FIBRA Macquarie México Reports Fourth Quarter and Full Year 2016 Results

Fourth Quarter AFFO per Certificate Increases 19.7% YoY

Provides AFFO Outlook for 2017

MEXICO CITY--(BUSINESS WIRE)--FIBRA Macquarie México (FIBRAMQ) (BMV: FIBRAMQ), owner of one of the largest portfolios of industrial and retail/office property in Mexico, announced its financial and operating results for the quarter and twelve months ended December 31, 2016.

Q4 HIGHLIGHTS

• AFFO per certificate of Ps 0.5494, an increase of 19.7% from the prior comparable period
• Achieved overall occupancy of 93.0%, up 80 basis points from the prior comparable period
• Completed refinancing of Ps. 1.2 billion JV-level debt
• Completed sale of two vacant industrial properties in Matamoros as part of its asset recycling program
• Declared distribution of Ps 0.4400 per certificate, an 80.1% AFFO payout ratio

FY16 HIGHLIGHTS

• AFFO per certificate of Ps 2.0762, an increase of 26.8% from FY15
• Strengthened and re-positioned balance sheet by completing refinancing of approximately US$900m
• Completed expansions and acquisitions of 815k sqft of GLA
• Signed a record level of new and renewal leases in industrial portfolio, achieving the highest level of industrial and overall occupancy in FIBRAMQ’s history
• Further enhanced FIBRAMQ’s corporate governance with the Technical Committee now 75% independent and re-approved annually by certificate holders

“In 2016 we delivered positive results across our operations, including a record level of leasing activity, which contributed to strong AFFO and NOI growth for the year. We also completed a refinancing program, which further enhanced our balance sheet and liquidity profile,” said Juan Monroy, FIBRA Macquarie’s chief executive officer. “We remain focused on delivering the value, service and quality that our customers expect from FIBRA Macquarie. With an experienced team of local real estate professionals, and a dedication to our “Customer First” philosophy, we maintain close relationships with our customers and are confident in our ability to continue to fulfill their needs. Furthermore, we have a stable outlook and manageable 2017 lease expirations, allowing us to focus on incremental growth and value-add expansion and redevelopment opportunities across our industrial and retail/office portfolios.”

FINANCIAL RESULTS

For the quarter ended December 31, 2016, FIBRAMQ reported:

• Earnings before interest, tax, depreciation and amortization (EBITDA) of Ps 753.3 million, compared to Ps 631.6 million for the same period in 2015
• Funds from operations (FFO) of Ps 519.4 million, or Ps 0.6402 per certificate, compared to Ps 432.2 million, or Ps 0.5327 per certificate, for the same period in 2015
• Adjusted funds from operations (AFFO) of Ps 445.8 million, or Ps 0.5494 per certificate, compared to Ps 372.5 million, or Ps 0.4591 per certificate, for the same period in 2015

For the twelve months ended December 31, 2016, FIBRAMQ reported:

• EBITDA of Ps 2,837.4 million, compared to Ps 2,268.9 million for the same period in 2015
• FFO of Ps 1,960.3 million, or Ps 2.4161 per certificate, compared to Ps 1,569.0 million, or Ps 1.9338 per certificate, for the same period in 2015
• AFFO of Ps 1,684.6 million, or Ps 2.0762 per certificate, compared to Ps 1,328.7 million, or Ps 1.6376 per certificate, for the same period in 2015

OPERATING RESULTS

Consolidated Portfolio

FIBRAMQ’s total proportionally combined portfolio results were as follows:

TOTAL PORTFOLIO	4Q16	4Q15	Variance	FY16	FY15	Variance
Net Operating Income (NOI)	Ps 812.8m	Ps 687.1m	17.3%	Ps 3,068.1m	Ps 2,504.8m	22.5%
FFO	Ps 519.4m	Ps 432.2m	20.2%	Ps 1,960.3m	Ps 1,569.0m	24.9%
AFFO	Ps 445.8m	Ps 372.5m	19.7%	Ps 1,684.6m	Ps 1,328.7m	26.8%
GLA (’000s sqm) EOP	3,437	3,401	1.1%	3,437	3,401	1.1%
Occupancy EOP	93.0%	92.2%	80bps	93.0%	92.2%	80bps

FIBRAMQ’s proportionally combined same store portfolio results were as follows:

TOTAL PORTFOLIO - SAME STORE	4Q16	4Q15	Variance	FY16	FY15	Variance
Net Operating Income	Ps 806.4m	Ps 628.2m	28.4%	Ps 2,752.4m	Ps 2,275.7m	20.9%
GLA (’000s sqm) EOP	3,412	3,381	0.9%	3,120	3,092	0.9%
Occupancy EOP	92.9%	92.7%	20bps	92.3%	92.4%	10bps
Industrial Retention (LTM)	68%	68%	0bps	68%	79%	-1,100bps
Retail Retention (LTM)	59%	80%	-2,100bps	59%	80%	-2,100bps
Weighted Avg Lease Term Remaining (years) EOP	3.7	3.7	0bps	3.6	3.6	0bps

Note: GLA in FIBRAMQ’s same store portfolio includes completed expansions, and excludes GLA under redevelopment or subject to binding sale agreements, in respect of GLA in existence at 31 December 2015 and 2016. LTM is last twelve months.

Industrial Portfolio

The following table summarizes the operational results for FIBRAMQ’s industrial portfolio during the quarter and year ended December 31, 2016 and the respective prior comparable periods.

INDUSTRIAL PORTFOLIO	4Q16	4Q15	Variance	FY16	FY15	Variance
Net Operating Income	Ps 681.9m	Ps 553.0m	23.3%	Ps 2,546.2m	Ps 1,977.4m	28.8%
GLA (’000s sqft) EOP	32,097	31,820	0.9%	32,097	31,820	0.9%
GLA (’000s sqm) EOP	2,982	2,956	0.9%	2,982	2,956	0.9%
Occupancy EOP	92.7%	91.8%	90bps	92.7%	91.8%	90bps
Average monthly rent per leased (US$/sqm/mth)	$4.48	$4.42	1.4%	$4.48	$4.42	1.4%
Retention (LTM)	68%	79%	-1,100bps	68%	79%	-1,100bps
Weighted Avg Lease Term Remaining (years) EOP	3.4	3.1	7.2%	3.4	3.1	7.2%

FIBRAMQ’s industrial portfolio’s occupancy rate at the end of the 2016 was 92.7%, up 90 basis points over the prior comparable period and up 10 basis points sequentially. Rental rates improved in the fourth quarter, with an average of US$4.48 per leased square meter per month, a 1.4% increase from the prior year.

FIBRAMQ signed 35 leases in the fourth quarter comprising 2.3 million square feet of new and renewal leases during the quarter compared with 1.1 million square feet of new and renewal leases signed in the prior comparable period. Signed leases included 10 new leases totaling 733 thousand square feet, and 25 renewal leases totaling 1.5 million square feet.

Notable new leases included a 226 thousand square foot lease to an existing customer, an automotive parts manufacturer that expanded its operations in Nuevo Laredo; an 85 thousand square foot lease with a plastic injection molding company in Chihuahua; and an 84 thousand square foot lease with an international soft drink and snack manufacturer in Guadalajara.

Additionally, with its experienced team of local real estate professionals, FIBRAMQ continues to implement its “Customer First” strategy which is focused on deepening relationships with customers to encourage retention and to uncover additional opportunities. This includes seeking expansion opportunities to accommodate customers’ growing needs and create value in its portfolio. During the quarter, FIBRAMQ delivered a 215 thousand square foot expansion for Belden de Sonora’s industrial facility in Nogales.

Renewal leases consisted of a broad representation of FIBRAMQ customers located across its geographic footprint. Customers included automotive parts suppliers, electronics and electrical equipment manufacturers and a paper processor, amongst others.

During the fourth quarter, FIBRAMQ experienced a relatively high level of lease expirations. While there was an anticipated high level of customer move-outs arising from a range of customer-specific circumstances, retention improved to 74% in the quarter, which was 68% on a rolling twelve-month basis, a 300 basis points improvement from the prior quarter rolling twelve-month average. During the quarter, ten customers representing 527 thousand square feet of space vacated properties as planned lease terminations. In 2017, FIBRAMQ is well positioned with 14.1% of leased GLA scheduled to expire during the year, compared to 24.3% of leased GLA that expired or were opportunistic early renewals in 2016.

Retail/Office Portfolio

The following table summarizes the proportionally combined results of operations for FIBRAMQ’s retail/office portfolio during the quarter and year ended December 31, 2016 and the respective prior comparable periods.

RETAIL PORTFOLIO	4Q16	4Q15	Variance	FY16	FY15	Variance
Net Operating Income	Ps 130.8m	Ps 134.1m	-2.4%	Ps 521.9m	Ps 527.4m	-1.0%
GLA (’000s sqm) EOP	446	445	0.2%	446	445	0.2%
Occupancy EOP	95.2%	94.9%	30bps	95.2%	94.9%	30bps
Average monthly rent per leased (Ps/sqm)	143.54	142.48	0.7%	143.54	142.48	0.7%
Retention (LTM)	59%	80%	-2,100bps	59%	80%	-2,100bps
Weighted Avg Lease Term Remaining (years) EOP	5.3	5.2	2.7%	5.3	5.2	2.7%

FIBRAMQ increased its GLA, occupancy and average monthly rents versus the prior comparable period. At December 31, 2016, the retail/office portfolio’s occupancy increased by 30 basis points to 95.2% versus the prior comparable period and was up 50 basis points sequentially. FIBRAMQ signed 35 leases representing 20 thousand square meters, which is the retail/office portfolio’s strongest leasing quarter in the past two and half years. This activity included 31 new leases and 4 renewals.

Notable new leases include two leases with Fábricas de Francia, a leading Mexican retailer, consisting of 6,800 square meters and 6,300 square meters at Tecámac Power Center and Tuxtepec shopping center, respectively. Both of these spaces required expansions, and FIBRAMQ added 10,600 square meters to accommodate these two new stores, which opened during the fourth quarter. At Magnocentro, FIBRAMQ signed two notable new leases including a 1,300 square meter lease with a leading, global fashion retailer, and a 600 square meter lease with a high traffic restaurant.

The change in NOI year over the year was due primarily to an increase in the provision for doubtful debts in 2016 compared to 2015. The increase in provision for doubtful debts was as a result of taking a more conservative approach, rather than a higher bad debt experience, and was done in conjunction with taking a more diligent and systematic approach to collections.

PORTFOLIO ACTIVITY

FIBRAMQ continues to evaluate property recycling opportunities to enhance the quality, operating efficiency and growth profile of its overall portfolio. FIBRAMQ also maintains an active pipeline of opportunities focusing on expansions and redevelopment of existing properties and selective development in core markets.

During the fourth quarter, FIBRAMQ continued the construction of two such projects, both of which are expected to be completed during the second quarter of 2017. The first is the redevelopment and expansion of a 54 thousand square foot industrial facility in Ciudad Juárez. Additionally, FIBRAMQ continued construction of a new 145 thousand square foot industrial building in Reynosa where occupancy of its existing buildings was an average of 95% in 2016. Reynosa is an attractive industrial market with high demand and a solid level of leasing activity.

FIBRAMQ completed the previously announced sale of two vacant properties in Matamoros totaling 205 thousand square feet during the quarter. These were vacant buildings and are not representative of the broader portfolio.

BALANCE SHEET AND CAPITAL MARKETS ACTIVITY

As of December 31, 2016, FIBRAMQ had approximately Ps 18.9 billion of debt outstanding, Ps 2,896.3 million available on its undrawn revolving credit facility and Ps 637.7 million of unrestricted cash on hand.

FIBRAMQ’s CNBV regulatory debt to total asset ratio was 39.2% and the regulatory DSCR ratio was 1.1x.

During the fourth quarter, FIBRAMQ closed on a new Ps 1.2 billion, seven-year secured loan facility to opportunistically prepay another secured loan facility that was scheduled to mature in April 2017. The loan is secured with eight retail/office properties which are owned through a 50/50 joint venture with Grupo Frisa.

In 2016, FIBRAMQ was active in repositioning its balance sheet. In total, these activities reduced FIBRAMQ’s weighted average cost of debt to 5.0% per annum, extended its weighted average tenor of debt outstanding to 4.7 years and increased the proportion of fixed rate debt as a percentage of total debt to 87.6%. FIBRAMQ also enhanced its liquidity with the upsizing of its revolving credit facility to US$254 million. FIBRAMQ’s debt capital is sourced through a diversified base of 13 local and foreign counterparties, including increased commitments from existing lenders.

DISTRIBUTION

On February 22, 2017, FIBRAMQ declared a cash distribution for the quarter ended December 31, 2016, of Ps. 0.4400 per certificate. The distribution is expected to be paid on March 10, 2017 to holders of record on March 9, 2017. FIBRAMQ’s certificates will commence trading ex-distribution on March 7, 2017. The distribution of Ps.0.4400 per certificate reflects an AFFO payout ratio of 80.1% for the fourth quarter and 84.8% for the full year.

The payment of cash distributions is subject to the approval of the board of directors of the Manager, the continued stable performance of the properties in the portfolio, and market conditions.

OUTLOOK

FIBRA Macquarie is introducing its outlook for 2017.

FIBRAMQ estimates total AFFO of between Ps. 2.13 and Ps. 2.18 per certificate in 2017. This 2017 AFFO guidance is based on the cash-generating capacity of its existing portfolio and assumes no new acquisitions or divestments, an average exchange rate of Ps. 20.5 per US dollar and no change to the 811,363,500 total certificates on issue.

We maintain confidence in our core operations and expect the underlying fundamentals of both the industrial and retail/office segments to remain steady.

FIBRAMQ will provide 2017 distribution guidance on or before the announcement of first quarter 2017 results in late April 2017. The board of directors of the Manager and management are assessing accretive investment opportunities, including expansions and redevelopments.

This assessment is being made in the context of current market conditions and FIBRAMQ’s carry-forward tax loss position of Ps. 6.1 billion, which allows flexibility to be able to execute on pipeline opportunities using our most efficient source of capital, operating cash flow, over the medium term.

“Our key priority is to be good stewards of capital and focus on what is best for the enterprise and our certificate holders over the long-term to drive Net Asset Value growth,” said Mr. Monroy.

OTHER MATTERS

With the recent change in FIBRA regulations to permit buy-backs of certificates, FIBRAMQ intends to complete all relevant approvals, including certificate holder approval at the 2017 AGM, to have the ability to launch a buy-back program. FIBRAMQ considers it to be prudent and in the best long term interests of investors to have in place maximum flexibility relating to all possible value-accretion opportunities, including an approved buy-back program. If such approvals are obtained, there is no current intent to re-purchase certificates given attractive investment alternatives.

WEBCAST AND CONFERENCE CALL

FIBRAMQ will host an earnings conference call and webcast presentation on Thursday, February 23, 2017 at 7:30 a.m. CT / 8:30 a.m. ET.

The conference call, which will also be audio webcast, can be accessed online at www.fibramacquarie.com or by dialing toll free [phone]. Callers from outside the United States may dial [phone]. Please ask for the FIBRA Macquarie Fourth Quarter 2016 Earnings Call.

An audio replay will be available by dialing [phone] or [phone] for callers outside the United States. The passcode for the replay is 66061563. A webcast archive of the conference call and a copy of FIBRAMQ’s financial information for the fourth quarter 2016 will also be available on FIBRAMQ’s website, http://www.fibramacquarie.com.

ADDITIONAL INFORMATION

For detailed charts, tables and definitions, please refer to the Fourth Quarter 2016 Supplementary Information materials located at http://www.fibramacquarie.com/investors/bolsa-mexicana-de-valoresfilings.

About FIBRA Macquarie

FIBRA Macquarie México (FIBRA Macquarie) (BMV:FIBRAMQ) is a real estate investment trust (fideicomiso de inversión en bienes raíces), or FIBRA, listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores) targeting industrial, retail and office real estate opportunities in Mexico, with a primary focus on stabilized income-producing properties. FIBRA Macquarie’s portfolio consists of 275 industrial properties and 17 retail/office properties, located in 24 cities across 19 Mexican states as of December 31, 2016. Nine of the retail/office properties are held through a 50/50 joint venture with Grupo Frisa. FIBRA Macquarie is managed by Macquarie México Real Estate Management, S.A. de C.V. which operates within the Macquarie Infrastructure and Real Assets division of Macquarie Group. For additional information about FIBRA Macquarie, please visit www.fibramacquarie.com.

Macquarie Infrastructure and Real Assets is a business within the Macquarie Asset Management division of Macquarie Group and a global alternative asset manager focused on real estate, infrastructure, agriculture and energy assets. Macquarie Infrastructure and Real Assets has significant expertise over the entire investment lifecycle, with capabilities in investment sourcing, investment management, investment realization and investor relations. Established in 1996, Macquarie Infrastructure and Real Assets has approximately US$104.1 billion of total assets under management as of September 30, 2016.

About Macquarie Group

Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Macquarie's main business focus is making returns by providing a diversified range of services to clients. Macquarie acts on behalf of institutional, corporate and retail clients and counterparties around the world. Founded in 1969, Macquarie operates in over 27 countries. Macquarie employs over 13,800 people and has assets under management of more than $377 billion (as of September 30, 2016). For more information, please visit www.macquarie.com.

Cautionary Note Regarding Forward-looking Statements

This release may contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ significantly from these forward-looking statements and we undertake no obligation to update any forward-looking statements.

None of the entities noted in this document is an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities.

THIS RELEASE IS NOT AN OFFER FOR SALE OF SECURITIES IN THE UNITED STATES, AND SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED.

THIS ANNOUNCEMENT IS NOT FOR RELEASE IN ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA.

FIBRA MACQUARIE MÉXICO AND ITS CONTROLLED ENTITIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31, 2016 AND DECEMBER 31, 2015
CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)
	Dec 31, 2016	Dec 31, 2015
	$’000	$’000
Current assets
Cash and cash equivalents	612,443	2,223,294
Restricted cash	10,849	9,033
Trade and other receivables, net	116,865	102,431
Value added tax receivable	-	287,020
Other assets	72,677	96,422
Investment properties held for sale	284,130	-
Total current assets	1,096,964	2,718,200
Non-current assets
Restricted cash	39,881	162,099
Other assets	185,323	132,854
Equity-accounted investees	1,084,875	959,363
Goodwill	931,605	931,605
Investment properties	42,466,715	35,639,298
Derivative financial instruments	97,762	-
Total non-current assets	44,806,161	37,825,219
Total assets	45,903,125	40,543,419
Current liabilities
Trade and other payables	480,673	350,300
Interest-bearing liabilities	67,977	937,621
Tenant deposits	21,396	18,925
Income tax payable	1,409	-
Total current liabilities	571,455	1,306,846
Non-current liabilities
Tenant deposits	346,863	306,804
Interest-bearing liabilities	17,946,449	15,409,369
Deferred income tax	1,667	-
Total non-current liabilities	18,294,979	15,716,173
Total liabilities	18,866,434	17,023,019
Net assets	27,036,691	23,520,400
Equity
Contributed equity	18,369,994	18,369,994
Retained earnings	8,666,697	5,150,406
Total equity	27,036,691	23,520,400

FIBRA MACQUARIE MÉXICO AND ITS CONTROLLED ENTITIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2016 AND 2015
CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)
	3 months ended				Year ended
	Dec 31, 2016		Dec 31, 2015		Dec 31, 2016		Dec 31, 2015
	$’000		$’000		$’000		$’000
Property related income	887,916		760,014		3,373,303		2,747,163
Property related expenses	(118,648	)	(113,231	)	(482,752	)	(410,381	)
Net property income	769,268		646,783		2,890,551		2,336,782
Management fees	(49,067	)	(46,723	)	(184,641	)	(198,227	)
Transaction related expenses	(10,756	)	(4,955	)	(37,522	)	(16,032	)
Professional, legal and other expenses	(10,270	)	(8,852	)	(45,796	)	(37,424	)
Total expenses	(70,093	)	(60,530	)	(267,959	)	(251,683	)
Finance costs	(230,440	)	(204,507	)	(936,234	)	(773,813	)
Financial income	2,160		13,219		34,007		106,405
Other income	-		42,371		-		42,371
Share of profits from equity-accounted investees	57,092		13,704		127,285		77,619
Foreign exchange loss	(1,007,353	)	(159,936	)	(2,909,145	)	(2,168,716	)
Net unrealized foreign exchange gain on foreign currency denominated investment property measured at fair value	1,938,900		326,994		5,731,704		3,871,204
Unrealized gain on investment property measured at fair value	156,829		261,912		195,623		668,319
Net unrealized gain on interest rate swaps	117,479		-		97,762		-
Profit before taxes for the period/year	1,733,842		880,010		4,963,594		3,908,488
Current income tax	-		-		(1,409	)	-
Deferred income tax	(1,667	)	-		(1,667	)	-
Net Profit for the period/year	1,732,175		880,010		4,960,518		3,908,488
Other comprehensive income
Other comprehensive income for the period/year	-		-		-		-
Total comprehensive income for the period/year	1,732,175		880,010		4,960,518		3,908,488
Earnings per CBFI*
Basic earnings per CBFI (pesos)	2.13		1.08		6.11		4.82
Diluted earnings per CBFI (pesos)	2.13		1.08		6.11		4.82
^*Real Estate Trust Certificates (Certificados Bursátiles Fiduciarios Inmobiliarios)

FIBRA MACQUARIE MÉXICO AND ITS CONTROLLED ENTITIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)
	Contributed		Retained
	equity		earnings		Total
	$’000		$’000		$’000
Total equity at January 1, 2015	18,376,480		2,476,442		20,852,922
Total comprehensive income for the year	-		3,908,488		3,908,488
Total comprehensive income for the year	-		3,908,488		3,908,488
Transactions with equity holders in their capacity as equity holders:
- Cost directly attributable to follow-on equity placement	(6,486	)	-		(6,486	)
- Distributions to CBFI holders	-		(1,234,524	)	(1,234,524	)
Total transactions with equity holders in their capacity as equity holders	(6,486	)	(1,234,524	)	(1,241,010	)
Total equity at December 31, 2015	18,369,994		5,150,406		23,520,400
Total equity at January 1, 2016	18,369,994		5,150,406		23,520,400
Total comprehensive income for the year	-		4,960,518		4,960,518
Total comprehensive income for the year	-		4,960,518		4,960,518
Transactions with equity holders in their capacity as equity holders:
- Distributions to CBFI holders	-		(1,444,227	)	(1,444,227	)
Total transactions with equity holders in their capacity as equity holders	-		(1,444,227	)	(1,444,227	)
Total equity at December 31, 2016	18,369,994		8,666,697		27,036,691

FIBRA MACQUARIE MÉXICO AND ITS CONTROLLED ENTITIES
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)
	Year ended
	Dec 31, 2016		Dec 31, 2015
	$’000		$’000
	Inflows/(Outflows)		Inflows/(Outflows)
Operating activities:
Profit for the year before taxes	4,963,594		3,908,488
Adjustments for:
Net unrealized foreign exchange gain on foreign currency denominated investment property measured at fair value
	(5,731,704	)	(3,871,204	)
Unrealized revaluation gain on investment property measured at fair value	(195,623	)	(668,319	)
Straight line rental income adjustment	(50,074	)	(57,262	)
Tenant improvements amortization	19,993		12,182
Leasing expense amortization	36,713		28,311
Financial income	(34,007	)	(106,405	)
Provision for bad debt	35,914		41,981
Net foreign exchange loss	3,067,348		2,256,123
Finance costs recognized in profit for the year	936,234		773,813
Other income	-		(42,371	)
Share of profits from equity-accounted investees	(127,285	)	(77,619	)
Net unrealized loss on interest rate swaps	(97,762	)	-
Movements in working capital:
Decrease/(increase) in receivables	283,468		(135,793	)
Decrease in payables	137,926		61,805
Net cash flows from operating activities	3,244,735		2,123,730
Investing activities:
Asset acquisitions	(447,945	)	(3,005,265	)
Asset disposals	37,611		-
Maintenance capital expenditure and other capitalized costs	(685,202	)	(419,143	)
Distributions received from JV, net of equity contribution	1,773		48,671
Net cash flows used in investing activities	(1,093,763	)	(3,375,737	)
Financing activities:
Financial income	34,007		106,405
Repayment of interest-bearing liabilities	(16,121,464	)	-
Interest paid	(881,079	)	(735,389	)
Proceeds from interest-bearing liabilities, net of facility charges	14,688,741		-
Capital raising costs	-		(6,486	)
Distributions to CBFI holders	(1,444,227	)	(1,234,524	)
Net cash flows used in financing activities	(3,724,022	)	(1,869,994	)
Net decrease in cash and cash equivalents	(1,573,050	)	(3,122,001	)
Cash and cash equivalents at the beginning of the year	2,394,426		5,603,834
Foreign exchange gain on cash and cash equivalents	(158,203	)	(87,407	)
Cash and cash equivalents at the end of the year*	663,173		2,394,426
^*Included in the cash and cash equivalent balance at the end of the year is restricted cash of $50.7 million (2015: $171.1 million).