Prologis Property Mexico, S.a. De C.v. · BMV:FIBRAPL/14
Prologis Property Mexico, S.a. De C.v — FIBRA Prologis — Investor Presentation (November 2021)
35 slides from Prologis Property Mexico, S.a. De C.v's investor presentation, November 2021
Slide 1: FIBRA Prologis Investor Presentation November 2021
Prologis Park Apodaca FIBRA PROLOGIS Investor Presentation November 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: FIBRA Prologis at a Glance
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 44.8 Stock Price 26.0 Irreplaceable industrial real estate in Mexico in the six
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 97.0% Ciudad Juarez GLA 4.2 MSF GLA 3.7 MSF Occupancy(1) 100.0% Occupancy 95.3% Occupancy 40.6 Reynosa Million Square Feet GLA 4.7 MSF 89.6% Occupancy 208 Operating Properties(2) Monterrey GLA 5.8 MSF 16.4
Slide 6: Real Estate Fundamentals
Real Estate Fundamentals1 DEMAND (T12M) VS SUPPLY (PIPELINE) DEMAND VS SUPPLY VACANCY (MSF) (MSF) (%) • Vacancy in the six main 10 Mexico markets was 2.8%, 28 border markets remain Tijuana mostly constrained with 24 8 market vacancy below 1.5% Reynosa • Record absorption for FY21 20 6 • Demand signi
Slide 7: Attractive value opportunity present in Mexico
Attractive value opportunity present in Mexico Market cap rate % • Asset values and rolling rents gradually pricing in 9.0 increases in replacement 8.5 costs and land scarcity 8.0 • Replacement costs have increased ~25% YTD and 7.5 land values ~60% YTD 7.0 • Mexico among the few 6.5 value opportunit
Slide 8: 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 TOTAL MANUFACTURED GOODS IMPORTS FROM MEXICO AS % OF IMPORTS FROM ASIAN LOW-COST COUNTRIES 52% Efficiency Regionalization Resiliency 50% inventory is waste inventory as a
Slide 9: E-commerce strengthening the expansion
E-commerce strengthening the expansion By 2025, E-commerce in Mexico will grow 226%, representing a 58% growth in retail earnings3 • E-commerce is tailwind for logistics real estate demand, E-COMMERCE SALES AND PENETRATION RATE1 E-COMMERCE SUPPLY CHAIN EFFICIENCY2 especially in Mexico City USD$ B, c
Slide 10: Last Touch: Location Matters
Last Touch®: Location Matters Ensuring our customers have the facilities they need in large, dense, supply-constrained urban areas CONTINUUM OF LOGISTICS REAL ESTATE LOCATION REQUIREMENTS Production Consumption Raw International Retail material manufacturing/ centers supplies Order consolidation San
Slide 11: Low Risk Business Model
Centro Industrial Juarez, Ciudad Juarez Low Risk Business Model
Slide 12: Potential Market Rental Growth
Potential Market Rental Growth Market rent in 2021 is expected to have a low double-digit growth LEASE EXPIRY PROFILE BY ANNUALIZED NER & AVERAGE IN-PLACE RENT 24% 22% 16% 13% 11% 9% 2% 3% $5.06 $5.41 $5.25 $5.42 $5.61 $5.80 $5.51 $6.20 2021 2022 2023 2024 2025 2026 2027 2028+ PORTFOLIO STATISTICS C
Slide 13: Diversified Customer Base
Diversified Customer Base 222 CUSTOMER TYPE CUSTOMER INDUSTRY %, NER basis %, NRA basis customers in Mexico have 2% 21% 16% 8% 329 leases with FIBRA 16% 14% Prologis 22% B2B 38% 10% 87% of FIBRA Prologis’ 14% 9% 8% 8% 7% customers are multinational companies(1) 3PL Retail 5% 3% E- Commerce Our top 1
Slide 14: 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 15: Strong Financial Position
Strong Financial Position BBB/BBB+ rated by Fitch/HR Ratings1 DEBT METRICS Q3 2021 DEBT MATURITY SCHEDULE Total debt $873M (USD$ in millions) Wtd avg rate 3.9% Unsecured Debt $1 Secured Debt USD denominated 100% Wtd avg term 9.8 yrs $150 $145 $125 $125 $107 $100 Green debt 71.1% $80 $25 $15 Availabl
Slide 16: Best Practices Oriented to Create Value
Los Altos 5, Guadalajara Best Practices Oriented to Create Value
Slide 17: Strong Sustainability Focus
Strong Sustainability Focus ENVIRONMENTAL • 100% of LED lighting of the portfolio by 2025, currently 50% • Increase our building green certification to 50% by 2022, currently 33%1 • 24% of total operating portfolio has cool or reflective roofing2 GRESB Sector Leader 2021 Listed • Start a solar energ
Slide 18: World Class Corporate Governance
World Class Corporate Governance Alignment with Certificate Holders Philosophy Technical Committee Members • Our governance structure reflects a market- • Technical Committee members are ratified leading approach to corporate governance annually by certificate holders prioritizing the interests of o
Slide 19: Creating Value for Certificate Holders
Creating Value for Certificate Holders TOTAL RETURN OF CBFIS IN MEXICAN PESOS June 4, 2014 – October 26, 2021 172% 162% 150% 86% 41% -1% FIBRAPL Peer A Peer B Peer C Peer D FIBRA Index Stock Return Dividend Return FIBRAPL DISTRIBUTIONS USD$ (2) $100 $91 $79 $80 $77 $75 $80 $70 $63 $60 $48 (3) $40 $2
Slide 20: Appendix
Apodaca 9, Monterrey Appendix
Slide 21: Historical Operating Performance
Historical Operating Performance ELEVATED PERIOD-END OCCUPANCY (%) 97.4 97.3 97.4 97.5 97.6 97.3 97.1 97 96.6 96.7 96.8 96.6 96.8 96.8 96.7 96.3 96.3 96.5 96.4 96.4 96.4 96.5 96.4 96.4 96 96.0 95.9 95.5 Q414Q115Q215Q315Q415Q116Q216Q316Q416Q117Q217Q317Q417Q118Q218Q318Q418Q119Q219Q319Q419Q120Q220Q320Q
Slide 22: Historical Growth
Historical Growth NOI GROWTH ADJUSTED EBITDA GROWTH Millions of USD Millions of USD 180 180 150 150 120 120 90 90 60 60 30 30 0 0 2015 2016 2017 2018 2019 2020 YTD 2015 2016 2017 2018 2019 2020 YTD FFO GROWTH AFFO GROWTH Millions of USD Millions of USD 140 100 120 80 100 80 60 60 40 40 20 20 0 0 201
Slide 23: Historical Credit Metrics
Historical Credit Metrics DEBT % OF INVESTMENT PROPERTIES FIXED CHARGE COVERAGE RATIO 40% 5X 4X 30% 3X 20% 2X 10% 1X 0% 0 Q416 Q417 Q418 Q419 Q420 Q321 Q416 Q417 Q418 Q419 Q420 Q321 DEBT TO ADJUSTED EBITDA LIQUIDITY1 Millions of USD 6X 600 5X 450 4X 3X 300 2X 150 1X 0 0 Q416 Q417 Q418 Q419 Q420 Q321
Slide 24: Portfolio Growth Since IPO
Portfolio Growth Since IPO GROSS LEASABLE AREA Thousands of SF, June 4, 2014 through December 31, 2020 41,000 37,000 33,000 29,000 25,000 IPO IPO 4Q 2014 4Q 2015 4Q 2016 4Q 2017 4Q 2018 4Q 2019 4Q 2020 3Q 3Q2021 2021 REAL ESTATE PORTFOLIO(1)(2)(3) Thousands of USD$ +71% Total +21% Internal $2,700 $0
Slide 25: Superior High-Barrier Market Concentration Versus Peers
Superior High-Barrier Market Concentration Versus Peers Supply Chain Center Growth Economy Global Metropolis High-Barrier FIBRAPL Others FIBRAPL Others 35% 28% 36% 28% Lower-Barrier FIBRAPL Others FIBRAPL Others 0% 30% 29% 13% Subtotal FIBRAPL Others FIBRAPL Others FIBRAPL Others 35% 58% 29% 13% 36%
Slide 26: Administration Fees
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 27: YTD Share Performance and Analyst Recommendations
YTD Share Performance and Analyst Recommendations $55 100% 7% 7% 7% 7% 7% 7% 7% 7% 7% 24% 21% 21% 80% 29% 29% 38% 36% 36% 35% $50 60% 71% 40% 54% 71% 69% $45 64% 64% 57% 57% 58% 20% $40 0% Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Buy Hold Sell Last Price Avg. TP 27 1. As of Sep
Slide 28: 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 29: Mexico City
Mexico City 29 ° FIBRA €>} PROLOGIS’
Slide 30: Guadalajara
Guadalajara Wwoniso © Guadalajara © San Pedro Tlaquepaque Tonala © San Martin De Las Flores Santa Cruz © Del Valle La Union sjuanacatia San Sebastian © Del Cuatro” laa ElGrande lajomulco ymuleo Industrial Corridors @) Development Properties & Land (e) Prologis Stabilized Assets) FIBRAPL Assets FIBRA
Slide 31: Monterrey
Monterrey 31 San Nicolas de los Garza Caredo, rx © Cienega de Flores Industrial Corridors (@) Development Properties & Land @ Prologis Stabilized Assets O FIBRAPL Assets FIBRA €>; PROLOGIS
Slide 32: Tijuana
Tijuana FIBRA 32 €>; PROLOGIS
Slide 33: Ciudad Juarez
Ciudad Juarez 33 Zz, Tae TEXAS ° industrial Corridors (D) Development Properties & Land (Q) Prologis Stabilized Assets © risraet Assets FIBRA €>} PROLOGIS’
Slide 34: Reynosa
Reynosa 2 << | | Industrial Corridors () Pipeline Assets (_) FIBRAPL Assets FIBRA € PROLOGIS’
Slide 35: FIBRA Prologis
FIBRA €*; PROLOGIS’
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