Prologis Property Mexico, S.a. De C.v. · BMV:FIBRAPL/14
Prologis Property Mexico, S.a. De C.v — Fibra Prologis Reit Ctfs — Q3 2023 Earnings Presentation
38 slides from Prologis Property Mexico, S.a. De C.v's earnings presentation, Oct 18, 2023
Slide 1: Investor Presentation
Centro Industrial, Juarez Prologis Park Grande, Mexico City Investor Presentation August 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
Alamar, Mexico City Resilient Investment Strategy 3
Slide 4: Why invest in FIBRA Prologis?
Why invest in FIBRA Prologis? US$4.1B US$239M US$0.13 Assets under 2022 Annual Net 2023E Distribution per management Operating Income CBFI BBB+/BBB+ 44.2 M 228 243 Credit Ratings Square Feet Buildings(1) Customers World class Sponsor: PLD Note: Information as of June 30, 2023 1. Includes value-added
Slide 5: FIBRA Prologis at a Glance
FIBRA Prologis at a Glance FIBRA Prologis is a leading Mexican real estate investment trust formed to KEY FINANCIAL AND OPERATIONAL METRICS (2) acquire, own and manage Class-A industrial real estate in Mexico 2015 Today 63.6 Attractive industrial real estate in Mexico in the six most dynamic markets
Slide 6: Unmatched Portfolio Focused on the Top Consumption and Manufacturing Markets
Investor Presentation Unmatched Portfolio Focused on the Top Consumption and Manufacturing Markets 6 > 10MSF Markets Tijuana Ciudad Juarez 5MSF to 10MSF 98.0% GLA 6.6 MSF 100.0% Occupancy GLA 3.8 MSF 97.5% Occupancy 3MSF to 5MSF Period End Occupancy(1) 98.1% Reynosa GLA 4.6 MSF Average Occupancy(1)
Slide 7: Mexico Logistics Real Estate Fundamentals
Mexico Logistics Real Estate Fundamentals1 DEMAND (T12M) VS SUPPLY PIPELINE DEMAND VS SUPPLY VACANCY (MSF) (MSF) (%) • Market vacancy of 1.2%, historical lows Mkt Vacancy 36 10 • We expect increasing demand 1.7% due to supply chain Mexico City 32 reconfigurations and limited supply caused by enhance
Slide 8: Global Drivers: Customers Worry About Supply Chain
Global Drivers: Customers Worry About Supply Chain Ongoing shift in global value chains TOP 10 PROLOGIS CUSTOMERS VOICE “SUPPLY CHAIN CHALLENGES”¹ DISTRIBUTION OF GLOBAL SUPPLY CHAIN ESTIMATED COSTS # of times top 10 customers mentioned “supply chain challenges” in earning calls % 50 Transportation
Slide 9: Mexico: Nearshoring is the Main Structural Shift
Mexico: Nearshoring is the Main Structural Shift Mexican industrial real estate gain momentum due to manufacturing capacity expansion MACHINERY IMPORTS, INFLATION-ADJUSTED (US$MN, BASE 1990, SEASONALLY ADJUSTED) • Nearshoring is already reflecting on economic indicators such as machinery 14,000.00 i
Slide 10: Mexico: Nearshoring Not Just Manufacturing
Mexico: Nearshoring Not Just Manufacturing As manufacturing capacity grows, so does logistics PROLOGIS MEXICO MARKETS* 3PL GROSS ABSORPTION MILLION SQUARE FEET • Nearshoring is already driving significant absorption in border cities where 3PL’s were practically not taking any space beforehand. 10.00
Slide 11: Mexico: The Logistics of Nearshoring
Mexico: The Logistics of Nearshoring Large markets near the border with ample workforces are the best nearshoring option LOGISTICS REAL ESTATE, CARGO TRANSPORT AND POPULATION DISTRIBUTION, NORTHERN MEXICO • Monterrey, Mexico’s main Logistic market square footage, number of annual cargo land border c
Slide 12: 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 13: Low Risk Business Model
Encino, Mexico city Low Risk Business Model 13
Slide 14: Potential Market Rental Growth
Potential Market Rental Growth LEASE EXPIRY PROFILE BY GLA & AVERAGE IN-PLACE RENT $12.00 $10.63 35% $9.74 $10.18 $8.92 $9.32 30% $10.00 $8.53 $7.99 25% $8.00 $6.29 $6.38 $6.59 $5.61 $5.98 20% $6.00 $5.81 $5.91 15% $4.00 10% $2.00 5% 6% 8% 23% 14% 7% 13% 29% $0.00 0% 2023 2024 2025 2026 2027 2028 20
Slide 15: Diversified Customer Base
Diversified Customer Base CUSTOMER TYPE CUSTOMER INDUSTRY 243 %, NER basis %, NRA basis customers in Mexico have 22% 352 leases with FIBRA Prologis 16% 14% 84.3% of FIBRA Prologis’ customers are or are affiliated 9% 8% 8% 8% 7% with multinational companies(1) 5% Our top 10 customers 2% represent 24%
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
Investor Presentation Strong Financial Position BBB+/BBB+/BBB rated by S&P/HR Ratings/Fitch1 DEBT METRICS 2Q2023 DEBT MATURITY SCHEDULE Total debt $919M (USD$ in millions) Wtd avg rate 4.0% Unsecured Debt $1 Secured Debt USD denominated 100% Wtd avg term 7.0 yrs Available liquidity USD2 $955 M $175
Slide 18: Best Practices Oriented to Create Value
Tres Ríos , Mexico city Best Practices Oriented to Create Value 18
Slide 19: 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 20: World Class Corporate Governance
World Class Corporate Governance Alignment with Certificate Holders DIVERSE AND EXPERIENCED TECHNICAL COMMITTEE1 COMPOSITION Luis Gutiérrez Alberto Saavedra INDEPENDENCY TENURE President for Latin America Partner Prologis Inc Santa Marina y Steta Independe Eugene F. Reilly Miguel Álvarez del Río nt
Slide 21: Strong Sponsor
Apodaca, Monterrey Strong Sponsor 21
Slide 22: Global portfolio with a focus on high-barrier, high-growth markets
INVESTOR RELATIONS Global portfolio with a focus on high-barrier, high-growth markets $209B $116B PLD A3/A 1.2B $38B 6,700 2.8% U.S. EUROPE ASIA OTHER AMERICAS Note: Data as of June 30, 2023. 1. A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revisio
Slide 23: Appendix
Toluca Park ,Toluca Appendix 23
Slide 24: 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 25: Creating Value for Certificate Holders
Investor Presentation Creating Value for Certificate Holders TOTAL RETURN OF CBFIS IN MEXICAN PESOS June 4, 2014 – June 30, 2023 290% 242% 261% 199% 52% 86% FIBRAPL Peer A Peer B Peer C Peer D FIBRA Index Stock Return Dividend Return FIBRAPL DISTRIBUTIONS PER CBFI (USD$) & AFFO PAYOUT RATIO (%) (1)
Slide 26: Historical Operating Performance
Investor Presentation Historical Operating Performance ELEVATED PERIOD-END OCCUPANCY 99.5 (%) 98.9 99 98.5 97.9 98 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 Q223 STRONG POSITIVE RENT CHANGE ON ROLLOVER (%) 38.5 45.0 40.0 30.9 35.0 24.6
Slide 27: 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 28: Historical Credit Metrics
Investor Presentation Historical Credit Metrics DEBT % OF INVESTMENT PROPERTIES FIXED CHARGE COVERAGE RATIO 40% 7X 6X 30% 5X 4X 20% 3X 10% 2X 1X 0% 0 Q416 Q417 Q418 Q419 Q420 Q421 Q422 Q223 Q416 Q417 Q418 Q419 Q420 Q421 Q422 Q223 DEBT TO ADJUSTED EBITDA LIQUIDITY1 Millions of USD 6X 1,050 5X 900 4X
Slide 29: 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 2Q 2Q2023 2023 REAL ESTATE PORTFOLIO(1)(2)(3) Thou
Slide 30: 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 31: 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 32: Mexico City
Investor Presentation Mexico City 32
Slide 33: Guadalajara
Investor Presentation Guadalajara 33
Slide 34: Monterrey
Investor Presentation Monterrey 34
Slide 35: Tijuana
Investor Presentation Tijuana 35
Slide 36: Ciudad Juárez
Investor Presentation Ciudad Juárez 36
Slide 37: Reynosa
Investor Presentation Reynosa 37
Slide 38: FIBRA Prologis
FIBRA €*; PROLOGIS’
Fibra Prologis Reit Ctfs — Q3 2023 Earnings Presentation on 6ix