GISCA Announces Consolidated Results for Third Quarter 2022

Thursday, 27 October 2022 05:05 PM

Topic: 

Earnings

MEXICO CITY, MEXICO / ACCESSWIRE / October 27, 2022 / GRUPO GICSA, S.A.B. de C.V. ("GICSA" or "the Company") (BMV:GICSA), a leading Mexican company specializing in the development, investment, commercialization and operation of shopping malls, corporate offices and mixed-use properties, announced today its results for the third quarter ("3Q22") and for the ninth months ("9M22") period ended September 30, 2022.

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 and therefore may be subject to adjustments in the future.

Main Highlights

Corporate

  • During this quarter, as part of the strategies being implemented to reposition GICSA for long-term success and improve its financial position, the Company recently undertook the following measures:
    • In October, GICSA successfully completed the restructuring of its preferred equity instruments (Junior notes) issued in December 2019, as part of the Arcade portfolio. GICSA used the remaining proceeds from the sale of Lomas Altas property, to reduce the amount of the holders of these notes by Ps. 1,150 million.
    • Additionally, GICSA canceled the position that previously acquired, for approximately Ps. 455 million, reducing the amount of Junior notes by Ps. 1,605 million, to an outstanding balance of approximately Ps. 1,784 million. This represents a reduction of approximately 48% of the remaining outstanding balance before said restructuring.
    • Likewise, the interest rate was lowered to 12.9% from 15% and the maturity was extended to May 2028, subject to the fulfillment of certain conditions
  • In August, the Company signed an agreement to extend the maturity of the Explanada Culiacán loan by approximately 4 years to July 2028.

Operational

  • At the close of 3Q22, GICSA reported a total of 951,362 square meters of Gross Leasable Area (GLA) comprised of 17 properties in operation. Proportional GLA was 85%, equivalent to 811,781 square meters, decreases of 4% in total GLA and 5% in proportional GLA, compared to 3Q21. This was due to the sale of the Lomas Altas property.
  • During 3Q22, 51 new commercial spaces began operations, representing 15,352 square meters in relation to the portfolio in operation, an increase of 224% compared to 3Q21.
  • During 3Q22, 72 new leases were signed, representing 12,950 square meters of the total portfolio, an increase of 39% compared to 3Q21.
  • At the close of 3Q22, the occupancy rate in the total portfolio was 85%, and the adjusted occupancy rate was 83%.
  • At the close of 3Q22, the average rent per square meter within the portfolio in operation was Ps. 376, an increase of 1%, compared to 3Q21.
  • During 3Q22, the number of visitors to the shopping malls within the portfolio in operation reached 17 million, an increase of 34% compared to 3Q21. The number of visitors was 95% of the pre-pandemic 3Q19 level.

Financial

  • Total revenue after the proportional recognition of the tenant Covid-19 support program was Ps. 941 million in 3Q22, an increase of 1% compared to 3Q21.
  • Consolidated and proportional NOI in 3Q22, were Ps. 753 million and Ps. 618 million, respectively, decreases of 1% and 4%, respectively, compared to 3Q21.
  • Consolidated and proportional EBITDA in 3Q22, were Ps. 744 million and Ps. 608 million, respectively, increases of 6% and 4%, respectively, compared to 3Q21.
  • Total consolidated and proportional debt at the close of 3Q22 were Ps. 28,858 million and Ps. 26,349 million, respectively, increases of 3%, compared to 3Q21 and 2% compared to 2Q22. At the close of 3Q22, consolidated LTV was 39%.

Pipeline

  • At the close of 3Q22, the commercialization of properties under development and in stabilization (Explanada Culiacán, Masaryk 169 and Grand Outlet Riviera Maya) totaled 68,946 square meters, which represented 59% of the GLA.
  • To date, 61 units of the Cero5Cien residential project have been sold, corresponding to 58% of the Gross Saleable Area (GSA), of which 21 units have been delivered to buyers to initiate the finishing work.

For a full version of GICSA's Third Quarter 2022 Earnings Release, please visit:

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

Conference Call

GICSA cordially invites you to its Third Quarter Conference call

Friday, October 28, 2022
12:00 PM Eastern time
11:00 AM Mexico City Time

Presenting for GICSA:

Isaac Cababie - Deputy Executive Director
Diódoro Batalla - Chief Financial Officer

To access the call, please dial:

1 (877) 830 2596 U.S. participants
1 (785) 424 1744 International participants

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, 2022, the Company owned 17 income-generating properties, consisting of eleven shopping malls, five mixed use projects (which include five shopping malls, five corporate offices and one hotel), and one corporate office building, representing a total Gross Leasable Area (GLA) 951,362 square meters, and a Proportional GLA of 811,781 square meters. Since June 2015, GICSA is listed on the Mexican Stock Exchange under the ticker (BMV: GICSA B).

Investor Relations Contact:

Claudia Chávez
Tel: +52 (55) 5148 0400 Ext. 4609
Email: [email protected]

Yinneth Lugo, IR
Tel: +52 (55) 5148 0402
Email: [email protected]

SOURCE: Grupo Gicsa, S.A. de C.V.