Fibra Macquarie Mexico · BIVA:FIBRAMQ/12
Fibra Macquarie Mexico — Q3 2023 Earnings Presentation
45 slides from Fibra Macquarie Mexico's earnings presentation, 2023
Slide 1: FIBRA Macquarie México Supplementary Information Third Quarter 2023
FIBRA Macquarie México Supplementary Information (BMV: FIBRAMQ) Third Quarter 2023 1
Slide 2: Important information
Important information This document has been prepared by Macquarie Asset Management No risk control mitigant is failsafe. Notwithstanding the mitigants belief and judgment. Such statements do not reflect or constitute legal México, S.A. de C.V. (“MAM Mexico”), as manager, acting in the name describe
Slide 3: Executive Summary: 3Q23 financial and operational results
Executive Summary: 4 3Q23 financial and operational results 1 Growth Capex 9 2 Industrial portfolio 12 3 Retail portfolio 16 4 Selected financial statements 23 5 Debt profile 30 6 AFFO calculation methodology 34 7 Appendix 37 3
Slide 4: FIBRA Macquarie at a Glance
FIBRA Macquarie at a Glance As at September 30, 2023 Strategic focus Financial summary Metric Amount • FIBRA Macquarie focuses on the acquisition, development, ownership and Market capitalization EOP3 US$1.3bn / Ps. 22.2bn management of industrial and retail real estate properties in Mexico Total as
Slide 5: Executive Summary
Executive Summary 3Q23 Key Metrics US$5.79 Industrial average rental rates 0.7m sqft Constructed GLA – lease ups in stabilization1 sqm/m (+1.2% QoQ; +7.5% YoY) Industrial occupancy EOP 97.9% (-56 bps QoQ; +84 bps YoY) 0 sqft Constructed GLA – deliveries (not leased)1 Industrial release spread – comm
Slide 6: 3Q23 Key financial metrics
3Q23 Key financial metrics Ps. m5 Ps. m5 US$m5,6 US$m5,6 1 Consolidated Portfolio 3Q23 3Q22 Variance (%) 3Q23 3Q22 Variance (%) Total revenues 1,047.8 1,092.6 -4.1% 61.4 54.0 13.8% 2 Net Operating Income (inc. SLR) 904.3 957.4 -5.5% 53.0 47.3 12.1% NOI per certificate3 (inc. SLR) 1.1878 1.2576 -5.5%
Slide 7: 3Q23 Key Portfolio Metrics
3Q23 Key Portfolio Metrics Retention rate1 Occupancy (End of quarter) (LTM by GLA) 100.0% 98.2% 98.4% 97.6% 97.9% 100.0% 97.0% 92.5% 93.4% 98.0% 90.5% 91.7% 90.0% 86.6% 87.0% 85.5% 84.1% 90.9% 96.0% 86.4% 96.2% 97.3% 97.5% 97.1% 82.1% 85.0% 96.8% 80.0% 94.0% 92.0% 70.0% 90.0% 91.7% 60.0% 91.0% 90.9%
Slide 8: Lease Rental Rate Summary
Lease Rental Rate Summary Industrial portfolio lease summary Portfolio ABR composition by Considers leases that have been in place for at least 12 months through to 3Q23 currency Rental Rate Rental Rate Weighted Average Weighted Average Weighted Average GLA (sqm '000s) ABR (US$m) (US$/sqm/m) (US$/sq
Slide 9: Growth Capex
MACQUARIE México O1 Growth Capex FIBRA Macquarie
Slide 10: Growth capex projects
Growth capex projects ► 2.0m sqft of growth GLA under development or stabilization Monterrey ► LTD US$251m of expansions and development completed or committed at ~10.9% yield, totaling 3.8m sqft of GLA Targeting stabilized NOI yield of 9% to 11% Buildings under development/ stabilization: 7 GLA: 1,
Slide 11: Industrial development and expansions
Industrial development and expansions NOI Project # of Incremental GLA Investment Completion / Expected Initial Lease Project City NOI Yield1 Contribution Type Projects ('000 sqft) (USDe$ '000s) Completion term (years) Date Delivered (inception to 2016) Total 13 498.7 25.2 11.9% Actual 8.8 Delivered
Slide 12: Industrial Portfolio
FIBRA Macquarie MACQUARIE México 02 Industrial Portfolio
Slide 13: Industrial portfolio: Operating highlights
Industrial portfolio: Operating highlights Financial and operational metrics Var (%) 3Q23 vs Var (%) 3Q23 1 3Q23 2Q23 2Q23 3Q22 vs 3Q22 Selected financial metrics (Ps. m) Revenues $857.8 $899.1 (4.6%) $927.7 (7.5%) Expenses ($87.7) ($92.7) (5.3%) ($85.0) 3.2% NOI (inc. SLR) $770.1 $806.4 (4.5%) $842
Slide 14: FIBRA Macquarie's industrial presence
FIBRA Macquarie’s industrial presence Use of space Lease expiration profile 33.0% (% of annualized base rent) (% of annualized base rent) Other 1% Distribution 27% 19.5% 15.9% 15.5% 8.4% 4.7% Manufacturing 72% 2.9% In regularization 4Q23 2024 2025 2026 2027 2028+ Presence in key industries Presence
Slide 15: Industrial leasing summary and regional overview
Industrial leasing summary and regional overview 3Q23 Industrial leasing highlights Industrial leasing activity3 Country of (Sqft in thousands) New Leases Renewals Leased Expansions/Development Transaction Market GLA (sqft) Industry Term domicile 3,000 New Lease MCMA 509,595 Ecommerce Argentina 10 y
Slide 16: Retail Portfolio
FIBRA Macquarie MACQUARIE México O03 Retail Portfolio
Slide 17: Retail portfolio: Operating highlights
Retail portfolio: Operating highlights Financial and operational metrics Var (%) 3Q23 Var (%) 3Q23 Ps. millions; except operating stats11 3Q23 2Q23 vs 2Q23 3Q22 vs 3Q22 Selected financial metrics Revenues $190.0 $186.1 2.1% $164.9 15.2% Lease Rental Income2 $145.2 $142.2 2.1% $127.3 14.1% Lease Vari
Slide 18: FIBRA Macquarie's retail presence
FIBRA Macquarie’s retail presence Retail portfolio highlights Well-balanced lease expiration profile • Defensive portfolio primarily located in the top retail market of Mexico City (% of annualized base rent2) Metropolitan Area (MCMA) Anchor Total 30.0% 25.4% 24.9% • All leases are inflation protect
Slide 19: Retail leasing and regional overview
Retail leasing and regional overview 3Q23 Retail leasing highlights Retail leasing activity3 (sqm in thousands) Transaction Shopping Center GLA (sqm) Sector Customer New Lease City Shops Valle Dorado 769 Office Consulting New Leases Renewals Leased Expansions/Development New Lease Tecamac Power Cent
Slide 20: Retail segment overview
Retail segment overview Wholly-owned portfolio Joint venture portfolio ● Portfolio consists of 8 properties: ● Portfolio consists of 9 properties: – 2 power centers – 6 community shopping centers – 3 urban infills – 2 urban infills – 1 community shopping center – 1 mixed-use property Monterrey – 1 m
Slide 21: Selected Financial Statements
5 04 Selected Financial Statements 21
Slide 22: Detailed IFRS Consolidated Income Statement by Segment
Detailed IFRS Consolidated Income Statement by Segment (In Ps. Millions unless otherwise stated) Sep 30, 2023 Sep 30, 2022 Wholly-owned JV2 Proportionally Proportionally for the 3 months ended FIBRA Industrial Retail Consolidated Retail Industrial Combined Combined Lease related income - 801.0 101.8
Slide 23: Detailed IFRS Consolidated Income Statement by Segment (cont'd)
Statement by Segment (cont’d) Detailed IFRS Consolidated Income (In Ps. Millions unless otherwise stated) Sep 30, 2023 Sep 30, 2022 Wholly-owned JV1 Proportionally Proportionally for the 3 months ended FIBRA Industrial Retail Consolidated Retail Industrial Combined Combined Management fees (58.9) -
Slide 24: IFRS net profit to NOI Adjustments by Segment
IFRS net profit to NOI1 Adjustments by Segment (In Ps. Millions unless otherwise stated) Sep 30, 2023 Sep 30, 2022 Wholly-owned JV3 Proportionally Proportionally for the 3 months ended FIBRA Industrial Retail Consolidated Retail Industrial Combined Combined (Loss)/Profit for the period per Interim F
Slide 25: Adjustments by Segment FFO and AFFO
Adjustments by Segment FFO1 and AFFO2 (In Ps. Millions unless otherwise stated) Sep 30, 2023 Sep 30, 2022 Wholly-owned JV Proportionally Proportionally for the 3 months ended FIBRA Industrial Retail Consolidated Retail Industrial8 Combined Combined7 Net Operating Income 0.0 756.3 91.6 847.9 42.6 13.
Slide 26: Reconciliations of profit to FFO and AMEFIBRA FFO
Reconciliations of (loss)/profit per interim financial statements to FFO and AMEFIBRA FFO (In Ps. millions unless otherwise stated) Sep 30, 2023 Sep 30, 2022 Wholly-owned JV Proportionally Proportionally for the 3 months ended FIBRA Industrial Retail Consolidated Retail Industrial2 Combined Combined
Slide 27: Net Assets by Segment
Net Assets by Segment Sep 30, 2023 Sep 30, 2022 Wholly-owned JV Proportionally Proportionally (In Ps. Millions unless otherwise stated) FIBRA Industrial Retail Consolidated Retail Industrial Combined Combined Current assets Cash and cash equivalents 385.0 68.9 51.3 505.2 13.6 13.5 532.3 722.6 Trade
Slide 28: Net Assets by Segment (cont'd)
Net Assets by Segment (cont’d) Sep 30, 2023 Sep 30, 2022 Wholly-owned JV Proportionally Proportionally (In Ps. Millions unless otherwise stated) FIBRA Industrial Retail Consolidated Retail Industrial Combined Combined Non-current liabilities Trade and other payables - - - - - - - 49.8 Tenant deposit
Slide 29: 3Q23 Key financial metrics by segment
3Q23 Key financial metrics by segment Ps. m US$m Wholly-Owned Joint Venture Prop Wholly-Owned Joint Venture Prop Metric FIBRA Industrial Retail Consol Retail Industrial2 Combined FIBRA Industrial Retail Consol Retail Industrial2 Combined Total revenues 0.0 843.4 124.5 968.0 65.5 14.4 1,047.8 0.0 49.
Slide 30: Debt Profile
MACQUARIE México O05 Debt Profile FIBRA Macquarie
Slide 31: Debt overview
Debt overview Overview Key debt ratios2 Total and net debt Real estate gross5, net Interest coverage4 ● CNBV Regulatory LTV of 30.8% and Regulatory Debt Service Coverage Ratio of 5.2x to EBITDA3 and regulatory LTV 3.8x ● Real Estate net LTV of 33.5% and weighted average cost of debt of 5.6% 5.1x 5.1
Slide 32: Debt Disclosure
Debt Disclosure Outstanding loans as at September 30, 2023 Debt associated with wholly-owned properties ESG Balance Balance Interest type Interest Security Commencement Maturity Lenders Ccy Amortization2 component US$ m1 Ps. mm1 (Fixed/ Variable) rate p.a. type date date Various Insurance Companies
Slide 33: CNBV Regulatory Ratios
CNBV Regulatory Ratios 3Q23 Leverage ratio Ps.’000 1 Bank debt 16,179,161 Bonds - Total assets 52,522,499 16,179,161 Leverage ratio = = 30.8% 52,522,499 2 Ps.’000 Debt service coverage ratio ( ICD t ) 4 t=0 ∑ t=1 AL 0 Liquid assets 518,689 - IVA t Value added tax receivable - - UO t Net operating in
Slide 34: AFFO Calculation Methodology
7 06 AFFO Calculation Methodology 34
Slide 35: AFFO calculation methodology
AFFO calculation methodology Definitions NOI Item Definition Repairs and maintenance Scheduled or unscheduled work to repair minor damage or normal wear and tear, as well as make-ready expenses. Typically, low value relative to maintenance capex. expense (R&M) FFO Items Transaction related expenses
Slide 36: AFFO calculation methodology (cont'd)
AFFO calculation methodology (cont’d) Quarterly cash deployment vs normalized methodology 3Q23 3Q22 Actual cash deployment for the three months ended Ps. m Ps. m Var (%) Financing costs - - NA Maintenance capital expenditures (43.1) (48.7) (11.5%) Tenant improvements (13.8) (12.8) 8.1% Above-standar
Slide 37: Appendix
FIBRA Macquarie MACQUARIE México O07 Appendix
Slide 38: Rental Rate Bridges Year-on-Year
Rental Rate Bridges Year-on-Year Industrial rental rate bridge from 3Q22 to 3Q23 (US$/sqm/m) +0.06 +0.00 -0.00 -0.00 5.79 +0.07 +0.10 1.07% 0.07% -0.05% -0.05% +0.17 1.30% +7.48% 5.39 1.90% 3.24% 3Q22 Contract Increases Negotiated Renewals FX Growth Capex Contractual Extensions New Leases Moveouts 3
Slide 39: 3Q23 Quarterly AFFO per Certificate Bridges
3Q23 Quarterly AFFO per Certificate Bridges AFFO per certificate in Ps. 2Q23 to 3Q23 0.0181 0.0000 0.0052 0.0096 0.6519 0.0356 0.6121 0.5% 2.8% -0.8% -1.5% -5.5% (6.1%) 2Q23 AFFO Increased NOI - Growth Capex Decreased Same Store Expenses Increase Normalized Maintenance Decreased Same Store Income FX
Slide 40: Same Store NOI
Same Store NOI1 Industrial Portfolio Same Store 9 Months ended 9 Months ended Var (%) Industrial Portfolio - Same Store 3Q23 3Q22 Var (%) Sep 30, 2023 (YTD23) Sep 30, 2022 (PCP) YTD23 vs PCP Net Operating Income (Ps. m; inc. SLR) Ps. 746.8m Ps. 824.9m (9.5%) Ps. 2,354.5m Ps. 2,441.0m (3.5%) Net Oper
Slide 41: Consolidated Same Store NOI
Consolidated Same Store NOI1 Consolidated Same Store 9 Months ended 9 Months ended Var (%) Total Portfolio - Same Store 3Q23 3Q22 Var (%) Sep 30, 2023 (YTD23) Sep 30, 2022 (PCP) YTD23 vs PCP Net Operating Income (Inc. SLR) Ps. 881.0m Ps. 939.5m (6.2%) Ps. 2,746.9m Ps. 2,772.7m (0.9%) Net Operating I
Slide 42: GLA distribution by market
GLA distribution by market Diversified portfolio Key market presence Owning both Industrial and Retail assets provides greater growth opportunity. Industrial assets in strategic manufacturing markets and retail assets in high density urban areas. GLA (sqm 000's) City Region Industrial % Retail2 % To
Slide 43: Portfolio Distribution by Markets
Portfolio Distribution by Markets Industrial GLA GLA Average Monthly Rent per City Total Number of Properties Total Number of Tenants Occupancy (000’s sqft) (000’s sqm) % Industrial GLA Leased m2 (US$)1 Monterrey 39 47 99.6% 5,865.6 544.9 19.0% 5.75 Ciudad Juárez 35 38 100.0% 4,613.4 428.6 14.9% 5.5
Slide 44: Definitions
Definitions • Adjusted funds from operations (AFFO)1 is equal to FFO less straight-line rent, normalized maintenance capex, normalized above-standard tenant improvements, normalized extraordinary capex, normalized tenant improvement, normalized third-party leasing commissions and normalized leasing
Slide 45: Other important information
Other important information • Redevelopments (generally projects which require capital expenditures exceeding 25% of the gross cost basis) are placed in the operating portfolio upon the earlier of reaching 90% occupancy or twelve months from the completion of renovation construction. • Regulatory LT
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