Fibra Shop Portafolios Inmobiliarios S.a.p.i. De C.v. · BIVA:FSHOP/13
Fibra Shop Portafolios Inmobiliarios S.a.p.i. De C.v — FibraShop — Non-Deal Roadshow (March 2019)
49 slides from Fibra Shop Portafolios Inmobiliarios S.a.p.i. De C.v's roadshow presentation, March 2019
Slide 1: Corporate presentation March 2019
Corporate presentation www.fibrashop.mx March 20191
Slide 2: Content
Content Who is FibraShop? Financial evolution Growth strategy Consumption behavior and demographics Shopping center industry and e-commerce www.fibrashop.mx 2
Slide 3: Who is FibraShop?
Who is FibraShop ? FibraShop is the only Fibra in Mexico focused on shopping centers. 18 shopping centers, and 1 more under construction, divided among three classifications: Fashion Mall, Power Center and Community Center. Sentura Tlalnepantla is a co-investment and opened on October 2018. We own G
Slide 4: Our footprint
Our footprint Fashion Mall Properties Location Plaza Cibeles Irapuato La Luciérnaga San Miguel de Allende Puerto Paraíso Cabo San Lucas Kukulcán Plaza Cancún Galerías Mall Sonora Hermosillo Las Misiones Juárez Puerta La Victoria Querérato La Perla * Guadalajara Power Center Properties Location Puert
Slide 5: Total portfolio weighted average occupancy rate
Total portfolio weighted average occupancy rate: 95.81%* % of occupancy Shopping center 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 Plaza Cibeles 99 99 99 99 99 La Luciérnaga 99 99 99 99 100 Puerto Paraíso 97 97 96 95 95 Kukulcan Plaza 82 82 83 84 85 UC Condesa 100 100 100 100 100 UC Jurica 92 92 94 99
Slide 6: Lease agreements main characteristics
Lease agreements main characteristics Number of contracts per tenant type Average original contract term by type of tenant Shopping center Anchor Sub Anchor Pad Tenant Other** Total* Type of tenant Average years Plaza Cibeles 4 5 1 151 79 240 Anchor 15 - 20 La Luciérnaga 1 3 4 59 21 88 Sub-Anchor 7
Slide 7: Well diversified tenant base
Well diversified tenant base www.fibrashop.mx 7
Slide 8: High quality assets
High quality assets The high quality of the properties is confirmed by the independent valuations year by year, we have contracted independent professionals with extensive experience for performing this valuations. Appraisal Value Appraisal Value Change in Shopping center % 2017 2018 appraisal Plaza
Slide 9: High quality assets
High quality assets The high quality of the properties is confirmed by the independent valuations year by year, we have contracted independent professionals with extensive experience for performing this valuations. Variation between Shopping center 2013 2014 2015 2016 2017 2018 cost acquisition and
Slide 10: Our core business: shopping center operation
Our core business: shopping center operation FibraShop’s business model is focused on the administration and operation of shopping centers that are part of our portfolio, we are not an asset manager. We are continuously seeking to optimize our properties to have shopping centers that better meet the
Slide 11: Content
Content Who is FibraShop? Financial evolution Growth strategy Consumption behavior and demographics Shopping center industry www.fibrashop.mx 11
Slide 12: Solid growth
Solid growth Between 4Q 2017* and 4Q 2018, EBITDA rose from Ps. 226.2 million to Ps. 264.14 million, representing an increase in our EBITDA margin of close to 17% Revenue EBITDA +14,71% +16.74% Margen NOI & NOI EBITDA +12.87% * First full quarter of operations www.fibrashop.mx 12
Slide 13: Quarterly growth
Quarterly growth Type of tenant 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018* Anchor 58,877 63,019 65,106 66,025 65,228 Sub-Anchor 53,241 50,675 50,157 51,097 56,919 Stores 195,598 204,004 206,539 215,117 224,703 Parking 16,322% 15,446% 18,449 19,997 24,585 Total 324,037 333,145 340,252 352,235 371,435 *
Slide 14: Quarterly growth
Quarterly growth The following table shows the variations observed between 3Q2018 and 4Q2018 3Q 2018 4Q 2018 Variation Revenues 350.86 371.71 5.95% Operating expenses 96.78 107.62 11.2% Operating income 254.08 264.1 3.95% Net income (excluding revaluation) 131.36 124.69 -5.07% Net income per CBFI (e
Slide 15: Net income per CBFI
Net income per CBFI The solid results of FibraShop have allowed us to return attractive distributions to our CBFI holders, which is reflected in a competitive dividend yield from quarter to quarter. Net income per CBFI Annual Rate* 24.80 134% 799 bp * Average price in the period www.fibrashop.mx 15
Slide 16: Net income from quarterly operation per CBFI
Net income from quarterly operation per CBFI(cents) These numbers do not reflect the current expansion investment in the portfolio (Kukulcan Plaza), as well as new co-investment projects ( La Perla) and the maturation of Puerta La Victoria, Sentura and the expansion of Galerias Mall Sonora. Quarterl
Slide 17: Recovered profit levels despite higher financial cost
Despite the increase in the financial cost, we have recovered the profits levels Historical Net Profit and financial cost 180.00 10.00% 160.00 9.00% 140.00 8.00% 120.00 7.00% 100.00 6.00% 80.00 5.00% 60.00 4.00% 40.00 3.00% 20.00 2.00% 0.00 3 3 4 4 4 4 5 5 5 5 6 6 6 6 7 7 7 7 7 8 8 8 8 1.00% 01 01 0
Slide 18: Solid sources of funding
Solid sources of funding •Total offer in Mexico: 4,209.8 MNP 5,466 MNP •Total offer abroad: 1,256.5 MNP July IPO 2013 •TIIE + 125 to 200 bp margin July 2014 Bridge 3,200 MNP •2,200 MNP were tapped •Payment made in June 2015 Plan •112,650,311 certificates March 2015 Subscription 1,996 MNP • Used for
Slide 19: Solid credit profile
Solid credit profile FibraShop has a solid credit profile, as seeing in the credit ratings assigned by the rating agencies of AA+ by HR Ratings and AA by Fitch Ratings. Current Liabilities www.fibrashop.mx 19
Slide 20: Hedging strategy
Hedging strategy FibraShop currently has three issues of bonds in the markets and a revolving credit line with the following characteristics: Revolving Credit FSHOP 15 FSHOP 17 FSHOP 17-2 Line Type Bond Bond Bond Credit line Term 5 years 5 years 10 years 3 years Expiration Jun-2020 Jun-2023 Jun-2027
Slide 21: Hedging strategy
Hedging strategy The FSHOP 15 bond is fully covered for an amount of 3,000 mdp, they are TIIE swaps vs. fixed rate, without guarantees or margin calls, with mirror flows of the FSHOP 15 coupons. Swap rate plus Notional Covered Bond Swap rate spread (90 PB) (mdp) FSHOP 15 7.46% 8.36% 1,000 FSHOP 15 7
Slide 22: Distribution of debt at a fixed and variable rate
Distribution of debt at a fixed and variable rate FibraShop has 58% of the total debt arranged. Fixed rate (58%) Amount (mdp) Rate FSHOP 15 Swap rate 3,000 8.53%* FSHOP 17-2 M Bono 1,600 9.13% Total 4,600 8.74%* Variable rate (42%) Amount (mdp) Rate FSHOP 17 TIIE + 125 PB 1,400 9.84% Credit line TII
Slide 23: Content
Content Who is FibraShop? Financial evolution Growth strategy Consumption behavior and demographics Shopping center industry www.fibrashop.mx 23
Slide 24: Growth strategy
Growth strategy’s FibraShop growth strategy is divided in two: Organic growth Inorganic growth Expansions of our Incorporation of our Acquisition of shopping Development of shopping shopping centers shopping centers. centers. centers 8 expansions, one of them Entry of internationally renowned 10 Sho
Slide 25: Recent Acquisitions – La Perla
Recent Acquisitions – La Perla Distrito la Perla is a multiple use complex of approximately 100,000 sqm located in Guadalajara, Jalisco, and the estimated delivery date will be the first quarter of 2020. It is the second co-investment of FibraShop. FibraShop Investment: 1,374.15 millions of pesos fo
Slide 26: Recent Acquisitions – Sentura
Recent Acquisitions – Sentura Sentura Tlalnepantla is a multiple use complex of 31,577 sqm, located in the North of Mexico City, opened on October 2018. It was the first co-investment, FibraShop acquired 35% of fiduciary rights for an investment of 407 millions of pesos. The estimated NOI during the
Slide 27: Recent Acquisitions – Puerta La Victoria
Recent Acquisitions – Puerta La Victoria Puerta la Victoria is a multiple use complex of 57,240 sqm, located in Santiago de Querétaro, and opened on October 2017. FibraShop invested 2,762 millions of pesos, 75% was payable in cash, and the remaining 25% with CBFIs at price of 17.10 per CBFI. The exp
Slide 28: Recent Event – Sale of Urban Center Condesa
Recent Event– Sale of Urban Center Condesa On January 10, 2019, FibraShop closed the sale of Urban Center Condesa. Located in Mexico City, Urban Center Condesa has a 100% occupancy rate. The sale price amounted to approximately 5% above the book value and 23% above the initial contribution price. Th
Slide 29: New Distribution policy
New Distribution policy On February 14, the Technical Committee of FibraShop approved to create an additional reserve of CAPEX. This reserve, for the year 2019, will be around Ps. 55 million, which will be subtracted from the profit of the period during the four quarters, reducing in the same propor
Slide 30: Content
Content Who is FibraShop? Financial evolution Growth strategy Consumption behavior and demographics Shopping center industry www.fibrashop.mx 30
Slide 31: Solid internal consumption in Mexico
Solid internal consumption in Mexico Annual Internal Market Private Consumption Indicator 7.0% 5.4% 5.5% 5.3% 4.7% 4.9% 3.5% 3.0% 2.8% 3.2% 3.2% 2.4% 1.8% 2.1% 2.0% 1.8% 0.0% -1.8% -3.5% -5.3% -6.1% -7.0% 2006 2008 2010 2012 2014 2016 2018 % SS TS Monthly Internal Market Consumption Annual total cre
Slide 32: GDP for the fourth quarter of 2018
GDP for the fourth quarter of 2018 (Percentage change in real terms compared to the same period last year) 2017 2018 Concept I II III IV I II III IV Total GDP at Market prices 3.2 3.1 1.6 1.5 2.1 1.5 2.5 1.7 4.3 6.3 2.9 2.0 3.7 1.1 3.1 3.4 Primary Activities Agriculture, animal breeding and 4.8 2.8
Slide 33: Solid internal consumption in Mexico
Solid internal consumption in Mexico GDP for the forth quarter of 2018 (Percentage change in real terms compared to the same period last year) Source: INEGI www.fibrashop.mx 33
Slide 34: Population
Largest cities in Mexico 20 most populated entities 2,000 1,815.8 1,656.1 1,559.7 1,539.8 1,495.2 1,500 1,436.5 1,332.1 1,243.8 1,185.8 Population 1,135.6 1,110.6 1,000 936.8 858.6 833.8 830.7 819.6 819.5 801.9 797.0 790.0 500 0 a s na la ra León ez pan o y l icali cán árez a a a étaro s árez óyot t
Slide 35: Income distribution
Income distribution Cities with Income Cities with over Cities with over 50K-400K MAMC Guadalajara Monterrey Average level 400K habitants 400K habitants* habitants A/B 6.30% 6.80% 7.10% 5.50% 10.50% 7.90% 7.37% C+ 13.40% 14.30% 14.50% 12.70% 17.20% 16.80% 14.82% C 18.20% 16.90% 17.10% 15.60% 19.40%
Slide 36: Content
Content Who is FibraShop? Financial evolution Growth strategy Consumption behavior and demographics Shopping center industry and e-commerce www.fibrashop.mx 36
Slide 37: Shopping centers in Mexico
Shopping centers in Mexico Total inventory: 23,172,050 m2 and 1,869,994 m2 in construction The year 2018 closed with a total of 46 shopping centers under construction, from which 14 are located in the Mexico City Metropolitan Area and 8 in Nuevo Leon. Community/Neighborhood Center LifeStyle/Entertai
Slide 38: Global square feet prices
Global square feet prices MOST EXPENSIVE LOCATIONS BY COUNTRY RENT Q2 2016 RENT Q2 2016 RANK RANK Country City Location US$/SQ M/ EURO/SQ M/ OUTLOOK 2016 2015 YEAR YEAR 1 1 USA New York Upper 5th Avenue (49th-60th Sts) 32,292 29,066 2 2 Hong Kong Hong Kong Causeway Bay 30,979 27,884 3 3 France Paris
Slide 39: Square meter pricing in main commercial corridors of Latin America
Square meter pricing in the main commercial corridors of Latin America END 2017 RENT RENT RENT RENT ANNUA TREND COUNTR LOCAL US$/SQ EURO/SQ CONTINENT CITY LOCATION JUNE JUNE L (COMPAR Y MEASURE M/YR M/YR 15 16 RG ED JUNE 16 JUNE 16 TO 2016) NORTH AMERICA USD/ sq m/ North America Mexico Mexico City M
Slide 40: Key markets for retailers
Key markets for retailers Leading retailers by city Leading retailers by country City Rankings % of % of % of Rank retailers retailers Rank Rank % of retailers retailers Rank Country Country City 2017 present in present 2016 2017 present in 2017 present in 2016 2016 2017 in 2016 United Arab United A
Slide 41: E-commerce in U.S.
E-commerce in U.S. More than 90% of retail sales still occur in physical stores. Today e-commerce accounts for less than 9% of total retail. In fact, more than 50% of e-commerce retail last year were by brinck-and-mortar brands. Pure play e-retailers accounted for less than 4% of total retail sales.
Slide 42: E-commerce in Mexico
E-commerce in Mexico Internet users in Mexico Electronic transactions in Mexico (2018) by users Population which have 40.4 Millions of people made transactions on do not use internet internet 20.4 % 36.1 % Main internet activities: Get Information Entertaiment Communication Audio Visual Content Soci
Slide 43: E-commerce in Mexico
E-commerce in Mexico According to ISDI (Instituto Superior para el Desarrollo de Internet) the growth in e- commerce sales in Mexico will reach 2.6% of total retail sales in 2019. While in Brazil it could reach 4.6%, almost double. The Mexico´s e-commerce ecosystem is represented by the following se
Slide 44: E-commerce in Mexico
E-commerce in Mexico According to INEGI (Instituto Nacional de Estadística y Geografía), the upwards trend for people going to physical stores relies on the lack of credibility for the e-commerce models. The following tendencies are the main concerns of e-commerce users in Mexico. Source: INEGI, END
Slide 45: Challenges for e-commerce in Mexico
Challenges for e-commerce in Mexico Delivery infrastructure and cost 72% of the e-commerce clients do not receive on time their orders and the cost is still high compare with others countries Bank on Line 82% of Mexican society does not have a credit card and 61% does not have bank account Internet
Slide 46: E-commerce in Mexico
E-commerce in Mexico Mexican spending is still low: about 819 dollars per year per person, while in Brazil it is 900 dollars and in the United States it is 1,700 dollars. Therefore, in recent years, efforts have been made by the retail sector to promote Sales through discounts and promotions. Of the
Slide 47: E-commerce in Mexico
E-commerce in Mexico Consumer habits in Mexico reflect that people prefer to shop in the physical store, a significant percentage of consumers search online but materialize their purchases in stores. Some of the main operators such as Walmart and Liverpool have implemented omnichannel strategies, wh
Slide 48: Contacts
Contacts Salvador Cayón Ceballos, CEO scayon@fibrashop.mx Gabriel Ramírez Fernández, CFO gramirez@fibrashop.mx Irvin García Millán, Controller investor@fibrashop.mx Tel. (5255) 5292 1160 www.fibrashop.mx 48
Slide 49: Disclaimer
Disclaimer About FibraSHop FibraShop (BMV: FSHOP13), is the only real estate option in Mexico offering a specialization in the shopping malls segment that has a long-track experienced management in the commercial sector, a solid operating and corporate governance structure, which guarantees transpar