Macquarie Mexican REIT Announces First Quarter 2013 Earnings and Distribution; Provides Distribution Guidance for 2013

  Macquarie Mexican REIT Announces First Quarter 2013 Earnings and
  Distribution; Provides Distribution Guidance for 2013

  *1.2 million square feet of property leased in 1Q13; 2.1 million square
    feet of leases currently pending execution
  *Northern Mexico fundamentals continue to improve
  *Portfolio occupancy rate down; impacted by 4Q12 early lease termination
  *Total revenues for 1Q13 were Ps.407.0 million; net operating income of
    Ps.360.3 million
  *Funds from operations of Ps.211.3 million in 1Q13
  *First quarter distribution of Ps.0.47 per CBFI
  *Distribution guidance for 2013 of Ps.1.80 to Ps.2.00 per CBFI

Business Wire

MEXICO CITY -- April 26, 2013

Macquarie Mexican REIT (MMREIT) (BMV: FIBRAMQ), a real estate investment trust
(fideicomiso de inversíon en bienes raices) targeting industrial, office and
retail real estate assets in Mexico, today announced its results for the
quarter ended March 31, 2013.

“We are pleased with the results we were able to deliver during our first full
quarter as a publicly traded trust,” said Jaime Lara, Chief Executive Officer
of MMREIT. “Our performance during the period is consistent with our
expectations and is indicative of the strength of our portfolio. We look
forward to continued improvement in a number of markets, and growing our
portfolio over the course of 2013.”

First Quarter 2013 Results

MMREIT’s total revenue in the first quarter of 2013 amounted to Ps.407.0
million. Rental revenues totaled Ps.384.2 million. Net operating income (NOI)
for the quarter was Ps.360.3 million. NOI per real estate trust certificate
(Certificado Bursátil Fiduciario Inmobiliario or CBFI) was Ps.0.64 based on
567,166,126 total outstanding CBFIs as of March 31, 2013. Net profit for the
first quarter totaled Ps.84.4 million, or Ps.0.15 per CBFI based on
567,166,126 total outstanding CBFIs as of March 31, 2013.

Funds from Operations (FFO) for the first quarter 2013 totaled Ps.211.3
million, or Ps.0.37 per CBFI based on 567,166,126 total outstanding CBFIs as
of March 31, 2013.

Total cash and cash equivalents amounted to Ps.2,089.3 million as of March 31,
2013. Total liabilities outstanding at the end of the first quarter totaled
Ps.9,778.4 million.

Property Operating Results and Leasing Activity

MMREIT Portfolio Highlights as of March 31, 2013
Metric                             4Q12              1Q13
Occupancy Rate                     92.1%             89.3%
Avg. Monthly Rent per              $4.58             $4.58
Leased m^2
Tenant Retention Rate              85%               58%
Weighted Average Lease             3.5 years         3.2 years
Term
                                                    

As of March 31, 2013, MMREIT owned 244 industrial properties located in 21
cities across 15 states in Mexico, with approximately 2.5 million square
meters of gross leasable area. Occupancy was 89.3% at the end of the first
quarter, down from 92.1% as of December 31, 2012. This reduction in occupancy
was mainly due to the early termination of a lease in Ciudad Juarez without
which occupancy at the end of the quarter would have been largely in line with
fourth quarter 2012. The tenant terminating this lease paid MMREIT a US$7.6
million early termination fee. This amount represents more than 3 years of
rent under the terminated lease and was reflected in MMREIT’s 4Q12 operating
results. MMREIT anticipates executing long-term leases for the majority of the
space during the second quarter of 2013. The portfolio’s weighted average
remaining lease term (based on annualized base rent) as of March 31, 2013 was
3.2 years, down from 3.5 years in 4Q12.

“We continue to see stronger leasing demand, especially across the northern
Mexican states, which have been beneficiaries of the upswing in Mexico’s
manufacturing output,” said Lara. “We are encouraged by the response received
to date from existing and prospective tenants and expect our 2013 occupancy
rate to be at least in line with historical averages.”

MMREIT recorded 24 lease transactions totaling approximately 1.2 million
square feet in the first quarter of 2013. Rental rates on renewals were
broadly stable across the portfolio except on a small number of leases where
renewal rent was significantly lower than terminating rent, resulting in flat
average rent per leased square foot. In addition, MMREIT has 26 leases pending
execution, totaling 2.1 million square feet. MMREIT’s tenant retention rate
was 58% in the first quarter of 2013 based on leased area, impacted mainly by
the termination of the Ciudad Juarez lease. Excluding the early contract
termination, the tenant retention rate would have been 78%.

“While the markets and leasing demand have improved, recovery has not yet
reached a point where it has shifted rental rate bargaining power to property
owners in some of our key markets. We expect rental rates to increase over
time, but rate improvement will lag the pace of improving occupancy rate
numbers. Some notable exceptions to this dynamic are markets that have
experienced more rapid recovery, such as Puebla, Hermosillo, Mexico City and
Tijuana,” added Lara.

Integration Update

MMREIT’s properties are currently administered under transitional third party
property administration agreements, however, MMREIT is well advanced on the
transition process that will see the formation of MMREIT’s own property
administrator.

Distribution for First Quarter 2013

On April 25, 2013, MMREIT declared a distribution to CBFI holders for the
quarter ended March 31, 2013 of Ps.0.47 per CBFI. This distribution includes
an ordinary distribution of Ps. 0.35 per CBFI and an extraordinary
distribution of Ps. 0.12 per CBFI corresponding to 25% of the Founder’s Grant
reinvestment on closing of the global offering. None of the distribution
includes a taxable component. MMREIT’s current distribution policy is to pay
quarterly cash distributions.

Distribution Guidance for 2013

MMREIT has established a full year 2013 distribution guidance range of Ps.1.80
to Ps.2.00 per CBFI based on 567,166,126 total outstanding CBFIs as of March
31, 2013.

The principal drivers supporting MMREIT’s 2013 guidance include the following:

  *Year-end occupancy expected to be above 90% in line with historical
    portfolio performance;
  *Rental rates remaining flat; and
  *NOI margin of 90%.

Webcast and Conference Call

MMREIT will host a webcast and conference call to discuss quarterly results
and current market conditions on Friday, April 26, 2013 at 7:30 a.m. CT / 8:30
a.m. ET. The conference call, which will also be webcast, can be accessed
online at www.macquarie.com/mmreit or by dialing toll free +1-877-303-6152.
Callers from outside the United States may dial +1-678-809-1066. Please ask
for the Macquarie Mexican REIT First Quarter 2013 Earnings Call.

An audio replay of the conference call will be available through April 29,
2013 by dialing +1-855-859-2056 or +1-404-537-3406 for callers outside the US.
The passcode for the replay is 43742168. A webcast archive of the conference
call and a copy of first quarter 2013 financial information will also be
available on MMREIT’s website: www.macquarie.com/mmreit.

About Macquarie Mexican REIT

Macquarie Mexican REIT (MMREIT) (BMV: FIBRAMQ) is a real estate investment
trust (fideicomiso de inversíon en bienes raices), or FIBRA, listed on the
Mexican Stock Exchange (Bolsa Mexicana de Valores) targeting industrial,
retail and office real estate opportunities in Mexico, with a primary focus on
stabilized income-producing properties. MMREIT’s portfolio consists of 244
industrial properties located in 21 cities across 15 Mexican states (as of
March 31, 2013). MMREIT is managed by Macquarie México Real Estate Management,
S.A. de C.V. which operates within the Macquarie Infrastructure and Real
Assets division of Macquarie Group. For additional information about MMREIT,
please visit www.macquarie.com/mmreit.

About Macquarie Group

Macquarie Group (Macquarie) is a global provider of banking, financial,
advisory, investment and funds management services. Macquarie’s main business
focus is making returns by providing a diversified range of services to
clients. Macquarie acts on behalf of institutional, corporate and retail
clients and counterparties around the world. Founded in 1969, Macquarie
operates in more than 70 office locations in 28 countries. Macquarie employs
approximately 13,500 people and has assets under management of over US$353
billion (as of September 30, 2012).

Macquarie Infrastructure and Real Assets, a division of Macquarie, is a
leading global alternative asset manager specializing in investments across
infrastructure, real estate, agriculture and energy. Macquarie Infrastructure
and Real Assets manages 49 funds with US$101 billion of assets under
management across 25 countries (as of December 31, 2012).

Cautionary Note Regarding Forward-Looking Statements: This release may contain
forward-looking statements. Forward-looking statements involve inherent risks
and uncertainties. We caution you that a number of important factors could
cause actual results to differ significantly from these forward-looking
statements.

THIS RELEASE IS NOT AN OFFER FOR SALE OF SECURITIES IN THE UNITED STATES, AND
SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION
OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED.

All figures included herein have been prepared in accordance with Mexican IFRS
(MFRS)

Unaudited condensed interim consolidated financial statements

                                                            
CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE
MONTHS ENDED MARCH 31, 2013
^CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS
                                                                
                                                                3 Months Ended
                                                                Mar 31 2013
                                                       Note     $'000
                                                                
Property rental income                                 4(a)     407,028
Property expenses                                           (38,217)
Net property income                                         368,811
                                                                
Management fees                                        14       (35,441)
Acquisition related expenses                           4(d)     (7,382)
Professional, legal fees and insurance                4(e)   (21,853)
Total expenses                                              (64,676)
                                                                
Finance costs                                                   (148,752)
Interest income                                                 15,202
Foreign exchange gain                                  4(c)     496,480
Net unrealized foreign exchange loss on foreign
currency denominated investment property measured at  4(b)   (582,688)
fair value
Profit for the period                                       84,377
                                                                
Other comprehensive income
Other comprehensive income for the period                   -
Total comprehensive profit for the period                   84,377
                                                           
Earnings per CBFI
Basic earnings per CBFI (pesos)                        8        0.15
Diluted earnings per CBFI (pesos)                     8      0.15
                                                                

                                                         
CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT MARCH 31,
2013
^CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS
                                                                   
                                               March 31 2013       Dec 31 2012
                                    Note       $'000               $'000
Current assets
Cash and cash equivalents                      2,089,258           1,324,884
Trade receivables                              82,570              144,934
Value-added tax receivable                     2,414,762           2,418,952
Total current assets                           4,586,590           3,888,770
                                                                   
Non-current assets
Restricted cash                                73,534              75,878
Other assets                                   4,345               319
Investment properties               9          17,944,567          18,476,503
Total non-current assets                18,022,446       18,552,700
Total assets                            22,609,036       22,441,470
                                                                   
Current liabilities
Trade and other payables                       135,763             14,286
Interest bearing                    10         -                   886,794
liabilities
Total current liabilities                      135,763             901,080
                                                                   
Non-current liabilities
Other liabilities                              445,469             465,706
Interest bearing                    10         9,197,192           9,677,860
liabilities
Total non-current                       9,642,661        10,143,566
liabilities
Total liabilities                       9,778,424        11,044,646
                                                       
Net Assets                              12,830,612       11,396,824
                                                                   
Equity
CBFIs issued                        11         13,471,334          12,121,923
Accumulated loss                        (640,722)        (725,099)
Total equity                                   12,830,612          11,396,824
                                                                   

                                                       
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE THREE
MONTHS ENDED MARCH 31, 2013
^CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS
                                                                    
                                Contributed       Accumulated       Total
                                Equity            Loss
                     Note       $'000             $'000             $'000
                                                                    
Total equity
at December                     12,121,923        (725,099)         11,396,824
31, 2012
Issued CBFIs,
net of issue         11         1,349,411         -                 1,349,411
costs
Total
comprehensive            -              84,377         84,377
profit for the
period
Total equity
at March 31,             13,471,334     (640,722)      12,830,612
2013
                                                                    

                                                      
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED
MARCH 31, 2013
^CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS
                                                                
                                                                3 Months Ended
                                                                Mar 31 2013
                                                                $'000
                                               Note             Inflows /
                                                                (Outflows)
Operating activities:
Profit for the period                                           84,377
Adjustments for:
Net unrealized foreign exchange loss on
foreign currency denominated investment        4(b)             582,688
property measured at fair value
Straight line rental income adjustment                          (4,026)
Leasing commissions amortization                                1,297
Net foreign exchange (gain) /loss              4(c)             (511,676)
Finance costs recognized in profit for                          148,752
the period
                                                                
Movements in working capital:
Decrease in receivables                                         66,554
Increase in payables                                            71,769
Net cash flows from operating activities                        439,735
                                                                
Investing activities:
Purchase of investment property                                 (52,049)
Net cash flows from investing activities                        (52,049)
                                                                
Financing activities:
Repayment of interest bearing                                   (893,942)
liabilities
Interest paid                                                   (84,665)
Proceeds from issue of CBFIs, net of           11               1,349,411
issue costs
Net cash flows from financing activities                        370,804
                                                                
Net increase in cash and cash                                   758,490
equivalents
Cash, cash equivalents and restricted                           1,400,762
cash at the beginning of the period
Effect of exchange rate changes on cash               3,540
and cash equivalents
Cash, cash equivalents and restricted cash at the         2,162,792
end of the period

Contact:

Investor Relations:
Eduardo Camarena, +52 (55) 9178 7730
Investor Relations, Macquarie Mexican REIT
eduardo.camarena@macquarie.com
or
For international press queries:
Paula Chirhart, +1-212-231-1239
Corporate Communications, Macquarie Group
paula.chirhart@macquarie.com
or
For press queries in Mexico:
CarralSierra PR & Strategic Communications
Jose Manuel Sierra
Cel: +52 55 5105 5907
Tel: +52 55 5286 0793
jmsierra@carralsierra.com.mx
or
Andrea Barba
Cel: +52 55 3355 4968
Tel: +52 55 5286 0793
abarba@carralsierra.com.mx
 
Press spacebar to pause and continue. Press esc to stop.