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, 2018.
SECOND QUARTER 2018 HIGHLIGHTS
- Increase in AFFO per certificate of 6.2% YoY to a record Ps 0.6042
- Average industrial and retail rental rates increased 2.1% and 5.1% YoY, respectively
- Increase in occupancy of 63 bps QoQ
- Increase in quarterly NOI margin of 153 basis points YoY
- Post-quarter completed sale of 35 non-strategic assets for proceeds of US$80.2 million
- Authorization of a quarterly cash distribution of Ps 0.39 per certificate
- Increases FY18 AFFO guidance to between Ps 2.28 and Ps 2.33 per certificate and FY18 distribution guidance to Ps 1.60 per certificate
MANAGEMENT COMMENTARY
“Our results in the second quarter demonstrate FIBRAMQ’s ongoing commitment to operational excellence and the execution of our strategic initiatives,” said Juan Monroy, FIBRA Macquarie’s chief executive officer. “We delivered 6.2% growth in AFFO per certificate, along with robust leasing momentum in both our industrial and retail portfolios. A key highlight of the quarter was the successful signing and subsequent sale of 35 non-strategic industrial assets. This transaction enhances our overall portfolio composition and key financial metrics. Consequently, we are better positioned to concentrate resources in our strategic markets and ultimately redirect the proceeds into value creating initiatives, including expansions, development and certificate buyback for cancellation. We are pleased with our ongoing progress and remain focused on executing on our strategy.”
FINANCIAL AND OPERATING RESULTS
Consolidated Portfolio
FIBRAMQ’s total results were as follows:
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| TOTAL PORTFOLIO | 2Q18 | 2Q17 | Variance | YTD 18 | YTD 17 | Variance | ||||||
| Net Operating Income (NOI) | Ps 834.4m | Ps 792.6m | 5.3% | Ps 1,659.2m | Ps 1,631.4 | 1.7% | ||||||
| EBITDA | Ps 778.5m | Ps 738.9m | 5.4% | Ps 1,546.3m | Ps 1,517.7m | 1.9% | ||||||
| Funds From Operations (FFO) | Ps 546.1m | Ps 522.8m | 4.5% | Ps 1,093.0m | Ps 1,072.7m | 1.9% | ||||||
| FFO per certificate | Ps 0.6905 | Ps 0.6443 | 7.2% | Ps 1.3796 | Ps 1.3221 | 4.4% | ||||||
| Adjusted Funds From Operations (AFFO) | Ps 477.9m | Ps 461.4m | 3.6% | Ps 955.7m | Ps 934.6m | 2.3% | ||||||
| AFFO per certificate | Ps 0.6042 | Ps 0.5687 | 6.2% | Ps 1.2062 | Ps 1.1519 | 4.7% | ||||||
| NOI Margin | 88.5% | 87.0% | 153 bps | 88.1% | 87.1% | 98 bps | ||||||
| AFFO Margin | 50.7% | 50.6% | 5 bps | 50.7% | 49.9% | 83 bps | ||||||
| GLA (’000s sqm) EOP | 3,417 | 3,448 | -0.9% | 3,417 | 3,448 | -0.9% | ||||||
| Occupancy EOP | 92.8% | 93.0% | -16 bps | 92.8% | 93.0% | -16 bps | ||||||
| Average Occupancy | 92.5% | 92.4% | 11 bps | 92.4% | 92.2% | 21 bps | ||||||
FIBRAMQ’s same store portfolio results were as follows:
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| TOTAL PORTFOLIO - SAME STORE | 2Q18 | 2Q17 | Variance | YTD 18 | YTD 17 | Variance | ||||||
| Net Operating Income (NOI) | Ps 834.4m | Ps 785.3m | 6.1% | Ps 1,658.1m | Ps 1,610.7m | 2.9% | ||||||
| GLA (’000s sqm) EOP | 3,417 | 3,406 | 0.3% | 3,404 | 3,392 | 0.4% | ||||||
| Occupancy EOP | 92.8% | 92.9% | -3 bps | 93.0% | 93.2% | -23 bps | ||||||
| Industrial Retention (LTM) | 82.9% | 74.1% | 882 bps | 82.9% | 74.1% | 882 bps | ||||||
| Weighted Avg Lease Term Remaining (years) EOP | 3.5 | 3.5 | 0.0% | 3.5 | 3.5 | -0.1% | ||||||
Industrial Portfolio
The following table summarizes the results for FIBRAMQ’s industrial portfolio:
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| INDUSTRIAL PORTFOLIO | 2Q18 | 2Q17 | Variance | YTD 18 | YTD 17 | Variance | ||||||
| Net Operating Income (NOI) | Ps 686.2m | Ps 653.5m | 5.0% | Ps 1,369.3m | Ps 1,358.5m | 0.8% | ||||||
| NOI Margin | 91.6% | 90.0% | 162 bps | 91.5% | 90.1% | 136 bps | ||||||
| GLA (’000s sqft) EOP | 31,866 | 32,215 | -1.1% | 31,866 | 32,215 | -1.1% | ||||||
| GLA (’000s sqm) EOP | 2,960 | 2,993 | -1.1% | 2,960 | 2,993 | -1.1% | ||||||
| Occupancy EOP | 92.6% | 92.6% | -2 bps | 92.6% | 92.6% | -2 bps | ||||||
| Average Occupancy | 92.2% | 92.0% | 22 bps | 92.0% | 92.3% | -31 bps | ||||||
| Average monthly rent per leased (US$/sqm) EOP | $4.69 | $4.59 | 2.1% | $4.69 | $4.59 | 2.1% | ||||||
| Customer retention LTM | 83% | 75% | 788 bps | 83% | 75% | 788 bps | ||||||
| Weighted Avg Lease Term Remaining (years) EOP | 3.3 | 3.1 | 3.7% | 3.3 | 3.1 | 3.7% | ||||||
For the three months ended June 30, 2018, FIBRAMQ’s industrial portfolio delivered net operating income (NOI) of Ps 686.2 million, an increase of 5.0% compared to Ps 653.5 million in the prior comparable period. NOI margin increased 162 basis points from the prior year period to 91.6% driven primarily by higher rental rates.
The industrial portfolio occupancy rate as of June 30, 2018 was 92.6%, consistent with the same quarter last year, and a 71 basis point increase from the end of the first quarter. FIBRAMQ began floor renovations on a 127 thousand square foot building in Monterrey that became vacant during the quarter. This property has been removed from GLA whilst under renovation, and will be added back to GLA once works are complete, which is expected by the end of the first quarter of 2019. Rental rates improved compared to the same quarter last year, with a closing weighted average of US$4.69 per leased square meter per month, a 2.1% increase. This rate increase was driven primarily by contractual increases, along with positive renewal spreads.
FIBRAMQ signed 28 new and renewal leases in the second quarter of 2018, comprising 2.1 million square feet. Signed leases included six new leases totaling 350 thousand square feet and 22 renewal leases totaling 1.7 million square feet. Notable new leases in the quarter include a plastics manufacturer in Ciudad Juárez, a logistics firm in Monterrey, and three automotive parts suppliers in Matamoros, Reynosa and Hermosillo. Renewal activity was robust and diversified across various geographies and customer types, including a global manufacturer of health products, a glass manufacturer, and a fiber optics cable manufacturer.
For the twelve-month period ending June 30, 2018, FIBRAMQ achieved a retention rate of 83%, showing ongoing improvement from the prior comparable period.
Retail Portfolio
The following table summarizes the proportionally combined results of operations for FIBRAMQ’s retail portfolio:
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| RETAIL PORTFOLIO | 2Q18 | 2Q17 | Variance | YTD 18 | YTD 17 | Variance | ||||||
| Net Operating Income (NOI) | Ps 148.2m | Ps 139.1m | 6.6% | Ps 289.9m | Ps 272.9m | 6.2% | ||||||
| NOI Margin | 76.5% | 75.1% | 136 bps | 74.8% | 74.5% | 27 bps | ||||||
| GLA (’000s sqm) EOP | 457 | 455 | 0.4% | 457 | 455 | 0.4% | ||||||
| Occupancy EOP | 94.5% | 95.3% | -77 bps | 94.5% | 95.3% | -77 bps | ||||||
| Average Occupancy | 94.5% | 95.1% | -63 bps | 94.6% | 95.1% | -49 bps | ||||||
| Average monthly rent per leased (Ps/sqm) EOP | Ps 154.34 | Ps 146.82 | 5.1% | Ps 154.34 | Ps 146.82 | 5.1% | ||||||
| Customer retention LTM | 69% | 64% | 479 bps | 69% | 64% | 479 bps | ||||||
| Weighted Avg Lease Term Remaining (years) EOP | 4.6 | 5.0 | -8.4% | 4.6 | 5.0 | -8.4% | ||||||
FIBRAMQ’s retail portfolio delivered NOI of Ps 148.2 million, an increase of 6.6% from the prior year period. Year-over-year growth was driven by a 5.1% increase in average monthly rents and a focus on cost controls resulting in an improvement in expenses. During the second quarter, FIBRAMQ signed 66 leases, representing 11.8 thousand square meters. This activity included 19 new leases and 47 renewals. Renewal volume was meaningfully greater than historical average, and was the most active quarter over the past four year period.
PORTFOLIO ACTIVITY
FIBRAMQ continues to effectively execute its strategy to deploy retained AFFO into accretive investments.
Expansions
A key element of this strategy is the targeted expansion of existing properties on a pre-leased basis along with selective development in core markets. During the first half of 2018, FIBRAMQ deployed or committed US$8.1 million.
During the second quarter, FIBRAMQ completed a 59 thousand square foot expansion for a manufacturer of personal care products in Reynosa.
Sale of non-strategic asset portfolio
Subsequent to the end of the second quarter, FIBRAMQ closed on the sale of 35 non-strategic industrial assets for US$80.2 million of cash proceeds. FIBRA Macquarie received US$61.0 million of the sale proceeds at closing and will receive US$11.2 million and US$8.0 million 18 months and 24 months following closing, respectively. Initial proceeds were used to fully repay the US$40.0 million outstanding balance on FIBRA Macquarie’s revolver, with the remaining US$21.0 million held as unrestricted cash to be invested in expansions, development and certificate buybacks for cancellation. Two additional properties with an aggregate value of US$7.2 million remain under contract for sale.
The properties included in the transaction are located in Mexico’s northern markets of Matamoros, Reynosa, Ciudad Juárez, Chihuahua, Mexicali and Tijuana. These assets contributed Ps. 118.4 million in NOI for the twelve month period ending June 30, 2018. They had a combined occupancy of 75.8% at the end of the second quarter, average monthly rent of US$3.64 per square meter, and GLA of 2,584 thousand square feet (240.1 thousand square meters).
In total, including the two assets under contract for sale, FIBRA Macquarie has sold, or agreed to sell, 44 non-strategic properties at an aggregate 2.2 percent premium to their book value, generating a total of US$117.5 million in proceeds. This includes exiting four tertiary, single-property markets. These sales have increased FIBRAMQ’s focus on core assets and core markets and enhanced the overall portfolio composition and key financial metrics. Additionally, FIBRA Macquarie expects to achieve improved operational efficiencies, with expected NOI margin expansion driven by higher average occupancy and rental rates in the remaining portfolio. With the completion of this disposition, FIBRA Macquarie has substantially accomplished its near-term asset recycling objectives.
The following table demonstrates the realized enhancements across key operating and financial metrics, based upon second quarter results adjusted for the pro forma impact of the 37 assets included in the transaction.
Key Industrial Portfolio Metrics
| 2Q18 | 2Q18 | |||||
| Actual |
Pro forma1 |
Variance | ||||
| Net operating income (NOI) (LTM) | Ps 2,681.4m | Ps 2,563.0m | -4.4% | |||
| NOI margin (LTM) | 90.9% | 91.5% | 60bps | |||
| Occupancy (EOP) | 92.6% | 94.1% | 148bps | |||
| Avg. monthly rent per leased (US$/sqm) (EOP) | $4.69 | $4.76 | 1.6% | |||
| Weighted avg. lease term remaining (years) (EOP) | 3.25 | 3.30 | 1.5% | |||
| Percentage of US$ leases (EOP) | 92.1% | 91.8% | -26bps | |||
| GLA (’000s sqft) (EOP) | 31,866 | 29,281 | -8.1% | |||
| GLA (’000s sqm) (EOP) | 2,960 | 2,720 | -8.1% | |||
| Number of properties (EOP) | 271 | 234 | -13.7% | |||
Key Financial Metrics
| 2Q18 | 2Q18 | |||||
| Actual |
Pro forma1 |
Variance | ||||
| Real estate net LTV | 39.4% | 36.9% | -250bps | |||
| Regulatory LTV | 36.5% | 35.4% | -110bps | |||
| Undrawn revolver facility (US$) | 217.3m | 257.3m | 18.4% | |||
| Fixed rate debt proportion (%) | 95.4% | 100.0% | 460bps | |||
| Debt tenor (weighted avg. years) | 5.5 | 5.7 | 3.6% | |||
| Total debt (US$) | 876.4m | 836.4m | -4.6% | |||
| Total unrestricted cash (US$) | 15.9m | 41.5m | 161.2% | |||
| Asset sales receivable (US$) | 0.0m | 20.8m | n.a. | |||
| Net debt/EBITDA2 (Annualized 2Q18) | 5.4x | 5.2x | -3.5% | |||
| Weighted avg. cost of debt (p.a.) | 5.3% | 5.4% | 2bps | |||
| Regulatory DSCR | 5.2x | 5.9x | 13.5% | |||
1. 2Q18 pro forma is provided for illustrative purposes. It assumes the transaction was completed at the beginning of 2Q17 and includes adjustments which are directly attributable to the transaction. LTM represents last 12 months, EOP represents end of period. 2. Net Debt/EBITDA is calculated in USD using EoP FX Rate: 19.8633 for Net Debt and Avg 2Q18 FX Rate: 19.3724 for EBITDA.
BALANCE SHEET
As of June 30, 2018, FIBRAMQ had approximately Ps 17.4 billion of debt outstanding, Ps 4.3 billion available on its undrawn revolving credit facility and Ps 316.5 million of unrestricted cash on hand. FIBRAMQ’s indebtedness was 95% fixed rate and had a weighted-average debt tenor remaining of 5.5 years.
FIBRAMQ’s CNBV regulatory debt to total asset ratio was 36.5% and the debt service coverage ratio was 5.2x.
CAPITAL ALLOCATION
The following table provides an overview of how FIBRA Macquarie has funded and deployed its cash to execute on its previously stated initiatives to maximize value to its certificate holders. FIBRA Macquarie remains committed to utilizing retained AFFO and proceeds from non-core assets sales to deploy capital across property expansions and developments, certificates repurchased for cancellation, and repayment of revolving debt.
For more detail, refer to the please refer to the Second Quarter 2018 Supplementary Information materials located at www.fibramacquarie.com/investors/bolsa-mexicana-de-valores-filings.
| SOURCES AND USES OF CAPITAL (FY2017 and 1H2018) | Ps. equivalent | US$ equivalent | ||||
| Sources | ||||||
| Retained AFFO | 962.0m | 50.7m | ||||
| Asset sales | 525.1m | 28.3m | ||||
| Surplus cash | 458.9m | 23.7m | ||||
| Total Sources | 1,946.0m | 102.6m | ||||
| Uses | ||||||
| Expansions & developments | 480.8m | 25.4m | ||||
| Certificates repurchased for cancellation | 534.5m | 28.1m | ||||
| Debt repayment | 832.9m | 44.0m | ||||
| Other | 97.7m | 5.1m | ||||
| Total Uses | 1,946.0m | 102.6m |
Note: Other includes US$2.0m of income-generating Above-Standard Tenant Improvements. Uses average FX of Ps 18.96 for 2017 and 1H2018. Certificates repurchased for cancellation include all certificates repurchased up to 30 June, 2018.
CERTIFICATE BUYBACK FOR CANCELLATION PROGRAM
During the second quarter of 2018, FIBRAMQ continued executing on its certificate buyback program, as it believes it generates highly accretive returns as the certificates continue to trade at a discount to NAV.
| CERTIFICATE REPURCHASES | Number of Certificates | Repurchase amount | ||
| Second quarter 2018 | 6.1m | Ps 122.3m | ||
| Since program commencement1 | 27.0m | Ps 570.2m | ||
| Remaining to reach 5% of certificates | 13.6m |
1. Includes the certificates repurchased up to 26th July, 2018
All repurchased certificates have been cancelled or will be cancelled in due course. FIBRAMQ’s Technical Committee has authorized the repurchase up to 5.0% of outstanding certificates. The timing, price per certificate and amount of future repurchases will depend upon prevailing market prices, trading windows, general economic and market conditions and other considerations, including investment alternatives. FIBRAMQ’s Technical Committee has approved the extension of the certificate repurchase program through to June 25, 2019 from its prior expiration date of June 25, 2018.
Daily updates of FIBRAMQ’s buyback activity can be found at http://www.bmv.com.mx/en/issuers/corporativeinformation/FIBRAMQ-30024-CGEN_CAPIT.
DISTRIBUTION
On July 26, 2018, FIBRAMQ declared a cash distribution for the quarter ended June 30, 2018 of Ps 0.39 per certificate. The distribution is expected to be paid on August 10, 2018 to holders of record on August 9, 2018. FIBRAMQ’s certificates will commence trading ex-distribution on August 8, 2018.
2018 GUIDANCE
FIBRA Macquarie is updating its guidance for 2018 AFFO to be between Ps. 2.28 and Ps. 2.33 per certificate, up from between Ps 2.19 and Ps 2.24 per certificate. In respect of the full year 2018, FIBRAMQ now expects to make cash distributions of Ps. 1.60 per certificate. A distribution of Ps. 0.41 per certificate is expected to be made in respect of each of the third and fourth quarters of 2018.
This guidance is based on the following assumptions:
- Based on the cash-generating capacity of its existing portfolio and an average exchange rate of Ps 18.5 per US dollar for the remainder of the year
- No new acquisitions or divestments other than the two remaining assets under sale agreement
- Repurchase for cancellation in 2018 of an additional 13.6 million certificates, resulting in an aggregate 5.0% of issued certificates being repurchased and cancelled, to close 2018 with 770.8 million certificates outstanding
- The payment of cash distributions is subject to the approval of the board of directors of the Manager for cash distributions
- The continued stable performance of the properties in the portfolio, and market conditions.
WEBCAST AND CONFERENCE CALL
FIBRAMQ will host an earnings conference call and webcast presentation on Friday, July 27, 2018 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 +1 (877) 304 8957. Callers from outside the United States may dial +1 (973) 638 3235. Please ask for the FIBRA Macquarie Second Quarter 2018 Earnings Call.
An audio replay will be available by dialing +1-855-859-2056 or +1-404-537-3406 for callers outside the United States. The passcode for the replay is 7898395. A webcast archive of the conference call and a copy of FIBRAMQ’s financial information for the second quarter 2018 will also be available on FIBRAMQ’s website, www.fibramacquarie.com.
ADDITIONAL INFORMATION
For detailed charts, tables and definitions, please refer to the Second Quarter 2018 Supplementary Information materials located at www.fibramacquarie.com/investors/bolsa-mexicana-de-valores-filings.
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 236 industrial properties and 17 retail/office properties, located in 20 cities across 16 Mexican states as of July 26, 2018. Nine of the retail/office properties are held through a 50/50 joint venture. 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 is a business within the Macquarie Asset Management division of Macquarie Group and a global alternative asset manager focused on real estate, infrastructure, agriculture and energy assets. Macquarie Infrastructure and Real Assets has significant expertise over the entire investment lifecycle, with capabilities in investment sourcing, investment management, investment realization and investor relations. Established in 1996, Macquarie Infrastructure and Real Assets has approximately US$119 billion of total assets under management as of March 31, 2018.
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 61 office locations in 25 countries. Macquarie employs over 14,400 people and has assets under management of approximately US$382 billion as of March 31, 2018.
For more information, please visit www.macquarie.com.
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.
FIBRA MACQUARIE MEXICO AND ITS CONTROLLED ENTITIES
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT
JUNE 30, 2018 (UNAUDITED) AND DECEMBER 31, 2017
CURRENCY
AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)
|
|
Jun 30, 2018 | Dec 31, 2017 | ||
| $’000 | $’000 | |||
| Current assets | ||||
| Cash and cash equivalents | 292,264 | 417,529 | ||
| Trade and other receivables, net | 56,012 | 74,539 | ||
| Other assets | 99,426 | 73,938 | ||
| Investment properties held for sale | 1,742,764 | - | ||
| Total current assets | 2,190,466 | 566,006 | ||
| Non-current assets | ||||
| Restricted cash | 50,615 | 50,289 | ||
| Other assets | 189,887 | 196,673 | ||
| Equity-accounted investees | 1,161,150 | 1,137,652 | ||
| Goodwill | 882,758 | 882,758 | ||
| Investment properties | 40,471,656 | 41,722,712 | ||
| Derivative financial instruments | 154,263 | 111,573 | ||
| Total non-current assets | 42,910,329 | 44,101,657 | ||
| Total assets | 45,100,795 | 44,667,663 | ||
| Current liabilities | ||||
| Trade and other payables | 429,452 | 630,784 | ||
| Tenant deposits | 38,935 | 39,295 | ||
| Interest-bearing liabilities | 780,533 | - | ||
| Total current liabilities | 1,248,920 | 670,079 | ||
| Non-current liabilities | ||||
| Tenant deposits | 318,863 | 313,719 | ||
| Interest-bearing liabilities | 15,664,122 | 16,318,550 | ||
| Deferred income tax | 6,277 | 6,277 | ||
| Total non-current liabilities | 15,989,262 | 16,638,546 | ||
| Total liabilities | 17,238,182 | 17,308,625 | ||
| Net assets | 27,862,613 | 27,359,038 | ||
| Equity | ||||
| Contributed equity | 17,835,081 | 18,118,973 | ||
| Retained earnings | 10,027,532 | 9,240,065 | ||
| Total equity | 27,862,613 | 27,359,038 | ||
CONDENSED UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2018 AND 2017
CURRENCY
AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)
| 3 months ended | 6 months ended | |||||||
| Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2018 | Jun 30, 2017 | |||||
| $’000 | $’000 | $’000 | $’000 | |||||
| Property related income | 889,227 | 860,669 | 1,777,390 | 1,773,836 | ||||
| Property related expenses | (109,805) | (124,362) | (228,340) | (253,664) | ||||
| Net property income | 779,422 | 736,307 | 1,549,050 | 1,520,172 | ||||
| Management fees | (40,492) | (42,213) | (86,209) | (90,342) | ||||
| Transaction related expenses | (2,043) | (3,062) | (3,912) | (4,323) | ||||
| Professional, legal and other expenses | (14,884) | (11,418) | (26,035) | (23,182) | ||||
| Total expenses | (57,419) | (56,693) | (116,156) | (117,847) | ||||
| Finance costs | (228,721) | (207,223) | (444,287) | (433,132) | ||||
| Financial income | 3,702 | 2,451 | 6,629 | 5,328 | ||||
| Share of profits from equity-accounted investees | 24,952 | 45,966 | 53,126 | 61,733 | ||||
| Foreign exchange (loss)/gain | (1,252,709) | 766,894 | (117,538) | 2,353,672 | ||||
| Net unrealized foreign exchange gain/(loss) on foreign currency denominated investment property | 2,520,523 | (1,514,807) | 240,153 | (4,601,627) | ||||
|
Unrealized revaluation gain/(loss) on investment property measured at fair value |
216,285 | 126,123 | 180,069 | (175,332) | ||||
| Net unrealized gain/(loss) on interest rate swaps | 13,766 | (25,300) | 42,690 | (27,683) | ||||
| Profit/(loss) before tax for the period | 2,019,801 | (126,282) | 1,393,736 | (1,414,716) | ||||
| Current income tax | (155) | (418) | (213) | (639) | ||||
| Profit/(loss) for the period | 2,019,646 | (126,700) | 1,393,523 | (1,415,355) | ||||
| Other comprehensive income | ||||||||
| Other comprehensive income for the period | - | - | - | - | ||||
| Total comprehensive profit/(loss) for the period | 2,019,646 | (126,700) | 1,393,523 | (1,415,355) | ||||
| Profit/(loss) per CBFI* | ||||||||
| Basic and diluted profit/(loss) per CBFI (pesos) | 2.55 | (0.16) | 1.76 | (1.74) | ||||
|
*Real Estate Trust Certificates (Certificados Bursátiles Fiduciarios Inmobiliarios) |
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CONDENSED UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN
EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2018 AND 2017
CURRENCY
AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)
|
|
Contributed equity | Retained earnings | Total | |||
| $’000 | $’000 | $’000 | ||||
| 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, including associated costs | (9,612) | (9,612) | ||||
| Total transactions with equity holders in their capacity as equity holders | (9,612) | (661,262) | (670,874) | |||
| Total equity at June 30, 2017 | 18,360,382 | 6,590,080 | 24,950,462 | |||
| Total equity at January 1, 2018 | 18,118,973 | 9,240,065 | 27,359,038 | |||
| Total comprehensive profit for the period | - | 1,393,523 | 1,393,523 | |||
| Total comprehensive profit for the period | - | 1,393,523 | 1,393,523 | |||
| Transactions with equity holders in their capacity as equity holders: | ||||||
| - Distributions to CBFI holders | - | (606,056) | (606,056) | |||
| - Repurchase of CBFIs, including associated costs | (283,892) | - | (283,892) | |||
| Total transactions with equity holders in their capacity as equity holders | (283,892) | (606,056) | (889,948) | |||
| Total equity at June 30, 2018 | 17,835,081 | 10,027,532 | 27,862,613 | |||
CONDENSED UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS FOR
THE SIX MONTHS ENDED JUNE 30, 2018 AND 2017
CURRENCY AMOUNTS
EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)
| 6 months ended | ||||||
| Jun 30, 2018 | Jun 30, 2017 | |||||
| $’000 | $’000 | |||||
| Inflows / (Outflows) | Inflows / (Outflows) | |||||
| Operating activities: | ||||||
| Profit/(loss) before tax for the period | 1,393,736 | (1,414,716 | ) | |||
| Adjustments for: | ||||||
|
Net unrealized foreign exchange (gain)/loss on foreign currency denominated investment property measured at fair value |
(240,153 | ) | 4,601,627 | |||
| Unrealized revaluation (gain)/loss on investment property measured at fair value | (180,069 | ) | 175,332 | |||
| Straight line rental income adjustment | 2,953 | (639 | ) | |||
| Tenant improvement amortization | 14,862 | 13,984 | ||||
| Leasing expense amortization | 27,792 | 23,704 | ||||
| Financial income | (6,629 | ) | (5,328 | ) | ||
| Provision for bad debts | 11,878 | 11,520 | ||||
| Net foreign exchange loss/(gain) | 116,991 | (2,424,236 | ) | |||
| Finance costs recognized in profit/(loss) for the period | 444,287 | 433,132 | ||||
| Share of profits from equity-accounted investees | (53,126 | ) | (61,733 | ) | ||
| Net unrealized (gain)/loss on interest rates swaps | (42,690 | ) | 27,683 | |||
| Movements in working capital: | ||||||
| Increase in receivables | (15,772 | ) | (36,408 | ) | ||
| (Decrease)/increase in payables | (206,294 | ) | 44,691 | |||
| Net cash flows from operating activities | 1,267,766 | 1,388,613 | ||||
| Investing activities: | ||||||
| Investment property acquired | (61,244 | ) | - | |||
| Proceeds from investment properties disposed | - | 90,205 | ||||
| Maintenance capital expenditure and other capitalized cost | (52,897 | ) | (249,146 | ) | ||
| Distributions received from equity-accounted investees | 29,628 | 32,254 | ||||
| Net cash flows used in investing activities | (84,513 | ) | (126,687 | ) | ||
| Financing activities: | ||||||
| Financial income | 6,629 | 5,328 | ||||
| Repayment of interest-bearing liabilities | - | (422,712 | ) | |||
| Interest paid | (425,420 | ) | (417,314 | ) | ||
| Repurchase of CBFIs, including associated costs | (283,892 | ) | - | |||
| Distribution to CBFI holders | (606,056 | ) | (661,262 | ) | ||
| Net cash flows from financing activities | (1,308,739 | ) | (1,495,960 | ) | ||
| Net decrease in cash and cash equivalents | (125,486 | ) | (234,034 | ) | ||
| Cash and cash equivalents at the beginning of the period | 467,818 | 663,173 | ||||
| Foreign exchange loss on cash and cash equivalents | 547 | 70,564 | ||||
| Cash and cash equivalents at the end of the period* | 342,879 | 499,703 | ||||
|
*Includes restricted cash balance of $50.6 million (2017: $43.9 million) |
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