Q4 2020 Iguatemi Empresa de Shopping Centers SA Earnings Call
[music].
Good morning, everyone and thank you Courtney and welcome to the glaucoma, David the shopping centers.
Of 2020.
Today's conference call.
Okay today.
I will get income.
Hill on.
Net.
<unk> CFO and Investor Relations.
We would like to point that this event is being recorded and I'll take the day when you put all mode during the company's presentation.
I'll tell you that on the Reynolds Bank completed net will be a question and answer section.
Our bedtime spreading sections the big event.
Should any price per day this system during this call.
Zero to reach the operator.
The event is also being broadcast line.
A webcast and may be expect it to go out the native debt investors relations website.
That did that did that did that.
I want to meet that.
From that yet.
While this slide presentation is also available for download.
Alright, Thanks, Maysville de flight in any order they wish.
That proceeding let me mention that forward looking statements are based on.
And on sanctions Gwatney management.
And on information currently available to the company day.
They involve risks uncertainties and assumptions because they relate to future events and therefore the tenda.
That's been made on my Nokia.
Investors and analysts day should understand that general economic conditions industry conditions and other operating factors.
Also with bad debt.
Q2 results I think what to me.
And could cause the results to differ materially from those expressed in such forward looking statements.
I will now move misfortune, Mr. Carlos who will begin today's presentation instead.
Mr. Carlos you May proceed.
Hey, good morning, everyone.
On a big pleasure to welcome you once again.
On the conference call.
Yeah.
Today, we presented the results on the fourth.
Okay.
Yeah.
Uh huh.
We closed 2020 with positive results.
The considerable improvement.
And then going on.
Oh.
Okay.
As well and also Louise.
Shopping traffic.
Mainly during black Friday and Christmas.
Yeah.
With.
Okay.
Actions.
Oh.
Yeah.
Great.
Moving on.
Registered and increase our capacity.
Pat.
All of our malls.
By strict health protocols guarantee on the safety of our tenants.
Consumers.
And that was very appreciated.
We have some research that we do that.
So that people that went on mall.
Extremely safe.
Uh huh.
And despite the challenge that the Covid.
19 crisis cause and continues to cause.
Good day.
Yeah, our industry and our sector to the special care implementing health and safety protocols.
When added to this.
Reported.
And the quality of our portfolio helped us.
As I mentioned with performance.
When faced with.
Sure.
Today once again, we are on the eve of newly approved operation restrictions.
The state of Sao Paulo, and some other states as well.
Which will of course increase the pressure on on Nebraska.
Four months.
And in light of the scenarios are worth noting that during the day opening the office sector.
'twenty 'twenty it became clear to us debt shopping malls on.
On a collaborating our spaces on the contrary shopping malls have become safer environment to control space when people were using masks and everything so we attended the.
Strict health and safety protocols.
Dean adopt.
Having said that we hope that these restrictions to be temporary.
We believe the different from last year, we know much more about them.
Had the virus and at where and how it spread so I think that day.
Got it.
Uh huh.
Faster to to make the debt.
Come back of our business.
Continue to adopt a stance that is transparent and close to all our stakeholders, especially from tenants.
Giving Asia, specifically retail cash categories that have not yet manage to catch their breath I think debt.
Again, if there was a learning curve for us.
During 2020, which sectors were hooked and others that were facing quite well and it's important.
I wanted to come back as we mentioned in growth.
All of them.
And a J K and some of our malls did a very strong come back from there.
2020, mainly.
Specialty categories like international tenants jewelry and sports are not similar.
Other categories.
Ah another highlight as we think that this important 65 I think we also have performance legit, leveraging the fourth quarter 2020.
Already have more than 400 brands.
Highly accepted by the tenants and to be the most explosive excluded from.
Performance in Brazil.
We have already 18000 products available on a powder form.
With the growth one of the site to demand for new brands continues to increase we are integrating right now more than 15 new brands.
In the last few months.
We have incurred some relevant names from local and foreign retailers, we have brands such as.
On balance Chaga glue didnt come on.
Others are entering the platform and dismounted operations internationally International Israel.
We are already more than 22020 strategies.
In 18 states.
And state capitals, and how who wish to serve the whole country.
By the end of the first semester of 2021, I think that will also help to continue the growth of the business and an improvement.
Help us too.
To be more well known throughout the country.
In addition to the expanding on a national scale, we will launch the quantity.
65 App.
Because now we have a lot of learning and.
So now it's time to have an app and Andy EBIT have even better because.
Customers and further improve the omni channel experience with new guide shops, they're opening a GAAP shopping about any Sao Paulo.
Remember this year and also we are improving and enlarge our pickup centers and look on a locker systems.
We will continue to play on each step of the company through its too early.
We believe that we have a number of growth levers are.
Do you have available to us.
Hitches in resuming the performance of our portfolio constantly improving our consumer experience.
I'm, hoping to surround it of our shopping centers with mixed use projects.
I'm going to show some of the projects, we've been doing and we are highly demand on that.
And carrying also.
The geographic expansion and brokers want to meet your 65.
So when you go to the highlights.
The quarter on.
On page three restarting the operation sales.
Debt graphic shows you know the yellow.
Uh huh.
Court chose the opening assets with restrictions.
We could see a debt.
Third quarter fourth quarter hat on.
Everybody open with restrictions, but all the states we're open.
I don't know are working pretty well.
And the.
Red line show, where we had some restrictions that we had.
<unk> operations with diffuse stops.
In some states during weekends.
Yeah.
In the next slide four slide we can show how.
Sales improved during the fourth quarter, reaching almost 90%.
<unk> last year.
And we've been able to.
Even even that we had any research that show that 70% of our customers.
We're feeling safe in going back to.
To visit malls, 30% not showing that even we heard restriction and with reduction of traffic of customers that were not due to.
Any states, especially the older customers.
We're able to reach almost 90% of the sales in general.
Showing.
Shopping centers in Brazil, and Latin America, they're fundamentals are very strong and they are part of the day.
Daily base activity on our society.
And it was still very strong in terms of sales we now in the current status.
We have some strong restrictions.
To operate in an extra 15 days in most of the states.
We have presented.
Debt debt.
It shows.
From Brasilia to tissue, because we will have some restrictions.
Our strong restrictions in Brazil, and some pharma capital Campinas, Cabo San Jose Humberto from kind of a split for lagging a little quicker than usual.
Because with a small restriction.
Going through the highlights of the fourth quarter, we had total sales, reaching $8 7 billion in 2020 or.
38, a drop versus the <unk>.
19, and $3 6 billion in fourth quarter, 'twenty showing debt as I mentioned how.
We'll be opening on and that leads to less restrictions on half sales came back and we haven't had a pinch better end of the year.
Same store sales declining into 2028, 1% same area sales decreasing $36 two.
Percentage in the quarter.
So the same store sales and same area sales respectively.
111, eight and 10.1% same store rentals declined 24, 5% and same area rentals.
A decrease of 28, 5% in 'twenty.
Relatively if you take the fourth quarter that we had of course a better.
Our response and are on until at the same.
Store rentals were down three.
Three 3%.
Area rentals were down 10, 1%.
With that net net revenue.
Yeah 684 million high 93 below.
2020, and the fourth quarter was a hindrance in 84.
At that point.
4 million below last year.
EBITDA Ricci Richard.
$514 million.
And 162 million in the quarter.
19.1, and on 19, 19% drop.
Actively.
So we had an EBITDA margins, reaching 75, 1% in 2020, and the fourth quarter and with a much better.
Results of 88% due to the.
Uh huh.
Ink revenue that we had.
Net Kristina will will.
Who will explain to you.
Ah trial had a presentation net income was <unk>.
202.
$202 million.
And $82 million in the quarter.
Again, we saw a drop important drove a 35, 6% and $26 seven.
Dropped respectfully <unk>, reaching 200 foot 61.
Median highs.
Below 20% of loans.
2019.
And 120.
Median in the fourth quarter at $17 to be low.
The fourth quarter 2019.
With that we have the leverage any higher.
This year were $1 eight above last year at three three.
<unk> three times net debt to dish.
EBITDA.
Yes.
Other.
Highlights that are important too.
To say is we had a fractional sales one 5% of Galleria shopping lunch G&A rate of net anatomy.
On net result of $10 7 million.
Are we going to show the new projects, we are doing in that area. As we continue to through the strategy of mixed used project non malls. So that's a strong strategy.
Residential.
Development in Brazil are strong in our malls.
Very attractive.
Development continues to do some of this partnership.
Is it going to show you a little bit later on.
Also has attractive sales.
5% of the relative he's gone out of the land generating again on net result of $8 3 million.
And also we had the issuance of 500 million in debentures first series of $100 million.
CDI plus two five.
<unk>.
Five year term and we had a second series of $400 million with CDI plus 245%.
In year, two and amortization two equal installments starting 2026.
We also had important subsequent events even through on Dania and a very tough year for our business. We had you gotten reelected by great place to work as the <unk> Best company to work on the retail sector in Brazil.
The first time that we are part of this.
Collection.
Thank you Sheena.
And it is very pleased to see that even though it's tough times, we were able to keep a very potent good climate inside the company.
People would.
Working hard to go through this.
Difficult times.
The deviation, which well know now and I think that the vaccines that people are.
I think we are heading to.
Too much better times in the near future.
We had like I mentioned the projects in progress we haven't got any of <unk>, which is supposed to be the best office tower in the.
City of Campinas disconnects together yeah.
Scheduled to the opening at the end of this year.
And we have 62% of the project.
We have this multifamily gallery.
Tyler that we did is basically we have $16, 67% up to <unk> of the business is something that has been developed in Brazil quite strong right now.
We went to them.
Continues to add this conscious property gains within our malls.
And we had again.
As a development strong.
Collaborations with other companies to increase the density.
And surrounding our malls and we did it.
Commercial tower deal.
If a company sort of copper and you've got the vs. Granada and is scheduled to open in 2025.
With that I give the floor to casino associated with talk a little bit more of the operation and financial results of the Florida. Thank you very much.
Well. Thank you everybody for your presence in our conference call on I'll skip the strength into 14.
I'm talking about the main operational indicators so.
Just a quick reminder, the change in G&A for the company as it relates to the purchases that we did have the minority stake belonging to EBIT, which is a busy right now on reinsurance.
Reinsurance company, we bought stakes in Dallas on either at the top.
Carlos has gone through the sales number so I'm going to skip that but I'm gonna go straight to occupancy costs. So we ended the quarter with a 13% occupancy cost.
That actually includes.
A part of their revenue, which relate to March.
If you remember.
When we started to lock down in 2020 in March so the 19th of March on at the end of March we decided not to charge rent at that moment.
The cash and the marketing, but we didn't try to read on we postponed the rent to be charged in five installments beginning October.
So this quarter had the first three installments in March and that's why we have a 13% occupancy cost when we exclude the three the three installments and you'll see in the footnotes occupancy cost of $11 nine which is closer I guess to what we had on the fourth quarter of 19 for the year or we ended $13.
Bonds.
Of course, we have the two installments in March which flip over into 2020, one, but the increase here is basically because of the second and third quarter, where we had you know.
Limited sales.
Compared to what we were charging.
Our occupancy rate is at 91%. So we continue to be very strict about Oh, who remains in the mall or not on that then a big trend in the mix are something that we will see a picking up throughout 2021 eye with the new contract.
Being signed on and so on net delinquency rate. We finished the year at $9, three which was a sizable difference to the third quarter, where we were almost up 14%.
Again, I think for us two things here.
And that of course.
As we always say in our company every day sales as a cure to all evils in our industry.
But won the day.
Delinquency rates again with a lot of our work here on the day.
Yeah on the average for the year at $5.
When we look at our financial results on our P&L on page 15, we have we closed the quarter with gross revenues of 228 million wise, which is a drop of 5.3.
Axes on discounts came in a lot higher than 2019, but you'll remember that we are now linear rising discounts Ah. We started this this year and so we have the straight line effect of the discounts for the quarter at 15 million lives and so we closed net revenue at 184 million why.
So a drop of 12% compared to the fourth quarter of 19 cost and expenses came in a little bit higher.
Not because of expenses because of costs and the costs basically increase because of the retail operations and our e-commerce marketplace 365.
That's why we have at which were a lot smaller.
And 19, and this is where we have the.
Other operational revenue is kind of mentioned two of the exceptional land sales that we did for the fourth quarter. This year also includes things like on the key money that we received for the fourth quarter and on the other items as well, but those are the main ones.
We closed the quarter with any bit of 162 million.
Which is a drop of 19%.
Compared to the fourth quarter of 19.
And then amortization is relatively stable I mean, the only increase it really is due to the increase of G&A and then financial expenses net financial expenses on a little bit higher because of increase of the absolute debt to the company.
And then net profit coming in at 82 million has an episode of $120 million when we look at the year.
Similar effects I guess all over a week.
Ended the year with net revenues of 684 million high cost and expenses are lot lower here. When you look at the aggregate number because of course, we have the ramp up of the retail on our marketplace operations on.
The full year.
Perspective, it weighs on us.
Oh, we have operational revenues, then a 39 million he is and and EBIT that can be in that 514 million has for for the Oh I'd also like to well, we'll see that in the next I'll wait till next day, but.
So net profit came in at 202 million lives and ethical as kind of a sad because it was 51 million for the year.
So next page, which I was going to discuss this on these better for this we look at our.
Our commitment is to make sure that everybody has comparable numbers for cigarettes in.
And so this is to show what are the straight line effect of the discounts for the fourth quarter and for the 12 month period. So you can see that net revenues for the quarter was impacted positively with the straight line effect of the discounts and 14 million highs and for the year on $150 million.
Four four net revenues okay.
We'll continue to show this as we move along in 2020 and.
'twenty one.
To make sure that everybody has.
The comparable numbers on what our numbers would be without it.
On this linearization.
On page 17, we have our gross revenues and are looking at fourth quarter, we have rentals coming in basically flat.
Management fees on parking taking a hit.
Management fees, because we have we charge management fees on the total pool of revenue and expenses and of course, because those were reduced as a reduction of the fees on parking of course.
We've had a drop of.
Of traffic in the malls is that directly impacts parking.
When we look at the 12 month figure.
The explanation is basically the same only a little bit more pronounced.
Pronounced on the drops of the marketing and parking expenses, Oh, sorry revenues, because we take into consideration here in second and third quarter, which were more pronounced.
Only one of a breakdown on the next page of the rent revenue on.
On the fourth quarter, so we see minimum rent growing at four 3%.
And and maybe even a little bit counterintuitive to me, we see overage growing at 11%.
This is basically because of the.
Fantastic sales numbers that we saw in some of our malls in some of our operations. There's a lot of the different tenants EBIT, even though we're in the middle of the pandemic on with a lot less traffic paying overage number two that they're fantastic sales numbers.
Temporary rents of course, taking a hit here on 40% almost 40% below and this is again due to the pandemic I think that a lot of different companies, which skews the malls as advertising space on trial phase.
I'll have their budgets produced.
And Oh, we have a lot less demand for our locations. Yeah I don't have the same explanations for the 12 months period.
On the next page 19, we look on costs.
So basically we have a drop in everything that relates to people as you as you will remember in the third quarter, we had a.
The adjustment of our staff and and we had almost 25% may off of both people at the holding level and at <unk>.
On the mall levels I'm on this has impacted here in the personal lines.
And we look at promotional fund, which again is a function of the different revenue that we receive on where the drop is because of that.
And parking again is it in terms of cost basically flat when we look at other actually other costs as I had mentioned when we looked at the P&L as a whole increasing quite substantially and this is due to the operations in retail and our three six fives marketplace.
When we look at the year numbers the explanations are the same.
Oh, just different impact because of the different quarters on.
On the next page.
We look at expenses.
So again I think here, we look at personnel personnel.
Decreased 41% here, we have the adjustment of our head count but also the.
The non accrual of variable compensation for the year. So we decided not to accrue for variable compensation. This year, which gets paid out at 2021, but I get the crude throughout 2020 because of the results of the company acquired share based compensation did go forward. So we have the the.
The cool on the previous programs and then the on.
The new grant, which was given out in 2020, and we have the increase there as well so third party a little bit higher due to some one off expenses and other expenses coming down quite substantially for the year. We have the same explanations and personnel on and share based compensation on also third party.
Next page on page 21, we have our debt profile. So we closed the year on a $3 4 billion, how our debt total debt and cash and cash equivalents and the company at 1.7, leaving us with a net debt position of $1 7 billion high which gives us.
3.32 times net debt to EBITDA ratio.
So so healthy still.
And looking forward with a tendency of moving downwards now.
We continue to have a really low cost of debt I think it's easier to see in the next page on an average term, especially because of the last debenture that we did.
Still on.
You know very healthy at three seven years.
The important thing to note also that we have quite a lot about amortizations going on this year on a few of them. The next day and we have enough cash on hand to go through with all the amortization is without having to access the market.
During these uncertain periods of 2021.
Needless to say, we're really comfortable position for free.
For the coming months.
On the next page as I said the debt profile I think on the bottom part of the chart on the slide you see that even though it's 174% up to you all.
CDI has dropped tremendously and that means it's an all in cost of debt around at around just over 3%, which is unheard of in Brazil, really and and allows us to have you know a quite quite a lot of relief on the financial expense line. So our debt is 84% linked to the CDI.
And <unk> and we've been switching I guess modes of debt into debentures, which have been more flexible cheaper on also more beneficial to us in terms of covenants.
Covenant structure on the guarantee that we need to.
Get to the banks, so with that we end our presentation on.
And or we're open to any questions you may have thank you.
Yeah.
Thank you Ms Wei now open for questions.
I have a question.
Okay.
When you take counsel all day.
Okay.
Any point. Your question is you made a move yourself when they can I press the pound key.
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We do ask that when you pose your questions. Thank you people.
To provide optimal sound quality.
Hold on while we pull the question.
Hey, Nicole from Bank of America.
I'd like to make a question.
Yeah.
Great. Thank you good morning, and thank.
Thank you for the call and taking my question.
On the debt.
You locked down measures that that were seeing and in olive.
I'll start on this weekend.
What have you decide kind of what kind of discount policy.
You're going to have during this time.
They come on we saw last year and this is something that that has already been decided on and discussed with retailers.
And the second question.
Concerning leasing activity so you.
Yeah.
Vacancy levels.
Excuse me a little bit higher but you know you made it clear that you are signing leases.
The next a couple.
A couple of quarters can you give us an idea on how your leasing spreads are on these new leases and what kind of new tenants are you attracting to the mall.
Thank you very much.
Yeah, Nicole so on the discount policies coming up.
I think this is a very different situation than we had in 2020, okay on.
When we started to lock down in March of last year, I think we had no clear.
Picture about how the pandemic was going to play out what we have to do how long it was going to take I mean, there's really no light at the end of the tunnel I think you know we stay for a really long period, and so I think we were a lot more lenient than because of the uncertainty of the moment. This time round I think we've well we've already aided a knock the different.
Tenants I mean since the beginning of the Lockdown and in 2020 and even after we came back into operation we continue to.
For the tenants who are suffering the most.
And according to category according to size and different laws zone. So so there is an ongoing aid to the ones that need it most.
And this time around for it puts on Paolo you know.
Periods of that has been announced as a two week period. So it's not a very long period, and we know how to operate now so we know how to operate drive throughs and so on there are a whole bunch of different things that we developed during the last locked down and so I think this time round, it's a lot it's very different.
And.
I think we will look at it as we've been doing drawing on the previous months, which is on a case by case basis on understanding who really needs our help on how much they need it okay. So different than last time, when we had a policy of exempting rent across the board at this time I was going to be a lot more punctual and looking.
On a case by case.
And.
A mood, okay in terms of leasing activity.
We have kind of everything Nicole I can't tell you that we have one kind of Oh on one kind of operational coming in we have from restaurants to our sports equipment to high fashion to international partners, we have a bit of everything on a bit everywhere. Okay. So that's actually good news.
It means that you know we're looking at it I think.
Uh huh.
Because we always say, it's about when people look at the apollo's everybody thinks I'm gonna be cockpit anywhere from yourself, Alan J K, but actually Oh. This is really spread out we have a lot of things happening in <unk>, but I E. There are a lot of things happening and puts a log in and convenience. So I mean I'm on the countryside and he'd been on here.
So that their operations all over coming in and very different.
So you know when we talk about.
Tenants with with a lot of difficulty this year of course like everybody in all different you know across the retail and for the land owners as well, but let's remember that we have a lot of tenants, who who accessed capital last year low.
However, on our looking to expand our Bom different brands.
There's a lot of opportunity because of course these tenants when they want to be in the best location on the on and this is good news for us as well so.
We have a really positive perspective as I said before we have you know.
A lot of I didnt have four or five new international brands luxury brands coming into the country. This year.
I think the last time I said this was going to be towards 2014. So so it's been a while and I think this is good news because you know that on these new brands have seen the excellent performance that the luxury Bronco club in 2020 and are looking to put their foot down on the ground in Brazil. So so it's not but again, it's not one.
The luxury brands I think we have a bit of a you know we have for example, the U N and budget, an awful lot of cocoa, but bulls on over the country. So a lot of new operations everywhere. Okay.
Yeah.
Great.
That's very helpful can you give us some idea of how the leasing spreads are on the on new.
Moving to say, you're saying Oh, so Nicole we never changed the minimum rent from the different on the different contracts. Okay. Because you know that in Brazil. There is a law that says that when you have tenants side by side. There's a you have to make are the rents equal and so on so.
We never changed our what is the base of the contract what we can do as a temporary relief from the entrance of the different operations as dawn, depending of which store on where we're talking about but we don't change the base of the contracts. Okay. So basically our leasing spreads are you know or at least on par with what.
Moving on in the malls.
Great. Thank you very much.
I'm wondering if you have a question please Greg.
Right.
I have we have a question here, which I'm going to read to you guys and then answer.
We have a question on the webcast. It says do you expect a significant disruption to so Paulo mall operations due to the new restrictions on how customers shop with adjusted to living with restrictions.
So well thank you for your question John and.
So follow up and I think all across the country on we've seen this on all of our malls.
We were very quick.
The opening of the first lock down to implement all of the secure if you imagine the sanitary measures for people to feel safe to come back to them to the malls. Okay. So we have things from sanitizing mass too you know self sanitizing escalators to you know the fourth month of of the wearing masks and we.
Temperature taken from everybody who walks in the mall. So there's quite a lot of stuff going on and we've never let that go are we continue to operate and I think everybody's used to leaving the house with their masks now we I mean, we have no issues I would say as we've seen in other parts of the world that people are not wanting to wear their lots on not wanting to where they are marked properly.
I think we have in that aspect that needs to balance disciplined approach to.
The people who come into our malls so on.
On the proof of that is that we had a fantastic fourth quarter, even though it was less profit because I think there are a lot of people in so Paulo, who have left the city and go on until the second homes and so on.
That that the malls are packed for black Friday, and Christmas only have fantastic numbers and so on sales from you know from things like luxury items to sportswear to leather goods. I mean, there are several different categories that did really really well in a in the second and the fourth quarter.
So I think on to answer your question.
We we've had we really have had a.
I think the population has learned to live with the restrictions that we have on hot on adapted quite fast.
Yeah.
Okay.
We have a second question on our wet cloth clothing from Chi to La Barker from Goldman Sachs. It says how long do we think it will take to return to pre COVID-19 occupancy level.
So I think we're working on that.
Thank God I don't think we're going to come back to us.
Are we monitoring something close by.
We ended the year, but that really depends on how the pandemic plays out.
So I don't want to write this in stone yet, but we certainly have you know an increase in occupation. This year for sure from where we finished in 2020 I guess on I don't I'm, just not totally sure that we can get in the remaining 10 months of the year back to what we were before.
Covid on before actually the recession that let's not forget that we were calling out of our five year recession and and this has been you know so.
So one thing on top of the other book club, but I think that's everything that we put in place.
It's better than what we had before more productive than what we had before and that's really important for us.
We have a third question on our webcast on it says if we feel that we've adequately provided for future losses on delinquencies.
And if we will need to have extra provisioning.
George So yes, we do feel that we have adequate provisions.
Actually the we we had a long season of auditing in the company I'm, sorry, with your auditors or had an enormous amount of work. This year and this is one of the key things that all of them have I'm, sorry, it's just not with us with everybody.
We looked across the day.
Company then.
And we've been actually a in our view, even a little bit more conservative on the losses than we would have anticipated, but we we were okay to be a little bit more conservative right now and so I think we we.
We wouldn't need to do anything extra this year.
Or are in the coming quarters.
Yeah.
Yeah.
Yeah.
Remembering if you have a question please press star one.
Remembering that.
Right right Okay one.
And we have one more question from cheaper from Goldman Sachs I'm, asking if given the decline in parking revenues on considering transforming some of the parking area into G&A.
I'm not.
Not because of the pandemic, okay, but just because of the.
On the consumer trends.
Over the year will be that consumers will use alternative modes of transportation to come to them. All so we see people using Uber.
I mean by bikes actually we've increased the parking for our bikes in all of our malls and we have you know even things like scooters and so on so you can you can park your bike you can.
Luckily our helmet and things like that so all of these alternative modes of transportation will reduce over time the need for all this parking space and then but we need approvals and all the different time married to convert parking because this is an index that the different towns on the malls are constructed on.
Our fixed index, but as we prove that there's a change in the consumer pattern not because of the pandemic, but because of a general consumer trends I think in the future. This is something that we're looking at but it is not immediate.
Well.
One more question about a week Oh, all against the dollar on how it impacts our business.
It doesn't impact our P&L directly George.
The difference it because we have nothing really in terms of costs and expenses that are dollar linked.
And it does effect because of the pandemic of course, we have travel restrictions I think that's impacted consumption more than the difference in dollar versus Hal. Okay. So it's it's it's less of an issue right now of of the currency on more of an issue on that.
Travel restrictions.
And that day, if you have a question so on.
Thank you, ladies and gentlemen, there are no further questions.
At this time.
Thomas Please proceed with your closing remarks.
Just thank you once again for participating.
The conference.
Fourth quarter 2000.
Right.
And if you have any further questions. Please let us know.
Thank you very much thank you.
This concludes the graphs on this conference call you may disconnect. Your line at this time.
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