Fibra Macquarie Mexico · BIVA:FIBRAMQ/12
Fibra Macquarie Mexico — Q1 2024 Earnings Presentation
46 slides from Fibra Macquarie Mexico's earnings presentation, Jun 12, 2024
Slide 1: FIBRA Macquarie México Supplementary Information First Quarter 2024
FIBRA Macquarie México Supplementary Information (BMV: FIBRAMQ) First Quarter 2024 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: 1Q24 financial and operational results
Executive Summary: 4 1Q24 financial and operational results 1 Growth Capex 9 2 Industrial portfolio 12 3 Retail portfolio 16 4 Selected financial statements 21 5 Debt profile 30 6 AFFO calculation methodology 34 7 Appendix 37 3
Slide 4: FIBRA Macquarie at a Glance
FIBRA Macquarie at a Glance As at March 31, 2024 Strategic focus Financial summary Metric Amount • FIBRA Macquarie focuses on the acquisition, development, ownership and Market capitalization EOP3 US$1.5bn / Ps. 25.7bn management of industrial and retail real estate properties in Mexico Total assets
Slide 5: Executive Summary: 1Q24 Key Metrics
Executive Summary 1Q24 Key Metrics Industrial average rental rates US$5.97 sqm/m (+1.6% QoQ; +6.1% YoY) 211k sqft Constructed GLA – lease ups in stabilization Industrial occupancy EOP 98.2% (+10 bps QoQ; +1 bps YoY) 635m sqft Constructed GLA – deliveries (not leased) Industrial release spread – comm
Slide 6: 1Q24 Key financial metrics
1Q24 Key financial metrics Ps. m5 Ps. m5 US$m5,6 US$m5,6 1 Consolidated Portfolio 1Q24 1Q23 Variance (%) 1Q24 1Q23 Variance (%) Total revenues 1,112.2 1,091.5 1.9% 65.4 58.4 12.1% 2 Net Operating Income (inc. SLR) 952.9 950.4 0.3% 56.1 50.8 10.3% NOI per certificate3 (inc. SLR) 1.2401 1.2484 -0.7% 0
Slide 7: 1Q24 Key Portfolio Metrics
1Q24 Key Portfolio Metrics Retention rate1 Occupancy (End of quarter) (LTM by GLA) 100.0% 98.2% 98.4% 98.1% 98.2% 97.9% 100.0% 92.5% 93.4% 91.7% 89.6% 88.9% 98.0% 89.4% 91.2% 90.0% 84.1% 87.3% 96.0% 97.3% 86.4% 97.5% 97.3% 97.3% 82.1% 85.9% 97.1% 80.0% 94.0% 92.0% 70.0% 90.0% 91.7% 92.0% 60.0% 91.0%
Slide 8: Lease Rental Rate Summary
Lease Rental Rate Summary Industrial portfolio lease summary Portfolio ABR composition by Considers leases that have been in place for at least 12 months through to 1Q24 currency Rental Rate Rental Rate Weighted Average Weighted Average Weighted Average GLA (sqm '000s) ABR (US$m) (US$/sqm/m) (US$/sq
Slide 9: Growth Capex
MACQUARIE México O1 Growth Capex FIBRA Macquarie
Slide 10: Growth capex projects
Growth capex projects ► 1.5m sqft of growth GLA under development or stabilization Monterrey ► LTD US$254m of expansions and development completed or committed at ~11.0% yield, totaling 3.8m sqft of GLA ► Acquired a 25ha land parcel in Nuevo León adjacent to FIBRA MQ’s Apodaca industrial park to dev
Slide 11: Industrial development and expansions
Industrial development and expansions NOI Project # of Incremental GLA Investment Completion / Expected Initial Lease Project City NOI Yield1 Contribution Type Projects ('000 sqft) (USDe$ '000s) Completion term (years) Date Delivered (inception to 2016) Total 13 499 25.2 11.9% Actual 8.8 Delivered (
Slide 12: Industrial Portfolio
FIBRA Macquarie MACQUARIE México 02 Industrial Portfolio
Slide 13: Industrial portfolio: Operating highlights
Industrial portfolio: Operating highlights Financial and operational metrics Var (%) 1Q24 vs Var (%) 1Q24 1 1Q24 4Q23 4Q23 1Q23 vs 1Q23 Selected financial metrics (Ps. m) Revenues $913.4 $916.6 (0.4%) $912.3 0.1% Expenses ($101.1) ($107.7) (6.1%) ($87.9) 15.1% NOI (inc. SLR) $812.2 $808.9 0.4% $824.
Slide 14: FIBRA Macquarie's industrial presence
FIBRA Macquarie’s industrial presence Use of space Lease expiration profile (% of annualized base rent) Other 1% (% of annualized base rent) 29.7% Distribution 28% 19.9% 15.8% 11.5% 8.5% 8.6% 5.9% Manufacturing 71% In regularization 2Q24-4Q24 2025 2026 2027 2028 2029+ Presence in key industries Pres
Slide 15: Industrial leasing summary and regional overview
Industrial leasing summary and regional overview 1Q24 Industrial leasing highlights Industrial leasing activity3 Country of (Sqft in thousands) New Leases Renewals Leased Expansions/Development Transaction Market GLA (sqft) Industry Term domicile New Lease Saltillo 115,530 Automotive South Korea 5 y
Slide 16: Retail Portfolio
FIBRA Macquarie MACQUARIE México O03 Retail Portfolio
Slide 17: Retail portfolio: Operating highlights
Retail portfolio: Operating highlights Financial and operational metrics Var (%) 1Q24 Var (%) 1Q24 Ps. millions; except operating stats11 1Q24 4Q23 vs 4Q23 1Q23 vs 1Q23 Selected financial metrics Revenues $198.9 $195.3 1.8% $179.2 11.0% Lease Rental Income2 $156.1 $152.3 2.5% $138.7 12.6% Lease Vari
Slide 18: FIBRA Macquarie's retail presence
FIBRA Macquarie’s retail presence Retail portfolio highlights Lease expiration profile • Defensive portfolio primarily located in the top retail market of Mexico City (% of annualized base rent2) Metropolitan Area (MCMA) Anchor Total 30.0% 25.2% • All leases are inflation protected and provide for r
Slide 19: Retail leasing and regional overview
Retail leasing and regional overview 1Q24 Retail leasing highlights Retail leasing activity3 (sqm in thousands) Transaction Shopping Center GLA (sqm) Sector Customer New Lease Power Center Coacalco 3,500 Gym Fitsi New Leases Renewals Leased Expansions/Development Renewal City Shops Valle Dorado 7,75
Slide 20: 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 21: Selected Financial Statements
5 04 Selected Financial Statements 21
Slide 22: Detailed IFRS Consolidated Income Statement by Segment
Detailed IFRS Consolidated Income Statement by Segment Mar 31, 2024 Mar 31, 2023 Wholly-owned JV Proportionally Proportionally Ps. millions unless otherwise stated FIBRA Industrial Retail Consolidated Retail Industrial2 Combined Combined Lease related income - 833.2 105.3 938.4 51.8 18.6 1,008.8 1,0
Slide 23: Detailed IFRS Consolidated Income Statement by Segment (cont'd)
Statement by Segment (cont’d) Detailed IFRS Consolidated Income Mar 31, 2024 Mar 31, 2023 Wholly-owned JV Proportionally Proportionally Ps. millions unless otherwise stated FIBRA Industrial Retail Consolidated Retail Industrial1 Combined Combined Management fees (60.1) - - (60.1) - - (60.1) (47.9) T
Slide 24: IFRS net profit to NOI Adjustments by Segment
IFRS net profit to NOI1 Adjustments by Segment Mar 31, 2024 Mar 31, 2023 Wholly-owned JV Proportionally Proportionally Ps. millions unless otherwise stated FIBRA Industrial Retail Consolidated Retail Industrial3 Combined Combined Profit/(loss) for the period per Interim Financial Statements 193.0 49
Slide 25: Adjustments by Segment FFO and AFFO
Adjustments by Segment FFO1 and AFFO2 Mar 31, 2024 Mar 31, 2023 Wholly-owned JV Proportionally Proportionally Ps. millions unless otherwise stated FIBRA Industrial Retail Consolidated Retail Industrial8 Combined Combined7 Net Operating Income 0.0 794.6 94.4 889.0 46.3 17.6 952.9 950.4 Management fee
Slide 26: Reconciliations of profit/(loss) to FFO and AMEFIBRA FFO
Reconciliations of profit/(loss) per interim financial statements to FFO and AMEFIBRA FFO Mar 31, 2024 Mar 31, 2023 Wholly-owned JV Proportionally Proportionally Ps. millions unless otherwise stated FIBRA Industrial Retail Consolidated Retail Industrial2 Combined Combined Profit/(Loss) for the perio
Slide 27: Net Assets by Segment
Net Assets by Segment Mar 31, 2024 Mar 31, 2023 Wholly-owned JV Proportionally Proportionally Ps. millions unless otherwise stated FIBRA Industrial Retail Consolidated Retail Industrial Combined Combined Current assets Cash and cash equivalents 374.2 99.9 23.2 497.4 17.8 20.7 535.8 422.7 Trade recei
Slide 28: Net Assets by Segment (cont'd)
Net Assets by Segment (cont’d) Mar 31, 2024 Mar 31, 2023 Wholly-owned JV Proportionally Proportionally Ps. millions unless otherwise stated FIBRA Industrial Retail Consolidated Retail Industrial Combined Combined Non-current liabilities Trade and other payables - - 0.2 0.2 - - 0.2 44.4 Tenant deposi
Slide 29: 1Q24 Key Financial Metrics by Segment
1Q24 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 0.0 894.5 131.1 1,025.6 67.7 18.9 1,112.2 0.0 52.
Slide 30: Debt Profile
MACQUARIE México O05 Debt Profile FIBRA Macquarie
Slide 31: Debt overview
Debt overview Overview Key debt ratios2 Total and net debt Real estate gross5, net Interest coverage4 ● CNBV Regulatory LTV of 30.5% and Regulatory Debt Service Coverage Ratio of 5.6x to EBITDA3 and regulatory LTV 3.9x 5.2x 5.2x ● Real Estate net LTV of 32.6% and weighted average cost of debt of 5.7
Slide 32: Debt Disclosure
Debt Disclosure Outstanding loans as at March 31, 2024 Debt associated with wholly-owned properties ESG Balance Balance Interest type Interest Security Commencement Maturity Lenders Ccy Amortization2 component US$ m1 Ps. m1 (Fixed/ Variable) rate p.a. type date date Various Insurance Companies throu
Slide 33: CNBV Regulatory Ratios
CNBV Regulatory Ratios 1Q24 Leverage ratio Ps.’000 1 Bank debt 16,372,460 Bonds - Total assets 53,603,824 16,372,058 Leverage ratio = = 30.5% 53,603,824 2 Ps.’000 Debt service coverage ratio ( ICD t ) 4 t=0 ∑ t=1 AL 0 Liquid assets 518,013 - IVA t Value added tax receivable - - UO t Net operating in
Slide 34: AFFO Calculation Methodology
7 06 AFFO Calculation Methodology 34
Slide 35: 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 36: AFFO calculation methodology (cont'd)
AFFO calculation methodology (cont’d) Quarterly cash deployment vs normalized methodology 1Q24 1Q23 Actual cash deployment for the three months ended Ps. m Ps. m Var (%) Financing costs (0.0) (8.6) (99.9%) Maintenance capital expenditures (41.4) (49.7) (16.7%) Tenant improvements (28.8) (46.5) (38.1
Slide 37: Appendix
FIBRA Macquarie MACQUARIE México O07 Appendix
Slide 38: Rental Rate Bridges Year-on-Year
Rental Rate Bridges Year-on-Year Industrial rental rate bridge from 1Q23 to 1Q24 (US$/sqm/m) +0.05 -0.02 5.97 +0.10 +0.07 +0.13 +0.00 +0.00 1.0% -0.3% +6.1% 1.3% 5.63 0.0% 0.1% 1.8% 2.3% 1Q23 Contract Increases New Leases Contractual Extensions Negotiated Renewals Growth Capex FX Moveouts 1Q24 Retai
Slide 39: 1Q24 Quarterly AFFO per Certificate Bridges
1Q24 Quarterly AFFO per Certificate Bridges AFFO per certificate in Ps. 4Q23 to 1Q24 (Ps. /CBFI) 0.6363 0.0354 0.0028 0.0073 0.0142 0.0249 0.0060 0.6368 0.4% 5.6% 1.1% -2.2% -3.9% +0.1% -0.9% 4Q23 AFFO Increased Same Store Decrease Normalized Decreased Same Store Net Increased Interest FX Impact CBF
Slide 40: Consolidated Portfolio: Same Store Metrics
Consolidated Portfolio: Same Store Metrics1 Financial Metrics (Ps. m) 1Q24 1Q23 Var (%) 3 Months ended Mar 31, 2024 3 Months ended Mar 31, 2023 (PCP) Var (%) Revenues (Ps. m; inc. SLR) Ps. 1,087.1m Ps. 1,082.1m 0.5% Ps. 1,087.1m Ps. 1,082.1m 0.5% Net Operating Income (Inc. SLR) Ps. 933.0m Ps. 942.9m
Slide 41: Industrial Portfolio: Same Store Metrics
Industrial Portfolio: Same Store Metrics1 Financial Metrics (Ps. m) 1Q24 1Q23 Var (%) 3 Months ended Mar 31, 2024 3 Months ended Mar 31, 2023 (PCP) Var (%) Revenues (Ps. m; inc. SLR) Ps. 888.2m Ps. 902.9m (1.6%) Ps. 888.2m Ps. 902.9m (1.6%) Net Operating Income (Ps. m; inc. SLR) Ps. 792.3m Ps. 816.9
Slide 42: Retail Portfolio: Same Store Metrics
Retail Portfolio: Same Store Metrics1 Financial Metrics (Ps. m) 3 Months ended 3 Months ended 1Q24 1Q23 Var (%) Mar 31, 2024 Mar 31, 2023 (PCP) Var (%) Revenues (Ps. m; inc. SLR) Ps. 198.9m Ps. 179.2m 11.0% Ps. 198.9m Ps. 179.2m 11.0% Net Operating Income (Ps. m; inc. SLR) Ps. 140.6m Ps. 126.0m 11.6
Slide 43: 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 44: Portfolio Distribution by Market
Portfolio Distribution by Market 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% 5.83 Ciudad Juárez 35 38 100.0% 4,613.4 428.6 14.9% 5.68
Slide 45: Definitions
Definitions • Adjusted funds from operations (AFFO)1 is equal to FFO less 1) straight-line rent, normalized maintenance capex, normalized above-standard tenant improvements, normalized extraordinary capex, normalized tenant improvement and normalized third-party leasing commissions, all based upon t
Slide 46: 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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