Fibra Uno Quarterly Earnings Presentation 3Q17

Transcription

1 Fibra Uno Quarterly Earnings Presentation 3Q17

2 Letter from the CEO Dear Investors. I am again very pleased to present to you the sound results of our Company. During this quarter, revenues grew 6.4% compared to the third quarter of last year, totaling $3,573 million pesos. During this quarter the operating margin was maintained at around 80% and gross leasable area grew 69,000 sqm to reach 7.73 million sqm. Total consolidated occupancy was also constant at 93.6%. Even though it is not part of the quarterly results, I want to share with you a very relevant milestone that strongly signals our investors trust in FUNO and in Mexico. This past October 5, FUNO conducted its fifth equity follow-on for $12,802 million pesos, through a public offering of 420 million CBFIs in both local and international markets. The offering was oversubscribed 3.5 times the amount raised, with more than 90 investors in the book, many of them current CBFI holders, and also many of them new investors. Once again, we were capable to navigate through volatile times and obtain resources that solidify even more our strong balance sheet. In FUNO, following our business model, we are prepared to take advantage of all investment opportunities throughout the real estate business cycle. For this issuance, as with for all further issuances, FUNO established an Shelf-Registration Program of both equity and debt, which will allow the Company to better manage its financing needs, and to conduct more efficient capital raisings in both size and timing, among other advantages. The proceeds of this transaction will be used to invest in properties that generate high value through capital appreciation combined with attractive cash flows. I would also like to highlight the results of our most recent CBFI Holders Meeting in which all the items on the agenda were approved by a vast majority, mainly: a) Approval for the establishment of a dual Shelf-Registration Program for up to 1,500 million CBFIs for equity, and up to $55,000 million pesos for debt b) The approval to issue up to 1,500 million CBFIs for use under the Program or to invest in properties, namely acquisitions of real estate assets with CBFIs. Regarding this matter, I would like to highlight the commitment by FUNO s management to recommend our Technical Committee to adopt certain measures for the responsible use of the capital authorized and entrusted to us by our CBFI Holders. We recommended our Technical Committee adopt a resolution whereby Fibra Uno will only announce an equity offering to the markets if the CBFI is trading at that time at a price of 90% or above NAV per CBFI, for a total of up to million CBFIs. Furthermore, Fibra Uno will only announce the issuance of CBFIs to the market if the trading price at that time is 95% of NAV per CBFI or above, for the remaining 750 million CBFIs. Finally, in the event CBFIs are used as for investment in real estate, Fibra Uno will not issue CBFIs at a price below NAV per CBFI, regardless of when acquisitions occur, for those CBFIs remaining excluding the announced Apollo, Turbo or Frimax portfolios. This quarter was marked by a very relevant phenomenon: the earthquake of September 19. Within our inspection and analysis activities, we surveyed 377 properties within the areas affected by the earthquake. None of our properties reported material damages and none needs to be demolished. Only four buildings need preventive structural support. All expenses derived from repairs in our properties are covered by our insurance policies that include loss of rent revenue as well. As I have mentioned many times, our goal is to be a world-class company. Because of that, I am honored to share with you that during a recent assessment of a universe of 147 companies conducted by Robeco SAM, S&P Dow Jones Indices and the International Finance Corporation (IFC), FUNO was selected to become part of the Dow Jones Sustainability MILA Pacific Alliance Index (DJSI), integrated by publicly-traded companies with the highest corporate governance standards and best social and environmental practices, and the in the Pacific Alliance region that includes Mexico, Colombia, Chile and Peru. 2

3 The Dow Jones Sustainability MILA Pacific Alliance Index is the first index of its kind in the region and is part of the Dow Jones Sustainability Indices family. The index is integrated by 42 leading organizations on sustainability matters, of which only three belong to the real estate sector, including FUNO. Such assessment has a Best in Class focus. Moreover, on social responsibility matters, I would like to let you know that FUNO has committed, together with the FUNO Foundation and state governments, to build 200 houses in areas affected within Mexico City, and 2,000 more houses in the state of Chiapas. On the acquisitions arena, we are going forward with the closing processes of both Apollo II and Turbo portfolios. We expect to close on them soon and under attractive terms substantially similar to those in place when they were announced last year. Additionally, we are currently analyzing several acquisitions opportunities that will be accretive to our value-creating business model. In terms of developments, we have seven properties under development totaling more than 452,000 sqm of gross leasable area. We expect to deliver these developments in a timely manner. It is important to mention that almost all our developments are already paid for, this means that they will need hardly any cash to be completed, and whose revenues will add up to those currently generated by the Company. I would like to thank again all of you for your trust on FUNO and on Mexico. I am still convinced that Mexico is a great investment destination in several sectors, especially in real estate. We will continue to invest in Mexico and to create value for all of you. Sincerely, André El-Mann CEO, FUNO 3

4 Relevant Information from the Quarter Financial Indicators Δ% Δ% 3Q17 2Q17 1Q17 4Q16 3Q16 3Q17vs2Q17 3Q17vs3Q16 Total Revenues 3, , , , , % 6.4% Property revenues (1) 3, , , , , % 5.7% Net Operating Income (NOI) 2, , , , , % 6.0% NOI Margin (2) 80.4% 80.4% 80.7% 80.5% 80.6% 0.0% -0.3% Funds from Operations (FFO) 1, , , , , % -1.5% FFO Margin (3) 48.8% 50.0% 52.8% 53.3% 52.4% -1.1% -3.6% PER CBFI NOI (4) % 2.7% FFO (4) % -4.6% Distribution (4) % 5.6% CBFIs Total outstanding average during the period (5) 3, , , , , % 3.2% Total outstanding at the end of the period (5) 3, , , , , % 3.3% OPERATIONAL INDICATORS Total GLA ( 000 m 2 ) (6) 7, , , , , % 5.7% Number of operations (7) % 1.0% Average contract term (years) % -3.2% Total Occupancy 93.6% 93.7% 93.4% 94.4% 94.7% -0.1% -1.0% GLA under development ( 000 sqm) JV s under development ( 000 sqm) (8) (1) Includes revenues derived from trust rights of Torre Mayor and Torre Diana (2) Margin over total revenues (3) Margin over property revenues (4) FFO/CBFI is calculated with the total outstanding average of CBFIs during the period. Distribution/CBFI is calculated with the total outstanding CBFIs at the moment that the distribution is approved (the total number of CBFIs outstanding is of 3,326,983,408). (5) Million CBFIs (6) Includes total GLA from Torre Mayor, Torre Latino and Torre Diana (7) Number of properties by segment. Total number of properties 500 (8) Includes the development of Mitikah mixed-use development All figures are in million pesos 4

5 Quarterly MD&A Operating Results The results below show the comparison between the third quarter of 2017 and the second quarter of 2017: Revenues FUNO total revenues decreased by Ps. 6.8 million for a total of Ps. 3,573.2 million pesos, representing a 0.2% decrease compared to 2Q17. This decrease is mainly explained by the appreciation of the foreign exchange rate during the quarter; had the foreign exchange rate remained constant, total revenues would have reached Ps. 3,599.4 million pesos, an increase of Ps million. Occupancy FUNO s total occupancy at the close of the quarter was 93.6%, 10 bp below 2Q17. This decrease stems from: i. A 0.5% increase in the retail segment, ii. A 0.4% decrease in the industrial segment, and iii. A 0.6% decrease in the office segment. Maintenance Expenses, Property Taxes and Insurance Maintenance, property tax and insurance expenses declined by 0.5% from 2Q17, representing a reduction of Ps. 2.2 million Net Operating Income (NOI) During 3Q17 NOI decreased by Ps. 5 million, mainly as a result of lower total revenues as explained above. Interest Expense and Income Net interest expense rose by Ps million in the third quarter. This increment is mainly attributed to lower interest income due to the development activities during the quarter. Funds from Operations (FFO) FUNO s FFO in 3Q17 decreased by Ps million from the previous quarter as a result of the combination of foreign exchange fluctuations and development activity impact on interest income In terms of FFO/CBFI we recorded a decrease of 3.7% from the prior quarter as a result of the above, as well as additional CBFIs outstanding during the quarter related to the employee compensation plan and remaining payments of the Alaska portfolio and Torre Cuarzo. 5

6 Balance Sheet Accounts Receivable i. Accounts receivable in 3Q17 amounted Ps. 1,181.9 million compared to Ps. 1,221.8 million in the prior quarter. This decrease is explained mainly by the effort made in collections during the quarter. Investment properties The value of our investment properties increased by Ps. 3,173.4 million in the third quarter of 2017 due to: ii. Asset revaluation, and iii. Investments made in existing projects under development. Debt Total debt in 3Q17 amounted to Ps. 63,091.2 million compared to Ps. 62,262.3 million in the previous quarter. This increase is due to: (i) the additional disbursement of Ps. 500 million of the loan with Santander, (ii) the depreciation of the foreign exchange rate, which increased from Ps to Ps per US dollar by the end of the quarter, and (iii) to the effect of the appreciation in the value of the UDI from to in the balance of our bonds denominated in this currency Trustors Capital Trustors capital decreased by Ps million during the third quarter compared to the prior quarter as a result of: i. The net effect of the third quarter results and the distribution, and ii. Acquisition of Doña Rosa (Frimax Portfolio). 6

7 NOI and FFO Reconciliation Δ% Δ% 3Q17 2Q17 1Q17 4Q16 3Q16 3Q17vs2Q17 3Q17vs3Q16 Rental revenues 3, , , , , % 5.7% Total Revenues 3, , , , , % 6.4% - Operating Expenses % 8.3% - Maintenance Expenses % 10.6% - Property Taxes % -6.8% - Insurance % 18.3% - +/- Non-Recurring Items % Net Operating Income (NOI) 2, , , , , % 6.0% Margin over Total Revenues 80.4% 80.4% 80.7% 80.5% 80.6% 0.0% -0.3% Margin over Rental Revenues 89.7% 90.0% 89.8% 90.2% 89.5% -0.3% 0.3% FFO and AFFO Reconciliation Consolidated Comprehensive Net Income 2, , , , , % 56.8% +/- Fair Value Adjustments , , , % 9.6% +/- Foreign Exchange Variation, Net , , , % -92.5% +/- Valuation Effect on Financial Instruments % % + Banking Commissions Amort % 5.9% + Provision for the EPC % -70.1% + Administrative Platform Amort % 0.0% Participation non-controlling % 176.1% +/- Non- recurring items % 0.0% FFO 1, , , , , % -1.5% - Maintenance CAPEX % 0.0% AFFO 1, , , , , % -1.5% PER CBFI NOI (1) % 2.7% FFO (1) % -4.6% AFFO (1) % -4.6% Distribution (2) % 5.6% (1) Calculated using the average CBFIs in the period (see page 3) (2) Distribution/CBFI is calculated with the total outstanding CBFIs at the moment that the distribution is approved (see page 3) (3) 22.5% non-controlling participation of our partners in Torre Latino 7

8 PORTFOLIO SUMMARY Δ% Retail 3Q17 2Q17 1Q17 4Q16 3Q16 3Q17vs2Q17 Total GLA ( 000 m 2 ) 2, , , , , % Operations (1) Average contract term (years) Total occupancy 93.8% 93.3% 93.4% 93.6% 93.8% 0.5% Industrial Total GLA ( 000 m 2 ) 3, , , , , % Operations (1) Average contract term (years) Total occupancy 94.9% 95.3% 94.9% 96.5% 96.3% -0.4% Office Total GLA ( 000 m 2 ) % Operations (1) Average contract term (years) Total occupancy 87.8% 88.3% 87.2% 88.2% 90.6% -0.6% Revenue by Geography (2) (% ABR, as of 3Q 17) Revenue by Sector (2) (% ABR, as of 3Q 17) Lease Expiration Profile (% ABR, as of 3Q 17) 31% Office Industrial Retail Retail Industrial Office 46.1% 25% 21.1% 10% 8% 8 % 10% 51.2% 2% 2% 2% 1% 1% DF EdoMex Jal NL QR Tamps Chih Coah Ver Son Other 27.7% 14.9% 12.7% 13.8% 5.6% 7.0% Others (3) (1) Number of operations by segment. The number of properties is 500 (2) It considers revenues from signed contracts and 100% of the revenue from the fiduciary rights of Torre Mayor and Torre Diana, as well as 100% of Torre Latino's income 8

9 (3) Statutory leases Same-Store Rents During the third quarter of 2017, same-store revenues of constant properties (measured as rent/sqm/month) rose 3.0%, whole rental revenues grew 3.9%, mainly derived from contract renewals above inflation. Quarterly Revenues 000 s 3Q Q 2016 % Variation Industrial 795, , % Retail 1,680,984 1,581, % Office 737, , % Total 3,213,646 3,092, % Total GLA 000 s 3Q Q 2016 % Variation Industrial 3,604,767 3,566, % Retail 2,944,014 2,916, % Office 830, , % Total 7,378,844 7,283, % Occupancy % 3Q Q 2016 % Variation Industrial 95.6% 96.3% -0.8% Retail 93.9% 93.9% 0.0% Office 91.1% 91.4% -0.2% Total 94.4% 94.8% -0.4% $/m² 3Q Q 2016 % Variation Industrial % Retail % Office % Total % Summary Industrial Classification 000 s 3Q Q 2016 % Variation Monthly revenue 265, , % Quarterly revenue 795, , % Total GLA 3,604,767 3,566, % Occupied GLA 3,445,420 3,435, % % Occupancy 95.6% 96.3% -0.8% $/m² % Summary Retail Classification 000 s 3Q Q 2016 % Variation Monthly revenue 560, , % Quarterly revenue 1,680,984 1,581, % Total GLA 2,944,014 2,916, % Occupied GLA 2,764,655 2,738, % % Occupancy 93.9% 93.9% 0.0% $/m² % Summary Office Classification 000 s 3Q Q 2016 % Variation Monthly revenue 245, , % Quarterly revenue 737, , % Total GLA 830, , % Occupied GLA 756, , % % Occupancy 91.1% 91.4% -0.2% $/m² % TOTAL 000 s 3Q Q 2016 % Variation Monthly revenue 1,071,215 1,030, % Quarterly revenue 3,213,646 3,092, % Total GLA 7,378,844 7,283, % Occupied GLA 6,966,483 6,905, % % Occupancy 94.4% 94.8% -0.4% $/m² % 9

10 The industrial segment reported revenues of Ps million, representing a 2.9% increase from the same year-ago quarter. Excluding the effect of the foreign exchange appreciation from Ps to Ps per US Dollar, this segment s growth would have been ~14.6%. In terms of revenues/sqm/month, this segment increased by 2.6%. The retail segment recorded revenues of Ps. 1,681.0 million, a 6.3% increment from the same year-ago quarter. Excluding the effect of the foreign exchange appreciation from Ps to Ps per US Dollar, this segment s growth would have been ~7.3%. In terms of revenues/sqm/month, this segment grew 5.3%. The office segment reported revenues of Ps million, decreasing 0.2% from the same year-ago quarter. Excluding the effect of the foreign exchange appreciation from Ps to Ps per US Dollar, this segment s growth would have been ~21.4%. In terms of revenues/sqm/month this segment decreased 3.5%. 10

11 Occupancy Rate by Portfolio Portfolio Properties (1) Total GLA (2) Occupied GLA (2) Occupancy INICIAL , ,741 96% GRIS 1 77,393 77, % BLANCO 1 44,871 39,287 88% AZUL , ,193 99% ROJO , ,952 97% SENDERO VILLAHERMOSA 1 21,853 18,725 86% VERDE 1 117, , % MORADO , ,391 90% TORRE MAYOR 1 83,971 83, % PACE 2 43,593 43, % G ,916,773 1,807,103 94% INDIVIDUALES INDUSTRIALES (3) 2 42,000 42, % UNIVERSIDAD AUTÓNOMA DE GDL 1 163, , % INDIVIDUALES (3) 8 150, ,915 93% VERMONT , ,423 92% APOLO , ,420 95% P ,636 77,922 85% MAINE 6 152, ,775 93% CALIFORNIA , ,818 81% ESPACIO AGUASCALIENTES. 1 22,510 20,491 91% LA VIGA 1 32,246 32, % R , ,831 94% SAN MATEO 1 5,440 5, % HOTEL CENTRO HISTORICO 1 40,000 39, % SAMARA 1 133, ,426 98% KANSAS , ,514 84% OREGON 3 34,118 33,459 98% INDIANA , , % ALASKA 6 125, ,941 93% TURBO (3) 2 46,813 46, % FRIMAX 1 212, ,522 99% Total 500 7,734,584 7,242, % (1) Number of properties, (2) Excludes GLA under development and includes total GLA from Torre Mayor and Torre Diana (3) For this report the properties of Parque Empresarial Cancun and El Salto are recorded within the Individual Industrial Portfolio; the properties of Torre Diamante, Reforma 155, Artificios 40, Puerta del Hierro, Montes Urales, Torre Diana, Saqqara y Patio Churubusco are recorded under the Individual Portfolio; and, Espacio Tollocan and Park Tower Vallarta will be reported under the Turbo Portfolio going forward. 11

12 Occupancy by Geography (1) Excludes GLA underdevelopment State Occupied GLA (1) RETAIL INDUSTRIAL OFFICE AGUASCALIENTES 28,519 30,843 1,248 BAJA CALIFORNIA 9,025-4,054 BAJA CALIFORNIA SUR 22, CAMPECHE CHIAPAS 31, CHIHUAHUA 103,970 82,086 - CIUDAD DE MEXICO 507,830 44, ,516 COAHUILA 43, ,267 - COLIMA 13, DURANGO 1,163 23,185 - ESTADO DE MEXICO 466,590 2,471,618 61,699 GUANAJUATO 27,761 20,664 - GUERRERO 61, HIDALGO 58, JALISCO 552, ,404 13,937 MICHOACAN 1, MORELOS 23,221 4,627 - NAYARIT 42, NUEVO LEON 206, ,425 28,854 OAXACA 33, PUEBLA 1,050 45, QUERETARO 22, QUINTANA ROO 223,019 18,000 13,704 SAN LUIS POTOSI 9,279 21,182 - SINALOA 12, SONORA 68,000 15,959 5,711 TABASCO 19, TAMAULIPAS 25, ,490 1,437 TLAXCALA 35, VERACRUZ 92,158-5,014 YUCATAN 43,967-3,973 2,789,832 3,668, ,003 12

13 Summary by Subsegment Subsegment GLA Total GLA Occupied % Occupation $/m2/monthly NOI 3T17 (000 m 2 ) 2 ) (000 m 2 ) 2 ) (Ps.) (Ps. 000) 2 Logistics 3, , % ,527.0 Light manufacturing % ,690.7 Fashion mall % ,946.8 Regional center 1, , % ,867.5 Neighborhood center % ,808.8 Stand alone (1) % ,831.0 Office (1) % ,936.8 Total 7, , % $ $ 2,907,608.6 Occupancy per Subsegment (%GLA) 3T17 NOI per Subsegment (% NOI) 3T % 87.6% 95.2% 93.0% Logistics Light manufacturing Fashion mall Regional center 15.8% 12.7% 22.1% 5.1% Logistics Light manufacturing Fashion mall Regional center 92.4% 94.3% Neighborhood center Stand alone Office 6.4% 15.4% Neighborhood center Stand alone Office 90.4% 22.5% (1) All properties in the Rojo Portfolio are classified as Stand Alone, (2) NOI at a property level. 13

14 Information Supplement Operating Properties Segment # Properties GLA Revenues (000 s) Occupancy Stabilization adjustment Quarterly Revenue (000 s) (1) Retail 309 2,975,023 1,824, % 1,824,599 Industrial 106 3,866, , % 813,623 Office (2) , , % 593,671 Total 500 7,734,583 3,201, % 3,231,893 Acquisitions not Included in Current Quarter Segment Investment (Ps.mn) Stabilized NOI (Ps. mn) Industrial 3, Retail 19, ,403.5 Office , ,759.5 (1) Estimates consider a full quarter for all the properties in operation. It also assumes occupancy levels of 95% for all properties with occupancy levels below 90%. (2) Includes dividends of the fiduciary rights for Torre Mayor and Torre Diana, which are part of the office segment. 14

15 Development Portfolio Portfolio Project Segment Final GLA (m 2 ) CapEx to Date Pending CapEx Annualized Base Revenue Annualized Additional Revenue Total Estimated Annual Revenue Delivery (A) (B) (A+B) (1) Date La Viga La Viga Office 102,000 1, Q'17 G-30 Centrumpark (Berol) (2) Office 48,052 1, Q'17 Individual Torre Cuarzo (3) Retail / Office 72,000 3, Q'17 Apolo Tlalpan Retail 95,967 1, Q'17 Turbo Espacio Tollocan Retail 17, Q'17 Individual Midtown Jalisco Retail / Office 105,000 2, , Q'18 G-30 Mariano Escobedo (4) Office 12, Q'18 Total 452, , , , ,538.4 Helios Co-investment Portfolio Project Segment Final GLA (m 2 ) CapEx to Date Pending CapEx Annualized Base Revenue Annualized Additional Revenue Total Estimated Annual Revenue Delivery (A) (B) (A+B) (1) Date Mitikah Mitikah (5) Comercial / Oficinas 337,410 2, , ,992 1,992 2Q'24 Estimated stabilization periods per segment once the property is ready to operate Industrial: 12 months Retail: 18 months Office: 24 months As a result of delays, we have temporarily removed the Delaware project from our development portfolios. (1) Assumes revenues from properties completely stabilized. (2) Historically this property was classified in the Industrial segment due to its location. However, the property corresponds to an office development (3) Includes deferred payment of approximately 46.5 million CBFIs. (4) Excludes value of land. (5) The mixed-use project Mitikah includes the Colorado and Buffalo Portfolios (and excludes the land value). 15

16 Helios Co-investment Helios has contributed Ps. 2,300 million, of the Ps. 3,800 million committed, A total of Ps 2,100 million have been invested in the project, Mitikah will have an approximate GLA of 337,410 m2 to be developed in two stages that are expected to be completed by mid The following financial information is summarized below: 30/09/2017 Current assets $ 1,354,730 Investment properties $ 7,272,317 Current liabilities $ 264,866 Shareholders equity attributed to Fibra UNO $ 6,262,181 Non-controlling participation $ 2,100,000 30/09/2017 Annual Net income attributed to Fibra UNO $ 13,974 Annual Net income attributed to the non-controlling participation $ 5,003 16

17 Credit Profile At the close of the third quarter, FUNO was in full compliance with its public-debt covenants: Metric FUNO Limit Status Loan-to-Value (LTV) (1) 31.7% Lesser or equal to 60% Compliant Secured debt limit 2.5% Lesser or equal to 40% Compliant Debt service coverage ratio 2.23x Greater or equal to 1.5x Compliant Unencumbered assets to unsecured debt 313.9% Greater or equal to 150% Compliant Ps. vs Us. (2) Secured vs Unsecured (2) Fixed Rate vs Floating Rate (2) Us. 41% Ps. 59% Secured 8% Floating Rate 26% Unsecured 92% Fix Rate 74% (1) Considers the value of total assets excluding account receivable and intangibles (2) Includes hedging effect of interest and foreign exchange rates 17

18 Compliance with CNBV Regulation (CNBV) Metric Figures in million pesos Liquid assets (2) 4,902.6 Operating income after distributions 9,474.8 Lines of credit 14,461.1 Subtotal 28,838.6 Debt service 9,032.1 CapEx 2,408.9 Loan-to-Value (LTV) 31.4% Debt service coverage ratio (1) 2.52x FUNO Limit Status Lesser of equal to 60% Greater or equal to 1.0x Compliant Complaint Subtotal 11,441.0 Ps. Us. Fix Rate Floating Rate Secured Unsecured 43.3% 38.6% 71.3% 77.1% 12.4% 3.2% 0.1% 0.1% 0.2% 0.1% 0.2% 1.6% 12.2% 0.4% 3.0% 0.4% 0.4% 0.0% 1.8% 0.0% 10.7% 12.2% 0.4% 3.0% 0.4% 0.4% 0.0% 1.8% 0.0% 4.8% Short Term mths mths mths 49+ mths Short Term mths mths mths 49+ mths Short Term mths mths mths 49+ mths (1) Liquid assets + Operating income + lines of credit / Debt service + Estimated Capex for the following 18 months. (2) Includes cash and cash equivalents, refundable VAT and excludes restricted cash and reserve funds for bank loans. (3) Graphs include the hedging effect of interest and foreign exchange rates. All figures are in million pesos. 18

19 Quarterly distribution Following FUNO s commitment to constantly create value for its CBFI s holders, the Technical Committee approved a quarterly distribution of Ps. 1,718.8 million corresponding to the period starting July 1, 2017 to September 30, This is equal to Ps per CBFI. The 3Q17 distribution was paid in advanced on October 4, Under the Mexican Law, FUNO is obliged to pay at least 95% of its taxable income at least once a year. Below is the detail of the historic distribution payments: Q Q Q Q

20 Financial Information Balance Sheet Figures in thousand pesos Assets Notes 30/09/ /12/2016 Currents assets: Cash and restricted cash 3.- $ 1,983,177 $ 5,554,120 Financial investments 4.- 1,396,965 1,956,101 Lease receivables from clients, net 5.- 1,181, ,594 Other accounts receivable , ,700 Accounts Receivable - Related Parties ,964 80,293 Refundable tax, mainly VAT 1,564,413 2,141,696 Pre-paid expenses 831, ,717 Total current assets 7,868,689 11,673,221 Non-current assets: Investment properties ,030, ,739,278 Investments in affiliates 8.- 4,235,072 5,178,900 Derivative Financial Instruments ,055 Other assets, net 9.- 1,758,948 1,920,523 Total non-current assets 193,025, ,353,756 Total assets $ 200,893,767 $ 192,026,977 20

21 Liabilities and Equity Notes 30/09/ /12/2016 Current liabilities: Borrowings 10.- $ 2,133,055 $ 633,911 Acquisitions accounts payable ,951,222 1,947,373 Accounts payable and accrued expenses 936,347 1,285,024 Deferred revenues 171, ,362 Dues to related parties ,143 93,266 Total current liabilities 7,396,633 4,124,936 Long-term debt ,627,448 64,172,642 Long-term other accounts payable 96, ,530 Derivative Financial Instruments ,283 - Deposits from tenants 853, ,067 Long-term deferred revenues from Leases 196, ,467 Total liabilities 69,931,680 69,383,642 Trustors' capital Trustors' capital ,523,513 95,383,575 Retained earnings 32,734,417 25,524,669 Other comprehensive income (140,330) (103,006) Total trustors' capital 128,117, ,805,238 Non-controlling participation 2,844,487 1,838,097 Total shareholders' equity 130,962, ,643,335 Total liabilities and trustors' capital $ 200,893,767 $ 192,026,977 21

22 Financial Information Income Statement Figures in thousand pesos Notes 30/09/2017 Transactions third quarter of /06/ /09/2016 Transactions second quarter of /06/2016 Property income $ 9,415,067 $ 3,139,940 $ 6,275,127 $ 8,645,456 $ 2,987,422 $ 5,658,034 Maintenance revenues 985, , , , , ,168 Dividends revenues from beneficiary rights 186,424 61, , ,987 39,971 76,016 Administration Fees 130,579 34,591 95,988 56,250 18,750 37,500 10,717,263 3,573,245 7,144,018 9,720,818 3,359,100 6,361,718 Administration fees (548,947) (186,934) (362,013) (506,312) (170,745) (335,567) Operating expenses (703,730) (234,448) (469,282) (605,144) (216,407) (388,737) Maintenance expenses (1,023,880) (347,342) (676,538) (955,651) (314,190) (641,461) Property taxes (249,979) (81,561) (168,418) (240,659) (87,517) (153,142) Insurance (114,135) (38,230) (75,905) (95,528) (32,307) (63,221) (2,640,671) (888,515) (1,752,156) (2,403,294) (821,166) (1,582,128) Operating income 8,076,592 2,684,730 5,391,862 7,317,524 2,537,934 4,779,590 Interest expense (3,581,831) (1,224,867) (2,356,964) (2,743,565) (1,050,463) (1,693,102) Interest revenue 374, , , , ,924 64,467 Income after financial expenses 4,869,538 1,572,420 3,297,118 4,741,350 1,590,395 3,150,955 Foreign exchange gain, Net 3,045,142 (89,190) 3,134,332 (2,813,927) (1,197,177) (1,616,750) Valuation effect on financial instruments (342,080) (292,141) (49,939) ,294 (193,352) Fair value adjustment to investment properties and affiliates 3,427, ,511 2,431,845 5,080, ,677 4,171,992 Administrative platform amortization (146,238) (48,746) (97,492) (146,238) (48,746) (97,492) Amortization of bank and other financial charges (105,466) (40,491) (64,975) (98,246) (38,241) (60,005) Other expenses (6,304) - (6,304) Executive compensation 13.- (116,155) (26,462) (89,693) (328,988) (88,362) (240,626) Consolidated net income $ 10,625,793 $ 2,070,901 $ 8,554,892 $ 6,435,562 $ 1,320,840 $ 5,114,722 Controlling participation $ 10,595,901 $ 2,060,896 $ 8,535,005 $ 5,894,406 $ 1,432,610 $ 4,461,796 Non-controlling participation 29,892 10,005 19, ,156 (111,770) 652,926 $ 10,625,793 $ 2,070,901 $ 8,554,892 $ 6,435,562 $ 1,320,840 $ 5,114,722 22

23 Financial Information Cash Flow Figures in thousand pesos 30/09/ /09/2016 Operating activities: Consolidated net income $ 10,625,793 $ 6,435,562 Adjustments to non cash flow generated items: Fair value adjustment to investment properties (3,427,356) (5,080,669) Unrealized foreign exchange loss (gain) (2,908,012) 2,751,915 Administrative platform amortization 251, ,012 Executive compensation 116, ,988 Interest income (374,777) (167,391) Interest expense 3,581,831 2,743,565 Valuation effect on financial instruments 342,080 (942) Total 8,207,418 7,351,040 Changes to working capital: (Increase) decrease on: Lease receivable (191,277) (314,908) Other accounts payable (64,764) 4,936 Accounts Receivable - Related Parties 19,329 - Refundable tax, mainly VAT 577,283 1,774,459 Pre-paid expenses (400,791) (96,895) (Decrease) increase in: Trade accounts payable (348,677) 955,648 Dues to related parties 110,877 38,298 Long-term other accounts payable (29,439) 90,375 Deferred revenues 67,057 (26,603) Deposits from tenants 28,138 90,765 Net cash flow from operating activities 7,975,154 9,867,115 Invesment activities: Investment in projects development and expenses related to acquisitions (4,767,394) (4,369,800) Advanced payments for the acquisition of investment properties (256,898) (366,000) Acquisition of investment properties (913,758) (2,529,171) Investments in securities 559,136 (227,837) Investment in affliliates - 87,180 Interest income 319, ,437 Net cash flow from investment activities (5,059,221) (7,272,191) 23

24 Financing activities: Payments and anticipated prepayment of loans (574,975) (12,435,355) Loan financing 1,910,000 16,647,497 Equity contribution 1,000,000 - Distributions to trustors (5,048,692) (4,783,910) Interest paid (3,773,209) (2,864,484) Net cash flow from financing activities (6,486,876) (3,436,252) Net cash flow: Net (decrease) increase in cash and restricted cash (3,570,943) (841,328) Cash and restricted cash at the beginning of the period 5,554,120 5,995,918 Cash and restricted cash at the end of the period $ 1,983,177 $ 5,154,590 24

25 Irrevocable Trust No. F/1401 (Deutsche Bank Mexico, S. A. Multiple Banking Institution, Fiduciary Division) and Subsidiaries Consolidated condensed interim financial statements as of September 30, 2017 and December 31, 2016 and for the nine and three months periods ended September 30, 2017 and 2016

26 Irrevocable Trust No. F/1401 (Deutsche Bank Mexico, S. A. Multiple Banking Institution, Fiduciary Division) and Subsidiaries Consolidated condensed interim financial statements as of September 30, 2017 and December 31, 2016 and for the nine and three months periods ended September 30, 2017 and 2016 Content Page Interim Condensed Consolidated Balance Sheet... 2 Interim Condensed Consolidated Income Statement... 3 Interim Condensed Consolidated Statement of Changes in Trustors' Equity... 4 Interim Condensed Consolidated Statement of Cash Flow... 5 Notes to the Interim Condensed Consolidated Financial Statements... 6

27 Interim Condensed Consolidated Balance Sheet As of September 30, 2017 and December 31, 2016 (Figures in thousand pesos) Assets Notes 30/09/ /12/2016 Currents assets: Cash and restricted cash 3.- $ 1,983,177 $ 5,554,120 Financial investments 4.- 1,396,965 1,956,101 Lease receivables from clients, net 5.- 1,181, ,594 Other accounts receivable , ,700 Accounts Receivable - Related Parties ,964 80,293 Refundable tax, mainly VAT 1,564,413 2,141,696 Pre-paid expenses 831, ,717 Total current assets 7,868,689 11,673,221 Non-current assets: Investment properties ,030, ,739,278 Investments in affiliates 8.- 4,235,072 5,178,900 Derivative Financial Instruments ,055 Other assets, net 9.- 1,758,948 1,920,523 Total non-current assets 193,025, ,353,756 Total assets $ 200,893,767 $ 192,026,977 Liabilities and Equity Notes 30/09/ /12/2016 Current liabilities: Borrowings 10.- $ 2,133,055 $ 633,911 Accounts payable for acquisition of Investment Properties 3,951,222 1,947,373 Accounts payable and accrued expenses ,347 1,285,024 Deferred revenues 171, ,362 Dues to related parties ,143 93,266 Total current liabilities 7,396,633 4,124,936 Long-term debt ,627,448 64,172,642 Long-term other accounts payable 96, ,530 Derivative Financial Instruments ,283 - Deposits from tenants 853, ,067 Long-term deferred revenues from Leases 196, ,467 Total liabilities 69,931,680 69,383,642 Trustors' capital Trustors' capital ,523,513 95,383,575 Retained earnings 32,734,417 25,524,669 Other comprehensive income (140,330) (103,006) Total trustors' capital 128,117, ,805,238 Non-controlling participation 2,844,487 1,838,097 Total shareholders' equity 130,962, ,643,335 Total liabilities and trustors' capital $ 200,893,767 $ 192,026,977 The attached notes are part of the consolidated condensed financial statements intermediates. 2

28 Interim Condensed Consolidated Income Statement For the 9- and 3-month periods ending September 30, 2017 and 2016 (Figures in thousand pesos) Transactions Transactions Notes 30/09/2017 Third Quarter 30/06/ /09/2016 Third Quarter 30/06/ Property income 16.- $ 9,415,067 $ 3,139,940 $ 6,275,127 $ 8,645,456 $ 2,987,422 $ 5,658,034 Maintenance revenues 985, , , , , ,168 Dividends revenues from beneficiary rights 186,424 61, , ,987 39,971 76,016 Administration fees 130,579 34,591 95,988 56,250 18,750 37,500 10,717,263 3,573,245 7,144,018 9,720,818 3,359,100 6,361,718 Management fees (548,947) (186,934) (362,013) (506,312) (170,745) (335,567) Operating expenses (703,730) (234,448) (469,282) (605,144) (216,407) (388,737) Maintenance expenses (1,023,880) (347,342) (676,538) (955,651) (314,190) (641,461) Property taxes (249,979) (81,561) (168,418) (240,659) (87,517) (153,142) Insurance (114,135) (38,230) (75,905) (95,528) (32,307) (63,221) (2,640,671) (888,515) (1,752,156) (2,403,294) (821,166) (1,582,128) Operating income 8,076,592 2,684,730 5,391,862 7,317,524 2,537,934 4,779,590 Interest expense (3,581,831) (1,224,867) (2,356,964) (2,743,565) (1,050,463) (1,693,102) Interest revenue 374, , , , ,924 64,467 Income after financial expenses 4,869,538 1,572,420 3,297,118 4,741,350 1,590,395 3,150,955 Foreign exchange gain, Net 3,045,142 (89,190) 3,134,332 (2,813,927) (1,197,177) (1,616,750) Valuation effect on financial instruments (342,080) (292,141) (49,939) ,294 (193,352) Fair value adjustment to investment properties and affiliates 3,427, ,511 2,431,845 5,080, ,677 4,171,992 Administrative platform amortization (146,238) (48,746) (97,492) (146,238) (48,746) (97,492) Amortization of bank and other financial charges (105,466) (40,491) (64,975) (98,246) (38,241) (60,005) Other expenses (6,304) - (6,304) Executive compensation 13.- (116,155) (26,462) (89,693) (328,988) (88,362) (240,626) Consolidated net income $ 10,625,793 $ 2,070,901 $ 8,554,892 $ 6,435,562 $ 1,320,840 $ 5,114,722 Controlling participation $ 10,595,901 $ 2,060,896 $ 8,535,005 $ 5,894,406 $ 1,432,610 $ 4,461,796 Non-controlling participation 29,892 10,005 19, ,156 (111,770) 652,926 $ 10,625,793 $ 2,070,901 $ 8,554,892 $ 6,435,562 $ 1,320,840 $ 5,114,722 The attached notes are part of the consolidated condensed financial statements intermediates. 3

29 Interim Condensed Consolidated Statement of Changes in Trustors' Equity For the 9- and 3-month periods ending September 30, 2017 and 2016 (Figures in thousand pesos) Notes Equity Retained earnings Financial Derivatives Reserve from Cash Flow Hedging Total controlling participation Total noncontrolling participation Total Balance as of January 1, 2016 $ 97,742,581 $ 15,615,797 $ - $ 113,358,378 $ - $ 113,358,378 Equity contribution ,381, ,381, ,515 2,545,447 Distributions to trustors 15.- (2,082,790) (2,701,120) - (4,783,910) - (4,783,910) Consolidated net income - 5,894,406-5,894, ,156 6,435,562 Balance as of September 30, 2016 $ 98,041,723 $ 18,809,083 $ - $ 116,850,806 $ 704,671 $ 117,555,477 Balance as of December 31, 2016 $ 95,383,575 $ 25,524,669 $ (103,006) $ 120,805,238 $ 1,838,097 $ 122,643,335 Equity contribution ,802, ,802, ,498 2,778,975 Distributions to trustors 15.- (1,662,539) (3,386,153) - (5,048,692) - (5,048,692) Consolidated net income - 10,595,901-10,595,901 29,892 10,625,793 Other comprehensive income, net income tax - - (37,324) (37,324) - (37,324) Balances as of September 30, 2017 $ 95,523,513 $ 32,734,417 $ (140,330) $ 128,117,600 $ 2,844,487 $ 130,962,087 The attached notes are part of the consolidated condensed financial statements intermediates. 4

30 Interim Condensed Consolidated Cash Flow Statement For the 9- and 3-month periods ending September 30, 2017 and 2016 (Figures in thousand pesos) 30/09/ /09/2016 Operating activities: Consolidated net income $ 10,625,793 $ 6,435,562 Adjustments to non cash flow generated items: Fair value adjustment to investment properties (3,427,356) (5,080,669) Unrealized foreign exchange loss (gain) (2,908,012) 2,751,915 Administrative platform amortization 251, ,012 Executive compensation 116, ,988 Interest income (374,777) (167,391) Interest expense 3,581,831 2,743,565 Valuation effect on financial instruments 342,080 (942) Total 8,207,418 7,351,040 Changes to working capital: (Increase) decrease on: Lease receivable (191,277) (314,908) Other accounts payable (64,764) 4,936 Accounts Receivable - Related Parties 19,329 - Refundable tax, mainly VAT 577,283 1,774,459 Pre-paid expenses (400,791) (96,895) (Decrease) increase in: Trade accounts payable (348,677) 955,648 Dues to related parties 110,877 38,298 Long-term other accounts payable (29,439) 90,375 Deferred revenues 67,057 (26,603) Deposits from tenants 28,138 90,765 Net cash flow from operating activities 7,975,154 9,867,115 Invesment activities: Investment in projects development and expenses related to acquisitions (4,767,394) (4,369,800) Advanced payments for the acquisition of investment properties (256,898) (366,000) Acquisition of investment properties (913,758) (2,529,171) Investments in securities 559,136 (227,837) Investment in affliliates - 87,180 Interest income 319, ,437 Net cash flow from investment activities (5,059,221) (7,272,191) Financing activities: Payments and anticipated prepayment of loans (574,975) (12,435,355) Loan financing 1,910,000 16,647,497 Equity contribution 1,000,000 - Distributions to trustors (5,048,692) (4,783,910) Interest paid (3,773,209) (2,864,484) Net cash flow from financing activities (6,486,876) (3,436,252) Net cash flow: Net (decrease) increase in cash and restricted cash (3,570,943) (841,328) Cash and restricted cash at the beginning of the period 5,554,120 5,995,918 Cash and restricted cash at the end of the period $ 1,983,177 $ 5,154,590 The attached notes are part of the consolidated condensed financial statements. 5

31 Notes to the interim condensed consolidated financial statements For the nine and three months period ended September 30, 2017 and for the year Ended on December 31, 2016 (Figures in thousand pesos) 1.- General information, acquisitions and relevant events a) General information The Trust F/1401 of Deutsche Bank México, SA ("Fibra UNO") was established as a real estate trust on January 12, 2011 by Fibra UNO Administración, SA de CV, (the "Fideicomitente") and Deutsche Bank México, SA, Multiple Banking Institution, Fiduciary Division (the "Trustee"). Fibra UNO began operations in March 2011 and was established primarily to acquire and own real estate properties in order to lease and develop commercial, industrial and mixed-use properties, as well as office and land buildings in the Mexican market. Fibra UNO, as an investment trust in real estate ("FIBRA"), qualifies to be treated as a transfer entity in Mexico for purposes of the Income Tax Law. Therefore, all the net tax revenues generated by the operations of Fibra UNO are attributed to the holders of their Certificados Bursátiles Fiduciarios Inmobiliarios ("CBFIs") for fiscal purposes and therefore Fibra UNO is not subject to Income Tax in Mexico. In order to maintain the status of FIBRA, the Mexican Tax Administration Service ("SAT") has established, in Articles 187 and 188 of the Income Tax Law, that Fibra UNO must distribute at least 95% of its income annually To the holders of the CBFIs issued by him. For the development of its operation, Fibra UNO has entered into the following contracts: i. An advisory agreement with Fibra UNO Administración, S. C. ("Fibra UNO Administration or the Adviser") (related party) so that the adviser assists Fibra UNO in the formulation and implementation of its investments and financial strategies; ii. A management contract for the properties with F1 Management, SC ("F1 Management"), Operator CVC, SC ("CVC Operator") and F1 Controller of Assets, To day operation of Fibra UNO; iii. A service contract with F2 Services, S. C. ("F2 Services") (related party) - to perform certain billing and collection services on behalf of Fibra UNO, subject to its supervision and monitoring; iv. An advisory, property management and service contract with Jumbo Administración, S. A. P. I. de C. V. ("Jumbo Administration") (related party) with characteristics similar to those mentioned above, focused on certain properties; v. A property management contract with Finsa Holding, S.A. de C. V. - to manage day to day portfolio operation ("Vermont"); vi. A property management contract with Hines Interest, S.A. de C. V. - to manage day to day portfolio operation ("Maine"); vii. A management contract with Consultora Centro Histórico, S.A. de C. V. - to administer day by day the operation of the building called Hotel Centro Históric; viii. A management contract with Operadora Galgua, S.A. de C. V.- to manage day-to-day operation of the Galerias Guadalajara property; ix. A service contract between F1 Administration, SC (F1 Administration - subsidiary company) and Banco Invex, SA, Multiple Banking Institution, Invex Grupo Financiero in its character of the F / 2353 Trust (F / 2353 Trust) to administer day by day the Operation of the F / 2353 Trust, and x. A service contract with MTK Developers, S.A. Of C.V. (Indirect subsidiary) for the construction of the Mitikah project. The fiscal address of Fibra UNO is located in the street of Bosques de Duraznos No. 127, Piso 11, Oficina 1-A, Col. Bosques de las Lomas, Mexico City. 6

32 1) Relevant events of the second quarter i. On September 25, 2017, Fibra UNO celebrated a tenants meeting in which was approved for US $1.5 billion CBFIs for capital and $55 billion pesos of debt. Additionally, a Capital Increase Offering by 365 million CBFIs, plus an over-allotment option of 15%, for a maximum total offering of up to million CBFIs, which will be the first issue under the Frequent Issuer Program approved. ii. On July 27, 2017, Fibra UNO had an unsecured credit line, which was contracted with Banco Santander for an amount of $ 500 million pesos at a TIIE rate plus 1.5%, maturing on January 23, Bases of presentation a) Bases of presentation The interim condensed consolidated financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting". Fibra UNO applied the same accounting policies in the interim information and in the last annual financial statements. The Fibra UNO s Management considers that all of the ordinary and recurring adjustments necessary to submit appropriately the condensed interim consolidated financial statements were included. The results of the nine and three-month periods are not necessarily indicative of the results at the end of the year. Certain information and disclosures normally included in the annual financial statements prepared in accordance with International Financial Reporting Standards (IFRS) have been condensed or omitted in accordance with the Interim Financial Reporting Standard. These consolidated condensed interim financial statements should be read in conjunction with the consolidated financial statements of Fibra UNO and their respective disclosures for the years ended December 31, 2016 and 2015 prepared in accordance with IFRS. The results of the period do not necessarily indicate the results of the year. b) Seasonality The Fibra UNO s Management does not consider the business to be subject to material seasonal fluctuations. c) Valuation of investment properties at interim dates At the close of each year, Fibra UNO hires independent expert professionals to value the investment properties according to the discounted flow technique. In interim condensed consolidated information, Management applies global factors to the value of the previous fiscal year's closing. Such factors mainly refer to inflation and the Mexican peso's exchange rate against the US dollar. Consequently, there is no detailed valuation in the attached interim information. d) Details of controlled subsidiaries that have a significant non-controlling interest The following table shows the details of subsidiaries controlled by Fibra UNO that have material non-controlling interests: 7

33 Name of subsidiary Kind Proportion of shareholding and voting rights of noncontrolling interest Profit (loss) attributed to noncontrolling interest Non-controlling interest 30/09/ /12/ /09/ /12/ /09/ /12/2016 Fid. /1127 Torre Latino (i) Office 22.53% 22.53% $ 24,889 $ 543,761 $ 744,487 $ 712,578 Fid./2584 Mitikah (ii) Mixed 35.80% 23.11% 5,003 25,519 2,100,000 1,125,519 Total $ 29,892 $ 569,280 $2,844,487 $1,838,097 i. Starting in January 1, 2016 and derived from the second amendment agreement to Trust 1127/2010 (Torre Latino), in which Ecocinemas, S.A. Of C.V. (Ecocinemas) as "Trustor A" and Fibra UNO as "Trustor B", will have the right to receive 22.53% and 77.47%, respectively, of the net proceeds of lease income and the eventual proceeds of the sale of Torre Latino; Fibra UNO recorded in its consolidated financial statements the minority interest corresponding to the 22.53% that represents the participation that Ecocinemas has over the equity of Torre Latino. ii. On June 27, 2016, Trust Agreement No was entered into, between Fibra UNO as "Trustor A", with Trust being associated with this Trust Fund 2353 as "Trustor B" and as Trustee, Banco Actinver, SA Multiple Banking Institution, Grupo Financiero Actinver. The purpose of this Trust is to develop the mixed-use project called "Mitikah", through the commitment of Fibra UNO to contribute to the assets of Trust 2584 the "Buffalo" and "Colorado" portfolios, and the commitment by Trust 2353 To contribute in cash the necessary resources for the realization of the project. The proceeds of this co-investment, whether for income derived from net income, reimbursement, partial or total divestment of the assets, may be distributed by the Trustee according to the times fixed by the Administrator. On December 22, 2016, Fibra UNO made the contribution of the "Buffalo" portfolio to the assets of Trust 2584, for $3,660 million pesos, for the development of the Mitikah project. On March 31, 2017, Fibra UNO made the contribution of the portfolio Colorado, also known as Centro Bancomer, to the equity of Trust 2584, for $2,517 million pesos, for the development of the project Mitikah. Fibra UNO maintains control over Trust 2584, so it consolidates the figures of this Trust to its own, for that reason the contributions of the Buffalo and Colorado portfolio to Trust 2584 are shown in the heading Investment Properties in the Condensed Consolidated Balance Sheet. A summary of the financial information of each of the subsidiaries of Fibra UNO that has a significant non-controlling interest is detailed below. The summary of the financial information presented below represents the amounts before intercompany eliminations. 8

34 Trust /09/ /12/2016 Current Assets $ 78,511 $ 37,307 Investment Properties $ 3,235,311 $ 3,160,323 Liabilities $ 41,217 $ 11,994 Equity attributable to Fibra UNO $ 2,528,118 $ 2,473,058 Non-controlling shareholding $ 744,487 $ 712,578 30/09/ /12/2016 Profit of the year $ 110,470 $ 1,869,736 Profit of the year attributable to the noncontrolling shareholding $ 24,889 $ 543,761 Trust /09/ /12/2016 Current Assets $ 1,354,730 $ 619,002 Investment Properties $ 7,272,317 $ 4,542,658 Liabilities $ 264,866 $ 401,035 Equity attributable to Fibra UNO $ 6,262,181 $ 3,660,445 Non-controlling shareholding $ 2,100,000 $ 1,125,519 30/09/ /12/2016 Profit of the year $ 13,974 $ 84,905 Profit of the year attributable to the noncontrolling shareholding $ 5,003 $ 25,519 e) Adoption of new and revised International Financial Reporting Standards a. New IFRS Amendments to IAS 12 Taxes on income (1) Amendments to IAS 7 Cash flow statements (1) Amendments to IFRS 2 Classification and measurement of share-based payments (1) (1) Effective for annual fiscal years beginning on or after January 1, 2017, allowing early application. 9

35 b. New and revised IFRSs issued not in force to date Fibra UNO has not applied the following new and revised IFRSs that have been issued but have not yet come into force: IFRS 9 Financial Instruments (2) IFRS 15 Income from Contracts with Customers (2) IFRS 16 Leases (3) (2) Effective for annual fiscal years beginning on or after 1 January 2018, allowing early application. (3) Effective for annual fiscal years beginning on or after 1 January 2019, allowing for early application. The Fibra UNO Management is in the process of evaluating, quantifying and determining the effects of the application of these new Standards. 3.- Cash, cash equivalent and restricted cash 30/09/ /12/2016 Cash, cash equivalent and bank deposits $ 1,941,252 $ 5,543,788 Restricted cash: Restricted cash and reserve funds for bank loans 41,925 10,332 Total cash and cash equivalents $ 1,983,177 $ 5,554, Financial Investments /09/ /12/2016 Trading investments- government securities $ 1,396,965 $ 1,956, Lease receivables and others /09/ /12/2016 Lease receivables $ 1,346,650 $ 1,084,690 Allowance for doubtful accounts (164,779) (94,096) 6.- Other accounts receivable $ 1,181,871 $ 990,594 30/09/ /12/2016 Security Deposit $ 622,898 $ 366,000 Administration fee 184, ,333 Other accounts receivable 42,164 40,367 $ 849,791 $ 519, Investment properties Reasonable value: 30/09/ /12/2016 Investment completed $ 161,329,340 $ 158,645,638 Investment in development 21,780,767 10,283,446 Land reserves 1,350,763 1,350,763 Rights over properties with operating leases 2,570,105 2,459,431 $ 187,030,975 $ 172,739,278 10

36 Investment Properties Type Properties 30/09/ /12/2016 Balance at the beginning of the period $ 172,739,278 $ 151,822,122 Acqusitions: Saqqara Offices 1 702,240 - Escatto Industrial 1 80,000 - Fashion Mall Tuxtla Retail 1 2,690,000 - Doña Rosa Industrial 1 2,108,033 - Midtown Jalisco Development 1-440,000 Tower Vallarta Retail 1-1,477,096 Torre Cuarzo Development 1-2,898,091 Espacio Tollocan Development 1-229,295 Puerta de Hierro Retail 1-700,000 El Salto Jalisco Industrial 1-180,000 Additional investment properties and acquisition costs 4,767,394 5,878,590 Fair value adjustments to investment properties 3,944,030 9,114,084 Balance at the end of the period $ 187,030,975 $ 172,739, Investments in Affiliates % ownership 30/09/ /12/2016 Torre Mayor 49% $ 2,740,006 $ 2,999,348 Torre Diana 50% 1,495,066 2,179,552 $ 4,235,072 $ 5,178,900 Fibra UNO records these investments based on the equity method, as established in IFRS, given the nature of the investment. 9.- Other assets, Net 30/09/ /12/2016 Administrative platform (1) $ 2,043,674 $ 2,043,674 Implementation advisory 440, ,800 Advisory for the structuring of the real estate 30,000 30,000 Accumulated amortization (755,526) (593,951) $ 1,758,948 $ 1,920, (1) The administrative platform acquired includes personnel, technology and processes. 11

37 10.- Loans Type Institution Summary of loans balance as of September 30, 2017 Currency Interest rate Maturity Balance MXN Balance in thousand USD Mortgage Finsa Bancomext US 84.7 millones USD 4.89% nov-20 $ - 70,193 Mortgage HSBC Samara MXN TIIE + 2% sep-23 2,862,857 - Unsecured Actinver MXN TIIE + 1.8% jun ,000 - Unsecured Santander MXN TIIE % dic-17 1,000,000 - Unsecured Santander MXN TIIE + 1.5% ene ,000 - Mortgage Metlife, Mexico MXN % dic ,315 - Mortgage Metlife, Mexico MXN % dic ,582 - Bond National (FUNO 13-2) MXN 8.40% dic-23 3,120,900 - Bond National (FUNO 13) MXN TIIE % jun-19 6,850,059 - Bond National (FUNO 15) MXN 6.99% jul-25 7,500,000 - Bond National (FUNO 13U) UDIS 5.09% nov-28 2,476,945 - Bond National (FUNO 16U) UDIS 4.60% abr-27 2,664,175 - Bond National (FUNO 16) MXN TIIE % abr ,750 - Bond International USD 5.25% dic ,000 Bond International USD 6.95% ene ,000 Bond International USD 5.25% ene ,000 Balance as of June 30, 2017 $ 29,057,583 1,870,193 Foreign exchange rate as of June 30, Dollar balance in pesos equivalent $ 34,033,584 Balance as of June 30, 2017 in pesos equivalent 63,091,167 Short-tem loans (2,133,055) Long-term loans 60,958,112 Transaction costs (522,842) Debt's fair value 192,178 $ 60,627,448 Type Institution Summary of loans balance as of December 31, 2016 Currency Interest rate Maturity Balance MXN Balance in thousand USD Mortgage Finsa Bancomext US 84.7 millones USD 4.89% nov-20 $ - 73,330 Mortgage HSBC Samara MXN TIIE + 2% sep-23 2,965,714 - Unsecured Actinver MXN TIIE + 1.8% jul ,000 - Bond National (FUNO 13-2) MXN 8.40% dec-23 3,120,900 - Bond National (FUNO 13) MXN TIIE % jun-19 6,850,059 - Bond National (FUNO 15) MXN 6.99% jul-25 7,500,000 - Bond National (FUNO 13U) UDIS 5.09% nov-28 2,368,119 - Bond National (FUNO 16U) UDIS 4.60% apr-27 2,547,123 - Bond National (FUNO 16) MXN TIIE % apr ,750 - Bond International USD 5.25% dec ,000 Bond International USD 6.95% jan ,000 Bond International USD 5.25% jan ,000 Balance as of December 31, 2016 $ 26,645,665 1,873,330 Foreign exchange rate as of December 31, Dollar balance in pesos equivalent $ 38,710,482 Balance as of December 31, 2016 in pesos equivalent 65,356,147 Short-tem loans (633,911) Long-term loans 64,722,236 Transaction costs (581,572) Unearned interests at fair value 31,978 $ 64,172,642 12

38 The financial debt establishes certain conditions of what can and cannot be done, which have been met as of as of September 30, 2017 and December 31, Fibra UNO is obligated to pay, on or before the expiration date of the property tax and other contributions. Maintain in good operating condition all its useful assets and assets that are necessary for the proper operation of its business, except for normal wear and tear. Maintain with insurers of recognized prestige the insurance on their insurable assets, in amounts against risks accustomed in the real estate industry and for sufficient sums insured to repair or repair the damages. Do not reduce the debt service coverage ratio (Net Operating Income -NOI-) divided by the Debt Service) less than Long Term Derivatives In order to limit the currency risk arising from the bond issued in US dollars maturing in 2026, Fibra UNO has contracted nine currency swaps for US $ 450 million, of which US $ 100 million covers only principal and US $ 350 million cover principal and interest. In order to limit the interest rate risk arising from the mortgage credit contracted with HSBC, Fibra UNO contracted two interest rate SWAPs for a total of $2,942 million pesos, which cover interest. In addition, Fibra UNO performed a reciprocal transaction of purchase and sale of interest rate options (COLLAR) for hedging purposes for a reference amount of $1,889.5 million pesos. Fibra UNO would pay to the counterpart if the TIIE rate is lower than 4.5% and the counterparty would pay to Fibra UNO if the TIIE is higher than 8.5%. As of september 30, 2017, the position of the Fibra UNO derivative financial instruments is comprised of nine currency SWAPS and two interest rate SWAPS shown in the Condensed Consolidated Balance Sheet into the Financial Derivative Instruments item as noncurrent liability for $762.3 million pesos and a Collar that is shown in the item of derivative financial instruments as noncurrent assets of $83. At December 31, 2016, the position of Fibra UNO's derivative financial instruments is comprised of six SWAPS and a Collar that are shown in the Condensed Consolidated Balance Sheet in the Financial Derivative Instruments item as noncurrent assets for $515 million pesos. The characteristics of the SWAPS used to hedge the aforementioned risks and their fair value at September 30, 2017 and December 31, 2016 are as follows: Notional Notional FUNO Fair value MXN FX FUNO PAYS Initial date Final date No. thousand USD thousand MXN RECEIVES as of 30/09/ , , TIIE % 5.25% USD 17/06/ /01/2026 (53,632) 2 50, , TIIE % - 17/06/ /01/2026 (47,191) 3 50, , TIIE % 5.25% USD 28/06/ /01/2026 (81,332) 4 50, , TIIE % - 28/06/ /01/2026 (69,522) 5 60,000 1,113, TIIE % 5.25% USD 30/06/ /01/2026 (49,027) 6 40, , TIIE % 5.25% USD 08/07/ /01/2026 (33,729) 7 25, TIIE % 5.25% USD 30/01/ /01/2026 (64,634) 8 50, TIIE % 5.25% USD 30/01/ /01/2026 (63,437) 9 75, TIIE % 5.25% USD 30/01/ /01/2026 (193,201) 10-2,046,207 - TIIE a 28 días 7.73% 21/02/ /09/2023 (74,105) ,650 - TIIE a 28 días 7.73% 21/02/ /09/2023 (32,473) 450,000 8,600,357 (762,283) 13

39 Fibra UNO assigned SWAPs covering principal and interests (SWAPs No. 1, 3, 5, 6, 7, 8 and 9 of the previous table) as Reasonable Value Hedges and SWAPS covering only principal or only interest rate (SWAPS No. 2, 4, 10 and 11 of the table above) as Cash Flow Hedges. The characteristics of the Collar and its fair value at September 30, 2017 and December 31, 2016 are as follows: Notional Fair value MXN as No. Floor Ceiling Initial date Final date thousand MXN of 30/09/17 7 1,889, % 8.75% 01/07/ /06/ Notional Fair value MXN as No. Floor Ceiling Initial date Final date thousand MXN of 31/03/17 7 1,889, % 8.75% 01/07/ /06/2028 4,578 As of September 30, 2017, the primary position covered by all SWAPS amounts to US $ 450 million, of which US $350 million covers principal and interest and US $100 million covers only principal, and $2,942.9 million pesos only cover interest rates. As of September 30, 2017, the fair value of the SWAPs was determined by an internal model, proving their effectiveness prospectively and retrospectively, which was highly effective between 80% and 125% Accounts payable and Accrued Expenses 30/09/ /12/2016 Interest payable $ 685, ,461 Accrued expenses and other payables 141, ,834 Suppliers 109, , Payments made in CBFIs $ 936,347 $ 1,285, The compensation costs related to this plan as of September 30, 2017 and 2016 were for $116.1 million pesos and $328.9 million pesos, respectively, and as of December 31, 2016 were for $169.9 million pesos. Derived from this program, 4,301,897 CBFIs were put in circulation during the second quarter of