Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario · OTC:CBAOF
Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario — Terrafina — Investor Presentation (November 2022)
27 slides from Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario's investor presentation, November 2022
Slide 1: Investor Presentation
ap DT ERRAFINA Investor Presentation a on A
Slide 2: Disclaimer
Disclaimer This presentation is strictly confidential and is being furnished to you solely for your information. It may not be reproduced or redistributed to any other person, and it may not be published, in whole or in part, for any purpose. By receiving this presentation, you become bound by the a
Slide 3: Company Overview
r 4p BD TERRAFINA Company Overview
Slide 4: Terrafina at a Glance: A Leading Industrial REIT in Mexico
Terrafina at a Glance: A Leading Industrial REIT in Mexico Key Metrics as of 3Q22 Solid Fundamentals with PGIM Real Estate portfolio management expertise Industrial 276 Properties US$ Rental • Best Class-A industrial portfolio leased by multinational ~97% Revenues 14 yrs Portfolio tenants focused on
Slide 5: Three-year Growth Plan
r 4p BD TERRAFINA Three-year Growth Plan
Slide 6: Terrafina's Three-Year Strategic Plan
Terrafina’s Three-Year Strategic Plan Terrafina has delivered superior performance to shareholders through an NAV/certificate and AFFO steady growth Strong Industrial Tailwinds Investments 1 Asset Class resilience with strong real estate fundamentals $150M- New developments to achieve $200M 2.5M to
Slide 7: Terrafina's Three-Year Strategic Plan (cont.): Funding Sources
Terrafina’s Three-Year Strategic Plan (cont.) Funding Sources for Terrafina’s New Developments AFFO retention 1 Distribution policy change from 85% of Asset Sales AFFO to 70% of AFFO 2 Proceeds from asset sales (at premium or Additional Debt at par to FMV) will be reinvested 3 New developments will
Slide 8: Terrafina's Three-Year Strategic Plan (cont.): Target Markets
Terrafina’s Three-Year Strategic Plan (cont.) Targeting growth in markets with high barriers to entry and underlying industries to remain solid in the long term Ciudad Tijuana Juarez Center 3.0 % 21.0 % “Key logistic hub for Latin America Chihuahua and North America, focused on North 15.3% consumer
Slide 9: 2021 and 2022 Highlights
Terrafina’s Three-Year Strategic Plan (cont.) 2021 and 2022 Highlights 2021 • Delivered 360,000 square feet in Tijuana for Amazon. Significant value generation compared to its construction cost per square foot (US$66.5 at cost vs, US$116.1 at FMV), a 75% increase. • Sold 930,500 square feet of two p
Slide 10: Track Record
ap DB TERRAFINA Track Record
Slide 11: Executing an Optimal Growth Strategy Over the Last Nine Years
Executing an Optimal Growth Strategy Over the Last Nine Years… Evolution of Terrafina’s Portfolio at a Glance Terrafina Growth Cycle 2013 2Q22 △% Annualized (US$ in millions) 20131 △% 2Q22 Industrial Properties 132 273 106.8% Rental Revenue 75 194.8 159.7% Gross Leasable Area 19.9 38.6 94.0% NOI 69.
Slide 12: That Has Been Delivering Results Since Inception
… That Has Been Delivering Results Since Inception Key milestones that propelled and supported our growth story • US$127M asset sale. Resources used to pay down debt and will be • PGIM reaches 19.9M SF of • FO offering • Refinancing • Refinancing US$300M used to finance growth Industrial assets ~US$
Slide 13: Successfully Executing its Business Plan
Successfully Executing its Business Plan… Proven business model executed across peaks and troughs of economic cycles and… 5.70 96.3% 96.1% 97.0% 95.2% 95.2% 5.50 95.1% 5.55 92.8% 95.0% 93.5% 5.30 5.28 94.9% 93.0% 91.4% 5.10 5.13 5.18 91.0% 4.90 88.6% 5.00 89.0% 3Q18 Mexican Elections 4.90 4.89 1Q20
Slide 14: Focus on Sustainability
Focus on Sustainability REAL ESTATE AND ESG ASSESSMENTS ESG RATINGS INDEX AND RECOGNITIONS TRANSPARENCY AND REPORTING 13
Slide 15: Our Way of Creating Sustainable Value
Our Way of Creating Sustainable Value SOME OF OUR ESG COMMITMENTS AND KPI’S GREEN BUILDING CERTIFICATIONS • Energy data coverage of more than 60% of total GLA • 100% social and environmental risk analysis coverage of total portfolio ENVIRONMENTAL • 32.6% of total lease contracts have a green-lease c
Slide 16: Key Investment Highlights
r 4p BD TERRAFINA Key Investment Highlights
Slide 17: Key Investment Highlights
Key Investment Highlights 1 Best-in-class industrial portfolio with a high- quality tenant base and strategically diversified in top industrial markets 2 Robust portfolio in a resilient industry 3 Proven track record delivering consistent and stable operating and financial results 4 Sound capital st
Slide 18: Best-in-Class Industrial Portfolio With a High-Quality Tenant Base
1 Best-in-Class Industrial Portfolio With a High-Quality Tenant Base… • 74.0% of our tenants are focused in Renewal Rates (Annual Average) Lease Expiration Schedule1 manufacturing, while 26.0% are in 91.0% 90.8%91.3% % of Annual Base Rent distribution and logistics 86.6% 86.5% 86.8% 85.7% Avg. 85.3%
Slide 19: Strategically Diversified in Top Industrial Markets
… and Strategically Diversified in Top Industrial Markets 1 Mexico Industrial Breakdown: GLA Distribution by Region Tenant Base Breakdown by Sector (% GLA) Central Baijo North • Aviation: Mexico is a prime location for Aviation enhanced by highly qualified workforce. Our tenants participate in the s
Slide 20: Robust Portfolio in a Resilient Industry
Robust Portfolio in a Resilient Industry (US$ in millions, unless otherwise noted) NOI and NOI Margin EBITDA and EBITDA Margin 94.0% 93.8% 94.2% 94.2% 93.7% 94.2% 94.0% 93.7% 93.8% 93.6% 93.8% 93.4% 93.5% 84.3% 83.1% 84.4% 83.9% 84.3% 84.6% 83.3% 83.1% 82.4% 83.8% 82.6% 81.8% 83.7% 188.1 182.1 168.5
Slide 21: Proven Track Record: Consistent and Stable Operating and Financial Results
Proven Track Record: Consistent and Stable Operating and Financial Results 3 EBITDA shows robust growth and EBITDA margin remains consistent 79.6% 77.8% 79.9% 82.9% 83.6% 82.6% 83.4% 84.6% 81.8% 43.6 43.3 42.8 44.2 43.2 43.2 41.3 40.9 42.2 42.5 42.2 41.0 40.1 40.1 40.1 42.0 41.3 41.0 39.6 39.3 37.9
Slide 22: Sound Capital Structure & Conservative Financial Policy
Sound Capital Structure & Conservative Financial Policy Key Financial Strenghts 4 • Large network of lending relationships, from both Terrafina and PGIM, with a solid roster of banks Investment Grade Credit Ratings (International) Baa3 (Stable) BBB- (Stable) • Investment Grade balance sheet with pro
Slide 23: Premier Institutional Corporate Governance
Premier Institutional Corporate Governance 5 Best-in-class corporate governance standards Committees Investment Committee • Comprised of PGIM executives and Terrafina’s CEO $35Bn $209bn 32 • Terrafina’s CEO must approve any acquisition or 2021 Assets Under Global Office disposition of real estate as
Slide 24: Appendix
r 4p BD TERRAFINA Appendix
Slide 25: Fee Structure
Fee Structure Use of third-party property managers reduces potential conflicts of interest Property Management Fee Incentive Fee Management Other Fees Fee • Calculated in each anniversary and paid in stock • 50bps of GAV of • PGIM Real Estate – 10% on • ~1.90% of rents investment excess total return
Slide 26: Credit Metrics
Credit Metrics Net Debt / EBITDA¹ Debt / EBITDA¹ 5.9x 5.8x 6.1x 5.9x 5.8x 5.9x 7.0x 5.6x 5.5x 5.5x 5.6x 5.5x 6.3x 6.3x 5.2x 6.0x 5.9x 6.1x 6.0x 6.0x 6.1x 6.1x 6.1x 5.1x 4.9x 5.4x 5.3x 5.3x 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2
Slide 27: Implied Cap Rate Calculation
Implied Cap Rate Calculation (US$ million, unless otherwise noted) Implied cap rate NAV (+) Investment Properties (Excl. Landbank) 2,650.6 Certificate Price1 1.35 (+) Landbank 24.4 (+) Cash 45.2 (x) Certificates (M) 772.5 (-) Total Debt 843.7 (=) Market Capitalization 1,046.1 (=) NAV 1,876.5 (/) Cer