Financial Data and Key Metrics Changes - Total revenues increased by 6.8% year over year, reaching $67 million, primarily driven by rental income from new leases and inflationary adjustments [17] - Adjusted net operating income rose by 7.2% to €61.8 million, with an adjusted NOI margin of 94.5% [18] - Adjusted EBITDA increased by 9% year over year to €55 million, with a margin expansion of 137 basis points to 84.1% [18] - Pre-tax income decreased to $54.5 million compared to $131.8 million in 2024, mainly due to lower gains on valuation of investment properties [19] - Funds from operations (FFO), excluding current tax, increased by 12.9% year over year to $43.1 million [19] - Cash and cash equivalents stood at $65.2 million, with total debt increasing to $900 million [20] Business Line Data and Key Metrics Changes - New leasing activity totaled 1.8 million square feet, including 411,000 square feet in new contracts, reflecting a sequential increase from the first quarter [9] - Strong retention rates of 84% were reported, with rent increases of 20% to 30% in some cases [10] - The tracking 12-month spread reached 13.7%, indicating a significant increase in the mark-to-market portfolio strategy [10] Market Data and Key Metrics Changes - The portfolio ended the quarter with a stabilized occupancy of 95.5%, with rents indexed to inflation [8] - The company noted an uptick in vacancy in markets such as Tijuana and Juarez, but rents have maintained or increased in some cases [23] - The company has approximately 2 million square feet in lease-up stage across different regions [25] Company Strategy and Development Direction - The company is focused on extracting value from core operations and managing assets with discipline, emphasizing tenant retention and strategic positioning [12] - The strategy includes completing existing projects and strategically expanding the land bank in line with Route 2030 [11] - The company aims to reinforce its foundation to scale confidently when the environment normalizes, with a focus on energy infrastructure planning and streamlining permitting [12] Management's Comments on Operating Environment and Future Outlook - Management views the current slowdown in leasing as a temporary deceleration rather than a structural change, with companies exercising caution rather than canceling plans [14] - The company expects recent deliveries of income-producing properties to contribute to revenues in the second half of 2025 [15] - Management remains optimistic about the long-term growth potential in Mexico, particularly in light of industrial realignment [16] Other Important Information - The company acquired 128.4 acres in Guadalajara and finalized a 20.2-acre acquisition in Monterrey, enhancing its strategic footprint [20] - The company paid a cash dividend of $0.38 per ordinary share for the second quarter [21] Q&A Session Summary Question: Development pipeline progress ahead of USMCA review - Management noted an uptick in vacancy in some markets but expressed confidence in rent stability and pent-up demand as negotiations progress [23][24] Question: Leasing activity in Monterrey - Management highlighted strong net absorption in Monterrey and expressed confidence in leasing up new properties due to their prime locations [30][31] Question: Yield on cost for projects under construction - Management confirmed attractive yield on costs above 10% and noted stable construction costs with minor adjustments [39] Question: Land acquisitions and leverage by year-end - Management indicated a healthy leverage position and confidence in sustaining land acquisition strategies without compromising financial ratios [48] Question: Increase in leasing activity pipelines - Management observed increased visits to industrial parks and anticipated more leasing activity in the second half of the year [52] Question: Leasing spreads and development starts - Management expects continued strong leasing spreads and will be cautious with new development starts until existing properties are leased up [58][63] Question: Land bank and shovel-ready status - Management confirmed that recent land acquisitions are mostly shovel-ready, with some permits already in place [68][72] Question: Dynamics in absorption, vacancy, and rents - Management reported stable to positive rent growth in Tijuana and Ciudad Juarez, with expectations for increased leasing activity in the second half [80][81] Question: Renewals and market gaps - Management indicated approximately 3% of GLA expiring this year, with expectations for high renewal rates and rent increases [85][86] Question: Regional footprint and market priorities - Management emphasized the priority of leasing up vacant space in key markets like Monterrey and Ciudad Juarez before new developments [93]

Financial Data and Key Metrics Changes - Total revenues increased by 6.8% year over year, reaching $67 million, primarily driven by rental income from new leases and inflationary adjustments [14] - Adjusted net operating income rose by 7.2% to €61.8 million, with an adjusted NOI margin of 94.5% [15] - Adjusted EBITDA increased by 9% year over year to €55 million, with a margin expansion of 137 basis points to 84.1% [15] - Pre-tax income decreased to $54.5 million compared to $131.8 million in 2024, mainly due to lower gains on investment property valuations [16] - Funds from operations (FFO), excluding current tax, increased to $43.1 million from $38.2 million in Q2 2024, a 12.9% year-over-year increase [17] - Cash and cash equivalents stood at $65.2 million, while total debt increased to $900 million [17][18] Business Line Data and Key Metrics Changes - New leasing activity totaled 1.8 million square feet, including 411,000 square feet in new contracts, reflecting a sequential increase from Q1 [6][7] - Retention rates remained strong at 84%, with successful rent increases of 20% to 30% in some cases [7] - The tracking 12-month spread reached 13.7%, indicating a significant increase in the mark-to-market portfolio strategy [7] Market Data and Key Metrics Changes - The portfolio ended the quarter with a stabilized occupancy rate of 95.5%, with rents indexed to inflation [10] - The company noted a cautious leasing environment, particularly in export-linked markets, but highlighted resilience in renewals and releasing activity [5][6] - The company acquired 128.4 acres in Guadalajara and 20.2 acres in Monterrey, enhancing its strategic footprint [9][18] Company Strategy and Development Direction - The company is focused on long-term growth, emphasizing tenant retention, strategic positioning, and the intrinsic value of its existing portfolio [10] - The strategy includes completing existing projects and strategically expanding the land bank in line with Route 2030 [9] - The company aims to reinforce its foundation to scale confidently when the environment normalizes, including accelerating energy infrastructure planning [10][12] Management's Comments on Operating Environment and Future Outlook - Management views the current slowdown in leasing as a temporary deceleration rather than a structural change, with companies exercising caution rather than canceling plans [12] - The company expects recent deliveries of income-producing properties to contribute to revenues in the second half of 2025 [13] - Management remains optimistic about the long-term outlook, citing trade policy stabilization and manufacturing resilience as positive indicators for future growth [14] Other Important Information - The company paid a cash dividend of $0.38 per ordinary share for Q2 2025 [19] - The company maintains a healthy leverage position with a net debt to EBITDA ratio of four times and a loan to value ratio of 22.4% [18] Q&A Session Summary Question: Development pipeline progress ahead of USMCA review - Management noted an uptick in vacancy in some markets but expressed confidence in stable or increasing rents, indicating pent-up demand [20][22] Question: Leasing in Monterrey with weak net absorption - Management highlighted strong net absorption in Monterrey and expressed confidence in leasing up new properties due to their prime locations [28] Question: Yield on cost for projects under construction - Management confirmed attractive yield on costs above 10% and noted stable construction costs with minor adjustments [36][38] Question: Land acquisitions and leverage by year-end - Management reassured that leverage remains healthy and that land acquisitions align with their long-term strategy [42][46] Question: Increase in leasing activity pipelines - Management observed increased visits to industrial parks and anticipated more leasing activity in the second half of the year [50] Question: Leasing spreads expectations - Management expects continued strong leasing spreads and proactive management of tenant relationships [58] Question: Priorities for regional footprint and new starts - Management emphasized leasing up existing properties as a priority before considering new developments [90] Question: Impact of exchange rates on net income - Management clarified that most properties are dollar-denominated, and the impact on net income is primarily from financial adjustments rather than exchange rates [96][99] Question: Expected leasing activity from upcoming projects - Management expects high-quality assets to attract leasing activity within three to twelve months after delivery [104] Question: Exposure to manufacturing and logistics - Management indicated a balanced strategy between manufacturing and logistics, with a focus on long-term leases with high credit-rated companies [112] Question: Vertical integration and tenant demands - Management confirmed existing vertical integration and expressed interest in renewable energy solutions for tenants [120][122]