Terrafina: Third Quarter 2022 Earnings Report

terrafina
Mexico City, October 27th, 2022 – 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 third quarter 2022 (3Q22) 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 September 30th, 2022

OPERATING

  • As of September 30th, 2022, the occupancy rate was 96.1%, a 210-basis point increase compared to the third quarter of 2021 (3Q21).
  • Renewal rate for 3Q22 was 66.0%, a 1,970 basis-point decrease compared to 3Q21.
  • 3Q22 Annualized average leasing rate per square foot was US$5.55, a 3.9% or US$0.21 increase compared to 3Q21.
  • In 3Q22, Terrafina reported a total of 39.4 million square feet (msf) of Gross Leasable Area (GLA) comprised of 276 properties and 287 tenants.
  • 3Q22 leasing activity reached 2.0 msf, of which 46.1% corresponded to new leases, 48.7% to lease renewals and 5.2% to early renewals. Leasing activity was concentrated in the Chihuahua, Ciudad Juárez, Cuautitlán Izcalli, San Luis Potosí, Tijuana, Ramos Arizpe, Toluca, Guadalajara, Irapuato, Querétaro and Camargo markets. 

 

 FINANCIAL

  • 3Q22 net collections (rental revenues – uncollected revenues + collected revenues) reached US$49.2 million, a 4.3% or US$2.0 million increase compared to 3Q21.
  • 3Q22 rental revenues reached US$48.5 million, a 3.9% or US$1.8 million increase compared to 3Q21.
  • 3Q22 NOI was US$46.8 million, a 3.3% or US$1.5 million increase compared to 3Q21.
  • The NOI margin for 3Q22 was 93.5%, a 29-basis point decrease compared to 3Q21.
  • 3Q22 EBITDA reached US$41.0 million, a 2.1% or US$0.8 million increase compared to 3Q21.
  • The EBITDA margin for 3Q22 was 81.8%, a 121-basis point decrease compared to 3Q21.
  • 3Q22 adjusted funds for operations (AFFO) reached US$25.8 million, an increase of 7.1% or US$1.7 million compared to 3Q21.
  • The AFFO margin for 3Q22 was 51.2%, a 163-basis point increase compared to 3Q21.
  • 3Q22 distributions totaled US$18.0 million. As a result, Terrafina will distribute Ps.0.4748 per CBFI (US$0.0234 per CBFI) for the July 1st to September 30th, 2022 period; considering the average share price of US$1.35 for 3Q22 (Ps.27.42), Terrafina’s annualized dividend yield for the quarter was 6.9%.

 

Miranda Newswire – Full Press Release: Download

 
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 280 real estate properties, including 276 developed industrial facilities with a collective GLA of approximately 39.4 million square feet and 4 land reserves, 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 $207.0 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 $1.4 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 https://www.pgim.com/real-estate/.
1As of June 30, 2022. Includes US$45.9 billion in assets under management (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 $1.4 trillion in assets under management as of June 30, 2022. 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.
1Prudential Financial, Inc. (PFI) is the 10th largest investment manager (out of 527 firms surveyed) in terms of global assets under management based on Pensions & Investments’ Top Money Managers list published on June 1, 2020. This ranking represents global assets under management by PFI as of March 31, 2020. 
 
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 Third Quarter 2022 Conference Call

Friday, October 28th, 2022
11:00 a.m. Eastern Time
10:00 a.m. Central Time

To access the call, please dial:

From within the U.S.: +1-888-506-0062
From outside the U.S.: +1-973-528-0011
Mexico Toll Free: 55-8526-2489
Entry Code: 632928
 
Audio Webcast Link:
 
To access the conference replay please dial:
U.S.: +1-877-481-4010
International (outside the U.S.): +1-919-882-2331
Replay Passcode: 46641

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