Fibra Inn Reports 6.0% Increase of Same Store Sales for Third Quarter

Fibra Inn Announces Consolidated Results for the Third Quarter 2014

Deutsche Bank Mexico, S.A., Institución de Banca Múltiple, Trust Division F/1616 or Fibra Inn (BMV:FINN13), a Mexican real estate investment trust specializing in the hotel industry serving the business traveler, today announced its non-audited third quarter results for the period ended September 30, 2014. These results were prepared in accordance with International Financial Reporting Standards and are stated in nominal Mexican pesos (Ps.).

Third Quarter 2014 Financial Highlights

  • Fibra Inn concluded 3Q14 with 27 hotels under operation, 7 hotels in the process of acquisition, and 3 developments, representing 5,532 rooms, of which 645 are under construction.
    • In terms of Same Store Sales for the 22 comparable hotels1 in the portfolio:
    • Room revenues: Ps. 203.0 million; an increase of 6.0% compared to the Ps. 191.5 million in 3Q13.
    • Occupancy: 59.1%; a decrease of 2.6 pp.
    • Average Daily Rate (“ADR”): Ps. 1,002.2; an increase of 5.6%.
    • Revenue per Available Room (“RevPAR”): Ps. 592.2; an increase of 1.1%.
  • Total Revenue: reached Ps. 224.4 million, broken down as follows:
    • Room Revenue: Ps. 210.3 million (93.7% of total Fibra revenues).
    • Rental Revenue: Ps. 14.1 million (6.3% of total Fibra revenues).
  • Net Operating Income (“NOI”)2: Ps. 86.7 million, an increase of 48.0% compared to the Ps. 58.6 million reported in 3Q13. This represented a margin of 38.7% over Fibra revenues, representing an increase of 5.7 pp versus 2Q14.
  • Earnings before interest, taxes, depreciation and amortization (“EBITDA”): Ps. 74.8 million, a 49.3% increase compared to Ps. 50.1 million reported in 3Q13. This represented a margin of 33.3% over total revenues, representing a 7.0 pp increase versus 2Q14. EBITDA per room was Ps. 19.2 thousand.
  • Net Income: Ps. 33.5 million, which includes non-monetary charges of Ps. 31.6 million.
  • FFO3: Ps. 65.0 million, which represented a decrease of 15.5% compared to 3Q13 (3Q13 included Ps. 11 million from exchange rate fluctuations, that were applied to the acquisition of the Marriott Puebla Hotel).
  • Distributions to Holders: Ps. 59.9 million; equivalent to Ps. 0.2323 per CBFI4 for a dividend yield of 5.3%5.
  • Acquisitions and Recent Events:
    • The General Ordinary and Extraordinary Shareholders’ Meetings held on October, 17, 2014 (with 83.5% quorum) unanimously approved resolutions for the capital Increase and the Modification of Fibra Inn’s Remuneration for Services provided by the Advisor, as well as Modifications to the Trust.
    • The Extraordinary Shareholders’ Meeting approved a Ps. 2.3 billion credit line contracted on September 9, 2014.
    • Acquisitions: two Casa Grande hotels (Chihuahua and Delicias), four Microtel Inn & Suites by Wyndham hotels (Chihuahua, Culiacan, Toluca, Cd. Juarez) and one Crowne Plaza Hotel (Monterrey).
    • Casa de Bolsa Santander was appointed market maker.
    • 50 new rooms were added at the Camino Real Guanajuato Hotel and 104 additional rooms in the Marriot Puebla as part of the Company’s room expansion strategy.
  • At September 30, 2014:
    • Cash: Ps. 277.5 million.
    • Bank Debt increased to Ps. 901.1 million, which represents a loan-to-value equal to 16.2% as well as a coverage ratio for the debt service of 2.1x.
    • Equity: Ps. 4,512.3 million.
  • CAPEX during the quarter was equal to Ps. 5.0 million.

1 Of the 30 hotels of the total portfolio, 22 are comparable, excluding hotels under agreement: two Casa Grande hotels, four Microtel inn & Suites by Wyndham, and one Crowne Plaza as well as the recently-constructed Aloft Guadalajara hotel.

2 NOI is the calculation of the Fibra’s revenue (rent and other revenue) minus operating expenses for administration, maintenance, lodging, utilities, fees, royalties, marketing and promotion, as well as property tax and insurance.

3 FFO is calculated as the net result plus the non-monetary charges (depreciation and executive equity-based compensation).

4 Calculated using 258,334,218 CBFIs outstanding on September 30, 2014.

5 Calculated using the closing price of Ps. 17.53 per CBFI on September 30, 2014.


Statement from the President of the Technical Committee

“Fibra Inn’s management reaffirms its commitment with its current holders of the CBFI who granted the Company their vote of confidence with the approval of the capital increase and the modifications to Fibra Inn’s remuneration for services rendered to the Fibra by the Advisor. Our strategy is based on portfolio growth, brand diversification, geographic expansion and dividend generation for CBFI holders. We have ahead of time the objective we set during the IPO: to manage a portfolio of 30 hotels by the end of 2014. Our responsibility is to continue increasing properties to our portfolio that add value in order to benefit our investors,” stated Victor Zorrilla, President of the Technical Committee of Fibra Inn.