FIBRA Macquarie México Reports Third Quarter 2018 Results

FIBRA Macquarie Mxico (FIBRAMQ) (BMV: FIBRAMQ), owner of one of the largest portfolios of industrial and retail property in Mexico, announced its financial and operating results for the quarter ended September 30, 2018.

THIRD QUARTER 2018 HIGHLIGHTS

  • Increase in AFFO per certificate of 9.9% YoY to a record Ps 0.6281
  • Industrial rental rates increase of 4.0% YoY, and closing occupancy improvement of 206 bps YoY and 187 bps QoQ to 94.4%
  • Declares quarterly distribution of Ps 0.41 per certificate, a 9.3% increase YoY, and a 5.1% increase from second quarter
  • Reduces regulatory debt to total asset ratio to 35.0%, a 210 bps improvement YoY, and a 150 bps improvement from the second quarter
  • Increasing FY18 AFFO guidance to approximately Ps 2.40 per certificate and maintaining FY18 distribution guidance at Ps 1.60 per certificate
  • Increase in size of certificate buy back for cancellation program

MANAGEMENT COMMENTARY

The performance of FIBRA Macquarie in the third quarter was strong and resulted in another record quarterly AFFO per certificate, said Juan Monroy, FIBRA Macquaries chief executive officer. With a stable leasing environment and an experienced team of local real estate professionals, we have been able to drive healthy rental rate growth across our portfolio. Furthermore, with additional clarity around a revised North American trade agreement, we are optimistic that this positive momentum will continue. As reflected in the increase in our quarterly cash distribution per certificate and increased certificate repurchase for cancellation program, we continue to deliver on our commitment to create value for our investors. As we look ahead, we are pleased with the prospect of continued organic growth in our portfolio, and the number and quality of opportunities we see to invest in and expand our portfolio.

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FINANCIAL AND OPERATING RESULTS

Consolidated Portfolio

FIBRAMQs total results were as follows:

TOTAL PORTFOLIO3Q183Q17VarianceYTD 18YTD 17Variance
Net Operating Income (NOI)Ps 824.7mPs 795.5m3.7%Ps 2,483.8mPs 2,426.8m2.3%
EBITDAPs 770.8mPs 739.8m4.2%Ps 2,317.1mPs 2,257.4m2.6%
Funds From Operations (FFO)Ps 555.5mPs 533.5m4.1%Ps1,648.4mPs 1,606.2m2.6%
FFO per certificatePs 0.7106Ps 0.65977.7%Ps 2.0901Ps 1.98185.5%
Adjusted Funds From Operations (AFFO)Ps 490.9mPs 462.1m6.2%Ps 1,446.5mPs 1,396.8m3.6%
AFFO per certificatePs 0.6281Ps 0.57159.9%Ps 1.8341Ps 1.72346.4%
NOI Margin87.6%88.7%-115 bps87.9%87.6%28 bps
AFFO Margin52.1%51.5%55 bps51.2%50.4%34 bps
GLA (000s sqm) EOP3,2043,455-7.3%3,2043,455-7.3%
Occupancy EOP94.3%92.8%153 bps94.3%92.8%153 bps
Average Occupancy93.8%92.7%107 bps92.8%92.2%67 bps
Certificates Outstanding EOP776.3m808.1m-3.9%776.3808.1-3.9%

FIBRAMQs same store portfolio results were as follows:

TOTAL PORTFOLIO – SAME STORE3Q183Q17VarianceYTD 18YTD 17Variance
Net Operating IncomePs. 821.5mPs. 764.2m7.5%Ps. 2,418.8mPs. 2,317.2m4.4%
NOI Margin87.8%89.2%-133 bps88.1%87.6%44 bps
Number of Properties25325302522520
GLA (000s sqf) EOP34,48734,4050.2%34,34234,2600.2%
GLA (000s sqm) EOP3,2043,1960.2%3,1903,1830.2%
Occupancy EOP94.3%93.9%41 bps95%94.1%41 bps
Weighted Avg Lease Term Remaining (years) EOP3.53.52.4%3.53.52.5%

Industrial Portfolio

The following table summarizes the results for FIBRAMQs industrial portfolio:

INDUSTRIAL PORTFOLIO3Q183Q17VarianceYTD 18YTD 17Variance
Net Operating IncomePs 680.3mPs 657.1m3.5%Ps 2,049.6mPs 2016.0m1.7%
NOI Margin91.2%92.3%-110 bps91.4%90.9%53 bps
GLA (000s sqft) EOP29,56932,288-8.4%29,56932,288-8.4%
GLA (000s sqm) EOP2,7473,000-8.4%2,7473,000-8.4%
Occupancy EOP94.4%92.4%206 bps94.4%92.4%206 bps
Average Occupancy93.8%92.2%162 bps92.6%92.1%52 bps
Average monthly rent per leased (US$/sqm) EOP$4.80$4.614.0%$4.80$4.614.0%
Customer retention LTM85%79%574 bps85%79%574 bps
Weighted Avg Lease Term Remaining (years) EOP3.33.16.3%3.33.16.3%

For the three months ended September 30, 2018, FIBRAMQs industrial portfolio delivered net operating income (NOI) of Ps 680.3 million, an increase of 3.5% compared to Ps 657.1 million in the prior comparable period.

The industrial portfolio occupancy rate as of September 30, 2018 was 94.4%, up 206 basis points versus the prior comparable quarter. The increase in occupancy was driven by strong leasing activity and the sale of 35 industrial assets that had occupancy rates that were lower than the portfolio average.

Rental rates increased 4.0% compared to the end of the third quarter in 2017, to a closing weighted average of US$4.80 per leased square meter per month. The rate increase was primarily driven by contractual increases and positive renewal spreads, and the sale of 35 industrial assets with rental rates that were lower than the portfolio average.

FIBRAMQ signed 21 new and renewal leases for 1.5 million square feet of industrial space in the third quarter of 2018. These included seven new leases totaling 446 thousand square feet and 14 renewal leases totaling 1.1 million square feet. Notable new leases in the quarter include automotive parts suppliers in Puebla, Monterrey and Quertaro, and a manufacturer of tools in Ciudad Ju¡rez. Renewal activity was robust and diversified across geographies and customer types, including a global manufacturer of healthcare product packaging, a manufacturer of truck trailers, and a lighting products manufacturer.

For the twelve-month period ending September 30, 2018, FIBRAMQ achieved a retention rate of 85%, showing ongoing improvement versus the prior comparable period.

The same store performance for the industrial portfolio was solid, with occupancy gains of 78 basis points to 94.4%, versus the prior comparable quarter end. For a comprehensive summary of industrial portfolio same store results, please refer to page 11 of FIBRAMQs Third Quarter 2018 Supplementary Information materials at www.fibramacquarie.com/investors/bolsa-mexicana-de-valores-filings.

Retail Portfolio

The following table summarizes the proportionally combined results of operations for FIBRAMQs retail portfolio:

RETAIL PORTFOLIO3Q183Q17VarianceYTD 18YTD 17Variance
Net Operating Income

Ps 144.3m

Ps 138.4m4.3%Ps 434.2mPs 411.5m5.5%
NOI Margin73.7%74.7%-100 bps74.4%74.6%-17 bps
GLA (000s sqm) EOP4574550.3%4574550.3%
Occupancy EOP93.6%95.5%-183 bps93.6%95.5%-183 bps
Average Occupancy94.0%95.4%-140 bps94.4%95.2%-78 bps
Average monthly rent per leased (Ps/sqm) EOPPs 154.85Ps 148.334.4%Ps 154.85Ps 148.334.4%
Customer retention LTM70%70%78 bps70%70%78 bps
Weighted Avg Lease Term Remaining (years) EOP4.54.8-6.1%4.54.8-6.1%

NOI generated by FIBRAMQs retail portfolio in the quarter ended September 30, 2018 increased 4.3% to Ps 144.3 million versus the prior comparable period. Year-over-year growth was driven by a 4.4% increase in average monthly rental rates. During the third quarter, FIBRAMQ signed 43 leases, including 17 new leases and 26 renewals, representing a total of 10.5 thousand square meters. Robust leasing activity during the quarter was offset by the move out of a delinquent tenant, a proactive measure that was taken to recover the space. FIBRAMQ is now actively marketing this 2.9 thousand square meter space.

PORTFOLIO ACTIVITY

Expansions

A key element of FIBRAMQs strategy is the targeted expansion of existing properties on a pre-leased basis along with selective development of new properties in core markets. Year to date through September 30, 2018, FIBRAMQ has deployed or committed to deploy US$10.3 million on expansions, which are forecast to yield an accretive 15.3% NOI yield.

During the third quarter, FIBRAMQ commenced a 47 thousand square foot expansion for a manufacturer of lighting products in Reynosa.

Additionally, FIBRAMQ plans to commence a 3.2 thousand square meter expansion in its retail portfolio at Multiplaza del Valle in Guadalajara. The project includes a pre-leased 1.4 thousand square meter expansion for a leading cinema operator, who is an existing FIBRAMQ customer, and 1.8 thousand square meters for other shops. This expansion is expected to be completed in the second half of 2019.

Asset Recycling

As previously disclosed, FIBRA Macquarie closed on the sale of 35 non-strategic industrial assets for US$80.2 million of cash proceeds in the third quarter. FIBRAMQ received proceeds of US$61.0 million at closing and will receive US$11.2 million and US$8.0 million in January 2020 and July 2020, respectively. Two additional properties with an aggregate value of US$7.2 million remain under contract for sale.

In total, including the two assets under contract for sale, FIBRA Macquarie has sold 44 non-strategic properties at an aggregate 2.2 percent premium to their book value and generated a total of US$117.5 million in sale proceeds. Proceeds received during the quarter have been used in part to repay the US$40.0 million outstanding balance on FIBRA Macquaries revolving credit facility. The remainder has been held as unrestricted cash, expected to be invested in expansions or new development or used to fund certificate buybacks for cancellation or other accretive investments.

These property sales have increased FIBRAMQs focus on core assets and core markets and enhanced FIBRA Macquaries overall portfolio composition and key financial metrics.

BALANCE SHEET

At September 30, 2018, FIBRAMQ had approximately Ps 15.8 billion of debt outstanding. Liquidity has been strengthened during the quarter, with Ps 4.9 billion available on its undrawn revolving credit facility and Ps 728.4 million of unrestricted cash on hand. All of FIBRAMQs drawn debt is fixed rate and had a weighted-average debt tenor remaining of 5.4 years at quarter end.

FIBRAMQs CNBV regulatory debt to total asset ratio was 35.0% and the debt service coverage ratio was 5.8x at September 30, 2018.

CAPITAL ALLOCATION

The following table summarizes FIBRAMQs sources and uses of capital since January 1, 2017. FIBRA Macquarie remains committed to utilizing retained AFFO and proceeds from the sale of non-core assets for property expansions and developments, repurchases of certificates for cancellation, and repayment of debt.

For more detail, please refer to page 8 of the Third Quarter 2018 Supplementary Information materials located at www.fibramacquarie.com/investors/bolsa-mexicana-de-valores-filings.

CAPITAL ALLOCATION SUMMARY (FY2017 AND YTD 2018)Ps equivalentUS$ equivalent
Capital sources
Retained AFFO1,135.8m59.8m
Asset sales1,698.9m89.3m
Surplus cash96.3m5.1m
Capital sources – total2,931.0m154.2m
Capital allocations
Expansions and developments476.4m25.1m
Certificates repurchased for cancellation741.3m39.0m
Debt repayment1,599.1m84.0m
Other114.2m6.0m
Capital allocations – total2,931.0m154.2m

Note: Other includes US$2.1m of income-generating Above-Standard Tenant Improvements. Uses average FX of Ps 19.01 for 2017 and YTD 2018. Certificates repurchased for cancellation include all certificates repurchased up to September 30, 2018.

INCREASE IN SIZE OF CERTIFICATE BUY BACK FOR CANCELLATION PROGRAM

FIBRAMQ is announcing an increase in the size of its certificate buy back for cancellation program. The Board of the Manager and the Technical Committee approved an increased buy back program size of Ps 1.2 billion for the twelve months ending June 25, 2019, to now fully align with the program size and duration approved by certificate holders at the 2018 annual general meeting. This provides for a program size beyond the current program to repurchase up to 5.0% of outstanding certificates.

INCREASED PROGRAM SIZE – OVERVIEW

Number of Certificates

Repurchase amount
Maximum program size for twelve months to June 25, 2019n/aPs 1,200.0m
Less: Repurchases made June 26, 2018 to October 25, 201813.7m(Ps 290.8m)
Maximum program remaining from October 26, 2018 to June 25, 2019n/aPs 909.2m

FIBRA Macquarie expects that repurchases of certificates for cancellation beyond 5.0% of outstanding certificates will be on an opportunistic basis, taking into account competing capital allocation priorities. This includes allocating capital to accretive real estate investments focusing on high quality expansions and development projects, whilst targeting a long term real estate net loan to value ratio of 35.0%, versus the current ratio of 36.6%.

During the third quarter of 2018 and through to October, 2018, FIBRAMQ has repurchased certificates for cancellation to generate highly accretive returns as the certificates trade at a significant discount to NAV.

CERTIFICATES REPURCHASED FOR CANCELLATION

Number of certificates repurchased

Percentage of certificates repurchased

Repurchase amount

Third quarter 20189.8m1.2%Ps 206.8m
Total – since program commencement138.1m4.7%Ps 808.12m

1. Includes total certificates repurchased from June 30, 2017 through to October 25, 2018

DISTRIBUTION

On October 25, 2018, FIBRAMQ declared a cash distribution for the quarter ended September 30, 2018 of Ps 0.41 per certificate, an increase of 9.3% year on year and 5.1% from the prior quarter. The distribution is expected to be paid on November 9, 2018 to holders of record on November 8, 2018. FIBRAMQs certificates will commence trading ex-distribution on November 7, 2018.

2018 GUIDANCE

FIBRA Macquarie is raising its guidance for 2018 AFFO to be approximately Ps 2.40 per certificate, up from between Ps 2.28 and Ps 2.33 per certificate. FIBRAMQ continues to expect to make cash distributions of Ps 1.60 per certificate for 2018, including an expected Ps 0.41 per certificate for the fourth quarter of 2018.

This guidance is based on the following assumptions:

  • Based on the cash-generating capacity of its existing portfolio and an average exchange rate of Ps 18.5 per US dollar for the remainder of the year
  • No new acquisitions or divestments other than the two remaining assets under sale agreement
  • Repurchase for cancellation in 2018 of a minimum of 2.5 million certificates to close 2018 with a maximum of 770.8 million certificates outstanding
  • The payment of cash distributions is subject to the approval of the board of directors of the Manager for cash distributions
  • The continued stable performance of the properties in the portfolio, and market conditions.

Based upon the 2018 full year AFFO guidance, current distribution and the closing certificate price as of October 25, 2018 of Ps 20.30, FIBRA Macquaries current implied AFFO yield is 11.8% and its annualized distribution yield is 8.1%.

WEBCAST AND CONFERENCE CALL

FIBRAMQ will host an earnings conference call and webcast presentation on Friday, October 26, 2018 at 7:30 a.m. CT / 8:30 a.m. ET. The conference call, which will also be audio webcast, can be accessed online at www.fibramacquarie.com or by dialing toll free +1 (877) 304 8957. Callers from outside the United States may dial +1 (973) 638 3235. Please ask for the FIBRA Macquarie Third Quarter 2018 Earnings Call.

An audio replay will be available by dialing +1-855-859-2056 or +1-404-537-3406 for callers outside the United States. The passcode for the replay is 7898395. A webcast archive of the conference call and a copy of FIBRAMQs financial information for the third quarter 2018 will also be available on FIBRAMQs website, www.fibramacquarie.com.

About FIBRA Macquarie

FIBRA Macquarie Mxico (FIBRA Macquarie) (BMV:FIBRAMQ) is a real estate investment trust (fideicomiso de inversi³n en bienes ra­ces), or FIBRA, listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores) targeting industrial, retail and office real estate opportunities in Mexico, with a primary focus on stabilized income-producing properties. FIBRA Macquaries portfolio consists of 236 industrial properties and 17 retail/office properties, located in 20 cities across 16 Mexican states as of July 26, 2018. Nine of the retail/office properties are held through a 50/50 joint venture. For additional information about FIBRA Macquarie, please visit www.fibramacquarie.com.

Cautionary Note Regarding Forward-looking Statements

This release may contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ significantly from these forward-looking statements and we undertake no obligation to update any forward-looking statements.

None of the entities noted in this document is an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities.

THIS RELEASE IS NOT AN OFFER FOR SALE OF SECURITIES IN THE UNITED STATES, AND SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED.

THIS ANNOUNCEMENT IS NOT FOR RELEASE IN ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA.

FIBRA MACQUARIE MEXICO AND ITS CONTROLLED ENTITIES

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT SEPTEMBER 30, 2018 (UNAUDITED) AND DECEMBER 31, 2017 CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)

Sep 30, 2018Dec 31, 2017
$000$000

Current assets
Cash and cash equivalents706,055417,529
Trade and other receivables, net89,73074,539
Other assets33,78673,938
Investment properties held for sale135,201
Total current assets964,772566,006
Non-current assets
Restricted cash50,289
Other receivables408,445
Other assets186,401196,673
Equity-accounted investees1,115,3731,137,652
Goodwill841,614882,758
Investment properties38,712,49041,722,712
Derivative financial instruments141,858111,573
Total non-current assets41,406,18144,101,657
Total assets42,370,95344,667,663
Current liabilities
Trade and other payables501,321630,784
Tenant deposits33,28339,295
Total current liabilities534,604670,079
Non-current liabilities
Tenant deposits293,526313,719
Interest-bearing liabilities14,842,02616,318,550
Deferred income tax6,2776,277
Total non-current liabilities15,141,82916,638,546
Total liabilities15,676,43317,308,625
Net assets26,694,52027,359,038
Equity
Contributed equity17,628,17518,118,973
Retained earnings9,066,3459,240,065
Total equity26,694,52027,359,038

CONDENSED UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2018 AND 2017 CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)

3 months ended9 months ended
Sep 30, 2018Sep 30, 2017Sep 30, 2018Sep 30, 2017
$000$000$000$000
Property related income888,306845,5222,665,6962,619,358
Property related expenses(135,944)(107,718)(364,284)(361,382)
Net property income752,362737,8042,301,4122,257,976
Management fees(40,939)(42,679)(127,148)(133,021)
Transaction related expenses2,888(293)(1,024)(4,616)
Professional, legal and other expenses(12,826)(12,971)(38,861)(36,147)
Total expenses(50,877)(55,943)(167,033)(173,784)
Finance costs(225,426)(226,861)(669,713)(659,993)
Financial income6,8253,53013,4548,857
Share of (losses)/profits from equity-accounted investees(34,485)8,46718,64170,200
Foreign exchange gain/(loss)807,935(255,036)690,3972,098,636

Net unrealized foreign exchange (loss)/gain on foreign currency denominated investment property

(1,836,608)165,192(1,596,455)(4,104,867)

Unrealized revaluation (loss)/gain on investment property measured at fair value

(17,916)496,760162,153(10,140)
(Loss)/gain on disposal of investment property(3,453)679(3,453)679
Goodwill written off in respect of properties disposed(41,144)(41,144)
Net unrealized (loss)/gain on interest rate swaps(12,405)4,19430,285(23,489)
(Loss)/profit before tax for the period(655,192)878,786738,544(535,925)
Current income tax(98)(234)(311)(873)
(Loss)/profit for the period(655,290)878,552738,233(536,798)
Other comprehensive income
Other comprehensive income for the period
Total comprehensive (loss)/profit for the period(655,290)878,552738,233(536,798)
(Loss)/profit per CBFI*
Basic and diluted (loss)/profit per CBFI (pesos)(0.84)1.090.94(0.66)

*Real Estate Trust Certificates (Certificados Burs¡tiles Fiduciarios Inmobiliarios)

CONDENSED UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 AND 2017 CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)

Contributed equity

Retained earningsTotal
$000$000$000
Total equity at January 1, 201718,369,9948,666,69727,036,691
Total comprehensive loss for the period(536,798)(536,798)
Total comprehensive loss for the period(536,798)(536,798)
Transactions with equity holders in their capacity as equity holders:
– Distributions to CBFI holders(964,672)(964,672)
– Repurchase of CBFIs, including associated costs(71,950)(71,950)
Total transactions with equity holders in their capacity as equity holders(71,950)(964,672)(1,036,622)
Total equity at September 30, 201718,298,0447,165,22725,463,271
Total equity at January 1, 201818,118,9739,240,06527,359,038
Total comprehensive profit for the period738,233738,233
Total comprehensive profit for the period738,233738,233
Transactions with equity holders in their capacity as equity holders:
– Distributions to CBFI holders(911,953)(911,953)
– Repurchase of CBFIs, including associated costs(490,798)(490,798)
Total transactions with equity holders in their capacity as equity holders(490,798)(911,953)(1,402,751)
Total equity at September 30, 201817,628,1759,066,34526,694,520

CONDENSED UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 AND 2017 CURRENCY AMOUNTS EXPRESSED IN THOUSANDS OF MEXICAN PESOS (UNLESS OTHERWISE STATED)

9 months ended
Sep 30, 2018Sep 30, 2017
$000$000
Inflows / (Outflows)Inflows / (Outflows)
Operating activities:
Profit/(loss) before tax for the period738,544(535,925)
Adjustments for:

Net unrealized foreign exchange loss on foreign currency denominated investment property measured at fair value

1,596,4554,104,867
Unrealized revaluation (gain)/loss on investment property measured at fair value(162,153)10,140
Goodwill written off in respect of properties disposed41,144
Straight line rental income adjustment5,098(6,509)
Loss/(gain) on disposal of investment properties3,453(679)
Tenant improvement amortization26,86621,395
Leasing expense amortization51,32536,130
Financial income(13,454)(8,857)
Provision for bad debts19,12611,352
Net foreign exchange gain(733,390)(2,164,593)
Finance costs recognized in profit/(loss) for the period669,713659,993
Share of profits from equity-accounted investees(18,641)(70,200)
Net unrealized (gain)/loss on interest rates swaps(30,285)23,489
Movements in working capital:
Decrease in receivables9,69661,921
Decrease in payables(16,199)(60,544)
Net cash flows from operating activities2,187,2982,081,980
Investing activities:
Investment property acquired(61,244)
Proceeds from investment properties disposed1,142,214122,936
Maintenance capital expenditure and other capitalized cost(370,327)(304,618)
Distributions received from equity-accounted investees40,92048,653
Net cash flows from/(used in) investing activities751,563(133,029)
Financing activities:
Financial income13,4548,857
Repayment of interest-bearing liabilities(770,052)(4,136,912)
Interest paid(584,268)(568,152)
Proceeds from interest-bearing liabilities, net of facility charges3,687,607
Repurchase of CBFIs, including associated costs(490,798)(71,950)
Distribution to CBFI holders(911,953)(964,672)
Net cash flows from financing activities(2,743,617)(2,045,222)
Net increase/(decrease) in cash and cash equivalents195,244(96,271)
Cash and cash equivalents at the beginning of the period467,818663,173
Foreign exchange loss on cash and cash equivalents42,99365,957
Cash and cash equivalents at the end of the period*706,055632,859

*Includes restricted cash balance of $nil (2017: $46.3 million) as at September 30, 2018.

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