Terrafina® (“TERRA” or “the Company”) (BMV: TERRA13), a leading
Mexican industrial real estate investment trust (“FIBRA”),
externally advised by PGIM Real Estate and dedicated to the
acquisition, development, leasing and management of industrial real
estate properties in Mexico, announced today its fourth quarter
2019 (4Q19) and full year 2019 (FY2019) earnings results.
The figures in this report have been prepared in
accordance with International Financial Report Standards (“IFRS”).
Figures presented in this report are presented in millions of
Mexican pesos and millions of U.S. dollars, unless stated
otherwise. Additionally, figures may vary due to rounding.
Terrafina’s financial statements that are
included in this report are internal and have not yet been audited
by the external auditors, nor have they been approved at the
Ordinary Shareholders’ Meeting. As a result, the mentioned figures
in this financial report are preliminary figures and could be
adjusted in the future. Once the audited 2019 financial statements
are available and have been approved by the Annual Ordinary
Shareholders’ Meeting, these will be made available to the market
as per applicable law.
This document may include forward-looking
statements that may imply risks and uncertainties. Terms such as
"estimate", "project", "plan", "believe", "expect", "anticipate",
"intend", and other similar expressions could be construed as
previsions or estimates. Terrafina warns readers that declarations
and estimates mentioned in this document, or realized by
Terrafina’s management imply risks and uncertainties that could
change as a result of various factors that are out of Terrafina’s
control. Future expectations reflect Terrafina’s judgment at the
date of this document. Terrafina reserves the right or obligation
to update the information contained in this document or derived
from this document. Past or present performance is not an
indicator of future results.
Operating and
Financial Highlights as of December 31, 2019 |
Operating
- Terrafina closed with a 100% renewal rate in the fourth
quarter of 2019.
- As of December 31, 2019, the occupancy
rate was 96.5%, a 117 basis point increase compared to the fourth
quarter of 2018 (4Q18).
- Annualized average leasing rate per square foot at the
year-end was US$5.19, a 1.0% or US$0.04 increase
compared to 4Q18.
- At the end of 2019, Terrafina reported a total of 42.3
million square feet (msf) of Gross Leasable Area (GLA) comprised of
289 properties and 296 tenants.
- 2019 leasing activity reached a new record-high that
totaled 10.9 msf, of which 23.3%
corresponded to new leases, 38.2% to lease
renewals and 38.5% to early renewals. Leasing
activity was concentrated in the Chihuahua, Ciudad Juarez, Ramos
Arizpe, San Luis Potosi, Aguascalientes, Villahermosa, Cuautitlan
Izcalli, Monterrey, Puebla, Queretaro, Guadalajara, Silao,
Irapuato, Saltillo, Tijuana, Toluca, Reynosa, Arteaga, Celaya,
Apodaca, Huehuetoca, Hermosillo and Camargo markets.
Financial
- FY2019 rental revenues reached US$191.1 million, of
which US$48.3 million were generated during 4Q19, a 0.7% or US$40.3
million increase compared to 4Q18.
- FY2019 NOI was US$190.2 million, of which US$48.0
million was generated during 4Q19, the same result compared with
4Q18.
- The NOI margin reached 92.4% in FY2019 and 94.1% in
4Q19, a 78 basis point increase compared to
4Q18.
- FY2019 EBITDA reached US$169.9 million, of which
US$42.5 million was generated in 4Q19, a decrease of 0.5% or US$0.2
million compared to 4Q18.
- The EBITDA margin for FY2019 was 82.5%
and 83.4% for 4Q19, a 28 basis point increase
compared to 4Q18.
- FY2019 adjusted funds for operations (AFFO) reached
US$103.6 million, of which US$25.8 million was
generated in 4Q19, a decrease of 24.0% or US$0.5 million compared
to 4Q18.
- The AFFO margin was 49.8% for 2019 and 50.1% in 4Q19, a
74 basis point decrease compared to 4Q18.
- Total distribution for FY2019 were US$103.6 million;
distributions per CBFI were US$0.1310. Considering the average
share price for 2019 of US$1.54 (Ps.29.65), Terrafina’s dividend
yield for the year was 8.5%.
- 4Q19 distributions totaled US$25.8 million.
As a result, Terrafina will distribute
Ps.0.6316 per CBFI (US$0.0328 per CBFI) for the October 1 to
December 31, 2019 period; considering the average share price of
US$1.63 for 4Q19 (Ps.31.52), Terrafina’s dividend yield for the
quarter was 8.0%.
About Terrafina Terrafina (BMV:TERRA13) is a
Mexican real estate investment trust formed primarily to acquire,
develop, lease and manage industrial real estate properties in
Mexico. Terrafina’s portfolio consists of attractive, strategically
located warehouses and other light manufacturing properties
throughout the Central, Bajio and Northern regions of Mexico. It is
internally managed by highly-qualified industry specialists and
externally advised by PGIM Real Estate.
Terrafina owns 300 real estate properties,
including 289 developed industrial facilities with a collective GLA
of approximately 42.3 million square feet and 11 land reserve
parcels, designed to preserve the organic growth capability of the
portfolio.
Terrafina’s objective is to provide attractive
risk-adjusted returns for the holders of its certificates through
stable distributions and capital appreciations. Terrafina aims to
achieve this objective through a successful performance of its
industrial real estate and complementary properties, strategic
acquisitions, access to a high level of institutional support, and
to its management and corporate governance structure. For more
information, please visit www.terrafina.mx
About PGIM Real Estate PGIM,
the global investment management business of Prudential Financial,
Inc. (NYSE: PRU), is one of the largest real estate investment
managers in the world, with more than $US175.9 billion1 in gross
real estate assets under management and administration, as of 30
September 2019. Through its PGIM Real Estate and PGIM Real Estate
Finance businesses, PGIM leverages a 140-year history of real
estate lending on behalf of institutional and middle-market
borrowers2, a 49-year legacy of investing in commercial real estate
on behalf of institutional investors, and the deep local knowledge
and expertise of professionals in 31 cities around the world.
PGIM Real Estate, the real estate investment
management business of PGIM, has been redefining the real estate
investing landscape since 1970. Combining insights into
macroeconomic trends and global real estate markets with excellence
of execution and risk management, PGIM Real Estate’s tenured team
offers to its global clients a broad range of real estate equity,
debt, and securities investment strategies that span the
risk-return spectrum and geographies. For more information, visit
pgimrealestate.com.
(1) AUA equals $US36.0 billion.(2) Includes
legacy lending through PGIM’s parent company, Prudential Financial,
Inc.
About Prudential Financial, Inc.Prudential
Financial, Inc. (NYSE:PRU), a financial services leader with more
than US$1.6 trillion of assets under management as of December 31,
2019, has operations in the United States, Asia, Europe, and Latin
America. Prudential’s diverse and talented employees are committed
to helping individual and institutional customers grow and protect
their wealth through a variety of products and services, including
life insurance, annuities, retirement-related services, mutual
funds and investment management. In the U.S., Prudential’s iconic
Rock symbol has stood for strength, stability, expertise and
innovation for more than a century. For more information, please
visit www.news.prudential.com
Forward Looking StatementsThis document may
include forward-looking statements that may imply risks and
uncertainties. Terms such as "estimate", "project", "plan",
"believe", "expect", "anticipate", "intend", and other similar
expressions could be construed as previsions or estimates.
Terrafina warns readers that declarations and estimates mentioned
in this document, or realized by Terrafina’s management imply risks
and uncertainties that could change in function of various factors
that are out of Terrafina’s control. Future expectations reflect
Terrafina’s judgment at the date of this document. Terrafina
reserves the right or obligation to update the information
contained in this document or derived from this document. Past or
present performance is not an indicator of future results.
Terrafina(BMV: TERRA13)Cordially invites you to
participate in its Fourth Quarter 2019 Conference Call
Friday, February 28, 202011:00 a.m. Eastern
Time10:00 a.m. Central Time
***To access the call, please
dial:from within the U.S. +1-877-407-8031from outside the
U.S. +1-201-689-8031from Mexico (toll free) 01-800-522-0034
Audio Webcast Link:
https://www.webcaster4.com/Webcast/Page/2133/32818
To access the conference replay
please dial:U.S. +1-877-481-4010International (outside the
US) +1-919-882-2331Passcode: 53757
For the full version of this report please
visit: www.terrafina.mx under the Investors section or
contact:
Francisco Martinez, IRO Terrafina Tel: +52 (55) 5279-8107
Correo: francisco.martinez@terrafina.mx
Ana María Ybarra Miranda IR Tel: +52 1 (55) 3660-4037
Correo: ana.ybarra@miranda-ir.com
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