Fibra Macquarie Mexico · BIVA:FIBRAMQ/12
Fibra Macquarie Mexico — Q3 2020 Earnings Presentation
46 slides from Fibra Macquarie Mexico's earnings presentation, 2020
Slide 1: FIBRA Macquarie México Investor Presentation Third Quarter 2020
FIBRA Macquarie México Investor Presentation Third Quarter 2020
Slide 2: Important Information
Important Information This document has been prepared by Macquarie México Real Estate Management, S.A. de C.V. facts, events or circumstances that may have arisen after that date. We do not undertake any (“MMREM”), as manager, acting in the name and on behalf of CIBanco, S.A., Institución de Banca o
Slide 3: FIBRA Macquarie premier owner of Mexican industrial and retail real estate
FIBRA Macquarie, a premier owner of Mexican industrial and retail real estate, has provided consistently strong operational and financial performance by putting its customers first. Its institutional management expertise and best in class internal property management platform drives value by unlocki
Slide 4: The FIBRA Macquarie Opportunity
The FIBRA Macquarie Opportunity 1. High Quality Portfolio in Prime Industrial and Consumer Markets 2. Scalable Internal Property Administration Platform 3. Strong Track Record of Disciplined Capital Deployment 4. Consistently Strong Operational and Financial Performance 5. Strong Balance Sheet and C
Slide 5: Demonstrated Growth Since IPO
Demonstrated Growth Since IPO Disciplined approach to capital deployment Delivering solid financial results has built a high-quality portfolio CAGR since IPO (December 2012) Gross Leasable Area (“GLA”) growth since IPO: + 28.4% +452 452 (603) 3,184 15.2% 424 14.2% 13.8% +849 13.3% 3,362 ’000 m2 2,76
Slide 6: High Quality Portfolio in Prime Industrial and Consumer Markets
Ciudad Juárez 1 High Quality Portfolio in Prime Industrial and Consumer Markets
Slide 7: High Quality Portfolio in Prime Industrial and Consumer Markets
High Quality Portfolio in Prime Industrial and Consumer Markets 80.8%1 of rents are US $ denominated Mexicali Nogales 13/3.2% 2/2.9% Cd. Juárez 34/12.8% Chihuahua 12/3.7% Diversified Portfolio Tijuana 25/6.5% • Owning both Industrial and Retail Saltillo Monterrey 11/3.8% assets provides greater grow
Slide 8: Industrial Portfolio
Industrial Portfolio Well positioned to support Mexico’s manufacturing and global export business North Bajio Central Total Number of Buildings 179 26 30 235 Number of Customers 210 26 43 279 Square Meters GLA '000s 2,204.0 339.3 215.9 2,759.2 Occupancy 93.4% 97.2% 94.3% 94.0% % Annualized Base Rent
Slide 9: Select Industrial Properties
Reynosa Select Industrial Properties Monterrey Cd. Juárez 8
Slide 10: Industrial Portfolio Strengths
Industrial Portfolio Strengths Ciudad Juárez Reynosa 74.0% of annualized base rents from light- Customer focused internal property manufacturing which typically have high administration platform, located close to switching costs customers and able to respond swiftly to their needs 93.5% of rents den
Slide 11: Diverse, High Quality Customers from Key Growth Industries
Diverse, High Quality Customers from Key Growth Industries Domestic and international customers with favorable long-term dynamics Across All Major Markets in Mexico Percent of ABR From Key Industries GLA Central Non Core Markets Markets 1% Other, 12% 10% Medical, 5% Automotive, Bajio Markets Packagi
Slide 12: Fundamentals supporting Mexico's commercial RE sector
Fundamentals supporting Mexico’s commercial RE sector World merchandise trade recovery in 2021 Near-shoring of manufacturing supply chains COVID-19: The pandemic has highlighted how disruptions in supply chains can cause production shortages. Near-shoring to Mexico mitigates this risk by moving su
Slide 13: Strong Market Fundamentals Support Industrial Demand
Strong Market Fundamentals Support Industrial Demand Positive Mexican Market Fundamentals Help Deliver Solid Leasing Results Strong Demand for Industrial Space1 • FIBRA Macquarie’s Performance • Average net absorption of 48 thousand sqft LTM • 77 new & renewed leases LTM Mexico City: -115k sqft •
Slide 14: Solid Leasing Volume and Manageable Expiration Profile: Industrial
Solid Leasing Volume and Manageable Expiration Profile: Industrial Industrial Leasing Activity Manageable Lease Expirations Profile sqft in Percentage of ABR thousands 2,500 28.7% 201 2,000 21.0% 18.8% 1,500 1,672 13.8% 47 1,000 1,914 10.9% 1,635 673 500 976 3.3% 3.6% 5 55 419 147 293 - 3Q19 4Q19 1Q
Slide 15: Select Retail Properties
Coacalco Power Center, MCMA Select Retail Properties City Shops Valle Dorado, MCMA City Shops del Valle, MCMA 14
Slide 16: Diversified Mix of High-Quality Customers
Diversified Mix of High-Quality Customers Top 10 retail customers represent approximately 43% of the retail portfolio’s ABR and have a remaining weighted average lease term of 5.9 years 15
Slide 17: Well-Positioned Retail Portfolio
Well-Positioned Retail Portfolio Retail Highlights • Defensive portfolio primarily located in Mexico City Metropolitan Area (MCMA), Mexico’s top retail market • Majority of leases are inflation protected and provide for recovery of maintenance, insurance and repairs • 100% of the leases are denomina
Slide 18: Solid Leasing Volume and Manageable Expiration Profile: Retail
Solid Leasing Volume and Manageable Expiration Profile: Retail Retail Leasing Activity Upcoming Expirations sqm in 000´s 14.0 90% 79.9% 12.0 80% 70% 10.0 60% 8.0 50% 42.5% 3.9 10.5 40% 6.0 30% 4.0 3.4 20% 16.5% 3.5 13.9% 4.3 1.5 11.3% 11.2% 11.7% 2.0 10% 4.7% 5.3% 1.7 3.1% 1.1 1.4 0.0% 0.0% 0.8 - 0%
Slide 19: Scalable Internal Property Administration Platform
Cd. Juárez 2 Scalable Internal Property Administration Platform
Slide 20: Scalable Internal Property Administration Platform
Scalable Internal Property Administration Platform Internal property administration platform provides an advantage in terms of costs, scalability and customer service Internally managing 235 industrial properties in 17 markets Property Leasing Engineering Management Tijuana Mexicali Cd. Juárez Hermo
Slide 21: Strong Track Record of Disciplined Capital Deployment
3 Strong Track Record of Disciplined Capital Deployment
Slide 22: Capital Management: FY17 - FY20 YTD Overview
Capital Management: FY17 - FY20 YTD Overview Capital sources US$m equiv. Highlights Retained AFFO • With prudent AFFO payout ratio, in FY20 retained AFFO of US$20m reinvested into growth capex Retained AFFO – FY17-FY19 99.0 • Distribution for 3Q20 of Ps. 0.4750/CBFI, up 4.4% YoY, FY20 Distribution o
Slide 23: Expansion and Development
Expansion and Development US$83.7m of expansions completed or committed with 11.6% yield Additional Completion / Expansion # of Investment Projected % of Occupancy as Market / Shopping Center3 Investment Type GLA Expected Lease term Projects (USDe$ '000s) NOI Yield1 Completion of 3Q20 EOP ('000 sqft
Slide 24: Fragmented Market Provides Growth Opportunities
Fragmented Market Provides Growth Opportunities Significant Opportunity Strong Track Record US$80BValue of institutional US$2.3B of capital deployed quality real estate since inception w/ 8.4% for rent in Mexico weighted avg. cap rate for acquisitions 77% Of real estate in ~39.6% US$118m ~US$80M Cap
Slide 25: Vertically Integrated Platform to Drive Organic and External Growth
Vertically Integrated Platform to Drive Organic and External Growth Proactive Asset Management Maximize NOI • Prudent investment in existing properties • Superior customer service from industrial administration platform Organic Increase Retention • Control operating expenses Increase Occupancy • Mai
Slide 26: Development: JUA043
Development: JUA043 Development of 9ha land parcel in Ciudad Juárez; first building of 201k sqft completed and fully leased during 4Q19 • Constructed a 201k sqft, class A building in a premier Case Study location in Ciudad Juárez Cd. Juárez • Successfully leased upon completion to a U.S.-based Devel
Slide 27: Consistently Strong Operational and Financial Performance
Reynosa 4 Consistently Strong Operational and Financial Performance
Slide 28: 3Q20 Key Portfolio Metrics
3Q20 Key Portfolio Metrics Occupancy Retention Rate1 (end of quarter) (LTM by GLA) Industrial Retail Consolidated 100% Industrial Retail 98.0% Average Industrial Average Retail 95.9% 90% 86% 95.9% 95.7% 85% 85% 95.5% 83% 96.0% 81% 81% 80% 80% 78% 83% 94.0% 95.6% 95.6% 95.3% 76% 94.0% 95.1% 69% 70% 6
Slide 29: Strong Financial Performance (Ps.)
Strong Financial Performance Revenues NOI Ps.m Ps.m 4,200 3,778 3,877 CAGR: 3,703 86.6% 87.5% 87.8% 87.6% 3,564 14.2% 89.6% 85.0% 85.7% 87.0% NOI Margin 2,942 (%) 2,341 3,681 3,222 3,307 3,403 3,087 1,712 2,521 1,990 1,534 CAGR: 13.8% 2013 2014 2015 2016 2017 2018 2019 LTM 2013 2014 2015 2016 2017 2
Slide 30: Strong Financial Performance (US$)
Strong Financial Performance Revenues NOI US$m US$m 201 CAGR: 196 196 199 176 186 191 6.0% 89.6% 85.0% 85.7% 86.6% 87.0% 87.5% 87.8% 87.6% NOI Margin 134 (%) 165 170 172 177 174 150 159 120 CAGR: 5.6% 2013 2014 2015 2016 2017 2018 2019 LTM 2013 2014 2015 2016 2017 2018 2019 LTM 3Q20 3Q20 Total asset
Slide 31: Strong Balance Sheet and Strong Cash Flow
Monterrey 5 Strong Balance Sheet and Strong Cash Flow
Slide 32: Debt Overview
Debt Overview US$90.0m drawn revolver repaid in in 3Q20, resulting in US$236.1m of undrawn revolver capacity and reduction in LTV Overview Selected Charts Regulatory LTV of 36.9% and Regulatory Debt Service Coverage Ratio of 4.4x Assets by collateral type Real Estate net LTV of 39.1% and weighte
Slide 33: Key Debt Metrics
Key Debt Metrics 70% 97% US$e 236m Unencumbered assets of US$ denominated debt Total revolver size value1 100% 46.9% US$e 236m Fixed rate debt Regulatory LTV Undrawn revolver Key Debt Ratios2 Gross and Net Debt to Interest Coverage Ratio4 Real Estate Gross Loan to Value5 EBITDA3 5.4x 5.1x 4.9x 40.1%
Slide 34: Experienced Management Supported by Quality Institutional Platform
Monterrey 6 Experienced Management Supported by Quality Institutional Platform
Slide 35: Experienced Leadership
Experienced Leadership Senior Management Team Our Manager is part of MIRA’s longstanding global asset management platform Juan Monroy Simon Hanna Peter Gaul Alejandro Mota Andrew Chief Executive Retail Senior McDonald-Hughes and follows MIRA’s highly Chief Financial Head of Real Officer Officer Esta
Slide 36: Quality Institutional Manager
Quality Institutional Manager Industry leaders in Asset Management, Corporate Governance and Reporting Fully Integrated Asset Management Platform • Balance Sheet Snapshot Macquarie Infrastructure and Real Assets Administration Risk Management • Global leader in Real Assets management Finance Public
Slide 37: Structure and Governance Aligned with Investors
Structure and Governance Aligned with Investors Best-in-class corporate governance among the FIBRAs • Fee construct, corporate governance & Manager holdings aligned with investor interests • Balance Sheet Snapshot • 83% of Technical Committee members are independent • Independent Technical Committee
Slide 38: FIBRA Macquarie Highlights
FIBRA Macquarie Highlights High Quality 252 Dual Asset Industrial and 81% Platform Retail Properties. of Revenues Portfolio Leveraged to 85% of NOI from are US Dollar Mexico’s Industrial Assets Denominated1 Economic Drivers Quality Capital US$2.3b Prudent Institutional Deployed Since leverage and Ma
Slide 39: FIBRA Macquarie 3Q20 Highlights
FIBRA Macquarie 3Q20 Highlights Monterrey 38
Slide 40: 3Q20 Highlights
3Q20 Highlights Reaffirms FY20 Distribution per certificate guidance of Ps. 1.90; Sequential reduction of 35.7% in closing net trade receivables to Ps. 73.3 million; Average industrial rental rates increased 2.3%; Momentum continuing in industrial development program Summary Financial Performance •
Slide 41: 3Q20 Key Metrics
3Q20 Highlights 3Q20 Key Metrics 93.7% Consolidated Occupancy EoP (3Q19: 95.6%; 2Q20: 95.1%) Ps. 466.1m Consolidated AFFO (Ps.0.6119 per certificate) (3Q19 Ps. 512.0m – Ps. 0.6661 per certificate 2Q20 Ps. 484.6m – Ps. 0.6363 per certificate) 8.1% YoY AFFO per Certificate Change 3.8% QoQ AFFO per Cer
Slide 42: FIBRA Macquarie 3Q20 COVID Disclosures
FIBRA Macquarie 3Q20 COVID Disclousures Monterrey 41
Slide 43: COVID-19 Disclosures: Rent Relief Program
COVID-19 Disclosures: Rent Relief Program Total portfolio rent concessions easing in 3Q20 to Ps. 43.2 million, lower by 63.0% compared to 2Q20 3Q20 rent relief summary • Rent discounts in 3Q20 of Ps. 24.4m, sequentially lower by 40.9%; FY20 YTD rent discounts total Ps. 65.7m • Rent deferrals in 3Q20
Slide 44: COVID-19 Disclosures: Rent Relief Impact and Collections
COVID-19 Disclosures: Rent Relief Impact and Collections Total income cash collections increased to Ps. 1.11bn up 12.3% from prior quarter, with 95.0% of current quarter income received. Retail portfolio with improving cash collection profile of Ps. 109.8m, up 10.4% QoQ Retail Variance 3Q20 2Q20 (3Q
Slide 45: COVID-19 Disclosures: Trade Receivables
COVID-19 Disclosures: Trade Receivables Sequential reduction in net trade receivable to Ps. 73.3m, lower by 35.7%, driven by robust collections and prudent provisioning for doubtful debts; provisioning of gross receivables increasing from 59.7% in 2Q20 to 72.9% in 3Q20 Unpaid Unpaid deferred discoun
Slide 46: COVID-19 Disclosures: Retail Portfolio Tenant Status
COVID-19 Disclosures: Retail Portfolio Tenant Status In FIBRAMQ’s retail portfolio, all shopping centers are supermarket-anchored and have remained open throughout the pandemic; opened stores have increased since the end of 2Q20 from 80.3% to 96.9%, based on GLA Retail Portfolio Current Status1 Clas
FIBRA Macquarie México — Q3 2020 Earnings Presentation on 6ix