MEXICO CITY--(BUSINESS WIRE)--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 first quarter ("1Q18") period ended March 31, 2018. 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.
- GICSA reported a total of 772,161 square meters (m²) of Gross Leasable Area (GLA) comprised of 13 stabilized properties and 2 properties in stabilization process at the close of 1Q18. The proportional GLA was 470,114 square meters, an increase of 13.28% compared to the same period of the previous year and an increase of 48% compared to the proportional GLA reported during the IPO.
- As of 1Q18, the occupancy rate of the stabilized properties was 93.25% a significant increase of 256 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 1Q18 was Ps. 347, a 4.83% increase compared to 1Q17, which was Ps. 331.
- GICSA registered an accumulated occupancy cost of 8% in 1Q18, due to an increase in same-store sales of 5.59% in the same period.
- At the close of 1Q18 GICSA had a total of 18 million of visitors in the shopping malls of the stabilized properties, an increase of 10.27% compared to 1Q17.
- Net operating income (NOI) of the stabilized and under development portfolio reached Ps. 890 million, an increase of 14.38% compared to 1Q18.
- Consolidated EBITDA in 1Q18 reached Ps. 934 million, while GICSA’s proportional EBITDA was Ps. 594 million, an increase of 18.69% and 17.89%, respectively, compared to 1Q17.
- At the close of 1Q18, net income was Ps. 639 million; while GICSA’s proportional net income was Ps. 410 million.
- Consolidated debt at the close of 1Q18 was Ps. 22,266 million; while GICSA’s proportional debt was Ps. 17,095 million.
- As of March 31, 2018, the commercialization of properties under development reached an advance of 267,647 square meters of GLA under contract. This represents 56.75% of the total space comprising projects in construction.
- On March 22, the opening of Paseo Interlomas expansion was carried out, adding 40,257 m2 of commercial GLA, 11.257 m2 of additional GLA that it was initially planned, and 22,606 m2 of office space GLA adding a total of 62,863 m2 of GLA to the Company's portfolio.
- On April 26, we will open La Isla Merida with 53,395 m2 of GLA. As of March 31, 71% of the area is under contract.
- During this quarter, the Company started the construction of the residential complex Cero5Cien, and of March 31, 2018, 41 units are under contract.
On March 15, the Company announced a relevant event regarding an
agreement with an important group of its investors at project level,
with respect to 14 property developments whereby:
- The corporate agreements and business equity between GICSA and the Investors will remain, as it is as of today, with respect to the property developments that represents the greater share of the Joint Portfolio, besides this, GICSA will renew its long-term management and operational commitments thereof.
- Eleven developments of the Joint Portfolio will be restructured, then GICSA will have a 100% ownership in seven of them and the Investors will have a 100% ownership of the remaining four developments.
- All other GICSA's property portfolio remains under its ownership and control, with no change at all.
- The agreements are subject to the approval of GICSA’s corporate management and the Investors, and the authorization and approvals from the Mexican Antitrust Commission (COFECE), as well as the legal approval of the creditors (financial institutions that have granted credits for each case).
As aforementioned, as of the date of the financial statements, there are facts and circumstances out of control of the Company, which make the transaction not effective during 1Q18; thus, the management decided not to make any record in the statement of financial position.
- Starting on the first quarter, Reforma 156 will report 0% occupancy, due to the building was vacated as part of the agreement announced in the relevant event on March 15
For a full version of GICSA’s First Quarter 2018 Earnings Release,
GICSA cordially invites you to its First Quarter 2018 Conference Call
Thursday, April 26, 2018
12:00 PM Eastern Time
11:00 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) 830 2576 U.S. participants
1 (785) 424 1726 International participants
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 March 31, 2018, the Company owned 15 income-generating properties and 2 in stabilization process, consisting of nueve shopping malls, cuatro mixed use projects (which include four shopping malls, four corporate offices and one hotel), and dos corporate office buildings, representing a total Gross Leasable Area (GLA) 772,161 square meters, and a Proportional GLA of 470,114 square meters. Since June 2015, GICSA is listed on the Mexican Stock Exchange under the ticker (BMV:GICSA B).