MEXICO CITY, MX / ACCESSWIRE / October 28, 2019 / GRUPO GICSA, S.A.B. de C.V. (“GICSA” or “the Company”) (BMV:GICSA), a leading Mexican company specialized in the development, investment, commercialization and operation of shopping malls, corporate offices, and mixed use properties, announced today its results for the third quarter (“3Q19”) and nine-month (“9M19”) periods ended in September 30, 2019.
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 be adjusted in the future.
- On September 26, the Company carried out the opening of Explanada Pachuca, a property that will add 75,022 square meters of GLA to the Company’s portfolio. 120 stores were opened during the inauguration and, at 3Q19, 91% of the commercial spaces are under contract. This property will start reporting revenues beginning in 4Q19.
- Beginning this quarter, revenue generated by Cero5Cien was recognized in the Income Statement. The revenue recognition method is in accordance with IFRS 15, which states that revenue recognized will only be that generated by the units sold and according to the percentage of progress of the amount invested in these units. Therefore, in this quarter the Company presented accumulated revenue, adding Ps. 425 million to the Company’s EBITDA.
- As we recently announced, GICSA is actively evaluating alternatives to refinance a portfolio of 9 properties in order to improve its maturity profile and liquidity. Furthermore, the Company is reviewing options for the sale of a stabilized asset from the mixed portfolio.
- GICSA reported a total of 911,683 square meters of GLA comprised of 16 properties in operation at the conclusion of 3Q19. GICSA’s proportional GLA was 84.7%, equivalent to 772,570 square meters. This represented an increase of 9.8% of total GLA and 12.0% of proportional GLA, compared to 3Q18.
- As of 3Q19, the occupancy rate of the stabilized portfolio was 91.4%, and including the properties in stabilization process, the occupancy rate reached 88.8%.
- Average leasing rate per square meter of the stabilized portfolio at the close of 3Q19 was Ps. 367 and Ps. 353 in the total portfolio.
- GICSA registered an accumulated occupancy cost of 9.6% in 9M19, and an increase in same-store sales of 3.9% during the same period.
- At the close of 3Q19 GICSA had a total of 18 million of visitors in the portfolio’s shopping malls, an increase of 23.84% compared to 3Q18.
- Consolidated Net Operating Income (NOI) reached Ps. 816 million in 3Q19, an increase of 29% compared to 3Q18. GICSA’s proportional NOI reached Ps. 653 million, an increase of 30% compared to 3Q18.
- Consolidated EBITDA was Ps. 1,133 million in 3Q19, a 124% increase of compared to 3Q18. GICSA’s proportional EBITDA reached Ps. 970 million, an increase of 91% compared to 3Q18. Consolidated EBITDA, excluding the effect of revenue from Cero5Cien, would increase 40%
- At the close of 3Q19, net income was Ps. 602 million; while GICSA’s proportional net income was Ps. 470 million.
- Consolidated debt at the close of 3Q19 was Ps. 25,134 million; while GICSA’s proportional debt was Ps. 22,562 million. LTV was 37.3%.
- During this quarter, the Company refinanced the Explanada Pachuca bank loan, which changed from a construction loan to a simple credit loan, improving the financing cost by 65 basis points from a TIIE plus 340 basis points to a TIIE plus 275 basis points. As of 3Q19, the outstanding balance was Ps. 920 million with maturity on April 2026.
- During 3Q19, the commercialization of properties under development and in stabilization reached progress of 75 signed contracts, representing 13,529 square meters, while for the portfolio under operation and development 330 contracts were signed as of September 2019.
- Lomas Altas and Explanada Culiacán reached a construction progress of 97% and 79%, respectively.
- The construction phase for the Lomas Altas project concluded; the pending 3% corresponds to finishes, which will be finalized upon the final contract with an anchor tenant, which is currently underway.
For a full version of GICSA’s Third Quarter 2019 Earnings Release, please visit:
GICSA cordially invites you to its Third Quarter 2019 Conference Call
Tuesday, October 29, 2019
1:00 PM Eastern time
11:00 AM Mexico City Time
Presenting for GICSA:
Diódoro Batalla, Chief Financial Officer
Avril Carenzzo – Treasury and Investor Relation Officer
To access the call, please dial:
1 (877) 830 2576 U.S. participants
1 (785) 424 1726 International participants
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, 2019, 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) 911,683 square meters, and a Proportional GLA of 772,570 square meters. Since June 2015, GICSA is listed on the Mexican Stock Exchange under the ticker (BMV: GICSA B).
Investor Relations Contact:
Tel: +52 (55) 5148 0400 Ext. 4609
Tel: +52 (55) 5148 0402
SOURCE: GRUPO GICSA, S.A.B. DE C.V.
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