Good afternoon, and welcome to IRSA's First Quarter 2017 results Conference Call. Today's live webcast, both audio and slide show, may be accessed through the Company Investor Relations Web site at www.irsa.com.ar/ir and by clicking on the banner Conference Call. The following presentation and the earnings release issued last week are also available for download on the company website. After management's remarks, there will be a question-and-answer session for analysts and investors. At that time further instructions will be given. [Operator Instructions] Before we begin, I would like to remind you that this call is being recorded and that information discussed today may include forward-looking statements regarding the company's financial and operating performance. All projections are subject to risks and uncertainties and actual results may differ materially. Please refer to the detailed note in the company's earnings release regarding forward-looking statements. I will now turn the call over to Mr. Alejandro Elsztain, Second Vice President. Please go ahead, sir.

Thank you very much. Good afternoon, everybody. We are beginning our conference call of First quarter 2017 in page number two, and the main highlight for the quarter, you can see the financial and consolidated results, for the third quarter, we achieved revenue for almost ARS19 billion, and at last quarter we are dividing between Argentina and Israel 1.3 billion from Argentina and ARS17.4 billion from Israel. At the EBITDA level, we have achieved ARS2.5 billion, ARS0.5 billion from Argentina and 2 billion from Israel. At the net income level the loss for the quarter 782 million pesos again of 36 small gain of [36%] small gain in the Argentine side and a loss of 818 million from Israel and attributable to [Indiscernible] loss of ARS577 million. When we speak about Argentina business center we can see good results in the rental segment and Danny is going to explain deeper at all this growth that we have about the industry and properties growing at the reporters and comparing year-t-year. No results from sales and investment properties in this year comparing to last year [Indiscernible]. We are developing three big projects both Catalinas & Alto Palermo Expansion and there was a recent issuance of debt at EBITDA level $184 million at 7% and ARS384 million at [Indiscernible] almost 300 basis points. We cancelled all the short-term debt and in Israel side The Israel Business Center, IDBD, the subsidiary DIC that is the low IDBD accepted an offer to sell the stake of 40% of ChemChina of Adama and for that reason it's going to receive soon a lot of cash at DIC level and during the first quarter of IRSA, IRSA acquired from IDBD almost 9% of the DIC shares for $26.7 million. So now, I will introduce to Daniel Elsztain.

Thank you, Alejandro. Good afternoon everyone. On page number three, we can see some numbers about the shopping center portfolio. We can see that in this quarter we had a growth of 21% in pesos this is below inflation mainly explain by two factors, a small reduction of its acceleration of inflation and a small reduction in consumption. Occupancy levels remains very high at the 98%. Our total G&A grew up for 1,000 square meters if they are very small growth incorporation of a few charts in basically two shopping centers. And so the stock remains stable, occupancy remains very high sales we are not pesos and we are stable in visitors, we are having about 110 million visitors a year. The shops are performing that will be below what we estimated but still very good. On Page number four, the segment of office buildings we would see a very strong market, occupancy went to now we said that 100%. There is no vacancy at all in our portfolio thee price of the square meter is $25 per months per square meter we see a small reduction compared to this previous quarters but this is mainly to explained by the leasing of two floors in our cheapest building. It's not that the market is going down, it's contrary renewals, we are going up and we see the tragic rate stable and as trend going up. This again is a market that we collect in dollar they are little high in dollars. When we see our portfolio, we started the year with about 79,000 square meters we have a small reduction by selling two floor storey at the Intercontinental Plaza building. So now, we have 77,000 square meters, but when we finished the construction of the two new projects that we…

Thank you very much Danny. Good afternoon everybody. So going to next page Israel business center, the investment in IDBD, the latest development as Alejandro mentioned at the beginning, we are waiting for the closing of the ADAMA section. DIC accepted an offer from ChemChina’ to serve the 40% stake for $230 million in access of the total debt on debt acquisition on that ADAMA, so we are expecting a free cash for DIC for around NIS800 million in the coming days. Regarding Clal, the shares increased by 4% in the first quarter 2017 versus the last quarter, remember that here we value the positioning Clal at market value. So we would reflect on a quarterly basis, the volatility of the shares in our financial statement, remember that previously we had important losses coming from Clal, because of decrease in the share. In this quarter, we recognizes a gain of ARS181 million. Another important one regarding the issuance of debt of IDBD, remember that we issued debt to NIS325 million collateral by shares of Clal, unfortunately we went the justice to ask for permission on the shares on that additional work decline. So we have to cancel the issuance that we already payback NIS244 million and the remaining the 26% of the issuances is still subject to approval to place Clal shares. Below IDB, all some companies taped the local capital market in very good condition. DIC’s debt maturing in 2025 at 5.7% interest rate, PBC NIS600 million, NIS503.95 maturing in 2019. Park in CPI the same subsidiary of PBC [Indiscernible] that issued at NIS400 million at 3.1 [Indiscernible] 303.55 matured 2026. So this shows the liquidity in the Israeli market. So the company has good performance, has access to the market at very low interest rate. Another important view…

Thank you. The floor is now open for questions. [Operator Instructions] The first question comes from Jarrell Golotti with Morgan Stanley. Please go ahead.

My question is basically pertaining to the landbank; we know that you have a couple of projects that you have already started expansions and Greenfields but you have a very extensive landbank including Solaris and Santa Maria. And what I was curious to know is, has there been any update on say permitting or financing or anything of that sort as it pertains to the landbank and more specifically for the Solaris plot?

Yes, we have a great landbank, maybe the best in the country and we are working now in two end at [indiscernible] Solaris and Santa Maria, working with the city to see if we can get finally approvals for those projects; nothing to be communicated, but we are working hard.

Okay and as I understand it there was recently a Shareholders Meeting where the capacity for the global notes offering was expanded, I believe to $500 million. I was wondering the expansion of that capacity, what was the motivating factor that you are looking at potential acquisitions later on or is it development or what drove this?

Jarrell, you know that the systems here in Argentina you need to have the [indiscernible] you want to issue something, with the left issuance the capacity of the company to raise money if we need; what is at full capacity. So if we need to issue a new debt we have to ask for shareholders approval so the idea was to have the approval, but without any specific plan in the coming months. So the company is not thinking in issue more debt in the next month, but if something appear or we want to I don't know, to finance a CapEx or acquisitions or whatever, we will have the flexibility to raise money in the market.

All right. Thank you very much.

The next question comes from [indiscernible] Please go ahead.

Hi good afternoon. I have two questions if I may, the first one is regarding IDB, I was wondering now with this issuance that you made, you would expect to top that market you would expect to top at that market again, to pay next year's amortizations or it will good with that? And then my second question is regarding the cost mainly on the shopping mall side. How do you see the cost evolving and there anything that you could do in order to compelling the increasing cost while we wait for activity to pick up?

[Alejandra] (Ph), regarding IDB, as I mentioned that IDB issued that in the market where the idea to have the proceed to cancel or the amortization for this year, after the recession from the Supreme Court to place the Clal share, IDB now is working in other structures to try to top the market again with another structure. The company is working, so we expect them to show some [indiscernible] in the coming days. But the idea is still the company will find other sources of final to cancel the debt amortization scale. Regarding the cost.

Yes. Regarding the cost Alejandra, on the numbers we are showing now is the one-time effect that is store that is not in the shopping center that is across the street from [Indiscernible] shopping center that we have delinquency and it's under legal process to collect that money. So that’s mainly the biggest cost that we have on this quarter. Going forward and talking about cost, yes we can manage to make some reductions in cost and the services that we get through the shopping center but we are not planning to grow that down because that then is difficult to recover and we are expecting the next will be little better than what we are seeing now.

Okay. Thank you very much.

[Operator Instruction] Showing no further questions, this concludes the question-and-answer session. At this time, I would like to turn the floor back to Mr. Alejandro Elsztain for any closing remarks.

So that’s to finish our conference call of the quarter. The companies are in the middle of big development everywhere in Israel, in Argentina they are developing and refinancing. And so we are sitting on a very good and strong portfolio of profits. So we thank you everybody and we see you next quarter. Thank you very much.

Thank you. This concludes today's presentation. You may disconnect your line at this time and have a nice day.