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GICSA Announces Consolidated Results for Fourth Quarter 2016

MEXICO CITY--(BUSINESS WIRE)--

GRUPO GICSA, S.A.B. de C.V. ("GICSA" or "the Company") (BMV:GICSA), a Mexican leading company specialized in the development, investment, commercialization and operation of shopping malls, corporate offices, industrial buildings and mixed use properties, announced today its results for the fourth quarter ("4Q16") and twelve month (“2016”) periods ended December 31, 2016. All figures have been prepared in accordance with International Financial Reporting Standards ("IFRS") and are stated in millions of Mexican pesos (Ps.). GICSA’s financial results presented in this report are unaudited; therefore figures mentioned throughout this report may present adjustments in the future.

Main Highlights

Operational

  • GICSA reported an increase of 56,689 square meters (m2), reaching a total of 680,819 m2 of Gross Leasable Area (GLA) comprised of 13 stabilized properties and 2 properties in stabilization process at the close of 4Q16. GICSA’s proportional GLA during 4Q16 was 423,573 square meters.
  • Average leasing rate per square meter at the close of 4Q16 was Ps. 340, a 9% increase compared to 4Q15, which was Ps. 311.
  • GICSA registered an occupancy cost of 6.76% in 2016 due to an increase in same-store sales of 13% in 4Q16.
  • At the close of 2016 GICSA had a total of 68 million of visitors in the shopping malls of the stabilized properties in 2016.

Financial

  • Net operating income (NOI) of the stabilized and under development portfolio reached Ps. 791 million, an increase of 24% compared to 4Q15.
  • Consolidated EBITDA in 4Q16 reached Ps. 758 million, while GICSA’s proportional EBITDA was Ps. 649 million. Consolidated EBITDA in 2016 was Ps. 2,848 an increase of 11% compared to 2015.
  • Consolidated debt in 4Q16 was Ps. 18,375 million, while GICSA’s proportional debt was Ps. 13,322 million, resulting in a loan-to-value ratio of 33%.
  • This year, GICSA successfully completed its local note program (certificados bursatiles) for Ps. 6,000 million.

Pipeline

  • In December 2016, GICSA opened La Isla Vallarta and the first phase of Forum Cuernavaca, adding 56,689 m2 of GLA to the portfolio in stabilization process.
  • At the beginning of 2017, GICSA started the construction of Masaryk 169 and Explanada Pachuca.
  • To date, the commercialization of properties under development reached 130,140 m² of GLA under contract and under negotiation. This represents 34% of the total space comprising projects under construction.

For a full version of GICSA’s Fouth Quarter 2016 Earnings Release, please visit:

http://www.gicsa.com.mx/inversionistas?id=1

Conference Call

GICSA cordially invites you to its Fourth Quarter 2016 Conference Call

Thursday, February 23, 2016
12:00 p.m. Eastern Time
11:00 a.m. Mexico City Time

To access the call, please dial:
1-800-311-9401 U.S. participants
1-334-323-7224 International participants

Passcode: 87477

About the Company

GICSA is a leading company in the development, investment, commercialization and operation of shopping malls, corporate offices and industrial warehouses well known for their high quality standards, which transform and create new development spaces, lifestyles and employment in Mexico, in accordance to its history and executed projects. As of September 30, 2016, the Company owned 13 income-generating properties, consisting of seven shopping malls, four mixed use projects (which include four shopping malls, four corporate offices and one hotel), and two corporate office buildings, representing a total Gross Leasable Area (GLA) 620,150 square meters, and a Proportional GLA of 391,313 square meters. Since June 2015, GISCA is listed on the Mexican Stock Exchange under the ticker (BMV:GICSA B).

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