FIBRA Prologis Reports Impressive Fourth Quarter and 2024 Earnings Results

FIBRA Prologis Reports Robust Earnings for Q4 and FY 2024

On February 24, 2025, FIBRA Prologis (BMV:FIBRAPL 14), a prominent owner and operator of Class-A industrial real estate in Mexico, announced remarkable financial results for the fourth quarter and the full year of 2024. The company's operational metrics highlight significant growth and resilience, reflecting its strategic initiatives and market conditions.

Key Highlights of 2024

Among the standout achievements, FIBRA Prologis acquired nearly 90 percent of FIBRA Terrafina's outstanding shares, which has almost doubled its operational capacity. The company reported a net effective rent on rollover of 55.4 percent, showcasing strong demand for rental properties in a competitive market. Additionally, period-end occupancy reached 98.3 percent, and the average occupancy was recorded at 98.1 percent, indicating robust rental stability.

Customer retention at 71.6 percent is noteworthy, particularly in light of the challenges that the real estate market faced. Those numbers underscore the effectiveness of the company's tenant engagement strategies. Furthermore, the same-store cash net operating income (NOI) was 8.4 percent, a testament to the firm’s operational efficiency and pricing power in a growing market. The acquisition of US$284 million in high-quality Class-A properties and the installation of 18 MW of solar capacity further illustrate the forward-thinking approach of FIBRA Prologis in sustainable development.

Financial Performance

The net earnings per CBFI for the fourth quarter stood at Ps. 3.8692 (approximately US$0.1816), an increase compared to Ps. 3.1136 (or US$0.1770) in Q4 2023. For the full fiscal year of 2024, net earnings per CBFI reached Ps. 17.1978 (about US$0.9136), up from Ps. 13.6338 (or US$0.7761) a year earlier. The modifications made to funds from operations (FFO) resulted in Ps. 0.9740 (US$0.0488) for the quarter, showing growth from Ps. 0.8249 (US$0.0469) in the same quarter the previous year. For the entire year, the FFO per CBFI was Ps. 3.4507 (US$0.1943), surpassing last year's figure of Ps. 3.3502 (US$0.1881).

Solid Operational Indicators

Reflecting on the year, CEO Héctor Ibarzábal highlighted that 2024 marked a significant transformation for FIBRA Prologis, stating,

"We nearly doubled our size with the successful tender offer for FIBRA Terrafina. In addition, we delivered solid financial results and outstanding operational metrics. We enter 2025 on strong footing, and the company is well-positioned to navigate both market fluctuations and geopolitical uncertainty."

This outlook is backed up by the company's impressive operating metrics, with a period-end occupancy of 98.3 percent and an average occupancy level sustained above 97% since the second quarter of 2021. The lease activity saw a total of 4.3 million square feet (MSF) commenced in the year, focused largely in strategic locations such as Reynosa and Mexico City.

Financial Stability and Future Guidance

As of December 31, 2024, the leverage of FIBRA Prologis stood at a conservative 18.1 percent, reflecting a robust capital structure. The liquidity of approximately Ps. 9.4 billion (or US$457 million), which includes Ps. 8.3 billion (US$405 million) in available capacity on its unsecured credit facility, showcases the company's financial health in operating its business effectively.

With guidance established for 2025, the company anticipates FFO per CBFI in the range of US$0.2000 to US$0.2200, while planning for a 6% increase in distributions per CBFI compared to the previous year. Expected year-end occupancy is projected to be between 96.5 percent and 98.5 percent, and the same-store cash NOI is forecasted to be between 4.0 percent and 7.0 percent.

Upcoming Events

Investors and stakeholders are encouraged to tune in to the upcoming live webcast/conference call on February 25, 2025, at 9 a.m. Mexico Time, where FIBRA Prologis will elaborate on the quarterly results, current market dynamics, and future outlook.

Conclusion

Overall, FIBRA Prologis has positioned itself as a leader in the Mexican industrial real estate sector, with promising financial reviews and a strategic focus on growth and sustainability. With strong performance metrics and proactive planning, the company demonstrates a solid trajectory for 2025 and beyond.