Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario · OTC:CBAOF
Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario — Terrafina — Investor Presentation (March 2024)
25 slides from Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario's investor presentation, March 2024
Slide 1: Investor Presentation
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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 It may not be reproduced or redistributed to any other person, and it may not be published, in whole or in part, for any purpose.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
r 4p BD TERRAFINA Company Overview
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 4Q23 276 Industrial Properties 291 • Best Class-A industrial portfolio leased by multinational tenants focused on manufacturing for export activities US$ Rental Revenues ~99% and logistics • Highest percentage of US$-denomi
Slide 5: Growth Plan
r 4p BD TERRAFINA Growth Plan
Slide 6: Growing Industrial Real Estate Sector
Growing Industrial Real Estate Sector Strong Manufacturing and Logistics – Tailwinds for Industrial Real Estate 1 Asset Class resilience with strong real estate fundamentals - Key presence in Northern/border markets - Vacancy levels at record lows 2 Proximity to USA, strengthen value chains and attr
Slide 7: Terrafina's Growth Strategy
Terrafina’s Growth Strategy Targeting markets with high barriers to entry and underlying industries to remain solid in the long term NORTH GLA 28.2M sqft “Increase in demand for 206 properties light manufacturing and Occupancy 99.2% logistics in the border area” “Key logistic hub focused on consumer
Slide 8: Growth Strategy: Sidecar General Overview
Growth Strategy: Sidecar General Overview Accelerated Growth with Terrafina Capitalizing its Unique Position vis-a-vis Nearshoring Main Characteristics: - 50/50% partnership to directly or indirectly acquire, develop on Terrafina’s land reserves, own, manage industrial buildings in strategic industr
Slide 9: Sidecar First Acquisition
Sidecar First Acquisition Sidecar Strategy – First Transaction closed in 3Q23 Stabilized Portfolio Strategic Locations in supply-constrained Markets (~70% Tijuana and 30% State of Mexico) with potential leasing $209M $14.3 upside Investment In-place NOI 2% Sector Based on GLA 16% 100% 2.1M Industria
Slide 10: Sidecar Second Acquisition
Sidecar Second Acquisition - Logistics and distribution Class-A property closed in January 2024 - Strategic distribution center for a multinational tenant which benefits from nearshoring activities located in Monterrey Stabilized Property $54M $3.6 Investment In-place NOI 100% 548k Occupancy SF GLA
Slide 11: Track Record
ap DB TERRAFINA Track Record
Slide 12: Executing an Optimal Growth Strategy Over the Last +10 Years
Executing an Optimal Growth Strategy Over the Last +10 Years… Evolution of Terrafina’s Portfolio at a Glance Terrafina Growth Cycle 2013 2023 △% (US$ in millions) 20131 2023 △% Industrial Properties 132 291 120.5% Rental Revenue 75 216.5 188.6% Gross Leasable Area 19.9 42.8 115.1% NOI 69.9 201.7 188
Slide 13: That Has Been Delivering Results Since Inception
… That Has Been Delivering Results Since Inception Key milestones that propelled and supported our growth story • US$150M committed as part of the three-year • US$127M asset sale. growth plan. Will add Resources used to pay US$12.5 millions of NOI. down debt and will be Announced a ~US$400 • PGIM re
Slide 14: Successfully Executing its Business Plan
Successfully Executing its Business Plan Proven business model executed across peaks and troughs of economic cycles 98.1% 100.0% 5.90 98.0% 96.4% 97.3% 98.0% 96.1% 95.1% 95.3% 5.96 94.6% 94.7% 96.0% 5.70 5.89 93.2% 92.8% 5.78 94.0% 5.46 5.63 5.50 91.2% 92.0% 89.7% 5.30 5.30 90.0% 5.19 5.15 88.0% 5.1
Slide 15: Focus on Sustainability
Focus on Sustainability REAL ESTATE AND ESG ASSESSMENTS INDEX AND RECOGNITIONS 2021 - S&P Global Industry Movers 2021 & 2024 - Sustainability Yearbook 2022 - Silver Green Lease Leaders Recognition ESG RATINGS TRANSPARENCY AND REPORTING 14
Slide 16: Our Way of Creating Sustainable Value
Our Way of Creating Sustainable Value SOME OF OUR ESG COMMITMENTS AND KPI’S GREEN BUILDING CERTIFICATIONS 27% • Energy data coverage of more than 80% of total GLA • 100% social and environmental risk analysis coverage of total portfolio ENVIRONMENTAL • 32.6% of total lease contracts have a green-lea
Slide 17: Key Investment Highlights
r 4p BD TERRAFINA Key Investment Highlights
Slide 18: Long-term tenant relationships supported by high retention rates
Long-term tenant relationships supported by high retention rates • 72.3% of our tenants are focused on manufacturing, while 27.7% are in distribution and logistics 1 • Tenant base comprised primarily of large, creditworthy multinational companies • Manufacturing tenants have up to 10-year lease term
Slide 19: Strategically Diversified in Top Industrial Markets
… and Strategically Diversified in Top Industrial Markets 1 Mexico Industrial Breakdown: GLA Distribution by Region Tenant Base Breakdown by Sector (% GLA) • Aerospace: Mexico is a prime location for Aerospace enhanced by highly qualified workforce. Our tenants participate in the supply chains of th
Slide 20: Proven Track Record: Consistent and Stable Operating and Financial Results
Proven Track Record: Consistent and Stable Operating and Financial Results EBITDA shows robust growth and EBITDA margin remains consistent 60 83.4% 84.6% 9 0.0% 82.9% 83.6% 82.6% 82.4% 81.5% 82.0% 81.5% 79.6% 77.8% 79.9% 8 0.0% 50 43.6 43.3 42.8 44.2 43.2 43.2 44.5 44.6 44.9 7 0.0% 42.5 42.2 42.4 39
Slide 21: 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 Baa3 (Stable) BBB- (Stable) PGIM, with a solid roster of banks 1 2 • Investment Grade balance sheet with p
Slide 22: Premier Institutional Corporate Governance
Premier Institutional Corporate Governance… Robust corporate governance standards Committees 32 28 18 • Oversees the performance of the Finance, Audit Committee Accounting and Tax functions Francisco Martinez • Reviews documents prepared by external Alberto Chretin Carlos Gomez (100% Independent) In
Slide 23: Financial Performance
Financial Performance (US$ in millions, unless otherwise noted) NOI and NOI Margin EBITDA and EBITDA Margin 93.8% 93.6% 94.2% 94.2% 93.7% 94.2% 94.0% 93.7% 93.8% 93.6% 93.8% 93.4% 93.5% 93.5% 93.1% 93.0% 93.3% 93.3% 83.1% 82.4% 84.4% 83.9% 84.3% 84.6% 83.7% 83.3% 83.1% 82.4% 83.8% 82.6% 81.8% 81.5%
Slide 24: Credit Metrics
Credit Metrics Net Debt / EBITDA¹ Debt / EBITDA¹ 7.0x 5.9x 5.8x 6.1x 5.9x 6.3x 6.1x 6.3x 5.8x 5.9x 5.9x 6.0x 6.0x 6.1x 6.1x 6.1x 5.5x 5.5x 5.6x 5.5x 5.4x 5.4x 5.3x 5.3x 5.3x 5.2x 5.3x 5.6x 5.6x 5.2x 5.1x 4.9x 5.1x 5.1x 5.0x 5.0x 19 19 20 20 20 20 21 21 21 21 22 22 22 22 23 23 23 23 19 19 20 20 20 20
Slide 25: Implied Cap Rate Calculation
Implied Cap Rate Calculation (as of March 2, 2024 using 4Q23 earnings results) (US$ million, unless otherwise noted) Implied cap rate NAV (+) Investment Properties (Excl. Landbank) 2,974.0 Certificate Price1 2.41 (+) Landbank 29.1 (+) Cash 37.6 (x) Certificates (M) 772.5 (-) Total Debt 990.8 (=) NAV