 Good day, fellow investors. I have started to analyze Cressud, which is a large Argentinian conglomerate that, as you can see, has a lot of parts and, part by part, will come to a final value for the company, which might be undervalued. We'll see at the end of the analysis. Today, I'll start with IRSA commercial properties, which is 86% owned by the mother company IRSA, which is, in consequence, 63.8% owned by Cressud. Part by part, I'll analyze everything and we'll see which one of those companies is a buy. Three companies are traded, Brasilagro, IRSA, and IRSA commercial properties and Banco Hipotecario are traded on a stock exchange. Note the companies traded on the NASDAQ and BYMA stock exchange with ticker IRCP. One ADS equals four common stocks. Total number of stocks is 126.31.5 million ADS. IRSA commercial properties, IRSA CP, is an Argentine real estate company that's mostly invested in malls in Argentina and 20% in offices, they lease office buildings. So, net income doesn't usually apply to these stocks because you have a lot of depreciation, so the best way to value something like that is through adjusted funds from operations. They usually metric to value also REITs. Then look at growth taxes and make a cash flow model for the valuation. What is the company doing? As said, 16 shopping malls, 80% of square area of gross leasable area and 7 office buildings with 84,000 square meters or 20% of area. As with real estate, it is always about location, location, location. IRSA CP is keen to show how its real estate is mostly in prime locations. If we look at this Buenos Aires map, we can see how the shopping malls are in the hotspots, close to the largest avenues, the richest avenues. So that's a positive, let's say. Further, there are some other values around the country, which we'll discuss later. Great locations lead to good comparative numbers. IRSA is the leader in the market share, has the highest ownership interest in the mall, highest sales per square meter, highest occupancy almost 99, 99% high EBITDA margin and lowest leverage ratio. This is something that I really like, lower leverage. The growth strategy is there according to the company. Argentina is underdeveloped. Well, it comes to shopping malls and there is still a great opportunity for growth. Now, if you look at shopping malls and retail, it's not that good in the US. That's not a positive long term. Europe, depending how you look at it, there are still high yields. Still people are buying, but the growth of online marketing is creating some fears. However, probably only channeling will be the future. Nevertheless, this is why I did an overview of Mercado Libre. You can check the video about that. There is still time until online shopping takes over, Brick and Morton, especially in Argentina, so no fear over the next decade that there will still be people coming to these shopping malls in Argentina. Further, the company has the Significant Land Reserve, where they are already building some projects and they can build new projects and expand on. All the growth should lead to a 6% increase in gross leisable area for malls and 57 for offices by 2020 from investments that are from investments that are already under development. This is an example of what they are building. Alto Palermo shopping mall and Catalinas office building, one of the hottest spots to build something in Buenos Aires. The EBITDA return on investment expected is 11.6%, which is okay given that the cost of debt is 8.75% on the largest and most expensive note and 5% on the two other development notes, but more about that in the debt part. All in all, Irsa CP has great plans that should expand the gross leisable area by 54% in the next five years. Further, there is a lot of more potential as there are additionally 245,000 square meters in potential developments and expansions. Without the potential expansions, the estimated investment necessary is already at 580 million, which is a big sum, but emerging markets growth potential and the company did really well in the past. We might see the company deliver also on the future project. Now finances and debt office leases are in US dollars while malls pay a base rent in pesos that is adjusted for inflation plus a percentage of sales. By the way, you can read all of this in the link below on my blog and research platform. Back to the money, they get of course leisable of the business, but they get a percentage of sales on the malls. So if the Argentinian economy picks up, they will really really pick up and increase their finances. Adjusted funds from operations in the last 12 months were 116 million. That gives us 3.68 per share or an 11.8 cash yield on the current price. If the company delivers on its growth plans, I would not be surprised with an AFFO at 6 in 2022, which would lead to a 20% potential future yield. The problem is that we don't know what will be the management's intention with that money, how will they distribute it through dividends or investments or who knows what in combination with the other two companies owning this, because it's all the same CEO Eduardo Elstazin. The dividends were significant and constant over the past year, with a deep during the deepest part of the Argentinian crisis in 2016, but still positive. 1.558 dividend per share, the last dividend gives a dividend yield of 5%, which is not bad given the growth prospects. The debt is not scary with a note due in 2020, other in 2023, however, they will probably issue much more debt to get to the 508 million necessary to finance their expansion plans. This should put a bigger debt burden on the company, but they have usually managed well their debt so they should do good in the future. Total assets are constantly revalued in relation to the depreciation of the peso and inflation, and those are at 54 billion Argentinian pesos or 2.6 billion at exchange rate. Of the last earnings report, 1 dollar equals 20 pesos, now we are at 27-28 pesos, so that goes fast. Shareholder equity 1.6 billion that should result in book value of 50 bucks per share. However, on the risk and rewards, REITs were the best performing asset class in the US over the past few decades, as Argentina is still an emerging market developing, so that's what we might see in the future in Argentina, especially if interest rates go down. The first and main risk with the companies related to the Argentinian economy, more spending is good, growth is good, everything the opposite is not good, as people will spend less in moths. Then there is also political risk, as who knows what can happen there, nationalization, prohibition of payment of dividends to foreigners, etc. etc. Up till a while, frontier market, you have to expect volatility. So, if I put the pipeline on hold, except for what has been built, I can expect adjusted funds from operations of 4 dollars per share. This should keep the dividend there as well as it is, and at a required return of 15%, fair value for the company for me would be 26%. Long term, if the Argentinian economy recovers food prices increase, IRSA, CP delivers on the growth, we could easily see adjusted funds from operations of 8%. On a 7% valuation, you get yourself a stock of 114 bucks, that would be the upside. On the downside, depending on sentiment, it might be volatile, but we are closer to the bottom here, I think. However, as always, be ready to the impossible with emerging markets, because the stock is yes below its peak, but it was a trading at 15 just a few years ago, so it might get back there very, very quickly. To note, the stock traded below 4, in 2009, so the revenues were 160 million on 77 million shares or 19 million ADS, the profits were negative, but not that much, so price to sales ratio of 0.5 wasn't a big deal back then. Now, everything is different, but we are more than what, 8 times, 7 times higher than 2009. I like the company like what's doing, but I would love a lower price, I'll put my fair value 20 and as I'm looking at a 20% earnings return from anything that I expect and I see in Argentina, given the growth, perhaps I can bring it to 26 as there will be growth from the project already in development and the company has really done well in the past 10 years. The market cap is 819 million, which means that the value of IHRSA CP is around 700 million, to be taken to the next valuation, which you can expect in the next video, IHRSA, the holding company that will later bring to Cresud. Thank you for watching, looking forward to your comments, I'll see you in the next video.