Prologis Property Mexico, S.a. De C.v. · BMV:FIBRAPL/14
Prologis Property Mexico, S.a. De C.v — Fibra Prologis Reit Ctfs — Q4 2024 Earnings Presentation
45 slides from Prologis Property Mexico, S.a. De C.v's earnings presentation, Feb 25, 2025
Slide 1: Investor Presentation
Prologis Park Toluca, Edo Mexico Investor Presentation November 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 Center, Juarez Resilient Investment Strategy 3
Slide 4: Why invest in FIBRA Prologis?
Investor Presentation Why invest in FIBRA Prologis? US$8.8B US$270M US$0.141 Assets under 2023 Annual Net 2024E Distribution per management (1) Operating Income CBFI BBB+/BBB+ 89.5 M 514 520 Credit Ratings Square Feet(2) Buildings(2) Customers(2) World class Sponsor: PLD Note: Information as of Sept
Slide 5: FIBRA Prologis at a Glance
INVESTOR PRESENTATION 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 64.1 Attractive industrial real estate in Mexico in the si
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 Ciudad Juarez 4.8 MSF FIBRA Prologis Markets 7.7 MSF 94.4 % Occupancy Terrafina 98.1% Period End Occupancy(1) Tijuana 6.6 MSF 97.8% 1.3 MSF 99.3% Occupancy Average Occupancy(1) Reynosa 5.4 MSF 89.5 0
Slide 7: Logistics Real Estate is essential infrastructure for commerce
INVESTOR PRESENTATION Logistics Real Estate is essential infrastructure for commerce 7
Slide 8: Customer proximity is valuable
INVESTOR PRESENTATION Customer proximity is valuable Distribution of Global Supply Chain Costs % Fixed facility costs (including rent) 3-6 Inventory costs 12-16 Variable facility costs (including labor) 15-25 Transportation 45-70 Other costs 7-12 Source: Deloitte, Kearney, IMS Worldwide, Prologis Re
Slide 9: Mexico Logistics Real Estate Fundamentals
INVESTOR PRESENTATION Mexico Logistics Real Estate Fundamentals1 DEMAND (T12M) VS SUPPLY PIPELINE DEMAND VS SUPPLY VACANCY • Market vacancy of 3.0% as of (MSF) (MSF) (%) 3Q24, up 130bps vs. 1Q but well below the 4.8% 10-year Mkt Vacancy 48 10 average. 2.2% 44 • The increase in vacancy has Mexico Cit
Slide 10: Mexico: Nearshoring is the Main Structural Shift
INVESTOR PRESENTATION Mexico: Nearshoring is the Main Structural Shift Mexican industrial real estate gains momentum due to manufacturing capacity expansion GROSS FIXED CAPITAL FORMATION- IMPORTED MACHINERY AND EQUIPMENT, 2014- AUGUST 2024 (INDEXED, BASE 100: 2018, VOLUME-BASED) • Nearshoring has re
Slide 11: Mexico: Nearshoring is the Main Structural Shift
INVESTOR PRESENTATION Mexico: Nearshoring is the Main Structural Shift Mexico steadily gaining share in key sectors, with more to come. U.S. GOODS’ IMPORTS BY PARTNER (1)(2) ($B, INFLATION AND SEASONALLY ADJUSTED) • Mexico is now the U.S. largest 300 individual trade partner. 250 • So far, Mexico’s
Slide 12: Mexico: E-commerce is a Resilient Driver of Expansion
INVESTOR PRESENTATION Mexico: E-commerce is a Resilient Driver of Expansion E-commerce sales in Mexico grew 25% in 2023 E-commerce sales and penetration Efficiency $B SF per $B of sales 55 E-commerce 16.1% 19.4% penetration rate 45 35 E-commerce 25 Brick-and- +3x 15 mortar 5 2019 2021 2023 2025F 202
Slide 13: Low Risk Business Model
Apodaca, Monterrey Low Risk Business Model 13
Slide 14: Potential Market Rental Growth (excludes Terrafina)
INVESTOR PRESENTATION Potential Market Rental Growth (excludes Terrafina) LEASE EXPIRY PROFILE BY GLA & AVERAGE IN-PLACE RENT 14.00 50% $11.23 $11.57 $10.58 $10.90 12.00 $9.96 $10.26 40% 10.00 6.03 6.63 7.05 6.94 30% 8.00 6.23 6.32 6.00 20% 4.00 2.00 10% 2% 18% 14% 8% 18% 40% - 0% 2024 2025 2026 202
Slide 15: Embedded growth potential
INVESTOR PRESENTATION Embedded growth potential Market rent spread Replacement rent spread to market, to in-place1 development submarkets3 51% 3% 1. Source: Prologis Research. In-place rent reflects Prologis Mexico Owned & Managed Net Effective Rent (excluding Terrafina). 2. Source: Prologis Researc
Slide 16: Diversified Customer Base (excluding Terrafina)
INVESTOR PRESENTATION Diversified Customer Base (excluding Terrafina) 247 Customers Our top 10 customers represent 24.5% of net effective rent 362 leases 83.8% of FIBRA Prologis’ customers are or are affiliated with multinational companies as a percentage of net effective rent CUSTOMER INDUSTRY % OF
Slide 17: Identified External Growth Pipeline
Investor Presentation Sponsor Identified External Growth Pipeline EXTERNAL GROWTH VIA PROLOGIS DEVELOPMENT PIPELINE (MSF) (A) UNIQUE COMPETITIVE ADVANTAGE • Proprietary access to Prologis Terrafina(C) Prologis (D) development pipeline at market New Land Development Land Bank &Expansion values Develo
Slide 18: A Fortress Balance Sheet
Investor Presentation A Fortress Balance Sheet Fixed Charge Loan to Value Debt / Adjusted-EBITDA Coverage Ratio 23.3% 5.0x 5.3x Weighted Average Interest Weighted Average Liquidity Rate Remaining Maturity 4.8% US$728M 5.6Yrs Data as of September 30, 2024. Note: Terrafina and Fibra Prologis are combi
Slide 19: FIBRA Prologis Strong Financial Position (excluding Terrafina)
Investor Presentation FIBRA Prologis Strong Financial Position (excluding Terrafina) BBB+/BBB+/BBB rated by S&P/HR Ratings/Fitch1 DEBT METRICS 3Q2024 DEBT MATURITY SCHEDULE Total debt $1,068M (USD$ in millions) Wtd avg rate 4.3% Unsecured Debt $1 Secured Debt USD denominated 100% Wtd avg term 5.1 yr
Slide 20: Terrafina's Financial Position
Investor Presentation Terrafina´s Financial Position BBB/BBB/Baa3 rated by S&P/Fitch / Moodys1 DEBT METRICS 3Q2024 Total debt $1,098M DEBT MATURITY SCHEDULE (USD$ in millions) Wtd avg rate 5.4% Unsecured Debt Secured Debt USD denominated 100% $1 Wtd avg term 3.3 yrs Available liquidity USD2 $200M 33
Slide 21: Best Practices Oriented to Create Value
Park Toluca, Edo. Mexico Best Practices Oriented to Create Value 21
Slide 22: Ambitious net zero goals
Investor Presentation Ambitious net zero goals Committed to Deploy 1 GW of net zero and launched onsite solar key partnerships supported by storage Submitted target to Science Based Targets Carbon neutral Net zero for Net zero for initiative for validation for construction operations value chain and
Slide 23: World Class Corporate Governance
INVESTOR PRESENTATION 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 Prol
Slide 24: Strong Sponsor
Jalisco Center, Guadalajara Strong Sponsor 24
Slide 25: PLD - The leader in logistics real estate
PLD- The leader 5,600 6,700 $218B $41B in logistics real Buildings Customers Assets under Build out of land management bank (TEI1) estate 1.2B square feet across four continents, 20 countries Other Americas U.S. Europe Asia 88 MSF 800 MSF 247 MSF 114 MSF 354 buildings 3,829 buildings 1,138 buildin
Slide 26: Leveraging the Sponsor
Investor Presentation Leveraging the Sponsor Asset management Platform Public REITs New frontiers Largest global owner of Largest by market cap in the Leading global logistics- > Sustainable energy logistics real estate world focused asset manager Solar, storage, and mobility systems > Digital infra
Slide 27: Appendix
Independencia,Juarez Appendix 27
Slide 28: 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 (B) Full year FFO, as modified by FIBRA Prologis, per CBFI (excludes incentive fees) $ 0.1900 $ 0.1950 Operations Year-end occupancy 97.5% 98.5% Same store cash NO
Slide 29: Proven track record
Investor Presentation Proven track record Total Return FFO per CBFI 2 341% 0.1881 112% 0.1809 224% 307% 0.1654 0.1633 68% 118% 0.1407 0.1295 Fibrapl Fibra Index Vesta Fibramq Funo FMTY Dividend Growth1 (CAGR) 0.0800 7% 14% 10% 2% -5% Fibrapl FUNO MQ FMTY Vesta 2014 2015 2019 2020 2022 2023 YTD Publi
Slide 30: Creating Value for Certificate Holders
Investor Presentation Creating Value for Certificate Holders TOTAL RETURN OF CBFIS IN MEXICAN PESOS June 4, 2014 – September 30, 2024 311% 337% 238% 189% 109% 54% FIBRAPL Peer A Peer B Peer C Peer D FIBRA Index Stock Return Dividend Return FIBRAPL DISTRIBUTIONS PER CBFI (USD$) & AFFO PAYOUT RATIO (%
Slide 31: Historical Operating Performance
Investor Presentation Historical Operating Performance ELEVATED PERIOD-END OCCUPANCY 101 (%) 99.8 100 98.9 99 97.9 98.1 98 97.3 97.4 97.6 96.8 97.1 97 96.3 96.5 96 95 94 Q414 Q415 Q416 Q417 Q418 Q419 Q420 Q421 Q422 Q423 Q324 STRONG POSITIVE RENT CHANGE ON ROLLOVER (%) 70.0 58.1 56.20 60.0 46.5 47.8
Slide 32: 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 2020 2022 2023 YTD 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD FFO GROWTH AFFO GROWTH Millions of U
Slide 33: Historical Credit Metrics
Investor Presentation Historical Credit Metrics DEBT % OF INVESTMENT PROPERTIES FIXED CHARGE COVERAGE RATIO 40% 8x 7x 30% 6x 5x 20% 4x 3x 10% 2x 1x 0% 0x Q417 Q418 Q419 Q420 Q421 Q422 Q423 Q324 Q417 Q418 Q419 Q420 Q421 Q422 Q423 Q324 DEBT TO ADJUSTED EBITDA LIQUIDITY1 Millions of USD 900 6x 750 5x 6
Slide 34: Portfolio Growth Since IPO
Investor Presentation Portfolio Growth Since IPO GROSS LEASABLE AREA1 Thousands of SF, June 4, 2014 through September 30, 2024 69,000 65,000 61,000 57,000 53,000 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 2023 3
Slide 35: Fee Structure: Administration Fees
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 36: Fee Structure
INVESTOR PRESENTATION Fee Structure Aligned with the market G&A AND ADMINISTRATION FEES ANNUALIZED PAID YTD FIBRAPL FIBRAPL + Terra FIBRA MQ FUNO FIBRA Mty Vesta (new structure) (new structure) Administration / 39 56 15 57 Management Fees (1) - - Prof Fees + Other G&A 5 9 7 124 12 34 Payroll - - - -
Slide 37: Strategic Acquisition of Prologis 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 38: Mexico City
Investor Presentation Mexico City 38
Slide 39: Toluca
Investor Presentation Toluca 39
Slide 40: Guadalajara
Investor Presentation Guadalajara 40
Slide 41: Monterrey
Investor Presentation Monterrey 41
Slide 42: Tijuana
Investor Presentation Tijuana 42
Slide 43: Ciudad Juárez
Investor Presentation Ciudad Juárez 43
Slide 44: Reynosa
Investor Presentation Reynosa 44
Slide 45: FIBRA Prologis
FIBRA €*; PROLOGIS’
Fibra Prologis Reit Ctfs — Q4 2024 Earnings Presentation on 6ix