\n\u25ba Industrial portfolio occupancy reaches a record 97.1%%, up 279 bps YoY\n<\/p>\n
\n\u25ba AFFO per certificate growth of 6.0% QoQ and 17.1% YoY\n<\/p>\n
\n\u25ba AFFO per certificate and distribution guidance for FY22 reaffirmed\n<\/p>\n
MEXICO CITY–(BUSINESS WIRE)–FIBRA Macquarie M\u00e9xico (FIBRAMQ) (BMV: FIBRAMQ) announced its financial and operating results for the first quarter ended on March 31, 2022.\n<\/p>\n
\nFIRST QUARTER 2022 HIGHLIGHTS\n<\/p>\n
AFFO per certificate Ps. 0.6558<\/p>\n
Authorized cash distribution of Ps. 0.5000 per certificate, resulting in a 76.2% AFFO payout<\/p>\n
Consolidated occupancy of 96.1%, up 225 bps YoY and up 89 bps sequentially<\/p>\n
Industrial occupancy at 97.1% at quarter end, up 279 bps YoY and up 108 bps sequentially<\/p>\n
FY22 AFFO per certificate guidance of Ps. 2.50 – Ps. 2.55 reaffirmed<\/p>\n
FY22 distribution per certificate guidance of Ps. 2.00 reaffirmed<\/p>\n
Approximately one million square feet of industrial expansion and development projects under construction<\/p>\n
Subsequent to 1Q22, completed US$425 million refinancing with sustainability-linked credit facility<\/p>\n
\n\u201cThe strengthening market backdrop has contributed to healthy momentum in our results, contributing to a 17.1% annual growth in AFFO per certificate and an AFFO margin expansion of 448 bps,\u201d said Simon Hanna, FIBRA Macquarie\u2019s chief executive officer. \u201cOur high-quality portfolio of industrial assets realized a 6.5% annual increase in NOI, as we closed the quarter with record occupancy of 97.1%. Supported by the ongoing demand for manufacturing and logistics properties, leasing momentum has continued to accelerate, including interest in new developments. We are nearing completion on the delivery of the first building in our Monterrey development project and advancing with the development of our Mexico City industrial project. We are also seeing ongoing stabilization in our retail portfolio and are pleased to report a 9.3% increase in first quarter NOI compared to the prior year. In addition, we recently announced enhancements to our balance sheet with the refinancing of our unsecured bank facility, thereby lowering our cost of borrowing, extending our maturities, and positioning us to execute on our organic and new development growth strategies.\u201d\n<\/p>\n
\nFINANCIAL AND OPERATING RESULTS\n<\/p>\n
\nConsolidated Portfolio\n<\/p>\n
\nFIBRAMQ\u2019s total results were as follows:\n<\/p>\n
\nTOTAL PORTFOLIO\n<\/p>\n
\n1Q22\n<\/p>\n
\n1Q21\n<\/p>\n
\nVariance\n<\/p>\n
\nNet Operating Income (NOI)\n<\/p>\n
\nPs. 929.6m\n<\/p>\n
\nPs. 870.5m\n<\/p>\n
\n6.8%\n<\/p>\n
\nEBITDA\n<\/p>\n
\nPs. 861.9m\n<\/p>\n
\nPs. 806.9m\n<\/p>\n
\n6.8%\n<\/p>\n
\nFunds From Operations (FFO)\n<\/p>\n
\nPs. 624.5m\n<\/p>\n
\nPs. 567.5m\n<\/p>\n
\n10.1%\n<\/p>\n
\nFFO per certificate\n<\/p>\n
\n0.8204\n<\/p>\n
\n0.7451\n<\/p>\n
\n10.1%\n<\/p>\n
\nAdjusted Funds From Operations (AFFO)\n<\/p>\n
\nPs. 499.2m\n<\/p>\n
\nPs. 426.5m\n<\/p>\n
\n17.1%\n<\/p>\n
\nAFFO per certificate\n<\/p>\n
\nPs. 0.6558\n<\/p>\n
\nPs. 0.5600\n<\/p>\n
\n17.1%\n<\/p>\n
\nNOI Margin\n<\/p>\n
\n88.2%\n<\/p>\n
\n87.6%\n<\/p>\n
\n65 bps\n<\/p>\n
\nAFFO Margin\n<\/p>\n
\n47.4%\n<\/p>\n
\n42.9%\n<\/p>\n
\n448 bps\n<\/p>\n
\nGLA (\u2019000s sqft) EOP\n<\/p>\n
\n34,461\n<\/p>\n
\n34,534\n<\/p>\n
\n(0.2%)\n<\/p>\n
\nGLA (\u2019000s sqm) EOP\n<\/p>\n
\n3,202\n<\/p>\n
\n3,208\n<\/p>\n
\n(0.2%)\n<\/p>\n
\nOccupancy EOP\n<\/p>\n
\n96.1%\n<\/p>\n
\n93.8%\n<\/p>\n
\n225 bps\n<\/p>\n
\nAverage Occupancy\n<\/p>\n
\n96.3%\n<\/p>\n
\n93.5%\n<\/p>\n
\n275 bps\n<\/p>\n
\nFIBRAMQ\u2019s same store portfolio results were as follows:\n<\/p>\n
\nINDUSTRIAL PORTFOLIO \u2013 SAME STORE\n<\/p>\n
\n1Q22\n<\/p>\n
\n1Q21\n<\/p>\n
\nVariance\n<\/p>\n
\nNet Operating Income\n<\/p>\n
\nPs. 814.5m\n<\/p>\n
\nPs. 763.9m\n<\/p>\n
\n6.6%\n<\/p>\n
\nNet Operating Income Margin\n<\/p>\n
\n91.8%\n<\/p>\n
\n91.6%\n<\/p>\n
\n18 bps\n<\/p>\n
\nNumber of Properties\n<\/p>\n
\n235\n<\/p>\n
\n235\n<\/p>\n
\n–\n<\/p>\n
\nGLA (\u2019000s sqft) EOP\n<\/p>\n
\n28,789\n<\/p>\n
\n29,737\n<\/p>\n
\n(3.2%)\n<\/p>\n
\nGLA (\u2019000s sqm) EOP\n<\/p>\n
\n2,675\n<\/p>\n
\n2,763\n<\/p>\n
\n(3.2%)\n<\/p>\n
\nOccupancy EOP\n<\/p>\n
\n97.0%\n<\/p>\n
\n94.2%\n<\/p>\n
\n281 bps\n<\/p>\n
\nAverage Monthly Rent (US$\/sqm) EOP\n<\/p>\n
\n5.25\n<\/p>\n
\n5.06\n<\/p>\n
\n3.8%\n<\/p>\n
\nCustomer Retention LTM EOP\n<\/p>\n
\n83.5%\n<\/p>\n
\n76.3%\n<\/p>\n
\n725 bps\n<\/p>\n
\nWeighted Avg Lease Term Remaining (years) EOP\n<\/p>\n
\n3.3\n<\/p>\n
\n3.3\n<\/p>\n
\n0.1%\n<\/p>\n
\nPercentage of US$ denominated Rent EOP\n<\/p>\n
\n92.3%\n<\/p>\n
\n93.0%\n<\/p>\n
\n(70 bps)\n<\/p>\n
\nIndustrial Portfolio\n<\/p>\n
\nThe following table summarizes the results for FIBRAMQ\u2019s industrial portfolio:\n<\/p>\n
\nINDUSTRIAL PORTFOLIO\n<\/p>\n
\n1Q22\n<\/p>\n
\n1Q21\n<\/p>\n
\nVariance\n<\/p>\n
\nNet Operating Income (NOI)\n<\/p>\n
\nPs. 821.9m\n<\/p>\n
\nPs. 772.0m\n<\/p>\n
\n6.5%\n<\/p>\n
\nNOI Margin\n<\/p>\n
\n91.7%\n<\/p>\n
\n91.6%\n<\/p>\n
\n11 bps\n<\/p>\n
\nGLA (\u2019000s sqft) EOP\n<\/p>\n
\n29,884\n<\/p>\n
\n29,955\n<\/p>\n
\n(0.2%)\n<\/p>\n
\nGLA (\u2019000s sqm) EOP\n<\/p>\n
\n2,776\n<\/p>\n
\n2,783\n<\/p>\n
\n(0.2%)\n<\/p>\n
\nOccupancy EOP\n<\/p>\n
\n97.1%\n<\/p>\n
\n94.3%\n<\/p>\n
\n279 bps\n<\/p>\n
\nAverage Occupancy\n<\/p>\n
\n96.3%\n<\/p>\n
\n93.9%\n<\/p>\n
\n238 bps\n<\/p>\n
\nAverage monthly rent per leased (US$\/sqm) EOP\n<\/p>\n
\n$5.26\n<\/p>\n
\n$5.07\n<\/p>\n
\n3.7%\n<\/p>\n
\nCustomer retention LTM\n<\/p>\n
\n83.5%\n<\/p>\n
\n76.6%\n<\/p>\n
\n691 bps\n<\/p>\n
\nWeighted Avg Lease Term Remaining (years) EOP\n<\/p>\n
\n3.3\n<\/p>\n
\n3.3\n<\/p>\n
\n(0.3%)\n<\/p>\n
\nFIBRAMQ\u2019s industrial portfolio performance remains robust, with positive results across key metrics including occupancy, rental rates and NOI margin. For the quarter ended March 31, 2022, FIBRAMQ\u2019s industrial portfolio delivered NOI of Ps. 821.9 million, a 6.5% increase year over year. This result was driven by top line performance, with record quarterly lease revenues of US$40.9 million. Underlying performance in the industrial portfolio continued to be supported by a favorable supply-demand environment with the quarterly increase in average rental rates accelerating to 6.0% on an annualized basis.\n<\/p>\n
\nAt quarter-end, occupancy was 97.1%, up 279 basis points from the prior year period, and also up 108 basis points sequentially. New leasing activity gained momentum through the quarter adding 481 thousand sqft. with six new customers across five northern markets, and all new leases being denominated in a US Dollars. New leasing deals included Asian domiciled electronics manufacturers and German domiciled industrial manufacturers. Renewal leases comprised 14 leases and 713 thousand sqft, driving a healthy retention rate of 83.5% over the last 12 months.\n<\/p>\n
\nCash collections continue to be strong, and through April 26, 98.7% of scheduled 1Q22 rental income has been collected. Cash collections for the quarter totaled Ps. 1,025 million, up 5.7% over the prior corresponding quarter.\n<\/p>\n
\nAs of March 31, 2022, trade receivables net of provisions were Ps. 20.2 million (excl. VAT), lower by 16.7% over the prior corresponding period, reflecting solid cash collections along with prudent provisioning.\n<\/p>\n
\nRetail Portfolio\n<\/p>\n
\nThe following table summarizes the proportionally combined results for FIBRAMQ\u2019s retail portfolio:\n<\/p>\n
\nRETAIL PORTFOLIO\n<\/p>\n
\n1Q22\n<\/p>\n
\n1Q21\n<\/p>\n
\nVariance\n<\/p>\n
\nNet Operating Income (NOI)\n<\/p>\n
\nPs. 107.7m\n<\/p>\n
\nPs. 98.5m\n<\/p>\n
\n9.3%\n<\/p>\n
\nNOI Margin\n<\/p>\n
\n68.4%\n<\/p>\n
\n65.1%\n<\/p>\n
\n324 bps\n<\/p>\n
\nGLA (\u2019000s sqft) EOP\n<\/p>\n
\n4,577\n<\/p>\n
\n4,579\n<\/p>\n
\n(0.1%)\n<\/p>\n
\nGLA (\u2019000s sqm) EOP\n<\/p>\n
\n425\n<\/p>\n
\n425\n<\/p>\n
\n(0.1%)\n<\/p>\n
\nOccupancy EOP\n<\/p>\n
\n89.8%\n<\/p>\n
\n91.1%\n<\/p>\n
\n(131 bps)\n<\/p>\n
\nAverage Occupancy\n<\/p>\n
\n89.8%\n<\/p>\n
\n91.1%\n<\/p>\n
\n(135 bps)\n<\/p>\n
\nAverage monthly rent per leased (Ps.\/sqm) EOP\n<\/p>\n
\n$160.13\n<\/p>\n
\n$153.88\n<\/p>\n
\n4.1%\n<\/p>\n
\nCustomer retention LTM\n<\/p>\n
\n69.6%\n<\/p>\n
\n51.1%\n<\/p>\n
\n1,853 bps\n<\/p>\n
\nWeighted Avg Lease Term Remaining (years) EOP\n<\/p>\n
\n3.2\n<\/p>\n
\n3.5\n<\/p>\n
\n(8.6%)\n<\/p>\n
\nFIBRAMQ\u2019s retail portfolio benefited from improving trading conditions, with NOI higher by 9.3% year over year.\n<\/p>\n
Quarterly rent discounts of Ps. 3.3 million were lower for the fourth consecutive quarter, and are now at the lowest level since the start of the pandemic. Rent discounts were down sequentially by 65.4%, and down 88.5% versus the prior corresponding period.<\/p>\n
Retail portfolio cash collections during the quarter totaled Ps. 161.3 million, representing an increase of 31.2% versus the prior corresponding period.<\/p>\n
Contributing to the strong NOI performance, property-level expenses were well-contained at Ps. 49.9 million and reflected a 5.5 per cent decline over the prior corresponding quarter, mainly driven by lower doubtful debt provisioning.<\/p>\n
During the first quarter, monitored foot traffic at FIBRAMQ\u2019s shopping centers was approximately 42% above the prior comparable period, and approximately 25% below pre-pandemic levels.<\/p>\n
\nLease renewal activity was strong for the quarter. FIBRAMQ signed 60 leases encompassing 24.5 thousand sqm of retail space during the first quarter of 2022. This single 2022 quarter of leasing renewal compares favorably to the full year lease renewal activity in FY21 (46.5k sqm) and FY20 (17.6k sqm). Leasing highlights included renewals for Fun Central family entertainment centers at our Coacalco and Tecamac Power Centers (14.5 thousand sqm, MCMA), and a new restaurant lease for Casa de To\u00f1o in Multiplaza Ojo de Agua (0.5 thousand sqm, MCMA).\n<\/p>\n
\nAs of March 31, 2022, trade receivables net of provisions were Ps. 6.8 million (excl. VAT), lower 39.3% over the prior corresponding period.\n<\/p>\n
\nSame Store Portfolio Results\n<\/p>\n
\nFor detail on FIBRAMQ\u2019s industrial and retail same store portfolio results, please refer to First Quarter 2022 Supplementary Information materials located at BMV Filings (fibramacquarie.com)<\/a>.\n<\/p>\n \nNew Disclosure – Lease rental rate summary\n<\/p>\n \nConsistent with our efforts to provide increasing transparency to the market, this quarter we have included additional detail in our Supplementary Information materials with regards to contractual rental rate increases in our portfolio. These disclosures include information pertaining to the scheduled lease escalation profile by type of escalation as well as phasing of such escalations throughout the year. Of note, 57.8% of leases for FIBRAMQ\u2019s consolidated portfolio is directly linked to either Mexican or US CPI. In addition, rental rates in our industrial portfolio increased by 13.7% for leases that renewed during the quarter. For detail on FIBRAMQ\u2019s lease rental rate disclosures, please refer to First Quarter 2022 Supplementary Information materials located at BMV Filings (fibramacquarie.com)<\/a>.\n<\/p>\n \nCAPITAL ALLOCATION\n<\/p>\n \nIndustrial Development\n<\/p>\n \nFIBRAMQ continues to pursue a strategy to complement and grow its existing industrial portfolio by investing and developing class \u201cA\u201d assets in core markets that demonstrate strong performance and a positive economic outlook.\n<\/p>\n FIBRAMQ nears completion on a 183 thousand sqft industrial property development in Apodaca, Nuevo Leon, as part of an approximately 800 thousand sqft development project. FIBRAMQ currently anticipates completion of the first phase of the project in the first half of 2022 and has received strong tenant interest in the property.<\/p>\n FIBRAMQ also continued its industrial development project in the Mexico City Metropolitan Area. FIBRAMQ expects to deliver the two-building project comprising 734 thousand sqft of industrial GLA on the site in the second half of 2022.<\/p>\n \nThese projects, as well as FRIBAMQ\u2019s active build to suit expansion projects, amount to approximately one million square feet of new GLA which is expected to be completed during 2022.\n<\/p>\n \nCertificate repurchase program\n<\/p>\n \nAt the recent annual general meeting, FIBRA Macquarie received certificate holder approval for an extension of its Ps. 1,000.0 million CBFI repurchase-for-cancellation program through June 25, 2023.\n<\/p>\n \nBALANCE SHEET\n<\/p>\n \nAs of March 31, 2022, FIBRAMQ had approximately Ps. 16.0 billion of debt outstanding, with Ps. 4.7 billion available on its undrawn committed revolving credit facility and Ps. 0.4 billion of unrestricted cash on hand.\n<\/p>\n \nAs of March 31, 2022, FIBRAMQ\u2019s indebtedness was 98.8% fixed rate, with 3.8 years weighted-average debt tenor remaining.\n<\/p>\n \nFIBRAMQ\u2019s CNBV regulatory debt to total asset ratio was 32.2% and the debt service coverage ratio was 5.8x.\n<\/p>\n \nOn a consolidated basis, NAV per certificate increased over the year by 18% to Ps. 40.5.\n<\/p>\n \nOn April 5, 2022, FIBRAMQ closed on a US$425.0 million sustainability-linked unsecured credit facility, and primarily used the new sustainability-linked facility to repay the amounts drawn under the unsecured credit facility that was due to expire on April 1, 2024. As a result of the transaction, and taking into account related interest rate swap transactions, FIBRAMQ\u2019s indebtedness was 92% fixed rate and the weighted average annual cost of debt for its entire debt portfolio of US$836.0 million was 5.2%.\n<\/p>\n \nESG\n<\/p>\n \nFIBRAMQ remains committed to sustainability including protecting the environment, prioritizing governance, and developing its employees, serving its customers and the community. FIBRAMQ has been recognized for its ongoing focus on, amongst other things, green building and green leasing, stakeholder engagement and transparency, as well as the commitment to continual improvement.\n<\/p>\n In January 2022, FIBRA Macquarie was recognized as being an \u201cEDGE Champion.\u201d EDGE Champions are organizations that collaborate with International Finance Corporation (IFC) to accelerate the adoption of green building options. EDGE Champions have committed to accelerating the adoption of green building practices through the promotion of voluntary green building certification programs based on the EDGE (\u201cExcellence in Design for Greater Efficiencies\u201d) software, standard, and certification system.<\/p>\n During the first quarter, FIBRA Macquarie achieved the EDGE certification on four industrial buildings.<\/p>\n \nFor additional details on FIBRAMQ\u2019s strategy and progress with regards to its ESG strategy can be found in its annual ESG report at https:\/\/www.fibramacquarie.com\/en\/corporate-responsibility.html<\/a>.\n<\/p>\n \nDISTRIBUTION\n<\/p>\n \nOn April 28, 2022, FIBRAMQ declared a cash distribution for the quarter ended March 31, 2022 of Ps. 0.5000 per certificate. The distribution is expected to be paid on June 16, 2022, to holders of record on June 15, 2022. FIBRAMQ\u2019s certificates will commence trading ex-distribution on June 14, 2022.\n<\/p>\n \nFY22 GUIDANCE\n<\/p>\n \nAFFO per certificate\n<\/p>\n \nFIBRA Macquarie is reaffirming its FY22 AFFO per certificate guidance of Ps. 2.50 to Ps. 2.55.\n<\/p>\n \nThis guidance assumes:\n<\/p>\n an average exchange rate of Ps. 20.0 per US dollar for the remainder of FY22, compared to the prior assumption of an average exchange rate of Ps. 20.5;<\/p>\n no new government restrictions regarding retail trading activities;<\/p>\n no new acquisitions or divestments of stabilized properties;<\/p>\n no issuances or repurchases of certificates; and<\/p>\n no further deterioration in broader economic and market conditions.<\/p>\n \nThe ability to maintain guidance in a strengthening Peso environment is reflective of FIBRA Macquarie\u2019s strong underlying performance.\n<\/p>\n \nDistribution per certificate\n<\/p>\n \nFIBRAMQ is reaffirming it guidance of cash distributions for FY22 of Ps. 2.00 per certificate, therefore indicating an expected first quarter 2022 distribution of Ps. 0.5000 per certificate.\n<\/p>\n \nThe payment of cash distributions is subject to the approval of the Manager, stable market conditions and prudent management of FIBRAMQ\u2019s capital requirements.\n<\/p>\n \nWEBCAST AND CONFERENCE CALL\n<\/p>\n \nFIBRAMQ will host an earnings conference call and webcast presentation on Friday, April 29, 2022 at 7:30 a.m. CT \/ 8:30 a.m. ET. The conference call, which will also be webcast, can be accessed online at www.fibramacquarie.com<\/a> or by dialing toll free +1-877-407-2988. Callers from Mexico may dial 01-800- 522-0034 and other callers from outside the United States may dial +1-201-389-0923. Please ask for the FIBRA Macquarie First Quarter 2022 Earnings Call. An audio replay will be available by dialing +1-877-660-6853 or +1-201-612-7415 for callers from outside the United States. A webcast archive of the conference call and a copy of FIBRA Macquarie\u2019s financial information for the first quarter 2022 will also be available on FIBRA Macquarie\u2019s website, www.fibramacquarie.com<\/a>.\n<\/p>\n \nAbout FIBRA Macquarie\n<\/p>\n \nFIBRA Macquarie M\u00e9xico (FIBRA Macquarie) (BMV:FIBRAMQ) is a real estate investment trust (fideicomiso de inversi\u00f3n en bienes ra\u00edces), 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\u2019s portfolio consists of 236 industrial properties and 17 retail properties, located in 20 cities across 16 Mexican states as of March 31, 2022. Nine of the retail properties are held through a 50\/50 joint venture. For additional information about FIBRA Macquarie, please visit www.fibramacquarie.com<\/a>.\n<\/p>\n \nCautionary Note Regarding Forward-looking Statements\n<\/p>\n \nThis 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.\n<\/p>\n \nOther than Macquarie Bank Limited ABN 46 008 583 542 (\u201cMacquarie Bank\u201d), any Macquarie Group entity noted in this document is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities. In addition, if this document relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.\n<\/p>\n \nTHIS 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.\n<\/p>\n \nTHIS ANNOUNCEMENT IS NOT FOR RELEASE IN ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA.\n<\/p>\n Contacts <\/p>\n \nInvestor relations contact:
\n
Tel: +52 (55) 9178 7763
\n
Nikki Sacks
\n
Tel: +1 203 682 8263
\n
Email: nikki.sacks@icrinc.com<\/a><\/p>\n