Mexico City, February 25th, 2021 – 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, announced today its first quarter 2020 (1Q21) earnings results.
The figures in this report have been prepared in accordance with International Financial Report Standards (“IFRS”). Figures presented in this report are expressed in millions of Mexican pesos and millions of U.S. dollars, unless stated otherwise. Additionally, figures may vary due to rounding.
Operating and Financial Highlights as of December 31st, 2020
Operating
- As of December 31st, 2020, the occupancy rate was 95.2%, a 130 basis point decrease compared to the fourth quarter of 2019 (4Q19).
- Renewal rate for 4Q20 was 89.9%.
- Annualized average leasing rate per square foot at the year-end was US$5.28, a 1.8% or US$0.09 increase compared to 4Q19.
- At the end of 2020, Terrafina reported a total of 39.2 million square feet (msf) of Gross Leasable Area (GLA) comprised of 274 properties and 298 tenants.
- 2020 leasing activity reached 8.6 msf, of which 10.1% corresponded to new leases, 73.8% to lease renewals and 16.1% to early renewals. Leasing activity was concentrated in the Ciudad Juarez, Chihuahua, Guadalajara, San Luis Potosi, Ramos Arizpe, Queretaro, Monterrey, Cuautitlan Izcalli, Ciudad Acuña, Monclova, Torreon, Apodaca, Tijuana, Irapuato, Saltillo, Toluca, Casas Grandes and Hermosillo markets.
Financial
- FY2020 net collections (rental revenues + collected revenues – uncollected revenues) reached US$194.7 million, of which US49.1 million were generated during 4Q20, a 3.2% or US$1.6 million decrease compared to 4Q19.
- FY2020 rental revenues reached US$199.1 million, of which US$48.5 million were generated during 4Q20, a 0.3% or US$0.2 million decrease compared to 4Q19.
- FY2020 NOI was US$188.1 million, of which US$48.1 million were generated during 4Q20, a 1.3% or US$0.6 million decrease compared to 4Q19.
- The NOI margin was 94.0% in FY2020 and 94.2% in 4Q20, a 199 basis points and 10 basis point increase, respectively, compared to equivalent periods in 2019.
- FY2020 EBITDA reached US$168.5 million, of which US$43.2 million were generated in 4Q20, a decrease of 0.2% or US$0.1 million compared to 4Q19.
- The EBITDA margin for FY2020 was 84.3% and 84.6% for 4Q20, 251 basis points and 101 basis points increases, respectively, compared to equivalent periods in 2019.
- FY2020 adjusted funds for operations (AFFO) reached US$103.0 million, of which US$27.2 million were generated in 4Q20, an increase of 12.0% or US$2.9 million compared to 4Q19.
- The AFFO margin was 51.0% for FY2020 and 52.7% in 4Q20, 464 basis points and 600 basis points increases, respectively, compared to equivalent periods in 2019.
- Total distribution for FY2020 were US$87.5 million; distributions per CBFI were US$0.1107 Considering the average share price for 2020 of US$1.31 (Ps.28.21), Terrafina’s dividend yield for the year was 8.4%.
- 4Q20 distributions totaled US$23.1 million. As a result, Terrafina will distribute Ps.0.6045 per CBFI (US$0.0293 per CBFI) for the October 1st to December 31st, 2020 period; considering the average share price of US$1.45 for 4Q20 (Ps.29.95), Terrafina’s annualized dividend yield for the quarter was 8.1%.
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About Terrafina
Terrafina (BMV:TERRA13) is a Mexican real estate investment trust formed primarily to acquire, develop, lease and manage industrial real estate properties in Mexico. Terrafina’s portfolio consists of attractive, strategically located warehouses and other light manufacturing properties throughout the Central, Bajio and Northern regions of Mexico. It is internally managed by highly-qualified industry specialists and externally advised by PGIM Real Estate. Terrafina owns 283 real estate properties, including 274 developed industrial facilities with a collective GLA of approximately 39.2 million square feet and 9 land reserve parcels, designed to preserve the organic growth capability of the portfolio. Terrafina’s objective is to provide attractive risk-adjusted returns for the holders of its certificates through stable distributions and capital appreciations. Terrafina aims to achieve this objective through a successful performance of its industrial real estate and complementary properties, strategic acquisitions, access to a high level of institutional support, and an effective management and corporate governance structure. For more information, please visit www.terrafina.mx/en.
About PGIM Real Estate
As one of the largest real estate managers in the world with $188.5 billion in gross assets under management and administration1, PGIM Real Estate strives to deliver exceptional outcomes for investors and borrowers through a range of real estate equity and debt solutions across the risk-return spectrum. PGIM Real Estate is a business of PGIM, the $1.7 trillion global asset management business of Prudential Financial, Inc. (NYSE: PRU).
PGIM Real Estate’s rigorous risk management, seamless execution, and extensive industry insights are backed by a 50-year legacy of investing in commercial real estate, a 140-year history of real estate financing2, and the deep local expertise of professionals in 31 cities globally. Through its investment, financing, asset management, and talent management approach, PGIM Real Estate engages in practices that ignite positive environmental and social impact, while pursuing activities that strengthen communities around the world. For more information visit www.pgimrealestate.com.
1As of December 31, 2020. Includes US$43.0 billion in AUA.
2Includes legacy lending through PGIM’s parent company, PFI.
About PGIM and Prudential Financial, Inc.
PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU), ranks among the top 10 largest asset managers in the world1 with more than $1.7 trillion in assets under management as of December 31, 2020. With offices in 16 countries, PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including public fixed income, private fixed income, fundamental equity, quantitative equity, real estate and alternatives. For more information about PGIM, visit www.pgim.com.
Prudential’s additional businesses offer a variety of products and services, including life insurance, annuities and retirement-related services. For more information about Prudential, please visit www.news.prudential.com.
Prudential Financial, Inc. of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom.
1As ranked in Pensions & Investments’ Top Money Managers list, 27 May 2020; based on PFI total worldwide institutional assets under management as of 31 Dec. 2018. Assets under management (AUM) are based on company estimates and are subject to change.
Forward Looking Statements
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.
Conference Call
Terrafina
(BMV: TERRA13)
Cordially invites you to participate in its Fourth Quarter 2020 Conference Call
Friday, February 26th, 2020
11:00 a.m. Eastern Time
10:00 a.m. Central Time
To access the call, please dial:
from within the U.S. +1-877-407-8031
from outside the U.S. +1-201-689-8031
from Mexico (toll free) 01-800-522-0034
Audio Webcast Link:
https://www.webcaster4.com/Webcast/Page/2133/39800
To access the conference replay please dial:
U.S. +1-877-481-4010
International (outside the US) +1-919-882-2331
Passcode: 39800