Deutsche Bank Mexico Reit

Good morning, and welcome to Fieber & McQuarrie's third quarter 2025 earnings call and webcast. My name is Rob, and I'll be your operator for this call. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session. If at any time you require operator assistance, please press star followed by zero, and an operator will be happy to assist you. I would now like to turn the conference call over to Nikki Sachs. Please go ahead.

Thank you, and good morning, everyone. Thank you for joining Fieber-McQuarrie's third quarter 2025 earnings conference call and webcast. Today's call will be led by Simon Hanna, our chief executive officer, and Andrew McDonald-Hughes, our CFO. Before I turn the call over to Simon, I'd like to remind everyone that this presentation is proprietary and all rights are reserved. The presentation has been prepared solely for informational purposes and is not a solicitation or an offer to buy or sell any securities. Forward-looking statements in this presentation are subject to a number of risks and uncertainties. Our actual results, performance, prospects, or opportunities could differ materially from those expressed in or implied by the forward-looking statement. These forward-looking statements are made as of the date of this presentation. We undertake no obligation to publicly update or revise any forward-looking statements after the completion of this presentation, whether as a result of new information, future events, or otherwise, except as required by law. Additionally, on this conference call, we may refer to certain non-IFRS measures, as well as to U.S. dollars, which are U.S. dollar equivalent amounts, unless otherwise specified. As usual, we've prepared supplementary materials that we may reference during the call. If you've not already done so, I would encourage you to visit our website at febermcquarrie.com and download these materials. A link to the materials can be found under the Investors, Events, and Presentations tab. And with that, it is my pleasure to hand the call over to FIBA Macquarie's Chief Executive Officer, Simon Hanna. Simon?

Thank you, Nikki, and good morning, everyone. I'm excited to share that we've delivered another solid quarter of financial and operating performance, with record-breaking results across key metrics. At the same time, we executed on both strategic and opportunistic initiatives that create value for our certificate holders and continue to position us for sustainable growth. The third quarter showcased the strength of our business model, starting at the top line. For the quarter, we achieved record consolidated revenues, up 8.4% in underlying US dollar terms over the prior year. This momentum translated through to our quarterly US dollar AFFO, which increased an impressive 6.6% annually. Best of all, our quarterly distribution reflects a significant 17% increase from last year, all whilst maintaining a comfortable and prudent payout ratio. Turning to our industrial portfolio, we continue to see strong performance amidst a subdued market backdrop, with average rental rates increasing 6.8% year over year. Notably, we achieved another quarter of double-digit renewal spreads, 17% on negotiated leases, with high quarterly retention of almost 90%. Our full-year 2025 performance continues to shape up rather well, perhaps best demonstrated by the 6.1% increase in US dollar same-store NOI year-to-date. So in summary, we are very satisfied with sustained momentum enjoyed from our industrial portfolio through to today, and we expect that momentum to carry through to the fourth quarter, providing for a strong finish to the year. Moving to our capital allocation and asset recycling initiatives, we have an active quarter closing on a number of transactions, I'm excited with the continued growth of our Mexico City footprint with the acquisition of a prime 250,000 square foot logistics facility. We acquired the property through a sale and lease back for $35 million, leased to a leading global consumer company under a three-year US dollar denominated contract. It not only provides 2025 NOI and AFO contributions, but also positions us to capture embedded real rental rate growth. This acquisition exemplifies our thoughtful approach to capital allocation. In this case, we secured a scarce, well-located infill asset that enhances our portfolio quality while providing visible earnings and NAV accretion. We're optimistic about repeating this type of success in other deal opportunities under our review, alongside pursuing additional strategic land investments in our pipeline. We also continue to selectively pursue asset recycling initiatives. And during the third quarter, we sold a vacant industrial property in Chihuahua City for $14 million, representing a 30% premium to book value. This transaction demonstrates our commitment to active portfolio management, allowing us to accretively recycle capital into attractive opportunities like the Mexico City acquisition I just mentioned. Turning to our retail portfolio, we also delivered strong results and achieved a post-pandemic record occupancy of 93.6%. Rising occupancy and rental rates contributed to annual NOI growth of 4.1%, essentially reaching record levels of operating cash flow. We maintain a cautiously optimistic outlook on the operating performance of our retail portfolio and expect median term growth trends to continue. Looking at the broader market environments, while we acknowledge the ongoing uncertainty around trade policy, we also remain confident in Mexico's strategic position within North American supply chains. The long-term fundamentals that have driven Mexico's manufacturing growth over past decades remain firmly intact, including high-quality labour, proximity to major US markets and continued trade advantages. Notwithstanding the evolving geopolitical landscape, Our high-quality portfolio, internalised platform and strategic market positioning enables us to continue to deliver strong results and capitalise on growth opportunities. It is also worth mentioning our unique vertically integrated platform gives us, amongst other benefits, privileged access to market intelligence and allows us to respond swiftly to changing conditions. This positioning, combined with our ability to capture embedded rental growth allows us to continue delivering value to certificate holders while building long-term portfolio resilience. Before turning the call over to Andrew, I want to highlight our ongoing commitment to sustainability. We are proud of achieving three green stars in our 2025 Grids assessment, including a score of 94 points for the Development Benchmark, exceeding our peers on a regional and global basis. We're also taking this opportunity to publish our annual ESG report that is now available on our website, which provides a comprehensive overview of our sustainability initiatives and performance. Andrew, over to you.