Fibra Macquarie Mexico · BIVA:FIBRAMQ/12
Fibra Macquarie Mexico — Q3 2024 Earnings Presentation
31 slides from Fibra Macquarie Mexico's earnings presentation, 2024
Slide 1: FIBRA Macquarie México Investor Presentation Third Quarter 2024
FIBRA Macquarie México Investor Presentation Third Quarter 2024 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 The growth opportunities described herein are not necessarily México, S.A. de C.V. (“MAM Mexico”), as manager, acting in the name described herein,
Slide 3: Leveraging a well-positioned platform to create value
Leveraging a well-positioned platform to create value Strong Portfolio High quality industrial focused portfolio Pro pe r ty M 1 a na ge Vertically integrated Property Administration Platform m 2 en t elopment Program 3 Propietary Development Program with attractive pipeline Dev Robust financial and
Slide 4: Overview
Overview High quality industrial-focused portfolio in prime markets1 Tijuana Mexicali 25/6.2% 13/3.0% Nogales 2/2.8% Cd. Juárez 36.0m sqft US$3.3bn 35/12.8% Hermosillo Gross leasable Total assets 11 / 5.3% area2 Chihuahua 12/3.5% Nuevo Laredo Reynosa 9/3.1% 19/7.8% Los Mochis Matamoros 1 / 0.7% Mont
Slide 5: MPA - FIBRAMQ's vertically-integrated property administration platform
MPA - FIBRAMQ’s vertically-integrated property administration platform ▪ MPA, a subsidiary of FIBRAMQ, is an integral service platform with a high-quality team shaped by On-the-ground presence in 10 markets across Mexico allows MPA to ~90 professionals address customer needs 24/7 – MPA is an employe
Slide 6: Favorable market dynamics
01 Favorable market dynamics 6
Slide 7: Dynamic market fundamentals driving growth
Dynamic market fundamentals driving growth Nearshoring, EV transition and Ecommerce growth are driving Mexico’s favorable position in the global supply chain and providing strong tailwinds to the industrial real estate sector Real estate Supply chain Nearshoring market dynamics Demographics evolutio
Slide 8: Mexico plays an important and growing role in the global supply chain
Mexico plays an important and growing role in the global supply chain FIBRA Macquarie benefits directly from nearshoring due to its strong presence in northern markets Avg. manufacturing wages (US$/hr)1 U.S. imports – US$bn2 Strategic position in global trade Mexico China Mexico China ● China labor
Slide 9: Industries supporting Mexico's real estate sector
Industries supporting Mexico’s real estate sector Ecommerce sales growth (US$bn)1 Auto parts sector at record levels (US$bn)2 Domestic Market Exports % Change YoY 20.1% 13.2% 13.4% CAGR 76% 1.5% 6.8% 0.7% 3.6% Ecommerce sales growth (2019 – 2023): 115 -19.4% 122 126 MXN: 35% | USD: 38% 107 97 98 95
Slide 10: Leasing Spreads Summary
Leasing Spreads Summary Negotiated Renewal Lease Spreads (Industrial) Lease Indexation Profile Evolution (Consolidated) 18.6% 36.8% 35.3% 34.3% 34.1% 34.8% 16.9% 42.2% 41.3% 41.8% 42.3% 40.2% 38.8% 16.3% 15.0% 13.7% 13.4% 13.0% 11.8% 10.0% 10.2% 9.8% 57.8% 58.7% 58.2% 57.7% 59.8% 61.2% 63.2% 64.7% 6
Slide 11: Growth pipeline
FIBRA Macquarie MACQUARIE México 02 Growth pipeline
Slide 12: Proven development platform
Proven development platform Prudently expanding portfolio through high quality industrial developments in core industrial markets Expanding portfolio Completed/In progress developments 45 US$257.0m ● Target markets: Tijuana, Ciudad Juarez, Monterrey, Reynosa, MCMA, and Guadalajara ● Over next five y
Slide 13: Growth capex projects
Growth capex projects ► 1.0m sqft of growth GLA under development or stabilization Monterrey ► LTD US$257m of expansions and development completed or committed at ~11.0% yield, totaling 3.8m sqft of GLA ► Delivered two leased buildings in Mexico City and Monterrey adding 435k sqft to GLA Targeting s
Slide 14: Quality portfolio
FIBRA Macquarie MACQUARIE México O03 Quality portfolio
Slide 15: Ideally positioned to support Mexico's manufacturing and logistics industries
Ideally positioned to support Mexico’s manufacturing and logistics industries Industrial highlights ● Strongest presence in 76.4% 3.5 25.2% Northern states of Mexico, a ABR1 from the Northern Weighted average lease ABR1 contribution of high industrial demand region, and Border states term remaining
Slide 16: Defensive, high quality retail portfolio
Defensive, high quality retail portfolio Retail highlights ● Defensive portfolio primarily 82.4% 3.4 42.4% in Mexico City Metropolitan located in top three retail Weighted average lease ABR2 contribution of Area (MCMA), Mexico’s top markets of Mexico1 term remaining in years Top 10 customers retail
Slide 17: Prudent capital management
04 Prudent capital management 17
Slide 18: Well-positioned balance sheet
Well-positioned balance sheet1 5.6% 97.0% US$321m of debt denominated in Undrawn committed Average cost of debt US$ revolver 100.0% 33.0%2 4.0 years Average debt tenor Fixed rate debt Real Estate Net LTV remaining 5.2x 62.7% 72.3% Green financing and Net debt/EBITDA ratio3 Assets unencumbered4 susta
Slide 19: Reliable financial performance
05 Reliable financial performance 19
Slide 20: FIBRAMQ has a demonstrated track record of long-term value creation
FIBRAMQ has a demonstrated track record of long-term value creation Growth of Real Estate Players in Mexico (Base = 1.00 as of January 1, 2021) NAV/CBFI (US$, Indexed) FIBRAMQ Peer 1 Peer 2 Peer 3 60.0% 60.6% 44.7% 40.0% 39.3% 20.0% 5.2% 0.0% (20.0%) 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4
Slide 21: Solid performance and prudent distribution payout ratio
Solid performance and prudent distribution payout ratio Net operating income (NOI)1 (US$ per CBFI) 0.22 0.23 0.23 0.23 0.24 0.28 0.29 0.35 (US$m) 224 211 0.30 177 175 186 200 172 172 0.25 0.20 100 0.15 0.10 0.05 - 0.00 2018 2019 2020 2021 2022 2023 3Q24 LTM NOI Margin (%) 87.5% 87.8% 87.4% 87.7% 87.
Slide 22: Solid performance and prudent distribution payout ratio
Solid performance and prudent distribution payout ratio Net operating income (NOI)1 (Ps. per CBFI) 6,000 4.22 4.43 4.84 4.65 4.93 4.91 5.07 6 (Ps. m) 5 3,693 3,753 3,739 3,962 4,000 3,307 3,403 3,542 4 3 2,000 2 1 - 0 2018 2019 2020 2021 2022 2023 3Q24 LTM NOI Margin (%) 87.5% 87.8% 87.4% 87.7% 87.4
Slide 23: Sustainability focus
FIBRA Macquarie MACQUARIE México O06 Sustainability focus
Slide 24: Sustainability at the core of our business
Sustainability at the core of our business 2040 Net Zero Plan KPIs, Goals and Certifications Green Building Certification program ● FIBRA Macquarie commits to support a goal of net zero greenhouse gas emissions by 2040, in line with global efforts to limit warming to Green building certification 1.5
Slide 25: Alignment with investors and value creation
Alignment with investors and value creation Corporate governance and fee construct are aligned with investors interest and value creation 1 Fees 2 Governing bodies ● Base management fee of 1% per annum of market capitalization Technical Committee paid every six months ● FIBRAMQ has 7 out of 8 Indepe
Slide 26: Appendix
FIBRA Macquarie MACQUARIE México Appendix
Slide 27: 3Q24 highlights
3Q24 highlights Financial / balance sheet Operational Strategic initiatives AFFO Rental Rates Growth capex 3Q24 Ps. 0.6613/CBFI1 (+9.7% QoQ / +8.0% YoY) Industrial 6.14 US$/sqm/m (+1.7% QoQ / +5.9% YoY) • ~1.0 million sqft of industrial GLA in development AFFO Range Ps. 2.55-2.60/CBFI – Negotiated r
Slide 28: Executive Summary
Executive Summary 3Q24 Key Metrics Industrial average rental rates NOI per CBFI (exc. SLR) US$6.14 sqm/m (+1.7% QoQ; +5.9% YoY) Ps. 1.3460 (US$: +0.4% QoQ; +2.0% YoY) Industrial occupancy EOP AFFO per CBFI 97.2% (-42 bps QoQ; -69 bps YoY) Ps. 0.6613 (US$: +9.7% QoQ; +8.0% YoY) Industrial release spr
Slide 29: Industrial development and expansions
Industrial development and expansions NOI Project # of Incremental GLA Investment Completion / Expected Initial Lease Project City NOI Yield1 Contribution Type Projects ('000 sqft) (USDe$ '000s) Completion term (years) Date Delivered (inception to 2016) Total 13 499 25.2 11.9% Actual 8.8 Delivered (
Slide 30: Development case studies
Development case studies Mexico City - Cuautitlan Monterrey - Apodaca Ciudad Juarez – Sur/Sureste ● 15ha site in Mexico City ● 21ha development and a 25ha recently acquired site in ● 55ha site in Ciudad Juarez Monterrey’s most prominent industrial submarket, ● Completed first Class A building with c
Slide 31: Development case studies (cont'd)
Development case studies (cont’d) Tijuana – Libramiento Reynosa - Poniente ● 25ha site in Tijuana ● 8ha site in Reynosa – Building 1 406k sqft to be delivered during 2H24 ● Completed 1 class A industrial building ● Developing 3 Class A industrial buildings ● 144k sqft of GLA under construction: – Fo
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