FibraHotel (“FibraHotel”), the first real estate investment trust specialized in hotels in Mexico, announces its financial results corresponding to the fourth quarter of 2020.
Mexico City, February 17th, 2021 --- FibraHotel (BMV: FIHO 12), the first real estate investment trust specialized in hotels in Mexico announces its financial results corresponding to the fourth quarter of 2020. Except where noted, all figures included herein were prepared in accordance with IFRS and are stated in nominal Mexican pesos.
2020 Fourth Quarter Highlights • FibraHotel ended the fourth quarter of 2020 with 86 hotels and 12,5581 rooms, of which 81 hotels and 11,9391 rooms are in operation. • For the Total FibraHotel Portfolio of 801 properties (excluding the five hotels that are currently closed and the Fiesta Americana Condesa Cancun hotel), average daily rate (“ADR”) was Ps. $1,076, occupancy was 36.0% (versus 63.0% of the fourth quarter of 2019) and revenue per available room (“RevPAR”) was Ps. $388 representing a (50.9%) decrease against the fourth quarter of 2019 of Ps. $789 (in the fourth quarter of 2019 FibraHotel´s Total Portfolio consisted of 85 hotels2). • The Fiesta Americana Condesa Cancun hotel had a Net Package ADR3 of Ps. $4,074, occupancy was 50.3%, and Net Package RevPAR was Ps. $2,048. FibraHotel received lease revenue from the property of Ps. $25.9 million during the quarter. • Total revenues for the quarter were Ps. $545 million. • Lodging contribution4 for the quarter was Ps. $134 million. • Funds from operations (“AMEFIBRA FFO”)5 for the quarter was (Ps. $38.2 million). • Adjusted funds from operations (“AFFO”)6 for the quarter were (Ps. $38.2 million. • As of December 31st, 2020, FibraHotel had a cash position of Ps. $460 million, a debt position of Ps. $4,916 million, and a net debt position of Ps. $4,456 million. • As of December 31st, 2020, total owners´ equity was Ps. $11,459 million.
1 There are five hotels temporarily closed; Limited Service Coatzacoalcos, Limited Service Saltillo, Selected Service Ciudad Obregón, Selected Service León and Cacao Playa del Carmen. In total they represent 619 rooms and they are excluded from the operational KPIs of the quarter. 2 The Fiesta Americana Viaducto hotel opened in November 2019. Five hotels temporarily closed since March, 2020. 3 Fiesta Americana Condesa Cancun is measured with All Inclusive Indicators, considering the package of room and food & beverage. These metrics do not include upgrades or additional purchases made by the guests. 4 Lodging contribution equals total revenues (room rental, food and beverage, leasing and other) minus costs and general expenses directly related to the hotel operation, excluding real estate expenses (property tax, insurance, taxes, and others) and FibraHotel’s administration expenses. Lodging contribution is not an IFRS figure. 5 Funds from operation (“FFO”) is based on Amefibra´s definition which has been published by FibraHotel since the second quarter 2020. The main differences with the FFO previously reported by FibraHotel is that the Amefibra FFO considers adjustments for pre-operating expenses and exchange rate fluctuations, which were not considered in the FFO FIHO, but were considered in the AFFO FIHO. FFO is not an IFRS figure. 6 Adjusted funds from operation (“AFFO”) is defined as net income plus depreciation plus non-operating and non-cash adjustments less maintenance capex reserve of the period. AFFO is not an IFRS figure. http://www.fibrahotel.com 1 @FibraHotel
“2020 presented us with unique challenges. It also presented us with the opportunity to highlight the resiliency of our portfolio and to continue evolving into a better and stronger company. I am very proud of the achievements in the items that we can directly impact such as cost control and our commitment and progress on ESG issues. On other items, after the impact from Covid-19 we continue progressing towards a recovery of the hotel industry in Mexico. Our hotels showed a positive trend in the quarter with occupancy reaching 36%, almost 12 percentage points above the previous quarter. Revenue increased 45% vs. the last quarter but was (52%) below last year and still far from pre-Covid levels. The Fiesta Americana Condesa Cancun hotel had an average occupancy above 50% as tourism has recovered faster than business travel. This highlights the power of our portfolio´s diversification. We serve both business and leisure travels in different segments and our hotels are located in 26 states with well recognized brands and operators. We continue laser focused on cost control, and this has allowed us to reach positive EBITDA during the quarter and to be very close to break-even at the company´s cashflow level. We continue to be in an uncertain environment regarding the speed and shape of the economic and hotel recovery. We continue with measures to conserve liquidity such as reducing all non-essential expenditures, eliminating the distribution and deferring the payment of the Advisory fee. FibraHotel has a strong liquidity position with Ps. $460 million in cash, an available credit line of Ps. $250 million and an LTV of 29.2%. Additionally, we have reached agreements to reduce short term capital amortizations and to extended covenant waivers with our bond and bank lenders for 2021. I would like to end by thanking and recognizing our team and partners for their work though these difficult times. These results would not be possible without the unwavering commitment from our team members, the guidance of our Technical Committee and the support of our strategic partners including operators, banks and investors.” said Simón Galante, CEO FibraHotel.
http://www.fibrahotel.com 2 @FibraHotel
Other relevant information:
FibraHotel signed an agreement to improve the amortization schedule for the BBVA 1 line FibraHotel signed a credit amendment agreement in order to improve the amortization schedule of the BBVA 1 credit line. This agreement reduces the capital amortization payments to Ps. $9.3 million during 2021 and 2022. This change reduces Ps. $169 million in capital amortizations payments in the next two years.
Grace period for compliance with financial covenants in bank credits FibraHotel reached an agreement with BBVA and Banorte on the financial conditions on its credit agreements, obtaining a covenant waiver for 2021 (excluding the leverage ratio, which FibraHotel is in compliance).
FIHO 19 Holder’s Assembly On February 3rd, 2021, FibraHotel held a FIHO CBF 19 Holders’ Assembly. With a quorum of 90% and all proposals were passed including: A waiver for 2021 regarding a clause that limited new debt issuance if the debt coverage ratio was lower than 1.5x. With this waiver, FibraHotel is able to issue additional debt during 2021 for an amount up to Ps. $500 million; Added a new clause allowing FibraHotel to issue additional debt to refinance existing debts if it improves the terms and conditions of the existing debt, even when the debt service coverage ratio is lower than 1.5x.
Deferral of the payment of the Advisory Fee to conserve liquidity FibraHotel’s Practice Committee authorized the company to request to the Advisor the postponement of the payment of the fourth quarter of 2020 Advisory Fee in order to preserve liquidity. The Advisor agreed to this proposal and as such, the Advisory Fee will be provisioned in the financial statements with a corresponding account payable to the Advisor. This transaction has no impact on FibraHotel’s cash flow. We estimate that in 2021 the Advisory Fee will be payed in regular terms and the Practice Committee is evaluating different alternatives for the payment of the account payable to the Advisor.
Reduction in maintenance capex reserve requirements in order to conserve liquidity FibraHotel reached an agreement with its hotel operators to temporarily suspend the capex reserve in order to conserve liquidity. Capex will be strictly limited to investments required to maintain the hotels in good condition.
http://www.fibrahotel.com 3 @FibraHotel
FibraHotel made certain changes to the values of its real estate assets on its balance sheet: The following table shows a summary of changes to the value of real estate assets detailed below. Ps. $ millions Concept Amount Depreciation of 4 Closed Hotels (66.2) Adjustments to Fair Value of Investment Properties 42.7 Impairment of Hotel Property, Plant and Equipment (5.4) Development Portfolio Expenses (35.0) Net Change in Value of Real Estate Assets (63.8)
Impairment analysis of managed hotels At the end of each reporting period, FibraHotel evaluates its portfolio for possible impairment indicators as required by IFRS Rule IAS 36 (International Accounting Standard). As of December 31st, 2020: The gross book value of the managed hotels was Ps. $14,365 million (including the land reclassification of Fiesta Inn Villahermosa and Fiesta Inn Toluca, detailed below); Accumulated depreciation of the managed hotels was Ps. $2,383 million or 16.6% of the gross book value; The net book value of the managed hotels was Ps. $11,981 million.
In order to determine signs of impairment, valuation analyses were performed on managed hotels. Based on such analysis, FibraHotel determined that, signs of impairment exist in the Fiesta Inn Villahermosa. The fair value of this hotel was determined at Ps. $253 million and as such there was an impairment charge recorded in the income statement under the “Impairment over asset value” line equivalent to Ps. $5.4 million, with no impact to FibraHotel’s cash flow.
Changes to the asset value of the Development Portfolio As of September 30th, 2020, FibraHotel had certain projects in its Development Portfolio, with a book value of Ps. $236 million. These projects were mainly two pieces of land adjacent to existing hotels and two footprints to develop hotels inside mixed-use projects. During the fourth quarter of 2020, FibraHotel made adjustments to its Development Portfolio by reclassifying the land adjacent to the hotels as a fixed asset along with each the Fiesta Inn Toluca and Fiesta Inn Villahermosa hotels. The net result of this change was: an increase in PP&E of these hotels of Ps. $108 million, an impairment expense on the income statement of Ps. $35.0 million, and a reduction in the Development Portfolio to Ps. $92.9 million as of December 31st, 2020.
Changes to the value of certain temporarily closed hotels As of December 31st, 2020, five hotels that closed during the second quarter of 2020 remain closed. With respect to the Limited Service Coatzacoalcos, Select Service Ciudad Obregon, Select Service Leon, and Limited Service Saltillo hotels, FibraHotel made a determination to modify the fair value of these assets by accelerating their depreciation except for the value of civil works and land. These adjustments represented a change in the net book value of these four hotels of Ps. $66.2 million. http://www.fibrahotel.com 4 @FibraHotel
Update on the fair value of leased hotels (Investment Properties) FibraHotel records leased hotels at fair value based on its Auditor’s recommendation, and endorsed by its Auditing Committee. As of December 31st, 2020 this includes the Fiesta Inn Perisur, Fiesta Americana Condesa Cancun, and Cacao Playa del Carmen hotels. Based on the fair value accounting policy, the fair value of these properties is determined each year and their values are reflected in the financial statements of FibraHotel. As of December 31st, 2019, the fair value of these properties was $3,736 million. Considering the investments made on the properties throughout 2020, the book value of these hotels was $3,763 million. As of December 31st, 2020, the fair value of these properties was adjusted to $3,806 million, representing an increase of Ps. $42.7 million, mainly due to a reevaluation of the Fiesta Americana Condesa Cancun hotel. This positive impact was recorded on the income statement, as an “Adjustment to fair value of Investment Properties”, after Operating Income, and without impacting FibraHotel’s cashflow.
Since the second quarter of 2020 FibraHotel implemented Amefibra´s definition of Funds From Operation (“FFO”) seeking the standardization of metrics in the sector Since the second quarter of 2020, FibraHotel has implemented the use of Amefibra´s definition of Funds from Operation (“FFO”). Amefibra published this definition aiming to standardize certain metrics in the Real Estate Fibra sector in line with the best international practices. For detailed information, please refer to Amefibra´s methodology document available at https://amefibra.com/asg/.
Outstanding CBFIs and operations by the Repurchase Program As of December 31st, 2020 and as of this date FibraHotel has 783,456,458 outstanding CBFIs with economic rights. FibraHotel has an authorized Repurchase Program of up to 5% of outstanding CBFIs during 2020-2021 which was not used in the fourth quarter of 2020.
http://www.fibrahotel.com 5 @FibraHotel
FibraHotel’s Portfolio as of December 31st, 2020
Hotel State Region Rooms Operator Brand Segment
Selected-Service Hotels - Managed 1 Fiesta Inn Aguascalientes Aguascalientes Bajio 125 Grupo Posadas Fiesta Inn Selected-Service 2 Fiesta Inn Buenavista Mexico City Mexico City 129 Grupo Posadas Fiesta Inn Selected-Service 4 Fiesta Inn Ciudad del Carmen (1) (2) Campeche South 253 Grupo Posadas Fiesta Inn Selected-Service 5 Fiesta Inn Ciudad Juárez Chihuahua Northwest 166 Grupo Posadas Fiesta Inn Selected-Service 6 Fiesta Inn Ciudad Obregón Sonora Northwest 141 Grupo Posadas Fiesta Inn Selected-Service 7 Fiesta Inn Chihuahua Chihuahua Northwest 152 Grupo Posadas Fiesta Inn Selected-Service 8 Fiesta Inn Cuautitlán State of Mexico Mexico City 128 Grupo Posadas Fiesta Inn Selected-Service 9 Fiesta Inn Cuernavaca Morelos South 155 Grupo Posadas Fiesta Inn Selected-Service 10 Fiesta Inn Culiacán Sinaloa Northwest 146 Grupo Posadas Fiesta Inn Selected-Service 11 Fiesta Inn Durango Durango Northwest 138 Grupo Posadas Fiesta Inn Selected-Service 12 Fiesta Inn Ecatepec State of Mexico Mexico City 143 Grupo Posadas Fiesta Inn Selected-Service 13 Fiesta Inn Guadalajara Expo Jalisco West 158 Grupo Posadas Fiesta Inn Selected-Service 14 Fiesta Inn Hermosillo Sonora Northwest 155 Grupo Posadas Fiesta Inn Selected-Service 15 Fiesta Inn León Guanajuato Bajio 160 Grupo Posadas Fiesta Inn Selected-Service 16 Fiesta Inn Mexicali BCN Northwest 150 Grupo Posadas Fiesta Inn Selected-Service 17 Fiesta Inn Morelia Michoacan West 155 Grupo Posadas Fiesta Inn Selected-Service 18 Fiesta Inn Los Mochis Sinaloa Northwest 125 Grupo Posadas Fiesta Inn Selected-Service 20 Fiesta Inn Monclova (2) Coahuila Northeast 158 Grupo Posadas Fiesta Inn Selected-Service 22 Fiesta Inn Monterrey La Fe (2) Nuevo Leon Northeast 209 Grupo Posadas Fiesta Inn Selected-Service 23 Fiesta Inn Monterrey Valle Nuevo Leon Northeast 177 Grupo Posadas Fiesta Inn Selected-Service 24 Fiesta Inn Naucalpan State of Mexico Mexico City 119 Grupo Posadas Fiesta Inn Selected-Service 25 Fiesta Inn Nuevo Laredo Tamaulipas Northeast 120 Grupo Posadas Fiesta Inn Selected-Service 26 Fiesta Inn Oaxaca Oaxaca South 145 Grupo Posadas Fiesta Inn Selected-Service 27 Fiesta Inn Perinorte (1) State of Mexico Mexico City 127 Grupo Posadas Fiesta Inn Selected-Service 28 Fiesta Inn Puebla FINSA Puebla South 123 Grupo Posadas Fiesta Inn Selected-Service 30 Fiesta Inn Querétaro (2) Querétaro Bajio 225 Grupo Posadas Fiesta Inn Selected-Service 31 Fiesta Inn Saltillo Coahuila Northeast 149 Grupo Posadas Fiesta Inn Selected-Service 32 Fiesta Inn San Luis Potosí Oriente San Luis Potosí Bajio 140 Grupo Posadas Fiesta Inn Selected-Service 33 Fiesta Inn Tepic Nayarit West 139 Grupo Posadas Fiesta Inn Selected-Service 34 Fiesta Inn Tlalnepantla State of Mexico Mexico City 131 Grupo Posadas Fiesta Inn Selected-Service 35 Fiesta Inn Torreón Galerías Coahuila Northeast 146 Grupo Posadas Fiesta Inn Selected-Service 36 Fiesta Inn Toluca Tollocan State of Mexico South 144 Grupo Posadas Fiesta Inn Selected-Service 37 Fiesta Inn Puerto Vallarta Jalisco West 144 Grupo Posadas Fiesta Inn Selected-Service 38 Fiesta Inn Villahermosa Tabasco South 159 Grupo Posadas Fiesta Inn Selected-Service 39 Fiesta Inn Xalapa Veracruz South 119 Grupo Posadas Fiesta Inn Selected-Service 40 Real Inn Mexicali (1) BCN Northwest 158 Grupo Real Turismo Real Inn Selected-Service 41 Selected-Service Obregón (3) Sonora Northwest 135 Selected-Service 42 Gamma Guadalajara Centro (1) Jalisco West 197 Grupo Posadas Gamma Selected-Service 43 Selected-Service León (3) Guanajuato Bajio 159 Selected-Service 44 Gamma Tijuana (1) BCN Northwest 140 Grupo Posadas Gamma Selected-Service 45 Courtyard Toreo State of Mexico Mexico City 146 Marriott Int'l Courtyard Selected-Service 46 Courtyard Vallejo Mexico City Mexico City 125 Marriott Int'l Courtyard Selected-Service Sub Total 6,313
(1) Includes retail component (2) Includes extended stay component (3) Hotels currently closed (In total, 5 hotels and 619 rooms)
http://www.fibrahotel.com 6 @FibraHotel
FibraHotel’s Portfolio as of December 31st, 2020 (cont´d)
Hotel State Region Rooms Operator Brand Segment
Limited-Service Hotels - Managed 47 One Acapulco Costera (1) Guerrero South 126 Grupo Posadas One Limited-Service 48 One Aguascalientes Sur (1) Aguascalientes Bajio 126 Grupo Posadas One Limited-Service 49 Limited-Service Coatzacoalcos (3) Veracruz South 126 Limited-Service 50 One Cuautitlan (1) State of Mexico Mexico City 156 Grupo Posadas One Limited-Service 51 One Cuernavaca Morelos South 125 Grupo Posadas One Limited-Service 52 One Culiacán Forum Sinaloa Northwest 119 Grupo Posadas One Limited-Service 53 One Durango Durango Northwest 126 Grupo Posadas One Limited-Service 54 One Guadalajara Tapatío Jalisco West 126 Grupo Posadas One Limited-Service 55 One Monclova Coahuila Northeast 66 Grupo Posadas One Limited-Service 56 One Monterrey Aeropuerto (1) Nuevo León Northeast 126 Grupo Posadas One Limited-Service 57 One Puebla FINSA Puebla South 126 Grupo Posadas One Limited-Service 58 One Querétaro Plaza Galerías Querétaro Bajio 126 Grupo Posadas One Limited-Service 59 One Toluca Aeropuerto State of Mexico South 126 Grupo Posadas One Limited-Service 60 One Ciudad de México Patriotismo Mexico City Mexico City 132 Grupo Posadas One Limited-Service 61 One Perisur Mexico City Mexico City 144 Grupo Posadas One Limited-Service 62 One Xalapa Veracruz South 126 Grupo Posadas One Limited-Service 63 Fairfield Inn & Suites Juriquilla Querétaro Bajio 134 Marriott Int'l Fairfield Inn Limited-Service 64 Fairfield Inn Los Cabos BCS Northwest 128 Marriott Int'l Fairfield Inn Limited-Service 65 Fairfield Inn & Suites Nogales Sonora Northwest 134 Marriott Int'l Fairfield Inn Limited-Service 66 Limited-Service Saltillo (3) Coahuila Northeast 139 Limited-Service 67 Fairfield Inn & Suites Vallejo Mexico City Mexico City 121 Marriott Int'l Fairfield Inn Limited-Service 68 Fairfield Inn & Suites Villahermosa Tabasco South 134 Marriott Int'l Fairfield Inn Limited-Service Sub Total 2,792
Full-Service Hotels - Managed 69 Fiesta Americana Aguascalientes (1) Aguascalientes Bajio 192 Grupo Posadas Fiesta Americana Full-Service 70 Fiesta Americana Hermosillo Sonora Northwest 220 Grupo Posadas Fiesta Americana Full-Service 71 Fiesta Americana Hacienda Galindo Querétaro Bajio 168 Grupo Posadas Fiesta Americana Full-Service 72 Fiesta Americana Pabellón M Nuevo León Northeast 178 Grupo Posadas Fiesta Americana Full-Service 73 Fiesta Americana México Satélite Estado de México Mexico City 223 Grupo Posadas Fiesta Americana Full-Service 74 Fiesta Americana Viaducto Aeropuerto Mexico City CDMX 260 Grupo Posadas Fiesta Americana Full-Service 75 Grand Fiesta Americana Monterrey Valle Nuevo León Northeast 180 Grupo Posadas Grand Fiesta Americana Full-Service 76 Live Aqua Monterrey Valle Nuevo León Northeast 70 Grupo Posadas Live Aqua Full-Service 77 Live Aqua San Miguel de Allende Guanajuato Bajio 153 Grupo Posadas Live Aqua Full-Service 79 Camino Real Puebla Hotel & Suites (2) Puebla South 274 Grupo Real Turismo Camino Real Full-Service 80 Sheraton Ambassador Monterrey Nuevo León Northeast 229 Marriott Int'l Sheraton Full-Service 81 AC by Marriott Querétaro Querétaro Bajio 175 Marriott Int'l AC by Marriott Full-Service 82 AC by Marriott Guadalajara Jalisco West 188 Marriott Int'l AC by Marriott Full-Service 83 AC by Marriott Veracruz Veracruz South 164 Marriott Int'l AC by Marriott Full-Service Sub Total 2,674
Leased Hotels 84 Fiesta Inn Perisur Mexico City Mexico City 212 Grupo Posadas Fiesta Inn Selected-Service 85 Hotel Cacao Playa del Carmen (3) Quintana Roo South 60 Full-Service 86 Fiesta Americana Condesa Cancún Quintana Roo South 507 Grupo Posadas Fiesta Americana Resort Sub Total 779
Total Operating Rooms as of Decembe 31st, 2020 11,939 Total Rooms as of Decembe 31st, 2020 12,558
(1) Includes retail component (2) Includes extended stay component (3) Hotels currently closed (In total, 5 hotels and 619 rooms)
http://www.fibrahotel.com 7 @FibraHotel
Selected quarterly information
• The following table shows certain financial indicators for the last four quarters7:
(In thousand pesos except per CBFI data) 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 Total revenues 948,813 71,663 375,755 545,420 1,941,651
Revenues - Managed hotels 847,068 62,897 340,405 495,512 1,745,882 % of total revenues 89.3% 87.8% 90.6% 90.8% 89.9%
Lodging contribution 292,823 (165,126) 46,592 133,965 308,253 Margin 30.9% n.a 12.4% 24.6% 15.9%
Lodging contribution - Managed hotels 191,077 (173,892) 11,242 84,057 112,484 Margin 22.6% n.a 3.3% 17.0% 6.4%
Net Operating Income 276,953 (225,218) 29,930 111,020 192,686 Margin 29.2% n.a 8.0% 20.4% 9.9%
Adjusted EBITDA 220,916 (277,590) (20,379) 59,606 (17,447) Margin 23.3% n.a n.a 10.9% n.a
Consolidated net (loss) income (53,319) (493,316) (241,219) (214,302) (1,002,156) Margin n.a n.a n.a n.a n.a
AMEFIBRA Funds From Operation 134,437 (371,575) (115,323) (38,195) (390,656) FFO / CBFI with economic rights 0.1716 (0.4743) (0.1472) (0.0488) (0.4986)
Adjusted Funds From Operation 97,243 (373,451) (115,323) (38,195) (429,726) AFFO / CBFI with economic rights 0.1241 (0.4767) (0.1472) (0.0488) (0.5485)
Distribution - - - - - Distribution / CBFI with economic rights - - - - -
Financial Debt 4,995,845 4,981,443 4,970,193 4,916,409 4,916,409 Net Debt 4,025,444 4,381,019 4,498,765 4,455,912 4,455,912 Net Debt / LTM Adjusted EBITDA 3.7 x 8.7 x 20.5 x n.a n.a Loan to Value 28.0% 28.8% 29.2% 29.2% 29.2%
7 Lodging Contribution, EBITDA, Amefibra FFO and AFFO are not IFRS figures. http://www.fibrahotel.com 8 @FibraHotel
Results for the fourth quarter of 2020
Total Revenues
During the period, FibraHotel’s total revenues were Ps. $545 million:
Ps. $403 million of room rentals (74.0% of total revenues). Ps. $87 million of food and beverage (15.9% of total revenues). Ps. $50 million of leases comprised of: (i) two leased hotels8, of which Fiesta Americana Condesa Cancún hotel represented Ps $26 million (ii) ) retail and other leases in hotel properties, and (iii) other hotel guarantees. Together, these revenues represent 9.1% of total revenues. Ps. $5 million of other income (1.0% of total revenues).
Compared with the fourth quarter of 2019, total revenues decreased by (51.8%).
Costs and General Expenses
During this period, FibraHotel’s costs and general expenses were Ps. $411 million:
Ps. $245 million of administrative costs and expenses (59.7% of costs and general expenses). Ps. $106 million of room expenses (25.8% of costs and general expenses). Ps. $60 million of food and beverage expenses (14.5% of costs and general expenses). During the fourth quarter, the adjusted operating expense of the hotels (excluding management fees and extraordinary expenses), was Ps. $382 million, as follows: Ps. $124 million in October, with an occupancy of 36.8%. Ps. $130 million in November, with an occupancy of 37.7%. Ps. $127 million in December, with an occupancy of 34.6%.
On average, between the third and fourth quarter: The average monthly income of the managed hotels increased from Ps. $112 million to Ps. $165 million, representing an increase of 47%. The average monthly expense of the managed hotels increased form Ps. $109 million to Ps. $127 million, representing an increase of 17%. The average monthly gross operating profit increased from Ps. $3 million to Ps. $38 million.
Lodging Contribution
Lodging contribution was Ps. $134 million, representing 24.6% of total revenues. In total, Ps. $84 million corresponded to the hotel contribution of the managed hotels and Ps. $50 million corresponded to the hotel contribution of leases and other income.
7 Leased hotels for the quarter are Fiesta Inn Perisur and Fiesta Americana Condesa Cancún. http://www.fibrahotel.com 9 @FibraHotel
Operating Profit
Other operating expenses of Ps. $251 million consisted of:
(i) Depreciation of Ps. $128 million (non-cash); (ii) Accelerated depreciation of certain closed hotel assets of Ps. $66 million and an impairment to the value of the Fiesta Inn Villahermosa hotel of Ps. $5 million (both non-cash); (iii) Advisory fee of Ps. $34 million (deferred payment)9; (iv) Administrative expenses of Ps. $16 million. (v) Real estate expenses of Ps. $23 million. (vi) The CBFI compensation plan for employees of Ps. $2 million (non-cash).
The adjusted operating deficit was (Ps. $140 million).
Adjusted Operating Profit
During the fourth quarter of 2020, FibraHotel had non-operating expenses of (Ps. $36 million), of which (Ps. $35 million) corresponded to the adjustments made to the Development Portfolio. Additionally, a positive adjustment was made to the fair value of the Investment Properties for Ps. $43 million.
The adjusted operating loss for the quarter was (Ps. $134 million).
Comprehensive Financial Result
FibraHotel ended the quarter with a net debt position of Ps. $4,456 million and a total debt of Ps. $4,916 million.
During the quarter, the total debt position generated interest expense of Ps. $93 million.
During the quarter, the comprehensive financial result was (Ps. $80) million as follows.
Ps.$ Thousands Q4 2019 Q4 2020 Var. Interest Income 20,282 1,870 (91%) Interest Expense (91,689) (92,684) 1% Bank Fees (2,146) (8,602) 301% Exchange Profit/Loss 7,781 19,635 152% Total (65,772) (79,781) 21%
As of December 31st, 2020, FibraHotel´s USD 13 million debt had a book value of Ps. $259 million at an exchange rate of $19.94, versus a Ps. $291 million book value at the beginning of the quarter at an exchange rate of $22.36. This created a Foreign Exchange gain of Ps. $32 million which was partially offset by a loss in FibraHotel´s USD cash position of (Ps. $12 million).
9 As of December 31st, 2020, the accrued provision for the deferral of the advisory fee amounts to Ps. $144 million pesos and is recorded on the balance sheet as an account payable to related parties. http://www.fibrahotel.com 10 @FibraHotel
Consolidated Net Income
During the fourth quarter of 2020, the consolidated net income was (Ps. $214 million).
Consolidated Comprehensive Income
During the fourth quarter of 2020, the consolidated comprehensive income was (Ps. $214 million). The valuation of derivative instruments was Ps. $0.01 million.
Funds from Operations (“AMEFIBRA FFO”)10
During the fourth quarter of 2020, the Funds from Operations was (Ps. $38 million).
Ps. $ thousand 4Q 2019 4Q 2020 Variation Comprehensive Integral Result 53,928 (214,312) n.a
Adjustment to Fair Value of Investment Properties 47,081 (42,744) Depreciation 114,475 128,290 Amortization costs 17,543 36,516 Impairment over asset value 71,603 Profit/Loss on property sales Transactions costs Property sale tax Exchange rate fluctuation (7,781) (19,635) Fluctuation of derivative 504 10 Fluctuation of financial instruments Intangible impacts Costs Employee CBFIs compensation plan 2,076 2,076 Interests
AMEFIBRA Funds From Operations 227,826 (38,195) n.a
Adjusted funds from operation (“AFFO”)
During the fourth quarter of 2020, FibraHotel generated an AFFO of (Ps. $38 million).
Ps. $ thousand Q4 2019 Q4 2020 Variation
AMEFIBRA FFO 227,826 (38,195) n.a (-) CAPEX (57,559) - (+) Other adjustments (11,756) - Adjusted Funds From Operations 158,511 (38,195) n.a
10 Funds from operation (“FFO”) is based on Amefibra´s definition. Amefibra published this definition to standardize certain metrics in the Real Estate Fibra sector in line with the best international practices. The main differences in FibraHotel´s previous FFO calculation is the inclusion of pre-operating and exchange rate fluctuations in FFO. FibraHotel previously adjusted them in AFFO. http://www.fibrahotel.com 11 @FibraHotel
Cash flow
During the fourth quarter of 2020:
The net operating cash flow was Ps. $117 million. The net cash flow from investment activities was (Ps. $44 million), mainly due to: i) investments in properties under development (Ps. $20.4 million), ii) capital expenditures during the quarter of (Ps. $25.7 million), and iii) interest generated from our cash position of Ps. $1.9 million. The net cash flow from financing activities was (Ps. $83 million), mostly related to i) interest payments of (Ps. $57.9 million), ii) capital amortizations for (Ps. $22.8 million), and iii) others of (Ps. $2.8 million).
Financial position
FibraHotel ended the fourth quarter of 2020 with:
A cash position of Ps. $460 million compared to Ps. $471 million as of September 30th, 2020. Ps. $4,916 million in debt compared to Ps. $4,970 million as of September 30th, 2020. Net debt of Ps. $4,456 million compared to Ps. $4,499 million as of September 30th, 2020. A cost of debt of 7.36%. As of September 30th, 2020, the cost of debt was 7.55%.
The following table presents a detailed status of FibraHotel’s cash position:
Ps. $ thousand 4Q 2020 Comment Cash, cash equivalents and restricted cash 460,497
Available cash and cash equiv. - Operation 162,148 Hotels' working capital Restricted cash and cash equiv. - Operation 24,948 Available for maintenance CapEx
Available cash and cash equiv. - 273,400 Cash available Cash position without restricted cash 435,548
The following table presents FibraHotel’s debt position in detail:
$ millions 4Q 2019 Currency Interest rate Maturity
BBVA 1 479.8 MXN TIIE 28d + 150bps oct/nov-27 BBVA 1 255.0 MXN TIIE 28d + 150bps nov-27 BBVA 2 252.9 MXN TIIE 28d + 160bps jun-22 BBVA 2* 259.2 USD LIBOR 91d + 180bps sep-23 Sabadell 200.0 MXN TIIE 28d + 150bps may-21 Banorte 3 989.9 MXN TIIE 91d + 130bps jun-28 FIHO 19** 2,479.6 MXN 8.83% sep-29
Total debt position 4,916.4 * Equivalent in pesos to USD $13.0 million with an exchange rate of Ps. $19.9352 ** Represents the decrease in stock debt due to netting with issuance expenses
http://www.fibrahotel.com 12 @FibraHotel
In December, 2020, FibraHotel signed and amendment agreement with BBVA to extend the BBVA 1 capital grace period during 2021 (Ps. $87 million) and 2022 (Ps. $82 million), reducing capital amortization during those two years by (Ps. $169 million).
The following table presents a detailed amortization schedule of FibraHotel’s debt position (in Ps. $ millions): Year Payment % 2020 319.3 6.5% 2021 251.0 5.1% 2022 392.5 8.0% 2023 and after 3,953.6 80.4% Total 4,916.4 100.0%
As of December 31st, 2020, and in accordance with the credit agreements, FibraHotel has several derivative instruments to cover variations in the TIIE and LIBOR rates. The costs of these instruments were paid up-front. These instruments mature in 2021 and have the following characteristics:
$ millions Interest Rate Currency Principal Type Floor Strike Limit
BBVA 1 TIIE 28d MXN 255.0 Cap Spread 5.0% 7.0% Banorte 3* TIIE 91d MXN 989.9 Collar 4.5% 6.0% BBVA 2 LIBOR 91d USD 13.0 Cap 4.0% * Derivative instrument from Banorte 1 is asigned now to Banorte 3, as of the date of the report 78% is covered from initial credit line for Ps. 771 million.
Credit Ratings As of December 31st, 2020, Fitch Ratings long term credit rating for FibraHotel and of its debt issued under the ticker “FIHO 19” is ‘A+(mex)'.
As of December 31st, 2020, HR Ratings long term credit rating for FibraHotel and of its debt issued under the ticker “FIHO 19” is ‘AA-'.
http://www.fibrahotel.com 13 @FibraHotel
Regulation applicable to FIBRAs
On December 10th, 2020, the National Banking and Securities Commission (“CNBV”) published amendments to the general provisions applicable to issuers of securities and other securities market participants, known as the “Circular Unica de Emisoras” (CUE) and amendments to ANNEX AA to the CUE (the “Amendments”) which became effective on December 11th, 2020.
The Amendments are applicable to FIBRAs and their main purpose is to provide additional flexibility to FIBRAs financings.
Under the Amendments, the holders’ assembly is granted the powers to establish the financing rules for each FIBRA. The rules approved by the holders’ assembly shall establish the maximum leverage limit and debt service coverage ratio to be observed by the FIBRA and must be calculated in accordance with ANNEX AA of the “CUE”. In addition, within the amendments realized to Annex AA, a period of a four quarters (rather than six) has been established to calculate such maximum leverage and the debt service coverage ratios.
Leverage level FibraHotel closed the fourth quarter of 2020 with Ps. $4,916 million indebtedness and total asset value of Ps. $16,822 million, resulting in a 29.2% leverage level (LTV). The regulation in force prior to the entry in force of the Amendments established a maximum leverage level of 50% (fifty per cent).
Debt service coverage ratio The debt service coverage ratio must be higher than 1.0x.
For FibraHotel, the estimated obligations correspond to: Debt service (principal and interests); Capital expenditures for the maintenance of hotels; and Non-discretionary development expenditures (announced development projects).
Available resources correspond to: Cash and cash equivalents; Recoverable VAT; Operating result after distribution payment (including depreciation and interest income); and Available credit lines.
In accordance to the formula in Annex AA of the “CUE” currently in force, as of December 31st, 2020, FibraHotel’s debt service coverage ratio is 1.48x, and the metrics for its calculation are as follows: Obligations for the next four quarters: http://www.fibrahotel.com 14 @FibraHotel
o Debt service: Ps. $673 million. o Estimated capital expenditures: Ps. $85.7 million. o Closing of the Fiesta Americana Hacienda Galindo acquisition: Ps. $156 million. Available resources for the next four quarters: o Cash and cash equivalents (excluding restricted cash): Ps. $436 million. o VAT receivable: Ps. $14.8 million. o Estimated operating result after distribution payment (including depreciation and interest income): Ps. $655 million. o Non disposed available credit lines: Ps. $250 million.
For clarity purposes, considering a period of six quarters, the debt service coverage ratio for FibraHotel as of December 31st, 2020 was 1.53x.
Ratios related to the FIHO 19 bond
Secured Debt to total assets limit of 40%
As of December 31st, 2020, FibraHotel's secured debt ratio is 12%.
Unencumbered Assets to unencumbered debt greater than 150%
As of December 31st, 2020, FibraHotel's total unencumbered asset ratio was 568%.
http://www.fibrahotel.com 15 @FibraHotel
Capital Expenditures (“CapEx”)
As of December 31st, 2020, the available maintenance capital expenditures reserve was Ps. $24.9 million compared with Ps. $34.8 million as of September 30th, 2020. The capital expenditure reserve is used to maintain the standards of our hotels in operation and is constituted on a monthly basis based on a percentage of total revenues.
During the fourth quarter of 2020, the most relevant capital expenditures of FibraHotel were: Maintenance operating capex of Ps. $22.5 million. Investment in improvements in the Fiesta Americana Condesa Cancun, Fiesta Americana Viaducto, and the Live Aqua San Miguel de Allende hotels of Ps. $28.8 million. Investment in repositioning the Cacao Playa del Carmen hotel of Ps. $4.9 million.
Information regarding outstanding CBFIs As of the date of this report, FibraHotel has 783’456,458 CBFIs outstanding with economic rights.
Corporate Governance On February 16th, 2020, there was an Audit Committee, a Practices Committee and a Technical Committee meeting to, among other things, approve the 2020 fourth quarter financial results which were unanimously approved. As of today, FibraHotel’s Technical Committee is comprised by 10 members, four of whom are independent.
http://www.fibrahotel.com 16 @FibraHotel
Management of Social, Environmental and Governance Issues
FibraHotel is committed to being a sustainable company and progressing in the best environmental, social and corporate governance practices (ESG), while addressing the impact of our business. We acknowledge that sustainability is key for the industry, the company, and the country and have therefore initiated the process of identifying material topics taking into account our stakeholders and our business model. This will allow us to maximize the positive impact on the environment.
Our Sustainability Strategy includes initiatives we had already been working on, as well as new challenges to continue improving on these topics.
We published our first Sustainability Annual Report in 2020 which was done based on the Global Reporting Initiative (GRI) main methodology of international reference. The report is available at: https://bit.ly/3k4DOn1.
Regarding out environmental performance, FibraHotel is committed to making the resources required for hotel operation efficient, and we aim to provide hotels with proper infrastructure for our hotels to be energy efficient and to minimize waste. We focus on investment in maintenance, equipment and technology and work closely with our operators to achieve these goals.
Several hotels in our portfolio have a variety of environmental awards and certifications such as: 71 hotels are certified Green Key by the Foundation for Environmental Education. The hotels AC by Marriott Veracruz, Fiesta Americana Viaducto Aeropuerto, and Fiesta Americana Satelite are EDGE Certified (Excelence in Design for Greater Efficiencies). The Fiesta Americana Viaducto Aeropuerto hotel is LEED certified (Leadership in Energy and Environmental Design). The Fiesta Americana Condesa Cancun hotel is Blue Flag certified, representing a commitment to beach users and the environment. http://www.fibrahotel.com 17 @FibraHotel
Most of our hotels have achieved PROFEPA´s Tourism Environmental Quality certification in recognition of waste, discharge and emissions reduction, as well as electricity, fuel, and water consumption. The Fiesta Americana Pabellon M, Fiesta Inn Periferico Sur, and Fiesta Inn Talnepantla hotels are certified as Hydrosustainable Hotels.
In the social dimension, FibraHotel seeks to generate socio-economic development in the hotels’ surroundings. Relationships with the neighboring communities are based on trust by generating jobs and economic development within them. In addition, we support a wide range of organizations in order to address the needs of our communities, as determined by each operator and hotel.
We recognize the value of diversity and focus on the integrity and well-being of our employees, who have competitive pay and benefits. We especially appreciate their commitment and hard work during 2020.
FibraHotel has a solid corporate governance over and above local regulations and reinforced with international best practices. Its governance is structured to ensure decision making without conflicts of interest and based on the company’s values, and aligned with the needs of investors, communities and the environment. FibraHotel has a Code of Ethics with guidelines based on the values of honesty, integrity and work.
For additional information about our ESG initiatives, please refer to our webpage: https://www.fibrahotel.com/.
http://www.fibrahotel.com 18 @FibraHotel
Operating Highlights of FibraHotel´s Portfolio The following graph shows the quarterly evolution, from the first quarter of 2017 to the fourth quarter of 2020, of the ADR, the occupancy rate and the RevPAR for FibraHotel’s hotels in operation11 (excluding the Fiesta Americana Condesa Cancun hotel).
66.8% 65.4% 65.0% 64.5% 64.8% 64.5% 63.8% 63.2% 63.0% 62.7% 60.9% 49.7% 58.8% 1,252 1,252 1,182 1,221 1,227 1,202 1,206 1,135 1,138 1,202 1,148 1,126 1,072 1,091 1,076 1,018
789 741 776 779 776 761 36.0% 729 716 744 746 747 667 622 24.3% 388 265 38 3.7%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2017 2018 2019 2020 ADR RevPAR Occupancy
They are not totally comparable since they have different hotels during the period. As of the 3Q 2020 the graph does not include the hotels (5) that are temporarily closed.
Fiesta Americana Condesa Cancun reported the following during the fourth quarter of 2020: Occupancy rate of 50.3% Net Package ADR of Ps. $4,074 Net Package RevPAR of Ps. $2,048
The following table shows selected operating information of FibraHotel’s hotels for the fourth quarter of 2020: Total Portfolio Total Portfolio Q4 2020 Q4 2019 Q4 2020 Q4 2020 LTM Q4 2019 LTM Ocupancy 36.0% 63.0% 24.3% Ocupancy 28.5% 62.8% ADR 1,076 1,252 1,091 ADR 1,156 1,231 RevPAR 388 789 265 RevPAR 330 773 *Excludes the five hotels that are temporarily closed and Fiesta Americana Condesa Cancún hotel
The RevPAR decreased (50.9 %) in the fourth quarter of 2020 vs. the fourth quarter of 2019.
The following table shows certain operating information for the hotels by segment for the fourth quarter of 2019 and 2020 (excluding the Fiesta Americana Condesa Cancun hotel):
11 As of today, FibraHotel has five hotels temporarily closed; Limited Service Coatzacoalcos, Limited Service Saltillo, Selected Service Ciudad Obregon, Selected Service León and Cacao Playa del Carmen. In total they represent 619 rooms and are excluded from the operational KPIs of the quarter. The Fiesta Americana Mexico Satelite hotel opened in September, 2018, the Live Aqua San Miguel de Allende in November, 2018 and the Fiesta Americana Viaducto in November, 2019. http://www.fibrahotel.com 19 @FibraHotel
Total Portfolio * 4th quarter 2019 4th quarter 2020 Variation Segment Ocup. ADR RevPAR Ocup. ADR RevPAR Occup. ADR RevPAR Limited-Service 65.8% $ 919 $ 604 35.8% $ 815 $ 292 (3001 pb) (11.3%) (51.8%) Selected-Service 64.0% $ 1,129 $ 723 39.0% $ 951 $ 371 (2500 pb) (15.8%) (48.7%) Full-Service 57.5% $ 2,005 $ 1,154 29.4% $ 1,763 $ 518 (2813 pb) (12.1%) (55.1%)
Total 63.0% $ 1,252 $ 789 36.0% $ 1,076 $ 388 (2697 pb) (14.1%) (50.9%)
*Excludes Fiesta Americana Condesa Cancún. Since the first quarter of 2020, the Extended Stay category was eliminated because the number of rooms was not relevant for the portfolio. 255 rooms were added to Select Service and 121 rooms to Full Service segments. Since the third quarter of 2020, 265 rooms of Limited Service, 294 of Selected Service and 60 of Full Service are not included.
The following table shows certain operating information for the hotels by region12 for the fourth quarter of 2019 and 2020:
Total Portfolio * 4th quarter 2019 4th quarter 2020 Variation Region Occup. ADR RevPAR Occup. ADR RevPAR Occup. ADR RevPAR Bajio 59.8% $ 1,591 $ 951 31.6% $ 1,581 $ 499 (2822 pb) (0.7%) (47.6%) Northeast 67.8% $ 1,483 $ 1,005 34.7% $ 1,232 $ 428 (3306 pb) (16.9%) (57.4%) Northwest 64.4% $ 1,099 $ 708 43.4% $ 984 $ 427 (2102 pb) (10.5%) (39.7%) West 67.4% $ 1,207 $ 813 45.9% $ 988 $ 454 (2145 pb) (18.2%) (44.2%) South 59.8% $ 966 $ 578 35.5% $ 861 $ 306 (2424 pb) (10.9%) (47.0%) Mexico City 61.5% $ 1,255 $ 772 29.2% $ 979 $ 286 (3233 pb) (22.0%) (63.0%)
Total 63.0% $ 1,252 $ 789 36.0% $ 1,076 $ 388 (2697 pb) (14.1%) (50.9%)
*Excludes Fiesta Americana Condesa Cancún. In "Mexico City" region, the hotels located in the Metropolitan Area are included. Since the third quarter of 2020, 159 rooms of Bajio, 274 of the Northwest and 186 of the South are not included.
The following table shows certain operating information of Fiesta Americana Condesa Cancun hotel for the fourth quarter of 2019 and 2020:
Fiesta Americana Condesa Cancún (All Inclusive) 4th quarter 2019 4th quarter 2020 Variation Net Net Net Net Occup. Package Package Occup. Package Package Occup. ADR RevPAR ADR RevPAR ADR RevPAR FACC* 75.9% $ 4,169 $ 3,166 50.3% $ 4,074 $ 2,048 (2567 pb) (2.3%) (35.3%)
* Fiesta Americana Condesa Cancún is reported with All Inclusive metrics different from de rest of the portfolio.
12 Bajío corresponds to the following states: Aguascalientes, Guanajuato, Querétaro and San Luis Potosí. Northeast corresponds to the following states: Coahuila, Nuevo León and Tamaulipas. Northwest corresponds to the following states: Baja California Norte, Baja California Sur, Chihuahua, Durango, Sinaloa and Sonora. West corresponds to the following states: Jalisco, Nayarit and Michoacán. South corresponds to the following states: Campeche, State of Mexico (Toluca), Guerrero, Morelos, Oaxaca, Puebla, Quintana Roo, Tabasco and Veracruz. Mexico City corresponds to the following states: Mexico City and State of Mexico (excluding Toluca). http://www.fibrahotel.com 20 @FibraHotel
The following table shows the distribution of FibraHotel’s Operating Portfolio (81 hotels) as of December 31st, 2020 by segment, region, number of hotels and number of rooms:
SEGMENT Hotels Rooms REGION Hotels Rooms
# % # % # % # % Limited-Service 20 24.7% 2,527 21.2% Bajio 12 14.8% 1,724 14.4% Selected-Service 45 55.6% 6,231 52.2% Northeast 15 18.5% 1,808 15.1% Full-Service 15 18.5% 2,674 22.4% Northwest 13 16.0% 2,198 18.4% Resort 1 1.2% 507 4.2% West 7 8.6% 1,107 9.3% TOTAL 81 100.0% 11,939 100.0% South 19 23.5% 2,806 23.5% Mexico City 15 18.5% 2,296 19.2% Excluding the five hotels that are currently closed TOTAL 81 100.0% 11,939 100.0%
Quarterly Operating Portfolio Highlights (excluding leased hotels)
Room Available Occupied Year 2020 Occup. Revenues Ps. $ ADR RevPAR Rooms Rooms Million 1st quarter 1,071,730 531,547 49.6% $ 664 $ 1,248 $ 619 2nd quarter 1,052,637 39,804 3.8% $ 41 $ 1,018 $ 39 3rd quarter 1,031,964 252,685 24.5% $ 276 $ 1,092 $ 267 4th quarter 1,031,963 375,033 36.3% $ 403 $ 1,076 $ 391
Total 4,188,294 1,199,069 28.6% $ 1,383 $ 1,154 $ 330
During april and may, most of the hotels in the portfolio were closed and began their gradual reopening in june. Since the third quarter, data excludes the five hotels that are temporarily closed.
http://www.fibrahotel.com 21 @FibraHotel
BALANCE SHEET As of December 31st, 2020 and December 31sr, 2019 (figures in thousands of pesos)
FIBRAHOTEL Consolidated Balance Sheets
(Thousands of pesos)
Assets 31/12/2020 31/12/2019 Current assets Cash, cash equivalents and restricted cash 460,497 905,887 Trade accounts receivable and other receivables 140,677 262,916 Due from related parties - 0 Prepaid expenses 18,160 16,583 Recoverable taxes, mainly value-added tax 14,866 38,930 Total currents assets 634,200 1,224,316
Non current assets Hotel properties, furniture and operating equip. - Net 12,280,635 12,305,850 Investment Properties* 3,806,192 3,965,509 Properties under development 92,923 239,384 Derivative instruments - 908 Advance to suppliers 4,944 4,953 Deferred income taxes 3,029 5,480 Total non-current assets 16,187,722 16,522,084
Total assets 16,821,922 17,746,400
Liabilities and partners' equity
Current liabilities: Borrowings 319,297 170,561 Suppliers and accrued expenses 208,062 413,312 Due to related parties 144,492 37,949 Taxes payable 12,161 23,101 Other 82,066 61,493 Total current liabilities 766,078 706,415
Long-term banking debt 2,117,534 1,931,361 Long-term debt securities 2,479,578 2,477,244
Trustors' equity: Contribution from the trustors 10,983,436 11,113,532 Retained earnings 475,296 1,517,849 Total trustors' equity: 11,458,732 12,631,381
Total liabilities and trustors' equity 16,821,922 17,746,400 *Corresponds to FA Condesa Cancún, Cacao Playa del Carmen hotel and FI Perisur.
http://www.fibrahotel.com 22 @FibraHotel
INCOME STATEMENT October 1st, 2020 to December 31st, 2020 compared to the fourth quarter of 2019 (figures in thousands of pesos)
FIBRAHOTEL Consolidated Statements of Operations
(Thousands of pesos)
4Q 2020 4Q 2019
Revenue: Rooms 403,356 828,900 Food and beverages 86,843 207,592 Leases 49,901 79,463 Others 5,320 14,877
Total revenue 545,420 1,130,832
Costs and general expenses Rooms 106,341 191,229 Food and beverages 59,478 135,058 Administrative expenses 245,636 435,299
Total costs and general expenses 411,455 761,586
Lodging contribution 133,965 369,246
Real estate expenses 22,945 17,411 Advisory fee* 33,752 37,949 Employee CBFIs compensation plan* 2,076 2,076 Administrative expenses related to FibraHotel 15,585 15,534
Depreciation 128,290 114,475 Impairment over asset value* 71,603 -
Income from operations (140,287) 181,801
Extraordinary expenses, net 1,535 17,543
Adjusted (loss) from operations (141,822) 164,258
Non operating income (34,726) 10,596 Adjustment to Fair Value of Investment Properties* 42,744 (47,081) Comprehensive financing result (79,781) (65,772)
Income before taxes (213,585) 62,001
Tax 717 7,569
Consolidated net (loss) income (214,302) 54,432 * Non-Cash Items
http://www.fibrahotel.com 23 @FibraHotel
CASH FLOW STATEMENT st st October 1 , 2020 to December 31 , 2020 compared to the fourth quarter of 2019 (figures in thousands of pesos) 4Q 2020 4Q 2019
Operating Activities Consolidated net income (214,302) 54,432 Adjustments for non cash items Tax 717 7,569 Cost for asset sale 200 - Impairment over asset value* 71,603 - Adjustment to fair value of investment properties* (42,744) 47,081 Depreciation 128,290 114,475 Interest income 97,628 62,243 Employee CBFIs compensation plan* 2,076 2,076 Total 43,468 287,876
(Increase) decrease in: Trade accounts receivable and others (5,780) 40,996 Due from related parties 0 0 Recoverables taxes, mainly VAT 7,446 (36,247) Prepaid expenses 29,094 78,905 Other assets - (487) Increase (decrease) in: Suppliers and accrued expenses and others 35,695 (40,352) Due to related parties - - Tax payable 6,733 (9,852) Net cash flow used in operating activities 116,656 320,839
Investing activities Business acquired, net of cash received - - Development portfolio (20,422) (65,675) Acquisition of other assets (11,446) (111,269) Acquisition of other assets (14,299) (27,740) Asset sale 189 - Interest income 1,870 20,282 Net cash flow used in investing activities (44,108) (184,403)
Financing activities Ditributions to trustors - (134,442) Debt Issuance (0) (0) Debt Issuance (22,848) (20,009) Interests paid and financial expenses (57,863) (46,965) CBFIs issuance - - CBFI Repurchase Program - - Issuance expenses - (23,340) Other (2,769) (758) Net cash flow used in financing activities (83,480) (225,515)
Net increase (decrease) in cash, cash equivalents and restricted cash (10,931) (89,078)
Cash, cash equivalents and restricted cash at the beginning of the period 471,428 994,965
Cash, cash equivalents and restricted cash at the end of the period 460,497 905,887 * Non-Cash Items
http://www.fibrahotel.com 24 @FibraHotel
Reconciliation between FibraHotel FFO and Amefibra FFO
Amefibra published a definition Funds from Operations (“FFO”) metric to standardize reporting across Real Estate Fibras in Mexico. This metric is voluntary for Fibras and seeks to incorporate best practices across the sector (for example, in the United States, REITs report the Nareit Funds from Operations). FibraHotel has determined to report FFO based on Amefibra´s definition beginning on the third quarter of 2020. The main differences against FibraHotel´s previously reported FFO is that Amefibra FFO considers adjustments for pre-operating expenses and currency fluctuation in FFO which were not considered in FibraHotel´s FFO but were considered in FibraHotel´s AFFO. The following table shows the differences and reconciliations between the metrics historically FibraHotel and Amefibras definition:
2013 2014 2015 2016 2017 2018 2019 2020 Consolidated Integral Result 162,753 253,703 233,504 277,004 429,858 599,321 218,025 (1,004,788)
Adjustment to Fair Value of Investment Properties - - - - - (143,795) 47,081 (42,744) Depreciation 120,041 162,930 213,782 296,930 367,926 419,037 465,817 517,627 Amortization of capitalized leasing costs 101,862 88,448 77,688 106,931 34,457 71,619 37,056 43,999 Impairment losses - - - - - 41,890 - 71,603 Realized (gains) or losses from sales ------Transaction costs ------Tax on profits or losses on disposals of properties ------Exchange rate fluctuation (956) 3,572 (508) 2,363 6,991 16,128 (7,761) 12,708 Fluctuation of derivative instruments - - 3,072 (63,114) 7,862 15,389 99,061 2,632 Fluctuation of financial instruments ------Impairment of intangibles ------Costs ------CBFIs Compensation Plan - - - - - 16,612 8,306 8,306 Minority interests ------
AMEFIBRA Funds From Operations 383,701 508,653 527,538 620,114 847,093 1,036,200 867,584 (390,656)
CAPEX Reserve (47,225) (75,257) (99,670) (134,571) (172,893) (204,149) (221,964) (51,128) Other Adjustments 589 (9,628) 1,106 8,070 (5,621) 17,335 (7,734) 12,058
Adjusted Funds From Operations 337,065 423,768 428,974 493,614 668,579 849,386 637,887 (429,726)
FFO FIHO / FFO AMEFIBRA 100,906 92,020 77,180 109,294 41,448 87,746 29,295 56,707
http://www.fibrahotel.com 25 @FibraHotel
Invitation to the 4Q 2020 Results Conference Call
http://www.fibrahotel.com 26 @FibraHotel
About FibraHotel
FibraHotel is a Mexican trust created primarily to acquire, develop and operate hotels in Mexico. Our objective is to provide attractive returns to our CBFI holders through distributions and the appreciation of our real estate assets. Also, we will aim to have a high quality hotel portfolio, through the affiliation to different hotel brands and renowned operators, as well as geographic and segment diversification.
Investor relations contact
Guillermo Bravo Tel: +52 (55) 5292 8050 E-mail: [email protected]
http://www.fibrahotel.com 27 @FibraHotel