Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario · OTC:CBAOF
Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario — Terrafina — Investor Presentation (December 2020)
22 slides from Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario's investor presentation, December 2020
Slide 1: Terrafina Investor Presentation December 2020
ap BD TERRAFINA ~ *Investor Presentation December 2020
Slide 2: Disclaimer
Disclaimer This presentation is strictly confidential and is being furnished to you solely for your information. It may not be reproduced or redistributed to any other person, and it may not be published, in whole or in part, for any purpose. By receiving this presentation, you become bound by the a
Slide 3: Terrafina at a glance: a leading industrial REIT in Mexico
Terrafina at a glance: a leading industrial REIT in Mexico… Key Metrics as of 3Q20 IndustrialProperties North 62.7% Youngest Portfolio 289 Bajio 22.5% Avg. Age 13 years Central 14.8% Rental Revenues Occupancy Rate ~97% US$ 95.5% Rent per ft2 GLA US$5.18 42.3mm ft2 Solid Fundamentals with PGIM Real E
Slide 4: Terrafina: a defensive play under COVID-19 scenario
Terrafina: a defensive play under COVID-19 scenario Terrafina focused on safety and business continuity • Top priority our stakeholders - safety of our collaborators, tenants and suppliers ü Closely monitoring our tenants’ operations in compliance with health and safety guidelines. ü 100% of our ten
Slide 5: Delivering results since inception: key milestones
… that has been delivering results since inception Key milestones that propelled and support our growth story • US$150mm draw down of revolving facility; contingency plan under COVID 19 • PGIM reaches • FO offering • Refinancing • Refinancing ~US$460mm US$150mm US$300mm • US$120mm 19.9mm ft2 • Acqui
Slide 6: Successfully executing its business plan
Successfully executing its business plan… Strong business model under different cycles 5.30 99.0% 95.5% 5.20 96.5% 95.3% 97.0% 95.5% 5.19 5.18 5.10 94.8% 5.15 95.0% 5.00 93.2% 5.04 93.0% 4.90 91.2% 4.88 4.88 91.0% 4.80 89.7% Mexican Elections 4.82 USMCA ratified 4.76 89.0% 4.70 US Elections COVID19
Slide 7: Resilient portfolio across different economic cycles
… with a resilient portfolio across different economic cycles… …successfully managed by Terrafina and PGIM Real Estate 2 Global Financial 3 Recovery 2nd Follow On / 1 PGIM RE Fund 4 Terrafina IPO and 5 Asset Sale / 6 7 COVID Crisis Development Phase Crisis / AI / Kimco 1st Follow On Acquisitions & P
Slide 8: Key Investment Highlights
Key Investment Highlights Best-in-class industrial portfolio with a high-quality tenant base and strategically diversified in top industrial markets Robust portfolio in a resilient industry Proven track record delivering consistent and stable operating and financial results Sound capital structure &
Slide 9: Diversified High-Quality Industrial Portfolio
Diversified High-Quality Industrial Portfolio Mexico Industrial Breakdown: Distribution by Region(1) Tenants advancing to new trends Central Baijo North • Aerospace: Mexico is a prime location for Aerospace enhanced by highly qualified workforce. Our tenants participate in the supply chains of the w
Slide 10: Long-term tenant relationships supported by high retention rates
Long-term tenant relationships supported by high retention rates • 74.9% of our tenants are focused on manufacturing, while 25.1% are in distribution and logistics activities • Tenant base comprised primarily of large, creditworthy multinational companies • Manufacturing tenants have up to 10-year l
Slide 11: Stable and growing industry
Stable and growing industry Over 10 years of steady performance of the Mexican industrial real estate industry Consistent and Stable Growth Trend Sound Absorption Across Markets Industrial Stock (mm ft ) 2 Industrial Net Absorption (mm ft2) 797 830 800 736 770 90 91 674 566 75 600 506 524 541 544 59
Slide 12: Solid top and bottom-line metrics
Solid top and bottom-line metrics EBITDA and EBITDA margins 79.6% 79.9% 82.9% 83.6% 82.6% 83.4% 83.9%84.3% 77.8% 43.6 43.3 42.8 44.2 42.5 42.2 43.2 39.6 41.3 40.9 42.2 39.3 35.7 37.9 37.2 28.1 26.9 27.6 28.9 27.7 28.5 27.2 27.0 27.0 28.5 29.6 30.5 29.6 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q
Slide 13: Disciplined financial strategy with prudently structured debt facilities
Disciplined financial strategy with prudently structured debt facilities… Credit Credit(International) Credit Ratings Ratings Ratings (International) (International) Baa3 (Stable) • Large network of lending relationships, from InvestmentInvestment Investment Grade Grade Grade BBB- (Stable) both Terr
Slide 14: Premier Institutional Corporate Governance
Premier Institutional Corporate Governance… Robust corporate governance standards Committees • Alberto Chretin, Chief Executive Officer • Carlos Gomez, Chief Financial Officer ● Comprised of PGIM executives Investment and Terrafina’s CEO • Francisco Martinez, Investor Relations Officer Committee ● T
Slide 15: Stands out among other industrial Mexican REITs
… that stands out among other industrial Mexican REITs… Fully dedicated internal Senior Management team exclusive management team to Terrafina Shareholder friendly Terminable at any time without advisory agreement cost by simple majority vote of shareholders; No acquisition fees No conflicts of inte
Slide 16: Appendix
apy . DB TERRAFINA SECTION 2: APPENDIX
Slide 17: Financial performance
Financial performance NOI and NOI Margin – (US$ MM) EBITDA and EBITDA Margin – (US$ MM) 92.1% 92.0% 92.3% 92.4% 94.1% 94.3% 94.1% 94.2% 94.2% 93.7% 87.6% 89.0% 89.9% 83.0% 83.1% 84.2% 84.8% 83.4% 84.4% 83.9% 84.3% 190.0 190.2 79.8% 82.5% 82.5% 166.8 77.1% 78.4% 170.9 169.9 150.3 126.3 123.6 131.8 11
Slide 18: Credit metrics
Credit metrics Net Debt / EBITDA(1) Debt / EBITDA(1) 7.0x 6.2x 6.3x 6.3x 6.1x 6.1x 6.0x 6.1x 5.9x 5.8x 5.9x 5.8x 5.8x 5.9x 5.7x 5.6x 5.7x 5.5x 5.5x 5.3x 5.3x 5.1x 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 LTV(2) EBITDA / Interest Ex
Slide 19: Portfolio's Operating and Financial Highlights
Portfolio’s Operating and Financial Highlights 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 fx 19.2896 19.2896 19.8578 23.3033 22.1330 MXN MM USD MM Rental Revenues 945.8 931.5 998.2 1,175.2 1,103.6 48.7 48.3 50.3 50.3 49.9 Other Operating Income 71.0 58.4 25.6 27.3 29.7 3.7 3.0 1.3 1.1 1.3 Net
Slide 20: Implied cap rate calculation
Implied cap rate calculation Implied cap rate NAV US$ MM, unless otherwise noted US$ MM, unless otherwise noted (+) Investment Properties (Excl. Landbank) 2,406.6 (+) Landbank 41.5 Certificate Price (1) (Ps$27.79) 1.26 (+) Cash 82.0 (x) Certificates (MM) 790.6 (-) Total Debt 1,093.8 (=) NAV 1,436.3
Slide 21: PGIM Real Estate: Premier Global Real Estate Management Platform
PGIM Real Estate: Premier Global Real Estate Management Platform Terrafina’s platform is run by one of the top real estate investment managers in the world Institutional Investment Risk Management Expertise Processes and Due Diligence Industry Portfolio Management Relationships Transfer of Economies
Slide 22: Terrafina
ay BD TERRAFINA