Gicsa Announces Consolidated Results for Second Quarter 2022

By: GRUPO GICSA, S.A.B. DE C.V. via AccessWire

July 22, 2022 at 17:00 PM EDT

MEXICO CITY, MEXICO / ACCESSWIRE / July 22, 2022 / GRUPO GICSA, S.A.B. de C.V. ("GICSA" or "the Company") (BMV:GICSA), a leading Mexican company specializing in the development, investment, commercialization and operation of shopping malls, corporate offices and mixed-use properties, announced today its results for the second quarter ("2Q22") and for the sixth months ("6M22") period ended June 30, 2022.

All figures have been prepared in accordance with International Financial Reporting Standards ("IFRS") and are stated in millions of Mexican pesos (Ps.).

GICSA's financial results presented in this report are unaudited and therefore may be subject to adjustments in the future.

Main Highlights

Corporate

We continue implementing strategies to reposition the Company for long-term success. During the second quarter we undertook the following:
- As communicated in the 1Q22 earnings report, GICSA completed the sale of Lomas Altas Parque Corporativo. The proceeds were used to prepay bank loans contracted with Fondo H, Sofoplus, Ficein and Exitus, as well as the loan related to the Lomas Altas property, totaling approximately Ps. 742 million. The remaining proceeds are being evaluated and it will be used to improve the Company's debt profile.
- On July 7, 2022, the Company announced the signing of a transaction for the sale of Explanada Aguascalientes, for approximately Ps. 400 million. The amount of this transaction will be payable in four equal installments and the proceeds used to partially prepay local bonds issued under the trading symbols GICSA 15, GICSA 17 and GICSA 19.
Half of the proceeds received will be allocated to the partial prepayment of these bonds and the remaining balance will be held in reserve until the release date (when the transaction is completed in accordance with the agreed terms). Upon completion, the reserve amount will be used as partial prepayment of the bonds.

Operational

At the close of 2Q22, GICSA reported a total of 951,405 square meters of Gross Leasable Area (GLA) comprised of 17 properties in operation. Proportional GLA was 85%, equivalent to 811,769 square meters. This represented a decrease of 1% in total GLA and 2% in proportional GLA, compared to 2Q21. This was due to the sale of the Lomas Altas property.
During 2Q22, 59 new leases were opened, representing 12,151 square meters in relation to the portfolio in operation, an increase of 1% compared to 2Q21.
During 2Q22, 79 new leases were signed, representing 28,588 square meters of the total portfolio, an increase of 107% compared to 2Q21.
At the close of 2Q22, the occupancy rate in the total portfolio was 85% and the adjusted occupancy rate was 82%.
At the close of 2Q22, the average rent per square meter in the portfolio was Ps. 380, an increase of 1%, compared to 2Q21.
During the 2Q22, the number of visitors to the shopping malls within the portfolio in operation reached 18 million, an increase of 33% compared to 2Q21. The number of visitors was 97% of the level in during 2Q19 (pre-pandemic).

Financial

Total revenue after the proportional recognition of the tenant Covid-19 support program was Ps. 974 million in 2Q22, an increase of 7% compared to 2Q21.
Consolidated and proportional NOI in 2Q22, were Ps. 800 million and Ps. 665 million, respectively, increases of 8% and 7%, respectively, compared to 2Q21.
Consolidated and proportional EBITDA in 2Q22, were Ps. 762 million and Ps. 627 million, respectively, increases of 12% and 13%, respectively, compared to 2Q21.
Total consolidated and proportional debt at the close of 2Q22 were Ps. 28,294 million and Ps. 25,796 million, respectively, increases of 2% and 3%, compared to 2Q21 and a decrease of 1% compared to 1Q22. Consolidated LTV was 38%.

Pipeline

At the close of 2Q22, the commercialization of properties under development and in stabilization (Explanada Culiacán, Masaryk 169 and Grand Outlet Riviera Maya) totaled 66,176 square meters, which represented 57% of the GLA.
To date, 61 units of the Cero5Cien residential project have been sold, corresponding to 58% of the Gross Saleable Area (GSA), of which 18 units have been delivered to buyers to initiate the finishing work.

For a full version of GICSA's Second Quarter 2022 Earnings Release, please visit:

http://www.gicsa.com.mx/en/investors-relationship/financial-information

Conference Call

GICSA cordially invites you to its Second Quarter 2022 Conference call

Monday, July 25, 2022
12:00 PM Eastern time
11:00 AM Mexico City Time

Presenting for GICSA:
Diódoro Batalla - Chief Financial Officer

To access the call, please dial:
1 (800) 895 3367 U.S. participants
1 (785) 424 1063 International participants
Passcode: 44272

About the Company
GICSA is a leading company in the development, investment, commercialization and operation of shopping malls, corporate offices and mixed used well known for their high-quality standards, which transform and create new development spaces, lifestyles and employment in Mexico, in accordance to its history and executed projects. As of June 30, 2022, the Company owned 17 income-generating properties, consisting of eleven shopping malls, five mixed use projects (which include five shopping malls, five corporate offices and one hotel), and one corporate office building, representing a total Gross Leasable Area (GLA) 951,405 square meters, and a Proportional GLA of 811,769 square meters. Since June 2015, GICSA is listed on the Mexican Stock Exchange under the ticker (BMV:GICSA B).

Investor Relations Contact:

Claudia Chávez
Tel: +52 (55) 5148 0400 Ext. 4609
Email: cchavez@gicsa.com.mx

Yinneth Lugo, IR
Tel: +52 (55) 5148 0402
Email: ylugo@gicsa.com.mx

SOURCE: GRUPO GICSA, S.A.B. DE C.V.

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