Fibra Prologis Reit Ctfs

Ladies and gentlemen, this is the operator. Today's conference is scheduled to begin momentarily. Until that time, your lines again will be placed on a music hold. Thank you for your patience. Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the FEBRA Prologis Second 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. And if you would like to withdraw your question, press the star one again. Thank you. I would now like to turn the conference over to Alexandra Violante, head of investor relations. You may begin.

Thank you, Krista, and good morning, everyone. Welcome to our second quarter 2025 earnings conference call. Before we begin our prepared remarks, please note that all information disclosed during this call is proprietary and all rights are reserved. This material is provided for informational purposes only. It's not a solicitation of an offer to buy or sell any securities. Forward-looking statements made during this call 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 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 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. Let me begin by addressing the macroeconomic environment we are operating in. Trade uncertainty has increased from already elevated levels last quarter. Formal trade agreements between the U.S. and other countries remains unclear. A 30% tariff on all Mexican imports not compliant with the USMCA has been announced to take effect in August. This environment has led many export-oriented manufacturing customers, particularly those near the border, to put their new plans on hold. However, our manufacturing portfolio continues to outperform the market in terms of occupancy, a clear reflection of our differentiated customer service, strong property management, and strategic real estate location. At the same time, and by design, we maintain sector-leading exposure to key consumption-driven markets, notably Mexico City and Guadalajara, which deliver very strong performance during the quarter. Thanks to this solid diversification, Fibra Prologis delivered strong financial and outstanding operational results, and we maintain clear visibility getting into the second half of the year. Jorge will provide more details shortly. Let me now touch on what we are hearing directly from customers and brokers in the field. As we highlighted in our last call, we have seen a pickup in interest from select manufacturing sectors, particularly electronics and after April 2nd. However, Trade clarity remains a critical factor influencing decision-making for new projects. While interest remains, customers are more cautious, and material commitments are likely to take longer in the absence of resolution of global trade terms. On the other hand, demand coming from the consumption segment remains healthy. We continue to see a strong activity from e-commerce customers seeking a space to support ongoing growth. Competition for space, especially modern large-format facilities, remains intense. Despite expectations of flat GDP growth this year, vacancy and rental growth in consumption-led markets continue to perform exceptionally well. Turning now to overall market dynamics, New leasing activity totaled 5 million square feet, below the 2024 average of 11 million, largely due to softer demand in manufacturing regions. Notably, most of the leasing in those areas came from smaller expansions or first-time suppliers, typically requiring less space. Net absorption came in at 10 million square feet, consistent with the 2024 average. and was boosted by the delivery of several large release spaces in Mexico City, Monterrey, and Guadalajara, mainly to e-commerce customers. New supply reached 15 million square feet, the highest level on record, leading to an 80 basis points increase in vacancy, now at 4.9%, slightly above the 10-year average of 3.6%. Construction starts were 8 million square feet and are down 40% year-to-date, as developers have reduced the pace of new projects in the border. As we mentioned last quarter, overall market rent growth has flattened, but trends remain highly market-specific. Mexico City and Guadalajara continue to show a strong rent growth, approaching double digits. In contrast, Juarez is on track to post a mid double-digit decline by year end. Most other markets remain generally stable. In terms of asset values, quarterly appreciation was modest, but positive at around 1%. In summary, while the external environment remains challenging, particularly with ongoing trade uncertainty and reduced manufacturing momentum at the border, Our portfolio continues to demonstrate resilience. This is driven by our strategic exposure to consumption-led markets and disciplined operational execution. We expect to close the year on a strong note, both operationally and financially. And with a robust balance sheet, we remain well positioned to act on new opportunities as they arise. We are cautiously optimistic and remain closely aligned with evolving tenant sentiment and policy developments. Above all, we stay committed to delivering long-term value to our shareholders. With that, I will hand the call over to Jorge, who will walk you through the quarter's financial and operational highlights.