Deutsche Bank Mexico, S.A., Institución de Banca Múltiple, Trust Division F/1616 or Fibra Inn (BMV:FINN13), a Mexican real estate investment trust specializing in the hotel industry serving the business traveler, announced its Fourth Quarter results for the period ended December 31, 2013 (“4Q13”). These results were prepared in accordance with International Financial Reporting Standards (“IFRS”) and are stated in nominal Mexican pesos (Ps.).
Fourth Quarter 2013 Financial Highlights
- In terms of Sales Store Sales for the 18 hotels in the portfolio:
- Occupancy: 62.1%; representing an increase of 0.8 pp.
- Average Daily Rate (“ADR”): Ps. 994.5; representing an increase of 3.8%.
- Revenue per Available Room (“RevPar”): Ps. 617.8; representing an increase of 5.2%.
- Total Hotel Revenue reached Ps. 198.7 million, as follows:
- Rooms Revenue: Ps. 164.7 million (82.9% of Total Hotel Revenues).
- Food, Beverage and Others: Ps. 34.0 million (17.1% of Total Hotel Revenues).
- Total Revenue for the FIBRA: Ps. 82.9 million.
- Rental revenue: Ps. 63.7 million.
- NOI1: Ps. 70.0 million, representing a margin of 35.2% over Hotel Revenues.
- Net Income: Ps. 25.8 million, which includes non-monetary charges for Ps. 40.7 million.
- FFO2: Ps. 66.5 million.
- Distributions to Holders: Ps. 61.7 million; equivalent to Ps. 0.2388 per CBFI3 for a dividend yield of 5.8%4.
- Fibra Inn concluded 2013 with 18 hotels under operation, representing 3,340 rooms, including 304 under construction.
- Acquisitions and Recent Events:
- Acquisitions: Holiday Inn México Coyoacan – Full Service Segment – 214 Rooms.
- Recent Events:
- The Company announced and implemented a change in the revenue structure, where hotel lodging services will be included and billed directly by Fibra Inn. For the remaining services, the Company will receive a fixed rent plus a variable component from the rental of space.
- Fibra Inn received two VAT refunds for a total of Ps. 363.2 million, from the contributions and acquisition of properties.
- At December 31, 2013:
- Cash: Ps. 385.6 million.
- Equity: Ps. 4,594.5 million.
2 FFO is calculated as the net result plus the non-monetary charges (depreciation and executive compensation).
3 Calculated by using 258,334,218 CBFIs outstanding on December 31, 2013.
4 Calculated by using the closing price of Ps. 16.56 per CBFI on February 25, 2014.
Statement from Victor Zorrilla, Chief Executive Officer
“During 2013, Fibra Inn grew 29.8% in terms of number of rooms, we paid the highest dividend yield in the hotel sector, and we expanded our geographic diversification reaching a presence in 12 Mexican states. Moreover, we added the full service and limited service segments to Fibra Inn’s hotel portfolio. Currently, we operate in our portfolio 5 international hotel chain brands and 1 local brand; including Marriot, Wyndham Garden, Aloft and Camino Real, in addition to the brands that we already operated: Hampton Inn by Hilton and Holiday Inn. Our strategy will continue to be focused at achieving the highest operating efficiency in the sector, dividend distributions that are above the risk free rates, sustained portfolio growth and brand diversification for our clients. On December 19, 2013, Fibra Inn’s Technical Committee decided to make changes to the revenue structure. As we expected, upon application of the new structure, this modification had a minimal impact on our NOI. This decision confirms our commitment to transparency with the market.”
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