Investor Relations - Prologis Essential Solutions

Made public by

sourced by PitchSend

3 of 42

Creator

Prologis logo
Prologis

Category

Real Estate

Published

December 31, 2023

Slides

Transcriptions

#1Investor Presentation February 2024 FIBRA PROLOGIS Alamos, Mexico city *#2INVESTOR PRESENTATION Forward-Looking Statements / Non-Solicitation FIBRA PROLOGIS This presentation includes certain terms and non-IFRS financial measures that are not specifically defined herein. These terms and financial measures are defined and, in the case of the non-IFRS financial measures, reconciled to the most directly comparable IFRS measure, in our first quarter Earnings Release and Supplemental Information that is available on our website at www.fibraprologis.com and on the BMV's website at www.bmv.com.mx. - 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, (ix) risks related to the current coronavirus pandemic, and (x) 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 other jurisdiction and may not be offered or sold in the United States or other jurisdiction absent registration or an applicable exemption from the registration requirements or in any such jurisdiction. 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.#39657 Resilient Investment Strategy FIBRA PROLOGIS Industrial Juarez, Juarez 3#4Why invest in FIBRA Prologis? FIBRA PROLOGIS US$4.9B Assets under management US$270M 2023 Annual Net Operating Income US$0.141 2024E Distribution per CBFI BBB+/BBB+ Credit Ratings 46.9 M 235 249 Square Feet Buildings (1) Customers World class Sponsor: PLD Note: Information as of December 31, 2023 1. Includes value-added acquisition properties that are not in the operating pool.#5FIBRA Prologis at a Glance FIBRA Prologis is a leading Mexican real estate investment trust formed to acquire, own and manage Class-A industrial real estate in Mexico Attractive industrial real estate in Mexico in the six most dynamic markets Strong Balance Sheet KEY FINANCIAL AND OPERATIONAL METRICS (2) 2015 Stock Price (MXN) 26.0 Reliable and sustainable cash flow 404% Total Return Since IPO (1) Supported by Prologis and access to its development pipeline Strong organic growth Main growth drivers: Manufacturing and nearshoring Consumption and e-commerce • Supply chain constraints and Labor Shortages 1. IPO was June 4, 2014; total return calculated in Mexican Pesos on December 31, 2023. Source: Bloomberg. ΝΟΙ (USD$M) FIBRA PROLOGIS Today 80.8 269.6 145.4 Total Assets (USD$B) 5.2 2.1 Distributions in cash (USD$M) 63 89 153 Total Debt (USD$M) 917 @ 4.0% 658 @ 4.8% & Wtd. avg. rate (%) 188 235 Buildings 46.9 32.6 GLA (MSF) 2. 2015 column numbers are as of December 31, 2015, including the stock price. Today column numbers are as of December 31, 2023 5#6Investor Presentation FIBRA PROLOGIS Unmatched Portfolio Focused on the Top Consumption and Manufacturing Markets 6 Markets > 10MSF 99.8% Period End Occupancy (1) Tijuana GLA 6.6 MSF 100.0% Occupancy Ciudad Juarez GLA 4.8 MSF 100.0% Occupancy 99.0% Average Occupancy (1) 46.9 Million Square Feet 235 Operating Properties (2) 18.1 years Average Age Guadalajara GLA 5.9 MSF 100.0% Occupancy Data as of December 31, 2023. Note: GLA is defined as gross leasable area. 1. Operating properties only. 2. Includes value-added acquisition properties that are not in the operating pool. Reynosa GLA 5.2 MSF 99.8% Occupancy Monterrey GLA 7.3 MSF 100.0% Occupancy Mexico City GLA 17.1 MSF 99.5% Occupancy 5MSF to 10MSF 3MSF to 5MSF 6#7Mexico Logistics Real Estate Fundamentals¹ DEMAND (T12M) VS SUPPLY PIPELINE (MSF) DEMAND VS SUPPLY (MSF) Mkt Vacancy 44 1.1% Mexico City 40 VACANCY (%) 36 Monterrey 0.9% 32 0.6% Guadalajara 28 6 FIBRA PROLOGIS • Market vacancy of 1.4%, near historical lows 10 8 2 We expect limited quality supply in the most desired locations (particularly Mexico City) to lead to a decline in net absorption for 2024. Well- located product with energy is expected to continue to lease- up well. We expect low double-digit market rent growth in 2024 driven by the very limited supply. Nearshoring in Northern Mexico and e-commerce adoption are the main drivers of demand 24 Juarez 3.3% 20 4 16 1.8% Reynosa Tijuana 0 5 10 10 15 20 Net absorption LTM ■ BTS ■Spec 1.3% 12 84 0 2013 Completions 24F Net Absorption Vacancy Rate Sources: Prologis Research with information from Solili, CBRE. 1. Note: Defined as modern logistics market, inclusive of only those facilities with advanced functional features and/or superior locations, deemed to be competitive with Prologis. Data as of December 31, 2023 Sources: Prologis Research Note: Completions equate to supply while net absorption is equivalent to demand 0 7#8FIBRA PROLOGIS Mexico: Nearshoring is the Main Structural Shift Mexican industrial real estate gain momentum due to manufacturing capacity expansion MACHINERY IMPORTS, 2014- NOVEMBER 2023 (US$MN, SEASONALLY ADJUSTED) 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 wwwwww 01/2014 01/2015 01/2016 01/2017 01/2018 01/2019 01/2020 01/2021 01/2022 01/2023 MEXICO TIER-11 NEARSHORING ABSORPTION BY INDUSTRY, 2019-2Q23 Other, 7% High-tech, 8% Furniture, 18% MEXICO TIER-1' NEARSHORING ABSORPTION BY COUNTRY OF ORIGIN, 2019-2Q23 50% 43% 45% 40% 35% 30% 25% 21% 20% 15% 13% 10% 5% 0% China United States Europe Japan European Union Taiwan Canada Other 5% 5% Machines & tools, 15% 7% 4% 2% Motor vehicles & parts, 37% Electronics & home appliances, 15% • Nearshoring is already reflecting on economic indicators such as machinery imports, accelerating since the pandemic due to global supply chain disruptions, tensions in U.S.-China relations, and the USMCA. CBRE estimates 22% of total demand in 1H23 was due to Tier 1¹ nearshoring. We believe the actual impact is larger owing to companies adding space to support nearshoring logistics, expansions and for supply chain integration (Tier 2). We expect nearshoring to continue as companies bring production processes closer to the U.S. consumer. Source: Prologis Research with information from INEGI, Federal Reserve, Solili, Siila, CBRE and our leasing teams. 1: .Tier 1 nearshoring refer to the direct demand of companies nearshoring from abroad; Tier 2 demand accounts for local suppliers and previously established firms expanding operations as an effect of nearshoring. 8#9Mexico: E-commerce is a Resilient Driver of Expansion By 2026, E-commerce penetration ¹ in Mexico is expected to double vs 2021 E-COMMERCE SALES AND PENETRATION RATE IN MEXICO¹ E-COMMERCE GLOBAL PENETRATION RATE¹ USD$ B • 60,000 50,000 40,000 30,000 FIBRA PROLOGIS Penetration Rate % Mexico 40 Europe Global China USA Brazil 18% 36 16% 32 14% 28 12% 24 10% 20 8% 16 6% 12 4% 8 2% 0 0% 0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2019 2020 2021 2022 2023 2024 2025 2026 2027 E-commerce % 20,000 10,000 E-commerce is a tailwind for logistics real estate demand, especially in Mexico City Nascent e-commerce penetration relative to global market peers: penetration in Mexico is expected to double in the next 5 years . E-commerce companies are more intense users of space versus brick-and-mortar retailers (+3x), due to: • High inventory turn levels • Broader product variety Reverse logistics Last-Touch® facilities ensure customers have well-located facilities in large, dense, constrained urban areas 1. Source: Euromonitor. Penetration rate defined as % of retail sales made online vs total retail sales. 2. Source: Prologis Research with sales data and forecasts with information from Euromonitor. 9#108035 FOXCONN Low Risk Business Model FIBRA PROLOGIS Centro Juarez, Juarez 10 10#11Potential Market Rental Growth LEASE EXPIRY PROFILE BY GLA & AVERAGE IN-PLACE RENT $9.31 $9.68 $10.07 FIBRA PROLOGIS $10.89 $11.33 $10.47 6.79 6.93 5.89 6.23 6.16 5.93 8% 22% 15% 7% 15% 34% 2024 2025 2026 2027 2028 2029+ Roll Over Avg in-place rent - Avg Estimated Market Rent (Beg. of the yr)² PORTFOLIO STATISTICS Avg in Place Rent per Sq Ft $6.41 Avg Market Rent per Sq Ft $9.31 Avg Contractual Rent Escalator(2) ~3.0% WARLT (3) ~42.3 months CURRENCY OF LEASES, % OF NET EFFECTIVE RENT USD 67% MXN 33% Source: Prologis. Data as of December 31, 2023. Estimated Market rent based on latest growth rates. Assumptions might differ, as market conditions change. For current year the market rent is for the current period December 31, 2023. 1. 2. For USD denominated leases only. Leases in Mexican pesos are tied to Mexican inflation. 3. Weighted Average Remaining Lease Term 14 11#12Customer examples Diversified Customer Base E-Commerce 13% Å 249 Customers 367 leases Vivi Our top 10 customers represent 23.5% of net effective rent FIBRA PROLOGIS 84.9% of FIBRA Prologis' customers are or are affiliated with multinational companies as a percentage of net effective rent Customer Mix 3PL Manufacturing Other Logistics 26% 40% 21% DICKA Whirlpool Walmart mercado libre LOGISTICS amazon DSV ABB BOSE MARY KAY GEODIS TI Automotive ULINE DHL= SHIPPING SUPPLY SPECIALISTS OXXO TR Palacio de Hierro 24% Source: Prologis Research. Data as of December 31, 2023. CUSTOMER INDUSTRY % OF NER BASIS 17% 14% 8% 9% 8% 7% 7% 4% 2% Multicustomer 3PL Electronics Retailer Auto Parts Healthcare Industrial Packaging Paper Goods Home Goods Apparel 12 22#13FIBRA PROLOGIS External Growth: Identified Future Growth Acquisitions. EXTERNAL GROWTH VIA PROLOGIS DEVELOPMENT PIPELINE (MSF) FIBRAPL Portfolio 46.9 62.9 Prologis Land Bank And FIBRAPL Expansion Land Based On Buildable SF 2.4 2.2 4.4 Prologis & FIBRAPL Development Pipeline Land Bank & Expansion Land(1) 3.2 12.8 • UNIQUE COMPETITIVE ADVANTAGE Proprietary access to Prologis development pipeline at market values Exclusive right to third-party acquisitions sourced by Prologis 34% growth potential in the next 3 to 4 years, subject to market conditions and financial availability • Dividend low-risk vehicle PROLOGIS AND FIBRAPL DEVELOPMENT PIPELINE GLA % (MSF) Leased Mexico City 1.3 25.0% 1.8 1.1 0.9 Monterrey 0.4 39.9% Ciudad Juarez 0.5 43.1% Tijuana 0.4 100.0% Reynosa 0.6 49.4% Total 3.2 43.6% ■Mexico City ■Guadalajara ■Monterrey ■Reynosa Juarez Tijuana Data as of December 31, 2023 1. Based on buildable square feet. 13#14Investor Presentation Strong Financial Position BBB+/BBB+/BBB rated by S&P/HR Ratings/Fitch¹ DEBT METRICS Total debt Wtd avg rate 4Q2023 $917M 4.0% DEBT MATURITY SCHEDULE (USD$ in millions) FIBRA PROLOGIS Unsecured Debt Secured Debt USD denominated 100% Wtd avg term 6.5 yrs $172 Available liquidity USD² $697 M $150 $125 $125 $125 Fixed debt 100% $100 $80 Net Debt to Adj. EBITDA 2.8x $25 $15 BOND DEBT COVENANTS (RATIOS) Bond Metrics 4Q23 (I & II) 2023 '26 '28 '29 '30 '31 '32 '33 '36 2039 ... Leverage ratio 18.6% <60% Cash Interest Rate: (%) 4.9 4.1 3.2 4.1 3.7 4.1 3.5 - 3.8 3.9 Secured debt leverage 3.5% <40% 4Q23 Internal limit 4Q23 Internal limit Fixed charge coverage 6.9x >1.5x LTV FMV 13.8% 35% LTV GAV 20.6% 40% Leverage according CNBV 17.7% <50% Data as of December 31, 2023. 1. A securities rating is not a recommendation to buy, sell or hold securities and is subject to revision or withdrawal at any time by the rating agency 2. Liquidity is comprised of US$197M of cash, US$400M undrawn from unsecured credit facility including accordion feature for additional US$100M. 14 14#15Best Practices Oriented to Create Value FIBRA PROLOGIS Encionos, Mexico city 15#16• • • Strong Sustainability Focus GOALS Net zero and GHG Emissions: Achieve net zero by 2040 for Scope 1, 2 and 3 emissions. Building Certification: Achieve sustainable certification for 100% of operating portfolio (by area) (2021 baseline). Renewable energy: Use renewable energy to provide for 100% of our customers' energy needs by 2030. ⚫ LED Lighting: Install 100% LED lighting across our portfolio by 2025. • . • Community Engagement: Achieve 1,400 hours of volunteer annually. Logistics Workforce Training: Train +700 people in logistics by 2025 (2022 baseline). Ethics: Ensure 100% of employees complete ethics training each year SOLAR PROJECT Cheaper energy Expected to be finished by 2025 Investment made by Prologis RECOGNITIONS AND RATINGS GRESB REAL ESTATE sector leader 2023 Industrial Regional Sector Leader for 3rd year in a row SUSTAINALYTICS ESG Risk Rating 9.9 Negligible Risk MSCI ESG RATINGS CCC B BB BBB A BBB AA AAA FIBRA PROLOGIS ® 16#17World Class Corporate Governance Alignment with Certificate Holders FIBRA PROLOGIS TENURE 10 GENDER Women 18% Men 82% DIVERSE AND EXPERIENCED TECHNICAL COMMITTEE¹ Luis Gutiérrez Chairman Mexico Prologis Inc Héctor Ibarzábal CEO FIBRA Prologis Prologis Inc Edward S. Nekritz Chief Legal Officer Prologis Inc Dan Letter President Prologis Inc Armando Fregoso President of Latam Prologis Inc Alberto Saavedra Partner Santa Marina y Steta Miguel Álvarez del Río CEO Finaccess Mexico Mónica Flores Barragán President for Latin America ManpowerGroup KNOWLEDGE, SKILLS AND EXPERIENCE QUALIFICATIONS Carlos Elizondo Mayer-Serra Dr. Political Science Oxford University Gonzalo Portilla Managing Director CBRE Loan Services Katia Eschenbach Former CEO Trafigura Mexico COMPOSITION INDEPENDENCY Prologis Member 45% Independe nt 55% Real Estate/Logistics LG HI EN DL AF AS MA MF CE GP KE CEO/Executive Management Strategic Planning Finance/Accounting Regulatory Risk Management . . . . . . . . . 1. Technical Committee members are ratified annually by certificate holders ΟΙ ΟΣ 30 ΤΟΣ ΟΣ 0-5 years 6+years MANAGING CONFLICT OF INTEREST • . Only independent members may vote for related-party transactions, such as purchasing stabilized assets from our sponsor, Prologis Prologis' 45.1% ownership of FIBRA Prologis, demonstrates alignment with certificate holders Three committees: Audit Committee (100% independence), Practices Committee (100% independence), Financing Committee (67% independence) . 17#18Strong Sponsor PROLOGIS FIBRA PROLOGIS Santa Maria, Mexico city 18#19PROLOGIS Global portfolio with a focus on high-barrier, high-growth markets $219B Assets under management 1.2B Square feet on four continents $126B Equity market cap $40B Build out of land bank (TEI) PLD NYSE, S&P 500 member, #65 6,700 Customers A3/A Credit rating¹ 2.8% Global GDP flows through our distribution centers U.S. 803M SF 3,877 Buildings 7,885 Acres² OTHER AMERICAS 83M SF 341 Buildings 1,960 Acres² EUROPE 242M SF 1,112 Buildings 2,157 Acres² ASIA 114M SF 283 Buildings 89 Acres² Note: Data as of December 31, 2023. 1. A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. 2. Includes land subject to options. 1 19#20Leveraging the Sponsor Alignment Revenue management Substantial ownership Financial experience and bank relationships Performance Fee Real estate developer, owner and operator Top-notch systems Global and world class team FCPA PROLOGIS PLD ESG Strategy World trends Real Estate design 20 20#21Appendix 27 29 30 Joh FIBRA PROLOGIS ® Agua Fria 3 100 Juknamn Coole Agua Fría, Monterrey 21 21#22Investor Presentation 2024 Guidance US Dollars in thousands except per CBFI amounts FX = Ps$19 per US$1.00 Low (A) $ 0.1850 Financial Peformance Full year FFO, as modified by FIBRA Prologis, per CBFI (excludes incentive fees) Operations Year-end occupancy Same store cash NOI change Annual capex as a percentage of NOI Capital Deployment Building Acquisitions Building Dispositions Other Assumptions G&A (Asset management and professional fees) Full year 2024 distribution per CBFI (US Dollars) (B) A. B. FFO (as modified by FIBRA Prologis) guidance excludes the impact of Mexican Peso movements as U.S. Dollar is the functional currency of FIBRA Prologis. G&A excludes any potential incentive fee. FIBRA PROLOGIS High 0.1950 98.5% 97.5% 6.5% 8.0% 13.0% 14.0% ssss $ 100,000 $ 40,000 0.1410 $ s S St St 300,000 50,000 $ 45,000 0.1410 22 22#23Investor Presentation Creating Value for Certificate Holders TOTAL RETURN OF CBFIS IN MEXICAN PESOS June 4, 2014 December 31, 2023 404% 288% 93% 306% 261% 121% FIBRA PROLOGIS Peer A Peer B Peer C Peer D FIBRA Index Stock Return Dividend Return FIBRAPL DISTRIBUTIONS PER CBFI (USD$) & AFFO PAYOUT RATIO (%) (1) 6.1% CAGR FIBRA PROLOGIS $0.25 0.2229 $0.20 0.0856 $0.15 (2) 0.1000 0.1100 0.1182 0.1240 0.1240 0.1410 $0.10 0.0756 0.0990 0.1075 0.1200 0.1373 $0.05 $0.00 101% 91% 94% 94% 95% 97% 81% 80% 85% 147% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (3) 2024E Distribution per CBFI in cash ■Distribution per CBFI in kind Source: Bloomberg, company filings. FIBRA Prologis' initial public offering was June 4, 2014. Peers include Terrafina, FIBRA Uno, FIBRA Macquarie and Vesta. 1. CAGR based on annualized 2014 figures. 2. Represents annualized distributions for 2014 based on period from June 4, 2014 through December 31, 2014. FIBRAPL at IPO price. Since IPO the distribution was US$0.0435, this was used for the AFFO payout ratio. 3. 2023 considers distribution in cash and in kind due to a taxable gain. The guidance for 2023 was 0.1300 per CBFI, anything above that, was due to the taxable gain. 23#24(%) Investor Presentation Historical Operating Performance ELEVATED PERIOD-END OCCUPANCY (%) 98.9 97.9 97.3 97.4 97.6 97.1 96.8 96.5 96.3 STRONG POSITIVE RENT CHANGE ON ROLLOVER Q414 Q415 Q416 Q417 Q418 Q419 Q420 Q421 Q422 Q423 13.4 8.9 9.5 14.710.39.7 11.8 80 8.3 8.0 13.210.914.013.85.1 Q414 Q115 Q215 Q315 Data as of December 31, 2023. Q415 Q116 Q216 Q316 Q416 16.0 16.3 13.5 13.9 13.2 10.5 6.6 4.0 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Trailing 4Q (1.4) Q221 Q321 7.7 7.4 15.2 Q421 11.3 19.6 24.626.7 38.5 30.9 46.547.8 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 24 99.8 FIBRA PROLOGIS#25Investor Presentation Historical Growth NOI GROWTH Millions of USD 320 280 240 200 160 120 80 40 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 FFO GROWTH Millions of USD 250 200 150 100 50 ADJUSTED EBITDA GROWTH Millions of USD 280 240 200 160 120 80 40 0 FIBRA PROLOGIS 2015 2016 2017 2018 2019 2020 2020 2022 2023 AFFO GROWTH Millions of USD 200 150 100 50 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Data as of December 31, 2023. ul .....|||| 2015 2016 2017 2018 2019 2020 2021 2022 2023 Note: For comparative purposes, incentive fees paid to FIBRAPL's sponsor in 2017, 2018, 2019, 2021 and 2022 have been excluded, as has the impact on realized exchange losses/gain from VAT in 2015 and 2020. 25#26Investor Presentation Historical Credit Metrics DEBT % OF INVESTMENT PROPERTIES FIXED CHARGE COVERAGE RATIO 40% 30% 8X 20% 10% 7x 6x 965432 X X 2X 1 X 0% 0 Q416 Q417 Q418 Q419 Q420 Q421 Q422 Q423 DEBT TO ADJUSTED EBITDA 4X 3X 2x 1x XXX x 。 6X 5X Q416 Q417 Q418 Q419 Q420 Q421 Q422 Q423 FIBRA PROLOGIS الاسس Q416 Q417 Q418 Q419 Q420 Q421 Q422 Q423 LIQUIDITY¹ Millions of USD 750 600 450 300 150 ...||||| الا Q416 Q417 Q418 Q419 Q420 Q421 Q422 Q423 Data as of December 31, 2023. Note: On April 6, 2020, FIBRA Prologis acquired Prologis Park Grande for US$353M, including closing costs but excluding VAT. The information displayed on this page does not reflect that acquisition. 1) Liquidity for the 4Q23 is comprised of US$197M of cash, US$400M undrawn from unsecured credit facility. Includes accordion feature for additional US$100M. 26#27Investor Presentation Portfolio Growth Since IPO GROSS LEASABLE AREA Thousands of SF, June 4, 2014 through December 31, 2023 FIBRA PROLOGIS 49,000 45,000 4.9% CAGR 41,000 37,000 33,000 29,000 25,000 IPO 4Q 2014 4Q 2015 4Q 2016 4Q 2017 4Q 2018 4Q 2019 4Q 2020 4Q 2021 4Q 2022 4Q 2023 REAL ESTATE PORTFOLIO (1)(2)(3) Thousands of USD$ $5,200 $4,700 $4,200 $3,700 $3,200 $2,700 $2,200 $1,700 $1,200 $700 $2.2 B +218% Total $1.1 B $4.9 B $1.6 B IPO Portfolio Historic Acquisitions Value Since IPO Value Creation Total As of 31-Dec-2023 1. Based on 3rd party appraisals. 2. IPO was June 4, 2014. 3. Post-IPO acquisitions were completed between 2014 and 4Q23, including growth in appraised value. 27 22#28Investor Presentation Fee Structure Transparent and Aligned Administration Fees Operating Fees Fee Type Property Management Leasing Commission Only when no broker is involved Construction Fee / Development Fee Asset Management Calculation Payment Frequency 3% x collected revenues New leases: 5% x lease value for <6 yrs; 2.5% x lease value for 6-10 yrs; 1.25% x lease value for > 10 yrs Renewals: 50% of new lease schedule Monthly ½ at closing 12 at occupancy 4% x property and tenant improvements and construction cost Project completion 0.75% annual x appraised asset value Quarterly Hurdle rate 9% High watermark Yes Incentive Fee 10% Currency 100% in CBFIS 6 months Lock up Annually at IPO anniversary FIBRA PROLOGIS 28#29INVESTOR RELATIONS Leveraging the Sponsor REAL ESTATE PLATFORM Global land bank Ś 1.2 BSF in the world's top consumption markets Strategic Capital franchise cost structure Ultra-efficient PROCUREMENT PROLOGIS PROLOGIS VEN ESSENTIALS SOLUTIONS Operations Sustainability Energy + CUSTOMERS Workforce Mobility High-quality cash flow/earnings DATA, DIGITAL AND TECHNOLOGY 29#30What our customers say about us Net Promoter Score (NPS) - Indicator of future growth Measures loyalty and predicts retention COMCAST hp ups 2023 B2B NPS averages Commercial Real Estate = 32 McKinsey & Company FedEx JLL IN-N-OUT BURGER Microsoft patagonia J.B. HUNT salesforce -100 Needs Improvement 0 Good 20 20 Very Good FIBRA PROLOGIS 2023 NPS = 53 Customers rate their experience with Prologis as excellent. - 91% favorable for Trustworthiness 86% favorable for Communication 84% favorable for Responsiveness 50 50 Excellent 80 World Class 100 1. Source: Bain & Company 2023, Prologis 2023 Annual CX Survey, Clearly Rated, Inc. 2023 NPS Benchmarks for B2B Service Industries, Comparably Top Brands (NPS). 30#31Investor Presentation Strategic Acquisition of Prologis Completed April 2020 . Prologis Park Grande Location: Mexico City Land Size: 212.3 acres, 9.3 MSF • GLA: 3.9 MSF • 100% leased Unique Competitive Advantage: • • State of the art logistics park focused on e- commerce customers and consolidation of 3PL customers Strategically located in the land constrained premier Class-A building corridor of Mexico City GONÇALVES TRUPER MARY KAY B-6 Ryder B-7 B-5 B-8 vf Hasbro B-2 mercado libre 1.0 MSF B-4 Note: On April 6, 2020, FIBRA Prologis acquired Prologis Park Grande for US$353M, including closing costs but excluding VAT. G DIAGEO B-1 1.0 MSF amazon FIBRA PROLOGIS B-3 GEODIS 31#32Investor Presentation Mexico City 50 km 40 km Adolfo Lopez Mateos Ind. Airport Prologis Park Grande Land Prologis Cedros 1-10 Prologis Puente 57 Prologis Park Grande 1-8 Prologis Carrizal 1-3 Prologis Ladero Land Prologis Izcalli 1-4 C Prologis Tres Rios 1-10 + Land Prologis Laurel 1-2 Nicolas Romero Cuautitian Izcalli Prologis Alamos 1-7 Coacalco Prologis Encino 30 km Prologis Fresno 1-2 Prologis Mezquite 1-3 Prologis Agave 1-5 Tlalnepanta 20 km Ecatepec de Morelos Santa Clara Naucalpan 57 Prologis Pantaco 1 10 km Prologis Vallejo DC 1-3 Prologis Santa Maria 1-2 Polanco Mexico City Las Lomas Benito Juarez Internationa Airport Netzahualcoyotl Covoacan Santa Fe 190 Los Reyes Prologis Iztapalapa 150 FIBRA PROLOGIS Industrial Corridors Development Properties & Land Prologis Stabilized Assets FIBRAPL Assets 32 32#33Investor Presentation Toluca 55 Carretera Galaxia Toluca Aviación Autopan Cajón Carretera Toluca Palmi De Jesús Segunda Sección Carretera 10 KM 134 36 Prologis Toluca II 1-4 + Land 44 134 134D Aeropuerto Internacional de Toluca El Cerrillo Vista Hermosa, 44 0 KM 134D FIBRA PROLOGIS Prologis Toluca 1-4 Nueva Ameyalco Lerma de Villada Adolfo López Mateos Prologis Toluca III Los Encincos 15 15 Toluca-de Lerdo 15 Paseo Tollocan Paseo Tollocan 134 Metepec 44 15D Building Building and Land Land Industrial Zones 33#34Investor Presentation Guadalajara de las Flores 15 Prologis Centro Jalisco 1-5 54 Zapopan Guadalajara Calle Gigantes El Rosario Prologis Guadalajara Downtown 1 Tlaquepaque Tonalá Tools FIBRA PROLOGIS Carretora Zapotlanejo-Matatlan 90 Prologis Las Pintas Prologis Sandero de Las Periferico Prologis Moras Santa Sur 100-500 El Bosque Los Altos 1,5, 12-15 90 90 150 132 Bonanza El Salto San Miquel Residencial Senderos de Monte Verde Lomas de Santa Anita Vista Sur Bicentenario Aeropuerto Internacional de Guadalajara El Salto Juanacatlán 20 KM 107 La Pila Tlajomulco de Zúñiga Tlajomulco de Zúñiga an de rez- 10D Pedregal de San Miguel atlán de Juare 30 KM 113 Prologis Victoria Land Prologis Arrayanes 1-4 Juanacatlán 40 KM Atequiza Building Building and Land Land Industrial Zones 34#35Investor Presentation Monterrey Fraccionamiento Villas Buena Vista 40 Monterrey 100 Prologis Park Escobedo + Land General Escobedo Ricardo Flores Magón 85 10 KM San Nicolás de los Garza n-Pedro za García Monterrey 85 Santa Rosa Sector 5 186 30 KM FIBRA PROLOGIS 100 Prologis Apodaca 1-6, 8-9 & 11-14 Prologis Ojo de Agua 1 Prologis Agua Fria 1-4, 6 & 8 e Entronque Pesquería, La Mesa Zacatequitas, Las Marraneras, Apodaca Las Flores, El Amb qua Fria Aeropuerto, El Llano Stiva cionalito Prologis Monterrey rrey.ional Industrial Center 6-13 Monterrey Almeria Guadalupe Guadalupe 20 KM Prologis Apodaca East 8, 10 & 16 + Land 52 28 Juárez Building Building and Land Land Industrial Zones 35#36Investor Presentation Tijuana Otay Mesa Rd Prologis Frontera Prologis Otay 1-10 Prologis Otay Sur 1 Nuevo Milenio In Costa mosa Costa 2000 Aeropuerto Internacional de Tijuana Tijuana nta eras Las Cumbres Real del Mar Prologis Pacifico 12, 14-18 Prologis Prologis Alamar 1-3 Otay Sur 2 evare ocupam Prologis Pacifico 1-11 Prologis Insurgentes 1-4 Prologis Colinas 1-2 efugio 10 KM 20 KM Playas de Pecarite Desarrollo Prologis Tijuana Gateway Land Prologis Encantada 1-5 20 KI Prologis TAE Tijuana Building 1-2 Prologis El Florido 1-3 30 KM FIBRA PROLOGIS Building Building and Land Land Industrial Zones 36#37Investor Presentation Ciudad Juárez 375 El Paso Col Fronteriza Ampl Juárez Col Tarahumaras Col Kilometro, 27 20 KM Estación Méndez Col Valle Dorado ll Col Valle Dorado III Fracc Plaza del Sal Prologis Los Aztecas 1-2 375 Alameda Ave rbroug Prologis Bermudez 1-2 20 Loop Dr corro Prologis Rio Bravo Prologis Centro Prologis Industrial Parque Ind Salvarcar Juarez 1-2, 4-5 & 10-18 + Land Zapoteca 1,3-7 Prologis 10 KM Prologis Del Norte 1-3 Carlos Independencia 1-5 illo Peraza FIBRA PROLOGIS 375 10 Socorro Socorro Rd Ampliación Loma Blanca San Elizario 20 KM Prologis Southgate Land San Isidro Building Building and Land Land Industrial Zones 37#38Investor Presentation Reynosa 336 281 Prologis Villa Florida II 1-2 & 4 + Land Prologis Villa Florida 1-2 Prologis Del Norte II 3-4 Los Longoria Alvaro Obregón Chapultepec, Chaparral Vicente Guerrero Zona Centro Bella Vista Morelos Del Parque Altamira Hidalgo Privada Américas Las Delicias Bugambilias Privada Las Nuevo Tamaulipas Nuevo Amanecer 40 Prologis Del Norte 1-2 Viaducto Reynosa 10 KM José López Portillo II 281 281 FIBRA PROLOGIS Nopaleras Prologis Palma Prologis Reynosa 11 Reynosa Secci strial Reynosa Prologis Prologis El Reynosa 1-8 Puente 1-3 Villa Diamante 97 Aeropuerto Interna 97 de Re Prologis Pharr Bridge 1-2, 4-8 & 10-11 Prologis Colonial Prologis Pharr Bridge Land Building Building and Land Land Industrial Zones 38#39FIBRA PROLOGISⓇ

Download to PowerPoint

Download presentation as an editable powerpoint.

Related

KKR Real Estate Finance Trust Results Presentation Deck image

KKR Real Estate Finance Trust Results Presentation Deck

Real Estate

KKR Real Estate Finance Trust Investor Presentation Deck image

KKR Real Estate Finance Trust Investor Presentation Deck

Real Estate

KKR Real Estate Finance Trust Investor Presentation Deck image

KKR Real Estate Finance Trust Investor Presentation Deck

Real Estate

KKR Real Estate Finance Trust Investor Presentation Deck image

KKR Real Estate Finance Trust Investor Presentation Deck

Real Estate

KKR Real Estate Finance Trust Results Presentation Deck image

KKR Real Estate Finance Trust Results Presentation Deck

Real Estate

KKR Real Estate Finance Trust Results Presentation Deck image

KKR Real Estate Finance Trust Results Presentation Deck

Real Estate

KKR Real Estate Finance Trust Results Presentation Deck image

KKR Real Estate Finance Trust Results Presentation Deck

Real Estate

KKR Real Estate Finance Trust Results Presentation Deck image

KKR Real Estate Finance Trust Results Presentation Deck

Real Estate