CIBanco SA CTF Bursatiles Fiduciarios Inmobiliario · OTC:CBAOF
CIBanco SA CTF Bursatiles Fiduciarios Inmobiliario — Terrafina — Investor Presentation (March 2018)
25 slides from CIBanco SA CTF Bursatiles Fiduciarios Inmobiliario's investor presentation, March 2018
Slide 1: March 2018
MARCH 2018
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 It may not be reproduced or redistributed to any other person, and it may not be published, in whole or in part, for any purpose.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: 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
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 • Acquired in December 2017, 1
Slide 5: Milestones that strengthen our financial position
1 Milestones that strengthen our financial posi8on Two key milestones completed in 2017 that strengthen Terrafina’s Balance Sheet Equity Strategy Debt Strategy ü US$317mm1 Equity Issuance in July 2017 through our Shelf ü US$350mm Unsecured Term Loan in October 2017: Registration Program2 ü Proceeds u
Slide 6: Milestones that strengthen our growth strategy
1 Milestones that strengthen our growth strategy M&A Activity Portfolio A Portfolio B Portfolio C Consolidated Transaction Type Off-market transactions sourced by Terrafina and PGIM relationships Closed in December Closed in September Closed in September Expect to fully contribute to Status 2017 201
Slide 7: Optimal growth strategy supported by acquisitions and selective development
Op8mal growth strategy supported by acquisi8ons and 1 selec8ve development Growth Strategy Business Model Execute accretive acquisitions • Take advantage of long-term institutional relationships and Execute Selectively JV partnerships to source off-market deals in fragmented Accretive Pursue market
Slide 8: Disciplined and continuous growth since IPO
1 Disciplined and con8nuous growth since IPO Strong operating and financial performance Operating Statistics # of Properties and GLA (MM ft2) Occupancy Rate % US$ Rent per ft2 .3% ps 9.6% % / 104 960b $5.04 115.2 284 $4.99 260 94.90% 95.5% 218 40.6 36.5 91.4% $4.78 132 31.0 85.9% $4.60 19.9 IPO (1Q1
Slide 9: Strong performance with consistent growth
1 Strong performance with consistent growth Strong and consistent rental rates, occupancy and margins Stable market US$ rental rates… …coupled with positive occupancy rates US$ Rent per ft2 % ~97% of Leases Are US$-Denominated 5.04 95.5% 4.99 5.00 96% 94.9% 94.9% 95.1% 4.96 93.7% 93.5% 93.3% 92.8% 4
Slide 10: Solid margins and consistent historical distributions
1 Solid margins and consistent historical distribu8ons Consistent Performance Attractive margins at the bottom line… …and high % distributions / rental revenues 53.1% 57.3% 52.2% 52.4% 56.6% 56.9% 48.5% 53.0% 2014 2015 2016 2017 2014 2015 2016 2017 AFFO Margin Distributions as a % Rental Revenues Ac
Slide 11: The most efficiently managed REIT in Mexico
1 The most efficiently managed REIT in Mexico Industry Leading Margins 4Q17 NOI Margin 4Q17 EBITDA Margin % % 93.0% 83.6% 90.1% 85.2% 78.8% 79.8% 75.1% 74.0% 4Q17 AFFO Margin 4Q17 Total Distributions % % of Total Revenue 54.1% 51.5% 51.5% 49.6% 46.2% 39.0% 38.9% 31.3% Source Public filings, 4Q17 figur
Slide 12: Positive industry trends
2 Posi8ve 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) 10.2% 100 91 9 M17): 37.9% (2006 – CAGR 736 766 11 800 674 40% 80 524 541 544 566 59 6
Slide 13: 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 284 299 l Best-in-class industrial FIBRA with a market capitalization of ~US$1.28Bn (3) GLA 4Q17 Occupancy Rate 40.6MM ft2 95.5% l Di
Slide 14: Best-in-class industrial portfolio
2 Best-in-class industrial porTolio 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 7.8 1.1% Chihuahua 5.8 0.7% Ramos Arizpe 4.5 0.6% 73.1% Manufacturing Cuautitlan 4.3 0.5% San Luis P
Slide 15: Stable and resilient portfolio with diversified high-quality tenant base
Stable and resilient porTolio 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 tenant vacancy risk 34.3%
Slide 16: 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 Baa3 Credit Ratings (International) PGIM, with solid roster of banks BBB- ü ~US$200MM
Slide 17: World-class corporate governance, experienced internal management team and strong sponsorship from PGIM
World-class corporate governance, experienced internal 5 management team and strong sponsorship from PGIM Externally advised by one of the most prestigious real estate advisors in the world (1) Organizational Structure PGIM Real Estate is the real estate investment business of PGIM, Terrafina Albert
Slide 18: Corporate governance (cont'd): Independent technical committee
World-class corporate governance, experienced internal 5 management team and strong sponsorship from PGIM (cont’d) Independent majority technical committee and corporate governance standards Technical Committee members Committees ● Former Minister of Economic Affairs for the state of Chihuahua Alber
Slide 19: Section 2: Appendix
apy . DB TERRAFINA SECTION 2: APPENDIX
Slide 20: Financial performance since IPO
Financial performance since IPO NOI and NOI Margin – (US$ MM) EBITDA and EBITDA Margin – (US$ MM) $166.8 93.3% 94.3% 94.3% 92.9% 94.1% 93.0% 92.1% 92.0% 91.1% 91.2% 91.5% 91.1% 89.0% 89.9% 88.7%88.2%87.9% 88.4% 90.1% 86.1% 87.0% 87.9% 87.6% 86.4% 83.7% 83.6% 83.0% 84.3% 82.9% 84.8% 85.3% 78.4% 82.5%
Slide 21: Credit metrics
Credit metrics Net Debt / EBITDA(1) Debt / EBITDA(1) (2) (2) 15.0x 13.4x 7.7x 8.1x 7.8x 8.2x 8.5x 8.1x 7.5x 6.7x 6.5x 6.2x 6.1x 5.2x 6.0x 6.0x 6.1x 6.0x 6.0x 6.2x 5.2x 4.0x 4.1x 3.9x 4.0x 3.9x 4.0x 4.6x 5.0x 3.4x 3.7x 3.2x 3.3x 3.4x 4.3x 2.7x 2.9x 3.3x 2Q133Q134Q131Q142Q143Q144Q141Q152Q153Q154Q151Q1
Slide 22: Portfolio's operating and financial highlights
PorTolio’s opera8ng and financial highlights 1Q17 2Q17 3Q17 4Q17 4Q16 1Q17 2Q17 3Q17 4Q17 4Q16 fx 20.3873 18.5666 17.8251 18.9259 19.8128 (millions of pesos unless otherwise stated) (millions of dollars unless otherwise stated) Rental Revenues 821.2 773.6 734.3 828.6 660.8 40.3 41.6 41.2 43.8 33.4 Ot
Slide 23: Portfolio's occupancy and rental rates
PorTolio’s occupancy and rental rates Market information Occupancy Rate Avg. Leasing Occupancy Avg. Leasing Rent/ (As of 3Q17) Rent/ Square Foot Terrafina (As of 4Q17) Rate Square Foot (dollars) (dollars) North North 94.3% 4.65 97.1% 4.96 Baja California 94.3% 4.68 Baja California 100.0% 4.32 Sonora
Slide 24: Implied cap rate calculation
Implied cap rate calcula8on Implied cap rate NAV US$ MM, unless otherwise noted US$ MM, unless otherwise noted (+) Investment Properties (Excl. Landbank) 2,328.8 1.50 (+) Landbank 52.7 Certificate Price (1) (Ps$30.65) (+) Cash 162.6 (x) Certificates (MM) 791.0 (-) Total Debt 1,059.1 (=) NAV 1,485.0
Slide 25: DW ITERRAFINA
ay DW ITERRAFINA