4Q17 Quarterly Results Update Fideicomiso F/2157 FMTY14 1 - - PowerPoint PPT Presentation

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4Q17 Quarterly Results Update Fideicomiso F/2157 FMTY14 1 - - PowerPoint PPT Presentation

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February, 2018 4Q17 Quarterly Results Update Fideicomiso F/2157 FMTY14 1 Consistent Performance 1 Equity (3) Dividend Portfolio Guidance Dividend Year Properties States LTV (4) Yield (2) Value (3) (per share) (1) (per share) (1)

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February, 2018 4Q17 Quarterly Results Update Fideicomiso F/2157 – FMTY14

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Consistent Performance

1

Year Guidance

(per share) (1)

Dividend

(per share) (1)

Dividend Yield (2) Portfolio Value (3) Properties States Equity (3) Issuances LTV (4) 2015 0.75-0.80 0.8171 6.81% 4,537 22 5

  • 15.43%

2016 0.90-0.95 0.9611 8.01% 7,995 35 8 2,261 23.17% 2017 1.00-1.03 1.0333 8.61% 9,607 43 9 1,489 24.15% 2018 1.04 - 1.05 8.67% 8.75%

(1) Figures in Pesos per share (2) On an IPO Price per share of PS. 12.00 (3) Figures in millions of Pesos (4) As defined on Exhibit AA: (Loans + Interest Payable)/Total Assets

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Total Return Perfomance since IPO

1

Mexbol: The S&P/BMV IPC seeks to measure the performance of the largest and most liquid stocks listed on the Bolsa Mexicana de Valores. The constituents are weighted by modified market cap. UDITRAC: seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the inflation indexed sector of the Mexican government bods market, known as "Udibonos" market, as defined by the S&P/BMV Mexico Government 1+year UDIBONOS Index CETETRC: seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the short term Mexico Treasury market, known as "CETES" market, as defined by the S&P/BMV Mexico Government CETES Index M10TRAC: seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the intermediate term sector of the fixed rate Mexican government bonds market, also known as "BONOS M" market, as defined by the S&P/BMV Mexico Government 5-10 year MBONOS Index FRMEX: The S&P/BMV Fibras Index is designed to measure the largest and most liquid real estate investment trusts (REITs) listed on the Bolsa Mexicana de Valores. The constituents are weighted by their value traded subject to a 25% stock capping.

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  • Multi tenant, Class A, LEED certified office

building located in Guadalajara.

  • A total of 8,050 m2 of GLA.
  • Building is 64.7% leased with single net, peso-

denominated leases and a weighted average

term of 5.1 years in terms of income.

  • Purchase price will be between Ps. 308.0 and
  • Ps. 332.0 million to be paid as the building

continues to be leased-up.

  • In process of corporate restructuring or seller; first

installment will be of Ps. 214.4 million,

to be paid in 1H18.

  • Occupied space is expected to generate NOI of Ps. 18.8 million pesos.
  • Remaining space will be acquired at a 9.65% annual cap rate.

Recently Announced Acquisitions – Patria Building Highlights

2

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  • Zinc is a new industrial facility (build-to-suit) for the

relocation of an existing tenant of Fibra Mty.

  • The total GLA is of 18,000 m2, to be built on a

41,345 m2 site in the Santa Catarina corridor,

in Monterrey.

  • Total investment will be US $9.5 million, and it is

expected to generate annual NOI of US $0.8 million

  • Lease will be triple net (NNN), with an initial

term of 10 years after substantial completion

  • The property that is currently occupied by this

tenant, part of the initial portfolio, will be contributed or sold for commercial and/or corporate use.

  • We expect that the repositioning of this land will allow us to increase its value in at

least 25% in respect to its original acquisition cost. Recently Announced Acquisitions – Zinc Building Highlights

2

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Project Zinc – Repositioning Highlights

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CUPRUM US $220 per m2 CEN|333 US $350 - $450 per m2

New Cuprum Facility

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State of the Portfolio

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CUAUHTEMOC, CHIH 1,440

  • 19. Monza #4

1,440 LOS MOCHIS, SIN 7,985

  • 13. Casona #5

7,985 PARRAL, CHIH 5,888

  • 14. Casona #4

5,888 CHIHUAHUA, CHIH 27,010

  • 12. Casona #3

12,131

  • 16. Monza #1

8,478

  • 17. Monza #2

1,790

  • 21. Monza #5

4,611 DELICIAS, CHIH 1,971

  • 18. Monza #3

1,971 IRAPUATO, GTO 12,680

  • 10. Casona #1

5,951

  • 11. Casona #2

6,729 SALTILLO, COAH. 82,622

  • 24. Providencia #1

13,717

  • 25. Providencia #2

7,013

  • 26. Providencia #3

11,760

  • 27. Providencia #4

26,165

  • 28. Providencia #5

9,129

  • 29. Providencia #6

6,378

  • 30. Providencia #7

5,093

  • 31. Providencia #8

3,367 HUIXQUILUCAN, MEX 15,137

  • 32. Fortaleza

15,137 CIUDAD JUAREZ, CHIH 4,520 8. Cuadrante 4,520 GUADALAJARA, JAL 19,655

  • 34. Redwood

11,605 QUERETARO, QRO 21,897

  • 20. Santiago

16,497

  • 35. Catacha #2

5,400 MONTERREY, NL 239,828 1. OEP Torre 1 13,578 2. OEP Torre 2 18,007 3. OEP Plaza Central 13,295 4. CEN|333 Neoris 20,283 5. CEN|333 Axtel 12,937 6. CEN|333 Atento 3,532 7. Danfoss 30,580 9. Cuprum 17,261

  • 15. Catacha

5,431

  • 22. Prometeo

8,135

  • 23. Nico 1

43,272

  • 33. Ciénega

25,223

  • 43. Cuauhtémoc

10,294 SAN LUIS POTOSI, SLP. 89,951

  • 36. Huasteco #1

38,503

  • 37. Huasteco #2

15,728

  • 38. Huasteco #3

11,532

  • 39. Huasteco #4

5,750

  • 40. Huasteco #5

1,059

  • 41. Huasteco #6

3,380

  • 42. Huasteco #7

13,999

504,534 m2 of GLA 530,584 m2 of GLA*

* Includes undergoing acquisitions of Patria (44) and Zinc (45)

  • 44. Patria

8,050

Executed Undergoing

  • 45. Zinc

18,000

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State of the Portfolio – Quarterly Size Evolution

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132,698 172,365 207,541 220,287 220,287 348,899 364,036 406,264 404,289 494,240 504,534 504,534 5 10 15 20 25 30 35 40 45 50

Number of Properties

Size of the Portfolio (square meters of GLA)

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

* Does not include undergoing acquisitions of Patria (44) and Zinc (45)

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State of the Portfolio – Key Performance Indicators (as % of income)

3

54.0% 42.2% 3.8%

Asset Class

Office Industrial Retail

4.8% 5.9% 20.8% 16.0% 10.4% 8.0% 6.6% 0.1% 11.7% 4.7% 3.1% 0.0% 3.4% 0.6% 3.9% 4.8% 10.7% 31.5% 47.5% 57.9% 65.9% 72.5% 72.6% 84.3% 89.0% 92.1% 92.1% 95.5% 96.1% 100.0%

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

Lease Expiration Profile

Expiration Accumulated Weighted average remaining term of 5.5 years. More than 47% or income starts expiring in 2022 *

55.1% 12.3% 10.2% 7.2% 6.2% 9.0%

Location

NL SLP Coah Jal Chih Other

93.8% 6.2%

Occupancy

Leased Available

66.1% 33.9%

Currency

USD MXN

* Percentage of income could increase to approximately 60% once certain renewals under negotiation are executed.

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State of the Portfolio (major tenants and economic activity, as % of income)

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3.6% 3.6% 3.7% 3.8% 4.0% 4.7% 4.8% 4.8% 4.9% 5.7% Accenture Epicor Danfoss PWC Famsa Cemex Axtel Central Star Logistics Oracle Crisa

Major Tenants (43.6% of income)

3.1% 4.2% 4.8% 5.2% 6.8% 7.5% 11.9% 16.3% 17.6% 22.6% Logistics Electronics Communications Financial Services Other Consumer Products Services Automotive Technology Industrial

Economic Sectors

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* Source: CBRE Marketview Monterrey Office, 3Q 2017

  • 50,000

100,000 150,000 200,000 250,000 300,000 350,000 400,000 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017

Net Absorption Trends of Major Office Markets in Mexico

(last twelve months in square meters, linear trend)

Monterrey Mexico City Guadalajara

The office markets – net absorption trends

4

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Thousands of Pesos 4Q 2017 3Q 2017 Δ% / bps Number of Properties (1) 41 41

  • Gross Leasable Area (GLA) sqm

488,840 488,840

  • Occupancy Rate (GLA)

96.5% 96.5%

  • Same-Property Income

213,318 205,797 3.7% Same-Property Operating Expenses (25,781) (28,163) (8.5%) Same-Property Net Operating Income (NOI) 187,537 177,634 5.6% Same-Property NOI Margin 87.9% 86.3% 160 bps Income from acquisitions/construction 9,495 4,413 115.2% Operating Expenses from acquisitions/construction (97) (63) 54.0% NOI from acquisitions/construction 9,398 4,350 116.0% NOI Margin from acquisitions/construction 99.0% 98.6% 40 bps Total Fibra Mty Income 222,813 210,210 6.0% Total Operating Expenses (25,878) (28,226) (8.3%) Total NOI 196,935 181,984 8.2% Total NOI Margin 88.4% 86.6% 180 bps

Portfolio Performance – Same-Property

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(1) Same-Property comparison excludes Catacha 2 and Cuauhtémoc properties.

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NOI Margins – Benchmarks

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81.5% 94.9% 81.2% 83.6% 95.4% 90.8% 88.4% 75% 80% 85% 90% 95% 100% Office (1) Industrial (2) Retail (3) Overall (4)

NOI Margins

Sector Fibra Mty

  • 1. NOI margin of the office component of diversified FIBRAS
  • 2. Average NOI margin of industrial specialized FIBRAS and industrial component of diversified FIBRAS
  • 3. There is no benchmark comparable to the retail component of Fibra Mty (mostly single-tenant,

triple net properties)

  • 4. Average NOI margin of all diversified FIBRAs

N/A

* Source: Companies quarter reports for 3Q17 and 4Q17

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7

Selected Financial Information

Thousands of Pesos MXN (except figures per CBFI)

4Q17 3Q17 2Q17 1Q17 4Q16

Δ% 4Q17 vs 3Q17 Δ% 4Q17 vs 4Q16

Gross Income 222,813 210,210 196,168 200,792 188,283

6.0% 18.3%

Properties Expenses (net from Capex as Opex) (25,878) (28,226) (26,355) (24,386) (23,111)

(8.3%) 12.0%

Net Operating Income (NOI)

196,935 88.4%

181,984

86.6%

169,813

86.6%

176,406

87.9%

165,172

87.7% 8.2% 19.2%

G&A Expenses (19,748) (18,506) (18,262) (18,783) (17,221)

6.7% 14.7%

EBITDA

177,187 79.5%

163,478

77.8%

151,551

77.3%

157,623

78.5%

147,951

78.6% 8.4% 19.8%

FFO FFO per CBFI (1) 173,163

0.271

147,053

0.247

129,820

0.263

139,911

0.289

125,982

0.261 17.8% 9.7% 37.5% 3.8%

AFFO AFFO per CBFI (1) 165,757

0.260

144,564

0.244

126,528

0.256

132,411

0.274

124,485

0.258 14.7% 6.6% 33.2% 0.8% (1) Financial indicators for 3Q17 consider 515,130,292 CBFIs in July and 635,500,587 CBFIs in august and september.

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* Organic Growth: ⁻ Income: Increase in Occupancy = ↑ 2% same buildings (+17,000 m2 of GLA) ⁻ Opex: Efficency and Economies of Scale = ↓ 2% same buildings (- Ps 1.6 mill) * Acquisitions: ⁻ To continue achieving 20/20 vision ⁻ To pursue benefits of a potential buyers market ⁻ Take advantage of equity market windows * Exchange Rate: ⁻ Weighted average range 18.75 – 19.25 * Approved Distribution Range: ⁻ 1.04 – 1.05 per CBFI

2018 Guidance

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0.60 0.70 0.80 0.90 1.00 1.10 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18

Historical Distribution and Guidance

Quarterly Distribution Annualized Guidance Year Distribution

1.05 1.04

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Leverage

8 * Balance Sheet Strategy: ⁻ Loan to Value: 25% - 30% (↓ 35%) ⁻ Cash: to support operation, reducing negative carry * Market Conditions: ⁻ Interest Rates in USD ↑ ⁻ Short term interest rates in Pesos similar to cash on cash of buildings ⁻ Positive carry of leverage due to USD denominated rents in FibraMty * Strategy: ⁻ Today’s Loan to Value (estimated after distributions and some expenses): 25% ⁻ LTV with additional leverage and announced acquisitions: 27% ⁻ Stretch Loans Durations