#Mexico #Mexico City #FIBRA Prologis #Class-A Industrial Real Estate

FIBRA Prologis Reports Strong Third Quarter 2025 Earnings

FIBRA Prologis (BMV:FIBRAPL 14), a prominent owner and operator of Class-A industrial properties in Mexico, recently announced its financial performance for the third quarter of 2025, highlighting several key successes amid a challenging economic landscape. The firm reported a solid net effective rent increase of 47.2% during the quarter, reflecting its position as a leader in the market. The strong demand for well-located logistics facilities in core markets such as Mexico City, Monterrey, and Guadalajara has significantly bolstered its performance.

Key Highlights

FIBRA Prologis reported a period-end occupancy rate of 98.0% and an average occupancy rate of 97.9%, which has remained consistently above 97% since the second quarter of 2021. These impressive statistics underline the stability and attractiveness of their real estate offerings. Furthermore, customer retention reached 81.7%, indicating a robust relationship with their clients, which is crucial for sustained growth in the real estate sector.

The company’s same-store cash Net Operating Income (NOI) surged to 14.8% in the third quarter, compared to only 4.4% in the same period last year. The growth can be attributed to effective rent adjustments and annual rent increases that are now being realized across their properties. Additionally, the score from MSCI improved from BB to BBB, a notable achievement that reflects the firm's enhanced commitment to corporate sustainability and governance standards.

Financial Position and Future Outlook

In terms of financial health, FIBRA Prologis reported earnings per CBFI at Ps. 1.0027 (approx. US$0.0540) for the quarter, down from Ps. 6.4415 (approximately US$0.3424) year-over-year. However, the funds from operations (FFO), which are critical for assessing operational efficiency, increased to Ps. 1.0268 (US$0.0561) from Ps. 0.8343 (US$0.0437) in 2024.

As of September 30, 2025, the company's leverage stood at a manageable 22.6%, with liquidity amounting to approximately Ps. 19.9 billion (around US$1.1 billion). This figure includes roughly Ps. 18.4 billion available on its unsecured credit facility and about Ps. 1.6 billion in cash reserves. Such a solid liquidity position will provide FIBRA Prologis with the necessary buffer to pursue strategic opportunities that could arise in the dynamic industrial real estate market.

Leadership Insights

Héctor Ibarzábal, CEO of FIBRA Prologis, articulated the company’s confidence in its operational strategy: “Despite ongoing trade uncertainties, we have consistently delivered strong financial results. Our diversified portfolio and focus on premium quality logistics assets place us well to capitalize on growth in Mexico’s main consumption and manufacturing areas.”

Going forward, FIBRA Prologis anticipates continued growth potential within the industrial real estate sector. The updated guidance for 2025 includes building acquisitions projected between US$50 million to US$100 million and building dispositions adjusted to a range of US$0 to US$50 million. Furthermore, they forecast an increase in annual capital expenditures to represent 14.0% of their NOI, up from previous estimates.

Investor Engagement

FIBRA Prologis will be hosting a live conference call on October 29, 2025, to discuss its quarterly results, current market conditions, and future outlook. Interested stakeholders are encouraged to participate, which reinforces the firm’s commitment to transparency and active engagement with its investors.

In summary, FIBRA Prologis has delivered a solid performance during the third quarter of 2025, demonstrating resilience and adaptability in the face of market uncertainties. Their focus on high-quality properties and operational excellence positions them favorably for future growth as they navigate the evolving landscape of Mexico's industrial real estate sector.