Latest news with #DBMBF
Yahoo
26-07-2025
- Business
- Yahoo
FIBRA Macquarie (DBMBF) Q2 2025 Earnings Call Highlights: Record Performance Amid Macroeconomic ...
Consolidated Revenues: Record per certificate results in underlying US dollar terms. NOI (Net Operating Income): Record results driven by robust lease GLA performance. AFFO (Adjusted Funds From Operations): $30 million, an 8.6% increase year over year. Distribution Yield: Attractive dollarized cash yield of 8% with a mid 80% payout ratio. Leasing Activity: 1.3 million square feet executed, rental rates grew by 6.8% to $6.45 per square meter. Renewal Spreads: Achieved 28% on commercially negotiated leases. Industrial Occupancy: 94.8%, up 10 basis points sequentially. Retail Portfolio NOI Growth: 4.5% for the quarter. Retail Occupancy: 93.4%, up more than 130 basis points year over year. Real Estate Net LTV: Below 33% as of June 30. Liquidity: $420 million US. Debt Repayment: $50 million US during 2Q '25. FY25 AFFO Guidance: $115 to $119 million US. Cash Distributions Guidance: MXN2.45 per certificate for FY25. FX Assumption Update: Revised to MXN18.5 per US dollar from 20.5%. Warning! GuruFocus has detected 8 Warning Signs with DBMBF. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points FIBRA Macquarie (DBMBF) reported record per certificate results in key metrics such as consolidated revenues, NOI, AFFO, and NAV for the second quarter of 2025. The industrial portfolio maintained a high occupancy rate of 94.8% and achieved a 6.8% increase in rental rates, reaching $6.45 per square meter. The company successfully executed 1.3 million square feet of leasing activity with notable renewal spreads of 28% on commercially negotiated leases. FIBRA Macquarie's retail portfolio showed steady improvements with a 4.5% NOI growth and occupancy reaching a post-pandemic high of 93.4%. The company maintains a strong balance sheet with a real estate net LTV below 33% and robust liquidity of $420 million US, allowing for strategic growth and development opportunities. Negative Points Macroeconomic uncertainties, including tariff negotiations and geopolitical factors, are contributing to slower decision-making and impacting new leasing activities. The company faces challenges in larger Class A buildings due to tenants' hesitance in making significant CapEx decisions amid the current macro backdrop. There is a general softness in near-shoring markets such as Monterrey, Juarez, and Reynosa, which remain relatively weak. FIBRA Macquarie's development program faces potential risks related to increased land prices and infrastructure costs, which could impact yield on cost levels. The company is trading at a significant discount to its asset value, raising questions about potential buybacks and capital allocation priorities. Q & A Highlights Q: What is the current gap between your interest rents and the market trends for your industrial portfolio? A: Simon Hanna, CEO, stated that they achieved record spreads of 28% in the second quarter. They are on track to meet their goal of double-digit spreads for the year, with only 5% of scheduled expirations remaining. They expect to maintain solid double-digit spreads with the remaining leases. Q: Can you provide insights into the retail activity and its resilience to tariff noise affecting the industrial portfolio? A: Simon Hanna, CEO, mentioned that retail, which contributes about 15% of their overall NOI, had a strong quarter. They see more tailwinds than headwinds for the second half of the year, with expectations of resilient performance in key metrics like occupancy and rental rates. The recent peso appreciation has also been beneficial. Q: Could you comment on the commercialization for the FRISA JV in Tijuana? A: Simon Hanna, CEO, expressed excitement about the project, which is still in preparatory stages. The location is favorable for both manufacturing and logistics due to its proximity to labor and transport connections. Tijuana shows relative activity compared to other near-shoring markets, and they feel confident about going vertical there earlier. Q: Are there any risks to the yield on cost levels between 9% and 11% for your CapEx program? A: Andrew McDonald-Hughes, CFO, stated they remain confident in maintaining those levels despite increases in land prices and infrastructure costs. They expect the lower end of the range in active markets like Tijuana and Mexico City, with other markets trending towards the midpoint. Q: Are there any refinancing activities planned to extend maturities or optimize your debt structure? A: Andrew McDonald-Hughes, CFO, confirmed they are actively planning to extend maturities and optimize their debt structure, maintaining leverage guidance between 30% and 35% LTV. They see positive indications from debt markets and are confident in delivering solid results. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
26-07-2025
- Business
- Yahoo
FIBRA Macquarie (DBMBF) Q2 2025 Earnings Call Highlights: Record Performance Amid Macroeconomic ...
Consolidated Revenues: Record per certificate results in underlying US dollar terms. NOI (Net Operating Income): Record results driven by robust lease GLA performance. AFFO (Adjusted Funds From Operations): $30 million, an 8.6% increase year over year. Distribution Yield: Attractive dollarized cash yield of 8% with a mid 80% payout ratio. Leasing Activity: 1.3 million square feet executed, rental rates grew by 6.8% to $6.45 per square meter. Renewal Spreads: Achieved 28% on commercially negotiated leases. Industrial Occupancy: 94.8%, up 10 basis points sequentially. Retail Portfolio NOI Growth: 4.5% for the quarter. Retail Occupancy: 93.4%, up more than 130 basis points year over year. Real Estate Net LTV: Below 33% as of June 30. Liquidity: $420 million US. Debt Repayment: $50 million US during 2Q '25. FY25 AFFO Guidance: $115 to $119 million US. Cash Distributions Guidance: MXN2.45 per certificate for FY25. FX Assumption Update: Revised to MXN18.5 per US dollar from 20.5%. Warning! GuruFocus has detected 8 Warning Signs with DBMBF. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points FIBRA Macquarie (DBMBF) reported record per certificate results in key metrics such as consolidated revenues, NOI, AFFO, and NAV for the second quarter of 2025. The industrial portfolio maintained a high occupancy rate of 94.8% and achieved a 6.8% increase in rental rates, reaching $6.45 per square meter. The company successfully executed 1.3 million square feet of leasing activity with notable renewal spreads of 28% on commercially negotiated leases. FIBRA Macquarie's retail portfolio showed steady improvements with a 4.5% NOI growth and occupancy reaching a post-pandemic high of 93.4%. The company maintains a strong balance sheet with a real estate net LTV below 33% and robust liquidity of $420 million US, allowing for strategic growth and development opportunities. Negative Points Macroeconomic uncertainties, including tariff negotiations and geopolitical factors, are contributing to slower decision-making and impacting new leasing activities. The company faces challenges in larger Class A buildings due to tenants' hesitance in making significant CapEx decisions amid the current macro backdrop. There is a general softness in near-shoring markets such as Monterrey, Juarez, and Reynosa, which remain relatively weak. FIBRA Macquarie's development program faces potential risks related to increased land prices and infrastructure costs, which could impact yield on cost levels. The company is trading at a significant discount to its asset value, raising questions about potential buybacks and capital allocation priorities. Q & A Highlights Q: What is the current gap between your interest rents and the market trends for your industrial portfolio? A: Simon Hanna, CEO, stated that they achieved record spreads of 28% in the second quarter. They are on track to meet their goal of double-digit spreads for the year, with only 5% of scheduled expirations remaining. They expect to maintain solid double-digit spreads with the remaining leases. Q: Can you provide insights into the retail activity and its resilience to tariff noise affecting the industrial portfolio? A: Simon Hanna, CEO, mentioned that retail, which contributes about 15% of their overall NOI, had a strong quarter. They see more tailwinds than headwinds for the second half of the year, with expectations of resilient performance in key metrics like occupancy and rental rates. The recent peso appreciation has also been beneficial. Q: Could you comment on the commercialization for the FRISA JV in Tijuana? A: Simon Hanna, CEO, expressed excitement about the project, which is still in preparatory stages. The location is favorable for both manufacturing and logistics due to its proximity to labor and transport connections. Tijuana shows relative activity compared to other near-shoring markets, and they feel confident about going vertical there earlier. Q: Are there any risks to the yield on cost levels between 9% and 11% for your CapEx program? A: Andrew McDonald-Hughes, CFO, stated they remain confident in maintaining those levels despite increases in land prices and infrastructure costs. They expect the lower end of the range in active markets like Tijuana and Mexico City, with other markets trending towards the midpoint. Q: Are there any refinancing activities planned to extend maturities or optimize your debt structure? A: Andrew McDonald-Hughes, CFO, confirmed they are actively planning to extend maturities and optimize their debt structure, maintaining leverage guidance between 30% and 35% LTV. They see positive indications from debt markets and are confident in delivering solid results. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-05-2025
- Business
- Yahoo
FIBRA Macquarie (DBMBF) Q1 2025 Earnings Call Highlights: Record NOI and AFFO Amid Market Challenges
NOI Growth: 20% increase in NOI. AFFO per Certificate: Record AFFO per certificate of MXN0.7556. Industrial Leasing Activity: 1.6 million square feet completed, with industrial releasing spreads of 17%. Same-Store Occupancy: 95.8% for industrial portfolio. Retail Portfolio Occupancy: 93% with average monthly rental rates at 5.2%. Annual Rental Rate Growth: 5.7% for industrial portfolio. Real Estate Net LTV: 33% as of March 31. Net Debt-to-EBITDA: 5.2 times. Available Liquidity: $420 million. Weighted Cost of Debt: 5.7%, with 82% being fixed rate. FY25 AFFO Guidance: $115 million to $119 million in U.S. dollars. Cash Distributions Guidance: MXN2.45 per certificate for FY25. Warning! GuruFocus has detected 10 Warning Signs with DBMBF. Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. FIBRA Macquarie (DBMBF) reported record NOI and AFFO in U.S. dollar terms for the first quarter of 2025. The company achieved industrial releasing spreads of 17% and completed 1.6 million square feet of industrial leasing activity. The retail portfolio showed year-over-year occupancy gains, closing the quarter at 93% with average monthly rental rates increasing by 5.2%. FIBRA Macquarie (DBMBF) maintains a strong liquidity position with available liquidity of $420 million and no scheduled debt maturities until September 2026. The company reaffirmed its guidance for cash distributions in FY25 of MXN2.45 per certificate, indicating a well-covered distribution in the sector. Occupancy rates have been declining, with some markets like Juarez and Villahermosa experiencing softer demand. The macroeconomic landscape presents challenges, including recent changes in tariff policies affecting trade and investment environments. New leasing activity is being impacted by broader market uncertainty, particularly regarding tariff policy. The company faces a challenging leasing environment in certain markets, with limited short-term lease prospects. Retention rates have decreased from 89% to 79%, reflecting some tenant move-outs due to expansions or operational adjustments. Q: Can you provide some color on how the lease-up, both at the pre-leasing level and after delivery of new properties, is going? Has this changed your preferences for capital allocation? A: Simon Hanna, CEO: Recent deliveries in Juarez and Villahermosa are facing challenges due to softer market conditions. We are cautious with new construction starts but continue to prepare existing land banks for future development. We are also exploring opportunistic investments, particularly in land with energy strategies and single asset purchases in Mexico City. Share buybacks are considered but balanced with other investment opportunities. Q: When do you expect occupancy to stabilize, and are you reaching out to tenants for early renewals? A: Simon Hanna, CEO: We are comfortable with current occupancy trends despite a slight decline. We have proactively pursued accelerated renewals, bringing forward over 600,000 square feet of scheduled expirations. We aim to maintain current occupancy levels and are optimistic about bringing forward more renewals from 2026 into 2025. Q: Are tenants looking to change lease terms, and are there specific industries showing incremental demand? A: Simon Hanna, CEO: We haven't seen significant shifts in lease terms. The leasing environment is subdued, but we see opportunities, particularly with auto parts tenants. The demand is consistent across various sectors, though at lower levels compared to previous years. Q: How is the retail portfolio performing, and what is the outlook for foot traffic and tenant performance? A: Simon Hanna, CEO: Foot traffic is not a primary indicator of tenant performance. Despite a soft quarter for cinema releases, retail performance was strong with 5% renewal spreads and stable occupancy at 93%. We expect continued NOI growth and stable occupancy for the remainder of the year. Q: Can you elaborate on the drivers behind the occupancy drop and when you expect recovery? A: Simon Hanna, CEO: The drop was mainly in Monterrey due to tenants relocating for expansion. These were planned move-outs from 2024. We have prospects for backfilling these spaces and expect no significant trend shifts. The overall leasing activity has decreased due to market uncertainty. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
