Prologis Property Mexico, S.a. De C.v. · BMV:FIBRAPL/14
Prologis Property Mexico, S.a. De C.v — FIBRA Prologis — Investor Presentation (September 2021)
37 slides from Prologis Property Mexico, S.a. De C.v's investor presentation, September 2021
Slide 1: FIBRA Prologis Investor Presentation September 2021
Prologis Park Apodaca FIBRA PROLOGIS Investor Presentation September 2021
Slide 2: Forward-Looking Statements / Non Solicitation
Forward-Looking Statements / Non Solicitation This presentation includes certain terms and non-IFRS financial measures that are not specifically defined herein. These terms and financial measures are defined and, in the case of the non-IFRS financial measures, reconciled to the most directly compara
Slide 3: Resilient Investment Strategy
Prologis Tres Rios Industrial Park, Mexico City Resilient Investment Strategy
Slide 4: FIBRA Prologis at a Glance
FIBRA Prologis at a Glance FIBRA Prologis is a leading Mexican real estate investment trust KEY FINANCIAL AND OPERATIONAL METRICS (2) formed to acquire, own and manage Class-A industrial real estate in 2015 Today Mexico 44.4 Stock Price 26.0 Irreplaceable industrial real estate in Mexico in the six
Slide 5: Unmatched Portfolio Focused on the Top Consumption and Manufacturing Markets
Unmatched Portfolio Focused on the Top Consumption and Manufacturing Markets 6 Markets Tijuana 96.4% Ciudad Juarez GLA 4.2 MSF GLA 3.4 MSF Occupancy(1) 100.0% Occupancy 94.9% Occupancy 40.2 Reynosa Million Square Feet GLA 4.7 MSF 93.3% Occupancy 206 Operating Properties(2) Monterrey GLA 5.6 MSF 16.4
Slide 6: Real Estate Fundamentals
Real Estate Fundamentals DEMAND (TTM) VS SUPPLY (PIPELINE) DEMAND VS SUPPLY VACANCY (MSF) (MSF) (%) • Market vacancy at healthy 28 10 low levels in the six main logistics markets Reynosa 24 8 • Border markets remain severely constrained with Juarez 20 market vacancy around 2% 16 6 • Vacancy in the s
Slide 7: Attractive value opportunity present in Mexico
Attractive value opportunity present in Mexico Market cap rate % • Recent deal flow suggests strong foreign capital interests in Mexico 8 • Among the few value opportunities available globally 7 • Positive foreign capital interest in key submarkets such as Apodaca 6 • Compelling opportunity for near
Slide 8: Nearshoring as a Rising Structural Demand Driver
Nearshoring as a Rising Structural Demand Driver Global supply chain trends underpin the future of Mexican logistics real estate TOTAL MANUFACTURED GOODS IMPORTS FROM MEXICO AS % OF IMPORTS FROM ASIAN LOW-COST COUNTRIES 52% Efficiency Regionalization Resiliency 50% inventory is waste inventory as a
Slide 9: E-commerce strengthening the expansion
E-commerce strengthening the expansion By 2025, E-commerce in Mexico will grow 226%, representing a 58% growth in retail earnings3 • E-commerce becoming an added tailwind for logistics E-COMMERCE SALES AND PENETRATION RATE1 E-COMMERCE SUPPLY CHAIN EFFICIENCY2 real estate demand, USD$ B, constant fx
Slide 10: Last Touch®: Location Matters
Last Touch®: Location Matters Ensuring our customers have the facilities they need in large, dense, supply-constrained urban areas CONTINUUM OF LOGISTICS REAL ESTATE LOCATION REQUIREMENTS Production Consumption Raw International Retail material manufacturing/ centers supplies Order consolidation San
Slide 11: Low Risk Business Model
Centro Industrial Juarez, Ciudad Juarez Low Risk Business Model
Slide 12: Potential Market Rental Growth
Potential Market Rental Growth Market rent in 2021 is expected to have a low double-digit growth LEASE EXPIRY PROFILE BY ANNUALIZED NER & AVERAGE IN-PLACE RENT 23% 18% 15% 13% 10% 6% 7% 4% 3% $5.61 $5.44 $5.24 $5.41 $5.58 $5.61 $5.51 $6.05 $6.21 2021 2022 2023 2024 2025 2026 2027 2028 2029+ PORTFOLI
Slide 13: Diversified Customer Base
Diversified Customer Base 222 CUSTOMER TYPE CUSTOMER INDUSTRY %, NER basis %, NRA basis customers in Mexico have 21% 16% 3% 7% 325 leases with FIBRA 15% 15% Prologis 20% B2B 10% 9% 9% 38% 8% 86% of FIBRA Prologis’ 14% 7% customers are multinational 4% 3% companies(1) Retail 3PL E- Commerce Our top 1
Slide 14: External Growth: Identified Future Growth Acquisitions
External Growth: Identified Future Growth Acquisitions EXTERNAL GROWTH VIA PROLOGIS DEVELOPMENT PIPELINE (MSF) Prologis & FIBRAPL UNIQUE COMPETITIVE ADVANTAGE Development Land Bank & Pipeline Expansion Land(1) • Proprietary access to Prologis FIBRAPL Portfolio development pipeline at market values •
Slide 15: Strong Financial Position
Strong Financial Position BBB/BBB+ rated by Fitch/HR Ratings1 DEBT METRICS Q2 2021 DEBT MATURITY SCHEDULE Total debt $842M (USD$ in millions) Wtd avg rate 3.5% $275 Unsecured Debt $1 Secured Debt USD denominated 100% Wtd avg term 7.4 yrs $125 $125 $125 $107 $70 Green debt 52.9% $15 Available liquidi
Slide 16: Best Practices Oriented to Create Value
Los Altos 5, Guadalajara Best Practices Oriented to Create Value
Slide 17: FIBRA Prologis ESG Facts
ENVIRONMENT 33% 50% 24% of total operating of total operating Green portfolio has LED portfolio has cool or certifications lighting reflective roofing COMMUNITY & EMPLOYEES 51% 100% 92% of employees of employees have employee are women access to career engagement training and with the education comp
Slide 18: Strong Sustainability Focus
Strong Sustainability Focus GOALS • 100% of LED lighting of the portfolio by 2025, currently 50% • Increase our building green certification to 50% by 2022, GRESB Sector Leader 2020 currently 33% Awarded Green Stars 4 years in a row Listed • Start our solar energy initiative • 2021 first ESG report
Slide 19: World Class Corporate Governance
World Class Corporate Governance Alignment with Certificate Holders Philosophy Technical Committee Members • Our governance structure reflects a market- • Technical Committee members are ratified leading approach to corporate governance annually by certificate holders prioritizing the interests of o
Slide 20: Creating Value for Certificate Holders
Creating Value for Certificate Holders TOTAL RETURN OF CBFIS IN MEXICAN PESOS June 4, 2014 – July 20, 2021 184% 153% 155% 85% 1.5% 41% FIBRAPL Peer A Peer B Peer C Peer D FIBRA Index Stock Return Dividend Return FIBRAPL DISTRIBUTIONS USD$ (2) $100 $91 $79 $80 $77 $75 $80 $70 $63 $60 $48 (3) $40 $20
Slide 21: Appendix
Apodaca 9, Monterrey Appendix
Slide 22: Historical Operating Performance
Historical Operating Performance ELEVATED PERIOD-END OCCUPANCY (%) 97.4 97.3 97.4 97.5 97.6 97.3 97.1 96.6 96.7 96.8 96.6 96.8 96.8 96.7 96.3 96.3 96.5 96.4 96.4 96.4 96.5 96.4 96.4 96 96.0 95.9 95.5 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219 Q319
Slide 23: Historical Growth
Historical Growth NOI GROWTH ADJUSTED EBITDA GROWTH Millions of USD Millions of USD 180 180 150 150 120 120 90 90 60 60 30 30 0 0 2015 2016 2017 2018 2019 2020 H1 21 2015 2016 2017 2018 2019 2020 H1 21 FFO GROWTH AFFO GROWTH Millions of USD Millions of USD 140 100 120 80 100 80 60 60 40 40 20 20 0 0
Slide 24: Historical Credit Metrics
Historical Credit Metrics DEBT % OF INVESTMENT PROPERTIES FIXED CHARGE COVERAGE RATIO 40% 5X 4X 30% 3X 20% 2X 10% 1X 0% 0 Q416 Q417 Q418 Q419 Q420 H121 Q416 Q417 Q418 Q419 Q420 H121 DEBT TO ADJUSTED EBITDA LIQUIDITY Millions of USD 6X 450 5X 4X 300 3X 2X 150 1X 0 0 Q416 Q417 Q418 Q419 Q420 H121 Q416
Slide 25: Portfolio Growth Since IPO
Portfolio Growth Since IPO GROSS LEASABLE AREA Thousands of SF, June 4, 2014 through December 31, 2020 41,000 37,000 33,000 29,000 25,000 IPO 4Q 2014 4Q 2015 4Q 2016 4Q 2017 4Q 2018 4Q 2019 4Q 2020 REAL ESTATE PORTFOLIO(1)(2)(3) Thousands of USD$ +71% Total +21% Internal $2,700 $0.8B $2.4B $2,200 $1
Slide 26: Future direction of supply chain creates opportunity
Future direction of supply chain creates opportunity DISTRIBUTION OF SUPPLY CHAIN COSTS % • Yet, logistics real estate rents represent approximately 8%-10% 45-55% 1% savings in transportation 1% Cost savings in of total supply chain costs • Supply chain cost inputs should trend lower over time, give
Slide 27: Superior Market Concentration Versus Peers
Superior High-Barrier Market Concentration Versus Peers Supply Chain Center Growth Economy Global Metropolis High-Barrier FIBRAPL Others FIBRAPL Others 35% 28% 36% 28% Lower-Barrier FIBRAPL Others FIBRAPL Others 0% 30% 29% 13% Subtotal FIBRAPL Others FIBRAPL Others FIBRAPL Others 35% 58% 29% 13% 36%
Slide 28: Administration Fees
Fee Structure Transparent and Aligned Fee Type Calculation Payment Frequency Property Management 3% x collected revenues Monthly Operating Fees New leases: 5% x lease value for <5 yrs; Leasing Commission 2.5% x lease value for 5-10 yrs; ½ at closing 1.25% x lease value for > 10 yrs Only when no brok
Slide 29: YTD Share Performance and Analyst Recommendations
YTD Share Performance and Analyst Recommendations $55 100% 7% 7% 7% 7% 7% 7% 7% 7% 24% 21% 80% 29% 29% 38% 36% 36% 35% $50 60% 40% 54% 71% 69% $45 64% 64% 57% 57% 58% 20% $40 0% Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Buy Hold Sell Last Price Avg. TP 29 1. As of August 31, 2021
Slide 30: Strategic Acquisition Completed April 2020
Strategic Acquisition Completed April 2020 Prologis Park Grande • Location: Mexico City • Land Size: 212.3 acres, 9.3 MSF • GLA: 3.9 MSF B-6 B-7 B-5 • 100% leased B-8 B-4 B-3 Unique Competitive Advantage: • State of the art logistics park focused on e- commerce customers and consolidation of 3PL B-2
Slide 31: Mexico City
Mexico City 31 ° FIBRA €>} PROLOGIS’
Slide 32: Guadalajara
Guadalajara Wwoniso © Guadalajara © San Pedro Tlaquepaque Tonala © San Martin De Las Flores Santa Cruz © Del Valle La Union sjuanacatia San Sebastian © Del Cuatro” laa ElGrande lajomulco ymuleo Industrial Corridors @) Development Properties & Land (e) Prologis Stabilized Assets) FIBRAPL Assets FIBRA
Slide 33: Monterrey
Monterrey 33 San Nicolas de los Garza Caredo, rx © Cienega de Flores Industrial Corridors (@) Development Properties & Land @ Prologis Stabilized Assets O FIBRAPL Assets FIBRA €>; PROLOGIS
Slide 34: Tijuana
Tijuana FIBRA 3 €>; PROLOGIS
Slide 35: Ciudad Juarez
Ciudad Juarez 35 Zz, Tae TEXAS ° industrial Corridors (D) Development Properties & Land (Q) Prologis Stabilized Assets © risraet Assets FIBRA €>} PROLOGIS’
Slide 36: Reynosa
Reynosa 2 << | | Industrial Corridors () Pipeline Assets (_) FIBRAPL Assets FIBRA € PROLOGIS’
Slide 37: FIBRA Prologis
FIBRA €*; PROLOGIS’
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