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 second quarter 2015 (2Q15) earnings results.
The figures in this report have been prepared in accordance with International Financial Reporting Standards (“IFRS”). Figures presented in this report are presented in millions of Mexican pesos and millions of U.S. dollars. Additionally, figures may vary due to rounding. Terrafina’s financial results included in this report are unaudited. As a result, the mentioned figures in this financial report are preliminary figures and could be adjusted in the future.
Financial and Operational Highlights as of June 30, 2015
- As of June 30, 2015, the occupancy rate was 93.1%, a 200 basis point increase compared to the second quarter of 2014 (2Q14). Additionally, considering the signed letters of intent, occupancy for 2Q15 was 93.8%.
- Annualized average leasing rate per square foot at 2Q15 was US$4.89, a US$0.11 increase compared to 2Q14.
- Terrafina reported a total of 28.3 million square feet (msf) of Gross Leasable Area (GLA) comprised of 196 properties and 204 tenants.
- 2Q15 leasing activity totaled 1.9 msf, of which 15.4% corresponded to new leases, 61.6% are lease renewals and 23.0% correspond to early renewals. Leasing activity was mainly concentrated in the Chihuahua, San Luis Potosi, Ciudad Juarez, Ramos Arizpe, Cuautitlan Izcalli and Toluca markets.
- Total developments as of June 30, 2015 included 570,000 square feet of GLA, which are expected to contribute US$2.6 million to Net Operating Income (NOI) for the 2016 period. The return rate for the expansions was 12.0%.
- 2Q15 rental revenues reached US$31.7 million, a 2.9% or US$0.9 million decrease compared to 2Q14. It is important to mention that as a result of the asset sale that took place in 1Q15, revenues, NOI and EBITDA for the quarter decreased compared to 2Q14 figures, which included these properties.
- 2Q15 NOI was US$30.3 million, a 2.9% or US$0.9 million decrease compared to 2Q14. Moreover, the implied cap rate was 8.3%, considering the average share price for 2Q15 of US$1.99 (Ps. 30.53) and 2015 expected NOI of US$125 million.
- The NOI margin for 2Q15 reached 91.2%, a 277 basis points increase compared to 2Q14.
- 2Q15 EBITDA reached US$27.2 million, a decrease of 1.5% or US$0.4 million compared to 2Q14.
- The EBITDA margin for 2Q15 was 81.8%, a 364 basis point increase compared to 2Q14.
- 2Q15 adjusted funds for operations (AFFO) reached US$19.6 million, a 16.0% increase compared to 2Q14.
- AFFO margin for 2Q15 was 58.6%, a 1,101 basis point increase compared to 2Q14.
- 2Q15 distributions totaled US$19.6 million. As a result of 2Q15 operations, Terrafina will pay Ps.0.4956 per CBFI (US$0.0323 per CBFI) as distributions corresponding to the period from April 1 to June 30, 2015.
- The annualized distribution of 2Q15 was US$0.1291; considering the average closing share price for the quarter of US$1.99 (Ps.30.53), Terrafina’s dividend yield for the quarter was 6.5%.
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