MEXICO CITY--(BUSINESS WIRE)--GRUPO GICSA, S.A.B. de C.V. ("GICSA" or "the Company") (BMV:GICSA), a Mexican leading company specialized in the development, investment, commercialization and operation of shopping malls, corporate offices, industrial buildings and mixed use properties, announced today its results for the third quarter ("3Q16") period ended September 30, 2016. All figures have been prepared in accordance with International Financial Reporting Standards ("IFRS") and are stated in millions of Mexican pesos (Ps.). GICSA’s financial results presented in this report are unaudited; therefore figures mentioned throughout this report may present adjustments in the future.
Main Highlights
Corporate
• GICSA launched a new category in shopping centers in Mexico, Malltertainment®, under the Explanada® brand. The Malltertainment® category is founded upon four pillars: size, entertainment, mixed commercial spaces and community. To date, Explanada® has five locations in Puebla, León, Querétaro, Pachuca and Culiacán.
• On October 24, 2016, Grupo GICSA placed long-term local bonds (Certificados Bursátiles) for the equivalent of Ps. 3,000 million for a tenor of 7 years, yielding a fixed coupon rate of 6.95%, as part of its local note program for up to Ps. 6,000 million, or its equivalent in Investment Units (UDIs) under revolving terms. The issuance was made in UDIs with a real rate of 6.95%.
Pipeline
• GICSA added five new projects to its development pipeline under the Explanada® concept. During 3Q16, construction has already begun in Puebla and León.
• To date, the commercialization of properties under development reached 183,262 m² of GLA under contract and under negotiation. This represents 47.31% of the total space comprising projects in construction, and a 10.14% increase in square meters leased, compared to 2Q16.
• The Company decided that the Reforma 156 property will remain as part of the stabilized portfolio, while developments in Las Plazas Outlet Norte and La Isla Playa del Carmen are excluded from GICSA’s development pipeline to be evaluated in the future.
• The Company consolidated its participation in the Paseo Coapa project, increasing its total 57.5% stake to a 74.5% stake in the new development. Additionally, this implied the acquisition of 40% of the current operating business, generating revenue for the Company upon the signing of this transaction.
Operational
• GICSA reported a total of 620,150 square meters (m²) of Gross Leasable Area (GLA) comprised of 13 properties at the close of 3Q16. The proportional GLA during 3Q16 was 391,313 square meters, an increase of 24 basis points compared to the same period of the previous year.
• In 3Q16, occupancy rate reached 90.65%, a 14 basis points increase compared to 3Q15.
• Average leasing rate per square meter at the end of 3Q16 was Ps. 333, an 8.47% increase compared to 3Q15, which was Ps. 307.
• GICSA registered an increase in same-store sales of 13% in 3Q16 compared to 7.10% in 3Q15, and a total of 17 million of visitors in the shopping malls of the stabilized properties in 3Q16, an increase of 4.47% compared to 3Q15.
Financial
• During 3Q15, operating income reached Ps. 908 million, an increase of 14.61% compared to the Ps. 792 million in 3Q15.
• Net operating income (NOI) of the stabilized and under development portfolio reached Ps. 691 million, an increase of 5.84% compared to 3Q15.
• NOI Margin in 3Q16 was 83.38% an increase of 211 basis points compared to 3Q15.
• Consolidated EBITDA in 3Q16 reached Ps. 687 million, while GICSA’s proportional EBITDA was Ps. 442 million.
• Consolidated debt in 3Q16 was Ps. 15,848 million, while GICSA’s proportional debt was Ps. 10,777 million, resulting in a loan-to-value ratio of 30%.
For a full version of GICSA’s Third Quarter 2016 Earnings Release, please visit:
http://www.gicsa.com.mx/inversionistas?id=1
Conference Call
GICSA cordially invites you to its Third Quarter 2016 Conference Call
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Monday, October 31, 2016 |
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| 12:00 p.m. Eastern Time | |||
| 10:00 a.m. Mexico City Time |
| To access the call, please dial: | |||
| 1-800-311-9401 U.S. participants | |||
| 1-334-323-7224 International participants | |||
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Passcode: 87477 |
About the Company
GICSA is a leading company in the development, investment, commercialization and operation of shopping malls, corporate offices and industrial warehouses well known for their high quality standards, which transform and create new development spaces, lifestyles and employment in Mexico, in accordance to its history and executed projects. As of September 30, 2016, the Company owned 13 income-generating properties, consisting of seven shopping malls, four mixed use projects (which include four shopping malls, four corporate offices and one hotel), and two corporate office buildings, representing a total Gross Leasable Area (GLA) 620,150 square meters, and a Proportional GLA of 391,313 square meters. Since June 2015, GISCA is listed on the Mexican Stock Exchange under the ticker (BMV: GICSA B).
