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Good morning. My name is Doug, and I will be your conference operator today. At this time, I would like to welcome everyone to FibraHotel's 2018 Fourth Quarter and Year-end Earnings Conference Call. FibraHotel issued a quarterly report on Tuesday. If you did not receive a copy via e-mail, you can find it on the website at www.fibrahotel.com or e-mail gbravo@fibrahotel.com.
Before we begin the call today, I would like to remind you that forward-looking statements made during today's conference call do not account for future economic circumstances, industry conditions, company performance and financial results. These statements are subject to a number of risks and uncertainties. All figures included herein were prepared in accordance with the International Financial Reporting Standards and are stated in the nominal Mexican pesos, unless otherwise noted. Joining us from FibraHotel are Mr. SimĂłn Galante, CEO; Mr. Eduardo Lopez, General Manager; Mr. Edouard Boudrant, CFO; and Mr. Guillermo Bravo, CIO.
With that, I'd like to turn the call over to Mr. SimĂłn Galante. Sir, please begin.
Thank you, operator, and good morning, everyone. I am going to begin today's call by providing an overview of the fourth quarter and year-end 2018 results. And we'll then turn over the call to Edouard Boudrant, our CFO, who will discuss our financial results in more detail. And we will open the call for questions and answers.
During the fourth quarter of 2018, we continued operating in a difficult and volatile market environment, which we have seen since May 2018. For this quarter, RevPAR of the stabilized same-store portfolio increased 4.9% year-on-year, driven by an increase in ADR of 5.9% and a decrease in occupancy of 62 basis points.
For the total portfolios, including Cancun, RevPAR increased 4.7% year-on-year as shown by these numbers. RevPAR growth has been lower than what we have seen in the previous years as companies continue to defer large new investment projects and look to control discretionary spending in the short term, thus impacting hotel demand.
Even though we've seen these dynamics across segments and geographical regions, on the positive side, we continue to see growth in the full service segment as our hotels continued to gain market share as well in the Northeast Mexico, mainly in Monterey market, where there is a favorable supply and demand dynamic.
On the other hand, RevPAR remained flat year-on-year for select service hotels and declined in the Mexico City metropolitan area. The Mexico City market and the select service segment has been very positive for FibraHotel in the last few years and during the quarter, came down on a comparable basis. And they have reached historically high numbers.
The non-stabilized portfolio continued its ramp-up process and added Fiesta Americana Satélite and the Live Aqua San Miguel de Allende hotels near year-end. Occupancy for these hotels for the quarter was 45%. So there is still substantial embedded growth for these properties.
For the full year 2018, RevPAR of the stabilized same-store portfolio increased 6% versus 2017, driven by increase of ADR of 5.5% and an increase of occupancy of 42 basis points.
On the mix side, we continue to see difficult market conditions, which to this date have not improved. The market in Cancun continues to be highly competitive, and rates have been pressured as there have been slower growth in U.S. groups and U.S. travelers. Hotel have substituted international for local travelers and even though occupancy have remained strong, ADR has been pressured as local travelers are more rate sensitive and they have also have a shorter booking window, which limits hotel abilities to optimize rates.
Even though the long-term fundamentals of the market and the consumer value proposition remain very good, we expect further headwinds in the short term for additional supply coming in line as well as sargassum, which is expected to be significant again this year. As you know, we are partially protected from this impact as we have a minimum rent guarantee for the hotels in dollars and still expect the hotels to perform above the minimum return levels.
From a financial perspective, for the full year 2018, we have over MXN 4 billion in revenues, EBITDA at MXN 1,155 million and AFFO of MXN 935 million, representing a year-on-year growth of 20%, 28% and 40%, respectively. This was mainly due to the addition of the Fiesta Americana Condesa Hotel at the beginning of the year as well as the continued ramp-up of the recently developed portfolio.
The full year results were a combination of a strong first half of the year, coupled with a complicated second half of the year, which has continued to this date.
AFFO per CBFI for the year was MXN 1.05 flat versus 2017 as the operating income growth was offset by a higher financial expense and a larger CBFI base. During the year, we made solid progress toward finishing the development cycle as we opened 3 hotels with 522 rooms, and currently have only one hotel under development, which is progressing in time and on budget.
During the fourth quarter, we opened the iconic Live Aqua San Miguel de Allende Hotel with 153 luxury rooms, where we also hosted our Investor and Analyst Day event. As many of you were able to see firsthand, the hotel is highly valuable and strategic addition to our portfolio.
During 2018, we reported the total amount of the repurchase plan of 5% of our stock outstanding CBFI. We were very active in the fourth quarter and in early 2019 canceled 32.6 million CBFI. We continue to focus on having a solid balance sheet with a 21% loan-to-value and announced the distribution of MXN 0.2622 per CBFI for the quarter.
Even under uncertain market conditions, we firmly believe in the quality of our portfolio and our team to achieve the best possible results.
With that, I will now pass the call over to Edouard Boudrant, the CFO of FibraHotel, to discuss the final and operating results of the third quarter (sic) [ fourth quarter ]. Thank you, and good morning.
Thank you, SimĂłn, and good morning, everyone. As you know, FibraHotel started the fourth quarter with 84 hotels in operation and closed it with 85 hotels. On a comparable property basis of 74 hotels for the 2018 stabilized portfolio, which was fully operational during the fourth quarter of last year, ADR increased by 5.9% at MXN 1,189, and occupancy rate decreased by 62 basis points at 66.4%.
Overall, RevPAR increased 4.9% at MXN 789. The Fiesta Americana Condesa Cancun Hotel had a net package ADR of MXN 4,373. Occupancy was 71.8%, and net package RevPAR was MXN 3,142, representing a 0.8% increase against the fourth quarter of 2017.
The ramp-up portfolio comprised with 10 hotels shows occupancy rate of 45.5% during the quarter, ADR of MXN 1,553 and RevPAR of MXN 706.
Total revenues for the quarter were MXN 1,075 million, of which 75% was room revenues, 18% was food and beverage revenues and 7% was leases and other revenues. During the quarter, the rent of Fiesta Americana Condesa Cancun stood at MXN 44 million. Compared with the same quarter last year, our total revenues increased by 15%, while lodging contribution for the quarter stood at approximately MXN 361 million, and our EBITDA reached MXN 280 million, increasing, respectively, by 22% and 13% versus last year. The lodging contribution margin for managed hotels reached 28.9% versus 30% the same quarter last year. The contribution margin for stabilized hotels stood at 30.8%, and the contribution margin for non-stabilized properties stood at 21.3%.
Please note that the 5 recent full-service hotel as a result of the satisfactory ramp-up period and the strong cost control showed occupancy rate of 70% and a contribution of MXN 48 million, representing a 33.4% margin. The EBITDA margin reached 26%, decreasing 40 basis points versus the fourth quarter of last year.
On a comparable basis and excluding noncash expense related to the employees' compensation plan, EBITDA margin should be 27.6%, increasing 114 basis points versus the fourth quarter of 2017. On a yearly basis, EBITDA margin was 28.1% versus 26.2% in 2017.
During the quarter, we registered noncash item in our P&L statement. A MXN 16 million expense related to the employee compensation plan authorized by the shareholder in 2017, a MXN 41 million expense related to an impairment debt we have made on our 2 hotels in Ciudad Del Carmen, a MXN 143 million income related to the fair value of our leased properties.
Regarding our leased properties, we decided, alongside with our auditor and the audit committee, to register all this property under the fair value method, with a net impact of MXN 402 million, MXN 244 million being registered in the shareholders' equity and the MXN 158 million being registered on the P&L statement, with no impact on the cash flow generation.
On a yearly basis, we will update the fair value of the 4 properties: Fiesta Americana Condesa Cancun, Live Aqua Boutique Playa del Carmen, Fiesta Inn Perisur and Fiesta Inn Cuautitlan. The net effect of the fair value under impairment debt is an increase of almost MXN 360 million in our asset base, a 2% increase.
We provided a full disclosure on this noncash element in the press release available on our website yesterday.
We closed the quarter with net debt of MXN 3 billion, gross debt amounted to MXN 3.5 billion. We finished the quarter with a very conservative LTV ratio of 21%.
Please note that at the end of the quarter, almost all indebtedness is covered with derivative instruments. During the quarter, the debt position generated a financing cost of MXN 85 million. In accordance with the IFRS, financing costs related to development projects are capitalized as part of the investment in each project.
During the quarter, approximately 38% of the indebtedness was linked with development projects. Therefore, MXN 34 million of interest were capitalized. Once each development is open, its interest expense will not be capitalized anymore.
For the year 2019, capitalized interest should decrease as we will only capitalize interest related to the Fiesta Americana Viaducto hotel. Therefore, interest registered in the P&L should increase substantially.
During the fourth quarter, we continued the development of our cash position -- the deployment of the cash position with MXN 176 million invested, the development portfolio was MXN 124 million and MXN 69 million for the repositioning on [indiscernible].
In order to give more details on the portfolio, 64% of our assets were stabilized MXN 11 billion and contributed 80% of the total lodging contribution. Fiesta Americana Condesa Cancun represented 18% of our assets, MXN 3.1 billion and contributed 12% of the total lodging contribution. 16% of our assets was in ramp up or development, MXN 3.2 billion, and contributed only 8% of the total lodging contribution.
Please note that FibraHotel will pay a distribution of MXN 206 million equivalent to MXN 0.2622 per certificate. On a yearly basis, the distribution is MXN 1.05, unchanged versus the 2017 distribution.
Additionally, we continue to repurchase our own CBFI. During the full year, we repurchased 5% of the CBFI, representing more than 41 million certificate at the MXN 10.62 average price. In January, we canceled more than 32 million CBFI.
At this point, I would like to open the floor for the Q&A session. Operator, we're ready to take any questions.
[Operator Instructions] Our first question comes from the line of Marimar Torreblanca with UBS.
My question relates to your buybacks program. I see that you were pretty active in the 4Q, and you mentioned in your press release that with this, you have finished the program that you currently have approved. Is it something that you're thinking to get another approval for an additional 5%? And if so, would you continue to fund buybacks with that, which seems to be what you did in the 4Q? Or are you thinking about asset recycling perhaps at some point?
So basically now -- thank you for the question. We have an authorization for a buyback program for the next year. So basically, we can, during this year, start to buy back shares up to 5% of the capital. As of today, we do not have the -- buy back any share during the year so far. So we are monitoring the daily price on the market. On the stock level as of today, we -- the position of FibraHotel is to hold the share-back program.
Okay. And just a real quick follow-up. So no asset recycling on the pipeline right now?
Marimar, we always consider options. Obviously, we are going to look at different assets and different opportunities through the year, but we're completely open of selling any asset that makes sense either strategically or to reprogram our portfolio in other ways or specialize in something else. So we will always look at it. And we will, obviously, always look at that option moving forward.
Our next question comes from the line of Sheila McGrath with Evercore.
I was wondering if you could talk about the electricity expense challenge in Mexico and your plans to try to manage the -- that expense going forward.
Sheila, thank you for your question. So I think you touch a very important point, which is the electricity costs, which have pressured margins. At this point, what we see is that electricity costs has substantially increased, especially in the second half of the year, and the electricity prices have basically, since the end of the year or since near the end of the year, reached their peak levels and have started to come down a little bit. But we're still working very hard with the advisers that we hired in order to find a long-term solution, so that we can better manage both our projects and have more electricity security. As we have mentioned in the short term, what we did and what we have done is an energy saving program. And so what we did is we did 100% LED lighting. We're changing water consumption, heat recovery valve. So we did a lot of the low-hanging fruit in terms of electricity and, in general, utility consumption. And we're still working on a medium to long-term solution from electricity providers. There have been added uncertainty in the subject because we're not sure, either us or our advisers, what the new stance in terms of CFE or some of those utilities are going to happen in the future. But it's something that we're devoting a lot of time to get right.
Okay. That's very helpful. And then, could you tell us how the Live Aqua in San Miguel is doing versus your expectations?
Thank you. So I think, on the positive side, San Miguel de Allende, the market has been very, very good, and we continue to see a lot of a very dynamic scenario. As we have expected, I think it's very early to tell. It's coming into our expectation. So a little bit below but mainly because in the ramp-up period, we knew that there was going to be a period where we got very low group volume in the week. So on the weekends, the occupancy have started going up. We have been able to maintain the rate at where we want it, and the customers have been able to pay that rate and come out with good experience about the hotel. The area that needs more work, especially in this hotel, is the weekday occupancy, and getting all the groups and events is probably going to still take another 12 to 18 months before we start seeing occupancies that are where we underwrote them. So on the weekdays, we knew it was going to happen. And on the weekends, the markets have been very strong. And we see better results every week.
Okay. That's great. And one last big-picture question. You did take an impairment on some of the -- on the hotel that is located in some security-challenged area. Just wondering how you think the new administration is focused on security in Mexico and also Mexico as a tourist destination? Are you getting a good feeling from the new administration in this regard?
Sheila, we've seen movement, as you've maybe read on the press, that the Army is taking a lot of off-center in the issue of security in a lot of the cities that we're present. But we're still on the fence on looking at the real KPIs of security coming up. We are more hopeful that having information that clearly states that this is going to change. So we are hopeful that the measures that the new government are providing is going to actually bring more security to the area. But it's still too early to give a responsible opinion from management on it. We're seeing huge changes in security. We hope so and we will continue to monitor, and we will continue to give you the information, but at this time, it's too early to say.
And just to get on the second part of your question, Sheila, regarding the impairment, what you saw is we did an analysis of the Gulf region and where we landed is that 2 of the hotels did have a lower expected fair value than what we were carrying in the last books. These were the 2 strategic hotels in Ciudad del Carmen, and Ciudad del Carmen is where we have seen a slower recovery. You saw that hotels in the [ Hermosa ] and other regions were not affected as much, and we have seen those regions with the new initiatives impairments and by the government, and they're focused a lot on the southeast. We have seen those [ cities and ] regions start to come up from historically low numbers. But we continue to think that at some point, all of the hotels in that region will come to the level of the rest of the portfolio.
Our next question comes from the line of Froylan Mendez with JPMorgan.
I have 2 questions, if I may. What would have been the amount of the compensation plan if the full goal was achieved? And can you remind me what were the metrics for such compensation plan? And if this is going to be paid with shares held in the treasury?
Froylan, thank you very much for the question. So basically, in 2017, the shareholder assembly agreed for our plan. We were talking about 1% of the capital at this time. That means 5 million shares. As of today, it was a plan based on 2016, 2017 and 2018. As of today, we have the result of all the performance of FibraHotel. And based on the metrics, the first metric, which was weighted 60% of the total, it was a target of AFFO per share. The second metric, which was 20% of the plan, it was based on the benchmark, on the performance benchmark in the submarket. And the third one, which was 20%, it was the total shareholder return. So basically, what we've seen as of today with the result is that 2.9 million certificates should be granted to the management. It represent 48% of the initial plan, and it represents 0.3% of the current capital -- current outstanding CBFI. And the total cost that we analyzed in accordance with Deloitte is MXN 34 million cost. Basically, we're talking on an average cost of certificates of MXN 14. We registered MXN 16 million in 2018. We will register MXN 8 million in 2019, MXN 8 million in 2020, and less than MXN 1 million in 2021. And it's all noncash expense because all the compensation plan is distributed through certificate with a vesting period from 2019 to 2021.
Okay. And if I may, an additional question. Once that you have a lot more of your hotels operating and a little bit more stabilized and given the outlook for tourism next year and especially on the [indiscernible] region with all the fuel shortages, et cetera, what could we expect for RevPAR growth for 2019?
As you know, Froy, we don't actually give out a forward-looking number. But what I can tell you is that the environment is very complicated. January was a very difficult month due to the gas shortage that we saw all around Mexico City and basically all around Mexico. We have a lot of plans from big companies that were going around in January that they were canceled because they didn't have assurances of fuel to come back. So we see a very complicated environment for the first quarter. February is slow as well. We hope March will pick up. So we see on the vision we have today, we see a very complicated environment for at least the first quarter and maybe second quarter of 2019.
Our next question comes from the line of Alan Macias with Bank of America Merrill Lynch.
Just one question. If you can provide us with your exposure to the travelers from the federal government, what percentage represents your portfolio? And if at this time, if you can provide us of your outlook for this segment, if it will grow or you think it will have a lower growth going forward?
On our business -- thank you, Alan. On our business hotels, we have an exposure of about between 15% and 20% of government travel through our business hotels in some of the cities. Obviously, I'm telling you the average. Some hotels have more. Some hotels have less. But there's been a big restriction on government travel through at least the 1.5 months that we have from 2019. And we saw on Q4 of 2018 a lot of -- a big reduction on this traveling. So we are worried about that, and that's one of the points that we're worried about, and that's why we're saying that the first and second quarter of 2019 look very tough on the business hotels on that issue, combined with other issues that pertain on a lot of projects being stopped or paused due to economic or new government uncertainty. And until that is set up, we will have less travel from that segment and other segment.
Also, too, on the segment side, Alan, I think we expect something similar to what we saw this quarter. We expect to continue to be more resilient in the limited service as some travelers stray down, and we continue to be -- have good results in the full service as our hotels have been very well-received, and they continue to gain market share. And where we see the most important headwinds are select service, which we haven't seen growing and is a category where a lot of the new inventory has come in line, and also in resorts and specifically in Cancun, where we also see some headwinds ahead. We expect to also grow less or decrease than what we had in the other sectors. So basically, those are the 2 sectors we feel more positive about and 2 sectors which will have less growth.
Very, very clear. And just one more question on Cancun. Regarding the seaweed problem, I guess, last year, do you know how many weeks the seaweed was on the beaches and represented a problem? Do you have any indication of that?
It was around half or like 25 weeks, but the problem wasn't really only the amount of time that it was there, but the quantities that it came. Generally, it has been very normal for it to come, but the quantity was what really -- was a lot more this year. And unfortunately, what we see -- and there's some institutes that track this from satellite images, they expect this year for the seaweed to continue to be very strong. I think, last year, it caught the destination a little bit by surprise. This year, we've seen or we've heard a lot of movement in terms of hotel owners and government authorities to be proactive and to try to find a solution. So people are worried that it's going to be more, and it's a difficult solution to find, but there's a lot of people trying to solve the issue.
And can you just remind us, in order to resolve this issue, I guess, did the government and the private sector, did they work together? Or was it the private sector that was more involved?
At the end of the day, Alan, it's an issue. It's a nature issue that at times since -- I've been going to the Cancun region for more than 30 years, and there has always been different amount of sargassum. For the year in 2018, and it seems like 2019, it's been an extraordinary production of sargassum. So there's not a clear solution at this point. It will have a lot of participation from everybody and good ideas from everybody. But at the end of the day, we will have to wait in order to see if this is only a 1-, 2-season issue of this large amount, but a lot of people are working on finding different options and solutions. Personally, in the hotel, we have an all-day, all-morning tractor taking out the excess sargassum, and it has worked okay, but it's not the whole solution of an issue. It's an issue. It's caused by nature, and we will be very proactive in seeing how we can solve that, but it's going to be an issue, unfortunately, that's going to be around at least for 2019.
[Operator Instructions] Our next question comes from the line of Adrian Huerta with JPMorgan.
Just a quick question on the asset revaluation. It seems like the assets that you revalued during the quarter were revalued by around 10%. What would be the revaluation on the rest of your assets if you were to put those assets on market values?
Adrian, thank you very much for your questions. So basically, as you remember, since the beginning of FibraHotel, the IFRS rules found that we have to register the assets under management contracts in the IAS 16, which is basically property, equipment and plant. And the rule is to register the assets as historical costs and we have to depreciate these assets. Alongside with that, we have some outlets in -- with a lease contract. As of today, we are talking about 4 hotels, which is Fiesta Inn Perisur, Fiesta Inn Cuautitlan, Live Aqua Boutique Playa del Carmen and Fiesta Americana Condesa Cancun. In IFRS, we have to register this asset under the investment property basis, which under the rule is to register at a fair value. Historically, we didn't take this option because it was not representing a large percentage of the asset base of FibraHotel. But when we acquired the hotel in Cancun, the auditors told us that it was an obligation to register on a fair value basis. That's why you see, since this year, a new line in the balance sheet, which is investment property. And at the end of the year, we made a fair value of 3 hotels, which is Fiesta Inn Perisur, Cuautitlan and Playa Del Carmen, and we run the fair value analysis. And so basically, on a yearly basis, we will have the fair value of these hotels. And regarding the other hotels, 81 hotels, we have the possibility to make a fair value. It's something that we analyzed in the past, but it's an option that we didn't take into account because the impact could be a strong increase in the asset base of the whole portfolio. So basically, we felt comfortable as of today in only doing the fair value analysis on the leased properties. Am I clear as well?
So just one complement, Adrian, is that, unfortunately, this is not the best portfolio to be able to extrapolate the difference between the book value and the real value just because these hotels are -- were historical legacy leases, and so we haven't seen the full pass-through between the value of the lease and the actual money that the hotel is generating until those hotels' lease agreement is finished. And so what you see here is you basically see the increase that these lease agreements have had over time since we acquired the hotel. It's a different dynamic than what we have seen with other hotels where we have been able to get a lot more of the benefit of the growth in RevPAR for these past 5 years.
And just to complement, the big increase is related to Fiesta Inn Cuautitlan and Fiesta Inn Perisur. Why? Because in 2013, when we had the contribution of these hotels, these hotels are paying us USD rent. At the time, USD was MXN 13. As of today, it's MXN 19. So basically, the rates in pesos increased dramatically. And when we make the fair value, this is the strong impact.
Our next question comes from the line of Pablo Ordóñez with Itaú BBA.
A follow-up on the buyback program. Did you confirm that you will continue to fund the buybacks with debt and, therefore, distribute 100% of your AFFO? That's the first question. And a second one is regarding your interest expense line. Now that you will not be capitalizing a significant portion of the interest expense, what level of interest expense should we expect? And do you see room to refinance debt at lower levels now that long-term interest rates are declining?
So let me take the first part of the question and then I'll let Edouard answer the second part. And yes, what we mentioned is that at this point, if we buy back stock, we continue to expect it to be funded through new debt. And at this point, we -- if you remember, we still have a very comfortable debt position of 20% loan-to-value, or less if you count it on a net basis. And so at this point, we still feel that the program that we have authorized, which is 5% of the certificate and maybe represent, if we execute it completely, 400 million, that is where we will come at. And at this point, that's what we have. We continue to expect paying the AFFO. And in the future, if we either sell properties or change them, we'll communicate that and we will change. But at this point, we'll continue with the same methodology.
And regarding your question on the interest capitalized, basically, last year, we capitalized roughly 35% of the interest we've paid. And this year, in the business plan that we have, we should be capitalizing between 5% and 6% of the total interest because we just have one hotel under divestment. So basically, yes, we should see a strong increase in the interest expenses in the P&L. The first element is because interest rate increased during the last year, and second one is because we still are confronting a little bit more debt. And I think, this year, in the P&L, we should have interest -- paid interest of roughly MXN 300 million net interest left because we will have some interest expenses. And regarding the refinancing of the debt, as of today, we are very comfortable with the debt that we have. The amortization schedule is very comfortable for us. The derivative that we have are very, very efficient. I think that the total cost of debt at the end of the last quarter was a little bit lower than 8.3% all-in. So it's a good interest cost. But we -- yes, we are thinking in refinancing and to see how we can manage the debt with the uncertainty that we have in the -- for the next year on the -- it's an option that we are looking on. But what we have seen as of today that condition for taking new debt is not so attractive versus the cost of debt that we are carrying.
Our next question comes from the line of Armando Rodriguez with Signum Research.
Well, my question is related to the AFFO margins that saw increases this quarter compared to the AFFO and mainly due to the nonoperating adjustments after CapEx this year. And my question to you is if you can explain to us a little bit more these operating adjustments in order to know if this was an extraordinary distribution?
Armando, thank you very much for the question. So basically, the main adjustment that we've made between the FFO and AFFO, we are talking about all the preopening expenses that we had in Satélite and in Live Aqua San Miguel de Allende. We are talking about hotels, full service hotels and grand luxury hotels for the Fiesta Americana and for the Live Aqua. And such kind of hotels require a very strong effort in terms of tripling expenses. And we are talking about promotion. We've had promotion in the U.S. international for these hotels. So basically, it's a one-off item that we are incurring when we are opening the hotel. And we are talking about MXN 40 million for the MXN 60 million adjustment we've made. We have also other adjustment. We have a MXN 10 million adjustment that we've made, which is the FX impact on the USD debt that we have. We -- at the end of the third quarter, we took a USD 13 million debt, and with the depreciation of the peso during October, November and December, we have an impact of -- in peso. Basically, the debt increased MXN 10 million. It's noncash. It's not affecting the AFFO. It's not affecting the distribution. That's why we adjusted that. And also, we have some other adjustment, which is bank commission and something like that. That's explained the MXN 60 million of nonoperating adjustment we've taken to account in order to come to an AFFO of MXN 206 million.
There are no further questions in the queue. Thank you for participating in FibraHotel's 2018 Fourth Quarter Results Conference Call. If you have any further questions, please do not hesitate to contact FibraHotel's Investor Relations department. This concludes today's call. Thank you, and have a good day.