Cash Distribution

Fibra HD is subject to the tax regime applicable to a Mexican REIT, in accordance with Articles 187 and 188 of Mexico’s Income Tax Law, which requires a Mexican REIT to distribute at least once a year, no later than March 15, at least 95% of the Taxable Income recorded in the previous year. Fibra HD’s taxable income is calculated in accordance with Article 13 of the Mexican Income Tax Law, considering the cumulative income obtained during the full year and subtracting the authorized deductions; the profit thus obtained must be reduced by the loss of previous years pending to be amortized. Cash Distributions will be made proportionally among all Holders according to the CBFIs they own.

Cash Distributions will be made as long as there are liquid resources in the Distributions Account and as long as the following requirements are met:

• (i) That the Technical Committee approves the Trust’s financial statements, based on which the payment of Cash Distributions is intended to be made;
• (ii) That the Technical Committee approves the amount of the Cash Distribution in accordance with Section VI of Article 187 of Mexico’s Income Tax Law, subject to the opinion of the Audit Committee; and
• (iii) iii. That the Advisor and Administrator, in accordance with the resolution of the Technical Committee, instructs the Trustee deliver Cash Distributions to the Holders, based on the amount approved by the Technical Committee and the number of CBFIs outstanding.

It is important to note that as of September 30, 2022, no Cash Distributions have been made to the Holders, since no taxable income has been generated, largely due to the projects under development.