MEXICO CITY--(EON: Enhanced Online News)--Terrafina (”TERRA”) (BMV: TERRA13), a leading real estate investment trust [FIBRA] dedicated to the acquisition, development, lease and management of industrial real estate properties in Mexico, today announced its third quarter 2013 earnings results.
The figures in this report have been prepared in accordance with International Financial Reporting Standards (“IFRS”). All figures are expressed in millions of Mexican pesos unless otherwise indicated and they can vary due to rounding.
- On September 27, 2013, 85 properties were acquired for US$605 million from American Industries-Kimco, which account for 11 million square feet (msf) of Gross Leasable Area (GLA).
- Simultaneous to the portfolio acquisition, asset sales were completed totaling US$43 million.
- Net of assets sales, the portfolio was acquired for US$562 million and is expected to generate US$48 million of additional Net Operating Income (NOI), which will grow to US$49 million due to inflation adjustments.
- Occupancy rate increased from 85.7% to 88.6% quarter-on-quarter due to additional leasing activity and the American Industries – Kimco portfolio acquisition. Average leasing rate per square foot increased from US$4.62 to US$4.77, due to positive leasing spreads and the portfolio acquisition.
- Leasing activity for the quarter totaled 1.74 msf, of which 31% represents new leases and 69% lease renewals. Leasing activity mainly took place in the Ciudad Juárez, Cuautitlán Izcalli, Reynosa, Ciudad Acuña and Tijuana markets. Same-store occupancy rate increased 0.6% to 86.3% quarter-on-quarter.
- During the third quarter, Terrafina completed pre-leased expansions totaling 188 thousand square feet of GLA. In addition, Terrafina continued the expansion of 182 thousand square feet. Estimated annual NOI for these developments is US$1.3 million.
- As a result of the operating activity, Ps.0.3303 per CBFI will be paid as distributions for the three-month period from July 1st, 2013 to September 30, 2013.
For the complete report, please visit our website at http://www.terrafinafibra.mx/
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Comment by Alberto Chretin, Chief Executive Officer and Chairman of the Board
The third quarter of this year was particularly important for Terrafina as we completed the acquisition of American Industries – Kimco’s portfolio, a transaction which is already consolidated on our balance sheet, however the full impacts will be integrated during the fourth quarter’s income statement financial results.
We expect to close the year meeting or even exceeding our growth and profitability goals set at the beginning of our operations and we are confident that we are well positioned to successfully take advantage of additional growth opportunities in 2014.