Fibra Inn Announces Consolidated Results for the Fourth Quarter 2015

MONTERREY, Mexico--()--Deutsche Bank Mexico, S.A., Institución de Banca Múltiple, Trust Division F/1616 or Fibra Inn (BMV:FINN13) (“Fibra Inn” or “the Company”), a Mexican real estate investment trust specializing in the hotel industry serving the business traveler, today announced its non-audited fourth quarter 2015 results for the period ended December 31, 2015 (“4Q15”). These results were prepared in accordance with International Financial Reporting Standards (“IFRS”) and are stated in nominal Mexican pesos (Ps.).

4Q15 Financial Highlights:

  • Fibra Inn concluded the quarter with 40 hotels under operation and one binding agreement, with 6,832 rooms, of which 171 are under construction and 152 are in the acquisition process.
  • Total Revenue: reached Ps. 368.1 million, comprised of room revenue of Ps. 345.3 million and rental revenue of Ps. 22.7 million, an increase of 43.4% compared to 4Q14.
  • NOI (1): Ps. 138.3 million, an increase of 45.6% compared to the Ps. 94.9 million reported in 4Q14.
  • Adjusted EBITDA (2): Ps. 123.0 million, a 58.0% increase compared to the Ps. 77.9 million in 4Q14.
  • Net Income: Ps. 43.8 million, 11.9% of net margin. Excluding acquisition and corporate-related expenses, net income would have been Ps. 63.4 million, or 17.2% of the net margin.
  • FFO (3): Ps. 110.9 million, a 39.3% increase compared to the Ps. 79.6 million reported in 4Q14.
  • Distributions to Holders (4): Ps. 92.4 million, a 23.9% increase compared to Ps. 74.6 million in 4Q14. Distribution is equivalent to Ps. 0.2115 per CBFI. This represents an annualized dividend yield of 6.2%.

Same-Store Sales for the 34 comparable hotels (5) with the same number of available rooms:

  • Room Revenues: Ps. 331.4 million; an increase of 16.1% compared to Ps. 285.5 million in 4Q14.
  • Occupancy: 59.3%, an increase of 1.9 pp. Considering the 2.6% increase in the number of available rooms due to the expansions, occupancy would have been 57.8%.
  • Average Daily Rate (“ADR”): Ps. 1,119.9; an increase of 12.4%.
  • Revenue per Available Room (“RevPAR”): Ps. 664.3, an increase of 16.1% compared to Ps. 572.4 for 4Q14. Including the effect of the 2.6% increase in the number of available rooms following the expansion of the comparable hotel portfolio, RevPAR would be equal to Ps. 647.2.

Full Year 2015 Highlights:

  • Total Revenue: reached Ps. 1,309.9 million, an increase of 48.1% compared to 2014.
  • NOI (1): Ps. 482.8 million, or 36.9% of the margin, representing an increase of 50 basis points compared to the 36.4% reported in the previous year.
  • Adjusted EBITDA (2): reached Ps. 396.3 million, or 30.3%, of the margin. This result is in line with the 30.4% reported in 2014.
  • FFO (3): Ps. 385.0 million, or 29.4% of the margin, representing a 20 basis point increase compared to the 29.2% reported in 2014.
  • Distribution for Holders (4): Ps. 338.1 million; a 42.6% increase compared to the Ps. 237.2 million reported in 2014. Distribution is equivalent to Ps. 0.7736 per CBFI. This represents an annualized dividend yield of 5.6%.

Recent Events:

  • Three Recent Acquisitions: Hampton Inn by Hilton Chihuahua, City Express Chihuahua and City Express Junior Chihuahua for Ps. 444.3 million, plus acquisition expenses.
  • One Hotel under a Binding Agreement: Courtyard by Marriott Chihuahua for Ps. 234.4 million, plus acquisition expenses.
  • Conclusion of two developments: The Courtyard by Marriott Saltillo and the Fairfield Inn & Suites by Marriott Coatzacoalcos began operations.
  • Implementation of Level 1 ADR Program: Fibra Inn’s ADR began to trade on the OTC markets on December 28 under the ticker symbol DFBRY. The Company selected Bank of New York Mellon as the depositary bank.

As of December 31, 2015:

  • Cash: Ps. 830.5 million.
  • Bank Debt is Ps. 69.4 million (6), plus an additional debt issuance for Ps. 1,847.9 (6) million, representing a 21.6% loan-to-value as well as a coverage ratio for the debt service of 6.5 times.
  • Equity: Ps. 7,040.5 million. CAPEX during the quarter was equal to Ps. 28.6 million.
   
1 NOI is the calculation of the Fibra’s revenue (rent and other revenue) minus operating expenses for administration, maintenance, lodging, utilities, fees, royalties, marketing and promotion, as well as property tax and insurance.
2 Adjusted EBITDA excludes acquisition and organization expenses.
3 FFO is calculated as the Adjusted EBITDA plus interest gain less interest expense and foreign exchange rate.
4 Calculated using 437,019,542 CBFIs outstanding on December 31, 2015. Yield is based on a Ps. 13.91 per CBFI.
5 Of the 41 hotels of the total portfolio, 34 are comparable, excluding 6 that are not. The following three are recently-built and therefore have no operating history. These are: the Hampton Inn by Hilton Hermosillo, Courtyard by Marriott Saltillo and the Fairfield Inn & Suites by Marriott Coatzacoalcos; as well as the 3 hotels that joined in December and that were not part of the portfolio for at least half of the quarter, including: the Hampton Inn by Hilton Chihuahua, City Express Chihuahua and the City Express Junior Chihuahua. Additionally, the Courtyard by Marriott Chihuahua was excluded, as it is a hotel under a binding agreement and under construction.
6 Net expenses payable; the principal amounts are Ps. 100 million and Ps. 1,875.4 million, respectively.
 

For the full version of this report, please visit http:/www.fibrainn.mx/en/financial-information.php

Contacts

In Monterrey, Mexico:
Fibra Inn
Lizette Chang, IRO, 52 1 (81)1778-5926
lchang@fibrainn.mx
or
In New York:
i‐advize Corporate Communications, Inc.
Maria Barona / Melanie Carpenter, 212-406-3691/92
mbarona@i-advize.com / mcarpenter@i-advize.com
Twitter: @fibrainn

Contacts

In Monterrey, Mexico:
Fibra Inn
Lizette Chang, IRO, 52 1 (81)1778-5926
lchang@fibrainn.mx
or
In New York:
i‐advize Corporate Communications, Inc.
Maria Barona / Melanie Carpenter, 212-406-3691/92
mbarona@i-advize.com / mcarpenter@i-advize.com
Twitter: @fibrainn