AFFO per Certificate Increases 19.1%
YoY
FIBRA Macquarie México (FIBRAMQ) (BMV: FIBRAMQ), owner of one of
the largest portfolios of industrial and retail/office property in
Mexico, announced its financial and operating results for the
quarter ended June 30, 2016.
HIGHLIGHTS
- Generated AFFO per certificate of Ps
0.4871, a 19.1% increase from the prior comparable period
- Achieved overall occupancy of 93.0%, a
record for FIBRAMQ
- Completed 2.25 million square feet of
industrial leasing
- Delivered 6,800 square meter shell to
Fábricas de Francia at the Tecamac retail center
- Successfully refinanced US$717 million
of debt
- Declared a distribution of Ps 0.4400
per certificate, representing a 15.8% increase over the prior
corresponding period
“FIBRA Macquarie delivered another successful quarter of
financial and operating results, demonstrating the team’s
commitment to delivering on our initiatives, and highlighting the
benefits of our internal property management platform. Our
considerable leasing activity should enhance both our cash flow and
ability to support a strong and sustainable distribution policy,”
said Juan Monroy, FIBRA Macquarie’s chief executive officer. “In
addition, we enhanced our financial flexibility by converting our
secured debt to a predominately unsecured structure while extending
our weighted average maturity and diversifying our capital sources.
Our operational excellence, coupled with our improved
capitalization, positions FIBRA Macquarie to continue delivering
value for investors.”
FINANCIAL RESULTS
For the quarter ended June 30, 2016, FIBRAMQ reported:
- Earnings before interest, tax,
depreciation and amortization (EBITDA) of Ps 677.5 million,
compared to Ps 553.7 million for the same period in 2015
- Funds from operations (FFO) of Ps 461.8
million, or Ps 0.5692 per certificate, compared to Ps 389.9
million, or Ps 0.4805 per certificate, for the same period in
2015
- Adjusted funds from operations (AFFO)
of Ps 395.2 million, or Ps 0.4871 per certificate, compared to Ps
331.8 million, or Ps 0.4090 per certificate, for the same period in
2015
For the six months ended June 30, 2016, FIBRAMQ reported:
- EBITDA of Ps 1,357.3 million, compared
to Ps 1,037.1 million for the same period in 2015
- FFO of Ps 928.1 million, or Ps 1.1439
per certificate, compared to Ps 728.4 million, or Ps 0.8977 per
certificate, for the same period in 2015
- AFFO of Ps 804.1 million, or Ps 0.9911
per certificate, compared to Ps 614.1 million, or Ps 0.7569 per
certificate, for the same period in 2015
OPERATING RESULTS
FIBRAMQ’s total portfolio results were as follows:
TOTAL PORTFOLIO
2Q16 2Q15
Variance 1H16
1H15 Variance Net
Operating Income (NOI) Ps 733.1m Ps 611.8m 19.8% Ps 1,472.2m Ps
1,157.6m 27.1% FFO Ps 461.8m Ps 389.9m 18.5% Ps 928.1m Ps 728.4m
27.4% AFFO Ps 395.2m Ps 331.8m 19.1% Ps 804.1m Ps 614.1m 30.9% GLA
(’000s sqm) EOP 3,436 3,162 8.7% 3,436 3,162 8.7% Occupancy EOP
93.0%
90.9% 210 bps
93.0% 90.9% 210 bps
FIBRAMQ’s same store portfolio results were as follows:
TOTAL PORTFOLIO - SAME STORE
2Q16 2Q15
Variance Net Operating Income Ps 690.3m Ps
611.8m 12.8% GLA (’000s sqm) EOP 3,168 3,162 0.2% Occupancy EOP
92.7% 90.9% 180 bps Retention (LTM) 71% 77% -7.7% Weighted average
lease term (years) 3.8
3.9 -3.1%
Note: GLA in FIBRAMQ’s same store
portfolio includes expansions completed at same store sites.
Industrial Portfolio
The following table summarizes the results of operations for the
industrial segment during the quarter ended June 30, 2016.
2Q16
2Q15 Variance Net
Operating Income Ps 599.4m Ps 479.9m 24.9% GLA (’000s sqft) EOP
32,192 29,248 10.1% GLA (’000s sqm) EOP 2,991 2,717 10.1% Occupancy
EOP 92.6% 90.3% 230 bps Average monthly rent per leased sqm (US$)
$4.43 $4.51 -1.8% Retention (LTM) 69% 77% -800 bps Weighted average
lease term (years) 3.4
3.3 3.0%
The industrial portfolio occupancy rate at the end of the second
quarter was 92.6 percent, up 230 basis points over the prior
comparable period and up 100 basis points sequentially, raising the
industrial portfolio occupancy level to the highest since FIBRAMQ´s
inception in 2012.
FIBRAMQ’s “Customer First” initiative, an internal program to
develop best practices in customer service, continues to be
successful. The internal leasing team has been able to lease 4.3
million square feet in new and renewed leases, comfortably
exceeding the 1.3 million square feet of move outs that have
occurred year-to-date. During the second quarter, FIBRAMQ signed 13
new leases totaling 794 thousand square feet. The average lease
term increased to 3.4 years. In addition, FIBRAMQ completed 12
lease renewals, for 754 thousand square feet of GLA. The strong
leasing performance was somewhat offset by move outs due primarily
to tenant-specific conditions, resulting in a 69 percent retention
rate over the last twelve months.
Notable new leases included a 353 thousand square foot lease
with an international logistics company across two buildings in
Monterrey totaling 238 thousand square feet and one in Puebla
totaling 114 thousand square feet. Additionally, FIBRAMQ renovated
and leased a 114 thousand square foot building in Ciudad Juarez to
an industrial packaging manufacturer. FIBRAMQ also leased 84
thousand square feet to a plastic injection molding manufacturer in
Querétaro. Leasing for the third quarter of 2016 is expected to be
challenging with 1.2 million square feet of leases expiring during
what has traditionally been the quietest quarter of the year.
Active asset management resulted in the recent announcement of
the expansion of Belden de Sonora’s industrial facility in Nogales,
Sonora by approximately 55 percent, or 215 thousand square feet.
The lease, which has been extended for an additional 10 years to
2026, now totals 607 thousand square feet. The expansion is
expected to be completed by the end of 2016. Year-to-date, FIBRAMQ
has completed over 54,000 square feet of pre-leased,
value-accretive expansions.
Retail/Office Portfolio
The following table summarizes the results of operations for the
retail/office segment during the quarter ended June 30, 2016.
2Q16
2Q15 Variance Net
Operating Income Ps 133.8m Ps 131.9m 1.4% GLA (’000 sqm) 445 445
0.0% Occupancy 95.2% 94.4% 80 bps Average monthly rent per leased
sqm (Ps) Ps 143.47 Ps 141.95 1.1% Retention (LTM) 77% 80% -300 bps
Weighted Average Lease Term (years)
5.5 5.5
0.0%
At the end of the quarter, the portfolio was 95.2% occupied,
consistent with the prior quarter but up 80 bps on the comparable
period. FIBRAMQ continues to make meaningful strides on development
and expansion efforts in its retail/office portfolio.
Construction of Fábricas de Francia’s two new retail stores will
expand retail GLA by 11,700 square meters. FIBRAMQ delivered a
6,800 square meter shell building to Fábricas de Francia in Tecamac
in May 2016 for an expected store opening, and lease income
generation, by the end of the fourth quarter of 2016. An additional
1,200 square meters has also been constructed as part of this
project and is being, or expected to be, leased to other high
quality tenants. Leasing of this space is proceeding well with
interest from several high quality tenants.
In addition, FIBRAMQ signed its first lease for 372 square
meters in its newly expanded office area which repurposed
underutilized space in City Shops Valle Dorado. Construction of the
new space is expected to be completed in the third quarter. FIBRAMQ
also expects to deliver a new 6,254 square meter space to Fábricas
de Francia at Tuxtepec during the third quarter of 2016. The
delivery of this space involved the construction of a 3,800 square
meter expansion.
PORTFOLIO ACTIVITY
FIBRAMQ continues to evaluate accretive acquisitions of high
quality industrial and retail/office assets in core markets across
Mexico. In addition, it continues to focus on investing in
expansions or redevelopment of existing properties as well as
pursuing a select number of development opportunities driven by
tenant requirements and market dynamics.
BALANCE SHEET AND CAPITAL MARKETS ACTIVITY
As previously announced, FIBRAMQ successfully achieved its
strategic objective of transitioning to a predominately unsecured
capital structure during the second quarter. On June 30, 2016,
FIBRAMQ retired US$717 million of secured financing that was due to
mature in December 2017 with a combination of unsecured debt
totaling US$655 million and US$62 million of cash on hand.
Its US$685 million of unsecured debt is comprised of:
- US$250 million of unsecured notes
- US$220 million non-amortizing term
loan, and
- US$183 million drawn under a revolving
credit facility with US$32 million available to draw.
The new and remaining debt carries a weighted average interest
rate of 5.16%, similar to that before the secured debt was retired,
but importantly, the weighted average maturity has extended to 4.2
years from 1.4 years. The financing has also diversified the types
of debt instruments used as well as FIBRAMQ’s sources of debt,
which includes participation from local and international money
center banks as well as US-based insurance companies.
As of June 30, 2016, FIBRAMQ had approximately Ps. 17.5 billion
of debt outstanding. FIBRAMQ had Ps. 752.9 million of unrestricted
cash on hand and Ps. 594.8 million available on its credit
facility. A large portion of this cash is anticipated to fund
quarterly cash distributions.
FIBRAMQ’s CNBV regulatory debt to total asset ratio was 39.1%
and the DSCR ratio was 1.4x.
FIBRAMQ is evaluating opportunities to repay amounts outstanding
under the revolving credit facility and other upcoming secured debt
maturities, and to further increase liquidity.
DISTRIBUTION
On July 27, 2016, FIBRAMQ declared a cash distribution for the
quarter ended June 30, 2016, of Ps. 0.4400 per certificate. The
distribution is expected to be paid on August 10, 2016 to holders
of record on August 9, 2016. FIBRAMQ’s certificates will commence
trading ex-distribution on August 5, 2016. The distribution of
Ps.0.4400 per certificate reflects a 15.8% increase over the second
quarter of 2015 and an AFFO payout ratio of 90.3% for the second
quarter.
FIBRAMQ re-affirms its annual distribution guidance of between
Ps.1.74 and 1.84 per certificate. Subsequent distributions in 2016
are expected to remain broadly in line with the second quarter.
WEBCAST AND CONFERENCE CALL
FIBRAMQ will host an earnings conference call and webcast
presentation on Thursday, July 28, 2016 at 7:30 a.m. CT / 8:30 a.m.
ET.
The conference call, which will also be audio webcast, can be
accessed online at www.fibramacquarie.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 2016 Earnings Call.
An audio replay will be available by dialing +1-855-859-2056 or
+1-404-537-3406 for callers outside the United States. The passcode
for the replay is 45902215. A webcast archive of the conference
call and a copy of FIBRAMQ’s financial information for the second
quarter 2016 will also be available on FIBRAMQ’s website,
http://www.fibramacquarie.com.
ADDITIONAL INFORMATION
For detailed charts, tables and definitions, please refer to the
Second Quarter 2016 Supplementary Information materials located at
http://www.fibramacquarie.com/investors/bolsa-mexicana-de-valoresfilings.
About FIBRA Macquarie
FIBRA Macquarie México (FIBRAMQ) (BMV:FIBRAMQ) is a real estate
investment trust (fideicomiso de inversión en bienes raíces), 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. FIBRAMQ’s portfolio consists of 277
industrial properties and 17 retail/office properties, located in
24 cities across 19 Mexican states as of June 30, 2016. Nine of the
retail/office properties are held through a 50/50 joint venture
with Grupo Frisa. FIBRAMQ 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 FIBRAMQ, please visit
http://www.fibramacquarie.com.
Macquarie Infrastructure and Real Assets 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. Macquarie
Infrastructure and Real Assets has significant expertise over the
entire investment lifecycle, with capabilities in investment
sourcing, investment management, investment realization and
investor relations. Established in 1996, Macquarie Infrastructure
and Real Assets has approximately US$104.6 billion of total assets
under management as of March 31, 2016.
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 14,400 people and has assets under management of $367
billion (as of March 31, 2016). For more information, please visit
http://www.macquarie.com.
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 and we undertake no obligation to update
any 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.
FIBRA MACQUARIE MÉXICO AND ITS CONTROLLED ENTITIES
CONDENSED INTERIM CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION AS AT JUNE 30, 2016 (UNAUDITED)
AND DECEMBER 31, 2015
CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF
MEXICAN PESOS (UNLESS OTHERWISE STATED)
Jun 30, 2016 Dec 31, 2015
$’000 $’000
Current assets Cash and cash equivalents
719,631
2,223,294 Restricted cash
9,928 9,033 Trade and other
receivables, net
108,077 102,431 Value added tax receivable
96,875 287,020 Other assets
149,221 96,422
Total
current assets 1,083,732 2,718,200
Non-current
assets Restricted cash
49,366 162,099 Other assets
158,970 132,854 Equity-accounted investees
1,020,806
959,363 Goodwill
931,605 931,605 Investment properties
39,188,212 35,639,298
Total non-current assets
41,348,959 37,825,219
Total assets
42,432,691 40,543,419
Current liabilities
Trade and other payables
423,776 350,300 Interest-bearing
liabilities
939,009 937,621 Tenant deposits
20,545
18,925
Total current liabilities 1,383,330 1,306,846
Non-current liabilities Tenant deposits
333,077
306,804 Interest-bearing liabilities
15,658,768 15,409,369
Total non-current liabilities 15,991,845
15,716,173
Total liabilities 17,375,175
17,023,019
Net assets
25,057,516 23,520,400 Equity Contributed equity
18,369,994 18,369,994 Retained earnings
6,687,522 5,150,406
Total equity
25,057,516 23,520,400 FIBRA MACQUARIE MÉXICO
AND ITS CONTROLLED ENTITIES
CONDENSED UNAUDITED INTERIM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE AND
SIX MONTHS ENDED JUNE 30, 2016 AND 2015
CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF
MEXICAN PESOS (UNLESS OTHERWISE STATED)
3 months ended 6 months ended
Jun
30,2016 Jun 30,2015
Jun 30,2016 Jun
30,2015
$’000 $’000
$’000 $’000 Property
related income
800,093 656,892
1,637,211 1,267,015
Property related expenses
(116,150) (86,268)
(253,506) (193,197) Net property
income
683,943 570,624
1,383,705 1,073,818 Management fees
(44,499)
(49,608)
(90,586) (101,352) Transaction related expenses
(15,553) (3,305)
(15,507) (8,853) Professional, legal
and other expenses
(11,104)
(8,656)
(24,230) (19,133) Total expenses
(71,156) (61,569)
(130,323) (129,338)
Finance costs
(261,146) (186,369)
(479,371)
(367,165) Financial income
14,128 31,103
26,586
74,959 Share of profits from equity-accounted investees
48,557 15,175
60,618 29,285 Foreign exchange loss
(1,257,206) (361,043)
(1,414,558) (740,696) Net
unrealized foreign exchange gain on foreign currency denominated
investment property measured at fair value
2,507,125 626,947
2,806,397 1,278,038 Unrealized revaluation gain on
investment property measured at fair value
14,712 -
14,712 - Income tax expense
(423) -
(423) -
Profit for the period
1,678,534 634,868
2,267,343
1,218,901 Other comprehensive income Other comprehensive
income for the period
- -
- -
Total comprehensive income for the period
1,678,534 634,868
2,267,343
1,218,901
Earnings per CBFI* Basic earnings per CBFI (pesos)
2.07 0.78
2.79 1.50 Diluted earnings per CBFI (pesos)
2.07 0.78
2.79 1.50 *Real
Estate Trust Certificates (Certificados Bursátiles Fiduciarios
Inmobiliarios) FIBRA MACQUARIE MÉXICO AND ITS
CONTROLLED ENTITIES CONDENSED UNAUDITED INTERIM CONSOLIDATED
STATEMENTS OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED JUNE 30,
2016 AND 2015
CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF
MEXICAN PESOS (UNLESS OTHERWISE STATED)
Contributed Retained equity earnings Total $’000 $’000 $’000
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: - Cost 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 Total
equity at January 1, 2016
18,369,994 5,150,406
23,520,400 Total comprehensive income for the period
- 2,267,343 2,267,343 Total comprehensive
income for the period - 2,267,343
2,267,343 Transactions with equity holders in their
capacity as equity holders: - Distributions to CBFI holders
- (730,227) (730,227) Total transactions
with equity holders in their capacity as equity holders
- (730,227) (730,227)
Total equity at June 30, 2016
18,369,994 6,687,522 25,057,516 FIBRA
MACQUARIE MÉXICO AND ITS CONTROLLED ENTITIES
CONDENSED UNAUDITED INTERIM
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE
30, 2016 AND 2015
CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF
MEXICAN PESOS (UNLESS OTHERWISE STATED)
6 months ended Jun 30, 2016 Jun 30,
2015
$’000 $’000
Inflows/(Outflows)
Inflows/(Outflows)
Operating activities: Profit for the
period
2,267,343 1,218,901 Adjustments for: Net unrealized
foreign exchange gain on foreign currency denominated investment
property measured at fair value
(2,806,397) (1,278,038)
Unrealized revaluation gain on investment property measured at fair
value
(14,712) - Straight line rental income adjustment
(22,262) (29,606) Tenant improvements amortization
10,867 6,041 Leasing expense amortization
15,917
14,838 Financial income
(26,586) (74,959) Provision for bad
debt
19,049 17,726 Net foreign exchange loss
1,546,507 762,767 Finance costs recognized in profit for the
period
479,372 367,165 Share of profits from
equity-accounted investees
(60,618) (29,285) Income tax
expense
423 -
Movements in working capital: Decrease
in receivables
108,701 85,813 Increase/(decrease) in
payables
188,467 (16,083)
Net cash flows from operating
activities 1,706,071 1,045,280
Investing
activities: Investment property - asset acquisitions
(396,408) (1,072,155) Maintenance capital expenditure and
other capitalized costs
(277,273) - Distributions received
from equity-accounted investees
- 21,372 Investment in
equity-accounted investees
(825) -
Net cash flows used in
investing activities (674,506) (1,050,783)
Financing
activities: Financial income
26,586 74,959 Repayment of
interest-bearing liabilities
(13,551,963) - Interest paid
(480,282) (341,350) Proceeds from interest-bearing
liabilities, net of facility charges
12,220,770 - Capital
raising costs (follow-on equity placement)
- (29,445)
Distributions to CBFI holders
(730,227) (581,376)
Net
cash flows used in financing activities (2,515,116)
(877,212) Net decrease in cash and cash equivalents
(1,483,551) (882,715) Cash, cash equivalents at the
beginning of the period
2,394,426 5 ,603,834 Foreign
exchange gain on cash and cash equivalents
(131,950) (22,071)
Cash and cash equivalents at the end
of the period* 778,925 4,699,048 *Included
in the cash and cash equivalent balance at the end of the period is
restricted cash of $59.3 million (June 30, 2015: $177.6 million).
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160727006684/en/
Investor Relations:FIBRA Macquarie México+52 (55) 9178
7763fibramq@macquarie.comorJay Davis, +1
212-231-1825jay.davis@macquarie.comorICREvelyn Infurna, +1
203-682-8265orNikki Saks, +1 203-682-8263orFor press
queries:CarralSierra PR & Strategic CommunicationsJose
Manuel SierraTel: +52 (55) 5286 0793Cell: +52 1 (55) 5105
5907jmsierra@carralsierra.com.mxorSonia FigueroaTel: +52
(55) 6273 6363 / 4195 6727Cell: +52 1 (55) 55 6111
8599sfigueroa@carralsierra.com.mx
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