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GRUPO GICSA, S.A.B. DE C.V.: Gicsa Announces Consolidated Results for Second Quarter 2019

MEXICO CITY, MX / ACCESSWIRE / July 23, 2019 / 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 second quarter (“2Q19") and six-month (“6M19") periods ended in June 30, 2019.

All figures have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and are stated in thousands 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.

GICSA’s financial results presented in this report are unaudited; therefore, figures mentioned throughout this report may present adjustments in the future.

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Main Highlights

Corporative

  • Beginning in the third quarter of 2018, we were able to see reflected the results of the restructuring of our joint portfolio with a group of investors at the project level; this transaction was announced in a press release dated July 3.
  • In order to facilitate the understanding and comparability of the financial results, this report presents consolidated and proforma information. Proforma information reflects information as if the transaction had occurred on January 1, 2018, which facilitates the comparability of the information. 2Q19 will be the final quarter that reflects this effect.
  • Derived from current market conditions, GICSA is evaluating strategic opportunities that include, without limitation, the review of the debt profile, and analyzes refinancing options, and well as strategic alternatives for the portfolio that is under operation and development.

Operational

  • GICSA reported a total of 836,458 square meters of Gross Leasable Area (GLA) comprised of 15 properties in operation at the conclusion of 2Q19. GICSA’s proportional GLA was 83.4%, equivalent to 697,616 square meters, an increase of 31.8% compared to 2Q18.
  • As of 2Q19, the occupancy rate of the stabilized portfolio was 93.2% and including the 5 properties delivered in 2018, the occupancy rate reached 90.7%.
  • Average leasing rate per square meter of the stabilized portfolio at the close of 2Q19 was Ps. 384.
  • GICSA reached an occupancy cost of 9.8% at the close of 2Q19, and an increase of 5.6% in same-store sales during the same period.
  • At the close of 2Q19, GICSA had a total of 18 million visitors throughout the portfolio´s shopping, an increase of 3.8% in same properties.
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Financial

  • Consolidated Net Operating Income (NOI) reached Ps. 851 million in 2Q19, an increase of 16.9% compared to 2Q18. GICSA’s proportional NOI reached Ps. 679 million, an increase of 52.1% compared to 2Q18. Considering proforma figures for 2Q18 and 2Q19 the actual increase was 15.6% in the consolidated NOI and 14.0% in the proportional NOI.
  • Consolidated EBITDA was Ps. 757 million in 2Q19, a decrease of 57.4% compared to 2Q18, and an increase of 17.0% excluding the extraordinary revenue for the services recognition from the property swap in 3Q18. GICSA’s proportional EBITDA reached Ps. 586 million, a decrease of 63.0% compared to 2Q18 and an increase of 28.7% excluding the extraordinary revenue in 3Q18.
  • At the close of 2Q19, net income reached Ps. 568 million; while GICSA’s proportional net income was Ps. 481 million.
  • Consolidated financial debt at the close of 2Q19 was Ps. 24,361 million; while GICSA’s proportional debt was Ps. 21,753 million. LTV was 35.6%.
  • During this quarter, the Company refinanced the Capital Reforma bank loan with a new maturity at June 2024 and lowering the financing cost by 65 basis points. Furthermore, the Paseo Queretaro bank loan changed from a construction loan, to a simple credit loan, improving the financing cost by 95 basis points from a TIIE plus 420 basis points to a TIIE plus 325 basis points. As of 2Q19, the outstanding balance was Ps. 1,128 million with maturity April 2026.
  • As of June 30, 2019, the Company implemented several hedging instruments in order to mitigate interest rate fluctuation. At the close of 2Q19, 100% of the floating consolidated debt was hedged. Moreover, the Company negotiated a fix value for the UDI. At the close of 2Q19, the fixed rate TIIE and LIBOR was 7.84% and 1.58%, respectively.
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Pipeline

  • During 2Q19, the commercialization of properties under development and in stabilization reached progress of 141 signed contracts representing 21,909 square meters.
  • Lomas Altas, Explanda Pachuca and Explanada Culiacán reached construction progress of 96%, 95% and 67%, respectively. We expect that these facilities will open according to schedule.
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***

For a full version of GICSA’s Second Quarter 2019 Earnings Release, please visit:
http://www.gicsa.com.mx/en/investors-relationship/financial-information

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Conference Call

GICSA cordially invites you to its Second Quarter 2019 Conference Call

Wednesday, July 24, 2019
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

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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 industrial warehouses 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 June 30, 2019, the Company owned 15 income-generating properties, consisting of nine 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) 836,458 square meters, and a Proportional GLA of 697,616 square meters. Since June 2015, GICSA is listed on the Mexican Stock Exchange under the ticker (BMV: GICSA B).

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For more information

in Mexico:
GICSA
Diódoro Batalla - Chief Financial Officer
Tel: 5255- 5148-0400 Ext. 4444
dbatalla@gicsa.com.mx

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in New York:
i-advize Corporate Communications, Inc.
Rafael Borja
Tel: (212) 406-3693
rborja@i-advize.com

SOURCE: GRUPO GICSA, S.A.B. DE C.V.

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