Financial Data and Key Metrics Changes - Core FFO per share was $0.61 for the quarter, an increase of 3.4% compared to last year [13] - Cash available for distribution totaled $106.5 million, an increase of 8.5% compared to the prior period [13] - Leverage remains low with net debt to annualized run rate adjusted EBITDA equal to 5.2 times [13] - Liquidity stood at $1 billion at quarter end [13] Business Line Data and Key Metrics Changes - 36 leases totaling 5 million square feet were commenced during the quarter, generating cash and straight line leasing spreads of 27.3% and 42.1% respectively [14] - Retention for the quarter was 85.3% [14] - The company has signed 3.6 million square feet of leases commencing in the second quarter, with 1 million being new leasing [21][22] Market Data and Key Metrics Changes - The national under construction pipeline decreased more than 16% sequentially since the fourth quarter [9] - Weaker economic growth may negatively impact warehouse space demand, but this would be partially offset by increased near shoring and on shoring activity [9] Company Strategy and Development Direction - The company views the diversification of supply chains by tenants as a net positive due to its geographic diversity and focus on CBRE Tier one markets [7] - The company is maintaining its acquisition guidance, which is back-end weighted, with minimal impact to core FFO from acquisitions [46] - The company is focused on a broad mix of assets for acquisitions, evaluating both long-term and short-term leases [56] Management's Comments on Operating Environment and Future Outlook - Management noted that while tenant activity was healthy, the escalation of the global trade war continues to create uncertainty [7] - The company is optimistic about the demand for new leasing, with a strong start in the second quarter [34] - Management is cautious about the macroeconomic environment but remains confident in achieving its leasing targets for 2025 [78] Other Important Information - The company sold one building in Nashua, New Hampshire for gross proceeds of $67 million, representing a cash cap rate of 4.9% [11] - The company has approximately 2.5 million square feet of activity across 11 buildings in the U.S., with 50% under construction and 16% pre-leased [12] Q&A Session Summary Question: Clarification on new leasing activity - Management confirmed that 1 million square feet of new leases were signed in the last 30 to 60 days, with a mix of new and renewal leases [21][23] Question: Demand across different submarkets - Management noted healthy demand in Midwest markets and the Sunbelt, with some weakness in Atlanta and San Diego [25][26] Question: Trends in the private transactions market - Management observed that while there is still buyer interest, some portfolios have been pulled from the market due to pricing volatility [42][43] Question: Insights on credit loss - Management indicated minimal credit loss in the first quarter, with American Tire Distributors current on their 2025 rents [60][61] Question: Update on leasing activity and concessions - Management stated that while they are holding out for the best net effective rent, some markets may see increased free rent offers [108]

Financial Performance - Net income attributable to common stockholders increased by 149.7% to $91340 thousand, compared to $36580 thousand in Q1 2024[113] - Core FFO per diluted share increased by 3.4% to $061, compared to $059 in Q1 2024[113] - Cash NOI increased by 8.1% to $157197 thousand, compared to $145472 thousand in Q1 2024[113] - Same Store Cash NOI increased by 3.4% to $144620 thousand, compared to $139922 thousand in Q1 2024[113] - Cash Available for Distribution increased by 8.5% to $106486 thousand, compared to $98133 thousand in Q1 2024[113] Portfolio and Leasing Activity - The company acquired three buildings totaling 393564 square feet for $43285 thousand, with a Cash Capitalization Rate of 6.8% and a Straight-Line Capitalization Rate of 7.0%[28, 116] - One building was sold, consisting of 337391 square feet, for $67000 thousand, resulting in a net gain of $49913 thousand[34, 16] - The total portfolio Occupancy Rate was 95.9%, and the Operating Portfolio Occupancy Rate was 96.8% as of March 31, 2025[9] - Operating Portfolio leases commenced for 4962628 square feet, resulting in a Cash Rent Change of 27.3% and a Straight-Line Rent Change of 42.1%[37, 121] - Retention was 85.3% for 55 million square feet of leases expiring in the quarter[37, 121]

Core Insights - FIBRA Prologis reported a decline in net earnings per CBFI for Q1 2025, with earnings at Ps. 2.0195 (US$0.0985) compared to Ps. 6.1383 (US$0.3505) in Q1 2024, indicating a significant drop in profitability [2] - The company demonstrated resilience amid global trade uncertainties, supported by operational discipline and a strong balance sheet [3] Financial Performance - Funds from operations (FFO) per CBFI increased to Ps. 1.2384 (US$0.0609) in Q1 2025 from Ps. 0.8416 (US$0.0492) in Q1 2024, reflecting improved operational efficiency [2] - As of March 31, 2025, FIBRA Prologis had a leverage ratio of 22.9% and liquidity of approximately Ps. 11.2 billion (US$546 million), which included Ps. 9.5 billion (US$465 million) in available capacity on its unsecured credit facility [5] Operating Metrics - The period-end occupancy rate was 98.8% and average occupancy was 98.1%, both showing slight declines from the previous year [4] - Customer retention improved significantly to 93.6% from 75.4% in the same period last year [4] - The net effective rent change was recorded at 65.2%, up from 47.7% in Q1 2024, driven by strong performance in Monterrey, Tijuana, and Mexico City [4][7] Portfolio Overview - FIBRA Prologis' portfolio as of March 31, 2025, included 507 investment properties totaling 87.0 million square feet (8.1 million square meters), with 345 logistics and manufacturing facilities across six core industrial markets in Mexico [9]

Financial Data and Key Metrics Changes - Funds from operations (FFO) per share for Q1 2025 were $2.12, up 7.1% from the same quarter last year, marking over a decade of quarterly FFO per share exceeding the prior year's results [9][17] - Quarter-end leasing was at 97.3% with occupancy at 96.5%, while average quarterly occupancy was 95.8%, down 170 basis points from Q1 2024 [9][10] - Cash same-store net operating income (NOI) rose 5.2% for the quarter despite lower occupancy [10] - The company’s debt to total market capitalization was 13.7%, with an unadjusted debt to EBITDA ratio of 3 times and interest coverage of 15 times [20] Business Line Data and Key Metrics Changes - Quarterly releasing spreads were 47% on a GAAP basis and 31% on a cash basis [10] - The top ten tenants accounted for 7.1% of rents, down 70 basis points from a year ago, indicating a more diversified rent roll [10] Market Data and Key Metrics Changes - The leasing market showed improvement, but trade talks created uncertainty, particularly affecting the Los Angeles and Orange County markets [11][36] - Other markets, such as the Carolinas, Atlanta, and Florida, experienced better leasing volumes compared to the western regions [36] Company Strategy and Development Direction - The company is focusing on leasing to maintain occupancy and has raised its threshold for new investments and development starts until there is better economic visibility [12][14] - The company is reforecasting 2025 development starts to $250 million, with expectations for the majority in the second half of the year [14] - The strategy includes capitalizing on limited availability and modern facilities to put upward pressure on rents as demand strengthens [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating through periods of uncertainty, emphasizing the importance of financial strength and portfolio quality [23][25] - The company is optimistic about long-term trends such as population migration and evolving logistics chains, which are expected to benefit its portfolio [26] - Management acknowledged the uncertainty in the market due to tariffs and interest rates but remains focused on executing their strategy [23][25] Other Important Information - The company has maintained a healthy tenant collection rate, with bad debt as a percentage of revenue lower than in the previous year [22] - G&A expenses increased due to less overhead capitalization and an increase in equity-based compensation accounting [21] Q&A Session Summary Question: Leasing pace in the second quarter and market pullback - Management noted strong leasing volume in Q1, with some markets showing resilience despite uncertainty, particularly in the eastern regions [30][36] Question: Urgency in leasing and flexibility with tenants - Management emphasized the importance of quick leasing decisions but maintained standards without significantly lowering rents [42][46] Question: Dominguez building redevelopment plans - The building was scheduled for redevelopment due to its aging condition, with expectations for leasing activity to pick up post-improvements [54][62] Question: Development starts and market conditions - Management indicated that uncertainty around tariffs and potential recession led to a cautious approach in development starts, with a focus on market demand [69][75] Question: Leasing spreads in Los Angeles - Management acknowledged that the low leasing spreads in LA were not representative of the overall portfolio, attributing it to negative absorption in that specific market [80][82] Question: Construction costs and tenant space utilization - Construction costs have decreased, but demand remains a concern; tenants are looking to utilize their spaces more efficiently amid economic uncertainty [97][100] Question: Acquisition strategy and market changes - The company has adjusted its acquisition strategy due to changes in capital markets, focusing on higher return thresholds and being cautious with new investments [106][110] Question: Onshoring and manufacturing trends - Management expressed optimism about potential onshoring trends benefiting the company, particularly in Sunbelt markets [117][121]

Financial Data and Key Metrics Changes - Funds from operations (FFO) per share for Q1 2025 were $2.12, up 7.1% from the same quarter last year, marking over a decade of quarterly FFO per share exceeding the prior year's same quarter [9][17] - Quarter-end leasing was at 97.3% with occupancy at 96.5%, while average quarterly occupancy was 95.8%, down 170 basis points from Q1 2024 [9][10] - Cash same-store net operating income (NOI) rose 5.2% for the quarter despite lower occupancy [10][22] - The company’s debt to total market capitalization was 13.7%, with an unadjusted debt to EBITDA ratio of 3 times and interest coverage at 15 times [20] Business Line Data and Key Metrics Changes - Quarterly releasing spreads were 47% on a GAAP basis and 31% on a cash basis [10] - The top ten tenants now account for 7.1% of rents, down 70 basis points from a year ago, indicating a more diversified rent roll [10] Market Data and Key Metrics Changes - The leasing market showed improvement, but trade talks created uncertainty, particularly affecting the Los Angeles and Orange County markets [11][36] - Other markets, such as the Carolinas, Atlanta, and Florida, have shown stronger leasing volumes compared to Texas [36] Company Strategy and Development Direction - The company is focusing on leasing to maintain occupancy and has raised its threshold for new investments and development starts until there is better economic visibility [12][14] - Development starts for 2025 are reforecasted to $250 million, with expectations for the majority in the second half of the year [14][21] - The company aims to capitalize on development opportunities earlier than private peers due to its balance sheet strength and existing tenant expansion needs [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating through periods of uncertainty, emphasizing the importance of financial strength and portfolio quality [23][25] - The company remains optimistic about long-term trends such as population migration and evolving logistics chains, despite current macroeconomic uncertainties [26][121] Other Important Information - The company has maintained healthy tenant collections, with bad debt as a percentage of revenue lower in Q1 compared to 2024 [22] - The company is experiencing upward pressure on rents due to limited availability and higher development costs [15] Q&A Session Summary Question: Leasing pace in the second quarter and market pullback - Management reported strong leasing volume, with Q1 being the third-best quarter historically, but noted some tenants are putting decisions on hold due to uncertainty [30][32] Question: Urgency in leasing and flexibility with tenants - Management emphasized the need for quick lease completions but maintained standards without significantly lowering rents [42][46] Question: Dominguez building redevelopment plans - The building was scheduled for redevelopment due to its aging condition, with expectations for leasing activity to pick up after improvements are completed [54][62] Question: Development starts and market conditions - Management indicated that uncertainty around tariffs and potential recession led to a cautious approach in development starts, with a focus on market demand [69][75] Question: Leasing spreads in Los Angeles - Management acknowledged that the 5% leasing spread in LA was low and not representative of the overall portfolio, attributing it to negative absorption in that market [80][82] Question: Construction costs and tenant space utilization - Construction costs have decreased by 10-12%, but demand remains a concern; tenants are looking to utilize space more efficiently due to economic uncertainty [97][100] Question: Acquisition strategy and market changes - The company has adjusted its acquisition strategy to be more conservative, increasing return thresholds due to changes in capital markets [106][110] Question: Onshoring and manufacturing trends - Management expressed hope for increased US-based manufacturing, which could benefit the company, particularly in Sunbelt markets [117][121]

The company is in a strong position to continue growing its dividend at an above-average pace in the future. While there's a lot of uncertainty these days because of the potential impact of tariffs on the global economy and trade, the long-term outlook for industrial real estate is strong. "Over the long term, limited new supply and high construction costs support continued rent growth," stated co-founder and CEO Hamid Moghadam in the REIT's recent first-quarter earnings report. Further, despite the near-te ...

Image source: The Motley Fool. Wednesday, April 16, 2025 CALL PARTICIPANTS Need a quote from one of our analysts? Email [email protected] TAKEAWAYS SUMMARY President and Chief Executive Officer: Peter Baccile Chief Financial Officer: Scott Musil Chief Investment Officer: Johannson Yap Executive Vice President: Peter Schultz Senior Vice President, Investor Relations and Marketing: Art Harmon Executive Vice President of Operations: Chris Schneider Executive Vice President of Capital Markets and Asset Manageme ...

Financial Data and Key Metrics Changes - For Q1 2025, funds from operations (FFO) were reported at $0.68 per fully diluted share, an increase from $0.60 per share in Q1 2024, indicating a positive trend in financial performance [22] - Cash same-store rental growth for the quarter, excluding termination fees, was 10.1%, driven by increases in rental rates and higher average occupancy [22][23] - In-service occupancy at the end of the quarter was 95.3%, a decrease of 90 basis points from year-end and 20 basis points from the year-ago quarter [22][23] Business Line Data and Key Metrics Changes - The company achieved a cash rental rate increase of 30% for new and renewal leasing, with a projected growth of 30% to 40% for the full year [15][29] - Development leasing included a successful expansion of a tenant in Denver, bringing a 200,000 square foot building to 100% occupancy [16] - The company plans to break ground on a 176,000 square foot facility in Dallas, targeting a cash yield of approximately 8% [17] Market Data and Key Metrics Changes - Nationally, vacancy in Tier 1 U.S. markets was reported at 5.9%, unchanged since year-end [12] - Net absorption was 56 million square feet, with 24 million square feet occurring in the company's target markets [12] - New construction starts were 75% lower than the peak in Q3 2022, with only 54 million square feet breaking ground in Q1 [13] Company Strategy and Development Direction - The company is focused on executing objectives to drive long-term cash flow growth while monitoring the impact of tariffs on tenant demand [30] - The strategy includes remaining opportunistic in new investments, particularly in markets like Texas, Florida, and Pennsylvania [50] - The company aims to capitalize on unmet demand in specific sub-markets while being cautious due to tariff uncertainties [50] Management's Comments on Operating Environment and Future Outlook - Management expressed that the evolving landscape surrounding tariffs poses potential risks to business activity and leasing markets [10][11] - The company remains optimistic about its leasing objectives and has seen increased activity in tenant requests for proposals (RFPs) despite tariff concerns [47][75] - Management noted that while some conversations have paused, the overall interest and demand for space remain strong [88][90] Other Important Information - The company renewed its senior unsecured revolving credit facility by $100 million, extending the maturity date to March 2030 [24] - The company acquired two fully leased developments in Phoenix for a total basis of $120 million, with a cash yield of 6.4% [20] - The company expects to capitalize about $0.09 per share of interest for the full year of 2025 [29] Q&A Session Summary Question: Impact of tariffs on tenancy perspective - Management indicated that exposure to Chinese 3PLs is minimal, with only 450,000 square feet leased to them, and no significant concerns from auto tenants [35][37] Question: Development leasing visibility - Management confirmed that the majority of development leasing is still expected in Q4, with good activity in the market despite some tenant concerns [41][46] Question: G&A expenses related to stock-based compensation - Management acknowledged an increase in G&A due to accelerated stock-based compensation but did not provide specific figures during the call [55] Question: Current tenant activity and leasing velocity - Management noted that while some tenants have paused decisions, the overall interest remains strong, and many are still moving forward with leasing [88][90] Question: Development starts and market conditions - Management confirmed that the two new developments planned for Q2 are proceeding as they cater to local demand, despite current market uncertainties [144][145] Question: Amazon's expansion and RFPs - Management observed that Amazon is focused on enhancing same-day delivery capabilities and is active in several markets, indicating a shift in their approach to warehousing [161][162]

Financial Data and Key Metrics Changes - For Q1 2025, funds from operations (FFO) were reported at $0.68 per fully diluted share, an increase from $0.60 per share in Q1 2024, indicating a positive trend in financial performance [22] - Cash same-store rental growth for the quarter, excluding termination fees, was 10.1%, driven by increases in rental rates and higher average occupancy [22][23] - In-service occupancy at the end of the quarter was 95.3%, a decrease of 90 basis points from year-end and 20 basis points from the year-ago quarter [22][23] Business Line Data and Key Metrics Changes - The company achieved a cash rental rate increase of 30% for new and renewal leasing, with a projected growth of 30% to 40% for the full year [15][29] - Development leasing included a successful expansion of a tenant in Denver, bringing a 200,000 square foot building to 100% occupancy [16] - The company plans to break ground on a 176,000 square foot facility in Dallas, targeting a cash yield of approximately 8% [17] Market Data and Key Metrics Changes - Nationally, vacancy in Tier 1 U.S. markets was reported at 5.9%, unchanged since year-end [12] - Net absorption was 56 million square feet, with 24 million square feet in target markets, while new construction starts were 75% lower than the peak in Q3 2022 [13] - In the Inland Empire, vacancy rates decreased by 30 basis points, with net absorption of 3 million square feet, indicating a positive trend in that market [65] Company Strategy and Development Direction - The company is focused on executing objectives to drive long-term cash flow growth while monitoring the impact of tariffs on tenant demand [30] - Future developments will target areas with unmet demand, particularly in Texas, Florida, and Pennsylvania [50] - The company remains opportunistic regarding new investments, emphasizing risk-adjusted returns in targeted sub-markets [50][134] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the evolving landscape surrounding tariffs and their potential impact on business activity and leasing markets [10][11] - The tone remains positive, with good momentum and increased foot traffic, although decision-making has slowed due to uncertainty around tariffs [75][90] - Management anticipates that the majority of tenant demand will continue, despite some conversations being paused [88][90] Other Important Information - The company renewed its senior unsecured revolving credit facility by $100 million, extending the maturity date to March 2030 [24] - The company acquired two fully leased developments in Phoenix for $120 million, with a cash yield of 6.4% [20] - The company expects to capitalize about $0.09 per share of interest for the full year of 2025 [29] Q&A Session Summary Question: Impact of tariffs on tenancy perspective - Management indicated that exposure to Chinese 3PLs is minimal, with only 450,000 square feet leased to them, and no significant concerns from auto tenants [35][37] Question: Development leasing visibility - Management confirmed that the majority of development leasing is expected in Q4, with good activity in the market despite some tenant concerns regarding tariffs [41][46] Question: G&A expenses related to stock-based compensation - Management acknowledged an increase in G&A due to accelerated stock-based compensation but did not provide a specific dollar amount during the call [55] Question: Current tenant activity and leasing velocity - Management noted that while some tenants have paused, the overall interest and demand remain strong, with no specific concentration of paused activity in certain industries [88][92] Question: Development yields and construction costs - Management stated that they can achieve yields over 7% on new developments, despite rising construction costs, by focusing on areas with strong demand [112][114] Question: Amazon's expansion plans and RFPs - Management observed that Amazon is focused on expanding same-day delivery capabilities and is active in several markets, indicating a shift in their approach to warehousing [161][162]

MEXICO CITY, April 7, 2025 /PRNewswire/ -- FIBRA Prologis (BMV: FIBRAPL 14), a leading owner and operator of Class-A logistics real estate in Mexico, will host a webcast and conference call with senior management to discuss first quarter results, current market conditions and future outlook on Wednesday, April 30, at 9:00 a.m. Mexico Time.To access a live broadcast of the call, dial +1 888 596 4144 (toll-free from the United States and Canada), 800 269 4416 (toll-free from Mexico) or +1 646 968 2525 from al ...