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, today announced its non-audited Second Quarter results for the period ended June 30, 2014 (“2Q14”). These results were prepared in accordance with International Financial Reporting Standards (“IFRS”) and are stated in nominal Mexican pesos (Ps.).
Second Quarter 2014 Financial Highlights
- Fibra Inn concluded 2Q14 with 23 hotels under operation and 3 developments, representing 4,644 rooms, of which 799 are under construction.
- In terms of Same Store Sales for the 22 comparable hotels1 in the portfolio:
- Room revenues: Ps. 189.1 million; an increase of 0.13% compared to the Ps. 188.8 million in 2Q13.
- Occupancy: 57.5%; a decrease of 5.2pp.
- Average Daily Rate (“ADR”): Ps. 1,002.1; an increase of 7.7%.
- Revenue per Available Room (“RevPAR”): Ps. 576.7; a decrease of 1.2%, due to the 1.3% increase in rooms available from the expansion of the Holiday Inn Express in Playa del Carmen and Guadalajara Autonoma; as well as the seasonal effect of the Easter Break.
- Total Revenue: reached Ps. 203.6 million, broken down as follows:
- Room Revenue: Ps. 192.5 million (95% of total Fibra revenues).
- Rental Revenue: Ps. 11.1 million (5% of total Fibra revenues).
- Net Operating Income (“NOI”)2: Ps. 67.0 million, an increase of 56.9% compared to the Ps. 42.7 million reported in 2Q13. This represented a margin of 32.9% over Fibra revenues, representing a decline of 3.6pp versus 1T14.
- Earnings before interest, taxes, depreciation and amortization (“EBITDA”): Ps. 53.6 million, a 49.1% increase compared to the Ps. 35.9 million reported in 2Q13. This represented a margin of 26.3% over total revenues, representing a 5pp decline versus 1Q14. EBITDA per room was Ps. 14.2 thousand.
- Net Income: Ps. 18.4 million, which includes non-monetary charges of Ps. 30.1 million.
- FFO3: Ps. 48.5 million, which represented a decrease of 16.7% or Ps. 9.7 million compared with 2Q13.
- Distributions to Holders: Ps. 43.5 million; equivalent to Ps. 0.1683 per CBFI4 for a dividend yield of 3.7%5.
- Acquisitions and Recent Events:
- Developments: Fairfield Inn & Suites by Marriott in Ciudad del Carmen (limited service, 180 rooms projected).
- Acquisitions: Aloft Guadalajara (select service, 142 rooms), Wyndham Garden in Silao (limited service, 143 rooms).
- Recent Events:
- 150 new rooms initiated operations in 2 Holiday Inn Express Hotels (99 in Guadalajara Autonoma and 51 in Playa del Carmen) as part of the expansions.
- The Annual Ordinary CBFI Holders Meeting and an Extraordinary CBFI Holders Meeting took place for the approval to increase debt.
- At June 30, 2014:
- Cash: Ps. 339.1 million.
- Bank Debt increased to Ps. 803.2 million, which represents a loan to value equal to 14.5% as well as a coverage ratio for the debt service of 1.1x.
- Equity: Ps. 4,518.8 million.
- CAPEX during the quarter was equal to Ps. 2.8 million.
|1 Of the 23 hotels of the total portfolio, 22 are comparable, excluding Aloft Guadalajara, which is a recently-constructed hotel and, as a result, does not yet have an operating history, although Wyndham Garden Silao was acquired in 2Q13 it is part of the same store sales calculation since it was part of the portfolio for over half of the quarter.|
|2 NOI is the calculation of the Fibra’s revenue (rent and other revenue) minus operating expenses for administration, maintenance, lodging, utilities, fees, royalties, marketing and promotion, as well as property tax and insurance.|
|3 FFO is calculated as the net result plus the non-monetary charges (depreciation and executive equity-based compensation).|
|4 Calculated using 258,334,218 CBFIs outstanding on June 30, 2014.|
|5 Calculated using the closing price of Ps. 18.26 per CBFI on June 30, 2014.|
Statement from the President of the Technical Committee
“Since the Initial Public Offering, Fibra Inn established an objective of reaching a portfolio of 30 hotels by the end of 2014, and we are well on our way to achieve the goal. Our acquisitions team continues to evaluate strategic market opportunities that add value to the portfolio. We are currently analyzing 21 properties with an approximate value of Ps. 2.6 billion, which represent approximately 3,000 rooms. For that reason, we held an extraordinary CBFI Holders meeting on July 18, 2014 in which a bank loan was approved for Ps. 2.3 billion to continue growth with the use of debt,” stated Victor Zorrilla, President of the Technical Committee of Fibra Inn.
Fibra Inn is a Mexican trust formed primarily to acquire, develop, operate and rent a broad range of hotel properties in Mexico. Headquartered in Monterrey, Fibra Inn has a portfolio of high-quality hotels aimed at the business traveler and is geographically-diverse located in 13 states throughout Mexico, with 23 hotels under operation and 3 more under development. The Company has signed Franchise Agreements with IHG to operate its global brands Holiday Inn, Holiday Inn Express, and Holiday Inn Express & Suites; additionally it has agreements to license and operate its brand Hampton Inn by Hilton and with Starwood Hotels & Resorts Worldwide to operate the Aloft brand. Additionally, Fibra Inn has agreements with IHG, Marriott International and Wyndham Hotel Group. These hotels enjoy some of the industry’s top loyalty programs and, offer attractive hotel options for business travelers. Fibra Inn recently listed its Real Estate Trust Certificates (Certificados Bursátiles Fiduciarios Inmobiliarios or “CBFIs”) on the Mexican Stock Exchange and trades under the ticker symbol “FINN13”.
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