Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario · OTC:CBAOF
Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario — Terrafina — Investor Presentation (August 2021)
27 slides from Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario's investor presentation, August 2021
Slide 1: Investor Presentation
Investor Presentation August 2021
Slide 2: Disclaimer
Disclaimer This presentation is strictly confidential and is being furnished to you solely for your information. It may not be reproduced or redistributed to any other person, and it may not be published, in whole or in part, for any purpose. By receiving this presentation, you become bound by the a
Slide 3: Company Overview
Company Overview 01
Slide 4: Terrafina at a Glance: A Leading Industrial REIT in Mexico
Terrafina at a Glance: A Leading Industrial REIT in Mexico Key Metrics as of 2Q21 Solid Fundamentals with PGIM Real Estate portfolio management expertise Industrial 274 Properties • Best Class-A industrial portfolio leased by multinational tenants mainly focused on manufacturing for export activitie
Slide 5: 3-Year Strategic Plan
3-Year Strategic Plan 02
Slide 6: Terrafina's 3-Year Strategic Plan
Terrafina’s 3-Year Strategic Plan Terrafina plan intends to deliver superior performance to shareholders through i) NAV/certificate growth, and ii) steady AFFO progression Strong Industrial Tailwinds Investments 1 Asset Class resilience with strong real estate fundamentals $150M- New developments to
Slide 7: Terrafina's 3-Year Strategic Plan (cont.)
Terrafina’s 3-Year Strategic Plan (cont.) Funding Sources for Terrafina’s New Developments AFFO retention 1 Distribution policy change from 85% of Asset Sales AFFO to 70% of AFFO 2 Proceeds from asset sales (at premium or at Additional Debt par to FMV) will be reinvested 3 New developments will be l
Slide 8: Terrafina's Track Record
Terrafina’s Track Record << f Zz Oo Oo Lu Ee
Slide 9: Executing an Optimal Growth Strategy Over the Last Eight Years
Executing an Optimal Growth Strategy Over the Last Eight Years… (US$ millions, unless otherwise noted) Terrafina Growth Cycle Evolution of Terrafina’s Portfolio at a Glance 2013 2Q21 △% Annualized (US$ in millions) 20131 △% 2Q21 Industrial Properties 132 274 107.6% Rental Revenue 75.0 188.5 151.3% G
Slide 10: That Has Been Delivering Results Since Inception
… That Has Been Delivering Results Since Inception Key milestones that propelled and supported our growth story • US$127M asset sale. Resources used to pay down debt and will be • PGIM reaches 19.9M SF of • FO offering • Refinancing • Refinancing US$300M used to finance growth Industrial assets ~US$
Slide 11: Successfully Executing its Business Plan
Successfully Executing its Business Plan… Proven business model executed across peaks and troughs of economic cycles and… 99.0% 5.30 5.28 5.18 5.31 97.0% 5.20 95.1% 5.13 95.2% 92.8% 96.3% 93.9% 95.0% 5.10 93.5% 95.2% 5.00 93.0% 91.4% 5.00 4.90 91.0% 4.77 4.89 Mexican Elections 4.80 4.90 USMCA ratifi
Slide 12: With a Resilient Portfolio Across Different Economic Cycles
… With a Resilient Portfolio Across Different Economic Cycles… Successfully managed by Terrafina and PGIM Real Estate 1 PGIM RE Fund 2 Global Financial Crisis 3 Recovery 4 Terrafina IPO and AI 5 Asset Sale / 6 2nd Follow On / 7 COVID Crisis Development / / Kimco Acquisition 1st Follow On Acquisition
Slide 13: Key Investment Highlights
Key Investment Highlights 03
Slide 14: Key Investment Highlights
Key Investment Highlights 1 Best-in-class industrial portfolio with a high- quality tenant base and strategically diversified in top industrial markets 2 Robust portfolio in a resilient industry 3 Proven track record delivering consistent and stable operating and financial results 4 Sound capital st
Slide 15: Best-in-Class Industrial Portfolio With a High-Quality Tenant Base
Best-in-Class Industrial Portfolio With a High-Quality Tenant Base… Renewal Rates (Annual Average) Lease Expiration Schedule1 • 74.8% of our tenants are focused in 91.0% 90.8% 91.3% % of Annual Base Rent manufacturing, while 25.2% are in 86.6% 86.5% 86.8% Avg 87.8% 33.8% distribution and logistics 8
Slide 16: Strategically Diversified in Top Industrial Markets
… and Strategically Diversified in Top Industrial Markets Mexico Industrial Breakdown: GLA Distribution by Region Tenant Base Breakdown by Sector (% GLA) Central Baijo North • Aerospace: Mexico is a prime location for Aerospace enhanced by highly qualified workforce. Our tenants participate in the s
Slide 17: Robust Portfolio in a Resilient Industry
Robust Portfolio in a Resilient Industry A steady performance of the Mexican industrial real estate industry Consistent and Stable Growth Trend Sound Absorption Across Markets Industrial Net Absorption (mm ft2) 797 830 800 736 770 90 91 674 566 75 600 506 524 541 544 59 485 60 400 45 31 30 33 34 27
Slide 18: Proven Track Record Delivering Consistent and Stable Operating and Financial Results
Proven Track Record Delivering Consistent and Stable Operating and Financial Results EBITDA shows robust growth and EBITDA margin remains consistent 82.9% 83.6% 82.6% 83.4% 84.6% 83.3% 79.6% 77.8% 79.9% 43.6 43.3 42.8 42.2 44.2 42.5 42.2 43.2 43.2 39.6 41.3 40.9 39.3 41.0 40.1 37.9 37.2 35.7 28.9 28
Slide 19: Sound Capital Structure & Conservative Financial Policy
Sound Capital Structure & Conservative Financial Policy Key Financial Strenghts Investment Grade Credit Ratings (International) • Large network of lending relationships, from both Terrafina and PGIM, with Baa3 (Stable) BBB- (Stable) a solid roster of banks • Investment Grade balance sheet with prove
Slide 20: Premier Institutional Corporate Governance
Premier Institutional Corporate Governance… Robust corporate governance standards Committees Investment Committee • Comprised of PGIM executives and Terrafina’s CEO $29Bn $190.4bn 32 • Terrafina’s CEO must approve any acquisition or 2020 Assets Under Global Office disposition of real estate assets T
Slide 21: ESG Milestones
ESG Milestones ESG is one of the top priorities in Terrafina’s strategy ESG Strategy Terrafina’s strategy follows clear objectives and measures KPIs according to 71% 4.8 yrs of board members are Average board member existing risks and opportunities that interacts with stakeholders. Independent tenur
Slide 22: ESG Milestones
ESG Milestones ESG is one of the top priorities in Terrafina’s strategy Environmental Goals 2020-2030 GRESB1 Scores and Ranks Reflect Terrafina’s Commitment to ESG Standards Ahead of its Peers Green Building Certifications – Certify 100% of new developments with a recognized third-party independent
Slide 23: Appendix
Appendix 05
Slide 24: Financial Performance
Financial Performance (US$ in millions, unless otherwise noted) NOI and NOI Margin EBITDA and EBITDA Margin 94.0% 94.2% 94.2% 93.7% 94.2% 94.0% 93.7% 87.6% 89.0% 89.9% 92.1% 92.0% 92.3% 92.1% 82.5% 83.0% 83.1% 84.3% 84.4% 83.9% 84.3% 84.6% 83.7% 83.3% 77.1% 78.4% 79.8% 81.7% 190.0 188.1 170.9 168.5
Slide 25: Credit Metrics
Credit Metrics Net Debt / EBITDA¹ 6.1x Debt / EBITDA¹ 5.7x 5.9x 5.8x 5.9x 5.8x 7.0x 5.5x 5.6x 5.5x 5.5x 5.6x 6.2x 6.3x 6.3x 5.3x 5.3x 6.1x 6.0x 5.9x 6.1x 6.0x 6.0x 6.1x 5.1x 5.7x 5.8x 5.8x 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1
Slide 26: Portfolio's Operating and Financial Highlights
Portfolio’s Operating and Financial Highlights Quarterly Financial 2Q20 3Q20 4Q20 1Q21 2Q21 YoY 2Q20 3Q20 4Q20 1Q21 2Q21 YoY Var. fx 23.3033 22.133 20.6324 20.3323 20.0366 Var. (millions of pesos unless otherwise stated) (millions of dollars unless otherwise stated) Net Collections $1,085 $1,115 $1,
Slide 27: Implied Cap Rate Calculation
Implied Cap Rate Calculation (US$ million, unless otherwise noted) Implied cap rate NAV (+) Investment Properties (Excl. Landbank) 2,330.4 Certificate Price1 1.53 (+) Landbank 42.9 (+) Cash 49.3 (x) Certificates (M) 790.6 (-) Total Debt 985.8 (=) NAV 1,436.7 (=) Market Capitalization 1,209.5 (/) Cer