GICSA Announces Consolidated Results for Third Quarter 2017

MEXICO CITY--()--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 ("3Q17") and first nine months ("9M17") periods ended in September 30, 2017. 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

  • On October 19, 2017, Grupo GICSA successfully placed long-term local bonds (Certificados Bursátiles) for Ps. 1,000 million for a tenor of 3.5 years, yielding a floating rate coupon of TIIE 8 + 2.85, as part of its local note program for up to Ps. 9,000 million, or its equivalent in interest units (UDIs) under revolving terms.

Operational

  • GICSA reported a total of 709,201 square meters (m²) of Gross Leasable Area (GLA) comprised of 13 stabilized properties and 2 properties in stabilization process at the close of 3Q17. The proportional GLA during 3Q17 was 438,580 square meters, an increase of 14.36% compared to the same period of the previous year, as a result of the opening of La Isla Vallarta and Forum Cuernavaca.
  • As of 3Q17, the occupancy rate of the stabilized properties was 92.56% a significant increase of 221 bps. This is explained by the increase of the occupancy level at Capital Reforma and Paseo Arcos Bosques, which registered an occupancy rate of 87.45% and 95%, respectively.
  • Average leasing rate per square meter at the end of 3Q17 was Ps. 335, a 0.57% increase compared to 3Q16, which was Ps. 333.
  • GICSA registered an accumulated occupancy cost of 6.65% in 3Q17, due to an increase in same-store sales of 8.39% compared to 3Q16.
  • At the close of 3Q17 GICSA had a total of 18 million of visitors in the shopping malls, an increase of 4.36% compared to 3Q16.

Financial

  • Net operating income (NOI) of the stabilized and under development portfolio reached Ps. 748 million, an increase of 8.26% compared to 3Q16.
  • Consolidated EBITDA in 3Q17 reached Ps. 756 million, while GICSA’s proportional EBITDA was Ps. 470 million, an increase of 10% compared to 3Q16.
  • During 3Q17, net income was Ps. 140 million, a decrease of 15.64% compared to the Ps. 165 million in 3Q16, mainly explained by the net comprehensive financing cost.
  • Consolidated debt in 3Q17 was Ps. 19,875 million; while GICSA’s proportional debt was Ps. 14,784 million, resulting in a loan-to-value ratio of 35.14%.

Pipeline

  • To date, the commercialization of properties under development reached 264,449 m² of GLA under contract and under negotiation. This represents 49.4% of the total space comprising projects in construction.
  • During the quarter, the Company started the construction of Zentro Lomas, which will contribute with 28,794 square meters of GLA to the Company’s portfolio.


For a full version of GICSA’s Third Quarter 2017 Earnings Release, please visit:
http://www.gicsa.com.mx/inversionistas?id=1

 

Conference Call

 

GICSA cordially invites you to its Second Quarter 2017 Conference Call

 

Thursday, October 26, 2017

12:30 p.m. Eastern Time
11:30 a.m. Mexico City Time
 

Presenting for GICSA:

Mr. Diódoro Batalla, Chief Financial Officer
Mr. Rodrigo Assam Bejos – Investor Relations Officer
 

To access the call, please dial:

1 (800) 791 4813 U.S. participants
1 (785) 424 1102 International participants
 

Passcode: GICSA

 

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, 2017, the Company owned 13 income-generating properties and 2 in stabilization process, consisting of nine 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) 709,201 square meters, and a Proportional GLA of 438,580 square meters. Since June 2015, GICSA is listed on the Mexican Stock Exchange under the ticker (BMV: GICSA B).

Contacts

In Mexico:
GICSA
Diódoro Batalla, 5255-5148-0400 Ext. 4444
Chief Financial Officer
dbatalla@gicsa.com.mx
or
Rodrigo Assam, 5255-5148-0400 Ext. 4447
Investor Relations Officer
rassam@gicsa.com.mx
or
In New York:
i-advize Corporate Communications, Inc.
Rafael Borja, 212-406-3693
rborja@i-advize.com

Contacts

In Mexico:
GICSA
Diódoro Batalla, 5255-5148-0400 Ext. 4444
Chief Financial Officer
dbatalla@gicsa.com.mx
or
Rodrigo Assam, 5255-5148-0400 Ext. 4447
Investor Relations Officer
rassam@gicsa.com.mx
or
In New York:
i-advize Corporate Communications, Inc.
Rafael Borja, 212-406-3693
rborja@i-advize.com