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2020-10-27

EQS-News: GRUPO GICSA, S.A.B. DE C.V.: GICSA ANNOUNCES CONSOLIDATED RESULTS FOR THIRD QUARTER 2020

GRUPO GICSA, S.A.B. DE C.V.: GICSA ANNOUNCES CONSOLIDATED RESULTS FOR THIRD QUARTER 2020

, 10/27/2020 / 15:31, EST/EDT - EQS Newswire - GRUPO GICSA, S.A.B. DE C.V.


MEXICO CITY, MEXICO / ACCESSWIRE / October 27, 2020 / GRUPO GICSA, S.A.B. de C.V. ("GICSA" or "the Company") (BMV:GICSA), a Mexican leading company specialized in the development, investment, commercialization and operation of shopping malls, corporate offices, industrial buildings and mixed use properties, announced today its results for the third quarter ("3Q20") and for the ninth months ("9M20") period ended September 30, 2020.

All figures have been prepared in accordance with International Financial Reporting Standards ("IFRS") and are stated in millions of Mexican pesos (Ps.). GICSA's financial results presented in this report are unaudited; therefore, figures mentioned throughout this report may present adjustments in the future.

Main Highlights

Corporate

  • On October 29, the opening of Explanada Culiacán will take place, a property with more than 50,000 square meters of GLA. As of to date, 69% of the contracts were signed representing 52% of the total GLA, with important brands such as: Cinemex, Suburbia, Coppel and Axo Group.
  • Aligned to the reduction of epidemiological risk, this quarter the authorities of each locality allowed the opening of new business lines, such as the opening of entertainment businesses in some states and relaxed restrictions in business hours. To date more than 80% of our commercial spaces are operating.
  • Traffic in our shopping malls and sales of our clients are beginning to experience signs of recovery. At the end of the quarter, traffic reached 50% and sales of our clients reached 60%, compared to 3Q19 levels, while compared to 2Q20 the increases were 166% and 433%, respectively.
  • As of September 30, we signed 920 agreements under our Covid-19 support program for tenants for a total of Ps. 266 million in credit notes, which correspond to approximately 8% of the annual fixed rent. We estimate that given the extent of the pandemic in July and August, this amount would reach between 12% to 15% of annual rent once all negotiations are concluded. These agreements will take effect only if the tenants regularize their debts and payments as of 1Q21.
    • The discounts are recognized in the income statement according to IFRS 16, which states that any modification and/or discount to a leasing contract related to Covid-19 contingency, will be recognized in accordance with the remaining term of each contract. In 3Q20 and 9M20, Ps. 38 million and Ps. 64 million were recognized in the income statement, respectively, and the remaining will be gradually amortized.
    • With these agreements we were able to recover 66% of collections, an increase of 10% compared to 2Q20. The recovery rate in offices was 82%, while in shopping centers was 58%.
    • This quarter, in addition to the proportional recognition of the Covid-19 support program, we added an estimate of non-performing accounts receivable amounting to Ps. 41 million. This effect is reflected in operating expenses and subtracted from NOI.

Operational

  • GICSA reported a total of 912,068 square meters (m²) of Gross Leasable Area (GLA) comprised of 16 properties in operation at the close of 3Q20. GICSA´s proportional GLA was 85% equivalent to 772,856 square meters.
  • During 3Q20, we opened 28 new doors (4,473 square meters) corresponded to the portfolio in operation, an increase of 2,700% compared to 2Q20.
  • During 3Q20, we signed 43 contracts (8,598 square meters) corresponded to the portfolio in operation, an increase of 1,333% compared to 2Q20.
  • As of 3Q20, the renewal rate of the stabilized portfolio was 98%.
  • As of 3Q20, the occupancy rate of the stabilized portfolio was 90% and 88% of the total portfolio.
  • Average leasing rate per square meter of the stabilized portfolio at the close of 3Q20 was Ps. 392, and Ps. 386 in the total portfolio, an increase of 11% and 9%, respectively, compared to 3Q19.
  • As of 3Q20, lease spread of the shopping malls corresponded to the stabilized portfolio was 4.2%, slightly above inflation.

Financial

  • Total revenue in 3Q20, after the proportional recognition of the Covid-19 support program, was Ps. 1,041 million, an increase of 0.3% compared to 3Q19.
  • Fixed rental revenues in 3Q20, after the proportional recognition of the Covid-19 support program, was Ps. 817 million, an increase of 10% compared to 3Q19.
  • Consolidated and proportional NOI in 3Q20, after the proportional recognition of the Covid-19 support program, was Ps. 835 million and Ps. 690 million, respectively, an increase of 2% and 6%, respectively, compared to 3Q19
  • Consolidated and proportional EBITDA in 3Q20, after the proportional recognition of the Covid-19 support program, was Ps. 792 million and Ps. 648 million, a decrease of 30% and 33%, respectively, compared to 3Q19. This was due to the recognition for the first time on an accumulated basis of Cero5Cien net income for Ps. 425 million in 3Q19. Without considering this extraordinary effect, consolidated and proportional EBITDA increased by 9% and 16%, respectively, compared to 3Q19.
  • Consolidated and proportional debt at the close of 3Q20 was Ps. 25,574 million and Ps. 24,914 million, respectively, a decrease of 7% compared to consolidated debt in 2Q20. Consolidated debt in Pesos decreased by 9% compared to 2Q20, while consolidated debt in US dollars remained the same. Consolidated LTV was 38% in 3Q20, a decrease of 252basis points compared to 2Q20.

Pipeline

  • During 3Q20, the Company signed 10 contracts (2,069 square meters) corresponded to the portfolio under development and in stabilization process, an increase of 900% compared to 2Q20.
  • Explanada Culiacán and Cero5Cien reported work progress rates of 99% and 41%.

For a full version of GICSA's Third Quarter 2020 Earnings Release, please visit:

http://www.gicsa.com.mx/en/investors-relationship/financial-information

Conference Call

GICSA cordially invites you to its Third Quarter 2020 Conference call

Wednesday, October 28, 2020
2:00 PM Eastern time
12:00 PM Mexico City Time

Presenting for GICSA:

Mr. Isaac Cababie, Deputy Executive Director
Diódoro Batalla - Chief Financial Officer
Avril Carenzzo - Treasury and Investor Relations Officer

To access the call, please dial:
1 (877) 830 2576 U.S. participants
1 (785) 424 1726 International participants
001-800- 514-6145 Mexico dial in (Toll free)
Passcode: 44272

About the Company

GICSA is a leading company in the development, investment, commercialization and operation of shopping malls, corporate offices and mixed used well known for their high-quality standards, which transform and create new development spaces, lifestyles and employment in Mexico, in accordance to its history and executed projects. As of September 30, 2020, the Company owned 16 income-generating properties, consisting of ten shopping malls, five mixed use projects (which include four shopping malls, four corporate offices and one hotel), and one corporate office building, representing a total Gross Leasable Area (GLA) 912,068 square meters, and a Proportional GLA of 772,856 square meters. Since June 2015, GICSA is listed on the Mexican Stock Exchange under the ticker (BMV: GICSA B).

Investor Relations Contact:

Avril Carenzzo
Tel: +52 (55) 5148 0400 Ext. 4609
Email: acarenzzo@gicsa.com.mx

Yinneth Lugo
Tel: +52 (55) 5148 0402
Email: ylugo@gicsa.com.mx

SOURCE: GRUPO GICSA, S.A.B. DE C.V.



10/27/2020 EQS Newswire / EQS Group AG



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