TERRAFINA IMPROVES ITS FINANCING CONDITIONS WITH A US$500 MILLION SUSTAINABLE CREDIT FACILITY

Mexico City, July 19^th, 2023 – 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, lease, and management of industrial real estate properties in Mexico, announced today the successful refinancing of its existing sustainable credit facility with a new US$500 million sustainable credit facility. It features improved terms and conditions and will be due in July 2027. This credit line will replace both the US$300 million revolving credit facility and the US$185 million term loan Terrafina currently holds.

This new facility’s issuance, led by PGIM Real Estate and aligned with Terrafina’s ESG strategy, is linked to one of Terrafina’s existing ESG target metrics, namely “square feet certified as a green building” (the “KPI”). As a result of Mexico’s solid industrial real estate fundamentals and Terrafina’s strong historical performance, the Company was able to: i) access better pricing conditions, with a 50-basis point reduction compared to the previous credit facility, ii) expand the weighted average maturity on Terrafina’s balance sheet iii) increase the diversification of financial institutions with which the Company has a relationship; and, iv) access pricing that can be adjusted -/+ 5 basis points subject to meeting the KPI.

Alberto Chretin, CEO and Chairman of Terrafina’s Technical Committee commented: “With this new sustainable credit facility, we reaffirm our commitment to continue aligning our strategy with our stakeholders’ priorities. Our ESG efforts’ progress has allowed us to improve our capital structure, gaining access to better interest rates and maturity terms. I would also like to thank PGIM Real Estate for its great work on this credit facility’s implementation. It will help us strengthen our leadership in the industry. We will uphold our commitments to drive positive change by executing our robust sustainability strategy.”

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Investor Relations Contact Details

Francisco Martinez
Investor Relations Officer
Tel: +52 (55) 5279-8107
E-mail: francisco.martinez@terrafina.mx

Marimar Torreblanca
Miranda IR
Tel: +52 (55) 5282-2992
E-mail: marimar.torreblanca@miranda-newswire.com

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, Bajío and Northern regions of Mexico. It is internally managed by highly qualified industry specialists and externally advised by PGIM Real Estate. 

Terrafina owns 281 real estate properties, including 277 developed industrial facilities with a collective GLA of approximately 39.6 million square feet and four 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 

With $210 billion in gross assets under management and administration ($134 billion net),¹ PGIM Real Estate provides investors and borrowers access to a range of real estate equity, real estate debt, agriculture, and impact solutions across the risk-return spectrum.

PGIM Real Estate is a business of PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU). PGIM Real Estate’s risk management approach, execution capabilities and industry insights are backed by more than a 50-year legacy of investing in commercial real estate, a 140-year history of real estate financing,² and the local experience of professionals in 32 cities globally. Through its investment, financing, asset management, and talent management approach, PGIM Real Estate engages in practices that strive to ignite positive environmental and social impact, while pursuing activities that seek to strengthen communities around the world. For more information visit pgimrealestate.com. 

1As of March 31, 2023; AUA is $49 billion.

2 Includes legacy lending through PGIM’s parent company, PFI.

About PGIM  

PGIM is the global asset management business of Prudential Financial, Inc. (NYSE: PRU), a leading global investment manager with more than $1.4 trillion in assets under management as of March 31, 2023. With offices in 18 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 pgim.com. 

Prudential Financial, Inc. (PFI) 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. For more information please visit http://news.prudential.com/

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 does not guarantee future performance.