Message from the CEO

(2-14, 2-22)

Dear investors,

Among the year’s highlights, I am particularly pleased to announce that Parque Tepeyac opened its doors on November 10th, immediately becoming a landmark in the northeast of Mexico City. We have seen excellent acceptance by the public, as evident in the high levels of footfall, and an outstanding reception from our tenants. This shopping center continues to welcome new tenants, and the recent openings of Liverpool and Sears have further increased the flow of visitors, which can be seen in the rise in both vehicular and pedestrian traffic. Meanwhile, we continue developing our Entertainment and Cultural Center, which will enrich the leisure offering and bring in still more visitors. We expect this facility to open in the second half of 2023.

In line with our strategy of keeping our properties in peak condition, we completed the remodeling of Parque Duraznos with an innovative, modern and functional approach. Our lifestyle center offers visitors an attractive mix of shops, services, restaurants and entertainment venues. The overhaul of this property underscores Fibra Danhos’ commitment to being a benchmark for the real estate industry.

Our consolidated revenues and NOI totaled MXN5.51 billion and MXN4.32 billion, respectively, rising 15.7% and 12.6% over the previous year. At the same time, our AFFO, which was MXN3.81 billion, increased by 17.8% compared to the same period of last year. This was equivalent to MXN2.52 per CBFI with economic rights and a 14.6% advance over the previous year. Our payout this past year, by decision of the technical committee, was MXN2.407 per CBFI, representing a payout ratio of 95.2%.

At the close of the year’s fourth quarter, our leverage stood at 8.7%, consistent with our conservative debt strategy. All of our cost-bearing liabilities are denominated in pesos, and 90.8% of them are at fixed rates. The weighted average cost of our debt is 8.5%, well below the current overnight rate. We have an authorized program of trust-backed securities certificates (debt) for up to MXN8.0 billion, and we also maintain a green revolving credit line totaling MXN2.0 billion. The availability of ready funding enables us to continually analyze business opportunities that can bring value to our portfolio. In deciding on the eligibility of new projects, we limit our endeavors to premier quality, high-impact projects in the real estate industry, so the pre-development phase is often a lengthy one, in the interests of minimizing risk to our investors. At the close of the year, and after three years in which the economy was immersed in a deep crisis, the resilience of our portfolio has enabled us to return to pre-pandemic levels, and the strength of Fibra Danhos is beginning to materialize in some growth opportunities.

I would like once again to take this opportunity to recognize the commitment of our tremendous work team and the invaluable support of our investors, and to underscore our commitment to offering superior quality assets to the market, with the highest standards of sustainability.

Salvador Daniel Kabbaz Zaga
Chief Executive officer