FIBRA Prologis Announces Third Quarter 2015 Earnings Results
-- Operating Portfolio Occupancy Rose to 96.3 Percent --
-- Net Effective Rents on Rollover Grew 14.7 Percent --
-- Cash Same Store Net Operating Income Increased 9.8 Percent --
MEXICO CITY, Oct. 22, 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 third quarter of 2015.
FIBRA Prologis began trading on the Mexican Stock Exchange June 4, 2014. As such, results in the third quarter of 2015 reflect the first year-over-year comparable period for the new company.
Funds from operations (FFO) in the third quarter were Ps. 420.7 million (approximately US$26.0 million), or Ps. 0.6631 per CBFI (approximately US$ 0.0410 per CBFI). Net earnings in the third quarter were Ps. 444.0 million (approximately US$27.5 million), or Ps. 0.6997 per CBFI (approximately US$ 0.0433 per CBFI).
"I'm very pleased with our operating performance during the quarter," said Luis Gutierrez, CEO, Prologis Mexico. "This robust performance reflects our strategy of operating only in those markets in Mexico where trade and consumption intersect."
STRONG OPERATING PERFORMANCE RESULTING FROM FOCUSED INVESTMENT STRATEGY
FIBRA Prologis leased 1.8 million square feet (approximately 172,000 square meters) in the third quarter; 74.2 percent of that leasing activity occurred in its global markets, predominantly in Mexico City. FIBRA Prologis ended the quarter with 96.3 percent occupancy in its operating portfolio, an increase of 30 basis points sequentially and 100 basis points over the same period in 2014.
Customer retention in the quarter was 92.6 percent. The company maintained a record average retention of more than 90.0 percent for five consecutive quarters, with tenant renewals totaling 1.5 million square feet (135,500 square meters). Net effective rents on leases signed in the quarter increased 14.7 percent from prior in-place rents, led by regional markets with an increase of 20.5 percent.
In the third quarter, same store net operating income (NOI) increased 9.8 percent on a cash basis and 0.8 percent on an IFRS basis compared with the same period in 2014.
ACQUISITION ACTIVITY EXPANDS CLASS-A PORTFOLIO
Subsequent to quarter end, FIBRA Prologis acquired three Class-A buildings totaling 796,000 square feet (approximately 74,000 square meters) for approximately Ps. 1,067.1 million US$64.3 million, including closing costs, from its sponsor Prologis.
LIQUIDITY AND FINANCIAL POSITION
As of September 30, 2015, FIBRA Prologis' liquidity was approximately Ps. 7.6 billion (US$443.6 million), which included more than Ps. 6.8 billion (US$400.0 million) of available capacity on its unsecured credit facility and Ps. 744.5 million (US$ 43.6 million) of unrestricted cash.
Net debt as a percentage of investment properties was 26.1 percent, fixed charge coverage was 3.95 times and net debt to adjusted EBITDA was 3.93 times.
GUIDANCE FOR 2015
FIBRA Prologis confirmed its full-year 2015 FFO guidance range of US$0.16 to US$0.17 per CBFI, excluding the realized exchange loss from the reimbursement of the value-added tax paid in connection with the acquisition of the initial portfolio. Distributions for full-year 2015 will be US$0.10 per CBFI, representing approximately 95 percent of forecasted AFFO. This assumes:
- year-end occupancy between 95.25 percent and 96.25 percent
- cash same store NOI growth between 4.5 percent and 5.5 percent
- capital expenditures as a percentage of NOI between 14.0 percent and 17.0 percent
- asset management fees and professional fees between US$17.0 million and US$19.0 million
- building acquisitions between US$130.0 million and US$170.0 million
WEBCAST & CONFERENCE CALL INFORMATION
FIBRA Prologis will host a live webcast/conference call to discuss quarterly results, current market conditions and future outlook on October 23, 2015, at 12 p.m. CT/1 p.m. ET. Interested parties are encouraged to access the webcast by clicking the microphone icon located near the top of the FIBRA Prologis Investor Relations website (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 43768489.
A telephonic replay will be available Oct 23–Nov 6 at +1 855 859 2056 from the U.S. and Canada or at +1 404 537 3406 from all other countries using conference code 43768489. The replay will be posted in the Investor Relations section of 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, 2015, FIBRA Prologis comprised 185 logistics and manufacturing facilities in six industrial markets in Mexico totaling 31.6 million square feet (2.9 million square meters) of gross leasable area.
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
Released October 22, 2015