Thank you, Leslie. Good morning, and a warm welcome to our conference call on the second quarter 2026 results of Consorcio ARA.

This call will be also transmitted by a webcast accompanied by a slide show for visual support. With me on the call to discuss the results are Luis Felipe Ahumada Russek, Vice Chairman of the Board; Miguel Lozano, Chief Executive Officer; and Felipe Loeza, Chief Financial Officer.

I want to alert everyone that certain statements and comments made during the course of this call may be considered forward-looking statements as defined by the Securities Litigation Reform Act of 1995. Consorcio ARA believes that such statements are based on reasonable assumptions, but there are no assurances that current outcomes will not be substantially different from those discussed today.

All forward-looking statements are based on information available to the company on the date of this call. The company is under no obligation to publicly update or revise any forward-looking statements as a result of new information that may become available in the future.

As usual, at the end of our prepared remarks, there will be time for Q&A. We'll wait until then to open the queue for questions.

Results for the first half of 2026 compared to the first half of 2025. The financial and operating results of the first half of the year confirm ARA's robust performance and mark a continuation of the positive trend seen over the past six quarters.

In the first six months of 2026, total revenue, meaning the sum of housing revenues and revenues from other real estate projects, came to 4.59 billion pesos, actually 17.1% advance compared to the same period of last year. Housing revenues totaled 4.45 billion pesos, an increase of 17.9% and corresponding to the sale of 3,140 homes, with an average price of 1,418,000 pesos, 14.7% higher.

The growth in housing revenues during this period was driven primarily by the residential segment, followed by middle-income housing, where sales totaled 2.15 billion pesos, 23.2% higher, and residential home sales reached 1.28 billion pesos, a very solid double-digit growth of 64.7%. Meanwhile, sales of affordable entry-level homes totaled 1.02 billion pesos, 18.5% lower, due strictly to the completion of a development in the city of Tijuana.

We already have another development operating in that city, which will be contributing revenues beginning in the third quarter of this year. Revenues from other real estate projects, mainly from the sale of land and from shopping center leases, totaled 142.3 million pesos, a 3.1% decline due to lower sales of commercial land.

Looking at the sales mix for the first half of the year, affordable entry-level homes contributed 22.2%, middle-income homes 46.8%, and residential 27.9%, while other real estate projects accounted for remaining 3.1%. In the first six months of this year, besides the growth in revenues, there were also notable increases in operating income and EBITDA.

Operating income totaled 420.7 million pesos, 11% higher than in the first half of 2025, and EBITDA totaled 624.4 million pesos, a growth of 15.2%. At the bottom line, net income totaled 363.8 million pesos, up 3.5% year over year.

These solid results have been complemented by a steady reduction in working capital turnover. In the last 12 months, this indicator declined by 154 days, contributing to a positive free cash flow to the firm of 378.9 million pesos in the first half of the year, which comes to 259.5 million pesos after interest payment.

Results for the second quarter of 2026 compared to the second quarter of 2025. In the second quarter of 2026, housing revenues came to 2.24 billion pesos, a 12.3% growth over the same quarter of last year.

These revenues correspond to 1,549 titled homes, which comes out at an average price of 1,446,000 pesos, a 17% increase over the average price reported for the second quarter of 2025. The revenue growth was propelled mainly by the residential and middle-income segments.

Sales in the residential segment in the second quarter of 2026 came to 675.8 million pesos, rising 64.5% over the same period of 2025, while in the middle-income segment, revenues totaled 1.1 billion pesos, 24.9% higher. Affordable entry-level sales reached 461.2 million pesos, declining 34.1%.

Revenues from other real estate projects, mainly from the sale of land and shopping center leases, totaled 71.7 million pesos, and dropped 12.1% from the second quarter of 2025, primarily due to lower revenues from the sale of commercial land. Looking at the revenue mix in the second quarter of 2026, affordable entry-level homes contributed 20%, middle-income homes 47.7%, residential 29.2%, and other real estate projects 3.1%.

In the second quarter of 2026, operating income came to 190.3 million pesos, with a margin of 8.2%, net income was 162.3 with a margin of 7%, and EBITDA was 292.3 million pesos, with a margin of 12.6%. In the second quarter of 2026, we generated positive free cash flow to the firm, totaling 360.4 million pesos.

Financial position as of June 30th, 2026. The positive generation of free cash flow enabled us to close the first half with a balance of cash and cash equivalents totaling 2.19 billion pesos, 4.4% more than the balance at the close of last year.

Accounts receivable ended the second quarter of the year at 563.4 million pesos, 20.6% lower than on December 31st, 2025. Accounts receivable turnover was 23 days.

Total inventories as of June 30th, 2026 amounted to 19.78 billion pesos, a 2.1% increase over the close of the previous year. As of June 30th, 2026, cost-bearing debt came to 2.52 billion pesos and declined by 5.2% from the balance reported as of December 31st, 2025, attributable primarily to the payment of straight unsecured loans.

Short-term maturities, meaning debts coming due in the next 12 months, made up 65% of our cost-bearing debt, and long-term debt 35%. As we have mentioned on other occasions, we are working on rolling over the ARA 23X notes, which expire at the end of November this year.

As of June 30th, 2026, 67.3% of our cost-bearing debt was in the form of the ARA 21-2X and ARA 23X notes, 11.6% were simple secured loans for our shopping centers, 11.6% were simple unsecured bank loans without real estate collateral, and the remaining 9.5% were lease liabilities. Net debt at the close of the second quarter of this year was positive by 326 million pesos.

The operating strength of Consorcio ARA is also reflected in the growth of its EBITDA in the last 12 months to 1.24 billion pesos, nearly 17% above its comparable year earlier year. With this performance, we closed June 30th, 2026 with a solid financial structure and very healthy leverage, reflected in net debt to EBITDA ratio of just 0.26 times and a cost-bearing debt to EBITDA ratio of 2.03 times.

If we take this ratio on coverage of net interest, meaning interest expense less interest income, it would be 7.52 times. Housing industry performance.

According to Mexico's National Institute for Statistics and Geography, INEGI, as of May 2026 in annual terms, industrial activity showed no change. The construction industry as a whole slowed 0.6%, while the building subsector, which includes housing and industrial bays, declined by 3.3%.

According to data from the Unified Housing Registry, RUV, in the first half of the year, 272,685 homes were registered, a significant 198% increase over the same period of the previous year, driven primarily by the registry of homes under the federal housing program, and 66,130 homes were produced, 7% higher than in the first half of 2025. Regarding mortgage lending between January and April 2026, which is the latest information available, based on data from the Ministry of Agrarian, Territorial and Urban Development, or SEDATU, INFONAVIT granted 54,710 loans for the purchase of new homes, an increase by 8.3% compared to the same period last year.

These loans represented an investment of 44.3 billion pesos, 16.5% higher. The average size of a new home loan between January and April 2026 was 811,000 pesos, a 7.5% increase compared to the same period of the previous year.

FOVISSSTE, for its part, granted 4,278 loans for new homes in the first 4 months of the year, 5.4% more percent that more than in the same period of last year. The investment in this totaled 5 billion pesos, advancing 21.9%.

The average size of a new home loan was granted between January and April 2026 was 1.17 million pesos, a 15.6% increase compared to the same period of the previous year. As for commercial bank home financing, in the first 4 months of 2026, 27,529 mortgages were granted for the acquisition of new and used homes, a 2.2% reduction compared to the same period of last year, and investment in this totaled 69.8 billion pesos, 2.8% higher.

The average size of a loan granted between January and April 2026 was 2.53 million pesos, a 5.1% growth compared to the same period of the previous year. In the first half of 2026, 58.7% of our revenues came from homes financed by INFONAVIT, 11% from FOVISSSTE, and the remaining 30.3% from commercial banks and homes purchased without financing.

Shopping centers. Our shopping center division also continued to strengthen its operating and financial performance in the first half of the year.

Revenues in the second quarter of 2026 totaled 140.7 million pesos, a 7.1% growth over the same period of 2025, while net operating income came to 93.5 million pesos, 1.7% higher. Revenues in the first half of the year rose to 277.4 million pesos, up 7.8% over the first half of last year, and net operating income totaled 190.4 million pesos, a 6.4% year-to-year increase.

These results correspond to shopping centers that are 100% owned by ARA and are consolidated into our financial statements, as well as 50% of Centro Las Américas and Paseo Ventura, according to our stake in those properties, which are entered under the equity method. Total gross leasable area in our shopping centers and in mini shopping centers stands at nearly 212,000 square meters.

The occupancy rate as of June 30th, 2026 was 94.1%, a level which confirms the appeal and position of our assets within the market. Dividends.

It is worth noting that Consorcio ARA is known for its capacity to generate cash flow, which has allowed it to maintain a policy of dividend payment, which is commendable given the investment-intensive nature of our industry. Yesterday, the dividend declared in the April General Ordinary Shareholders' Meeting was paid out, totaling 200 million pesos, equivalent to 22.1% of 2025 net earnings.

The per-share dividend was around 0.16472 pesos, a yield of 4.4% on the stock price at the close of 2025, which was 3.74 pesos. This dividend was paid out from the net fiscal earnings account as of December 31st, 2013, which means it was not subject to tax withholdings.

Renewal of market maker contract. On July 3rd, we renewed our market maker service contract, which we signed in June 2019 with BTG Pactual.

This contract will help continue supporting the market liquidity of ARA shares. Annual and Sustainability Report 2025.

We invite you to view our 2025 Annual and Sustainability Report, which is available on our corporate website. In addition to discussing ARA's financial performance, the report covers our corporate governance, sustainability, ethics and transparency, the quality of our products and services, the ARA Foundation, and our commitment to the environment.

It has been prepared as recommended by the Global Reporting Initiative 2021 Standards under in accordance reported option. It also incorporates indicators from the Sustainability Accounting Standards Board of the IFRS Foundation, specifically those relevant to the real estate and homebuilders industry.

Conclusion. We currently have 46 active projects in the various markets where we operate.

In this third quarter, we will begin construction on two projects in Mérida, marking ARA's entry into a new market and a significant step forward in our growth and geographic diversification strategy. Both developments are expected to generate their first title transfers sometime in the third quarter of 2027.

The consistent results over the past six quarters warrant increasing confidence that we will achieve the targets set at the beginning of the year. In the second half of the year, we will continue to concentrate on the disciplined execution of our strategy and on meeting the goals set for 2026, while maintaining our focus on profitability, cash flow generation, and value creation.

Thank you, and we will now move on to the questions and answers.

Hello, good morning. Thank you very much for the call and for taking my questions.

I have two of them. The first one is what pace of home sales do you expect for the Tijuana project, and when do you estimate that the mix of affordable entry-level homes as a percentage of units will stabilize?

My second questions is regarding the two new projects in Mérida. What is the initial investment amount in this place, and what are you currently seeing in Mérida that is prompting you to enter that market?

Thank you, Carlos. Yes, as we mentioned, we are well we open a new project in in Tijuana is to serve the affordable entry-level segment.

It it's already in in operations, with title delivering having commenced in early July. It's a very it has been a very good market for us, and for this second half, we expect to title around 400 homes in this project.

It it's going to be significant in this second half. We as we mentioned in the previous conference call, we expect mainly in in in this second half of the year, we expect to see a recovery in the affordable entry-level segment to be at the end of the year around 28 to 30% of our revenues.

Your your second question, well, we are very happy to enter, it's our first entry to to this market in Mérida. As Mérida has a very good demand of of housing.

These projects are also for affordable entry-level segment. An important aspect is that it's our first project with a land contribution scheme or joint venture, whereby the land is provided by the land owner.

This approach is very favorable from an from a working capital perspective. The investment is not going to be significant because we are not buying the the land.

That's that's very positive for our cycle. The master plan is around the six 650 units units, it's smaller than the projects that we usually have for this segment.

That's what I can tell you about Mérida,

Carlos. This 650 units is about two projects, right?

Yes.

Got it. Thank you very much, and have a great day.

Thank you, Carlos, to you.

Hi, Alicia. Thank you very much for the call.

I'm sorry, I'm not sure if this was related to the prior question, but in the reports, you mentioned that during this quarter, you had some costs related to houses that you haven't titled yet. Is it possible if you could provide maybe a number or some figures related to what the impact of titling those house could be reflected for the next quarter's EBITDA?

Yes, Anton. Hi.

For this second half, we expect a recovery in the gross margin and in the operating margin. We have a number of projects with a fixed cost that will start generating revenues in this second half of the year, not only in Tijuana, also we have the projects in Puebla and also another project in Morelos.

That's an important consideration. At the end of the year, we expect to have around a gross margin of around 26%.

Also is not the main reason, but also it's important to tell you that we have a few projects in mainly one state where we haven't been able to fully pass on inflation-driven cost increases, as we didn't want to slow the pace of sales. In those cases, maintaining a strong sales momentum has been the priority, even if it means some pressure on margins, but is not a significant impact in our gross margin.

Something important to consider is that over the past year, home price or the housing inflation has been above about 200 basis points above general inflation. In some projects, we can transfer these increases in our costs, but there are some specific projects where it's possible, but as I mentioned, we don't want to slow the pace of sales, no?

Mainly, it was hurt our gross margin because as I mentioned, we have fixed cost in four projects that didn't have titles in the first half of the year, but we are in fact in some we are already titling house.

Very useful, Alicia. Thank you.

Thank you, Anton.

Hi, Alicia. Thank you for your time.

I just have one question. During previous conference calls, you mentioned that you were assessing whether to develop or monetize the non-housing land bank.

Could you share where you stand today, also are there any regions that you are currently prioritizing?

Sorry, Enrique, could you repeat, because

Yes, of course. It's about that in previous conference calls, you mentioned that you were assessing whether to develop or monetize the non-housing land bank.

Could you share where you stand today?

No, we don't have any news on that. We are working on that, but no, there's no news for at this moment.

Okay. Thank you.

Thank you, Enrique.

Thank you, Leslie. We don't have questions in the webcast.

Thank you very much for your interest in Consorcio ARA.