Gicsa Announces Consolidated Results for Fourth Quarter 2021

MEXICO CITY, MEXICO / ACCESSWIRE / February 23, 2022 / GRUPO GICSA, S.A.B. de C.V. ("GICSA" or "the Company") (BMV:GICSA), a leading Mexican company specializing in the development, investment, commercialization and operation of shopping malls, corporate offices and mixed-use properties, announced today its results for the fourth quarter ("4Q21") and for the twelve months ("2021") period ended December 31, 2021.

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 and therefore may be subject to adjustments in the future.

Main Highlights

Corporate

• In order to mitigate the negative effects and consequences of the pandemic, as well as managing the pending maturities of our debt, the Company continues working closely with Lazard and its bondholders, on the consolidation of GICSA's debt structure and monetization of assets under development, all in order to reposition the Company for long term, reducing debt levels and improving its financial position.
  • According to the above, on November 29, 2021, the Bondholders' Meeting of the local bonds issued under the trading symbols GICSA 15, GICSA 16U, GICSA 17, GICSA 18U and GICSA 19 took place. In this meeting, standstill agreements and interest capitalization for 90 days were approved, with the objective of conducting a comprehensive restructuring process of those bonds.
  • On February 14, 2022, the Company successfully achieved the materialization of initial agreements to support the Company's financial reactivation. At the Bondholders' Meetings of the local bonds issued under the trading symbols GICSA 16U and GICSA 18U, certain resolutions were approved regarding modifications related to capital, maturity, interest rate, interest capitalization, among other characteristics and obligations.
  • Additionally, the Company maintains an active dialogue with the bondholders of the local bonds issued under the trading symbols GICSA 15, GICSA 17, and GICSA 19, and hope to reach a satisfactory outcome in the near future for both our Company and them.
• In February we signed an agreement with regard to the Lomas Altas bank loan, whereby we managed to extend the loan's maturity to October 2026, with payment of capital amortizations starting January 2023.

Operational

• At the close of 4Q21, GICSA reported a total of 975,763 square meters of Gross Leasable Area (GLA) comprised of 18 properties in operation. Proportional GLA was 86%, equivalent to 836,337 square meters. This represented increases of 1% in total GLA and in proportional GLA, compared to 4Q20.
• During 4Q21, 66 doors were opened for new contracts (13,567 square meters) in relation to the portfolio in operation, a decrease of 48% compared to 4Q20.
• During 4Q21, 52 new doors were signed (16,544 square meters) in the portfolio, a decrease of 22% compared to 4Q20.
• At the close of 4Q21, the occupancy rate of the stabilized portfolio was 87%, and 82% of the portfolio in operation. The adjusted occupancy rate of the stabilized portfolio was 83%, and 79% of the portfolio in operation.
• At the close of 4Q21, the average rent per square meter of the stabilized portfolio was Ps. 381 and Ps. 379 of the portfolio in operation, increases of 3% and 2%, respectively, compared to 4Q20.
• During 4Q21, the number of visitors to properties within the commercial portfolio reached 17 million, with increases of 28% compared to 4Q20 and 33% compared to 3Q21. However, this only represents 82% of pre-pandemic visitors during 4Q19.

Financial

• During 4Q21, GICSA signed 67 new agreements under the tenant Covid-19 support program for approximately Ps. 79 million in credit notes, totaling 1,456 signed agreements amounted to Ps. 832 million. In accordance with IFRS 16, these agreements will be gradually amortized in accordance with the remaining term of each contract.
• As a result, the adjusted occupancy generated a decrease of approximately Ps. 800 million in the annual recurring billing.
• Following efforts to identify abandoned commercial spaces and complete documentation to halt and terminate the invoicing process, we managed to write off Ps. 377 million in accounts receivable during 4Q21, which generated negative impacts in different items of our income statements according to IFRS. As a result, the following items were negatively impacted:
• Total revenue after the proportional recognition of the tenant Covid-19 support program was Ps. 813 million in 4Q21, a decrease of 22% compared to 4Q20.
• Consolidated and proportional NOI in 4Q21, were Ps. 392 million and Ps. 333 million, decreases of 51% and 50%, respectively, compared to 4Q20.
• Consolidated and proportional EBITDA in 4Q21, were Ps. 184 million and Ps. 125 million, decreases of 66% and 69%, respectively, compared to 4Q20.
• Consolidated and proportional financial debt at the close of 4Q21 were Ps. 29,006 million and Ps. 26,451 million, respectively, increases of 7%, respectively, compared to consolidated debt in 4Q20. Consolidated LTV was 38%.

For a full version of GICSA's Fourth Quarter 2021 Earnings Release, please visit:

http://www.gicsa.com.mx/en/investors-relationship/financial-information

Conference Call

GICSA cordially invites you to its Fourth Quarter 2021 Conference call

Thursday, February 24, 2022
11:30 AM Eastern time
10:30 AM Mexico City Time

Presenting for GICSA:

Mr. Isaac Cababie, Deputy Executive Director
Diódoro Batalla - Chief Financial Officer

To access the call, please dial:
1 (877) 830-2597 from within the U.S.
+1 (785) 424-1744 from outside the U.S.
Passcode: 44272

About the Company

GICSA is a leading company in the development, investment, commercialization and operation of shopping malls, corporate offices and mixed used well known for their high-quality standards, which transform and create new development spaces, lifestyles and employment in Mexico, in accordance with its history and executed projects. As of December 31, 2021, the Company owned 18 income-generating properties, consisting of eleven shopping malls, five mixed use projects (which include five shopping malls, five corporate offices and one hotel), and two corporate office buildings, representing a total Gross Leasable Area (GLA) 975,763 square meters, and a Proportional GLA of 836,337 square meters. Since June 2015, GICSA is listed on the Mexican Stock Exchange under the ticker (BMV: GICSA B).

Investor Relations Contact:

Claudia Chávez
Tel: +52 (55) 5148 0400 Ext. 4609
Email: cchavez@gicsa.com.mx

Yinneth Lugo, IR
Tel: +52 (55) 5148 0402
Email: ylugo@gicsa.com.mx

SOURCE: GRUPO GICSA, S.A.B. DE C.V.