Terrafina: Fourth Quarter and Full Year 2013 Earnings Report

MEXICO CITY--()--Terrafina (“TERRA”) (BMV: TERRA13), a leading Mexican industrial real estate investment trust (“FIBRA”), externally advised by Prudential Real Estate Investors and dedicated to the acquisition, development, lease and management of industrial real estate properties in Mexico, today announced its fourth quarter and full year 2013 earnings results.

The figures in this report have been prepared in accordance with International Financial Reporting Standards (“IFRS”). Figures presented in this report are presented in millions of Mexican pesos and millions of U.S. dollars unless otherwise stated. Additionally, figures can vary due to rounding.

Terrafina’s financial statements that are included in this report are internal and have not yet been audited by the external auditors, nor have they been approved at the Ordinary Shareholders’ Meeting. As a result, the mentioned figures in this financial report are preliminary figures and could be adjusted in the future. Once the audited 2013 financial statements are available and have been approved by the Annual Ordinary Shareholders’ Meeting, these will be made available to the market as per applicable law.

Financial and Operational Highlights as of December 31, 2013

Operational

  • As of December 31, 2013, occupancy rate was 89.7%, a 113 basis points increase compared to third quarter of 2013. Moreover, 2013 “same store”1 occupancy rate was 88.3%, representing an increase of 207 basis points compared to 3Q13. Additionally, considering the signed letters of intent, occupancy for 2013 was 90.5%.
  • Annualized average leasing rate per square foot for 2013 was US$4.76, whereas same store annualized average leasing rate was of US$ 4.54 per square foot.
  • Terrafina reported a total of 30.8 million square feet (MSF) of Gross Leasable Area (GLA) comprised of 216 properties and 223 tenants at the end of 2013.
  • 2013 leasing activity totaled 7.9 million square feet (msf), of which 37.3% is new leasable area and 62.7% are lease renewals. Leasing activity was mainly concentrated in the Ciudad Juarez, Cuautitlan Izcalli, Nuevo Laredo, Ramos Arizpe and Tijuana markets.
  • Total expansions for 2013 included 455 thousand square feet of GLA, of which 85 thousand are still under development. These expansion activities are expected to contribute US$1.8 million to Net Operating Income (NOI) generation for the 2014 period. The return rate for the expansions made during the year was 10.7%.
  • Net acquisitions during 2013 correspond to a total of approximately 11 msf of GLA (comprised of 84 properties from the American Industries – Kimco portfolio) at a net acquisition price of US$562 million and a cap rate of 8.7%.

Financial

  • FY2013 net revenues reached US$84.7 million, of which US$37.6 million were generated in the fourth quarter and represent a 66.7% increase compared to third quarter of 2013. It is important to mention that income generation from the American Industries – Kimco portfolio acquisition is fully shown in the fourth quarter results. Annualized revenues for 4Q13 totaled US$150.6 million.
  • FY2013 NOI was US$69.9 million, of which US$31.0 million were generated during 4Q13. Annualized NOI for 4Q13 was US$124.1 million.
  • The NOI Margin for 2013 reached 87.6% and 87.9% in 4Q13, 25 basis points lower compared to 3Q13.
  • FY2013 EBITDA reached US$59.2 million, of which US$28.1 million was generated during 4Q13. Additionally, annualized EBITDA for 4Q13 was US$112.3 million.
  • The EBITDA Margin for 2013 was 74.2% and 79.6% for 4Q13, a 742 basis points increase compared to 3Q13.
  • FY2013 Adjusted Funds for operations (AFFO) reached US$32.6 million, of which US$14.3 million were generated during 4Q13. Annualized AFFO for 4Q13 was US$57.3 million.
  • The AFFO margin for 2013 was 40.1% and 40.3% in 4Q13, an 85 basis points decrease compared to 3Q13.
  • FY13 distributions totaled US$35.0 million. As a result of 4Q13 operations, Terrafina will pay Ps. 0.4769 per CBFI (US$0.0366 per CBFI) as distributions corresponding to the period from October 1 to December 31, 2013. Moreover, the accretive effect of the American Industries – Kimco portfolio acquisition was substantiated by a 43.1% distribution increase compared to 3Q13.
  • Annualized CBFI distribution for 4Q13 was US$0.1466, considering the average share price for 4Q13 of US$1.86 (Ps. 24.26); Terrafina’s dividend yield was 7.9%.

For the complete report, please visit our website at http://www.terrafina.mx/ or contact our investor relations department

Contacts

in Mexico City:
Terrafina
Francisco Martinez, +52 (55) 3601-0702
Investor Relations Officer
francisco.martinez@terrafina.mx
or
in New York:
i-advize Corporate Communications, Inc.
Maria Barona, +1 212-406-3690
mbarona@i-advize.com

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Contacts

in Mexico City:
Terrafina
Francisco Martinez, +52 (55) 3601-0702
Investor Relations Officer
francisco.martinez@terrafina.mx
or
in New York:
i-advize Corporate Communications, Inc.
Maria Barona, +1 212-406-3690
mbarona@i-advize.com