FIBRA Prologis. Credit Suisse LatAm Midsummer Conference New York. Prologis Park Los Altos, Guadalajara

Transcription

1 Credit Suisse LatAm Midsummer Conference New York Park Los Altos, Guadalajara

2 Forward-Looking Statements / Non Solicitation This presentation includes certain terms and non-ifrs financial measures that are not specifically defined herein. These terms and financial measures are defined and, in the case of the non-ifrs financial measures, reconciled to the most directly comparable IFRS measure, in our first quarter Earnings Release and Supplemental Information that is available on our website at and on the BMV s website at The statements in this release that are not historical facts are forward-looking statements. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which operates, management s beliefs and assumptions made by management. Such statements involve uncertainties that could significantly impact financial results. Words such as expects, anticipates, intends, plans, believes, seeks, estimates, variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future including statements relating to rent and occupancy growth, acquisition activity, development activity, disposition activity, general conditions in the geographic areas where we operate, our debt and financial position, are forwardlooking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, international, regional and local economic climates, (ii) changes in financial markets, interest rates and foreign currency exchange rates, (iii) increased or unanticipated competition for our properties, (iv) risks associated with acquisitions, dispositions and development of properties, (v) maintenance of real estate investment trust ( ) status and tax structuring, (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings, (vii) risks related to our investments (viii) environmental uncertainties, including risks of natural disasters, and (ix) those additional factors discussed in reports filed with the Comisión Nacional Bancaria y de Valores and the Mexican Stock Exchange by under the heading Risk Factors. undertakes no duty to update any forward-looking statements appearing in this release. Non-Solicitation - Any securities discussed herein or in the accompanying presentations, if any, have not been registered under the Securities Act of 1933 or the securities laws of any state and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and any applicable state securities laws. Any such announcement does not constitute an offer to sell or the solicitation of an offer to buy the securities discussed herein or in the presentations, if and as applicable. 2

3 Contents 04 Section 01 Why 06 Section 02 Long-Term Trends 11 Section 03 Overview 16 Section 04 Strong and Consistent Results 21 Section 05 Future Potential Growth 25 Section 06 Capital Structure Positioned for Growth 27 Section 07 Appendix Park Los Altos, Guadalajara

4 Section 01 Why Park El Salto, Guadalajara

5 Key Differentiators Focused Investment Strategy Investing in the six deepest and most dynamic markets Unique competitive advantage of having proprietary access to acquire development pipeline at market values Irreplaceable Portfolio High quality portfolio with 93% Class-A/A+ buildings Flexible buildings that serve logistics and manufacturing clients Portfolio average age of 12 years 80% of buildings located in enclosed parks ~70% developed by sponsor Strong Balance Sheet Capital structure positioned for growth Park Apodaca Building 3, Monterrey Disciplined balance sheet management Most revenues are USD denominated Experienced Team and Strong Corporate Governance Leadership team with 27-year track-record of excellence Transparent and aligned fee structure Market leading corporate governance Aligned world leading sponsor with 46% ownership Alamar 2, Park Alamar, Tijuana 5

6 Section 02 Long-Term Trends Otay Industrial Center, Tijuana

7 Drivers of Demand for Logistics Real Estate Growing Drivers Increasing Volume of Goods in Motion Consumption Growing population and an emerging consumer class fuel consumption Supply Chain Modernization Modern buildings increase efficiency for cost-conscious corporate customers E-commerce Logistics real estate sector is growing rapidly $ Global trade Commerce between countries is rising and supply chains are lengthening 7

8 Consumption: the Growth Leader of Economic Activity Consumption Leads GDP Across Most Cycles Average Annual Growth (%, inflation-adjusted) Salinas Era, Maquila Boom, Previous Cycle, Current Cycle, current GDP Sources: Oxfords Economics, Research Private Consumption Manufacturing Leading Indicators Manufacturing PMI, Mexico (index) J S N J M M J S N J M M J S N J M M Source: Markit Economics, Research Robust Retail Sales Growth Continues Consumer Indicators (%, y/y, inflation-adjusted, 3M MA) (index, 3M MA) 8% 6% 4% 2% 0% -2% -4% -6% -8% 10% 5% 0% -5% -10% Same-Store Retail Sales Sources: ANTAD, INEGI, Research Consumer Confidence Stable Growth Trajectory Across Most Sectors Mexico GDP by Economic Activity % y/y, inflation adjusted Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q GDP Oil & Mining Manufacturing Commerce Sources: INEGI, Research Consumption continues as the growth leader of economic activity in Mexico--driving demand for logistics real estate in the consumer-oriented Global Markets Strong labor market and rising real wages has propelled retail sales throughout this cycle More competitive peso driving non-auto demand along the border, a net positive for industrial real estate demand in those markets Recent weakness in manufacturing and GDP growth driven by certain sectors (e.g., auto, oil & gas) not closely aligned with logistics real estate 8

9 F 2017F 2018F 2019F Demand for E-fulfilment Facilities in Mexico is Rising E-commerce a Rapidly Growing Sector in Mexico (Mexico E-Commerce Retail Sales, USD, billions) Sources: emarketer, Research Note: excludes travel and event tickets INCUBATION PHASE <$250M USD SALES Sources: CBRE, NAI, Research SCALING PLATFORM $250-$500M USD SALES Mexico E-commerce Sector in Early Innings (%, Mexico E-Commerce Sales as a % of Total Retail Sales) Sources: emarketer, Research Note: excludes travel and event tickets The Largest E-Commerce Businesses in Mexico are Now Reaching Scale Operations either occur in the existing supply chain (for brickand-mortar retailers) or leverage 3PLs and/or exist within a handful of small locations. Mexico 2012 Retailers tend to consolidate their fulfilment operations into a single 500K SF to 1M SF facility Mexico TAKE-OFF >$500M USD SALES E-fulfilment operations require multiple major distribution centers, requiring multiple millions of square feet across several (or many) distribution centers Mexico ~2020 (F) Mexico Brazil U.S. E-commerce demand for Mexican logistics real estate poised to grow in the coming years, as: Barriers for e-trailers are diminishing Domestic customers (e.g., Liverpool) are reaching scale and their e-commerce businesses may merit dedicated and internally operated e-fulfilment facilities Notable market entries and business expansions of global e-tailers and e- commerce logistic services providers have the potential to rapidly grow their platforms in the coming years Scarcity of available modern distribution facilities and barriers-to-supply in Mexico City might require e-tailers to plan now for future space requirements 9

10 Healthy Real Estate Fundamentals Supports Growth Demand vs Supply (MSF) Mexico City Monterrey Juarez Tijuana Reynosa Guadalajara (3) BTS Development(1) Speculative Development Net Absoprtion (TTM) (2) Sources: CBRE, NAI, Research Operating Cycle Market Fundamentals (MSF) (%) (F) 2017 (F) Completions Net Absorption Market Vacancy Rate Sources: CBRE, Research Correcting Recovering Expanding Peaking (3) Guadalajara Monterrey Mexico City Tijuana Reynosa Juarez Global Markets Regional Markets - Mexico City had record net absorption of 6.5 MSF in the first half of 2016, higher than net absorption of 6.0 MSF for the full year Overall net absorption in 1H16 was double the pace of completions Vacancy rates fell to the lowest point of the cycle 5.6%, a 300 basis points decline from 2Q Positive supply and demand imbalance should continue in 2H2016, despite macroeconomic volatility All markets visibly in expansionary phase with low risk of oversupply The expansionary phase can last several years as demand accelerates and absorbs speculative construction 1. BTS is defined as build to suit 2. TTM is defined as trailing twelve months 3. Guadalajara have been lagging between market activity and available data 10

11 Section 03 Overview Jalisco 4, Guadalajara

12 High-Quality Portfolio Outperforming the Overall Market Occupancy by 200 bps (1) 96.4% occupancy 33.3 MSF operating portfolio Regional Markets (manufacturing-driven) Ciudad Juarez, Reynosa, Tijuana GLA Occupancy Market Occupancy 12.0MSF 96.1% 94.0% Global Markets (consumption-driven) Guadalajara, Mexico City, Monterrey GLA Occupancy Market Occupancy 21.3MSF 96.6% 94.7% GLA Tijuana Occupancy Market Occupancy 4.2MSF 100.0% 98.3% GLA Ciudad Juarez Occupancy Market Occupancy 3.4MSF 94.4% 92.6% Guadalajara Monterrey GLA Occupancy Market Occupancy 3.9MSF 95.5% 92.9% GLA Occupancy Market Occupancy 5.8MSF 95.8% 93.9% GLA Occupancy Market Occupancy 4.4MSF 93.5% 93.3% Reynosa Mexico City GLA Occupancy Market Occupancy 11.6MSF 97.4% 95.8% Data as of June 30, Overall market vacancy in 2Q 2016 was of 94.4% according to estimates from CBRE, NAI and Research 12

13 High-Quality, Diversified Customer Base Our Customers Reflect a Diverse Cross-Section of Industries Portfolio Composition by Industry (1) Balanced portfolio between consumption and manufacturing driven customers ~85% of our revenues from multinational companies Top 10 Customers Comprise only 18.7% of Net Effective Rent of Total +230 Customers General Retailers 30% IBM 3.5% Transport, Multi-Industry 3PL & Services 20% DHL LG 1.9% 3.0% Autoparts 13% Geodis 1.8% Consumer Goods 11% Uline 1.7% Ryder 1.6% Medical Devices 10% Johnson Controls 1.4% Electronics 7% Spring Industries 1.3% Paper & Packaging 5% GE 1.3% Celestica 1.2% Industrial & Other Products 4% 1. % of portfolio net effective rent as of June 30,

14 Business with High-Profile Customers Tres Rios Industrial Park: Location: Mexico City (northern CTT Corridor (1) ) Net Rentable Area: 2.1MSF Market Rents: US$ US$6.00/SF/Yr. TR 7 Average Age: ~5 years Unique Park Features: Infill location in a sub-market with land scarcity TR 8 Enclosed park provides unique security feature to our customers Recently developed logistic park that complies with global industry standards Location and product quality provide our customers opportunity to improve operating efficiencies 1. CTT corridor is defined as Cuautitlán, Tepotzotlán and Tultitlán-Izcalli corridor located in the northern part of Greater Mexico City area by the NAFTA highway 14

15 Attractive Vehicle to Play a Stronger U.S. Dollar Stable U.S. Dollar Revenues PL and Customers Currency Exposure 20% 19% % of PL USD Revenue by Market 79% 92% 100% 95% 100% % Customers with USD Leases with USD Revenues 100% 97% 93% 87% 88% Looking forward: 80% of rent revenues are denominated in USD USD MXN 80% 81% 62% 50% Some customers have expressed interest in shifting to peso leases, primarily in Mexico City PL Operating Portfolio- Lease Currency Rent Change on Rollover in USD Terms vs Rent Concessions (Trailing Twelve Months) (Rent Change) 16% 14% 12% 10% 8% Revenue from Customers with USD Leases 13.9% 11.4% 8.8% (Free Rent Months) All new peso leases have been signed with rent increases of at least the peso devaluation, protecting revenues in dollar terms As peso stabilizes, we expect this trend to reverse due to rise in peso lease rates, peso inflation and higher cost of capital 6% Q2 Q3 Q4 Q Q Rent Change: Free Rent (months): Entire Portfolio Entire Portfolio Mexico City Mexico City Mexico City: Peso Leases Mexico City: Peso Leases 0 Data as of June 30,

16 Section 04 Strong and Consistent Results Otay Industrial Center 8, Tijuana

17 Operations Deliver Strong Results Period End Occupancy Operating Portfolio 96.3% 96.6% 96.3% 96.5% 96.4% 96.4% 96.0% 95.3% Cash Same Store NOI Trailing twelve months Occupancy gains 94.3% Rent increases including impact of currency fluctuation Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q As occupancy stabilizes, future growth in SSNOI is driven by rent increases in the operating portfolio 5.7% 4.5% 4.8% 3.9% Rent Change on Rollover Trailing twelve months 8.9% 7.4% 9.4% 8.9% 9.3% 11.2% 10.5% 11.0% 11.4% 3.4% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Customer Retention Trailing twelve months 93.8% 91.4% 92.0% 90.7% 90.9% 92.3% 93.8% 94.9% 92.5% Q2 Q3 Q4 Q Q Data as of June 30, 2016 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Quarterly Results 17

18 Sustainable and Consistent Cash Flow Growth in U.S. Dollars Adjusted Funds from Operations (AFFO) (2) CAGR (1) = 22.6% USD cents Per CBFI FFO Growth (2) CAGR (1) = 2.1% USD cents Per CBFI Q Q Q1 Q2 Q3 Q4 Distribution Growth and Yield: PL vs Market (3) PL CAGR (1) = 22.9% (Dist. Yield %) Q Q (USD per CBFI) % % % Q Q Q1 Q2 Q3 Q4 Q Q % Q Q Q1 Q2 Q3 Q4 Q Q Dist. Yield Market Dist/CBFI Market Dist. Yield PL Dist/CBFI PL Data as of June 30, CAGR calculated for the period starting in Q3 2014, which is the first full quarter after our initial public offering (IPO) on June 4, FFO and AFFO exclude realized loss from the reimbursement of VAT paid in connection with the acquisition of the initial portfolio 3. Market distribution is the weighted average distribution between FUNO, TERRA and MQ converting pesos to USD using the exchange rate from the day of the distribution payment. Distribution yield is calculated using the CBFI price as of the end of the quarter 18

19 Portfolio Value Growth Provides Quality Returns to Investors 10% POTENTIAL CAGR SINCE IPO (1) US$2.05B US$2.17B (2) External (3) Portfolio GLA Growth Growth = 12% (MSF) External (3) US$1.70B US$1.87B External (3) Internal (3) Internal (3) IPO Q Q2 Q4 Q Global Markets Regional Markets Portfolio Valuation Cap Rates 8.3% 7.9% 7.6% 7.5% 7.1% 6.9% IPO Q Q Q1 Q2 Q3 Q4 Q Q Global Markets Regional Markets Total Portfolio (1) IPO (E) Data as of June 30, Initial public offering (IPO) was on June 4, capital deployment estimate assumes midpoint acquisition guidance ranges of US$100M to US$150M 3. Internal growth is driven by fundamentals such as rent increases, occupancy and expense management including Cap-Ex. External growth is driven by capital deployment activities such as acquisitions, development and dispositions 19

20 High-Quality Acquisitions Consistent with our Investment Strategy Los Altos 15 Los Altos Park, Guadalajara GLA 232,000 SF Acquired 3 high quality buildings for a total of US$51.7 million (1) (750,000SF) from sponsor in Mexico City, Guadalajara and Ciudad Juarez at market price The acquisitions are consistent with our investment strategy and complements our portfolio Buildings were recently developed by sponsor and were 97.8% occupied by high quality customers Stabilized Acquisition Cap Rate vs Seller Cap Rate +0.4% +0.2% 7.9% 7.3% Stabilized Cap Rate (2) 5% Vacancy PL Closing Cost Pre-Tax Seller Cap Rate (3) (2) Data as of June 30, Acquisition cost includes closing costs of US$1.2 million mainly related to transfer tax and notary fees. 2. Stabilized Cap Rate and Pre-Tax Seller Cap Rate represent the weighted average cap rates for the three acquired buildings 3. Acquisition closing costs are mainly comprised of transfer tax, notary and legal fees, due diligence cost and broker fees. does not incur broker fees for the acquisitions since the assets were acquired from sponsor. Broker fees in a third party transactions range from 5% to 6% of purchase price. 20

21 Section 05 Future Growth Potential Ladero, Intermodal Facility, Mexico City

22 Internal Growth: Earnings Potential from Harvesting the Gap between In-place Rents and Market Rents Lease Expiry Profile by Annualized Net Effective Rent (NER) 21% 23% Market rents have grown faster than current lease rollovers 10% 15% 16% 15% In place rents are ~6% below market and ~13% below prior cycle peak, setting the stage for growth as leases roll to market In Place Rent Growth (1) Growth= 4.7% (US$/SF/Yr) $4.92 In Place to Market Rents market rents In Place Rents vs Market Rents (2) (US$/SF/Yr) $7 Overall in-place rents (1) in the portfolio have grown 4.7% since IPO $4.70 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q % 6.3% 6.2% 5.4% 6.6% 5.8% 7.9% 9.3% 8.6% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q In Place Rents Spread to Market $6 $5 $4 $3 $2 In Place Avg Mkt Rent Mkt Rents Prev. Cycle ( ) Majority of leases contain contractual annual rent increases of ~2.5% Data as of June 30, 2016 Source: Research 1. In place rents are net effective rents (NER) 2. In place rents is the average net effective rent (NER) for 2Q 2016 and market rents are net effective market rental rates for modern-grade product 22

23 External Growth: Future Growth Acquisitions External Growth via Development Pipeline (MSF) PL Portfolio as of June 30, 2016 Development Pipeline and PL Land Bank Unique Competitive Advantage by having: 35% growth potential in the next 3 to 4 years Proprietary access to development pipeline at market values 45.0 Exclusive right to third-party acquisitions sourced by and PL Land Bank and Expansion Land based on buildable SF (MSF) development pipeline will be offered to upon stabilization. Mexico City Guadalajara Monterrey Reynosa Juarez has a 20-year proven development track record Data as of June 30,

24 Potential Future Investments Park Grande Location: Mexico City Land Size: acres, 9.3 MSF Potential Build Out: 3.4 MSF Currently Under Construction: 0.6 MSF Unique Competitive Advantage: State of the art logistics park focused on e- commerce customers and consolidation of 3PL customers Possibility to acquire high quality assets in the land constrained premier Class-A building corridor of Mexico City Current Land Site Proposed Master Plan 24

25 Section 06 Capital Structure Positioned For Growth Tres Rios 7, Tres Rios Park, Mexico City

26 Decreased Avg. Cost of Debt (cash interest rate) 5.6% Q2 5.7% Q3 Strong Capital Structure Positioned for Growth Successfully Executed 2016 Liability Management Program 4.8% 4.8% 5.0% Q4 Q Q Debt Maturity Schedule (Debt (2) = US$672M) (US$ in millions) Extended Avg. Maturity (years) Q2 Q3 3.0 Q4 4.3 Q Q More Flexible Balance Sheet (% of total assets pool) 100% 75% 50% 25% 0% Q2 Q3 Unencumbered Q4 Q Encumbered Q Successful execution of the 2016 liability management program: o Resolved all 2016 maturities o Lowered the avg. cost of debt by 60 bps from a year ago o Extended the avg. term by 2 years from a year ago o Improved balance sheet flexibility with growth of the unencumbered asset pool o Outstanding mortgage and unsecured term loan have fixed interest rate $217 $255 Unsecured LOC Unsecured Debt Secured Debt Balance Sheet positioned to fund future acquisitions: $72 $107 o Loan-to-value: 30.7% o Liquidity: US$498M (1) $1 $20 o Fixed coverage: 4.20x Cash Interest Rate: % 7.2% 5.0% 2.7% 3.5% % Data as of June 30, Liquidity as of June 30,2016 is comprised of US$18M of cash, US$380M from the undrawn unsecured credit facility, including US$100M accordion feature of the unsecured line of credit 2. All outstanding debt is USD denominated o Debt to adj. EBITDA: 4.80x Potential earnings upside in refinancing 2017 debt with a more efficient product 26

27 Section 07 Appendix Los Altos 4, Park Los Altos, Guadalajara

28 Administration Fees Operating Fees Fee Structure: Transparent and Aligned Fee Type Calculation Payment Frequency Property Management 3% x collected revenues Monthly Leasing Commission Development Fee New leases: 5% x lease value for >5 years Renewal: 2.5% x lease value for >5 years Only when no broker is involved 4% x property and tenant improvements and construction cost ½ at closing ½ at occupancy Project completion Asset Management 0.75% annual appraised asset value Quarterly Hurdle rate 9% High watermark Yes Incentive Fee 10% Currency 100% in CBFIs Annually at IPO anniversary Lock up 6 months 28

29 Balance Sheet Jun 30, 2016 Dec 31, Dec 31, 2014 IPO (US$ in millions) Assets Cash Trade receivables Other assets (1) Investment properties 2, , , ,696.4 Total Assets 2, , , ,906.6 Liabilities Trade payables Due to affiliates Debt (2) Security deposits Hedging instruments Total Liabilities Equity CBFI holders capital 1, , , ,276.9 Other equity accounts Total Equity 1, , , ,286.6 Total Liabilities & Equity 2, , , ,906.6 Data as of June 30, Other assets includes prepaid expenses and value added tax and other receivables 2. Debt is at market and includes current and long term portion of the debt 29

30 Quarterly Income Statement (US$ in millions) Jun 30, 2016 Mar 31, 2016 Dec 31, Sep 30, Jun 30, Revenues: Lease rental income Rental recoveries Other property income Cost and expenses: Property operating expenses (1) Property management fees Real estate taxes Non-recoverable operating Net Operating Income Other expense (income): Revaluation of investment properties (42.7) (2.3) (10.5) Gain on disposition of inv. Prop. (0.3) Asset management fees Professional fees Interest expense Other non-cash financing costs (2) (1.5) (1.7) (2.7) (2.8) (1.4) Early extinguishment of debt (0.2) - - Interest income on VAT collection (3.9) Realized exchange fluctuation Unrealized exchange fluctuation (23.0) Other expense (32.0) 8.7 (2.0) Net Income Data as of June 30, Property operating expenses include operating and maintenance expenses and utility expenses 2. Other non-cash financing costs are the net of deferred financing cost and amortization of debt premium 30

31 Quarterly FFO and AFFO (US$ in millions) Reconciliation of net income to FFO Jun 30, 2016 Mar 31, 2016 Dec 31, Sep 30, Jun 30, Net income Revaluation of investment properties (42.7) (2.3) (10.5) Gain on dispo of inv. properties (0.3) Early extinguishment of debt (0.2) - - Unrealized exchange fluctuation (23.0) Realized loss from VAT collection FFO, excluding realized exchange loss from VAT collection Adjustments to arrive to AFFO Straight-line rents (1.0) (1.4) (1.5) (0.9) (1.6) Property improvements (1.5) (1.9) (1.3) (0.5) (2.6) Turnover costs (1) (2.8) (3.0) (3.5) (2.7) (4.0) Other non-cash financing costs (2) (1.5) (1.7) (2.7) (2.8) (1.4) AFFO, excluding realized exchange loss from VAT collection Data as of June 30, Turnover costs includes leasing commissions and tenant improvements 2. Other non-cash financing costs are the net of deferred financing cost and amortization of debt premium 31

32 Management Team Luis Gutiérrez Chief Executive Officer Mr. Gutierrez has been in the real estate sector since In addition to CEO of Property Mexico, Mr. Gutierrez is President for Latin America for where he is responsible for all Brazil and Mexico related activities including operations, investments, acquisitions and industrial property development. Mr. Gutierrez was co-founder of Fondo Opcion (formerly G. Accion), the first public real estate company in Mexico, where he acted as Chief Executive Officer. He is currently a member of the Executive Committee of Consejo de Empresas Globales and is also a member of the Board of Directors of Financcess and Central de Estacionamientos. He also served as President of the AMPIP (The Mexican Association of Private Industrial Parks) from 2005 to He is currently the President of the Technical Committee of. Mr. Gutierrez has a Civil Engineering degree from Universidad Iberoamericana and an MBA from IPADE Business School. Hector Ibarzabal Chief Operating Officer Mr. Ibarzabal has been in the real estate sector since 1988, including office, industrial, retail, and residential sectors. Mr. Ibarzabal s experience includes real estate structuring, financing and fund raising. As Country Manager and Head of Operations in Mexico for, Mr. Ibarzabal has substantial experience managing activities in Mexico, including development, operations and capital deployment. Previous to, Mr. Ibarzabal was co-founder of G. Accion, a publicly traded real estate company, where he acted as CFO, COO and President. He is currently a member of the technical committee of Mexico Fondo Logistico, another Mexican industrial real estate investment vehicle managed by an affiliate of, a member of the technical committee of Shop and a member of the board of directors of Actinver Fondos and SARE. Mr. Ibarzabal has a Civil Engineering degree from Universidad Iberoamericana and an MBA from IPADE Business School. Jorge Girault Chief Financial Officer Mr. Girault has been in the real estate sector since 1994, including office, industrial, retail and residential sectors. His experience includes real estate structuring, financing and fund raising. Mr. Girault has significant experience managing equity and debt raising activities, and is an officer of Mexico Manager, S. de R.L. de C.V., manager of Mexico Fondo Logistico, another Mexican industrial real estate investment vehicle managed by an affiliate of. Mr. Girault started his professional career at G. Accion, where he acted as Project Manager, Investor Relations VP and CFO. He is currently a member of the technical committee of Mexico Fondo Logistico and is a part time professor at Business School of Universidad Iberoamericana. Mr. Girault has an Industrial Engineering degree from Universidad Panamericana and an MBA from Universidad Iberoamericana. 32

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