FIBRA Macquarie México Reports Fourth Quarter and Full Year 2021 Results

– Industrial portfolio year-end occupancy of 96.0%, up 169bps YoY –

– Increase in independent asset valuations of 12.1%, NAV/CBFI at record Ps. 41.0 –

– FY21 AFFO per certificate of Ps. 2.38, above guidance –

– Initiates FY22 per cert. distribution guidance of Ps. 2.00, up 5.3% –

– Awarded EDGE Champion status by the IFC for green building performance –

MEXICO CITY–(BUSINESS WIRE)–FIBRA Macquarie México (FIBRAMQ) (BMV: FIBRAMQ) announced its financial and operating results for the fourth quarter ended December 31, 2021.

FOURTH QUARTER 2021 HIGHLIGHTS

• Records 4Q21 AFFO per certificate of Ps. 0.6189
• Authorizes 4Q21 cash distribution of Ps. 0.4750 per certificate, in line with guidance
• Achieves consolidated occupancy of 95.2%, up 129 bps YoY and up 44 bps sequentially
• Receives independent valuation uplift of 12.1% YoY, NAV/CBFI at record Ps. 41.0, Real Estate Net LTV lower at 35.0%
• Initiates FY22 per certificate guidance: Distribution of Ps. 2.00, a 5.3% annual increase; AFFO of Ps. 2.50 to Ps. 2.55

“FIBRA Macquarie delivered another quarter of strong performance to finish the year, as positive operating fundamentals were further enhanced by an advantageous FX impact,” said Juan Monroy, FIBRA Macquarie’s chief executive officer. “In our industrial portfolio, we maintained high levels of occupancy ending the year at 96%, driven by our busiest quarter of leasing since 2018 including 2.8 million square feet of new and renewal leasing activity. With approximately 80% of our industrial footprint in the northern markets, we are ideally positioned to continue to capture the expanding demand for manufacturing and logistics, supported by underlying trends of nearshoring and e-commerce growth. Additionally, our grocery-anchored retail portfolio experienced a robust quarter with continuing trends of lower rent discounts and higher cash collections. In addition, we continue to pursue a disciplined industrial development growth strategy with three buildings in process and an active pipeline of opportunities. We remain encouraged by a favorable backdrop and are pleased to report a meaningful increase in underlying independent property valuations. Looking to 2022, we project record annual distributions, as we remain focused on maximizing total per certificate returns for our investors. Furthermore, our prudent AFFO payout and leverage ratios ensure that our business model remains resilient and capable of supporting attractive growth opportunities in the industrial sector.”

FINANCIAL AND OPERATING RESULTS

Consolidated Portfolio

FIBRAMQ’s total results were as follows:

FIBRAMQ’s same store portfolio results were as follows:

COVID-19 Reporting Disclosures

FIBRAMQ continues to provide enhanced COVID-19 related disclosures for its rent collections, retail center store openings, rent relief and trade receivables as part of its Fourth Quarter 2021 Supplementary Information materials, located at www.fibramacquarie.com/investors/.

Industrial Portfolio

The following table summarizes the results for FIBRAMQ’s industrial portfolio:

FIBRAMQ’s industrial portfolio maintained its positive momentum to complete the year with robust operational and financial performance. For the quarter ended December 31, 2021, FIBRAMQ’s industrial portfolio delivered NOI of Ps. 808.0 million, an increase of 3.6% over the prior corresponding period.

At quarter-end, industrial occupancy stood at 96.0%, up 169 basis points from the prior year period and up 50 basis points sequentially. The fourth quarter was the most active of the year with 518.5 thousand sqft of industrial space leased to seven diverse customers across four markets. Renewals comprised 29 leases covering 2.3 million sqft of GLA, driving a healthy retention rate of 82.8% over the last 12 months.

Cash collections continue to be strong. As of December 31, 2021, trade receivables net of provisions were Ps. 8.2 million (excl. VAT), lower by 42.5% sequentially and 73.4% over the prior corresponding period.

An independent appraisal of FIBRA Macquarie’s industrial portfolio conducted in the fourth quarter resulted in an annual same store and total revaluation gain of 12.4%, and a closing property-by-property book value of US$1,976 million. Supporting the valuation uplift, the independent appraiser updated certain key inputs including certain forecast rental rates and cap rates reflecting solid sector tailwinds and comparable market transactions.

Retail Portfolio

The following table summarizes the proportionally combined results for FIBRAMQ’s retail portfolio:

FIBRAMQ’s retail portfolio benefited from improving trading conditions during the fourth quarter. For the quarter ended December 31, 2021, FIBRAMQ’s retail portfolio delivered NOI of Ps. 109.9 million, up 21.2% from the prior comparable period, reflecting declining rent discounts and collection of aged receivables that allowed for a meaningful release of doubtful debt provisions provided for in prior periods.

• Retail portfolio cash collections during the quarter totaled Ps. 163.7 million making it the strongest quarter of collections since the onset of the pandemic. Collections increased 17.0% sequentially and increased 19.1% versus the prior corresponding period.
• Quarterly rent discounts totaled Ps. 9.6 million, the lowest since the onset of the pandemic. Rent discounts were down sequentially by 25.5%, and down 17.8% versus the prior corresponding period.
• During the fourth quarter, monitored foot traffic at FIBRAMQ’s shopping centers was approximately 35% above the prior comparable period, although approximately 25% below pre-pandemic levels.

FIBRAMQ signed 63 leases encompassing 11.9 thousand sqm of retail space during the fourth quarter of 2021. Leasing highlights included renewals for Cinemex at City Shops Valle Dorado (3.2 thousand sqm, MCMA) and Smart Fit gym at Multiplaza Lindavista (1.3 thousand sqm, Monterrey). Quarterly move outs declined to 1.9 thousand sqm, their lowest level since the onset of the COVID-19 pandemic, contributing to a small increase in occupancy on a sequential basis.

As of December 31, 2021, trade receivables net of provisions were Ps. 7.7 million (excl. VAT), lower 23.3% sequentially and 50.4% over the prior corresponding period.

An independent appraisal for FIBRA Macquarie’s retail portfolio at year-end resulted in a same store and total revaluation gain of 10.6% versus 2020, and a closing property-by-property book value of Ps. 6,799 million. Supporting the valuation uplift, the independent appraiser updated certain key inputs including improved credit loss and healthier lease up assumptions reflecting a gradually improving retail environment that is expected to have better operating conditions compared to more recent years.

Same Store Portfolio Results

For detail on FIBRAMQ’s industrial and retail same store portfolio results, please refer to Fourth Quarter 2021 Supplementary Information materials located at BMV Filings (fibramacquarie.com).

PORTFOLIO ACTIVITY

Industrial Development

FIBRAMQ is pursuing a strategy to complement and grow its industrial portfolio by investing and developing class “A” assets in core markets that demonstrate strong performance and a positive economic outlook. Work continued at FIBRAMQ’s active development projects during the quarter.

• FIBRAMQ began construction on a 186 thousand sqft industrial property development in Apodaca, Nuevo Leon, as part of an approximately 800 thousand sqft development project. FIBRAMQ currently anticipates completion of the first phase of the project in the first half of 2022.
• FIBRAMQ also continued its industrial development project in the Mexico City Metropolitan Area. FIBRAMQ expects to deliver the first building comprising 509 thousand sqft of industrial GLA on the site in the second half of 2022. In addition, and given the robust market fundamentals, FIBRAMQ commenced the construction of a 225 thousand sqft industrial building during the quarter. This is the second of two industrial buildings to be built on the site, which is also due for completion in the second half of 2022.

BALANCE SHEET

As of December 31, 2021, FIBRAMQ had approximately Ps. 16.4 billion of debt outstanding, Ps. 4.8 billion available on its undrawn committed revolving credit facility and Ps. 0.7 billion of unrestricted cash on hand.

FIBRAMQ’s indebtedness was 98.8% fixed rate and had a weighted-average debt tenor remaining of 4.1 years.

FIBRAMQ’s CNBV regulatory debt to total asset ratio was 32.3% and the debt service coverage ratio was 5.3x.

On a consolidated basis, NAV per certificate increased over the year by 25%, to Ps. 41.0.

ESG

FIBRAMQ has been recognized for its ongoing focus on, among other things, green building and green leasing, stakeholder engagement and transparency, as well as its commitment to continuous improvement.

• As previously disclosed, in October 2021, GRESB, a leading global ESG benchmark for real estate investments, reaffirmed its GRESB 3 Star rating of FIBRAMQ for 2021. The rating is in respect of both the GRESB Standing Investments Benchmark and the GRESB Development Benchmark.
• In February 2022, FIBRA Macquarie was recognized as being an “EDGE Champion.” EDGE Champions are organizations that collaborate with the International Finance Corporation (IFC) to accelerate the adoption of green building options. As an EDGE Champion, FIBRA Macquarie is committed to these practices through the promotion of voluntary green building certification programs based on the EDGE (“Excellence in Design for Greater Efficiencies”) software, standard, and certification system.

For additional details on FIBRAMQ’s strategy and progress with regards to its ESG strategy can be found in its annual ESG report at https://www.fibramacquarie.com/en/corporate-responsibility.html.

DISTRIBUTION

On February 3, 2022, FIBRAMQ declared a cash distribution for the quarter ended December 31, 2021, of Ps. 0.4750 per certificate. The distribution is expected to be paid on March 11, 2022, to holders of record on March 10, 2022. FIBRAMQ’s certificates will commence trading ex-distribution on March 9, 2022.

FY22 GUIDANCE

AFFO per certificate

FIBRA Macquarie is initiating FY22 AFFO guidance in a range of between Ps. 2.50 and Ps. 2.55 per certificate representing an increase of between 4.9% and 7.0% over FY21. The guidance assumes:

• an average exchange rate of Ps. 20.50 per US dollar for the remainder of FY22;
• no further deterioration in broader economic and market conditions, and no additional government restrictions regarding retail trading activities;
• no new acquisitions or divestments of stabilized properties; and
• no issuances or repurchases of certificates.

Distribution per certificate

FIBRAMQ is initiating guidance for cash distributions in FY22 of Ps. 2.00 per certificate paid in equal quarterly instalments of Ps. 0.50 per certificate. The guidance reflects an increase of 5.3% over distributions for FY21 and a record level of payout. The guidance is supported by an expected FY22 AFFO payout ratio of approximately 79%, based on FIBRAMQ’s projections.

The payment of cash distributions is subject to the approval of FIBRAMQ’s Manager, stable market conditions and prudent management of FIBRAMQ’s capital requirements.

WEBCAST AND CONFERENCE CALL

FIBRAMQ will host an earnings conference call and webcast presentation on Friday, February 4, 2022 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.fibramacquarie.com or by dialing toll free +1-877-407-2988. Callers from Mexico may dial 01-800- 522-0034 and other callers from outside the United States may dial +1-201-389-0923. Please ask for the FIBRA Macquarie Fourth Quarter 2021 Earnings Call. An audio replay will be available by dialing +1-877-660-6853 or +1-201-612-7415 for callers from outside the United States. A webcast archive of the conference call and a copy of FIBRA Macquarie’s financial information for the fourth quarter 2021 will also be available on FIBRA Macquarie’s website, www.fibramacquarie.com.

About FIBRA Macquarie

FIBRA Macquarie México (FIBRA Macquarie) (BMV:FIBRAMQ) is a real estate investment trust (fideicomiso de inversión en bienes raíces), 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. FIBRA Macquarie’s portfolio consists of 236 industrial properties and 17 retail properties, located in 20 cities across 16 Mexican states as of December 31, 2021. Nine of the retail properties are held through a 50/50 joint venture. For additional information about FIBRA Macquarie, please visit www.fibramacquarie.com.

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 and we undertake no obligation to update any forward-looking statements.

Other than Macquarie Bank Limited ABN 46 008 583 542 (“Macquarie Bank”), any Macquarie Group entity noted in this document is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities. In addition, if this document relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.

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.

Contacts

Investor relations contact:
Tel: +52 (55) 9178 7751

Email: fibramq@macquarie.com
Nikki Sacks

Tel: +1 203 682 8263

Email: nikki.sacks@icrinc.com

For press queries, please contact:
FleishmanHillard México

Contact: Arturo García Arellano

Tel: +52 55 8664 0910

Email: arturo.garcia@fleishman.com