FIBRA Macquarie México Reports Second Quarter 2025 Results

Business Wire

2 days ago

MEXICO CITY--(BUSINESS WIRE)--FIBRA Macquarie México (FIBRAMQ) (BMV: FIBRAMQ) announced its financial and operating results for the second quarter ended June 30, 2025.
SECOND QUARTER 2025 HIGHLIGHTS
Total Industrial portfolio leasing activity comprised 1.3 million square feet of GLA, including early renewals of 424 thousand square feet
Solid tenant retention rates of approximately 80% across Industrial and Retail portfolios
Consolidated 2Q25 NOI up 18.1% YoY in Peso terms
Consolidated 2Q25 AFFO up 23.3% YoY in Peso terms
'We are proud to report another quarter of strong performance, highlighted by record results across multiple metrics, including AFFO per certificate that was up 8.6% in underlying US dollar terms, to US$30.3 million,' said Simon Hanna, FIBRA Macquarie's chief executive officer. 'Our industrial portfolio continues to demonstrate remarkable strength, achieving record leasing renewal spreads of 27.7%, and the continued demand for space in our markets is reflected in our solid retention and rental rate growth across both our industrial and retail portfolios. On the growth capex front, we are particularly excited about our expanded development program in Tijuana, which represents an attractive opportunity with plans for four Class A buildings totaling approximately 750 thousand square feet. This strategic investment aligns with our long-term vision for sustainable growth in key markets.'
Mr. Hanna continued, 'Through our prudent financial management, we have maintained our strong balance sheet position, with ample liquidity and prudent leverage. While we remain mindful of broader economic uncertainties, Mexico maintains a key strategic position within North American supply chains. We continue to successfully navigate the current market conditions, while pursuing selective growth opportunities and maintaining our commitment to disciplined capital allocation. With our reaffirmed full-year US dollar AFFO and distribution per CBFI guidance, we are confident in our ability to deliver sustained value for our certificate holders.'
CAPITAL ALLOCATION
FIBRAMQ continues to pursue a strategy of investing in and developing Class A industrial assets in core markets that demonstrate strong performance and a positive economic outlook.
Industrial Portfolio Growth Capex Program
FIBRAMQ has approximately 600 thousand square feet of GLA in stabilization. No new building construction starts were commenced during the quarter.
The forecast 2025 cash investment for the industrial development program continues to be in a range of US$50.0 million to US$100.0 million. FIBRAMQ remains disciplined in its capital deployment as it stabilizes recent deliveries and maintains an attractive future growth pipeline. FIBRAMQ continues to target a NOI development yield on cost between 9.0% and 11.0%, which incorporates the highest sustainability standards and is designed to generate embedded operational efficiencies for its customers.
Projects in process are summarized below. For further details regarding recently delivered projects, please refer to the Supplementary Information materials located at BMV Filings (fibramacquarie.com).
Industrial Development Projects in Process
Guadalajara, Jalisco
FIBRAMQ continues to make progress in pre-development works including obtaining initial permits, licenses and commencement of initial infrastructure works for the first building comprising 330 thousand square feet of GLA
FIBRAMQ anticipates developing two Class A buildings in this park over time, with a total GLA of approximately 460 thousand square feet
Apodaca, Nuevo León
FIBRAMQ is marketing for lease a 200 thousand square foot property that was delivered during 3Q24
Tijuana, Baja California
FIBRAMQ is marketing for lease a 385 thousand square foot property that was delivered during 2Q25
FIBRAMQ has entered into a 50-50 joint venture to develop an industrial park in the prime Pacifico/Libramiento submarket of Tijuana. The project will feature up to four Class A industrial buildings, totaling approximately 750 thousand square feet of GLA with pre-development works, including obtaining initial permits and licenses, and commencement of initial infrastructure works underway
FINANCIAL AND OPERATING RESULTS
Consolidated Portfolio
FIBRAMQ's consolidated 2Q25 results were as follows:
Industrial Portfolio
The following table summarizes 2Q25 results for FIBRAMQ's industrial portfolio:
FIBRAMQ's industrial portfolio performance remains robust, with growing average rental rates and sustained retention. For the quarter ended June 30, 2025, FIBRAMQ's industrial portfolio delivered NOI of US$51.1 million, a 6.0% increase YoY.
Total leasing activity comprised 1.3 million square feet, including 120 thousand square feet of new leases. Renewal leases comprised 14 contracts across 1.1 million square feet, driving a retention rate of 93.2% for the quarter and 80.1% over the last 12 months.
For the remainder of the year, FIBRAMQ's industrial portfolio scheduled lease expirations, including expired leases in regularization, total 4.8% of annualized base rents.
Retail Portfolio
The following table summarizes the proportionally combined 2Q25 results for FIBRAMQ's retail portfolio:
FIBRAMQ signed 54 new and renewal leases during the quarter totaling 11.5 thousand square meters of GLA, across a diverse range of tenants. The retail portfolio has a retention of 77.8% over the last twelve months.
Of note, retail portfolio occupancy of 93.4% represents a post-pandemic record.
Lease Rental Rate Summary
Based on annualized base rents, leases in FIBRAMQ's consolidated portfolio is now 71.2% linked to either Mexican or US CPI, representing an increase of 525 bps over the last twelve months.
In the Industrial portfolio, FIBRAMQ achieved a weighted average positive releasing spread of 27.7% in respect of 2Q25.
During the prior 12-month period, FIBRAMQ achieved a weighted average lease spread of 22.0% in respect of commercially negotiated lease renewals generating US$33.2 million of annualized base rent.
For further details about FIBRA Macquarie's Second Quarter 2025 results, please refer to the Supplementary Information materials located at BMV Filings (fibramacquarie.com).
Replacement of Trustee
As previously announced, FIBRAMQ replaced CIBanco, S.A., Institución de Banca Múltiple ('CIBanco') with HSBC México, S.A., Institución de Banca Múltiple, Grupo Financiero HSBC, as FIBRA trustee effective July 18, 2025.
BALANCE SHEET
At June 30, 2025, FIBRAMQ had US$1,230.2 million of debt outstanding and total liquidity of US$420.9 million comprising US$228.8 million available on its undrawn committed revolving credit facilities as well as US$192.1 million of unrestricted cash on hand. FIBRAMQ's indebtedness is 85.0% fixed rate, with 3.0 years of weighted average tenor remaining.
As of June 30, 2025, FIBRAMQ's CNBV regulatory debt to total asset ratio was 33.7% and debt service coverage ratio was 6.3x.
CERTIFICATE REPURCHASE PROGRAM
FIBRAMQ has a Ps. 1,000 million CBFI repurchase-for-cancellation program available through to June 25, 2026. No certificates were repurchased during the quarter.
SUSTAINABILITY
At June 30, 2025, FIBRA Macquarie's green building certification coverage represented 41.8% of consolidated GLA, representing an increase of 481bps YoY.
The sustainability and green financing linked portion of drawn debt stands at 68.3%
DISTRIBUTION
FIBRAMQ declared a cash distribution of Ps. 0.6125 per certificate for the quarter ended June 30, 2025. The distribution is expected to be paid on or about September 26, 2025, to holders of record on September 25, 2025. FIBRAMQ's certificates are expected to commence trading ex-distribution on September 25, 2025.
FY25 GUIDANCE
AFFO
FIBRA Macquarie is reaffirming its FY25 AFFO guidance in underlying US dollar terms to a range of US$115.0 million to US$119.0 million, representing an annual increase of between 1.0% and 5.0%. FIBRAMQ maintains a cautious outlook on operational performance for 2025, and this guidance assumes no material deterioration of the geopolitical landscape or Mexico's key trading relationships.
This guidance assumes: an average exchange rate of Ps. 18.50 per US dollar for the remainder of 2025;
no new acquisitions or divestments;
no issuances or repurchases of certificates;
no deterioration in broader economic and market conditions, including the potential implementation of tariffs or deterioration in the trade relationship with key trading partners
Following the recent appreciation of the Peso relative to the US dollar, FIBRAMQ is updating its FY25 AFFO per certificate guidance to a range of Ps. 2.80 to Ps. 2.85.
Cash Distribution
FIBRAMQ is reaffirming guidance for cash distributions in FY25 of Ps. 2.45 per certificate, paid in equal quarterly instalments of Ps. 0.6125 per certificate.
The FY25 per certificate cash distribution guidance equates to an annual increase of 16.7% in Peso terms, with an expected FY25 AFFO payout ratio of approximately 87.0%, based on the AFFO guidance midpoint. In underlying USD terms, the FY25 cash distribution guidance equates to approximately US$101 million, representing an annual increase of 10.8%.
The payment of distributions is subject to the approval of the Manager, stable market conditions and prudent management of FIBRAMQ's capital position.
Outstanding certificates
FIBRA Macquarie had 797,311,397 outstanding certificates as of June 30, 2025.
WEBCAST AND CONFERENCE CALL
FIBRAMQ will host an earnings conference call and webcast presentation on Friday, July 25, 2025, at 11:00 a.m. CT / 13:00 p.m. ET. The conference call, which will also be webcast, can be accessed online at www.fibramacquarie.com or by dialing toll free [phone]. Callers from Mexico may dial 01-800-522-0034 and other callers from outside the United States may dial [phone]. Please ask for the FIBRA Macquarie Second Quarter 2025 Earnings Call. An audio replay will be available by dialing [phone] or [phone] for callers from outside the United States. A webcast archive of the conference call and FIBRA Macquarie's financial information for the second quarter 2025 will also be available on FIBRAMQ's website, www.fibramacquarie.com.
About FIBRA Macquarie
FIBRA Macquarie México (FIBRA Macquarie) (BMV:FIBRAMQ) is a real estate investment trust (fideicomiso de inversión en bienes raíces), or FIBRA, listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores) targeting industrial, retail and office real estate opportunities in Mexico, with a primary focus on stabilized income-producing properties. FIBRA Macquarie's portfolio consists of 243 industrial properties and 17 retail properties, located in 20 cities across 16 Mexican states as of June 30, 2025. Nine of the retail properties are held through a 50/50 joint venture. For additional information about FIBRA Macquarie, please visit www.fibramacquarie.com.
Cautionary Note Regarding Forward-looking Statements
This release may contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ significantly from these forward-looking statements and we undertake no obligation to update any forward-looking statements.
Other than Macquarie Bank Limited ABN 46 008 583 542 ('Macquarie Bank'), any Macquarie Group entity noted in this document is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities. In addition, if this document relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.
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