MEXICO CITY / ACCESSWIRE / February 27, 2023 / 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 fourth quarter ("4Q22") and for the twelve months ("2022") period ended December 31, 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
- Under the strategies being implemented to reposition GICSA for long-term success and to improve its financial position, the Company implemented the following measures during the quarter:
- As previously announced, in July 2022, the Company carried out a transaction for the sale of the Explanada Aguascalientes property for approximately Ps. 400 million. To date, the Company has received two payments of four installments, and used these proceeds to prepay Ps. 197.7 million of local bonds issued under the trading symbols GICSA 15, GICSA 17 and GICSA 19.
- In December 2022, the Company signed an investment agreement with Liverpool to complete the construction of the Paseo Metepec shopping mall, as well as to carry out the commercialization and operations of the property. The stakes of both parties will be 50% each.
- As part of this agreement, Liverpool will invest approximately Ps. 1,367.5 million, of which Ps. 980 million will be allocated to complete de construction of the shopping center and Ps. 387.5 million to complete its 50% ownership stake in the property. In December, GICSA received Ps. 687.5 million, of which Ps. 387.5 million was allocated to the prepayment of local bonds GICSA 15, GICSA 17 and GICSA 19, while Ps. 300 million will be allocated to resume the construction of the property. The remaining amount will be received as the construction progresses.
- Once construction is completed and the shopping mall begins operations, GICSA will continue with its efforts to sell its stake in this property, with the objective of using the proceeds to prepay the local bonds GICSA 15, GICSA 17 and GICSA 19, according to the agreement with the bondholders.
Operational
- At the close of 4Q22, GICSA reported a total of 950,461 square meters of Gross Leasable Area (GLA) comprised of 17 properties in operation. Proportional GLA was 85%, equivalent to 811,336 square meters. These amounts represented decreases of 3% in total and proportional GLA, compared to 4Q21, and were due to the sale of the Lomas Altas property.
- During 4Q22, 70 commercial spaces began operations, representing 20,649 square meters in relation to the portfolio in operation, an increase of 52% compared to 4Q21.
- During 4Q22, 54 new leases were signed, representing 14,659 square meters of the total portfolio.
- At the close of 4Q22, the occupancy rate in the total portfolio was 84%, and the adjusted occupancy rate was 83%. Both represented increases of 4% compared to 4Q21.
- At the close of 4Q22, the average rent per square meter within the portfolio in operation was Ps. 377, a decrease of 0.5%, compared to 4Q21.
- During the 4Q22, the number of visitors to the shopping malls within the portfolio in operation reached 20 million, an increase of 15% compared to 4Q21. The number of visitors was 94% of the pre-pandemic 4Q19 level.
Financial
- Total 4Q22 revenue after the proportional recognition of the tenant Covid-19 support program was Ps. 914 million, an increase of 12% compared to 4Q21. For full-year 2022, corresponding revenue was Ps. 3,791 million, an increase of 6% compared to 2021.
- Consolidated and proportional NOI in 4Q22 were Ps. 718 million and Ps. 598 million, increases of 83% and 79%, respectively, compared to 4Q21. These increases were due to lower write-offs in 4Q22 compared to 4Q21. Consolidated and proportional NOI in 2022 were Ps. 3,066 million and Ps. 2,551 million, increases of 15% and 14%, respectively, compared to 2021.
- Consolidated and proportional EBITDA in 4Q22 were Ps. 450 million and Ps. 330 million, increases of 204% and 271%, respectively, compared to 4Q21. For full-year 2022, consolidated and proportional EBITDA were Ps. 2,789 million and Ps. 2,274 million, both represented increases of 22% and 23%, respectively, compared to 2021. These increases were due to the lower write-offs in account receivables and the delivery of Cero5Cien units.
- Total consolidated and proportional debt at the close of 4Q22 were Ps. 28,304 million and Ps. 25,877 million, decreases of 0.7% and 0.2%, respectively, compared to 4Q21. Both represented decreases of 2% compared to 3Q22. At the close of 4Q22, consolidated LTV was 38%.
Pipeline
- At the close of 4Q22, the commercialization of properties under development and in stabilization (Explanada Culiacán, Masaryk 169 and Grand Outlet Riviera Maya) totaled 70,115 square meters, which represented 60% of the GLA.
- To date, 62 units of the Cero5Cien residential project have been sold, corresponding to 61% of the Gross Saleable Area (GSA), of which 21 units have been delivered to buyers to initiate the finishing work.
For a full version of GICSA's Fourth Quarter 2022 Earnings Release, please visit:
http://www.gicsa.com.mx/en/investors-relationship/financial-information
Conference Call
GICSA cordially invites you to its Fourth Quarter Conference Call
Tuesday, February 28, 2023
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 3361 U.S. participants
1 (785) 424 1062 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, 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) 950,461 square meters, and a Proportional GLA of 811,336 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: [email protected]
Yinneth Lugo, IR
Tel: +52 (55) 5148 0402
Email: [email protected]
SOURCE: Grupo Gicsa, S.A. de C.V.