Terrafina First Quarter 2018 Earnings Report

MEXICO CITY--()--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 first quarter 2018 (1Q18) 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 March 31, 2018

Operating

  • As of March 31, 2018, the occupancy rate was 95.2%, a 26 basis point increase compared to the first quarter of 2017 (1Q17). Additionally, considering signed letters of intent (LOI), occupancy for 1Q18 was 95.6%.
  • Annualized average leasing rate per square foot at 1Q18 was US$5.06, a US$0.10 increase compared to 1Q17.
  • Terrafina reported a total of 40.6 million square feet (msf) of Gross Leasable Area (GLA) comprised of 284 properties and 296 tenants in 1Q18.
  • 1Q18 leasing activity totaled 2.7 msf, of which 11.3% corresponded to new leases, 73.2% to lease renewals and 15.4% to early renewals. Leasing activity was mainly concentrated in the Chihuahua, Ciudad Juarez, Saltillo, Toluca, Monterrey, Puebla, Silao and Cuautitlan Izcalli markets.

Financial

  • 1Q18 rental revenues reached US$47.4 million, a 17.6% or US$7.1 million increase compared to 1Q17.
  • 1Q18 NOI was US$46.0 million, a 16.3% or US$6.4 million increase compared to 1Q17.
  • The NOI margin reached 87.3%, a 54 basis point decrease compared to 1Q17.
  • 1Q18 EBITDA reached US$41.3 million, an increase of 15.7% or US$5.6 million compared to 1Q17.
  • The EBITDA margin for 1Q18 was 78.4%, a 86 basis point decrease compared to 1Q17.
  • 1Q18 adjusted funds for operations (AFFO) reached US$26.9 million, an increase of 22.0% or US$4.8 million compared to 1Q17.
  • The AFFO margin for 1Q18 was 50.7%, a 198 basis point increase compared to 1Q17.
  • 1Q18 distributions totaled US$26.9 million. As a result, Terrafina will distribute Ps.0.6386 per CBFI (US$0.0340 per CBFI) for distributions corresponding to the January 1 to March 31, 2018 period.
  • The annualized distribution of 1Q18 was US$0.1362; considering the average share price for the quarter of US$1.53 (Ps.28.68), Terrafina’s dividend yield for the quarter was 8.9%.

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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