Fideicomiso Irrevocable F/2061 FHipo ($FHIPO14)

Good morning. My name is Anna, and I will be your conference operator. [Operator Instructions] This is FHipo's First Quarter 2026 Conference Call. There will be a question-and-answer session after the speaker's opening remarks, and instructions will be given at that time. FHipo released its earnings report on Wednesday, April 29, after market close. If you did not receive the report, please contact FHipo's IR department directly, and they will e-mail it to you. Please note that this call is for investors and analysts only. Questions from the media will not be taken nor should the call be reported on. Any forward-looking statements made during this conference call are based on information that is currently available. Please refer to the disclaimer in the earnings release for guidance on this matter. We are joined by Daniel Braatz, Chief Executive Officer; Ignacio Gutiérrez, Chief Financial Officer; and Jesús Gómez, Chief Operating Officer. I would now like to turn the call over to Daniel Braatz. Daniel, please go ahead.

Thank you. Good morning, everyone, and thank you for joining us today. I will talk to you about our first quarter results and how FHipo continues to execute its strategic priorities. During the quarter, we remain focused on maintaining our balance sheet strong and proactively managing risk while seeking to embrace the quality and resilience of our portfolio. As of the first quarter of 2026, cumulative distributions have reached approximately MXN 7.5 billion, reflecting our commitment to deliver profitability to our investors. In the first Q, we maintained a capitalization ratio of 61.6%, equivalent to a debt-to-equity ratio of 0.6x considering on-balance financing. Our financial margin stood at 55.4% of interest income during the quarter, highlighting our profitability and operating discipline. During the quarter, we executed 2 interest rate coverage SWAPs with HSBC and Santander for a notional of MXN 1 billion each and maturities of 3 and 2 years, respectively. With this hedging strategy, FHipo seeks to manage the financial risk associated with volatility in interest rates, thereby optimizing its debt structure. Finally, on January 20, the full amortization of the CDVITOT 14U securitization was completed as part of the cleanup call process established in the issuance documents. This securitization was collateralized by INFONAVIT mortgages denominated in VSM. This transaction was the last CDVITOT issuance in which FHipo participated as holder of a subordinated tranche certificate. Moving on to Slide 5. We highlight our consistent track record of creating value to our investors through stable distributions. In the past quarter, we reported an estimated quarterly distribution of MXN 0.35 or MXN 0.35 per CBFI subject to our prudent distribution policy, which results in an annualized yield per CBFI of 10.7%. As previously mentioned, this performance reflects our ability to deliver sustainable results and generate attractive returns to our investors. On Slide 6. As of the first quarter, our on-balance debt-to-equity ratio stood at 0.6x, which on a consolidated basis results in 1.2x. Our capital structure provides flexibility and resilience while providing additional capacity to support attractive investment opportunities. On Slide 7, we highlight our continued emphasis on higher yielding assets. Our portfolio has a strong asset quality with an average loan-to-value of 77% at origination, while the estimated current loan-to-value stands at 57%, supporting the overall strength and resilience of the portfolio. On Slide 8. As of the first Q, our nonperforming loan ratio calculated over the accumulated balances of the total portfolio at origination stood at 2.85%, reflecting the portfolio's historical performance against original loan balances. And finally, on Slide 9, we highlight FHipo's ongoing commitment to sustainability and ESG principles as a fundamental component of our strategy. Our objective is to create long-term value beyond financial returns. To date, we have originated more than 100,000 loans with 56% of the borrowers in the consolidated portfolio being workers with income below 7x the minimum wage in Mexico. Women represent approximately 31% of the total on-balance portfolio and 36% within our Digital Mortgage Platform's portfolio. Additionally, 46% of our workforce are women, underscoring our commitment to inclusion and gender equality. Upon governance, our Nomination, Audit and Practices committees are fully independent and more than half of our Technical committee members are independent as well, reinforcing strong oversight and transparency. On the environmental front, approximately 58% of INFONAVIT borrowers have benefited from the Green Mortgage Program, supporting energy efficient improvements in their homes. And additionally, our new corporate offices that are located in a building LEED Gold certification. Overall, these efforts reflect FHipo's commitment to creating value in a responsible and sustainable manners. Now I will turn the call over to our CFO, Ignacio Gutiérrez, who will walk you through our leverage strategy.

Thank you, Daniel, and good morning, everyone. I will begin with our funding structure and leverage strategy. As mentioned before, FHipo has further reinforced its balance sheet by successfully executing a disciplined deleveraging strategy. As of the first quarter of 2026, our on-balance leverage ratio stood at 0.6x and our total consolidated debt-to-equity ratio, including both on- and off-balance financing stood at 1.3x, down from 2x in 2021, reflecting a cumulative reduction of 0.7x over the last 5 years. The financial discipline has improved our flexibility and reinforced our capacity to navigate changing market environments. Our diversified funding structure allows us to preserve flexibility to allocate capital efficiently and focus on long-term value creation. On Slide 12, as you can see, our funding sources remain well diversified across securitizations, bank facilities and capital market instruments, secured at competitive rates and spread. Over 90% of our outstanding financings have legal maturities exceeding 5 years, providing long-term funding stability and mitigating refinancing risk. Within this capital structure, FHipo maintained additional leverage capacity of approximately MXN 7.3 billion or 1.9x debt-to-equity. Now I'll turn the call over to Jesús Gómez, our COO, who will walk you through the portfolio breakdown before I disclose the financial results for the quarter.

Thank you, Ignacio. Good morning, everyone. Thank you for joining us today. Let's move to Slide 14 to take a closer look at the portfolio breakdown as of the end of the first quarter 2026. FHipo's consolidated portfolio comprised 42,000 loans as of March 31, 2026, with an outstanding balance of MXN 16 billion. An average loan-to-value at origination of 77% and an average payment-to-income ratio of 24%. At the end of the quarter, 92% of the portfolio is performing. The portfolio is well diversified across several origination programs, including Infonavit Más Crédito, Infonavit Total, FOVISSSTE and the Digital Mortgage Platforms portfolio. This mix is aligned with our strategy of prioritizing assets with attractive risk-adjusted returns supporting overall long-term profitability. Moving on to Slide 15. FHipo's portfolio remains geographically diversified across all 32 Mexican states. Nuevo León, Estado de México and Jalisco remain the largest contributors, together accounting for approximately 29% of the total portfolio balance. In terms of our origination programs, here is the breakdown of our portfolio. First, the Infonavit Más Crédito program accounts for 52% of our total portfolio equivalent to MXN 8.3 billion. The Digital Mortgage Platforms accounts for 18.7% equivalent to MXN 3 billion. The Infonavit Total Pesos program represented 14% of the total portfolio equivalent to MXN 2.3 billion. FOVISSSTE's portfolio accounted for 12.8% of the total portfolio equivalent to MXN 2.1 billion. And finally, the Infonavit Total VSM portfolio represented 2.4% of the total portfolio equivalent to MXN 388 million. This breakdown is explained by our strategy of maintaining a diversified portfolio that is aligned with market demand. I will now return the call back to our CFO, Ignacio Gutiérrez, to discuss FHipo's financial results for the first quarter of 2026.

Thank you, Jesús. Continuing on Slide 17, our nonperforming loan ratio stood at 7.96% at the end of the quarter. We maintain a solid allowance for loan losses with an expected loss coverage of 1.31x and an NPL coverage of 0.53x. Moving to Slide 19, we will go through our income statement for the quarter. The interest income for the first quarter of 2026 reached MXN 303.2 million, representing a 2.4% decrease compared to the first quarter of 2025, mainly due to the natural amortization of the portfolio. Interest expenses for the quarter totaled MXN 135 million, a 9% decrease compared to the MXN 148.7 million reported in the first quarter of 2025, primarily as a result of declining interest rates over the past 12 months. Our financial margin increased to MXN 167.9 million compared to the MXN 161 million in the first quarter of 2025. This translates into a financial margin of 55.4% of total interest income for the quarter. The allowance for loan losses recorded for the first quarter of 2026 was MXN 44 million. The valuation of receivable benefits from securitization transactions recorded a loss of MXN 2.1 million in fair value during this quarter. And the total expenses incurred during the first quarter of 2026, which includes the portfolio servicing and operational services as well as all other expenses directly related to the company's ordinary course of business amounted MXN 89 million for the quarter, representing an 11% decrease when compared to the first quarter of 2025. As a result, the net profit for the quarter amounted to MXN 26.6 million. The estimated distribution for the first quarter of 2026, as mentioned before, subject to the current distribution policy is of MXN 0.356 per CBFI, which considering the average price per CBFI as of the first quarter of 2026 and the date of that in the first quarter of 2026, results in an annualized yield of 10.7%. With this, I will now hand the call back to our CEO, Daniel Braatz, for some closing remarks before we move to the Q&A session.

Thank you, Ignacio. FHipo's business model continues to demonstrate resilience and adaptability. We remain focused on profitability, reinforcing our capital structure and maintaining a prudent approach to risk management. Looking ahead into 2026, we will assess opportunities that align with our strategic priorities. The actions we have implemented to date have strengthened our position, allowing us to operate effectively across different market environments. Our objective remains unchanged: to deliver stable and sustainable return to holders, supported by the disciplined strategy that has characterized FHipo since inception. We will continue to advance our ESG initiatives and drive long-term value creation for all stakeholders, including the communities we serve. Thank you for your continued trust. I will now hand the call back to the operator to open the Q&A session.

[Operator Instructions] Our first question comes from the line of Martín Lara. [Operator Instructions]

This is Martín Lara from Miranda. How do you see your financial margin under this low-rate environment? Do you think we can expect an additional expansion in this indicator in the future? That's the first question. And the second question is that this quarter your distribution will be much higher than your net income. Do you think we can expect this kind of distributions going forward?

Thank you for your questions, Martín. Yes, I mean, in terms of the interest rate levels, as you mentioned, we do expect that at some point, we can see an increase in our financial margin when we compare the asset yield that we are carrying versus what is the financial cost of our debt facilities. As you know, we try to cover as much as we can potentially according to certain coverage policies that we have implemented. 70% of our total debt should be fixed rate. We do that through the coverage SWAPs that we secure with different banks. As we mentioned, this quarter, we did a couple of those strategies at the beginning of the year with Santander and HSBC that allowed us to secure the current level of rates for longer term. And in your second question, yes, the distribution will be approximately MXN 0.35. That is higher than the net income. And as you know, we try to keep constant the potential return and give asset that stock is perceived in the market to our investors. And you should expect that we continue to do so as long as we have availability of cash. And there is no other use of cash flow for strategic alternatives such as acquisition of either originators and/or portfolios.

Okay. And when do you expect to conclude the acquisition of the financial institution that you announced some quarters ago?

We're working on that. It depends on certain authorizations and regulation. We expect that happens this year.

Thank you. We have not received any further questions at this point. So that concludes our question-and-answer session. Thank you. I would now like to hand the call back over to Daniel Braatz for some closing remarks.

Thank you all for joining us today. Please don't hesitate to reach out to us if you have any more questions or concerns. We appreciate your interest in the company and look forward to speaking to you soon.

That concludes today's call. You may now disconnect.