MONTERREY, Mexico--(EON: Enhanced Online News)--Deutsche Bank Mexico, S.A., Institución de Banca Múltiple, Trust Division F/1616 or Fibra Inn (BMV: FINN13) (“Fibra Inn” or “the Company”), the Mexican real estate investment trust internally managed and specialized in the hotel industry serving the business traveler with global brands, today announced its non-audited fourth quarter results for the period ended December 31, 2016 (“4Q16”) and Full Year 2016 (“2016”). These results were prepared in accordance with International Financial Reporting Standards (“IFRS”) and are stated in nominal Mexican pesos (Ps.).
2016 Full Year Financial Highlights:
- Total Revenue: reached Ps. 1,797.6 million, an increase of 37.2% versus full year 2015.
- NOI1: Ps. 659.5 million, an increase of 36.6% compared to the prior year. This represented a 36.7% margin; 20 basis points lower than the 36.9% NOI margin reported in 2015.
- Adjusted EBITDA2: reached Ps. 560.9 million, a 38.4% increase. The 31.2% margin was 30 basis points above the 30.9% reported in the prior year.
- FFO3: Ps. 439.2 million, an 11.5% increase, which is equivalent to a 24.4% margin, 5.7 pp below the 30.1% reported in 2015.
- Distributions to Holders4: Ps. 418.1 million, a 23.7% increase compared to Ps. 338.1 million in 2015. Distribution per CBFI was equivalent to Ps. 0.9501. This represented an annualized dividend yield of 8.3%, the highest dividend yield recorded in the Company’s history.
4Q16 Financial Highlights:
- Fibra Inn concluded the quarter with 43 hotels under operation: 7,113 rooms, of which 234 are under construction and 166 are being renovated. Fibra Inn currently invests in two properties under the Strategic Hotel Acquisition Model that will add 430 rooms.
- Total Revenue: reached Ps. 472.1 million, of which 94.9% were from room revenues and 5.1% were from rental revenues, for a total increase of 28.3% compared to 4Q15.
- NOI1: Ps. 162.1 million, an increase of 17.2% compared to the Ps. 138.3 million reported in 4Q15; NOI margin was 34.3%.
- Adjusted EBITDA2: Ps. 132.8 million, an 8.0% increase compared to the Ps. 123.0 million in 4Q15.
- Net Income: Ps. 23.9 million, or 5.1% net margin.
- FFO3: Ps. 103.5 million, or 21.9% FFO margin.
- Distributions to Holders4: Ps. 111.0 million, a 20.1% increase compared to Ps. 92.4 million in 4Q15. Distributions per CBFI were equivalent to Ps. 0.2523. This represented an annualized dividend yield of 8.8% in 4Q16, and is 276 basis points (“bps”) higher than the 4Q15 figure. Both the distribution and the dividend yield were the highest recorded in the Company’s history.
Same-Store Sales for the 41 comparable hotels:
- Room revenues: Ps. 425.8 million; an increase of 14.2% vs. Ps. 372.9 million in 4Q15.
- Occupancy: 60.4%, 3.7 pp higher than the figure reported in 4Q15. Excluding the addition of rooms, occupancy was 60.6%.
- Average Daily Rate (“ADR”): reached Ps. 1,186.0; an increase of 6.9% and the highest average daily rate reported in the history of Fibra Inn.
- Revenue per Available Room (“RevPAR”): Reached a record Ps. 716.6, or a 13.8% increase. Excluding the addition of rooms, RevPAR increased by 14.2%.
Total Revenues for the 43 hotels in operation:
- Rental revenues: Ps. 448.2 million; an increase of 29.8% vs. Ps. 345.3 million in 4Q15.
- Occupancy: 59.1%; 2.8 percentage points (“pp”) higher versus the 56.3% in 4Q15.
- Average Daily Rate: Ps. 1,198.0; an increase of 7.2%.
- Revenue per Available Room (RevPAR): Ps. 708.2, a 12.6% increase vs. Ps. 629.3 in 4Q15.
Oscar Calvillo, Chief Executive Officer of Fibra Inn, stated: “Fibra Inn continued to demonstrate solid operating indicators with annual results that are in line with the guidance. Once again, during the quarter we were able to reach the highest distributions per CBFI and the highest dividend yields in the history of Fibra Inn, at Ps. 0.2523 per CBFI and 8.8%, respectively.
With the recent debt re-initiation of FINN 15 as well as the cancellation of the bank loan, Fibra Inn was able to place a more efficient cost of debt in a longer term. The internalization process related to advisory services was successfully carried out, making us the first public FIBRA that is in line with investor interests in this environment. The approval of the Share Repurchase Program, which we expect to have fully operating in the first quarter of 2017, will allow us to have an additional tool for adding shareholder value.
It is important to mention that we are analyzing various alternatives in order to rebalance the portfolio that will allow us to reach higher value generation. The current book value of our hotel assets is not reflected in the CBFI price. Under the current market circumstances, the individual value of the hotels outside of the portfolio could be higher than the price assigned to the asset by the market within the portfolio. As such, we are working on various possibilities for selling some of the assets in order to take advantage of the revenue from these transactions. Additionally, this can help us generate additional value based on where we choose to allocate these resources.”
1 NOI is the calculation of the Fibra’s revenue (rent and other revenue) minus operating expenses for administration, maintenance, lodging, utilities, fees, royalties, marketing and promotion, as well as property tax and insurance.
2 Adjusted EBITDA excludes acquisition and organization expenses.
3 FFO is calculated as the Adjusted EBITDA plus interest gain less interest expense and foreign exchange rate.
4 Calculated using 440,019,542 CBFIs outstanding on December 31, 2016. Yield is based on a Ps. 11.41 per CBFI.
About the Company
Fibra Inn is a Mexican trust formed primarily to acquire, develop and rent a broad range of hotel properties in Mexico aimed at the business traveler. The Company has signed franchise, license and brand usage agreements with international hotel brands for the operation of global brands as well as the operation of national brands. Additionally, the Company has development agreements. These hotels enjoy some of the industry’s top loyalty programs. Fibra Inn trades its Real Estate Certificates (Certificados Bursátiles Fiduciarios Inmobiliarios or “CBFIs”) on the Mexican Stock Exchange under the ticker symbol “FINN13”; its ADRs trade on the OTC market in the U.S. under the ticker symbol “DFBRY”.
For more information, please visit: www.fibrainn.mx