MEXICO CITY--(BUSINESS WIRE)--Feb 13, 2025--
FIBRA Macquarie México (FIBRAMQ) (BMV: FIBRAMQ12) announced its financial and operating results for the fourth quarter ended December 31, 2024.
FOURTH QUARTER 2024 HIGHLIGHTS
- Solid same store NOI portfolio performance with Industrial portfolio up 6.7% (US Dollars, YoY) and Retail portfolio up 4.3% (Mexican Pesos, YoY)
- Industrial portfolio Leased GLA of 30.4 million square feet, steady QoQ and YoY
- Retail portfolio closing occupancy of 93.3%, steady QoQ and up 130 bps YoY
- 4Q24 cash distribution of Ps. 0.5250 per certificate declared
“We had a productive year in 2024 as we continued to execute on our disciplined growth strategy, of maximizing NOI in our operating portfolio, while selectively investing in new industrial developments to increase our NAV and grow our total returns,” said Simon Hanna, FIBRA Macquarie’s chief executive officer. “For the year, we delivered solid earnings growth as we achieved record AFFO at the top end of our guidance range. Our well-located retail portfolio has demonstrated ongoing progress, with solid retention rates and growing occupancy contributing to strong NOI growth. We are pleased to be starting to see the contribution from our industrial development program, including two new developments that we leased during the year. Furthermore, as we move into 2025, our scheduled lease expirations are below historical averages, which provides us with additional resiliency and earnings visibility as we observe a shift in the shorter-term macro-outlook.”
Mr. Hanna continued, “Looking ahead, we remain encouraged by the positive long-term dynamics in Mexico. While there is currently heightened political and tariff uncertainty, we believe that Mexico will continue to be a strategic component of the regional and global supply chain overt the long term, and that FIBRAMQ is well positioned given our portfolio composition and prudent balance sheet, providing us with both flexibility and stability.”
CAPITAL ALLOCATION
FIBRAMQ continues to pursue a strategy of investing in and developing class “A” industrial assets in core markets that demonstrate strong performance and a positive economic outlook.
Industrial Portfolio Growth Capex Program
FIBRAMQ has 0.6 million square feet of GLA under development or stabilization. In addition, FIBRAMQ is advancing for the obtention of relevant permits and licenses with respect to its recent Guadalajara project, and expects to start construction on the first building in this park comprising 330 thousand square feet of GLA in the second half of 2025.
The forecast 2025 cash investment for the industrial development program is expected to be in a range of US$50.0 million to US$100.0 million. FIBRAMQ will remain disciplined in its capital deployment as it completes developments in process and stabilizes recent deliveries, while being opportunistic to maintain a future growth pipeline. FIBRA Macquarie maintains a target NOI yield on cost of between 9% and 11%, which incorporates the highest sustainability standards and is designed to generate embedded operational efficiencies for its customers.
Projects in process are summarized below. For further details regarding recently delivered projects, please refer to the Supplementary Information materials located at BMV Filings (fibramacquarie.com).
Industrial Development Projects in Process
Guadalajara, Jalisco
- In October 2024, FIBRAMQ completed the acquisition of a 10-hectare land parcel located in the El Salto submarket of Guadalajara for Ps. 168.0 million, excluding transaction costs and taxes. FIBRAMQ anticipates developing two Class A buildings on this parcel over time, with a total GLA of approximately 460 thousand square feet.
- Initial permits and infrastructure works are commencing for the first building comprising 330 thousand square feet of GLA.
Apodaca, Nuevo León
- FIBRAMQ is marketing for lease a 200 thousand square foot property that was delivered during 3Q24.
- This delivery is the third building in a class “A” industrial park that is anticipated to comprise a total GLA of 790 thousand square feet, of which FIBRAMQ has completed construction on 590 thousand square feet of GLA.
Tijuana, Baja California
Final works are being completed for the delivery of the first building comprising 385 thousand square feet of GLA, with an updated expected delivery date for the first half of 2025
FINANCIAL AND OPERATING RESULTS
Consolidated Portfolio
FIBRAMQ’s consolidated FY24 results were as follows:
TOTAL PORTFOLIO | (millions of Pesos unless otherwise stated) | (millions of Dollars, unless otherwise stated) |
| FY24 | FY23 | Variance | FY24 | FY23 | Variance |
Net Operating Income (inc. SLR) | Ps. 4,131.3m | Ps. 3,739.2m | 10.5% | US$ 225.7m | US$ 210.5m | 7.2% |
Net Operating Income (exc. SLR) | Ps. 4,115.9m | Ps. 3,759.0m | 9.5% | US$ 224.9m | US$ 211.6m | 6.3% |
EBITDA | Ps. 3,738.1m | Ps. 3,420.0m | 9.3% | US$ 204.2m | US$ 192.5m | 6.1% |
Funds From Operations (FFO) | Ps. 2,631.3m | Ps. 2,474.5m | 6.3% | US$ 143.8m | US$ 139.3m | 3.2% |
FFO per certificate | Ps. 3.3303 | Ps. 3.2505 | 2.5% | US$ 0.1820 | US$ 0.1830 | (0.6%) |
Adjusted Funds From Operations (AFFO) | Ps. 2,080.4m | Ps. 1,964.2m | 5.9% | US$ 113.7m | US$ 110.6m | 2.8% |
AFFO per certificate | Ps. 2.6330 | Ps. 2.5801 | 2.0% | US$ 0.1439 | US$ 0.1453 | (1.0%) |
NOI Margin (inc. SLR) | 85.7% | 86.2% | (49 bps) | 85.7% | 86.2% | (49 bps) |
NOI Margin (exc. SLR) | 85.7% | 86.3% | (60 bps) | 85.7% | 86.3% | (60 bps) |
AFFO Margin | 43.2% | 45.3% | (212 bps) | 43.2% | 45.3% | (212 bps) |
| | | | | | |
FIBRAMQ’s consolidated 4Q24 results were as follows:
TOTAL PORTFOLIO | (millions of Pesos, unless otherwise stated) | (millions of Dollars, unless otherwise stated) |
| 4Q24 | 4Q23 | Variance | 4Q24 | 4Q23 | Variance |
Weighted Average CBFIs (millions) | 797.3m | 761.3m | 4.7% | 797.3m | 761.3m | 4.7% |
Net Operating Income (inc. SLR) | Ps. 1,115.5m | Ps. 946.0m | 17.9% | US$ 55.6m | US$ 53.8m | 3.3% |
Net Operating Income (exc. SLR) | Ps. 1,112.3m | Ps. 951.7m | 16.9% | US$ 55.4m | US$ 54.1m | 2.4% |
EBITDA | Ps. 1,020.9m | Ps. 852.7m | 19.7% | US$ 50.9m | US$ 48.5m | 4.9% |
Funds From Operations (FFO) | Ps. 722.5m | Ps. 613.7m | 17.7% | US$ 36.0m | US$ 34.9m | 3.2% |
FFO per certificate | Ps. 0.9061 | Ps. 0.8061 | 12.4% | US$ 0.0452 | US$ 0.0458 | (1.5%) |
Adjusted Funds From Operations (AFFO) | Ps. 583.2m | Ps. 484.4m | 20.4% | US$ 29.1m | US$ 27.6m | 5.5% |
AFFO per certificate | Ps. 0.7315 | Ps. 0.6363 | 15.0% | US$ 0.0365 | US$ 0.0362 | 0.7% |
NOI Margin (inc. SLR) | 84.5% | 85.1% | (59 bps) | 84.5% | 85.1% | (59 bps) |
NOI Margin (exc. SLR) | 84.5% | 85.2% | (70 bps) | 84.5% | 85.2% | (70 bps) |
AFFO Margin | 44.2% | 43.6% | 61 bps | 44.2% | 43.6% | 61 bps |
GLA (’000s square feet) EOP | 36,364 | 35,575 | 2.2% | 36,364 | 35,575 | 2.2% |
GLA (’000s sqm) EOP | 3,378 | 3,305 | 2.2% | 3,378 | 3,305 | 2.2% |
Leased GLA (’000s sqft) EOP | 34,728 | 34,620 | 0.3% | 34,728 | 34,620 | 0.3% |
Leased GLA (’000s sqm) EOP | 3,226 | 3,216 | 0.3% | 3,226 | 3,216 | 0.3% |
Occupancy EOP | 95.5% | 97.3% | (182 bps) | 95.5% | 97.3% | (182 bps) |
Average Occupancy | 96.3% | 97.1% | (84 bps) | 96.3% | 97.1% | (84 bps) |
Weighted average CBFIs have increased year-over-year solely in connection with an extraordinary distribution of 36,022,750 CBFIs paid on March 14, 2024 to existing Holders.
Industrial Portfolio
The following table summarizes FY24 results for FIBRAMQ’s industrial portfolio:
INDUSTRIAL PORTFOLIO | (millions of Pesos, unless otherwise stated) | (millions of Dollars, unless otherwise stated) |
| FY24 | FY23 | Variance | FY24 | FY23 | Variance |
Net Operating Income (inc. SLR) | Ps. 3,557.4m | Ps. 3,209.8m | 10.8% | US$ 194.4m | US$ 180.7m | 7.6% |
Net Operating Income (exc. SLR) | Ps. 3,534.7m | Ps. 3,207.1m | 10.2% | US$ 193.1m | US$ 180.6m | 7.0% |
NOI Margin (inc. SLR) | 89.0% | 89.5% | (48 bps) | 89.0% | 89.5% | (48 bps) |
NOI Margin (exc. SLR) | 89.0% | 89.5% | (54 bps) | 89.0% | 89.5% | (54 bps) |
| | | | | | |
The following table summarizes 4Q24 results for FIBRAMQ’s industrial portfolio:
INDUSTRIAL PORTFOLIO | (millions of Pesos, unless otherwise stated) | (millions of Dollars, unless otherwise stated) |
| 4Q24 | 4Q23 | Variance | 4Q24 | 4Q23 | Variance |
Net Operating Income (inc. SLR) | Ps. 969.1m | Ps. 808.9m | 19.8% | US$ 48.3m | US$ 46.0m | 5.0% |
Net Operating Income (exc. SLR) | Ps. 966.4m | Ps. 811.7m | 19.0% | US$ 48.2m | US$ 46.2m | 4.3% |
NOI Margin (inc. SLR) | 87.6% | 88.3% | (65 bps) | 87.6% | 88.3% | (65 bps) |
NOI Margin (exc. SLR) | 87.6% | 88.3% | (72 bps) | 87.6% | 88.3% | (72 bps) |
GLA (’000s square feet) EOP | 31,730 | 30,947 | 2.5% | 31,730 | 30,947 | 2.5% |
GLA (’000s sqm) EOP | 2,948 | 2,875 | 2.5% | 2,948 | 2,875 | 2.5% |
Leased GLA (’000s sqft) EOP | 30,405 | 30,363 | 0.1% | 30,405 | 30,363 | 0.1% |
Leased GLA (’000s sqm) EOP | 2,825 | 2,821 | 0.1% | 2,825 | 2,821 | 0.1% |
Occupancy EOP | 95.8% | 98.1% | (229 bps) | 95.8% | 98.1% | (229 bps) |
Average Occupancy | 96.7% | 97.9% | (116 bps) | 96.7% | 97.9% | (116 bps) |
Average monthly rent per leased (US$/sqm) EOP | US$ 6.22 | US$ 5.88 | 5.8% | US$ 6.22 | US$ 5.88 | 5.8% |
Customer retention LTM | 79.4% | 89.4% | (999 bps) | 79.4% | 89.4% | (999 bps) |
Weighted Avg Lease Term Remaining (years) EOP | 3.4 | 3.5 | (0.4%) | 3.4 | 3.5 | (0.4%) |
FIBRAMQ’s industrial portfolio performance remains robust, with growing average rental rates and strong retention. For the quarter ended December 31, 2024, FIBRAMQ’s industrial portfolio delivered quarterly NOI of US$48.2 million, a 4.3% annual increase. At quarter-end, occupancy was 95.8%. Two development properties located in Ciudad Juárez and Reynosa, comprising 410 thousand square feet of GLA, were added into consolidated GLA, after completing their respective twelve-month stabilization periods in the fourth quarter of 2024.
Total leasing activity comprised 0.8 million square feet of GLA, including 156 thousand square feet of new leases. Renewal leases comprised 7 contracts across 636 thousand square feet, driving a solid retention rate of 79.4% over the last 12 months.
For full year 2024, FIBRAMQ executed 62 new and renewal leases comprising 5.3 million square feet of GLA.
Retail Portfolio
The following table summarizes the proportionally combined FY24 results for FIBRAMQ’s retail portfolio:
RETAIL PORTFOLIO | FY24 | FY23 | Variance |
Net Operating Income (incl. SLR) | Ps. 573.9m | Ps. 529.4m | 8.4% |
Net Operating Income (excl. SLR) | Ps. 581.2m | Ps. 551.9m | 5.3% |
NOI Margin (%, inc. SLR) | 69.7% | 70.5% | (79 bps) |
NOI Margin (%, exc. SLR) | 70.0% | 71.4% | (138 bps) |
| | | |
The following table summarizes the proportionally combined 4Q24 results for FIBRAMQ’s retail portfolio:
RETAIL PORTFOLIO | 4Q24 | 4Q23 | Variance |
Net Operating Income (incl. SLR) | Ps. 146.4m | Ps. 137.1m | 6.8% |
Net Operating Income (excl. SLR) | Ps. 146.0m | Ps. 140.0m | 4.3% |
NOI Margin (%, inc. SLR) | 68.4% | 70.2% | (176 bps) |
NOI Margin (%, exc. SLR) | 68.4% | 70.6% | (226 bps) |
GLA (’000s square feet) EOP | 4,633 | 4,628 | 0.1% |
GLA (’000s sqm) EOP | 430 | 430 | 0.1% |
Occupancy EOP | 93.3% | 92.0% | 130 bps |
Average Occupancy | 93.1% | 91.9% | 124 bps |
Average monthly rent per leased sqm EOP | $187.07 | $177.28 | 5.5% |
Customer retention LTM | 83.4% | 89.6% | (626 bps) |
Weighted Avg Lease Term Remaining (years) EOP | 3.6 | 3.4 | 6.7% |
| | | |
FIBRAMQ signed 71 new and renewal leases during the quarter totaling 22 thousand square meters of GLA, across a diverse range of tenants. Leasing activity included the renewal of a 10.2 thousand square meter contract for a supermarket. The retail portfolio benefited from strong retention of 83.4% over the last twelve months.
Retail portfolio cash collections during the quarter trended up to Ps. 217.4 million, an increase of 12.8% versus the prior corresponding period.
Lease Rental Rate Summary
Based on annualized base rents, leases in FIBRAMQ’s consolidated portfolio is now 68.5% linked to either Mexican or US CPI, representing an increase of 386 bps over the last twelve months.
In the Industrial portfolio, FIBRAMQ achieved a weighted average positive releasing spread of 22.0%, in respect of commercially negotiated lease renewals generating US$43.0 million of annualized base rent.
For further details about FIBRA Macquarie’s Fourth Quarter 2024 results, please refer to the Supplementary Information materials located at BMV Filings (fibramacquarie.com).
BALANCE SHEET
At December 31, 2024, FIBRAMQ had US$1,049.3 million of debt outstanding and in excess of US$400.0 million available on its undrawn committed and uncommitted revolving credit facilities as well as US$32.4 million of unrestricted cash on hand. FIBRAMQ’s indebtedness is 99.4% fixed rate, with 3.7 years of weighted average tenor remaining.
FIBRAMQ does not have any loans maturing before September 2026.
As of December 31, 2024, FIBRAMQ’s CNBV regulatory debt to total asset ratio was 30.3% and debt service coverage ratio was 5.8x.
CERTIFICATE REPURCHASE PROGRAM
FIBRAMQ has a Ps. 1,000 million CBFI repurchase-for-cancellation program available through to June 25, 2025. No certificates were repurchased during the quarter.
SUSTAINABILITY
At December 31, 2024, FIBRA Macquarie’s green building certification coverage represented 41.8% of consolidated GLA, representing an increase of 213bps YoY.
The sustainability and green financing linked portion of drawn debt stands at 63.0%.
During the fourth quarter, FIBRAMQ obtained a second LEED ® v4 C&S Platinum certification, for its 211 thousand square foot development property in Monterrey.
DISTRIBUTION
FIBRAMQ declared a cash distribution of Ps. 0.5250 per certificate for the quarter ended December 31, 2024. The distribution is expected to be paid on or about March 13, 2025, to holders of record on March 12, 2025. FIBRAMQ’s certificates are expected to commence trading ex-distribution on March 12, 2025.
FY25 GUIDANCE
FIBRAMQ maintains a cautious outlook on operational performance for 2025, and this guidance assumes no material deterioration of the geopolitical landscape or Mexico’s key trading relationships.
FIBRAMQ has a record-low level of annual scheduled lease expirations in its Industrial portfolio, with FY25 lease roll-over comprising 11.4% of Industrial portfolio annualized base rents. On an overall basis, FIBRAMQ anticipates lease renewals in its industrial portfolio to achieve weighted average positive leasing spreads of approximately 10%.
Revenue and NOI growth for the consolidated portfolio is expected to be partly offset by the financing costs of near-term investments in FIBRAMQ’s industrial growth capex program, which is expected to contribute to additional revenue and AFFO growth from FY26 onwards.
AFFO
FIBRAMQ is initiating FY25 AFFO guidance in a range of between Ps. 2.95 and Ps. 3.05 per certificate.
The FY25 AFFO guidance equates to a range of US$115 million to US$119 million, representing an annual increase of between 1% and 5% in underlying USD terms.
This guidance assumes:
- an average exchange rate of Ps. 20.50 per US dollar for FY25;
- no new acquisitions or divestments;
- no issuances or repurchases of certificates; and
- no deterioration in broader economic and market conditions, including the potential implementation of tariffs or deterioration in the trade relationship with key trading partners
Cash Distribution
FIBRAMQ is initiating guidance for cash distributions in FY25 of Ps. 2.45 per certificate, expected to be paid in equal quarterly installments.
The FY25 cash distribution guidance equates to approximately US$95m, representing an annual increase for scheduled distributions of 4.2% in underlying USD terms.
The guidance implies an expected FY25 AFFO payout ratio of approximately 82%, based on the AFFO guidance midpoint.
The payment of distributions is subject to the approval of the Manager, stable market conditions and prudent management of FIBRAMQ’s capital position.
Outstanding certificates
FIBRA Macquarie had 797,311,397 outstanding certificates as of December 31, 2024. This considers the 36.0 million certificates issuance to existing holders that was made in March 2024 in respect of the extraordinary distribution corresponding to FY23, resulting in a 4.7% increase in outstanding CBFIs.
WEBCAST AND CONFERENCE CALL
FIBRA Macquarie will host an earnings conference call and webcast presentation on Thursday, February 13, 2025, at 11:00 a.m. CT / 12:00 p.m. ET. The conference call, which will also be webcast, can be accessed online at www.fibramacquarie.com or by dialing toll free +1-877-407-2988. Callers from Mexico may dial 01-800-522-0034 and other callers from outside the United States may dial +1-201-389-0923. Please ask for the FIBRA Macquarie Fourth Quarter 2024 Earnings Call. An audio replay will be available by dialing +1-877-660-6853 or +1-201-612-7415 for callers from outside the United States. A webcast archive of the conference call and FIBRA Macquarie’s financial information for the Fourth Quarter 2024 will also be available on FIBRAMQ’s website, www.fibramacquarie.com.
About FIBRA Macquarie
FIBRA Macquarie México (FIBRA Macquarie) (BMV: FIBRAMQ12) is a real estate investment trust (fideicomiso de inversión en bienes raíces), or FIBRA, listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores) targeting industrial, retail and office real estate opportunities in Mexico, with a primary focus on stabilized income-producing properties. FIBRA Macquarie’s portfolio consists of 243 industrial properties and 17 retail properties, located in 20 cities across 16 Mexican states as of December 31, 2024. Nine of the retail properties are held through a 50/50 joint venture. For additional information about FIBRA Macquarie, please visit www.fibramacquarie.com.
Cautionary Note Regarding Forward-looking Statements
This release may contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ significantly from these forward-looking statements and we undertake no obligation to update any forward-looking statements.
Other than Macquarie Bank Limited ABN 46 008 583 542 (“Macquarie Bank”), any Macquarie Group entity noted in this document is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do not represent deposits or liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect to the obligations of these other Macquarie Group entities. In addition, if this document relates to an investment (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested, and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect to the investment.
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