Key points for investors:
- Leadership change: CEO Hector Ibarzábal announced this is his final earnings call and will step down at the end of June. CFO Jorge Girault will assume the CEO role and Alexandra Violante will become CFO. Management emphasizes continuity and internal promotions.
- Transaction update: FIBRA Prologis launched a tender offer for 100% of FIBRA Macquarie (opened April 7, closing May 12) and has required approvals; no further commentary on progress per regulation.
- Operations and leasing: Net absorption was 4.3 million sq ft in Q1 (below 2025 averages) and leasing activity was 3.6 million sq ft. Period-end and average occupancy remained strong at ~97%. Vacancy across six markets rose 70 bps to 6.8%, driven by move-outs in consumption markets. Deliveries totaled 9 million sq ft (24% below 2025 average). Border markets softened (e.g., Tijuana), while consumption markets (Mexico City, etc.) continue to show modest rent growth and remain the focus.
- Financials and guidance: FFO was $99.6 million ($0.06 per certificate), roughly flat year-over-year; AFFO was ~ $80 million and in line with expectations. Same-store cash and GAAP NOI grew ~9.9% and 10.7%, respectively. Net effective rent change for the quarter/12 months was close to 60%, and the portfolio mark-to-market stands above ~30–33%. Guidance remains unchanged.
- Balance sheet and reporting: Management stresses a conservative financial profile, healthy LTV, extended maturities and use of financial flexibility to create investor value. Starting this year, reporting will be presented exclusively in U.S. dollars (functional currency).
- Strategy and portfolio management: Focus remains on six key industrial markets in Mexico (three border, three consumption). Management will continue to exit non-core markets but is harvesting value (notably large rent uplifts on the Terrafina portfolio) and will sell to the right buyer/timing. Prologis sponsorship (customer relationships, market intelligence, clean energy, low-cost capital) is highlighted as a competitive advantage.
- Risks and outlook: Near-term uncertainty from USMCA/tariff-related impacts and regional geopolitical tensions has caused some softness, particularly in border markets, but management expects these to be transient and remains constructive on medium- to long-term fundamentals. Development pipeline has declined meaningfully since 2023, supporting stabilization in vacancy going forward.
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