Prologis Property Mexico, S.a. De C.v. · BMV:FIBRAPL/14
Prologis Property Mexico, S.a. De C.v — Fibra Prologis Reit Ctfs — Q3 2024 Earnings Presentation
38 slides from Prologis Property Mexico, S.a. De C.v's earnings presentation, Oct 30, 2024
Slide 1: Investor Presentation
Prologis Park Toluca, Edo Mexico Izcalli,Mexico city Investor Presentation July 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?
Why invest in FIBRA Prologis? US$5.4B US$270M US$0.141 Assets under 2023 Annual Net 2024E Distribution per management Operating Income CBFI BBB+/BBB+ 46.9 M 236 245 Credit Ratings Square Feet Buildings(1) Customers World class Sponsor: PLD Note: Information as of June 30, 2024 1. Includes value-adde
Slide 5: FIBRA Prologis at a Glance
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 59.8 Attractive industrial real estate in Mexico in the six most dynamic markets
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 98.4% GLA 6.6 MSF 97.6% Occupancy GLA 4.8 MSF 88.8% Occupancy 3MSF to 5MSF Period End Occupancy(1) 98.6% Reynosa GLA 5.2 MSF Average Occupancy(1) 9
Slide 7: Mexico Logistics Real Estate Fundamentals
Mexico Logistics Real Estate Fundamentals1 DEMAND (T12M) VS SUPPLY PIPELINE DEMAND VS SUPPLY VACANCY • Market vacancy of 2.7% as of (MSF) (MSF) (%) 2Q24, up 100bps vs. 1Q but Mkt Vacancy well below the 4.8% 10-year 48 10 average. 1.6% Mexico City 44 • The increase in vacancy has 40 been mostly felt
Slide 8: Mexico: Nearshoring is the Main Structural Shift
Mexico: Nearshoring is the Main Structural Shift Mexican industrial real estate gain momentum due to manufacturing capacity expansion GROSS FIXED CAPITAL FORMATION- IMPORTED MACHINERY AND EQUIPMENT, 2014- APRIL 2024 (INDEXED, BASE 100: 2018, VOLUME-BASED) • Nearshoring is already reflecting on econo
Slide 9: Mexico: E-commerce is a Resilient Driver of Expansion
Mexico: E-commerce is a Resilient Driver of Expansion E-commerce sales in Mexico grew 25% in 2023 E-COMMERCE SALES AND PENETRATION RATE IN MEXICO1 E-COMMERCE GLOBAL PENETRATION RATE2 P$$ B % 700 35% 32% 600 30% 500 25% 23% 400 20% 15% 12% 14% 300 11% 10% 200 5% 100 0% 0 Brazil Western Mexico US Asia
Slide 10: Low Risk Business Model
Apodaca, Monterrey Low Risk Business Model 10
Slide 11: Potential Market Rental Growth
Potential Market Rental Growth LEASE EXPIRY PROFILE BY GLA & AVERAGE IN-PLACE RENT 14.00 $12.08 40% $11.17 $11.62 12.00 $10.33 $10.74 $9.93 10.00 30% 7.02 5.92 6.79 7.06 8.00 6.25 6.31 20% 6.00 4.00 10% 2.00 4% 22% 15% 8% 15% 36% - 0% 2024 2025 2026 2027 2028 2029+ 1 Roll Over Avg in-place rent Avg
Slide 12: Diversified Customer Base
Diversified Customer Base 245 Customers Our top 10 customers represent 24.4% of net effective rent 358 leases 83.4% of FIBRA Prologis’ customers are or are affiliated with multinational companies as a percentage of net effective rent Customer Mix E - Commerce 3PL Manufacturing Other Logistics CUSTOM
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
Investor Presentation Strong Financial Position BBB+/BBB+/BBB rated by S&P/HR Ratings/Fitch1 DEBT METRICS 2Q2024 DEBT MATURITY SCHEDULE Total debt $915M (USD$ in millions) Wtd avg rate 4.0% Unsecured Debt $1 Secured Debt USD denominated 100% Wtd avg term 6.0 yrs Available liquidity USD2 $1.2B $170 $
Slide 15: Best Practices Oriented to Create Value
TR8,Mexico city Best Practices Oriented to Create Value 15
Slide 16: Strong Sustainability Focus
Strong Sustainability Focus GOALS SOLAR PROJECT • Net zero and GHG Emissions: Achieve net zero by 2040 for Scope 1, 2 and 3 emissions. Reduced Scope 1 and 2 emissions by 40% and scope 3 by 2% • Renewable energy: Use renewable energy to provide for 100% of our customers’ energy needs by 2030. Achieve
Slide 17: World Class Corporate Governance
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 Prologis Inc Oxford Univer
Slide 18: Strong Sponsor
Toluca 4, Mexico city Strong Sponsor 18
Slide 19: Global portfolio with a focus on high-barrier, high-growth markets
Global portfolio with a focus on high-barrier, high-growth markets $199B $107B PLD A3/A 1.2B $39.6B 6,700 2.8% U.S. EUROPE ASIA OTHER AMERICAS Note: Data as of June 30, 2024. 1. A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal a
Slide 20: Leveraging the Sponsor Global and world class team
Leveraging the Sponsor Global and world class team Revenue FCPA management Alignment Substantial ownership Financial experience and bank relationships PLD ESG Strategy Performance Fee Top-notch Real Estate systems design Real estate developer, owner and operator World trends 20
Slide 21: Appendix
Apodaca3,Monterrey Appendix 21
Slide 22: 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 (A) Full year FFO, as modified by FIBRA Prologis, per CBFI (excludes incentive fees) $ 0.1850 $ 0.1950 Operations Year-end occupancy 97.5% 98.5% Same store cash NO
Slide 23: Creating Value for Certificate Holders
Investor Presentation Creating Value for Certificate Holders TOTAL RETURN OF CBFIS IN MEXICAN PESOS June 4, 2014 – June 28, 2024 346% 280% 324% 196% 48% 100% FIBRAPL Peer A Peer B Peer C Peer D FIBRA Index Stock Return Dividend Return FIBRAPL DISTRIBUTIONS PER CBFI (USD$) & AFFO PAYOUT RATIO (%) (1)
Slide 24: Historical Operating Performance
Investor Presentation Historical Operating Performance ELEVATED PERIOD-END OCCUPANCY 101 (%) 99.8 100 98.9 99 98.4 97.6 97.9 98 97.3 97.4 97.1 96.5 96.8 97 96.3 96 95 94 Q414 Q415 Q416 Q417 Q418 Q419 Q420 Q421 Q422 Q423 Q224 STRONG POSITIVE RENT CHANGE ON ROLLOVER (%) 70.0 58.1 60.0 46.5 47.8 47.7 5
Slide 25: 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 26: Historical Credit Metrics
Investor Presentation Historical Credit Metrics DEBT % OF INVESTMENT PROPERTIES FIXED CHARGE COVERAGE RATIO 40% 8X 7X 30% 6X 5 X 20% 4 X 3 10% 2X 1X 0% 0 Q417 Q418 Q419 Q420 Q421 Q422 Q423 Q224 Q417 Q418 Q419 Q420 Q421 Q422 Q423 Q224 DEBT TO ADJUSTED EBITDA LIQUIDITY1 Millions of USD 6X 1,350 5X 1,2
Slide 27: Portfolio Growth Since IPO
Investor Presentation Portfolio Growth Since IPO GROSS LEASABLE AREA Thousands of SF, June 4, 2014 through June 30, 2024 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 2Q 2024 REAL ESTATE PORTFOLIO(1)(2)(3) Tho
Slide 28: 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; 2.5% x lease Leasing Commission value for 6-10 yrs; 1.25% x lease value for > 10 yrs ½ at clo
Slide 29: Fee Structure
INVESTOR PRESENTATION Fee Structure Aligned with the market G&A AND ADMINISTRATION FEES PAID IN 2023 FIBRAPL Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Administration / Management 37 15 13 145 Fees (1) - - Professional Fees 4 4 5 8 4 30 Payroll - 3 - - 5 9 Other G&A - 6 - - 6 - Total G&A (US$ M) 41 27 18 15
Slide 30: 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 31: Mexico City
Investor Presentation Mexico City 31
Slide 32: Toluca
Investor Presentation Toluca 32
Slide 33: Guadalajara
Investor Presentation Guadalajara 33
Slide 34: Monterrey
Investor Presentation Monterrey 34
Slide 35: Tijuana
Investor Presentation Tijuana 35
Slide 36: Ciudad Juárez
Investor Presentation Ciudad Juárez 36
Slide 37: Reynosa
Investor Presentation Reynosa 37
Slide 38: FIBRA Prologis
FIBRA €*; PROLOGIS’
Fibra Prologis Reit Ctfs — Q3 2024 Earnings Presentation on 6ix