FIBRA Macquarie México Reports Second Quarter 2017 Results

AFFO per Certificate Increases 17.6% YoY

US$19 Million of Expansion and Development Projects Delivered or In-Process for 2017 YTD

MEXICO CITY--(BUSINESS WIRE)--FIBRA Macquarie México (FIBRAMQ) (BMV: FIBRAMQ), owner of one of the largest portfolios of industrial and retail property in Mexico, announced its financial and operating results for the quarter ended June 30, 2017.

HIGHLIGHTS

• Increase in AFFO per certificate of 17.6% to Ps 0.5687
• Overall occupancy of 93.0%, up 30 bps sequentially, to a record amount of leased GLA
• Increase in industrial rental rates of 3.7% YoY to US$4.59 per leased square meter per month
• Current AFFO yield of approximately 10.0% per annum
• Completion of US$11 million of development and expansion projects
• Authorization of a quarterly cash distribution of Ps 0.375 per certificate
• Commencement of certificate repurchase program

“Our results for the second quarter reflect our ability to continue to operate our existing properties efficiently and effectively while executing on value-enhancing opportunities,” said Juan Monroy, FIBRA Macquarie’s chief executive officer. “Supported by a more positive macro-economic environment, our experienced real estate team delivered strong leasing results, solid rental rate increases, and improved retention. Importantly, we achieved a record level of leased GLA, even as we brought online a new development project and sold two leased buildings. We also continue to make progress with our growth initiatives as we direct retained capital and proceeds from sales into accretive expansions that enhance and deepen our customer relationships. These expansions, coupled with our recently implemented certificate buyback program, provide us with the opportunity to create long-term value for our certificate holders.”

FINANCIAL AND OPERATING RESULTS

Consolidated Portfolio

FIBRAMQ’s total portfolio results were as follows:

TOTAL PORTFOLIO	2Q17	2Q16	Variance	1H17	1H16	Variance
Net Operating Income (NOI)	Ps 792.6m	Ps 733.9m	8.0%	Ps 1,631.4m	Ps 1,477.9m	10.4%
EBITDA	Ps 738.9m	Ps 678.3m	8.9%	Ps 1,517.7m	Ps 1,362.9m	11.4%
Funds From Operations (FFO)	Ps 522.8m	Ps 462.6m	13.0%	Ps 1,072.7m	Ps 933.8m	14.9%
FFO per certificate	Ps 0.6443	Ps 0.5702	13.0%	Ps 1.3221	Ps 1.1509	14.9%
Adjusted Funds From Operations (AFFO)	Ps 461.4m	Ps 392.3m	17.6%	Ps 934.6m	Ps 802.3m	16.5%
AFFO per certificate	Ps 0.5687	Ps 0.4836	17.6%	Ps 1.1519	Ps 0.9889	16.5%
GLA (’000s sqm) EOP	3,448	3,436	0.3%	3,448	3,436	0.3%
Occupancy EOP	93.0%	93.0%	0 bps	93.0%	93.0%	0 bps

Note: Consistent with best practice, NOI, FFO and AFFO have been adjusted in the current and prior periods to move building painting expenses from repairs and maintenance (included in NOI) into normalized maintenance capex (included in AFFO).

FIBRAMQ’s same store portfolio results were as follows:

TOTAL PORTFOLIO - SAME STORE	2Q17	2Q16	Variance
Net Operating Income	Ps 791.2m	Ps 732.3m	8.0%
GLA (’000s sqm) EOP	3,434.5	3,397.8	1.1%
Occupancy EOP	93.3%	93.5%	-20 bps
Industrial Retention (LTM)	75.0%	69.4%	560 bps
Weighted Avg Lease Term Remaining (years) EOP	3.5	3.8	-7.9%

Industrial Portfolio

The following table summarizes the results for FIBRAMQ’s industrial portfolio during the period ended June 30, 2017 and the prior comparable period.

INDUSTRIAL PORTFOLIO	2Q17	2Q16	Variance	1H17	1H16	Variance
Net Operating Income	Ps 653.5m	Ps 600.0m	8.9%	Ps 1,358.5m	Ps 1,219.4m	11.4%
Net Operating Income Margin	90.0%	89.3%	70 bps	90.1%	88.1%	200 bps
GLA (’000s sqft) EOP	32,215	32,192	0.1%	32,215	32,192	0.1%
GLA (’000s sqm) EOP	2,993	2,991	0.1%	2,993	2,991	0.1%
Occupancy EOP	92.6%	92.6%	0 bps	92.6%	92.6%	0 bps
Average monthly rent per leased (US$/sqm) EOP	$4.59	$4.43	3.7%	$4.59	$4.43	3.7%
Customer retention LTM	75%	69%	600 bps	75%	69%	600 bps
Weighted Avg Lease Term Remaining (years) EOP	3.1	3.4	-8.6%	3.1	3.4	-8.6%

The 8.9% increase in net operating income generated by FIBRAMQ’s industrial portfolio was driven by improvements in both average occupancy and rental rates. Occupancy rates improved even as FIBRAMQ sold two leased buildings having a combined 148 thousand square feet of occupied GLA, and completed the development and expansion of properties that added 310 thousand square feet of unleased GLA to its portfolio. The increase in occupancy was supported by an improved retention rate of 93 percent in the quarter, resulting in a retention rate of 75 percent on a trailing twelve month basis, which is a 600 basis points improvement over the rate for the twelve months ended June 30, 2016.

Average rental rates increased at 30 June 2017 to US$4.59 per leased square meter per month, up 3.7 percent compared to 30 June 2016. This rate increase was driven by a combination of contractual increases, move outs by customers paying below portfolio-wide average rents, and an average 1.5 percent rate increase for signed renewals.

FIBRAMQ signed 34 new and renewal leases in the second quarter comprising 2.3 million square feet of industrial GLA. Signed leases included 10 new leases totaling 539 thousand square feet, and 24 renewal leases totaling 1.8 million square feet. The pace of leasing in the second quarter reflects a meaningful improvement in leasing fundamentals compared with the prior several quarters and is due to the ongoing efforts of the FIBRAMQ leasing team, along with a more positive sentiment about the macroeconomic and political outlook.

New leases were diversified across FIBRAMQ’s geographic footprint, as well as across industry sectors. Notably, four of the new leases were each greater than 75 thousand square feet of GLA, and were entered into by a global diversified consumer products company, manufacturers of packaging and automotive parts, and a wholesale grocery distributor. One of these leases was to an existing customer who needed to expand their operations, demonstrating the ongoing success of the Customer First initiative. Additionally, in Querétaro, FIBRAMQ signed a new lease for 55 thousand square feet and agreed to further expand the property by an additional 14 thousand square feet. Key renewals of greater than 100 thousand square feet each included leases with three automotive parts manufacturers in Durango, Ciudad Juárez and Saltillo, and both a clothing manufacturer and packaging manufacturer in Tijuana.

Three customers, representing a total 138 thousand square feet of GLA, moved out during the quarter due to changes in requirements for their operations.

Retail Portfolio

The following table summarizes the proportionally combined results of operations for FIBRAMQ’s retail portfolio during the quarter ended June 30, 2017 and the prior comparable period.

RETAIL PORTFOLIO	2Q17	2Q16	Variance	1H17	1H16	Variance
Net Operating Income	Ps 139.1m	Ps 134.0m	3.8%	Ps 272.9m	Ps 258.4m	5.6%
Net Operating Income Margin	75.1%	75.9%	-80 bps	74.5%	74.1%	40 bps
GLA (’000s sqm) EOP	455	445	2.2%	455	445	2.2%
Occupancy EOP	95.3%	95.2%	10 bps	95.3%	95.2%	10 bps
Average monthly rent per leased (Ps/sqm) EOP	Ps 146.82	Ps 143.47	2.3%	Ps 146.82	Ps 143.47	2.3%
Customer retention LTM	64%	77%	-1300 bps	64%	77%	-1300 bps
Weighted Avg Lease Term Remaining (years) EOP	5.0	5.5	-9.1%	5.0	5.5	-9.1%

FIBRAMQ’s retail portfolio delivered NOI of Ps 139.1 million, an increase of 3.8 percent from the prior year period. The growth was driven by a 10 basis point increase in occupancy to 95.3 percent on both a year over year and sequential basis, and a 2.3 percent increase in average rent per square meter per month. FIBRAMQ signed 57 new and renewal leases comprising 7.4 thousand square meters of retail GLA.

FIBRAMQ achieved a record amount of leased GLA in its retail portfolio in the quarter. The record level was due, in part, to the completion of several projects that had been underway over the past several quarters. These projects, including an expansion at the Tecámac power center, and an expansion and significant upgrades at Magnocentro, were designed to enhance both the consumer experience and income producing potential of the centers by improving the mix of retail, food and beverage, and entertainment options.

PORTFOLIO AND EXPANSION ACTIVITY

FIBRAMQ maintains an active pipeline of opportunities focusing on expansions and redevelopment of existing properties and selective development of new properties in core markets.

FIBRAMQ completed the following development and expansion projects during the second quarter of 2017:

• A new 145 thousand square foot industrial facility in Reynosa and, subsequent to the end of the quarter, half of the facility was leased to a logistics provider who is an existing customer
• A 54 thousand square foot expansion of an industrial facility in Ciudad Juárez
• A 17 thousand square foot expansion for automotive parts manufacturer in Puebla
• A 10 thousand square foot expansion for automotive parts manufacturer in Puebla

These projects were completed for a total investment of US$11.1 million. The projects stabilized so far have a weighted average annualized NOI yield of 10.8 percent.

In addition, FIBRAMQ is in progress of completing a further US$8.0 million of expansion projects, including:

• An 85 thousand square foot expansion for a packaging manufacturer in Monterrey, expected to be completed in the third quarter of 2017
• A 14 thousand square foot expansion for a manufacturer of fastening solutions plastics, automation systems and automatic doors in Querétaro, expected to be completed in the fourth quarter of 2017
• A 14 thousand square foot expansion for a manufacturer of irrigation systems in Querétaro, expected to be completed in the first half of 2018

As previously discussed, one of FIBRAMQ’s growth priorities is pursuing value-creating expansion opportunities. Expansions provide an effective way to accretively deploy capital on a risk-adjusted basis to provide higher returns to investors. FIBRAMQ has a robust pipeline of expansion opportunities with existing customers, including several high probability projects.

ASSET RECYCLING

During the second quarter, FIBRAMQ sold one property in Ascension and one property in La Paz, resulting in a total exit from these single-asset markets. Total sale proceeds of US$4.6 million exceeded the book value of the assets. FIBRAMQ continues to evaluate its portfolio for additional asset recycling opportunities pursuing both single asset and portfolio sales.

BALANCE SHEET AND CAPITAL MARKETS ACTIVITY

As of June 30, 2017, FIBRAMQ had approximately Ps 16.2 billion of debt outstanding, Ps 3.1 billion of undrawn capacity on a revolving credit facility and Ps 455.8 million of unrestricted cash on hand.

FIBRAMQ’s CNBV regulatory debt to total asset ratio was 37.0% and the regulatory DSCR ratio was 1.3x.

As previously announced, during the second quarter, FIBRAMQ signed a term sheet for a new US$210 million 10-year non-amortizing, non-recourse, secured loan with a fixed interest rate of approximately 5.37 percent per annum. The proceeds of the financing are expected to be used to repay an existing secured loan of approximately US$180 million that matures in February 2018; the remaining proceeds of approximately US$30 million will be applied to partially repay the outstanding drawn revolver resulting in an increase in undrawn revolving lines available for general corporate purposes. The new loan is expected to close by the end of the third quarter 2017.

CERTIFICATE REPURCHASE PROGRAM

On June 26, FIBRAMQ announced that its Technical Committee approved and established a certificate repurchase program in accordance with the terms of its trust agreement. FIBRAMQ is authorized to repurchase up to five percent of its outstanding certificates through June 2018. The timing, prices, and sizes of repurchases, if any, will depend upon prevailing market prices, general economic and other considerations, including investment alternatives.

During the second quarter, FIBRAMQ repurchased 450 thousand outstanding certificates for a total of Ps 9.6 million, at a weighted average certificate price of Ps 21.35.

Subsequent to quarter end, through July 27, FIBRAMQ has repurchased an additional 1.8 million certificates at a weighted average certificate price of Ps 21.41, for a total of Ps 39.1 million. The number of outstanding certificates as at July 27 is 809,085,904. FIBRAMQ has commenced the cancellation of all certificates purchased to date and will continue to do so periodically for any certificates repurchased in the future.

CORPORATE GOVERNANCE

In May, Jaime De la Garza was appointed as an independent member of the Technical Committee and Indebtedness Committee. Mr. De la Garza is the former President and Chief Executive Officer of Corporate Properties of the Americas and brings a wealth of knowledge to the Committee given his institutional industrial real estate experience in Mexico. The Technical Committee is now comprised of 80% independent members, whose appointments were confirmed by unitholders at the annual general meeting.

DISTRIBUTION

On July 27, 2017, FIBRAMQ declared a cash distribution for the quarter ended June 30, 2017, of Ps. 0.375 per certificate. The distribution is expected to be paid on August 10, 2017 to holders of record on August 9, 2017. FIBRAMQ’s certificates will commence trading ex-distribution on August 7, 2017.

For the full year 2017, FIBRAMQ continues to expect to make cash distributions of between Ps 1.45 and Ps 1.50 per certificate, consistent with achieving a long-term target AFFO payout ratio of approximately 70%. The payment of cash distributions is subject to the approval of the board of directors of the Manager, the continued stable performance of the properties in the portfolio, and market conditions.

OUTLOOK

FIBRA Macquarie reaffirms its outlook for 2017 and maintains confidence in its core operations and expects continued strength in the underlying fundamentals of both its industrial and retail segments.

FIBRAMQ expects its existing portfolio to generate total AFFO of between Ps. 2.13 and Ps. 2.18 per certificate in 2017. This guidance assumes no new acquisitions or divestments and an average exchange rate of Ps. 18.0 per US dollar for the remainder of the year. This outlook assumes the total certificates on issue will remain at their current level of 809,085,904, which does not account for any potential certificate repurchased beyond those already disclosed.

Based on the mid-point of the AFFO guidance and the closing price for July 27, 2017, FIBRAMQ’s 2017 AFFO yield is estimated to be 10.0%.

WEBCAST AND CONFERENCE CALL

FIBRAMQ will host an earnings conference call and webcast presentation on Friday, July 28, 2017 at 7:30 a.m. CT / 8:30 a.m. ET. The conference call, which will also be audio webcast, can be accessed online at www.fibramacquarie.com or by dialing toll free [phone]. Callers from outside the United States may dial [phone]. Please ask for the FIBRA Macquarie Second Quarter 2017 Earnings Call.

An audio replay will be available by dialing [phone] or [phone] for callers outside the United States. The passcode for the replay is 48896972. A webcast archive of the conference call and a copy of FIBRAMQ’s financial information for the second quarter 2017 will also be available on FIBRAMQ’s website, http://www.fibramacquarie.com.

ADDITIONAL INFORMATION

For detailed charts, tables and definitions, please refer to the Second Quarter 2017 Supplementary Information materials located at http://www.fibramacquarie.com/investors/bolsa-mexicana-de-valoresfilings.

About FIBRA Macquarie

FIBRA Macquarie México (FIBRA Macquarie) (BMV:FIBRAMQ) is a real estate investment trust (fideicomiso de inversión en bienes raíces), or FIBRA, listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores) targeting industrial, retail and office real estate opportunities in Mexico, with a primary focus on stabilized income-producing properties. FIBRA Macquarie’s portfolio consists of 274 industrial properties and 17 retail/office properties, located in 22 cities across 18 Mexican states as of June 30, 2010. Nine of the retail/office properties are held through a 50/50 joint venture with Grupo Frisa. FIBRA Macquarie is managed by Macquarie México Real Estate Management, S.A. de C.V. which operates within the Macquarie Infrastructure and Real Assets division of Macquarie Group. For additional information about FIBRA Macquarie, please visit www.fibramacquarie.com.

Macquarie Infrastructure and Real Assets (MIRA) pioneered infrastructure as a new asset class for institutional investors. For more than 20 years it has been investing in and managing the assets that people use every day - extending beyond Infrastructure to Real Estate, Agriculture and Energy. MIRA’s dedicated operational and financial experts work where MIRA’s funds invest and the portfolio companies operate. They are part of a global team which helps clients to see across the regions and deep into local markets. As of March 31, 2017, MIRA has assets under management of more than $118 billion.

About Macquarie Group

Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Macquarie’s main business focus is making returns by providing a diversified range of services to clients. Macquarie acts on behalf of institutional, corporate and retail clients and counterparties around the world. Founded in 1969, Macquarie operates in more than 70 office locations in 28 countries. Macquarie employs approximately 13,597 people and has assets under management of more than $367 billion (as of March 31, 2017).

Cautionary Note Regarding Forward-looking Statements

This release may contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ significantly from these forward-looking statements and we undertake no obligation to update any forward-looking statements.

None of the entities noted in this document is an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities.

THIS RELEASE IS NOT AN OFFER FOR SALE OF SECURITIES IN THE UNITED STATES, AND SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED.

THIS ANNOUNCEMENT IS NOT FOR RELEASE IN ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT JUNE 30, 2017 (UNAUDITED) AND DECEMBER 31, 2016
CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)
	Jun 30, 2017	Dec 31, 2016
	$’000	$’000
Current assets
Cash and cash equivalents	455,765	612,443
Restricted cash	43,938	10,849
Trade and other receivables, net	55,656	116,865
Other assets	140,924	72,677
Investment properties held for sale	21,477	284,130
Total current assets	717,760	1,096,964
Non-current assets
Restricted cash	-	39,881
Other assets	187,002	185,323
Equity-accounted investees	1,114,354	1,084,875
Goodwill	931,605	931,605
Investment properties	38,143,783	42,466,715
Derivative financial instruments	70,079	97,762
Total non-current assets	40,446,823	44,806,161
Total assets	41,164,583	45,903,125
Current liabilities
Trade and other payables	637,770	480,673
Interest-bearing liabilities	3,224,962	67,977
Tenant deposits	18,897	21,396
Income tax payable	639	1,409
Total current liabilities	3,882,268	571,455
Non-current liabilities
Tenant deposits	306,345	346,863
Interest-bearing liabilities	12,023,841	17,946,449
Deferred income tax	1,667	1,667
Total non-current liabilities	12,331,853	18,294,979
Total liabilities	16,214,121	18,866,434
Net assets	24,950,462	27,036,691
Equity
Contributed equity	18,360,382	18,369,994
Retained earnings	6,590,080	8,666,697
Total equity	24,950,462	27,036,691

FIBRA MACQUARIE MÉXICO AND ITS CONTROLLED ENTITIES
CONDENSED UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016
CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)
	3 months ended		6 months ended
	June 30, 2017	June 30, 2016	June 30, 2017	June 30, 2016
	$’000	$’000	$’000	$’000
Property related income	860,669	800,093	1,773,836	1,637,211
Property related expenses	(124,362)	(116,150)	(253,664)	(253,506)
Net property income	736,307	683,943	1,520,172	1,383,705
Management fees	(42,213)	(44,499)	(90,342)	(90,586)
Transaction related expenses	(3,062)	(15,553)	(4,323)	(15,507)
Professional, legal and other expenses	(11,418)	(11,104)	(23,182)	(24,230)
Total expenses	(56,693)	(71,156)	(117,847)	(130,323)
Finance costs	(207,223)	(261,146)	(433,132)	(479,371)
Financial income	2,451	14,128	5,328	26,586
Share of profits from equity-accounted investees	45,966	48,557	61,733	60,618
Foreign exchange gain/(loss)	766,894	(1,257,206)	2,353,672	(1,414,558)
Net unrealized foreign exchange (loss)/gain on foreign currency denominated investment property measured at fair value	(1,517,807)	2,507,125	(4,601,627)	2,806,397
Unrealized revaluation gain/ (loss) on investment property measured at fair value	126,123	14,712	(175,332)	14,712
Net unrealized loss on interest rate swaps	(25,300)	-	(27,683)	-
(Loss)/profit before taxes for the period	(126,282)	1,678,957	(1,414,716)	2,267,766
Current income tax	(418)	(423)	(639)	(423)
(Loss)/profit for the period	(126,700)	1,678,534	(1,415,355)	2,267,343
Other comprehensive income
Other comprehensive income for the period	-	-	-	-
Total comprehensive (loss)/ income for the period	(126,700)	1,678,534	(1,415,355)	2,267,343
Earnings per CBFI*
Basic earnings per CBFI (pesos)	(0.16)	2.07	(1.74)	2.79
Diluted earnings per CBFI (pesos)	(0.16)	2.07	(1.74)	2.79
*Real Estate Trust Certificates (Certificados Bursátiles Fiduciarios Inmobiliarios)

CONDENSED UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2017 AND 2016
CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)
	Contributed equity	Reserve for own certificates	Retained earnings	Total
	$’000	$’000	$’000	$’000
Total equity at January 1, 2016	18,369,994	-	5,150,406	23,520,400
Total comprehensive income for the period	-	-	2,267,343	2,267,343
Total comprehensive income for the period	-	-	2,267,343	2,267,343
Transactions with equity holders in their capacity as equity holders:
- Distributions to CBFI holders	-	-	(730,227)	(730,227)
Total transactions with equity holders in their capacity as equity holders	-	-	(730,227)	(730,227)
Total equity at June 30, 2016	18,369,994	-	6,687,522	25,057,516
Total equity at January 1, 2017	18,369,994	-	8,666,697	27,036,691
Total comprehensive loss for the period	-	-	(1,415,355)	(1,415,355)
Total comprehensive loss for the period	-	-	(1,415,355)	(1,415,355)
Transactions with equity holders in their capacity as equity holders:
- Distributions to CBFI holders	-	-	(661,262)	(661,262)
- Repurchase of CBFIs	-	(9,612)	-	(9,612)
Total transactions with equity holders in their capacity as equity holders	-	(9,612)	(661,262)	(670,784)
Total equity at June 30, 2017	18,369,994	(9,612)	6,590,080	24,950,462

FIBRA MACQUARIE MÉXICO AND ITS CONTROLLED ENTITIES
CONDENSED UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2017 AND 2016
CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)
	6 months ended
	Jun 30, 2017	Jun 30, 2016
	$’000	$’000
	Inflows/(Outflows)	Inflows/(Outflows)
Operating activities:
(Loss)/profit for the period before taxes	(1,414,716)	2,267,766
Adjustments for:
Net unrealized foreign exchange loss/(gain) on foreign currency denominated investment property measured at fair value	4,601,627	(2,806,397)
Unrealized revaluation loss/(gain) on investment property measured at fair value	175,332	(14,712)
Straight line rental income adjustment	(639)	(22,262)
Tenant improvements amortization	13,984	10,867
Leasing expense amortization	23,704	15,917
Financial income	(5,328)	(26,586)
Provision for bad debt	11,520	19,049
Net foreign exchange (gain)/loss	(2,424,236)	1,546,507
Finance costs recognized in profit for the period	433,132	479,372
Share of profits from equity-accounted investees	(61,733)	(60,618)
Net unrealized loss on interest rate swaps	27,683	-
Movements in working capital:
(Increase)/ decrease in receivables	(36,408)	108,701
Decrease in payables	44,691	188,467
Net cash flows from operating activities	1,388,613	1,706,071
Investing activities:
Investment property - asset acquisitions	-	(396,408)
Investment property - asset disposals	90,205	-
Maintenance capital expenditure and other capitalized costs	(249,146)	(277,273)
Distributions received from equity-accounted investees	32,254	825
Net cash flows used in investing activities	(126,687)	(674,506)
Financing activities:
Financial income	5,328	26,586
Repayment of interest-bearing liabilities	(422,712)	(13,551,963)
Interest paid	(417,314)	(480,282)
Proceeds from interest-bearing liabilities, net of facility charges	-	12,220,770
Distributions to CBFI holders	(661,262)	(730,227)
Net cash flows used in financing activities	(1,495,960)	(2,515,116)
Net decrease in cash and cash equivalents	(234,034)	(1,483,551)
Cash, cash equivalents at the beginning of the period	663,173	2,394,426
Foreign exchange gain/(loss) on cash and cash equivalents	70,564	(131,950)
Cash and cash equivalents at the end of the period*	499,703	778,925
*Included in the cash and cash equivalent balance at the end of the period is restricted cash of $43.9 million (June 30, 2016: $59.3 million).