Dear investors,
I am pleased to share our company’s positive fourth-quarter results, showing a steady recovery in occupancy levels and shopper traffic in our retail properties, which attest to a pickup in consumption and brought higher leasing and parking revenues. Occupancy rates were stable in our office portfolio; we noticed heightened interest in available spaces and were able to negotiate in advance and renew many of the contracts that expired this year. Tenant traffic in our office portfolio has risen as companies gradually bring their employees back to work in person. Our job is to offer conditions of safety and peace of mind to tenants and visitors to our properties.
Consolidated revenues and NOI totaled $ 4.77 and $ 3.84 billion pesos, respectively, increases of 2.7% and 2.8% over the previous year.
Our consolidated revenues and NOI totaled $ 4.77 and $ 3.84 billion pesos, respectively, increases of 2.7% and 2.8% over the previous year. These results were helped by a gradual increase in the flow of visitors during the year, who also spend more time in the properties, and with good conversion levels. The NOI margin was 80.5%, basically stable against the previous year, and despite an increase in operating and maintenance expenses in tune with the pickup in building activity. AFFO was $ 3.24 billion pesos, representing an AFFO per certificate with economic rights of $ 2.20 pesos, 6.2% higher than the year before. For this year, the Technical Committee approved a distribution of $ 2.00 pesos per CBFI, which is 90.1% of AFFO and a 100% increase compared to 2020.
Our leverage closed the year at 8.4%, while net debt came to $ 5.26 billion pesos. We were able to finance our Capex entirely with our operating proceeds and most of it was invested in the Parque Tepeyac project, which is now 70.2% complete. The sell-in on this project reflects strong market interest and bright prospects for the upcoming opening, slated for the fourth quarter of 2022.
The past year brought important lessons and great achievements that helped us find our way back to a new reality in our real-estate portfolio. The resilience of our portfolio is clear in the combination of its excellent locations, enabling us to attract the best tenants and a strong inflow of visitors, which has earned our properties their enduring preference. We have a great team that has worked hard to maintain operating and service protocols congruent with current circumstances. I would like to take this opportunity to recognize and thank them for their effort and commitment, which help make us a benchmark in the real-estate industry.
Salvador Daniel Kabbaz Zaga
Chief Executive Officer
