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spk14: Good morning. My name is David, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Fibra Prologis second quarter earnings call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star 1 on your telephone keypad. Thank you, Alexandra Violante, Head of Investor Relations. You may begin your conference.
spk01: Thank you, David, and good morning, everyone. Welcome to our second quarter 2022 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 revise any of these forward-looking statements in the future, whether as a result of new information, future events, or otherwise, except as required by law. As is our practice, we have prepared supplementary materials that we may reference during the call as well. If you have not already done so, I will encourage you to visit our website at fibraprologist.com and download these materials. Today, we will hear from Luis Gutierrez, our CEO, who will discuss our strategy and market conditions, and from Jorge Giro, our Senior Vice President of Finance, who will review results and guidance. Also joining us today is Hector Ibarzabal, our Managing Director. With that, it is my pleasure to hand the call over to Luis.
spk09: Thank you, Ale, and good morning, everyone. The logistic real estate sector in Mexico is having one of its strongest quarters, reflected in our results, which have surpassed our expectations. For this reason, we are adjusting our occupancy and same-store guidance. We are confident of our business resiliency despite the current global uncertainty and inflation. Let me provide some highlights. We had a high occupancy of almost 98%. This is 140 basis points above last year. Our FFO continues to grow mainly due to strong rental growth and the addition of last year's acquisitions. For the last 12 months, we have leased 6.5 million square feet, and our rental change on rollover is 13%, which is reflected in the company's same store NOI. Additionally, on the ESG front, we recently published our ESG report in which we have certain goals and accomplishments, and we have announced our alignment with Prologis commitment to become net zero scope three by 2040 and Jorge will provide more color on this. For the first six months, demand increased almost 20% year over year, and in our markets mainly for manufacturing expansion due to nearshoring in border markets and demand from logistic operators to serve e-commerce adoption in consumer markets has kept a positive trend. Quarterly demand was more than 8 million square feet in our six markets, an increase of 23% year-over-year, outpacing supply by more than 2 million square feet, resulting in market vacancy of 1.8%. Demand continues to surpass supply. Barriers to supply like low utility availability, land scarcity, and increased raw materials are delaying new deliveries to the market. This will benefit the overall occupancy, facilitating rental growth. Market net effective rents have increased around 7% in the first half of 2022. And we expect them to continue with a positive pace towards year end due to the strong demand and limited supply. Let me spend a few moments on what we're seeing on the ground. On the manufacturing side, has been one of our key drivers of the Mexican economy, During the quarter, non-auto manufacturing exports grew 25%. Manufacturing is now two-thirds of the overall industrial demand. Near-shoring and U.S. labor shortages have been the main drivers. We're seeing a strong pipeline of customers willing to expand their operations in Mexico. It is in different sectors from electronics, medical devices, auto, consumer products, et cetera. Near-shoring has been accelerating, and it keeps the same pace. It will double the demand for space from 2021. The main markets have been Monterrey, Tijuana, Juarez, and Reynosa. Our sponsor has a pipeline of 5.1 million square feet of built-to-suits. And of course, the economic recession conversation is present in some of these transactions, but still with a positive sentiment. On the logistics front, retail consumption has had a positive semester, and e-commerce adoption is increasing into a low double digit due to the marketplace expansion and omnichannel activity. For the remainder of the year, consumer spending is expected to have a positive real growth, and e-commerce penetration will be around 11% from a 4.8% pre-COVID asset reference. We're also seeing movement in our leasing of our last mile facilities. This kind of assets are starting to gain traction. Mexico City, which is our most important market, land continues to be very scarce, forcing development to the north of the toll booth. As a result, we remain very bullish on the performance of the portfolio as rents rise. Logistic real estate continues to be the preferred asset class. In summary, we know there is a potential softening of demand. Our best-in-class portfolio has been resilient and has been built to outperform in any part of the cycle. In spite of a higher interest rate environment, values increased 2% in the second quarter, and we expect valuations to keep stable for the remainder of the year as we see a good balance between cap rates and rental growth. In operations, rents continue to grow and our lease market has increased to 15%. This will be a major driver of earnings going forward. On the capital front, we're active and engaged on consolidating our acquisitions plan before year-end. Opportunities are already identified and closing is presenting good progress. We will continue to focus in our Prologis markets with special attention to real estate quality. On top of third-party deals, Prologis pipeline keeps growing with build-suit projects and with positive traction on pre-leasing and speculative investments. Our strong balance sheet, which provides us a major competitive advantage and flexibility to play offense. Finally, we remain committed to creating value for certificate holders. With that, I will pass the word over to Jorge.
spk05: Thank you, Luis. Good morning, and thank you for joining us. Starting with our financial results, as Luis mentioned, we had a strong quarter, above our expectations. FFO reached $39 million, or 4.5 cents per certificate, representing a 9% increase if compared to the second quarter last year, one of our highest increases on a relative basis and in line with our NOI growth. A FFO was $29 million for the quarter, basically flat when compared to last year and in line with expectations. Moving to operating metrics. Living activity reached 2 million square feet, the highest in the last five quarters, with period and occupancy reaching 98%. Net effective rent change and rollover increased almost 20% in dollar terms, a record high since IPO, and for the last 12 months, it has been above 13%. In terms of same-store cash NOI, we had a positive 5.1%, and for GAAP, 4.3%. These results reflect Fibra rent growth and annual bumps for the quarter. Given the above results, we are adjusting our 2022 guidance as follows. We are increasing our midpoint of same-store cash NOI by 100 basis points to be between 4.5% and 6.5%. We are increasing our midpoint of the year end occupancy also by 100 basis points to be between 97% and 98%. I would like to touch on FIBRA's balance sheet and explain why we see this as an strength, in particular, in an environment of interest rate hikes. Our loan-to-buy is 29%. which gives us enough space to reach our 2022 acquisition guidance as we have $217 million of liquidity under our line of credit, including our accordion feature. Our next debt maturity is not until 2026, and our weighted average maturity is over seven years. Our weighted average interest cost is 3.8%, and we have 80% of our outstanding debt fixed, with a floating piece being our line of credit. In short, we have a flexible balance sheet. Moving to ESG. First, let me mention that Fibra Prologis is again part of the ESG BNB Index as well as the Dow Jones Sustainability Index. As mentioned by Luis and in line with our sponsor, yesterday we published our 2021 ESG Annual Report and announced our alignment with Prologis commitment to achieve net zero by 2040. 10 years earlier than the Paris Agreement, which consists in net zero emissions in scope one and two, which are related to our operations by 2030, and scope three by 2040 across our value chain, mainly focused on client operations in our buildings. We're extremely pleased to have once again raised the bar and hold ourselves accountable to real and reportable progress for our investors, our customers, and our planet. What specific steps are we taking? We are looking to use more clean energy in our portfolio. As you know, we are currently working on our solar pilot program in some of our assets and in line with local regulations. Not stopping there, We are also collecting more data regarding water and waste in order to be able to structure and communicate our goals in the future. Regarding social, we are committed to improve the way of life of the people in our market through our community workforce initiative program. In terms of governance, we are not stopping on having a diverse majority independent and qualified technical committee. We are also followed We also follow ethic training and FCPA rules as managers. We want to be clear on our ESG goals and commitments. It is not checking the box. It's something that we take seriously. It's part of our DNA and our way of planting a seed for a better world. Before I finish, I would like to thank the analysts from the sales side that participated with the Mexican Association of Fibras Amefibra, on helping this sector to improve its financial disclosure by recommending five specific items. At Fibra Prologis, we made our best effort to take these recommendations and making the corresponding enhancements to our supplemental financial information. As you have seen, the industrial sector in Mexico remains very strong, in particular in our specific markets. benefited by near-shoring, e-commerce, and other factors. This said, we recognize the local and global challenges in the current environment. This is why we have built a company that we believe is resilient to different cycles, as demonstrated by our results, and which we believe is a great investment from a risk-return perspective in today's world. With that, I will turn it to the operator for Q&A. Thank you.
spk14: Thank you. At this time, I'd like to remind everyone, in order to ask a question, press star then the number one on your telephone keypad. We ask that you please limit yourself to one question to allow everyone an opportunity. If you'd like to ask another question, you may reprompt at any time. We'll pause for just a moment to compile the Q&A roster. And we'll take our first question from Gordon Lee with BTG Pactual. Your line is now open.
spk13: Thank you. Hi, good morning. Thank you very much for the call and congratulations on the results. A couple of questions on rents and specifically on the leasing spreads, on the increases on rollovers. First, I was wondering if you could remind me whether that calculation at 20% that you saw in the first quarter is a simple average or is that a square foot weighted? And then the second one is, as you are renewing these contracts or bringing in new tenants, are you maintaining the fixed absolute annual escalators that currently are part of your rental structures, or are you starting to introduce CPI-linked escalators as well?
spk05: Thank you. Thank you, Gordon. This is Jorge. I will take the first part of the question. And by the way, this is one of the enhancements we did in our supplemental financial information. It's under page 12 of the supplemental financial. You can see that we made 22 operations or leases during the year. And it's a weighted average that we get to 20% for those 2 million square feet that we do in the quarter. So in other words, We lift 2 million square feet during the quarter. Those 2 million square feet had a 20% weighted average increase. And for example, Monterrey had a 46% increase, and Guadalajara had a 12% increase. So I'm aware the average is 19.6 to be exact. So with that, I'll pass it to Hector for the second part.
spk15: Thank you, Cortez. Good morning, everyone. escalation in contracts. As of today, we have one-third of our contracts which are CPI-based. On the other ones, we have a fixed number that goes between 2.5 to 3.5, being the most of them near 2.5% increase. Out of the new contracts and since inflation started, we are having probably 98% of our contracts CPI increase, no matter if they are peso or dollars. 100% of our Peso contracts are CPI increased.
spk14: Okay, we'll go to our next question. Pablo Montevias with Barclays. Your line is now open.
spk06: Hi, Tim. Thanks for taking my question. This is kind of a different question, but I was just curious to know What is your take on the impact of water scarcity in Monterrey and in Nuevo León? And do you think that this could limit the region's ability to attract new tenants? And also for existing tenants, what have you heard in terms of how this is affecting operations? Thank you.
spk15: Thank you, Pablo. And we all know that, unfortunately, Nuevo León is facing and historical crisis regarding water. I need to say that as of today, none of our parks, none of our customers have been affected by this situation. We have supplied from a robust wealth of water that has been provided water accordingly. We are ready because we might be requested to rationalize water, and the first step that we need to take is on common areas, on the green areas. We're already working in some of our parks to provide with water treatment park, which this is aligned to our ESG initiatives. In a few words, our ESG approach take us to be very conscious of this situation, and we're trying to be close to our customers helping them on being more efficient on the water use. Having said this, Pablo, we see the water situation as a situation that is going to be affecting not only Monterrey, but might be affecting some other markets. So we are aware of this and we are anticipating with infrastructure investments and with programs with our customers in order to be more rational in this regard.
spk14: Next, we'll go to Francisco Suarez with Scotia Bank. Your line is now open.
spk16: Thank you for the call, Alan and Jens. Good morning. Congrats for the results. The questions that I have is that I noticed that your parent company muckballed the overall guidance for completion staking this year, but actually they increased their overall completion guidance on 2023. So perhaps this is actually a follow-up on Pablo's question before. In addition to electricity constraints, any other reason that you may see of why the overall completion guidance that PLD had in Mexico for this year was cut?
spk15: Francisco, thank you for your question. It has been a little delayed in some process. We are not being affected in the projects that Prologis is currently developing by this electricity situation. The electricity situation is more linked to new land acquisitions that Prologis is making. And as we have referred in previous calls, this is requesting, in some cases, two years or even more time working with CFE trying to get the right infrastructure in place. We are anticipating, as we like to do in all the aspects of our business, working on the electricity front on new lands, but the electricity is not affecting our current operations and it is not affecting our current development pipeline.
spk14: Next, we'll go to Sheila McGrath with Evercore. Your line is now open.
spk00: Yes, good morning. You described demand at a historic level. Can you drill down by market on where demand is strongest, which industries are driving this demand, and which countries are the biggest sources of demand?
spk15: Thank you, Sheila, for your question. important activity in all of our border markets uh practically in juarez uh we have 100 percent of occupancy if we take out the assets that are not strictly into your bodies if you want to work 100 percent in uh reynolds 99.8 percent so basically uh the near sharing activity and the increase on expansions on our current customers is taking this demand as high as we have seen it. Monterrey is a very strong market. Part of this manufacturing activity relies on Monterrey as companies want to establish in bigger cities. And Monterrey presented 3.4 million square feet of net absorption. And Monterrey in this quarter presented over 5 million square feet of built-to-suit projects. The main industries that we see participating are electronics, are auto components, and medical. We see that this demand will prevail on the spite of the macro conditions that we're facing. So we're trying to anticipate and be prepared to supply with the right spaces the customers that are requesting these groups.
spk09: Sheila, I would add that, I mean, if you see demand from 2020, there was about 16 million square feet overall in our six markets. We are expecting 2022 to be at least double that. And of course, 2021 was about double that. So I think the pandemic and I guess the geopolitical events have produced more demand for our markets. We see that the sector continues to be very resilient.
spk14: Next we'll go to Nikolai Lipman with Morgan Stanley. Your line is now open.
spk10: Thank you very much, and good morning, everyone. Congrats on that number. Thanks for taking my question. I joined a little late, so sorry if the question has been asked already. But, you know, looking at what's happening in the space, your results, you know, you're sold out. So I think the obvious question is how can you catch up? How can you catch up with growth? How can you make sure that, you know, how are you thinking about M&A? You know, how should we start thinking about maybe, you know, you know, growing the GLA? Is it additional capital? Are you thinking additionally about M&A externally? Are you thinking of partnering with different private equity groups? That's basically my question. Thank you very much.
spk09: Thank you very much for your question, Nikolai. And certainly, we are in great shape. You know, we have prepared the company for any part of the cycle. You can see our loan-to-value at 20%, and this just gives us flexibility to do a lot of things. So I think in these times, there are opportunities that may present itself, and I guess we will be ready for anything that comes in our way.
spk15: On the other hand, Nicolai, Colois has made important investments on replenishing land banks. The largest land that has been bought took place last year. And this year, the plans to keep on replenishing land are in place. As I mentioned in the previous question, you really need to anticipate development because infrastructure and entitlement is becoming more complicated. You have the additional complication of construction costs increasing near 1% every month. So you need to put all this in the equation. This is not an easy task to anticipate two or three years of acquisition of land. As of today, we have enough land in the future to take care of all the big demands, which I anticipate will be through built-to-do projects as the big companies are not finding the spaces currently in the market. So the share of business groups have increased, and I think that that trend will keep on happening. And our sponsor, I think that it's better prepared to take care of these opportunities.
spk14: Next, we'll go to Alejandro Chavez with Credit Suisse. Your line is now open.
spk02: Hi, please, Tim. Thanks for taking my question and congratulations on the results. I wanted to ask, we have recently seen news of upcoming deceleration in the economy. Are you seeing perhaps a slower pace of request for proposal or are you seeing those remain steady? Have you heard of any client postponing investment decisions in light of the challenging economic environment? Just your thoughts on that part.
spk15: Thank you, Alejandro. On the operational front, we keep on seeing a very strong performance from our customers. I think that the disruption of the supply chain keeps in play and the near-sharing activity keeps on creating more business for us. What we have seen is in the peak times at the beginning of this year or probably by the end of last year, The pipeline was at 120 miles per speed. Probably today it's at 90 or 95. So there's a little slowdown on the pipe request for future projects. A risk is that companies are doing further analysis before taking decision. But having said this, the pipe and the traction about requesting new space is in very good shape. Probably peak about this is behind, but we anticipate that this plan will keep on being strong for the following 24 months at least.
spk08: And next we'll go to Jarell Giolotti with Goldman Sachs. Your line is open.
spk12: Good morning, gentlemen. Thank you for taking the question. So I wanted to touch a bit on the onshoring, reshoring topic. You mentioned it as being a key driver. for uh leasing in your portfolio but i was wondering if there's a way to better quantify this you know if you could perhaps say you know what percentage of leases that were uh that are new leases over the past six months or nine months or something like that have been uh tied to to onshoring um or How are you, if there's any way to quantify that demand at perhaps a city level, regional level? Just want to get more numbers because there is a lot of discussion around the topic, but the quantification of it has been a bit of a challenge. So I was wondering if you could provide some call on that.
spk15: Thank you for your question, Joel. As you mentioned, it's difficult to have precise accountability, a precise count of how much of the business is really coming from nearshoring. There are some cases in which the identification is very easy. I see brand new companies jumping to Mexico and they have that label on day number one. But there's as well some important activity coming from companies that are already with us and that are already having operations in Mexico and they decide to expand their business lines, or even to bring some other divisions into Mexico. The best reading that I may have, without being this precise number, is that at least 33%, one-third of our activity is coming from this front. But the important thing is that the trend that we see going forward is positive. In prologies, we have debility, and we have important operations in China and Japan. We're starting a program to try to create synergies between our operations there and the ones that we have in Mexico. I think that this is a unique competitive advantage that we have, and you should be hearing from these soon.
spk08: Okay, next we'll go to Kendra Mazini with Citigroup.
spk14: Your line is open.
spk03: Sure. Morning, everyone. Thanks for the call. So my question is if you could compare and contrast the e-commerce landscape in Mexico to the one in the U.S. Of course, famously, we saw some news allegedly that Amazon will be subletting some space in the U.S., right? In the beginning of the call, you guys mentioned that e-commerce, of course, is growing in Mexico. It's around already low teens in terms of penetration. So If you think, I know it's very different north of the border. Maybe, you know, e-commerce companies did take all the space they needed over there for the short term. And Mexico is a different story. It's more of a secular growth trend. And if there's any risk of this, you know, slowdown in e-commerce take-up or even on the other way around, some spaces getting back to the market or if it's very different, Mexico versus the U.S. Thank you.
spk15: Andre, thank you very much for your question. Effectively, this announcement that Amazon made in the US is making a general perception that e-commerce was probably overpriced or overvalued. As you mentioned in your question, the situation in Mexico is different than in the US. What has happened and is happening in Mexico is that once the pandemic is somehow left behind, people are going out and they're spending more money in experiences than in buying goods online. I think that that's something that we need to recognize. We are there. Having said this, the ratio of infrastructure compared to the business that they had in the U.S. is completely different. than the one that the big e-commerce companies they have in Mexico. We keep on working not only with Amazon, but with all of the other e-commerce big players, and we do see that they keep on having important plans of expansion. So the situation in Mexico is different than from the US. There is not an over infrastructure or an over supply of e-commerce space so far. We have committed that, you know, the barriers to supply space are big in Mexico, and the most of the space that these companies are requesting, I need it to be satisfied to build projects that are taking more time to be developed and to be launched to the market. We keep on seeing this activity as some of our strengths. We have the land bank, and we have the relation with these companies. We keep on looking forward to be doing an important announcement of growing these customers in the future?
spk09: Andrea, so e-commerce in the US now represents 21%. I guess during the pandemic, it went to 23%. In Mexico, e-commerce sales have grown even this year, and they represent 11%. So there's a huge gap between 11% and the 21% that we have in the US. So as Hector said, there is a lot of room to grow.
spk08: Okay.
spk14: Next we'll go to friend Cisco Chavez with BBBA. Your line is now open.
spk17: Hi. Thanks for the call. My question is regarding your guidance. You increased guidance for occupancy and same-store NOI, but guidance for AFFO and distributions remain unchanged. Are you expecting a higher financial cost, or can we expect an awkward revision in your distribution during the second half of the year? Thank you.
spk05: Thank you, Francisco. Thank you for your question. This is Jorge. We're keeping our guidance on distributions on touch, given everything that is going on in the world. We said this last quarter. We always want to keep some space there. In terms of the FFO per certificate, you're right. We increase our occupancy in the same store, but we're keeping the FFO per certificates unchanged. And this is mainly derived from the increase in interest expense, nothing that we don't have in our projections. You have seen interest rates go up. Eighty percent of our debt is fixed. But as we use our line of credit, which today is at 20% of the total debt, and it's based on the floating rate, it does increase. So we're taking that into account. So answering your question has to do specifically with the higher cost of interest on the line of credit.
spk08: OK. Next we'll go to Alan Macias with Bank of America.
spk14: Your line is now open.
spk11: Hi, good morning and thank you for the call. Just a question on the solar panels and if you have any restrictions in the amount of solar panels you can install in your buildings and if this is the case, does this represent a risk for your net zero emission goals going forward? Thank you.
spk09: Thank you, Alan, and this is a very good question. So as you saw, we announced a net zero for 2040, and certainly the solar situation is part of that goal. So we have been studying this now for a while, and we are beginning with a pilot program, and we will be installing in nine of our buildings solar panels as a pilot program. Some of the challenges that we have have to do with the FEBRA tax status in which the FEBRA cannot sell solar. But we think we have found a structure. So after this pilot, we will be relaunching a much higher program which will comply with local regulations. So I believe at the end, you know, we will be successful in our solar program.
spk08: It will take some time. Next, we'll go to Juan Macedo with GBM.
spk14: Your line is open.
spk17: Hi, thanks for the call. My question is regarding the acquisition in Mexico City. It was made at a slightly higher cap rate. So we were wondering if this is due to the kind of property or maybe the economic situation in the region.
spk15: Juan, thank you for your questions. The positions made in Mexico City are either to last-ditch projects or to infant projects. And the cap rate that we see is between 7% to 8%. I think that there's a unique opportunity and that we have anticipated enough. So the precision costs that we have on those linked with the current market conditions are going to make out of those investments, ones of the most profitable ones that we have in Mexico City. There's still a lot of work to do on that regard. We're developing a new relation with the authorities in Mexico City because most of our stuff, even we call it in Mexico City, was in the state of Mexico. More to come on this regard, we keep on having a strong pipeline on this. And this is a unique way to provide service to our current customers that are requesting this type of property.
spk05: And just one point, Juan. Regarding our last touch facilities, in general, as a rule of thumb, cap rates on those acquisitions are higher. They're more like a retail type of property. investments because they're higher rents closer to the consumer, more expensive per square foot, but in terms of yield or cap rate, those generally, these are higher vis-a-vis an industrial warehouse, a shoebox that we typically would buy or build in this market.
spk14: Okay. And at this time, I'd like to remind everyone, in order to ask a question, press star then the number one on your telephone keypad. Next, we'll go to Armando Rodriguez with Signal Research.
spk04: Your line is now open. Thank you all for taking my question and congratulations on these results. So my first question is related to your efficiencies on your operating expenses that reflect an increase in NOI margins. What we should expect on this in the following quarters. And my second question related to the capex investments, what's your comments on the impact that you are seeing in this capex related to the CPI levels? That's my only question. Thank you very much.
spk05: Thank you, Armando. Good to hear from you. This is Jorge. First of all, regarding margins, we have said in the past that our operating margin, our NOI margin, is around 87%. We have had, last quarter, for example, we reached 88%. And at the end of 2019, we were at the 84% level. But in the average, overall, we have an 87%. So you should look at our operating margins in the 87% level. We don't see a change there, obviously. Expenses increase with inflation, and we increase our rent through rent bumps and rain changes on the rollover. So there is a catch-up sometimes there, but in average we will have the 87%. In terms of CAPEX for certificates, I think you're referring to our $8 million of CAPEX on living commission maintenance and TIs that we spend this year. Our guidance is the capex on an annual basis is going to be between 13 and 14% of NOI. We're not changing that. You have some quarters that you have a higher capex than others. Last quarter was pretty low. This quarter is higher, $8 million versus six that was last year, that last quarter, sorry. And that depends on how much lithium volume you have. We have, you know, more lithium volume this year This quarter, we had a maintenance capex. We have rainy season, so you have a little more of capex on that side. Also, on the leasing volume, you have the TIs with your tenants. So it depends. Just to give you a sense, for this first half of the year, total capex has been 12.6% of NOI. So we're in line with what we guided. You won't see a change there, maybe quarter to quarter, but not on an annual basis. Thank you, Armando.
spk15: And a specific comment on this last point that Jorge mentioned. The capex loop looked higher this quarter because several of the spaces were small spaces. And this creates the percentage to be higher. But no surprises when the number is going to be as Jorge described.
spk14: There are no further questions at this time. I'll now turn the call back over to CEO Luis Gutierrez for any additional closing remarks.
spk09: Thank you very much for being on the call and your interest in Fibra Prologis. In spite of the current economic conditions, our business remains resilient, and this somehow is showing in our results. And we feel confident about reaching our goals. So looking forward to keep in touch with you and looking forward to see you during the quarter. Thank you very much.
spk14: This concludes today's conference call. You may now disconnect.
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