#Mexico #Mexico City #earnings report #FIBRA Prologis #industrial real estate

FIBRA Prologis Announces First Quarter 2025 Earnings Results

FIBRA Prologis (BMV:FIBRAPL 14), one of the foremost owners and operators of Class-A industrial real estate in Mexico, has disclosed its financial results for the first quarter of 2025. The performance highlights reveal remarkable achievements that underscore the company's resilience amid unpredictable global market conditions.

Performance Highlights

The company reported a record-setting net effective rent on rollover of 65.2%, showcasing its ability to command higher rental prices. Occupancy levels were exceptionally strong, with period-end occupancy at 98.8% and average occupancy at 98.1%, both reflecting a slight decrease compared to the previous year but remaining excellent overall. Supporting this robust occupancy, the customer retention rate soared to 93.6%, a substantial increase from 75.4% a year earlier.

In financial terms, the net earnings per CBFI (Certificados Bursátiles Fiduciarios Inmobiliarios) were Ps. 2.0195 (approximately US$0.0985), marking a decrease from Ps. 6.1383 (US$0.3505) in the first quarter of 2024. The Funds from Operations (FFO) were also up significantly to Ps. 1.2384 (US$0.0609) from Ps. 0.8416 (US$0.0492) the previous year, highlighting strong operational efficiency despite headwinds.

The CEO of FIBRA Prologis, Héctor Ibarzábal, expressed confidence in the company's strategic positioning within the best logistics real estate markets across Mexico, emphasizing their strong balance sheet and operational discipline as factors driving consistent performance.

Operational Insights

The operational metrics from Q1 2025 show the following:

• - Leases Commenced: 3.0 million square feet, a significant increase from 1.2 million square feet in Q1 2024, with major activities centered in key markets such as Juarez and Tijuana.
• - Customer Retention: The company maintained a high retention rate, further assuring stability in their income stream.
• - Same Store Cash NOI Growth: The same-store cash NOI metric experienced a modest increase of 2.0%, driven primarily by rent changes and annual rent increases.

Financial Position

As of the close of the first quarter, FIBRA Prologis boasted a leverage ratio of 22.9%, alongside liquidity of approximately Ps. 11.2 billion (US$546 million). This liquidity consisted of about Ps. 9.5 billion (US$465 million) available under its unsecured credit facility, coupled with Ps. 1.7 billion (US$81 million) in unrestricted cash, giving the company a healthy financial cushion to navigate potential market fluctuations.

Future Outlook

The company is set to engage with stakeholders during a live webcast/conference call on April 30, 2025, at 9 a.m. Mexico Time. This session will delve into recent results, current market conditions, and their outlook moving forward.

To participate in the call, investors can access the live webcast through the Investor Relations section on the company's website or dial the designated numbers for telephonic access.

Conclusion

Despite facing challenges, such as heightened global trade uncertainties, FIBRA Prologis continues to shine as a leader in the industrial real estate sector. The latest results showcase their commitment to long-term value creation for shareholders and operational excellence within the logistics real estate domain in Mexico.