GICSA Announces Consolidated Results for Fourth 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 fourth quarter ("4Q17") and twelfth months ("2017") periods ended in December 31, 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.

GICSA’s financial results presented in this report are unaudited; therefore figures mentioned throughout this report may present adjustments in the future.

Main Highlights

Operational

  • GICSA reported a total of 709,095 square meters (m²) of Gross Leasable Area (GLA) comprised of 13 stabilized properties and 2 properties in stabilization process at the close of 2017. The proportional GLA during 4Q17 was 438,562 square meters, an increase of 4.15% compared to the same period of the previous year.
  • As of 2017, the occupancy rate of the stabilized properties was 93.53% a significant increase of 311 bps. This is explained by the increase of the occupancy level at Forum Tlaquepaque, Capital Reforma, Arcos Bosques and Masaryk 111.
  • Average leasing rate per square meter at the end of 4Q17 was Ps. 351, a 2.65% increase compared to 4Q16, which was Ps. 342.
  • GICSA registered an accumulated occupancy cost of 6% in 2017, due to an increase in same-store sales of 5.34% in the same period.
  • At the close of 2017 GICSA had a total of 73 million of visitors in the shopping malls of the stabilized properties, an increase of 6.37% compared to 4Q16.

Financial

  • Net operating income (NOI) of the stabilized and under development portfolio reached Ps. 2,961 million, an increase of 4.09% compared to 2016.
  • Consolidated EBITDA in 2017 reached Ps. 3,018 million, while GICSA’s proportional EBITDA was Ps. 1,892 million, an increase of 5.98% and 5.43% compared to 2016.
  • During 2017, net income was Ps. 1,288 million, an increase of 23.27% compared to the Ps. 1,045 million in 2016.
  • At the close of 4Q17, the Company refinanced all its debt maturities due 2018, successfully and early, for Ps. 5,172 million, corresponding to the loans for Capital Reforma and Arcos Bosques.
  • Consolidated debt in 2017 was Ps. 22,152 million; while GICSA’s proportional debt was Ps. 16,939 million.
  • During the preparation of the 2017 financial information, the Company identified the need to reclassify certain line items under Non-Current Assets. These do not affect results for the period, nor stockholders’ equity nor Total Current Assets and Non-Current Assets previously reported during the first, second, and third quarter of 2017 and for the full year period ended December 31, 2016. This situation has been discussed with the Audit Committee and with our external auditors. For more information, please see the financial statements section of this report.

Pipeline

  • As of December 31, 2017, the commercialization of properties under development reached an advance of 285,387 square meters of GLA under contract. This represents 53.26% of the total space comprising projects in construction, an increase of 426 basis points compared to 4Q16.
  • During 4Q17, we began the delivery of spaces at Interlomas expansion, La Isla Merida and Paseo Queretaro.

Corporate

  • Recently, GICSA received the Socially Responsible Company (ESR) certification, which accredits us as an organization voluntarily and publicly committed with a management that is socially responsible and of continuous improvement, as part of our culture and business strategy.
  • On February 26, 2018, our Board of Directors approved the direct and independent development of project Cero5Cien, without detracting the focus away from our core business, particularly in the mixed-use segments, shopping centers and corporate office spaces. We believe that this project will not require additional CAPEX as it is funded from pre-sales. As of December 31, 2017, 38 units had been sold.

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

Conference Call

 

GICSA cordially invites you to its Fourth Quarter 2017 Conference Call

 

Wednesday, February 28, 2018

11:00 AM Eastern Time
10:00 AM Mexico City Time
 

Presenting for GICSA:

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

To access the call, please dial:

1 (877) 888 4291 U.S. participants
1 (785) 424 1878 International participants

Passcode: 44272

 

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 December 31, 2017, the Company owned 15 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) 709,095 square meters, and a Proportional GLA of 438,562 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
Financial Planning and 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
Financial Planning and 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