Operator: Good day, everyone, and thank you for standing by. Welcome to GICSA's Q3 2026 earnings conference call. Joining us today from GICSA is Mr. Diódoro Batalla, Chief Financial Officer, who is here this morning to discuss the company's performance and answer any questions you may have. After the speaker's presentation, there will be a Q&A session. Please be advised that today's conference is being recorded and will be available on the company's investor relations website.
Operator: A special note to any members of the media who are joining us today. We would like to remind you that today's call is meant for investors and analysts only. Therefore, questions from the media will not be taken. If you are a member of the media and wish to direct any questions to the company, please contact the company directly after today's call.
Operator: Before we get started, let me remind you that information discussed at today's call may include forward-looking statements regarding the company's future financial performance and prospects, which are subject to risks and uncertainty. Actual results may differ materially, and the company cautions not to place undue reliance on these forward-looking statements.
Operator: GICSA undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. It is now my pleasure to turn the call over to Mr. Batalla, Chief Financial Officer of GICSA, who will lead today's presentation. Mr. Batalla, please proceed.
Diódoro Batalla: Thank you, operator, and good morning to everyone. Thank you for joining us for the Q3 2026 earnings conference call. This quarter is a milestone quarter for GICSA. For several years, reducing our debt has been one of the central priorities of our financial strategy, and this quarter, that effort delivered. We announced a sequence of transactions with the objective to strengthen our capital structure. Today, I can tell you that that sequence is complete.
Diódoro Batalla: During this quarter, we closed the sale of our stake in Galerías Metepec 2 and used the proceeds to fully prepay our three remaining local loans, GICSA 15, 17, and 19, for a total of MXN 2.2 billion. We also prepaid two corporate loans for MXN 200 million. These last steps are the culmination of the work we have been carrying out since 2021 using every tool available to us.
Diódoro Batalla: Over the last years, we have successfully refinanced several property-level bank loans and extended their maturities. We have sold land reserves and non-strategic properties to prepay over MXN 10 billion in local bonds. As a result of this action, our debt metrics are at their best levels in the last 10 years. Total debt closed September in MXN 19.1 billion, 19% lower than a year ago. We have no debt maturities until 2029. Net debt to EBITDA came down and stands at 4.7 times, and loan-to-value represents only 25%.
Diódoro Batalla: Rating agencies have recognized this progress. Between July and October, we regained our investment grade rating national level. Fitch assigned us an initial rating of A-, while Verum and Standard & Poor's also upgraded our current ratings. That same execution is visible in this quarter operation results. Total revenue grew 8% year over year to MXN 1.3 billion.
Diódoro Batalla: NOI rose 9% to MXN 1.1 billion, with an 80% margin. EBITDA increased 6% to MXN 948 million. Occupancy closed the quarter at 92%, 238 basis points above last year. Our malls welcomed 22 million visitors, 4% more than a year ago. Our tenant sales grew 6% to MXN 5.8 billion. Behind these figures is a commercial platform that keeps getting stronger. I would like to highlight three indicators that, taken together, describe the quality of our portfolio.
Diódoro Batalla: First, pricing. Lease spread closed at 11% on average, compared with 4% in the first nine months of last year. Second, strong lease quality. 83% of our revenue is fixed. Only 4% of our leasing area expires during the rest of 2026, and our average remaining term for the rest of the leases is more than three years. Also, our retention rate is 97%. Finally, diversification of our tenants.
Diódoro Batalla: With more than 2,000 leases in place, no single tenant represents more than 4% of our monthly fixed rent. Additionally, our commercial portfolio spans almost all retail categories, and we host a wide range of multinational corporations in our buildings. From here on, we will continue focusing on the improvement of our financial and debt profile while continue to improve occupancy, revenue, and profitability across our properties with our CORR strategy: Collect, Operate, Renew, Rent. Thank you for your time and your continued confidence in GICSA. Operator, we are ready for questions.
Operator: Thank you. We will now be conducting a Q&A session. Ladies and gentlemen, if you have a question, please select the option to raise your hand and let us know your name and the company you represent.
Operator: Our first question comes from Gordon Helmers of Explorador Capital Management. Please, go ahead.
Gordon Helmers: Thank you very much, GICSA team. I am just looking to With the illiquidity that shareholders face right now and the discount to asset value, how can we support GICSA in its attempt to realize that asset value? Would you consider any asset sales, further asset sales, to build a cash position? Is a take private still on the table?
Diódoro Batalla: Hi, Gordon. First of all, thank you for your support and your continuous effort to be with us. Regarding liquidity, yes, our stock has been low in liquidity, and we are expecting that to After this effort that we have been doing with our numbers and our financial position, we expect that this will change. Regarding the sale of assets, at this moment, we are not planning to sell any more assets. By the contrary, our plan is to keep on strengthening the position they have and increasing the rent and generating more profitability in our portfolio. Regarding your last question, at the moment, the purchase of the stock is no longer on the table.
Gordon Helmers: Thank you very much.
Operator: With no questions in queue, the question and answer session concluded. Thank you, everyone, again for joining us at today's earnings conference call. As a reminder, GICSA's investor relations team is available to address further inquiries, so please do not hesitate to reach out after today's call. We wish you a good day. Now you may disconnect.
Operator: Goodbye.
