Prologis Property Mexico, S.a. De C.v. · BMV:FIBRAPL/14
Prologis Property Mexico, S.a. De C.v — FIBRA Prologis — Investor Presentation (November 2022)
35 slides from Prologis Property Mexico, S.a. De C.v's investor presentation, November 2022
Slide 1: FIBRA Prologis Investor Presentation November 2022
Prologis Park Los Altos, ParkTres Guadalajara Rios Grande, Mexico City FIBRA PROLOGIS Investor Presentation November 2022
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 Park Tres Rios, Prologis Apodaca, Park Mexico Toluca Monterrey Resilient Investment Strategy
Slide 4: Why invest in FIBRA Prologis?
Why invest in FIBRA Prologis? 33% FIBRA Prologis 2021 Total Shareholder Return vs 7.4% FIBRA Index US$3.9B US$210M US$0.12 Assets under 2021 Annual Net 2022E Distribution management Operating Income per CBFI BBB/BBB+ 43.4 M 228 240 Credit Ratings Square Feet Buildings(1) Customers World class Sponso
Slide 5: 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 Stock Price 26.0 51.2 Irreplaceable industrial real estate in Mexico in the six
Slide 6: Unmatched Portfolio Focused on the Top Consumption and Manufacturing Markets
Unmatched Portfolio Focused on the Top Consumption and Manufacturing Markets 6 > 10MSF Markets Tijuana 98.5% Ciudad Juarez 5MSF to 10MSF GLA 5.7 MSF GLA 3.9 MSF 3MSF to 5MSF Period End Occupancy(1) 100.0% Occupancy 96.7% Occupancy 100% Occupancy(3) 98.2% Reynosa Average Occupancy(1) GLA 5.0 MSF 43.4
Slide 7: Real Estate Market Fundamentals
Real Estate Market Fundamentals1 DEMAND (T12M) VS SUPPLY (PIPELINE) DEMAND VS SUPPLY VACANCY • Market vacancy expected to reach (MSF) (MSF) (%) record lows: >1% towards the end of the year Mkt Vacancy 10 • Increasing demand due to supply 32 chain reconfigurations and limited supply caused by develop
Slide 8: Nearshoring as a Rising Structural Demand
Nearshoring as a Rising Structural Demand Mexican logistics real estate gain momentum Nearshoring demand by country of origin – Top 5 China USA Chinese companies have Japan generated +50% of the total nearshoring demand Germany 9M22 2021 2020 2019 South Korea sf M 0.0 1.0 2.0 3.0 4.0 5.0 Nearshoring
Slide 9: E-commerce strengthening the expansion
E-commerce strengthening the expansion By 2026, E-commerce penetration1 in Mexico is expected to have doubled vs 2021 and e-commerce sales would have expanded at 16% CAGR2 E-COMMERCE SALES AND PENETRATION RATE E-COMMERCE GLOBAL PENETRATION RATE1 • E-commerce is tailwind for IN MEXICO1 logistics real
Slide 10: Low Risk Business Model
Prologis Santa Park Maria Toluca, Apodaca, Park, Mexico Monterrey Mexico City Low Risk Business Model
Slide 11: Potential Market Rental Growth
Potential Market Rental Growth LEASE EXPIRY PROFILE BY ANNUALIZED NER & AVERAGE IN-PLACE RENT $9.00 $7.78 $7.95 $8.12 $8.30 $8.47 $8.72 25% $8.00 $7.07 $7.45 $6.58 $7.00 $5.74 $5.87 $5.93 $6.13 20% $6.00 $5.91 $5.38 $5.45 15% $5.00 $4.00 10% $3.00 $2.00 5% $1.00 4% 12% 9% 23% 15% 7% 8% 21% $0.00 0%
Slide 12: Diversified Customer Base
Diversified Customer Base 240 CUSTOMER TYPE CUSTOMER INDUSTRY %, NER basis %, NRA basis customers in Mexico have 1% 20.5% 15% 351 leases with FIBRA 7% Prologis B2B 15.6% 14.0% 23% 86.2% of FIBRA Prologis’ 40% 9.6% 8.7% 8.6% 8.3% customers are multinational 7.4% companies(1) 13% Retail 4.7% 3PL 2.4%
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
Strong Financial Position BBB/BBB+ rated by Fitch/HR Ratings1 DEBT METRICS 3Q2022 DEBT MATURITY SCHEDULE Total debt $1,151M (USD$ in millions) Wtd avg rate 4.0% LOC $130* Unsecured Debt USD denominated 100% $1 Secured Debt *Paid in Wtd avg term 6.7 yrs Oct Available liquidity USD2 $403 M $150 $176 $
Slide 15: Best Practices Oriented to Create Value
Prologis Centro Industrial Los Del Norte, altos, Alamos Reynosa 2,Guadalajara Mexico City Best Practices Oriented to Create Value
Slide 16: Strong Sustainability Focus
Strong Sustainability Focus GOALS PROGRESS Net zero and GHG Emissions. Achieve net zero by In June 2022, net zero goal established. 2040 for Scope 1, 2 and 3 emissions. Building Certifications. Achieve sustainable certification for ~49% of the portfolio certified. 100% of operating portfolio (by are
Slide 17: World Class Corporate Governance
World Class Corporate Governance Alignment with Certificate Holders DIVERSE AND EXPERIENCED TECHNICAL COMMITTEE1 COMPOSITION Luis Gutiérrez Alberto Saavedra President for Latin America Partner INDEPENDENCY TENURE GENDER Prologis Inc Santa Marina y Steta Prologis Eugene F. Reilly Gimena Peña Malcampo
Slide 18: Strong Sponsor
Alamar,Mexico City Strong Sponsor
Slide 19: Strong Sponsor
Strong Sponsor US$165B US$3.7B A/A3 Assets under Annual Net Operating Credit Ratings management Income 19 1B 4,914 5,800 Countries Square Feet Buildings Customers Prologis South Brunswick 19
Slide 20: Appendix
Prologis Industrial Park Juarez Alamar,Mexico Periferico City sur, Guadalajara Appendix
Slide 21: 2022 Guidance
2022 Guidance US Dollars in thousands except per CBFI amounts A. FFO (as modified by FIBRA Prologis) guidance excludes the impact of Mexican Peso movements as U.S. Dollar is the functional currency of FIBRA Prologis. B. G&A excludes any potential incentive fee. 21
Slide 22: Creating Value for Certificate Holders
Creating Value for Certificate Holders TOTAL RETURN OF CBFIS IN MEXICAN PESOS June 4, 2014 – July 20, 2022 204% 167% 169% 94% 15% 54% FIBRAPL Peer A Peer B Peer C Peer D FIBRA Index Stock Return Dividend Return FIBRAPL DISTRIBUTIONS PER CBFI (USD$) & AFFO PAYOUT RATIO (%) (1) $0.14 0.1240 0.1240 0.1
Slide 23: Historical Operating Performance
Historical Operating Performance ELEVATED PERIOD-END OCCUPANCY (%) 97.6 97.9 97.6 97.8 97.4 97.3 97.3 97.4 97.5 97.1 97 96.6 96.7 96.8 96.6 96.8 96.8 96.7 96.3 96.3 96.5 96.4 96.4 96.4 96.5 96.4 96.4 96 96.0 95.9 95.5 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q4
Slide 24: Historical Growth
Historical Growth NOI GROWTH ADJUSTED EBITDA GROWTH Millions of USD Millions of USD 240 240 200 200 160 160 120 120 80 80 40 40 0 0 2015 2016 2017 2018 2019 2020 2021 3Q22 2015 2016 2017 2018 2019 2020 2020 3Q22 FFO GROWTH AFFO GROWTH Millions of USD Millions of USD 160 120 140 100 120 80 100 80 60
Slide 25: Historical Credit Metrics
Historical Credit Metrics DEBT % OF INVESTMENT PROPERTIES FIXED CHARGE COVERAGE RATIO 40% 5X 4X 30% 3X 20% 2X 10% 1X 0% 0 Q416 Q417 Q418 Q419 Q420 Q421 Q322 Q416 Q417 Q418 Q419 Q420 Q421 Q322 DEBT TO ADJUSTED EBITDA LIQUIDITY1 Millions of USD 6X 600 5X 450 4X 3X 300 2X 150 1X 0 0 Q416 Q417 Q418 Q419
Slide 26: Portfolio Growth Since IPO
Portfolio Growth Since IPO GROSS LEASABLE AREA Thousands of SF, June 4, 2014 through September 30, 2022 41,000 37,000 33,000 29,000 25,000 IPO IPO 4Q 2014 4Q 2015 4Q 2016 4Q 2017 4Q 2018 4Q 2019 4Q 2020 4Q 2021 3Q 2022 2Q 2022 REAL ESTATE PORTFOLIO(1)(2)(3) Thousands of USD$ +142% Total +70% growth
Slide 27: Fee Structure
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 yrs Only when no brok
Slide 28: Strategic Acquisition of Prologis Park Grande Completed April 2020
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 customers and consolidatio
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 Anita © LaCalerilla Santa Cruz © Del Valle LaUnion 4 "= Juanacatian ? |. Concepci San Sebastian Del Val ElGrande © Tlajomulco Industrial Corridors @ Development Properties & Land (e) Prologis Stabiliz
Slide 31: Monterrey
Monterrey Toto. © Cienega de Flores Garza Garcia ° Industrial Corridors. @) Development Properties & Land (©) Prologie Stabilized Assets (~) FIBRAPL Assets FIBRA 31 € > PROLOGIS'
Slide 32: Tijuana
Tijuana rridors () Pipeline Assets (_) FIBRAPL Assets ~~ FIBRA 32 € PROLOGIS’
Slide 33: Ciudad Juarez
Ciudad Juarez 33 Indus Assets BRA € PROLOGIS’
Slide 34: Reynosa
Reynosa FIBRA € PROLOGIS’
Slide 35: FIBRA
FIBRA €*; PROLOGIS’
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