Agrofibra · BMV:AGRO/22
Agrofibra — IPO Roadshow (December 2022)
75 slides from Agrofibra's IPO roadshow presentation, December 2022
Slide 1: Initial Public Offering of CBFIs Roadshow Presentation
AGROFIBRA Initial Public Offering of CBFIs Roadshow Presentation December 2022
Slide 2: Disclaimer
Disclaimer The following presentation (this “presentation”) contains general information, as of the date hereof, regarding Trust 4755 (“AgroFIBRA”) formed pursuant to the trust agreement (contrato de fideicomiso) between Banco Actinver, S.A., Institución de Banca Múltiple, Grupo Financiero Actinver,
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d) This presentation is strictly confidential and is provided for informational purposes only. It is information in summary form and does not purport to be complete. Any opinion expressed herein is subject to change without notice. This presentation does not give, and should not be
Slide 4: Presenters
Presenters Jorge Guajardo Hesles | Executive President • +26 years of experience in the real estate sector • President of EBI 4.0, the most relevant annual agrifood and innovative event of the Bajío region • Previous experience: San Felipe Torres Mochas Industrial Park, Jaral de Berrio Agropark, San
Slide 5: Offering terms and conditions
Offering terms and conditions Issuer • Fideicomiso irrevocable número 4755 (Irrevocable Trust Number 4755) denominated Agrofibra Ticker • AGRO 22 Type of offering • Global offering (local + 4a(2) international) • Ps$5,250mm excluding over-allotment option Offer size • Ps$6,037mm including over-allot
Slide 6: Introduction to Agrofibra
Introduction to Agrofibra Agrofibra will be the first REIT focused on the attractive real estate related to the Agrifood sector in Mexico Solid investment strategy • Top-tier tenants; vertically-integrated, with highly technified facilities and export-oriented with established distribution channels
Slide 7: AGROFIBRA structure
AGROFIBRA structure Public Investors Holders of CBFIs Asset Contributors1 100% internalized Audit Committee (3 members) 3 - Manager Practices Committee Investments and (3 members) 3 - -Strategy of the portfolio Risk Committee -Investment guidelines (7 members) -Risk management Technical Nominations
Slide 8: Initial portfolio
Initial portfolio AGROFIBRA Lease Estimated | Estimatedannual | investment activity | tength [LESSC¥SPCYL sain products iv investment income breakdown: || %of total rent (years) a (Ps$mm) (Us$mm) CBFIs/ Cash Initial portfolio: Month 1 3,080,015 $2,205.8 $10.0 415% | 58.5% 29.1% Once Mores Agricultur
Slide 9: Investment highlights
CUSTOM LAYOUT Investment highlights Unsaved Document / 1/22/2021 / 19:57
Slide 10: Investment highlights
Investment highlights 1 First FIBRA with a focus in the real estate related to the agrifood sector in Mexico 2 Diversified initial portfolio by geography, sector and products 3 Portfolio of high-tech assets with recognized and vertically integrated tenants 4 Best-in-class corporate governance struct
Slide 11: First FIBRA with a focus in the real estate related to the agrifood sector in Mexico
1 First FIBRA with a focus in the real estate related to the agrifood sector in Mexico Different FIBRAs in Mexico, but none focused in in the real Investment thesis estate related to the agrifood sector in Mexico (number of FIBRAs, excluding FIBRA-E) Agrofibra will invest in high-tech real estate op
Slide 12: First FIBRA with a focus in agrifood real estate in Mexico (cont'd)
1 First FIBRA with a focus in the real estate related to the agrifood sector in Mexico (cont’d) Market opportunity in the real estate related … and the possibility to acquire properties at … with limited competition… to the agrifood sector high cap rates • Mexico has a large extension of arable • Ag
Slide 13: Diversified initial portfolio by geography, sector and products
2 Diversified initial portfolio by geography, sector and products Agriculture Livestock Aquaculture • Properties where the tenants dedicate their • Properties where the tenants dedicate their • Properties where the tenants dedicate their activities to the sowing and harvesting of high- activities to
Slide 14: Diversified initial portfolio by geography, sector and products (cont'd)
Diversified initial portfolio by geography, sector and products 2 (cont’d) Geographic diversification Diversification by tenant (% estimated rent) (% estimated rent) Sonora 2.9% 3.1% 1.7% Agroparque Yecapixtla San Luis Potosí Cimarrón 23.9% 5.0% Guanajuato 5.4% 22.6% Impactum 20.0% Bonanza 5.7% Quer
Slide 15: Portfolio of high-tech assets with recognized and vertically integrated tenants
3 Portfolio of high-tech assets with recognized and vertically integrated tenants The FIBRA will have assets and tenants that meet the following characteristics: Modern facilities that ensure consistency in the production of tenants’ businesses to meet the volumes and quality requirements of its c
Slide 16: Best-in-class corporate governance structure with a fully internalized management structure
4 Best-in-class corporate governance structure with a fully internalized management structure that aligns interests Corporate governance with the best market practices Top-tier mechanisms to prevent conflicts of interest Technical Committee with the following characteristics: Initial portfolio made
Slide 17: Corporate governance and interest alignment (cont'd)
4 Best-in-class corporate governance structure with a fully internalized management structure that aligns interests (cont’d) Interest alignment between the Managers and Public Investors New structure improves alignment of interests between the Managers and Public Investors • The right of the Founder
Slide 18: Distinguished management team with extensive experience in the agricultural, real estate and financial sectors
Distinguished management team with extensive experience in 5 the agricultural, real estate and financial sectors +26 Executive President Jorge Guajardo Hesles +29 +23 Vicepresident of Vicepresident of Development Administration and Finance Claudio García Salgó David Suárez Cortazar +13 +40 +30 Admin
Slide 19: Growth strategy and exponential value creation from a well-defined and robust pipeline
Growth strategy and exponential value creation from a well- 6 defined and robust pipeline • IPO proceeds for the acquisition of • 41 assets identified, including 20 from initial and initial • The FIBRA will obtain leverage after initial portfolio and identified pipeline subsequent portfolio and 21 f
Slide 20: Growth strategy and pipeline (cont'd)
Growth strategy and exponential value creation from a well- 6 defined and robust pipeline (cont’d) Identified pipeline Geographic breakdown Breakdown by tenant 21 properties with 100% (% estimated acquisition value) (% estimated acquisition value) occupancy 1.8%1.6%1.3% Guanajuato 3.3% Tenant 1 Sa
Slide 21: Processes
CUSTOM LAYOUT Processes
Slide 22: Seven-stage investment process
Seven-stage investment process Agrofibra will approach companies that adopt ESG Principles both in their production processes, as well as in their operation and strategy. Agrofibra will consider the ESG principles during different stages of the investment process Asset management Market analysis Non
Slide 23: Detailed process for tenants and asset selection
Detailed process for tenants and asset selection The Manager performs an in-depth analysis of the tenants in which the operational, financial and legal viability are assessed Technical analysis Financial analysis Legal analysis Tenant's operation evaluation and diligence Review of the financial perf
Slide 24: FIBRAs benchmark
CUSTOM LAYOUT FIBRAs benchmark
Slide 25: National and international agrifood REIT comparison
National and international agrifood REIT comparison National FIBRAS benchmark (%) 99.1% 94.1% 93.9% 94.4% 91.9% 90.6% 90.8% 87.3% 87.0% 84.5% 85.3% 81.5% 83.6% 81.1% 76.4% 75.6% 1 FIBRA 1 FIBRA 2 FIBRA 3 FIBRA 4 FIBRA 5 FIBRA 6 Average NOI margin EBITDA margin International REIT comparison (%) 99.1%
Slide 26: Expenses comparison of national REITs (FIBRAS)
Expenses comparison of national REITs (FIBRAS) “NNN” contracts 1 FIBRAs (% of avg. '20–'21 revenues) FIBRA 1 FIBRA 2 FIBRA 3 FIBRA 4 FIBRA 5 FIBRA 6 average Total assets 2021 (US$mm) $509 $15,606 $3,558 $2,683 $2,760 $2,509 $927 $4,674 Property Management 0.9% – 2.9% 1.9% – 1.9% 0.8% 1.3% Maintenanc
Slide 27: Expenses comparison of international agrifood REITS
Expenses comparison of international agrifood REITS “NNN” contracts 1 REITS REIT 1 REIT 2 REIT 3 REIT 4 average (% of avg. '20–'21 revenues) Total assets 2021 (US$mm) $509 $1,122 $1,352 $811 $268 $888 Property Management 0.9% – 8.0% 14.5% – 5.6% Maintenance and Operating Expenses – 14.3% 3.3% 3.4% –
Slide 28: ESG Strategy
ESG Strategy The starting point of our strategy will be a materiality assessment performed by an independent consultant during the first year of Agrofibra’s operations to determine the action plan to comply with key objectives in environment, social responsibility and corporate governance Define ESG
Slide 29: Appendix: Initial portfolio
CUSTOM LAYOUT Appendix Initial portfolio Unsaved Document / 1/22/2021 / 19:57
Slide 30: Initial portfolio and initial subsequent portfolio
Initial portfolio and initial subsequent portfolio • Started operations in 2014 • Their main objective is the production and commercialization of vegetables from high-tech greenhouses with climate control capabilities Products • Specialty tomatoes • Bell peppers Sales • Almost all the product is exp
Slide 31: Tenant Agroparque Yecapixtla I
Initial portfolio and initial subsequent portfolio (cont’d) I Tenant Agroparque Yecapixtla “El Potrero de los Novillos”, Yecapixtla, Location Morelos Type of activity Agriculture Productive area (m2) 424,082 GLA (m2) 682,934 Estimated investment Ps$ 806,494,229 Contract length 15 years Rent denomina
Slide 32: Tenant Agroparque Yecapixtla II
Initial portfolio and initial subsequent portfolio (cont’d) II Tenant Agroparque Yecapixtla “El Potrero de los Novillos”, Yecapixtla, Location Morelos Type of activity Agriculture Productive area (m2) 205,846 GLA (m2) 305,936 Estimated investment US$ 19,592,778 Contract length 10 years Rent denomina
Slide 33: Extension
Initial portfolio and initial subsequent portfolio (cont’d) Extension II Tenant Agroparque Yecapixtla “El Potrero de los Novillos”, Yecapixtla, • As part of the Initial Subsequent Portfolio, Location Agrofibra will acquire an extension in Agroparque Morelos Yecapixtla II Type of activity Agriculture
Slide 34: Initial portfolio and initial subsequent portfolio (cont'd)
Initial portfolio and initial subsequent portfolio (cont’d) • Hortícola Cimarrón began operations in 2007 • Dedicated to the production of vegetables to the foreign market from high-tech greenhouses Products • Tomato and bell pepper Sales • Most of the product is destinated to be exported through th
Slide 35: Tenant Hortícola Cimarrón I
Initial portfolio and initial subsequent portfolio (cont’d) I Tenant Hortícola Cimarrón “Rancho San José”, Villa Artista, San Location Luis Type of activity Agriculture Productive area (m2) 529,100 GLA (m2) 1,000,000 Estimated investment Ps $357,598,506 Contract length 15 years Rent denomination USD
Slide 36: Extension: Hortícola Cimarrón I
Initial portfolio and initial subsequent portfolio (cont’d) Extension I Tenant Hortícola Cimarrón “Rancho San José”, Villa Artista, San • As part of the initial subsequent portfolio, Location Agrofibra Will acquire an extension in Hortícola Luis Cimarrón I Type of activity Agriculture • It is expect
Slide 37: Tenant Hortícola Cimarrón II
Initial portfolio and initial subsequent portfolio (cont’d) II Tenant Hortícola Cimarrón “Rancho San José”, Villa Artista, San Location Luis Type of activity Agriculture Productive area (m2) 110,520 GLA (m2) 601,310 Estimated investment Ps $162,345,178 Contract length 15 years Rent denomination USD
Slide 38: Extension
Initial portfolio and initial subsequent portfolio (cont’d) Extension II Tenant Hortícola Cimarrón “Rancho San José”, Villa Artista, San • As part of the Initial Subsequent Portfolio, Location Agrofibra will acquire an extension in Hortícola Luis Cimarrón II Type of activity Agriculture • It is expe
Slide 39: Initial portfolio and initial subsequent portfolio (cont'd)
Initial portfolio and initial subsequent portfolio (cont’d) • Argaman started operation in 2006 as a pioneer in the production of vegetables in the Cienega region in Jalisco • The main objective is the production and commercialization of quality vegetables from high tech greenhouses Products • Tomat
Slide 40: Tenant Hortalizas Argaman
Initial portfolio and initial subsequent portfolio (cont’d) Tenant Hortalizas Argaman Location Poncitlán, Jalisco Type of activity Agriculture Productive area (m2) 240,000 GLA (m2) 351,679 Estimated investment Ps $339,162,590 Contract length 15 years Rent denomination USD Estimated annual rent US$ 1
Slide 41: Initial portfolio and initial subsequent portfolio (cont'd)
Initial portfolio and initial subsequent portfolio (cont’d) • BeFrost started operations at the end of 2017 as a freezing plant • Dedicated to the industrialization and commercialization of frozen fruit pulp for the food industry Products • Avocado • Mango Sales • All of the production is exported m
Slide 42: Tenant Congelados BeFrost
Initial portfolio and initial subsequent portfolio (cont’d) Tenant Congelados BeFrost Ex Haciendo Gogorrón, Villa Reyes, San Location Luis Potosí Type of activity Agriculture Productive area (m2) 3,025 GLA (m2) 30,000 Estimated investment Ps $121,459,978 Contract length 10 years Rent denomination US
Slide 43: Initial portfolio and initial subsequent portfolio (cont'd)
Initial portfolio and initial subsequent portfolio (cont’d) • Grupo Ganfer started operations 1999 • Engaged in the production, commercialization and exports of agricultural products from high-tech greenhouses Products • Tomato • Organic cucumber Sales • All production is exported to USA and Canada
Slide 44: Tenant Integradora Hortícola Ganfer
Initial portfolio and initial subsequent portfolio (cont’d) I Tenant Integradora Hortícola Ganfer Location Imuris, Sonora Type of activity Agriculture Productive area (m2) 112,000 GLA (m2) 373,171 Estimated investment Ps $219,849,825 Contract length 10 years Rent denomination USD Estimated annual re
Slide 45: Initial portfolio and initial subsequent portfolio
Initial portfolio and initial subsequent portfolio • Started operations in 2014 • Their main objective is the production and commercialization of vegetables from high-tech greenhouses with climate control capabilities Products • Specialty tomatoes • Bell peppers Sales • Almost all the product is exp
Slide 46: Tenant Agroparque Yecapixtla I
Initial portfolio and initial subsequent portfolio (cont’d) I Tenant Agroparque Yecapixtla “El Potrero de los Novillos”, Yecapixtla, Location Morelos Type of activity Agriculture Productive area (m2) 424,082 GLA (m2) 682,934 Estimated investment Ps$ 806,494,229 Contract length 15 years Rent denomina
Slide 47: Tenant Agroparque Yecapixtla II
Initial portfolio and initial subsequent portfolio (cont’d) II Tenant Agroparque Yecapixtla “El Potrero de los Novillos”, Yecapixtla, Location Morelos Type of activity Agriculture Productive area (m2) 205,846 GLA (m2) 305,936 Estimated investment US$ 19,592,778 Contract length 10 years Rent denomina
Slide 48: Extension
Initial portfolio and initial subsequent portfolio (cont’d) Extension II Tenant Agroparque Yecapixtla “El Potrero de los Novillos”, Yecapixtla, • As part of the Initial Subsequent Portfolio, Location Agrofibra will acquire an extension in Agroparque Morelos Yecapixtla II Type of activity Agriculture
Slide 49: Initial portfolio and initial subsequent portfolio (cont'd)
Initial portfolio and initial subsequent portfolio (cont’d) • Hortícola Cimarrón began operations in 2007 • Dedicated to the production of vegetables to the foreign market from high-tech greenhouses Products • Tomato and bell pepper Sales • Most of the product is destinated to be exported through th
Slide 50: Tenant Hortícola Cimarrón I
Initial portfolio and initial subsequent portfolio (cont’d) I Tenant Hortícola Cimarrón “Rancho San José”, Villa Artista, San Location Luis Type of activity Agriculture Productive area (m2) 529,100 GLA (m2) 1,000,000 Estimated investment Ps $357,598,506 Contract length 15 years Rent denomination USD
Slide 51: Extension: Hortícola Cimarrón I
Initial portfolio and initial subsequent portfolio (cont’d) Extension I Tenant Hortícola Cimarrón “Rancho San José”, Villa Artista, San • As part of the initial subsequent portfolio, Location Agrofibra Will acquire an extension in Hortícola Luis Cimarrón I Type of activity Agriculture • It is expect
Slide 52: Tenant Hortícola Cimarrón II
Initial portfolio and initial subsequent portfolio (cont’d) II Tenant Hortícola Cimarrón “Rancho San José”, Villa Artista, San Location Luis Type of activity Agriculture Productive area (m2) 110,520 GLA (m2) 601,310 Estimated investment Ps $162,345,178 Contract length 15 years Rent denomination USD
Slide 53: Extension
Initial portfolio and initial subsequent portfolio (cont’d) Extension II Tenant Hortícola Cimarrón “Rancho San José”, Villa Artista, San • As part of the Initial Subsequent Portfolio, Location Agrofibra will acquire an extension in Hortícola Luis Cimarrón II Type of activity Agriculture • It is expe
Slide 54: Initial portfolio and initial subsequent portfolio (cont'd)
Initial portfolio and initial subsequent portfolio (cont’d) • Argaman started operation in 2006 as a pioneer in the production of vegetables in the Cienega region in Jalisco • The main objective is the production and commercialization of quality vegetables from high tech greenhouses Products • Tomat
Slide 55: Tenant Hortalizas Argaman
Initial portfolio and initial subsequent portfolio (cont’d) Tenant Hortalizas Argaman Location Poncitlán, Jalisco Type of activity Agriculture Productive area (m2) 240,000 GLA (m2) 351,679 Estimated investment Ps $339,162,590 Contract length 15 years Rent denomination USD Estimated annual rent US$ 1
Slide 56: Initial portfolio and initial subsequent portfolio (cont'd)
Initial portfolio and initial subsequent portfolio (cont’d) • BeFrost started operations at the end of 2017 as a freezing plant • Dedicated to the industrialization and commercialization of frozen fruit pulp for the food industry Products • Avocado • Mango Sales • All of the production is exported m
Slide 57: Tenant Congelados BeFrost
Initial portfolio and initial subsequent portfolio (cont’d) Tenant Congelados BeFrost Ex Haciendo Gogorrón, Villa Reyes, San Location Luis Potosí Type of activity Agriculture Productive area (m2) 3,025 GLA (m2) 30,000 Estimated investment Ps $121,459,978 Contract length 10 years Rent denomination US
Slide 58: Initial portfolio and initial subsequent portfolio (cont'd)
Initial portfolio and initial subsequent portfolio (cont’d) • Grupo Ganfer started operations 1999 • Engaged in the production, commercialization and exports of agricultural products from high-tech greenhouses Products • Tomato • Organic cucumber Sales • All production is exported to USA and Canada
Slide 59: Tenant Integradora Hortícola Ganfer
Initial portfolio and initial subsequent portfolio (cont’d) I Tenant Integradora Hortícola Ganfer Location Imuris, Sonora Type of activity Agriculture Productive area (m2) 112,000 GLA (m2) 373,171 Estimated investment Ps $219,849,825 Contract length 10 years Rent denomination USD Estimated annual re
Slide 60: Appendix
CUSTOM LAYOUT Appendix Unsaved Document / 1/22/2021 / 19:57
Slide 61: Management team
Management team Jorge Guajardo Hesles | Presidente Ejecutivo • +26 years of experience in the real estate sector • President of EBI 4.0, the most relevant annual agrifood and innovative event of the Bajío region • Previous experience: San Felipe Torres Mochas Industrial Park, Jaral de Berrio Agropar
Slide 62: Management Team (cont'd)
Management Team (cont’d) Manuel Alejandro Yohel Romero Socarrás | Operations Director • +40 years of experience; served as Director at financial companies assuming the role of CFO at companies like Televisa Interactive Media, Blim and Distribuidora Intermex, as well as consultant at Deloitte and aud
Slide 63: Management Team (cont'd)
Management Team (cont’d) Juan Pablo Nava| New Projects Director • +17 years of experience in the real estate industry in Mexico, working for firms like Cushman & Wakefield, Grubb & Ellis/Select, Newmark Grubb/Prodensa Select and Prodensa/Select • From 2010 to 2015, he served as Managing Director of
Slide 64: Technical Committee
Technical Committee Yvonne Ochoa Rosellini| Independent Member and President • +13 years of experience in strategic and financial management, as well as +10 years in the financial sector • Has served as CFO of Grupo Coppel and Finanzia, as well as CEO of Fundación Hogares. Additionally, she has over
Slide 65: Technical Committee (cont'd)
Technical Committee (cont’d) Eugenio López Garza | Independent Member • +30 years of experience in the financial sector. Started his professional career as financial consultant and was professor of contemporary economics and advanced statistics at Tecnológico y de Estudios Superiores de Monterrey (I
Slide 66: Investment and Risk Committee
Investment and Risk Committee Teddy Esteve | Internal Member of the Technical Committee and President of the Investment and Risk Committee • +40 years of professional experience in the agrifood industry and commodity trading • He is Managing Director of the coffee division of Ecom Coffee, the larges
Slide 67: Investment and Risk Committee (cont'd)
Investment and Risk Committee (cont’d) Jorge Guajardo Hesles | Executive President| Internal Member • +26 years of experience in the real estate sector • President of EBI 4.0, the most relevant annual agrifood and innovative event of the Bajío region • Previous experience: San Felipe Torres Mochas I
Slide 68: Agrifood REITS in the world
Agrifood REITS in the world REIT IPO Focus Hectares3 Market cap1 Beta 5Y1 Income LTM3 Assets3 2013 Growing fruits and vegetables in the US 40,905 $739 0.64 $57 $1,067 Cultivation to supply demand for food, fibers 2014 62,528 $382 0.91 $44 $1,091 and fuel 2018 Cultivation of berries and citrus 3,742
Slide 69: Independent appraisers
Independent appraisers Appraisals for the initial portfolio were prepared by Avison Young, S. de R.L. de C.V (“Avison Young”) and CBRE, S.A. de C.V. (“CBRE”) • The Avison Young Latin American Agribusiness team has professionals who have a combined experience of +40 years in the real estate and agric
Slide 70: Key risks and mitigants in the agrifood sector in Mexico
Key risks and mitigants in the agrifood sector in Mexico Factor Mitigant As a lease manager, Agrofibra is exempt from limits on land ownership established by Mexican Law1 Land ownership as opposed to business operators Water Availability and validity of the water concessions corresponding to the fac
Slide 71: Risk mitigants specific to the asset
Risk mitigants specific to the asset • Agrofibra has long-term leases with durations between 10 and 15 years with the possibility of similar renewal contracts. • Leases have a guarantee of up to 2 years of annual rent through the combination of solidary obligations, stock certificates, and/or cash.
Slide 72: Favorable trends in the agrifood sector
Favorable trends in the agrifood sector Consumer trends: Momentum for the natural and organic Millennials driving demand for consumables Private Equity & Venture Capital: Technological innovation: Private investment funds and institutional AgTech and FoodTech funds for long-term projects Att
Slide 73: Global perspectives of the agrifood sector 2050
Global perspectives of the agrifood sector 2050 Increase in 85% attributable to Latin America will World population 50% yield improvement represent 25% of global growth to 10 billion of agriculture due to intensive use of exports people production inputs, technification and of agriculture and fisher
Slide 74: Agrifood sector in Mexico
Agrifood sector in Mexico There is great potential in the agrifood sector that could be enhanced through new financing alternatives Agricultural production by region The variety and quality of agrifood products has positioned Mexico as the 8th (percentage from total) exporter worldwide and the 9th i
Slide 75: Agrifood sector financing in Mexico
Agrifood sector financing in Mexico The resources allocated to the agrifood sector have decreased significantly in the last three years. The federal budget for 2022 does not include support programs for the financing of the sector Agrifood sector financing Distribution of agrifood financing portfoli