Prologis Property Mexico, S.a. De C.v. · BMV:FIBRAPL/14
Prologis Property Mexico, S.a. De C.v — Fibra Prologis Reit Ctfs — Q2 2023 Earnings Presentation
35 slides from Prologis Property Mexico, S.a. De C.v's earnings presentation, Jul 20, 2023
Slide 1: Investor Presentation
Prologis Park Grande, Mexico City Investor Presentation May 2023
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
Agua Fría,Mexico Vallejo, Monterrey City Resilient Investment Strategy 3
Slide 4: Why invest in FIBRA Prologis?
Why invest in FIBRA Prologis? US$4B US$239M US$0.13 Assets under 2022 Annual Net 2023E Distribution per management Operating Income CBFI BBB/BBB+ 43.6 M 225 240 Credit Ratings Square Feet Buildings(1) Customers World class Sponsor: PLD Note: Information as of March 31, 2023 1. Includes value-added a
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 65.2 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 6.3 MSF 100.0% Occupancy GLA 3.5 MSF 97.5% Occupancy 3MSF to 5MSF Period End Occupancy(1) 98.4% Reynosa GLA 4.6 MSF Average Occupancy(1)
Slide 7: Logistics Real Estate Fundamentals
Logistics Real Estate Fundamentals1 DEMAND (T12M) VS SUPPLY PIPELINE DEMAND VS SUPPLY VACANCY (MSF) (MSF) (%) • Market vacancy of 1.1%, historical lows Mkt Vacancy 36 10 • We expect increasing 1.7% demand due to supply Mexico City 32 chain reconfigurations and limited supply Monterrey 8 caused by en
Slide 8: Nearshoring is the Main Structural Shift
Nearshoring is the Main Structural Shift Mexican logistics real estate gain momentum due to manufacturing activity NEARSHORING DEMAND BY COUNTRY OF ORIGIN1 NEARSHORING-RELATED NET ABSORPTION1 (FIBRA PL MARKETS, MSF) • Nearshoring is the main driver Other… of demand, accelerating since the pandemic d
Slide 9: E-commerce is a Resilient Driver of Expansion
E-commerce is a Resilient Driver of Expansion By 2026, E-commerce penetration1 in Mexico is expected to have doubled vs 2021 E-COMMERCE SALES AND PENETRATION RATE IN E-COMMERCE GLOBAL PENETRATION RATE1 • E-commerce is tailwind for MEXICO1 % logistics real estate demand, USD$ B Penetration Rate 40 es
Slide 10: Low Risk Business Model
Prologis Park Los Altos, Guadalajara Low Risk Business Model 10
Slide 11: Potential Market Rental Growth
Potential Market Rental Growth LEASE EXPIRY PROFILE BY GLA & AVERAGE IN-PLACE RENT $9.05 $9.38 $10.00 $8.40 $8.72 $9.00 $7.80 $8.10 $8.00 $7.52 $6.29 $6.45 $6.55 $7.00 $5.57 $5.95 $6.00 $5.59 $5.88 $5.00 $4.00 $3.00 $2.00 $1.00 11% 9% 22% 14% 7% 10% 26% $0.00 2023 2024 2025 2026 2027 2028 2029+ 1 Ro
Slide 12: Diversified Customer Base
Diversified Customer Base CUSTOMER TYPE CUSTOMER INDUSTRY 240 %, NER basis %, NRA basis customers in Mexico have 351 leases with FIBRA Prologis 84.1% of FIBRA Prologis’ customers are or are affiliated with multinational companies(1) Our top 10 customers represent 24.2% of net effective rent Source:
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+ rated by Fitch/HR Ratings1 DEBT METRICS 1Q2023 DEBT MATURITY SCHEDULE Total debt $920M (USD$ in millions) Wtd avg rate 4.0% Unsecured Debt $1 Secured Debt USD denominated 100% Wtd avg term 7.3 yrs Available liquidity USD2 $597 M $175 $150 $125
Slide 15: Best Practices Oriented to Create Value
Agua Fría, Monterrey Prologis Park Salvacar, Juarez 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 • Cheaper energy and 3 emissions. • Expected to be finished by 2025 • Building Certification: Achieve sustainable certification for 100% of • Investment made by Prologis operating po
Slide 17: World Class Corporate Governance
World Class Corporate Governance Alignment with Certificate Holders DIVERSE AND EXPERIENCED TECHNICAL COMMITTEE1 COMPOSITION Luis Gutiérrez Alberto Saavedra Carlos Elizondo Mayer-Serra INDEPENDENCY TENURE President for Latin America Partner Dr. Political Science Prologis Inc Santa Marina y Steta Oxf
Slide 18: Strong Sponsor
Prologis Park Grande, Mexico City Strong Sponsor 18
Slide 19: Strong Sponsor: Prologis
Strong Sponsor US$208 B US$5.0 B A/A3 2022 Annual Net Credit Ratings Assets under management Operating Income 19 1.2 B 5,489 6,600 Countries Square Feet Buildings Customers Prologis El Encino Note: Information as of March 31, 2023 19
Slide 20: Appendix
Apodaca, Monterrey Appendix 20
Slide 21: 2023 Guidance
Investor Presentation 2023 Guidance US Dollars in thousands except per CBFI amounts FX = Ps$20.5 per US$1.00 Financial Peformance Low High (A) Full year FFO, as modified by FIBRA Prologis, per CBFI (excludes incentive fees) $ 0.1800 $ 0.1900 Operations Year-end occupancy 97.0% 98.0% Same store cash
Slide 22: Creating Value for Certificate Holders
Investor Presentation Creating Value for Certificate Holders TOTAL RETURN OF CBFIS IN MEXICAN PESOS June 4, 2014 – March 31, 2023 300% 243% 237% 198% 50% 90% 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 23: Historical Operating Performance
Investor Presentation Historical Operating Performance ELEVATED PERIOD-END OCCUPANCY 99.5 (%) 98.9 99 98.4 98.5 97.9 98 97.4 97.6 97.5 97.3 97.1 96.8 97 96.3 96.5 96.5 96 95.5 95 Q414 Q415 Q416 Q417 Q418 Q419 Q420 Q421 Q422 Q123 STRONG POSITIVE RENT CHANGE ON ROLLOVER (%) 38.5 45.0 40.0 35.0 24.6 26
Slide 24: Historical Growth
Investor Presentation Historical Growth NOI GROWTH ADJUSTED EBITDA GROWTH Millions of USD Millions of USD 280 240 240 200 200 160 160 120 120 80 80 40 40 0 0 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 2015 2016 2017 2018 2019 2020 2020 2022 1Q23 FFO GROWTH AFFO GROWTH Millions of USD Millions of U
Slide 25: Historical Credit Metrics
Investor Presentation Historical Credit Metrics DEBT % OF INVESTMENT PROPERTIES FIXED CHARGE COVERAGE RATIO 40% 7X 6X 30% 5X 4X 20% 3X 10% 2X 1X 0% 0 Q416 Q417 Q418 Q419 Q420 Q421 Q422 Q123 Q416 Q417 Q418 Q419 Q420 Q421 Q422 Q123 DEBT TO ADJUSTED EBITDA LIQUIDITY1 Millions of USD 6X 750 5X 600 4X 45
Slide 26: Portfolio Growth Since IPO
Investor Presentation Portfolio Growth Since IPO GROSS LEASABLE AREA Thousands of SF, June 4, 2014 through March 31, 2023 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 1Q 2023 1Q 2023 REAL ESTATE PORTFOLIO(1)(2)(3) Thousands
Slide 27: Fee Structure: Transparent and Aligned
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 28: Strategic Acquisition of Prologis Park Grande 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 29: Mexico City
Investor Presentation Mexico City 29
Slide 30: Guadalajara
Investor Presentation Guadalajara 30
Slide 31: Monterrey
Investor Presentation Monterrey 31
Slide 32: Tijuana
Investor Presentation Tijuana 32
Slide 33: Ciudad Juárez
Investor Presentation Ciudad Juárez 33
Slide 34: Reynosa
Investor Presentation Reynosa 34
Slide 35: FIBRA Prologis
FIBRA €*; PROLOGIS’
Fibra Prologis Reit Ctfs — Q2 2023 Earnings Presentation on 6ix