MEXICO CITY, April 28, 2020 (GLOBE NEWSWIRE) -- GRUPO GICSA, S.A.B. de C.V. ("GICSA" or "the Company") (BMV: GICSA), a Mexican leading company specialized in the development, investment, commercialization and operation of shopping malls, corporate offices, industrial buildings and mixed use properties, announced today its results for the first quarter ("1Q20") period ended March 31, 2020.
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 present adjustments in the future
Main Highlights
Corporate
- Our administration is focused on preserving liquidity and on maintaining the continuity of the business, under the best conditions and for the benefit of all our shareholders, clients, suppliers and financial creditors. In summary, we are executing the following actions:
- Financial Actions: We are in constant contact with our tenants, suppliers and financial partners to implement support measures that minimize the adverse effects generated by COVID-19 on the continuity of our business. Among others:
- Programs and support plans for our tenants to partially defer fixed rent payments from April, May and June.
- Radical measures to reduce temporary and permanent operating expenses.
- Negotiations with credit institutions, local bondholders and international financial partners, to adapt conditions for diverse financing sources to current circumstances.
- Operational and Health Actions: We are monitoring the progression of the effects of the COVID-19 virus and implementing health protocols, in addition to promptly complying with the health measures enacted and suggested by our authorities, across the different places where we operate. Among other actions:
- We have strengthened our healthcare, cleanliness and precautionary efforts, intensified the monitoring and maintenance of air conditioners and installed anti-bacterial gel stations at the entrances and interiors of our shopping centers.
- We have the right technological support for the continuity of remote operations; thus, all of our office staff are working from home and we are constantly monitoring the health of staff working at the facilities.
- As part of GICSA’s continuous innovation, we recently signed a strategic alliance with RAPPI, a home delivery and buying platform. With this implementation, the users of the application can virtually access GICSA´s nearby shopping centers, make purchases from their favorite shop and receive them in a matter of hours.
- In locations where the authorities have requested closures of establishments, we have promptly abided by these requests. We continue to monitor any changes to guidelines issued by federal and local public health authorities.
Operational
- GICSA reported a total of 911,491 square meters (m²) of Gross Leasable Area (GLA) comprised of 16 properties in operation at the close of 1Q20. GICSA´s proportional GLA was 84.7% equivalent to 772,305 square meters. This represented an increase of 9.0% of total GLA and 10.8% of proportional GLA, compared to 1Q19.
- During 1Q20, the portfolio in operation opened 36 stores and signed 38 additional stores.
- As of 1Q20, the occupancy rate of the stabilized properties was 90.5% and 89.0% of the total portfolio.
- Average leasing rate per square meter of the stabilized portfolio at the close of 1Q20 was Ps. 397, and Ps. 390 in the total portfolio, an increase of 14.9% and 13.0%, respectively, compared to 1Q19.
- GICSA registered an occupancy cost of 11.9% at the close of 1Q20, an increase of 137 basis points compared to 1Q19.
- At the close of 1Q20, GICSA had a total of 17 million of visitors in the shopping malls or the portfolio, an increase of 1.2% compared to 1Q19.
Financial
- Fixed rental revenues were Ps. 815 million in 1Q20, an increase of 13.4% compared to 1Q19.
- Consolidated Net Operating Income (NOI) reached Ps. 955 million in 1Q20, an increase of 16% compared to 1Q19. GICSA’s proportional NOI was Ps. 777 million in 1Q20, an increase of 17% compared to 1Q19, mainly driven by the stabilized properties delivered in 2018 and 2019.
- Consolidated EBITDA reached Ps. 876 million in 1Q20, an increase of 12% compared to 1Q19; while GICSA’s proportional EBITDA was Ps. 697 million, an increase of 12.2% compared to 1Q19.
- At the close of 1Q20, net income before valuation effects was Ps. 801 million, an increase of 10.6% compared to 1Q19.
- Consolidated debt at the close of 1Q20 was Ps. 29,752 million; while GICSA’s proportional debt was Ps. 26,542 million. Consolidated LTV was 40%.
Pipeline
- During 1Q20, the commercialization of properties under development and in operation reached progress of 48 signed contracts, representing 10,304 square meters of GLA, of which 50% of the GLA signed contracts (11 stores) corresponded to the portfolio under development and in stabilization process.
- Explanada Culiacán, Cero5Cien and Gran Outlet Riviera Maya reported work progress rates of 93%, 38% and 31%, respectively.
- As a precautionary measure to preserve the Company's liquidity, as of March 2020, investments in new developments were halted. Explanada Culiacán will be delivered after the contingency and the works of Grand Outlet Riviera Maya and Cero5Cien will continue, but at a slower pace.
For a full version of GICSA’s First Quarter 2020 Earnings Release, please visit:
http://www.gicsa.com.mx/en/investors-relationship/financial-information
Conference Call
GICSA cordially invites you to its First Quarter Conference call
Wednesday, April 29, 2020
12:00 PM Eastern time
11:00 AM Mexico City Time
Presenting for GICSA:
Abraham Cababie – Chief Executive Officer
Mario Martin – Chief Operating Officer
Diódoro Batalla - Chief Financial Officer
Avril Carenzzo – Treasury and Investor Relations Officer
To access the call, please dial:
1 (877) 830 2576 U.S. participants
1 (785) 424 1726 International participants
001-800- 514-6145 Mexico dial in (Toll free)
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 March 31, 2020, 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) 911,491 square meters, and a Proportional GLA of 772,305 square meters. Since June 2015, GICSA is listed on the Mexican Stock Exchange under the ticker (BMV: GICSA B).