EARNINGS REPORT 3Q17. Quarterly Report INVESTOR RELATIONS. Investment that Transforms

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1 Investment that Transforms [ENGLISH TRANSLATION FOR INFORMATION PURPOSES ONLY, IN THE EVENT OF ANY CONFLICT, THE SPANISH TEXT SHALL PREVAIL] EARNINGS REPORT 3Q17 INVESTOR RELATIONS Ignacio Gutiérrez / CFO ig@fhipo.com Xavier Martínez / IRO xm@fhipo.com Ph: +52 (55) inverstorrelations@fhipo.com Quarterly Report

2 FHipo reports a Distribution per CBFI of Ps. $0.51 in 3Q17, higher than the amount reported in the past quarter Mexico City, Mexico, October 27 th, Banco Invex, S.A., Institución de Banca Múltiple, Grupo Financiero Invex or Fideicomiso Hipotecario ("FHipo") (BMV: FHIPO), announces the third quarter results concluding September 30 th, The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") and published on the Mexican Stock Exchange ("BMV"). Highlights of the 3 rd quarter of 2017 The distribution per CBFI during the third quarter of 2017 ( 3Q17 ) reached Ps. $0.508, compared to Ps. $0.475 reported in the third quarter of 2016 ( 3Q16 ), a 7.0% increase within a challenging macroeconomic environment. FHipo, during the 3Q17, co-participated Ps. $1,723.4 million in mortgage loans through Infonavit programs, reaching a net on-balance mortgage portfolio worth Ps. $18,660.3 million, an increase of 31.7% compared to Ps. $14,173.2 million reported in the 3Q16. As of the 3Q17 we account for an outstanding loan balance of Ps. $25,702.2 million, considering our securitized portfolio and collection rights ( Consolidated Portfolio ), an increase of 31.2% compared to the Ps. $19,586.6 million reported in the 3Q16. In July 2017, we successfully concluded a securitization ( MBS ) though the issuance of Certificados Bursátiles Fiduciarios ( CBFs ) with ticker symbol FHIPOCB 17U in the local capital market for 584,277,300 UDIS or Ps. $3,362.8 million. This issuance corresponds to the first securitization of its type, by incorporating portfolios of the two most important mortgage loan originators in Mexico, Infonavit and Fovissste. The CBFs pay a fixed interest rate of 4.13% in UDIS, which considers 102 basis points ( bps ) spread. Furthermore, during the 3Q17, FHipo carried out the prepayment option of its credit facilities signed with Banco Mercantil del Norte, S.A., Institución de Banca Múltiple, Grupo Financiero Banorte ( Banorte ) for a total amount of Ps. $3,674.0 million. Considering this amortization, the outstanding balance of the Banorte Credit facilities as of quarters end is Ps. $3,250.0 million. During the 3Q17, we managed to withdraw the entire revolving credit facility with the Inter- American Development Bank ( IDB ) for Ps. $1,397.0 million, resources that were used for the acquisition and origination of mortgage loans. With the objective of preserving the stability of our shares ( CBFIs ) and generate greater value for our CBFI holders, FHipo continued to use its share buy-back program in an agile and efficient manner. During the quarter and as of October 27, 2017 (this report s publication date), FHipo managed to acquire 23,444,306 CBFIs (5.4% of its outstanding CBFIs) at a weighted average price of Ps. $21.4 per share. During 2017, FHipo has managed to acquire 39,065,070 FHIPO 14 shares, thus using 87.7% of its share buy-back program, in accordance with the amount authorized by the Holders Assembly on January 30, As of the end of the 3Q17, we maintained a consolidated debt to equity ratio of 1.5x, considering FHipo s onbalance debt and our off-balance securitization transactions, through the CDVITOT 15 and FHIPOCB 17U. The earnings per share ( EPS ) during 3Q17 was Ps. $0.535, considering 430,449,930 outstanding CBFIs as of October 27, 2017, an increase of 7.0% compared to Ps. $0.500 reported in 3Q16. 1 PAGE

3 The financial margin for the 3Q17 amounted to Ps. $140.3 million, a decrease of 58.4% in comparison with the financial margin of Ps. $336.8 million recorded in the 3Q16. This variation, is mainly a result of the development of our leverage strategy and the FHIPOCB 17U securitization, in which FHipo transfered Ps. $4,769.9 million in mortgage portfolio, and relocated both interest and indexation income to the account valuation of receivable benefits in securitization transactions, which increased from Ps. $29.7 million in 2Q17 to Ps. $265.5 million in the 3Q17. As of September 30, 2017, the non-performing loans ( NPLs ) of our consolidated mortgage portfolio represented solely 0.85% of the consolidated portfolio. As of quarter s end, we maintain an accumulated allowance for loan losses coverage on non-performing loans of 1.6x (times) and on expected loss of 3.1x, coverage we consider to be very healthy. Our return on equity ( ROE ) was 8.4% in the 3Q17, an increase of 10 bps compared with the 8.3% reported during the 3Q16, this due to a series of key strategies carried out by our management team, including the restructure of the financial margins on certain debt stuctures and the repurchase of FHIPO 14 CBFIs. This has resulted in a consistent distribution during the last quarters, even within a complex economic environment. Summary of Key Financial Metrics Quarter to Quarter Year to date 3Q17 3Q16 3Q17 3Q16 Financial Margin and Interest Revenues Financial Margin - "interest revenue - interest expense / total interest revenue" 37.6% 74.1% 55.6% 83.4% Net Interest Margin (NIM) (1) - "total revenues, net / average net mortgage loans" 6.4% 7.6% 6.3% 9.7% Efficiency Metrics Efficiency Ratio - "total expenses / total operating revenue" 18.2% 19.4% 17.6% 20.0% Operational Efficiency Ratio (excl. Allowance for Loan Losses) - "total expenses excl. ALL / total intere 31.1% 20.6% 21.2% 21.8% Efficiency Ratio - "total expenses / total operating revenue" 33.5% 28.5% 31.9% 25.6% Allowance for loan Losses / Total Mortgage Loans (2) 1.56% 1.07% 1.56% 1.07% Returns and Profits Earnings per CBFI (EPS) (3) - "net income / number of CBFIs" $0.535 $0.500 $1.604 $1.548 Return on Assets (ROA) (1)(4) - "net income / total assets" 4.2% 5.4% 4.3% 7.2% Return on Equity (ROE) (1)(5) - "net income / total equity" 8.4% 8.3% 8.5% 9.5% Other Metrics Cash and Cash Equivalents / Total Assets 3.3% 2.1% 3.3% 2.1% Non-performing Loans / Net Portfolio 1.13% 0.68% 1.13% 0.68% Note (1): Annualized considering effective days of operation in the period and net mortgage loans average during the period (2): Total mortgage loans excludes allowance for loan losses. (3): Amount in MXN, the YTD results consider the weighted average outstanding CBFIs as of each quarters end. (4): Considers the average total assets during the quarter. (5): Considers the average total equity during the quarter. 2 PAGE

4 Message from the Chief Executive Officer Dear Investors, During the third quarter of 2017, FHipo continues to consolidate its mortgage portfolio through Infonavit s origination programs, particularly through the Infonavit Más Crédito program, given that we are convinced that this origination program generates the most value to FHipo since it is the program with the lowest credit risk within the Institute. FHipo s business model s objective is to ensure a financial margin between the asset yield of the mortgage assets and the debt cost of the leverage, and since this margin under current conditions has been reduced, we have continued to develop our origination and leverage strategy but at a lesser pace, expecting to increase our origination rate once such margin expands as a result of a more optimal interest rate scenario and a less volatile macroeconomic environment, allowing for a more efficient use of capital. In the 3Q17, FHipo achieved consistent results, in line with its estimates and objectives. We have continued to reduce our exposure toward operational and market risks, solely focusing on the growth and quality of our portfolio, which has performed better than expected. At mid quarter, with the goal of securing our debt cost and locking a financial margin for our VSM portfolio, we were able to carry out the first securitization that incorporated Infonavit and Fovissste loans, positioning FHipo once again as an innovative leader in terms of structuring new types of asset classes in the local market. The issuance reached Ps. $3,362.8 million and the interest rate resulted attractive, 4.13% in UDIS, which considers a spread of 102 basis points, ensuring an efficient margin regarding the transferred portfolio. Furthermore, our efforts to renegotiate the margin of our debt costs at variable rates continue, as of today we have been able to significantly reduce the spread of various financial structures, ensuring an efficient balance sheet structure for the medium term. The effects of this strategy have been encouraging, and we expect them to begin translating into results over the next few quarters. At the end of the quarter, we maintan a consolidated mortgage portfolio, considering our securitized portfolio, of Ps. $25,702.2 million, reaching a consolidated leverage ratio of 1.5x debt-to-equity. In terms of profitability, our net income subject to quarterly distribution is of Ps. $218.7 million and translates into a distribution per CBFI of Ps. $ Therefore, our annualized return on assets and on equity during the quarter was 4.2% and 8.4%, respectively. I would like to highlight that we were granted the "Best Social Impact Mortgage Provider 2017" award by Capital Finance International, a globally recognized financial magazine. This acknowledges the role that FHipo has played in the Mexican mortgage industry, increasing the liquidity of the secondary mortgage market and stimulating the participation of the private sector in housing finance to unattended sectors within the country. Finally I m convinced that FHipo, even in a challenging economic environment, will continue to demonstrate its ability to generate attractive returns for its investors. We will continue to take advantage of the opportunities within the Mexican mortgage market, maintaining our focus on borrowers with an attractive risk-return profile. Daniel Braatz CEO 3 PAGE

5 Our participation with Infonavit On August 13, 2014, FHipo celebrated an "Initial Assignment Agreement" with the Instituto del Fondo Nacional de la Vivienda para los Trabajadores or "Infonavit", a social service agency of the Mexican government dedicated, among other activities, to mortgage financing. Infonavit is the leading mortgage underwriter in Mexico and one of the largest mortgage providers in Latin America, with a balance of more than eight million mortgage loans. Infonavit s operations are primarily financed from interest and principal payments on their mortgage loans. Employers deduct interest and principal from their workers payroll and remit payments to Infonavit. In addition, employers are subject to mandatory contributions to the National Housing Fund for an amount that is currently equivalent to 5% of the salary of each worker at service. Currently FHipo participates in two Infonavit Programs; Infonavit Total and Infonavit Más Crédito, in which FHipo acquires a percentage of each mortgage originated by Infonavit under both programs. The Infonavit Total Program exists in Mexico since 2008, in which there are currently participating 6 financial institutions, and the Infonavit Más Crédito Program exists since 2012, in which currently there are 5 financial institutions participating. As in the Infonavit Total Program, within the Infonavit Más Crédito Program, FHipo acquires a percentage of each mortgage loan, all loans offered through this program are originated in co-participation with private entities. Before the mortgage origination initiates, there is a bidding process based on amount and interest rate. Through the bidding process, Infonavit assigns the future co-participation of each originated loan to the participating entities, until the total projected loan origination for a certain period is allocated. Generally, the private institutions assume a higher participation percentage on each loan than Infonavit. Once the auction concludes the daily mortgage origination begins. Through FHipo, the Infonavit continues to strengthen its objectives set in the housing public policy, which plans to reduce responsibly the housing lag in Mexico, by improving and expanding existing housing, procuring the acquisition of new homes and promoting the participation of private capital in the origination of mortgage loans in Mexico. Finally the participation of FHipo, jointly with the Infonavit, will continue improving the development of the mortgage industry in Mexico, offering greater dynamism by creating new products, increasing the liquidity of the secondary mortgage market as well as financing unattended sectors through the participation of different institutions. 4 PAGE

6 Our participation with Fovissste Fovissste is a social service agency dedicated, among other activities to mortgage financing, and is currently the second largest mortgage originator with collection through payroll deduction mechanisms in Mexico, subsequent to Infonavit. Fovissste s operations are mainly financed by payments of interest and principal on granted mortgage loans to workers at the service of State/Government dependencies, with direct discount form the workers payroll, which in turn the government dependency must remit to Fovissste through the Federal Treasury, including the mandatory contributions that the State dependencies must entail to the Fund. Fovissste originates approximately 11.0% 1 of the mortgage loans in the country, and has a credit management capacity that is amongst the most efficient worldwide. Without doubt, its credit rating of AAFC2+(MEX) assigned by Fitch as mortgage loan administrator and its AAA (Triple A) rating assigned by Fitch and S&P for their debt issuances (TFOVI), are proof of its capacity as administrator and credit risk mitigation. On June 3, 2016, FHipo and Fovissste initiated a strategic alliance, through a transaction in which Fovissste transferred fiduciary rights on 7,144 mortgage loans to FHipo which are to be administrated by the trust F/2803. FHipo in exchange for the fiduciary rights, paid a compensation of Ps. $2,999.6 million, equivalent to the balance of the transferred fiduciary rights. Through this acquisition, FHipo established a long-term relationship with Fovissste, which will continue to strengthen over time, resulting in higher mortgage supply in Mexico while enhancing the liquidity of the mortgage market. The foregoing, leading FHipo to continue developing a growth strategy focused on generating long term value for its investors. 1 By number of loans (Sociedad Hipotecaria Federal Report, 2017) 5 PAGE

7 Operation Results Quarter to Quarter Year to date (In Thousands of Mexican Pesos, except Net Income per CBFI) 3Q17 3Q16 Variation % Var 3Q17 3Q16 REVENUES Total net interest income $373,040 $454,577 ($81,537) (17.9%) $1,573,279 $1,148,975 Financing interest expenses ($232,771) ($117,747) ($115,024) 97.7% ($698,122) ($190,835) (-) Allowance for loan losses ($59,433) ($35,653) ($23,780) 66.7% ($154,072) ($80,975) Financial margin adjusted by credit risks $80,836 $301,177 ($220,341) (73.2%) $721,085 $877,165 Valuation of receivable benefits in secur. transactions 265,485 26, , % 327, ,323 TOTAL REVENUES, NET 346, ,121 18, % 1,048, ,488 TOTAL EXPENSES (116,125) (93,538) (22,587) 24.1% (334,210) (250,450) NET INCOME $230,196 $234,583 ($4,387) (1.9%) $714,241 $727,038 NET INCOME PER CBFI $0.535 $0.500 $ % $1.574 $1.549 Interest Income amounted to Ps. $373.0 million in the 3Q17, while in 3Q16 they amounted to Ps. $ million, a decrease of 17.9%. The decrease is related to the securitization carried out in July, given that the indexation of the transferred VSM portfolio was reclassified from this account to the account valuation of recievable benefits in securitization transactions, as explained in the following paragraph. Revenue considers the accrued interest of our on-balance portfolio, the indexation on the outstanding balance of our mortgage portfolio denominated in VSM, the interests of the collection rights on Fovissste s portfolio and the returns obtained from our liquid investments. Valuation of Receivable Benefits in Securitization Transactions is determined based on the fair value of the equity residuals of our securitizations, valued on the income approach. In the 3Q17, we performed the FHIPOCB 17U securitization, to which we transfered Ps. $4,769.9 million in VSM denominated portfolio, therefore, during the quarter we registered a gain by valuation of Ps. $265.5 million, an 885.3% increase compared to Ps. $26.9 million reported in 3Q16. The increase mainly corresponds to this years accumulated indexation income of the transferred VSM portfolio, which was reclassified from "interest income". As of quarter s end, the equity residual is backed by a mortgage portfolio worth approximately Ps. $6,993.7 million. 6 PAGE

8 As detailed in the following graph, total revenues increased 32.6%, from Ps. $481.5 million in the 3Q16 to Ps. $638.5 million in 3Q17. Total Revenue 3Q17 Ps. $638.5 million Total Revenue 3Q16 Ps. $481.5 million Revenue Breakdown 3Q17 Revenue Breakdown 3Q16 Interests on mortgage loans $7.9 $26.9 Interests on mortgage loans $265.4 $358.9 Investment income Investment income Valuation of Receivable Benefits in Securitization Transactions $446.7 Valuation of Receivable Benefits in Securitization Transactions $14.2 Interest Expense amounted to Ps. $232.8 million in the 3Q17, an increase of 97.7% in comparison with the Ps. $117.7 million registered in 3Q16. FHipo s financing interest expense has increased during the past quarters due to our leverage strategy, which in turn results in a larger mortgage portfolio and a more robust balance sheet. When comparing interest expense for the current quarter with that incurred during 2Q17, we observed a decrease of Ps. $26.0 million, the latter is due to the prepayment of Ps. $3,674 million of the Banorte credit facilities and the withdrawal of Ps. $1,397.0 million from the revolving line with the IDB at a more competitive rate, realized during the 3Q17. As of 3Q17, FHipo maintains Ps. $11,066.8 million of debt within its balance sheet, considering bank loans and long and short term bonds. All the proceeds obtained by these financial structures have been used for the acquisition and origination of mortgage portfolios. Financial Margin reached Ps. $140.3 million in 3Q17, a deacrease of 58.4% when compared to the Ps. $336.8 million reached in 3Q16. The variation is mainly a result of the FHIPOCB 17U securitization, since the interest and indexation income of the securitized portfolio are considered as part of the valuation of the equity residual, which is presented after the financial margin, and not as direct income obtained by FHipo. Allowance for Loan Losses recognized in the income statement reached Ps. $59.4 million in the 3Q17, a Ps. $23.7 million increase compared to Ps. $35.7 million reported in 3Q16. The variation is related to our growth strategy, as well as the accoutability of recent events as part of our valuation assumptions. The allowance for loan losses represents, in general terms, our portfolio s expected loss for the next 12 months, therefore, the materialization of these effects during the next months will be the result of our allowance for loan losses variation. The allowance for loan losses registered in the Balance Sheet as of September 30, 2017 resulted in Ps. $294.8 million, representing 1.56% of our on-balance portfolio. Advisory, Administration, and Servicing Expenses amounted to Ps. $90.5 million during 3Q17, displaying a 12.8% increase in comparison with the Ps. $80.2 million registered in the 3Q16, these fees are based on portfolio balance and invested capital by the Holders, thus, the increase is directly related to the scale of our portfolio and its balance 7 PAGE

9 in comparison with the portfolios balance registered in the 3Q16. These expenses represent the advisory, administration and collection service received from the Infonavit and CH Asset Management ( Advisor and Manager ) during the quarter. Net Income decreased 1.9% in comparison with the same quarter of the previous year, reaching Ps. $230.2 million in 3Q17 compared with Ps. $234.6 million in 3Q16. However, the net earnings per share of the 3Q17 reached Ps. $ in comparison with Ps. $0.475 distributed in the 3Q16, a 7.0% increase. The following charts show the increase of our net income year over year and quarter over quarter, as well as the development of the allowance for loan losses in comparison with our on-balance mortgage portfolio quarter to quarter. Net Income (in thousands) $727,038 $714,241 Allowance for Loan Losses / Total Mortgage Portfolio (on balance) 1.56% 1.07% $234,583 $230,196 3Q16 3Q YTD 2017 YTD 3Q16 3Q17 Balance Sheet (In Thousands of Mexican Pesos) 3Q17 3Q16 Variation % Var ASSETS Cash equivalents and debt securities $748,119 $406,570 $341, % Mortgage loans, net 18,660,338 14,173,162 4,487, % Collection Rights, net 107,964 3,024,252 (2,916,288) (96.4%) Receivable benefits in securitization transactions 2,233, ,234 1,763, % Derivative financial instruments 83,001 21,690 61, % Accounts receivables and other assets 516, ,522 (328,798) (38.9%) TOTAL ASSETS $22,349,721 $18,941,430 $3,408, % LIABILITIES AND EQUITY TOTAL LIABILITIES $11,337,848 $7,384,561 $3,953, % TOTAL EQUITY 11,011,873 11,556,869 (544,996) (4.7%) % TOTAL LIABILITIES AND EQUITY $22,349,721 $18,941,430 $3,408, % Total Assets as of September 30, 2017 amounted to Ps. $22,349.7 million, an increase of 18.0% over the Ps. $18,941.4 million registered in 3Q16. FHipo s assets have increased primarily through the development of our leverage 2 As of October 27, 2017, FHipo maintains 430,449,930 outstanding CBFIs. 8 PAGE

10 structures. Our total assets are mainly comprised of: i) cash equivalents of Ps. $748.1 million, representing 3.3% of the total assets; ii) net mortgage loan portfolio amounting to Ps. $18,660.3 million, representing 83.5% of our total assets; iii) net collection rights on Fovissste s portfolio equivalent to Ps. $108.0 million, which represent 0.5% of FHipo s total assets, the mayority of FOVISSSTE s portfolio was transferred to FHIPOCB 17U, and iv) the receivable benefits of the securitization transactions which amount to Ps. $2,233.6 million and represent 10.0% of FHipo s total assets. Mortgage Loan Portfolio on-balance as of 3Q17 is composed by 55,946 mortgage loans, with a net balance of Ps. $18,660.3 million, an increase of 31.7% in comparison with the Ps. $14,173.2 million reported in 3Q16. During 3Q17, FHipo acquired mortgage loans amounting to Ps. $1,723.4 million, received principal amortizations of Ps. $284.6 million, transferred (divested) mortgage portfolio for PS. $1,987.3 and reimbursed Ps. $0.6 million worth of loans that did not meet our eligibility criteria, after audits conducted by CH Asset Management, reaching a net outstanding balance of Ps. $18,590.6 million; furthermore, as of September 30, 2017 the accrued interest receivable amounted to Ps. $320.8 million, the indexation of VSM denominated loans for the 3Q17 within our balance resulted in Ps. $43.7 million, and by reducing the allowance for loan losses, results in a net mortgage portfolio of Ps. $18,660.3 million. Collection Rights on Fovissste s portfolio are composed by fiduciary (collection) rights amounting to Ps. $108.0 million as of 3Q17, net of allowance for loan losses, a decrease of Ps. $2,916.3 million in comparison with Ps. $3,024.3 reported in 3Q16. This is mianly due to the loan transfer made to the FHIPOCB 17U. In consolidated terms, considering the securitized portfolio and the collection rights on Fovissste s portfolio, FHipo s mortgage portfolio as of 3Q17 consists of 82,266 loans for a total value of Ps. $25,702.2 million, considering the outstanding portfolio balance excluding accrued interest and indexation on loans denominated in times minimum wage ( VSM ), a 32.1% increase in comparison with Ps. $19,586.6 million registered as of 3Q16. Portfolio Value (millions) # of Mortgage Loans Summary Consolidated Mortgage Portfolio 3 Interest rate Infonavit Total Pesos Average interest rate Infonavit Total VSM Interest rate Infonavit Más Crédito Average interest rate Fovissste VSM Non- Current Portfolio Ps. $25, , % (nominal) 9.56% (real) 10.81% (nominal) 5.38% (real) 0.85% Non-Current Portfolio in consolidated terms represents 0.85% of the consolidated mortgage portfolio. The consolidated non-current portfolio has remained below our long-term estimated loss, this is a result of our well designed diversification strategy. At a balance sheet level, FHipo's non-performing loans, including over due interest, represent 1.13% or Ps. $210.1 million, compared to 0.68% in 3Q16. Allowance for Loan Losses reached Ps. $294.8 million as of 3Q17, determined by the estimated loss methodology in accordance with IFRS, an increase of Ps. $141.6 million in comparison with Ps. $153.2 million registered in 3Q16, such increase is mainly derived by the recognition of the expected loss over the investments made in new mortgage loans during the quarter and in a smaller portion to the mortgages that have fallen into default; the allowance corresponds 3 Consolidated figure consider Infonavit s portfolio and the collection rights on Fovissste s portfolio on and off balance. Refers to FHipo s outstanding portfolio balance, excluding accrued interest and indexation on loans denominated in times minimum wage (VSM). The consolidated figures are shown for informative purposes only. 9 PAGE

11 to the expected loss of the remaining life of each loan. The accumulated allowance for loan losses is equivalent to a coverage ratio of 1.4x (times) against our non-current portfolio. Receivable Benefits in Securitization Transactions of the equity residual, as of 3Q17 has a value of Ps. $2,233.6 million and is composed of two transactions: i) CDVITOT 15 and ii) FHIPOCB 17U. The equity residuals are valued in accordance with IFRS at fair value. Other Receivables as of 3Q17 amounted to Ps. $516.7 million, a decrease of Ps. $328.8 million compared to the Ps. $845.5 million registered in 3Q16, which at the time considered an advance payment for the purchase of a portfolio worth Ps. $498.1 million. Other receivables registered at the end of the 3Q17 are mainly composed of the collection effectively realized from Infonavit, which has not yet been transferred to the trust, and pending reimbursement of mortgage loans. Total Liabilities as of 3Q17 were Ps. $11,337.8 million, and show an increase of Ps. $3,953.3 million compared to the Ps. $7,384.6 million registered as of 3Q16. The increase is due to the execution of our leverage strategy through the long-term bond issuances of Ps. $3,900.0 million, in addition to the withdrawn amount from our credit facilities for a total of Ps. $6,647.0 million, and the short-term bond issuance, which amounts to Ps. $500.0 million. Total Equity reached Ps. $11,011.9 million, a 4.7% decrease in comparison with the Ps. $11,556.9 million reported in 3Q16, the decrease is mainly due to the acquisition of FHIPO 14 CBFIs made during the 3Q17, through our share buy-back program. Total Equity consists of the amount obtained from our Global Equity Offerings, net of issuance costs and accumulated earnings, and other comprehensive income, minus acquisitions realized by our share buy-back program and distributions paid to investors. The following graphs display the development of our leverage strategy, the behavior of our non-performing portfolio and certain financial ratios. Development of our on-balance Leverage Strategy (consolidated debt, figures in billions of pesos) Securitizations (RMBS) Long-Term Bonds Credit Facilities Short-Term Bonds $8.2 $9.9 $11.6 $13.4 $14.8 $16.3 $2.6 $4.4 $5.3 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 10 PAGE

12 Stable levels of NPLs with conservative allowance for loan losses 4 Expected Loss Coverage = 3.1x NPLs Portfolio Coverage = 1.6x 1.35% 1.35% 0.43% 0.43% 0.85% 0.85% Expected Loss Expected Loss Coverage NPLs NPL Coverage Performance of our Key Financial Ratios 7.6% 6.4% 9.7% 6.3% 5.4% 4.2% 7.2% 4.3% 8.3% 8.4% 9.5% 8.5% Net Interest Margin (NIM) Return on Assets (ROA) Return on Equity (ROE) 3Q16 3Q YTD 2017 YTD 4 Considers weighed severity of FHipo s consolidated portfolio of 51.0%, consolidated NPLs of Ps. $219.7 million and consolidated portfolio of Ps. $25,702.2 million. 11 PAGE

13 Consolidated Portfolio Composition The following table details FHipo s Consolidated Portfolio as of September 30, FHipo - Consolidated Portafolio Total Balance (FHipo's Participation) Ps. $25,702 million (2) Total Loans 82,266 Average co-participated loan balance by Mortgage Loan Ps. $312,428 (2) Loan-to-Value at Origination (LTV) (3) 76.06% Payment-to-Income (PTI) (3) 24.61% Current Portfolio 99.15% By Mortgage Origination Program Infonavit Total (IT) Portfolio Balance IT (VSM (4) and Pesos) Ps. $12,403 million Loans IT (VSM (4) and Pesos) 53,940 Portfolio Balance - IT VSM (4) Ps. $5,291 million Loans - IT VSM (4) 22,881 Average Interest Rate - IT VSM (4)(3) 9.56% in VSM Portfolio Balance - IT Pesos Ps. $7,112 million Loans - IT Pesos 31,059 Average Interest Rate - IT Pesos 12.00% (Nominal) Infonavit Más Crédito (IMC) Portfolio Balance Ps. $10,467 million Loans 20,996 Average Interest Rate (3) 10.81% (Nominal) Fovissste Portfolio Balance Fovissste Ps. $2,832 million Loans 7,330 Average Interest Rate (3) 5.38% in VSM Note: Consolidated figures consider Infonavit s portfolio and Fovissste s collection rights portfolio on and off balance. The consolidated figures are solely for informative purposes. (1) Fovissste s portfolio represents, through trust certificates, the collection rights on the listed mortgage loan portfolio. (2) Refers to FHipo s outstanding portfolio balance, excluding accrued interest and indexation on loans denominated in times minimum wage (VSM). As of September 30, 2017, FHipo co-participants 68.4% (weighted average) of each mortgage loan. (3) Weighted average by Total Balance. (4) The interest rate on loans denominated in VSM is indexed to the increase in the Unit of Measure and Update (UMA). 12 PAGE

14 Infonavit s mortgage portfolio characteristics (Infonavit Total and Infonavit Más Crédito) Distribution by borrower s salary in VSM at loan origination date (as % of total loans within Infonavit s portfolio) Distribution by interest rate in VSM (1) (as % of total loans within Infonavit s VSM portfolio) 46.7% < % 25.4% 23.6% 27.6% % > % 5.3% 5.5% 5.5% 17.7% 8.50% 8.6% - 9.0% 9.1% - 9.5% 9.6% % Infonavit Total Pesos 12.0% nominal Infonavit Más Crédito 10.9% nominal Fovissste s (2) mortgage portfolio characteristics Distribution by borrower s salary in VSM at loan origination date (as % of total loans within Fovissste s portfolio) 0.3% Distribution by interest rate in VSM (1) (as % of total loans within Fovissste s portfolio) 54.7% < % % 28.0% > % 5.00% 5.50% 6.00% (1) The interest rate on loans denominated in VSM is indexed to the increase in VSM. (2) Fovissste s portfolio represents, through trust certificates, the collection rights on the listed mortgage loan portfolio. 13 PAGE

15 State of Mexico Nuevo León Jalisco Veracruz Guanajuato Coahuila Querétaro Chihuahua Baja California Distrito Federal Tamaulipas Hidalgo Quintana Roo Sonora Puebla Others Earnings Report 3Q17 Consolidated mortgage portfolio characteristics Distribution by Loan-to-Value (LTV) at loan origination date (as % of total loans within consolidated portfolio) Distribution by borrower s salary in VSM at loan origination date (as % of total loans within consolidated portfolio) 37.4% 21.1% 25.6% 15.9% 65 % % % 85-95% 32.9% 4.3% 5.0% 5.3% 5.4% 28.4% 18.7% < > 10.0 Distribution by Total Balance (1) on and off balance (as % of total loans within consolidated portfolio) 9.2% Distribution by origination program (as % of total loans within consolidated portfolio) 40.8% Total Loan Balance Ps. $25,702 million 18.0% Infonavit Total VSM Infonavit Total Pesos Infonavit Más Crédito 72.8% 27.7% 10.9% Fovissste (2) CDVITOT 15U-2U FHIPOCB 17U On Balance Portfolio Geographic distribution of the portfolio 20.6% Distribution by Interest Rate (Real vs. Nominal) (as % of total loans within consolidated portfolio) 22.2% (as % of total loans within consolidated portfolio) 12.1% 11.1% 6.7% 5.9% 5.0% 4.8% 4.6% 4.1% 4.0% 3.6% 3.6% 3.2% 3.1% 3.1% 2.9% 31.5% Loans denominated in Real Terms Loans denominated in Nominal Terms + - Concentration Level 68.5% (1) The interest rate on loans denominated in VSM is indexed to the increase in UMA. (2) Fovissste s portfolio represents, through trust certificates, the collection rights on the listed mortgage loan portfolio. 14 PAGE

16 Distribution to Holders On August 24 th, 2017, FHipo made the distribution of 95% of the net income obtained during the 2Q17 amounting to Ps. $0.506 per CBFI. In accordance with our distribution policy, FHipo plans to distribute to its holders, for the period composed from July 1, 2017 to September 30, 2017, Ps. $218.7 million, which represents 95% of the Net Income of the 3Q17 that divided by the outstanding CBFIs as of the October 27, 2017 (this report s publication date) results in a distribution per CBFI of Ps. $ FHipo s Distribution and Yield Return on Invested Capital Distribution and yield on the issuance price of the CBFI at 3Q17 3Q17 EPS (Ps./CBFI) (1) $0.535 Issuance Price - IPO (Ps.) $25.00 Outstanding CBFIs as of 3Q17 430,449,930 (2) (calculation of accumulated yield since 4Q16) Accumulated Distributions (3) Effective Days Invested Capital as of 3Q17 (4) Ps. $911.8 million 365 days Ps. $11,286.2 million Period: 3Q17 Annualized distribution on Equity as of 3Q17 (%): 8.08% (5) 95%, Estimated Distribution Ps. $218.7 million Yield on price of CBFI (IPO) at 3Q % (2) (1) Net Income / CBFIs outstanding. (2) Considering the outstanding CBFIs as of this reports publication date (October 27 th, 2017) (3) Accumulated distributions since 4Q16. (4) Invested capital results from deducting the expected distribution of the 3Q17 results and adding the IPO and Follow-on expenses from FHipo s total equity at the end of the 3Q17. (5) Annualized considering 365 effective days since the 4Q16 and calculated in accordance with the administration s trust agreement. 15 PAGE

17 Performance of our EPS and Distribution per CBFI $1.548 $1.604 $1.471 $1.524 $0.500 $0.535 $0.475 $0.508 Note: Distribution per CBFI referring to the 3Q17 considers the number of outstanding CBFIs at of October 27, Leverage Earnings per CBFI (EPS) CEDEVI Program (RMBS) CDVITOT 15U and CDVITOT 15-2U During the 3Q15, FHipo managed to execute its first CDVITOT issuance together with Infonavit, in which FHipo, as a participant in the Infonavit Total Program, contributed ~59.4% of the securitized portfolio (Ps. $2,816.5 million). The total issuance amounted to Ps. $4,232.3 million, with an interest rate for the senior tranche and the subordinate tranche of 2.80% and 4.12% in UDIs, respectively. The blended interest rate that FHipo pays resulted in 2.91% in UDIs (real rate). The portfolio that backs this securitization amounted to Ps. $2,370.0 million as of the 3Q17, such certificates maintain an outstanding balance of Ps. $1,942.2 million (considering FHipo s participation). Securitization FHIPOCB 17U In 3Q17, FHipo carried out a second securitization through CBFs with a ticker symbol "FHIPOCB 17U". This issuance corresponds to the first securitization of its type, incorporating portfolios from both Infonavit and Fovissste. The total amount offered, before issuance expenses, amounted to 584,277,300 UDIS, that is, Ps. $3,362.8 million, these certificates pay a fixed interest rate of 4.13% in UDIS. As of quarters end, these certificates are backed by a mortgage portfolio of Ps. $4,623.7 million, and maintain an outstanding balance of Ps. $3,324.5 million. Warehousing Line Facilities FHipo maintains four credit facilities through warehousing mortgage structures, two with Banorte for up to Ps. $7,000.0 million, one with Santander for up to Ps. $2,000.0 million, and a fourth with the Inter-American Development Bank for up to Ps. $1,397.0 million. As of the 3Q17, FHipo has withdrawn Ps. $6,647.0 million from these credit facilities. Dual Debt Program of Trust Certificates 3Q16 3Q YTD 2017 YTD Distribution per CBFI FHipo celebrated a dual debt program of short and long-term trust certificates with revolving character, for up to Ps. $15,000.0 million. As of September 30, 2017, FHipo maintains through such program, two long-term bonds amounting to Ps. $3,900.0 million and one short-term bond for Ps. $500.0 million. 16 PAGE

18 Funding Structures Sources of Funding Type of Funding Benchmark Rate Margin Maximum amount Amount Withdrawn Maturity Date / Duration CDVITOT 15U Securitization UDIBONO 2019 (1.80%) +100 bps - $1,707 (1) Financial Duration: 2019 CDVITOT 15-2U Securitization UDIBONO 2020 (2.22%) +190 bps - $235 (1) Financial Duration: 2020 FHIPOCB 17U Securitization UDIBONO 2025 (3.11%) +102 bps - $3,325 (1) Financial Duration: 2025 Credit Facility Banorte No. 1 Warehousing Line TIIE bps (2) $5,000 $3,250 Legal Term: 2025 (Revolving) Credit Facility Banorte No. 2 Warehousing Line TIIE bps (2) $2,000 $0 Legal Term: 2026 (Revolving) Credit Facility Santander Warehousing Line TIIE bps (2) $2,000 $2,000 Legal Term: 2046 Long-Term Bond FHIPO 16 Covered Bond Fixed Rate = 7.00% - - $3, / Legal Term: 2051 Long-Term Bond FHIPO 17 Covered Bond Fixed Rate = 8.78% - - $ / Legal Term: 2052 Short-Term Bond FHIPO Unsecured Bond TIIE bps - $500 May 2018 Credit Facility IDB Warehousing Line TIIE bps $1,397 $1, (Revolving) Leverage Ratio and Debt Service Coverage Ratio (1) FHipo s leverage and debt to equity ratio as of September 30, 2017 was the following (in millions of pesos): 5 Result as of the 3Q x (2) 1 Result as of the 3Q x (2) 2.5 Result as of the 3Q x (2) (1) Calculation methodology based on the CNBV, Annex AA from the Consolidated Letter of Securities Issuers (CUE). For further detail refer to Leverage Report. (2) Calculated with financial information as of 3Q17. Our leverage ratio (Total Assets/Equity Securities) was of 2.03x. We seek to continue developing our leverage strategy in the upcoming quarters, demonstrating the potential of FHipo s business plan in the capital markets while at the same time generating attractive returns to our investors. This, as FHipo s business plan evolves, will lead to a gradual increase in our leverage ratio seeking to reach our targeted ~2.5x Debt/Equity ratio (~3.5x Assets/Equity). Furthermore, as of the end of the 3Q17, our debt service coverage ratio was of 3.84x, within the regulatory limit. Our risk team constantly assesses the limits and guidelines with which we must comply in accordance with the CNBV. 17 PAGE

19 Relevant Events during the 3Q17 FHipo announces the issuance of a securitization through CBFs in UDIS under ticker symbol FHIPOCB 17U for a total amount equivalent to Ps. $3,362.8 million (July 5, 2017) - FHipo announces the it has carried out its first securitization (mortgage backed security) through Certificados Bursátiles Fiduciarios with ticker symbol FHIPOCB 17U, issued under the Trust No. 3186, constituted by FHipo, as Trustor and Invex Bank as Trustee, to which FHipo assigned all rights of certain mortgage loans and collections rights originated under the Infonavit Total VSM and Fovissste Tradicional VSM Programs, respectively. The total amount of the offering, before issuance costs, amounts to 584,277,300 UDIS, i.e. Ps. $3,362.8 million and the certificates will pay an interest rate of 4.13% in UDIS, which derives from a 102 basis point margin. The mortgage loan portfolio that backs this issuance amounts to Ps. $4,769.9 million, which represents an overcollateral of 29.5%. The transferred portfolio has a financial duration of 6.3 years and the amount demanded in the market was 2.0 times the amount offered. FHipo announces prepayment of the credit facilities with Grupo Financiero Banorte for a total amount of Ps. $3,074 million (July 10, 2017) - FHipo informs that the prepayment option of the credit facilities signed with Banco Mercantil del Norte, S.A., Institución de Banca Múltiple, Grupo Financiero Banorte ( Banorte ) was carried out, for a total amount of Ps. $3,074 million. Considering this amortization, the outstanding balance of the Banorte credit facilities is Ps. $3,250 million. FHipo informs that on August 24, 2017, the distribution corresponding to the second quarter of 2017 will take place (August 16, 2017) - FHipo informs that on August 24, 2017 the distribution of $ pesos per CBFI will take place. FHipo certificates will commence trading ex-dividend on August 21 st, This distribution corresponds to the second quarter of 2017 and it is 100% (hundred percent) interest distribution.. FHIPO 14 CBFIs Share Buy-back (September 30, 2017) - FHipo announces to the shareholders and the general public that, in accordance to what was approved by the Ordinary Shareholders' Meeting on January 30, 2017, as of the end of the 3Q17 FHipo has carried out the acquisition of 29,265,070 CBFIs FHIPO 14. As of September 30, 2017 FHipo maintains 440,249,930 outstanding CBFIs. 18 PAGE

20 Assemblies and Committees held during the 3Q17 Assemblies and Committees held during the 3Q17 Eleventh Ordinary Session of the Audit Committee July 25, 2017 Fourtenth Ordinary Session of the Technical Committee July 26, 2017 Ordinary Holders Assembly September 12, 2017 Analysts Coverage Credit Suisse Casa de Bolsa México, S.A. de C.V. Morgan Stanley Casa de Bolsa México, S.A. De C.V. Nau-Securities Limited Santander Casa de Bolsa México, S.A. de C.V. Institution Equity Research Analyst Recommendation Current Target Price Credit Suisse Vanessa Quiroga Outperform Ps. $30.0 Morgan Stanley Nikolaj Lippman Equal-weight Ps. $25.0 Nau-Securities Iñigo Vega Fairly Valued Ps. $26.7 Santander Cecilia Jimenez Buy Ps. $27.0 About FHipo FHipo is the first real estate investment trust established to acquire, originate, co-participate, and manage mainly mortgage portfolios, providing capital gains linked to the mortgage returns and contributing to the financing and development of the housing sector in Mexico. Our portfolio is composed by residential mortgages in Mexico with an attractive risk-reward ratio. The current portfolio uses Infonavit s origination and servicing platform, allowing access for collection through payroll deduction, serving as a primary servicer of mortgage portfolios, in addition CH Asset Management has developed together with Concord Servicing a proprietary technological platform. Through FHipo, investors can access the residential mortgage market in Mexico and benefit from the liquidity of an instrument listed on the BMV. 19 PAGE

21 Our Committees as of 3Q17 Technical Committee Non-independent members Alfredo Vara Alonso 5 Daniel M. Braatz Zamudio J. Jesús Gómez Dorantes Independent Members Daniel Reséndiz José Vicente Corta Fernández Margarita de la Cabada Sebastián Fernández Cortina Audit Committee Daniel Reséndiz Carillo Margarita de la Cabada Sebastián Fernández Cortina Practice Committee Daniel Reséndiz Carillo José Vicente Corta Fernández Margarita de la Cabada Nominations Committee Daniel Reséndiz Carillo José Vicente Corta Fernández Margarita de la Cabada DISCLAIMER This press release may contain forward-looking statements based on the current expectations of FHipo. Actual future events or results could differ materially from these statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. 5 It is important to note that since February 17, 2017, Alfredo Vara Alonso has not participated in the Technical Committee derived from his appointment as Chief Executive Officer of the National Bank of Public Works and Services (Banco Nacional de Obras y Servicios Públicos, S.N.C.). As of this date, the duties of the Chief Executive Officer have been performed by Daniel Michael Braatz Zamudio. 20 PAGE

22 Conference Call with Investors FHipo will hold its conference call with investors on October 30, 2017 at 8:00 a.m. Mexico City Time (10:00 a.m. EST), to discuss the financial results of the 3Q17. To participate in the conference, please call (USA & Canada) or (International & Mexico) with the conference code approximately 10 minutes before the call starts. The call will be recorded and filed on the web page of in the Investor Relations section. Investor Relations Ignacio Gutiérrez / CFO / ig@fhipo.com Xavier Martínez / IRO / xm@fhipo.com Ph: +52 (55) investorrelations@fhipo.com Address: Juan Salvador Agraz 65, Piso 9B, Lomas de Santa Fe,Del. Cuajimalpa, C.P , Mexico, D.F. 21 PAGE

23 Appendix Balance Sheet FIDEICOMISO F/2061 FHipo Statements of Financial Position (In Thousands of Mexican Pesos) 3Q17 3Q16 Variation % Var ASSETS Cash and cash equivalents $747,965 $406,570 $341, % Debt securities N/A Current mortgage loans 18,389,353 13,970,169 4,419, % Past due mortgage loans 201,280 92, , % Accrued interest 320, , , % Indexation on mortgage loans 43,695 74,371 (30,676) (41.2%) Allowance for loan losses (294,839) (153,199) (141,640) 92.5% Mortgage loans, net 18,660,338 14,173,162 4,487, % Collection rights, net 107,964 3,024,252 (2,916,288) (96.4%) Receivable benefits in securitization transactions 2,233, ,234 1,763, % Derivative financial instruments 83,001 21,690 61, % Accounts receivables and other assets 516, ,522 (328,798) (38.9%) TOTAL ASSETS $22,349,721 $18,941,430 $3,408, % LIABILITIES Accounts payables and accrued expenses $271,025 $227,504 $43, % Notes/securities payable 4,396,523 3,641, , % Borrowings 6,670,300 3,515,100 3,155, % TOTAL LIABILITIES $11,337,848 $7,384,561 $3,953, % EQUITY Common stock, net $10,593,560 $11,243,692 ($650,132) (5.8%) Other comprehensive income $83,005 $21,690 $61, % Retained earnings 335, ,487 43, % TOTAL EQUITY $11,011,873 $11,556,869 ($544,996) (4.7%) TOTAL LIABILITIES AND EQUITY $22,349,721 $18,941,430 $3,408, % 22 PAGE

24 Appendix Income Statement FIDEICOMISO F/2061 FHipo Income Statements (In Thousands of Mexican Pesos, except Net Income per CBFI) REVENUES Quarter to Quarter Year to date 3Q17 3Q16 Variation % Var 3Q17 3Q16 Interests on mortgage loans $358,889 $446,668 ($87,779) (19.7%) $1,528,550 $1,134,176 Investment income 14,151 7,909 6, % 44,729 14,799 Total net interest income 373, ,577 (81,537) (17.9%) 1,573,279 1,148,975 Financing interest expenses (232,771) (117,747) (115,024) 97.7% (698,122) (190,835) Financial margin 140, ,830 (196,561) (58.4%) 875, ,140 (-) Allowance for loan losses (59,433) (35,653) (23,780) 66.7% (154,072) (80,975) Financial margin adjusted for credit risks 80, ,177 (220,341) (73.2%) 721, ,165 Valuation of receivable benefits in securitization transactions 265,485 26, , % 327, ,323 TOTAL REVENUES, NET $346,321 $328,121 $18, % $1,048,451 $977,488 EXPENSES Management and collection fees (90,494) (80,230) (10,264) 12.8% (268,433) (214,888) Other administrative expenses (25,631) (13,308) (12,323) 92.6% (65,777) (35,562) TOTAL EXPENSES (116,125) (93,538) (22,587) 24.1% (334,210) (250,450) NET INCOME $230,196 $234,583 ($4,387) (1.9%) $714,241 $727,038 NET INCOME PER CBFI $0.535 $0.500 $ % $1.574 $1.549 COMPREHENSIVE INCOME Net income $230,196 $234,583 ($4,387) (1.9%) $714,241 $727,038 Other comprehensive income 1,285 21,690 (20,405) (94.1%) (47,649) 21,690 TOTAL COMPREHENSIVE INCOME $231,481 $256,273 ($24,792) (9.7%) $666,592 $748, PAGE

25 Appendix Stratification Analysis of Infonavit s Portfolio Earnings Report 3Q17 Below we present a stratification analysis of Infonavit s on and off balance portfolio as of September 30, (Infonavit s on and off balance portfolio) Loan Denomination Average Interest Rate Stratification Analysis Infonavit Portfolio By Loan Denomination Infonavi Total VSM (real rate) 9.56% 22, % $ 5,291,391, % 2,305, % Infonavit Total Pesos 12.00% 31, % $ 7,112,135, % 3,099, % Infonavit Mas Credito Pesos 10.81% 20, % $ 10,466,800, % 4,560, % Total 74, % $ 22,870,328, % 9,965, % Worker's Salary By Worker's Salary <= VSM 19, % $ 3,415,578, % 1,488, % VSM 13, % $ 2,586,924, % 1,127, % VSM 4, % $ 916,287, % 399, % VSM 4, % $ 1,008,298, % 439, % VSM 3, % $ 1,104,420, % 481, % VSM 3, % $ 1,059,893, % 461, % > VSM 26, % $ 12,778,924, % 5,568, % Total 74, % $ 22,870,328, % 9,965, % Interest Rate By Interest Rate in VSM 8.50% % $ 79,978, % 34, % 8.6% - 9.0% 5, % $ 958,440, % 417, % 9.1% % 10, % $ 2,293,286, % 999, % 9.6% % 6, % $ 1,959,685, % 853, % Total 22, % $ 5,291,391, % 2,305, % Months Past Due By Months Past Due 0 months 70, % $ 21,653,510, % 9,435, % < 91 days 3, % $ 1,019,449, % 444, % 91 days % $ 197,368, % 86, % Total 74, % $ 22,870,328, % 9,965, % Loan to Value (LTV) By Loan to Value (LTV) <= 65% 15, % $ 3,760,991, % 1,638, % 65% % 11, % $ 3,329,303, % 1,450, % 75% % 18, % $ 5,572,168, % 2,428, % 85% % 29, % $ 10,207,864, % 4,448, % Total 74, % $ 22,870,328, % 9,965, % Loan Regime By Loan Regime Ordinary Amortization Regime (ROA) 69, % $ 21,278,178, % 9,271, % Special Amortization Regime (REA) 3, % $ 872,155, % 380, % Extension 2, % $ 719,994, % 313, % Total 74, % $ 22,870,328, % 9,965, % 24 PAGE