Macquarie Mexican REIT (MMREIT) (BMV: FIBRAMQ) today announced its financial results for the fourth quarter and full year 2014, including a 43.6% and 27.8% increase in proportionately combined Funds From Operations (“FFO”), respectively. The increase in both periods reflects contributions to MMREIT’s financial results from acquisitions made during the year. The growth in FFO per certificate takes into account an increase in the weighted average number of certificates outstanding resulting from a September 2014 global offering of 206.6 million new certificates.
“I am pleased to report that the third quarter’s industrial leasing momentum carried over into our year end and I am especially encouraged by the uptick in interest we are seeing in northern markets,” said Jaime Lara, chief executive officer, MMREIT. “We consider this a confirmation of the continued strength of the recovery in that region.”
Following the strong performance of the MMREIT portfolio in the fourth quarter, on February 26, 2015, the Manager’s board of directors authorized a distribution of Ps.0.354 per certificate for the period, payable on March 13, 2015 to holders of record on March 12, 2015. MMREIT certificates will commence trading ex-distribution on March 10, 2015. The distribution represents approximately 85.8% of the FFO generated by MMREIT in the quarter. Consistent with its guidance MMREIT has distributed 97.0% of FFO for the full year 2014.
Commencing with the first quarter of 2015, MMREIT will use Adjusted Funds From Operations (“AFFO”) as the basis for determining distributions. MMREIT believes that AFFO more closely aligns with the sustainable cash generating capability of MMREIT’s portfolio over the long term, after taking into consideration necessary and appropriate reinvestments and other items, which have been funded out of surplus cash in prior periods. MMREIT reported AFFO for the fourth quarter of Ps.300.7 million and Ps.1,052.9 million for the full year 2014. The Ps.0.354 per certificate distribution is equal to 95.5% of AFFO in the fourth quarter of 2014.
MMREIT signed a record level of industrial leases in the fourth quarter, including new leases and expansions totaling 85,700 square meters (922,300 square feet). MMREIT made substantial progress towards its objective of increasing portfolio-wide occupancy by 250 basis points over levels achieved at the end of the third quarter in 2014 by the end of 2015.
Highlights for the quarter include:
- 4-year lease for approximately 19,900 square meters (214,700 square feet) of industrial space in Nogales
- 10-year lease for approximately 10,200 square meters (110,200 square feet) of industrial space in Reynosa
- 3-year lease for approximately 9,900 square meters (106,100 square feet) of industrial space in Nuevo Laredo
- 7-year lease for approximately 9,700 square meters (104,500 square feet) of industrial space in Reynosa
- 6-year lease for approximately 5,200 square meters (56,300 square feet) of industrial space in Ciudad Juarez
“Our internal property administration team was able to increase occupancy quarter-over-quarter despite having high rollover. It achieved this by doing an excellent job of meeting the needs of existing and prospective tenants,” noted Lara. “As a result of their efforts, we were able to renew a number of leases as well as bring in seven new customers in the fourth quarter alone. As important, the quality of the leases we are signing continues to improve in terms of recoveries and landlord control over property condition. We also noted generally higher occupancy in major markets and a corresponding trend towards reduction of rent concessions.”
MMREIT reported that the key major markets of Ciudad Juarez, Tijuana and Reynosa were fundamentally stronger heading into 2015 compared with early 2014. “In each of these markets, we observed fundamentally sound market conditions: occupancy in excess of 92%, limited supply of Class 'A' industrial space, renewed activity in Class 'B' properties, and a lack of significant volume of speculative building,” noted Lara.
On February 18, 2015, MMREIT announced it successfully completed the previously announced acquisition of a 59,200 square meter (637,000 square foot) two-building industrial property located in a prime location in the Monterrey, Nuevo Leon market. The acquisition is expected to generate US$5.2 million (approximately Ps.77.5 million) of NOI for 2015 on an annualized basis.
“We have access to approximately US$440 million available for acquisitions through a combination of cash and certificates held in treasury, on an unlevered basis, and are pursuing a robust pipeline of opportunities,” said Lara. “The focus of our acquisition strategy continues to be on the acquisition of high-quality properties across the industrial, retail and office sectors.”
Lara believes that the resources available to MMREIT can be successfully deployed during 2015. “We are evaluating a strong pipeline of approximately US$650 million of high-quality properties,” he noted.
Results for the Fourth Quarter and Full Year Ended December 31, 2014
MMREIT reported a 34.6% increase in proportionately combined revenues to Ps.642.6 million for the quarter ended December 31, 2014 compared with Ps.477.6 million in the prior comparable period. Proportionately combined revenues for the full year 2014 increased 36.7% to Ps.2,341.0 million from Ps.1,712.2 million in the prior comparable period. The increase in both the quarter and twelve month periods primarily reflects acquisitions concluded during the year. MMREIT completed acquisitions totaling 208,000 square meters (2.2 million square feet) of retail/office space in 2014.
FFO increased 43.6% to Ps.334.9 million, or Ps.0.413 per certificate, in the fourth quarter compared with Ps.233.2 million, or Ps.0.395 per certificate on a weighted average basis, in the prior comparable period. FFO increased 27.8% to Ps.1,184.6 million, or Ps.1.78 per certificate on a weighted average basis, for the full year 2014 compared with Ps.927.0 million, or Ps.1.62 per certificate on a weighted average basis, in 2013.
Figures in millions | Quarter Ended December 2014 | Quarter Ended December 2013 | Variance Ps. | Variance % | ||||||||
Total revenues | Ps.642.6 | Ps.477.6 | Ps.165.0 | 34.6% | ||||||||
Net operating income (NOI) | Ps.533.0 | Ps.426.4 | Ps.106.6 | 25.0% | ||||||||
EBITDA | Ps.473.2 | Ps.366.5 | Ps.106.7 | 29.1% | ||||||||
Funds from Operations (FFO) | Ps.334.9 | Ps.233.2 | Ps.101.6 | 43.6% | ||||||||
Adjusted Funds from Operations (AFFO) | Ps.300.7 | N/A | N/A | N/A | ||||||||
All figures are subject to rounding. Any arithmetic inconsistencies are due to rounding. |
Figures in millions | Full Year Ended December 2014 | Full Year Ended December 2013 | Variance Ps. | Variance % | ||||||||
Total revenues | Ps.2,341.0 | Ps.1,712.2 | Ps.628.8 | 36.7% | ||||||||
Net operating income (NOI) | Ps. 1,988.6 | Ps. 1,534.0 | Ps.454.6 | 29.6% | ||||||||
EBITDA | Ps.1,783.4 | Ps.1,323.9 | Ps.459.6 | Ps.34.7% | ||||||||
Funds from Operations (FFO) | Ps.1,184.6 | Ps.927.0 | Ps.257.8 | 27.8% | ||||||||
Adjusted Funds from Operations (AFFO) | Ps.1,052.9 | N/A | N/A | N/A | ||||||||
All figures are subject to rounding. Any arithmetic inconsistencies are due to rounding. | ||||||||||||
Net operating income (“NOI”) includes lease-related income and other variable income, less property operating expenses (including property administration fees and expenses). Earnings before interest, tax, depreciation and amortization (“EBITDA”) includes NOI less Fund-level management fees, corporate expenses, administrative expenses, professional fees and legal expenses. Funds from Operations (“FFO”) is equal to EBITDA plus interest income less interest expense. MMREIT derives AFFO by adjusting FFO for normalized capital expenditure, tenant improvements and leasing commissions. AFFO may be calculated in a different manner by other market participants thereby limiting its use as a comparative measure. Use of AFFO in the analysis of the financial performance of MMREIT should be in addition to and not in lieu of other financial measures as required under International Financial Reporting Standards.
Gross Leasable Area (GLA)
MMREIT’s portfolio comprises GLA of approximately 3,100,000 square meters (33,400,000 square feet) as of December 31, 2014, including approximately:
- 2,700,000 square meters (28,600,000 square feet) of industrial properties
- 251,000 square meters (2,700,000 square feet) of wholly owned retail/office properties
- 192,400 square meters (2,100,000 square feet) of retail/office properties held through the 50/50 joint venture with Grupo Frisa.
For purposes other than MMREIT’s consolidated financial statements prepared under IFRS, MMREIT reports revenue and other financial metrics on a proportionately combined basis, including the results for the joint venture with Grupo Frisa in proportion to its 50% interest.
Industrial Segment
As of December 31, 2014, MMREIT owned 259 industrial properties located in 21 cities across 15 Mexican states. Industrial segment operating highlights include:
Industrial Segment Metrics | As at December 31, 2014 | As at December 31, 2013 | ||||||
Gross Leasable Area (Square Meters) | 2.7 million | 2.7 million | ||||||
Occupancy rate | 90.0% | 90.3% | ||||||
Rolling average occupancy rate (12 month average) | 89.2% | 89.5% | ||||||
Average monthly rent per leased square meter | US$4.46 | US$4.49 | ||||||
Rolling 12 month average lease rate per square meter | US$4.49 | US$4.55 | ||||||
Tenant retention rate | 67% | 58% | ||||||
Weighted average lease term (by annualized base rent) | 3.1 years | 3.2 years | ||||||
Period-over-period occupancy rates decreased slightly as a result of high lease rollover in 2014. Occupancy rates across the industrial segment increased sequentially as a result of continued improvement in the underlying fundamentals of Mexico’s manufacturing sector and strong gains across the US economy. Property demand in the industrial segment is closely correlated with the strength of the US economy. In particular, MMREIT saw improvement in border property markets including Ciudad Juarez, Reynosa and Nuevo Laredo.
“We believe tenant demand in certain key markets will be stronger in 2015 than it was in 2014. In particular, we expect to see increased rental rates and occupancy levels in Ciudad Juarez, Tijuana and Reynosa, which should have a positive effect on our performance,” stated Lara.
Lara also noted that leasing activity continues to be driven by the positive momentum in Mexico’s manufacturing sector and the tailwind of a competitive foreign exchange rate that makes Mexican exports attractive.
Rental rates based on MMREIT’s industrial rent roll as of December 31, 2014 decreased slightly to an average of US$4.46 per square meter, per month, from US$4.49 per square meter, per month, at the end of the fourth quarter of 2013. This decrease is primarily a result of the signing of leases at lower rates in more challenged markets.
Retail/Office Segment
As of December 31, 2014, MMREIT owned 17 retail/office properties in six cities, nine of which are held through the 50/50 JV with Grupo Frisa. Approximately 72.2% of MMREIT’s retail/office GLA is located in the Mexico City Metropolitan Area, increasing to 90.4% when adding the Monterrey, Guadalajara and Cancun markets.
Retail/Office Segment Metrics | As at December 31, 2014 | As at December 31, 2013 | |||||
Gross Leasable Area (square meters)1/ | 443,700 | 237,000 | |||||
Occupancy rate | 94.1% | 97.3% | |||||
Average monthly rent per leased square meter | 2/ Ps.139.79
US$9.49 | 3/ Ps.126.28
US$9.67 | |||||
Rolling 12 month average lease rate per square meter | 4/ Ps.136.55
US$10.23 | 5/ Ps.126.17 US$9.65 | |||||
Weighted average lease term (by annualized base rent) | 5.7 years | 6.4 years |
1/ Includes 100% of the retail/office area in the 50/50 JV with Grupo Frisa 2/ FX 14.7348 Peso/USD 3/ FX 13.0652 Peso/USD 4/ FX 13.3609 Peso/USD 5/ FX 13.0744 Peso/USD. Abbreviated quarter; 4Q13 is the first quarter in which MMREIT included retail/office properties |
Retail/office segment occupancy decreased 3.2% year-over-year primarily as a result of the integration of a nine-property portfolio that MMREIT completed in the first quarter of 2014, which had an overall occupancy of 90.1% at acquisition.
“I am pleased with the performance of our retail/office segment and believe we have assembled a high-quality portfolio of properties located in the strongest performing metropolitan markets in Mexico,” stated Lara.
Management has indicated that it will focus on expanding existing retail properties and generating ancillary income.
Peso denominated retail rental rates increased when compared with the prior corresponding quarter, primarily due to the lease up of higher yielding spaces for speciality and small shop retailers.
Retail/Office Segment Leasing Activity
MMREIT reported signing 43 new and renewed retail/office leases totaling 3,100 square meters (32,800 square feet) during the quarter.
2015 Distribution Guidance
For the full year 2015 MMREIT estimates total distributions of between Ps.1.45 and Ps.1.50 per certificate based on a payout ratio of between 95% and 100% of the AFFO generated by MMREIT’s existing portfolio, including MMREIT’s most recent industrial acquisition in Monterrey that completed on February 18, 2015. This estimate does not include any additional AFFO generated by potential acquisitions during 2015. MMREIT intends to pay distributions on a quarterly basis.
MMREIT estimates the annual range of distributions per certificate based on:
- an average exchange rate for 2015 of Ps.14.37 per US dollar
- average portfolio-wide occupancy for 2015 of between 91.5% and 92.5%
- NOI margins for 2015 similar to the actual levels of 2014: approximately 91% for the industrial portfolio and approximately 84% for the retail/office portfolio (excluding tenant recoveries)
- earning an average of 2.5% per annum interest income on Peso-denominated cash at bank balances during 2015
- certificates on issue remaining at 811,363,500 during 2015
The payment of a cash distribution is at all times subject to the approval of the board of directors of the Manager, the continued stable performance of the properties in the portfolio, and prevailing economic conditions.
Disclosures Relating to Leverage
In accordance with the applicable FIBRA regulations:
- MMREIT complies with the leverage limit of 50%, with leverage of 39.6% as of December 31, 2014
- MMREIT complies with the minimum debt service coverage ratio (DSCR) of 1.0x, with a DSCR of 5.2x as of December 31, 2014
Please refer to the Supplementary Financial Information for details of how the above ratios are calculated together with detailed disclosures regarding MMREIT’s portfolio-level debt facilities. MMREIT’s audited financial statements for the year ended December 31, 2014 will be published after MMREIT’s annual holders’ meeting scheduled for April 23, 2015.
Webcast and Conference Call
Macquarie Mexican REIT will host an earnings conference call and webcast presentation on Friday, February 27, 2015 at 7:30 a.m. CT / 8:30 a.m. ET. The conference call, which will also be webcast, can be accessed online at www.mmreit.com or by dialing toll free +1-877-304-8957. Call participants from outside the United States may dial +1-973-638-3235. Please ask for the Macquarie Mexican REIT Fourth Quarter and Full Year 2014 Earnings Call.
An audio replay will be available two hours after the call’s completion through midnight ET on March 1, 2015, by dialing +1-855-859-2056 or +1-404-537-3406 for callers outside the United States. The pass code for the replay is 71863672. A webcast archive of the conference call and a copy of MMREIT’s financial information for the fourth quarter and full year 2014 will also be available on MMREIT’s website, www.mmreit.com.
About Macquarie Mexican REIT
Macquarie Mexican REIT (MMREIT) (BMV: FIBRAMQ) is a real estate investment trust (fideicomiso de inversíon en bienes raices), or FIBRA, listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores) targeting industrial, retail and office real estate opportunities in Mexico, with a primary focus on stabilized income-producing properties. MMREIT’s portfolio consists of 260 industrial properties and 17 retail/office properties, located in 24 cities across 19 Mexican states (as of February 18, 2015). Nine of the retail/office properties are held through a 50/50 joint venture with Grupo Frisa. MMREIT is managed by Macquarie México Real Estate Management, S.A. de C.V. which operates within the Macquarie Infrastructure and Real Assets division of Macquarie Group. For more information please visit www.mmreit.com.
MIRA is a business within the Macquarie Asset Management division of Macquarie Group and a global alternative asset manager focused on real estate, infrastructure, agriculture and energy assets. MIRA has significant expertise over the entire investment lifecycle, with capabilities in investment sourcing, investment management, investment realization and investor relationships. Established in 1996, MIRA has approximately US$100 billion of total assets under management as of December 31, 2014 with more than 400 employees managing 50 listed and unlisted funds worldwide.
About Macquarie Group
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Macquarie’s main business focus is making returns by providing a diversified range of services to clients. Macquarie acts on behalf of institutional, corporate and retail clients and counterparties around the world. Founded in 1969, Macquarie operates in more than 70 office locations in 28 countries. Macquarie employs approximately 14,100 people and has assets under management of over US$372 billion (as of September 30, 2014).
Cautionary Note Regarding Forward-looking Statements: This release may contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ significantly from these forward-looking statements.
None of the entities noted in this document is an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities.
THIS RELEASE IS NOT AN OFFER FOR SALE OF SECURITIES IN THE UNITED STATES, AND SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED.
THIS ANNOUNCEMENT IS NOT FOR RELEASE IN ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31, 2014 (UNAUDITED) AND 2013 | ||||||||
CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED) | ||||||||
Dec 31, 2014 | Dec 31, 2013 | |||||||
$’000 | $’000 | |||||||
Current assets | ||||||||
Cash and cash equivalents | 5,425,062 | 2,118,348 | ||||||
Restricted cash | 31,617 | 119,730 | ||||||
Trade and other receivables | 116,944 | 85,963 | ||||||
Value added tax receivable | 199,129 | 663,452 | ||||||
Other assets | 99,925 | 75,142 | ||||||
Total current assets | 5,872,677 | 3,062,635 | ||||||
Non-current assets | ||||||||
Restricted cash | 147,155 | 109,854 | ||||||
Other assets | 58,682 | 14,145 | ||||||
Equity accounted investees | 930,415 | - | ||||||
Goodwill | 931,605 | 931,605 | ||||||
Investment properties | 27,612,778 | 23,514,719 | ||||||
Total non-current assets | 29,680,635 | 24,570,323 | ||||||
Total assets | 35,553,312 | 27,632,958 | ||||||
Current liabilities | ||||||||
Trade and other payables | 248,555 | 198,936 | ||||||
Interest-bearing liabilities | - | 650,310 | ||||||
Other liabilities | 93,598 | 182,981 | ||||||
Tenant deposits | 15,474 | 16,102 | ||||||
Total current liabilities | 357,627 | 1,048,329 | ||||||
Non-current liabilities | ||||||||
Tenant deposits | 251,025 | 231,782 | ||||||
Interest-bearing liabilities | 14,091,738 | 12,336,803 | ||||||
Total non-current liabilities | 14,342,763 | 12,568,585 | ||||||
Total liabilities | 14,700,390 | 13,616,914 | ||||||
Net assets | 20,852,922 | 14,016,044 | ||||||
Equity | ||||||||
Contributed equity | 19,210,214 | 14,507,535 | ||||||
Retained earnings/(accumulated losses) | 1,642,708 | (491,491 | ) | |||||
Total equity | 20,852,922 | 14,016,044 |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 2014 AND 2013 (UNAUDITED) | |||||||||||||||
CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED) | |||||||||||||||
3 months ended | Year ended | ||||||||||||||
Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2014 | Dec 31, 2013 | ||||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||||
Property related income | 597,293 | 477,604 | 2,205,946 | 1,712,195 | |||||||||||
Property related expenses | (99,159 | ) | (57,535 | ) | (332,432 | ) | (194,042 | ) | |||||||
Net property income | 498,134 | 420,069 | 1,873,514 | 1,518,153 | |||||||||||
Management fees | (52,894 | ) | (35,400 | ) | (160,003 | ) | (150,860 | ) | |||||||
Transaction related expenses | 2,162 | (185,941 | ) | (29,732 | ) | (258,870 | ) | ||||||||
Professional, legal and other fees and expenses | (6,800 | ) | (24,456 | ) | (44,968 | ) | (59,260 | ) | |||||||
Total expenses | (57,532 | ) | (245,797 | ) | (234,703 | ) | (468,990 | ) | |||||||
Finance costs | (169,255 | ) | (156,792 | ) | (678,740 | ) | (554,782 | ) | |||||||
Financial income | 38,967 | 17,019 | 79,981 | 101,453 | |||||||||||
Other income | 51,960 | 286 | 105,940 | 110,597 | |||||||||||
Share of profits from equity accounted investees | 213,139 | - | 237,860 | - | |||||||||||
Foreign exchange (loss)/gain | (1,106,194 | ) | 38,908 | (1,432,735 | ) | (17,581 | ) | ||||||||
Net unrealized foreign exchange gain/(loss) on foreign currency denominated investment property measured at fair value | 1,819,091 | (89,783 | ) | 2,389,699 | 458,905 | ||||||||||
Unrealized revaluation gain/(loss) on investment property measured at fair value | 530,800 | 31,675 | 939,386 | (80,413 | ) | ||||||||||
Profit for the period/year | 1,819,110 | 15,585 | 3,280,202 | 1,067,342 | |||||||||||
Other comprehensive income | |||||||||||||||
Other comprehensive income for the period/year | - | - | - | - | |||||||||||
Total comprehensive income for the period/year | 1,819,110 | 15,585 | 3,280,202 | 1,067,342 | |||||||||||
Earnings per CBFI* | |||||||||||||||
Basic earnings per CBFI (pesos) | 2.24 | 0.03 | 4.94 | 1.87 | |||||||||||
Diluted earnings per CBFI (pesos) | 2.24 | 0.03 | 4.94 | 1.86 | |||||||||||
*Real Estate Trust Certificates (Certificados Bursátiles Fiduciarios Inmobiliarios) |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31, 2014 AND 2013 (UNAUDITED) | |||||||||||||
CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED) | |||||||||||||
Contributed Equity | Retained earnings/ (accumulated losses) | Total | |||||||||||
$’000 | $’000 | $’000 | |||||||||||
Total equity at January 1, 2013 | 12,121,923 | (725,099 | ) | 11,396,824 | |||||||||
Total comprehensive income for the year | - | 1,067,342 | 1,067,342 | ||||||||||
Total comprehensive income for the year | - | 1,067,342 | 1,067,342 | ||||||||||
Transactions with equity holders in their capacity as equity holders: | |||||||||||||
Issued CBFIs | 2,418,955 | - | 2,418,955 | ||||||||||
Costs directly attributable to equity placement | (33,343 | ) | - | (33,343 | ) | ||||||||
Distributions to CBFI holders | - | (833,734 | ) | (833,734 | ) | ||||||||
Total transactions with equity holders in their capacity as equity holders | 2,385,612 | (833,734 | ) | 1,551,878 | |||||||||
Total equity at December 31, 2013 | 14,507,535 | (491,491 | ) | 14,016,044 | |||||||||
Total equity at January 1, 2014 | 14,507,535 | (491,491 | ) | 14,016,044 | |||||||||
Total comprehensive income for the year | - | 3,280,202 | 3,280,202 | ||||||||||
Total comprehensive income for the year | - | 3,280,202 | 3,280,202 | ||||||||||
Transactions with equity holders in their capacity as equity holders: | |||||||||||||
Issued CBFIs | 4,855,396 | - | 4,855,396 | ||||||||||
Costs directly attributable to equity placement | (152,717 | ) | - | (152,717 | ) | ||||||||
Distributions to CBFI holders | - | (1,146,003 | ) | (1,146,003 | ) | ||||||||
Total transactions with equity holders in their capacity as equity holders | 4,702,679 | (1,146,003 | ) | 3,556,676 | |||||||||
Total equity at December 31, 2014 | 19,210,214 | 1,642,708 | 20,852,922 |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2014 AND 2013 (UNAUDITED) | |||||||||
CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED) | |||||||||
Year ended | |||||||||
Dec 31, 2014 | Dec 31, 2013 | ||||||||
$’000 | $’000 | ||||||||
Inflows / (Outflows) | Inflows / (Outflows) | ||||||||
Operating activities: | |||||||||
Profit for the year | 3,280,202 | 1,067,342 | |||||||
Adjustments for: | |||||||||
Net unrealized foreign exchange gain on foreign currency denominated investment property measured at fair value | (2,389,699 | ) | (458,905 | ) | |||||
Unrealized revaluation (gain)/loss on investment property measured at fair value | (939,386 | ) | 80,413 | ||||||
Straight line rental income adjustment | (41,445 | ) | (11,191 | ) | |||||
Leasing commissions amortization | 19,123 | 7,114 | |||||||
Net foreign exchange loss | 1,432,735 | 17,581 | |||||||
Finance costs recognized in profit for the year | 678,740 | 554,782 | |||||||
Other income | (105,940 | ) | (110,597 | ) | |||||
Share of profits from equity accounted investees | (237,860 | ) | - | ||||||
Movements in working capital: | |||||||||
Decrease in receivables | 364,022 | 1,725,503 | |||||||
Increase in payables | 86,879 | 176,769 | |||||||
Net cash flows from operating activities | 2,147,371 | 3,048,811 | |||||||
Investing activities: | |||||||||
Investment property and capital expenditure | (734,870 | ) | (5,587,251 | ) | |||||
Investment in equity accounted investees | (707,420 | ) | - | ||||||
Distributions received from equity accounted investees | 14,864 | - | |||||||
Net cash flows used in investing activities | (1,427,426 | ) | (5,587,251 | ) | |||||
Financing activities: | |||||||||
Proceeds from interest-bearing liabilities, net of facility fees | 255,851 | 3,248,575 | |||||||
Payment of interest-bearing liabilities | (663,443 | ) | (893,942 | ) | |||||
Interest paid | (627,044 | ) | (440,775 | ) | |||||
Proceeds from issue of CBFIs, net of capital raising costs | 4,730,072 | 2,385,612 | |||||||
Distributions to CBFI holders | (1,146,003 | ) | (833,734 | ) | |||||
Net cash flows from financing activities | 2,549,433 | 3,465,736 | |||||||
Net increase in cash and cash equivalents | 3,269,378 | 927,296 | |||||||
Cash, cash equivalents at the beginning of the year | 2,347,932 | 1,400,762 | |||||||
Effect of exchange rate changes on cash and cash equivalents | (13,476 | ) | 19,874 | ||||||
Cash, cash equivalents at the end of the year* | 5,603,834 | 2,347,932 | |||||||
*Included in the cash and cash equivalent balance at the end of the
year is restricted cash of $178.8 million
(2013: $229.6 million). | |||||||||
Contacts:
Investor Relations, Macquarie
Mexican REIT
Email: investors@mmreit.mx
or
For
press queries outside of Mexico, please contact:
Macquarie Group
Paula
Chirhart, +1 212-231-1239
Corporate Communications
paula.chirhart@macquarie.com
or
For
press queries in Mexico, please contact:
CarralSierra PR &
Strategic Communications
Jose Manuel Sierra
Cel: +52 1 (55)
5105 5907
Tel: +52 (55) 5286 0793
jmsierra@carralsierra.com.mx
or
Diego
Arrazola
Cel: +52 1 (55) 3977 2778
Tel: +52 (55) 5286 0793
darrazola@carralsierra.com.mx