FIBRA Prologis Strengthens Financial Flexibility with New Credit Lines

FIBRA Prologis Strengthens Financial Flexibility with Expanded Credit

On May 29, 2025, FIBRA Prologis (BMV:FIBRAPL 14), a premier trust for the investment and management of Class-A industrial real estate in Mexico, revealed significant enhancements in its financial structure. This comes through the refinancing of its sustainable and unsecured credit line, coupled with a new short-term loan aimed at improving the maturity profile of existing debt.

The newly structured credit line has seen an increase from $400 million to $500 million, with provisions allowing it to expand up to $1 billion, pending approvals from financial institutions. Initially set to mature on May 29, 2028, the line includes options for two additional one-year extensions. The financial cost tied to this line is currently pegged at 125 basis points over the applicable reference rate, with potential fluctuations based on key performance indicators (KPIs) ranging ±2 basis points, and an unused commitment fee of 25 basis points, reflecting a 5 basis point improvement compared to the prior arrangement.

Additionally, the company has secured a short-term loan worth $300 million, with a one-year initial term extendable for two more years. This facility carries the same margin of 125 basis points and is intended to refinance existing short-term debt, thereby fortifying the company's overall maturity profile.

Jorge Girault, the Chief Financial Officer of FIBRA Prologis, emphasized the strategic aim behind these financial maneuvers, stating, "With this new financing structure, we reaffirm our commitment to prudent financial management by strengthening our balance sheet and enhancing liquidity, which supports our long-term growth strategy." He further expressed gratitude for the support received from the involved financial institutions, indicating that this trust reflects both the robustness and promising future of their business.

Profile of FIBRA Prologis

FIBRA Prologis specializes in the investment and management of Class-A industrial properties across Mexico. As of March 31, 2025, the company’s portfolio comprised 507 investment properties, totaling approximately 87.0 million square feet (8.1 million square meters). This includes 345 logistics and manufacturing buildings strategically located in six major industrial markets across Mexico, accounting for 65.5 million square feet (6.1 million square meters) in Gross Leasable Area (GLA), alongside 162 properties with 21.5 million square feet (1.9 million square meters) that represent non-strategic assets in other regions.

Forward-Looking Statements

The announcement includes certain forward-looking statements based on current expectations, estimates, and industry projections surrounding FIBRA Prologis's operations, as well as beliefs derived from its management. These statements carry inherent uncertainties that may significantly impact the financial outcomes of FIBRA Prologis. Terms such as "expects," "anticipates," "plans," and similar phrases signify forward-looking statements, which generally do not rely on historical data.

While the company expects the estimates presented in its forward-looking declarations to be grounded in reasonable assumptions, there can be no guarantees that these expectations will materialize, leading to potential discrepancies between projected and actual results. Factors that may influence these results encompass economic conditions at international, regional, and local levels, fluctuations in financial markets, competitive dynamics, property acquisition risks, and various regulatory and tax regimes affecting real estate investment trusts.

In summary, FIBRA Prologis is actively enhancing its financial flexibility through strategic credit facility expansions and short-term financing, ensuring a solid foundation for ongoing operational development and growth in the evolving real estate landscape in Mexico.