Corporate Presentation

Corporate Presentation
May 2016
Introduction
Indicators
Owned GLA
Total GLA
Occupation
Revenue
NOI
EBITDA
Total Assets
LTV
Dividend per CBFI
Implicit CAP Rate
Properties
1Q 2016
471,130
558,766
92%
234
168
155
12,140
24.71%
0.2765
7.04%
17
GLA per type of shopping
center
%Δ
24%
30%
0%
22%
24%
24%
12%
22%
19%
7%
21%
Asset Value Distribution
Community
Center, 9.1%
Community
Center, 7.1%
Power
Center,
46.9%
1Q 2015
381,089
428,735
92%
191
136
124
10,874
20.23%
0.2333
6.59%
14
Fashion
Mall,
46.0%
Power
Center,
36.1%
Fashion
Mall,
54.8%
•
•
•
•
1,433 contracts administrated
12 States and Mexico City
Average acquisition CAP Rate: ~9.6%
Solid Credit Ratings:
- AAA by HR Ratings
- AA by Fitch Ratings
• Solid operational structure and corporate governance
that jointly assures transparency, efficiency and a
profitable and sustainable growth model.
2
A story of success
From its formation, FibraShop tripled its owned GLA, from 140.5K sqm to 471.1K sqm while it continues
to expand its geographic footprint through selective acquisitions that generate additional value. The total
GLA managed by FibraShop is 558.8K sqm.
Initial
March 2016
8 properties
17 properties
5 States and
Mexico City
12 States and
Mexico City
Average occupancy
91%
Average occupancy
92%
GLA: 140.5K sqm
GLA owned: 471.1K sqm
Cap. Rate Acquisition Average: ~9.6%
IPO
(July24,2013)
February 2014
GLA: 63.7K sqm
Cap. Rate: 9.1%
Properties (>18 months) in FibraShop’s portfolio
have a occupancy rate of 92%
August 2014
Portfolio Kimko
GLA: 44.5K sqm + 33.9K sqm + 40.6K sqm
Cap. Rate: 9.6%
May 2015
GLA: 29.6K sqm
Cap. Rate: 9.7%
October 2015
GLA: 12.5K sqm
Cap. Rate: 9.0%
140.5K sqm
in GLA
June 2014
GLA: 4.0K sqm
Cap. Rate: 9.2%
October 2014
GLA: 28.6K sqm
Cap. Rate: 10.5%
August 2015
GLA: 19.3 sqm
Cap. Rate: 9.0%
3
High quality, diversified portfolio with attractive rent
Location: Cabo San Lucas
Opening: 2002
Type: Fashion Mall
GLA administrated:
35,959 sqm
GLA owned: 19,221 sqm
Main stores: Cinemex,
Ruth’s Chris and Caliente
Location: Querétaro
Opening: 2013
Type: Community Center
GLA administrated:
9,490 sqm
GLA owned: 9,490 sqm
Main stores: Fresko,
Office Max and
Starbucks Coffee
6
U.C. Jurica
5
4
Location: Querétaro
Opening: 2010
Type: Community Center
GLA administrated:
10,121 sqm
GLA owned: 8,524 sqm
Main stores: Office Max,
Martí and Mc Donald’s
Puerta Texcoco
Location: Cancún
Opening: 2007
Type: Fashion Mall
GLA administrated:
35,400 sqm
GLA owned: 20,986 sqm
Main stores: Soriana,
Forever 21 and Ruth’s
Chris
U.C. Juriquilla
Location: San Miguel
Opening: 2007
Type: Fashion Mall
GLA administrated:
28,384 sqm
GLA owned: 19,384 sqm
Main stores: Cinemex,
Liverpool and Soriana
Kukulcán Plaza
La Luciérnaga
Plaza Cibeles
Location: Irapuato
Opening: 2002
Type: Fashion Mall
GLA administrated:
78,113 sqm
GLA owned: 76,134 sqm
Main stores: Liverpool,
Cinépolis and Soriana
Puerto Paraíso
3
2
1
Location: Texcoco
Opening: 2010
Type: Fashion Mall
GLA administrated:
63,725 sqm
GLA owned: 63,275 sqm
Main stores: Walmart,
Liverpool and Home
Depot
New Classification
Fashion Mall (6)
8
14
Location: D.F.
Opening: 2010
Type: Community Center
GLA administrated:
1,454 sqm
GLA owned: 1,454 sqm
Main stores: Sonora Grill
Prime and Starbucks
Coffee
9
Power Center (6)
10
U.C. Xalapa
U.C. Condesa
7
Community Center (5)
Previous
Classification
Location: Xalapa
Opening: 2011
Type: Community Center
GLA administrated:
8,273 sqm
GLA owned: 8,273 sqm
Main stores: Office Max,
Telcel and Martí
Super Regional (3)
Regional (9)
2
13
1
3
5
6
15
16
9
8
7 17
11
Plaza Los Atrios
Galerías Sonora
11
Urban Center (5)
Location: Hermosillo
Opening: 2010
Type: Fashion Mall
GLA administrated:
40,710 sqm
GLA owned: 40,710 sqm
Main stores: Sears,
Cinépolis and C&A
Location: Cuautla
Opening: 2008
Type: Power Center
GLA administrated:
50,457 sqm
GLA owned: 50,457 sqm
Main stores: Walmart,
Sam’s Club, Cinemex
and Liverpool
12
Galerías Tapachula
4
10
Location: Tapachula
Opening: 2009
Type: Power Center
GLA administrated:
33,872 sqm
GLA owned: 33,872 sqm
Main stores: Walmart and
Cinépolis
12
Location: Cuernavaca
Opening: 2014
Type: Power Center
GLA administrated:
19,300 sqm
GLA owned: 19,300 sqm
Main stores: Soriana,
Cinépolis and Office
Depot
17
Cruz del Sur
Location: Chiluca
Opening: 2011
Type: Power Center
GLA administrated:
29,520 sqm
GLA owned: 29,520 sqm
Main stores: Comercial
Mexicana, and Starbucks
Coffe
16
Plaza Cedros
Location: Cd. Juárez
Opening: 2004
Type: Fashion Mall
GLA administrated:
58,185 sqm
GLA owned: 28,573 sqm
Main stores: Sears,
Cinépolis and Liverpool
Bosque Esmeralda
Location: Puerto Vallarta
Opening: 2010
Type: Community Center
GLA administrated:
3,837 sqm
GLA owned: 3,837 sqm
Main stores: Sonora Grill
Prime, La Europea and
Starbucks Coffee
Las Misiones
Nima Shops
13
15
14
Location: Puebla
Opening: 2004
Type: Power Center
GLA administrated:
29,716 sqm
GLA owned: 12,282 sqm
Main stores: Chedraui,
Cinépolis and Coppel
4
Total portfolio weighted average occupancy rate: 92%*
% of Occupancy
Shopping Center (more than 18
months in portfolio)
Plaza Cibeles (Original)
La Luciérnaga
UC Jurica
UC Juriquilla
UC Condesa
UC Xalapa
Puerto Paraíso
Plaza Kukulcan
Puerta Texcoco
UC Nima Shops
Galerías Mall Sonora
Galerías Tapachula
Los Atrios
Total
1Q 2015
2Q 2015
3Q 2015
4Q 2015
1Q 2016
100
88
100
90
100
97
99
99
96
82
85
92
83
93
100
91
100
94
100
97
99
85
93
97
85
86
84
91
100
91
96
94
100
97
99
85
93
97
88
88
84
92
100
94
96
94
100
97
99
85
94
100
88
88
84
92
100
94
96
94
100
96
99
85
94
100
89
88
84
92
% of Occupancy
Shopping Center (less than 18 months
in portfolio)
Las Misiones
City Center Bosque Esmeralda
Plaza Cedros
Cruz del Sur
Cibeles (Ampliación)
Total
Total portfolio
•
1Q 2015
2Q 2015
3Q 2015
4Q 2015
1Q 2016
86
-
86
87
-
86
87
92
86
86
87
89
89
96
97
96
92
92
89
96
97
96
93
92
90
91
92
92
Occupancy rate calculated at the close of 1Q 2016
5
High quality, diversified portfolio with attractive rent
Number of contracts per tenant type
Shopping Center
Anchor
Sub-Anchor
PAD
Tenant
Spaces
155
98
79
87
60
71
84
48
42
47
29
47
35
26
24
23
4
959
Cibeles
4
6
1
Galerías Mall Sonora
2
6
4
Cruz Del Sur
2
2
4
Las Misiones
4
1
4
Puerta Texcoco
5
9
4
Galerías Tapachula
2
10
2
Puerto Paraíso
2
2
Atrios
3
2
2
Luciérnaga
1
3
2
Kukulcán
1
Cedros Civac
2
10
C.C. Bosque Esmeralda
1
3
2
UC Jurica
3
UC Juriquilla
1
1
UC Xalapa
1
1
Nima Shops
UC Condesa
Total general
34
55
26
* It doesn’t consider tenants that are owners of their stores.
** “Other” considers kiosks, island, advertising spaces and other contracts that
are not part of the shopping center’s GLA but are considered in FibraShop’s revenues.
Other
Total
40
32
46
33
47
30
25
21
20
13
20
5
15
4
2
1
5
359
206
142
133
129
125
115
113
76
68
61
61
58
53
32
28
24
9
1,433
Average original contract term by type
of tenant
Type of tenant
Average years
Anchor
15 - 20
Sub-Anchor
7 - 10
Pad
7 - 10
Tenant spaces
3- 5
Other
1- 2
Promising outlook based on tenants and quality of rental contracts
The average remaining life of
simple-term
contracts
is
approximately
7.8
years
weighted by GLA .
6
Well diversified tenant base
TOP 30 by GLA
Commercial Group
Liverpool Group (Liverpool / Fábricas de Francia)
Walmart Group (Walmart / Sams Club / Suburbia / Prichos)
Sears / Sanborns / Telcel / Mixup-iShop / Inbursa
Cinépolis
Soriana
Cinemex
Luxury Avenue
La Comer / Fresko
Home Depot
Gigante Group (Office Depot / Toks / Radio Shack)
Alsea (Starbucks Coffee / Vips / El Porton / Italianis / Burguer King)
C&A
Caliente
Martí Group (Deportes Martí / Smart Fit)
Promoda
Casino Central
Total Fitness
Coppel
Office Max
Muebles Dico
BBVA Bancomer
High Fitness
Parisina
Happyland
Sonora Grill
H&M
Forever 21
Banorte
Nike
Kash
Total
TOP 30 by total income
Total
%
Commercial Group
52,908 11.2% 1 Cinépolis
50,317 10.6% 2 Liverpool Group (Liverpool / Fábricas de Francia)
40,189 8.5% 3 Walmart Group (Walmart / Sams Club / Suburbia / Prichos)
30,467 6.4% 4 Sears / Sanborns / Telcel / Mixup-iShop / Inbursa
24,839 5.3% 5 Gigante Group (Office Depot / Toks / Radio Shack)
17,513 3.7% 6 Cinemex
15,625 3.3% 7 La Comer / Fresko
11,553 2.4% 8 BBVA Bancomer
11,512 2.4% 9 Soriana
10,232 2.2% 10 Forever 21
5,265 1.1% 11 Alsea (Starbucks Coffee / Vips / El Porton / Italianis / Burguer King)
5,006 1.1% 12 Sonora Grill
4,439 0.9% 13 Martí Group (Deportes Martí / Smart Fit)
4,266 0.9% 14 C&A
4,060 0.9% 15 Coppel
3,906 0.8% 16 Caliente
3,748 0.8% 17 Ruth's Chris
3,602 0.8% 18 Home Depot
3,530 0.7% 19 Casino Central
3,521 0.7% 20 Hacienda Tequila
3,411 0.7% 21 Banorte
2,910 0.6% 22 Promoda
2,556 0.5% 23 Famsa
2,487 0.5% 24 Luxury Avenue
2,481 0.5% 25 Comicx
2,453 0.5% 26 Muebles Dico
2,149 0.5% 27 Banamex
2,083 0.4% 28 High Fitness
2,033 0.4% 29 Corte Fiel / Women's secret / Springfield
1,916 0.4% 30 Nike
330,973 69.98%
Total
%
4.7%
3.5%
3.5%
3.4%
2.1%
1.8%
1.4%
1.4%
1.3%
1.3%
1.3%
1.2%
1.1%
1.0%
1.0%
1.0%
1.0%
0.9%
0.8%
0.7%
0.7%
0.7%
0.7%
0.7%
0.7%
0.6%
0.6%
0.6%
0.6%
0.5%
40.80%
7
Income distribution by type of tenant
Same stores financial results
Concept
Total revenue
Total expenses
NOI of shopping centers
NOI margin of shopping
centers
1Q 2015
191,431
44,196
147,235
76.91%
1Q 2016 Difference %
202,031
10,600 5.54
44,492
296 0.67
157,539
10,304
7
77.98%
0.0106 1.38
Quarterly variation of results
4th Quarter 2015 1st Quarter 2016
Revenue
Operating expenses
Operating profit
Net profit
Net profit per CBFI
Operating margin
NOI
NOI margin
234.7
80.7
154.03
133.7
0.2801
65.63%
168
71.58%
234
79.5
154.5
131.9
0.2765
66.03%
168.4
71.98%
Variation
-0.30%
-1.40%
0.30%
-1.20%
-1.50%
0.60%
0.20%
0.50%
8
Financial highlights
(MX$ mm)
(MX$ mm)
(MX$ mm)
1
Consistent delivery of solid financials proves added value
1.
NOI is calculated by adding to the operation’s net income the advisor commission and other expenses.
9
Attractive dividend yields
35.00
Quarterly net income derived from operations (mxp. cents per
CBFI)
Net Profit of
the period
1Q15
111,339
2Q15
118,473
3Q15
128,528
4Q15
133,690
1Q16
131,946
3 1 .29
30.00
2 6 .03
2 3 .51
25.00
1 8 .5
20.00
15.00
Quarter
2 3 .33
2 4 .82
2 6 .93
2 8 .01
2 7 .65
1 9 .59
1 4 .49
10.00
5.00
3Q' 13 4Q' 13 1Q' 14 2Q' 14 3Q' 14 4Q' 14 1Q' 15 2Q' 15 3Q' 15 4Q' 15 1Q' 16
a) 3Q 2013 had 67 days of operations
b) 1Q 2014 excludes VAT actualization reimbursement
1
Rights
offering
2
Even after the subscription
rights
offering,
which
implied a shareholder's
equity
dilution,
we
continue
to
deliver
attractive returns.
1.
2.
Dividend yield at average close price of the period
The subscription offering amounted to 160 million CBFI’s at MX$ 17.50
10
Peer comparison
With the goal of establishing FibraShop’s operating margin efficiency, we conducted a benchmark
comparison with leading international shopping center operators, which included Simon Properties and
Kimco, both in the USA, Parque Arauco in Chile and BR Malls in Brazil.
Financial metrics as of
1Q 2016 (thousands
USD)
Total Assets
LTV
Properties
GLA administrated
Occupation
EBITDA Margin
FibraShop
Simon
Kimco
Parque Arauco
(4Q2016)
BR Malls
(4Q2016)
704,321
25%
17
558,766
92.00%
66.03%
31,398,498
73%
177
17,082,826
95.90%
71.69%
11,249,361
46%
584
6,733,334
95.80%
61.95%
2,363,700
37%
23
818,500
94.70%
70.78%
5,371,147
26%
45
1,636,072
96.90%
71.35%
* National average occupancy: 92%
To standardize the financial presentation and facilitate comparisons, we made the following adjustments:
•
EBITDA: Considers all operating revenues minus operating and administration expenses, while adding depreciation
and amortization as well as other non-monetary items; excluding non-recurring expenses for the sale of assets or
revenues. Revenue not related to the daily operation of the shopping malls, interest gains and other financial assets
are not considered part of the operating income.
•
We did not calculated NOI at a property or company level as we do not have the breakdown of corporate expenses
versus shopping center costs.
11
Financial plan 2016
Presently FibraShop has a revolving credit line amounting to Ps. 3,200 million,
syndicated by Actinver, BBVA Bancomer, HSBC, Sabadell and Santander. We are
currently working in the legal documents to finalize the line and have it available.
Credit line characteristics
Concept
Term
Rate
Opening fee
Structuring fee
Use fee
Level
3 years
TIIE + 150 bp
60 bp
15 bp
25% over the margin applicable to the
balance not used
With the credit line, and once all of the investment plans are implemented, FibraShop will
have a leverage of 24.71%, up from 39.76%
Considering that FibraShop’s cash flow as of March 31, 2016, amounted to Ps. 1,425.7
million plus the Ps. 3,200 million, minus the estimated expansions, we have Ps. 240
million in liquid resources to use for the expansion plan of 2016, which is estimated at Ps.
4,385 million.
12
Macroeconomic
overview
Existing shopping centers
Total inventory in sqm: 19,376,951 sqm and 1,384,985 sqm under construction
Distribution of inventory per shopping center
type
Distribution of inventory per region sqm
4%
20%
13%
7%
Center
6%
Metropolitan area
Northeast
11%
Community Center
30%
9%
Fashion Mall
Northwest
Regional Mall
West
10%
28%
Southeast
Southwest
14%
Power Center
Neighborhood Center
20%
Other
28%
Source: CBRE, ”Insight Retail” 2014
Regional Mall: Closed shopping center with at least two anchor stores (typically department stores), a cinema complex and a large food court. Serves the population in a large area or in
a location.
Super Regional Mall: Similar to the regional mall but larger in size, it is a super reginal center that has more anchor stores, a wider sele ction of merchandise and attracts a larger
population.
Fashion Mall: A centric shopping center located in a nice neighborhood, generally it does have a supermarket anchor or food court but has a mix collection of clothing and accessories
boutiques of renown brands.
Neighborhood Center: This shopping center is design to promote convenience products and services for daily consumer needs in the near community. According to the SCORE
publicatio n from ICSC, approximately half of the shopping centers are anchored with a supermarket, while a third of them have a pharmacy as a anchor. These anchor stores are also
supported by stores that sell medical products, various articles, coffee shops and personal services.
Community Center: A community center typically offers a wider range of clothing and other product stores compared to the neighborhood center. Among the typical anchor stores are
supermarkets, large pharmacies and discount department stores.
Power Center: Is a shopping center dominated by various large anchors, including discount department stores, reduced priced stores, club stores or a renown “dominating retailer ”.
14
Largest cities
Population
20 most populated entities
Region
Center
Northeast
South
Northwest
Total
Habitants
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
1,816
1,656
Annual
growth
1990-2000
1.85%
2.42%
2.21%
2.14%
2.00%
97,483,412
1,560 1,540 1,495
1,436
1,332
1,244 1,186
1,136 1,111
937
Annual
growth
2000-2010
1.35%
1.72%
1.78%
2.01%
1.52%
112,336,538
859
834
831
820
820
802
797
790
Range / Region NortheastNorthwest Center South
0 to 250K
250K to 600K
600K to 1M
> 1M
Total
118
9
4
1
132
192
8
4
2
206
1,153
33
12
8
1,206
903
4
4
0
911
# of
entities
2,367
54
24
11
2,456
Source: INEGI
15
Income distribution
Income level
A/B
C+
C
CD+
D
E
Cities with
50K-400K
habitants
6.30%
13.40%
18.20%
18.20%
19.70%
18.50%
5.70%
Cities with over
400K habitants
Cities with over
400K habitants*
MAMC
Guadalajara
Monterrey
Average
6.80%
14.30%
16.90%
17.00%
18.40%
19.20%
7.40%
7.10%
14.50%
17.10%
17.00%
18.50%
17.90%
7.80%
5.50%
12.70%
15.60%
16.60%
18.00%
23.10%
8.50%
10.50%
17.20%
19.40%
17.70%
19.20%
12.10%
3.90%
7.90%
16.80%
19.80%
18.20%
19.70%
14.90%
2.70%
7.37%
14.82%
17.83%
17.45%
18.92%
17.62%
6.00%
Source: Asociación Mexicana de Agencias de Investigación de Mercado y Opinión Pública, A.C
*Excluding MAMC, GDL and MTY
76.38%
Level
The map shows welfare level on a scale of 1 to 7,
where 1 is the lowest and 7 the highest.
Source: INEGI
16
GDP Growth
3.22%
• Economy is starting
to show signs of
recovery.
• Some regions are
growing above the
national average rate
of 3.00%.
The GDP growth expectation for 2016 according to Banxico
surveys of January 2016 is 2.69%.
• Northeast grows the fastest, and
the South the slowest.
Region
Northeast
Northwest
Center
South
Total
3
Annual
% Contribution
Growth
to GDP 2014
(2010 -2014)
3.87%
3.36%
3.23%
1.24%
3.00%
13.94%
12.65%
57.77%
15.65%
100.00%
• FibraShop has presence in 3 of
the 4 regions.
12
Source:
INEGI.
2
17
Growth rate of the tenants in Mexico (ANTAD)
Nominal Growth
Total Stores Nominal Growth
25
15
20
10
15
%
20
Specialized
2015-12
2015-09
2015-06
2015-03
2014-12
2014-09
Department store
0
2012-12
2013-02
2013-04
2013-06
2013-08
2013-10
2013-12
2014-02
2014-04
2014-06
2014-08
2014-10
2014-12
2015-02
2015-04
2015-06
2015-08
2015-10
2015-12
2016-02
Self-service
2014-06
-10
2014-03
-5
2013-12
5
2013-09
0
2013-06
10
2013-03
5
2012-12
%
Same Store Nominal Growth
Self-service
Source:
INEGI.
* As of March 2016
Department store
Specialized
18
Recent Acquisitions
Recent acquisitions
City Center Bosque Esmeralda
On
April 16,
2015, FibraShop
announced the acquisition of the
shopping center called City Center
Bosque Esmeralda, with a payment in
the amount of Ps. 404.5 million. City
Center Esmeralda is strategically
located in the "Zona Esmeralda" in
Atizapan, Avenida Jimenez Cantu. The
shopping center is anchored with a
Comercial Mexicana. Additionally, it has
prestigious tenants, among which are:
Carl's Junior, Starbuck's, Toks, GNC
and La Europea as well as a Bancomer
bank branch and soon a Cinepolis
movie theater complex. The current
CAP purchase is 9.74%.
Plaza Cedros
On May 21, 2015, FibraShop
announced the acquisition of the
denominated shopping center Plaza
Cedros for Ps. 370 million, located in
the metropolitan area of Cuernavaca in
the state of Morelos.
Plaza Cedros is a shopping center that
began operations in 2014. The
shopping center has prestigious tenants
such as Soriana, Office Depot, Tok's,
Smart Fit Gym and Cinepolis among
others.
The shopping center has a total GLA of
approximately 19.3 thousand square
meters.
Cruz del Sur
On October 2nd 2015, FibraShop
announced the acquisition of the
shopping center denominated Cruz del
Sur, with a value of Ps. 519 million.
Cruz del Sur is located in the city of
Puebla. The shopping center is
anchored with a Chedraui and a
Cinepolis movie thater complex.
Additionally, it has prestigious tenants,
among which are: Coppel, La Parisina
and several bank branches.
Cruz del Sur has a total GLA of 29.9
thousand square meters of wich
FibraShop owns 12,470 square meters
(Chedraui and Cinepolis are owners of
their spaces).
20
Corporate Presentation
May 2016