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Terrafina Third Quarter 2017 Earnings Report

MEXICO CITY--(BUSINESS WIRE)-- 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, today announced its third quarter 2017 (3Q17) earnings results.

The figures in this report have been prepared in accordance with International Financial Reporting Standards (“IFRS”). Figures presented in this report are presented in millions of Mexican pesos and millions of U.S. dollars, unless otherwise stated. Additionally, figures may vary due to rounding. Terrafina’s financial results included in this report are unaudited. As a result, the mentioned figures in this financial report are preliminary figures and could be adjusted in the future.

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 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 to anticipate future performance.

Operating and Financial Highlights as of September 30, 2017

Operating

  • As of September 30, 2017, the occupancy rate was 95.1%, a 233 basis point increase compared to the third quarter of 2016 (3Q16). Additionally, considering signed letters of intent (LOI), occupancy for 3Q17 was 95.4%.
  • Annualized average leasing rate per square foot at 3Q17 was US$5.00, a US$0.10 increase compared to 3Q16.
  • Terrafina reported a total of 37.8 million square feet (msf) of Gross Leasable Area (GLA) comprised of 268 properties and 287 tenants in 3Q17.
  • 3Q17 leasing activity totaled 1.7 msf, of which 31.9% corresponded to new leases, 39.2% to lease renewals and 28.9% to early renewals. Leasing activity was mainly concentrated in the Chihuahua, Ciudad Juarez, San Luis Potosi, Tijuana, Monterrey, Toluca, Reynosa, Queretaro, Irapuato, Cuautitlan Izcalli and Ramos Arizpe markets.

Financial

  • 3Q17 rental revenues reached US$41.2 million, a 25.3% or US$8.3 million increase compared to 3Q16.
  • 3Q17 NOI was US$41.4 million, a 22.1% or US$7.5 million increase compared to 3Q16.
  • The NOI margin for 3Q17 reached 93.3%, a 104 basis point decline compared to 3Q16.
  • 3Q17 EBITDA reached US$37.2 million, an increase of 21.8% or US$6.7 million compared to 3Q16.
  • The EBITDA margin for 3Q17 was 83.7%, a 108 basis point decrease compared to 3Q16.
  • 3Q17 adjusted funds for operations (AFFO) reached US$23.0 million, an increase of 24.4% or US$4.5 million compared to 3Q16.
  • The AFFO margin for 3Q17 was 51.4%, a 158 basis point decline compared to 3Q16.
  • 3Q17 distributions totaled US$23.0 million. As a result, Terrafina will distribute Ps. 0.5188 per CBFI (US$0.0291 per CBFI) for distributions corresponding to the July 1 to September 30, 2017 period.
  • The annualized distribution for 3Q17 was US$0.1164; considering the average share price for the quarter of US$1.76 (Ps.31.29); Terrafina’s dividend yield for the quarter was 6.6%.

For access to the complete report, please visit our web site at www.terrafina.mx.

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 280 real estate properties, including 268 developed industrial facilities with a collective GLA of approximately 37.8 million square feet and 12 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.

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In Mexico City:
Terrafina
Francisco Martinez, +52 (55) 5279-8107
Investor Relations Officer
francisco.martinez@terrafina.mx

Source: Terrafina