Fourth Quarter 2015 Earnings Release - investor cloudcdn.investorcloud.net/fibramty/Informacion... · 2015 4Q15 3Q15 2Q15 1Q15 Number of New Properties 13 2 6 5 - Acquisition Price

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4Q15 Earnings Release

Fourth Quarter 2015 Earnings Release

Contact: Jaime Martínez Chief Financial Officer Tel: +5281-4160-1403 Email: [email protected]

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Fibra Mty Investment Model Key strategic aspects of our business plan

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FIBRA MTY ANNOUNCES RESULTS FOR FOURTH QUARTER 2015

Monterrey, Nuevo Leon, Mexico – February 22, 2016 – Banco Invex, S.A., Institución de Banca Múltiple, Invex Grupo Financiero, Fiduciario, as Trustee of the Trust identified by the number F/2157, (BMV: FMTY14), (“Fibra Mty” or “the Company”), the first real estate investment trust 100% internally managed and advised by Administrador Fibra Mty, S.C., announced today its results for the fourth quarter of 2015 (4Q15). The figures presented in this report have been prepared in accordance with International Financial Reporting Standards (IFRS) and are expressed in millions of Mexican pesos (Ps.), unless otherwise indicated.

Fourth Quarter 2015 Highlights

Fibra Mty ended 4Q15 with 22 properties, including 8 office properties, 9 industrial properties and 5 commercial properties.

At the close of 4Q15, Fibra Mty reported a total of 220,287 square meters of Gross Leasable Area (GLA), which represents an increase of 6.1% compared to 3Q15.

The occupancy rate as of December 31, 2015 was 97.9%.

The average monthly rent per square meter was US$19.3 for Corporate – Front Office, US$ 12.6 for Corporate – Back Office, US$ 3.8 for Industrial Properties and US$ 6.7 for Commercial Properties.

Total Revenues reached Ps. 101.5 million, 9.1% higher than 3Q15.

Net Operating Income (NOI) was Ps. 80.7 million, 7.9% above 3Q15.

EBITDA in 4Q15 was Ps. 73.9 million, 10.7% higher than 3Q15.

Funds from Operations (FFO) totaled Ps. 72.4 million, 5.8% above 3Q15, while Adjusted Funds from Operations (AFFO) were Ps. 70.5 million, up 6.9% compared to 3Q15.

As a result of its 4Q15 operating performance, Fibra Mty will distribute to its Holders Ps. 70.5 million; equivalent to Ps. 0.233 per CBFI, representing an annualized return of 7.6% with respect to the closing price per CBFI on December 31, 2014 of Ps. 12.20.

During 2015, Fibra Mty successfully concluded the acquisition of Casona, Catacha, Monza, Santiago, Monza 2 and Prometeo. The NOI of these new properties is estimated at approximately Ps. 104.0 million for the first year.

On December 15, 2015, Fibra Mty successfully signed a syndicated US$100 million credit line, as previously announced, and the first tranche, for US$ 38.5 million, was mainly utilized for the acquisition of the Prometeo building.

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Operating Highlights

4Q15 3Q15 2Q15 1Q15 Δ%/pp

4Q15 vs 3Q15

Number of Properties 22 20 14 9 10.0%

Office 8 7 7 7 14.3%

Industrial 9 9 7 2 0.0%

Commercial 5 4 NA NA 25.0%

Gross Leasable Area (GLA) m2 220,287 207,541 172,365 132,698 6.1%

Occupancy Rate 97.9% 97.8% 97.0% 96.1% 0.1pp

Average Rent / m2 Office – Front Office (US$)(1)

$19.3 $19.0 $19.7 $19.3 1.6%

Average Rent / m2 Office – Back Office* (US$)(2)

$12.6 $12.0 $12.3 $12.4 5.0%

Average Rent / m2 Industrial (US$) $3.8 $3.8 $3.7 $3.7 0.0%

Average Rent / m2 Commercial (US$) $6.7 $6.9 NA NA -2.9%

(1) The increase is explained by the activation of the contractual tabulator related to some rents denominated in

pesos which was established for periods of sharp devaluation of the peso vs. dollar

(2) The decline is explained by the impact of depreciation of the peso vs. dollar, given the rent paid denominated in

pesos.

Summary of Acquisitions Concluded

In thousands of pesos (except GLA and lease term)

2015 4Q15 3Q15 2Q15 1Q15

Number of New Properties 13 2 6 5 -

Acquisition Price (1) 1,203,596 531,660 390,750 281,186 -

Annual NOI 104,038 41,010 33,300 29,728 -

Gross Leasable Area (GLA) m2 87,589 12,746 35,176 39,667 -

Cap Rate (2) 8.6% 7.7% 8.5% 10.6% -

Weighted Average Lease Term N/A 9.7 12.2 1.1 -

(1) It includes the final Price paid for the Santiago building, currently under the last phase of construction

(2) The cap rate in cash is calculated by dividing NOI, corresponding to the twelve month period after the date of

acquisition, by the acquisition price of the property.

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Financial Highlights:

In thousands of pesos

2015 4Q15 3Q15 2Q15 1Q15 Var. Ps. 4Q15 vs

3Q15

Δ%/pp 4Q15 vs

3Q15

Total Revenues 352,482 101,503 92,999 81,967 76,013 8,504 9.1%

Net Operating Income (NOI)

305,039 87,040 80,704 69,946 67,349

6,336 7.9%

EBITDA 255,660 73,919 66,803 58,672 56,266 7,116 10.7%

FFO 257,928 72,375 68,423 58,794 58,336 3,952 5.8%

AFFO 246,376 70,465 65,923 54,152 55,836 4,542 6.9%

Financial Highlights per CBFI:

2015 4Q15 3Q15 2Q15 1Q15 Var. Ps. 4Q15 vs

3Q15

Δ%/pp 4Q15 vs

3Q15

ION 1.011 0.287 0.266 0.231 0.227 0.021 7.9%

EBITDA 0.848 0.244 0.220 0.194 0.190 0.024 10.9%

FFO 0.856 0.239 0.226 0.194 0.197 0.013 5.8%

AFFO 0.817 0.233 0.218 0.179 0.188 0.015 6.9%

Outstanding CBFIs (in thousands)

NA 303,092.224 303,092.224 303,092.224 296,293.528 -

-

Financial Margins:

2015 4Q15 3Q15 2Q15 1Q15 Var. Ps. 4Q15 vs

3Q15

Δ%/pp 4Q15 vs

3Q15

Total Revenues 352,482 101,503 92,999 81,967 76,013 8,504 9.1%

Net Operating Income (NOI)

86.5% 85.8% 86.8% 85.3% 88.6% 74.5%

(1.0 p.p)

EBITDA 72.5% 72.8% 71.8% 71.6% 74.0% 83.7% 1.0 p.p

FFO 73.2% 71.3% 73.6% 71.7% 76.7% 46.5% (2.3 p.p)

AFFO 69.9% 69.4% 70.9% 66.1% 73.5% 53.4% (1.5 p.p)

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Comments from the Chief Executive Officer

“It takes 20 years to build up a reputation and 5 minutes to destroy it” -Warren Buffet

Through this letter I want to thank our investors for the trust they have placed in Fibra Monterrey, by reiterating our commitment to pursue the goals we have set. The fourth quarter of 2015 closes our first full year of operations, and reflects the performance promised during the IPO process carried out in 2014. We are highly satisfied to report that we have exceeded the targets set by our Technical Committee and the analyst estimates established for 2015 in terms of, both, FFO and Distributions per CBFI. In this regard, the distribution for this quarter reached Ps. 0.2325, representing an annualized return of 7.75% over the offering price. We also met our target number of acquisitions; we estimated Ps. 2,639 million in acquisitions and closed the year with binding agreements for Ps. 3,851 million. Of this amount, at year-end, we had closed on Ps. 1,212 million in acquisitions. It is clear for all of us at Fibra Mty that these investments will offer better results to investors through economies of scale generated by our internally managed and advised structure. In order to complete our announced acquisitions we actually have sufficient credit lines to pay them in full. However, to fulfill our commitment to maintaining healthy debt levels on our balance sheet, we announced a subscription of CBFIs (Certificados Bursátiles Fiduciarios Inmobiliarios) aimed at capitalizing the fibra. In this manner, the fresh capital provided by our holders will be used to complete the transactions, thus following our principle of maintaining only the resources necessary for our operation in cash. This will help prevent reducing the dividend dilution period implied in a capital increase. Finally, let me conclude by reiterating our commitment to devoting every effort to remain focused on meeting the guidance published a few weeks ago; we will achieve this in a transparent manner through the corporate governance structure that has characterized Fibra Monterrey. Sincerely,

Jorge Avalos Carpinteyro Chief Executive Officer

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Operating Performance

Portfolio and Geographic Locations

Fibra Mty’s portfolio comprises 22 properties located in 5 states of Mexico, with an average age and occupancy of 13 years and 97.9%, respectively.

Property Location GLA (m2)

Total Revenues 2015

(Ps. thousands)

Occupancy %

1 OEP Torre 1 Monterrey, N.L. 13,529 49,475 79.5%

2 OEP Torre 2 Monterrey, N.L. 18,007 74,351 93.4%

3 OEP P Central Monterrey, N.L. 13,295 65,830 100.0%

4 Neoris/GE Monterrey, N.L. 19,038 52,125 100.0%

5 Axtel Monterrey, N.L. 12,937 31,761 100.0%

6 Atento Monterrey, N.L. 3,532 6,678 100.0%

7 Danfoss Monterrey, N.L. 30,580 23,466 100.0%

8 Cuadrante Ciudad Juárez, Chihuahua 4,519 10,833 84.8%

9 Cuprum Monterrey, N.L. 17,261 8,952 100.0%

10 Casona Chihuahua(1) Chihuahua, Chihuahua 12,195 4,668 100.0%

11 Casona Parral(1) Parral, Chihuahua 5,888 2,367 100.0%

12 Casona Los Mochis(1) Los Mochis, Sinaloa 8,904 6,313 100.0%

13 Casona Irapuato BOS(1) Irapuato, Guanajuato 5,951 2,225 100.0%

14 Casona Irapuato CMI(1) Irapuato, Guanajuato 6,729 3,729 100.0%

15 Catacha(2) Santa Catarina, N.L. 5,000* 1,530 100.0%

16 Monza 7101(3) Chihuahua, Chihuahua 8,478 3,749 100.0%

17 Monza 7107(3) Chihuahua, Chihuahua 1,790 861 100.0%

18 Monza Delicias(3) Delicias, Chihuahua 1,971 722 100.0%

19 Monza Cuauhtémoc(3) Cuauhtémoc, Chihuahua 1,440 1,175 100.0%

20 Santiago(4) Querétaro, Querétaro 16,497 - 100.0%

21 Monza 2(5) Chihuahua, Chihuahua 4,611 897 100.0%

22 Prometeo(6) Monterrey, N.L. 8,135 775 100.0%

Total / Average 220,287 352,482 97.9%

(1) Properties acquired and incorporated to Fibra’s Mty portfolio on May 28, 2015. (2) Property acquired and incorporated to Fibra’s Mty portfolio on July 29, 2015. (3) Properties acquired and incorporated to Fibra’s Mty portfolio on August 27, 2015. (4) Property currently under construction, the land and the works contract was acquired and incorporated to Fibra’s Mty portfolio on September 21, 2015. (5) Property acquired and incorporated to Fibra’s Mty portfolio on November 13, 2015. (6) Property acquired and incorporated to Fibra’s Mty portfolio on December 22, 2015. *Expected to increase upon completion of updates currently underway.

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Gross Leasable Area

As of December 31, 2015, Fibra Mty’s GLA was equal to 220,287 square meters, 42.2% corresponding to office, 49.5% corresponding to industrial space and 8.3% to commercial space.

Evolution of Fibra Mty’s Geographic Diversification

Fibra Mty’s Concentration in Monterrey (as % of Revenues, after each acquisition)

Upon completion of the additional acquisitions under negotiation and announced during 2015 and currently under due diligence, the Company’s concentration in Monterrey as a percentage of revenues, would decline to 61.0%.

96%

4%

4Q14 (% NOI)

NL

Chih

80%

11%

3% 3% 3%

4Q15 (% NOI) NL

Chih

Qro

Sin

Gto

96.2%

86.8% 86.9% 80.8% 78.1% 80.4%

Initial Portfolio Casona Catacha Monza Santiago Prometeo

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Portfolio Breakdown by Property Use

For the 12M15, Fibra Mty’s NOI reached Ps. 305.0 million, 80.9% attributable to office space, 16.8% corresponding to industrial space and 2.3% commercial space.

Tenant Breakdown by Economic Activity

Fibra Mty has a tenant base that is diversified in terms of economic activity, which enables the Company to minimize its revenue dependence on any specific type of tenant. The following graph presents a breakdown of its leasing contracts by economic activities carried out by the Company’s tenants:

*Breakdown of “Other Economic Sectors” described in the following graph:

19%

18%

17% 10%

10%

9%

7%

6% 4%

Distribution of Tenants by Economic Activity (% Rents)

Technology

Service

Other economic sectors*

Automotive

Communications

Manufacturing

Electronics

Consumer

Logistics

0.4%

0.6%

0.7%

0.8%

0.9%

2.3%

2.4%

3.3%

5.0%

Metal Mechanics

Energy

Commercial

Agriculture

Public Service

Industrial Gas

Financial Services

Construction and Development

Others

Other Economic Sectors (17%)

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Key Indicators of Fibra Mty’s Portfolio Performance (% of revenues)

Occupancy

As of December 31, 2015, the occupancy rate of the operating properties owned by Fibra Mty was 97.9%, an increase of 10 basis points compared to 3Q15, as a result of the incorporation of Edificio Monza 2 and Prometeo during 4Q15.

The occupancy rate for office space was 95%, while both, industrial and commercial spaces, reached 100% occupancy.

Contract Maturity

As of December 31, 2015 Fibra Mty had 531 tenants; 77% were located in office spaces (including retail areas focused on services), 19% in industrial spaces and 4% in commercial space.

As of December 31, 2015, the weighted average lease term required was 6 years. If current contracts are not renewed and no new leases are entered into, the Company would have granted at least 69.2% of the rent flow until 2020.

1 Tenants that rent various spaces in one or more properties are only counted once.

73%

20%

7%

By asset type

Oficina Industrial Comercial

80%

11%

3% 3% 3%

By location

NL Chih Qro Sin Gto

80%

20%

By currency

USD MXN

12%

17%

19% 15%

21%

16%

By contract maturity (years)

0-1 1-3 3-5 5-7 7-10 10+

96%

4%

Occupancy

Rented Available

8.2%

8.1%

7.2%

6.4% 6.2%

6.2%

5.7%

5.2%

4.9% 4.7%

Main tenants

Axtel Neoris GE PWC Danfoss

Cleber Mary Kay Epicor B&M Accenture

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Upon completion of the additional acquisitions under negotiation, announced during 2015 and currently under due diligence, Fibra Mty would have granted at least 73% of the rent flow until 2020.

Portfolio Breakdown by Type of Property (% Rents) & Rent Level Evolution

In general, Fibra Mty’s rents are considered to be below the market levels, which represents a competitive advantage when renewing and/or negotiating new contracts.

1 The market price takes into account the price asked by landlords. Source: CBRE for Sta Maria and Industrial space; Fibra Mty Research for back office space.

12.4% 13.8%

3.5% 1.0%

17.8% 14.3%

0.4%

8.2%

12.8%

0.0%

9.5%

0.0% 0.0% 0.0%

6.2%

12.4%

26.3% 29.8% 30.8%

48.6%

62.9% 63.2% 71.5%

84.3% 84.3% 93.8% 93.8% 93.8% 93.8%

100.0%

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Contract Maturity

Maturity Accumulated

More than 69% of Fibra Mty's rental revenue mature after 2020

19.3

12.6

3.8

19.9

15.0

3.87 0

5

10

15

20

25

Corp. Office Back office Industrial

Monthly US$ Rents by square meter1

Fibra Mty Market

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Use of Capital and CAPEX Current Portfolio As of December 31, 2015, Fibra Mty invested Ps. 9.6 million in capex, in line with the reserve of Ps. 10 million set at the beginning of 2015. Out of the Ps. 9.6 million invested, Ps. 6.8 million were capitalized and Ps. 2.8 million were registered in accordance to IFRS standards. Fibra Mty continues to evaluate the physical condition of its properties to identify, in the short and medium terms, areas of improvement related to machinery, equipment and structure. In order to assure the best usage of the resources, the Company has hired a team of experts in this field. The CAPEX budget for 2016 is Ps. 35 million.

Acquisitions During the 4Q15, Fibra Mty concluded the acquisition of Monza 2 and Prometeo. Moreover, the Company reached an agreement to acquire Providencia, which was previously approved by Fibra Mty’s Technical Committee on October 26, 2015 and is subject to be approved by Fibra Mty’s holders meeting. All these acquisitions are consistent with the established investment guidelines, and consist of the following:

Monza 2 Building: This acquisition consists of a commercial property fully occupied by a single company, located in the city of Chihuahua, in the state of Chihuahua. The total GLA of the building is approximately 4,600 square meters, built on more than 4,100 square meters of land. This acquisition represents a total investment of Ps. 76.9 million plus the corresponding VAT, as well as other taxes and acquisition expenses. The purchase price was fully paid with cash and is expected to generate NOI of Ps. 6.2 million during the first year following the acquisition.

Prometeo Building: The “Prometeo” building comprises a Class-A office building with GLA of approximately 8,135 square meters. It is located in the Valle Oriente corridor within the metropolitan area of Monterrey City, Nuevo Leon. This building is 11 years old and is fully occupied. The total price of this transaction reached approximately Ps. 454.7 million, plus the corresponding VAT, as well as other taxes and acquisition expenses. The “Prometeo” building is expected to generate NOI of Ps. 34.8 million during the twelve months following the acquisition. The purchase price was be fully paid with cash with the resources stemming from the syndicated loan announced by the Company on December 16, 2015.

Providencia Portfolio: The “Providencia” portfolio consists of 8 commercial properties, with approximately 82,545 square meters of GLA. All the properties are located in the metropolitan area of Saltillo, Coahuila and have an average age of 3 years. This portfolio is 100% occupied, and the Company expects to continue at that level upon completion of the transaction. This transaction represents a total approximate cost of Ps. 777 million, plus the corresponding VAT as well as other taxes and other acquisition expenses. The acquisition of the “Providencia Portfolio” is expected to generate a potential additional NOI of Ps. 67.8 million during the 12 months following the acquisition. This transaction will allow Fibra Mty to increase its NOI by approximately 14% of the Company’s existing portfolio. The acquisition of the “Providencia” portfolio represents the Company’s entrance into the Saltillo real estate market, which due to its nature and closeness to Monterrey is a natural complement to the Company’s investments, particularly in the industrial sector.

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Comments on the Real Estate Market in Monterrey

Office Market [2]

In 2015, more than 120,000 square meters of class A/A+ office space was completed in Monterrey;

which, added to the existing vacant 98,000 square meters, totals approximately 218,000 square

meters of available space.

In accordance to CBRE studies, the net absorption for 2015 was less than 70,000 square meters,

and is expected to reach levels above 85,000 square meters per year starting 2016. That is, for the

past four years, net absorption of office space has grown at an average rate of 35% per year with

construction of new spaces growing at an annualized rate of over 12%.

If this trend continues, the net availability rate for office space by the end of 2019 will be between

6% and 13%, compared to 22.1% in 4Q15.

Industrial Market[3]

The availability rate in the industrial market of Monterrey’s metropolitan area has remained low

over the past three years, down to 6.8% in 2015 from 9.2% in 2012.

In 4Q15, the net absorption levels deepened to approximately 270,000 square meters. The gross

absorption in 2015 reached over 720,000 square meters, being the highest figure since 2008.

Moreover, this figure is higher than the 400,000 square meters of class A space that is currently

under construction.

Monterrey continues to lead as the main industrial market with more than 7.1 million square

meters of class A inventory during 4Q15, an increase of 4.6% or 317,000 square meters compared

to 4Q14.

[2] Source: CBRE Research 4Q 2015 [3] Source: CBRE Research 4Q 2015

$21.00 $20.00 $19.75 $19.75 $20.00 $21.00 $20.75 $21.50 $21.75 $24.10 $23.90 $23.65

(5,000)

-

5,000

10,000

15,000

20,000

25,000

30,000

1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015

Net Absorption of Offices vs Rents in Monterrey (in square meters and US$ per m2 of monthly GLA)

Net Absorption in m2 Rent US$/m2/month

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Income levels have remained stable at $3.83 per square meter per month despite the increase

suffered by the exchange rate of the peso against the dollar throughout the year.

Financial Performance

The fourth quarter 2015 performance was marked by the incorporation of Monza 2 and Prometeo Buildings into Fibra Mty’s portfolio during the first and second half of November and December, respectively; by the first three full months of operation of the Catacha building and Monza Portfolio, which were acquired during the last weeks of July and August, 2015, respectively; the favorable effect of the exchange rate, as well as higher maintenance costs and financial expenses related to the usage of the syndicated loan signed at the end of 2015 and the bridge loan used to pay Monza 2, which was settled at the beginning of 2016.

Total Revenues

Total Revenues for 4Q15 reached Ps. 101.5 million, an increase of 9.1% compared to 3Q15. This result was mainly due to the Ps. 4.8 million corresponding to the acquisition of Monza 2 and Prometeo and the first three full months of operation of Catacha and Monza; contract renewals with increases in rent for Ps. 1.6 million, as well as the fluctuation in the exchange rate for approximately Ps. 1.7 million.

Operating Expenses

Property expenses reached Ps. 14.5 million, an increase of 17.6% compared to 3Q15, this increase corresponds to the CAPEX reserve set at the beginning of 2015, approximately Ps. 2 million of which were registered in the 4Q15 income statement in accordance to IFRS standards, with the resources allocated for major maintenance. NOI margin remained over 80%, reaching 85.5% in 4Q15, a decline of 100 basis points compared to 3Q15, mainly as a result of major maintenance costs incurred in 4Q15. Administrative services, trustee and general expenses

These expenses reached Ps. 13.4 million, a decline of 5.0%, mainly corresponding to the non-recurring expenses registered in 3Q15, not incurred in 4Q15 derived from the VAT reimbursement corresponding to the acquisition of the initial portfolio, offset by the appraisal expenses registered in accordance to IFRS standards, as well as the hiring of personnel. In this regard, it’s important to highlight that the expenses incurred were in line with the amount authorized by the Technical Committee for 2015. CBFIs Executive Compensation Plan During 4Q15 Fibra Mty registered a provision of Ps. 12.5 million corresponding to the compensation plan for Fibra Mty’s Key Executives. As of December 31, 2015 this provision reached Ps. 25.9 million, equivalent to 2.1 million of CBFIs, which will be 100% granted, net of taxes, to key executives as a result of the achievement of certain goals approved by the Technical Committee at the beginning of 2015. This provision was registered in the income statement according to the IFRS standards and will be paid in CBFIs.

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NOI & EBITDA

Net operating income (NOI) reached Ps. 87.0 million, up 7.9% compared to 3Q15. As a result, NOI margin was 85.8%. EBITDA was Ps. 73.9 million in 4Q15, 10.7% higher than 3Q15. The provision corresponding to the Executive Bonus in CBFIs was excluded in this case, given that this is a line item that will be settled through the issuance of CBFIs and by revenue of properties measured at fair value.

thousands of pesos 2015 4Q15 3Q15 2Q15 1Q15 Δ%

4Q15 vs 3Q15

Total Revenues 352,482 101,503 92,999 81,967 76,013 9.1%

Property Related Expenses

47,443 14,463 12,295 12,021 8,664 17.6%

NOI 305,039 87,040 80,704 69,946 67,349 7.9%

Administrative Expenses

50,012 13,379 14,086 11,451 11,096 (5.0%)

EBITDA 255,660 73,919 66,803 58,672 56,266 10.7%

Financial Result

Fibra Mty’s finance result for 4Q15 was (Ps. 11.1 million), a 404.9% decline, compared to 3Q15.

This result was due to the interest paid for the partial usage of the syndicated bank loan

contracted in US dollars at the end of 2015 and the exchange rate loss derived from peso vs. dollar

depreciation from Ps. 17.1360 (date of the partial usage of the syndicated bank loan for 38.5

million dollars) to Ps. 17.3398 as of December 31, 2015 (date of the liabilities valuation

denominated in US dollars in accordance of IFRS standards).


4Q15 vs 3Q15

Net Interest Income 7,602 1,054 2,263 2,055 2,230 (53.4%)

Finance expenses 2,164 2,164 - - - 100.0%

Net Foreign Exchange Gain (loss) (7,487) (10,010) 1,384 (215) 1,354 (823.3%)

Net Finance Result (2,049) (11,120) 3,647 1,840 3,584 (404.9%)

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Consolidated Comprehensive and Net Income Fibra Mty’s consolidated comprehensive and net income for 4Q15 reached Ps. 578.4 million, an increase of 876.1%, compared to 3Q15, mainly due to the recording of revenue of properties measured at fair value, calculated by an independent appraisal and in accordance to IFRS standards. Fibra Mty’s net income for 4Q15 was Ps. 578.8 million, an 876.7% increase when compared to 3Q15. This result was derived from the valuation effect of the interest rate swap signed at the end of 2015, in order to switch the syndicated credit loan from a variable interest rate to a fix rate related, as explained in the debt and cash section. The Company registered Funds from Operations (FFO) of Ps. 72.4 million, a 5.8% growth, equivalent to Ps. 0.239 per CBFI. The annualized FFO per CBFI for the quarter and the year, divided by price of Ps. 12.20 at December 31, 2014, was 7.8% and 7.0%, respectively. In terms of Capital Expenditures, Fibra Mty allocated Ps. 0.3 million in addition to payments made for Ps. 1.6 million. Therefore Adjusted Funds from Operations (AFFO) reached Ps. 70.5 million, representing an increase of 6.9% and an AFFO per CBFI of Ps. 0.233. The annualized AFFO per CBFI for the quarter and the year, divided by price (Ps. 12.20), reached 7.6% and 6.7%, respectively. The distribution for 4Q15 will be equivalent to the AFFO.


4Q15 vs 3Q15

Net Income 755,210 578,766 59,258 57,509 59,677 876.7%

(Income) expense from financial derivatives valuation

(349) (349) - - - 100.0%

Consolidated Net Income 754,861 578,417 59,258 57,509 59,677 876.1%

(Income) expense from properties measured at fair value

(528,695) (528,695) - - - 100.0%

Foreign Exchange (Gain) loss, Net 8,032 10,555 (1,384) 215 ( 1,354) -862.6%

Depreciation and Amortization 114 43 33 25 13 30.3%

Accrued Leasing Commissions 519 215 152 152 - 41.4%

Executive Compensation Plan based on CBFIs

25,882 12,493 10,708 2,681 - 16.7%

Straight line adjustment for leasing income

(995) 188 188 (1,371) - 0.0%

Income from Subsidiary (1,790) (841) (532) (417) - 58.1%

FFO 257,928 72,375 68,423 58,794 58,336 5.8%

Capital Expenditures* (6,764) (264) (2,500) (1,500) (2,500) -89.4%

Leasing Commissions (4,788) (1,646) - (3,142) - 100.0%

AFFO 246,376 70,465 65,923 54,152 55,836 6.9%

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*As part of the 4Q15 results, there are Ps. 2 million in expenses corresponding to Capital Expenditures, but classified as Operating Expenses under IFRS. In the appendix, the effect in 2015 results corresponding to Capital Expenditures was Ps. 2.8 million.

Distributions per CBFIs

On February 4, 2016 Fibra Mty distributed a total amount of Ps. 70.5 million corresponding to 4Q15, equivalent to Ps. 0.233 per CBFI.

2015 4Q15 3Q15 2Q15 1Q15

Total CBFIs Outstanding (thousands)

NA 303,092.224 303,092.224 303,092.224 296,293.528

CBFI Price (beginning of the period)

Ps. 12.2 Ps. 12.2 Ps. 12.2 Ps. 12.2 Ps. 12.2

Distributions (thousands of pesos)*

Ps. 246,376 Ps. 70,465 Ps. 65,923 Ps. 54,152 Ps. 55,836

Distributions per CBFI Ps. 0.818 Ps. 0.233 Ps. 0.218 Ps. 0.179 Ps. 0.188

Distribution Yield (Annualized)

6.7%

7.6% 7.1% 5.9% 6.2%

*Sum of the four quarters in 2015

Debt and Cash Equivalents

At the close of 4Q15, Fibra Mty had two bank loans as outlined below:

In thousands of pesos 4Q15 Currency Rate

Variable Rate as of

Dec 31 2015

Fixed Coverage

Rate 3Q15

Δ%

4Q15 vs 3Q15

Unsecured Loans

Working Capital Line 90,000 MXN TIIE + 3.0 6.3525% N/A 0 100%

Secured Loans

Bank Syndicate 667,582* USD Libor + 2.5 2.8600% 3.9870% 0 100%

TOTAL 757,582 0 100% *Equivalent to USD $38,500 thousand dollars, using a FX rate of Ps. 17.3398 as of December 31, 2015.

Fixed Rate 88% 4T15 USD-denominated 88%

Variable Rate 12% 1T16 MXN- denominated 12%

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Maturity 2016 2017 2018 2019 2020 Total

Principal 90,000 0 21,071 22,039 624,471 757,582

Percentage 12% 0% 3% 3% 82% 100%

The Ps. 90 million loan was signed on November 11, 2015 and proceeds were received on January

11, 2016. This loan was mainly used to pay for the acquisition of Monza 2. The loan is a revolving

facility, renewable annually.

The US$. 38.5 million loan corresponds to the first disposition of the syndicated loan signed on

December 15, 2015, which was mainly used to pay for the acquisition of the Prometeo building

and to pay the Ps. 90 million loan in advance. The variable rate of the loan was hedged with a

swap with the same maturity at 3.987% in U.S. dollars.

Loan-to-value was 15.43%, measured as per the Mexican Regulations Applicable to Issuers (“la

Circular Única de Emisoras”), which is significantly lower than the 50% loan-to-value, as

established in the applicable regulations.

Fibra Mty had Ps. 279 million in cash and cash equivalents, Ps. 170 million higher than at the close of 2014, mainly as a result of the following: Ps. 251 million corresponding to the overallotment; cash flows from operating activities of Ps. 258 million; Ps. 232 million derived from the VAT reimbursement, net from new acquisitions; and Ps. 758 million from bank loans. In addition, the use of cash corresponds mainly to payments of Ps. 1,126 million for the acquisitions of Casona, Catacha, Monza, Santiago, Monza 2 and Prometeo, as well as distributions to our CBFI holders for Ps. 188 million, among other minor cash inflows and expenses.

Recent Events

On October 12, 2015, Fibra Mty announced receipt of the Value Added Tax (VAT)

reimbursement corresponding to the acquisition of the Casona portfolio. The total amount

reimbursed was Ps. 31.6 million. These resources were allocated towards the acquisition

of properties that complement Fibra Mty’s current portfolio and that generate value for

our CBFI’s holders.

On November 13, 2015, Fibra Mty successfully concluded the acquisition of the “Monza 2” building, located in the city of Chihuahua, in the state of Chihuahua. The total GLA of the building is approximately 4,600 square meters, built on more than 4,100 square meters of land. At the time of its acquisition, this building was 100% occupied. This lease is peso-denominated, with a remaining term of 15 years. This acquisition represents a total investment of Ps. 76.9 million plus the corresponding VAT, as well as other taxes and acquisition expenses. The purchase price will be fully paid with cash.

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On November 19, 2015, Fibra Mty announced the 2 following acquisition projects:

o Providencia Portfolio: This portfolio consists of 8 commercial properties, with

approximately 82,545 square meters of GLA. All the properties are located in the

metropolitan area of Saltillo, Coahuila and have an average age of slightly more

than 3 years. This portfolio is 100% occupied, and the Company expects to

continue at that level upon completion of the transaction.

o Prometeo Building: This building comprises a Class-A office building with GLA of

approximately 8,135 square meters. It is located in the Valle Oriente corridor

within the metropolitan area of Monterrey, Nuevo Leon. This building is 11 years

old and is fully occupied, and the Company expects to continue at that level upon

completion of the transaction.

On December 15, 2015, Fibra Mty announced the entering into a loan agreement with Actinver, S.A., Institucion de Banca Multiple, Grupo Financiero Actinver, and affiliated entities, authorizing credit lines for an amount of up to Ps. 610 million, at a variable interest rate equal to TIIE (28 days) +3.5% for Ps. 520 million; and an interest rate of TIIE (28 days) + 3% for Ps. 90 million, with maturity of 12 and 6 months, respectively. The Trust will secure the credit lines with certain assets of its portfolio. As of December 31, 2015, only Ps. 90 million had been used to pay for the acquisition of Monza 2. The Ps. 90 million loan was fully paid on January 11, 2016.

In order to have sufficient resources to acquire new properties and to use in other general corporate purposes, on December 16, 2015 Fibra MTY announced the successful closing of a loan agreement to authorize a credit line at a variable rate, with a syndicate formed by Banamex (lead), HSBC, BBVA Bancomer and Scotiabank. The Trust will secure the loan with certain assets of its portfolio and collection rights on corresponding rents. The credit line is for an amount of up to US$100 million at a variable interest rate equal to LIBOR (1 month) +2.5% spread, with 5 year maturity, principal payments beginning on January 15, 2018 and monthly interest payments beginning on the date of the first use of the funds available from the credit line.

On December 22, 2015, Fibra Mty successfully concluded the acquisition of “Prometeo” building, located in Monterrey City, This building is fully occupied by 3 multinational companies from the service and transportation sectors. All the contracts are U.S. dollar-denominated. As such, in addition to the rent, the tenant will cover operating expenses, while the landlord is responsible for the payment of insurance and property taxes. The total price of this transaction reached approximately Ps. 454.7 million, plus the corresponding VAT, as well as other taxes and acquisition expenses. The purchase price will be fully paid with cash with resources stemming from the syndicated loan announced by the Company on December 16, 2015.

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On January 22, 2016, Fibra Mty announced its 2016 financial guidance highlights,

summarized as follows:

o Increase capital via the issuance of up to 195 million additional CBFI’s within the next 12 months following the approval of the Shareholders’ Meeting that took place on January 19, 2016.

o To conclude in the shortest period of time the potential transactions under negotiation as well as the operations previously announced and pending payment for a total amount of approximately Ps. 3, 460 million.

o Fibra Mty expects a distribution per CBFI between Ps. 1.07 and Ps. 1.13 per quarter at an annualized run rate.

o Once the aforementioned transactions and capital increase take place, Fibra Mty will update its Revenue, NOI, FFO, AFFO and distribution per CBFI guidance accordingly.

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4Q15 Conference Call

Fibra Mty (BMV: FMTY14)

cordially invites you to participate in its

Fourth Quarter 2015 Earnings Conference Call

Date: Tuesday, February 23, 2016

Time: 12:00 p.m. Eastern Time

11:00 a.m. Mexico City Time

Presenting for Fibra Mty:

Jorge Avalos Carpinteyro, Chief Executive Officer

Javier Llaca García, Chief Operating Officer

Jaime Martínez Trigueros, Chief Financial Officer

***

To access the Conference Call, please dial:

1-800-853-3893 (U.S. participants)

1-334-323-7224 (International participants)

Conference ID Number: 653411

To obtain the replay, please call:

1-877-919-4059 (U.S. participants)

1-334-323-0140 (International participants)

ID Number: 38601202

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About Fibra Mty

Fibra Mty is a real estate investment trust (“FIBRA”) that initiated operations on December 11,

2014 identified by the number F/2157 (“Trust 2157”), and also as “Fibra Mty” or “FMTY”. Fibra

Mty’s strategy is based mainly on the acquisition, administration, development and operation of

corporate properties in Mexico, predominantly office properties. Fibra Mty’s portfolio consists of 7

offices, 9 industrial properties and 4 commercial properties. Fibra Mty is a FIBRA qualified as a

transparent entity under Mexican Income Tax laws; therefore, all revenues derived from Fibra

Mty’s operation are attributable to the holders of its CBFIs, given that Trust 2157 is not subject to

Income Tax in Mexico. In order to maintain FIBRA status articles 187 and 188 of Mexican Income

Tax Law establish that FIBRA such as Trust 2157 must distribute annually at least 95% of their net

income to holders of CBFIs and invest at least 70% of their assets in real estate rental properties,

among other requirements. Fibra Mty is internally-managed by Administrador Fibra Mty, S.C.,

making Fibra Mty the first investment vehicle of its kinds within the FIBRAS sector in Mexico,

supported by an innovative corporate governance structure, aligned with investor interests,

generating economies of scale and taking advantage of the opportunities offered by the real

estate market.

Note on Forward-Looking Statements

This press release may contain forward-looking statements or guidance related to Fibra Mty which includes estimates or considerations about the Company’s operations, business and future events. Statements about future events may include, without limitation, any statement that may predict, forecast, indicate or imply future results, operations or achievements, and may include words such as “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the Company. Such statements reflect the current views of management and are subject to a number of risks and uncertainties and results may be materially different from the expressed in this report. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

23


Financial Statements

Consolidated Statements of Financial Position - Unaudited As of December 31, 2015 and 2014

Amounts expressed in thousands of Mexican Pesos ($)

December 31, 2015 2014 Assets Current Assets:

Cash and cash equivalents $ 278,632 $ 108,318 Accounts receivable 5,763 3,317 Recoverable taxes 84,513 314,738 Other current assets 4,020 252,125

Total current assets 372,928 678,498 Accounts receivable from related parties - 6,059 Office furniture & equipment 700 231 Intangible assets 1,372 177 Investment properties 4,537,061 2,795,750 Acquisition prepayments 1,931 - Derivative financial instruments 349 - Other assets 4,393 211

Non-current assets 4,545,806 2,802,428 Total assets 4,918,734 3,480,926

Liabilities and Equity Current Liabilities:

Short-term bank loans 89,272 - Interest payable 1,295 - Accounts payable and accumulated expenses 6,680 3,013 Various creditors 16,349 7,394 Taxes payable 9,726 560 Tenant deposits 2,474 292

Total Current Liabilities 125,796 11,259 Long-term bank loans 637,032 - Deferred income tax 930 - Tenant deposits 40,768 25,830

Total liabilities 804,526 37,089 Equity:

Contributed equity 3,527,537 3,424,821 Accumulated results 586,322 19,016 Other comprehensive income 349 -

Total Equity 4,114,208 3,443,837

Total liabilities and equity 4,918,734 3,480,926

24


Consolidated Statement of Comprehensive Income – Unaudited For the Periods Between January 1, 2015 and December 31, 2015;

and from July 25, 2014 (date of incorporation) to December 31, 2014

Amounts expressed in thousands of Mexican pesos ($)

2015 2014 Total Revenues 352,482 15,943 Property maintenance and operating expenses 33,493 1,604 Property management fee 8,490 507 Property tax 3,819 118 Property insurance 1,641 111 Management fees 32,793 1,281 Trustee fees and general expenses 17,219 747 CBFIs Executive compensation plan 25,882 - Gain on investment properties measured at fair value 528,695 7,162 Interest income, net 7,602 100 Interest expense, net 2,164 - Foreign exchange (loss) gain, net (7,487) 210 Income before income taxes 755,791 19,047 Income taxes 930 31 Consolidated Net Income 754,861 19,016 Other components comprehensive net income: Fair value adjustment on derivative financial instruments 349 - Total other components comprehensive net income 349 - Consolidated Comprehensive Income 755,210 19,016

25


Consolidated Statements of Changes in Equity - Unaudited For the Periods Between January 1, 2015 and December 31, 2015;

and from July 25, 2014 (date of incorporation) to December 31, 2014

Amounts expressed in thousands of Mexican pesos ($)

Accumulated Other Total Equity Results comprehensive Equity Income Balances at July, 25 2014 $ - $ - $ - $ - Contributed Equity, net issuance costs 3,424,821 - - 3,424,821 Consolidated comprehensive net income - 19,016 - 19,016 Balances at December 31, 2014 $ 3,424,821 $ 19,016 $ - $ 3,443,837 Contributed Equity, Casona acquisition 86,343 - - 86,343 Distributions to CBFI holders - (187,555) - (187,555) CBFI-Executive compensation plan, net 16,823 - - 16,823 Other changes in equity (450) - - (450) Comprehensive Income: Net consolidated income - 754,861 - 754,861 Fair value adjustment on derivative financial instruments - - 349 349 Total Comprehensive Income - 754,861 349 755,210

Balances at December 31, 2015 3,527,537 586,322 349 4,114,208

26


Consolidated Statement of Cash Flow - Unaudited For the Periods Between January 1, 2015 and December 31, 2015;

and from July 25, 2014 (date of incorporation) to December 31, 2014 Amounts expressed in thousands of Mexican pesos ($)

2015

2014

Cash flows from operating activities: Income before income taxes 755,791 $19,047

Non-cash accounts:

Provisions 1,470 - Straight line adjustment for leasing income (995) (385) Leasing commissions 519 - Employee benefits 5,334 CBFIs Executive compensation plan 25,882 Depreciation and amortization 114 - Interest income, net (7,602) (100) Interest expense, net 2,164 - Unrealized foreign exchange gain, net 8,032 (85) Fair value adjustment on investment properties (528,695) (7,162)

Cash flows from operating activities before changes in operating items 262,014

11,315

Accounts receivable, net (2,361) (3,132) Recoverable taxes, net 231,787 (313,457)

Other Assets 244,399

(251,951) Accounts receivable from related parties (1,667) 3,011 Accounts payable (1,527) 1,527 Tenant deposits 18,760 19,965

Cash generated from operations 751,405 (532,722) Income tax paid (31) -

Cash generated by operating activities 751,374

(532,722)

Cash flows from investing activities:

Acquisition of investment properties (1,126,273) (1,244,634)

Prepayments for the acquisition of investment properties (1,931) -

Acquisition of furniture and office equipment (559) (231)

Acquisition of intangible assets - (177) Interest received 7,602 100

Cash used in investing activities (1,121,161) (1,244,942)

27


Cash flows from financing activities:

Bank loans origination 729,507 -

Interest payable (610) -

Distributions to CBFI holders (187,555) -

Resources obtained from CBFI issuance - 2,012,501

CBFI repurchase

(931)

Issuance costs paid (5,565) (125,588)

Net cash used in financing activities 535,777 1,885,982

Increase in cash and cash equivalents 165,990 108,318

Initial balance of cash and cash equivalent 108,318

Effects of exchange rate on cash and cash equivalents held in foreign currencies 4,324 -

Ending balance of cash and cash equivalents 278,632 $108,318

***

Documents

Fourth Quarter 2015 Earnings Release - investor cloudcdn.investorcloud.net/fibramty/Informacion... · 2015 4Q15 3Q15 2Q15 1Q15 Number of New Properties 13 2 6 5 - Acquisition Price