FIBRA Macquarie México Reports Fourth Quarter and Full-Year 2015 Financial Results, Including a 28% Increase in Quarterly AFFO

Highlights

  • Focused real estate management, disciplined acquisition activity and stronger U.S. dollar drove a 27.8% increase in quarterly AFFO per certificate in 4Q15
  • Growing industrial activity and a recovery in consumer purchasing power drove an increase in portfolio-wide occupancy, which reached the upper end of the guidance range at 92.2%
  • Distribution of Ps. 0.4600 per certificate for the fourth quarter declared, a 29.9% year-on-year increase, bringing full year distributions above upper end of guidance range
  • Distribution guidance of between Ps.1.74 and Ps.1.84 per certificate for the full year 2016, subject to market conditions

MEXICO CITY--()--FIBRA Macquarie México (FIBRA Macquarie) (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 full year ended December 31, 2015.

Manager Statement for the Fourth Quarter 2015

FIBRA Macquarie achieved its financial and operational goals for 2015 through a focused effort on maximizing the value of its real estate portfolio and disciplined capital deployment. By 4Q15 all of the acquisitions completed during the year contributed to Adjusted Funds From Operations (AFFO) for a full quarter. This achievement, complemented by operational improvements and a further strengthening of the U.S. dollar, drove growth in AFFO of 32.2% on a full year basis.

Fair value of net assets increased 12.8% resulting in a net asset value per certificate of Ps.28.99.

“We launched our ‘Customer First’ initiative during the quarter to enhance customer satisfaction by identifying and addressing the specific needs of our tenants,” said Juan Monroy, FIBRA Macquarie’s chief executive officer. “In addition, tenant expansions that accommodate the growth needs of these tenants contributed to improved customer retention and AFFO growth.”

Occupancy levels in the retail/office segment of FIBRA Macquarie’s portfolio remained high during the quarter. FIBRA Macquarie continues to focus on enhancing the value of its portfolio by executing on a number of expansions and remodeling projects. Expected benefits from these initiatives are (1) increased AFFO, (2) increased traffic to the properties, and (3) improved tenant mix. The added gross leasable area (GLA) of these expansions is over 15,800 square meters, a 10.6% increase to the four properties involved. High-quality tenants such as Fábricas de Francia, Cinemex and Coppel will join the tenant base or expand their footprint in 2016.

“We are excited by our prospects for continued growth into 2016 as we continue to build on our scalable platform by focusing on our three strategic pillars of proactive asset management, disciplined capital deployment and an efficient capital structure, combined with a relentless emphasis on customer satisfaction”, added Mr. Monroy.

Increased distribution for the Fourth Quarter announced

On February 25, 2016, FIBRA Macquarie declared a distribution for the quarter ended December 31, 2015, of Ps.0.4600 per certificate. The distribution is expected to be paid on March 10, 2016 to holders of record on March 9, 2016. FIBRA Macquarie certificates will commence trading ex-distribution on March 7, 2016. The distribution represents a payout of 97.1% of the AFFO generated in the fourth quarter and brings total distributions to 94.9% of AFFO for the full year.

2016 Distribution Guidance

FIBRA Macquarie estimates total distributions of between Ps.1.74 and Ps.1.84 per certificate in 2016 based on the cash-generating capacity of its existing portfolio.

This 2016 distribution guidance assumes no new acquisitions, an average exchange rate of Ps.18.00 per US dollar and no change to the 811,363,500 total certificates on issue. FIBRA Macquarie intends to pay distributions on a quarterly basis.

The payment of cash distributions is at all times 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.

Proportionately combined financial metrics for the three and twelve months ended December 31, 2015 (unaudited in millions unless otherwise stated)

                                 

 

  4Q 2015   4Q 2014   Variance   Variance   Total 2015   Total 2014   Variance   Variance

Metric

  Ps.   Ps.   Ps.   (%)   Ps.   Ps.   Ps.   (%)

Total Revenues

808.1 642.6 165.5 25.7% 2,942.1 2,341.0 601.2 25.7%

Net Operating Income

687.1 533.0 154.2 28.9% 2,504.8 1,988.6 516.2 26.0%

EBITDA

631.6 473.2 158.4 33.5% 2,268.9 1,783.4 485.5 27.2%

Funds From Operations

432.2 334.9 97.3 29.1% 1,569.0 1,184.6 384.4 32.5%

Adjusted Funds From Operations

384.3 300.7 83.7 27.8% 1,391.7 1,052.9 338.8 32.2%
 

 

Proportionately combined financial metrics per certificate

                                 

 

  4Q 2015   4Q 2014   Variance   Variance  

Total 2015

 

Total 2014

  Variance   Variance

Metric (per certificate)

  Ps.   Ps.   Ps.   (%)  

(Ps.) Total

 

(Ps.) Total

  Ps.   (%)

Net Operating Income

0.8469 0.6569 0.1900 28.9% 3.0871 2.9940 0.0931 3.1%

EBITDA

0.7784 0.5832 0.1952 33.5% 2.7965 2.6851 0.1113 4.1%

Funds From Operations

0.5327 0.4127 0.1200

29.1%

1.9338 1.7835 0.1503 8.4%

Adjusted Funds From Operations

0.4737 0.3706 0.1031 27.8% 1.7153 1.5852 0.1300 8.2%

Number of Certificates (in millions of CBFIs)

811.36 811.36 0 0.0% 811.36 664.19 147.18 22.2%
 

The primary drivers for an increase of 27.8% in the AFFO per certificate in the fourth quarter of 2015 compared to the fourth quarter in 2014 were:

  • Ps.0.0689 (+18.6%) from the appreciation of the U.S. dollar;
  • Ps.0.0665 (+17.9%) from the net contribution of acquisitions; and
  • Ps.0.0049 (+1.3%) increase in net same-store income.

Gains in AFFO per certificate were partially offset by:

  • Ps.0.0306 (-8.3%) primarily from a decrease in interest income; and
  • Ps.0.0065 (-1.8%) from an increase in tenant improvements (TIs), leasing commissions and capex, calculated on a normalized basis.

Non-IFRS Profitability Margins (Proportionately Combined)

                         

 

  4Q 2015   4Q 2014   Variance   Total 2015   Total 2014   Variance

Metric

  (% of revenues)   (% of revenues)   (bps)   (% of revenues)   (% of revenues)   (bps)
Total Revenues (Ps. millions) 808.1 642.6 165.5 2,942.1 2,341.0 601.2
Net Operating Income Margin 85.0% 82.9% 209.5 85.1% 84.9% 18.9
EBITDA Margin 78.2% 73.6% 452.2 77.1% 76.2% 93.5
Funds From Operations Margin 53.5% 52.1% 137.6 53.3% 50.6% 272.7
Adjusted Funds From Operations Margin 47.6% 46.8% 77.5 47.3% 45.0% 232.6
 

Cost efficiencies resulted in year-over-year improvements in all margins on a proportionately combined basis. Net operating income (NOI) margin increased by 210 bps driven by lower property-related expenses. These cost efficiencies positively impacted both the FFO and AFFO margins, which have also benefited from a stronger U.S. dollar.

Summary of operating metrics

                     
  Industrial segment   Retail segment
Metric  

As at
December 31,
2015

 

As at
December 31,
2014

  Variance  

As at
December 31,
2015

 

As at
December 31,
2014

  Variance
GLA (square meters) 3.0 million   2.7 million   11.1% 444,667   443,731   0.2%
Occupancy rate 91.8% 90.0% 1.8% 94.9% 94.1% 0.8%
Average monthly rent per leased square meter US$ 4.42 US$ 4.46 -0.9% Ps 142.48 Ps 139.79 1.9%
LTM tenant retention rate 77% 72% 5.0% 81% 69% 12.0%
Weighted average lease term (by annualized base rent) 3.1 years 3.1 years 0.0% 5.7 years 5.7 years 0.0%
 

The 11.1% increase in industrial GLA was driven by the three acquisitions closed during the year. Occupancy increases in both the industrial and retail segments were the key to reaching the goal for the proportionately combined portfolio. Lease terms remained stable.

Same-Store Analysis

                 

 

  2015   2014   Variance  

for the 3 months ended December 31,

  Ps.   Ps.   Ps.   %
Lease rental income 696.1 600.5 95.6 15.9%
Expenses recharged to tenants 38.3 42.1 -3.8 -9.1%
Property income 734.4 642.6 91.7 14.3%
Property management expense -21.3 -22.0 0.6 -2.9%
Repairs & maintenance -30.6 -18.3 -12.2 66.8%
Other property related expenses -61.3 -69.3 8.1 -11.6%
Property Expenses -113.2 -109.6 -3.6 3.2%
NOI 621.2 533.0 88.2 16.5%
 

Same-store rental income increased primarily as a result of movements in the U.S. dollar/Mexican Peso exchange rate and increases in rents generally. The positive impact of these items was partially offset by a decrease in recoveries from certain industrial tenants.

Industrial Portfolio

Occupancy in FIBRA Macquarie’s industrial portfolio increased to 91.8% in the fourth quarter, up 40 bps compared with the third quarter of 2015 and 180 bps versus the prior comparable period, representing a three-year high in industrial occupancy. The increases were primarily driven by a successful leasing effort that attracted a number of new, high-quality customers. In a reflection of the value creation efforts carried out since launch, the independent appraisal by CBRE resulted in a year-over-year increase of 2.6% in the valuation of the properties in the industrial portfolio.

FIBRA Macquarie renewed leases for approximately 612,800 square feet of industrial property during the fourth quarter, a result of the continued strong performance of its internal property administration platform as well as continued improvement in industrial property market fundamentals.

FIBRA Macquarie signed new leases for approximately 460,800 square feet of industrial GLA. Highlights include the following:

  • 134,500 square feet leased to a logistics supplier serving a major international beverage maker in Monterrey;
  • 109,500 square feet leased to a packaging materials production and distribution facility in Ciudad Juárez;
  • 59,300 square feet leased to a logistics provider serving major electronics manufacturers in Mexicali;
  • 55,000 square feet leased to an electronics supplier to major appliance brands in Reynosa; and
  • 36,000 square feet leased to a manufacturer of hardware for home use in Tijuana.

Expansions are another key component of the industrial strategy. Currently there are two expansions underway that will add 21,400 square feet of GLA. Additional expansions are being negotiated in a variety of key industrial markets.

The average monthly rental rate of US$4.42 per square meter in the fourth quarter of 2015 compared to US$4.46 per square meter reported in the fourth quarter of 2014.

Gains in monthly industrial rental rates per square meter were:

  • US$0.05 (+1.0%) from contractual increases;
  • US$0.02 (+0.5%) from higher-than-portfolio-average rents from acquisitions; and
  • US$0.01 (+0.3%) from increases at renewal.

These gains in monthly industrial average rental rates per square meter were offset by decreases of:

  • US$0.05 (-1.1%) from lower-than-portfolio-average rents on renewed leases, but signed at current market rates;
  • US$0.04 (-0.8%) from lower-than-portfolio-average rents on new leases, but signed at current market rates;
  • US$0.03 (-0.6%) from exchange rate losses on Mexican Peso-denominated leases; and
  • US$0.01 (-0.3%) from move-outs.

Leases signed prior to December 2008 represent 13.9% of the portfolio based upon rental revenue and 12.6% of the portfolio based upon GLA. These leases have an average weighted remaining lease term of 2.7 years (based upon annualized rental revenue). If these leases were renewed today, the estimated impact on average monthly rental rates equates to US$0.03 per square meter, indicating that the portfolio remains well-positioned to continue to absorb this gradual lease roll-over.

During the first half of 2016, the portfolio will experience an irregular amount of move outs that will affect retention and occupancy rates. FIBRA Macquarie is confident that the real estate fundamentals will remain positive in most industrial markets (with vacancy rates below 9% across the market) and that the manufacturing sector, led by the automotive industry, will provide robust demand in the foreseeable future.

Retail/Office Portfolio

Occupancy levels across FIBRA Macquarie’s retail/office portfolio, including properties owned through a joint venture, remained at 94.9% during the fourth quarter. Occupancy levels across the portfolio in FIBRA Macquarie’s wholly-owned retail portfolio reached 98.0% in the fourth quarter of 2015, an increase of 50 bps compared with the fourth quarter of 2014. The occupancy level for the joint venture portfolio was 90.7% at the end of the fourth quarter, an increase of 110 bps compared with the fourth quarter of 2014. In addition, the independent appraisal conducted by CBRE reported a year-over-year increase of 4.6% in the value of the properties in the retail/office portfolio.

Foot traffic through properties in the wholly-owned portfolio increased 6.7% year-over-year and reached more than 6.6 million visitors in the fourth quarter of 2015. The increase in foot traffic contributed to a reported increase in revenues of movie theaters and supermarkets in the wholly-owned portfolio of 6.7% and 11.2%, respectively, for the full year 2015 compared with the same period last year.

FIBRA Macquarie has started the construction of a shell for Fábricas de Francia, a well-known department store chain, in its Tecamac Power Center that will add 6,700 square meters of GLA. In addition, construction is planned for a 6,300 square meter Fábricas de Francia building in Multiplaza Tuxtepec. Both stores are expected to be opened by the fourth quarter of 2016, driving additional foot traffic, stronger rental rates and increased variable rents. At the Plaza San Roque property, a new store construction was recently completed for Coppel, another well-known department store chain, with operations commencing on January 29, 2016. Cinemex, a major movie theater chain, added screens to their Plaza San Roque movie theater. There are ongoing negotiations with a potential new customer seeking to lease approximately 1,200 square meters of new office GLA at City Shops Valle Dorado, where 2,200 square meters of common area is planned to be converted into additional office GLA, adding to the property’s existing office GLA which is fully leased.

On a proportionately combined basis, average monthly rental rates per square meter increased to Ps.142.48 in the fourth quarter of 2015 compared with Ps.139.79 in the prior comparable period. This increase reflects several factors, explained below.

Gains in monthly retail/office rental rates per square meter were:

  • Ps.3.62 (+2.6%) from higher-than-portfolio-average rents on new leases; and
  • Ps.3.23 (+2.3%) from contractual increases.

These gains in monthly retail/office rental rates per square meter were partially offset by a decrease of Ps.4.15 (-3.0%) from move outs.

Acquisitions

As previously announced, on February 9, 2016 FIBRA Macquarie acquired two well-located, high-quality industrial properties and an adjacent land site in Ciudad Juárez, Chihuahua, for total consideration of US$21.7 million (approximately Ps.398.6 million). The two existing properties comprise 35,300 square meters (380,000 square feet) of GLA while the land parcel provides an opportunity to expand an existing building and add a further 6,500 square meters (70,000 square feet) of GLA. FIBRA Macquarie expects the transaction to generate stabilized NOI of US$1.8 million (approximately Ps.33.8 million) on an annualized basis in 2016. The expected contribution to NOI implies a stabilized capitalization rate for the properties of 8.5%.

During the full year 2015, FIBRA Macquarie deployed or committed an aggregate of US$214.6 million across four transactions. The three stabilized industrial acquisitions closed during 2015 added 290,000 square meters of GLA of high-quality, strategically-located industrial properties. In addition, there are two build-to-suit projects that are expected to be completed by the second half of 2016 and the first half of 2017, respectively, as well as three land parcels.

Refinancing Program

In the fourth quarter of 2015 FIBRA Macquarie sought approval from certificate holders for a new refinancing program. The holders’ meeting was held on December 17, 2015 and the refinancing program was approved by a significant majority of those present in person or by proxy. Through the refinancing program, FIBRA Macquarie intends to extend the term of its debt, secure competitive funding rates, enhance flexibility in managing assets and diversify its sources of funding. The refinancing program is expected to comprise a combination of bonds, term loans and a revolving credit facility, up to a total principal amount of approximately US$1.0bn.

Disclosures Relating to Leverage

In accordance with applicable FIBRA regulations, as of December 31, 2015 FIBRA Macquarie complies with:

  • The leverage limit of 50%, with a leverage ratio of 40.3%; and
  • The minimum debt service coverage ratio (DSCR) of 1.0x, with a DSCR of 1.4x.
                   
Leverage Ratio1                 Ps.’000
Bank Debt           16,346,990
Bonds -
Total Assets 40,543,419
 

Leverage

16,346,990 = 40.30% (Regulatory Limit 50%)

Ratio =

40,543,419
 

 

                       

Debt Service Coverage Ratio ( ICD t )

            Ps.’000
                    t=0   6 t=1
AL 0   Liquid Assets 2,223,294 -
IVA t Value added tax receivable - 287,020
UO t Net Operating Income after dividends - 1,606,913
LR 0 Revolving Debt Facilities - -
I t Estimated Debt Interest Expense - 1,196,573
P t Scheduled Debt Principal Amortization2 - 940,000
K t Estimated Recurrent Capital Expenditures - 127,987
D t   Estimated Non-Discretionary Development Costs       -   576,485
ICD t =

2,223,294 + 287,020 + 1,606,913

= 1.4x (Regulatory Minimum 1.0x)

1,196,573 + 940,000 + 127,987 + 576,485

 

1.

 

Excludes debt associated with the Grupo Frisa JV as this is accounted for using the equity accounting method

2.

Excludes debt of Ps.575.7m associated with the Grupo Frisa JV expiring in April 2017

 

Debt Disclosure

 
Debt Associated with Wholly-Owned Properties
Lenders1  

Loan
Currency

 

Outstanding
balance USD
(in millions)2

 

Outstanding
balance Ps.
(in millions)2

  Rate p.a.   Amortization3   Security Type4  

Commence-
ment Date

 

Maturity
Date

 

Extended
Maturity
Date5

Blackstone through its subsidiary in Mexico BRE
Debt Mexico II, S.A. de C.V., SOFOM E.N.R.6

  USD   363.8   6,259.20   5.07%   Interest Only  

Guaranty Trust,
among others

  12-Dec   17-Dec   19-Dec
 

Blackstone through its subsidiary in Mexico BRE
Debt Mexico II, S.A. de C.V., SOFOM E.N.R.6

USD 184.3 3,171.50

90 day Libor
+ 3.85%

Interest Only

Guaranty Trust,
among others

12-Dec 17-Dec 19-Dec
 

Blackstone through its subsidiary in Mexico BRE
Debt Mexico II, S.A. de C.V., SOFOM E.N.R.6

USD 80.2 1,379.90 5.07% Interest Only

Guaranty Trust,
among others

12-Dec 17-Dec 19-Dec
 

Blackstone through its subsidiary in Mexico BRE
Debt Mexico II, S.A. de C.V., SOFOM E.N.R.6

USD 85.7 1,474.40

90 day Libor
+ 3.80%

Interest Only

Guaranty Trust,
among others

12-Dec 17-Dec 19-Dec
 
Metropolitan Life Insurance Company USD 181.6 3,124.40 4.50% Interest Only

Guaranty Trust,
among others

12-Dec 18-Jan -
 

Banco Nacional de México, S.A.

Ps. 54.5 937.6 6.73% Interest Only

Guaranty Trust,
among others

13-Nov 16-Oct -
 
Total 950 16,347.00
 
 
                 
Debt Associated with Grupo Frisa JV7            
Lenders1  

Loan
Currency

 

Outstanding
balance USD
(in millions)2

 

Outstanding
balance Ps.
(in millions)2

 

Rate p.a.

 

Amortization3

 

Security Type4

 

Commence
-ment Date

 

Maturity
Date

 

Extended
Maturity
Date5

Blackstone through its subsidiary in Mexico BRE
Debt Mexico II, S.A. de C.V., SOFOM E.N.R.8

Ps. 33.5 575.7 6.89% Interest Only

Guaranty Trust,
among others

14-Mar 17-Apr 19-Mar
Metropolitan Life Insurance Company Ps. 16.3 280 7.61% Interest Only

Guaranty Trust,
among others

14-Mar 19-Apr -
Total 49.7 855.7
 

1.

 

Some of these facilities have been syndicated with other lenders

2.

Includes capitalized upfront borrowing costs which are amortized over the term of the relevant loan . FX: Ps. 17.2065 per USD.

3.

Interest only subject to compliance with certain debt covenants

4.

Lenders have recourse only to the properties, cash flows and other reserves constituted under the facilities, except under certain limited circumstances in which the lenders have recourse against the borrowers and/or FIBRA Macquarie

5.

Subject to meeting certain conditions

6.

BRE Debt Mexico II, S.A. de C.V., SOFOM. E.N.R. assigned its rights as lender to Banco Mercantil del Norte, S.A., Institución de Banca Múltiple, Grupo Financiero Banorte, División Fiduciaria, as trustee of guaranty Trust number F/745465

7.

Proportionate share

8.

BRE Debt Mexico II, S.A. de C.V., SOFOM. E.N.R. assigned its rights as lender to Banco Mercantil del Norte, S.A., Institución de Banca Múltiple, Grupo Financiero Banorte, División Fiduciaria, as trustee of guaranty Trust number F/745464

 

For statutory debt disclosure, please refer to the Mexican Bolsa website (www.bmv.com.mx).

Further details

For detailed charts, tables and definitions, please refer to the Fourth Quarter 2015 Supplementary Information materials located at http://www.fibramacquarie.com/investors/bolsa-mexicana-de-valores-filings.

Webcast and Conference Call

FIBRA Macquarie will host an earnings conference call and webcast presentation on Friday, February 26, 2016 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 +1 (877) 304 8957. Callers from outside the United States may dial +1 (973) 638 3235. Please ask for the FIBRA Macquarie Fourth Quarter 2015 Earnings Call.

An audio replay will be available through February 28, 2016, by dialing +1 (855) 859 2056 or +1 (404) 537 3406 for callers outside the United States. The passcode for the replay is 35270047. A webcast archive of the conference call and a copy of FIBRA Macquarie’s financial information for the fourth quarter 2015 will also be available on FIBRA Macquarie’s website, www.fibramacquarie.com.

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 276 industrial properties and 17 retail/office properties, located in 24 cities across 19 Mexican states as of February 9, 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$103.7 billion of total assets under management as of September 30, 2015.

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 more than 60 office locations in 29 countries. Macquarie employs approximately 13,500 people and has assets under management of over US$354 billion (as of September 30, 2015).

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.

All figures in this release are subject to rounding. Any arithmetic inconsistencies are due to rounding.

 

 

FIBRA MACQUARIE MÉXICO AND ITS CONTROLLED ENTITIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31, 2015 AND 2014

CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)
  Dec 31, 2015 Dec 31, 2014
    $’000 $’000
Current assets
Cash and cash equivalents 2,223,294 5,425,062
Restricted cash 9,033 31,617
Trade and other receivables, net 102,431 116,944
Value added tax receivable 287,020 199,129
Other assets 96,422 99,925
Total current assets 2,718,200 5,872,677
 
Non-current assets
Restricted cash 162,099 147,155
Other assets 132,854 58,682
Equity-accounted investees 959,363 930,415
Goodwill 931,605 931,605
Investment properties 35,639,298 27,612,778
Total non-current assets   37,825,219 29,680,635
Total assets   40,543,419 35,553,312
 
Current liabilities
Trade and other payables 350,300 248,555
Interest-bearing liabilities 937,621 -
Other liabilities - 93,598
Tenant deposits 18,925 15,474
Total current liabilities 1,306,846 357,627
 
Non-current liabilities
Tenant deposits 306,804 251,025
Interest-bearing liabilities 15,409,369 14,091,738
Total non-current liabilities   15,716,173 14,342,763
Total liabilities   17,023,019 14,700,390
       
Net assets   23,520,400 20,852,922
 
Equity
Contributed equity 18,369,994 18,376,480
Retained earnings   5,150,406 2,476,442
Total equity   23,520,400 20,852,922
 
 

 

FIBRA MACQUARIE MÉXICO AND ITS CONTROLLED ENTITIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2015 AND 2014

CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)
  3 months ended   Year ended

Dec 31,
2015

 

Dec 31,
2014

Dec 31,
2015

 

Dec 31,
2014

    $’000   $’000   $’000   $’000
 
Property related income 760,014 597,293 2,747,163 2,205,946
Property related expenses   (113,231)   (99,159)   (410,381)   (332,432)
Net property income   646,783   498,134   2,336,782   1,873,514
 
Management fees (46,723) (52,894) (198,227) (160,003)
Transaction related expenses (4,955) 2,162 (16,032) (29,732)
Professional, legal and other expenses   (8,852)   (6,800)   (37,424)   (44,968)
Total expenses   (60,530)   (57,532)   (251,683)   (234,703)
 
Finance costs (204,507) (169,255) (773,813) (678,740)
Financial income 13,219 38,967 106,405 79,981
Other income 42,371 51,960 42,371 105,940
Share of profits from equity-accounted investees 13,704 213,139 77,619 237,860
Foreign exchange loss (159,936) (1,106,194) (2,168,716) (1,432,735)

Net unrealized foreign exchange gain on foreign currency
denominated investment property measured at fair value

326,994 1,819,091 3,871,204 2,389,699
Unrealized gain on investment property measured at fair value   261,912   530,800   668,319   939,386
Profit for the period/year   880,010   1,819,110   3,908,488   3,280,202
 
Other comprehensive income
Other comprehensive income for the period   -   -   -   -
Total comprehensive income for the period/year   880,010   1,819,110   3,908,488   3,280,202
 
Earnings per CBFI*
Basic earnings per CBFI (pesos) 1.08 2.24 4.82 4.94
Diluted earnings per CBFI (pesos)   1.08   2.24   4.82   4.94
 

*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, 2015 AND 2014

CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)

Contributed
equity

Retained
earnings

Total
$’000 $’000 $’000
Total equity at January 1, 2014 13,673,801 342,243 14,016,044
Total comprehensive income for the year - 3,280,202 3,280,202
Total comprehensive income for the year - 3,280,202 3,280,202
 
Transactions with equity holders in their capacity as equity holders:
- Issued CBFIs 4,855,396 - 4,855,396
- Costs directly attributable to equity placement (152,717) - (152,717)
- Distributions to CBFI holders - (1,146,003) (1,146,003)
Total transactions with equity holders in their capacity as equity holders 4,702,679 (1,146,003) 3,556,676
             
Total equity at December 31, 2014   18,376,480   2,476,442   20,852,922
 
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:
- Issued CBFIs - - -
- Costs directly attributable to 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
 
   

FIBRA MACQUARIE MÉXICO AND ITS CONTROLLED ENTITIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014

CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)
Year ended
Dec 31, 2015 Dec 31, 2014
$’000 $’000
   

Inflows /
(Outflows)

 

Inflows /
(Outflows)

Operating activities:
Profit for the year 3,908,488 3,280,202
Adjustments for:

Net unrealized foreign exchange gain on foreign currency
denominated investment property measured at fair value

(3,871,204)

(2,389,699)

Unrealized gain on investment property measured at fair value (668,319) (939,386)
Straight line rental income adjustment (57,262) (41,445)
Tenant improvement amortization 12,182 12,209
Leasing expense amortization 28,311 19,123
Financial income (106,405) (79,981)
Provision for bad debts 41,981 11,301
Net foreign exchange loss 2,256,123 1,460,709
Finance costs recognized in profit for the year 773,813 678,740
Other income (42,371) (60,980)
Share of profits from equity-accounted investees (77,619) (237,860)
Movements in working capital:
(Increase)/decrease in receivables (135,793) 352,721
Decrease/(increase) in payables   61,805   (20,840)
Net cash flows from operating activities   2,123,730   2,044,814
Investing activities:
Investment property - asset acquisitions (3,005,265) (537,760)
Maintenance capital expediture and other capitalized cost (419,143) (209,319)
Investment in equity-accounted investees - (665,048)
Distributions received from equity-accounted investees   48,671   20,601
Net cash flows used in investing activities   (3,375,737)   (1,391,526)
Financing activities:
Proceeds from interest-bearing liabilities, net of facility charges - 255,468
Repayment of interest-bearing liabilities - (663,013)
Financial income 106,405 79,981
Interest paid (735,389) (625,917)
(Capital raising costs)/follow-on equity offering (6,486) 4,730,072
Distribution to CBFI holders (1,234,524) (1,146,003)
Net cash flows from financing activities (1,869,994) 2,630,588
Net (decrease)/increase in cash and cash equivalents (3,122,001) 3,283,876
Cash and cash equivalents at the beginning of the year 5,603,834 2,347,932
Foreign exchange gain on cash and cash equivalents   (87,407)   (27,974)
Cash and cash equivalents at the end of the year*   2,394,426   5,603,834

 

*Included in the cash and cash equivalent balance at the end of the year is restricted cash of $171.1 million (2014: $178.8 million).

Contacts

Investor relations:
FIBRA Macquarie México
Toe Matsumura, +52 (55) 9178 7768
Cell: +52 1 (55) 4450 5018
toe.matsumura@macquarie.com
or
For press queries:
CarralSierra PR & Strategic Communications
Jose Manuel Sierra, +52 (55) 5286 0793
Cell: +52 1 (55) 5105 5907
jmsierra@carralsierra.com.mx
or
Diego Arrazola, +52 (55) 5286 0793
Cell: +52 1 (55) 3977 2778
darrazola@carralsierra.com.mx

Contacts

Investor relations:
FIBRA Macquarie México
Toe Matsumura, +52 (55) 9178 7768
Cell: +52 1 (55) 4450 5018
toe.matsumura@macquarie.com
or
For press queries:
CarralSierra PR & Strategic Communications
Jose Manuel Sierra, +52 (55) 5286 0793
Cell: +52 1 (55) 5105 5907
jmsierra@carralsierra.com.mx
or
Diego Arrazola, +52 (55) 5286 0793
Cell: +52 1 (55) 3977 2778
darrazola@carralsierra.com.mx