FOURTH QUARTER AND FULL YEAR 2017 … 1Tel: +52 (55) 5279 Contacts in Mexico City: Francisco Martinez Investor Relations Officer -8107 E-mail: [email protected] Contacts

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Contacts in Mexico City: Francisco Martinez Investor Relations Officer Tel: +52 (55) 5279-8107 E-mail: [email protected]

Contacts in New York: Maria Barona i-advize Corporate Communications, Inc. Tel: +(212) 406-3691 E-mail: [email protected]

FOURTHQUARTERANDFULLYEAR2017EARNINGSREPORT

MexicoCity,February27,2018–Terrafina®(“TERRA”or“theCompany”)(BMV:TERRA13),aleadingMexicanindustrialrealestateinvestmenttrust(“FIBRA”),externallyadvisedbyPGIMRealEstateanddedicatedtotheacquisition,development,leasingandmanagementofindustrialrealestatepropertiesinMexico,todayannounceditsfourthquarter2017(4Q17)andfullyear2017(FY2017)earningsresults.ThefiguresinthisreporthavebeenpreparedinaccordancewithInternationalFinancialReportingStandards(“IFRS”).FigurespresentedinthisreportarepresentedinmillionsofMexicanpesosandmillionsofU.S.dollars,unlessotherwisestated.Additionally,figuresmayvaryduetorounding.Terrafina’sfinancialstatementsthatare includedinthisreportare internalandhavenotyetbeenauditedbytheexternalauditors,norhavetheybeenapprovedattheOrdinaryShareholders’Meeting.Asaresult,thementionedfiguresinthisfinancialreportarepreliminaryfiguresandcouldbeadjusted in the future. Once the audited 2017 financial statements are available and have been approved by the AnnualOrdinary Shareholders’Meeting,thesewillbemadeavailabletothemarketasperapplicablelaw.Thisdocumentmayincludeforward-lookingstatementsthatmayimplyrisksanduncertainties.Termssuchas"estimate","project","plan","believe","expect", "anticipate", "intend", and other similar expressions could be construed as previsions or estimates. Terrafina warns readers thatdeclarationsandestimatesmentioned in thisdocument,or realizedbyTerrafina’smanagement implyrisksanduncertainties thatcouldchange infunctionofvariousfactorsthatareoutofTerrafina’scontrol.FutureexpectationsreflectTerrafina’sjudgmentatthedateofthisdocument.Terrafinareservestherightorobligationtoupdatetheinformationcontainedinthisdocumentorderivedfromthisdocument.Pastorpresentperformanceisnotanindicatortoanticipatefutureperformance.

OperatingandFinancialHighlightsasofDecember31,2017

Operating

• AsofDecember31,2017,theoccupancyratewas95.5%,a64basispointincreasecomparedtothefourthquarterof2016(4Q16).Additionally,consideringsignedlettersofintent(LOI),occupancyfor4Q17was95.6%.

• Annualizedaverageleasingratepersquarefootattheyear-endwasUS$5.04,aUS$0.16increasecomparedto4Q16.

• At the conclusionof 2017, Terrafina reported a total of 40.6million square feet (msf) ofGross LeasableArea (GLA)comprisedof284propertiesand299tenants.

• 2017leasingactivitytotaled6.3msf,ofwhich24.1%correspondedtonewleases,47.6%toleaserenewalsand28.3%to

early renewals. Leasing activity was mainly concentrated in the Chihuahua, Ciudad Juarez, Cuautitlan Izcalli, RamosArizpe, Reynosa, Monterrey, Queretaro, San Luis Potosi, Toluca, Tijuana, Apodaca, Irapuato, Puebla and Monclovamarkets.

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Financial• FY2017rentalrevenuesreachedUS$166.9million,ofwhichUS$43.8millionweregeneratedduring4Q17;a31.2%

orUS$10.4millionincreasecomparedto4Q16.

• FY2017NOIwasUS$166.8million,ofwhichUS$44.0millionwasgeneratedduring4Q17;a32.9%orUS$10.9millionincreasecomparedto4Q16.

• TheNOImarginreached92.0%inFY2017and93.0%in4Q17,a7basispointincreasecomparedto4Q16.• FY2017EBITDAreachedUS$150.3million,ofwhichUS$39.6millionwasgeneratedin4Q17,anincreaseof33.9%or

US$10.0millioncomparedto4Q16.

• TheEBITDAmarginfor2017was83.0%and83.6%for4Q17,a67basispointincreasecomparedto4Q16.• FY2017adjustedfundsforoperations(AFFO)reachedUS$95.0million,ofwhichUS$25.6millionwasgenerated in

4Q17,anincreaseof25.8%orUS$5.3millioncomparedto4Q16.

• TheAFFOmarginwas52.4%for2017and54.1%in4Q17,a276basispointdecreasecomparedto4Q16.• TotaldistributionforFY2017wereUS$95.0million;distributionsperCBFIwereUS$0.1286.Consideringtheaverage

sharepricefor2017ofUS$1.62(Ps.30.65),Terrafina’sdividendyieldfortheyearwas8.0%.

• 4Q17distributionstotaledUS$25.6million.Asaresult,TerrafinawilldistributePs.0.6130perCBFI (US$0.0324perCBFI) for the October 1 to December 31, 2017 period; considering the average share price of US$1.59 for 4Q17(Ps.30.20),Terrafina’sdividendyieldforthequarterwas8.1%.

FiguresindollarsintheIncomeStatementwereconvertedintopesosusingtheaverageexchangeratefortheperiod.(1)Millionsofsquarefeet.(2)Occupancyattheendoftheperiod.(3)Indicatestheleaserenewalrateoftheleases,includesearlyrenewals.(4)Excludingaccruedincomeasitisanon-cashitem.(5)Earningsbeforeinterest,taxes, depreciation and amortization. (6) Certificados Bursátiles Fiduciarios Inmobiliarios - Real Estate Investment Certificates. (*) Revenues and expenses have beenadjustedforthecalculationoftheabovementionedmetrics.FiguresindollarsintheBalanceSheetwereconvertedusingtheclosingexchangerateoftheperiod.Pleaserefertothe“2017FinancialPerformance"and"Appendices"sectionavailableinthisdocument.Source:PGIMRealEstate–AssetManagementandFundAccounting

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OperatingandFinancialHighlights

Operating Mar17 Jun17 Sep17 Dec17 Dec16 NumberofDevelopedProperties 260 260 268 284 209 GrossLeasableArea(GLA)(msf)

1 36.5 36.5 37.8 40.6 30.1 LandReserves(msf) 6.26 6.26 6.17 6.17 6.40 OccupancyRate2 94.9% 94.9% 95.1% 95.5% 94.8% Avg.LeasingRent/SquareFoot(dollars) 4.96 4.99 5.00 5.04 4.88 WeightedAverageRemainingLeaseTerm(years) 3.60 3.49 3.57 3.23 3.49 RenewalRate3 70.5% 87.9% 89.3% 95.0% 85.0%

AccumulatedFinancial Mar17 Jun17 Sep17 Dec17 Dec16 Mar17 Jun17 Sep17 Dec17 Dec16

fx 20.3873 19.4842 18.9166 18.9189 18.6672

(millionsofpesosunlessotherwisestated) (millionsofdollarsunlessotherwisestated)

RentalRevenues4 589.0 1,594.8 2,329.1 3,157.7 2,460.2 32.6 74.2 115.4 166.9 131.7OtherOperatingIncome 75.0 165.5 232.5 303.3 208.1 4.2 6.6 10.4 15.8 11.3NetRevenues 675.0 1,766.3 2,576.6 3,491.6 2,197.2 37.4 81.8 127.2 184.4 145.0NetOperatingIncome(NOI)* 573.9 1,580.5 2,318.2 3,151.1 2,459.7 31.8 73.5 114.9 166.8 131.8NOIMargin 87.0% 88.5% 89.5% 92.0% 92.1% 87.0% 88.5% 89.5% 92.0% 92.1%

EBITDA5* 516.1 1,431.8 2,094.1 2,843.3 2,204.4 28.5 66.4 103.6 150.3 118.2EBITDAMargin 78.2% 79.2% 79.7% 83.0% 82.5% 78.2% 79.2% 79.7% 83.0% 82.5%FundsfromOperations(FFO)* 355.7 1,009.2 1,466.0 1,986.4 1,549.5 19.6 46.6 72.2 105.0 83.0FFOMargin 53.8% 61.4% 62.2% 58.4% 58.0% 53.8% 61.4% 62.2% 58.4% 58.0%AdjustedFundsfromOperations(AFFO)* 300.8 902.9 1,313.3 1,798.2 1,390.8 16.6 40.9 64.0 95.0 74.5AFFOMargin 45.1% 55.8% 54.6% 52.4% 52.7% 45.1% 55.8% 54.6% 52.4% 52.7%Distributions 300.8 902.9 1,313.3 1,798.2 1,390.8 16.6 40.9 64.0 95.0 74.5DistributionsperCBFI6 0.7417 1.3137 1.8325 2.4455 2.2897 0.0364 0.0671 0.0963 0.1286 0.1226

QuarterlyFinancial 1Q17 2Q17 3Q17 4Q17 4Q16 1Q17 2Q17 3Q17 4Q17 4Q16

fx 20.3873 18.5666 17.8251 18.9259 19.8128


RentalRevenues 821.2 773.6 734.3 828.6 660.8 40.3 41.6 41.2 43.8 33.4OtherOperatingIncome 119.7 45.8 67.0 70.8 52.1 5.8 2.5 3.8 3.8 2.8NetRevenues 941.2 825.1 810.3 915.0 720.3 46.2 44.4 45.5 48.3 36.5NetOperatingIncome(NOI)* 804.2 776.3 737.7 832.9 654.3 39.6 41.8 41.4 44.0 33.1NOIMargin 87.9% 94.1% 93.3% 93.0% 92.9% 87.9% 94.1% 93.3% 93.0% 92.9%EBITDA* 727.2 704.5 662.3 749.2 584.4 35.7 37.9 37.2 39.6 29.6EBITDAMargin 79.2% 85.3% 83.7% 83.6% 82.9% 79.2% 85.3% 83.7% 83.6% 82.9%FundsfromOperations(FFO)* 508.3 500.8 456.8 520.5 417.3 24.9 26.9 25.6 27.5 21.1FFOMargin 55.3% 60.6% 57.8% 58.6% 59.2% 55.3% 60.6% 57.8% 58.6% 59.2%AdjustedFundsfromOperations(AFFO)* 450.5 452.4 410.4 484.9 400.4 22.1 24.3 23.0 25.6 20.4AFFOMargin 48.7% 55.4% 51.4% 54.1% 56.8% 48.7% 55.4% 51.4% 54.1% 56.8%Distributions 450.5 452.4 410.4 484.9 400.4 22.1 24.3 23.0 25.6 20.4DistributionsperCBFI 0.7417 0.5720 0.5188 0.6130 0.6593 0.0364 0.0308 0.0291 0.0324 0.0335

FiguresindollarsintheBalanceSheetwereconvertedintopesosusingtheclosingexchangerateoftheperiod.Source:PGIMRealEstate–AssetManagement–FundAccounting

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BalanceSheet Mar17 Jun17 Sep17 Dec17 Dec16 Mar17 Jun17 Sep17 Dec17 Dec16

fx 18.8092 17.8973 18.1979 19.7354 20.6640


Cash&CashEquivalents 1,038.2 884.0 6,658.7 3,209.0 4,297.1 55.2 49.4 365.9 162.6 259.7InvestmentProperties 39,348.2 37,393.9 39,048.5 45,959.6 34,719.7 2,092.0 2,089.4 2,145.8 2,328.8 1,666.7LandReserves 997.5 934.8 962.9 1,040.3 1,041.5 53.0 52.2 52.9 52.7 48.1TotalDebt 19,273.3 18,526.0 19,267.1 20,900.8 14,561.5 1,024.7 1,035.1 1,058.8 1,059.1 709.9NetDebt 18,235.1 17,642.0 12,608.4 17,691.8 10,264.4 969.5 985.7 692.8 896.5 450.3

F

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CommentbyAlbertoChretin,ChiefExecutiveOfficerandChairmanoftheBoard2017was a year of great achievements for Terrafina.We reached record-highoccupancy levels of 95.5%and leasingactivityof6.3millionsquare feet, supportedbyanaverageannual renewal rateof87.0%.Leasingactivitywasmainlylocated in themarketsofChihuahua,Ciudad Juarez,Cuautitlan Izcalli,RamosArizpe,Reynosa,Monterrey,Queretaro,San Luis Potosi, Toluca, Tijuana, Apodaca, Irapuato, Puebla and Monclova. Moreover, the Company’s high renewalactivityof4.8millionsquare feetconfirms the importanceof themanufacturing-for-export sector in thecountry,andhighlightsthesolidoperationsofourmultinationaltenants.Thisresultwassupportedbyoursuccessfulbusinessmodelandthetalentandexpertisefromourpropertymanagerswhoarefocusedonprovidingservicelevelsofexcellenceofourclients.Theaveragerentalratefor2017closedatUS$5.04,increasingUS$0.14comparedtofourthquarterof2016andUS$0.04comparedtothirdquarterof2017.Averagerentalratesperregionremainedstablethroughouttheyear:theNorthernregionreachedUS$4.96persquarefoot,theBajioregionUS$5.12persquarefootandtheCentralregionUS$5.23persquarefoot.Furthermore,acquisitionactivitywasquitedynamicthroughouttheyear.WeclosedatotalofUS$661millioninClassAindustrialportfolios,increasingourexposuretokeyindustrialsectorssuchasaviation,automotiveandelectronics.Thecharacteristics of these properties contributed to the Company’s cash flow stability, as the properties representedoccupancy levelsof100%and long-termmaturity leaseterms.Additionally, theymaintainedourhighexposuretoUS-dollarrevenue;currently97%ofthecontractsaredenominatedinthiscurrency.Withtheseacquisitions,wereachedatotal of 40.6million square feet of Gross Leasable Area (GLA), which allows us to continue consolidating Terrafina’sleadershippositionintheMexicanindustrialsector.Intermsofourfinancialstrategyobjectives,werefinancedatotalofUS$500millionindebt–whichrepresentshalfofthe Company’s total debt, improving interest rate terms and increasing the average leasing term. With theseaccomplishments,weconcludedtheyearwithasolidbalancesheet,permittingustosettleourcreditobligationsataloweraveragecost.Withregardstothemainfinancialmetricsof2017,weattainedsignificantincreasescomparedto2016,suchas:rentalrevenuesofUS$166.9million,NetOperating IncomeofUS$166.8millionwithanNOImarginof93.0%, aswell as anAFFOofUS$95.0million.CBFIdistributionlevelsfor2017reachedPs.2.45,orUS$0.1286percertificateandadividendyieldof8.0%,consideringtheaverageCBFIpriceduring2017.We have a positive outlook for 2018, both for Terrafina as well as the industry as a whole. We aim to continuestrengtheningourbusinessplanwithadisciplinedapproachedtoexecuteonopportunitiesthatcontributetothegrowthofouroperationshappen.Withthis, I reiterateourcommitmenttogeneratinggreaterprofitability forTerrafinawhilemaintainingoperatingstabilityinthelongterm.

ThankyouforyourinterestinTerrafina.Sincerely,

AlbertoChretin

F

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OperatingHighlights

HighlightsbyRegion

(asofDecember31,2017) North Bajio Central Total

#Buildings 199 55 30 284

#Tenants 203 56 40 299

GLA(msf) 25.2 9.1 6.3 40.6

LandReserves(msf) 2.7 0.2 3.3 6.2

OccupancyRate 97.1% 91.6% 94.4% 95.5%

AverageLeasingRent/SquareFoot(dollars) 4.96 5.12 5.23 5.04

AnnualizedRentalBase% 62.3% 21.9% 15.8% 100.0%Source:PGIMRealEstate-AssetManagement

LeasingActivity 4Q17 4Q16 Var.

OperatingPortfolio(msf): Renewals 0.9 0.6 0.3

EarlyRenewals 0.4 1.1 -0.7

NewLeases 0.1 0.7 -0.6

TotalSquareFeetofLeasesSigned 1.4 2.4 -1.0Source:PGIMRealEstate-AssetManagement

NORTH - BajaCalifornia- Sonora- Chihuahua- Coahuila- NuevoLeon- Tamaulipas- Durango

BAJIO - SanLuisPotosi- Jalisco- Aguascalientes- Guanajuato- Queretaro

CENTRAL - EstadodeMexico- MexicoCity- Puebla- Tabasco

Terrafina’s4Q17Operations

26.9%

73.1%

ComposidonbyAssetTypeasof4Q17(asa%oftotalGLA)

Distribulon Manufacturing

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OperatingHighlights(continued)

OccupancyandRentsbyRegion MaturitiesandRenewalsbyRegion

0

Consolidated

(AsofDecember31,2017)

OccupancyRate

Avg.LeasingRent/SquareFoot(dollars) (AsofDecember31,2017)

Maturities(numberofcontracts)

%ofTotalMaturities

Renewals(numberofcontracts)

%ofTotal

RenewalsNorth 97.1% 4.96 North 11 73.3% 11 100.0%BajaCalifornia 100.0% 4.32 BajaCalifornia 1 6.7% 1 100.0%Tijuana 100.0% 4.32 Tijuana 1 6.7% 1 100.0%

Sonora 88.5% 4.53 Sonora 0 0.0% 0 0.0%Hermosillo 88.5% 4.53 Hermosillo 0 0.0% 0 0.0%

Chihuahua 97.8% 5.00 Chihuahua 6 40.0% 6 100.0%Chihuahua 97.6% 5.43 Chihuahua 2 13.3% 2 100.0%CiudadJuarez 98.0% 4.65 CiudadJuarez 3 20.0% 3 100.0%Delicias 100.0% 5.88 Delicias 1 6.7% 1 100.0%GomezFarias 100.0% 3.34 GomezFarias 0 0.0% 0 0.0%CasasGrandes 100.0% 4.15 CasasGrandes 0 0.0% 0 0.0%

Coahuila 95.4% 5.03 Coahuila 0 0.0% 0 0.0%CiudadAcuña 100.0% 6.11 CiudadAcuña 0 0.0% 0 0.0%Monclova 100.0% 5.39 Monclova 0 0.0% 0 0.0%RamosArizpe 93.8% 4.96 RamosArizpe 0 0.0% 0 0.0%Saltillo 100.0% 5.35 Saltillo 0 0.0% 0 0.0%Derramadero 100.0% 7.03 Derramadero 0 0.0% 0 0.0%SanPedrodelasColinas 89.3% 2.10 SanPedrodelasColinas 0 0.0% 0 0.0%Torreon 100.0% 4.21 Torreon 0 0.0% 0 0.0%

NuevoLeon 96.2% 5.02 NuevoLeon 2 13.3% 2 100.0%Apodaca 100.0% 5.49 Apodaca 2 13.3% 2 100.0%Monterrey 94.9% 4.85 Monterrey 0 0.0% 0 0.0%

Tamaulipas 100.0% 4.55 Tamaulipas 2 13.3% 2 100.0%Reynosa 100.0% 4.55 Reynosa 2 13.3% 2 100.0%

Durango 100.0% 4.71 Durango 0 0.0% 0 0.0%Durango 100.0% 4.86 Durango 0 0.0% 0 0.0%GomezPalacio 100.0% 3.09 GomezPalacio 0 0.0% 0 0.0%

Bajio 91.6% 5.12 Bajio 3 20.0% 1 33.3%SanLuisPotosi 91.7% 4.84 SanLuisPotosi 0 0.0% 0 0.0%SanLuisPotosi 91.7% 4.84 SanLuisPotosi 0 0.0% 0 0.0%

Jalisco 100.0% 6.41 Jalisco 0 0.0% 0 0.0%Guadalajara 100.0% 6.41 Guadalajara 0 0.0% 0 0.0%

Aguascalientes 100.0% 4.76 Aguascalientes 1 6.7% 1 100.0%Aguascalientes 100.0% 4.76 Aguascalientes 1 6.7% 1 100.0%

Guanajuato 85.1% 4.89 Guanajuato 1 6.7% 0 0.0%Celaya 100.0% 5.18 Celaya 0 0.0% 0 0.0%Irapuato 81.8% 5.32 Irapuato 1 6.7% 0 0.0%Silao 84.9% 4.63 Silao 0 0.0% 0 0.0%

Queretaro 85.8% 4.69 Queretaro 1 6.7% 0 0.0%Queretaro 85.8% 4.69 Queretaro 1 6.7% 0 0.0%

Central 94.4% 5.23 Central 1 6.7% 1 100.0%EstadodeMexico 93.5% 5.45 EstadodeMexico 1 6.7% 1 100.0%CuautitlanIzcalli 100.0% 5.42 CuautitlanIzcalli 1 6.7% 1 100.0%Toluca 86.6% 5.56 Toluca 0 0.0% 0 0.0%CiudaddeMexico 100.0% 8.97 CiudaddeMéxico 0 0.0% 0 0.0%Azcapotzalco 100.0% 8.97 Azcapotzalco 0 0.0% 0 0.0%

Puebla 100.0% 3.02 Puebla 0 0.0% 0 0.0%Puebla 100.0% 3.02 Puebla 0 0.0% 0 0.0%

Tabasco 100.0% 4.02 Tabasco 0 0.0% 0 0.0%Villahermosa 100.0% 4.02 Villahermosa 0 0.0% 0 0.0%

Total 95.5% 5.04 Total 15 100.0% 13 86.7%Source:PGIMRealEstate-AssetManagement

Source:PGIMRealEstate-AssetManagement*Overthenumberofmaturedleasesinthequarter

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2017OperationalPerformanceCompositionbyGeographicalDiversificationThe geographic diversification of Terrafina’s properties at the close of 2017 (based on GLA per square foot) was asfollows:theNorthernregionofMexicorepresented62.1%ofGLA,whiletheBajioandCentralregionsrepresented22.5%and15.4%ofGLA,respectively.

GeographicDistributionbyRegionandState

4Q17 asa%ofTotal

GLA4Q17 4Q16 asa%ofTotalGLA4Q16

North 25.21 62.1% 16.47 54.7%BajaCalifornia 0.90 2.2% 1.13 3.7%Tijuana 0.90 2.2% 1.13 3.7%

Sonora 0.33 0.8% 0.28 0.9%Hermosillo 0.33 0.8% 0.28 0.9%

Chihuahua 14.29 35.2% 9.61 31.9%Chihuahua 5.83 14.4% 4.13 13.7%CiudadJuarez 7.76 19.1% 5.00 16.6%Delicias 0.52 1.3% 0.29 1.0%GomezFarias 0.08 0.2% 0.08 0.3%Camargo 0.09 0.2% 0.09 0.3%CasasGrandes 0.09 0.2% 0.02 0.1%

Coahuila 6.51 16.0% 3.49 11.6%CiudadAcuña 0.24 0.6% 0.24 0.8%Monclova 0.35 0.9% 0.34 1.1%RamosArizpe 4.54 11.2% 2.00 6.6%Saltillo 0.62 1.5% 0.62 2.1%Derramadero 0.21 0.5% 0.00 0.0%SanPedrodelasColinas 0.15 0.4% 0.15 0.5%Torreon 0.39 1.0% 0.13 0.4%

NuevoLeon 1.94 4.8% 1.16 3.9%Apodaca 0.50 1.2% 0.32 1.1%Monterrey 1.44 3.6% 0.84 2.8%

Tamaulipas 0.47 1.1% 0.34 1.1%Reynosa 0.47 1.1% 0.34 1.1%

Durango 0.78 1.9% 0.46 1.5%Durango 0.71 1.7% 0.40 1.3%GomezPalacio 0.23 0.6% 0.07 0.2%

Bajio 9.12 22.5% 7.55 25.0%SanLuisPotosi 3.31 8.2% 2.75 9.1%SanLuisPotosi 3.31 8.2% 2.75 9.1%

Jalisco 1.66 4.1% 1.29 4.3%Guadalajara 1.66 4.1% 1.29 4.3%

Aguascalientes 0.75 1.8% 0.75 2.5%Aguascalientes 0.75 1.8% 0.75 2.5%

Guanajuato 1.42 3.5% 0.78 2.6%Celaya 0.12 0.3% 0.12 0.4%Irapuato 0.44 1.1% 0.24 0.8%Silao 0.86 2.1% 0.42 1.4%

Queretaro 1.98 4.9% 1.98 6.6%Queretaro 1.98 4.9% 1.98 6.6%

Central 6.25 15.4% 6.12 20.3%EstadodeMexico 5.40 13.3% 5.26 17.5%CuautitlanIzcalli 4.26 10.5% 4.12 13.7%Toluca 0.91 2.2% 0.23 0.8%Huehuetoca 0.23 0.6% 0.91 3.0%

DistritoFederal 0.02 0.1% 0.02 0.1%Azcapotzalco 0.02 0.1% 0.02 0.1%

Puebla 0.18 0.5% 0.18 0.6%Puebla 0.18 0.5% 0.18 0.6%

Tabasco 0.65 1.6% 0.65 2.2%Villahermosa 0.65 1.6% 0.65 2.2%

Total 40.58 100.0% 30.14 100.0%TotalGrossLeasableArea/millionsquarefeet.Potentialleasableareaoflandreservesarenotincluded.

Source:PGIMRealEstate-AssetManagement

9

CompositionbyAssetTypeAt the end of 2017, 73.1% of Terrafina’s portfolio consisted of properties dedicated tomanufacturing activitieswhile26.9%werededicatedtodistributionandlogisticsactivities.

CompositionbySectorAsofDecember31,2017,tenantdiversificationbyindustrialsectorwasasfollows:

IndustrialSectorDiversification 4Q17 4Q16 Var.

Automotive 34.3% 31.6% 268bps

Industrialproperties 19.8% 18.9% 92bps

Consumergoods 14.4% 18.7% -436bps

LogisticsandTrade 10.0% 9.5% 48bps

Aviation 9.9% 9.4% 44bps

Non-durableconsumergoods 4.0% 5.6% -163bps

Electronics 7.7% 6.2% 147bps

Total 100.0% 100.0% Source:PGIMRealEstate-AssetManagement

26.9%

73.1%

ComposidonbyAssetTypeasof4Q17(asa%oftotalGLA)

Distribulon Manufacturing

CompositionbyAssetType

4Q17 4Q16 Var.

Distribution 26.9% 29.6% -270bps

Manufacturing 73.1% 70.4% 270bpsSource:PGIMRealEstate-AssetManagement

34.3%

19.8%14.4%

10.0%

9.9%4.0%

7.7%

DiversificadonbySectorasof4Q17(asa%ofleasedGLA)

AutomolveIndustrialproperlesConsumergoodsLogislcsandTradeAvialonNon-durableconsumergoodsElectronics

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CompositionofTopClientsTerrafinahasawidelydiversifiedtenantbasethatleaseindustrialpropertiesthroughoutseveralofMexico’smaincities.Attheendof2017,Terrafina’stopclient,top10clientsandtop20clients,represented3.3%,17.2%and27.1%oftotalrevenues,respectively.

TopClients

(AsofDecember31,2017)

LeasedSquareFeet(millions) %TotalGLA

%TotalRevenues

TopClient 1.24 3.2% 3.3%

Top10Clients 6.75 17.4% 17.2%

Top20Clients 52.92 27.2% 27.1%Source:PGIMRealEstate-AssetManagement

OccupancyFY2017occupancyratewas95.5%,a64basispointincreasecomparedto4Q16.IncludingsignedLOIsforthequarter,theoccupancy ratewas 95.6%. It is important to note that occupancy rate indicators presented in this report reflect thequarterlyclosingrate.For4Q17,Terrafina’s leasingactivity reached1.4msf,ofwhich9.6%corresponded tonew leasing contracts (includingexpansions),61.2%forcontractrenewalsand29.2%forearlyrenewals.

Leasing activity mainly took place in the Chihuahua, Ciudad Juarez, Cuautitlán Izcalli, Queretaro, Apodaca, Reynosa yMonclovamarkets.Inadditiontothisleasingactivity,Terrafinasignedanadditional64,000squarefeetinLOIs.

LeaseMaturitiesTerrafinahad299tenantsunderleasingcontractsattheendof2017.Theleasingcharacteristicsofthesecontractshavean average maturity of three to five years for logistics and distribution properties and of five to seven years formanufacturingproperties.Annualaveragematurities(asapercentageofannualbaserents)remainatlevelsofbetween14%to22%forthenextfiveyears.

95.5%

4.4%0.2%

Occupancyasof4Q17(as%ofTotalGLA)

LeasedGLAVacantGLASignedLeqersofIntent

4Q17 4Q16 Var.

LeasedGLA 95.5% 94.8% 64bps

VacantGLA 4.4% 4.8% -46bps

SignedLettersofIntent 0.2% 0.3% -18bps

Total 100.0% 100.0% Source:PGIMRealEstate-AssetManagement

11

ThefollowingtablebreaksdownTerrafina’sleasingmaturityschedulefortheupcomingyears:

Annual

BaseRent(millionsofdollars)

%ofTotal OccupiedSq.Ft(millions) %ofTotal

2018 27.1 13.9% 5.62 14.5%2019 32.3 16.5% 6.57 17.0%2020 43.0 22.0% 8.48 21.9%2021 29.6 15.2% 5.79 15.0%2022 17.0 8.7% 3.66 9.4%Thereafter 46.2 23.7% 8.62 22.3%Source:PGIMRealEstate–AssetManagement

CapitalDeploymentAcquisitionsAcquisition activity in 2017 represented a total of US$661 million – excluding taxes and transaction expenses – anincreaseof10.1millionsquarefeetor33.5%toTerrafina’sGrossLeasableArea(GLA).Thefollowingtableshowsthetotalofclosedacquisitionsduring2017:

Jan17 Sep17 Dec17

AcquisitionPrice(millionsofdollars) $422 $59 $180

GrossLeasableArea(millionsquarefeet) 6.3 1.1 2.7

PriceperSquareFoot(dollars) $67.00 $53.60 $65.60

CapRate(nexttwelve-months) 7.60% 8.80% 8.50%

OccupancyRate 99% 100% 100%

AnnualizedAverageLeaseRent(dollars) 5.06 5.08 $5.31

DollarDenominatedLeaseContracts 100% 100% 100%

AveragePropertyAge(years) 8.4 4.0 4.7

AverageLeaseTerm(years) 4.0 8.1 4.7

CapitalExpenditures(CAPEX)Terrafina’sCAPEXisclassifiedasrecurringexpensesthattookplacebasedonupcomingleasingmaturitiesandpropertyimprovements. The main goal of these expenses is the renewal of leasing contracts as well as the improvement ofpropertyconditionstakingintoaccounttenantrequirements.TerrafinaexpectstoapplyCAPEXtowardsvacantpropertiesaswellastowardsthedevelopmentofnewGLAbymeansofexpansionsand/ornewdevelopments.

Additionally,itisimportanttoconsiderthatCAPEXintendedforexpansionsandnewdevelopmentsarenotfinancedwithTerrafina’soperatingcashflowandthereforedonotpassthroughtheincomestatement.

Capitalexpendituresaccountsarecomprisedasfollows:1) TenantpropertyimprovementresourcesaswellasrecurringmaintenanceCAPEX.2) Brokerandadministratorfees.3) CAPEXfornewdevelopments,whichduetotheirnature,aregenerallycapitalized.

12

In FY2017, Terrafina’s investments in tenant improvements and recurring CAPEXwas US$5.5million. Total CAPEX for4Q17and2017isbrokendowninthefollowingtable:

CapitalExpenditures 4Q17 4Q17 2017 2017

(millionsofpesos)

(millionsofdollars)

(millionsofpesos)

(millionsofdollars)

TenantImprovements&RecurringCapex 22.8 1.2 105.3 5.5LeasingCommissions 10.9 0.6 66.0 3.5DevelopmentCapex1 24.5 1.3 204.9 10.6

TotalCapitalExpenditures 58.2 3.1 376.3 19.6MaintenanceexpensesforvacantpropertiesareincludedintheTenantImprovements&RecurringCapexfigures.(1)Capexforexpansions/newdevelopments.Source:PGIMRealEstate-AssetManagement

LandReservesTerrafina’slandreserveasofDecember31,2017wascomprisedof12landreserveproperties,equivalentto6.2msfofpotentialGLAforthedevelopmentoffutureindustrialproperties.AsofDecember31,2017,Terrafina’slandreservesweredistributedasfollows:

AsofDecember31,2017

SquareFeet

(millions)

LandatCost

(millionsofpesos)

LandatCost

(millionsofdollars)

AppraisalValue

(millionsofpesos)

MarketValue

(millionsofdollars)

North 2.7 543.9 27.6 603.8 30.6Bajio 0.2 14.1 0.7 14.6 0.7Central 3.3 733.1 37.1 421.9 21.4

TotalLandPortfolio 6.2 1,291.1 65.4 1,040.3 52.7Source:PGIMRealEstate-AssetManagementandFundAccounting

13

2017FinancialPerformanceFinancialResultsandCalculationsTerrafina’s financial resultsarepresented inMexicanpesosandU.S.dollars.Figuresonthe incomestatement foreachperiodwereconverted todollarsusing theaverageexchange rate for2017,while for thebalancesheet, theexchangerateatthecloseofDecember31,2017wasapplied.Terrafina has in place best accounting practices for measuring the FIBRA’s (REIT) performance results by providingrelevant metrics to the financial community. Throughout the following financial performance section, additionalcalculations are available. It is important to note that these metrics must not be considered individually to evaluateTerrafina’sresults.ItisrecommendedtousethemincombinationwithotherInternationalFinancialReportingStandardsmetricstomeasuretheCompany’sperformance.Terrafina presents in this earnings report additional metrics such as Net Operating Income (NOI), Earnings BeforeInterests, Taxes, Depreciation and Amortization (EBITDA), Funds from Operations (FFO), and Adjusted Funds fromOperations(AFFO).Eachbreakdowncalculationisavailableinthisdocument.

Inaddition,TerrafinarecommendsreviewingtheAppendicesasareferenceoftheintegrationofdifferentitemsof

Terrafina’sfinancialstatement.Thisinformationisavailableinthelastsectionofthisdocument.

Pastperformanceisnotaguaranteeorreliableindicatoroffutureresults.

14

Same-StoreThefollowingtableshowsTerrafina’s2017and4Q17same-storehighlightsandconsolidatedinformation:

Same-Store1

4Q17Consolidated2

4Q17

NumberofProperties 206 284

OccupancyRate 94.6% 95.5%

GrossLeasableArea(GLA)(msf) 30.0 40.6

Avg.LeasingRent/SquareFoot(dollars) 4.96 5.04

Same-Store

2017Consolidated

2017Same-Store

2017Consolidated

2017Same-Store

4Q17Consolidated

4Q17Same-Store

4Q17Consolidated

4Q17

(millionsofdollars) (millionsofpesos) (millionsofdollars) (millionsofpesos)

RentalRevenues 135.0 166.9 2,552.7 3,157.7 34.0 43.8 643.9 828.6NetOperatingIncome 135.7 166.8 2,565.1 3,151.1 34.6 44.0 653.9 832.9NOIMargin 91.6% 92.0% 91.6% 92.0% 93.0% 93.0% 93.0% 93.0%EBITDA 121.8 150.3 2,298.3 2,843.3 30.9 39.6 584.7 749.2EBITDAMargin 83.0% 83.0% 83.0% 83.0% 83.0% 83.6% 83.0% 83.6%FFO 87.1 105.0 1,645.2 1,986.4 22.0 27.5 417.0 520.5FFOMargin 59.3% 58.4% 59.3% 58.4% 59.1% 58.6% 59.1% 58.6%AdjustedFundsfromOperations 77.6 95.0 1,465.1 1,798.2 20.2 25.6 382.3 484.9AFFOMargin 52.1% 52.4% 52.1% 52.4% 53.7% 54.1% 53.7% 54.1%(1)SamepropertiesinformationevaluatestheperformanceoftheindustrialpropertieswithoutincludingrecentacquisitionsclosedinJanuary2017.(2)IncludesacquisitionsclosedinJanuary,SeptemberandDecember2017.Source:PGIMRealEstate-AssetManagementandFundAccounting

RentalRevenuesDuring 2017, Terrafina reported rental revenues of US$166.9 million. In 4Q17, Terrafina reported rental revenues ofUS$43.8million,a31.2%orUS$10.4millionincreasecomparedto4Q16.Rentalrevenuesdonotincludeaccruedrevenuesastheseareanon-cashitem.OtherOperatingIncomeFor 2017, other operating income totaledUS$15.8million. In 4Q17, other operating income totaledUS$3.8million, a36.1%orUS$1.0millionincreasecomparedto4Q16.Other operating incomemainly stem from tenant refunds from triple-net leases. Expenses reimbursable to Terrafinamainlyincludedelectricity,propertytaxes,insurancecostsandmaintenance.

NetrevenuesreachedUS$184.4millionfor2017andUS$48.3millionin4Q17,anincreaseofUS$11.8million,or32.4%comparedto4Q16.

15

Revenues 2017 2016 Var.% 4Q17 4Q16 Var.% 2017 2016 Var.% 4Q17 4Q16 Var.%

(millionsofpesos) (millionsofdollars)

RentalRevenue 3,157.7 2,460.2 28.3% 828.6 660.8 25.4% 166.9 131.7 26.7% 43.8 33.4 31.2%

AccruedIncome1 30.6 34.7 -11.8% 15.6 7.4 111.3% 1.7 1.9 -12.4% 0.8 0.4 124.0%

OtherOperatingRevenues 303.3 208.1 45.8% 70.8 52.1 35.8% 15.8 11.3 39.2% 3.8 2.8 36.1%

ReimbursableExpensesasRevenues2 247.4 154.4 60.2% 60.4 39.6 52.4% 12.9 8.4 53.1% 3.2 2.1 54.4%

ReimbursableTenantImprovements 31.1 23.5 32.3% 7.6 7.4 2.4% 1.7 1.3 32.2% 0.4 0.4 5.8%

Othernon-cashincome 24.8 30.1 -17.8% 2.8 5.1 -44.4% 1.2 1.7 -26.1% 0.1 0.3 -50.9%

NetRevenue 3,491.6 2,197.2 58.9% 915.0 575.6 59.0% 184.4 145.0 27.1% 48.3 36.5 32.4%(1)Straightlinerentadjustment;non-cashitem.(2)TriplenetleasesexpensesreimbursedtoTerrafinafromitstenants.

Source:PGIMRealEstate-FundAccounting

Foradditionalinformationregardingtherevenuebreakdownusedtocalculateadditionalmetricspresentedinthis

earningsreport,pleaserefertoAppendix1inthelastsectionofthisdocument.

RealEstateExpensesIn2017,realestateexpensestotaledUS$30.0million.Theseexpensesmainlycorrespondedtorepairandmaintenance,propertytaxesandinsurance.In4Q17,realestateexpensestotaledUS$7.1million,adecreaseof8.1%orUS$0.6millioncomparedto4Q16.It is important todifferentiatebetweenexpenses that aredirectly related to theoperationand those that are for themaintenanceoftheindustrialportfolio;thelatterareusedintheNOIcalculation.

Theremainderoftheaccountsincludedinrealestateexpensesareconsiderednon-recurringexpensesandareusedtocalculateEBITDAandAFFO.

Foradditionalinformationregardingtherealestateexpensesbreakdown,pleaserefertoAppendix2inthelastsectionofthisdocument.

16

NetOperatingIncome(NOI)In2017NetOperatingIncome(NOI)totaledUS$166.8million,withanNOImarginof92.0%.During 4Q17, NOI totaled US$44.0 million, a 32.9% or US$10.9 million increase compared with 4Q16. NOI marginincreasedby7basispointsreaching93.0%comparedto92.9%in4Q16.ThefollowingtabledisplaystheNOIcalculationfor2017and4Q17:

NetOperatingIncome 2017 2016 Var.% 4Q17 4Q16 Var.% 2017 2016 Var.% 4Q17 4Q16 Var.%


RentalRevenues1 3,157.7 2,460.2 28.3% 828.6 660.8 25.4% 166.9 131.7 26.7% 43.8 33.4 31.2%

OtherOperatingincome2 272.4 209.8 29.9% 67.5 44.0 53.4% 14.3 11.4 25.2% 3.6 2.3 56.3%

NetRevenuesforNOICalculation 3,430.1 2,670.0 28.5% 896.1 704.8 27.1% 181.2 143.1 26.6% 47.3 35.6 32.8%

RepairandMaintenance -33.1 -27.3 21.2% -7.7 -6.6 17.9% -1.8 -1.5 19.7% -0.4 -0.3 22.9%

PropertyTaxes -66.4 -50.2 32.1% 0.0 -0.2 -99.7% -3.1 -2.8 11.4% 0.0 0.0 -99.7%

PropertyManagementFees -68.5 -56.7 20.6% -18.5 -14.7 26.3% -3.6 -3.0 19.2% -1.0 -0.7 32.0%

Electricity -50.8 -27.0 88.0% -13.1 -8.4 56.7% -2.7 -1.4 92.1% -0.7 -0.4 67.0%

PropertyInsurance -25.1 -20.9 20.3% -15.0 -13.4 12.0% -1.3 -1.1 22.4% -0.8 -0.7 17.5%

Security -13.4 -12.3 8.6% -3.0 -3.0 0.2% -0.7 -0.7 7.8% -0.2 -0.2 5.1%

OtherOperationalExpenses -21.7 -15.8 37.7% -5.8 -4.3 36.7% -1.2 -0.8 38.7% -0.3 -0.2 44.8%

RealEstateOperatingExpensesforNOICalculation -279.0 -210.3 32.6% -63.2 -50.4 25.2% -14.4 -11.3 27.6% -3.3 -2.5 31.5%

NetOperatingIncome3 3,151.1 2,459.7 28.1% 832.9 654.3 27.3% 166.8 131.8 26.5% 44.0 33.1 32.9%

NOIMargin 92.0% 92.1% -6bps 93.0% 92.9% 7bps 92.0% 92.1% -6bps 93.0% 92.9% 7bps(1)Excludesaccruedincomefromstraightlinerentadjustmentsasitisanon-cashitem.(2)Excludestenantimprovementsreimbursementswhichareincludedin'AFFO'(3)Theincomecalculationgeneratedbytheoperationoftheproperty,independentofexternalfactorssuchasfinancingandincometaxes.NOIistheresultofNetRevenues(includesrentalincomeandtriplenetleasesexpensesreimbursements)minusRealEstateOperatingExpenses(costsincurredduringtheoperationandmaintenanceoftheindustrialportfolio).Source:PGIMRealEstate-FundAccounting

FeesandAdministrativeExpenses(G&A)G&A for FY2017 totaledUS$22.1millionandUS$5.2million for4Q17,a3.5%orUS$0.2milliondecrease compared to4Q16.

ThefollowingtablebreaksdowntotalG&A:

2017 2016 Var.% 4Q17 4Q16 Var.% 2017 2016 Var.% 4Q17 4Q16 Var.%


ExternalAdvisorFees1 -198.2

-157.4

25.9% -53.5 -43.2 23.7% -10.6 -8.3 28.6% -2.8 -2.1 32.9%

ProfessionalandConsultingServices -40.1 -35.6 12.6% -12.3 -12.2 0.8% -2.1 -2.1 3.9% -0.7 -0.7 -5.5%

Payroll,Admin.FeesandOtherExpenses-

175.7-

136.2 29.0% -32.5 -50.7 -35.9% -9.4 -7.3 29.0% -1.7 -2.6-

32.8%

TotalG&A2 -414.0

-329.3

25.7% -98.3 -106.1

-7.4% -22.1 -17.6 25.9% -5.2 -5.4 -3.5%

(1)GeneralandAdministrativeExpenses(2)PLAAdministradoraIndustrial,S.deR.L.deC.V.,isaMexicanaffiliateofPGIMRealEstate,andAdvisoraspertheAdvisoryContract.


17

EarningsBeforeInterest,Taxes,DepreciationandAmortization(EBITDA)In2017,EBITDAreachedUS$150.3millionwithanEBITDAmarginof83.0%.In4Q17,EBITDAtotaledUS$39.6million,anincreaseofUS$10.0million,or33.9%,comparedto4Q16.EBITDAmarginfor4Q17was83.6%,a67basispointincreasecomparedto4Q16.ThefollowingshowstheEBITDAcalculationfor2017and4Q17:

EBITDA 2017 2016 Var.% 4Q17 4Q16 Var.% 2017 2016 Var.% 4Q17 4Q16 Var.%


RentalRevenues1 3,157.7 2,460.2 28.3% 828.6 660.8 25.4% 166.9 131.7 26.7% 43.8 33.4 31.2%

OtherOperatingincome2 272.4 209.8 29.9% 67.5 44.0 53.4% 14.3 11.4 25.2% 3.6 2.3 56.3%

RealEstateExpensesforEBITDACalculation -295.1 -224.5 31.5% -68.7 -55.3 24.3% -15.3 -12.1 26.7% -3.6 -2.8 30.7%

RealEstateOperatingExpensesforNOICalculation -279.0 -210.3 32.6% -63.2 -50.4 25.2% -14.4 -11.3 27.6% -3.3 -2.5 31.5%

Advertising -0.5 -1.6 -66.5% 0.0 -0.3 - 0.0 -0.1 - 0.0 0.0 -

Admin.PropertyInsuranceExpenses -3.2 -3.7 -13.4% -0.7 -1.0 -24.8% -0.2 -0.2 -14.6% 0.0 0.0 -

OtherAdmin.RealEstateExpenses -12.4 -8.8 - -4.8 -3.6 - -0.7 -0.5 - -0.3 -0.2 44.0%

FeesandAdmin.Expenses -291.7 -241.1 21.0% -78.2 -65.1 20.2% -15.6 -12.9 20.6% -4.1 -3.3 24.9%

ExternalAdvisorFees -198.2 -157.4 25.9% -53.5 -43.2 23.7% -10.6 -8.3 28.6% -2.8 -2.1 32.9%

Legal,Admin.andOtherProfessionalFees -52.1 -48.1 8.2% -14.0 -12.5 11.7% -2.7 -2.8 -0.4% -0.8 -0.7 3.1%

TrusteeFees -10.1 -6.5 53.8% -1.9 -2.2 -12.9% -0.5 -0.3 54.9% -0.1 -0.1 0.0%

Payroll -23.1 -22.5 2.7% -6.3 -4.5 39.9% -1.2 -1.2 1.2% -0.3 -0.2 45.0%

OtherExpenses -8.2 -6.5 27.2% -2.6 -2.6 -2.4% -0.4 -0.3 28.8% -0.1 -0.1 3.1%

EBITDA3 2,843.3 2,204.4 5.8% 749.2 584.4 34.3% 150.3 118.2 4.6% 39.6 29.6 33.9%

EBITDAMargin 83.0% 82.5% 42bps 83.6% 82.9% 67bps 83.0% 82.5% 42bps 83.6% 82.9% 67bps

(1)Excludesaccruedincomefromstraightlinerentadjustmentsasitisanon-cashitem.(2)ExcludestenantimprovementsreimbursementswhichisincludedinAFFOcalculation.(3)Earningsbeforeinterest,taxes,depreciationandamortization.Source:PGIMRealEstate-FundAccounting

ForadditionalinformationregardingthecommissionsandadministrativeexpensesbreakdownusedforthecalculationofEBITDAandAFFO,pleaserefertoAppendix3locatedinthelastsectionofthisdocument.

FinancingExpensesDuring2017,TerrafinaregisteredfinancingcostsofUS$50.6million.In4Q17,financingexpensestotaledUS$15.0million,anincreaseof50.4%orUS$5.0millioncomparedto4Q16.

FinancialExpenses 2017 2016 Var.% 4Q17 4Q16 Var.% 2017 2016 Var.% 4Q17 4Q16 Var.%

(millionsofpesos) 0

(millionsofdollars) 0

InterestPaid -861.7 -658.7 30.8% -229.1 -169.1 35.4% -45.6 -35.3 29.1% -12.1 -8.5 41.6%

BorrowingExpenses -105.6 -71.4 48.0% -56.5 -29.7 90.3% -5.5 -3.8 43.9% -3.0 -1.5 94.8%

Recurring -3.8 -1.9 107.6% -1.4 -0.2 608.0% -0.2 -0.1 86.6% -0.1 0.0 429.3%

NonRecurring -101.8 -69.5 46.4% -55.1 -29.5 86.8% -5.3 -3.7 42.7% -2.9 -1.5 91.7%

InterestIncome 8.7 5.6 54.7% 1.8 2.2 -15.9% 0.5 0.3 57.0% 0.1 0.1 -13.6%

Total -958.6 -724.4 32.3% -283.8 -196.7 44.3% -50.6 -38.8 30.3% -15.0 -10.0 50.4%Source:PGIMRealEstate-FundAccounting

18

FundsfromOperations(FFO)/AdjustedFundsfromOperations(AFFO)For the full year 2017, Terrafina’s FFO reached US$105.0 million and a 58.4% FFOmargin. Terrafina’s AFFO reachedUS$95.0million,witha52.4%AFFOmargin.

In4Q17,FFOincreasedbyUS$6.4million,or30.2%comparedto4Q16,reachingUS$27.5million.FFOMarginwas58.6%,a 68basis pointdecrease compared to 4Q16.Additionally, Terrafina reportedAFFOofUS$25.6million, an increaseofUS$5.3million,or24.0%comparedto4Q16.AFFOmarginwas54.1%,adecreaseof277basispointsversus4Q16.

FundsfromOperations(FFO) 2017 2016 Var.% 4Q17 4Q16 Var.% 2017 2016 Var.% 4Q17 4Q16 Var.%


EBITDA 2,843.3 2,204.4 29.0% 749.2 584.4 28.2% 150.3 118.2 27.2% 39.6 29.6 33.9%FinanceCost1 -856.8 -654.9 30.8% -228.7 -167.2 36.8% -45.3 -35.1 29.0% -12.1 -8.4 43.0%FundsfromOperations(FFO) 1,986.4 1,549.5 28.2% 520.5 417.3 24.7% 105.0 83.0 26.4% 27.5 21.1 30.2%FFOMargin 58.4% 58.0% 38bps 58.6% 59.2% -68bps 58.4% 58.0% 38bps 58.6% 59.2% -68bpsTenantImprovements -105.3 -116.0 -9.3% -22.8 -33.6 -32.1% -5.5 -6.2 -11.0% -1.2 -1.7 -29.3%LeasingCommissions -66.0 -64.3 2.7% -10.9 -15.6 -30.3% -3.5 -3.5 1.0% -0.6 -0.8 -26.7%OtherNonRecurring3 -16.8 21.6 - -1.9 32.3 - -0.9 1.2 - -0.1 1.7 -AdjustedFundsfromOperations(AFFO)

1,798.2 1,390.8 29.3% 484.9 400.4 45.2% 95.0 74.5 1.4% 25.6 20.4 24.0%

AFFOMargin 52.4% 52.7% -30bps 54.1% 56.8% -277bps 52.4% 52.7% -30bps 54.1% 56.8% -277bps(1)NetOperationalInterestExpensescomprisedbyinterestpaid,recurringborrowingexpensesandotherinterestincome.(2)Capexreserveformaintenanceactivities.(3)Relatedtoacquisitions,dispositions,legalexpensesandothers.Source:PGIMRealEstate-FundAccounting

ComprehensiveIncomeComprehensiveIncomeforFY2017reachedUS$32.0million.For4Q17,thisfigurereachedUS$143.9million,comparedtotheUS$43.4millionin4Q16.

ThefollowingtablepresentsthecalculationofComprehensiveIncomefor2017and4Q17:

ComprehensiveIncome 2017 2016 Var.% 4Q17 4Q16 Var.% 2017 2016 Var.% 4Q17 4Q16 Var.%


NetRevenues 3,491.6 2,703.0 29.2% 915.0 720.3 27.0% 184.4 145.0 27.2% 48.3 36.5 32.5%RealEstateExpenses -575.4 -555.7 3.5% -134.0 -152.2 -12.0% -30.0 -29.8 0.5% -7.1 -7.7 -8.1%FeesandOtherExpenses -414.0 -329.3 25.7% -98.3 -106.1 -7.4% -22.1 -17.6 25.9% -5.2 -5.4 -3.5%Gain(Loss)fromSalesofRealEstateProperties -54.9 56.5 - -52.5 47.1 - -2.9 3.0 - -2.8 2.4 -NetIncome(Loss)fromFairValueAdjustmentonInvestmentProperties 62.6 -235.9 - 72.3 -44.9 - 3.3 -12.6 - 3.8 -2.3 -

NetIncome(Loss)fromFairValueAdjustmentonDerivativeFinancialInstruments 28.5 0.0 - 19.4 0.0 - 1.5 0.0 - 1.0 0.0 -

NetIncome(Loss)fromFairValueAdjustmentonBorrowings -589.0 55.2 - 58.4 409.0 -85.7% -31.1 3.0 - 3.1 20.6 -85.0%

NetIncome(Loss)fromFairValueAdjustmentonLoansReceivable 0.0 0.0 - 0.0 0.0 - 0.0 0.0 - 0.0 0.0 -

ForeignExchangeGain(loss) 89.2 -67.8 - -45.2 -0.1 - 4.7 -3.6 - -2.4 0.0 -OperatingProfit 2,038.5 1,626.1 25.4% 735.1 873.1 -15.8% 107.7 87.3 23.4% 38.8 44.2 -12.1%FinancialIncome 8.7 5.6 54.7% 1.8 2.2 -15.9% 0.5 0.3 57.0% 0.1 0.1 -13.6%FinancialExpenses -967.3 -730.1 32.5% -285.6 -198.9 43.6% -51.1 -39.1 30.5% -15.1 -10.1 49.7%NetFinancialCost -958.6 -724.4 32.3% -283.8 -196.7 44.3% -50.6 -38.8 30.3% -15.0 -10.0 50.4%ShareofProfitfromEquityAccountedInvestments

18.8 47.6 -60.5% 7.1 4.2 70.2% 1.0 2.5 -61.0% 0.4 1.2 -68.5%

NetProfit(Loss) 1,098.7 949.2 15.7% 458.5 680.7 -32.6% 58.1 51.0 14.0% 24.2 35.4 -31.5%ItemsReclassifiedafterNetProfit(Loss)-CurrencyTranslationAdjustments -493.9 4,143.8 - 2,265.4 1,371.2 65.2% -26.1 222.0 - 119.7 73.5 63.0%

ComprehensiveIncome 604.8 5,093.1 -88.1% 2,723.8 2,051.8 32.8% 32.0 272.8 -88.3% 143.9 103.6 39.0%Source:PGIMRealEstate-FundAccounting

19

DistributionsperCBFIsIn 2017, Terrafina distributedUS$95.0million, orUS$0.1286 per CBFI. For 4Q17,US$25.6millionwere distributed, orUS$0.0324perCBFI.

Furthermore,itisimportanttomentionthatthetaxresultfortheperiodregisteredafiscalloss;therefore,andforfiscalpurposes,distributionsperCBFIshouldbeconsideredasacapitalreimbursementfortaxpurposes.

Distributions (millionsofpesosunlessotherwisestated) 1Q17 2Q17 3Q17 4Q17 2017 2016 Var.%

TotalOutstandingCBFIs1(millionsofCBFIs) 607.5 791.0 791.0 791.0 745.1 607.3 22.7%

CBFIPrice2 28.74 32.35 31.29 30.20 30.65 30.16 1.6%

Distributions 450.5 452.4 410.4 484.9 1,798.2 1,390.8 29.3%

DistributionsPerCBFI 0.7417 0.5720 0.5188 0.6130 2.4455 2.2897 6.8%

FXRateUSD/MXN(averageclosingperiod) 20.39 18.57 17.83 18.93 18.92 18.67 1.3%

Distributions(milliondollars) 22.1 24.3 23.0 25.6 95.0 74.5 27.6%

DistributionsPerCBFI(dollars) 0.0364 0.0308 0.0291 0.0324 0.1286 0.1226 4.9%

AnnualizedDistributionYield3 10.3% 7.1% 6.6% 8.1% 8.0% 7.6% 39bps(1)In2Q16,167,094CBFIswereaddedaspartofTerrafina´scompensationplan.NumberofCBFIsattheendofeachperiod(2)Averageclosingpricefortheperiod.(3)AnnualizeddistributionpersharedividedbytheaverageCBFIpriceofthequarter.Quarterlydistributionyieldcalculationhasbeenannualized.Source:PGIMRealEstate-FundAccounting

DebtAsofDecember31,2017,Terrafina’stotaldebtreachedUS$1,059.1million.TheaveragecostofTerrafina’slong-termdebtwas4.41%.AllofTerrafina’sdebtisdenominatedinU.S.dollars.

OutstandingDebt

(asofDecember31,2017)

Currency Millionsofpesos

Millionsofdollars

InterestRate

Terms Maturity ExtensionOption

Derivatives

LongTermDebt

Citibank1 Dollars 1,943.9 98.5 Libor+2.65% InterestOnly Aug2019 - US$120Mswap4/US$100Mcap5

Metlife Dollars 2,960.3 150.0 4.75% InterestOnly Jan2027 - -

Banamex2 Dollars 6,907.4 350.0 Libor+2.45% InterestOnly Oct2022 - US$100Mswap6

SeniorNotes3 Dollars 8,775.1 444.6 5.25% InterestOnly Nov2022 - -

NewYorkLife Dollars 314.2 15.9 5.19% InterestOnly Feb2020 - -

TotalDebt 20,900.8 1,059.1

NetCash 3,209.0 162.6

NetDebt 17,691.8 896.5 (1)Unsecuredsyndicatedrevolvingcreditfacility.(2)Unsecuredsyndicatedtermloanfacility;interestonlyforthefirstthreeyears.(3)ValueatCost:US$425million/Ps.8,388million.

(4)Swapfixedrate:1.286%.(5)Capstrikeprice:1.75%(6)Swapfixedrate:1.768%.

Source:PGIMRealEstate-FundAccountingandTransactions

20

The following tables show leverage anddebt service coverage as ofDecember 31, 2017 aswell as Terrafina’sprojectionsforthefollowingsixquarters:

Loan-to-Value(LTV)

(asofDecember31,2017)(millionsofpesos) (millionsof

dollars)

TotalAssets 50,686.6 2,568.3

TotalDebt 20,900.8 1,059.1

Loan-to-Value(LTV)1 41.2%(1)TotalDebtdividedbyTotalAssetsasdefinedbytheNationalSecuritiesandBankingCommission(CNBV)

Source:PGIMRealEstate-FundAccountingandCapitalMarkets

DebtServiceCoverageRatio(DSCR)

period (millionsofpesos) (millionsofdollars)

Cash&CashEquivalents December31,2017 3,209.0 162.6

RecoverableTaxes Σnext6quarters 683.5 34.6

EBIT1afterdistributions Σnext6quarters 4,881.3 247.3

AvailableCreditLine December31,2017 3,976.7 201.5

period (millionsofpesos) (millionsofdollars)

InterestPayments Σnext6quarters 1494.8 75.7

PrincipalPayments Σnext6quarters 17.2 0.9

RecurringCAPEX Σnext6quarters 276.6 14.0

DevelopmentExpenses Σnext6quarters 189.3 9.6

DebtServiceCoverageRatio(DSCR)2 6.4x

(1)EarningsBeforeInterestandTaxes(2)(Cash&CashEquivalents+RecoverableTaxes+EBITAfterDistributions+AvailableCreditLine)/(InterestPayments+PrincipalPayments+RecurringCAPEX+DevelopmentExpenses)Source:PGIMRealEstate-FundAccountingandCapitalMarkets

42.3%

57.7%

InterestRateBreakdown(asofDecember31,2017)

VariableRate FixedRate

21

Moreover,asofDecember31,2017,TerrafinawasinfullcompliancewithitsdebtcovenantsrelatedtotheUS$425millionbondissuance,asfollows:

UnsecuredBondCovenants (asofDecember31,2017) Terrafina BondCovenants

Loan-to-Value(LTV)1 41.2% ≤60%

DebtServiceCoverageRatio(DSCR)2 2.8x ≥1.5x

SecuredDebttoGrossAssetsLimitation 6.5% ≤40%UnencumberedAssetstoUnsecuredDebtLimitation 223% ≥150%

(1)TotalDebtdividedbyTotalAssets.(2)(NetIncome/Loss+InterestonDebt+UnrealizedGain/Lossoffairvaluechanges)/(allinterestandprincipalpaymentsonDebt)

Source:PGIMRealEstate-Transactions

22

AnalystCoverageThefollowingisalistofbanksandinstitutionsthatregularlypublishresearchreportsonTerrafina:-Barclays -Invex-BBVABancomer -ItaúBBA-Bradesco -JPMorgan-BofAML -Monex-BTGPactual -MorganStanley-BX+ -NAUSecurities-CitiBanamex -Scotiabank-CreditSuisse -Vector-GBM -Santander-HSBC -UBS-Interacciones

23

AboutTerrafinaTerrafina (BMV:TERRA13) is a Mexican real estate investment trust formed primarily to acquire, develop, lease andmanage industrial real estate properties in Mexico. Terrafina’s portfolio consists of attractive, strategically locatedwarehousesandotherlightmanufacturingpropertiesthroughouttheCentral,BajioandNorthernregionsofMexico.Itisinternallymanagedbyhighly-qualifiedindustryspecialistsandexternallyadvisedbyPGIMRealEstate.Terrafina owns 296 real estate properties, including 284 developed industrial facilities with a collective GLA ofapproximately40.6millionsquarefeetand12landreserveparcels,designedtopreservetheorganicgrowthcapabilityoftheportfolio.Terrafina’s objective is to provide attractive risk-adjusted returns for the holders of its certificates through stabledistributionsandcapitalappreciations.Terrafinaaimstoachievethisobjective throughasuccessfulperformanceof itsindustrialrealestateandcomplementaryproperties,strategicacquisitions,accesstoahighlevelofinstitutionalsupport,andtoitsmanagementandcorporategovernancestructure.Formoreinformation,pleasevisitwww.terrafina.mxPGIMRealEstatePGIMReal Estate is the real estate investment business of PGIM Inc., the global investmentmanagement business ofPrudentialFinancial, Inc. (NYSE:PRU). Redefining therealestate investing landscapesince1970,PGIMRealEstatehasprofessionals in 18 cities in theAmericas, EuropeandAsiaPacificwithdeep local knowledgeandexpertise, andgrossassetsundermanagementofUS$69.6billion(US$49.9billionnet)asofDecember31,2017.PGIMRealEstate’stenuredteamoffers to itsglobal clientbaseabroad rangeof realestateequity,debtandsecurities investment strategies thatspantherisk/returnspectrum.Formoreinformation,visitwww.pgimrealestate.comAboutPrudentialFinancial,Inc.PrudentialFinancial,Inc.(NYSE:PRU),afinancialservicesleaderwithmorethanUS$1trillionofassetsundermanagementasofDecember31,2017,hasoperationsintheUnitedStates,Asia,Europe,andLatinAmerica.Prudential’sdiverseandtalented employees are committed to helping individual and institutional customers grow and protect their wealththroughavarietyofproductsandservices, includinglife insurance,annuities,retirement-relatedservices,mutualfundsandinvestmentmanagement.IntheU.S.,Prudential’siconicRocksymbolhasstoodforstrength,stability,expertiseandinnovationformorethanacentury.Formoreinformation,pleasevisitwww.news.prudential.comForwardLookingStatementsThisdocumentmayincludeforward-lookingstatementsthatmayimplyrisksanduncertainties.Termssuchas"estimate","project", "plan", "believe", "expect", "anticipate", "intend", and other similar expressions could be construed asprevisionsorestimates.Terrafinawarnsreadersthatdeclarationsandestimatesmentionedinthisdocument,orrealizedbyTerrafina’smanagementimplyrisksanduncertaintiesthatcouldchangeinfunctionofvariousfactorsthatareoutofTerrafina’scontrol.FutureexpectationsreflectTerrafina’sjudgmentatthedateofthisdocument.Terrafinareservestherightorobligationtoupdatetheinformationcontainedinthisdocumentorderivedfromthisdocument.Pastorpresentperformanceisnotanindicatortoanticipatefutureperformance.

24

ConferenceCall

(BMV:TERRA13)Cordiallyinvitesyoutoparticipateinits

FourthQuarter2017Results

Wednesday,February28,201811:00a.m.EasternTime10:00a.m.CentralTime

***

Toaccessthecall,pleasedial:fromwithintheU.S.1-877-888-4291fromoutsidetheU.S.1-785-424-1878ConferenceIDNumber:Terrafina

AudioWebcastLink:https://www.webcaster4.com/Webcast/Page/1111/24202

ConferenceReplayU.S.1-844-488-7474

International(outsidetheUS)1-862-902-0129Passcode:19181332

25

AppendixAppendix1–RevenuesTerrafina’srevenuesaremainlyclassifiedasrentalrevenuesandotheroperatingreimbursablerevenues.Additionally,thereareaccountingrevenuesthatmustberegisteredaccordingwithIFRS;however,theseareconsideredasnon-cashitemsandthereforeareexcludedinsomecalculations.ReimbursabletenantimprovementsareincludedinthetenantimprovementexpensesfortheAFFOcalculation.

Revenues

2017 2016 4Q17 4Q16 2017 2016 4Q17 4Q16


NOIcalculation RentalRevenue 3,157.7 2,460.2 828.6 660.8 166.9 131.7 43.8 33.4

NonCash AccruedIncome1 30.6 34.7 15.6 7.4 1.7 1.9 0.8 0.4

OtherOperatingRevenues 303.3 208.1 70.8 52.1 15.8 11.3 3.8 2.8

NOIcalculation ReimbursableExpensesasRevenues2 247.4 154.4 60.4 39.6 12.9 8.4 3.2 2.1

AFFOcalculation ReimbursableTenantImprovements 31.1 23.5 7.6 7.4 1.7 1.3 0.4 0.4

NonCash Othernon-cashincome 24.8 30.1 2.8 5.1 1.2 1.7 0.1 0.3

NetRevenue 3,491.6 2,703.0 915.0 720.3 184.4 145.0 48.3 36.5

NOIcalculationShareofProfitfromEquityAccounted

Investments225.0 55.4 7.1 4.4 1.4 3.0 0.4 0.2

(1)Straightlinerentadjustment.(2)TriplenetleasesexpensesreimbursedtoTerrafinafromitstenants.(2)Profitfromjoint-venturedevelopments.


26

Appendix2–RealEstateExpensesReal estate expenses are comprised of recurring figures relatedwith the operation (used for theNetOperating Profitcalculation) as well as non-recurring figures used for metric calculations such as Earnings Before Interests, Taxes,DepreciationandAmortization(EBITDA),FundsfromOperations(FFO),AdjustedFundsfromOperations(AFFO).Thefollowingtablepresentstherealestateexpenses’breakdown,whichareusedforthecalculationofseveralmetrics.

RealEstateExpenses

2017 2016 4Q17 4Q16 2017 2016 4Q17 4Q16

(millionofpesos) (millionofdollars)

RepairandMaintenance -169.6 -166.9 -38.1 -47.5 -9.0 -8.9 -2.0 -2.4

NOIcalculation Recurring -33.1 -27.3 -7.7 -6.6 -1.8 -1.5 -0.4 -0.3

AFFOcalculation NonRecurring -136.4 -139.6 -30.4 -41.0 -7.2 -7.5 -1.6 -2.1

PropertyTaxes -76.1 -107.8 -5.4 -29.0 -3.6 -5.9 -0.3 -1.5

NOIcalculation Operating -66.4 -50.2 0.0 -0.2 -3.1 -2.8 0.0 0.0

NonCash NonOperating -9.7 -57.6 -5.4 -28.7 -0.5 -3.1 -0.3 -1.5

NOIcalculation PropertyManagementFees -68.5 -56.7 -18.5 -14.7 -3.6 -3.0 -1.0 -0.7

NOIcalculation Electricity -50.8 -27.0 -13.1 -8.4 -2.7 -1.4 -0.7 -0.4

AFFOcalculation BrokersFees -66.0 -64.3 -10.9 -15.6 -3.5 -3.5 -0.6 -0.8

PropertyInsurance -28.3 -24.6 -15.7 -14.3 -1.5 -1.3 -0.8 -0.7

NOIcalculation Operating -25.1 -20.9 -15.0 -13.4 -1.3 -1.1 -0.8 -0.7EBITDA

calculation Administrative -3.2 -3.7 -0.7 -1.0 -0.2 -0.2 0.0 0.0

NOIcalculation Security -13.4 -12.3 -3.0 -3.0 -0.7 -0.7 -0.2 -0.2EBITDA

calculationAdvertising -0.5 -1.6 0.0 -0.3 0.0 -0.1 0.0 0.0

OtherExpenses -80.4 -59.0 -27.8 -10.3 -4.2 -3.2 -1.5 -0.5

NOIcalculation OperationalRelated -21.7 -15.8 -5.8 -4.3 -1.2 -0.8 -0.3 -0.2

NonCash NonOperationalRelated -46.3 -34.4 -17.2 -2.5 -2.4 -1.9 -0.9 -0.1EBITDA

calculationAdministrative -12.4 -8.8 -4.8 -3.6 -0.7 -0.5 -0.3 -0.2

NonCash BadDebtExpense -21.8 -35.3 -1.4 -9.1 -1.1 -1.9 -0.1 -0.5

TotalRealEstateExpenses -575.4 -555.7 -134.0 -152.2 -30.0 -29.8 -7.1 -7.7

Source:PREI-FundAccounting

27

Appendix3–FeesandAdministrativeExpensesFeesandadministrativeexpenses include figuresused formetric calculations suchasEarningsbefore Interests, Taxes,DepreciationandAmortization(EBITDA),FundsfromOperations(FFO),AdjustedFundsfromOperations(AFFO).Terrafina’sfeesandadministrativeexpensesbreakdownisavailableinthefollowingtableandindicatesthefiguresusedforthecalculationofthesemetrics:

FeesandAdministrativeExpenses

2017 2016 4Q17 4Q16 2017 2016 4Q17 4Q16

(millionofpesos) (millionofdollars)

EBITDAcalculation ExternalAdvisorFees -198.2 -157.4 -53.5 -43.2 -10.6 -8.3 -2.8 -2.1

LegalFees -19.6 -19.5 -7.6 -8.6 -1.1 -1.0 -0.4 -0.4

EBITDAcalculation Recurring -1.0 -2.7 -0.1 -0.5 -0.1 -0.1 0.0 0.0


OtherProfessionalFees -20.5 -16.1 -4.7 -3.6 -1.1 -1.0 -0.3 -0.3

EBITDAcalculation Recurring -13.1 -8.4 -3.0 -1.6 -0.7 -0.6 -0.2 -0.2


AdministrativeFees -134.3 -100.7 -21.7 -41.3 -7.2 -5.4 -1.1 -2.1

EBITDAcalculation Recurring -37.9 -37.0 -10.8 -10.5 -2.0 -2.0 -0.6 -0.5NonOperational

related NonRecurring1 -96.3 -63.7 -10.9 -30.9 -5.2 -3.4 -0.6 -1.6

EBITDAcalculation Payroll -23.1 -22.5 -6.3 -4.5 -1.2 -1.2 -0.3 -0.2

EBITDAcalculation TrusteeFees -10.1 -6.5 -1.9 -2.2 -0.5 -0.3 -0.1 -0.1

EBITDAcalculation OtherExpenses -8.2 -6.5 -2.6 -2.6 -0.4 -0.3 -0.1 -0.1

TotalFeesandAdmin.Expenses -414.0 -329.3 -98.3 -106.1 -22.1 -17.6 -5.2 -5.4

(1)Nonoperationalrelatedadministrativefees.


28

Appendix4–ReconciliationReconciliationofNetProfit(Loss)toFFO,EBITDAandNOI

2017 4Q17 2017 4Q17 (millionsofpesos) (millionsofdollars)

ComprehensiveIncome(Loss) 604.8 2,723.8 32.0 143.9Add(deduct)CurrencyTranslationAdjustment: CurrencyTranslationAdjustment 493.9 -2265.4 26.1 -119.7

Add(deduct)CostofFinancingAdjustment: NonRecurringBorrowingExpenses 101.8 55.1 5.4 2.9

Add(deduct)Non-CashAdjustment: ForeignExchangeAdjustments -89.2 45.2 -4.7 2.4FairValueAdjustmentonBorrowings 589.0 -58.4 31.1 -3.1FairValueAdjustmentonDerivativeFinancialInstruments -28.5 -19.4 -1.5 -1.0FairValueAdjustmentonInvestmentProperties -62.6 -72.3 -3.3 -3.8Gain(Loss)fromSalesofRealEstateProperties 54.9 0.0 2.9 0.0

Add(deduct)ExpensesAdjustment: NonRecurringRepairandMaintenance 136.4 30.4 7.2 1.6NonOperatingPropertyTaxes 9.6 5.4 0.5 0.3BrokersFees 66.0 10.9 3.5 0.6BadDebtExpense 21.7 1.4 1.1 0.1OtherNonOperationalRelatedExpenses 46.2 17.2 2.4 0.9NonRecurringLegalFees 18.5 7.5 1.0 0.4NonRecurringOtherProfessionalFees 7.3 1.7 0.4 0.1

Add(deduct)RevenuesAdjustment: AccruedIncome -30.7 -15.6 -1.6 -0.8OtherNon-CashIncome -24.9 -2.8 -1.3 -0.1ReimbursableTenantImprovements -31.1 -7.6 -1.6 -0.4

Add(deduct)NonOperationalAdministrativeFees NonOperationalAdministrativeFees 103.6 10.9 5.5 0.6

FFO 1,986.4 520.5 105.0 27.5Add(deduct)CostofFinancingAdjustment: InterestPaid 861.7 229.1 45.5 12.1RecurringBorrowingExpenses 3.8 1.4 0.2 0.1InterestIncome -8.7 -1.8 -0.5 -0.1

EBITDA 2,843.3 749.2 150.3 39.7Add(deduct)ExpensesAdjustment: ExternalAdvisorFees 198.2 53.5 10.5 2.8RecurringLegalFees 1.0 0.1 0.1 0.0RecurringOtherProfessionalFees 13.1 3.0 0.7 0.2AdministrativeFees 37.9 10.8 2.0 0.6Payroll 23.1 6.3 1.2 0.3TrusteeFees 10.1 1.9 0.5 0.1OtherExpenses 8.2 2.6 0.4 0.1Advertising 0.5 0.0 0.0 0.0AdministrativePropertyinsurance 3.2 0.7 0.2 0.0OtherAdministrativeExpenses 12.4 4.8 0.7 0.3

NOI 3,151.1 832.9 166.6 44.1Add(deduct)ExpensesAdjustment: RecurringRepairandMaintenance 33.1 7.7 1.8 0.4OperatingPropertyTaxes 66.4 0.0 3.5 0.0PropertyManagementFees 68.5 18.5 3.6 1.0Electricity 50.8 13.1 2.7 0.7OperatingPropertyInsurance 25.1 15.0 1.3 0.8Security 13.4 3.0 0.7 0.2OtherOperationalExpenses 21.7 5.8 1.1 0.3

Add(deduct)RevenuesAdjustment: OtherNon-CashIncome 24.8 2.8 1.3 0.1AccruedIncome 30.6 15.6 1.6 0.8ReimbursableTenantImprovements 31.1 7.6 1.6 0.4ShareofProfitfromEquityAccountedInvestments -25.0 -7.1 -1.3 -0.4

NetRevenue 3,491.6 915.0 184.4 48.3

29

ReconciliationofNetProfit(Loss)toAFFO 2017 4Q17 2017 4Q17


ComprehensiveIncome(Loss) 604.8 2,723.8 32.0 143.9Add(deduct)CostofFinancingAdjustment: NonRecurringBorrowingExpenses 493.9 -2,265.4 26.1 -119.7

Add(deduct)CostofFinancingAdjustment: NonRecurringBorrowingExpenses 101.8 55.1 5.4 2.9

Add(deduct)Non-CashAdjustment: ForeignExchangeAdjustments -89.2 45.2 -4.7 2.4FairValueAdjustmentonBorrowings 589.0 -58.4 31.1 -3.1FairValueAdjustmentonDerivativeFinancialInstruments -28.5 -19.4 -1.5 -1.0FairValueAdjustmentonInvestmentProperties -62.6 -72.3 -3.3 -3.8Gain(Loss)fromSalesofRealEstateProperties 63.4 59.8 3.4 3.2

Add(deduct)ExpensesAdjustment: NonOperatingPropertyTaxes 9.7 5.4 0.5 0.3BadDebtExpense 21.8 1.4 1.1 0.1OtherExpensesNonOperationalRelated 46.3 17.2 2.4 0.9

Add(deduct)RevenuesAdjustment: AccruedIncome -30.6 -15.6 -1.6 -0.8OtherNon-CashIncome -24.8 -2.8 -1.3 -0.1

Add(deduct)NonOperationalAdministrativeFees NonAdministrativeFees 103.7 10.9 5.5 0.6

AFFO 1,798.2 484.9 95.0 25.6

30

Appendix5-CapRateCalculationTerrafinasubtractscashandlandreservesforthecapratecalculation.ImpliedcaprateandunderNAV(NetAssetValue)calculationareshowninthefollowingtables:

ImpliedCapRate

2017AveragePrice(dollars)¹ 1.62

(x)CBFIs(millionshares) 791.0

(=)MarketCapitalization 1,281.4

(+)TotalDebt 1,059.1

(-)Cash 162.6

(=)EnterpriseValue 2,177.9

(-)Landbank 52.7

(=)ImpliedOperatingRealEstateValue 2,125.2

NetOperatingIncome(NOI)2018e 185.0

ImpliedCapRate 8.7%

Figuresexpressedinmillionsofdollarsunlessotherwisestated.

(1)AveragesharepriceofPs.30.65andexchangerateofPs.18.9189.

CapRateCalculationwithNAV

(+)InvestmentProperties(excludinglandbank) 2,328.8

(+)Land 52.7

(+)Cash 162.6

(-)TotalDebtandLiabilities 1,059.1

(=)NAV1 1,485.0

(/)CBFIs(millionshares) 791.0

(=)NAVperCBFI(dollars) 1.9

CBFIPrice(NAVcalculation) 1.9

(x)CBFIs(millionshares) 791.0

(=)MarketCap 1,485.0

(+)TotalDebtandLiabilities 1,059.1

(-)Cash 162.6

(=)EnterpriseValue 2,381.5

(-)Landbank 52.7

(=)ImpliedOperatingRealEstateValue 2,328.8

NetOperatingIncome(NOI)2018e 185.0

ImpliedCapRate 7.9%

31

FinancialStatements

IncomeStatement

4Q17 2017 4Q17 2017

(thousandsofpesos) (thousandsofdollars)

Rentalrevenues

$844,218 $3,188,286 $44,606 $168,524

Otheroperatingincome

70,791 303,300 3,740 16,032

Realestateoperatingexpenses

(135,056) (576,439) (7,136) (30,469)

Feesandotherexpenses

(98,306) (414,024) (5,194) (21,884)

Realizedgainfromdisposalofinvestmentproperties

(52,466) (54,942) (2,772) (2,904)

Netgain(loss)fromfairvalueadjustmentoninvestmentproperties

72,303 62,557 3,820 3,307

Netgain(loss)fromfairvalueadjustmentonborrowings

58,434 (589,022) 3,088 (31,134)

Netgain(loss)fromfairvalueadjustmentonloansreceivable

- - - -

Net(loss)gainunrealizedfromfairvalueonderivativefinancialinstruments

19,397 28,487 1,025 1,506

Foreignexchange(loss)gain

(45,248) 89,202 (2,391) 4,715

Operatingprofit 734,067 2,037,405 38,786.39 107,692

Financeincome

1,826 8,707 96 460

Financecost

(284,581) (966,268) (15,037) (51,074)

Financecost-net (282,755) (957,561) (14,940) (50,614)

Shareofprofitfromequityaccountedinvestments

7,148 18,807 378 994

NetProfitfortheperiod 458,460 1,098,651 24,224 58,072

Itemsthatmaybesubsequentlyreclassifiedtoprofitorloss-currencytranslationdifferences 2,265,352 (493,878) 119,696 (26,105)

TotalComprehensiveincomefortheperiod 2,723,812 604,773 143,920 31,967

32

FinancialStatements

BalanceSheet Dec-31-17 Sep-30-17 Dec-31-17 Sep-30-17(thousandsofpesos) (thousandsofpesos) (thousandsofdollars)

Assets Non-currentassets

Investmentproperties $45,959,558 $39,048,450 $2,328,788 $2,145,767(Cost:31/12/2017-Ps.44,811,102,US$2,270,595;30/09/2017-Ps.38,231,624,US$2,100,881)

Investmentsaccountedusingequitymethod 433,762

379,146 21,979

20,835Derivativefinancialinstruments 30,015

9,192 1,521

505

Deferredchargesandaccruedincome 167,548- - 8,490

- -

Loanreceivable 38,364

35,670 1,944

1,960(Cost:31/12/2017-Ps.38,364,US$1,944;30/09/2017-Ps.35,360,US$1,943) Currentassets Otherassets 25,832 59,258 1,309 3,256Loanreceivable 1,244 1,131 63 62(Cost:31/12/2017-Ps.1,244,US$63;30/09/2017-Ps.1,131,US$62) Recoverabletaxes 683,535

279,736 34,635

15,372

Prepaidexpenses 11,772 3,584 596 197Acquisitionprepayment - 614 - 34Deferredchargesandaccruedincome 30,630 167,781 1,552 9,220Accountsreceivable 58,638 76,634 2,971 4,211(Netofallowancefordoubtfulaccounts:31/12/2017-Ps.30,728,US$1,557;30/09/2017-Ps.28,055,US1,542)

Restrictedcash 36,660 33,766 1,858 1,855

Cashandcashequivalents 3,209,041 6,658,691 162,603 365,904

Totalassets 50,686,599 46,753,653 2,568,309 2,569,178

NetassetsattributabletoInvestors Contributions,net 19,844,088 19,844,088 1,005,507 1,090,460Retainedearnings 48,063

- 2,435

-

Currencytranslationadjustment 9,169,409 6,904,057 464,617 379,388

Totalnetassets(NetEquity) 29,061,560 26,748,145 1,472,560 1,469,848

Liabilities Non-currentliabilities

Borrowings 20,889,561

19,256,799 1,058,482

1,058,188

(Cost:31/12/2017-Ps.20,502,056,US$1,038,847;30/09/2017-Ps.18,843,797,US$1,035,493) Tenantdeposits 332,077 242,213 16,826 13,310Accountspayable 4,527

3,971 229

218

Currentliabilities

Tradeandotherpayables 330,901 449,837 16,767 24,719Borrowings 11,281 10,269 572 564(Cost:31/12/2017-Ps.11,281,US$572;30/09/2017-Ps.10,269,US$564) Tenantdeposits 56,692 42,419 2,873 2,331

Totalliabilities(excludingnetassetsattributabletotheInvestors) 21,625,039 20,005,508 1,095,749 1,099,331

Totalnetassetsandliabilities 50,686,599 46,753,653 2,568,309 2,569,178

33

FinancialStatements

CashFlowStatement Dec-17 Dec-17

(thousandsofpesos) (thousandsofdollars)

Cashflowsfromoperatingactivities (Loss)profitfortheperiod $1,098,651 $55,669

Adjustments: Netloss(gain)unrealizedfromfairvalueadjustmentoninvestmentproperties (62,557) (3,170)

Netloss(gain)unrealizedfromfairvalueadjustmentonborrowings 589,022 29,846Netloss(gain)unrealizedfromfairvalueadjustmentonderivativefinancialinstruments (28,487) (1,443)Realizedgainfromdisposalofinvestmentproperties 54,942 2,784

Baddebtexpense 31,581 1,600

Interestexpense 861,708 43,663

Interestincomeonbankaccounts (6,557) (332)

Shareofprofitfromequityaccountedinvestments (18,807) (953)

Decrease(increase)deferredrentsreceivable (24,817) (1,257)

Decrease(increase)inrestrictedcash 52,477 2,659

Decrease(increase)inaccountsreceivable (46,803) (2,372)

Decrease(increase)inrecoverabletaxes (533,753) (27,045)

Decrease(increase)inprepaidexpenses 613 31

Decrease(increase)inotherassets 85,425 4,329

Decrease(increase)intenantdeposits 149,082 7,554

(Decrease)inaccountspayable 34,869 1,767

Netcash(usedin)generatedfromoperatingactivities 2,236,589 113,329

Cashflowsfrominvestingactivities Acquisitionssofinvestmentproperties (13,270,159) (672,404)

Improvementsofinvestmentproperties (204,944) (10,385)

Proceedsfromdispositionsofinvestmentproperties 197,677 10,016

Acquisitionprepayment 9,809 497

Interestincomeonbankaccounts 6,557 332

Investmentsinjointventure (155,656) (7,887)

Loansreceivablepayment 1,113 56

Netcash(usedin)generatedfrominvestingactivities (13,415,603) (679,774)

Cashflowsfromfinancingactivities Proceedsfromborrowings 16,454,874 833,775

Principalpaymentsonborrowings (9,557,278) (484,271)

Interestexpense (861,708) (43,663)

Distributionstoinvestors (1,713,691) (86,833)

CBFIsequityissuance 5,390,049 273,116

Netcash(usedin)generatedfromfinancingactivities 9,712,246 492,123

Net(decrease)incashandcashequivalents (1,466,768) (74,322)

Cashandcashequivalentsatthebeginningoftheperiod 4,297,096 217,735

Exchangeeffectsoncashandcashequivalents 378,713 19,190

Cashandcashequivalentsattheendoftheperiod $3,209,041 $162,603

34

FinancialStatements AttributabletoInvestors

StatementofChangesinEquity Netcontributions

Currencytranslationadjustment

Retainedearnings Netassets

(thousandsofpesos) BalanceatJanuary1,2017 $14,782,859 $9,663,287 $334,283 $24,780,429CapitalContribution,NetofIssuingCosts 5,390,049 - - 5,390,049DistributionstoInvestors (328,820) - (1,384,871) (1,713,691)ComprehensiveIncome Netlossoftheperiod - - 1,098,651 1,098,651OtherComprehensiveIncome CurrencyTranslation - (493,878) - (493,878)TotalComprehensive(loss)income - (493,878) 1,098,651 604,773

NetAssetsasofDecember31,2017 $19,844,088 $9,169,409 $48,063 $29,061,560

(thousandsofdollars)

BalanceatJanuary1,2017 $781,380 $510,774 $17,669 $1,309,824

CapitalContribution,NetofIssuingCosts 284,903 - - 284,903

DistributionstoInvestors (17,381) - (73,200) (90,581)

ComprehensiveIncome Netlossoftheperiod - - 58,072 58,072

OtherComprehensiveIncome CurrencyTranslation - (26,105) - (26,105)

TotalComprehensive(loss)income - (26,105) 58,072 31,967

NetAssetsasofDecember31,2017 $1,048,903 $484,669 $2,540 $1,536,113

Documents

FOURTH QUARTER AND FULL YEAR 2017 … 1Tel: +52 (55) 5279 Contacts in Mexico City: Francisco Martinez Investor Relations Officer -8107 E-mail: [email protected] Contacts