I am pleased to share with you that 2023 marks a milestone in the history of Fibra Danhos, as we enter the industrial and high-end tourism segments, which will complement our real estate offerings and diversify our portfolio.

The year-end results attest to strong performance throughout 2023, with rising occupancy levels and visitor traffic in our shopping centers, underscoring the strength of consumption last year and driving higher leasing and parking revenues.

The Parque Tepeyac mall is maturing progressively and has already reached an occupancy rate of close to 90% of its gross leasable area. The Entertainment and Cultural Center, which opened its doors in the fourth quarter of the year, continues to attract a significant flow of additional visitors. Furthermore, our office portfolio reports rising occupancy rates and, above all, growing interest in available space in various properties.

Toward the end of the year, we worked intensively on the new industrial warehouse project in Cuautitlán, Mexico State, which has stirred up much interest in the industry and will be completed by the second half of 2024. This project is strategically located and designed to meet the logistics and distribution needs of the Mexico City Metropolitan Area, and in this first phase, it will have approximately 100,000 square meters of gross leasable area.

As for our abovementioned venture into the tourism segment, we have entered a 50-50 joint venture with Fibra Hotel for a project to be developed in the Yucatan Peninsula and last year we got a good start on the process. We have just about completed the formalities and licensing process, so we will be able to begin construction in the first half of 2024.

In 2023, consolidated revenues and NOI came to MXN6.19 billion and MXN4.77 billion, respectively, increases of 12.3% and 10.4% over the previous year. AFFO totaled MXN3.96 billion, a growth of 3.8% compared to 2022. Distribution during 2023 was MXN2.1 per CBFI, which is 12.5% lower than in 2022. This is due to the policy established by our Technical Committee in the third quarter of 2023, establishing that we will pay out MXN0.45 per certificate over the next four quarters, and use the undistributed cash flow for project financing.

At the end of 2023, our leverage remained conservative at 11.1%; our financial liabilities are 100% peso-denominated, at a fixed rate, and with an average cost of 8.93%. Maintaining this financial solvency and having access to financing through the stock market and bilateral lines of credit allows us to efficiently execute our investment program and continue planning and structuring new projects.

In keeping with our long-term strategic vision, we remain confident in our country as we head into 2024. Going forward, we intend to continue making responsible decisions and selectively taking advantage of emerging opportunities. I would like to thank our employees for their hard work, our Technical Committee for its invaluable contribution, and our shareholders for their confidence.

 

Salvador Daniel Kabbaz Zaga
CEO & President of Fibra Danhos