Fibra Macquarie Mexico · BIVA:FIBRAMQ/12
Fibra Macquarie Mexico — Q4 2023 Earnings Presentation
48 slides from Fibra Macquarie Mexico's earnings presentation, February 2024
Slide 1: FIBRA Macquarie México Supplementary Information Fourth Quarter 2023
FIBRA Macquarie México Supplementary Information (BMV: FIBRAMQ) Fourth Quarter 2023 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 belief and judgment. Such statements do not reflect or constitute legal México, S.A. de C.V. (“MAM Mexico”), as manager, acting in the name describe
Slide 3: Executive Summary: 4Q23 financial and operational results
Executive Summary: 4 4Q23 financial and operational results 1 Growth Capex 10 2 Industrial portfolio 13 3 Retail portfolio 17 4 Selected financial statements 22 5 Debt profile 31 6 AFFO calculation methodology 35 7 Appendix 38 3
Slide 4: FIBRA Macquarie at a Glance
FIBRA Macquarie at a Glance As at December 31, 2023 Strategic focus Financial summary Metric Amount • FIBRA Macquarie focuses on the acquisition, development, ownership and Market capitalization EOP3 US$1.5bn / Ps. 25.3bn management of industrial and retail real estate properties in Mexico Total ass
Slide 5: Executive Summary
Executive Summary 4Q23 Key Metrics FY23 Key Metrics US$5.88 Industrial average rental rates Constructed GLA – lease ups Ps. NOI (exc. SLR) 0.2m sqft sqm/m (+1.4% QoQ; +6.9% YoY) in stabilization 3,759.0m (US$: +12.2% YoY) Industrial occupancy EOP Constructed GLA – deliveries NOI per CBFI (exc. SLR)
Slide 6: FY23 Key financial metrics
FY23 Key financial metrics Ps. m5 Ps. m5 US$m5,6 US$m5,6 1 Consolidated Portfolio FY23 FY22 Variance (%) FY23 FY22 Variance (%) Total revenues 4,336.4 4,296.6 0.9% 244.1 213.5 14.4% 2 Net Operating Income (inc. SLR) 3,739.2 3,753.1 -0.4% 210.5 186.5 12.9% NOI per certificate3 (inc. SLR) 4.9117 4.930
Slide 7: 4Q23 Key financial metrics
4Q23 Key financial metrics Ps. m5 Ps. m5 US$m5,6 US$m5,6 1 Consolidated Portfolio 4Q23 4Q22 Variance (%) 4Q23 4Q22 Variance (%) Total revenues 1,111.9 1,101.7 0.9% 63.2 55.9 13.1% 2 Net Operating Income (inc. SLR) 946.0 947.1 -0.1% 53.8 48.1 11.9% NOI per certificate3 (inc. SLR) 1.2426 1.2440 -0.1%
Slide 8: 4Q23 Key Portfolio Metrics
4Q23 Key Portfolio Metrics Retention rate1 Occupancy (End of quarter) (LTM by GLA) 100.0% 98.2% 98.4% 98.1% 97.6% 97.9% 100.0% 92.5% 93.4% 98.0% 90.5% 91.7% 89.4% 89.6% 91.5% 90.0% 85.5% 86.4% 96.0% 96.8% 82.1% 84.1% 97.3% 97.5% 97.1% 97.3% 85.5% 80.0% 94.0% 92.0% 70.0% 90.0% 91.7% 92.0% 60.0% 90.9%
Slide 9: Lease Rental Rate Summary
Lease Rental Rate Summary Industrial portfolio lease summary Portfolio ABR composition by Considers leases that have been in place for at least 12 months through to 4Q23 currency Rental Rate Rental Rate Weighted Average Weighted Average Weighted Average GLA (sqm '000s) ABR (US$m) (US$/sqm/m) (US$/sq
Slide 10: Growth Capex
MACQUARIE México O1 Growth Capex FIBRA Macquarie
Slide 11: Growth capex projects
Growth capex projects ► 1.5m sqft of growth GLA under development or stabilization Monterrey ► LTD US$253m of expansions and development completed or committed at ~11.0% yield, totaling 3.8m sqft of GLA Targeting stabilized NOI yield of 9% to 11% Buildings under development/ stabilization: 6 GLA: 1,
Slide 12: Industrial development and expansions
Industrial development and expansions NOI Project # of Incremental GLA Investment Completion / Expected Initial Lease Project City NOI Yield1 Contribution Type Projects ('000 sqft) (USDe$ '000s) Completion term (years) Date Delivered (inception to 2016) Total 13 498.7 25.2 11.9% Actual 8.8 Delivered
Slide 13: Industrial Portfolio
FIBRA Macquarie MACQUARIE México 02 Industrial Portfolio
Slide 14: Industrial portfolio: Operating highlights
Industrial portfolio: Operating highlights Financial and operational metrics Var (%) 4Q23 vs Var (%) 4Q23 Var (%) FY23 vs 1 4Q23 3Q23 3Q23 4Q22 vs 4Q22 FY23 FY22 FY22 Selected financial metrics (Ps. m) Revenues $916.6 $857.8 6.9% $942.7 (2.8%) $3,585.7 $3,656.0 (1.9%) Expenses ($107.7) ($87.7) 22.7%
Slide 15: FIBRA Macquarie's industrial presence
FIBRA Macquarie’s industrial presence Use of space Lease expiration profile 36.6% (% of annualized base rent) Other 1% (% of annualized base rent) Distribution 28% 19.9% 15.2% 15.7% 8.5% 4.1% Manufacturing 71% In regularization 2024 2025 2026 2027 2028 + Presence in key industries Presence in key ma
Slide 16: Industrial leasing summary and regional overview
Industrial leasing summary and regional overview 4Q23 Industrial leasing highlights Industrial leasing activity3 Country of (Sqft in thousands) New Leases Renewals Leased Expansions/Development Transaction Market GLA (sqft) Industry Term domicile 3,000 New Lease Mexicali 143,735 Electrical Equipment
Slide 17: Retail Portfolio
FIBRA Macquarie MACQUARIE México O03 Retail Portfolio
Slide 18: Retail portfolio: Operating highlights
Retail portfolio: Operating highlights Financial and operational metrics Var (%) 4Q23 Var (%) 4Q23 Var (%) FY23 vs Ps. millions; except operating stats11 4Q23 3Q23 vs 3Q23 4Q22 vs 4Q22 FY23 FY22 FY22 Selected financial metrics Revenues $195.3 $190.0 2.8% $158.9 22.9% $750.7 $640.6 17.2% Lease Rental
Slide 19: FIBRA Macquarie's retail presence
FIBRA Macquarie’s retail presence Retail portfolio highlights Well-balanced lease expiration profile • Defensive portfolio primarily located in the top retail market of Mexico City (% of annualized base rent2) Metropolitan Area (MCMA) Anchor Total 35.0% 29.8% • All leases are inflation protected and
Slide 20: Retail leasing and regional overview
Retail leasing and regional overview 4Q23 Retail leasing highlights Retail leasing activity3 (sqm in thousands) Transaction Shopping Center GLA (sqm) Sector Customer New Lease Multiplaza del Valle 1,092 Merchandise Hiper Family New Leases Renewals Leased Expansions/Development New Lease Magnocentro
Slide 21: Retail segment overview
Retail segment overview Wholly-owned portfolio Joint venture portfolio ● Portfolio consists of 8 properties: ● Portfolio consists of 9 properties: – 2 power centers – 6 community shopping centers – 3 urban infills – 2 urban infills – 1 community shopping center – 1 mixed-use property Monterrey – 1 m
Slide 22: Selected Financial Statements
5 04 Selected Financial Statements 22
Slide 23: Detailed IFRS Consolidated Income Statement by Segment
Detailed IFRS Consolidated Income Statement by Segment (Ps. millions unless otherwise stated) Dec 31, 2023 Dec 31, 2022 Wholly-owned JV Proportionally Proportionally Ps. millions unless otherwise stated FIBRA Industrial Retail Consolidated Retail Industrial2 Combined Combined Lease related income -
Slide 24: Detailed IFRS Consolidated Income Statement by Segment (cont'd)
Statement by Segment (cont’d) Detailed IFRS Consolidated Income (Ps. millions unless otherwise stated) Dec 31, 2023 Dec 31, 2022 Wholly-owned JV Proportionally Proportionally For the three-month period ended FIBRA Industrial Retail Consolidated Retail Industrial1 Combined Combined Management fees (6
Slide 25: IFRS net profit to NOI Adjustments by Segment
IFRS net profit to NOI1 Adjustments by Segment (Ps. millions unless otherwise stated) Dec 31, 2023 Dec 31, 2022 Wholly-owned JV Proportionally Proportionally For the three-month period ended FIBRA Industrial Retail Consolidated Retail Industrial3 Combined Combined Profit/(loss) for the period per In
Slide 26: Adjustments by Segment FFO and AFFO
Adjustments by Segment FFO1 and AFFO2 (Ps. millions unless otherwise stated) Dec 31, 2023 Dec 31, 2022 Wholly-owned JV Proportionally Proportionally For the three-month period ended FIBRA Industrial Retail Consolidated Retail Industrial8 Combined Combined7 Net Operating Income 0.0 791.3 94.2 885.4 4
Slide 27: Reconciliations of profit/(loss) to FFO and AMEFIBRA FFO
Reconciliations of profit/(loss) per interim financial statements to FFO and AMEFIBRA FFO (Ps. millions unless otherwise stated) Dec 31, 2023 Dec 31, 2022 Wholly-owned JV Proportionally Proportionally For the three-month period ended FIBRA Industrial Retail Consolidated Retail Industrial2 Combined C
Slide 28: Net Assets by Segment
Net Assets by Segment (Ps. millions unless otherwise stated) Dec 31, 2023 Dec 31, 2022 Wholly-owned JV Proportionally Proportionally For the three-month period ended FIBRA Industrial Retail Consolidated Retail Industrial Combined Combined Current assets Cash and cash equivalents 233.0 165.5 37.4 436
Slide 29: Net Assets by Segment (cont'd)
Net Assets by Segment (cont’d) (Ps. millions unless otherwise stated) Dec 31, 2023 Dec 31, 2022 Wholly-owned JV Proportionally Proportionally For the three-month period ended FIBRA Industrial Retail Consolidated Retail Industrial Combined Combined Non-current liabilities Trade and other payables - -
Slide 30: 4Q23 Key financial metrics by segment
4Q23 Key financial metrics by segment Ps. m US$m Wholly-Owned Joint Venture Prop Wholly-Owned Joint Venture Prop Metric FIBRA Industrial Retail Consol Retail Industrial Combined FIBRA Industrial Retail Consol Retail Industrial Combined Total revenues 0.0 898.4 130.0 1,028.5 65.2 18.2 1,111.9 0.0 51.
Slide 31: Debt Profile
MACQUARIE México O05 Debt Profile FIBRA Macquarie
Slide 32: Debt overview
Debt overview Overview Key debt ratios2 Total and net debt Real estate gross5, net Interest coverage4 ● CNBV Regulatory LTV of 29.3% and Regulatory Debt Service Coverage Ratio of 5.6x to EBITDA3 and regulatory LTV 3.9x ● Real Estate net LTV of 31.4% and weighted average cost of debt of 5.7% 5.2x per
Slide 33: Debt Disclosure
Debt Disclosure Outstanding loans as at December 31, 2023 Debt associated with wholly-owned properties ESG Balance Balance Interest type Interest Security Commencement Maturity Lenders Ccy Amortization2 component US$ m1 Ps. mm1 (Fixed/ Variable) rate p.a. type date date Various Insurance Companies t
Slide 34: CNBV Regulatory Ratios
CNBV Regulatory Ratios 4Q23 Leverage ratio Ps.’000 1 Bank debt 15,537,058 Bonds - Total assets 52,949,005 15,537,058 Leverage ratio = = 29.3% 52,949,005 2 Ps.’000 Debt service coverage ratio ( ICD t ) 4 t=0 ∑ t=1 AL 0 Liquid assets 467,686 - IVA t Value added tax receivable - - UO t Net operating in
Slide 35: AFFO Calculation Methodology
7 06 AFFO Calculation Methodology 35
Slide 36: AFFO calculation methodology
AFFO calculation methodology Definitions NOI Item Definition Repairs and maintenance Scheduled or unscheduled work to repair minor damage or normal wear and tear, as well as make-ready expenses. Typically, low value relative to maintenance capex. expense (R&M) FFO Items Transaction related expenses
Slide 37: AFFO calculation methodology (cont'd)
AFFO calculation methodology (cont’d) Quarterly cash deployment vs normalized methodology 4Q23 4Q22 Actual cash deployment for the three months ended Ps. m Ps. m Var (%) Financing costs (2.5) (13.1) (80.9%) Maintenance capital expenditures (74.3) (94.3) (21.2%) Tenant improvements (64.0) (32.6) 96.5
Slide 38: Appendix
FIBRA Macquarie MACQUARIE México O07 Appendix
Slide 39: Rental Rate Bridges Year-on-Year
Rental Rate Bridges Year-on-Year Industrial rental rate bridge from 4Q22 to 4Q23 (US$/sqm/m) +0.07 +0.00 -0.02 5.88 +0.06 +0.09 +0.01 +0.15 1.34% 0.07% -0.29% +6.89% 5.50 0.10% 1.17% 1.73% 2.78% 4Q22 Contract Increases Negotiated Renewals Contractual Extensions Growth Capex FX New Leases Moveouts 4Q
Slide 40: FY23 AFFO Bridges
FY23 AFFO Bridges AFFO per certificate in Ps. FY22 to FY23 (Ps. /CBFI) 2.2% -8.2% 18.7% -4.0% 0.0602 -2.9% -10.7% 0.2222 2.7124 0.1076 0.0793 2.5801 0.5064 0.2898 (4.9%) 0.8% +10.3% FY2022 AFFO Increased Same Store Income Increased NOI - Property Increased Financing Cost, Mgmt Increased Normalized I
Slide 41: 4Q23 Quarterly AFFO per Certificate Bridges
4Q23 Quarterly AFFO per Certificate Bridges AFFO per certificate in Ps. 3Q23 to 4Q23 (Ps. /CBFI) 0.0017 0.0267 0.0289 0.6121 0.0422 0.0219 0.6363 0.3% 6.9% -4.4% 4.7% +4.0% -3.6% 3Q23 AFFO Increased Same Store Income Decrease Normalized Increased Same Store Expenses Net Increased Management Fee, FX
Slide 42: Consolidated Portfolio: Same Store Metrics
Consolidated Portfolio: Same Store Metrics1 Financial Metrics (Ps. m) 4Q23 4Q22 Var (%) 12 Months ended Dec 31, 2023 (FY23) 12 Months ended Dec 31, 2022 (PCP) Var (%) FY23 vs PCP Revenues (Ps. m; inc. SLR) Ps. 1,085.2m Ps. 1,091.5m (0.6%) Ps. 4,246.1m Ps. 4,261.1m (0.4%) Net Operating Income (Inc. S
Slide 43: Industrial Portfolio: Same Store Metrics
Industrial Portfolio: Same Store Metrics1 Financial Metrics (Ps. m) 4Q23 4Q22 Var (%) 12 Months ended Dec 31, 2023 (FY23) 12 Months ended Dec 31, 2022 (PCP) Var (%) FY23 vs PCP Revenues (Ps. m; inc. SLR) Ps. 889.9m Ps. 932.6m (4.6%) Ps. 3,495.5m Ps. 3,620.5m (3.5%) Net Operating Income (Ps. m; inc.
Slide 44: Retail Portfolio: Same Store Metrics
Retail Portfolio: Same Store Metrics1 Financial Metrics (Ps. m) 12 Months ended 12 Months ended Var (%) 4Q23 4Q22 Var (%) Dec 31, 2023 (FY23) Dec 31, 2022 (PCP) FY23 vs PCP Revenues (Ps. m; inc. SLR) Ps. 195.3m Ps. 158.9m 22.9% Ps. 750.7m Ps. 640.6m 17.2% Net Operating Income (Ps. m; inc. SLR) Ps. 1
Slide 45: GLA distribution by market
GLA distribution by market Diversified portfolio Key market presence Owning both Industrial and Retail assets provides greater growth opportunity. Industrial assets in strategic manufacturing markets and retail assets in high density urban areas. GLA (sqm 000's) City Region Industrial % Retail2 % To
Slide 46: Portfolio Distribution by Markets
Portfolio Distribution by Markets Industrial GLA GLA Average Monthly Rent per City Total Number of Properties Total Number of Tenants Occupancy (000’s sqft) (000’s sqm) % Industrial GLA Leased m2 (US$)1 Monterrey 39 46 98.5% 5,865.6 544.9 19.0% 5.78 Ciudad Juárez 35 38 100.0% 4,613.4 428.6 14.9% 5.6
Slide 47: 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 48: 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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