2022 in Figures

Total Revenue

Total revenue amounted to Ps. 1,236 million in 2022, representing a 6.3% increase compared to 2021. Thus was the result of the double digit increase in lease income (+19%), which offset the lower income from administration services (due to a net effect in administration fees), as well as a high comparison basis generated from the land sales in 2021.

It's important to highlight that the increase in lease income was driven by a higher rental income generated by the Company's portfolio of shopping centers.

Cost of property sold and operating expenses

During 2022, Cost of Property Sold and Operating Expenses totaled Ps. 466 million, 12.6% lower than Ps. 533 million in 2021, as there were no land sale costs were recorded during the year vs. 2021 when costs of Ps. 114 million were recorded. In this regard, operating expenses presented an increase of 11.2%, from Ps. 419 million in 2021 to Ps. 466 million in 2022.

Operative Income

During 2022, operating income increased 16.1% or Ps. 195 million, from Ps. 1,209 million in 2021 to Ps. 1,404 million, mainly driven by the combined effect of the increase in lease income (+18.9%, or +Ps. 185 million) and the investment property valuations (+7.5%, or +Ps. 44 million).

Consolidated Net Income

Net income went from Ps. 870 million in 2021 to Ps. 672 million in 2022 (-22.8%), due to the recognition of an exchange loss as an effect of a lower exchange rate on the accounting of the U.S. dollar denominated portion in cash balance. It is important to note that this is a non-cash outflow effect, so the cash balance in U.S. dollars did not suffer significant changes.

NOI

For 2022 NOI (on a cash flow basis) was Ps. 1,073 million, up 13.7% from Ps. 943 million recorded in 2021. This was due to an increased operational normalization of tenants and shopping centers, which contributed to a higher occupancy rate and boosted tenant sales, improving fixed rents, revenue generation in common areas and variable rents.

Operating EBITDA

In 2022, Operating EBITDA amounted to Ps. 820 million, representing an increase of 16.8% in comparison to 2021, due to an increase in lease income.

Debt

Acosta Verde's total debt closed at Ps. 5,532 million in 2022, decreasing 4.0% compared to Ps. 5,766 million registered in 2021. Likewise, net debt went from Ps. 2,052 million in 2021 to Ps. 1,933 million in 2022, decreasing 5.8%.

Cash and equivalents

The balance of cash and equivalents was of Ps. 3,572 million as of year-end 2022, representing a decrease of 3.2% compared to Ps. 3,688 million registered at the end of 2021, this slight decrease was attributed to the accounting of the U.S. dollars denominated portion, given a lower exchange rate (U.S. dollar denominated cash balance did not suffer significant changes).

Accounts Receivable

In line with the recovery of overdue receivables, due to a higher operational normalization by tenants, accounts receivable was Ps. 20 million in 2022, 31.7% less than in 2021.

Tenant Incentive Accruals

During the COVID-19 pandemic, the Company agreed on a concession program with its tenants, with the objective of helping them overcome difficulties in the best possible way. For accounting purposes, the tenant incentive is amortized over the remaining period of the lease. In this regard, as of December 31, 2022, the incentive balance totaled Ps. 71 million, representing a decrease of 38.3% compared to Ps. 114 million in 2021.

Constructions in Progress

The balance of constructions in progress remained at the same level as in 2021, amounting to Ps. 50 million, due to the fact that the construction of Plaza Sendero Ensenada remains on hold until economic conditions allow the Company to ensure compliance with the Company's profitability standards.

Investment properties

The balance of investment properties increased 4.6%, from Ps. 13,703 million as of year-end 2021 to Ps. 14,334 million as of December 31, 2022. This is due to updates in the appraisal values of the shopping centers.

Total liabilities

As of December 31, 2022, total liabilities decreased to Ps. 7,684 million, 2.3% less compared to Ps. 7,863 million in 2021, highlighting that 92.5% of total liabilities correspond to long-term liabilities. This decrease is a result of the reduction registered in bank debt and other derivative financial instruments.

Stockholders' Equity

Stockholders' equity went from Ps. 10,452 million as of year-end 2021, to Ps. 11,098 million as of December 31, 2022 (+6.0%), in line with the profit generated by the Company during the year.