THIRD QUARTER 2016 EARNINGS REPORT - Amazon S3 · 2 Financial • 3Q16 rental revenues reached US$32.9 million, a 3.5% or US$1.1 million increase compared to 3Q15. • 3Q16 NOI was

Contacts in Mexico City: Contacts in New York: Francisco Martinez/ Angel Bernal Maria Barona / Juan Carlos Gomez Stolk Investor Relations Officer / Chief Financial Officer i-advize Corporate Communications, Inc. Tel: +52 (55) 5279-8107 / +52 (55) 5279-8109 Tel: +1 (212) 406-3691 / (646) 462-4517 E-mail: [email protected] / [email protected] E-mail: [email protected] / / [email protected]

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THIRDQUARTER2016EARNINGSREPORT

MexicoCity,October20,2016–Terrafina®(“TERRA”)(BMV:TERRA13),aleadingMexicanindustrialrealestateinvestmenttrust(“FIBRA”),externallyadvisedbyPGIMRealEstateanddedicatedtotheacquisition,development,leasingandmanagementofindustrialrealestatepropertiesinMexico,todayannounceditsthirdquarter2016(3Q16)earningsresults.ThefiguresinthisreporthavebeenpreparedinaccordancewithInternationalFinancialReportingStandards(“IFRS”).Figurespresentedinthisreportare presented inmillions ofMexican pesos andmillions of U.S. dollars, unless otherwise stated. Additionally, figuresmay vary due to rounding.Terrafina’sfinancialresultsincludedinthisreportareunaudited.Asaresult,thementionedfiguresinthisfinancialreportarepreliminaryfiguresandcouldbeadjustedinthefuture.Thisdocumentmayincludeforward-lookingstatementsthatmayimplyrisksanduncertainties.Termssuchas"estimate","project","plan","believe","expect", "anticipate", "intend", and other similar expressions could be construed as previsions or estimates. Terrafina warns readers thatdeclarationsandestimatesmentioned in thisdocument,or realizedbyTerrafina’smanagement implyrisksanduncertainties thatcouldchange infunctionofvariousfactorsthatareoutofTerrafina’scontrol.FutureexpectationsreflectTerrafina’sjudgmentatthedateofthisdocument.Terrafinareservestherightorobligationtoupdatetheinformationcontainedinthisdocumentorderivedfromthisdocument.Pastorpresentperformanceisnotanindicatortoanticipatefutureperformance.

FinancialandOperatingHighlightsasofSeptember30,2016

Operating

• AsofSeptember30,2016,theoccupancyratewas92.8%,a70basispointdecreasecomparedtothethirdquarterof2015(3Q15).Additionally,consideringsignedlettersofintent(LOI),occupancyfor3Q16was94.8%.

• Annualizedaverageleasingratepersquarefootat3Q16wasUS$4.89,aUS$0.01decreasecomparedto3Q15.

• For3Q16,Terrafinareportedatotalof30.1millionsquarefeet (msf)ofGrossLeasableArea(GLA)comprisedof209propertiesand211tenants.

• Total leasingactivityfor3Q16reached1.3msf,ofwhich18.1%correspondedtonewleases,60.1%toleaserenewalsand21.8%toearlyrenewals.LeasingactivitywasmainlyconcentratedintheCuautitlanIzcalli,CiudadJuarez,Reynosa,Chihuahua,Queretaro,SanLuisPotosi,Monterrey,GuanajuatoandGuadalajaramarkets.

• TotaldevelopmentsasofSeptember30,2016reached432,000squarefeetofGLA,whichareexpectedtocontributeUS$2.2milliontoNetOperatingIncome(NOI)forthe2017period.Theexpectedreturnrateforthedevelopmentsthattookplaceduring3Q16is9.9%*.

*Expectedreturnisnotguaranteed.Finalresultsmayvary.

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Financial• 3Q16rentalrevenuesreachedUS$32.9million,a3.5%orUS$1.1millionincreasecomparedto3Q15.

• 3Q16NOIwasUS$33.9million,a10.9%orUS$3.3million increasecomparedto3Q15.Moreover,the impliedcap

ratewas9.4%,consideringtheaveragesharepriceofUS$1.65(Ps.30.84)for3Q16andanexpectedNOIofUS$133millionfor2016.

• TheNOImarginfor3Q16reached94.3%,a278basispointincreasecomparedto3Q15.• 3Q16EBITDAreachedUS$30.5million,anincreaseof12.9%orUS$3.5millioncomparedto3Q15.

• TheEBITDAmarginfor3Q16was84.8%,a399basispointincreasecomparedto3Q15.• 3Q16adjustedfundsforoperations(AFFO)reachedUS$18.5million,aUS$1.0millionincreasecomparedto3Q15.

• TheAFFOmarginfor3Q16was52.9%,a92basispointincreasecomparedto3Q15.• 3Q16 distributions totaledUS$18.5million.Asa resultof3Q16operations,Terrafinawill distribute Ps.0.5703 per

CBFI(US$0.0305perCBFI)asdistributionscorrespondingtotheJuly1toSeptember30,2016period.

• The annualized distributionwasUS$0.1219; considering the average share CBFI price for the quarter of US$1.65(Ps.30.84),Terrafina’sdividendyieldforthequarterwas7.4%.

FiguresindollarsintheIncomeStatementwereconvertedintopesosusingtheaverageexchangeratefortheperiod;fortheBalanceSheettheexchangerateforthecloseoftheperiodwasused.(1)Millionsofsquarefeet.(2)IncludesexpansionsandBuilt-to-Suits(BTS).(3)Occupancyattheendoftheperiod.(4)Indicatestheleaserenewalrateof the leases, includesearly renewals. (5)Excludingaccrued incomeas it isanon-cash item (6)Earningsbefore interest, taxes,depreciationandamortization. (7)CertificadosBursátilesFiduciariosInmobiliarios-RealEstateInvestmentCertificates.FiguresindollarsintheBalanceSheetwereconvertedusingtheclosingexchangerateoftheperiod.(*)Revenuesandexpenseshavebeenadjustedforthecalculationoftheabovementionedmetrics.Pleaserefertothe“3Q16FinancialPerformance"and"Appendices"sectionavailableinthisdocument.Source:PGIMRealEstate–AssetManagement–FundAccounting

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OperatingandFinancialHighlights

Operating Sep16 Sep15 Var. NumberofDevelopedProperties 209 196 13 GrossLeasableArea(GLA)(msf)

1 30.1 28.3 1.8 NewDevelopments2(msf) 0.43 0.58 -0.15 LandReserves(msf) 6.40 5.74 0.66 OccupancyRate3 92.8% 93.5% -70bps Avg.LeasingRent/SquareFoot(dollars) 4.89 4.90 -0.01 WeightedAverageRemainingLeaseTerm(years) 3.49 3.58 -0.09

RenewalRate4 85.5% 90.7% -518bps

QuarterlyFinancials 3Q16 3Q15 Var. 3Q16 3Q15 Var.

fx 18.7204 16.3886

(millionsofpesosunlessotherwisestated) (millionsofdollarsunlessotherwisestated)

RentalRevenues5 615.5 521.2 18.1%

32.9 31.8 3.5%OtherOperatingIncome 40.5 30.8 31.6% 2.2 1.9 17.2%NetRevenues 663.5 560.1 18.5% 35.5 34.1 3.9%NetOperatingIncome(NOI)* 634.8 501.8 26.5% 33.9 30.6 10.9%NOIMargin 94.3% 91.5% 278bps 94.3% 91.5% 278bpsEBITDA6* 570.7 442.6 28.9% 30.5 27.0 12.9%EBITDAMargin 84.8% 80.8% 399bps

84.8% 80.8% 399bps

FundsfromOperations(FFO)* 403.7 350.5 15.2%

21.6 21.4 0.9%FFOMargin 60.0% 64.0% -397bps 60.0% 64.0% -397bpsAdjustedFundsfromOperations(AFFO)* 346.4 286.2 21.0% 18.5 17.5 5.8%AFFOMargin 52.9% 52.0% 92bps 52.9% 52.0% 92bpsDistributions 346.4 286.2 21.0% 18.5 17.5 5.8%DistributionsperCBFI7 0.5703 0.4713 21.0% 0.0305 0.0288 5.8%

BalanceSheet Sep16 Jun16 Var. Sep16 Jun16 Var.

fx 19.5002 18.9113

(millionsofpesosunlessotherwisestated) (millionsofdollarsunlessotherwisestated)

Cash&CashEquivalents 4,838.8 4,661.8 3.8% 248.1 246.5 0.7%InvestmentProperties 32,316.6 31,423.9 2.8% 1,657.2 1,661.6 -0.3%LandReserves 955.7 924.4 3.4% 49.0 48.9 0.3%TotalDebt 14,146.4 13,616.1 3.9% 725.5 720.0 0.8%NetDebt 9,307.6 8,954.4 3.9% 477.3 473.5 0.8%

F

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CommentbyAlbertoChretin,ChiefExecutiveOfficerandChairmanoftheBoardInthethirdquarterof2016,Terrafinacontinuedtopostsolidoperatingandfinancialresultsthatwerealignedwithourgoalsfortheyear.Intermsofoperatingresults,quarterlyleasingactivityreached1.3millionsquarefeet,concentratedin the markets of Cuautitlan Izcalli, Ciudad Juarez, Reynosa, Chihuahua, Queretaro, San Luis Potosi, Monterrey,Guanajuato and Guadalajara. In total, 18.1%were new contracts, 60.1%were lease renewals and 21.8%were earlyrenewals.Moreover,theaverageannualleasingrentremainedstableatUS$4.89persquarefoot,reachingUS$4.76persquare foot in theNorthern region, US$5.00 per square foot in the Bajio region andUS$5.13 per square foot in theCentralregion.The occupancy rate reached 92.8%, a 70 basis point decrease compared to the third quarter of 2015. Additionally,includingsignedlettersofintent,occupancyforthequarterwas94.8%.Brokendownbyregion,occupancywas95.1%intheNorthernregion,86.4%intheBajioregionand94.6%intheCentralregion.Lastly,andwithrespecttothemainfinancialindicatorsforthethirdquarter,rentalrevenuesreachedUS$32.9million,NetOperating Income reachedUS$33.9millionandOperatingMargin reached94.3%–generatingUS$18.5million inAdjustedOperating Funds. Distribution per CBFI reached Ps. 0.5703, orUS$0.0305,which represented an annualizeddistributionofPs.2.28perCBFI,orUS$0.1219perCBFIanda7.4%dividendyield,consideringtheaverageCBFIpriceforthethirdquarterof2016.

AlbertoChretinChiefExecutiveOfficerandChairmanoftheBoard

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OperatingHighlights

HighlightsbyRegion

(asofSeptember30,2016) North Bajio Central Total

#Buildings 133 47 29 209

#Tenants 131 45 35 211

GLA(msf) 16.5 7.5 6.1 30.1

NewDevelopments1(msf) 0.3 0.2 0.0 0.4

LandReserves(msf) 3.0 0.1 3.3 6.4

OccupancyRate 95.1% 86.4% 94.6% 92.8%

AverageLeasingRent/SquareFoot(dollars) 4.76 5.00 5.13 4.89

AnnualizedRentalBase% 54.5% 23.8% 21.7% 100.0%

(1)IncludesexpansionsandBuilt-to-Suit(BTS).Source:PGIMRealEstate-AssetManagement

LeasingActivity 3Q16 3Q15 Var.

OperatingPortfolio(msf): Renewals 0.8 0.7 0.1

EarlyRenewals 0.3 0.6 -0.3

NewLeases 0.2 0.4 -0.1

TotalSquareFeetofLeasesSigned 1.3 1.6 -0.4Source:PGIMRealEstate-AssetManagement

NORTH - BajaCalifornia- Sonora- Chihuahua- Coahuila- NuevoLeón- Tamaulipas- Durango

BAJIO - SanLuisPotosí- Jalisco- Aguascalientes- Guanajuato- Querétaro

CENTRAL - EstadodeMéxico- DistritoFederal- Puebla- Tabasco

Terrafina’soperations3Q16.

29.9%

70.1%

ComposieonbyAssetTypeasof3Q16

(asa%oftotalGLA)

Distribulon Manufacturing

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OperatingHighlights(continued)OccupancyandRentsbyRegion MaturitiesandRenewalsbyRegion

0

Consolidated

(AsofSeptember30,2016)

OccupancyRate

Avg.LeasingRent/SquareFoot(dollars) (AsofSeptember30,2016)

Maturities(numberofcontracts)

%ofTotalMaturities

Renewals(numberofcontracts)

%ofTotal

RenewalsNorth 95.1% 4.76 North 14 63.6% 12 85.7%BajaCalifornia 95.5% 4.72 BajaCalifornia 0 0.0% 0 0.0%Tijuana 95.5% 4.72 Tijuana 0 0.0% 0 0.0%

Sonora 86.3% 4.19 Sonora 0 0.0% 0 0.0%Hermosillo 86.3% 4.19 Hermosillo 0 0.0% 0 0.0%

Chihuahua 95.6% 4.92 Chihuahua 12 54.5% 10 83.3%Chihuahua 95.1% 5.45 Chihuahua 10 45.5% 8 80.0%CiudadJuarez 95.7% 4.50 CiudadJuarez 2 9.1% 2 100.0%Delicias 100.0% 5.59 Delicias 0 0.0% 0 0.0%GomezFarias 100.0% 3.34 GomezFarias 0 0.0% 0 0.0%Camargo 100.0% 3.78 Camargo 0 0.0% 0 0.0%CasasGrandes 100.0% 4.09 CasasGrandes 0 0.0% 0 0.0%

Coahuila 96.0% 4.41 Coahuila 0 0.0% 0 0.0%CiudadAcuña 100.0% 5.99 CiudadAcuña 0 0.0% 0 0.0%Monclova 100.0% 5.26 Monclova 0 0.0% 0 0.0%RamosArizpe 96.6% 4.06 RamosArizpe 0 0.0% 0 0.0%Saltillo 91.0% 5.30 Saltillo 0 0.0% 0 0.0%SanPedrodelasColinas 89.3% 1.00 SanPedrodelasColinas 0 0.0% 0 0.0%Torreon 100.0% 4.10 Torreon 0 0.0% 0 0.0%

NuevoLeon 90.0% 5.06 NuevoLeon 1 4.5% 1 100.0%Apodaca 86.8% 5.87 Apodaca 0 0.0% 0 0.0%Monterrey 91.2% 4.77 Monterrey 1 4.5% 1 100.0%

Tamaulipas 88.6% 4.45 Tamaulipas 1 0.0% 1 100.0%Reynosa 88.6% 4.45 Reynosa 1 0.0% 1 100.0%

Durango 100.0% 3.89 Durango 0 0.0% 0 0.0%Durango 100.0% 4.04 Durango 0 0.0% 0 0.0%GomezPalacio 100.0% 3.05 GomezPalacio 0 0.0% 0 0.0%

Bajio 86.4% 5.00 Bajio 4 18.2% 3 75.0%SanLuisPotosi 85.1% 4.87 SanLuisPotosi 1 0.0% 0 0.0%SanLuisPotosi 85.1% 4.87 SanLuisPotosi 1 0.0% 0 0.0%

Jalisco 100.0% 5.51 Jalisco 1 4.5% 1 100.0%Guadalajara 100.0% 5.51 Guadalajara 1 4.5% 1 100.0%

Aguascalientes 100.0% 4.84 Aguascalientes 0 0.0% 0 0.0%Aguascalientes 100.0% 4.84 Aguascalientes 0 0.0% 0 0.0%

Guanajuato 95.9% 4.92 Guanajuato 1 0.0% 1 100.0%Celaya 100.0% 5.07 Celaya 0 0.0% 0 0.0%Irapuato 86.5% 5.59 Irapuato 0 0.0% 0 0.0%Silao 100.0% 4.56 Silao 1 0.0% 1 100.0%

Queretaro 70.4% 4.87 Queretaro 1 4.5% 1 100.0%Queretaro 70.4% 4.87 Queretaro 1 4.5% 1 100.0%

Central 94.6% 5.13 Central 4 18.2% 3 75.0%EstadodeMexico 93.7% 5.38 EstadodeMexico 4 18.2% 3 75.0%CuautitlanIzcalli 100.0% 5.37 CuautitlanIzcalli 4 0.0% 3 75.0%Toluca 88.8% 5.40 Toluca 0 0.0% 0 0.0%

DistritoFederal 100.0% 8.80 DistritoFederal 0 0.0% 0 100.0%Azcapotzalco 100.0% 8.80 Azcapotzalco 0 0.0% 0 100.0%

Puebla 100.0% 3.07 Puebla 0 0.0% 0 0.0%Puebla 100.0% 3.07 Puebla 0 0.0% 0 0.0%

Tabasco 100.0% 3.72 Tabasco 0 0.0% 0 0.0%Villahermosa 100.0% 3.72 Villahermosa 0 0.0% 0 0.0%

Total 92.8% 4.89 Total 22 100.0% 18 81.8%Source:PGIMRealEstate-AssetManagement

Source:PGIMRealEstate-AssetManagement

*Overthenumberofmaturedleasesinthequarter

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3Q16OperationalPerformanceCompositionbyGeographicalDiversificationThegeographicaldiversificationofTerrafina’sproperties through3Q16(basedonGLApersquare foot)wasas follows:theNorthernregionofMexicorepresented54.7%oftheGLA,whiletheBajioandCentralregionsrepresented25.0%and20.3%oftheGLA,respectively.

GeographicDistributionbyRegionandState

3Q16 asa%ofTotal

GLA3Q16 3Q15 asa%ofTotalGLA3Q15

North 16.47 54.7% 15.79 55.9%BajaCalifornia 1.13 3.7% 1.13 4.0%Tijuana 1.13 3.7% 1.13 4.0%

Sonora 0.28 0.9% 0.28 1.0%Hermosillo 0.28 0.9% 0.28 1.0%

Chihuahua 9.61 31.9% 9.41 33.3%Chihuahua 4.13 13.7% 4.13 14.6%CiudadJuarez 5.00 16.6% 4.80 17.0%Delicias 0.29 1.0% 0.29 1.0%GomezFarias 0.08 0.3% 0.08 0.3%Camargo 0.02 0.1% 0.02 0.1%CasasGrandes 0.09 0.3% 0.09 0.3%

Coahuila 3.49 11.6% 3.38 12.0%CiudadAcuña 0.24 0.8% 0.24 0.9%Monclova 0.34 1.1% 0.34 1.2%RamosArizpe 2.00 6.6% 1.89 6.7%Saltillo 0.62 2.1% 0.62 2.2%SanPedrodelasColinas 0.15 0.5% 0.15 0.5%Torreon 0.13 0.4% 0.13 0.5%

NuevoLeon 1.16 3.9% 0.77 2.7%Apodaca 0.32 1.1% 0.00 0.0%CienegadeFlores 0.00 0.0% 0.00 0.0%Monterrey 0.84 2.8% 0.77 2.7%

Tamaulipas 0.34 1.1% 0.34 1.2%Reynosa 0.34 1.1% 0.34 1.2%

Durango 0.46 1.5% 0.46 1.6%Durango 0.40 1.3% 0.40 1.4%GomezPalacio 0.07 0.2% 0.07 0.2%

Bajio 7.55 25.0% 6.45 22.9%SanLuisPotosi 2.75 9.1% 1.89 6.7%SanLuisPotosi 2.75 9.1% 1.89 6.7%

Jalisco 1.29 4.3% 1.29 4.6%Guadalajara 1.29 4.3% 1.29 4.6%

Aguascalientes 0.75 2.5% 0.75 2.6%Aguascalientes 0.75 2.5% 0.75 2.6%

Guanajuato 0.78 2.6% 0.54 1.9%Celaya 0.12 0.4% 0.12 0.4%Irapuato 0.24 0.8% 0.00 0.0%Silao 0.42 1.4% 0.42 1.5%

Queretaro 1.98 6.6% 1.98 7.0%Queretaro 1.98 6.6% 1.98 7.0%

Central 6.12 20.3% 6.00 21.2%EstadodeMexico 5.26 17.5% 5.14 18.2%CuautitlanIzcalli 4.12 13.7% 4.00 14.2%Huehuetoca 0.23 0.8% 0.23 0.8%Toluca 0.91 3.0% 0.91 3.2%

DistritoFederal 0.02 0.1% 0.02 0.1%Azcapotzalco 0.02 0.1% 0.02 0.1%

Puebla 0.18 0.6% 0.18 0.7%Puebla 0.18 0.6% 0.18 0.7%

Tabasco 0.65 2.2% 0.65 2.3%Tabasco 0.65 2.2% 0.65 2.3%

Total 30.14 100.0% 28.24 100.0%TotalGrossLeasableArea/millionsquarefeet.Potentialleasableareaoflandreservesarenotincluded.


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CompositionbyAssetTypeAttheendof3Q16,29.9%ofTerrafina’sportfolioconsistedofpropertiesdedicatedtodistributionandlogisticsactivitieswhile70.1%werededicatedtomanufacturingactivities.

CompositionbySectorAsofSeptember30,2016,tenantdiversificationbyindustrialsectorwasasfollows:

IndustrialSectorDiversification

3Q16 3Q15 Var.

Automotive 30.5% 28.4% 206bps

Industrialproperties 19.3% 20.5% -120bps

Consumergoods 18.6% 17.8% 87bps

LogisticsandTrade 9.9% 10.5% -55bps

Aviation 9.6% 10.0% -33bps

Non-durableconsumergoods 5.7% 6.6% -87bps

Electronics 6.4% 6.3% 3bps

Total 100.0% 100.0%


CompositionbyAssetType

3Q16 3Q15 Var.

Distribution 29.9% 29.5% 45bps

Manufacturing 70.1% 70.5% -45bpsSource:PGIMRealEstate-PortfolioManagement

29.9%

70.1%

ComposieonbyAssetTypeasof3Q16

(asa%oftotalGLA)

Distribulon Manufacturing

30.5%

19.3%18.6%

9.9%

9.6%5.7%6.4%

DiversificaeonbySectorasof3Q16(asa%ofleasedGLA)

AutomolveIndustrialproperlesConsumergoodsLogislcsandTradeAvialonNon-durableconsumergoodsElectronics

9

CompositionofTopClientsTerrafinahasawidelydiversifiedtenantbasethatleaseindustrialpropertiesthroughoutseveralofMexico’smaincities.For3Q16,Terrafina’stopclient,top10clientsandtop20clients,represented4.5%,22.5%and34.0%oftotalrevenues,respectively.

TopClients

(asofSeptember30,2016) LeasedSquareFeet(millions)

%TotalGLA %TotalRevenues

TopClient 1.24 4.4% 4.5%

Top10Clients 6.19 22.1% 22.5%

Top20Clients 9.57 34.2% 34.0%Source:PGIMRealEstate-AssetManagement

OccupancyTerrafina’s3Q16occupancyratewas92.8%,a70basispointdecreasecomparedto3Q15.Additionally,includingsignedLOIsforthequarter,theoccupancyratewas94.8%.It is importanttonotethatoccupancyrateindicatorspresentedinthisreportreflectonlythequarterlyclosingrate.For3Q16,Terrafina’s leasingactivityreached1.3msf,ofwhich18.1%correspondedtonewleasingcontracts(includingexpansions),60.1%forcontractrenewalsand21.8%forearlyrenewals.

LeasingactivitymainlytookplaceintheCuautitlanIzcalli,CiudadJuarez,Reynosa,Chihuahua,Queretaro,SanLuisPotosi,Monterrey, Guanajuato and Guadalajara markets. In addition to this leasing activity, Terrafina signed an additional587,000squarefeetinLOIs.

LeaseMaturitiesTerrafinahad211tenantsunderleasingcontractsattheendof3Q16.Theleasingcharacteristicsofthesecontractshavean average maturity of three to five years for logistics and distribution properties and of five to seven years formanufacturingproperties.Annualaveragematurities(asapercentageofannualbaserents)remainatlevelsofbetween3%to21%forthenextfiveyears.

92.8%

5.2%1.9%

Occupancyasof3Q16(as%ofTotalGLA)

LeasedGLAVacantGLASignedLeoersofIntent

3Q16 3Q15 Var.

LeasedGLA 92.8% 93.5% -70bps

VacantGLA 5.2% 6.0% -73bps

SignedLettersofIntent 1.9% 0.6% 139bps

Total 100.0% 100.0% Source:PGIMRealEstate-AssetManagement

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ThefollowingtablebreaksdownTerrafina’sleasingmaturityschedulefortheupcomingyears:

Annual

BaseRent(millionsofdollars)

%ofTotalOccupiedSq.Ft(millions) %ofTotal

2016 3.6 2.6% 0.85 3.0%2017 17.9 13.1% 3.75 13.4%2018 19.6 14.3% 3.98 14.2%2019 26.7 19.5% 5.62 20.1%2020 29.0 21.2% 5.76 20.6%Thereafter 40.0 29.3% 8.01 28.6%Source:PGIMRealEstate–AssetManagement

CapitalDeploymentNewDevelopmentsAsofSeptember30,2016,Terrafinahasdeveloped432,000square feet.Thesenewdevelopmentsweredistributedasfollows:63.1%inthenorthernregionand36.9%intheBajioregion.These new developments will contribute US$2.2 million to the 2017 NOI, with a 9.9% estimated development yield,consideringatotalexpectedinvestmentofUS$22.2million.

((1)NetOperatingIncomeforthenexttwelvemonths.(2)ProformaNOIdividedbythetotalexpectedinvestment.Proformafiguresarenotaguaranteeoffutureresults.(3)Beforefeesandtaxes.Source:PGIMRealEstate–AssetManagement

January-September2016

SquareFeet(millions)

TotalExpectedInvestment

(millionsofpesos)

TotalExpected

Investment3(millionsofdollars)

CostperSquareFeet

(dollars)

%PayingRentbyEndofthePeriod

North 0.27 263.1 13.6 49.76 0.0%

Bajio 0.16 167.7 8.6 54.31 0.0%

Central 0.00 0.0 0.0 0.00 0.0%

Total 0.43 430.8 22.2 51.44 0.0%

ProformaNOI1(millionsofdollars) 2.2

EstimatedStabilizedYield2 9.9%

ProjectsUnderDevelopment 3Q16 3Q15

DevelopedProperties 99.1% 97.8%

PropertiesUnderDevelopment 0.9% 2.2%

Total 100.0% 100.0%

Source:PGIMRealEstate-PortfolioManagement

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CapitalExpenditures(CAPEX)Terrafina’s CAPEX is classified as those recurring expenses that took place based on upcoming leasingmaturities andpropertyimprovements.Themaingoaloftheseexpensesistherenewalofleasingcontractsaswellastheimprovementof property conditions taking into account tenant requirements. Terrafina expects to apply CAPEX towards vacantpropertiesaswellastowardsthedevelopmentofnewGLAbymeansofexpansionsand/ornewdevelopments.

Additionally,itisimportanttoconsiderthatCAPEXintendedforexpansionsandnewdevelopmentsarenotfinancedwithTerrafina’soperatingcashflowandthereforedonotpassthroughtheincomestatement.

Capitalexpendituresaccountsarecomprisedasfollows:1) TenantimprovementsresourcesaswellasrecurringmaintenanceCAPEX.2) Brokerandadministratorfees.3) CAPEXfornewdevelopments,whichduetotheirnature,aregenerallycapitalized.In3Q16,Terrafina’s totalCAPEX investmentwasUS$7.6million.CAPEXbreakdown for3Q16 is shown in the followingtable:

3Q16 3Q16

(millionsofpesos)

(millionsofdollars)

TenantImprovements&RecurringCAPEX 41.5 2.2LeasingCommissions 20.4 1.1DevelopmentCAPEX1 80.2 4.3

TotalCapitalExpenditures 142.1 7.6MaintenanceexpensesforvacantpropertiesareincludedintheTenantImprovements&RecurringCAPEXfigures.(1)CAPEXforexpansions/newdevelopments.

Source:PGIMRealEstate–AssetManagement

LandReservesTerrafina’slandreserveasofSeptember30,2016wascomprisedof11landreserveproperties,equivalentto6.4msfofpotentialGLAforthedevelopmentoffutureindustrialproperties.AsofSeptember30,2016,Terrafina’slandreservesweredistributedasfollows:

AsofSeptember30,2016

SquareFeet

(millions)

LandatCost

(millionsofpesos)

LandatCost

(millionsofdollars)

AppraisalValue

(millionsofpesos)

MarketValue

(millionsofdollars)

North 3.0 563.0 28.9 518.7 26.6Bajio 0.1 13.9 0.7 12.5 0.6Central 3.3 724.3 37.1 424.5 21.8

TotalLandPortfolio 6.4 1,301.2 66.7 955.7 49.0Source:PGIMRealEstate-AssetManagementandFundAccounting

12

3Q16FinancialPerformanceFinancialResultsandCalculationsTerrafina’s3Q16financialresultsarepresentedinMexicanpesosandU.S.dollars.Figuresontheincomestatementforeach period were converted to dollars using the average exchange rate for 3Q16, while for the balance sheet, theexchangerateatthecloseofSeptember30,2016wasapplied.Terrafina has in place best accounting practices for measuring the FIBRA’s (REIT) performance results by providingrelevant metrics to the financial community. Throughout the following financial performance section, additionalcalculations are available. It is important to note that these metrics must not be considered individually to evaluateTerrafina’sresults.ItisrecommendedtousethemincombinationwithotherInternationalFinancialReportingStandardsmetricstomeasuretheCompany’sperformance.Terrafina presents in this earnings report additional metrics such as Net Operating Income (NOI), Earnings BeforeInterests, Taxes, Depreciation and Amortization (EBITDA), Funds from Operations (FFO), and Adjusted Funds fromOperations(AFFO).Eachbreakdowncalculationisavailableinthisdocument.

Inaddition,TerrafinarecommendsreviewingtheAppendicesasareferenceoftheintegrationofdifferentitemsof

Terrafina’sfinancialstatement.Thisinformationisavailableinthelastsectionofthisdocument.

Pastperformanceisnotaguaranteeorreliableindicatoroffutureresults.

13

RentalRevenuesIn3Q16,Terrafina’srentalrevenuesreachedUS$32.9million,a3.5%orUS$1.1millionincreasecomparedto3Q15.Rentalrevenuesdonotincludeaccruedrevenuesastheseareanon-cashitem.OtherOperatingIncomeIn3Q16,otheroperatingincometotaledUS$2.2million,a17.2%orUS$0.3millionincreasecomparedto3Q15.Other operating income primarily stems from leasing contract deposits and refunds from triple-net leases. ExpensesreimbursabletoTerrafinaprimarilyincludeelectricity,propertytaxes,insurancecostsandmaintenance.

NetrevenuesreachedUS$35.5millionin3Q16,anincreaseofUS$1.3million,or3.9%comparedto3Q15.

3Q16 3Q15 Var.% 3Q16 3Q15 Var.%

(millionsofpesos) 0 (millionsofdollars) 0

RentalRevenue 615.5 521.2 18.1% 32.9 31.8 3.5%

AccruedIncome1 7.5 8.1 -7.1% 0.4 0.5 -17.6%

OtherOperatingRevenues 40.5 30.8 31.6% 2.2 1.9 17.2%

ReimbursableExpensesasRevenues2 34.2 27.0 26.5% 1.8 1.7 11.6%

ReimbursableTenantImprovements 4.7 3.4 36.8% 0.3 0.2 19.8%

Othernon-cashincome 1.6 0.3 400.8% 0.1 0.0 -

NetRevenue 663.5 560.1 18.5% 35.5 34.1 3.9%(1)Straightlinerentadjustment;non-cashitem.(2)TriplenetleasesexpensesreimbursedtoTerrafinafromitstenants.

Source:PGIMRealEstate-FundAccounting

Foradditionalinformationregardingtherevenuebreakdownusedtocalculateadditionalmetricspresentedinthisearningsreport,pleaserefertoAppendix1inthelastsectionofthisdocument.

RealEstateExpensesIn3Q16,realestateexpensestotaledUS$6.2million,adecreaseofUS$1.7million,or21.5%comparedto3Q15.Theseexpenseswereprimarilyduetorepairsandmaintenance,utilitycosts,commissionsandtaxandinsuranceexpenses.It is important todifferentiatebetweenexpenses that aredirectly related to theoperationand those that are for themaintenanceoftheindustrialportfolio;thelatterareusedintheNOIcalculation.

Theremainderoftheaccountsincludedinrealestateexpensesareconsiderednon-recurringexpensesandareusedtocalculateEBITDAandAFFO.

Foradditionalinformationregardingtherealestateexpensesbreakdown,pleaserefertoAppendix2inthelastsectionofthisdocument.

14

NetOperatingIncome(NOI)In3Q16NOItotaledUS$33.9million,a10.9%,orUS$3.3millionincreasecomparedwith3Q15.NOImarginincreasedby278basispoints,reaching94.3%comparedto91.5%in3Q15.ThefollowingtabledisplaysthecalculationofNOIfor3Q16:

3Q16 3Q15 Var.% 3Q16 3Q15 Var.%


RentalRevenues1 615.5 521.2 18.1% 32.9 31.8 3.5%

OtherOperatingincome2 57.8 27.0 114.0% 3.1 1.7 86.3%

NetRevenuesforNOICalculation 673.4 548.2 22.8% 36.0 33.4 7.6%

RepairandMaintenance -6.6 -7.9 -16.3% -0.4 -0.5 -26.7%

PropertyTaxes -0.6 -5.6 -89.9% 0.0 -0.3 -91.2%

PropertyManagementFees -13.5 -18.5 -27.0% -0.7 -1.1 -36.7%

Electricity -7.1 -6.7 5.2% -0.4 -0.4 -7.1%

PropertyInsurance -3.1 -2.1 49.8% -0.2 -0.1 31.6%

Security -3.3 -3.1 4.8% -0.2 -0.2 -9.4%

OtherOperationalExpenses -4.4 -2.5 77.7% -0.2 -0.2 54.2%

RealEstateOperatingExpensesforNOICalculation

-38.6 -46.4 -17.0% -2.1 -2.8 -27.7%

NetOperatingIncome3 634.8 501.8 26.5% 33.9 30.6 10.9%

NOIMargin 94.3% 91.5% 278bps 94.3% 91.5% 278bps

(1)Excludesaccruedincomefromstraightlinerentadjustmentsasitisanon-cashitem.(2)Excludestenantimprovementsreimbursementswhichareincludedin

AFFO'(3)Theincomecalculationgeneratedbytheoperationoftheproperty,independentofexternalfactorssuchasfinancingandincometaxes.NOIistheresultofNetRevenues(includesrentalincomeandtriplenetleasesexpensesreimbursements)minusRealEstateOperatingExpenses(costsincurredduringtheoperationandmaintenanceoftheindustrialportfolio).Source:PGIMRealEstate-FundAccounting

FeesandAdministrativeExpenses(G&A)G&Ain3Q16totaledUS$4.1million,a3.2%,orUS$0.1milliondecreasecomparedto3Q15.

ThefollowingtableshowstotalG&A:

3Q16 3Q15 Var.% 3Q16 3Q15 Var.%


ExternalAdvisorFees1 -40.0 -32.2 24.3% -2.1 -1.9 9.3%

ProfessionalandConsultingServices -8.1 -15.0 -45.6% -0.5 -0.9 -40.3%

Payroll,Admin.FeesandOtherExpenses -28.6 -23.0 24.0% -1.4 -1.4 3.9%

TotalG&A2 -76.7 -70.2 9.3% -4.1 -4.2 -3.2%(1)GeneralandAdministrativeExpenses(2)PLAAdministradoraIndustrial,S.deR.L.deC.V.,isaMexicanaffiliateofPGIMRealEstate,andAdvisoraspertheAdvisoryContract


EarningsBeforeInterest,Taxes,DepreciationandAmortization(EBITDA)In3Q16,EBITDAreachedUS$30.5million,anincreaseofUS$3.5million,or12.9%,comparedto3Q15.EBITDAmarginfor3Q16was84.8%,a399basispointincreasecomparedto3Q15.

15

ThefollowingshowstheEBITDAcalculationfor3Q16:

3Q16 3Q15 Var.% 3Q16 3Q15 Var.%


RentalRevenues1 615.5 521.2 18.1% 32.9 31.8 3.5%

OtherOperatingincome2 57.8 27.0 114.0% 3.1 1.7 86.3%

RealEstateExpensesforEBITDACalculation -41.4 -49.4 -16.3% -2.2 -3.0 -27.1%

RealEstateOperatingExpensesforNOICalculation -38.6 -46.4 -17.0% -2.1 -2.8 -27.7%

Advertising -0.1 -0.3 -51.0% 0.0 0.0 -56.2%

Admin.PropertyInsuranceExpenses -0.9 -0.7 24.0% 0.0 0.0 8.1%

OtherAdmin.RealEstateExpenses -1.8 -2.0 -11.1% -0.1 -0.1 -22.8%

FeesandAdmin.Expenses -61.2 -56.1 9.2% -3.3 -3.4 -3.9%

ExternalAdvisorFees -40.0 -32.2 24.3% -2.1 -1.9 9.3%

Legal,Admin.andOtherProfessionalFees -12.7 -15.2 -16.4% -0.7 -0.9 -24.4%

TrusteeFees -1.5 -1.1 32.9% -0.1 -0.1 15.5%

Payroll -5.7 -6.0 -5.3% -0.3 -0.4 -15.8%

OtherExpenses -1.3 -1.7 -23.5% -0.1 -0.1 -31.8%

EBITDA3 570.7 442.6 139.2% 30.5 27.0 12.9%

EBITDAMargin 84.8% 80.8% 403bps 84.8% 80.8% 399bps(1)Excludesaccruedincomefromstraightlinerentadjustmentsasitisanon-cashitem.(2)ExcludestenantimprovementsreimbursementswhichisincludedinAFFOcalculation.(3)Earningsbeforeinterest,taxes,depreciationandamortizationSource:PGIMRealEstate-FundAccounting

ForadditionalinformationregardingthecommissionsandadministrativeexpensesbreakdownusedforthecalculationofEBITDAandAFFO,pleaserefertoAppendix4locatedinthelastsectionofthisdocument.

FinancingCostsIn3Q16,financingcoststotaledUS$9.5million,adecreaseof7.6%orUS$0.8millioncomparedto3Q15.

3Q16 3Q15 Var.% 3Q16 3Q15 Var.%


InterestPaid -168.5 -94.8 77.8% -9.0 -5.8 55.9%

BorrowingExpenses

-12.1 -78.2 -84.5% -0.6 -4.8 -86.7%

Recurring -0.2 -0.7 -69.8% 0.0 -0.1 -83.7%

NonRecurring -11.9 -77.4 - -0.6 -4.7 -

InterestIncome 1.6 3.4 -52.8% 0.1 0.2 -59.5%

Total -178.9 -169.5 5.6% -9.5 -10.3 -7.6%Source:PGIMRealEstate-FundAccounting

16

FundsfromOperations(FFO)/AdjustedFundsfromOperations(AFFO)In3Q16,Terrafina’sFFOincreasedbyUS$0.2million,or0.9%comparedto3Q15,reachingUS$21.6million.FFOmarginwas60.0%,a397basispointdecreasecomparedto3Q15.Additionally,TerrafinareportedanAFFOofUS$18.5million,anincreaseofUS$1.0million,or5.8%compared to3Q15.AFFOmarginwas52.9%, an increaseof 92basispoints versus3Q15.

3Q16 3Q15 Var.% 3Q16 3Q15 Var.%


EBITDA 570.7 442.6 29.0% 30.5 27.0 12.9%FinanceCost1 -167.1 -92.1 81.5% -8.9 -5.6 58.4%FundsfromOperations(FFO) 403.7 350.6 15.2% 21.6 21.4 0.9%FFOMargin 60.0% 64.0% -397bps 60.0% 64.0% -397bpsTenantImprovements -32.1 -41.6 -22.7% -1.7 -2.5 -32.1%LeasingCommissions -20.4 -16.9 20.5% -1.1 -1.0 6.6%OtherNonRecurringExpenses2 -4.8 -5.8 -17.3% -0.3 -0.3 -24.9%AdjustedFundsfromOperations(AFFO) 346.4 286.2 21.0% 18.5 17.5 5.8%

AFFOMargin 52.9% 52.0% 92bps 52.9% 52.0% 92bps(1)NetOperationalInterestExpensescomprisedbyinterestpaid,recurringborrowingexpensesandinterestincome.(2)Relatedexpensestoacquisitions,legalandother.Source:PGIMRealEstate-FundAccounting

ComprehensiveIncomeComprehensiveIncomefor3Q16reachedUS$99.3million,comparedtoUS$124.8millionin3Q15.

ThefollowingtablepresentsthecalculationofComprehensiveIncomefor3Q16:

3Q16 3Q15 Var.% 3Q16 3Q15 Var.%


NetRevenues 663.5 560.1 18.5% 35.5 34.1 3.9%

RealEstateExpenses -116.5 -130.2 -10.5% -6.2 -7.9 -21.5%

FeesandOtherExpenses -76.7 -70.2 9.2% -4.1 -4.2 -3.2%

Gain(Loss)fromSalesofRealEstateProperties 0.0 0.0 - 0.0 0.0 -

NetIncome(Loss)fromFairValueAdjustmentonInvestmentProperties -175.9 116.0 - -9.2 7.1 -NetIncome(Loss)fromFairValueAdjustmentonDerivativeFinancialInstruments

0.0 0.9 - 0.0 0.1 -

NetIncome(Loss)fromFairValueAdjustmentonBorrowings -106.6 47.5 -324.6% -5.6 2.9 -292.3%

NetIncome(Loss)fromFairValueAdjustmentonLoansReceivable -1.7 - - -0.1 - -

NetIncome(Loss)fromFairValueAdjustmentonBankInvestment 0.0 3.2 - 0.0 0.2 -

ForeignExchangeGain(loss) -14.1 -44.3 -68.3% -0.7 -2.7 -75.2%

OperatingProfit 172.1 482.7 -64.4% 9.6 29.5 -67.3%

FinancialIncome 1.6 3.4 -52.8% 0.1 0.2 -59.5%

FinancialExpenses -180.6 -172.9 4.4% -9.6 -10.5 -8.6%

NetFinancialCost -178.9 -169.5 5.6% -9.5 -10.3 -7.6%

ShareofProfitfromEquityAccountedInvestments 23.7 - - 1.2 - -

NetProfit(Loss) 16.8 313.3 -94.6% 1.3 19.2 -93.1%

ItemsReclassifiedafterNetProfit(Loss)-CurrencyTranslationAdjustments 705.1 1,731.2 -59.3% 37.7 105.6 -64.3%

ComprehensiveIncome 721.9 2,044.4 -64.7% 39.0 124.8 -68.8%Source:PGIMRealEstate-FundAccounting

17

DistributionsperCBFIsIn3Q16,TerrafinadistributedUS$18.5million,orUS$0.0305perCBFI.Terrafina’s3Q16,2Q16,3Q15distributionsarepresentedinthefollowingtable:

(millionsofpesosunlessotherwisestated) 3Q16 2Q16 3Q15 Var.4

TotalOutstandingCBFIs1(millionsofCBFIs) 607.4 607.4 607.2 0.0%

CBFIPrice2 30.84 30.84 31.27 -1.4%

Distributions 346.4 343.3 286.2 21.0%

DistributionsPerCBFI 0.5703 0.5650 0.4713 21.0%

FXRateUSD/MXN(averageclosingperiod) 18.72 18.07 16.39 14.2%

Distributions(milliondollars) 18.5 19.0 17.5 5.8%

DistributionsPerCBFI(dollars) 0.0305 0.0313 0.0288 5.8%

AnnualizedDistributionYield3 7.4% 7.3% 6.0% 137bps(1)In2Q16,334,187CBFIswereaddedaspartofTerrafina´scompensationplan.(2)Averageclosingpricefortheperiod.(3)AnnualizeddistributionpersharedividedbytheaverageCBFIpriceofthequarter.Quarterlydistributionyieldcalculationhasbeenannualized.(4)3Q16comparedto3Q15.


TotalDebtAsofSeptember30,2016,Terrafina’s totaldebt reachedUS$725.5million.TheaveragecostofTerrafina’s long-termdebtwas4.98%.AllofTerrafina’sdebtisdenominatedinU.S.dollars.Additionally,itisimportanttonotethatTerrafina’svariableinterestrateloansarehedgedwithinterestratecapsandfixedrateoptions.

(asofSeptember30,2016)

Currency millionsofpesos

millionsofdollars

InterestRate Terms Maturity Extension

Option

LongTermDebt

Citibank1 Dollars 0.0 0.0 Libor+2.40% InterestOnly Aug2018 Aug2019

BRE2,3 Dollars 5,272.6 270.4 Libor+3.75% Interest+Principal Sep2018 Sep2020

MetLife4 Dollars 430.5 22.1 5.09% Interest+Principal Nov2016 -

SeniorNotes Dollars 8,443.4 433.0 5.3% InterestOnly Nov2022 -

TotalDebt 14,146.4 725.5

NetCash 4,838.8 248.1

NetDebt 9,307.6 477.3 (1)Unsecuredsyndicatedloanfacilitywithsevenbanks.(2)Securedsyndicatedloanfacilitywithfourbanks.(3)One-yearinterestonlygraceperiod.4)DebtassumedfromportfolioacquisitionclosedinNovember2015.Source:PGIMRealEstate-FundAccountingandCapitalMarkets

37.3%

62.7%

InterestRateBreakdown(asofJune30,2016)

VariableRate FixedRate

18

The following tables show leverageanddebt service coverageasof September30,2016aswell asTerrafina’sprojectionsforthefollowingsixquarters:

Leverage(LTV) (asofSeptember30,2016)

(millionsofpesos)

(millionsofdollars)

TotalAssets 37,914.9 1,944.3

TotalDebt 14,146.4 725.5

Loan-to-Value(LTV)1 37.3%

(1)TotalDebtdividedbyTotalAssetsasdefinedbytheNationalSecuritiesandBankingCommission(CNBV)Source:PGIMRealEstate-FundAccountingandCapitalMarkets

DebtServiceCoverageRatio(DSCR)

period (millionsofpesos) (millionsofdollars)

Cash&CashEquivalents September30,2016 4,838.8 248.1

RecoverableTaxes Σnext6quarters 100.5 5.2

EBIT1afterdistributions Σnext6quarters 1,452.8 74.5

AvailableCreditLine September30,2016 7,312.6 375.0

period (millonesdepesos) (millonesdedólares)

InterestPayments Σnext6quarters 968.7 49.7

PrincipalPayments Σnext6quarters 754.4 38.7

RecurringCAPEX Σnext6quarters 312.0 16.0

DevelopmentExpenses Σnext6quarters 261.3 13.4

DebtServiceCoverageRatio

(DSCR)2 6.0x

(1)EarningsBeforeInterestandTaxes

(2)(Cash&CashEquivalents+RecoverableTaxes+EBITAfterDistributions+AvailableCreditLine)/(Interest

Payments+PrincipalPayments+RecurringCAPEX+DevelopmentExpenses)

Source:PGIMRealEstate-FundAccountingandCapitalMarkets

Moreover,asofSeptember30,2016TerrafinawasinfullcompliancewithitsdebtcovenantsrelatedtotheUS$425millionbondissuance,asfollows:

(asofSeptember30,2016)

TerrafinaBond

Covenants

Loan-to-Value(LTV)1 37.3% ≤60%

DebtServiceCoverageRatio(DSCR)2 2.3x ≥1.5x

SecuredDebttoGrossAssetsLimitation 15.0% ≤40%

UnencumberedAssetstoUnsecuredDebtLimitation 482% ≥150%

(1)TotalDebtdividedbyTotalAssets.(2)(NetIncome/Loss+InterestonDebt+UnrealizedGain/Lossoffairvaluechanges)/

(allinterestandprincipalpaymentsonDebt)

Source:PGIMRealEstate-CapitalMarkets

19

AnalystCoverageThefollowingisalistofbanksandinstitutionsthatregularlypublishresearchreportsonTerrafina:- Barclays- BBVABancomer- BofAML- BTGPactual- BX+- CitiBanamex- CreditSuisse- GBM- HSBC- Interacciones- Invex- ItaúBBA- JPMorgan- Monex- MorganStanley- NAUSecurities- Scotiabank- UBS- Vector

20

AboutTerrafinaTerrafina (BMV:TERRA13) is a Mexican real estate investment trust formed primarily to acquire, develop, lease andmanage industrial real estate properties in Mexico. Terrafina’s portfolio consists of attractive, strategically locatedwarehousesandotherlightmanufacturingpropertiesthroughouttheCentral,BajioandNorthernregionsofMexico.Itisinternallymanagedbyhighly-qualifiedindustryspecialistsandexternallyadvisedbyPGIMRealEstate.Terrafina owns 220 real estate properties, including 209 developed industrial facilities with a collective GLA ofapproximately30.1millionsquarefeetand11landreserveparcels,designedtopreservetheorganicgrowthcapabilityoftheportfolio.Terrafina’s objective is to provide attractive risk-adjusted returns for the holders of its certificates through stabledistributionsandcapitalappreciations.Terrafinaaimstoachievethisobjective throughasuccessfulperformanceof itsindustrialrealestateandcomplementaryproperties,strategicacquisitions,accesstoahighlevelofinstitutionalsupport,andtoitsmanagementandcorporategovernancestructure.Formoreinformation,pleasevisitwww.terrafina.mxPGIMRealEstatePGIMReal Estate is the real estate investment business of PGIM Inc., the global investmentmanagement business ofPrudentialFinancial, Inc. (NYSE:PRU). Redefining therealestate investing landscapesince1970,PGIMRealEstatehasprofessionals in 18 cities in theAmericas, EuropeandAsiaPacificwithdeep local knowledgeandexpertise, andgrossassetsundermanagementof$66.5billion($49.0billionnet)asofJune30,2016.PGIMRealEstate’stenuredteamofferstoitsglobalclientbaseabroadrangeofrealestateinvestmentvehiclesthatspantherisk-returnspectrumacrosscore,core plus, value-add, debt, securities, and specialized investment strategies. For more information, visitwww.pgimrealestate.com.AboutPrudentialFinancial,Inc.PrudentialFinancial,Inc.(NYSE:PRU),afinancialservicesleaderwithmorethan$1.0trillionofassetsundermanagementas of June 30, 2016, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse andtalented employees are committed to helping individual and institutional customers grow and protect their wealththroughavarietyofproductsandservices, includinglife insurance,annuities,retirement-relatedservices,mutualfundsandinvestmentmanagement.IntheU.S.,Prudential’siconicRocksymbolhasstoodforstrength,stability,expertiseandinnovationformorethanacentury.Formoreinformation,pleasevisitwww.news.prudential.comForwardLookingStatementsThisdocumentmayincludeforward-lookingstatementsthatmayimplyrisksanduncertainties.Termssuchas"estimate","project", "plan", "believe", "expect", "anticipate", "intend", and other similar expressions could be construed asprevisionsorestimates.Terrafinawarnsreadersthatdeclarationsandestimatesmentionedinthisdocument,orrealizedbyTerrafina’smanagementimplyrisksanduncertaintiesthatcouldchangeinfunctionofvariousfactorsthatareoutofTerrafina’scontrol.FutureexpectationsreflectTerrafina’sjudgmentatthedateofthisdocument.Terrafinareservestherightorobligationtoupdatetheinformationcontainedinthisdocumentorderivedfromthisdocument.Pastorpresentperformanceisnotanindicatortoanticipatefutureperformance.

21

ConferenceCall

(BMV:TERRA13)Cordiallyinvitesyoutoparticipateinits

ThirdQuarter2016Results

Friday,October21,201611:00a.m.EasternTime10:00a.m.CentralTime

PresentingforTerrafina:

AlbertoChretin,ChiefExecutiveOfficerAngelBernal,ChiefFinancialOfficer

***

Toaccessthecall,pleasedial:fromwithintheU.S.1-800-311-9404fromoutsidetheU.S.1-334-323-7224

ConferenceIDNumber:34974

AudioWebcastLink:https://www.webcaster4.com/Webcast/Page/1111/17311

ConferenceReplayUS1-877-919-4059

International(outsidetheUS)1-334-323-0140Passcode:17022640

22

AppendixAppendix1–RevenuesTerrafina’srevenuesaremainlyclassifiedasrentalrevenuesandotheroperatingreimbursablerevenues.Additionally,thereareaccountingrevenuesthatmustberegisteredaccordingwithIFRS;however,theseareconsideredasnon-cashitemsandthereforeareexcludedinsomecalculations.ReimbursabletenantimprovementsareincludedinthetenantimprovementexpensesfortheAFFOcalculation.

Revenues

3Q16 3Q15 3Q16 3Q15

(millionsofpesos) (millionsofdollars)

NOIcalculation RentalRevenue 615.5 521.2 32.9 31.8

NonCash AccruedIncome1 7.5 8.1 0.4 0.5

OtherOperatingRevenues 40.5 30.8 2.2 1.9

NOIcalculation ReimbursableExpensesasRevenues2 34.2 27.0 1.8 1.7

AFFOcalculation ReimbursableTenantImprovements 4.7 3.4 0.3 0.2

NonCash Othernon-cashincome 1.6 0.3 0.1 0.0

NetRevenue 663.5 560.1 35.5 34.1

NOIcalculation ShareofProfitfromEquityAccountedInvestments 23.7 - 1.2 -

(1)Straightlinerentadjustment.(2)TriplenetleasesexpensesreimbursedtoTerrafinafromitstenants.


23

Appendix2–RealEstateExpensesReal estate expenses are comprised of recurring figures relatedwith the operation (used for theNetOperating Profitcalculation) as well as non-recurring figures used for metric calculations such as Earnings Before Interests, Taxes,DepreciationandAmortization(EBITDA),FundsfromOperations(FFO),AdjustedFundsfromOperations(AFFO).Thefollowingtablepresentstherealestateexpenses’breakdown,whichareusedforthecalculationofseveralmetrics.

3Q16 3Q15 3Q16 3Q15


RepairandMaintenance -43.5 -52.9 -2.3 -3.2

NOIcalculation Recurring -6.6 -7.9 -0.4 -0.5

AFFOcalculation NonRecurring -36.8 -45.0 -2.0 -2.7

PropertyTaxes -0.6 -6.0 0.0 -0.4

NOIcalculation Operating -0.6 -5.6 0.0 -0.3

NonCash NonOperating -0.1 -0.4 0.0 0.0

NOIcalculation PropertyManagementFees -13.5 -18.5 -0.7 -1.1

NOIcalculation Electricity -7.1 -6.7 -0.4 -0.4

AFFOcalculation BrokersFees -20.4 -16.9 -1.1 -1.0

PropertyInsurance -4.0 -2.8 -0.2 -0.2

NOIcalculation Operating -3.1 -2.1 -0.2 -0.1EBITDA

calculation Administrative -0.9 -0.7 0.0 0.0

NOIcalculation Security -3.3 -3.1 -0.2 -0.2EBITDA

calculation Advertising -0.1 -0.3 0.0 0.0

OtherExpenses -10.4 -4.5 -0.6 -0.3

NOIcalculation OperationalRelated -4.4 -2.5 -0.2 -0.2

NonCash NonOperationalRelated -4.3 0.0 -0.2 0.0EBITDA

calculation Administrative -1.8 -2.0 -0.1 -0.1

NonCash BadDebtExpense -13.6 -18.5 -0.7 -1.1

NonCash TransactionExpense -116.5 -124.3 -6.2 -7.9

TotalRealEstateExpenses -43.5 -52.9 -2.3 -3.2


24

Appendix3–FeesandAdministrativeExpensesFeesandadministrativeexpenses include figuresused formetric calculations suchasEarningsbefore Interests, Taxes,DepreciationandAmortization(EBITDA),FundsfromOperations(FFO),AdjustedFundsfromOperations(AFFO).Terrafina’sfeesandadministrativeexpensesbreakdownisavailableinthefollowingtableandindicatesthefiguresusedforthecalculationofthesemetrics:

FeesandAdministrativeExpenses

3Q16 3Q15 3Q16 3Q15


EBITDAcalculation ExternalAdvisorFees -40.0 -32.2 -2.1 -1.9

LegalFees -3.4 -4.5 -0.2 -0.3

EBITDAcalculation Recurring -0.7 -3.1 0.0 -0.2


OtherProfessionalFees -4.7 -9.4 -0.3 -0.6

EBITDAcalculation Recurring -2.7 -5.0 -0.2 -0.3


AdministrativeFees -20.1 -15.4 -1.1 -0.9

EBITDAcalculation Recurring -9.4 -7.2 -0.5 -0.4NonOperational

related NonRecurring -10.7 -8.2 -0.6 -0.5

EBITDAcalculation Payroll -5.7 -6.0 -0.3 -0.4

EBITDAcalculation TrusteeFees -1.5 -1.1 -0.1 -0.1

EBITDAcalculation OtherExpenses -1.3 -1.7 -0.1 -0.1

TotalFeesandAdmin.Expenses

-76.7 -70.2 -4.1 -4.2


25

Appendix4–ReconciliationReconciliationofNetProfit(Loss)toFFO,EBITDAandNOI

3T16 3T15 3T16 3T15 (millionsofpesos) (millionsofdollars)

ComprehensiveIncome(Loss) 721.9 2,044.4 38.6 124.7Add(deduct)CurrencyTranslationAdjustment: CurrencyTranslationAdjustment -705.1 -1731.2 -37.7 -105.6

Add(deduct)CostofFinancingAdjustment: NonRecurringBorrowingExpenses 11.9 77.4 0.6 4.7

Add(deduct)Non-CashAdjustment: ForeignExchangeAdjustments 14.1 44.3 0.8 2.7FairValueAdjustmentonBankInvestment 0.0 -3.2 0.0 -0.2FairValueAdjustmentonBorrowings 106.6 -47.5 5.7 -2.9FairValueAdjustmentonDerivativeFinancialInstruments 0.0 -0.9 0.0 -0.1FairValueAdjustmentonLoansReceivable 1.7 0.0 0.1 0.0FairValueAdjustmentonInvestmentProperties 175.9 -116.0 9.4 -7.1Gain(Loss)fromSalesofRealEstateProperties 0.0 0.0 0.0 0.0

Add(deduct)ExpensesAdjustment: NonRecurringRepairandMaintenance 36.8 45.0 2.0 2.7NonOperatingPropertyTaxes 0.1 0.4 0.0 0.0BrokersFees 20.4 16.9 1.1 1.0BadDebtExpense 13.6 18.5 0.7 1.1OtherNonOperationalRelatedExpenses 4.3 0.0 0.2 0.0NonRecurringLegalFees 2.7 1.4 0.1 0.1NonRecurringOtherProfessionalFees 2.1 4.4 0.1 0.3

Add(deduct)RevenuesAdjustment: AccruedIncome -7.5 -8.1 -0.4 -0.5OtherNon-CashIncome -1.6 -0.3 -0.1 0.0ReimbursableTenantImprovements -4.7 -3.4 -0.3 -0.2

Add(deduct)NonOperationalAdministrativeFees NonOperationalAdministrativeFees 10.7 8.2 0.6 0.5

FFO 403.7 350.5 21.6 21.5Add(deduct)CostofFinancingAdjustment: InterestPaid 168.5 94.8 9.0 5.8RecurringBorrowingExpenses 0.2 0.7 0.0 0.0InterestIncome -1.6 -3.4 -0.1 -0.2

EBITDA 570.7 442.5 30.5 27.0Add(deduct)ExpensesAdjustment: ExternalAdvisorFees 40.0 32.2 2.1 2.0RecurringLegalFees 0.7 3.1 0.0 0.2RecurringOtherProfessionalFees 2.7 5.0 0.1 0.3AdministrativeFees 9.4 7.2 0.5 0.4Payroll 5.7 6.0 0.3 0.4TrusteeFees 1.5 1.1 0.1 0.1OtherExpenses 1.3 1.7 0.1 0.1Advertising 0.1 0.3 0.0 0.0AdministrativePropertyinsurance 0.9 0.7 0.0 0.0OtherAdministrativeExpenses 1.8 2.0 0.1 0.1

NOI 634.8 501.7 33.9 30.6Add(deduct)ExpensesAdjustment: RecurringRepairandMaintenance 6.6 8.0 0.4 0.5OperatingPropertyTaxes 0.6 5.7 0.0 0.3PropertyManagementFees 13.5 18.6 0.7 1.1Electricity 7.1 6.8 0.4 0.4OperatingPropertyInsurance 3.1 2.1 0.2 0.1Security 3.3 3.2 0.2 0.2OtherOperationalExpenses 4.4 2.6 0.2 0.2

Add(deduct)RevenuesAdjustment: OtherNon-CashIncome 1.6 -0.3 0.1 0.0AccruedIncome 7.5 8.1 0.4 0.5ReimbursableTenantImprovements 4.7 3.5 0.3 0.2ShareofProfitfromEquityAccountedInvestments -23.7 0.0 -1.3 0.0

NetRevenue 663.5 560.1 35.5 34.3

26

ReconciliationofNetProfit(Loss)toAFFO 3T16 3T15 3T16 3T15


ComprehensiveIncome(Loss) 721.9 2,044.4 38.6 124.7Add(deduct)CostofFinancingAdjustment: NonRecurringBorrowingExpenses -705.1 -1731.2 -37.7 -105.6

Add(deduct)CostofFinancingAdjustment: NonRecurringBorrowingExpenses 11.9 77.4 0.6 4.7

Add(deduct)Non-CashAdjustment: ForeignExchangeAdjustments 14.1 44.3 0.8 2.7FairValueAdjustmentonBankInvestment 0.0 -3.2 0.0 -0.2FairValueAdjustmentonBorrowings 106.6 -47.5 5.7 -2.9FairValueAdjustmentonDerivativeFinancialInstruments 0.0 -0.9 0.0 -0.1FairValueAdjustmentonLoansReceivable 1.7 0.0 0.1 0.0FairValueAdjustmentonInvestmentProperties 175.9 -116.0 9.4 -7.1Gain(Loss)fromSalesofRealEstateProperties

Add(deduct)ExpensesAdjustment: NonOperatingPropertyTaxes 0.1 0.4 0.0 0.0BadDebtExpense 13.6 18.5 0.7 1.1TransactionExpenses 4.3 0.0 0.2 0.0

Add(deduct)RevenuesAdjustment: AccruedIncome -7.5 -8.1 -0.4 -0.5OtherNon-CashIncome -1.6 -0.3 -0.1 -0.1

Add(deduct)NonOperationalAdministrativeFees NonAdministrativeFees 10.7 8.2 0.6 0.5

AFFO 346.4 286.2 18.5 17.5

27

Appendix5-CapRateCalculationTerrafinasubtractscashandlandreservesbookvalueforthecapratecalculation.ImpliedcaprateandunderNAV(NetAssetValue)calculationareshowninthefollowingtables:

ImpliedCapRate

QuarterlyAveragePrice(dollars)¹ 1.65

(x)CBFIs(millionshares) 607.4

(=)MarketCapitalization 1,000.6

(+)TotalDebt 725.5

(-)Cash 248.1

(=)EnterpriseValue 1,477.9

(-)Landreserve 66.5

(=)ImpliedOperatingRealEstateValue 1,411.4

NetOperatingIncome(NOI)2016e 133.0

ImpliedCapRate 9.4%

Figuresexpressedinmillionsofdollarsunlessotherwisestated.

(1)3Q16averagesharepriceofPs.30.84;andaverageexchangerateofPs.18.7204.

CapRateCalculationwithNAV

(+)InvestmentProperties(excludinglandbank) 1,590.7

(+)Land 66.5

(+)Cash 248.1

(-)TotalDebtandLiabilities 761.0

(=)NAV1 1,144.4

(/)CBFIs(millionshares) 607.4

(=)NAVperCBFI(dollars) 1.9

CBFIPrice(NAVcalculation) 1.88

(x)CBFIs(millionshares) 607.4

(=)MarketCap 1144.4

(+)TotalDebtandLiabilities 761.0

(-)Cash 248.1

(=)EnterpriseValue 1,657.2

(-)Landbank 66.5

(=)ImpliedOperatingRealEstateValue 1,590.7

NetOperatingIncome(NOI)2016e 133.0

ImpliedCapRate 8.4%Figuresexpressedinmillionsofdollarsunlessotherwisestated.

28

FinancialStatements

IncomeStatement

3Q16 3Q15

(thousandpesos)

Rentalrevenues

$623,047 $529,283

Otheroperatingincome

40,482 30,768

Realestateoperatingexpenses

(116,509) (130,243)

Feesandotherexpenses

(76,696) (70,214)

Realizedgainfromdisposalofinvestmentproperties

- -

Netgain(loss)fromfairvalueadjustmentoninvestmentproperties

(175,879) 115,988

Netgain(loss)fromfairvalueadjustmentonborrowings

(106,554) 47,450

Netgain(loss)fromfairvalueadjustmentonloansreceivable

(1,713) -

Net(loss)gainunrealizedfromfairvalueonderivativefinancialinstruments

(28) 870

NetIncome(loss)fromfairvalueadjustmentonbankinvestments

- 3,194

Foreignexchange(loss)gain

(14,068) (44,342)

Operatingprofit 172,082 482,755

Financeincome

1,622 3,440

Financecost

(180,572) (172,908)

Financecost-net (178,950) (169,468)

Shareofprofitfromequityaccountedinvestments

23,653 -

NetProfitfortheperiod 16,785 313,287

Itemsthatmaybesubsequentlyreclassifiedtoprofitorloss-currencytranslationdifferences

705,109 1,731,153

TotalComprehensiveincomefortheperiod 721,894 2,044,440

29

FinancialStatements

BalanceSheet Sep-30-16 Jun-30-16(thousandsofpesos)

Assets Non-currentassets

Investmentproperties $32,316,560 $31,423,870(Cost:30/09/2016-Ps.31,427,063;30/06/2016-Ps.30,387,451)

Investmentsaccountedusingequitymethod 198,113

128,484Derivativefinancialinstruments -

28

Loanreceivable 38,108 2,399(Cost:30/09/2016-Ps.38,108;30/06/2016-Ps.38,524)

Currentassets Otherassets 81,468 74,340Loanreceivable 2,473

38,913

(Cost:30/09/2016-Ps.2,473;30/06/2016-Ps.1,096)

Recoverabletaxes 100,541 278,570Prepaidexpenses 4,557 5,039Acquisitionprepayment 16,700 -Deferredchargesandaccruedincome 156,441 144,214Accountsreceivable 63,221 56,001(Netofallowancefordoubtfulaccounts:30/09/2016-Ps.149,154;30/06/2016-Ps.131,032)

Restrictedcash 97,896 66,162

Cashandcashequivalents 4,838,822 4,661,752

Totalassets 37,914,900 36,879,772

NetassetsattributabletoInvestors Contributions,net 14,782,859

15,109,335

Retainedearnings -

-Currencytranslationadjustment 8,292,131

7,587,022

Totalnetassets(NetEquity) 23,074,990 22,696,357

Liabilities

Non-currentliabilities

Borrowings 13,503,704 13,042,077(Cost:30/09/2016-$13,347,897;30/06/2016-$12,996,264)

Tenantdeposits 178,732

157,887

Accountspayable 4,981

40,142Currentliabilities Tradeandotherpayables 461,586 307,515Borrowings 642,743 574,046

(Cost:30/09/2016-Ps.642,743,30/06/2016-Ps.574,046)

Tenantdeposits 48,164

61,748

Totalliabilities(excludingnetassetsattributabletotheInvestors) 14,839,910 14,183,415

Totalnetassetsandliabilities 37,914,900 36,879,772

30

FinancialStatements

CashFlowStatement Sep-16

(thousandsofpesos)

Cashflowsfromoperatingactivities(Loss)profitfortheperiod $268,572

Adjustments:

Netloss(gain)unrealizedfromfairvalueadjustmentoninvestmentproperties 191,044

Netloss(gain)unrealizedfromfairvalueadjustmentonborrowings 353,791

Netloss(gain)unrealizedfromfairvalueadjustmentonloansreceivable 44

Netloss(gain)unrealizedfromfairvalueadjustmentonderivativefinancialinstruments 18

Realizedgainfromdisposalofinvestmentproperties (9,361)

Baddebtexpense 27,127

Interestexpense 489,536

Interestincomeonbankaccounts (2,614)

Shareofprofitfromequityaccountedinvestments (43,464)

Decrease(increase)deferredrentsreceivable (44,547)

Decrease(increase)inrestrictedcash (39,853)

Decrease(increase)inaccountsreceivable (23,876)

Decrease(increase)inrecoverabletaxes 229,163

Decrease(increase)inprepaidexpenses 5,355

Decrease(increase)inotherassets 11,292

Decrease(increase)intenantdeposits 27,604

(Decrease)inaccountspayable 111,430

Netcash(usedin)generatedfromoperatingactivities 1,551,261

Cashflowsfrominvestingactivities Acquisitionssofinvestmentproperties (26,970)

Improvementsofinvestmentproperties (246,770)

Proceedsfromdispositionsofinvestmentproperties 60,046

Acquisitionprepayment (12,523)

Interestincomeonbankaccounts 2,614

Investmentsinjointventure (35,985)

Loansreceivabledeposit (37,705)

Loansreceivablepayment 353

Netcash(usedin)generatedfrominvestingactivities (296,940)

Cashflowsfromfinancingactivities Principalpaymentsonborrowings (56,635)

Interestexpense (489,536)

Distributionstoinvestors (919,849)

ProceedsfromCBFI,netofissuingcost 5,013

Netcash(usedin)generatedfromfinancingactivities (1,461,007)

Net(decrease)incashandcashequivalents (206,686)

Cashandcashequivalentsatthebeginningoftheperiod 4,467,863

Exchangeeffectsoncashandcashequivalents 577,645

Cashandcashequivalentsattheendoftheperiod 4,838,822

31

FinancialStatements AttributabletoInvestors

StatementofChangesinEquity Netcontributions

Currencytranslationadjustment

Retainedearnings Netassets

(thousandsofpesos) BalanceatJanuary1,2015 $15,227,911 $5,519,448 $201,212 $20,948,571Equitycontributions,netofissuingcost 5,013 - - $5,013DistributionstoInvestors (450,065) - (469,784) (919,849)ComprehensiveIncome Netlossoftheperiod - - 268,572 268,572OtherComprehensiveIncome CurrencyTranslation - 2,772,683 - 2,772,683TotalComprehensive(loss)income - 2,772,683 268,572 3,041,255

NetAssetsasofSeptember30,2016 $14,782,859 $8,292,131 $- $23,074,990

Documents

THIRD QUARTER 2016 EARNINGS REPORT - Amazon S3 · 2 Financial • 3Q16 rental revenues reached US$32.9 million, a 3.5% or US$1.1 million increase compared to 3Q15. • 3Q16 NOI was