FIBRA Prologis Announces Fourth Quarter 2014 Earnings Results
- Operating Portfolio Occupancy Exceeded Upper Guidance Range at 96.3 Percent -
- Net Effective Rents on Rollover Increased 13.4 Percent -
- Acquired US$ 110 Million in Class-A Buildings -
MEXICO CITY, Feb. 9, 2015 /PRNewswire/ -- FIBRA Prologis (BMV: FIBRAPL 14), the leading owner and operator of Class-A industrial real estate in Mexico, today reported results for the fourth 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 includes the performance of the properties in its portfolio prior to ownership by FIBRA Prologis, when the properties were managed by its sponsor.
Funds from operations ("FFO") in the fourth quarter were Ps. 334.5 million (approximately US$ 22.7 million) or Ps. 0.53 per diluted CBFI (approximately US$ 0.04 per diluted CBFI), increasing 3.3 percent compared to the third quarter. For the period from June 4 to December 31, 2014, FFO was Ps. 748.5 million (approximately US$ 50.8 million) or Ps. 1.20 per diluted CBFI (approximately US$ 0.08 per diluted CBFI).
Net earnings were Ps. 558.9 million (approximately US$ 37.9 million) or Ps. 0.88 per diluted CBFI (approximately US$ 0.06 per diluted CBFI).
"At the time of our IPO, we introduced an ambitious plan for growth that guides our priorities as a new company," said Luis Gutierrez, CEO, FIBRA Prologis. "Our operating results exceeded our expectations and reflect our focused investment strategy, the high quality of our portfolio and the combined skill of our team. We have entered 2015 with excellent momentum."
OPERATING RESULTS OUTPERFORM EXPECTATIONS
FIBRA Prologis leased 1.8 million square feet (approximately 169,200 square meters) in the fourth quarter. Occupancy at quarter end was 96.3 percent, an increase of 100 basis points over the prior quarter. Tenant retention in the fourth quarter was 90.6 percent. Net effective rents on leases signed in the quarter increased 13.4 percent from prior in-place rents.
Cash same store net operating income ("NOI") increased 5.5 percent during the fourth quarter.
ACQUISITIONS DEEPEN PRESENCE IN GLOBAL MARKETS
FIBRA Prologis acquired six Class-A buildings totaling 1.6 million square feet (approximately 144,800 square meters) for approximately Ps. 1.5 billion (approximately US$ 110 million) from its sponsor and the sponsor's co-investment venture.
STRONG FINANCIAL POSITION
As of December 31, 2014, FIBRA Prologis' liquidity was approximately Ps. 4.6 billion (US$ 313.1 million), which includes Ps. 2.2 billion (US$ 150.5 million) of available capacity on its credit facility, Ps. 267.7 million (US$ 18.2 million) of unrestricted cash and a Ps. 2.1 billion (US$ 144.4 million) Value-Added Tax receivable.
As of December 31, 2014, the ratio of debt, less cash and value added tax receivable, as a percentage of investment properties, was 26.0%, the ratio of fixed charge coverage was 3.3 times and the ratio of debt to adjusted EBITDA was 4.3 times.
WEBCAST & CONFERENCE CALL INFORMATION
FIBRA Prologis will host a webcast/conference call to discuss quarterly results, current market conditions and future outlook tomorrow, Feb. 10, 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 website (http://www.fibraprologis.com). Interested parties also can participate via conference call by dialing +1 877 256 7020 (toll-free from the United States and Canada) or +1 973 409 9692 (from all other countries) and entering conference code 58347832.
A telephonic replay will be available from Feb. 10 through Mar. 10 at +1 855 859 2056 from the U.S. and Canada or at +1 404 537 3406 from all other countries using conference code 58347832. 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 December 31, 2014, FIBRA Prologis comprised 184 logistics and manufacturing facilities in six industrial markets in Mexico totaling 31.4 million square feet (2.9 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.
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SOURCE FIBRA Prologis
Released February 9, 2015