Prologis Property Mexico, S.a. De C.v. · BMV:FIBRAPL/14
Prologis Property Mexico, S.a. De C.v — FIBRA Prologis — Investor Presentation (March 2022)
38 slides from Prologis Property Mexico, S.a. De C.v's investor presentation, March 2022
Slide 1: FIBRA Prologis Investor Presentation March 2022
Prologis Park Grande FIBRA PROLOGIS Investor Presentation March 2022
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 Park Los Altos, Guadalajara Resilient Investment Strategy
Slide 4: Why invest in FIBRA Prologis?
Why invest in FIBRA Prologis? 33% FIBRA Prologis 2021 Total Shareholder Return vs 7.4% FIBRA Index US$3.5B US$210M US$0.12 Assets under Annual Net Operating 2022 Distribution per management Income CBFI BBB/BBB+ 42.6M 224 237 Credit Ratings Square Feet Buildings(1) Customers World class Sponsor: PLD
Slide 5: FIBRA Prologis at a Glance
FIBRA Prologis at a Glance FIBRA Prologis is a leading Mexican real estate investment trust KEY FINANCIAL AND OPERATIONAL METRICS (2) formed to acquire, own and manage Class-A industrial real estate in 2015 Today Mexico Stock Price 56.8 26.0 Irreplaceable industrial real estate in Mexico in the six
Slide 6: Unmatched Portfolio Focused on the Top Consumption and Manufacturing Markets
Unmatched Portfolio Focused on the Top Consumption and Manufacturing Markets 6 Markets Tijuana 97.9% Ciudad Juarez GLA 5.3 MSF GLA 3.7 MSF Occupancy(1) 100.0% Occupancy 95.5% Occupancy 42.6 Reynosa Million Square Feet GLA 5.0 MSF 95.9% Occupancy 224 Operating Properties(2) Monterrey GLA 5.8 MSF 16.9
Slide 7: Real Estate Market Fundamentals
Real Estate Market Fundamentals1 DEMAND (T12M) VS SUPPLY (PIPELINE) DEMAND VS SUPPLY VACANCY • Vacancy rate declined to (MSF) (MSF) (%) 1.7%, border markets remain below 1% Mkt Vacancy 10 32 • Record absorption for Tijuana 0.0% FY21, twice of 2020’s, 28 mainly during the 4Q21 8 Reynosa • Labor short
Slide 8: Attractive value opportunity present in Mexico
Attractive value opportunity present in Mexico Market cap rate FMV / sf • Asset values and rolling % rents gradually pricing in US$ 9.0 201 increases in replacement 200 costs and land scarcity 8.0 180 • Mexico among the few value opportunities 7.0 160 available globally: cap rates relatively high an
Slide 9: E-commerce strengthening the expansion
E-commerce strengthening the expansion By 2025, E-commerce in Mexico will grow 1.5x1 vs 2020, representing a 58% growth in retail earnings3 E-COMMERCE SALES AND PENETRATION RATE1 • E-commerce is tailwind for GLOBAL PENETRATION RATE USD$ B, current FX % logistics real estate demand, 50 especially in
Slide 10: Nearshoring as a Rising Structural Demand
Nearshoring as a Rising Structural Demand Global supply chain trends underpin the future of Mexican logistics real estate Nearshoring Deals in Mexico ‘The Great Resignation’ USA (job quits Minimum Wage vs job openings) by country of origin USD/month* Thousands, Monthly China 1. High openings + low u
Slide 11: Low Risk Business Model
Prologis Park Toluca, Mexico Low Risk Business Model
Slide 12: Potential Market Rental Growth
Potential Market Rental Growth LEASE EXPIRY PROFILE BY ANNUALIZED NER & AVERAGE IN-PLACE RENT $7.95 $8.25 $8.54 $8.84 25% $7.65 $9.00 $7.06 $7.36 $6.71 $8.00 $6.05 $6.36 20% $7.00 $5.45 $5.64 $5.82 $5.59 $6.00 $5.54 $5.31 15% $5.00 $4.00 10% $3.00 $2.00 5% $1.00 13% 13% 10% 20% 15% 4% 7% 18% $0.00 0
Slide 13: Diversified Customer Base
Diversified Customer Base 237 CUSTOMER TYPE CUSTOMER INDUSTRY %, NER basis %, NRA basis customers in Mexico have 1.0% 19% 347 leases with FIBRA 15.5% 7.6% Prologis B2B 15% 15% 21.6% 86.4% of FIBRA Prologis’ 40.8% 9% 9% 9% 8% customers are multinational 13.6% 7% companies(1) Retail 3PL 5% E- Commerce
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 2021 DEBT MATURITY SCHEDULE Total debt $1,057M (USD$ in millions) Wtd avg rate 3.8% LOC $312 Unsecured Debt USD denominated 100% $1 Secured Debt Wtd avg term 8.5 yrs Available liquidity USD2 $482M $150 $125 $125 $125 Fixed de
Slide 16: Best Practices Oriented to Create Value
Prologis Centro Industrial Juarez, Ciudad Juarez Best Practices Oriented to Create Value
Slide 17: Ambitious ESG Goals Creating Value for our Stakeholders
Ambitious ESG Goals Creating Value for our Stakeholders ESG PRIORITIES GREEN PORTFOLIO SOCIAL IMPACT ETHICS Accelerate commitment to Through Prologis Community Ensure 100% of employees sustainable buildings Workforce Initiative complete ethics training New goal: 100% of building green New goal: Trai
Slide 18: World Class Corporate Governance
World Class Corporate Governance Alignment with Certificate Holders Philosophy Technical Committee Members • Our governance structure reflects a market- • Technical Committee members are ratified leading approach to corporate governance annually by certificate holders prioritizing the interests of o
Slide 19: Creating Value for Certificate Holders
Creating Value for Certificate Holders TOTAL RETURN OF CBFIS IN MEXICAN PESOS June 4, 2014 – December 31, 2021 226% 165% 169% 106% 8% 50% FIBRAPL Peer A Peer B Peer C Peer D FIBRA Index Stock Return Dividend Return FIBRAPL DISTRIBUTIONS PER CBFI (USD$) & AFFO PAYOUT RATIO (%) (1) $0.14 0.1240 0.1240
Slide 20: Strong Sponsor
Cedros 3, Mexico City Strong Sponsor
Slide 21: Strong Sponsor
Strong Sponsor US$215B US$3.4B A-/A3 Assets under Annual Net Operating Credit Ratings management Income 19 1B 4,735 5,800 Countries Square Feet Buildings Customers Prologis Park Chiba, Japan. 21
Slide 22: Appendix
Prologis Park Tres Rios, Mexico City Appendix
Slide 23: 2022 Guidance
2022 Guidance US Dollars in thousands except per CBFI amounts Financial Peformance Low High Full year FFO, as modified by FIBRA Prologis, per CBFI (A) $ 0.1750 $ 0.1850 Operations Year-end occupancy 96.0% 97.0% Same store cash NOI change 2.5% 4.0% Annual capex as a percentage of NOI 13.0% 14.0% Capi
Slide 24: Historical Operating Performance
Historical Operating Performance ELEVATED PERIOD-END OCCUPANCY (%) 97.6 97.9 97.4 97.3 97.3 97.4 97.5 97.1 97 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 Q2
Slide 25: Historical Growth
Historical Growth NOI GROWTH ADJUSTED EBITDA GROWTH Millions of USD Millions of USD 240 240 200 200 160 160 120 120 80 80 40 40 0 0 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2020 FFO GROWTH AFFO GROWTH Millions of USD Millions of USD 160 120 140 100 120 80 100 80 60 60 40 40 2
Slide 26: 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 Q421 Q416 Q417 Q418 Q419 Q420 Q421 DEBT TO ADJUSTED EBITDA LIQUIDITY1 Millions of USD 6X 600 5X 450 4X 3X 300 2X 150 1X 0 0 Q416 Q417 Q418 Q419 Q420 Q421
Slide 27: Portfolio Growth Since IPO
Portfolio Growth Since IPO GROSS LEASABLE AREA Thousands of SF, June 4, 2014 through December 31, 2021 41,000 37,000 33,000 29,000 25,000 IPO IPO 4Q 2014 4Q 2015 4Q 2016 4Q 2017 4Q 2018 4Q 2019 4Q 2020 4Q 4Q2021 2021 REAL ESTATE PORTFOLIO(1)(2)(3) Thousands of USD$ +119% Total +58% growth $3,700 $3,
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: 2021 Share Performance and Analyst Recommendations
2021 Share Performance and Analyst Recommendations $60 100% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 24% 21% 21% 80% 29% 29% 26% 29% 29% 38% 36% 36% 35% $55 60% $50 67% 40% 54% 71% 69% 71% 64% 64% 64% 64% 57% 57% 58% $45 20% $40 0% Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov
Slide 30: Strategic Acquisition of Prologis Park Grande Completed April 2020
Strategic Acquisition of Prologis 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 consolidatio
Slide 31: Strategic Acquisition of a Third Party Completed December 21
Strategic Acquisition of a Third Party Completed December 2021 TJ One Portfolio • Location: Tijuana and Bajio • Land Size: 2.4 MSF • NRA: 1.6 MSF • 100% leased in USD Strategic Acquisiton: • This portfolio is comprised of 14 Class A industrial space and expansion land, with this properties Prologis
Slide 32: Mexico City
Mexico City Prologis Park Grande Land. FIBRA 32 € PROLOGIS’
Slide 33: Guadalajara
Guadalajara Wwoniso © Guadalajara © San Pedro Tlaquepaque Tonala © San Martin De Las Flores © Santa Anita © LaCalerilla Santa Cruz © Del Valle LaUnion 4 "= Juanacatian ? |. Concepci San Sebastian Del Val ElGrande © Tlajomulco Industrial Corridors @ Development Properties & Land (e) Prologis Stabiliz
Slide 34: Monterrey
Monterrey Toto. © Cienega de Flores Garza Garcia ° Industrial Corridors. @) Development Properties & Land (©) Prologie Stabilized Assets (~) FIBRAPL Assets FIBRA 34 € > PROLOGIS'
Slide 35: Tijuana
Tijuana Industrial Corridors (D) Pipeline Assets (e) FIBRAPL Assets FIBRA 35 € PROLOGIS’
Slide 36: Ciudad Juarez
Ciudad Juarez _ 36 Industrial Corridors (D) Development Properties & Land © Protogis stabilized Assets CO riprapt Assets € PROLOGIS’
Slide 37: Reynosa
Reynosa FIBRA € PROLOGIS’
Slide 38: FIBRA Prologis
FIBRA €*; PROLOGIS’