Terrafina First Quarter 2017 Earnings Report

MEXICO CITY--()--Terrafina® (“TERRA”) (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 first quarter 2017 (1Q17) 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.

Financial and Operating Highlights as of March 31, 2017

Operating

  • As of March 31, 2017, the occupancy rate was 94.9%, a 160 basis point increase compared to the first quarter of 2016 (1Q16). Additionally, considering signed letters of intent (LOI), occupancy for 1Q17 was 95.1%.
  • Annualized average leasing rate per square foot at 1Q17 was US$4.96, a US$0.07 increase compared to 1Q16.
  • Terrafina reported a total of 36.5 million square feet (msf) of Gross Leasable Area (GLA) comprised of 272 properties and 279 tenants in 1Q17.
  • 1Q17 leasing activity totaled 1.6 msf, of which 34.2% corresponded to new leases, 56.7% to lease renewals and 9.1% to early renewals. Leasing activity was mainly concentrated in the Guadalajara, Ciudad Juarez, Chihuahua, Ramos Arizpe, Monterrey, Queretaro and Puebla markets.

Financial

  • 1Q17 rental revenues reached US$40.3 million, a 23.7% or US$7.7 million increase compared to 1Q17.
  • 1Q17 NOI was US$39.6 million, a 24.6% or US$7.8 million increase compared to 1Q16.
  • The NOI margin for 1Q17 reached 87.9%, a 85 basis point increase compared to 1Q16.
  • 1Q17 EBITDA reached US$35.7 million, an increase of 25.1% or US$7.2 million compared to 1Q16.
  • The EBITDA margin for 1Q17 was 79.2%, a 107 basis point increase compared to 1Q16.
  • 1Q17 adjusted funds for operations (AFFO) reached US$22.1 million, an increase of 33.2% or US$5.3 million compared to 1Q16.
  • The AFFO margin for 1Q17 was 48.7%, a 363 basis point increase compared to 1Q16.
  • 1Q17 distributions totaled US$22.1 million. As a result, Terrafina will distribute Ps. 0.7417 per CBFI (US$0.0364 per CBFI) for distributions corresponding to the January 1 to March 31, 2017 period.
  • The annualized distribution of 1Q17 was US$0.1454; considering the average share price for the quarter of US$1.41 (Ps.28.74), Terrafina’s dividend yield for the quarter was 10.3%.

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

Contacts

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

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