Prologis Property Mexico, S.a. De C.v. · BMV:FIBRAPL/14
Prologis Property Mexico, S.a. De C.v — Fibra Prologis Reit Ctfs — Q1 2023 Earnings Presentation
35 slides from Prologis Property Mexico, S.a. De C.v's earnings presentation, Apr 19, 2023
Slide 1: FIBRA Prologis Investor Presentation
ParkTres Rios Mexico City Grande, FIBRA PROLOGIS Izcalli, Mexico City Prologis Park Los Altos, Guadalajara Investor Presentation March 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
INVESTOR PRESENTATION Encino, Mexico City Resilient Investment Strategy 3
Slide 4: Why invest in FIBRA Prologis?
INVESTOR PRESENTATION Why invest in FIBRA Prologis? US$4B US$239M US$0.13 Assets under 2022 Annual Net 2023E Distribution per management Operating Income CBFI BBB/BBB+ 43.6 M 225 242 Credit Ratings Square Feet Buildings(1) Customers World class Sponsor: PLD Note: Information as of December 31, 2022
Slide 5: FIBRA Prologis at a Glance
Investor Presentation 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 26.0 55.8 Irreplaceable industrial real estate
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 98.9% GLA 6.3 MSF 100.0% Occupancy GLA 3.5 MSF 100% Occupancy 3MSF to 5MSF Period End Occupancy(1) 98.4% Reynosa GLA 4.6 MSF Average Occupancy(1) 9
Slide 7: Logistic Real Estate Fundamentals
Investor Presentation Logistic Real Estate Fundamentals1 DEMAND (T12M) VS SUPPLY PIPELINE DEMAND VS SUPPLY VACANCY (MSF) (%) • Market vacancy of (MSF) 1.0%, historical lows • Increasing demand due Mkt Vacancy 36 10 to supply chain reconfigurations and Tijuana 0.7% 32 limited supply caused by enhance
Slide 8: Nearshoring is the Main Structural Shift
Investor Presentation Nearshoring is the Main Structural Shift Mexican logistics real estate gain momentum due to manufacturing activity NEARSHORING DEMAND BY COUNTRY OF ORIGIN1 NEARSHORING-RELATED NET ABSORPTION1 • Nearshoring is the main driver of (FIBRA PL MARKETS, MSF) demand, accelerating since
Slide 9: E-commerce is a Resilient Driver of Expansion
Investor Presentation E-commerce is a Resilient Driver of Expansion By 2026, E-commerce penetration1 in Mexico is expected to have doubled vs 2021 E-COMMERCE SALES AND PENETRATION RATE E-COMMERCE GLOBAL PENETRATION RATE1 • E-commerce is tailwind for IN MEXICO1 logistics real estate demand, % USD$ B
Slide 10: Low Risk Business Model
INVESTOR PRESENTATION Alamar, Tijuana Low Risk Business Model 10
Slide 11: Potential Market Rental Growth
Investor Presentation Potential Market Rental Growth LEASE EXPIRY PROFILE BY GLA & AVERAGE IN-PLACE RENT $9.00 $7.86 $8.20 $8.39 $8.58 $8.77 $8.00 $7.22 $7.45 $6.70 $7.00 $5.87 $5.88 $6.16 $6.13 $5.48 $6.00 $5.43 $5.00 $4.00 $3.00 $2.00 $1.00 13% 9% 24% 14% 8% 10% 23% $0.00 2023 2024 2025 2026 2027
Slide 12: Diversified Customer Base
Investor Presentation Diversified Customer Base 242 CUSTOMER TYPE CUSTOMER INDUSTRY %, NER basis %, NRA basis customers in Mexico have 20.3% 352 leases with FIBRA 16.4% Prologis 14.1% 85.5% of FIBRA Prologis’ 9.4% 8.6% 8.4% customers are multinational 7.9% 7.9% companies(1) 4.6% 2.3% Our top 10 cust
Slide 13: External Growth: Identified Future Growth Acquisitions
Investor Presentation 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 pipel
Slide 14: Strong Financial Position
Investor Presentation Strong Financial Position BBB/BBB+ rated by Fitch/HR Ratings1 DEBT METRICS 4Q2022 DEBT MATURITY SCHEDULE Total debt $921M (USD$ in millions) Wtd avg rate 4.0% Unsecured Debt $1 Secured Debt USD denominated 100% Wtd avg term 7.5 yrs $176 Available liquidity USD2 $640 M $150 $125
Slide 15: Best Practices Oriented to Create Value
INVESTOR PRESENTATION Park Toluca, Toluca Best Practices Oriented to Create Value 15
Slide 16: Strong Sustainability Focus
Investor Presentation Strong Sustainability Focus GOALS PROGRESS Net zero and GHG Emissions. Achieve net zero by 2040 In June 2022, net zero goal established. for Scope 1, 2 and 3 emissions. Building Certifications. Achieve sustainable certification for 100% ~54% of the portfolio certified (2021 of
Slide 17: World Class Corporate Governance
Investor Presentation World Class Corporate Governance Alignment with Certificate Holders DIVERSE AND EXPERIENCED TECHNICAL COMMITTEE1 COMPOSITION Luis Gutiérrez Alberto Saavedra Carlos Elizondo Mayer-Serra INDEPENDENCY TENURE President for Latin America Partner Dr. Political Science Prologis Inc Sa
Slide 18: Strong Sponsor
INVESTOR PRESENTATION Alamar,Mexico City Strong Sponsor 18
Slide 19: Strong Sponsor
INVESTOR PRESENTATION Strong Sponsor US$196 B US$5.0 B A/A3 Annual Net Operating Credit Ratings Assets under management Income 19 1.2 B 5,495 6,600 Countries Square Feet Buildings Customers Tres Ríos 19
Slide 20: Appendix
INVESTOR PRESENTATION Apodaca, Monterrey Appendix 20
Slide 21: 2023 Guidance
Investor Presentation 2023 Guidance US Dollars in thousands except per CBFI amounts Financial Peformance Low High (A) Full year FFO, as modified by FIBRA Prologis, per CBFI (excludes incentive fees) $ 0.1750 $ 0.1850 Operations Year-end occupancy 97.0% 98.0% Same store cash NOI change 3.0% 5.0% Annu
Slide 22: Creating Value for Certificate Holders
Investor Presentation Creating Value for Certificate Holders TOTAL RETURN OF CBFIS IN MEXICAN PESOS June 4, 2014 – December 31, 2022 235% 216% 185% 143% 31% 69% FIBRAPL Peer A Peer B Peer C Peer D FIBRA Index Stock Return Dividend Return FIBRAPL DISTRIBUTIONS PER CBFI (USD$) & AFFO PAYOUT RATIO (%)
Slide 23: Historical Operating Performance
Investor Presentation Historical Operating Performance ELEVATED PERIOD-END OCCUPANCY 99.5 (%) 98.9 99 98.5 97.9 98 97.4 97.6 97.5 97.3 97.1 96.8 97 96.3 96.5 96.5 96 95.5 95 Q414 Q415 Q416 Q417 Q418 Q419 Q420 Q421 Q422 STRONG POSITIVE RENT CHANGE ON ROLLOVER (%) 26.7 30.0 24.6 25.0 19.6 16.0 16.3 15
Slide 24: Historical Growth
Investor Presentation Historical Growth NOI GROWTH ADJUSTED EBITDA GROWTH Millions of USD Millions of USD 280 240 240 200 200 160 160 120 120 80 80 40 40 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2015 2016 2017 2018 2019 2020 2020 2022 FFO GROWTH AFFO GROWTH Millions of USD Millions of USD 200 120
Slide 25: Historical Credit Metrics
Investor Presentation Historical Credit Metrics DEBT % OF INVESTMENT PROPERTIES FIXED CHARGE COVERAGE RATIO 40% 5X 4X 30% 3X 20% 2X 10% 1X 0% 0 Q416 Q417 Q418 Q419 Q420 Q421 Q422 Q416 Q417 Q418 Q419 Q420 Q421 Q422 DEBT TO ADJUSTED EBITDA LIQUIDITY1 Millions of USD 6X 750 5X 600 4X 450 3X 2X 300 1X 1
Slide 26: Portfolio Growth Since IPO
Investor Presentation Portfolio Growth Since IPO GROSS LEASABLE AREA Thousands of SF, June 4, 2014 through December 31, 2022 41,000 37,000 33,000 29,000 25,000 IPO IP 4Q 2014 4Q 2015 4Q 2016 4Q 2017 4Q 2018 4Q 2019 4Q 2020 4Q 2021 4Q 4Q2022 2022 O REAL ESTATE PORTFOLIO(1)(2)(3) Thousands of USD$ +14
Slide 27: 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; Leasing Commission 2.5% x lease value for 6-10 yrs; ½ at closing 1.25% x lease value for > 10
Slide 28: 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 29: Mexico City
Investor Presentation Mexico City 29
Slide 30: Guadalajara
Investor Presentation Guadalajara 30
Slide 31: Monterrey
Investor Presentation Monterrey 31
Slide 32: Tijuana
Investor Presentation Tijuana 32
Slide 33: Ciudad Juárez
Investor Presentation Ciudad Juárez 33
Slide 34: Reynosa
Investor Presentation Reynosa 34
Slide 35: FIBRA Prologis
FIBRA €*; PROLOGIS’
Fibra Prologis Reit Ctfs — Q1 2023 Earnings Presentation on 6ix