Fibra Shop Portafolios Inmobiliarios S.a.p.i. De C.v. · BIVA:FSHOP/13
Fibra Shop Portafolios Inmobiliarios S.a.p.i. De C.v — FibraShop — Investor Presentation (August 2018)
47 slides from Fibra Shop Portafolios Inmobiliarios S.a.p.i. De C.v's investor presentation, August 2018
Slide 1: Corporate presentation August 2018
Corporate presentation August 2018
Slide 2: Content
Content Who is FibraShop? Financial evolution Growth strategy Consumption behavior and demographics Shopping center industry www.fibrashop.mx 2
Slide 3: Who is FibraShop?
Who is FibraShop ? FibraShop is the only Fibra in Mexico focused on shopping centers. 18 shopping centers, 2 under construction, divided among three classifications: Fashion Mall, Power Center and Community Center, We have presence in 12 states of the Mexican Republic and Mexico City, We own GLA of
Slide 4: Our footprint
Our footprint www.fibrashop.mx 4
Slide 5: Total portfolio weighted average occupancy rate: 95.6%
Total portfolio weighted average occupancy rate: 95.6%* % of Occupancy Shopping center 2Q17 3Q17 4Q17 1Q18 2Q18 Plaza Cibeles 99 99 99 99 99 La Luciernaga 99 99 99 99 99 Puerto Paraíso 95 96 97 97 96 Kukulcan Plaza 85 85 82 82 83 UC Condesa Durango 100 100 100 100 100 UC Jurica 89 89 92 92 94 UC Jur
Slide 6: Lease agreements main characteristics
Lease agreements main characteristics Number of contracts per tenant type Average original contract term by type of tenant Sub Total Shopping center Anchor Anchor Pad Tenant Other general Type of tenant Average years Plaza Cibeles 4 5 1 150 74 234 La Luciernaga 1 3 3 59 20 86 Anchor 15 - 20 Puerto P
Slide 7: Well diversified tenant base
Well diversified tenant base TOP 30 per rented GLA TOP 30 per total revenues Commercial group % Commercial group % Grupo Liverpool (Liverpool / Fábricas de Francia / Suburbia / Mac Cosmetics) 10.49% Cinépolis 5.03% Grupo Liverpool (Liverpool / Fábricas de Sears / Sanborns / Telcel / Mixup-iShop / In
Slide 8: High quality assets
High quality assets The high quality of the properties is confirmed by the independent valuations year by year, we have contracted independent professionals with extensive experience for performing this valuations. Annual Variation Shopping Centers Valuation 2016 Valuation 2017 $ % Plaza Cibeles 1,8
Slide 9: Our core business: shopping center operation
Our core business: shopping center operation FibraShop’s business model is focused on the administration and operation of shopping centers that are part of our portfolio, we are not an asset manager. We are continuously seeking to optimize our properties to have shopping centers that better meet the
Slide 10: Content
Content Who is FibraShop? Financial evolution Growth strategy Consumption behavior and demographics Shopping center industry www.fibrashop.mx 10
Slide 11: Solid growth
Solid growth Between 4Q 2013* and 2Q 2018, EBITDA rose from Ps. 50 million to Ps. 247.55 million, representing an increase in our EBITDA margin of close to 18.82% EBITDA EBITDA Margin 260.0 247.6 85.0% 72.46% 1,882 bp 210.0 75.0% MNP 160.0 495% 65.0% 110.0 53.6% 50.0 55.0% 60.0 10.0 45.0% 4Q 2013 2Q
Slide 12: Quarterly growth
Quarterly growth Type of tenant 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 Anchor 54,983 55,071 58,877 63,019 65,106 Sub-Anchor 42,870 41,943 53,241 50,675 50,157 Stores 160,226 165,998 195,598 204,004 206,539 Parking 13,573 14,141 16,322 15,446 18,449 Total 271,651 277,153 324,037 333,145 340,252 2Q 2
Slide 13: Quarterly growth
Quarterly growth The following table shows the variations observed between 1Q2018 and 2Q2018: 1Q 2018 2Q 2018 Variation Revenues 333.15 341.63 2.55% Operating expenses 92.12 94.08 2.13% Operating income 241.03 247.55 2.70% Net income (excluding revaluation) 135.58 131.54 -2.98% Net income per CBFI (
Slide 14: Attractive dividend yields
Attractive dividend yields FibraShop strong results have allowed us to return attractive distributions to our CBFI holders, reflected in a competitive dividend yield from quarter to quarter. Net income per Dividend yield* CBFI 30.0 10.44% 10.00% 26.48 8.00% 25.0 579 bp cents 143% 20.0 18.5 6.00% 4.6
Slide 15: Net income from quarterly operation per CBFI
Net income from quarterly operation per CBFI(cents) www.fibrashop.mx 15
Slide 16: Solid sources of funding
Solid sources of funding IPO July 2013 5,466 MNP *Total offer in Mexico: 4,209.8 MNP * Total offer abroad: 1,256.5 MNP Bridge loan July 2014 3,200 MNP * TIIE + 125 to 200 bp margin * 2,200 MNP were tapped * Payment made in June 2015 Subscription March 2015 1,996 MNP * 112,650,311 certificates * Used
Slide 17: Solid credit profile
Solid credit profile FibraShop has a solid credit profile, as seeing in the credit ratings assigned by the rating agencies of AA+ by HR Ratings and AA by Fitch Ratings. Current liabilities FSHOP15 Banking credit line Type Secured bond Type Revolving, committed Term 5 years Guarantee Mortgage Maturit
Slide 18: Hedging strategy
Hedging strategy FibraShop has a partial coverage on the interest rates of its outstanding debt, we have covered to date two thirds of the FSHOP15 bond. As of today, we have done two swap transactions from a floating rate (TIIE) to a fixed rate. Cash flow Type of hedge Swap Rate Warranties Notional
Slide 19: FibraShop's 5-Year Evolution
FibraShop´s 5-Year Evolution In July we celebrated the five-year anniversary since FibraShop launched its IPO on Mexican Stock Exchange (BMV). Here below we present the details of several indicators showing FibraShop´s evolution since the first year of operation. www.fibrashop.mx 19
Slide 20: GLA: Evolution of the portfolio in 5 years
GLA: Evolution of the portfolio in 5 years GLA GROWTH 712,062 800,000 The 700,000 portfolio 600,000 grew over 5 times 500,000 GLA 400,000 300,000 200,000 137,587 100,000 - 2013 2014 2015 2016 2017 2Q 4Q 2019 2018 2018 Portafolio Inicial Adquisiciones Expansiones Coinversiones In the first 5 years th
Slide 21: Properties and Assets: Evolution of the portfolio in 5 years
Properties and Assets: Evolution of the portfolio in 5 years: During those five years FibraShop’s strategy has not only focused on acquisitions and co- investments in developments but also on generating value added in properties of the portfolio through: expansions, adding high quality tenants, high
Slide 22: Properties and Assets: Evolution of the portfolio in 5 years
Properties and Assets: Evolution of the portfolio in 5 years: Total Assets 20,000 18,000 16,000 14,000 Increase of 12,000 almost 3 times in total 10,000 assets 8,000 6,000 4,000 2013 2014 2015 2016 2017 2018 2018 4Q 4Q 4Q 4Q 4Q 1Q 2Q Total Assets www.fibrashop.mx 22
Slide 23: Occupancy increases
Occupancy increases Today FibraShop’s portfolio has a 95% occupancy rate, in line with international standards, as we have focused on increasing occupancy rates at the original shopping centers. www.fibrashop.mx 23
Slide 24: Goal: Grow ... and improve
Goal: Grow ... and improve Five-year growth 342 1.70 times + REVENUES 350 261 248 300 1.83 times + NOI 201 250 142 129 200 1.92 times + EBITDA 150 100 50 0 4Q-2013 2Q-2018 Revenue NOI EBITDA 80.0% 76.3% 72.5% 75.0% In these 5 years we have grown and 70.0% today we have comparable margins to 65.0% 59
Slide 25: Despite the increase in the financial cost, we have recovered the profits levels
Despite the increase in the financial cost, we have recovered the profits levels Although in one year the financial cost increased 1.9 times, net profit grew 9%. www.fibrashop.mx 25
Slide 26: Content
Content Who is FibraShop? Financial evolution Growth strategy Consumption behavior and demographics Shopping center industry www.fibrashop.mx 26
Slide 27: Growth strategy
Growth strategy's FibraShop growth strategy is divided in two Organic growth Inorganic growth Expansions of our shopping centers Acquisition of shopping centers We expand , consolidate and increase the We have acquire 10 shopping centers, which services of our shopping centers, including represent 3
Slide 28: Development stages
Development stages La Perla Average acquisition Risk Cap rate: Return 9.6% Co- investments Search and 9% Puerta La Victoria Risk Return land acquisition Construction Opening Permit and Stabilized Commercialization license Properties Project granting planning Sentura Depending on the classification o
Slide 29: Recent Acquisitions – La Perla
Recent Acquisitions – La Perla La Perla, is a multiple use complex located in the metropolitan area of Guadalajara, Jalisco. The complex is in the process of being leased and built. The shopping center is expected to be delivered at the end of 2019. La Perla, is a shopping center of 100,000 sqm appr
Slide 30: Recent Acquisitions – Sentura
Recent Acquisitions – Sentura Sentura, is a shopping center of 31,577.37 sqm, in a “Power Center” format, which is part of a multiple use complex of 86,967.2 sqm with a business class hotel of 16,995.5 sqm and two office buildings. Sentura is located in Tlalnepantla, in the north of Mexico City’s me
Slide 31: Recent Acquisitions – Puerta La Victoria
Recent Acquisitions – Puerta La Victoria Puerta La Victoria is a Fashion Mall shopping center located in a mixed-use complex, and is located on Santiago de Queretaro which opened its doors at the end of September 2017. In October FibraShop closed the transaction of this project and recognized income
Slide 32: Content
Content Who is FibraShop? Financial evolution Growth strategy Consumption behavior and demographics Shopping center industry www.fibrashop.mx 32
Slide 33: Solid internal consumption in Mexico
Solid internal consumption in Mexico Annual Internal Market Private Consumption ANTAD nominal sales growth Indicator 8.0% 12.00% 6.0% 5.5% 4.9% 5.4% 10.00% 2.8% 3.2% 4.0% 4.7% 8.00% 3.0% 2.1% 3.2% 2.0% 1.8% 2.0% 2.48% 6.00% 0.0% 4.00% -2.0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 34: GDP for the first quarter of 2018
GDP for the first quarter of 2018 (Percentage change in real terms compared to the same period last year) 2017 2018 Denominación I II III IV I Total GDP at Market prices 3.0 3.0 1.7 1.6 2.3 6.2 8.1 4.9 4.0 4.1 Primary Activities Agriculture, animal breeding and exploitation, 11 3.9 2.7 2.2 4.4 5.2 f
Slide 35: Solid internal consumption in Mexico
Solid internal consumption in Mexico Monthly survey about commercial companies (Points change in real terms compared to the same period last year) 146 144 142 140 138 136 134 132 130 462 Retail trade in 4621 Retail sale in 4622 Retail trade in supermarkets and supermarkets department stores departme
Slide 36: Solid internal consumption in Mexico
Solid internal consumption in Mexico GDP for the quarter of 2018 (Percentage change in real terms compared to the same period last year) 4.0 3.9 3.6 3.5 3.5 3.4 3.2 3.2 3.1 3.1 3.0 2.9 2.9 2.7 2.5 2.3 2.1 2.2 2.0 1.7 1.5 1.5 1.4 1.0 0.5 0.0 I II III IV I II III IV I II III IV I II III IV I 2014 2015
Slide 37: Solid internal consumption in Mexico
Solid internal consumption in Mexico 1 Quarterly GDP 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% GDP Wholesale and retail commerce www.fibrashop.mx 37
Slide 38: Population
Largest cities in Mexico 20 most populated entities 2,000 1,816 1,800 1,656 1,5601,5401,495 1,600 1,436 1,3321,244 1,400 Population 1,1861,1361,111 1,200 937 859 1,000 834 831 820 820 802 797 790 800 600 400 200 0 Annual Annual Range / Northwes # of Region growth growth Northeast Center South Region
Slide 39: Income distribution
Income distribution Cities with Income Cities with over Cities with over 50K-400K MAMC Guadalajara Monterrey Average level 400K habitants 400K habitants* habitants A/B 6.30% 6.80% 7.10% 5.50% 10.50% 7.90% 7.37% C+ 13.40% 14.30% 14.50% 12.70% 17.20% 16.80% 14.82% C 18.20% 16.90% 17.10% 15.60% 19.40%
Slide 40: GDP Growth
GDP Growth • Economy is starting to show signs of 3.22% recovery. • Some regions are growing above the national average rate of 3.00%. The GDP growth expectation for 2018 according to Banxico Annual % Contribution Region Growth surveys of October 2017 is 2.30%. (2010 -2014) to GDP 2014 Northeast 3.8
Slide 41: Content
Content Who is FibraShop? Financial evolution Growth strategy Consumption behavior and demographics Shopping center industry www.fibrashop.mx 41
Slide 42: Shopping centers in Mexico
Shopping centers in Mexico Total inventory: 22,066,046 m2 and 1,873,361 m2 in construction Inventory distribution by m2 region Inventory distribution by inventory type Community/Nei ghborhood Center 4% 27.6% Metropolitan LifeStyle/Entert 10% ainment Center 30% Center 11% Northeast Power Center 26.9%
Slide 43: Global square feet prices
Global square feet prices A study conducted among 71 countries to analyze which is most expensive city in terms of rent per square foot, places Mexico in rank 43, below comparable countries like Brazil (13% above) and showing a tendency of future rent increase. Source: http://www.cushmanwakefield.es
Slide 44: Square meter pricing in the main commercial corridors of Latin America
Square meter pricing in the main commercial corridors of Latin America Source: http://www.cushmanwakefield.es/es/research-and-insight/2016/main-streets-across-the-world-2016-2017/ www.fibrashop.mx 44
Slide 45: Key markets for retailers
Key markets for retailers Key markets for retailers only in US Leading retailers by country % retailers % retailers % % Rank Country City Rank retailers retailers Rank presence – 2015 presence– 2016 Country 2016 present - present – 2015 1 United Kingdom London 67.6 67.6 2015 2016 United Arab 1 Unite
Slide 46: Disclaimer
Disclaimer About FibraSHop FibraShop (BMV: FSHOP13), is the only real estate option in Mexico offering a specialization in the shopping malls segment that has a long-track experienced management in the commercial sector, a solid operating and corporate governance structure, which guarantees transpar
Slide 47: Contacts
Contacts Salvador Cayón Ceballos, CEO scayon@fibrashop.mx Gabriel Ramírez Fernández, CFO gramirez@fibrashop.mx Irvin García Millán, Controller investor@fibrashop.mx Tel. (5255) 5292 1160 www.fibrashop.mx 47