Q3 2024 Macquarie Mexico Real Estate Management SA de CV Earnings Call Transcript
Key Points
- FIBRA Macquarie (DBMBF) reported record NOI and NAV in US dollar terms, highlighting strong financial performance.
- Revenue increased by 6.0% year over year, contributing to a 6.8% rise in NOI, showcasing sustained earnings momentum.
- The company upgraded its full-year outlook due to robust year-to-date performance, indicating confidence in future growth.
- The industrial development program is a cornerstone of value creation, with projects delivering within or above the target NOI yield range of 9% to 11%.
- The retail portfolio showed positive momentum with occupancy increasing to 93% and rental rates up 5.4% annually, resulting in a 7.9% NOI increase year over year.
- Challenges related to energy and infrastructure availability in the Mexico industrial real estate sector are limiting new supply.
- There was a slight drop in occupancy sequentially, attributed to a wait-and-see mode due to the political cycle.
- Higher interest expenses and nonrecurring transaction costs partly offset the growth in AFFO.
- The northern markets, such as Juarez and Tijuana, are experiencing some softness, with market occupancy levels below the company's average.
- The underwriting range for new development opportunities is closer to the lower end of the 9% to 11% target, indicating potential pressure on future returns.
Good morning and welcome to FIBRA Macquarie's third quarter, 2024 earnings call and webcast. My name is Diego and I will be your operator for this call. At this time all participants are in a listen-only mode (Operator Instructions)
I would now like to turn the conference over to Nikki Sacks. Please go ahead.
Thank you and hello everyone. Thank you for joining FIBRA Macquarie's third quarter, 2024 earnings conference call and webcast. Today's call will be led by Simon Hannah, our Chief Executive Officer; and Andrew McDonald-Hughes, our CFO.
Before I turn the call over to Simon, I would like to remind everyone that this presentation is proprietary and all rights are reserved. The presentation has been prepared solely for informational purposes and is not a solicitation or an offer to buy or sell any securities, forward-looking statements in this presentation are subject to a number of risks and uncertainties, actual results, performance prospects or opportunities
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