Prologis Property Mexico, S.a. De C.v. · BMV:FIBRAPL/14
Prologis Property Mexico, S.a. De C.v — Fibra Prologis Reit Ctfs — Q1 2024 Earnings Presentation
39 slides from Prologis Property Mexico, S.a. De C.v's earnings presentation, Apr 18, 2024
Slide 1: Investor Presentation
Alamos,Mexico city Investor Presentation February 2024
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
Industrial Juarez, Juarez Resilient Investment Strategy 3
Slide 4: Why invest in FIBRA Prologis?
Why invest in FIBRA Prologis? US$4.9B US$270M US$0.141 Assets under 2023 Annual Net 2024E Distribution per management Operating Income CBFI BBB+/BBB+ 46.9 M 235 249 Credit Ratings Square Feet Buildings(1) Customers World class Sponsor: PLD Note: Information as of December 31, 2023 1. Includes value-
Slide 5: FIBRA Prologis at a Glance
FIBRA Prologis at a Glance FIBRA Prologis is a leading Mexican real estate investment trust formed to KEY FINANCIAL AND OPERATIONAL METRICS (2) acquire, own and manage Class-A industrial real estate in Mexico 2015 Today 80.8 Attractive industrial real estate in Mexico in the six most dynamic markets
Slide 6: Unmatched Portfolio Focused on the Top Consumption and Manufacturing Markets
Investor Presentation Unmatched Portfolio Focused on the Top Consumption and Manufacturing Markets 6 > 10MSF Markets Tijuana Ciudad Juarez 5MSF to 10MSF 99.8% GLA 6.6 MSF 100.0% Occupancy GLA 4.8 MSF 100.0% Occupancy 3MSF to 5MSF Period End Occupancy(1) 99.0% Reynosa GLA 5.2 MSF Average Occupancy(1)
Slide 7: Mexico Logistics Real Estate Fundamentals
Mexico Logistics Real Estate Fundamentals1 DEMAND (T12M) VS SUPPLY PIPELINE DEMAND VS SUPPLY VACANCY • Market vacancy of 1.4%, near (MSF) (MSF) (%) historical lows Mkt Vacancy 44 10 • We expect limited quality Mexico City 1.1% supply in the most desired 40 locations (particularly Mexico City) to lea
Slide 8: Mexico: Nearshoring is the Main Structural Shift
Mexico: Nearshoring is the Main Structural Shift Mexican industrial real estate gain momentum due to manufacturing capacity expansion MACHINERY IMPORTS, 2014- NOVEMBER 2023 (US$MN, SEASONALLY ADJUSTED) • Nearshoring is already reflecting on economic indicators such as 10,000 machinery imports, accel
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
Centro Juarez, Juarez Low Risk Business Model 10
Slide 11: Potential Market Rental Growth
Potential Market Rental Growth LEASE EXPIRY PROFILE BY GLA & AVERAGE IN-PLACE RENT $10.89 $11.33 40% 12.00 $10.07 $10.47 $9.31 $9.68 10.00 30% 8.00 6.79 6.93 5.93 5.89 6.23 6.16 6.00 20% 4.00 10% 2.00 8% 22% 15% 7% 15% 34% - 0% 2024 2025 2026 2027 2028 2029+ 1 Roll Over Avg in-place rent Avg Estimat
Slide 12: Diversified Customer Base
Diversified Customer Base 249 Customers Our top 10 customers represent 23.5% of net effective rent 367 leases 84.9% of FIBRA Prologis’ customers are or are affiliated with multinational companies as a percentage of net effective rent CUSTOMER INDUSTRY % OF NER BASIS 24% 17% 14% 8% 9% 8% 7% 7% 4% 2%
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 4Q2023 DEBT MATURITY SCHEDULE Total debt $917M (USD$ in millions) Wtd avg rate 4.0% Unsecured Debt $1 Secured Debt USD denominated 100% Wtd avg term 6.5 yrs Available liquidity USD2 $697 M $172
Slide 15: Best Practices Oriented to Create Value
Encionos,Mexico city 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 • Cheaper energy 1, 2 and 3 emissions. • Expected to be finished by 2025 • Building Certification: Achieve sustainable certification for 100% of 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 Chairman Mexico President of Latam Dr. Political Science Prologis Inc Prologis Inc Oxford Univer
Slide 18: Strong Sponsor
Santa Maria, Mexico city Strong Sponsor 18
Slide 19: Global portfolio with a focus on high-barrier, high-growth markets
Global portfolio with a focus on high-barrier, high-growth markets $219B $126B PLD A3/A 1.2B $40B 6,700 2.8% U.S. EUROPE ASIA OTHER AMERICAS Note: Data as of December 31, 2023. 1. A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal
Slide 20: Leveraging the Sponsor
Leveraging the Sponsor Global and world class team Revenue FCPA management Alignment Substantial ownership Financial experience and bank relationships PLD ESG Strategy Performance Fee Top-notch Real Estate systems design Real estate developer, owner and operator World trends 20
Slide 21: Appendix
Agua Fría , Monterrey Appendix 21
Slide 22: 2024 Guidance
Investor Presentation 2024 Guidance US Dollars in thousands except per CBFI amounts FX = Ps$19 per US$1.00 Financial Peformance Low High (A) Full year FFO, as modified by FIBRA Prologis, per CBFI (excludes incentive fees) $ 0.1850 $ 0.1950 Operations Year-end occupancy 97.5% 98.5% Same store cash NO
Slide 23: Creating Value for Certificate Holders
Investor Presentation Creating Value for Certificate Holders TOTAL RETURN OF CBFIS IN MEXICAN PESOS June 4, 2014 – December 31, 2023 404% 288% 306% 261% 93% 121% 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 101 (%) 99.8 100 98.9 99 97.6 97.9 98 97.3 97.4 97.1 96.5 96.8 97 96.3 96 95 94 Q414 Q415 Q416 Q417 Q418 Q419 Q420 Q421 Q422 Q423 STRONG POSITIVE RENT CHANGE ON ROLLOVER (%) 60.0 46.547.8 50.0 38.5 30.9 40.0 24.626.
Slide 25: Historical Growth
Investor Presentation Historical Growth NOI GROWTH ADJUSTED EBITDA GROWTH Millions of USD Millions of USD 320 280 280 240 240 200 200 160 160 120 120 80 80 40 40 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2015 2016 2017 2018 2019 2020 2020 2022 2023 FFO GROWTH AFFO GROWTH Millions of USD Milli
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 Q423 Q416 Q417 Q418 Q419 Q420 Q421 Q422 Q423 DEBT TO ADJUSTED EBITDA LIQUIDITY1 Millions of USD 6X 750 5X 600 4
Slide 27: Portfolio Growth Since IPO
Investor Presentation Portfolio Growth Since IPO GROSS LEASABLE AREA Thousands of SF, June 4, 2014 through December 31, 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 4Q 4Q2023 2023 REAL ESTATE PORTFOLIO(1)(2)(3)
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 Capital franchise
INVESTOR RELATIONS Leveraging the R M ES SE NT PR O FO LO orld’s Sponsor A T n the w tion IA G i LS PL BSF nsump Oper IS E 1.2 top co arkets atio ns VE SO m T TA k NT LU an ES TI db UR ON AL an ES al l RE Sus S Ene inabilit Glob ta rgy y + Strategic Capital franchise y bilit U l t s t st r Mo co r a
Slide 30: What our customers say about us
What our customers say about us Net Promoter Score (NPS) 1. Source: Bain & Company 2023, Prologis 2023 Annual CX Survey, ClearlyRated, Inc. 2023 NPS Benchmarks for B2B Service Industries, Comparably Top Brands (NPS). 30
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: Toluca
Investor Presentation Toluca 33
Slide 34: Guadalajara
Investor Presentation Guadalajara 34
Slide 35: Monterrey
Investor Presentation Monterrey 35
Slide 36: Tijuana
Investor Presentation Tijuana 36
Slide 37: Ciudad Juárez
Investor Presentation Ciudad Juárez 37
Slide 38: Reynosa
Investor Presentation Reynosa 38
Slide 39: FIBRA Prologis
FIBRA €*; PROLOGIS’
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