This newsletter discusses:
-Compliance and Disclosure Interpretations on the use of Non-GAAP Financial Measures-
The Securities and Exchange Commission (the "SEC") has been warning about growing misuse of non-GAAP financial measures ("NGFMs"); and decided to take matters into action.
On May 17, 2016, the SEC's Division of Corporation Finance released new and updated Compliance and Disclosure Interpretations ("C&DIs") on the use of NGFMs that demonstrate the SEC's tightening policy. The C&DIs challenge practices that were previously considered permissible and indicate various types of practices that will likely prompt SEC scrutiny.
In this issue, i-advize discusses how Latin American companies can take advantage of the updated C&DIs to improve their best practices on financial reporting.
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To read The SEC's Release on the new C&DIs on the use NGFMs
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UPCOMING CONFERENCE CALLS
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For o
ur 2Q16
Upcoming C
onference Call Schedule
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We would love to hear from
YOU!
What topics would you like to see in our next issue?
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U.S. SEC Gets Tough on Non-GAAP Reporting: Key Takeaways for Latin American Issuers
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The U.S. Securities and Exchange Commission ("SEC") is cracking down regarding the use of non-GAAP financial measures and impacting how American publicly-traded companies disclose financial information. According to the SEC, some non-GAAP financial measures, widely used by companies, may be misleading to the investment community...
For Latin American issuers there is no immediate reporting requirement change. The majority of companies in the region now report under International Financial Reporting Standards (IFRS) in order to make company accounts understandable and comparable across international boundaries. IFRS and U.S. GAAP are markedly different, but both seek the same objective; to provide standard financial measures in a world full of unique companies and accounting standards...
i-advize believes that LatAm issuers would greatly benefit by taking a fresh look at their financial disclosure and clarifying any information that may be construed as misleading. Certain commonly used metrics, such as Adjusted EPS and EBITDA can be interpreted differently and even erroneously. Thus, any non-IFRS financial measure should be fully explained, and reconciled to the nearest IFRS measure...
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Mexican Fibras: Making a Statement at NAREIT
REITWeek® 2016
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New York City, June 7-9, 2016
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From June 7 to 9 of 2016, some of the top Mexican Fibras attended the REITWeek® 2016: NAREIT's Investor Forum focused in Real Estate Investment Trusts (REITs), which was held at the Waldorf Astoria Hotel in New York City. The forum, which is held annually, was attended by over 230 global REITS of all specialties
[1]
to share their business outlook, perspectives and stories with institutional investors, analysts and members of the media.
This year, there were 6 in attendance, including three i-advize clients, the highest number of Fibras to ever attend this renowned conference.
Fibra Inn (BMV: FINN13, OTC: DFBRY)
, primarily formed to acquire, develop and rent a broad range of hotel properties aimed at the business traveler presented at the conference and held one-on-one meetings with portfolio managers, analysts and members of the media. Additionally, Terrafina (BMV: TERRA13), dedicated to the acquisition, development, lease and management of industrial real estate properties in Mexico, offered a compelling presentation as well as held one-on-one meetings. Both presentations were moderated by Barclays and were well attended. Fibra Monterrey (BMV: FMTY14), a Fibra focused on the acquisition, administration, development and operation of corporate properties in Mexico - also attended the conference.
Other presenters included Fibra Uno (BMV: FUNO11), Fibra Macquarie (BMV: FIBRAMQ) and Fibra Prologis (BMV: FIBRAPL14).
Fibras were first introduced in 2010 in Mexico. More recently, Fibras have gained traction by capitalizing on increasing investor interest, improving economic conditions and favorable government reforms. Currently, there are 10 Fibras trading on the Mexican Stock Exchange.
[1] Data centers, diversified, health care, industrial, infrastructure, lodging/resorts, mortgage, office, residential, retail, self-storage, specialty and timber.
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