Prologis Property Mexico, S.a. De C.v. · BMV:FIBRAPL/14
Prologis Property Mexico, S.a. De C.v — FIBRA Prologis — Investor Presentation (May 2022)
37 slides from Prologis Property Mexico, S.a. De C.v's investor presentation, May 2022
Slide 1: FIBRA Prologis Investor Presentation May 2022
Prologis Park Los Altos, Guadalajara FIBRA PROLOGIS Investor Presentation May 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, Mexico 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$3.8B US$210M US$0.12 Assets under Annual Net Operating 2022 Distribution per management Income CBFI BBB/BBB+ 43.4 M 227 238 Credit Ratings Square Feet Buildings(1) Customers World class Sponsor: PLD
Slide 5: FIBRA Prologis at a Glance
FIBRA Prologis at a Glance FIBRA Prologis is a leading Mexican real estate investment trust KEY FINANCIAL AND OPERATIONAL METRICS (2) formed to acquire, own and manage Class-A industrial real estate in 2015 Today Mexico Stock Price 56.8 26.0 Irreplaceable industrial real estate in Mexico in the six
Slide 6: Unmatched Portfolio Focused on the Top Consumption and Manufacturing Markets
Unmatched Portfolio Focused on the Top Consumption and Manufacturing Markets 6 > 10MSF Markets Tijuana 97.6% Ciudad Juarez 5MSF to 10MSF GLA 5.7 MSF GLA 3.9 MSF 3MSF to 5MSF Period End Occupancy(1) 100.0% Occupancy 96.7% Occupancy 97.7% Reynosa Average Occupancy(1) GLA 5.0 MSF 43.4 98.7% Occupancy M
Slide 7: Real Estate Market Fundamentals
Real Estate Market Fundamentals1 DEMAND (T12M) VS SUPPLY (PIPELINE) DEMAND VS SUPPLY VACANCY (MSF) (MSF) (%) • Vacancy rate declined to Mkt Vacancy 10 32 1.1% Tijuana 0.2% • Labor shortages and port 28 8 congestions in the US have Reynosa been fueling demand in 24 border markets 1.1% Juarez 0.7% 20
Slide 8: Nearshoring as a Rising Structural Demand
Nearshoring as a Rising Structural Demand Global supply chain trends underpin the future of Mexican logistics real estate Nearshoring Deals in Mexico ‘The Great Resignation’ USA (job quits Minimum Wage vs job openings) by country of origin USD/month* Thousands, Monthly China 1. High openings + low u
Slide 9: E-commerce strengthening the expansion
E-commerce strengthening the expansion By 2025, E-commerce in Mexico will grow 1.5x1 vs 2020, representing a 58% growth in retail earnings3 E-COMMERCE SALES AND PENETRATION RATE1 • E-commerce is tailwind for GLOBAL PENETRATION RATE USD$ B, current FX % logistics real estate demand, 50 especially in
Slide 10: Low Risk Business Model
Prologis Park Toluca, Mexico 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 $7.79 $7.96 $8.13 $8.29 $8.46 $8.79 25% $8.00 $7.10 $7.47 $6.47 $7.00 $5.65 $5.82 $6.04 20% $5.38 $5.42 $5.61 $5.12 $6.00 15% $5.00 $4.00 10% $3.00 $2.00 5% $1.00 10% 13% 9% 21% 15% 5% 7% 20% $0.00 0%
Slide 12: Diversified Customer Base
Diversified Customer Base 238 CUSTOMER TYPE CUSTOMER INDUSTRY %, NER basis %, NRA basis customers in Mexico have 1.0% 15.4% 7.1% 347 leases with FIBRA 19.5% Prologis B2B 15.4% 22.1% 14.5% 41.1% 86.8% of FIBRA Prologis’ 9.3% 9.1% 9.0% customers are multinational 13.2% 8.3% 7.3% companies(1) Retail 5.
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 1Q2022 DEBT MATURITY SCHEDULE Total debt $1,137M (USD$ in millions) Wtd avg rate 3.7% LOC $392 Unsecured Debt USD denominated 100% $1 Secured Debt Wtd avg term 7.9 yrs Available liquidity USD2 $404M $150 $125 $125 $125 Fixed
Slide 15: Best Practices Oriented to Create Value
Prologis Centro Industrial Del Norte, Reynosa Best Practices Oriented to Create Value
Slide 16: Strong Sustainability Focus
Strong Sustainability Focus ENVIRONMENTAL • 100% of LED lighting of the portfolio by 2025, currently 68% • Increase our building green certification to 100% by 2025, currently 50%1 GRESB Sector Leader 2021 • Solar energy initiative, pilot program in 9 properties Listed SOCIAL (COMMUNITY & EMPLOYEES)
Slide 17: 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 18: Strong Sponsor
Santa María Park, Mexico City Strong Sponsor
Slide 19: Strong Sponsor
Strong Sponsor US$214B US$3.4B A-/A3 Assets under Annual Net Operating Credit Ratings management Income 19 1B 4,675 5,800 Countries Square Feet Buildings Customers Prologis Zama, Japan. 19
Slide 20: Appendix
Prologis Industrial Park Juarez Appendix
Slide 21: Attractive value opportunity present in Mexico
Attractive value opportunity present in Mexico Market cap rate FMV / sf • Asset values and rolling % rents gradually pricing in US$ 9.0 increases in replacement costs and land scarcity 222 8.0 • Mexico among the few value opportunities 7.0 available globally: cap rates relatively high and 6.0 154 co
Slide 22: 2022 Guidance
2022 Guidance US Dollars in thousands except per CBFI amounts Financial Peformance Low High Full year FFO, as modified by FIBRA Prologis, per CBFI (excludes incentive fees) (A) $ 0.1800 $ 0.1900 Operations Year-end occupancy 96.0% 97.0% Same store cash NOI change 3.5% 5.5% Annual capex as a percenta
Slide 23: Creating Value for Certificate Holders
Creating Value for Certificate Holders TOTAL RETURN OF CBFIS IN MEXICAN PESOS June 4, 2014 – March 31, 2022 202% 170% 153% 92% 19% 52% FIBRAPL Peer A Peer B Peer C Peer D FIBRA Index Stock Return Dividend Return FIBRAPL DISTRIBUTIONS PER CBFI (USD$) & AFFO PAYOUT RATIO (%) (1) $0.14 0.1240 0.1240 0.
Slide 24: Historical Operating Performance
Historical Operating Performance ELEVATED PERIOD-END OCCUPANCY (%) 97.6 97.9 97.7 97.4 97.3 97.3 97.4 97.5 97.1 97 96.6 96.7 96.8 96.6 96.8 96.8 96.7 96.3 96.3 96.5 96.4 96.4 96.4 96.5 96.4 96.4 96 96.0 95.9 95.5 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q1
Slide 25: Historical Growth
Historical Growth NOI GROWTH ADJUSTED EBITDA GROWTH Millions of USD Millions of USD 240 240 200 200 160 160 120 120 80 80 40 40 0 0 2015 2016 2017 2018 2019 2020 2021 Q122 2015 2016 2017 2018 2019 2020 2020 Q122 FFO GROWTH AFFO GROWTH Millions of USD Millions of USD 160 120 140 100 120 80 100 80 60
Slide 26: Historical Credit Metrics
Historical Credit Metrics DEBT % OF INVESTMENT PROPERTIES FIXED CHARGE COVERAGE RATIO 40% 5X 4X 30% 3X 20% 2X 10% 1X 0% 0 Q416 Q417 Q418 Q419 Q420 Q421 Q122 Q416 Q417 Q418 Q419 Q420 Q421 Q122 DEBT TO ADJUSTED EBITDA LIQUIDITY1 Millions of USD 6X 600 5X 450 4X 3X 300 2X 150 1X 0 0 Q416 Q417 Q418 Q419
Slide 27: Portfolio Growth Since IPO
Portfolio Growth Since IPO GROSS LEASABLE AREA Thousands of SF, June 4, 2014 through March 31, 2022 41,000 37,000 33,000 29,000 25,000 IPO IPO 4Q 2014 4Q 2015 4Q 2016 4Q 2017 4Q 2018 4Q 2019 4Q 2020 4Q 2021 1Q 2022 1Q 2022 REAL ESTATE PORTFOLIO(1)(2)(3) Thousands of USD$ +135% Total +67% growth $3,7
Slide 28: 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 <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 29: 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 30: Strategic Acquisition of a Third Party Completed December 21
Strategic Acquisition of a Third Party Completed December 2021 TJ One Portfolio • Location: Tijuana and Bajio • Land Size: 2.4 MSF • NRA: 1.6 MSF • 100% leased in USD Strategic Acquisiton: • This portfolio is comprised of 14 Class A industrial space and expansion land, with this properties Prologis
Slide 31: Mexico City
Mexico City 31 FIBRA € PROLOGIS’
Slide 32: 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 33: Monterrey
Monterrey Toto. © Cienega de Flores Garza Garcia ° Industrial Corridors. @) Development Properties & Land (©) Prologie Stabilized Assets (~) FIBRAPL Assets FIBRA 33 € > PROLOGIS'
Slide 34: Tijuana
Tijuana rridors () Pipeline Assets (_) FIBRAPL Assets ~~ FIBRA 34 € PROLOGIS’
Slide 35: Ciudad Juarez
Ciudad Juarez 35 Indus Assets BRA € PROLOGIS’
Slide 36: Reynosa
Reynosa FIBRA € PROLOGIS’
Slide 37: FIBRA
FIBRA €*; PROLOGIS’