Good day everyone and welcome to the IRSA Third Quarter 2016 results Conference Call. Today’s live webcast, both audio and slide show, may be accessed through the Company’s Investor Relations Web site at www.irsa.com.ar/ir by clicking on the banner entitled Conference Call. The following presentation and the earnings release issued last week are also available for download on the Company Web site. 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 conference over to Alejandro Elsztain, CEO. Please go ahead, sir.

To correct in IRSA I am the second Vice President. Good morning everyone -- good afternoon sorry. We’re going to begin the first nine months of 2016 and we began in this period to consolidate IDBD results since this quarter and now we’re consolidating that with the three months period lag of their balance. If you see about our financial consolidated results revenues of the group consolidating Israel was at the level of almost ARS20 billion and we divided and to make it easier to investors and to analyst into the Argentina business center and the Israel business center, so in each of the lines we’re going to see both of the effects. So if we divide the revenue the Argentine revenues were ARS3.2 billion and in the case of Israel was ARS16.5 billion. At the EBITDA level we achieved ARS4.4 billion, from those 2.5 billion came from Argentina business center and ARS1.8 billion from Israel. And the net income we achieved a loss of ARS1 billion and Argentina gave us a profit of 146 million and from Israel business center we bring a loss of ARS1.2 billion. If we talk about some events that happened at IRSA level, IRSA sold in this quarter 0.5% of IRSA Commercial Properties. Now we went from 95.22% to 94.74% of the shares of the IRSA Commercial Properties. There was a very good result in the rental segment and the sales and development during the last nine months. We did this quarter a sale of Catalinas office -- 14 floors to IRSA Commercial Properties and the investment in Israel have many nos on this quarter. There was a tender offer obligation, we modified the tender offer that we had in the past and we paid during March and we’re going to explain you later and at the same time we believe that company IDBD is today 100% on the hands of IRSA and the hands of IFISA. There was a debt issuance at IRSA Commercial Properties for $360 million -- first corporation who entered to the market and with that 240 million went to cancel the inter-company loan that we have between IRSA and IRSA Commercial Properties. So I will introduce now Daniel Elsztain our COO.

Thank you, Alejandro. Good afternoon, everyone. On Page Number 3 we start with the Argentina Business Center, speaking about shopping centers. Our stock in shopping centers got a little increase by the addition of Alto Comahue Shopping. Occupancy remains very high and stable at levels of 98.6%, almost 99%. Sales went up this quarter by 29% or 25.4% if we measure same-store sales. This was a weaker quarter than the previous one but this mainly has some effects on -- basically that we have the new prices after the devaluation, but without salaries that changed in the month of April so we see a change also in this declining of level of sales after this quarter. In terms of visitors, we increased the amount of visitors again in the same shopping and also by the inclusion of hydro power shopping. In the segment of office building on Page 4, we can see that we maintained our monthly list -- the price per square meter, but we see some reduction on occupancy, this is mainly explained by the oil and gas tenants they reduced their amount of sales, but this is the picture at the end of this quarter. And as of today we are seeing that we have all the little sales and this number would go back to the previous numbers that we had in previous quarters. And also at the level of IRSA Commercial Properties, we did a partial sale in September 2016 of about 6,000 square meters in the Torre InterContinental Plaza. This is about a 5.2% cap rate and we have a gain of ARS300 million of the total sale of ARS324 million. Also in February of this year we sold whole another floor on this building, also with the parking, the eight parking space and…

Thank you, Danny. If we go to Page Number 10 and we see about Banco Hipotecario. The results for the nine months were almost ARS200 million, almost 100% comparing to the numbers of last year, so a very good operational result. And there was a subsequent event and we brought this to the presentation because Banco Hipotecario was able to acquire in an auction, a public auction, the Del Plata building, an office building that the city of Buenos Aires was using like a public building for their offices. That is emblem and historical memory of the city and Banco Hipotecario was able to buy that but is located on the most important avenue de 9 de Julio, in front of our [indiscernible]. So the main area -- of an area that’s is very busy in transportation, it’s one of the -- probably the more -- is full traffic of the country and it’s a Time Square area for Argentina and Banco Hipotecario bought that property for making overheads for the office, the whole Banco Hipotecario. So it’s a very good move for our company to buy a property like that. If we move to Page Number 12, we begin our explanation in the Israel Business Center and because of the change on the consolidation we can see that because we changed and now we’re consolidating, we began to explain deeper the results about Israel operation. So in the Page 11 -- sorry I am beginning with Page 11 and I'm counting back to Page 10 later. Investment highlights of the nine months. What happened at the company level is we have appointed a new -- an acting CEO and CFO for IDBD and DIC, so this is very recent and they are beginning to -- they became CEO and…

Thank you, Alejandro. Good afternoon, everybody. Going to Page 16 we have here an explanation of what we started this quarter. We started to consolidate on the results on IDB remember that we started on the net worth in the previous quarter, now we have started with our financial statement as well. We will use a lag of three months to consolidate IDB because they have different legal framework to presenting formation in Israel for instance they have 60 days to present quarter information and we have here in Argentina 42 days so it’s impossible to match with the same quarter so far so we will work in the future to identify if we can change this if not we will continue to have a lag of three months but in the middle we have to analyze subsequence events after they report it to us and consider if we have to prove that the implications of those subsequent events in our financial statements as well. So there is a little more complex but it’s the only that we have to consolidate IDB. So for [indiscernible] to maintain explanation of the different segments of the company and to facilitate the reading of our financial statement we separated the books in two we will present information and we are presenting information in two business centers Argentina and Israel business center in Argentina we are including as well our international office and REIT investment and the rest of the segment will be the same shopping centers offices sale and development hotels and financials of another that is not relevant anymore but we still have some minor operations there. And then we have Israel’s business center where we have the real estate that is mainly PBC, super market that is Shufersal are the chemicals…

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 specifically on IDBD debt so looking at your amortization schedule you have 560 million due this year, 177 million due next year and I was just wondering if you can provide some color as to how you intend to amortize that debt is it refinancing that you are looking into, is it sell of CLAL just to get some more color on that near-term debt?

Okay [Jarrell] for the debt of 2016 most of we almost have all the cash we have only $69 million remaining for this quarter after the cash that was injected in the company. The company is working in different actions to sell noncore assets probably will claim most of their funds from there and also there is the potential sale of CLAL shares that could cover this. When you consider since we enter into the company we injected $500 million in the company and most of the cash was to repay the debt. Since the beginning we haven’t sold any assets so the assets remain the same with much lower debt and we haven’t refinanced anything yet, so we have been paying any single amortization, so we believe that the company could start to refinancing the market and extending debt from there will be a combination probably selling assets and refinance in the market. I think that will be the main source of funds for them for the future. There is any commitment from IRSA or from Dolphin today with the company so we already financed or paid all our commitments so now the company are looking for the best way to refinance in the market.

But is the focus then to sell assets just at the IDB level or would it include assets at the IRSA or IRSA Commercial Properties level as well?

No I am referring to IDB not to IRSA.

Okay. And I was also wondering if you can provide some more color on the legal proceedings that are going regarding the bond that's due in 2020 beyond 2020 the 272 million in debt. So, what is the timeframe for rest of resolution that you expect for this issue?

I think it's a NYSE process they are treating us without any legal framework so this is the first time in my life that I see an acceleration without default or without any covenant or without any reaching in any financial clause, so they have to go to the court this do not belong to us and then a judge should approve or should recheck that motion but the legal framework I can’t anticipate because it depends on the chances there, but this is not -- there is any clause or anything that gave them a legal framework to go to the court.

[Operator Instructions] The next question comes from Alejandra Aranda with Itau. Please go ahead. Go ahead Alejandra your line is open perhaps your line is muted.

I was wondering two questions just. The first one is on the capitalist on the CLAL issue is there any timing for the resolution of the court selling or not that stake? And then regarding IRSA if you could give us a little bit more color on the pipeline of CapEx on shopping and sales and development?

Alejandra regarding CLAL there was a framework that was established by the insurance commissioner in Israel so they are asking to sell the shares, remember that we don’t have the control of the shares we only have the economical benefit, but we don’t control and this process is not managed by us. So the insurance commissioner have an instruction to sell 5% of the shares we have 55. They gave an instruction to the company to sell 5% of the shares that was not executed yet. So probably we will see in the next days or weeks what happens but nothing happened yet with this 5%. And then the framework is to sell 5% every four months and in the meantime we’re working and trying to present an alternative proposal for this.

And Alejandra regarding CapEx there is a level we already announced on CapEx the first date [indiscernible] which is approximately at $65 million investment there will be in two years. We also announced the expansion of Alto Palermo shopping which is also $21 million that will have a year and a half may be two years of conclusion. Also it’s more the extension in [indiscernible] given out there for ARS22 million and that is basically what we already announced. Plus the construction that will start in the next year for the Catalinas project that project will be part with CapEx and part with sales.

Okay. Perfect. And for that last one you don’t have a guidance number?

We do have some guidance as a total construction but we still don’t know how much is going to be paid by each partner so far so the total project will be about $80 million total construction cost and it will take more than two fiscal years it will be around three fiscal years.

[Operator Instructions] And we have a follow up from Ms. Aranda with Itau. Please go ahead.

Hi, sorry. On that issue of the debt on IDB would you be willing if you don’t tap the market to inject the cash for those 64 [Technical Difficulty] that you said you were short to inject them to through IRSA to IDB?

Alejandra there is no formal commitment to us so now that company is working in terms of financing by itself so that is the original plan that we have.

Ladies and gentlemen this concludes our question-and-answer section. At this time I would like to turn the floor back to Alejandro Elsztain for any closing remarks.

Thank you very much. We are finalizing a good quarter in the political things about Argentina the environment of business communities is changing a lot and we are launching a lot of new projects in many of the rental properties. The operation of the quarter was very good and we made very good results. We cancelled the obligations in Israel and we began the consolidation of that too we deleted IDB and so we think it’s a very good moment of the company and we expect the next quarter the last quarter of the year to keep very good numbers. So thank you very much, good day everyone and have a very good day. So thanks a lot.

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