MEXICO CITY–(BUSINESS WIRE)–FIBRA Macquarie México (FIBRA Macquarie) (BMV:FIBRAMQ), owner of one of the largest portfolios of industrial and retail property in Mexico, today provided an update on a number of actions it is taking to mitigate the impact of COVID-19 on FIBRAMQ, its people, portfolio and operations.
“As we continue to navigate the challenges presented by COVID-19, we are taking a number of proactive steps to address the impacts from this unprecedented event,” said Juan Monroy, FIBRA Macquarie’s chief executive officer. “Our priority first and foremost is the health, safety and well-being of our team members, customers and other stakeholders. We are working collaboratively with those customers whose businesses have been adversely affected for our mutual long-term benefit. We are of course also focused on maintaining our financial flexibility – our strong balance sheet has allowed us to take additional measures to enhance our liquidity profile in this heightened risk environment.”
As a result of the evolving situation with respect to the COVID-19 outbreak, FIBRAMQ is taking the following actions and implemented the following measures:
- Staff: All FIBRA Macquarie associates, as well as the staff at our internal property administration platform, have remote working capabilities as part of appropriate safety measures to protect staff health and well-being, notwithstanding, property management teams remain fully operational to service the needs of FIBRAMQ customers and properties across all of its industrial and retail properties.
- Heightened safety measures: At its retail centers, FIBRAMQ has implemented preventative measures based on recommended protocols from the Mexican Secretary of Health to ensure its shopping centers are clean and to protect staff, customers and the community. These measures include, but are not limited to, antibacterial gel being made available, additional signage in centers promoting social distancing and safe hygiene practices and enhanced cleaning of the properties. FIBRAMQ continues to actively manage its properties, working closely with its tenants to provide support and assistance.
- Customer activity: In FIBRAMQ’s industrial portfolio, many of its customers continue operating as an essential business or as suppliers to essential businesses. In FIBRAMQ’s retail portfolio, all shopping centers are supermarket anchored and remain open, however foot traffic has declined in line with non-essential store closures. Essential tenants, which comprise approximately 40 per cent of retail portfolio annualized base rent – including supermarkets, pharmacies, banks, home and office depots and restaurants offering take-out or delivery services – are able to safely operate in order to service the communities’ needs.
- Enhanced liquidity position: As of March 31, 2020, FIBRAMQ had cash of approximately US$210.0 million, including US$180.0 million drawn under its Revolving Credit Facility which was drawn on March 24, 2020 as a proactive measure to increase its cash position and to preserve its financial flexibility, and which is expected to be repaid when market conditions normalize.
- Supporting our customers: FIBRAMQ expects a number of its tenants will be impacted by COVID-19 and has established protocols to work with its retail and industrial customers through this challenging period.
FIBRAMQ has a resilient business model which is in a strong position to face the challenging environment, highlighted by:
- Strong balance sheet: FIBRAMQ has no loan facility expirations until 2023 and is in compliance with its loan covenants. In addition, FIBRAMQ has access to additional liquidity reserves, with a Mexican Peso-denominated revolver facility sub-tranche of Ps. 1,260 million (approximately US$54 million) remaining undrawn. As at March 31, 2020, FIBRAMQ’s weighted average debt tenor remaining was 5.5 years, and its weighted average cost of debt was 5.2 per cent per annum, with variable rate debt representing 18 per cent of total debt outstanding.
- Prudent capital management strategy: FIBRAMQ’s prudent AFFO payout ratio provides financial flexibility, and in addition, FIBRAMQ does not have any material commitments with respect to growth capital expenditure.
- Dollarized industrial portfolio: FIBRAMQ’s industrial tenant base is comprised of a diversified customer mix which remains well positioned to benefit from Mexico’s competitive long-term fundamentals, with approximately 92 per cent of FIBRAMQ’s industrial lease income is denominated in US Dollars.
First Quarter 2020 Earnings Conference Call and Webcast
Taking into account adjusted reporting timelines recently issued by the CNBV, and to provide a more comprehensive update and outlook in conjunction with the first quarter 2020 earnings report, FIBRA Macquarie will release first quarter 2020 results on May 12, 2020 after the close of the market, and will host a conference call and webcast presentation on May 13, 2020 at 7:30 a.m. CT / 8:30 a.m. ET. Additional details below.
The conference call and webcast presentation can be accessed online at www.fibramacquarie.com or by dialing toll free +1-877-304-8957. Callers from Mexico may dial 01-800-926-9157 and other callers from outside the United States may dial +1-973-638-3235. Please ask for the FIBRA Macquarie First Quarter 2020 Earnings Call with conference number 5847447.
An audio replay will be available by dialing +1-855-859-2056 or +1-404-537-3406 for callers from outside the United States. The passcode for the replay is 5847447. A webcast archive of the conference call and a copy of FIBRA Macquarie’s financial information for the first quarter 2020 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 235 industrial properties and 17 retail properties, located in 20 cities across 16 Mexican states as of December 31, 2019. 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 document includes forward-looking statements that represent our opinions, expectations, beliefs, intentions, estimates or strategies regarding the future, which may not be realized. These statements may be identified by the use of words like “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “will,” “should,” “seek,” and similar expressions. The forward-looking statements reflect our views and assumptions with respect to future events as of the date of this document and are subject to risks and uncertainties.
Actual and future results and trends could differ materially from those described by such statements due to various factors, including those beyond our ability to control or predict. Given these uncertainties, you should not place undue reliance on the forward-looking statements. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
None of the entities noted in this document is an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities.
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:
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Evelyn Infurna
Tel: +1 203 682 8265
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Nikki Sacks
Tel: +1 203 682 8263
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For press queries:
Flavio J. Díaz-Tueme, Fleishman Hillard México
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