Fibra Macquarie Mexico · BIVA:FIBRAMQ/12
Fibra Macquarie Mexico — Q1 2023 Earnings Presentation
31 slides from Fibra Macquarie Mexico's earnings presentation, 2023
Slide 1: FIBRA Macquarie México Investor Presentation First Quarter 2023
FIBRA Macquarie México Investor Presentation First 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 The growth opportunities described herein are not necessarily México, S.A. de C.V. (“MAM Mexico”), as manager, acting in the name described herein,
Slide 3: Overview
Overview FIBRA Macquarie México is a premier owner of institutional quality industrial and retail real estate with a best-in-class internal property management platform and attractive growth pipeline. 2381 35.0M sqft1,2 77.5%3 Industrial properties Gross leasable area of rents are US$-linked 172 US$
Slide 4: Favorable market dynamics
01 Favorable market dynamics Compelling Mexico market tailwinds 4
Slide 5: A commitment to value creation
A commitment to value creation Favorable market dynamics Growth pipeline Prudent capital management Compelling Mexico market Attractive development strategy Track record of disciplined capital allocation tailwinds & well-positioned balance sheet Reliable financial Quality portfolio Sustainability fo
Slide 6: Dynamic market fundamentals supporting growth
Dynamic market fundamentals supporting growth Growth of nearshoring, ecommerce logistics & Mexico’s favorable position in the global supply chain provide strong tailwinds to the industrial real estate sector Increased competitiveness Location Labor Resilience Supply Ecommerce Competitiveness Proximi
Slide 7: Mexico plays an important and growing role in the global supply chain
Mexico plays an important and growing role in the global supply chain FIBRAMQ continues benefiting from nearshoring tailwinds thanks to its strong presence in northern markets, which are being the main beneficiaries of nearshoring Avg. manufacturing salaries (US$k/yr)1 Impact of tariffs on US import
Slide 8: Fundamentals supporting Mexico’s real estate sector
Fundamentals supporting Mexico’s real estate sector Ecommerce sales growth (2010 – 2025, US$bn)1 Auto parts sector recovery to continue in 2023 (US$bn)2 Domestic Market Exports % Change YoY 30% 20% CAGR 57% 17% 6% 6% 7% 13% 5% 1% 2% 2% 1% -19% 101 Ecommerce sales growth (2019 – 107 113 97 98 2022):
Slide 9: 1Q23 Highlights
FIBRA Macquarie México MACQUARIE, 02 1Q23 Highlights
Slide 10: 1Q23 highlights
1Q23 highlights Financial / balance sheet Operational Strategic initiatives AFFO Rental Rates Growth capex 1Q23 Ps. 0.6799/CBFI1 (+0.5% QoQ / +3.7% YoY) Industrial 5.63 US$/sqm/m (+2.3% QoQ / +7.0% YoY) ~1.8m sqft of industrial GLA in progress Revised FY23 guidance Ps. 2.60-2.65/CBFI1 (-3.7% Retail
Slide 11: Growth pipeline
03 Growth pipeline Attractive development strategy 11
Slide 12: Development platform
Development platform Prudently expanding portfolio through developments in core industrial markets Expanding portfolio Completed/In progress developments 45 US$228.5m ● Target markets: Tijuana, Ciudad Juarez, Monterrey, Reynosa, MCMA, and Guadalajara ● Over next five years targeting to add ~5 millio
Slide 13: Growth capex projects
Growth capex projects - 1.8m sqft of growth GLA in progress and 3.2m Monterrey sqft of additional potential GLA Targeting stabilized NOI yield of 9% to 11% Buildings under development: 6 GLA: 1,761K sqft of GLA Total Investment: US$128.0m Locations: Tijuana (406k sqft of GLA) Reynosa (143k sqft of G
Slide 14: Developments in key markets
Developments in key markets Mexico City - Cuautitlan Monterrey - Apodaca Ciudad Juarez – Sur/Sureste ● 15ha site in Mexico City ● 21ha site in Monterrey’s most prominent industrial ● 55ha site in Ciudad Juarez submarket, Apodaca ● Developing one Class A building with for up to 10 ● Developing two Cl
Slide 15: Developments in key markets
Developments in key markets Tijuana – Libramiento Reynosa - Poniente ● 25ha site in Tijuana ● 8ha site in Reynosa ● Developing 3 Class A industrial buildings ● Developing 2 class A industrial buildings ● 144k sqft of GLA under construction: ● +870k sqft of GLA: – Advantaging of favorable market cond
Slide 16: Quality portfolio
04 Quality portfolio Prime markets managed by internal property administration platform 16
Slide 17: High quality industrial-focused portfolio in prime markets
High quality industrial-focused portfolio in prime markets Tijuana Mexicali Key market presence 25/6.4% 13/3.1% Nogales 2/2.9% Cd. Juárez ● Industrial assets in Hermosillo 35/13.2% strategic manufacturing and 11 / 5.5% Chihuahua 12/3.5% logistics markets Nuevo Laredo Reynosa 9/3.2% ● Industrial asse
Slide 18: Select industrial properties
CD. JUAREZ Select industrial REYNOSA properties MONTERREY
Slide 19: Ideally positioned to support Mexico’s manufacturing and logistics industries
Ideally positioned to support Mexico’s manufacturing and logistics industries Industrial highlights ● Strongest presence in 79.0% 3.2 23.8% ABR1 from the Northern Weighted average lease ABR1 contribution of Northern states of Mexico, a and Border states term remaining in years Top 10 customers high
Slide 20: Vertically-integrated property administration platform
FIBRAMQ’s vertically-integrated property administration platform positioned to drive growth Scalable Customer focused Market expertise Growth ● Scalable platform with ● Direct relationship with ● +80 local professionals ● Capability to provide capacity to integrate 280+ customers expansion and ● Dee
Slide 21: Select retail properties
TECAMAC POWER CENTER, MCMA Select retail CITY SHOPS DEL VALLE, MCMA CITY SHOPS VALLE DORADO, MCMA properties COACALCO POWER CENTER, MCMA
Slide 22: Defensive, high quality retail portfolio
Defensive, high quality retail portfolio Retail highlights ● Defensive portfolio primarily 82.5% 3.1 44.9% in Mexico City Metropolitan located in top three retail Weighted average lease ABR2 contribution of markets of Mexico1 term remaining in years Top 10 customers Area (MCMA), Mexico’s top retail
Slide 23: Prudent capital management
05 Prudent capital management Track record of disciplined growth and well-positioned balance sheet 23
Slide 24: Focus on disciplined growth
Focus on disciplined growth Funding growth while controlling leverage through earnings retention (FY17-1Q23): ● Stable cash generation from operating assets with further growth coming from new developments 1 – ~Ps. 2.8bn in retained AFFO from FY17 through 1Q23 2● Distribution is ~1.3x covered and al
Slide 25: Well-positioned balance sheet
Well-positioned balance sheet1 5.6% 96% US$320m of debt denominated in Undrawn committed Average cost of debt US$ revolver 96% 35.0%2 3.5 years Average debt tenor Fixed rate debt Real Estate Net LTV remaining 5.1x 3.7x 71.0% Net debt/EBITDA ratio3 Interest coverage ratio4 Assets unencumbered5 1. As
Slide 26: Reliable financial performance
06 Reliable financial performance Consistently strong cash flows and well-positioned balance sheet 26
Slide 27: Solid performance and prudent distribution payout ratio
Solid performance and prudent distribution payout ratio Net operating income (NOI)1 (Ps. m) 3,693 3,542 3,753 3,774 4,000 3,222 3,307 3,403 3,087 2,521 1,990 2,000 1,534 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 LTM NOI Margin (%) 89.6% 85.0% 85.1% 86.3% 87.0% 87.5% 87.8% 87.4% 87.7%
Slide 28: Sustainability focus
07 Sustainability focus Industry-leading focus on ESG driving value for all stakeholders 28
Slide 29: Sustainability is at the core of our business
Sustainability is at the core of our business SUSTAINABILITY AND CORPORATE COMMITMENTS At FIBRA Macquarie, we are aligning our ESG commitments, investment strategies, and business operations to globally recognize and adopt Green Building Certification program • Certified 33.5%1 of total portfolio GL
Slide 30: Commitment with our communities
Commitment with our communities IMPAC(+) program in collaboration with Inroads ● FIBRA Macquarie has partnered with the Mexican not-for-profit, INROADS de Mexico, to develop IMPAC(+), a talent support program that enables social mobility opportunities for emerging youth. ● Supporting the vulnerable
Slide 31: Aligned with investors
Aligned with investors Corporate governance and fee construct are aligned with investors interest. Structure Technical committee Fees ● Follows Macquarie Asset Management’s ● 86% of Technical Committee (“TC”) is ● Base management fee of 1% per annum of (“MAM”) highly disciplined and institutional in
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