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

This call will be also transmitted by a webcast accompanied by 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 must be considered forward-looking statements as defined by the Private 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 request until then to open the queue for questions.

Results for the first quarter of 2026 compared to the first quarter of 2025: We began the year with solid financial and operating results, a performance consistent with our expectations. In the first three months of the year, revenues, EBITDA, and net income grew strongly, advancing 23.6%, 35.4%, and 12.2% respectively over the first quarter of 2025.

In addition, we generated positive free cash flow to the firm of 62.5 million pesos, and our working capital cycle continued to improve, shortening by 46 days. Total revenues amounted to 2.8 billion pesos, 2.21 billion of which were housing revenues, 24.1% more than in the same period of last year.

A total of 1,591 homes were sold, 10.3% higher than in the first quarter of the previous year, resulting in an average price of 1,390,300 pesos, a 12.5% year-over-year increase. The double-digit 24.1% growth in housing revenues was driven by the middle-income and residential segments.

Middle-income home sales totaled 1.05 billion pesos, an increase of 21.4%, and residential revenues totaled 605 million pesos, a notable 64.9% growth, largely driven by a new development we opened at the end of last year. Meanwhile, affordable entry-level housing revenues came to 559 million pesos, up 1.4%.

Revenues from other real estate projects in the first quarter of this year came to 70.6 million pesos, a growth of 8.1% compared to the first quarter of 2025, due to higher revenues both from the sale of commercial land and from shopping center lease. In the revenue mix, affordable entry-level homes accounted for 24.5%, middle-income homes 45.9%, and residential homes 26.5%, while the remaining 3.1% came from other real estate projects.

In the first quarter of 2026, operating income totaled 230.4 million pesos, a 26.7% increase compared to the first quarter of the previous year. The operating margin was 10.1%, up 30 basis points.

As I mentioned at the start of this call, the first three months of the year saw a 35.4% growth in EBITDA to 332.2 million pesos, attributable to both the increase in revenues and the 160 basis point reduction in general expenses in proportion to revenues. Thus, the EBITDA margin was 14.6%, a year-over-year expansion of 130 basis points.

Net income totaled 201.5 million pesos, up 12.2%, with a net margin of 8.8%, 90 basis points below the first quarter of 2025, largely due to the decrease in interest income. Financial position as of March 31st, 2026: Cash and cash equivalents totaled 2.02 billion pesos, 3.9% lower than at the close of 2025, due primarily to the payment of principal and interest on the debt.

Accounts receivable ended the first quarter of the year at 769.5 million pesos, 8.4% higher than on December 31st, 2025, due to an increased volume of homes titled in the last weeks of the quarter. Accounts receivable turnover was 32 days.

Total inventories as of March 31st, 2026 amounted to 19.57 billion pesos, a slight 1% increase. On the same day, cost-bearing debt came to 2.59 billion pesos, a 2.6% decline from the close of 2025.

Short-term maturities, meaning debt coming due in the next 15 months, made up 63.5% of cost-bearing debt, and long-term debt, 36.5%. As we mentioned in our February conference call, we will be refinancing the ARA 23X notes for 1.2 billion pesos, which come due on November 25 of this year.

As of March 31st, 2026, 65.5% of our cost-bearing debt was in the form of the ARA 23X and ARA 21-2X notes, 12.8% were simple unsecured bank loans without real estate collateral, 11.8% were simple secured loans for our shopping centers, and the remaining 9.9% were lease liabilities. Net debt at the close of the first quarter of the year was positive by 569.2 million pesos.

As we commented yesterday, our strong results were underpinned by the financial strength we are known for. As of March 31st, 2026, the debt-to-EBITDA ratio stood at 2.08 times, and the net-debt-to-EBITDA ratio at 0.46 times, both slightly lower than at the close of last year.

The interest coverage ratio was 4.07 times, and if we base this ratio on coverage of net interest, meaning interest expense less interest income, it would be 7.41 times. On February 27, Fitch Ratings reaffirmed Consorcio ARA's long-term national scale rating of AA(mex) with a stable outlook, as well as AA-(mex) for its issuance of long-term bonds with ticker symbol ARA 21-2X.

In reaffirming these ratings, the agency cited the company's market position, its track record in the industry, and its solid financial position, all of which will provide it with flexibility to address economic conditions and industry-specific challenges. This report can be viewed on our corporate website.

Housing industry performance: According to Mexico's National Institute of Statistics and Geography, INEGI, as of February 2026, in annual terms, overall industrial activity weakened by 1.3% compared to the same period of last year. In contrast, the construction industry saw a growth of 1.2%, and the building subsector, which includes housing and industrial space, grew by a slight 0.1%.

According to data from the Unified Housing Registry Group, 115,586 homes were registered in the first quarter of the year, a significant 135% increase over the same period of the previous year, driven primarily by the registry of homes under the federal housing program, and 29,438 homes were produced, 3.2% higher. Regarding mortgage lending in January of this year, based on data from SEDATU, INFONAVIT granted 11,893 loans for the purchase of new homes, which is a drop of 11.7% compared to the same month of 2025.

These loans represented an investment of 9.47 billion pesos, a 3.2% decline. The average size of a new home loan in January of 2026 was 798,000 pesos, a 9.6% increase compared to January of the previous year.

FOVISSSTE, for its part, granted 794 loans for new homes in January of this year, 10.7% less than in the same month of 2025, and the investment in these totaled 890 million pesos, a slight increase of 0.8%. The average size of a loan granted in the first month of 2026 was 1.12 million pesos, which was 12.9% higher than the same month of last year.

As for commercial banks' home financing, in January of this year, 5,196 mortgages were granted for the acquisition of new and used homes, a 10.3% reduction compared to the same month of 2025, and the investment in these totaled 13 billion pesos, a 6.8% decrease. The average size of a loan granted in the first month of this year was 2.5 million pesos, 3.9% higher than in January 2025.

In the first quarter of 2026, 56.6% of our revenues came from homes financed by INFONAVIT, 11.9% from FOVISSSTE, and the remaining 31.5% from commercial banks and homes purchased without financing. Shopping centers: Our shopping centers division also reported very positive results across its key indicators.

In the first three months of the year, revenues came to 136.7 million pesos, 8.6% higher compared to the same period in 2025, while NOI amounted to 97 million pesos, a growth of 11.3%. 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 March 31st, 2026 was 94.5%, remaining at a very competitive level.

Main resolutions passed in the annual general shareholders meeting: On April 22nd, Consorcio ARA shareholders met for the annual general extraordinary and ordinary meeting. Among the most important resolutions passed were: a dividend payment totaling 200 million pesos, equivalent to 22.1% of our 2025 net income.

The dividend per share amounts to around 0.164584 pesos per share, a yield of 4.4% based on the closing price of 2025, which was 3.74 pesos. This dividend is paid out of the company's retained earnings from pre-2014 fiscal years account and the net fiscal earnings account, which means is not subject to tax withholding.

You may recall that Consorcio ARA has a policy of paying out dividends to its shareholders equivalent up to 50% of net income from the prior fiscal year, provided there is a balance in the net fiscal earnings accounts and it's generating positive free cash flow. Shareholders also voted to approve the cancellation of 2,711,375 shares acquired using the stock repurchase fund, representing 0.22% of our capital stock.

After that cancellation, our capital stock consisted of 1,215,182,851 shares. Conclusions: Encouraged by this particularly strong start to the year, we will continue our disciplined focus on meeting our goals.

The fundamentals of the housing industry remain solid, as measured by housing demand and the housing shortage in Mexico, as well as the availability of mortgage loans. Thank you, and we will now move to the questions and answers.

Hi, Alicia. Thanks for the call and congrats on the results.

Two questions from my side. The first one is regarding the Vivienda para el Bienestar.

Have you seen any new developments or things emerging from the program? If so, would you be interested in participating?

My second question is regarding the dividend payment. Do you have any expected timeline for the payment?

Thank you.

Thank you, Andrés. Regarding the government affordable housing program, yes, we are very interested, and in fact, in this second quarter, we are going to announce news about it.

As we have mentioned last year, we are excited about the possibility of contributing to the government's goal. We have experience, land reserve, financial strength to make this happen.

It's very highly probable that in this second quarter, we are going to announce something, Andrés. Regarding dividends, do you want to know the date of payment?

Yes.

Okay. Thank you, Andrés.

In fact, we are figuring out the payment date, and it will most likely be sometime in the third quarter. Obviously we are going to announce also on time the payment date.

Great,

thank you for the details.

Thank you, Andrés. Have a nice day.

Good morning, and thank you for taking the questions. First, on residential, revenue was up 64.9% year-over-year.

How much of that was driven by new demand, and how much was simply related to the timing for higher ticket deliveries? My second question is on working capital.

You improved the cycle by 46 days in the quarter. What is the target by year-end 2026, and what are the main levers to keep improving cash conversion?

Hi, Carlos. Regarding your first questions, well, the performance of residential segment in this quarter, we had that increase because a new development located in a state where we have consistently achieved strong results.

I can tell you this is why we have that incredible increase in this segment. Also just to tell you, the affordable entry-level segment we expect to growth in the coming quarters because, as we mentioned in previous conference call, we completed a very successful development in Tijuana, and also the good news is that we have already opened a new one.

In fact, we expect to start generating revenues in this second quarter from other project in the same city of Tijuana. Regarding middle income, the increase was mainly due to the third stage of a development located in the State of Mexico.

Our target is to have around in this year and in the coming years is to have around 30% of our revenues coming from affordable entry-level segment, around 40% of middle income, and residential it could be 25% or a little higher, and the rest in other real estate projects, Carlos. Regarding our reduction in the working capital cycle, it's continued reducing as we have been increasing our revenues.

We are able to continue with this reduction, we expect to have the same rhythm that we have seen in the last two quarters.

Perfect. Thank you, and have a good day.

The same, Carlos. Thank you very much.

Thank you, Leslie. It's Elisa from BTG Pactual: "Could you provide more detail on which regions drove the continued revenue growth this quarter?"

First let me answer your first question. In this quarter, which regions?

It's important Nayarit, also Quintana Roo, and obviously the State of Mexico, and also Guerrero contributed in a good proportion. The second is also regarding the 2 million square meters land reserve allocated to non-residential projects, "Do you have any visible timeline or expected timelines?"

No, Elisa, at this moment we don't have an specific plan. We are working very hard on that, but is it still very premature to tell you an specific plan.

The important thing is that it's land that the value is very very important, very high. There are no more questions in the webcast.

Please, Leslie, can we finish the call?