- Record quarter as AFFO increases 18.0%
on 1Q15 and 32.8% on 2Q14
- Signed accretive acquisitions to
achieve 64% deployment of funds from follow-on offering
- Fourth consecutive quarterly increase
in portfolio-wide occupancy
- Declared Ps.0.3800 distribution per
certificate for 2Q15, up 4.8% on 1Q15.
FIBRA Macquarie México (FIBRA Macquarie) (BMV:FIBRAMQ) announced
its financial results for the quarter ended June 30, 2015, posting
year-on-year growth in revenue and Adjusted Funds from Operations
(AFFO) of 21.9% and 32.8% respectively. The increases in both
metrics were primarily driven by the positive contribution of the
acquisition completed in February, an improvement in occupancy and
the appreciation of the US Dollar against the Mexican Peso.
“FIBRA Macquarie’s strong performance during the second quarter
reflects the positive market fundamentals, as well as the ongoing
execution of our strategic plan,” said Juan Monroy, chief executive
officer, FIBRA Macquarie. “I’m pleased to be reporting our highest
quarterly AFFO result since inception and our fourth consecutive
quarter of increases in occupancy.”
Distribution for Second Quarter 2015
FIBRA Macquarie declared a distribution for the period of
Ps.0.3800 per certificate, expected to be paid on August 11, 2015
to holders of record on August 10, 2015. Certificates are expected
to commence trading ex-distribution on August 6, 2015. The
distribution represents 88.4% of the current quarter’s AFFO and
brings total distributions to 93.5% of AFFO on a year-to-date
basis.
FIBRA Macquarie’s current distribution policy is to pay
quarterly cash distributions. The payment of a cash distribution is
at all times subject to the approval of the board of directors of
the Manager, the continued stable performance of the properties in
the portfolio and prevailing economic conditions.
Acquisitions
FIBRA Macquarie announced two acquisitions in 2Q15.
On June 22, 2015 FIBRA Macquarie announced the signing of an
agreement to acquire a ten-property industrial portfolio with a
Gross Leasable Area (GLA) of 201,060 square meters (2.2 million
square feet) located in the cities of Monterrey, Reynosa, Tijuana,
Ciudad Juarez and Saltillo in Northern Mexico. The portfolio has
93.9% occupancy comprising high-quality tenants. The portfolio will
be acquired for US$105.0 million (approximately Ps. 1,575.0
million), excluding transaction costs and taxes. This acquisition
is expected to close within the third quarter of 2015.
On June 30, 2015 FIBRA Macquarie announced the signing of an
agreement to acquire an eight-property industrial portfolio located
in Monterrey, Nuevo León, which includes four stabilized
properties, two build-to-suit (BTS) development properties and two
land parcels. The GLA of the portfolio is 40,700 square meters
(438,500 square feet), out of which 10,800 square meters (116,300
square feet) correspond to the two BTS development properties. The
two land parcels, with a combined surface area of 25,100 square
meters (270,500 square feet), are adjacent to other properties
owned by FIBRA Macquarie, offering the possibility for expansion by
existing tenants. The portfolio was acquired on July 23, 2015 from
Desarrollos Industriales Nexxus for US$24.3 million (approximately
Ps.387.5 million) excluding transaction costs and taxes. FIBRA
Macquarie will pay additional consideration of US$5.6 million
(approximately Ps.89.4 million) for the two BTS projects, in each
case subject to development completion and the tenant having taken
possession and paid the first month’s rent. The BTS projects are
expected to be completed in mid-2016. Assuming completion of both
projects, the total purchase price for the portfolio will be
US$29.9 million (approximately Ps.476.9 million) excluding
transaction costs and taxes.
Results for the Quarter Ended June 30, 2015
FIBRA Macquarie reported a 21.9% increase in proportionately
combined revenues to Ps.704.3 million for the quarter ended June
30, 2015 compared with Ps.577.7 million in the prior comparable
period. AFFO increased 32.8% to Ps.348.8 million in the second
quarter of 2015 compared with Ps.262.6 million in the prior
comparable period.
Figures in millions
Quarter Ended
June 2015
Quarter Ended
June 2014
Variance
Ps.
Variance
%
Total revenues 704.3 577.7*
126.7 21.9%
Net operating income 611.8
485.7 126.1 26.0%
EBITDA
553.7 433.2 120.6 27.8%
Funds from
Operations 389.9 287.7 102.2
35.5%
Adjusted Funds from
Operations
348.8 262.6 86.2 32.8%
#
certificates outstanding 811.4 604.8
NM** 34.2% * 2Q14 total revenue results have been
conformed to reflect the current period presentation.
** NM: not meaningful.
The increase in AFFO from the prior comparable period is due to
continuing upside from the appreciation of the US dollar against
Mexican peso, favorable movements on same-store NOI and
contribution from the Industrial properties acquired during
February 2015.
Net operating income (NOI) includes lease-related income and
other variable income, less property operating expenses (including
property administration expenses). Earnings before interest, tax,
depreciation and amortization (EBITDA) includes NOI less Fund-level
management fees, corporate expenses, administrative expenses,
professional and legal expenses. Funds from Operations (FFO) is
equal to EBITDA plus interest income less interest expense. FIBRA
Macquarie derives AFFO by adjusting FFO for normalized capital
expenditure, tenant improvements and leasing commissions. AFFO may
be calculated in a different manner by other market participants
thereby limiting its usefulness as a comparative measure. Use of
AFFO in the analysis of the financial performance of FIBRA
Macquarie should be in addition to and not in lieu of other
financial measures as required under International Financial
Reporting Standards (IFRS).
Gross Leasable Area
FIBRA Macquarie’s portfolio comprised GLA of approximately 3.2
million square meters (34.0 million square feet) as of June 30,
2015, including approximately:
- 2.7 million square meters (29.2 million
square feet) of industrial properties
- 253,500 square meters (2.7 million
square feet) of wholly-owned retail/office properties
- 191,300 square meters (2.1 million
square feet) of retail/office properties held through the 50/50
joint venture with Grupo Frisa
For purposes other than FIBRA Macquarie’s consolidated financial
statements prepared under IFRS, FIBRA Macquarie reports revenue and
other financial metrics on a proportionately combined basis,
including the results for the joint venture with Grupo Frisa in
proportion to its 50% interest.
Industrial Segment
As of June 30, 2015, FIBRA Macquarie owned 260 industrial
properties located in 21 cities across 15 Mexican states.
Industrial segment operating highlights include:
Industrial Segment
Metrics
As at
June 30, 2015
As at
June 30, 2014
Gross Leasable Area (square meters) 2.7 million
2.6 million Occupancy rate 90.3% 89.0%
Rolling average occupancy rate (YTD) 89.9%
89.7% Average monthly rent per leased square meter
US$4.51 US$4.52 Rolling average lease
rate per square meter
(YTD)
US$4.51 US$4.49 Tenant retention rate
88% 59% Weighted average lease
term (by annualized base
rent)
3.3 years 2.9 years
The Mexican industrial real estate market continues to
demonstrate strength, driven by continued improvement in the
manufacturing sector, especially in the automotive sector as well
as in a broad range of other consumer-product industries primarily
serving foreign demand. This is reflected in the continued trend
toward lower vacancy rates in Mexico’s Northern markets, where 76%
of FIBRA Macquarie’s portfolio is located.
“FIBRA Macquarie’s 23,400 square meters (251,400 square feet) of
new leasing activity for Q2 was dominated by transactions with
automotive customers in Ciudad Juarez, Puebla, Guadalajara and
Monterrey,” noted Mr. Monroy. “Renewal activity for the quarter
involved 26 leases totaling 138,400 square meters (1.5 million
square feet) of space, a FIBRA Macquarie quarterly record. We saw
this activity across a broad range of industries including
logistics, major appliance, and food along with auto.”
“Our leasing team has signed new leases for 41% more GLA than in
the first half of 2014, even though leasing activity tends to be
lower in the first half of the year,” said Mr. Monroy. “The high
level of leasing activity is indicative of both the improving
fundamentals of the Mexican industrial market as well as the
growing capability of FIBRA Macquarie’s in-house property
administration platform. This resulted in a fourth consecutive
quarter of increased industrial occupancy, a trend which is
expected to continue for the rest of the year. We will continue to
leverage our internal platform to maximize portfolio performance as
well as to provide additional drive to our acquisition activities,”
stated Mr. Monroy.
Industrial Segment Leasing Activity
New and renewed industrial leases totaled approximately 161,800
square meters (1.7 million square feet). Highlights include the
following leases:
- 3-year new lease for 5,300 square
meters (56,500 square feet) in Puebla
- 5.5-year new lease for 5,100 square
meters (55,300 square feet) in Guadalajara
- 3-year new lease for 4,000 square
meters (43,300 square feet) in Ciudad Juárez
- 3-year new lease for 2,700 square
meters (29,200 square feet) in Ciudad Juárez
- 2-year renewal lease for 20,300 square
meters (218,600 square feet) in Monterrey
- 5-year renewal lease for 19,000 square
meters (204,000 square feet) in Hermosillo
- 3-year renewal lease for 11,800 square
meters (127,100 square feet) in Monterrey
- 5-year renewal lease for 5,100 square
meters (55,200 square feet) in Tijuana
Retail/Office Segment
As of June 30, 2015, FIBRA Macquarie owned 17 retail/office
properties in six cities, nine of which are held through the 50/50
joint venture with Grupo Frisa. Approximately 72.1% of FIBRA
Macquarie’s retail/office GLA is located in the Mexico City
Metropolitan Area (MCMA). Approximately 90.0% of FIBRA Macquarie’s
retail space is contained in the combined MCMA, Monterrey,
Guadalajara and Cancún markets.
Leased retail GLA increased as a result of three ongoing
expansions: (1) a movie theater in Irapuato that is adding 600
square meters (6,500 square feet) for three new screens (2) a
discount retailer that is building a new store of 1,100 square
meters (11,800 square feet) in the same Irapuato property, and (3)
a car dealership building a 500 square meter (5,400 square foot)
pad on FIBRA Macquarie’s Coacalco property. These expansions will
increase overall portfolio yield as the tenants are funding the
constructions. Tenants will start paying rent once the construction
of their space is completed. These expansions are also expected to
strengthen FIBRA Macquarie’s retail tenant mix, since the discount
retailer and the car dealer will be opening new stores, and the
additional screens should attract higher visitor traffic.
Retail/Office Segment
Metrics
As at
June 30, 2015
As at
June 30, 2014
Gross Leasable Area
(square meters)1/
444,800 443,000 Occupancy rate 94.4% 94.1% Average monthly rent
per leased square meter
Ps. 141.95
US$9.12
Ps. 138.32
US$10.64
Rolling average lease rate per
square meter (YTD)
Ps. 141.30
US$9.30
Ps. 134.03
US$10.23
Weighted average lease
term (by annualized-base rent)
5.5 years 6.0 years 1/ Includes 100% of the retail/office GLA in
the 50/50 joint venture with Grupo Frisa
There was improved performance from anchor tenants, including
supermarkets and movie theatres, which showed year-to-date
increases in revenues of 8.0% and 16.7% respectively, compared to
the same period last year. FIBRA Macquarie’s marketing campaigns
continued to realize increased visitor traffic in retail
properties. FIBRA Macquarie is also in the process of remodeling
its shopping center in Monterrey, which was a key driver for
closing a 700 square meter (7,500 square foot) lease with a
national retail chain.
Retail/Office Segment Leasing Activity
Consumer spending in Mexico has been recovering: Same store
sales of retailers in the National Association of Supermarkets and
Department Stores (ANTAD, for its acronym in Spanish) had a 2.4%
inflation-adjusted increase in the first half of 2015, which is the
highest half-year increase since 2008. FIBRA Macquarie’s retail
segment has benefited from improving consumer spending and FIBRA
Macquarie’s proactive asset management across its well-located
properties, resulting in important increases in both occupancy and
rental rates.
Approximately 50 retail tenants pay variable rents, and their
sales had a combined year-on-year increase during the quarter,
which resulted in a 38% increase in variable rent. FIBRA Macquarie
reported signing 52 new and renewed retail/office leases totaling
8,400 square meters (90,400 square feet) during the quarter.
Disclosures Relating to Leverage
In accordance with applicable FIBRA regulations:
- FIBRA Macquarie complies with the
leverage limit of 50%, with leverage of 40.3% as of June 30,
2015
- FIBRA Macquarie complies with the
minimum debt service coverage ratio (DSCR) of 1.0x, with a DSCR of
1.3x as of June 30, 2015
Please refer to the Supplementary Financial Information for
details of how the above ratios are calculated together with
detailed disclosures regarding FIBRA Macquarie’s portfolio-level
debt facilities, which are available on FIBRA Macquarie’s website,
www.mmreit.com.
Webcast and Conference Call
FIBRA Macquarie will host an earnings conference call and
webcast presentation on Tuesday, July 28, 2015 at 7:30 a.m. CT /
8:30 a.m. ET. The call will follow the release of FIBRA Macquarie’s
earnings results for the second quarter 2015.
The conference call, which will also be audio webcast, can be
accessed online at www.mmreit.com or by dialing toll free
+1-877-304-8957. Callers from outside the United States may dial
+1-973-638-3235. Please ask for the FIBRA Macquarie Second Quarter
2015 Earnings Call.
An audio replay will be available through July 30, 2015, by
dialing +1-855-859-2056 or +1-404-537-3406 for callers outside the
United States. The passcode for the replay is 81232145. A webcast
archive of the conference call and a copy of FIBRA Macquarie’s
financial information for the second quarter 2015 will also be
available on FIBRA Macquarie’s website, www.mmreit.com.
About FIBRA Macquarie
FIBRA Macquarie México (FIBRA Macquarie) (BMV: FIBRAMQ) is a
real estate investment trust (fideicomiso de inversíon en bienes
raices), or FIBRA, listed on the Mexican Stock Exchange (Bolsa
Mexicana de Valores) targeting industrial, retail and office real
estate opportunities in Mexico, with a primary focus on stabilized
income-producing properties. FIBRA Macquarie’s portfolio consists
of 260 industrial properties and 17 retail/office properties,
located in 24 cities across 19 Mexican states (as of June 30,
2015). Nine of the retail/office properties are held through a
50/50 joint venture with Grupo Frisa. FIBRA Macquarie is managed by
Macquarie México Real Estate Management, S.A. de C.V. which
operates within the Macquarie Infrastructure and Real Assets
division of Macquarie Group. For additional information about FIBRA
Macquarie, please visit www.mmreit.com.
MIRA is a business within the Macquarie Asset Management
division of Macquarie Group and a global alternative asset manager
focused on real estate, infrastructure, agriculture and energy
assets. MIRA has significant expertise over the entire investment
lifecycle, with capabilities in investment sourcing, investment
management, investment realization and investor relationships.
Established in 1996, MIRA has approximately US$100 billion of total
assets under management as of December 31, 2014 with more than 400
employees managing 50 listed and unlisted funds worldwide.
About Macquarie Group
Macquarie Group (Macquarie) is a global provider of banking,
financial, advisory, investment and funds management services.
Macquarie’s main business focus is making returns by providing a
diversified range of services to clients. Macquarie acts on behalf
of institutional, corporate and retail clients and counterparties
around the world. Founded in 1969, Macquarie operates in more than
70 office locations in 28 countries.
Macquarie employs approximately 14,000 people and has assets
under management of over US$370 billion (as of March 31, 2015).
Cautionary Note Regarding Forward-looking Statements:
This release may contain forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties. We caution you that a number of important factors
could cause actual results to differ significantly from these
forward-looking statements.
None of the entities noted in this document is an authorized
deposit-taking institution for the purposes of the Banking Act 1959
(Commonwealth of Australia). The obligations of these entities do
not represent deposits or other liabilities of Macquarie Bank
Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or
otherwise provide assurance in respect of the obligations of these
entities.
THIS RELEASE IS NOT AN OFFER FOR SALE OF SECURITIES IN THE
UNITED STATES, AND SECURITIES MAY NOT BE OFFERED OR SOLD IN THE
UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION
UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED.
THIS ANNOUNCEMENT IS NOT FOR RELEASE IN ANY MEMBER STATE OF
THE EUROPEAN ECONOMIC AREA.
All figures in this release are subject to rounding. Any
arithmetic inconsistencies are due to rounding.
FIBRA MACQUARIE MÉXICO AND ITS CONTROLLED
ENTITIES CONDENSED
INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT JUNE
30, 2015 (UNAUDITED) AND DECEMBER 31, 2014 CURRENCY AMOUNTS
EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)
Jun 30, 2015 Dec 31, 2014 $’000 $’000 Current assets
Cash and cash equivalents 4,521,454 5,425,062 Restricted cash
54,876 31,617 Trade and other receivables, net 109,207 116,944
Value added tax receivable 96,873 199,129 Other assets 91,602
99,925 Total current assets 4,874,012 5,872,677 Non-current
assets Restricted cash 122,718 147,155 Other assets 103,065 58,682
Equity-accounted investees 938,328 930,415 Goodwill 931,605 931,605
Investment properties 29,960,250 27,612,778 Total non-current
assets 32,055,966 29,680,635 Total assets
36,929,978 35,553,312 Current
liabilities Trade and other payables 253,293 248,555 Other
liabilities 42,371 93,598 Tenant deposits 16,567 15,474 Total
current liabilities 312,231 357,627 Non-current liabilities
Tenant deposits 268,759 251,025 Interest-bearing liabilities
14,865,027 14,091,738 Total non-current liabilities
15,133,786 14,342,763 Total liabilities
15,446,017 14,700,390
Net assets
21,483,961 20,852,922 Equity
Contributed equity 18,369,994 18,376,480 Retained earnings
3,113,967 2,476,442
Total equity
21,483,961 20,852,922 FIBRA
MACQUARIE MÉXICO AND ITS CONTROLLED ENTITIES
CONDENSED INTERIM CONSOLIDATED STATEMENTS
OF COMPREHENSIVE INCOMEFOR THE THREE AND SIX MONTHS ENDED JUNE 30,
2015 (UNAUDITED) AND 2014
CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS
OTHERWISE STATED) 3 months ended 6 months ended
Jun 30,2015
Jun 30,
2014
Jun 30,2015
Jun 30,2014
$’000 $’000 $’000 $’000 Property related income 656,892
534,610 1,267,015 1,065,983 Property related expenses
(86,268 ) (86,370 ) (193,197 ) (158,487 ) Net property income
570,624 448,240 1,073,818
907,496 Management fees (49,608 ) (36,042 ) (101,352
) (70,672 ) Transaction related expenses (3,305 ) (708 ) (8,853 )
(29,010 ) Professional, legal and other expenses
(8,656 ) (16,466 ) (19,133 ) (33,797 ) Total expenses
(61,569 ) (53,216 ) (129,338 ) (133,479 ) Finance costs
(186,369 ) (168,705 ) (367,165 ) (345,587 ) Financial income 31,103
22,524 74,959 36,751 Share of profits from equity-accounted
investees 15,175 12,073 29,285 12,966 Foreign exchange (loss)/gain
(361,043 ) 44,473 (740,696 ) 36,870
Net unrealized foreign exchange
gain/(loss) on foreign currencydenominated investment property
measured at fair value
626,947 (82,091 ) 1,278,038 (67,791 )
Profit for the period
634,868
223,298
1,218,901
447,226
Other comprehensive income Other comprehensive income for
the period - - - -
Total comprehensive income for the
period
634,868
223,298
1,218,901
447,226
Earnings per CBFI* Basic earnings per CBFI (pesos) 0.78 0.37
1.50 0.74 Diluted earnings per CBFI (pesos) 0.78
0.37 1.50 0.74 *Real Estate Trust
Certificates (Certificados Bursátiles Fiduciarios Inmobiliarios)
FIBRA MACQUARIE MÉXICO AND ITS
CONTROLLED ENTITIES
CONDENSED INTERIM CONSOLIDATED STATEMENTS
OF CHANGES IN EQUITY FORTHE SIX MONTHS ENDED JUNE 30, 2015
(UNAUDITED) AND 2014
CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS
OTHERWISE STATED)
Contributed
Retained
equity
earnings
Total
$’000 $’000 $’000 Total equity at January 1, 2014 13,673,801
342,243 14,016,044 Total comprehensive income for the period -
447,226 447,226 Total comprehensive income for the period - 447,226
447,226 Transactions with equity holders in their capacity
as equity holders: - Distributions to CBFI holders - (571,490 )
(571,490 ) Total transactions with equity holders in their capacity
as equity holders - (571,490 ) (571,490 )
Total equity at June 30, 2014
13,673,801
217,979
13,891,780
Total equity at January 1, 2015 18,376,480 2,476,442 20,852,922
Total comprehensive income for the period - 1,218,901 1,218,901
Total comprehensive income for the period - 1,218,901 1,218,901
Transactions with equity holders in their capacity as equity
holders: - Costs directly attributable to follow-on equity
placement (6,486 ) - (6,486 ) - Distributions to CBFI holders -
(581,376 ) (581,376 ) Total transactions with equity holders in
their capacity as equity holders (6,486 ) (581,376 ) (587,862 )
Total equity at June 30, 2015
18,369,994
3,113,967
21,483,961
FIBRA MACQUARIE MÉXICO AND ITS CONTROLLED
ENTITIES
CONDENSED INTERIM CONSOLIDATED STATEMENTS
OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2015 (UNAUDITED)
AND 2014
CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS
OTHERWISE STATED)
6 months ended
6 months ended
Jun 30, 2015 Jun 30, 2014 $’000 $’000 Inflows / (Outflows) Inflows
/ (Outflows) Operating activities: Profit for the period 1,218,901
447,226 Adjustments for:
Net unrealized foreign exchange
(gain)/loss on foreign currencydenominated investment property
measured at fair value
(1,278,038 ) 67,791 Straight line rental income adjustment (29,606
) (9,562 ) Tenant improvements amortization 6,041
5,965
Leasing commissions amortization 14,838 8,643 Provision for bad
debts 17,726 9,026 Net foreign exchange loss/(gain) 762,767 (37,141
) Finance costs recognized in profit for the period 367,165 345,587
Share of profits from equity-accounted investees (29,285 ) (12,966
) Movements in working capital: Decrease in receivables 85,813
411,242 (Decrease)/increase in payables (16,083 ) 6,849 Net cash
flows from operating activities 1,120,239 1,242,660 Investing
activities: Investment property and capital expenditure (1,072,155
) (641,061 ) Investment in equity-accounted investees - (691,684 )
Distributions received from equity-accounted investees 21,372 - Net
cash flows used in investing activities (1,050,783 ) (1,332,745 )
Financing activities: Proceeds from interest-bearing liabilities,
net of facility charges - 255,851 Payment of interest-bearing
liabilities - (663,443 ) Interest paid (341,350 ) (313,211 )
Capital raising costs (follow-on equity placement) (29,445 ) -
Distributions to CBFI holders (581,376 ) (571,490 ) Net cash flows
from financing activities (952,171 ) (1,292,293 ) Net decrease in
cash and cash equivalents (882,715 ) (1,382,378 ) Cash, cash
equivalents at the beginning of the period 5,603,834 2,347,932
Foreign exchange (gain)/loss on cash and cash equivalents
(22,071 ) 271
Cash and cash equivalents at the end of
the period*
4,699,048 965,826 *Included in
the cash and cash equivalent balance at the end of the period is
restricted cash of $177.6 million (June 30, 2014: $167.7 million).
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150727006405/en/
Investor Relations:FIBRA Macquarie MéxicoToe Matsumura,
+52 (55) 9178 7768Cel: +52 1 (55) 4450
5018toe.matsumura@macquarie.comorFor Press
Queries:CarralSierra PR & Strategic CommunicationsJose
Manuel Sierra, +52 (55) 5286 0793Cel: +52 1 (55) 5105
5907jmsierra@carralsierra.com.mxorDiego Arrazola, +52 (55) 5286
0793Cel: +52 1 (55) 3977
2778darrazola@carralsierra.com.mx