FIBRA Prologis Announces Third Quarter Earnings Results
- Operating Portfolio Occupancy Increased to 95.3 Percent -
- Rents on Rollover Increased 7.5 Percent -
- 3.3 Million Square Feet Leased -
MEXICO CITY, Oct. 27, 2014 /PRNewswire/ -- FIBRA Prologis (BMV: FIBRAPL 14), the leading owner and operator of Class-A industrial real estate in Mexico, today reported results for the third quarter of 2014.
FIBRA Prologis began trading on the Mexican Stock Exchange June 4, 2014. As such, the company does not have comparable results from prior quarters. For the operational metrics included here, the company referred to the performance of the properties in its portfolio prior to ownership by FIBRA Prologis.
Funds from operations ("FFO") in the third quarter were Ps. 323.8 million (approximately US$ 24.0 million). Net earnings per fully diluted share were Ps. 296.0 million (approximately US$ 22.0 million) or Ps. 0.47 per CBFI (approximately US$ 0.03 per CBFI).
"We had an exceptional quarter, and we feel great about our business for the remainder of the year," said Luis Gutierrez, CEO, FIBRA Prologis. "Real estate fundamentals in Mexico are solid and we see greater demand for our product due to its superior quality and location."
STRONG OPERATING RESULTS
FIBRA Prologis leased 3.3 million square feet (approximately 305,000 square meters) in the third quarter. Operating portfolio occupancy at quarter end was 95.3 percent, an increase of 100 basis points over the prior quarter. Tenant retention in the third quarter was 97.2 percent. Net effective rents on leases signed in the quarter increased 7.5 percent from prior in-place rents. Lease renewals totaled 3 million square feet (278,700 square meters) of which 27.5 percent were leases set to expire in 2015 and thereafter.
Cash same-store net operating income ("NOI") increased 0.4 percent. Cash same store NOI gains derived from an increase in occupancy and positive net effective rent change were offset by free rent that resulted from the quarter's higher leasing volume.
SOUND CAPITAL STRUCTURE
As of September 30, 2014, FIBRA Prologis' liquidity was approximately Ps. 5.9 billion (US$ 430.5 million), which includes Ps. 3.4 billion (US$ 250.0 million) of available capacity on its credit facility, Ps. 478 million (US$ 35.0 million) of unrestricted cash and a Ps. 2.0 billion (US$ 145.5 million) Value Added Tax receivable.
WEBCAST & CONFERENCE CALL INFORMATION
FIBRA Prologis will host a webcast/conference call to discuss quarterly results, current market conditions and future outlook tomorrow, Oct. 28. at 10 a.m. CT. 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 (http://www.fibraprologis.com). Interested parties also can participate via conference call by dialing +1 (877) 256-7020 (from the United States and Canada toll free) or +1 (973) 409-9692 (from all other countries) and enter conference code 11062100.
A telephonic replay will be available from Oct. 29 through Nov. 28 at +1 (855) 859-2056 from the U.S. and Canada or at +1 (404) 537-3406 from all other countries using conference code 11062100. 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 September 30, 2014, FIBRA Prologis was comprised of 178 strategically-located logistics and manufacturing facilities in six industrial markets in Mexico totaling 29.8 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.
SOURCE FIBRA Prologis
Released October 27, 2014