MEXICO CITY, MEXICO / ACCESSWIRE / February 25, 2020 / GRUPO GICSA, S.A.B. de C.V. ("GICSA" or "the Company") (BMV:GICSA), a Mexican leading company specialized in the development, investment, commercialization and operation of shopping malls, corporate offices, industrial buildings and mixed-use properties, announced today its results for the fourth quarter ("4Q19") and full-year ("2019") periods ended December 31, 2019.
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; therefore, figures mentioned throughout this report may present adjustments in the future.
Main Highlights
Corporative
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Reaffirming the confidence of the international markets, in December the Company carried out the placement of debt securities of approximately Ps. 11,950 million via a trust comprised of 9 properties of our stabilized portfolio and in stabilization[1], including our properties of the Malltertainment model. This is an independent vehicle non-recourse of GICSA and bankruptcy remote. In addition, we placed preferred capital instruments for Ps. 2,310 million.
In this first stage, the Company utilized approximately Ps. 9,700 million of the main instruments and Ps. 2,310 million of the other instrument, which were used to pay off the previously existing debt amounting to approximately Ps. 8,430 million. The remaining Ps. 2,250 million will be released in the subsequent nine months upon reaching certain financial metrics of the portfolio properties.
This financing offers higher liquidity and flexibility to the Company to conclude its pipeline, for the surplus amount of cash of approximately Ps. 3,500 million, and improves our debt profile since the maturity extends to 15 years, improves the schedule of capital repayments that gradually begins in the third year, and gives us certainty in our weighted fixed interest rate of 10%.
Operational
- GICSA reported a total of 910,707 square meters (m²) of Gross Leasable Area (GLA) comprised of 16 properties in operation at the close of 4Q19. GICSA´s proportional GLA was 84.7% equivalent to 771,624 square meters. This represented an increase of 8.4% of total GLA and 10.1% of proportional GLA, compared to 4Q18.
- During 4Q19, the portfolio in operation opened 87 stores and 345 stores in 2019.
- As of 4Q19, the occupancy rate of the stabilized properties was 92.2% and 90.2%, including the properties in the stabilization process.
- Average leasing rate per square meter of the stabilized portfolio at the close of 4Q19 was Ps. 360, and Ps. 355 in the total portfolio.
- GICSA registered an occupancy cost of 9.7% at the close of 2019, an increase of 158 basis points compared to 2018.
- At the close of 4Q19, GICSA had a total of 21 million of visitors in the shopping malls portfolio, and 74 million of visitors in 2019, an increase of 15.2% and 23.3%, respectively.
Financial
- Fixed rental revenues were Ps. 788 million in 4Q19 and Ps. 2,986 million in 2019, an increase of 21.2% and 26.8%, respectively.
- Net operating income (NOI) reached Ps. 810 million in 4Q19, and Ps. 3,302 million in 2019, an increase of 17.3% and 23.6%, respectively. GICSA's proportional NOI was Ps. 655 million in 4Q19 and Ps. 2,653 million in 2019, an increase of 21.2% and 40.1%, respectively.
- Consolidated EBITDA reached Ps. 744 million in 4Q19, an increase of 28.4% compared to 4Q18; while GICSA's proportional EBITDA was Ps. 590 million, an increase of 37.2% compared to 4Q18. Excluding the effect of the extraordinary revenue in 2018, consolidated EBITDA and GICSA's proportional EBITDA in 2019 increased by 16.6% and 36.7%, respectively.
- At the close of 4Q19, net income before valuation effects was Ps. 640 million, an increase of 10.5% compared to 4Q18. Excluding the effect of the extraordinary revenue in 2018, net income before valuation effects was Ps. 2,368 million, an increase of 29.6% in 2019.
- Consolidated debt at the close of 4Q19 was Ps. 27,875million; while GICSA's proportional debt was Ps. 25,384 million. Consolidated LTV was 38.4%.
Pipeline
- During 4Q19, the commercialization of properties under development and in stabilization reached progress of 45 signed contracts, representing 12,805 square meters of GLA, while for the portfolio under operation and development 424 contracts were signed as 2019.
- Explanada Culiacán, Cero5Cien and Gran Outlet Riviera Maya reported work progress rates of 82%, 31% and 24%, respectively.
- Regarding work progress rates, during the quarter the Company invested Ps. 524 million in projects under development and Ps. 3,176 million in 2019.
- With regards to the Galerias Metepec development, in previous months redesign works, administrative procedures, and negotiations were completed, which joined the properties of Paseo Metepec (GICSA) with Galerías Metepec (Liverpool). Therefore, beginning in this quarter the Company resumed on-site works and the estimated delivery date for the project was modified to the first half of 2021.
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For a full version of GICSA's Fourth Quarter 2019 Earnings Release, please visit:
http://www.gicsa.com.mx/en/investors-relationship/financial-information
Conference Call
GICSA cordially invites you to its Fourth Quarter 2019 Conference Call
Wednesday, February 26, 2020
12:00 PM Eastern time
11:00 AM Mexico City Time
Presenting for GICSA:
Diódoro Batalla, Chief Financial Officer
Avril Carenzzo - Treasury and Investor Relation Officer
To access the call, please dial:
1 (877) 830 2576 U.S. participants
1 (785) 424 1726 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 December 31, 2019, the Company owned 16 income-generating properties, consisting of ten shopping malls, five mixed-use projects (which include four shopping malls, four corporate offices and one hotel), and one corporate office building, representing a total Gross Leasable Area (GLA) 910,707 square meters, and a Proportional GLA of 771,624 square meters. Since June 2015, GICSA is listed on the Mexican Stock Exchange under the ticker (BMV: GICSA B).
Investor Relations Contact:
Avril Carenzzo
Tel: +52 (55) 5148 0400 Ext. 4609
Email: [email protected]
Yinneth Lugo
Tel: +52 (55) 5148 0402
Email: [email protected]
SOURCE: GRUPO GICSA, S.A.B. DE C.V.