GICSA Announces Consolidated Results for the Fourth Quarter 2023

MEXICO CITY, MEXICO / ACCESSWIRE / February 29, 2024 / GRUPO GICSA, S.A.B. de C.V. ("GICSA" or GICSAB.MX) (BMV:GISCSA), owner and manager of 17 income-generating properties (eleven shopping malls, five mixed-used properties, and one corporate office building) announced on Tuesday its 4Q and full-year 2023 results.

Abraham Cababie, CEO of GRUPO GICSA, stated: "2023 was a year where we focused on our CORR strategy, achieving some improvements in our main operating indicators; however, economic, and financial circumstances and events beyond our control continue to impact us in achieving our objectives.

In October 2023, Hurricane Otis severely impacted Acapulco's coast, affecting 80% of the city's infrastructure, including our La Isla Acapulco shopping mall. The damage caused to both property and our clients directly impacted income and this trend is expected to continue in the next 3 to 5 years, until the region's economy recovers and tourism in the area returns to its usual levels.

Turning to our operating results, the 4Q23 During 4Q23, we continued show progress. Visitor arrivals increased by 12% compared to the 4Q22, and tenant sales rose by 10% during the same period. Additionally, the occupancy rate of our operating portfolio increased from 84% to 87% year-over-year.

On the commercialization front, in 4Q23 we signed 60 new leases, totaling 17,476 square meters, and throughout 2023, we signed a total of 298 new leases, equivalent to 79,808 square meters. During this quarter, 92 new leases began operations, covering 28,490 square meters, and over the year, a total of 291 leases began operations, corresponding to 84,837 square meters.

On the other hand, these operating indicators are not reflected in our financial results because our prices did not increase in the same proportion, with our average price decreasing 2% compared to 4Q22 and our lease spread being a negative 1.5%.

Regarding financials, consolidated and proportional NOI for the fourth quarter increased 13% compared to 4Q22, with figures of Ps. 814 million and Ps. 675 million, respectively. For the full year, each metric climbed 11% over 2022. These figures are not in line with our expectations considering that in 2022 we were affected and has closures during the first quarter due to Covid-Ómicron.

Consolidated and proportional EBITDA for 4Q23 reached Ps. 569 million and Ps. 430 million, up 27% and 30%, respectively, compared to 4Q22; however, annualized against year-end 2022, the increase is only 8% and 7%, respectively.

In closing, I extend my heartfelt gratitude to the dedicated team at GICSA for their relentless efforts and commitment to achieving these results. I also want to thank our investors and partners for their support in the growth and recovery of our Company".

About GRUPO GICSA

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.

For more information visit: https://www.gicsa.com.mx/home

Forward-Looking Statements

This press release may contain forward-looking statements and involve risk and uncertainty. The words "estimates", "anticipates", "projects", "plans", "believes", "expects", "seeks" and similar expressions, are intended to identify forward-looking statements. Grupo GICSA warns readers that declarations and/or estimates mentioned in this document, or stated by Grupo GICSA's management team, are subject to a number of risks and uncertainties that could be in function of various factors that are out of Grupo GICSA's control. Future expectations reflect Grupo GICSA's judgement at the date of this document. Grupo GICSA reserves the right or obligation to update information contained in the report or derived from it. Past or present performance is not an indicator of future performance. Grupo GICSA warns that a significant number of factors may cause actual results to differ materially from estimates, objectives, expectations, and intentions expressed in this report. Neither the Company or any of its subsidiaries, affiliates, directors, executives, agents or employees may be held responsible before third parties (including shareholders) for any investment, decision, or action taken in relation to the information included in this document, or by any special damage or similar that may result.

Contact:

+52 (55) 5148 0400
inversionistas@gicsa.com.mx
informes@gicsa.com.mx

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

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