Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario · OTC:CBAOF

Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario — Terrafina — Investor Presentation (November 2017)

23 slides from Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario's investor presentation, November 2017

  1. Slide 1: November 2017

    NOVEMBER 2017

  2. 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 It may not be reproduced or redistributed to any other person, and it may not be published, in whole or in part, for any purpose.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

  3. Slide 3: Key investment highlights

    Key investment highlights Proven track record delivering consistent and stable operating and 1 financial results Best-in-class industrial portfolio in strong growing markets and 2 sectors Stable and resilient portfolio with diversified high-quality tenant 3 base 4 Investment grade with access to mai

  4. Slide 4: Delivering results enhancing our growth strategy

    1 Delivering results enhancing our growth strategy Key milestones that propelled and supported our growth story 2017 Current GLA: 37.8MM ft2 • ~US$317MM FO offering to support growth strategy • Acquired in September 2017, 8 industrial properties with a GLA of 1.1MM ft2 • Signed binding document in O

  5. Slide 5: Optimal growth strategy supported by acquisitions and selective development

    Op7mal growth strategy supported by acquisi7ons and 1 selec7ve development Growth Strategy Business Model Execute accretive acquisitions • Take advantage of long-term institutional relationships and Execute Selectively JV partnerships to source off-market deals in fragmented Accretive Pursue market

  6. Slide 6: Disciplined and continuous growth since IPO

    1 Disciplined and con7nuous growth since IPO Strong operating and financial performance Operating Statistics # of Properties and GLA (MM ft2) Occupancy Rate % US$ Rent per ft2 .9% ps 0% / 189 920b 8.7% $5.00 203. 268 95.1% 218 37.8 91.4% $4.78 132 31.0 85.9% $4.60 19.9 IPO (1Q13) FO (3Q14) 3Q17 IPO

  7. Slide 7: Strong performance with consistent growth

    1 Strong performance with consistent growth Strong and consistent rental rates, occupancy and margins Stable market US$ rental rates… …coupled with positive occupancy rates US$ Rent per ft2 % 95.1% ~97% of Leases Are US$-Denominated 96% 94.9% 94.9% 4.99 5.00 93.7% 4.96 93.5% 93.3% 92.8% 4.90 4.88 4.

  8. Slide 8: Solid margins and consistent historical distributions

    1 Solid margins and consistent historical distribu7ons Consistent Performance Attractive margins at the bottom line… …and high % distributions / rental revenues 53.1% 53.1% 57.3% 57.4% 52.2% 56.6% 48.5% 53.0% 2014 2015 2016 3Q17 LTM 2014 2015 2016 3Q17 LTM AFFO Margin Distributions as a % Rental Rev

  9. Slide 9: The most efficiently managed FIBRA in Mexico

    1 The most efficiently managed FIBRA in Mexico Industry Leading Margins 3Q17 NOI Margin 3Q17 EBITDA Margin % % 93.3% 83.7% 82.5% 88.7% 85.7% 80.4% 72.8% 72.6% 3Q17 AFFO Margin 3Q17 Total Distributions % % of Total Revenue 51.4% 51.3% 50.6% 47.6% 48.1% 41.2% 33.7% 45.1% Source Public filings, 2Q17 figu

  10. Slide 10: Positive industry trends

    2 Posi7ve industry trends +10 Years of growth history…a positive outlook Consistent and stable growth trend Sound absorption across markets Industrial Stock (MM ft2) Growth % Industrial Net Absorption (1) (MM ft2) 0.1% 100 91 1 H17): 1 (2006 – 37.9% CAGR 736 758 11 800 674 40% 80 524 541 544 566 59

  11. Slide 11: Leading industrial REIT in Mexico

    2 Leading industrial REIT in Mexico Highest-quality portfolio of a pure-play industrial REIT with solid fundamentals Key Metrics Terrafina Overview Properties Tenants 268 287 l Best-in-class industrial FIBRA with a market capitalization of ~US$1.38Bn (3) GLA 3Q17 Occupancy Rate 37.8MM ft2 95.1% l Di

  12. Slide 12: Best-in-class industrial portfolio

    2 Best-in-class industrial porUolio Strategically diversified portfolio Facility Use – Portfolio Distribution Top 10 Cities GLA (MM ft2) (1) Market Share % (2) Lease term of 3 – 5 years Ciudad Juarez 7.7 1.1% Chihuahua 5.8 0.7% Cuautitlan 4.3 0.6% 72.7% Manufacturing San Luis Potosi 3.4 0.5% Ramos A

  13. Slide 13: Stable and resilient portfolio with diversified high-quality tenant base

    Stable and resilient porUolio with diversified high-quality 3 tenant base Diversified tenant base of renowned multinational companies Limited exposure to tenant risk Tenant base & lease expiration schedule (2) ü Diversified tenant base and lease size mitigates single- % GLA # Tenants 28.8% tenant vac

  14. Slide 14: Investment grade with access to main sources of capital

    4 Investment grade with access to main sources of capital Disciplined financial strategy…with diligently structured debt facilities Leverage Considerations ü Large network of relationships, both from Terrafina and MOODYS Baa3 Credit Ratings (International) PGIM, with solid roster of banks FITCH RATI

  15. Slide 15: World-class corporate governance, experienced management team and PGIM sponsorship

    World-class corporate governance, experienced internal 5 management team and strong sponsorship from PGIM Externally advised by one of the most prestigious real estate advisors in the world (1) Organizational Structure PGIM Real Estate is the real estate investment business of PGIM, Terrafina Albert

  16. Slide 16: Corporate governance (cont'd): technical committee

    World-class corporate governance, experienced internal 5 management team and strong sponsorship from PGIM (cont’d) Independent majority technical committee and corporate governance standards Technical Committee members Committees ● Former Minister of Economic Affairs for the state of Chihuahua Alber

  17. Slide 17: Appendix

    apy . DB TERRAFINA SECTION 2: APPENDIX

  18. Slide 18: Financial performance since IPO

    Financial performance since IPO NOI and NOI Margin – (US$ MM) EBITDA and EBITDA Margin – (US$ MM) 91.2% 91.5% 94.3% 94.3% 94.1% 93.3% 92.1% 92.9% 89.9% 91.1%90.1% 91.1% 87.6%89.0% 88.7%88.2%87.9% 86.4% 88.4% 87.0% 87.9% 85.3% 86.1% 84.8% 84.3% 78.4% 81.8%80.8% 83.7% 79.8% 82.5% 79.6% 78.2% 80.9% 78.

  19. Slide 19: Credit metrics

    Credit metrics Net Debt / EBITDA(1) Debt / EBITDA(1) (2) (2) 15.0x 13.4x 7.7x 8.1x 7.8x 8.2x 8.5x 8.1x 6.8x 6.5x 7.5x 7.2x 6.8x 7.1x 6.7x 6.5x 6.2x 6.1x 6.0x 6.0x 6.1x 6.0x 6.0x 4.7x 4.0x 4.1x 3.9x 4.0x 3.9x 4.0x 3.4x 3.7x 3.2x 3.3x 4.3x 2.7x 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q

  20. Slide 20: Portfolio's operating and financial highlights

    PorUolio’s opera7ng and financial highlights 3Q16 4Q16 1Q17 2Q17 3Q17 3Q16 4Q16 1Q17 2Q17 3Q17 fx 18.7204 19.8128 20.873 18.5666 17.8255 (millions of pesos unless otherwise stated) (millions of dollars unless otherwise stated) Rental Revenues 615.5 660.8 821.2 773.6 734.3 32.9 33.4 40.3 41.6 41.2 Oth

  21. Slide 21: Portfolio's occupancy and rental rates

    PorUolio’s occupancy and rental rates Market information Occupancy Rate Avg. Leasing Occupancy Avg. Leasing Rent/ (As of 1H17) Rent/ Square Foot Terrafina (As of September 30, 2017) Rate Square Foot (dollars) (dollars) North 94.8% 4.65 North 96.6% 4.88 Baja California 96.5% 4.92 Baja California 100.0

  22. Slide 22: Implied cap rate calculation

    Implied cap rate calcula7on Implied cap rate NAV US$ MM, unless otherwise noted US$ MM, unless otherwise noted (+) Investment Properties (Excl. Landbank) 2,068.2 1.76 (+) Landbank 52.9 Certificate Price (1) (Ps$31.29) (+) Cash 365.9 (x) Certificates (MM) 791.0 (-) Total Debt & Liabilities 1,099.3 (=

  23. Slide 23: DW ITERRAFINA

    ay DW ITERRAFINA

Terrafina — Investor Presentation (November 2017) on 6ix