Market Overview

FIBRA Macquarie México Reports Second Quarter 2018 Results

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- AFFO per Certificate Increases 6.2% YoY -

- Increases FY18 AFFO guidance to between Ps 2.28 and Ps 2.33
per certificate
-

- Increases FY18 Distribution guidance to Ps 1.60 per
certificate
-

FIBRA Macquarie México (FIBRAMQ) (BMV:FIBRAMQ), owner of one of the
largest portfolios of industrial and retail property in Mexico,
announced its financial and operating results for the quarter ended June
30, 2018.

SECOND QUARTER 2018 HIGHLIGHTS

  • Increase in AFFO per certificate of 6.2% YoY to a record Ps 0.6042
  • Average industrial and retail rental rates increased 2.1% and 5.1%
    YoY, respectively
  • Increase in occupancy of 63 bps QoQ
  • Increase in quarterly NOI margin of 153 basis points YoY
  • Post-quarter completed sale of 35 non-strategic assets for proceeds of
    US$80.2 million
  • Authorization of a quarterly cash distribution of Ps 0.39 per
    certificate
  • Increases FY18 AFFO guidance to between Ps 2.28 and Ps 2.33 per
    certificate and FY18 distribution guidance to Ps 1.60 per certificate

MANAGEMENT COMMENTARY

"Our results in the second quarter demonstrate FIBRAMQ's ongoing
commitment to operational excellence and the execution of our strategic
initiatives," said Juan Monroy, FIBRA Macquarie's chief executive
officer. "We delivered 6.2% growth in AFFO per certificate, along with
robust leasing momentum in both our industrial and retail portfolios. A
key highlight of the quarter was the successful signing and subsequent
sale of 35 non-strategic industrial assets. This transaction enhances
our overall portfolio composition and key financial metrics.
Consequently, we are better positioned to concentrate resources in our
strategic markets and ultimately redirect the proceeds into value
creating initiatives, including expansions, development and certificate
buyback for cancellation. We are pleased with our ongoing progress and
remain focused on executing on our strategy."

FINANCIAL AND OPERATING RESULTS

Consolidated Portfolio

FIBRAMQ's total results were as follows:

 

TOTAL PORTFOLIO   2Q18   2Q17   Variance   YTD 18   YTD 17   Variance
Net Operating Income (NOI)   Ps 834.4m   Ps 792.6m   5.3%   Ps 1,659.2m   Ps 1,631.4   1.7%
EBITDA Ps 778.5m Ps 738.9m 5.4% Ps 1,546.3m Ps 1,517.7m 1.9%
Funds From Operations (FFO) Ps 546.1m Ps 522.8m 4.5% Ps 1,093.0m Ps 1,072.7m 1.9%
FFO per certificate Ps 0.6905 Ps 0.6443 7.2% Ps 1.3796 Ps 1.3221 4.4%
Adjusted Funds From Operations (AFFO) Ps 477.9m Ps 461.4m 3.6% Ps 955.7m Ps 934.6m 2.3%
AFFO per certificate Ps 0.6042 Ps 0.5687 6.2% Ps 1.2062 Ps 1.1519 4.7%
NOI Margin 88.5% 87.0% 153 bps 88.1% 87.1% 98 bps
AFFO Margin 50.7% 50.6% 5 bps 50.7% 49.9% 83 bps
GLA ('000s sqm) EOP 3,417 3,448 -0.9% 3,417 3,448 -0.9%
Occupancy EOP 92.8% 93.0% -16 bps 92.8% 93.0% -16 bps
Average Occupancy   92.5%   92.4%   11 bps   92.4%   92.2%   21 bps
 

FIBRAMQ's same store portfolio results were as follows:

 

TOTAL PORTFOLIO - SAME STORE   2Q18   2Q17   Variance   YTD 18   YTD 17   Variance
Net Operating Income (NOI)   Ps 834.4m   Ps 785.3m   6.1%   Ps 1,658.1m   Ps 1,610.7m   2.9%
GLA ('000s sqm) EOP 3,417 3,406 0.3% 3,404 3,392 0.4%
Occupancy EOP 92.8% 92.9% -3 bps 93.0% 93.2% -23 bps
Industrial Retention (LTM) 82.9% 74.1% 882 bps 82.9% 74.1% 882 bps
Weighted Avg Lease Term Remaining (years) EOP   3.5   3.5   0.0%   3.5   3.5   -0.1%
 

Industrial Portfolio

The following table summarizes the results for FIBRAMQ's industrial
portfolio:

 

INDUSTRIAL PORTFOLIO   2Q18   2Q17   Variance   YTD 18   YTD 17   Variance
Net Operating Income (NOI)   Ps 686.2m   Ps 653.5m   5.0%   Ps 1,369.3m   Ps 1,358.5m   0.8%
NOI Margin 91.6% 90.0% 162 bps 91.5% 90.1% 136 bps
GLA ('000s sqft) EOP 31,866 32,215 -1.1% 31,866 32,215 -1.1%
GLA ('000s sqm) EOP 2,960 2,993 -1.1% 2,960 2,993 -1.1%
Occupancy EOP 92.6% 92.6% -2 bps 92.6% 92.6% -2 bps
Average Occupancy 92.2% 92.0% 22 bps 92.0% 92.3% -31 bps
Average monthly rent per leased (US$/sqm) EOP $4.69 $4.59 2.1% $4.69 $4.59 2.1%
Customer retention LTM 83% 75% 788 bps 83% 75% 788 bps
Weighted Avg Lease Term Remaining (years) EOP   3.3   3.1   3.7%   3.3   3.1   3.7%
 

For the three months ended June 30, 2018, FIBRAMQ's industrial portfolio
delivered net operating income (NOI) of Ps 686.2 million, an increase of
5.0% compared to Ps 653.5 million in the prior comparable period. NOI
margin increased 162 basis points from the prior year period to 91.6%
driven primarily by higher rental rates.

The industrial portfolio occupancy rate as of June 30, 2018 was 92.6%,
consistent with the same quarter last year, and a 71 basis point
increase from the end of the first quarter. FIBRAMQ began floor
renovations on a 127 thousand square foot building in Monterrey that
became vacant during the quarter. This property has been removed from
GLA whilst under renovation, and will be added back to GLA once works
are complete, which is expected by the end of the first quarter of 2019.
Rental rates improved compared to the same quarter last year, with a
closing weighted average of US$4.69 per leased square meter per month, a
2.1% increase. This rate increase was driven primarily by contractual
increases, along with positive renewal spreads.

FIBRAMQ signed 28 new and renewal leases in the second quarter of 2018,
comprising 2.1 million square feet. Signed leases included six new
leases totaling 350 thousand square feet and 22 renewal leases totaling
1.7 million square feet. Notable new leases in the quarter include a
plastics manufacturer in Ciudad Juárez, a logistics firm in Monterrey,
and three automotive parts suppliers in Matamoros, Reynosa and
Hermosillo. Renewal activity was robust and diversified across various
geographies and customer types, including a global manufacturer of
health products, a glass manufacturer, and a fiber optics cable
manufacturer.

For the twelve-month period ending June 30, 2018, FIBRAMQ achieved a
retention rate of 83%, showing ongoing improvement from the prior
comparable period.

Retail Portfolio

The following table summarizes the proportionally combined results of
operations for FIBRAMQ's retail portfolio:

 

RETAIL PORTFOLIO   2Q18   2Q17   Variance   YTD 18   YTD 17   Variance
Net Operating Income (NOI)   Ps 148.2m   Ps 139.1m   6.6%   Ps 289.9m   Ps 272.9m   6.2%
NOI Margin 76.5% 75.1% 136 bps 74.8% 74.5% 27 bps
GLA ('000s sqm) EOP 457 455 0.4% 457 455 0.4%
Occupancy EOP 94.5% 95.3% -77 bps 94.5% 95.3% -77 bps
Average Occupancy 94.5% 95.1% -63 bps 94.6% 95.1% -49 bps
Average monthly rent per leased (Ps/sqm) EOP Ps 154.34 Ps 146.82 5.1% Ps 154.34 Ps 146.82 5.1%
Customer retention LTM 69% 64% 479 bps 69% 64% 479 bps
Weighted Avg Lease Term Remaining (years) EOP   4.6   5.0   -8.4%   4.6   5.0   -8.4%

FIBRAMQ's retail portfolio delivered NOI of Ps 148.2 million, an
increase of 6.6% from the prior year period. Year-over-year growth was
driven by a 5.1% increase in average monthly rents and a focus on cost
controls resulting in an improvement in expenses. During the second
quarter, FIBRAMQ signed 66 leases, representing 11.8 thousand square
meters. This activity included 19 new leases and 47 renewals. Renewal
volume was meaningfully greater than historical average, and was the
most active quarter over the past four year period.

PORTFOLIO ACTIVITY

FIBRAMQ continues to effectively execute its strategy to deploy retained
AFFO into accretive investments.

Expansions

A key element of this strategy is the targeted expansion of existing
properties on a pre-leased basis along with selective development in
core markets. During the first half of 2018, FIBRAMQ deployed or
committed US$8.1 million.

During the second quarter, FIBRAMQ completed a 59 thousand square foot
expansion for a manufacturer of personal care products in Reynosa.

Sale of non-strategic asset portfolio

Subsequent to the end of the second quarter, FIBRAMQ closed on the sale
of 35 non-strategic industrial assets for US$80.2 million of cash
proceeds. FIBRA Macquarie received US$61.0 million of the sale proceeds
at closing and will receive US$11.2 million and US$8.0 million 18 months
and 24 months following closing, respectively. Initial proceeds were
used to fully repay the US$40.0 million outstanding balance on FIBRA
Macquarie's revolver, with the remaining US$21.0 million held as
unrestricted cash to be invested in expansions, development and
certificate buybacks for cancellation. Two additional properties with an
aggregate value of US$7.2 million remain under contract for sale.

The properties included in the transaction are located in Mexico's
northern markets of Matamoros, Reynosa, Ciudad Juárez, Chihuahua,
Mexicali and Tijuana. These assets contributed Ps. 118.4 million in NOI
for the twelve month period ending June 30, 2018. They had a combined
occupancy of 75.8% at the end of the second quarter, average monthly
rent of US$3.64 per square meter, and GLA of 2,584 thousand square feet
(240.1 thousand square meters).

In total, including the two assets under contract for sale, FIBRA
Macquarie has sold, or agreed to sell, 44 non-strategic properties at an
aggregate 2.2 percent premium to their book value, generating a total of
US$117.5 million in proceeds. This includes exiting four tertiary,
single-property markets. These sales have increased FIBRAMQ's focus on
core assets and core markets and enhanced the overall portfolio
composition and key financial metrics. Additionally, FIBRA Macquarie
expects to achieve improved operational efficiencies, with expected NOI
margin expansion driven by higher average occupancy and rental rates in
the remaining portfolio. With the completion of this disposition, FIBRA
Macquarie has substantially accomplished its near-term asset recycling
objectives.

The following table demonstrates the realized enhancements across key
operating and financial metrics, based upon second quarter results
adjusted for the pro forma impact of the 37 assets included in the
transaction.

Key Industrial Portfolio Metrics

             
  2Q18   2Q18  
    Actual  

Pro forma1

  Variance
Net operating income (NOI) (LTM) Ps 2,681.4m Ps 2,563.0m -4.4%
NOI margin (LTM) 90.9% 91.5% 60bps
Occupancy (EOP) 92.6% 94.1% 148bps
Avg. monthly rent per leased (US$/sqm) (EOP) $4.69 $4.76 1.6%
Weighted avg. lease term remaining (years) (EOP) 3.25 3.30 1.5%
Percentage of US$ leases (EOP) 92.1% 91.8% -26bps
GLA ('000s sqft) (EOP) 31,866 29,281 -8.1%
GLA ('000s sqm) (EOP) 2,960 2,720 -8.1%
Number of properties (EOP)   271   234   -13.7%
 

Key Financial Metrics

             
  2Q18   2Q18  
    Actual  

Pro forma1

  Variance
Real estate net LTV 39.4% 36.9% -250bps
Regulatory LTV 36.5% 35.4% -110bps
Undrawn revolver facility (US$) 217.3m 257.3m 18.4%
Fixed rate debt proportion (%) 95.4% 100.0% 460bps
Debt tenor (weighted avg. years) 5.5 5.7 3.6%
Total debt (US$) 876.4m 836.4m -4.6%
Total unrestricted cash (US$) 15.9m 41.5m 161.2%
Asset sales receivable (US$) 0.0m 20.8m n.a.
Net debt/EBITDA2 (Annualized 2Q18) 5.4x 5.2x -3.5%
Weighted avg. cost of debt (p.a.) 5.3% 5.4% 2bps
Regulatory DSCR   5.2x   5.9x   13.5%
 

1. 2Q18 pro forma is provided for illustrative purposes. It
assumes the transaction was completed at the beginning of 2Q17 and
includes adjustments which are directly attributable to the transaction.
LTM represents last 12 months, EOP represents end of period. 2. Net
Debt/EBITDA is calculated in USD using EoP FX Rate: 19.8633 for Net Debt
and Avg 2Q18 FX Rate: 19.3724 for EBITDA.

BALANCE SHEET

As of June 30, 2018, FIBRAMQ had approximately Ps 17.4 billion of debt
outstanding, Ps 4.3 billion available on its undrawn revolving credit
facility and Ps 316.5 million of unrestricted cash on hand. FIBRAMQ's
indebtedness was 95% fixed rate and had a weighted-average debt tenor
remaining of 5.5 years.

FIBRAMQ's CNBV regulatory debt to total asset ratio was 36.5% and the
debt service coverage ratio was 5.2x.

CAPITAL ALLOCATION

The following table provides an overview of how FIBRA Macquarie has
funded and deployed its cash to execute on its previously stated
initiatives to maximize value to its certificate holders. FIBRA
Macquarie remains committed to utilizing retained AFFO and proceeds from
non-core assets sales to deploy capital across property expansions and
developments, certificates repurchased for cancellation, and repayment
of revolving debt.

For more detail, refer to the please refer to the Second Quarter 2018
Supplementary Information materials located at www.fibramacquarie.com/investors/bolsa-mexicana-de-valores-filings.

             
SOURCES AND USES OF CAPITAL (FY2017 and 1H2018)       Ps. equivalent   US$ equivalent
Sources        
Retained AFFO 962.0m 50.7m
Asset sales 525.1m 28.3m
Surplus cash       458.9m   23.7m
Total Sources       1,946.0m   102.6m
 
Uses
Expansions & developments 480.8m 25.4m
Certificates repurchased for cancellation 534.5m 28.1m
Debt repayment 832.9m 44.0m
Other       97.7m   5.1m
Total Uses       1,946.0m   102.6m

Note: Other includes US$2.0m of income-generating Above-Standard Tenant
Improvements. Uses average FX of Ps 18.96 for 2017 and 1H2018.
Certificates repurchased for cancellation include all certificates
repurchased up to 30 June, 2018.

CERTIFICATE BUYBACK FOR CANCELLATION PROGRAM

During the second quarter of 2018, FIBRAMQ continued executing on its
certificate buyback program, as it believes it generates highly
accretive returns as the certificates continue to trade at a discount to
NAV.

         
CERTIFICATE REPURCHASES   Number of Certificates   Repurchase amount
Second quarter 2018   6.1m   Ps 122.3m
Since program commencement1   27.0m   Ps 570.2m
Remaining to reach 5% of certificates   13.6m    

1. Includes the certificates repurchased up to 26th July, 2018

All repurchased certificates have been cancelled or will be cancelled in
due course. FIBRAMQ's Technical Committee has authorized the repurchase
up to 5.0% of outstanding certificates. The timing, price per
certificate and amount of future repurchases will depend upon prevailing
market prices, trading windows, general economic and market conditions
and other considerations, including investment alternatives. FIBRAMQ's
Technical Committee has approved the extension of the certificate
repurchase program through to June 25, 2019 from its prior expiration
date of June 25, 2018.

Daily updates of FIBRAMQ's buyback activity can be found at http://www.bmv.com.mx/en/issuers/corporativeinformation/FIBRAMQ-30024-CGEN_CAPIT.

DISTRIBUTION

On July 26, 2018, FIBRAMQ declared a cash distribution for the quarter
ended June 30, 2018 of Ps 0.39 per certificate. The distribution is
expected to be paid on August 10, 2018 to holders of record on August 9,
2018. FIBRAMQ's certificates will commence trading ex-distribution on
August 8, 2018.

2018 GUIDANCE

FIBRA Macquarie is updating its guidance for 2018 AFFO to be between Ps.
2.28 and Ps. 2.33 per certificate, up from between Ps 2.19 and Ps 2.24
per certificate. In respect of the full year 2018, FIBRAMQ now expects
to make cash distributions of Ps. 1.60 per certificate. A distribution
of Ps. 0.41 per certificate is expected to be made in respect of each of
the third and fourth quarters of 2018.

This guidance is based on the following assumptions:

  • Based on the cash-generating capacity of its existing portfolio and an
    average exchange rate of Ps 18.5 per US dollar for the remainder of
    the year
  • No new acquisitions or divestments other than the two remaining assets
    under sale agreement
  • Repurchase for cancellation in 2018 of an additional 13.6 million
    certificates, resulting in an aggregate 5.0% of issued certificates
    being repurchased and cancelled, to close 2018 with 770.8 million
    certificates outstanding
  • The payment of cash distributions is subject to the approval of the
    board of directors of the Manager for cash distributions
  • The continued stable performance of the properties in the portfolio,
    and market conditions.

WEBCAST AND CONFERENCE CALL

FIBRAMQ will host an earnings conference call and webcast presentation
on Friday, July 27, 2018 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 Second Quarter 2018 Earnings Call
.

An audio replay will be available by dialing +1-855-859-2056 or
+1-404-537-3406 for callers outside the United States. The passcode for
the replay is 7898395. A webcast archive of the conference call and a
copy of FIBRAMQ's financial information for the second quarter 2018 will
also be available on FIBRAMQ's website, www.fibramacquarie.com.

ADDITIONAL INFORMATION

For detailed charts, tables and definitions, please refer to the Second
Quarter 2018 Supplementary Information materials located at www.fibramacquarie.com/investors/bolsa-mexicana-de-valores-filings.

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 236 industrial properties and 17
retail/office properties, located in 20 cities across 16 Mexican states
as of July 26, 2018. Nine of the retail/office properties are held
through a 50/50 joint venture. 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$119 billion of total
assets under management as of March 31, 2018.

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 61 office locations in
25 countries. Macquarie employs over 14,400 people and has assets under
management of approximately US$382 billion as of March 31, 2018.

For more information, please visit www.macquarie.com.

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.

FIBRA MACQUARIE MEXICO AND ITS CONTROLLED ENTITIES

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT
JUNE 30, 2018 (UNAUDITED) AND DECEMBER 31, 2017

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

         

  Jun 30, 2018   Dec 31, 2017
    $'000   $'000
Current assets
Cash and cash equivalents 292,264 417,529
Trade and other receivables, net 56,012 74,539
Other assets 99,426 73,938
Investment properties held for sale 1,742,764 -
Total current assets 2,190,466 566,006
 
Non-current assets
Restricted cash 50,615 50,289
Other assets 189,887 196,673
Equity-accounted investees 1,161,150 1,137,652
Goodwill 882,758 882,758
Investment properties 40,471,656 41,722,712
Derivative financial instruments 154,263 111,573
Total non-current assets   42,910,329   44,101,657
Total assets   45,100,795   44,667,663
 
Current liabilities
Trade and other payables 429,452 630,784
Tenant deposits 38,935 39,295
Interest-bearing liabilities 780,533 -
Total current liabilities 1,248,920 670,079
 
Non-current liabilities
Tenant deposits 318,863 313,719
Interest-bearing liabilities 15,664,122 16,318,550
Deferred income tax 6,277 6,277
Total non-current liabilities   15,989,262   16,638,546
Total liabilities   17,238,182   17,308,625
         
Net assets   27,862,613   27,359,038
 
Equity
Contributed equity 17,835,081 18,118,973
Retained earnings   10,027,532   9,240,065
Total equity   27,862,613   27,359,038
 

CONDENSED UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2018 AND 2017

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

         
  3 months ended   6 months ended
Jun 30, 2018   Jun 30, 2017 Jun 30, 2018   Jun 30, 2017
    $'000   $'000   $'000   $'000
Property related income 889,227 860,669 1,777,390 1,773,836
Property related expenses   (109,805)   (124,362)   (228,340)   (253,664)
Net property income   779,422   736,307   1,549,050   1,520,172
 
Management fees (40,492) (42,213) (86,209) (90,342)
Transaction related expenses (2,043) (3,062) (3,912) (4,323)
Professional, legal and other expenses   (14,884)   (11,418)   (26,035)   (23,182)
Total expenses   (57,419)   (56,693)   (116,156)   (117,847)
 
Finance costs (228,721) (207,223) (444,287) (433,132)
Financial income 3,702 2,451 6,629 5,328
Share of profits from equity-accounted investees 24,952 45,966 53,126 61,733
Foreign exchange (loss)/gain (1,252,709) 766,894 (117,538) 2,353,672
Net unrealized foreign exchange gain/(loss) on foreign currency
denominated investment property
2,520,523 (1,514,807) 240,153 (4,601,627)
Unrealized revaluation gain/(loss) on investment property
measured
at fair value
216,285 126,123 180,069 (175,332)
Net unrealized gain/(loss) on interest rate swaps 13,766 (25,300) 42,690 (27,683)
Profit/(loss) before tax for the period   2,019,801   (126,282)   1,393,736   (1,414,716)
 
Current income tax (155) (418) (213) (639)
Profit/(loss) for the period   2,019,646   (126,700)   1,393,523   (1,415,355)
 
Other comprehensive income
Other comprehensive income for the period   -   -   -   -
Total comprehensive profit/(loss) for the period   2,019,646   (126,700)   1,393,523   (1,415,355)
 
Profit/(loss) per CBFI*
Basic and diluted profit/(loss) per CBFI (pesos)   2.55   (0.16)   1.76   (1.74)

*Real Estate Trust Certificates (Certificados Bursátiles
Fiduciarios Inmobiliarios)

 

CONDENSED UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN
EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2018 AND 2017

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

             

  Contributed equity   Retained earnings   Total
    $'000   $'000   $'000
Total equity at January 1, 2017 18,369,994 8,666,697 27,036,691
Total comprehensive loss for the period - (1,415,355) (1,415,355)
Total comprehensive loss for the period - (1,415,355) (1,415,355)
Transactions with equity holders in their capacity as equity holders:
- Distributions to CBFI holders - (661,262) (661,262)
- Repurchase of CBFIs, including associated costs (9,612) (9,612)
Total transactions with equity holders in their capacity as equity
holders
(9,612) (661,262) (670,874)
             
Total equity at June 30, 2017   18,360,382   6,590,080   24,950,462
 
Total equity at January 1, 2018 18,118,973 9,240,065 27,359,038
Total comprehensive profit for the period - 1,393,523 1,393,523
Total comprehensive profit for the period - 1,393,523 1,393,523
Transactions with equity holders in their capacity as equity holders:
- Distributions to CBFI holders - (606,056) (606,056)
- Repurchase of CBFIs, including associated costs (283,892) - (283,892)
Total transactions with equity holders in their capacity as equity
holders
(283,892) (606,056) (889,948)
             
Total equity at June 30, 2018   17,835,081   10,027,532   27,862,613
 

CONDENSED UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS FOR
THE SIX MONTHS ENDED JUNE 30, 2018 AND 2017

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

     
  6 months ended
Jun 30, 2018   Jun 30, 2017
$'000 $'000
    Inflows / (Outflows)   Inflows / (Outflows)
Operating activities:
Profit/(loss) before tax for the period 1,393,736 (1,414,716 )
Adjustments for:
Net unrealized foreign exchange (gain)/loss on foreign currency
denominated
investment property measured at fair value
(240,153 ) 4,601,627
Unrealized revaluation (gain)/loss on investment property measured
at fair value
(180,069 ) 175,332
Straight line rental income adjustment 2,953 (639 )
Tenant improvement amortization 14,862 13,984
Leasing expense amortization 27,792 23,704
Financial income (6,629 ) (5,328 )
Provision for bad debts 11,878 11,520
Net foreign exchange loss/(gain) 116,991 (2,424,236 )
Finance costs recognized in profit/(loss) for the period 444,287 433,132
Share of profits from equity-accounted investees (53,126 ) (61,733 )
Net unrealized (gain)/loss on interest rates swaps (42,690 ) 27,683
Movements in working capital:
Increase in receivables (15,772 ) (36,408 )
(Decrease)/increase in payables (206,294 ) 44,691
Net cash flows from operating activities 1,267,766 1,388,613
Investing activities:
Investment property acquired (61,244 ) -
Proceeds from investment properties disposed - 90,205
Maintenance capital expenditure and other capitalized cost (52,897 ) (249,146 )
Distributions received from equity-accounted investees 29,628 32,254
Net cash flows used in investing activities (84,513 ) (126,687 )
Financing activities:
Financial income 6,629 5,328
Repayment of interest-bearing liabilities - (422,712 )
Interest paid (425,420 ) (417,314 )
Repurchase of CBFIs, including associated costs (283,892 ) -
Distribution to CBFI holders (606,056 ) (661,262 )
Net cash flows from financing activities (1,308,739 ) (1,495,960 )
Net decrease in cash and cash equivalents (125,486 ) (234,034 )
Cash and cash equivalents at the beginning of the period 467,818 663,173
Foreign exchange loss on cash and cash equivalents   547     70,564  
Cash and cash equivalents at the end of the period*   342,879     499,703  

*Includes restricted cash balance of $50.6 million (2017: $43.9
million)

 

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