MEXICO CITY--(BUSINESS WIRE)--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 2015 (1Q15) earnings results.
Highlights for 1Q15
Operational
- As of March 31, 2015, the occupancy rate was 93.7%, a 305 basis point increase compared to the first quarter of 2014 (1Q14). Additionally, considering the signed letters of intent, occupancy for 1Q15 was 94.0%.
- Annualized average leasing rate per square foot at year-end was US$4.87, a 13 dollar cent increase compared to 1Q14.
- Terrafina reported a total of 28.2 million square feet (msf) of Gross Leasable Area (GLA) comprised of 196 properties and 208 tenants in 1Q15.
- 1Q15 leasing activity totaled 1.7 msf, of which 6.9% corresponded to new leasable area, 83.8% are lease renewals and 9.3% correspond to early renewals. Leasing activity was mainly concentrated in the Ciudad Juarez, Chihuahua, Ramos Arizpe, Cuautitlan Izcalli and Guadalajara markets.
- Total developments for 1Q15 included 489,000 square-feet of GLA, which are expected to contribute US$2.1 million to Net Operating Income (NOI) for the 2016 period. The return rate for the expansions made during 1Q15 was 12.5%.
- The sale of a portfolio comprised of 3.7 msf of land reserves and industrial space located in the northeast region for US$101 million took place during 1Q15.
Financial
- 1Q15 rental revenues reached US$33.4 million, a 5.4% or US$1.7 million increase compared to 1Q14.
- 1Q15 NOI was US$31.9. million, a 4.4% or US$1.4 million increase compared to 1Q14. Moreover, implied cap rate was 8.2%, considering the average share price for 1Q15 of US$2.11 (Ps. 31.52) and 2015 expected NOI of US$125 million. 2015 NOI guidance was revised to US$125 million as a result of the recent asset sale.
- The NOI margin for 1Q15 reached 86.1%, a 28 basis points decrease compared to 1Q14.
- 1Q15 EBITDA reached US$28.5 million, an increase of 5.6% or US$1.5 million compared to 1Q14.
- The EBITDA margin for 1Q15 was 76.8%, a 58 basis points increase compared to 1Q14.
- 1Q15 adjusted funds for operations (AFFO) reached US$19.9 million, a 31.6% increase compared to 1Q14.
- 1Q15 AFFO margin was 53.3%, a 1,085 basis point increase compared to 1Q14.
- 1Q15 distributions totaled US$19.9 million. As a result of 1Q15 operations, Terrafina will pay Ps.0.4880 per CBFI (US$0.0327 per CBFI) as distributions corresponding to the period from January 1 to March 31, 2015.
- The annualized distribution of 1Q15 was US$0.1309; considering the average closing share price for the quarter of US$2.11 (Ps.31.52), Terrafina’s dividend yield for the quarter was 6.2%.
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