Prologis Property Mexico, S.a. De C.v. · BMV:FIBRAPL/14
Prologis Property Mexico, S.a. De C.v — FIBRA Prologis — Investor Presentation (May 2021)
38 slides from Prologis Property Mexico, S.a. De C.v's investor presentation, May 2021
Slide 1: FIBRA Prologis Investor Presentation May 2021
Prologis Park Grande 1, Mexico City FIBRA PROLOGIS Investor Presentation May 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: Focused Investment Strategy
Focused Investment Strategy • 144% Total Return Since IPO(1) • Superior organic growth • Reliable and sustainable cash flow • Access to Prologis development pipeline • Irreplaceable industrial real estate in Mexico in the six most dynamic markets • Consumption and e-commerce driving incremental grow
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 96.7% Ciudad Juarez GLA 4.2 MSF GLA 3.5 MSF Occupancy(1) 100.0% Occupancy 94.9% Occupancy 40.1 Reynosa Million Square Feet GLA 4.7 MSF 100.0% Occupancy 205 Operating Properties(2) Monterrey GLA 5.4 MSF 16
Slide 6: Real Estate Fundamentals
Real Estate Fundamentals DEMAND (TTM) VS SUPPLY (PIPELINE) DEMAND VS SUPPLY VACANCY (MSF) (MSF) (%) • Logistics real estate demand 0 1 2 3 4 5 6 10 was solid for the first 24 quarter of the year Mexico City 8 • Border markets remain 20 severely constrained with Monterrey market vacancy below 2% 16 6
Slide 7: 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 Supply chain disruptions driving a renewed focus on resiliency • Built-in flexibility to avoid disruptions (e,g., geopolitical, weather, currency, supplier, labor) acceler
Slide 8: Nearshoring: Growth in Mexico-to-US Manufacturing
Nearshoring: Growth in Mexico-to-US Manufacturing TOTAL MANUFACTURED GOODS IMPORTS FROM MEXICO AS % OF IMPORTS FROM ASIAN LOW-COST COUNTRIES • In 2020, the U.S. imported 46 cents worth of manufacturing imports from Mexico for every dollar of manufacturing 52% imports from Asia 50% • 75% less time to
Slide 9: Diverse Demand Drivers Present in Mexico
Diverse Demand Drivers Present in Mexico Resilience During Pandemic CONSUMPTION Distribution of Customer Industry, Share of Total FIBRA Prologis Portfolio NRA General Retailer Structural Healthcare 30% Industrial/Commodities Transport Appliances Auto Cyclical Home Goods 31% Construction Paper/Packag
Slide 10: Positive Trends for E-Commerce in Mexico
Positive Trends for E-Commerce in Mexico SHARE OF INTERNET RETAILING SALES INTERNET SALES PENETRATION BY INDUSTRY, • E-commerce becoming an %, As a Percentage of Total Retail Sales MEXICO added tailwind for logistics real %, As a Percentage of Total Industry Retail Sales estate demand, especially in
Slide 11: E-Commerce Requires ~3X the Distribution Space of Traditional Retail
E-Commerce Requires ~3X the Distribution Space of Traditional Retail Sales Facilities Productivity Efficiency E-fulfillment requires 3X US$, B SF, M US$ / SF SF / $1B the logistics space used of brick-and-mortar retailers due to: • Shipping parcels versus pallets Online $234 265 $883 1,174 KSF +/• H
Slide 12: Last Touch: Location Matters
Last Touch®: Location Matters CONTINUUM OF LOGISTICS REAL ESTATE LOCATION REQUIREMENTS Production Consumption Raw International Retail material manufacturing/ centers supplies Order consolidation Import/national Regional City distribution / distribution center distribution Last TouchTM Customer Sant
Slide 13: Low Risk Business Model
Prologis Park Grande 2, Mexico City Low Risk Business Model
Slide 14: Portfolio Statistics & Well-Laddered Expiration Schedule
Portfolio Statistics & Well-Laddered Expiration Schedule LEASE EXPIRY PROFILE BY ANNUALIZED NER & AVERAGE IN-PLACE RENT 23% 17% 16% 13% 8% 9% 7% 5% 3% $5.50 $5.44 $5.26 $5.38 $5.58 $5.58 $5.51 $6.05 $6.21 2021 2022 2023 2024 2025 2026 2027 2028 2029+ PORTFOLIO STATISTICS CURRENCY OF LEASES, % OF NET
Slide 15: Diversified Customer Base
Diversified Customer Base 220 CUSTOMER TYPE CUSTOMER INDUSTRY %, NER basis %, NRA basis customers in Mexico have 5% 15% 22% 14% 329 leases with FIBRA Prologis B2B 10% 41% 11% 9% 8% 8% 87% of FIBRA Prologis’ 6% 21% 4% customers are multinational 4% 4% 3% companies(1) Retail 1% 1% 3PL Our top 10 custo
Slide 16: 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 17: Strong Financial Position
Strong Financial Position BBB/BBB+ rated by Fitch/HR Ratings1 DEBT METRICS Q1 2021 DEBT MATURITY SCHEDULE Total debt $827M (USD$ in millions) Unsecured Debt Wtd avg rate 3.4% $290 $1 Secured Debt USD denominated 100% Wtd avg term 7.0 yrs $107 $125 $125 $125 $55 Green debt 44.7% Available liquidity U
Slide 18: Best Practices Oriented to Create Value
Apodaca 9, Monterrey Best Practices Oriented to Create Value
Slide 19: FIBRA Prologis ESG Facts
ENVIRONMENT 33% 50% 24% of total operating of total operating Green portfolio has LED portfolio has cool or certifications lighting reflective roofing COMMUNITY & EMPLOYEES 51% 100% 92% of employees of employees have employee are women access to career engagement training and with the education comp
Slide 20: Strong Sustainability Focus
Strong Sustainability Focus GOALS • 100% of LED lighting of the portfolio by 2025, currently 50% • Increase our building green certification to 50% by 2022, Ranked #2 in 2020 currently 33% for ESG/SRI Metrics Listed • Start our solar energy initiative in 2021 • 2021 first ESG report by July 2021 SUS
Slide 21: World Class Corporate Governance
World Class Corporate Governance Alignment with Certificate Holders Philosophy Technical Committee Members • Our governance structure reflects a market- • Technical Committee members are ratified leading approach to corporate governance annually by certificate holders prioritizing the interests of o
Slide 22: Creating Value for Certificate Holders
Creating Value for Certificate Holders TOTAL RETURN OF CBFIS IN MEXICAN PESOS June 4, 2014 – April 30, 2021 144% 137% 82% 93% 16% 43% FIBRAPL Peer A Peer B Peer C Peer D FIBRA Index Stock Return Dividend Return FIBRAPL DISTRIBUTIONS USD$ (2) $100 $91 $79 $80 $77 $75 $80 $70 $63 $60 $48 (3) $40 $20 $
Slide 23: Appendix
Prologis Park Grande, Mexico City Appendix
Slide 24: 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 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 Q419
Slide 25: 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 Q1 21 2015 2016 2017 2018 2019 2020 Q1 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 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 Q121 Q416 Q417 Q418 Q419 Q420 Q121 DEBT TO ADJUSTED EBITDA LIQUIDITY Millions of USD 6X 450 5X 4X 300 3X 2X 150 1X 0 0 Q416 Q417 Q418 Q419 Q420 Q121 Q416
Slide 27: 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 28: 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 31% 17% 42% 24% Lower-Barrier FIBRAPL Others FIBRAPL Others 0% 47% 26% 11% Subtotal FIBRAPL Others FIBRAPL Others FIBRAPL Others 31% 64% 26% 11% 42%
Slide 29: Fee Structure: Transparent and Aligned
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 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 FIBRA at € PROLOGIS’
Slide 32: Guadalajara
Guadalajara © Guadalajara = San Pedro Tlaquepaque Tonala © San Martin De Las Flores 1. Mexico City ‘37 misao km La Aurora © Los Gavilanes. © LaCaleritla © Santa Anita Santa Cruz © Valle |. Concepcion reunions ‘© Juanacatlan San Sebastian Del Valle’ —- De! Cuatro El Grande © Tlajomulco Tlajomulco De
Slide 33: Monterrey
Monterrey aredo, © Cienega de Flores: SEA km “3 S (Zoxn) ams ‘ancowne i ta ~~ General Escobedo San Nicolas de los Garza Guadalupe v2 = ‘140 misaze km Garza Garcia 2 Industrial Corridors. @) Development Properties & Land (Q) Prologis Stabilized Assets (_) FIBRAPL Assets FIBRA 8 € > PROLOGIS'
Slide 34: Tijuana
Tijuana FIBRA 3 € > PROLOGIS'
Slide 35: Ciudad Juarez
Ciudad Juarez FIBRA 38 € PROLOGIS’
Slide 36: Reynosa
Reynosa CC y 2 | | Industrial Corridors @) Development Properties & Land (_) FIBRAPL Assets FIBRA € > PROLOGIS'
Slide 37: Reynosa
Reynosa 2 << | | Industrial Corridors () Pipeline Assets (_) FIBRAPL Assets FIBRA € PROLOGIS’
Slide 38: FIBRA Prologis
FIBRA €*; PROLOGIS’