MEXICO CITY, July 21, 2016 /PRNewswire-HISPANIC PR WIRE/ — FIBRA Prologis (BMV:FIBRAPL 14), the leading owner and operator of Class-A industrial real estate in Mexico, today reported results for the second quarter of 2016.
HIGHLIGHTS FROM THE QUARTER:
- Net effective rents on rollover increased 11.8 percent
- Operating portfolio occupancy ended at 96.4 percent
- Acquired US$51.7 million of Class-A buildings from sponsor Prologis
Funds from operations (FFO) per CBFI was Ps. 0.6919 (US$0.0404) for the second quarter compared with Ps. 0.1096 (US$0.0070) for the same period in 2015, which includes a one-time adjustment of Ps. 0.5851 (US$0.0374) per CBFI for the realized exchange loss from the reimbursement of the value-added tax paid in connection with the acquisition of the initial portfolio.
Net earnings per CBFI in the second quarter was Ps. 0.5999 (US$0.0353) compared with Ps. 0.9279 (US$0.0593) for the same period in 2015.
STRONG OPERATING PERFORMANCE CONTINUES
“I am very pleased with our performance in the quarter. The team continues to produce strong financial and operating results,” said Luis Gutierrez, CEO, Prologis Property Mexico. “The operating environment remains healthy in our markets, with demand for Class-A facilities significantly outpacing existing supply.”
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Operating Portfolio
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2Q16
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2Q15
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Notes
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Period End Occupancy
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96.4%
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96.0%
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7 consecutive quarters with occupancy above 96%
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Leases Signed
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2.1 MSF
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1.4 MSF
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Record leasing volume of 1.3 MSF in Regional Markets for two consecutive quarters
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Customer Retention
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87.0%
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98.0%
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Net Effective Rent Change
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11.8%
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9.5%
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Strong rent change across all markets, with most markets above 10%
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Cash Same Store NOI
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1.1%
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4.7%
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Cash same store NOI for 2Q16 grew 3.1% in constant dollars
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Same Store NOI
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-0.9%
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N/A
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CAPITAL DEPLOYMENT HIGHLIGHTED BY ACCRETIVE ACQUISITIONS
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US$ in millions
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2Q16
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Notes
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Building Acquisitions
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US$51.7
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Class-A buildings recently developed by sponsor Prologis
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Building GLA
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750,000 SF
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Occupancy
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97.8%
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Weighted avg. stabilized cap rate
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7.3%
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Development Stabilizations
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US$2.1
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Expansion building in Reynosa
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Stabilized GLA
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37,500 SF
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Occupancy
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100%
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Weighted avg. stabilized yield
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9.6%
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Building Disposition
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US$1.7
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Highly specialized Class-B building sold to an end user in Monterrey
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Building GLA
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46,700 SF
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Occupancy
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0%
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Weighted avg. stabilized cap rate
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9.0%
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“Our acquisitions are consistent with our investment strategy, which includes a focus on high-quality assets in the deepest and most dynamic markets,” Gutierrez added. “Our exclusive access to the Prologis development pipeline provides a unique competitive advantage that allows us to acquire state-of-the-art logistics facilities that strategically complement our portfolio.”
FINANCIAL POSITION SUPPORTS GROWTH
As of June 30, 2016, FIBRA Prologis’ liquidity was Ps. 7.4 billion (US$398.2 million), which included Ps. 7.1 billion (US$380 million) of available capacity on its unsecured credit facility and Ps. 338.5 million (US$ 18.2 million) of unrestricted cash.
Net debt as a percentage of investment properties was 30.7 percent, fixed charge coverage was 4.24x and net debt to adjusted EBITDA was 4.76x.
GUIDANCE CONFIRMED
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(US$ in million, except per CBFI amounts)
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Low
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High
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Notes
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FFO per CBFI
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US$0.1650
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US$0.1800
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Excludes the impact of foreign exchange movements
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Full Year 2016 Distributions per CBFI
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US$0.1100
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US$0.1100
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Year End Occupancy
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95.5%
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96.5%
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Same Store NOI (Cash)
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2.0%
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3.0%
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Based on U.S. dollar functional currency
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Annual Capital Expenditures as % of NOI
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14.0%
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16.0%
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Building Acquisitions
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US$100.0
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US$150.0
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Asset Management and Professional Fees
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US$18.0
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US$20.0
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WEBCAST & CONFERENCE CALL INFORMATION
FIBRA Prologis will host a live webcast/conference call to discuss quarterly results, current market conditions and future outlook. Here are the event details:
- Friday, July 22, 2016, at 9 a.m. CT/10 a.m. ET
- Live webcast at www.fibraprologis.com by clicking Events
- Dial in: +1 877 256 7020 or +1 973 409 9692 and enter Passcode 34484434.
A telephonic replay will be available July 22–July 29 at +1 855 859 2056 from the U.S. and Canada or at +1 404 537 3406 from all other countries using conference code 34484434. The replay will be posted in the Investor Relations section of the FIBRA Prologis website.
ABOUT FIBRA PROLOGIS
FIBRA Prologis is the leading owner and operator of Class-A industrial real estate in Mexico. As of June 30, 2016, FIBRA Prologis was comprised of 190 logistics and manufacturing facilities in six industrial markets in Mexico totaling 33.3 million square feet (3.1 million square meters) of gross leasable area.
FORWARD-LOOKING STATEMENTS
The statements in this release that are not historical facts are forward-looking statements. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which FIBRA Prologis operates, management’s beliefs and assumptions made by management. Such statements involve uncertainties that could significantly impact FIBRA Prologis financial results. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to rent and occupancy growth, acquisition activity, development activity, disposition activity, general conditions in the geographic areas where we operate, our debt and financial position, are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, international, regional and local economic climates, (ii) changes in financial markets, interest rates and foreign currency exchange rates, (iii) increased or unanticipated competition for our properties, (iv) risks associated with acquisitions, dispositions and development of properties, (v) maintenance of real estate investment trust (“FIBRA”) status and tax structuring, (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings, (vii) risks related to our investments (viii) environmental uncertainties, including risks of natural disasters, and (ix) those additional factors discussed in reports filed with the “Comisión Nacional Bancaria y de Valores” and the Mexican Stock Exchange by FIBRA Prologis under the heading “Risk Factors.” FIBRA Prologis undertakes no duty to update any forward-looking statements appearing in this release.
Non-Solicitation – Any securities discussed herein or in the accompanying presentations, if any, have not been registered under the Securities Act of 1933 or the securities laws of any state and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and any applicable state securities laws. Any such announcement does not constitute an offer to sell or the solicitation of an offer to buy the securities discussed herein or in the presentations, if and as applicable.
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