April 2019
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 It may not be reproduced or redistributed to any other person, and it may not be published, in whole or in part, for any purpose.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 attending this presentation or by accepting to view any of the materials presented, you agree to be bound by the foregoing limitations. 2
Key investment highlights Proven track record delivering consistent and stable operating and 1 financial results Best-in-class industrial portfolio in strong growing markets and 2 sectors 3 Resilient portfolio with diversified high-quality tenant base 4 Sound capital structure World-class corporate governance, experienced internal management 5 team and strong sponsorship from PGIM Real Estate 3
Leading industrial REIT in Mexico 1 Highest-quality portfolio of a pure-play industrial REIT with solid fundamentals Key Metrics Terrafina Overview l ~97% US$-denominated leases (2) and Industrial Properties Average Portfolio Age the majority structured as triple-net 287 12 years providing Terrafina with stable US$- denominated cash flows GLA 2018 Occupancy Rate 41.1MM ft 2 95.3% l Diversified high-growth portfolio with exposure to the most relevant industrial Rent per ft 2 2018 Rental Revenues real estate markets in Mexico US$5.15 (1) ~US$191MM l Investment Grade balance sheet with Diversification across Mexico proven access to public and private debt markets Highlights by region as of 4Q18 l Strong sponsorship by PGIM RE: North Bajio Central Total ~US$168.4Bn (3) of AUM globally and one of the longest-standing industrial 201 56 30 287 # of Buildings real estate managers in Mexico # of Tenants 200 57 38 295 25.6 9.3 6.3 41.1 GLA (MM ft 2 ) Land Reserves 2.6 0.2 3.3 6.1 (MM ft 2 ) 97.5% 91.5% 91.8% 95.3% Occupancy Rate Average Annualized North 62.3% 5.08 5.21 5.34 5.15 US$ Rent per ft 2 Bajio 22.5% Annualized Rental 62.8% 21.9% 15.2% 100.0% Central 15.2% Base Source Terrafina filings Notes 1. As of 4Q18 4 2. As a % of 4Q18 GLA of 41.1MM ft 2 3. Figures as of December 31, 2018. Combined gross assets under management and administration across its PGIM Real Estate and PGIM Real Estate Finance businesses.
1 Delivering results enhancing our growth strategy Key milestones that propelled and support our growth story Current GLA: 41.1 MM ft 2 2018 • Acquisition in April 2018, two industrial properties with a GLA of 0.3MM ft 2 2018 (1) 2016 • Refinancing of US$150MM 2017 2014 • ~US$460MM 2016 FO offering 2013 2003 – 2011 2017 • ~US$713MM IPO • PGIM raised two industrial funds 2015 • Acquisition in January 2017 , 51 industrial properties with a GLA of 6.3MM ft 2 2014 2015 • Refinancing of US$500MM • ~US$101MM asset recycling 2013 • US$317MM FO offering strategy • Acquisition in September/December 2011 • Acquired 10 industrial properties 2013 2017, 25 industrial properties with a GLA of 2003 with a GLA of ~1.1MM ft 2 3.8MM ft 2 • Acquisition in • Debut in international debt September 2013, capital markets with a 7-year 84 properties with unsecured bond issue of 2011 a GLA of 11MM US$425MM • PGIM completes ft 2 • Investment grade from FITCH & 19.9MM ft 2 of ndustrial Moody’s assets 5 Source 1. PGIM Real Estate (“PGIM”) is the global real estate investment business unit of Prudential Financial, Inc.
Optimal growth strategy 1 Five-year results Aquisitions US$1,348 MM New Terrafina Aquisitions Development New Development US$102 MM growth Execute Accretive focus Acquisitions Dispositions US$101 MM (1) 2013 2018 △ % △ % Dispositions YE 2013 2018 191.0 104.5% Rental Revenue 75.0 287 117.4% Industrial Properties 132 190.0 120.7% NOI 69.9 Gross Leasable Area 41.1 106.8% 19.9 (million square foot) 170.9 131.6% EBITDA 59.2 95.3% 560 bps Occupancy 89.7% AFFO 32.6 111.1 159.6% Annualized avg. rental 5.15 12.0% 4.60 Distributions per CBFI rate/ square foot (dollars) 0.1407 20.4% 0.0920 (dollars) Value creation strategy aligned to the industrial real estate cycle + Acquisitions / Raise capital CBFI New development (expansions / BTS) Price to t NAV New development (expansions / BTS) - Asset Recycling / CBFI Buyback program 6 Source Terrafina filings. Past performance is not a guarantee or reliable indicator of future results. 1. 2013 numbers include 1Q13 estimate results for the full quarter.
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