CIBanco SA CTF Bursatiles Fiduciarios Inmobiliario · OTC:CBAOF
CIBanco SA CTF Bursatiles Fiduciarios Inmobiliario — Terrafina — Investor Presentation (November 2019)
20 slides from CIBanco SA CTF Bursatiles Fiduciarios Inmobiliario's investor presentation, November 2019
Slide 1: Terrafina Investor Presentation
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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 It may not be reproduced or redistributed to any other person, and it may not be published, in whole or in part, for any purpose.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: Terrafina at a glance: a leading industrial REIT in Mexico
Terrafina at a glance: a leading industrial REIT in Mexico… Key Metrics as of 3Q2019 IndustrialProperties North 62.3% Youngest Portfolio 289 Bajio 22.5% Avg. Age 12 years Central 15.2% Rental Revenues Occupancy Rate ~97% US$ 96.3% Rent per ft2 GLA US$5.18 41.8mm ft2 Solid Fundamentals with PGIM Real
Slide 4: Delivering results since inception: key milestones
… that has been delivering results since inception Key milestones that propelled and support our growth story • Refinancing • PGIM reaches 19.9mm ft2 • FO offering • Refinancing US$300mm of Industrial assets ~US$460mm US$150mm • Acquisition of 0.3 MM ft2 2011 2014 2016 2018 2003 2013 2015 2017 2019
Slide 5: Successfully executing its business plan
Successfully executing its business plan… Strong occupancy and solid rental rates in all stages of the cycle 5.30 96.3% 97.0% 95.5% 95.3% 5.20 94.8% 95.0% 5.15 5.18 5.10 93.2% 93.0% 5.00 5.04 91.2% 4.90 91.0% 89.7% 4.88 4.88 Mexican Elections 4.80 4.82 89.0% US Elections 4.70 4.76 87.0% USMCA 4.60 4
Slide 6: Resilient portfolio across different economic cycles
… with a resilient portfolio across different economic cycles… …successfully managed by Terrafina and PGIM Real Estate 1 PGIM RE Fund Development 2 Global Financial Crisis / 3 Recovery 4 IPO and AI / Kimco 5 Asset Sale / 6 2nd Follow On / Acquisitions & Phase Pre-Crisis Automotive Crisis Acquisition
Slide 7: Key Investment Highlights
Key Investment Highlights Best-in-class industrial portfolio with a high-quality tenant base and strategically diversified in top industrial markets Robust portfolio in a resilient industry Proven track record delivering consistent and stable operating and financial results Sound capital structure &
Slide 8: Diversified High-Quality Industrial Portfolio
Diversified High-Quality Industrial Portfolio Mexico Industrial Breakdown: Distribution by Region(1) Tenants advancing to new trends Central Baijo North • Aerospace: Mexico is a prime location for aerospace enhanced by highly qualified workforce. Our tenants participate in the supply chains of the w
Slide 9: Long-term tenant relationships supported by high retention rates
Long-term tenant relationships supported by high retention rates • 72.6% of our tenants are focused in manufacturing, while 27.4% are in distribution and logistics • Tenant base comprised primarily of large, creditworthy multinational companies • Manufacturing tenants have up to 10-year lease terms
Slide 10: Stable and growing industry
Stable and growing industry Over 10 years of steady performance of the Mexican industrial real estate industry Consistent and Stable Growth Trend Sound Absorption Across Markets Industrial Stock (mm ft2) Industrial Net Absorption (mm ft2) – 2018 ): 5.68% 797 800 CA GR (2009 736 770 90 91 674 566 75
Slide 11: The most efficiently managed industrial REIT in Mexico
The most efficiently managed industrial REIT in Mexico NOI and NOI Margin – (US$ MM) EBITDA and EBITDA Margin – (US$ MM) 94.9% 94.0% 93.3% 94.1% 94.3% 92.1% 92.0% 92.3% 87.6% 89.0% 89.9% 87.3% 87.3% 86.4% 84.6% 83.0% 83.1% 83.1% 84.2% 84.8% 190.0 79.8% 82.5% 166.8 77.1% 78.4% 78.4% 78.0% 170.9 150.3
Slide 12: Disciplined financial strategy with prudently structured debt facilities
Disciplined financial strategy with prudently structured debt facilities… Credit Credit(International) Credit Ratings Ratings Ratings (International) (International) Baa3 (Stable) • Large network of lending relationships, from InvestmentInvestment Investment Grade Grade Grade BBB- (Stable) both Terr
Slide 13: Premier Institutional Corporate Governance
Premier Institutional Corporate Governance… Robust corporate governance standards Committees • Alberto Chretin, Chief Executive Officer • Carlos Gomez, Chief Financial Officer ● Comprised of PGIM executives Investment and Terrafina’s CEO • Francisco Martinez, Investor Relations Officer Committee ● T
Slide 14: ESG milestones
ESG milestones 1. Green Building Certifications: • SMART Blue green building certification 2019 version includes a new credit called community engagement based on United Nations Principles for Responsible Investment 2. GRESB(1) (+): Overall score-61; Green Star; 2nd place out of 6 North America List
Slide 15: Appendix
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Slide 16: Credit metrics
Credit metrics Net Debt / EBITDA(1) Debt / EBITDA(1) (2) 13.4x (2) 15.0x 8.1x 7.7x 7.8x 8.5x 8.2x 8.1x 7.5x 5.7x 5.6x 5.5x 6.7x 6.5x 5.5x 6.2x 6.1x 6.0x 6.0x 6.2x 6.1x 6.2x 6.0x 5.2x 5.1x 5.3x 5.3x 6.0x 6.0x 6.1x 5.7x 5.8x 5.8x 5.9x 4.1x 3.9x 4.0x 3.9x 4.0x 5.0x 5.2x 4.0x 4.6x 3.7x 4.3x 3.4x 3.2x 3.
Slide 17: Portfolio's Operating and Financial Highlights
Portfolio’s Operating and Financial Highlights 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19 fx 18.9859 19.7877 19.2163 19.1333 19.4256 MXN MM USD MM Rental Revenues 912.0 951.3 900.1 905.7 945.8 48.0 48.0 46.8 47.3 48.7 Other Operating Income 55.8 76.1 109.9 53.9 71.0 2.9 3.9 5.7 2.8 3.7 Net Re
Slide 18: Portfolio's Occupancy and Rental Rates
Portfolio’s Occupancy and Rental Rates Avg. Leasing Rent/ Occupancy Market information Square Foot Terrafina (As of 3Q19) Avg. Leasing Rent/ Occupancy Rate Rate Square Foot (dollars) (As of 2Q19) (dollars) North 98.5% 5.11 North 93.9% 4.67 Baja California 90.3% 4.59 Baja California 94.7% 4.87 Sonora
Slide 19: Implied cap rate calculation
Implied cap rate calculation Implied cap rate NAV US$ MM, unless otherwise noted US$ MM, unless otherwise noted (+) Investment Properties (Excl. Landbank) 2,373.8 (+) Landbank 50.2 Certificate Price (1) (Ps$31.01 / US$1.59) 1.59 (+) Cash 64.9 (x) Certificates (MM) 790.6 (-) Total Debt 1,042.6 (=) NA
Slide 20: Terrafina
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