Terrafina announces First Quarter 2014 Earnings Results

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 first quarter 2014 earnings results.

Highlights for 1Q14

Operational

  • Occupancy rate at March 31, 2014, was 90.6%, a 92 basis points increase compared to fourth quarter of 2013. Additionally, considering the signed letters of intent, occupancy for 1Q14 was 91.1%.
  • Annualized average leasing rate per square foot for 1Q14 was US$4.74.
  • Terrafina reported a total of 30.9 million square feet (msf) of Gross Leasable Area (GLA) comprised of 217 properties and 228 tenants in the first quarter 2014.
  • 1Q14 leasing activity totaled 1.5 msf, of which 36.0% corresponds to new leasable area and 64.0% to lease renewals. Leasing activity was mainly concentrated in the Queretaro, Cuautitlán Izcalli, Ciudad Juárez Chihuahua, San Luis Potosi and Silao markets.
  • In 1Q14, a BTS contract was signed for the development of 131 thousand square feet. This new development is expected to contribute US$0.6 million to Net Operating Income (NOI) for the 2015 period. The projected return rate, or yield on cost, for the new development is approximately 11.3%.
  • A 120 thousand square foot plot of land was sold in the city of Apodaca, Nuevo Leon for a total sales price of US$0.8 million.

Financial

  • 1Q14 net revenues reached US$37.5 million. In addition, rental revenues increased approximately 0.4% or US$0.1 million compared to 4Q13 reaching US$31.7 million.
  • 1Q14 NOI was US$30.5 million; NOI Margin1 reached 86.4%, 112 basis points lower compared to 4Q13. Moreover, implied cap rate was 8.2%, considering the average share price for 1Q14 of US$1.92 (Ps. 25.08) and 2014 expected NOI of US$125 million.
  • 1Q14 EBITDA reached US$26.9 million; EBITDA Margin1 was 76.2%, a 308 basis points decrease compared to 4Q13.
  • 1Q14 Adjusted Funds for Operations (AFFO) reached US$15.1 million; AFFO margin was 42.4%, a 215 basis points increase compared to 4Q13.
  • 1Q14 distributions totaled US$15.1 million. As a result of 1Q14 operations, Terrafina will pay Ps. 0.5244 per CBFI (US$0.0396 per CBFI) as distributions corresponding to the period from January 1 to March 31, 2014. This represents an increase of 10.0% in terms of pesos compared to 4Q13.
  • An annualized CBFI distribution for 1Q14 was US$0.1585, considering the average share price for 1Q14 of US$1.92 (Ps. 25.08). Terrafina reached a dividend yield of 8.4%.

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

Contacts

in Mexico City:
Francisco Martinez, +52 (55) 3601-0702
Investor Relations Officer
francisco.martinez@terrafina.mx
or
Angel Bernal, +52 (55) 3601-0654
Chief Financial Officer
angel.bernal@terrafina.mx

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Contacts

in Mexico City:
Francisco Martinez, +52 (55) 3601-0702
Investor Relations Officer
francisco.martinez@terrafina.mx
or
Angel Bernal, +52 (55) 3601-0654
Chief Financial Officer
angel.bernal@terrafina.mx