JHSF Participações S.A. (JHSF3) Earnings Call Transcript & Summary

Good morning, everyone, to the JHSF Participacoes Q2 2025 Earnings Call. We have Mr. Martins, our CEO; Breno Vicente, Financial CFO; and Mara Boaventura Dias from Investor Relations Department. This is being recorded and being simultaneously broadcasted through Zoom and web YouTube, and you can check it at ri.jhsf.com.br. [Operator Instructions] Before we move on, it's important to clarify that any statements that may be made during this video conference regarding the company's business prospects, projections and operational financial targets constitute beliefs and assumptions of our Board of Directors as well as information available today. Forward-looking statements are not guarantees of performance. They refer to future events and therefore, depends on circumstances. The differences in legislation and socioeconomic factors may lead to changes. Now Mr. Augusto will continue.

Thank you, Mara. Good afternoon, everyone. It's a pleasure to welcome you all for this -- for this earnings call for the second quarter of 2025 for JHSF. It's an honor to share with you this important results with many highlights made by a team that works very hard. Our team who knows high-income customers well and have over -- have been overcoming its results. So before anything else, I'd like to thank our collaborators, and I would like to thank you very dearly to our customers, stakeholders. Without them, we wouldn't be here. So moving on and starting with our results. This was marked by records and many highlights, continue to strengthen its unique high-end ecosystem and reports. It's the largest high-end ecosystem in Latin America. This is a very important quarter. It's important to look our capital structure, we have relevant advances, records in our average capital cost and advance in the -- our average debt period. This quarter brings important results, not only from our business and operations standpoint in the recurring incorporation aspects and also the capital structure of the company. Now moving on to our results, starting with the recurring income area. As I told you before, this was marked by relevant highlights for our company, a record in the adjusted EBITDA in recurring income in our cluster of recurring income and another quarter that make us reach of 2/3 -- nearly 2/3 of the company's EBITDA coming from recurring income and 1/3 coming from incorporation. I would like to highlight again that it's an important quarter because incorporation has had a very positive quarter. So the 2 arms of the company have evolved very strongly. Moving to the figures. Gross revenue grew 25%, reaching BRL 337 million in the second quarter of '25. Gross profit increased 27%, reaching BRL 169 million. Adjusted EBITDA grew 21% with BRL 151 million and net profit increased 152%, reaching BRL 198 million in the second quarter of '25, showing the strong results we have achieved. As important as the result of this recurring income result is of JHSF is the stage we have reached. A little over 20 years ago, we decided to advance moving from a business that were 100% focused on real estate and corporation, and then we started to diversify with recurring income. We started with the malls business, which is still strong, the main partner of the results. And through this time, we created 4 main business: residences and clubs, airport, hospitality and gastronomy and malls. With the advances of these 3 additional businesses, we reached this quarter with a very important quality in these results, advancing in these 4 businesses. They account for this diversification of the company. We reached an advanced stage of diversification of risks, 2/3 in recurring income and 1/3 in corporation. And inside the recurring income business, this diversification of risks with important growth in the 4 business with very good positive and relevant growth abilities, as I will show it to you. So with our recurring income and incorporation, we had a very strong quarter, showing that this -- the growth trajectory is still strong with a consistency and long-term vision. The growth revenue grew 25%, showing the strength of incorporation plus recurring income. Gross profit grew 24%, reaching BRL 309 million. Adjusted EBITDA grew 22%, reaching BRL 247 million and net profit grew 46%, reaching BRL 246 million. Now starting with one of our main highlights, malls. The main area here in this business shows the relevance of this business. Once again, we grew 27%. If the other business reached such good result made this or were helped by the malls. It has growth -- has grown for 7 quarters -- consecutive quarters in this segment. Cidade Jardim grew 27% and all the sales performance on average grew 17% and rent SSR grew 13%. It's a leader in rentals and the highest occupancy rate in the market, almost 0% vacancy rate. Next, -- next week, we will launch our Cidade Jardim Health Center, a 2,000 square meter GLA area dedicated to health and wellness. This will make our ecosystem even more complete with this new approach. And again, Cidade Jardim and our malls, more and more, they have been consolidating as a sales area with several businesses, and they can shop and they can do whatever they need. So these are very complete projects. And now Cidade Jardim will be even more complete with Cidade Jardim Health Center at CJM. So we'll have the main professionals in this area and also gastronomy inside. This mall will be even more complete. There's also a new mix, new flagship stores at Cidade Jardim. Cidade Jardim is the mall that puts together the highest number of flagships, international flagships, and we'll have new ones in our mall with Chanel with 1,200 square meter stores. This is the largest one in Latin America. We'll have all types of Chanel businesses there. Only 5 other stores in the world have such large stores, which shows the strength and the exclusivity of Cidade Jardim Mall. We also have the Dior, Prada and Tiffany & Co with their flagships. They are already present at CJM, but they will double their store sizes. Rolex will transform its current store into its Latin American flagship. We will open the first French restaurant Lulu with us. We also have construction works of the Boa Vista Village Town Center. We focus on high-income customers in the -- the construction works are in its final stage with inauguration set for the second semester of 2025 with over 100 operations involving national brands, the main international brands, gastronomy options. It will be an open floor exclusive mall at the center, there will be a catholic church. It will be right like a true village with gardens and organic vegetable gardens around the stores. This will be a very special place. And so we will open this Boa Vista Village Town Center in the second half of '25. We also are -- we have been continuing building shops for Faria Lima. With Faria Lima and Leopoldo Couto, it's the inauguration will be set for -- is set for 2027. So the sales performance has been growing steadily, 17%, Cidade Jardim has grown 27%. That is gaining performance, gain in sales for our tenants, for our store holders, our store owners, showing the quality of our assets. Moving on with the numbers. We have here a growth of 17% in sales -- tenant sales reaching BRL 1.1 billion in CJM, 27% sales growth. Sales indicators I mean -- sorry, occupancy rate of almost 100%, 99.2% in Q2 '25. Sale indicators and rent indicators are performing in the area of 2 digits, best in the market. This reflects in the adjusted EBITDA growing 14%, reaching BRL 97 million in Q2 '25 and BRL 53 million in the adjusted EBITDA for the second quarter of '25. So this leading performance has turning into an important growth and more and more a destination for these international brands and the main gastronomy attractions that have chosen our operation in malls, more and more to be their operations because of this unique ecosystem that our assets present. Now moving on to our next business in recurring income, hospitality and gastronomy with the Fasano, we have an important international expansion with already contracted portfolio of new 5 hotels located in Miami -- Fasano, Miami in the main area in Lincoln Road, showing again the strength and the positioning of our assets. We have Fasano London also in advanced stage, Cascais, Fasano and recently, Fasano Sardinia in August 5, there was a soft opening in the JHSF Fasano Sardinia with a gastronomy operation already on, and there will be a beach club with beach service and a spa, gym and a tennis court already in operation in Sardinia. This will be our new destination in Europe, a very complete broad project that will bring real estate development with 30 village that will be a Fasano Hotel, Sardinia signed by Weinfeld that takes care of all the architectural aspects of this project with 18 holes, golf course 3 other gastronomy operations, retail operation within the mall concept, just like we have done in the Boa Vista Village, an operation that is also set there. I mean, this is the replication of the same ecosystem, the successful JHSF ecosystem that can bring to our customers, a unique ecosystem that attracts more and more international customers and meet their demands as well. I'd like to highlight the growth in average daily rate, 16% growth with an average cover growing in 8% more and more showing the work of our team in searching for growth. Our new Boa Vista Surf Lodge hotel is still working very well, recently chosen by Louis Vuitton for an exhibition of in Brazil of its iconic pieces and Louis Vuitton chose our hotel to make this to host this exhibition, which shows once again how important our brand has become and so how our customers can connect to their high-end customers. And last week, as I mentioned before, we had the soft opening inauguration at Fasano Al Mare Beach Club, the first phase of JHSF Fasano Sardinia. So the figures show a very important growth in RevPAR with 10% growth, BRL 1.988 in the second quarter of '25, gastronomy growing 8% with BRL 348 million in Q2 '25. So we keep on in this more and more efficient search for the fair price for our products. This once again reflects in results gain gross revenue grew 21% with BRL 127 million in Q2 '25 and adjusted EBITDA growing 15%, reaching BRL 23 million in Q2 '25. So our operations are strong and are ready for the expansion of these new operations, which will feed more and more this business as well as our mall business, showing that this recurring income branch will keep on working steadily in the long and medium and long term. Now moving on to airport. It's another highlight of Q2 '25. This quarter recorded its highest operation and financial results since its opening with adjusted EBITDA reaching nearly BRL 45 million. and operational indicators continue to improve, flights incoming and outbound flights growing 64% and leaders field grew 54%. This is the first airport international trips and the second largest in those domestic movements or domestic flights. So we also had the fourth edition of the Catarina Aviation Show, which recorded a new attendance high and a movement record of with 54% above the 2024 edition. This is the main Latin America event in the segment, already renowned as an important international event, which also help us to put together in our airport this high-income ecosystem. helped by the Catarina Aviation Show, which we strengthened the image of our airport. We will -- in the third quarter of 2025, we will open 4 new hangars, 2 of them in the third quarter and the other 2 in the fourth quarter. There will be new aircrafts to be in our hangars. Possibly, this expansion will not be enough. So maybe after this, we deliver these 4 new hangars, we will hopefully announce a new expansion to accommodate more growth of this airport, which I told you, this has had its highest operational and financial results since its opening. So we can expect that. As I told you, there's a relevant growth, over 7,000 flights or movements in an increase of 64% in Q2 '25. And also leaders field grew 54% and gross revenue grew 50%, BRL 70 million in Q2 '25. We adjusted EBITDA growing 59%, BRL 45 million in Q2 '25. So these new advances will have better margin because the additional CapEx necessary for this adjustment is marginal. So this business will keep on in the medium and long term growing with these new expansions. When we look at our fourth business of recurring income area, JHSF residence and clubs, the total portfolio is spread across 123,352 square meters with stabilized NOI of BRL 127 million, including rental units and clubs. The success of JHSF residences, they have a contracted occupancy rate of 90%. It's -- they are decorated areas with concert and services, many of them with hotel services. This is why this occupancy rate reached 90%. And also in clubs, we have completed the surfing pool with Italo Ferreira and Kelly Slater visiting. It's the pool, the surfing pool at Sao Paulo Surf Club. Many more surfers are willing to visit us and our clients and members have enjoyed the swimming club with the surfing pool. And the opening of the club as a whole is scheduled for the second semester of 2025 in September possibly. And we also have Boa Vista Village, Porto Seguro school opening in 2027 and the Einstein Clinic opening between 2025 and 2026. So the school, Porto Seguro has this new school with 3 languages. So this will make our ecosystem, this complex even more complete, even better with expansion and opening set for 2027. And also the Einstein Clinic with the health area. And this will make this real estate development and hotel and malls development even more complete and even better or better set to welcome the needs of our customers. These 2 other activities in school and in the form of Porto Seguro School and the Einstein Clinic for 2025 or 2026 will make this portfolio even better. This growth reflects in this in our results. Growth revenue grew 104%, reaching BRL 40 million in Q2 '25 and adjusted EBITDA grew 101%, reaching BRL 30 million in Q2 '25. The highlight is the 90% contracted rate of HSF residences. So now moving on to JHSF Capital. We reached BRL 2.7 billion in AUM, 12 funds under management with 7 M&A advisory services, robust pipelines with fundraises in Brazil and abroad connected to the high-income core with -- so we have new fundings to be found in Brazil and abroad. Capital has the goal of having mono thematic funds for each of our strategies. We advanced with this robust pipeline and we can have news in the medium and long term in assertiveness in the fundraise strategy, advising JHSF in its expansion project. As I said in the beginning, it's a special quarter for us with highlights and record numbers. So after talking about recurring income, let's talk about real estate developments. Contracted gross sales reached BRL 290 million, surpassing sales from the second quarter of '24 and the first quarter of '25. Our unique and exclusive projects launched selectively in the company's own land bank with the highest margins in the market. And then we reached a quarter growing 29% if compared to the first quarter of '25, BRL 294 million in contracted sales in the second quarter of '25 with important margins with growth revenue, reaching BRL 172 million in this quarter, EBITDA reaching BRL 107 million, growing 16%. And the reflection of this growth in gross margin of 76% in adjusted EBITDA margin of 65% is a special control on our investments in launch. So we can have a perfect quality in our real estate developments. And this limited production schedule, our pipeline has also to do with this exclusive chain supply that we work with, so we can have exclusive residences in exclusive areas. The residences count on important [indiscernible] and high-end products, high-end furniture, so clients can find fully refurbished apartments and residences. So it's a form of production that is based on craftsmanship. It's based on strong creatorship and strong execution, perfect execution, making us focus more and more on launching quality and control products. More and more, this reflects into the quality of our products. These products are unique. And also, we have dealt with the scarcity of products that leads to evaluation of our sales and also our clients, clients who buy our products. This strategy has shown to be a successful strategy, reflecting in our margins and this sales growth again, so we can have a limited production of our projects. This is a strategy that has been followed by us, and we will keep on doing that based on projects that are more and more exclusive and based on unique quality, a quality linked to the name of JHSF. Now Breno will talk a little bit more about our capital structure, an important advance in this quarter marked by important highlights in health in making our company even more robust.

Now talking about our liability management that we started over a year ago. We reached a record fundraise reaching almost BRL 3 billion in capital markets in this year with an average debt spread in its lowest historical level with duration extension. So this shows that the market trust the company and the management and the ability to deliver on results and promises. When we compare the reduction or increase of duration and increase of capital, we see 2 movements, which are not obvious. We managed to reduce capital in 70 bps and an elegation of debt in duration and average cost in 1 year, we managed to perform 2 movements, which are not totally related. We also have today have operated with a shareholders' equity 0.37 with the covenants at a rate of 0.60x. And we have worked closely to check with net debt, adjusted LTM EBITDA in 1.78x, and BRL 5.6 billion in net debt, I mean, 1.569 net debt, accounts receivable of 1.586. So as Augusto mentioned before, there is an increasing in margin with adjusted EBITDA moving on we have a leverage of adjusted EBITDA of 1.68x in gross debt of BRL 5.586 million and a convertible debt of BRL 121 million. So we leave a year ago with a cash coverage of 1 year, and then we could extend this coverage for 4 years and 2 months, showing the balanced capital structure. We moved from a coverage of 1 year for a coverage of almost 4.5 years. And there was an almost fivefold increase in cash coverage. We've been managing to elongate this period and getting ready for short-term movements and the balance of spreadsheet of the company, working to make the company even more solid in terms of balance sheet. In the next slide, everyone talks about results for the Q2 of '25. This shows a general wrap-up. We divided in 2 blocks, the 2 highlights, the recurring income and consolidated numbers so as Augusto mentioned in the previous slide. So these are -- these are our consolidated figures, and thank you very much for your attention.

Now moving on to our Q&A session. I would like to thank you all for your participation. And I'd like to once again, I would like to thank our JHSF team, a team that is composed of people who are -- who have passion about what they do, who have helped JHSF move on, obsessed with quality and excellence of our results. I would like to thank our team, our team that delivered results. I would like to thank our clients, our shareholders. And once again, let me tell you, this is an important quarter marked by this advance in recurring income and also real estate movements, real estate advancements and shows that this shows that this high-end high-income customers business to deliver a high quality with high quality of life projects and services to our clients. And this is the strategy that the company will keep on following moving ahead so we can grow more and more reaching further developments and further results.

Thank you, Augusto and Breno. Now we're moving on to our Q&A session. Let me ask [indiscernible] from Santander.

I have 2 questions, and they are connected to the airport business. You talked about growing demand. You're going to deliver new hangars in the next few months. I would like to understand the total capacity for future expansion. And if you can see any type of bottleneck in terms of tax rate, if we have any type of expansion in mind in terms of tax rate or anything else besides hangars? And the second question has to do with the quarter that you had a gain in the sales of an aircraft. And what's your current fleet? I would like to know. Can we expect new sales moving ahead?

Thank you for your questions, Matt. So regarding our expansion, we do this expansion from the 12th to the 16th hangar. We still have a lot of area. We still have a large area for a physical expansion due to -- in the area, it's not a bottleneck. So we have enough area. But -- as in anything that we do, if you consider all of our projects, even our mega projects, we do it in stages. For each project, we look at the growth, we organize our capital structure, so we can grow carefully, taking into account the middle and long term for the company results. This is our movement nowadays. As I mentioned in my presentation, probably the opening of these 4 new hangars will demand further expansions. We can -- expansion Taxiways. Taxiways is -- has a capacity to operate that can be expanded. We can do it, we can expand it. It still has -- still has room to grow. but it doesn't concern us because there is a large area surrounding the airport for us to grow. We have Sao Paulo Catarina air taxi service. It's a synergic service. It provides our customers and clients with an ease of service. In this, we have 2 aircraft, 1 helicopter -- I mean, 1 helicopter and 1 aircraft, 1 global aircraft and 1 Augusta aircraft. So we can provide quality services to our customers who are willing to use the services for their displacements, the trips.

Now next question comes from Juan from XP.

I have 2 questions on my side. I would like to understand a little bit about your perspective in terms of cash generation in the next year, next 1.5 years. We have this trend of expanding in the recurring income and cash more aligned with what we see in the P&L. But in the real estate segment, there are some projects that will be developed, Surf Club, Santa Helena potentially to be added. So how do you see a balance between cash generation? What can be done moving forward -- how are you looking at this scenario at this window, this 12 to 18 months window? The second question has more to do with the capital structure. You made this debt elongation movement. It was an important movement. Now that you have a more normalized cycle, I would like to understand how you are looking at the leverage level. What's your idea? Would you like to maintain this level, this current level? How are you going to work with this cash flow leverage? Are you going to decrease leverage or decrease the level of CapEx or increase dividends? How are you looking at this capital structure for the long run.

Can I start with the second question? Maybe it will be easier, so you can exemplify. Thank you for your question. So how are we viewing this advances, this progress? The company has investing robustly. Last year, we invested BRL 0.5 billion in this -- in the expansion of this project that we have consistently delivered in the past few months. Again, there is this year with important investments, this -- all of these expansions I mentioned in malls, the Faria Lima development in hospitality and gastronomy. We have the Boa Vista surf lodge hotel. We have the airport expansion, clubs, the new clubs and the new residences. So all of these businesses, they have been important investments. And the investments have very good margins. They reflect the quality of the operations and also they reflect the quality of the product we have developed. This strategy will keep on being followed by us. We must have another year of important investments to deliver all of these operations. And regarding business generation coming from these operations, they have a much higher predictability if -- than what we have with this recurring income block that we have today. This is part of the investment. Now talking about leverage, due to the flow investments we have made and the business expansion, we believe the company has a leverage platform that is comfortable. We look at capital recycling and capital structure to provide us with more strength in this structure. All of the advances of almost BRL 3 billion, these issuances -- and never are unparalleled diversifications, elongating duration and decreasing costs. 95% comes of the capital markets today, shows the penetration of the company in this capital market area, this important market. So we reached a composition, a mix of almost 5 years in cash in due dates in duration, the lowest cost of the company's debt or indebtedness, 0.98, the largest or the longest duration to date, and we'll keep on doing that, focusing on having this comfort of a good leverage for the company businesses to provide comfort in the next few quarters in the 2 blocks of JHSF. It's not only the recurring income because real estate has also been strong with important margin, has grown in sales, and this will keep on following the same trajectory to maintain prices in our stocks, a good look at costs and paying attention at fair prices of our operations to continue delivering these results in the 2 blocks of the companies, the real estate block and the recurring income block.

Just to complement, we see -- I mean, the capital structure is divided between recurring income and real estate. These new real estate projects like [indiscernible] Cidade Jardim and Santa Helena, we take the sales of the projects. We perform presales. I'll give you a public -- the space was not officially launched. We have sold over BRL 1 billion. We will launch it officially in the second semester, but we have done -- we have worked with -- we have worked with the construction based on the presales. So we separate these 2 blocks to analyze our company financially. So Cidade Jardim has sold almost 2 towers out of the 4 towers. Most of the receivables comes from reserves of Cidade Jardim. So the sales and receivables help us to manage the construction site. We do not have so many projects, so we can handle this inside, in-house. So this is why we manage this with sales to the customer. In recurring income, which is -- which has this recurrence rate, if you analyze the EBITDA of the second quarter, we reached almost BRL 600 million and 2/3 or almost half of the way to finalize its investment, this investment round with the delivery of Faria Lima Shopping. And in 2028, when it's fully running, we will have a cash generation that will be much higher than the one that we have currently. And depending on the market, depending on the situation, but obviously, the -- we will have more cash. We'll have more EBITDA that is a plot in Boa Vista and Cidade Jardim. And Boa Vista and Cidade Jardim can have more residents. So we can have more CapEx, lower the leverage or increase the profit sharing. Breno will be very -- we will be paying close attention to this capital structure. Maybe it's a -- and a possibility to balance even more the profile of our debt or the capital structure. So we will finalize these investments, these projects and then run this analysis. The level of leverage should not grow because there will be a growing cash generation, right?

Yes, Mara, I agree with you. That is a growing cash generation based on what we have delivered. And when you look at the figures ahead for the company, we do see this level of leverage being manageable according to the level we have currently and in '28. In '29, that will have more cash generation, also helping the company's leverage. So the general idea here is that we pay attention to capital markets opportunities in debt in equity to access these opportunities whenever possible, whenever it's interesting for the company. So in general, this is it in general lines. Is this clear?

Yes, thank you very much.

Next question comes from Bruno from BBI.

Thank you for this space and this availability. My question has to do with something that Augusto mentioned in his presentation about offer control. When you talk about real estate investments that you need to work more on the offerings it makes a lot of sense, especially when we think about maximizing the value of assets because they are exclusive assets and exclusive products, it makes sense. But my question is the following. I would like you to talk a bit more, Augusto, how you're looking at demand on the demand side. This decrease in real estate or this change in real estate is motivated by an environment that has -- that is more doubtful in this really high income. I don't know if uncertain is the right word here, but we have been coming from an uncertain environment because during the pandemic time, we have lost some of the parameters, let's say, in terms of the base offer. So not offer, I mean, base demand. So if I would like you to talk about demand and projects in Sao Paulo city and other projects in other cities around Sao Paulo. And we also have seen relevant growth in recurring income lines. And do you see any opportunities to have some type of disinvestment in this 12 months or 18-month window. In 2026, there might be a decrease in this investment. Would you -- would it be through real estate? Or do you have space from JHSF capital fund?

Thank you very much, Bruno, for your question. So first of all, talking about this limited production, our limited production is based on the production capacity. As I mentioned before in my presentation, more and more, we have delivered ready-to-use products with a level of detail and a level of perfection of the process of the level of craftsmanship of this production that is very high. So we deliver products as we didn't deliver before or years ago in this industry. More and more, we have delivered our projects in a much more perfected fashion in terms of quality and level of detail. And to make this production possible, the supply chain the providers and dealers we work with, they have limited production as well. So we can work more and more with sophisticated high-end and fancy projects and products. Because of that, we know that based on this limited production, this brings some scarcity of our product in terms of sales. If you look at it, let me give you an example, a recent example that proves this idea. Fasano Residence, right to Fasano, Cidade Jardim. When we invest in half of this residence of -- half of this building for rentals, we quickly saw the value being changed. There was a valuation of real estate there in our stocks and also in our customers' stock. The clients of ours who have residences or real estate there. So as the project we develop our unique projects, they have in terms of architecture, landscaping [indiscernible]. So it's a unique way of delivering projects. This demand has been seen more and more. And the lack of capacity or the lack of provision and the lack of being able to have such a high scale, this reflects in the valuation in a higher price in our units in our projects in real estate, too. So this set of items reflect in our margins. And this is the line we want to follow. This is the trajectory you want to follow at HSF company. So we will count on our architecture and engineering teams, in-house teams so we can more and more overcome this standard. The Cidade Jardim with its 4 towers will be the most iconic towers, building towers in the city of Sao Paulo with -- based on very fancy and sophisticated details. This might be the first ever in Brazil with such a high quality. So this requires a lot of detail, paying attention to details. And this is what we keep on doing, looking for meeting the high standards of our clients and their needs. and also giving more and more value to our real estate units. So this is more about our trajectory than based on demand. The macroeconomic scenario will always be challenging in this -- in terms of this sector, of this industry. But quarter after quarter, we have achieved good results based on the set of strategies we have been implementing in this industry, in this sector with better and better margins with control and consistent growth of our activities. And among the Sao Paulo projects, we -- and also outside projects, there is a balanced demand. So at Reserva, we have advanced very well. We have 2 important launch for the second semester, Fazenda Santa Helena in states, a new concept, a concept of farm next to Boa Vista farm. There are very good presales. In Fazenda Santa Helena, we'll take to the region of Braganza, the JHSF quality with all the amenities, with all the details we provide. There is a big noise in the city of Braganza. Differently from when we created Fazenda, Boa Vista in the past, we created a destination there. But now Santa Helena is raising among possible customers and no more stocks fully developed. And it's already a place that is a high income destination, and we will take this concept there. We'll take there this unique JHSF concept. And there is a very good perception on our part regarding the performance of Sao Paulo projects and also Braganza and other cities performance.

And what about these investments? I don't know if you still have time.

I'm sorry, Bruno. Just -- can you remind me of your question, please, of -- in our portfolio?

True.

I'm sorry. In terms of the investments in our portfolio. In the noncore assets of our company, we have already done this in our shopping malls, they have very good operations in Salvador and in Manaus. The Bela Vista shop in Ponta Negra, they're done. Our assets are fully focused on high-income sector in the this strategy in this product, right now, we do not see any specific goal of disinvesting any assets. However, we been looking more and more at HSF capital funds capitals. We want these funds to develop this strategy at -- at some point in the future, we have a full portfolio in our capital to bring our investors the option. They can buy our shares or they can take part in our projects in the strategic -- in the specific strategy they are interesting.

Augusto and Breno, we have received some other questions. Due to time constraints, some of them have already been answered. But we still have a question here. Many people who live in Sao Paulo, they want to know about the Usina São Paulo project and Fazenda Santa Helena projects.

Well, Usina São Paulo project is connected to Cidade Jardim complex. And -- we have the residence towers, the corporate towers, the shopping Cidade Jardim Mall in Cidade Sao Paulo, is connected to Cidade Jardim complex to Usina Sao Paulo. We have delivered the first stage of it, which was Casa Fasano right at the margin of the river. It's operational -- has been operational since the end of last year and has already been under operation. We have inaugurated -- have opened the second phase. And we are here right now. This is -- our head office is located, and we invite you all to visit our office hub here. And we also have a media storage room here. And the third stage is the Usina [indiscernible] Sao Paulo with 2 new areas, people who go through the marginal through the road here. You can see the projects -- the undergoing projects, the whole retrofitting of the Usina with the phase of JHSF. So this last stage is ongoing. It's on top of [indiscernible] plant. It will be fully retrofitted and connected to Cidade Jardim complex.

Well, thank you very much. And now back to you for your closing remarks.

It was a pleasure to welcome you all. Thank you so much for your participation. [Statements in English on this transcript were spoken by an interpreter present on the live call.]