FIBRA Prologis Announces Second Quarter Earnings Results
– Occupancy Increased to 94.3 Percent –
– Rents on Rollover Increased 7.2 Percent –
– Leased 2.3 Million Square Feet –
MEXICO CITY, July 28, 2014 /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 2014.
FIBRA Prologis began trading on the Mexican Stock Exchange on June 4, 2014. With the proceeds, FIBRA Prologis acquired the initial portfolio of 29.7 million square feet (2.8 million square meters) of Class-A logistics and manufacturing facilities. As a result, the financial report for the second quarter includes the results from June 4 through June 30, 2014. We do not have comparable results for any prior periods. However, for the operational metrics included in this announcement, we have used the results of the properties in the portfolio prior to ownership by FIBRA Prologis.
Funds from operations (“FFO”), as defined by FIBRA Prologis, in the second quarter were Ps. 90.2 million (approximately US$6.9 million). Net earnings per fully diluted certificate were Ps. 55.8 million (approximately US$4.3 million) or Ps. 0.09 per CBFI (approximately US$0.01 per CBFI).
“We delivered a great inaugural quarter highlighted by significant increases in occupancy and effective rent,” said Luis Gutierrez, CEO, FIBRA Prologis. “Growth in the logistic and manufacturing sector is driving demand for our properties. FIBRA Prologis has the highest-quality logistics facilities located in six key markets and are well positioned to capitalize on these market drivers moving forward.”
STRONG OPERATING RESULTS
FIBRA Prologis leased 2.3 million square feet (approximately 214,000 square meters) in the second quarter. Occupancy at quarter end was 94.3 percent, an increase of 110 basis points over the prior quarter. Tenant retention in the second quarter was 82.0 percent. Net effective rents on leases signed during the quarter increased 7.2 percent from prior in-place rents.
During the second quarter, cash same-store net operating income (“NOI”) increased 4.3 percent. The increase was principally driven by higher occupancy and positive rent change.
PRUDENT CAPITAL STRUCTURE SUPPORTS FUTURE GROWTH
In connection with our initial public offering (“IPO”), FIBRA Prologis secured a Ps. 3.25 billion (US$250.0 million) revolving credit facility.
As of June 30, 2014, FIBRA Prologis’ liquidity was approximately Ps. 5.6 billion (US$425.4 million), which included Ps. 3.1 billion (US$235.0 million) of available capacity on its credit facility, Ps. 496 million (US$38.1 million) of unrestricted cash and a Ps. 2.0 billion (US$152.3 million) value added tax receivable. The credit facility can be increased by an additional Ps 1.3 billion (US$100.0 million) at FIBRA Prologis’ option.
WEBCAST & CONFERENCE CALL INFORMATION
FIBRA Prologis will host a webcast/conference call to discuss quarterly results, current market conditions and future outlook tomorrow, July 29, at 1:00 p.m. CST. Interested parties are encouraged to access the live webcast by clicking the microphone icon located near the top of the opening page of the FIBRA Prologis Investor Relations website (httpp://www.fibraprologis.com). Interested parties also can participate via conference call by dialing +1 (877) 447-8218 (from the United States and Canada toll free) or + (973) 409-9692 (from all other countries) and enter conference code 69787764
A telephonic replay will be available from July 29 through August 29 at +1 (855) 859-2056 (from the U.S. and Canada) or + (404) 537-3406 (from all other countries), with conference code 69787764. The webcast replay will be posted when available in the Investor Relations section on 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, 2014, FIBRA Prologis was comprised of 177 strategically-located logistics and manufacturing facilities in six industrial markets in Mexico totaling 29.7 million square feet (2.8 million square meters) of gross leasable area.
The statements in this report 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 report
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.