FIBRA Prologis Announces Second Quarter 2019 Earnings Results

FIBRA Prologis Announces Second Quarter 2019 Earnings Results



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MEXICO CITY, July 18, 2019 /PRNewswire-HISPANIC PR WIRE/ — FIBRA Prologis (BMV:FIBRAPL 14), a leading owner and operator of Class-A industrial real estate in Mexico, today reported results for the second quarter of 2019.

HIGHLIGHTS FROM THE QUARTER:

  • Period-end occupancy was 96.6 percent.
  • Net effective rents on rollover increased 16.0 percent.
  • Weighted average customer retention was 85.1 percent.
  • Same store cash NOI grew 3.9 percent.
  • Completed net asset dispositions of US$10 million.

Net earnings per CBFI was Ps. 0.7487 (US$0.0395) for the second quarter compared with Ps. 1.3285 (US$0.0709) for the same period in 2018.

Funds from operations (FFO) per CBFI was Ps. 0.5647 (US$0.0298) for the second quarter compared with Ps. 0.4620 (US$0.0263) for the same period in 2018. The current period included an incentive fee paid to FIBRA Prologis’ sponsor of Ps. 0.2678 (US$0.0136) per CBFI. Excluding the incentive fee, FFO per CBFI was Ps. 0.8325 (US$0.0434).

STRONG RESULTS

“Our results in the second quarter are evidence that our investment strategy of focusing on the six most dynamic markets in Mexico is working,” said Luis Gutiérrez, CEO, Prologis Property Mexico. “Rent change on rollover was a record 16 percent, while occupancy remained elevated. This combination led to strong Cash Same Store NOI generation, demonstrating our internal growth capabilities.”

Operating Portfolio

2Q19

2Q18

Notes

Period End Occupancy 

96.6%

95.9%

Driven by declines in Juarez and Mexico City, partly offset by increases in Monterrey

Leases Commenced

2.0MSF

2.3MSF

82% of leasing activity related to renewals, led by Monterrey and Mexico City

Customer Retention

85.1%

87.1%

Net Effective Rent Change

16.0%

15.1%

Led by Mexico City and Monterrey

Cash Same Store NOI

3.9%

2.5%

Higher rent change on leases commenced and annual rent escalators, as well as increased average occupancy partly offset by higher bad debt and operating expenses

SOLID FINANCIAL POSITION

As of June 30, 2019, FIBRA Prologis’ leverage was 32.1 percent and liquidity was Ps. 6.6 billion (US$344.4 million), which included Ps. 6.2 billion (US$325.0 million) of available capacity on its unsecured credit facility and Ps. 372.4 million (US$19.4 million) of unrestricted cash.

GUIDANCE UPDATE

“We delivered solid operating and financial results in the first half of the year, which highlights, now more than ever, the importance of maintaining a focused investment strategy and adhering to a prudent approach to our balance sheet,” said Jorge Girault, senior vice president, Finance, Prologis Property Mexico. “Our updated guidance reflects this prudence in our balance sheet and capital, as well as the positive effect of our risk management strategy.”

(US$ in million, except per CBFI amounts)

FX = Ps$20.0 per US$1.00

Low

High

Notes

FFO per CBFI excluding incentive fee

US$0.1600

US$0.1650

Excludes the impact of peso movements

FFO per CBFI including incentive fee

US$0.1425

US$0.1500

Full Year 2019 Distributions per CBFI

US$0.1240

US$0.1240

Year End Occupancy

96.0%

97.0%

Same Store NOI (Cash)

3.0%

4.0%

Based in U.S. dollars

Annual Capital Expenditures as % of NOI

14.0%

15.0%

Asset Management and Professional Fees

US$20.0

US$22.0

Excludes incentive fee

Building Dispositions

US$50.0

US$70.0

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 19, 2019, at 9 a.m. CT/10 a.m. ET
  • Live webcast at www.fibraprologis.com, in the Investor Relations section, by clicking Events
  • Dial in: +1 877 256 7020 or +1 973 409 9692 and enter Passcode 2336099.

A telephonic replay will be available July 19 – July 26 at +1 855 859 2056 from the U.S. and Canada or at +1 404 537 3406 from all other countries using conference code 2336099. The replay will be posted in the Investor Relations section of the FIBRA Prologis website.

ABOUT FIBRA PROLOGIS

FIBRA Prologis is a leading owner and operator of Class-A industrial real estate in Mexico. As of June 30, 2019, FIBRA Prologis was comprised of 190 logistics and manufacturing facilities in six industrial markets in Mexico totaling 34.8 million square feet (3.2 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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SOURCE FIBRA Prologis

FIBRA Prologis Announces Second Quarter 2019 Earnings Results