Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario · OTC:CBAOF
Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario — Terrafina — Investor Presentation (May 2023)
27 slides from Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario's investor presentation, May 2023
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 It may not be reproduced or redistributed to any other person, and it may not be published, in whole or in part, for any purpose.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 1Q23 Solid Fundamentals with PGIM Real Estate portfolio management expertise Industrial Properties • Best Class-A industrial portfolio leased by multinational 276 277 tenants focused on manufacturing for export activities a
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 25.5M sqft “Increase in demand for 194 properties light manufacturing and Occupancy 99.1% logistics in the border area” “Key logistic hub focused on consumer
Slide 8: Growth Strategy: Three-Year Plan (2021-2023)
Growth Strategy: Three-Year Plan (2021-2023) Three-year growth plan ahead of schedule New Developments Asset Recycling Sold at ~US$4.80 per sqft reinvested in 90% of completion; will contribute $140M US$8.8M of annualized NOI in 2023 $45M the development of properties with a ~US$6.50 rent and above
Slide 9: Growth Strategy: Sidecar
Growth Strategy: Sidecar 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 industrial markets. - $2
Slide 10: Sidecar Projected Performance – Two-Step Growth
Sidecar Projected Performance – Two-Step Growth Contribution of Sidecar to Terrafina’s Growth Story Step 1 Step 2 Δ% 2022 Δ% 2022 End of Investment Consolidating / Take- 2022 Period Year 2 – 3 Out Year 5 Sidecar Investment (US$ M) - ~200 ~470 GLA, M sqft 39.4 +50% of Sidecar AUM +100% of Sidecar AUM
Slide 11: Track Record
ap DB TERRAFINA Track Record
Slide 12: Executing an Optimal Growth Strategy Over the Last Nine Years
Executing an Optimal Growth Strategy Over the Last Nine Years… Evolution of Terrafina’s Portfolio at a Glance Terrafina Growth Cycle 2013 1Q23 △% (US$ in millions) 20131 Annualized △% Industrial Properties 132 277 109.0% 1Q23 Gross Leasable Area Rental Revenue 75.0 210.8 181.1% 19.9 39.6 99.0% (msf)
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$140M committed as • US$127M asset sale. part of the three-year Resources used to pay growth plan. Will add down debt and will be US$12.5 million of NOI. • PGIM reaches 19.9M SF of • F
Slide 14: Successfully Executing its Business Plan
Successfully Executing its Business Plan… Proven business model executed across peaks and troughs of economic cycles and… 96.9% 5.70 96.3% 97.0% 95.2% 95.2% 5.71 95.1% 5.50 92.8% 95.0% 93.5% 5.30 5.28 94.9% 93.0% 91.4% 5.10 5.13 5.18 91.0% 4.90 88.6% 5.00 89.0% Mexican Elections 4.90 4.89 1Q20 USMCA
Slide 15: Focus on Sustainability
Focus on Sustainability REAL ESTATE AND ESG ASSESSMENTS ESG RATINGS INDEX AND RECOGNITIONS 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 • Energy data coverage of more than 60% of total GLA • 100% social and environmental risk analysis coverage of total portfolio ENVIRONMENTAL • 32.6% of total lease contracts have a green-lease c
Slide 17: Key Investment Highlights
r 4p BD TERRAFINA Key Investment Highlights
Slide 18: 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 19: Best-in-Class Industrial Portfolio With a High-Quality Tenant Base
1 Best-in-Class Industrial Portfolio With a High-Quality Tenant Base… • 73.3% of our tenants are focused in Renewal Rates (Annual Average) Lease Expiration Schedule1 manufacturing, while 26.7% are in % of Annual Base Rent distribution and logistics • Tenant base comprised primarily of large, Avg. 26
Slide 20: Strategically Diversified in Top Industrial Markets
1 … and Strategically Diversified in Top Industrial Markets Mexico Industrial Breakdown: GLA Distribution by Region Tenant Base Breakdown by Sector (% GLA) • Aerospace: Mexico is a prime location for Aerospace Central Baijo North enhanced by highly qualified workforce. Our tenants 32% 32% participat
Slide 21: 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 83.4% 84.6% 82.0% 82.9% 83.6% 82.6% 82.4% 79.6% 79.9% 81.5% 77.8% 43.6 43.3 42.8 44.2 43.2 43.2 42.5 42.2 39.6 41.3 40.9 42.2 41.0 40.1 40.1 40.1 42.0 41.3 41.0
Slide 22: 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 • Investment Grade balance sheet with prove
Slide 23: Premier Institutional Corporate Governance
Premier Institutional Corporate Governance… Robust corporate governance standards Committees Investment Committee • Comprised of PGIM executives and Terrafina’s CEO $35Bn $209bn 32 • Terrafina’s CEO must approve any acquisition or 2021 Assets Under Global Office disposition of real estate assets Tra
Slide 24: Appendix
r 4p BD TERRAFINA Appendix
Slide 25: Financial Performance
Financial Performance (US$ 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% 83.1% 82.4% 84.4% 83.9% 84.3% 84.6% 83.3% 83.1% 82.4% 83.8% 82.6% 81.8% 81.5% 82.0% 83.7% 182.1 188.6
Slide 26: Credit Metrics
Credit Metrics Net Debt / EBITDA¹ Debt / EBITDA¹ 5.9x 5.8x 6.1x 5.9x 5.8x 5.9x 7.0x 5.6x 5.5x 5.5x 5.6x 5.5x 6.3x 6.1x 6.3x 5.2x 5.1x 6.0x 5.9x 6.0x 6.0x 6.1x 6.1x 6.1x 4.9x 5.1x 5.1x 5.4x 5.3x 5.3x 5.3x 5.2x 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q19 3Q19 4
Slide 27: Implied Cap Rate Calculation
Implied Cap Rate Calculation (US$ million, unless otherwise noted) Implied cap rate NAV (+) Investment Properties (Excl. Landbank) 2,706.3 Certificate Price1 1.72 (+) Landbank 25.1 (+) Cash 27.5 (x) Certificates (M) 772.5 (-) Total Debt 888.4 (=) NAV 1,870.5 (=) Market Capitalization 1,332.0 (/) Cer