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Disclaimer This presentation is strictly confidential and is being furnished to you solely for your information. It may not be reproduced or redistributed to any other person, and it may not be published, in whole or in part, for any purpose. By receiving this presentation, you become bound by the above referred confidentiality obligation. Failure to comply with such confidentiality obligation may result in civil, administrative or criminal liabilities. The distribution of this presentation in other jurisdictions may also be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. The material that follows presents general background information about Terrafina (“Terrafina” or the “Company”) as of the date of the presentation. This information consists of publicly available information concerning the Company and the industries in which it participates. It is information in summary form and does not purport to be complete. It is not intended to be relied upon as advice to potential investors and does not form the basis for an informed investment decision. If the Company should at any time commence an offering of securities, any decision to invest in such offer to subscribe for or acquire securities of the Company must be based wholly on the information contained in the offering circular to be issued by the Company in connection with any such offer and not on the contents hereof. None of the Company or any authorized underwriter or any of their respective affiliates expects to update or otherwise review the information contained herein except by means of a prospectus, offering memorandum or other customary disclosure document with respect to the offer of any securities of the Company. This presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy any securities in the United States or elsewhere nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment to purchase certificates. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Act”). This presentation is being made only to investors that, by means of their attendance at this presentation, represent that they are “Qualified Institutional Buyers” as that term is defined in the Act. Terrafina has not and does not intend to register any securities under the Act or offer any securities to the public in the United States. Any decision to purchase certificates in any offering should be made solely on the basis of the information to be contained in the Mexican prospectus to be registered with the Comisión Nacional Bancaria y de Valores (“CNBV”) or any offering memorandum delivered to you in due course in relation to any such offering, and not on the basis of this presentation. No reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness. All information in this presentation is subject to verification, correction, completion and change without notice. No representation or warranty, express or implied, is given or will be given as to the accuracy, completeness or fairness of the information or opinions contained in this document and any reliance you place on them will be at your sole risk. In addition, no responsibility, obligation or liability (whether direct or indirect, in contract, tort or otherwise) is or will be accepted by the Company, any global coordinator, bookrunner, manager or any other person in relation to such information or opinions or any other matter in connection with this document or its contents or otherwise arising in connection therewith. This presentation includes forward-looking statements. All statements other than statements of historical fact included in this presentation, including, without limitation, those regarding our prospective resources, contingent resources, financial position, business strategy, management plans and objectives, future operations and synergies are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our actual resources, reserves, results, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. These forward-looking statements are based on numerous assumptions regarding our present and future business operations and strategies and the environment in which we expect to operate in the future. Forward-looking statements speak only as of the date of this presentation and we expressly disclaim any obligation or undertaking to release any update of or revisions to any forward-looking statements in this presentation, any change in our expectations or any change in events, conditions or circumstances on which these forward-looking statements are based. Neither the CNBV nor any other authority have approved or disapproved the information contained in this presentation, or the accuracy or the veracity of the information contained herein. By By atten ending this this pres esen entation or or by by accep epting to to view ew an any of of the the mater erials pres esen ented ed, yo you agree ee to to be be bo bound by by the the foreg egoing lim limitatio itations. 2
Terrafina at a glance: a leading industrial REIT in Mexico… Key Met etrics as of 3Q2019 Youngest Portfolio North 62.3% IndustrialProperties Avg. Ag Age e 12 yea ears Bajio 22.5% 289 289 Central 15.2% Occupancy Rate Rental Revenues 96.3% 96.3% ~9 ~97% % US$ S$ Rent per ft 2 GLA US US$5.18 5.18 41.8m 41.8mm ft 2 Solid Fundamen entals with PGI GIM Rea eal Estate e portfolio managem emen ent exper ertise • Bes est Cl Class-A in industrial ial po portfolio leased by multinational tenants • Highest percentage of US US$-den enominated ed leases and the majority structured as triple-net, providing Terrafina with stable US$-denominated cash flows • portfolio with th ns among Mexican industrial REITs Younges est po the highes est oper erating ma margins • Most diver ersified ed industrial portfolio in Mexico by tenant base located in the industrial real estate hub of the country • Inves estmen ent Gr Grade balance sheet with proven access to public and private debt markets • Strong spo sponso sorsh ship by PGIM Real Estate: one of the longest-standing industrial real estate managers in Mexico 3 Source e Terrafina filings
… that has been delivering results since inception Key milestones that propelled and support our growth story • Refinancing • FO offering • PGIM reaches 19.9mm ft 2 • Refinancing US$300mm ~US$460mm US$150mm of Industrial assets • Acquisition of 0.3 MM ft 2 2011 2014 2016 2018 2019 2003 2017 2013 2015 • Asset recycling strategy • IPO • PGIM raises two industrial • Liability • Refinancing ~US$101mm US$716mm funds Management: US$500mm • Bond Issuance US$425mm • Revolving Credit Facility Tender Offer • FO offering • Unsecured revolving facility US$500mm ~US$336 MM and US$317mm US$375mm • Acquisition of Bond Issuance • Acquisition of • Acquisition 1.1MM ft 2 11MM ft 2 US$500mm 10.1 MM ft 2 4 1. Defined as: (Net Income/Loss + Interest on Debt + Unrealized Gain/Loss of fair value changes) / (all interest and principal payments on debt)
Successfully executing its business plan… Strong occupancy and solid rental rates in all stages of the cycle 5.30 96.3% 97.0% 95.3% 95.5% 5.20 94.8% 95.0% 5.18 5.15 5.10 93.2% 93.0% 5.00 5.04 91.2% 4.90 91.0% 89.7% 4.88 4.88 Mexican Elections 4.80 4.82 89.0% US Elections 4.76 4.70 87.0% USMCA 4.60 4.50 85.0% 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Avg. annualized rental rate (US$ per ft2) Occupancy rate Attractive margins for NOI… …and AFFO EBITDA… 84.2% 84.4% 94.1% 94.3% 53.9% 82.5% 83.0% 83.1% 53.5% 53.1% 52.2% 52.4% 92.1% 92.0% 92.3% 79.8% 50.2% 89.9% 78.4% 48.5% 89.0% 2014 2015 2016 2017 2018 2Q19 2Q19 2014 2015 2016 2017 2018 2Q19 3Q19 2014 2015 2016 2017 2018 2Q19 3Q19 NOI Margin AFFO Margin EBITDA Margin 5
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