MONTERREY, Mexico, April 29, 2019 (GLOBE NEWSWIRE) -- Deutsche Bank Mexico, S.A., Institución de Banca Múltiple, Trust Division F/1616 or Fibra Inn (BMV: FINN13) (“Fibra Inn” or “the Company”), the Mexican real estate investment trust internally managed and specialized in the hotel industry serving the business traveler with global brands, today announced its non-audited first quarter results for the period ended March 31, 2019 (1Q19). These results were prepared in accordance with International Financial Reporting Standards (IFRS) and are stated in nominal Mexican pesos (Ps.).     

1Q19 Relevant Information:                                                       

• Fibra Inn concluded the quarter with 42 hotels in operation, representing a total of 6,785 rooms. Fibra Inn has a participation in 4 properties, under the external development Hotel Factory Model, that will add 633 rooms.
• Total Revenue: Ps. 480.1 million, of which 95.1% were from room revenues and 4.9% were from other rental revenues, for a total decrease of 4.2% compared to 1Q18.
• Total NOI¹: Ps. 166.7 million, a 5.6% decrease compared with the Ps. 176.6 million reported in 1Q18; Total NOI margin was 34.0%.
• Adjusted EBITDA²: reached Ps. 143.0 million, a 7.4% decrease compared to the Ps. 154.5 million in 1Q18.
• FFO³: Ps. 97.9 million, a 16.8% decrease compared with the Ps. 117.7 million reported in 1Q18; the FFO margin was 20.4%.
• Distributions to Holders⁴: Ps. 81.1 million for the 518,335,643 CBFIs outstanding at the close of 1Q19, representing an annualized dividend yield of 9.3% for the quarter.
  

¹  Total NOI includes Hotel NOI and NOI from other businesses. The first is the calculation of the Fibra’s revenue (hotel revenues and other revenues) minus operating expenses for administration, maintenance, lodging, utilities, fees, royalties, marketing and promotion, as well as property tax and insurance. The second corresponds to revenues and expenses from the Hotel Factory.
²  Adjusted EBITDA excludes acquisition and organization expenses and extraordinary maintenance CAPEX.        
³  FFO is calculated as the Adjusted EBITDA plus interest gain minus interest expense and foreign exchange fluctuations.
⁴  Calculated based on 518,335,643 CBFIs outstanding at the close of 1Q19; yield is based on Ps. 8.27 per CBFI as of March 31, 2019.

Oscar Calvillo, CEO of Fibra Inn, commented: “The revenue decline this quarter was due to the increase in hotel supply throughout some of the regions of the country; security issues throughout several states, which had a direct impact on travelers; the gasoline shortage; and lastly, to a lower number of government contracts resulting from delays in government spending. Given these conditions, the Company has been more cautious with its hotel operators, and has done an outstanding job in the control of some expenses and operating costs during the quarter.

The view of the hotel sector in Mexico has always been long term, even though in these moments, short term factors are greatly influencing. For this reason, Fibra Inn will continue investing actively in the Hotel Factory. We consider that the sale of non-strategic properties to substitute them with full service hotels that have significant barriers of entry is the right decision and will provide better benefits for investors. In the next few weeks, we expect to announce the sale of some hotels, which are in their final negotiation stages, and we will continue repurchasing certificates in an even more active manner.”

FOR THE FULL VERSION OF THIS PRESS RELEASE PLEASE VISIT:

https://www.fibrainn.mx/site/en/quarterly-results/

About the Company
Fibra Inn is a Mexican trust formed primarily to acquire, develop and rent a broad range of hotel properties for lodging in Mexico aimed at the business traveler. The Company has signed franchise, license and brand usage agreements with international hotel brands for the operation of global brands as well as the operation of national brands. Additionally, the Company has development agreements. These hotels enjoy some of the industry’s top loyalty programs. Fibra Inn trades its Real Estate Certificates (Certificados Bursátiles Fiduciarios Inmobiliarios or “CBFIs”) on the Mexican Stock Exchange under the ticker symbol “FINN13”; its ADRs trade on the OTC market in the U.S. under the ticker symbol “DFBRY”.

www.fibrainn.mx

Note on Forward-Looking Statements 

This press release may contain forward-looking statements.  These statements are statements that are not historical facts, and are based on management’s current view and estimates of future economic circumstances, industry conditions, Company performance and financial results. Also, certain reclassifications have been made to make figures comparable for the periods. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the Company, are intended to identify forward-looking statements.  Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements.  Such statements reflect the current views of management and are subject to a number of risks and uncertainties.  There is no guarantee that the expected events, trends or results will actually occur.  The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors.  Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.