognized by the market as mid of April 2026, our certificates were trading at 11.67, up from 10.4 at year-end. Looking at the bigger picture, this represents a massive total return of 122% since our 2023 lows. Centros de Vida. Starting with this report, a new section on the progress to the conversion of Centros de Vida will be presented. Our Centros de Vida are unique and innovative spaces designed to be an extension of the city, where our visitors can participate in cultural, sporting and artistic activities, among others. Through this strategy, we seek to increase the company's profitability, drive business growth and strengthen the ESG strategy, promote creational spaces for communities, attract more visitors. As you can see, we are transforming 4 of our properties into Centros de Vida, Puerto Paraíso/ [ Diia Paraiso], Plaza Cibeles , Galerías Mall Sonora and Plaza La Luciérnaga, which together represents 19.3% of our total GLA. Our operational metrics remain highly resilient. Total occupancy close to 94%. Stabilized occupancy stands at 96%. Starting with revenues. During the first quarter, consolidated revenues reached MXN 670 million, representing a 7% increase compared with the first quarter 2025. Moving to NOI. First quarter NOI totaled MXN 505 million, increasing 7% compared to the same quarter last year with a 75% NOI margin. Regarding first quarter EBITDA reached MXN 486 million, up 7% versus the same quarter of last year with a 72.7% margin. In terms of adjusted net income during the quarter, we recorded MXN 187 million equivalent to MXN 29.48 per certificate, up by 25% versus the same quarter of 2025. Finally, FFO for the first quarter 2026 reached MXN 194 million, up by almost 25% if we compare to the same quarter of 2025. Distributions. Regarding our quarterly distribution, on April 23, the Technical Committee approved a dividend of MXN 125 million. This is a 25% increase compared to the first quarter 2025. The [indiscernible] represents a return of capital payable no later than May 14. This distribution underscores our commitment to disciplined capital allocation and returning value to our investors. As you can see, the distribution is in line with the guidance published in the previous quarter, approaching the high end of the range. Now we open the floor for questions. You may submit your questions in either English or Spanish. [Foreign Language].