Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario · OTC:CBAOF
Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario — Terrafina — Investor Presentation (June 2016)
25 slides from Cibanco Sa Ctf Bursatiles Fiduciarios Inmobiliario's investor presentation, June 2016
Slide 1: Terrafina June 2016
JUNE 2016 ap BD TERRAFINA
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 It may not be reproduced or redistributed to any other person, and it may not be published, in whole or in part, for any purpose.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: Contents
CONTENTS ● Performance Update / Investment Highlights ● Growth Strategy ● Financial Overview ● Appendix 3
Slide 4: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS High Quality, Geographically Diversified Industrial Portfolio of Significant Scale Diversified Tenant Base Comprised Primarily of Large Multinational Companies USD-Denominated Rents, Supported by Underlying Revenues of Export-Driven Tenants Resilient Business Model with Con
Slide 5: Company Overview
COMPANY OVERVIEW Terrafina at a Glance Terrafina Overview % GLA by State(2) o Owner of high-quality industrial portfolio in Mexico, with North 54.6% market capitalization of ~US$1.0 billion(1) and enterprise value of ~US$1.5 Baja California Sonora 3.8% Bajio 25.1% billion(1) 0.9% Chihuahua 31.9% – 2
Slide 6: High Quality, Geographically Diversified Industrial Portfolio
HIGH QUALITY, GEOGRAPHICALLY DIVERSIFIED INDUSTRIAL PORTFOLIO Terrafina’s portfolio is strategically diversified by geography, property type and industry to take advantage of current macro trends Portfolio Distribution by Facility Type Terrafina’s Top 10 Cities by GLA1 (mm sqf) Ciudad Juarez 5.0 Chi
Slide 7: Diversified and Strong Tenant Base
DIVERSIFIED AND STRONG TENANT BASE Tenant base comprised primarily of large creditworthy multinational companies Limited Exposure to Tenant Risk Tenant Base (% of GLA) o Diversified tenant base and lease size reduces single-tenant vacancy risk o Portfolio has 234 leases with 217 tenants o No single
Slide 8: USD-Denominated, Stable Cash Flows Supported by High Margins
USD-DENOMINATED, STABLE CASH FLOWS SUPPORTED BY HIGH MARGINS Highlights Increasing Occupancy Combined with Rental Rate Growth o Stable rollover with high historical renewal rate o 70% of GLA for manufacturing facilities, which typically have high $6.00 100.0% switching costs and longer lease terms,
Slide 9: Contents
CONTENTS ● Performance Update / Investment Highlights ● Growth Strategy ● Financial Overview ● Appendix 9
Slide 10: Growth Strategy
GROWTH STRATEGY High-Quality, Pure-Play Industrial Portfolio Disciplined, Value-Add Investment Approach o Sustain industry leading margins and o Seek stabilized portfolios with strong cash drive profitability through hands-on flow characteristics asset management – Target markets with existing prese
Slide 11: Contents
CONTENTS ● Performance Update / Investment Highlights ● Growth Strategy ● Financial Overview ● Appendix 11
Slide 12: Strong Results Since IPO
STRONG RESULTS SINCE IPO NOI and NOI Margin – (US$ mm) EBITDA and EBITDA Margin – (US$ mm) 87.6% 89.0% 89.9% 88.7% 88.2% 87.9% 86.4% 88.4% 91.1% 90.1% 91.2%91.5% 91.1% 86.1% 87.0% 79.8% 79.6% 80.9% 81.8% 80.8% 79.9% 77.1% 78.4% 76.2% 78.2% 77.8% 76.8% 78.2% $126.3 $123.6 72.2% 68.1% $111.2$109.7 $69
Slide 13: Portfolio Highlights
PORTFOLIO HIGHLIGHTS 1Q16 1Q16 1Q16 1Q16 Quarterly Financial 1Q15 4Q15 1Q16 vs. vs. 1Q15 4Q15 1Q16 vs. vs. 4Q15 1Q15 4Q15 1Q15 fx 14.9314 16.7515 18.0667 (millions of pesos unless otherwise stated) (millions of dollars unless otherwise stated) Rental Revenues 499 527.5 589.0 11.7% 18.0% 33.4 31.5 32
Slide 14: Outstanding Debt
OUTSTANDING DEBT Millions of Interest Extension Currency Terms Maturity dollars Rate OpBon (as of December 31, 2015) Long Term Debt •Debt faciliBes diligently structured to maximize distribuBons to shareholders CiRbank1 Libor + Interest Only Aug 2018 Aug 2019 0.0 Dollars 2.40% •Credit loans are set
Slide 15: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS High Quality, Geographically Diversified Industrial Portfolio of Significant Scale Diversified Tenant Base Comprised Primarily of Large Multinational Companies USD-Denominated Rents, Supported by Underlying Revenues of Export-Driven Tenants Resilient Business Model with Con
Slide 16: Contents
CONTENTS ● Performance Update / Investment Highlights ● Growth Strategy ● Financial Overview ● Appendix 16
Slide 17: Company Overview: Company History
COMPANY OVERVIEW 2015 o Successfully concluded a Company History US$101 million asset recycling strategy o Closed a US$59 million acquisition of 10 industrial properties o Signed US$375 million unsecured revolver facility 2013 o Achieved Investment Grade o PGIM stabilizes & rolls-up Ind. credit rati
Slide 18: Industry Overview: Industrial Real Estate in Mexico
INDUSTRY OVERVIEW Industrial Real Estate in Mexico Industrial Real Estate Inventory (mm sqf) Industrial Market Absorption (mm sqf) 90 .1% CAGR ‘08–’15 : 4 40 33 31 30 27 23 21 19 2 6.0% 7.5% 6.8% 5.7% 4.8% 4.2% 6.0% 5.6% 108.6 New Deliveries Vacancy Rate Average Industrial Annualized Rent (US$/sqf)
Slide 19: Resilient Business Model with Consistent Performance
RESILIENT BUSINESS MODEL WITH CONSISTENT PERFORMANCE Resilient portfolio managed by a team of real estate professionals, proven in all stages of the cycle GLA (mm sqf) Occupancy Same Store 1-Yr Occupancy IPO and AI / Kimco Asset Sale / Portfolio PGIM Fund Automotive / Global Financial Recovery Acqui
Slide 20: PGIM Sponsorship
PGIM SPONSORSHIP o PGIM is the real estate investment management business of Prudential Financial, Inc. – PGIM has an established history in the global real estate investment business since 1970 o More than 650 professionals in 18 locations with gross assets under Real Estate Investors management of
Slide 21: Terrafina Organizational Structure
TERRAFINA ORGANIZATIONAL STRUCTURE Third Party Internal Management Subsidiary External Advisor - PGIM Property Managers Alberto Chretin o Property operations Alfonso Munk Enrique Lavín Chief Executive Officer Managing Director & CIO Executive Director & Head of the Americas of Capital Markets Latin
Slide 22: Terrafina Technical Committee
TERRAFINA TECHNICAL COMMITTEE World-Class Corporate Governance and Strong Sponsorship from PGIM Board of Directors o Comprised of PGIM executives and o Former Minister of Economy for the state of Chihuahua Terrafina’s CEO Alberto Chretin o 18 years of experience at nationally-recognized industrial r
Slide 23: Net Asset Value Calculation
NET ASSET VALUE CALCULATION NAV Calculation (+)Investment Properties 1,613.6 (+)Land 47.5 (+)Cash 256.0 (-)Total Debt and Liabilities 743.3 NAV 1,173.9 Outstanding CBFIs 607.5 NAV per CBFI (dollars) 1.9 Cap Rate Calculation with NAV results Average Share Price (USD$) 1.9 (x) CBFIs (million shares) 6
Slide 24: Implied Cap Rate Calculation
IMPLIED CAP RATE CALCULATION Implied Cap Rate Average Share Price (USD$)¹ 1.67 (x) CBFIs (million shares) 607.5 (=) Market Cap 1,016.6 (+) Total Debt 705.5 (-) Cash 256 (=) Enterprise Value 1,466.1 (-) Landbank 47.5 (=) Implied Operating Real Estate Value 1,418.6 2016e NOI 133 Implied Cap Rate 9.4%
Slide 25: Terrafina
ap BD TERRAFINA