GRUPO GICSA, S.A.B. DE C.V.: GICSA Announces Consolidated Results for Fourth Quarter 2020

MEXICO CITY, MEXICO / ACCESSWIRE / February 24, 2021 / GRUPO GICSA, S.A.B. de C.V. ("GICSA" or "the Company") (BMV:GICSA), a leading Mexican company specialized in the development, investment, commercialization and operation of shopping malls, corporate offices and mixed use properties, announced today its results for the fourth quarter ("4Q20") and for the twelve months ("2020") period ended December 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 be adjusted in the future.

Main Highlights

Corporate

• In December the epidemiological color-code system in Mexico City and State of Mexico returned to red; thus, the operation of businesses was limited only to essentials. Despite these restrictions, during October and November, the traffic of visitors continued to show signs of recovery. As a result, during the quarter, the traffic increased 58% compared to 3Q20, and reached 64% compared to 4Q19 levels.
• In December, the Company successfully refinanced the loan of Paseo Interlomas and its expansion. Therefore, starting in January 2021, the credits were consolidated resulting in an outstanding balance of Ps. 2,090 million, for a tenor of 7 years with a coupon rate of 28-day TIIE + 250bp (with incremental spread of 25bp each quarter until reaching 350 basis points in December 2021).
• Aligned with our policy to preserve liquidity, on February 2, the local bondholders' meeting identified with the ticker symbols GICSA 16U and GICSA 18U took place. The amendments to certain obligations and interest capitalization up to 9 additional months to the conditions previously agreed. With this, approximately Ps. 342 million will be capitalized.
• During 2020 and as of December 31, we signed nearly 1,200 agreements under the Covid-19 support program for tenants for approximately Ps. 397 million in credit notes, corresponding to approximately 12% of annual fixed rent.
  • According to IFRS 16, in 4Q20 and 2020, Ps. 83 million and Ps. 147 million were recognized in the income statement, respectively. The remaining balance is maintained in the financial position statement and will be gradually amortized according with the remaining term of each contract.
  • With these agreements we were able to recover 84% of collections in 4Q20, an increase of 28% compared to 3Q20. The recovery rate in offices was 98%, while in shopping centers it was 77%.
  • This quarter, in addition to the proportional recognition of the Covid-19 support program, we added an estimate of uncollectible accounts receivable amounting to Ps. 50 million, totaling Ps. 91 million in 2020, an increase of 9% and 94%, respectively, compared with the same period in 2019. This effect is reflected in operating expenses and subtracted from NOI.

Operational

• GICSA reported a total of 965,731 square meters (m²) of Gross Leasable Area (GLA) comprised of 17 properties in operation at the close of 4Q20. GICSA's proportional GLA was 86% equivalent to 826,288 square meters. This represented an increase of 6% of total GLA and 7% of proportional GLA, compared to 4Q19.
• During 4Q20, we opened 126 new doors (29,086 square meters) corresponding to the portfolio in operation, an increase of 45% compared to 4Q19, and an increase of 350% compared to 3Q20.
• During 4Q20, we signed 67 contracts (12,918 square meters) corresponding to the portfolio, a decrease of 29% compared to 4Q19, and an increase of 31% compared to 3Q20.
• As of 4Q20, the occupancy rate of the stabilized portfolio was 88% and 85% of the total portfolio.
• As of 4Q20, the renewal rate of the stabilized portfolio was 94%.
• As of 4Q20, the average rent per square meter of the stabilized portfolio was Ps. 371, and Ps. 370 in the total portfolio, an increase of 4.2% and 4.4%, respectively, compared to 4Q19.
• As of 4Q20, lease spread of the shopping malls corresponding to the stabilized portfolio was 5.5%, above the inflation.

Financial

• Fixed rental revenues in 4Q20, after the proportional recognition of the Covid-19 support program, was Ps. 666 million, a decrease of 15% compared to 4Q19. Without considering this effect, fixed rental revenues was Ps. 768 million, a decrease of 2% compared to 4Q19.
• Total revenue in 4Q20, after the proportional recognition of the Covid-19 support program, was Ps. 1,037 million, a decrease of 7% compared to 4Q19. Without considering this effect, total revenue in 4Q20 was Ps. 1,145 million, an increase of 2% compared to 4Q19.
• During 4Q20, corporate and operating expenses declined by 40% compared to 4Q19. It is important to note that the majority of these savings will be permanent.
• As a result of the aforementioned, consolidated and proportional NOI in 4Q20, after the proportional recognition of the Covid-19 support program, was Ps. 797 million and Ps. 661 million, respectively, a decrease of 2% and an increase of 1%, respectively, compared to 4Q19. Without considering this effect, consolidated and proportional NOI in 4Q20, was Ps. 905 million and Ps. 746 million, respectively, an increase of 12% and 14%, respectively, compared to 4Q19.
• Consolidated and proportional EBITDA in 4Q20, after the proportional recognition of the Covid-19 support program, was Ps. 542 million and Ps. 407 million, a decrease of 23% and 26%, respectively, compared to 4Q19. Without considering the extraordinary net income of the Cero5Cien residential project, consolidated and proportional EBITDA increased by 2% and 7%, respectively, compared to 4Q19.
• Consolidated and proportional debt at the close of 4Q20 was Ps. 27,278 million and Ps. 24,788 million, respectively, a decrease of 4% and 5%, respectively, compared to consolidated debt in 4Q19. Consolidated LTV was 38% in 4Q20.

For a full version of GICSA's Fourth Quarter 2020 Earnings Release, please visit:

http://www.gicsa.com.mx/en/investors-relationship/financial-information

Conference Call

GICSA cordially invites you to its Fourth Quarter 2020 Conference call

Thursday, February 25, 2021
12:00 PM Eastern time
11:00 AM Mexico City Time

Presenting for GICSA:
Mr. Isaac Cababie, Deputy Executive Director
Diódoro Batalla - Chief Financial Officer

To access the call, please dial:
1 [phone] U.S. participants
1 [phone] 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 December 31, 2020, the Company owned 17 income-generating properties, consisting of eleven 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) 965,731 square meters, and a Proportional GLA of 826,288 square meters. Since June 2015, GICSA is listed on the Mexican Stock Exchange under the ticker (BMV: GICSA B).

Investor Relations Contact:

Diódoro Batalla, CFO
Tel: [phone] Ext. 4444
Email: [e-mail]

Yinneth Lugo, IR
Tel: [phone]
Email: [e-mail]

SOURCE: GRUPO GICSA, S.A.B. DE C.V.

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