Fibra Macquarie Mexico · BIVA:FIBRAMQ/12
Fibra Macquarie Mexico — Q4 2020 Earnings Presentation
50 slides from Fibra Macquarie Mexico's earnings presentation, 2021
Slide 1: FIBRA Macquarie México Fourth Quarter 2020 Supplementary Information
FIBRA Macquarie México (BMV:FIBRAMQ) Fourth Quarter 2020 Supplementary Information STRICTLY CONFIDENTIAL
Slide 2: Important notice
Important notice This document has been prepared by Macquarie México Real Estate Management, Certain information in this document identified by footnotes has been obtained from S.A. de C.V. (“MMREM”), as manager, acting in the name and on behalf of CIBanco, sources that we consider to be reliable an
Slide 3: Table of Contents
Table of Contents 1 Highlights 3 2 COVID-19 Disclosures 11 3 Industrial Portfolio 16 4 Retail Portfolio 20 5 Expansions & Development 25 6 Selected Financial Statements 27 7 Debt Profile 33 8 Distribution and Guidance 37 Appendix 40 AFFO and rental rate bridges Definitions and other important inform
Slide 4: Highlights
0 MACQUARIE Highlights
Slide 5: FIBRA Macquarie at a Glance
FIBRA Macquarie at a Glance as at 31 December, 2020 Strategic Focus Financial Summary FIBRA Macquarie focuses on the acquisition, development, Metric Amount ownership and management of industrial and retail real estate Market capitalization EOP 3 US$1,075m / Ps. 21.45b properties in Mexico. 3 Tota
Slide 6: FY20 Executive Summary
FY20 Executive Summary Full year FY20 distribution of Ps. 1.90 per certificate, up 6.7% YoY; Advancement in ESG program, including improvement to 3 GRESB Green Stars and completion of green building certifications for selected industrial and retail properties Summary FY20 Key Metrics • Financial Per
Slide 7: 4Q20 Executive Summary
4Q20 Executive Summary Collected 97.7% of 4Q20 consolidated base rents; Authorized 4Q20 cash distribution of Ps. 0.4750 per certificate; Progression on Industrial development program with delivery of leased Ciudad Juarez property and new investment in Monterrey project. Summary 4Q20 Key Metrics • Fi
Slide 8: 4Q20 Key Financial Metrics
4Q20 Key Financial Metrics Ps. (millions)5 US$ (millions) 5,6 Variance Variance Consolidated Portfolio1 4Q20 4Q19 4Q20 4Q19 (%) (%) Total revenues 1,011.9 987.6 2.5% 49.0 51.2 -4.2% 2 Net Operating Income 870.3 858.7 1.4% 42.2 44.5 -5.3% NOI per certificate3 1.1427 1.1214 1.9% 0.0554 0.0582 -4.8% NO
Slide 9: FY20 Key Financial Metrics
FY20 Key Financial Metrics Ps. (millions)5 US$ (millions) 5,6 Variance Variance Consolidated Portfolio1 FY20 FY19 FY20 FY19 (%) (%) Total revenues 4,224.3 3,876.8 9.0% 196.5 201.3 -2.4% 2 Net Operating Income 3,692.7 3,403.5 8.5% 171.8 176.7 -2.8% NOI per certificate3 4.8431 4.4283 9.4% 0.2253 0.229
Slide 10: 4Q20 Key Portfolio Metrics
4Q20 Key Portfolio Metrics Occupancy Retention Rate1 (end of quarter) (LTM by GLA) Industrial Retail Consolidated 100% Industrial Retail 98.0% Average Industrial Average Retail 90% 85% 85% 95.9% 95.7% 95.5% 81% 83% 78% 80% 96.0% 80% 78% 79% 95.6% 94.3% 94.0% 69% 95.3% 95.1% 70% 65% 94.0% 93.9% 64% 9
Slide 11: Capital Management: FY17 - FY20 Overview
Capital Management: FY17 - FY20 Overview Capital sources US$m equiv. Highlights Retained AFFO • Quarterly AFFO per CBFI YoY remained in line with full year guidance Retained AFFO – FY17-2019 99.0 • Distribution/CBFI for 4Q20 of Ps. 0.4750/CBFI, up 4.4% YoY, FY20 Distribution of 1.90/CBFI up 6.7% Y/Y
Slide 12: COVID-19 Disclosures
2 COVID-19 Disclosures
Slide 13: COVID-19 Disclosures: Rent Relief Program
COVID-19 Disclosures: Rent Relief Program Total portfolio rent concessions easing in 4Q20 to Ps. 15.6 million, lower by 67.1% compared to 3Q20 4Q20 rent relief summary • Rent discounts in 4Q20 of Ps.11.7m, sequentially lower by 52.0%; FY20 YTD rent discounts total Ps.77.4m • Rent deferrals in 4Q20 o
Slide 14: COVID-19 Disclosures: Base Rent Relief Impact and Collections
COVID-19 Disclosures: Base Rent Relief Impact and Collections Total income cash collections increased to Ps. 1.15bn up 2.8% from prior quarter, with 97.7% of current quarter income received, up 230bps QoQ Retail Variance 4Q20 Total 3Q20 Total (4Q20 vs 4Q20 Summary (proportionally combined basis) Ind
Slide 15: COVID-19 Disclosures: Trade Receivables
COVID-19 Disclosures: Trade Receivables Sequential reduction in net trade receivable to Ps.46.2m, lower by 36.9%, driven by robust collections and prudent provisioning for doubtful debts; provisioning of gross receivables increasing from 72.9% in 3Q20 to 79.1% in 4Q20 Unpaid Other unpaid Unpaid defe
Slide 16: 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; open stores total 70.5% of GLA as at January 26, 2021 Retail Portfolio Current Status1 Classification % of Total Leased GL
Slide 17: Industrial Portfolio
MACQUARIE Industrial Portfolio
Slide 18: Industrial Portfolio: Operating Highlights
Industrial Portfolio: Operating Highlights Industrial portfolio concluded the year with solid final quarter results, sequential increase in occupancy and rental rates, combined with WALT extension and strong rent collections. NOI impacted by FX 4Q20 Activity • Occupancy: EOP occupancy was higher QoQ
Slide 19: FIBRA Macquarie's Industrial Presence in Mexico
FIBRA Macquarie’s Industrial Presence in Mexico Industrial Highlights Lease Expiration Profile • 73.8% of annualized base rents are received from manufacturing clients % of annualized base rent that typically have high switching costs 34.3% • 92.7% of rents denominated in US$ • Majority of leases ar
Slide 20: Industrial Leasing Summary and Regional Overview
Industrial Leasing Summary and Regional Overview Resumed strong leasing activity reaching pre-COVID19 levels totaling 2.1m sqft; New leasing activity totaling 309k sqft 4Q20 Industrial Leasing Highlights Industrial Leasing Activity3 New and renewed leases totaling 2.1m sqft sqft in thousands New L
Slide 21: Retail Portfolio
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Slide 22: Retail Portfolio: Operating Highlights
Retail Portfolio: Operating Highlights Occupancy decreased 69bps QoQ to 91.4%, 190bps lower YoY; NOI excluding non-cash straight line rent adjustment trending positive for two consecutives quarters. City Shops Valle Dorado remodeling program in progress. 4Q20 Activity • Occupancy decreased 69bp QoQ
Slide 23: FIBRA Macquarie's Retail Presence in Mexico
FIBRA Macquarie’s Retail Presence in Mexico Retail Highlights Lease Expiration Profile • Defensive portfolio primarily located in the top retail market of Mexico % of annualized base rent City Metropolitan Area (MCMA) 70% 65.1% • Majority of leases are inflation protected and provide for recovery of
Slide 24: Retail Leasing and Regional Overview
Retail Leasing and Regional Overview Average Same Store Rental Rates remained mostly flat YoY, with a slight increase of 0.6% 4Q20 Retail Leasing Highlights Retail Leasing Activity3 • Quarterly lease renewal activity of 3.1k sqm sqm in New Leases Renewals Leased Expansions / Development 000´s • Rent
Slide 25: Retail Segment Overview
Retail Segment Overview FIBRAMQ retail portfolio is comprised of a mix of power centers, community shopping centers and urban infills Wholly-owned portfolio Joint Venture Properties Portfolio consists of eight properties: Portfolio consists of nine properties: • two power centers • six community
Slide 26: Expansions & Development
MACQUARIE Expansions & Development
Slide 27: Expansion and Development
Expansion and Development US$83.7m of expansions completed or committed with 11.6% yield Completion / Expansion Additional GLA Investment (USDe$ Projected NOI % of Occupancy as of Market / Shopping Center # of Projects Investment Type Expected Lease term ('000 sqft) '000s) Yield1 Completion 4Q20 EOP
Slide 28: Selected Financial Statements
6 Selected Financial Statements
Slide 29: Detailed IFRS Consolidated Income Statement by Segment
Detailed IFRS Consolidated Income Statement by Segment (in Ps. Millions unless otherwise stated) for the 3 months ended Dec 31, 2020 Dec 31, 2019 Wholly-owned Consolidated Joint Venture Proportionally Proportionally Fund Industrial Retail Retail Industrial2 Combined Combined Lease related income - 8
Slide 30: IFRS Net Profit to NOI Adjustments by Segment
IFRS Net Profit to NOI1 Adjustments by Segment (in Ps. Millions unless otherwise stated) for the 3 months ended Dec 31, 2020 Dec 31, 2019 Wholly-owned Consolidated Joint venture Proportionally Proportionally Fund Industrial Retail Retail Industrial3 Combined Combined Profit/(loss) for the period per
Slide 31: FFO & AFFO Adjustments by Segment
FFO1 & AFFO2 Adjustments by Segment (in Ps. Millions unless otherwise stated) for the 3 months ended Dec 31, 2020 Dec 31, 2019 Wholly-owned Consolidated Joint venture Proportionally Proportionally Fund Industrial Retail Retail Industrial8 Combined Combined Net Operating Income 0.0 779.2 61.2 840.4 2
Slide 32: Net Assets by Segment
Net Assets by Segment (in Ps. Millions unless otherwise stated) Dec 31, 2020 Dec 31, 2019 Wholly-owned Consolidated Joint venture Proportionally Proportionally Fund Industrial Retail Retail Industrial1 Combined Combined Current assets Cash and cash equivalents 712.9 113.5 63.1 889.6 15.8 - 905.4 708
Slide 33: 4Q20 Key Financial Metrics by Segment
4Q20 Key Financial Metrics by Segment Ps. (Millions) US$ (millions) Joint Joint Wholly-Owned Venture Wholly-Owned Venture Metric Prop Prop Fund Industrial Retail Consol Retail Industrial2 Combined Fund Industrial Retail Consol Retail Industrial2 Combined Total revenues 0.0 860.6 102.0 962.5 48.7 0.6
Slide 34: Debt Profile
7 Debt Profile
Slide 35: Debt Overview
Debt Overview Undrawn revolver availability remains high at US$243m Overview Selected Charts Assets by collateral type Regulatory LTV of 35.4% and Regulatory Debt Service Coverage Ratio of 5.7x Encumbered Real Estate net LTV of 37.6% and weighted average cost of debt of 5.5% per annum Property A
Slide 36: CNBV Regulatory Ratios
CNBV Regulatory Ratios As at December 31, 2020, Regulatory LTV decreased QoQ from 36.9% to 35.4% (mainly due to FX) and DSCR increased from 4.4x to 5.7x. The 4Q20 DSCR represents the updated methodology provided by the CNBV which reflects the inclusion of four quarters of forecast information instea
Slide 37: Debt Disclosure
Debt Disclosure Outstanding Loans as at December 31, 2020 Debt Associated with Wholly-Owned Properties Balance US$ Balance Ps. Interest Type Commencement Lenders Ccy Interest Rate p.a. Amortization3 Security Type Maturity Date mm1 mm1 (Fixed/ Variable) Date Various Banks through a Credit Facility -
Slide 38: Distribution and Guidance
8 Distribution and Guidance
Slide 39: 4Q20 Distribution and FY21 Guidance
4Q20 Distribution and FY21 Guidance Authorized 4Q20 distribution of Ps 0.4750 per certificate, representing 4.4% increase YoY, and a 80.0% AFFO payout ratio for the quarter Distribution AFFO • 4Q20 and FY20 • FY20: • Distribution per certificate of Ps 0.4750 for 4Q20; total amount: Ps 361.8 million1
Slide 40: AFFO Calculation Methodology
AFFO Calculation Methodology Quarterly cash deployment of below-FFO items (namely maintenance capex, tenant improvements and leasing commissions) flat on a YoY basis, reflecting steady operations Definitions Quarterly cash deployment vs NOI Item Definition normalized methodology Repairs and maintena
Slide 41: Appendix
APPENDIX
Slide 42: 4Q20 Quarterly AFFO per Certificate Bridges
4Q20 Quarterly AFFO per Certificate Bridges QoQ AFFO decreased 2.9%, mainly driven by FX and increased normalized maintenance capex, AFFO per certificate decreased 8.0% YoY due mainly to decreased same store income and increased expenses partially offset by FX AFFO per Certificate in Ps. 3Q20 to 4Q2
Slide 43: 4Q20 Quarterly AFFO Margin Bridges
4Q20 Quarterly AFFO Margin Bridges AFFO margin steady on a sequential basis, but lower YoY by 538bps mainly as a result of decreased same store income and increased net financing cost, partially offset by the impact of FX AFFO Margin 3Q20 to 4Q20 50% 44.6% +0.9% +0.51% 1.02% -2.32% -0.83% -0.71% -0.
Slide 44: Full Year AFFO Bridges
Full Year AFFO Bridges Full year AFFO per CBFI increased 0.6% despite the negative impacts of the COVID-19 pandemic, mainly due to Peso depreciation AFFO in Ps. millions FY19 to FY20 176.4 30.0 66.4 96.3 1,979.7 35.2 12.6 1,975.6 +1.5% -3.4% +8.9% -4.9% -1.8% -0.6% -0.2% 2019 AFFO FX Impact New Deve
Slide 45: Rental Rate Bridges Year-on-Year
Rental Rate Bridges Year-on-Year Industrial rental rate increases driven by contractual increases and renewals; Retail rental rates have been impacted by the single tenant MCMA property move out in 1Q20, with renewal rates remaining flat whilst other rent relief measures (discounts and deferrals) ha
Slide 46: Rental Rate Bridges Quarter-on-Quarter
Rental Rate Bridges Quarter-on-Quarter Industrial rental rates increases were driven by Peso appreciation and contractual increments; Retail rental rates do not reflect rent relief provided through discounts and deferrals, and are slightly higher on account of contractual increases, partially offset
Slide 47: Same Store NOI
Same Store1 NOI Industrial FY20 NOI increased by 11.7% aided by the Peso depreciation; Retail NOI decreased 17.6% YoY Industrial Same Store Financial and Operating Metrics Industrial Portfolio - Same Store1 4Q20 4Q19 Var(%) FY20 FY19 Var(%) Net Operating Income Ps. 774.6m Ps. 717.0m 11.7% Ps. 3,159.
Slide 48: GLA Distribution by Market
GLA Distribution by Market Diversified Portfolio Key Market Presence Owning both Industrial and Retail assets provides Industrial assets in strategic manufacturing greater growth opportunity markets and retail assets in high density Mexicali Nogales urban areas GLA (sqm 000's) 13/3.2% 2/2.9% Cd. Juá
Slide 49: 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 50: 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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