FIBRA Prologis (FIBRAPL 14) Q1 2025 earnings summary

Executive summary

• Achieved a strong first quarter with the successful integration of Terrafina, expanding the core portfolio by 40% and reinforcing sector leadership in Mexico's industrial real estate market.

• Achieved record net effective rent change on rollover at 65.2% for the quarter, led by Monterrey, Tijuana, and Mexico City.

• Delivered record net effective rent change of 55% and maintained occupancy above 98%, with tenant retention just under 94%.

• Period-end occupancy was 98.8% and average occupancy 98.1%, with five markets above 97%.

• Navigated a challenging macro environment marked by global trade uncertainty and new U.S. tariffs, with Mexico benefiting from USMCA zero tariffs.

Financial highlights

• FFO per CBFI rose to Ps. 1.2384 (US $0.0609) from Ps. 0.8416 (US $0.0492) year-over-year.

• AFFO totaled $88 million, up 78% year-over-year, driven by the Terrafina acquisition.

• Same-store cash NOI rose 2%, and GAAP NOI increased 4.6%, reflecting healthy rent growth and annual escalations, partially offset by peso devaluation.

• Net earnings per CBFI were Ps. 2.0195 (US $0.0985), down from Ps. 6.1383 (US $0.3505) year-over-year.

Outlook and guidance

• 2025 guidance reaffirmed after stress testing the financial model, maintaining a constructive outlook despite macroeconomic fluidity.

• Proactive management of lease rollovers, with 13% of net effective rent rolling in the remainder of the year and active negotiations underway.