Fibra Prologis Reit Ctfs

Thank you for standing by. My name is Van, and I will be your conference operator today. At this time, I would like to welcome everyone to the FIBRA Prologis First Quarter 2025 Earnings Conference Call. 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 would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Alexandra Violante, head of IR. Please go ahead.

Thank you, Ben, and good morning, everyone. Welcome to our first quarter 2025 earnings conference call. Before we begin our prepared remarks, please note that all the information disclosed during this call is proprietary and all rights are reserved. This material is provided for informational purposes only and is not a solicitation of an offer to buy or sell any securities. Forward-looking statements made during this goal are based on information available as of today. Our actual results, performance, prospects, or opportunities may differ materially from those expressed in or implied by the forward-looking statements. Additionally, during this goal, 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 had prepared supplementary materials that we may refer during the call as well. If you have not already done so, I will encourage you to visit our website at seraprologist.com and download this material. On today's call, we will hear from Hector Ibarzabal, our CEO, who will discuss our strategy and market conditions. And from Jorge Giró, our CFO, who will review results and guidance. Also joining us today is Federico Cantu, our head of operations. With that, it is my pleasure to hand the call over to Hector.

Thank you, Ale, and good morning, everyone. I would like to start today's call talking about the current macro environment that we are seeing. Trade uncertainty is at levels we have rarely experienced in the past. Tariffs ranging between 10 and 49% were established by the U.S. on most countries globally, while China received tariffs prohibited to trade. Mexico and Canada stand out as the only major exporters to the U.S. that retained zero tariffs under the existing USMCA agreement. This shifting trade landscape could affect our business in two important ways. First, the tariffs may impact U.S. economy, and as Mexico depends in great measure on U.S. consumption for its exports, this could affect demand for products manufactured here. In response, customers could slow down investments. On the other hand, Mexico is well positioned among exporting countries with important competitive advantages. which could spur a new wave of nearshoring investments. Fibra Prologis runs its business in a disciplined and resilient way, and this is exactly the kind of moments we are built for. The company delivered solid financial and operational results and a record rate change on rollover. Jorge will talk more about our specific performance. I'd like to describe what we are seeing from customers on the ground, mainly before and after the tariff announcements. Prior to April 2nd, we had seen very cautious customers on the manufacturing segment, not taking decisions in advance of the tariff news. After April 2nd, we have observed increased activity from certain customers across industries such as electronics, medical, and appliances, which are seeking space in the border markets. Regarding the auto sector, supply chains will have developed over decades, will face complexity in the event of any reconfiguration, and will require important time to do so. Our existing customers in this sector have continued to renew. And the trend that we have observed, not only in this sector, but others as well, as it could have been expected, has been for some companies requesting shorter lease term, aiming for flexibility on their uncertainty on long-term demand. On the consumption segment, we have not identified a change in customer tone before and after April 2nd. Even though consumption in real terms was practically flat in the quarter, consumption markets are experiencing the lowest vacancy, and e-commerce continues to grow in the double digits, putting Mexico among the top countries in e-commerce growth in the world. As a result, customers continue to renew as well as look for expansion opportunities. Let me now shift to real estate activity across our markets. New leasing activity reached 7.4 million square feet below the 2024 average of 10.6 million square feet, mainly driven by a sharp slowdown in demand in the border markets. Due to the low net absorption and stable supply, vacancy in our markets increased 50 basis points to 4.1%. which compares to the 7.3% long-term average. So we're still at very healthy levels. During the current environment, market rate growth has leveled out. Weakness in certain manufacturing markets has been offset by the strength of the consumption markets. We would like to highlight that Mexico City and Guadalajara that represent more than 50% of our operating portfolio by value experienced declines in vacancy in the first quarter. It is also important to mention that our Mexico portfolio remains the prologist region with the lowest vacancy worldwide. In closing, we are built to navigate on any environment, and when the dust settles with our strong balance sheet, One of the best in our sector, we will be uniquely positioned and ready for any opportunities that may arise. We have a leading franchise in the sector, and as always, we will continue to listen and work closely with our customers in providing them the best service we can. Finally, as you all know, we remain committed to creating long-term value for our shareholders. With that, I will pass the call over to Jorge.