Parque Arauco S.A. (PARAUCO) Earnings Call Transcript & Summary

Good morning, and thank you for taking the time to connect to the Parque Arauco Fourth Quarter 2024 Earnings Call. I'm Lauren Brown, Head of Investor Relations, and I am joined by Francisco Moyano, CFO; and Eduardo Perez, CEO of Parque Arauco. I would like to mention a few things before we get started. [Operator Instructions] Please note that this call is being recorded, and the recording will be used for internal purposes. To start off today's conversation, I'm going to pass the call over to Francisco.

Thank you, Lauren, and good morning everyone. I would like to start with the goals of this year, 2024. This year has been a tremendous year for Parque Arauco with several milestones in each of our 4 strategic pillars. First, in our growth pillar, we announced the agreement to acquire Open Plaza Kennedy, which is the shopping center that is right crossing the street in Parque Arauco Kennedy. With this acquisition, we will be adding 54,000 square meters of retail space to our most important asset of our portfolio, incorporation that is happening at the same time that we will be opening new retailer space for 12,000 square meters to the same asset with the expansion that is currently under construction. With all Parque Arauco Kennedy will be transformed to 185,000 square meters asset of high-level retail spaces with the most attractive food and entertainment areas. In the same pillar and among several projects, we inaugurated a new asset in Peru, specifically in La Molina, a district of the city of Lima. The asset has 16,000 square meters of open-air retail space and has been very successful in its first period of operations, reaching 77% occupancy level after just 1 month of the opening. Besides these important projects and transactions in order to continue the track of optimizing the use of our capital and being consistent with our strategy of selling minority interest of mature assets to financial partners. We advanced with the sale of a minority interest of our premium outlet portfolio in Chile to the pension funds administrated by AFP Habitat. This transaction helps us to prepare our balance sheet for the important transaction that we are planning for the coming future, allowing us to maintain our net debt to EBITDA in the range within 5x to 6x. For us, growth has to be achieved with responsibility, assigning the highest importance to maintain a conservative financial strategy at all times. Now regarding the profitability pillar, we are closing a remarkable year with high growth in all key measures. Sales of our tenants are growing 16.7%, showing a sound scenario for retail. At the same time, our revenues increased 19.8% and the EBITDA, an important 21%, with growth in all 3 countries, coming from our current base and also from the incorporation of new assets and renovated spaces. The occupancy is today at its highest level, reaching 96.2% with several of our most relevant assets at levels above 99%. This outstanding performance is showing the strength of our portfolio in Chile, Peru and Colombia. Also, I would like to highlight the issuance of new bonds in Chile and Peru, following $153 million with lower spreads as a result of the confidence that the financial market has in Parque Arauco, given the high stability and predictability of its cash flows. In the client experience pillar, we are consolidating some of the initiatives that we started some years ago, deepening our understanding of what adds value to our tenants and to our final customers. We highlight how Arauco+ is strengthening its position as a platform to communicate with our final customers and initiatives among the omnichannel environment with Arauco Pick Up & Delivery and Dark Stores that are deployed in our malls. Finally, regarding the sustainability pillar, Parque Arauco has today responsible goals for reducing its carbon footprint aligned with the science-based target initiatives, the most prestigious standard in the area. Besides that, I would like to highlight the recognitions that we had in several categories under institutional investors, achieving best Board of Directors, best CEO and CFO for a small cap company and the positive results, maintaining our AA rating under MSCI and a global percentile of 97% in the Dow Jones Sustainability Index. With that, I would like to continue to review the financial results in more detail. So passing to Page 7. I would like to continue with the tenant sales. As I said, tenant sales are growing this year, 16.7%, with growth in Chile of 10.5%, Peru 17.9% and Colombia, 36.4%. Those high growth without exchange rate effects in Peru would be 4.9%, and Colombia, 19.3%. The growth in sales is also correlated with the sound ratio that we are seeing in same area sales for the fourth quarter of 2024, with positive levels for Chile, Peru and Colombia. We can see that the ratio of 12% for Chile, 7.8% for Peru and 8% of Colombia, are very positive for the scenario of retail that we're seeing in those countries. With those growth in sales, we are also seeing good occupancy costs that are stable with Chile decreasing from 10.7% to 10.2%. The positive scenario in Chile is correlated with higher tourism that we are seeing in Parque Arauco Kennedy and the outlets, something that we also are reviewing in our case study in these earnings of this quarter. In the next page, we can review the revenues, which are increasing this year 19.8%. The growth by country is 10.7% for Chile, 19% for Peru and 50% for Colombia. Without the exchange rate effect, Peru is growing 6.2% and Colombia 30%, a growth in Colombia that is also pushed by the incorporation of Titan and Fabricato that were incorporated for the -- to our portfolio at the end of 2023. These positive results is part of the virtuous cycle that is coming from strong assets that also are having very high occupancies that then translate in good renegotiations with the tenant and a sound retail scenario. So at the end, we are seeing a positive scenario for revenues in Parque Arauco that we can appreciate in the same area rent figures for the fourth quarter of 2024, with positive figures of 10% for Chile, 9% for Peru and 11% for Colombia. Now passing to the EBITDA page. EBITDA is growing 21%. In Chile, the breakdown is in Chile growing 11%, Peru 19%, and Colombia, 55%. So it's high growth in all 3 countries. And besides the effect of the higher revenues, the cost of sales and administrative expenses were very controlled this year. The EBITDA margin in 2023 accounted for 71.2%, while in 2024 is 71.9%, so almost 72%, with the fourth quarter in 2024 of 74.1%. This is a result of several cost control initiatives that we have deployed in the company, including a lean strategy in our operations and a zero-based budget in other accounts. Regarding the impairments of the account receivables in the comparison of 2024 against 2023, we are seeing an increase from CLP 1 billion in 2023 to almost CLP 4 billion in 2024. However, we are seeing a scenario where the accounts receivable are in -- are working well. Our tenants with the retail scenario -- positive retail scenario are paying the rents with no trouble. So what is happening in the figures is that at the end of 2023, we saw some gastronomic groups going to renegotiations that affected the figures at the fourth quarter of 2023 and at the beginning of the year of 2024. That scenario correlated with the gastronomic companies is ended. And this second semester of 2024, we have been seeing a more stable scenario for the accounts receivables. And with that, we can see that the impairment is decreasing in the fourth quarter against 2023. In the next page. The income segment is showing a net profit that is growing 15.8% this year, in the accounts of other gains by function, we are including the fair value adjustment for the year. Please remember that we adjust the value of our assets at the end of each year. So in this fourth quarter, we have the effect of the adjustment of all of our assets that is this year growing 5% against 2023. This adjustment in value of our assets is also correlated with the increase in deferred taxes in the quarter that is growing 3% against last year. In other lines, the financial income is stable between 2023 and 2024. We have a lower rate of financial rates in our investments. However, we have a stronger position in 2024 and resulted in a stable financial income. Regarding the financial expense, we are seeing an increase of 12%, correlated with the higher financial expense that we saw in 2024 in Peru and Colombia, mainly, with rates that are today decreasing, and we are expecting to continue this trend of decrease while the inflation in Peru and Colombia is also being controlled. Regarding the income and loss of index assets and liabilities. In that line, we had the adjustment of our debt that is in U.S. in Chile, which in this year is growing 21%, not because the U.S. has a higher adjustment in 2024 against 2023. The adjustment is almost the same. However, in 2024, we have a higher amount of debt in U.S. that has to be adjusted in this slide. With that, I would like to pass to the FFO in Page 13. Just to highlight that the FFO is growing then 18.5%, coming from the EBITDA that is growing 21%. Very controlled financial income and financial expenses. The associates accounted FFO is growing 20%, which is the result of Marina that is also experiencing a very positive year in 2024 with an increase in revenues and EBITDA. With all the FFO that is growing 18%. And I would like to highlight the chart that is in the lower part of the page, where we can see that in the fourth quarter -- comparing the fourth quarter from 2014 to 2024, we have a very remarkable figure of CAGR of 11% in the last 10 years. So at the end, the FFO is growing more than 10% in all this year for the last 10 years. With that, I would like to pass the call to Lauren to review the results in more detail.

Thank you, Francisco. Now I would like to talk about our asset level milestone. Sales at Parque Arauco Chile -- I'm sorry, in Chile, sales of Parque Arauco Kennedy grew over 18% during fourth quarter 2024 compared to the fourth quarter of '23. Sports and outdoor stores along with computer and electronic stores showed sales increasing over 30% and 20%, respectively. Additionally, the performance of department stores in this asset grew over 20%, compared to fourth quarter of '23. Relevant factors that influenced the increase in sales include the continued consolidation of its area of influence, an increase in tourism and the successful holiday season, all of which resulted in an increase of traffic of over 5% in the fourth quarter of '24. Parque Arauco Kennedy closed the quarter with 100% occupancy and revenues that were over 10% higher than the same quarter of the previous year. Arauco Maipu, our second largest asset in Chile also reached 100% occupancy levels during the fourth quarter of 2024. Additionally, the asset saw an increase of over 20% in NOI compared to the fourth quarter of the previous year due to increases in minimum rent and the reduction of bad debt provisions. Arauco Chillan saw its fourth quarter '24 sales and revenues grow by over 14% and 30%, respectively. This is primarily explained by the maturation of the conversion process of the large supermarket space into over 20 smaller stores, including the new tenants Andesgear and Victoria's Secret. This quarter, the health and beauty sector performed particularly well, driven by the arrival of tenants such as Blush-Bar. Arauco Quilicura closed the quarter with 97.4% occupancy and over 20% increase in revenues. Additionally, the asset shows a significant EBITDA increase of over 30%. These increases are driven by the arrival of new smaller stores as part of the expansion that began operations this year, as well as the new Tricot department store. During 2025, the new Lider supermarket is expected to open as part of this expansion. And in Arauco Premium Outlets, they continue to perform exceptionally well, with sales growing over 18%, revenues increasing over 23% and NOI increasing over 43%. The overall format has shown an increase in sales driven by the strong performance of its stores. The outlets continue to report high levels of foot traffic and vehicle traffic, many of which are tourists who find the premium brands with good discounts particularly attractive. Now let's move over to Peru. For this quarter, MegaPlaza Independencia increased its sales by over 5%, despite ongoing interventions related to its master plan, including the new second phase of building out the gastronomic district which began at the end of 2024. Following the first phase, the asset's occupancy increased by 2 percentage points, reaching 98.8%. Our outlet format in Peru increased its sales by over 9%, driven by the transition of Parque Lambramani into outlet, Arauco Arequipa which saw an over 20% increase in sales compared to the same period in '23. This rebranding, face lifting of the facade and alignment of the mix allows for better differentiation and positioning of the shopping center in the market, offering a unique experience that resonates with the expectations and desires of local consumers. MegaPlaza Ica, our second largest asset in leasable area in the country closed the quarter with very positive NOI increase of over 18%, driven by higher minimum rent and greater operational efficiency. Additionally, as a result of this expansion, this asset experienced a 10% increase in GLA, over 15% increase in sales, and over 9% increase in revenue. Thanks to the entry of Promart and MegaPlaza Huaral, the asset has seen over 25% increase in sales and over 14% growth in revenues compared to the fourth quarter of '23. MegaPlaza Huaral is the only mall located close to the new Chancay port, which has influenced growth in its surrounding areas. The Promart home improvement store that is over 5,000 square meters took the place of what used to be a lower paying kids entertainment area, and experienced over 140% increase in sales compared to fourth quarter of '23. Finally, in December, we inaugurated our second lifestyle format shopping center in the country, Parque La Molina. This asset began operations with an occupancy rate of 77.5% and leasing rate of over 90%. Overall Peru experienced a positive quarter in tenant sales and revenues despite -- however, despite these positive numbers in Peru, various malls see a decrease in EBITDA due to increased bad debt provisions after adjusting our model. Moving to Colombia. Parque Alegra continues its maturation process, reaching an occupancy rate of over 86%, while also increasing its sales by over 25%. These increases can be attributed to the 11% increase in foot traffic during the fourth quarter of 2024 and the good performance of Falabella, its main department store. Titan Plaza experienced a decline in occupancy of 9% due to the departure of Forever 21. However, thanks to successful commercial efforts the assets revenues managed to grow by over 16%. Additionally, tenant sales grew by over 45%, driven by increase in sales in smaller stores, restaurants and food courts. Please do keep in mind that the asset entered into the portfolio in November of 2023, which reduces the Q4 '23 base of comparison. Parque Fabricato also completed a year of being incorporated into the portfolio and experienced increases in KPIs across the board compared to the same quarter of last year. During the fourth quarter, sales increased over 14%, revenue over 5% and NOI over 10%. Let's move over to development. As we have already mentioned, we are very excited to announce the new Parque La Molina, which was inaugurated mid-December just in time for Christmas. This lifestyle shopping center opened its stores with 77% occupancy and 90% of its GLA already leased, reflecting a successful commercial process. The Parque La Molina lifestyle concept offers an open design, more than 60 retail stores, 3 anchor tenants and a variety of dining options. Additionally, the design of Parque La Molina included the measurement of its carbon footprint during the construction, which allowed for the integration of decarbonization measures from early stages. On Page 32, I would like to highlight our CapEx table. The new CapEx table includes the future acquisition of Open Kennedy that will take place towards the middle of 2025, subject to conditions precedent. On the top right-hand side of the slide, you can see a pie chart showing the breakdown of our total CapEx investments by type of project, expansions, new malls and multifamily. This includes projects recently incorporated and to be incorporated in the coming years. As you can see in the table, some of these projects were already incorporated in the fourth quarter of 2023, while others will be incorporated between now and 2028. By the time all of these projects are completed, we will have expanded our total GLA to over 250,000 square meters and our own GLA to over 225,000 square meters, with a total investment of over USD 660 million. While the previous page highlights the total CapEx, on this page, we take a look at the remaining CapEx. You can see the breakdown by type of project of the remaining $392 million in the pie chart on the left-hand side of the slide. Our CapEx strategy is to invest approximately USD 200 million per year. Some years, we may invest less. However, in 2025, we will be investing more in order to acquire Open Plaza Kennedy. This increase in investment means that we will pause plans for announcing future investments until our leverage returns to our optimal level of 5x to 5.5x. However, all of the projects that have been announced already will continue. Client experience is a strategic pillar in core value at Parque Arauco. We are focused on improving the experience for both our tenant clients and our end clients. On Page 36, you can read about how our Christmas events drew over 380,000 visitors to these activations, which is over 27% compared to last year. These Christmas events allowed us to add over 170,000 new unique customers to our database during this period. Additionally, on Page 38, you can read about the new strategic alliances with Starken and Mercado Libre in Chile as part of an enhancement of our omnichannel strategy. Moving on to our sustainability efforts. According to the Dow Jones Sustainability Index Corporate Sustainability Assessment, we are the second best performing company in sustainability within our industry in the region, ranking in the 97th percentile globally. This year, we achieved a score of 70 out of 100 in the S&P Global Corporate Sustainability Assessment, advancing 9 points compared to the previous year. This result also makes us the Chilean shopping center company with the greatest improvement in ranking, reflecting our commitment to sustainable excellence and our alignment with the corporate sustainability assessment. This year, we are also advanced with our decarbonization strategy. One of the key drivers for achieving the science-based target initiative decarbonization goals that we've set for 2029 is increasing the use of clean energy and self-generation. This past year, we experienced various milestones in this area. By the end of 2024, 85% of the energy powering our assets came from renewable sources and IREC certified. In Peru, MegaPlaza Ica generated 18% of its energy using 900 solar panels, reducing 170 tonnes of CO2 annually. In Colombia, shopping centers such as Parque Arboleda, Parque Caracoli and Outlet Arauco Sopo, self generated 7%, 5% and 9%, respectively, of their energy consumption through solar panels. With these actions, we continue to work towards reducing our carbon emissions and contributing to the transition of clean and sustainable energy sources. I would like to show a short video about our solar panel initiative. Please enjoy. [Presentation]

Finally, I would like to invite you to look at our case study on Page 34, about the return of tourism in Chile. In this case study, we highlight the recovery of tourism since the pandemic and how it correlates to sales increases at Parque Arauco assets.

And now we are moving over to our question-and-answer part of the call. [Operator Instructions] And to start off today's discussion, I'm going to pass the call over to the CEO of Parque Arauco, Eduardo Perez. All right. Well, we have a few questions already lined up even since before we started the call. So I'm going to unmute Alejandra from Morgan Stanley.

I actually have 2 questions. First, on your zero-based budgeting program. It was a surprise to the kind of results that it's yielding. So I was just wondering if you can talk a little bit about what we can expect from program for 2025, meaning is there more to come on this front on the expense side? And the second question is, as I look to your contract renewal schedule. It appears that a big chunk of your GLA will be renewed in 2025. So I was just hoping to hear what type of lease spreads should we be expecting here? I mean if you can elaborate on the regions where this GLA is located and the type of contracts and tenants that are facing this renegotiation, that will be very helpful.

Alejandra, Eduardo here. So regarding zero-based budget, let me mention that this is a very important effort that the company has done. This is not an effort done by only the controlling team or only a particular part of the operational team. This is a company-wide effort. And in this process, we question all of our cost and expenses. And we question whether we should be doing things differently. So behind the review of each of these costs and expenses accounts, there is a strategy discussion behind. And because of this, this is a process that takes 3 years and not a few months. So during the first 2 years, we accounted for approximately 80% of our cost and expenses. And during this last year, we are reviewing 20% of our cost and expenses. Some of the opportunities we find, we can capture them right away. But some of them, it's a gradual process that takes up to 2 to 3 years. Because of this, I can tell you as a guideline that we expect to continue to have growth much lower than the growth of our revenues, and because of this, a higher EBITDA margin. So I feel comfortable saying that we expect good news again this 2025. Regarding the second question. We had a very strong second half of the year '24 regarding lease spreads. We are being able to renegotiate our contract at much better conditions, basically because of our tenant sales are growing very in a very healthy way. So if you review the occupancy cost of minor stores that are the stores that are expiring in contracts, you will see that we are still below the levels we had before the start of the pandemic. And we are being able to renegotiate our contract at an annual lease spread of inflation plus 1% to 2%, depending on the case. But let me highlight that this is a compound annual growth rate of inflation plus 1% to 2%. This is not a onetime increase. So as a strategy -- as a commercial strategy, we have our contracts negotiated with step-ups -- yearly step-ups. So some of -- I'm doing this clarification because some of our competitors may tell you the increase in terms of lease spreads compared to the older contract, a onetime increase. I'm giving you the compound annual growth rate of inflation plus 1% to 2% because of the commercial strategy we have of step-ups.

I'm now going to unmute Jorel from Goldman Sachs.

So I have 2 questions. First off, just want to get a sense of the sales pace that you're seeing in Chile, so same-area sales up 12%. So it's quite elevated, and I wanted to get a sense if you believe that we're going to be near these elevated levels for the foreseeable future or if we should see that just decline to a more normalized rate? And then the other question is there was a material decline in occupancy costs year-on-year as of 4Q, about 50 basis points. And same -- sort of question is that a structural shift downwards in terms of occupancy costs? And if so, does that leave the room open for material increases in rents going forward?

Jorel, so regarding sales in Chile, yes, we had a very strong quarter regarding tenant sales, which we are seeing a higher level of activity, both because of healthy domestic demand figures, but also because of the increase in tourism. This is why we incorporated this case study that shows that this is not a normal level of tourism. We are coming back to the normal level of tourism we had in the 3 years before the start of the pandemic. Both in case of total tourists and in the case of Argentina. When we analyze the domestic demand that we expect for this year and when we analyze the tourism flows we expect for the year, we don't see a relevant change. So we expect a positive year regarding consumption in Chile this 2025. This is also what we hear from the main retailers in the country. So regarding occupancy cost. Again, it was a very strong quarter. We were able to -- the guideline of a compound annual growth rate of inflation plus 1% to 2% and being conservative in that guideline. When you see the figures that we -- what we got during the last quarter of '24, the figures were much stronger than that. But I feel comfortable saying that this inflation plus 1% to 2% for the medium term seems very reasonable and we feel comfortable giving you the guideline that we will achieve that.

I'm now going to unmute Guillermo from [indiscernible].

Considering the upcoming projects, what levels of internal rate of return are you going for brownfields and greenfields? And what incremental internal rate have you obtained in the latest projects?

Guillermo, in the last earnings release, we incorporated a case study of the main M&A activity that we have done in the last years of the company, showing that clearly when you see the levels at which we sold minority shares in Chile and the use of that proceeds in Chile, there's a very important value add in the process of selling and buying. Same happened in Colombia. So please review that information because there, you will find very high-quality figures regarding that. Let me answer your question also giving you some color regarding greenfields and brownfields. And let me answer the question by a proxy of cap rates and not an internal rate of return. Of course, the weighted average cost of capital is very different in the 3 countries where we currently have, I would say, low level of weighted average cost of capital, both in Chile and Peru and a higher level of cost of capital in Colombia. And when you take this into expected free cash flows, and considering that the cap rate guideline I will give you is on year 3, so let's say, relatively mature activity levels, we are getting to -- for greenfields and brownfields, close to 10% in Chile. And I would say 12%, 13% in Peru and Colombia. That's for greenfields and brownfields. And from there, please incorporate your own assumptions regarding the growth of that cash flows going forward. Regarding M&A activity, I would say the market in Chile is, I would say, at 7% to 8.5%, or 9% cap rate levels for M&A activity. In the case of Peru, we are seeing more a 9% to 10% for M&A activity. And in Colombia, I would say close to 10%. Again, that depends a lot also on the quality of the assets. We are a company that have been focused highly on high-quality assets. We prefer to enter a high-quality asset at a lower cap rate, but considering that, that higher quality will translate into a higher growth of free cash flows and a higher internal rate of return going forward. So we do have a focus on high quality. And when you see the spread between high quality and low quality the level -- the spread level in terms of cap rates in the countries where we have business is very narrow, I would say, 200 basis points or so. And when you see that gap in developed countries is much higher, I would say, 500 plus basis points. So we believe that in some cases, the high-quality assets are mispriced and we believe that it's a good idea to pay a little bit more for high-quality assets because after a few years that will translate into higher internal rate of returns.

I'm going to move to some written questions. What is the reason for the significant movement in the other cash inflows and outflows account within the investment cash flow? And then let me just read this out loud here. We also have another question about the results of Alegra. So let me read them and then we'll answer all of them altogether. So do we have any color about the results of Alegra? For example, important increases. How should this asset evolved over 2025? And another question about FFO. There was a drop of 11% year-over-year in Colombia and Titan Center. And can we give any color to this?

Let me start by the second and third question, and then Francisco will answer the first one. So regarding Alegra, let's remember that the asset was acquired to Blackstone. This was going to be the first asset of Blackstone in Colombia. And in a strategic move, they decided to step up of Colombia, and we negotiated this partial acquisition of the asset of 52.5% that we acquire in 100% into 2024. Since the asset was built during the pandemic, the contracts were also negotiated during the pandemic. And the contracts were negotiated with step-up clauses. And this is why you see very important increases in revenues. Because the revenues are increasing not only because of the higher occupancy levels, but also because of the step-ups of the already occupied GLA. Let me also mention that the asset is also experimenting very important increases in the number of visits. We are getting close to the 1 million level of visits a month, which is a very strong figure. So we are optimistic that we will be able to renegotiate those contracts when those contracts negotiated during the pandemic expired at better conditions. Plus, we expect to finish this year with an occupancy level of more than 90%. Finally, let me mention that after -- since we acquired the participation of Blackstone during 2024, the other 47.5%, we are doing some investment in the assets, small investments, in order to decrease cost. So for example, we are building, as it was explained in the video that Lauren showed, a new [indiscernible] district because of that the energy consumption will decrease importantly, and this is -- sounds like a detail, but it's not because Barranquilla is a city located in a city with very high temperatures, so the expense of air conditioning is very high. So the rate of return of this small project has a rate of return of above 15%. So I would expect good figures of this asset going forward. Finally, regarding Titan, Forever 21 closed the store and this was the main impact in the asset. However, it is a very strong asset. It is one of the 3 best regional malls in the city of Bogota. So going forward, again, we believe we are positive and optimistic about the future of that.

Yes. And regarding the other question about the other movements in cash flow for investments, this is showing a decrease in cash of CLP 116 billion, which is a very important figure, and that is because we are moving part of our cash to investment that are invested for more than 90 days of the ratio. So we're moving part of the cash to those investments. And you can see in the balance sheet that the other current financial assets are also increasing clearly to CLP 53 billion, and the other noncurrent financial assets are also increasing from CLP 23 billion to CLP 96 billion. So at the end, the company today has around $500 million of cash and cash equivalents that are presented in the balance sheet, CLP 387 billion in cash and cash equivalents. And then we have the rest to reach $500 million with the investment for more than 90 days of duration in other current financial assets. You can find the details of the investments -- the financial investments made in the company in the notes of the financial statements, in Notes 6 and 9.

Thank you, everyone, for your questions. There were a few other questions submitted that are very similar, and I believe that we answered them and so I will skip those. Thank you very much for your participation today. And thank you, Eduardo for answering our questions. Before we sign off, I would appreciate if you could take a moment to fill out a brief survey that I will send right now. Hopefully, you can see the survey on your screen. It should only take a few minutes. We would love your feedback on how we are doing with our conference calls and providing you the information every quarter. So again, thank you very much for attending the fourth quarter 2024 Conference Call. We will see you in April for our first quarter 2025 conference call. As a reminder, on April 23, we will hold our annual shareholder meeting. This meeting will be virtual, and we would love for all of our shareholders to participate. Additionally, in April, we will be publishing our annual report. Every year, we have a process to update the topics that are most relevant to our stakeholders, so we can prioritize them in the information that we publish in our annual integrated report. In the coming days, you will receive a virtual survey sent to your e-mail. It's a simple survey that takes less than 8 minutes to complete and will help us better prioritize the content for our report. We appreciate your participation in this survey as well. And if you have any questions about any of these announcements or if you would like to schedule a call about any additional information about the Q4 results, please feel free to reach out and have a great day. Thank you very much. Thank you, everyone, for joining the call today.