Fibra Inn Announces Consolidated Results for the First Quarter 2015

Deutsche Bank Mexico, S.A., Institución de Banca Múltiple, Trust Division F/1616 or Fibra Inn (BMV:FINN13) (“Fibra Inn” or “the Company”), a Mexican real estate investment trust specializing in the hotel industry serving the business traveler, today announced its non-audited first quarter 2015 results for the period ended March 31, 2015 (“1Q15”). These results were prepared in accordance with International Financial Reporting Standards (“IFRS”) and are stated in nominal Mexican pesos (Ps.).

First Quarter 2015 Financial Highlights

• Fibra Inn concluded 1Q15 with 31 hotels under operation, and 2 developments, representing 5,538 rooms, of which 465 are under construction.
• Operating indicators, in terms of Same-Store Sales for the 30 comparable hotels in the portfolio with the same number of available rooms are the following:
  • Room revenues: Ps. 266.6 million; an increase of 12.5% compared to Ps. 236.9 million in 1Q14.
  • Occupancy: 61.5%; an increase of 0.6 percentage points (“pp”). Considering the 8.7% increase in the number of available rooms due to the expansions, occupancy would have been 56.6%.
  • Average Daily Rate (“ADR”): Ps. 1,067.8; an increase of 11.5%.
  • Revenue per Available Room (“RevPAR”): Ps. 656.8; an increase of 12.5% compared to Ps. 583.6 million. Including the effect of the 8.7% increase in the number of available rooms following the expansion of the comparable hotel portfolio, RevPAR would be equal to Ps. 604.2.
• Total Revenue: reached Ps. 294.3 million, broken down as follows:
  • Room Revenue: Ps. 276.0 million (93.8% of total Fibra revenues).
  • Rental Revenue: Ps. 18.3 million (6.2% of total Fibra revenues).
• Net Operating Income (“NOI”): Ps. 110.3 million, an increase of 51.2% compared to the Ps. 72.9 million reported in 1Q14 and a 16.2% increase compared with Ps. 94.9 million in 4Q14. This represented a margin of 37.5% over Fibra revenues, representing an increase of 90 basis points versus 1Q14.
• Adjusted EBITDA: Ps. 91.1 million, a 46.0% increase compared to the Ps. 62.4 million in 1Q14. The Adjusted EBITDA Margin was 31.0%, which is 30 pp lower than the margin in 1Q14.
• Net Income: Ps. 38.9 million, excluding acquisition and corporate-related expenses, net income would have been Ps. 50.8 million, a 46.4% increase compared to 1Q14.
• FFO: Ps. 91.2 million, a 42.5% increase compared to Ps. 64.0 million during 1Q14.
• Distributions to Holders: Ps. 78.5 million, a 33.2% increase compared to Ps. 59.0 million in 1Q14. Distribution was equivalent to Ps. 0.1797 per CBFI using a larger base of CBFIs, equal to 437.0 million after the follow-on that took place in November 2014. This represented a dividend yield of 4.6%.
• Relevant Events:
  • New Directors: The reorganization of Fibra Inn’s Executive Management was completed: Victor Zorrilla remained as Chairman of the Technical Committee, Oscar Calvillo was appointed as Chief Executive Officer and Joel Zorrilla as Vice-President of Corporate Strategy. In addition, Fibra Inn hired the following executives: Fernando Rocha as the Chief Acquisitions and Development Officer, Rafael de la Mora as Chief Hotel Operations Officer and Miguel Aliaga as Chief Financial Officer.
• As of March 31, 2015:
  • Cash: Ps. 790.6 million.
  • Bank Debt is Ps. 100.0 million, which represents a loan-to-value equal to 1.4% as well as a coverage ratio for the debt service of 13.6 times.
  • Equity: Ps. 7,149.3 million.
• CAPEX during the quarter was equal to Ps. 0.8 million.

Statement from the Chief Executive Officer

“Fibra Inn has laid down the foundation for future growth, both at a strategic and at operational level. On a strategic level, during this quarter we concluded the hiring of key executives; while operationally, we have prepared since June 2014 in the re-engineering of processes, which is currently being replicated throughout all of the hotels of the portfolio. With these activities we are prepared to continue the deployment of capital and the addition of shareholder value,” stated Oscar Calvillo, Fibra Inn’s Chief Executive Officer.

For the full version of this report, please visit http://www.fibrainn.mx/en/financial-information.php