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, leasing and management of industrial real estate properties in Mexico, today announced its first quarter 2016 (1Q16) 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, unless otherwise stated. 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.
This document may include forward-looking statements that may imply risks and uncertainties. Terms such as "estimate", "project", "plan", "believe", "expect", "anticipate", "intend", and other similar expressions could be construed as previsions or estimates. Terrafina warns readers that declarations and estimates mentioned in this document, or realized by Terrafina’s management imply risks and uncertainties that could change in function of various factors that are out of Terrafina’s control. Future expectations reflect Terrafina’s judgment at the date of this document. Terrafina reserves the right or obligation to update the information contained in this document or derived from this document. Past or present performance is not an indicator to anticipate future performance.
Financial and Operating Highlights as of March 31, 2016
- As of March 31, 2016, the occupancy rate was 93.3%, a 6 basis point increase compared to the fourth quarter of 2015 (4Q15) and a 40 basis point decrease compared to the first quarter of 2015 (1Q15). Additionally, considering signed letters of intent (LOI), occupancy for 1Q16 was 94.0%.
- Annualized average leasing rate per square foot at 1Q16 was US$4.89, a US$0.02 increase compared to 1Q15.
- Terrafina reported a total of 30.1 million square feet (msf) of Gross Leasable Area (GLA) comprised of 209 properties and 217 tenants in 1Q16.
- 1Q16 leasing activity totaled 1.8 msf, of which 22.9% corresponded to new leases, 48.2% to lease renewals and 28.9% to early renewals. Leasing activity was mainly concentrated in the Ciudad Juarez, Ramos Arizpe, Chihuahua, Monterrey, San Luis Potosi and Toluca markets.
- Total developments for 1Q16 included 202,000 square feet of GLA, which are expected to contribute US$0.9 million to Net Operating Income (NOI) for the 2017 period. The expected return rate for the developments that took place in 1Q16 is 9.3%*.
- 1Q16 rental revenues reached US$32.6 million, a 2.5% or US$0.8 million decrease compared to 1Q15. It is important to mention that 1Q16 rental revenues in dollars decreased as a result of the asset sale that took place during 1Q15.
- 1Q16 NOI was US$31.8 million, a 0.5% or US$0.1 million decrease compared to 1Q15. Moreover, implied cap rate was 9.7%, considering the average share price for 1Q16 of US$1.63 (Ps. 29.39) and 2016 expected NOI of US$133 million.
- The NOI margin for 1Q16 reached 87.0%, a 89 basis point increase compared to 1Q15.
- 1Q16 EBITDA reached US$28.5 million, an increase of 0.2% or US$0.1 million compared to 1Q15.
- The EBITDA margin for 1Q16 was 78.2%, a 134 basis point increase compared to 1Q15.
- 1Q16 adjusted funds for operations (AFFO) reached US$16.6 million, a US$1.8 million decrease compared to 1Q15.
- The AFFO margin for 1Q16 was 45.1%, a 819 basis point decrease compared to 1Q15.
- 1Q16 distributions totaled US$16.6 million. As a result of 1Q16 operations, Terrafina will distribute Ps.0.4951 per CBFI (US$0.0273 per CBFI) for distributions corresponding to the January 1 to March 31, 2016 period.
- The annualized distribution of 1Q16 was US$0.1092; considering the average share price for the quarter of US$1.63 (Ps.29.39),Terrafina’s dividend yield for the quarter was 6.7%.
*Expected return is not guaranteed. Final results may vary.
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