FIBRA Macquarie México (FIBRAMQ 12) Q2 2024 earnings summary

Executive summary

• Achieved record consolidated revenue for Q2 2024, up 7.1% YoY in USD, with record NOI and NAV per certificate of Ps. 47.8, driven by strong industrial and retail portfolio performance and favorable supply-demand dynamics.

• Portfolio occupancy remained high at 96.9%, with industrial at 97.6% and retail at 92.1%, the highest since early 2020.

• Advanced industrial development program, delivering new buildings, progressing on major projects, and maintaining a land bank for future expansion.

• Received investor approval for the acquisition of Terrafina, increasing the exchange ratio and reducing management fees, positioning for long-term value creation.

• Focuses on acquisition, development, ownership, and management of industrial and retail real estate in Mexico, with 85% of NOI from industrial and 15% from retail properties.

Financial highlights

• 2Q24 NOI was US$48.2m, up 5.9% YoY; consolidated NOI increased 6.0% YoY in USD terms; AFFO per certificate reached Ps. 0.6028, down 7.5% YoY.

• 2Q24 total revenues (excl. SLR) increased 4.0% YoY to Ps. 1,135.7m; EBITDA was Ps. 885.6m (US$51.5m), up 3.0% YoY in pesos.

• NOI margin (inc. SLR) was 85.6%, down 85 bps YoY; AFFO margin was 42.2%, down 356 bps YoY.

• Market capitalization at US$1.3bn; total assets at US$3.3bn.

• Basic and diluted profit per CBFI for 2Q24 was Ps. 6.01, up from Ps. 1.85 in 2Q23.

Outlook and guidance

• FY24 AFFO per certificate guidance reaffirmed at Ps. 2.55–2.60, with distributions of Ps. 2.10 per certificate, paid quarterly.

• Targeting stabilized NOI yields of 9–11% on new developments and expects continued benefit from nearshoring trends.

• Positive operational outlook for 2024, with growth capex expected to incrementally boost revenue and AFFO upon project stabilization.