Prologis Property Mexico, S.a. De C.v. · BMV:FIBRAPL/14
Prologis Property Mexico, S.a. De C.v — Fibra Prologis Reit Ctfs — Q4 2023 Earnings Presentation
36 slides from Prologis Property Mexico, S.a. De C.v's earnings presentation, Jan 18, 2024
Slide 1: Investor Presentation
Centro Industrial, Juarez Prologis Park Grande, Mexico City Investor Presentation November 2023
Slide 2: Forward-Looking Statements / Non-Solicitation
INVESTOR PRESENTATION 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
Slide 3: Resilient Investment Strategy
Phar Bridge, Reynosa Resilient Investment Strategy 3
Slide 4: Why invest in FIBRA Prologis?
Why invest in FIBRA Prologis? US$4.5B US$239M US$0.13 Assets under 2022 Annual Net 2023E Distribution per management Operating Income CBFI BBB+/BBB+ 44.2 M 228 240 Credit Ratings Square Feet Buildings(1) Customers World class Sponsor: PLD Note: Information as of September 30, 2023 1. Includes value-
Slide 5: FIBRA Prologis at a Glance
FIBRA Prologis at a Glance FIBRA Prologis is a leading Mexican real estate investment trust formed to KEY FINANCIAL AND OPERATIONAL METRICS (2) acquire, own and manage Class-A industrial real estate in Mexico 2015 Today 60.0 Attractive industrial real estate in Mexico in the six most dynamic markets
Slide 6: Unmatched Portfolio Focused on the Top Consumption and Manufacturing Markets
Investor Presentation Unmatched Portfolio Focused on the Top Consumption and Manufacturing Markets 6 > 10MSF Markets Tijuana Ciudad Juarez 5MSF to 10MSF 98.4% GLA 6.6 MSF 100.0% Occupancy GLA 3.8 MSF 97.5% Occupancy 3MSF to 5MSF Period End Occupancy(1) 98.5% Reynosa GLA 4.6 MSF Average Occupancy(1)
Slide 7: Mexico Logistics Real Estate Fundamentals
Mexico Logistics Real Estate Fundamentals1 DEMAND (T12M) VS SUPPLY PIPELINE DEMAND VS SUPPLY VACANCY (MSF) (MSF) (%) • Market vacancy of 1.3%, near historical lows • We expect increasing demand due to supply chain reconfigurations and limited supply caused by enhanced supply barriers to continue dri
Slide 8: Mexico: Nearshoring is the Main Structural Shift
Mexico: Nearshoring is the Main Structural Shift Mexican industrial real estate gain momentum due to manufacturing capacity expansion MACHINERY IMPORTS, INFLATION-ADJUSTED, 2014-JULY 2023 (US$MN, BASE 1990, SEASONALLY ADJUSTED) • Nearshoring is already reflecting on economic indicators such as machi
Slide 9: Mexico: E-commerce is a Resilient Driver of Expansion
Mexico: E-commerce is a Resilient Driver of Expansion By 2026, E-commerce penetration1 in Mexico is expected to double vs 2021 E-COMMERCE SALES AND PENETRATION RATE IN MEXICO1 E-COMMERCE GLOBAL PENETRATION RATE1 USD$ B Penetration Rate % Mexico Global USA 40 Europe China Brazil 60,000 18% 36 16% 32
Slide 10: Low Risk Business Model
Apodaca, Monterrey Low Risk Business Model 10
Slide 11: Potential Market Rental Growth
Potential Market Rental Growth LEASE EXPIRY PROFILE BY GLA & AVERAGE IN-PLACE RENT $12.00 $10.23 $10.64 35% $9.46 $9.84 $10.00 $8.75 $9.10 30% $8.41 25% $8.00 $6.20 $6.69 $6.66 $6.16 $5.61 $5.86 20% $6.00 15% $4.00 $3.40 10% $2.00 5% 1% 8% 24% 16% 8% 14% 29% $0.00 0% 2023 2024 2025 2026 2027 2028 20
Slide 12: Diversified Customer Base
Diversified Customer Base 240 Customers Our top 10 customers represent 24% of net effective rent 357 leases 84.3% of FIBRA Prologis’ customers are or are affiliated with multinational companies as a percentage of net effective rent Customer Mix E - Commerce 3PL Manufacturing Other Logistics CUSTOMER
Slide 13: 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 14: Strong Financial Position
Investor Presentation Strong Financial Position BBB+/BBB+/BBB rated by S&P/HR Ratings/Fitch1 DEBT METRICS 3Q2023 DEBT MATURITY SCHEDULE Total debt $918M (USD$ in millions) Wtd avg rate 4.0% Unsecured Debt $1 Secured Debt USD denominated 100% Wtd avg term 6.8 yrs Available liquidity USD2 $972 M $173
Slide 15: Best Practices Oriented to Create Value
Alamar,Tijuana Best Practices Oriented to Create Value 15
Slide 16: Strong Sustainability Focus
Strong Sustainability Focus GOALS SOLAR PROJECT • Net zero and GHG Emissions: Achieve net zero by 2040 for Scope 1, 2 and 3 emissions. • Cheaper energy • Building Certification: Achieve sustainable certification for 100% of • Expected to be finished by 2025 operating portfolio (by area) (2021 baseli
Slide 17: World Class Corporate Governance
World Class Corporate Governance Alignment with Certificate Holders DIVERSE AND EXPERIENCED TECHNICAL COMMITTEE1 COMPOSITION TENURE Luis Gutiérrez Armando Fregoso Carlos Elizondo Mayer-Serra INDEPENDENCY President for Latin America Country Manager Brazil Dr. Political Science Prologis Inc Prologis I
Slide 18: Strong Sponsor
Toluca, Mexico city Strong Sponsor 18
Slide 19: Global portfolio with a focus on high-barrier, high-growth markets
INVESTOR RELATIONS Global portfolio with a focus on high-barrier, high-growth markets $197B $106B PLD A3/A 1.2B $40B 6,700 2.8% U.S. EUROPE ASIA OTHER AMERICAS Note: Data as of September 30, 2023. 1. A securities rating is not a recommendation to buy, sell or hold securities and may be subject to re
Slide 20: Leveraging the Sponsor
INVESTOR RELATIONS Leveraging the Sponsor 20
Slide 21: Appendix
FIBRA €°>) PROLOGIS’ + ye * 7 : : ie _ : Appendix
Slide 22: 2023 Guidance
Investor Presentation 2023 Guidance US Dollars in thousands except per CBFI amounts FX = Ps$19.5 per US$1.00 Financial Peformance Low High (A) Full year FFO, as modified by FIBRA Prologis, per CBFI (excludes incentive fees) $ 0.1800 $ 0.1900 Operations Year-end occupancy 97.0% 98.0% Same store cash
Slide 23: Creating Value for Certificate Holders
Investor Presentation Creating Value for Certificate Holders TOTAL RETURN OF CBFIS IN MEXICAN PESOS June 4, 2014 – September 30, 2023 271% 256% 227% 206% 80% 89% FIBRAPL Peer A Peer B Peer C Peer D FIBRA Index Stock Return Dividend Return FIBRAPL DISTRIBUTIONS PER CBFI (USD$) & AFFO PAYOUT RATIO (%)
Slide 24: Historical Operating Performance
Investor Presentation Historical Operating Performance ELEVATED PERIOD-END OCCUPANCY 99.5 (%) 98.9 99 98.4 98.5 97.9 98 97.4 97.6 97.5 97.3 97.1 96.8 97 96.3 96.5 96.5 96 95.5 95 Q414 Q415 Q416 Q417 Q418 Q419 Q420 Q421 Q422 Q323 STRONG POSITIVE RENT CHANGE ON ROLLOVER (%) 46.5 50.0 38.5 40.0 30.9 24
Slide 25: Historical Growth
Investor Presentation Historical Growth NOI GROWTH ADJUSTED EBITDA GROWTH Millions of USD Millions of USD 280 240 240 200 200 160 160 120 120 80 80 40 40 0 0 2015 2016 2017 2018 2019 2020 2021 2022 YTD 2015 2016 2017 2018 2019 2020 2020 2022 YTD FFO GROWTH AFFO GROWTH Millions of USD Millions of USD
Slide 26: Historical Credit Metrics
Investor Presentation Historical Credit Metrics DEBT % OF INVESTMENT PROPERTIES FIXED CHARGE COVERAGE RATIO 40% 8X 7X 30% 6X 5 X 20% 4 X 3 10% 2X 1X 0% 0 Q416 Q417 Q418 Q419 Q420 Q421 Q422 Q323 Q416 Q417 Q418 Q419 Q420 Q421 Q422 Q323 DEBT TO ADJUSTED EBITDA LIQUIDITY1 Millions of USD 6X 1,050 5X 900
Slide 27: Portfolio Growth Since IPO
Investor Presentation Portfolio Growth Since IPO GROSS LEASABLE AREA Thousands of SF, June 4, 2014 through June 30, 2023 49,000 45,000 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 2021 4Q 2022 3Q 3Q2023 2023 REAL ESTATE PORTFOLIO(1)(2)(3) Thou
Slide 28: Fee Structure
Investor Presentation 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 <6 yrs; 2.5% x lease Leasing Commission value for 6-10 yrs; 1.25% x lease value for > 10 yrs ½ at clo
Slide 29: Strategic Acquisition of Prologis Park Grande Completed April 2020
Investor Presentation 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 cust
Slide 30: Mexico City
Investor Presentation Mexico City 30
Slide 31: Guadalajara
Investor Presentation Guadalajara 31
Slide 32: Monterrey
Investor Presentation Monterrey 32
Slide 33: Tijuana
Investor Presentation Tijuana 33
Slide 34: Ciudad Juárez
Investor Presentation Ciudad Juárez 34
Slide 35: Reynosa
Investor Presentation Reynosa 35
Slide 36: FIBRA Prologis
FIBRA €*; PROLOGIS’
Fibra Prologis Reit Ctfs — Q4 2023 Earnings Presentation on 6ix