Q2 2024 Prologis Property Mexico SA de CV Earnings Call Transcript
Key Points
- PrologisProperty Mexico SA de CV (FBBPF) reported a strong second quarter with market demand reaching record-high levels of 11 million square feet, a 10% year-over-year growth.
- The company achieved a new record in rent change on rollover with a 58% increase, demonstrating strong leasing performance.
- Occupancy in the portfolio remains robust at over 98%, indicating high demand and efficient space utilization.
- The company announced a strategic acquisition in Reynosa, expanding its footprint and enhancing its portfolio value.
- PrologisProperty Mexico SA de CV (FBBPF) maintains a strong balance sheet with a total capacity of up to $1.8 billion, providing financial flexibility for future growth.
- Net absorption in key markets was 5.5 million square feet, which, although strong, was down compared to previous exceptional quarters.
- Vacancy rates increased by 100 basis points to 2.7%, which, while still healthy, indicates a slight rise in available space.
- The Ciudad Juárez market experienced a significant hike in vacancy due to a 3PL customer not consolidating as planned.
- There is a potential for pressure on margins due to increased property values and fees, which may take time for revenues to fully reflect.
- The political climate, including upcoming US elections, has introduced some caution among new customers, potentially slowing decision-making processes.
Hello, everyone, and welcome to the FIBRA Prologis second-quarter earnings conference call. (Operator Instructions) I'd now like to hand over the call to Alexandra Violante, Head of IR. Please go ahead.
Thank you, Eli, and good morning, everyone. Welcome to our second-quarter 2024 earnings conference call. Before we begin our prepared remarks, I would like to remind everyone that all the information presented in this conference call is proprietary and all rights are reserved. The information has been prepared only for information purposes and is not a solicitation of an offer to buy or sell any securities.
Forward-looking statements during this call speak only as of the date of this call. Our actual results, performance, prospects, or opportunities may differ materially from those expressed in or implied by the forward-looking statements.
Additionally, during this call, we may refer to certain non-accounting financial measures. The company does not assume any obligations to update or
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