Fibra Mty S A P I (FMTY 14) Q2 2024 earnings summary

Executive summary

• Advanced over $400 million in industrial investments, nearing 60% of the $700 million annual target, with additional acquisitions under negotiation and expected to close within 6–9 months.

• Received offers exceeding MXN 650 million for underperforming office properties, representing over half the value of the targeted divestment portfolio, with proceeds to be reinvested in industrial assets or certificate repurchases.

• Daily trading volume nearly doubled to $2 million, achieving high liquidity issuer status on the Mexican Stock Exchange.

• Completed the US$83.3M Aerotech acquisition and signed a binding agreement for the US$199.1M Batach portfolio, expanding the portfolio to 112 properties with 1.74M m² GLA and 96.1% occupancy.

• On track to meet or exceed the high end of 2024 guidance for the tenth consecutive year, with expected annual return and dividend yield above 9.5%.

Financial highlights

• Gross income rose 5.6% year-over-year to Ps. 626.4M in 2Q24; NOI increased 3.7% to Ps. 561.6M, with a margin of 89.7%.

• FFO and AFFO surged 44.1% and 44.6% YoY, respectively, mainly due to higher financial income from March 2024 equity issuance.

• Annualized AFFO per share for H1 2024 above MXN 0.93, at the high end of guidance; 2Q24 distribution: Ps. 585.6M (Ps. 0.238 per CBFI), annualized yield of 8.3%.

• Dividend yield above 9.5% at current share price.

• Investment properties value increased from Ps. 27.1B to Ps. 31.1B, driven by acquisitions, expansions, and valuation gains.

Outlook and guidance

• Confident in securing binding agreements for remaining industrial investments within 6–9 months.

• Guidance for 2024 remains at the high end, with continued focus on accretive acquisitions, share buybacks, and AFFO per CBFI increase of over 150 bps above three-year weighted inflation.

• Challenges include lease maturities representing 12.6% of revenues in 2024 and competitive cap rates in the industrial segment.