(102-14)
Dear investors,
Although 2020 was a year of great challenges, we are looking forward to an encouraging future, mainly because of the vaccination plan that began in January, although we know that the economy will take time to reopen, and it will be a gradual process. Despite this, I am pleased to share that we have been able to renew leasing contracts with our retail partners and to market and bring in new contracts for locales left vacant by the events of the past year.
To deal with the continuing impact of the pandemic on the economy, we designed support plans for our retail tenants, offering them temporary rent discounts, in order to retain as many of these as possible and minimize vacancy levels.
Our consolidated revenues and NOI totaled $4.64 billion pesos and $3.73 million pesos, respectively, declines of 19.9% and 20.6% from the previous year. The NOI margin shrank by 72.2 basis points to 80.4%, while AFFO per certificate with economic rights was $2.07 pesos, 24.7% lower than the year before. For this period, the Technical Committee approved a distribution of $1.00 pesos per CBFI, which is 48.2% of AFFO.
Construction work on our new Parque Tepeyac retail development continued within budget and on time, and is now 58% complete. We will shortly be signing a strategic alliance with a company specializing in technology, distribution and logistics, with which we plan to connect our physical spaces with the digital world and offer an omnichannel scheme that complements our current retail offering.
Our consolidated revenues and NOI totaled $4.64 billion pesos and $3.73 million pesos, respectively.
Construction work on our new Parque Tepeyac retail development continued within budget and on time, and is now 58% complete.
We admit that the immediate future is uncertain, but we will be doing everything necessary to temper the impact of the pandemic and keep occupancy at acceptable levels, given the circumstances. Meanwhile, we will be conservative with our cash flow, preserving liquidity and prioritizing our investment and financial commitments and our job sources. We will maintain a conservative long-term vision, accompanied by a solid capital structure and operating discipline, while keeping an eye out for opportunities as they arise.
I am grateful to our work team for their commitment, and for the support of our shareholders and board members, and particularly our tenants, who have repaid our support by helping to keep our businesses active.
Salvador Daniel Kabbaz Zaga
Chief Executive Officer
