MEXICO CITY - FIBRA Prologis (NYSE:PLD) (BMV:FIBRAPL 14), a prominent operator of Class-A industrial properties in Mexico, disclosed its financial outcomes for the fourth quarter and full year of 2023, revealing significant growth in net earnings and strong operational performance.
The company's net effective rents on rollover surged by 41.8 percent, while period-end and average occupancy rates stood at a high of 99.8 percent and 99.0 percent, respectively. FIBRA Prologis also maintained a robust customer retention rate of 84.3 percent. The same store cash net operating income (NOI) increased by 9.4 percent over the year.
In terms of acquisitions, the company invested US$332 million in Class-A properties. Additionally, it achieved a substantial milestone by certifying 18.7 million square feet of green space, aligning with 92 percent of its environmental goal.
The fourth quarter saw net earnings per CBFI (Certificado Bursátil Fiduciario Inmobiliario) reach Ps. 3.1136 (US$0.1770), a significant rise from Ps. 0.8163 (US$0.0411) in the same quarter of 2022. For the entire year, net earnings per CBFI were Ps. 13.6338 (US$0.7761), compared to Ps. 8.4672 (US$0.4158) for the previous year.
FIBRA Prologis also reported its funds from operations (FFO) per CBFI at Ps. 0.8249 (US$0.0469) for the quarter, and Ps.3.3502 (US$0.1881) for the full year.
The CEO of FIBRA Prologis, Héctor Ibarzabal, expressed confidence in the company's record operational and financial results, attributing them to strong market conditions, a high-quality portfolio, and a focus on customer service. He also highlighted the company's fortified balance sheet due to prudent management.
As of December 31, 2023, the company's leverage was at a low of 13.8 percent, with liquidity around Ps. 11.8 billion (US$697 million), including available credit and unrestricted cash.
Looking ahead to 2024, FIBRA Prologis has set its guidance with an FFO per CBFI ranging from US$0.1850 to US$0.1950 and anticipates an 8.5 percent increase in full-year distributions per CBFI compared to the 2023 guidance. The company forecasts year-end occupancy between 97.5 percent and 98.5 percent, with a same store cash NOI of 6.5 percent to 8.0 percent.
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