Fibra Prologis Reit Ctfs

Thank you for standing by. My name is Kate and I will be your conference operator today. At this time, I would like to welcome everyone to the FIBRA Prologis 3Q 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 Investor Relations. Please go ahead.

Thank you, Kate, and good morning, everyone. Welcome to our third 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, 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 fibriaprologist.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. Today, I'd like to begin by addressing the geopolitical environment in which we are operating. Trade uncertainty has improved slightly as Europe and Japan have formalized new trade agreements with the U.S., while negotiations between China and the U.S. remain intermittent. On the other side, the U.S. has hardened its stance toward Mexico and Canada, implementing additional sector-specific tariffs outside of the USMCA framework. In this environment, most manufacturing customers remain cautious about expansions and new projects. We've observed some improvement in manufacturing leasing activity in certain markets, and also signs of customers reconfiguring their supply chains to strengthen their presence in the US, seeking political goodwill. Overall, the outlook is constructive, though we continue to monitor developments closely. If a definitive resolution on tariffs doesn't emerge in the next two or three quarters, we believe uncertainty will become the new normal, and customers will begin to move forward incorporating that uncertainty into their business risk assessments. Turning to our consumption-driven markets, Guadalajara and Mexico City continue to perform exceptionally well, fueled by both e-commerce growth and the modernization of supply chains by major retailers. These dynamic markets represent about 50% of our operating portfolio. We continue to see a robust pipeline of customers seeking large, modern spaces to optimize operations, particularly in Mexico City. which accounts for nearly 40% of our activity. E-commerce continues to expand its market share, with leading players making significant investments in new facilities. Thanks to this strong diversification, Fibra Prologis delivered outstanding financial and operational results this quarter. Jorge will provide more details shortly. Talking about market dynamics, New leasing activity totaled 10 million square feet, up sharply from 5 million last quarter, and roughly in line with the 2024 average of 11 million. We saw a rebound in manufacturing markets and a notable uptick in Mexico City. Net absorption reached 7.8 million square feet impacted by move outs in Tijuana, but they're still consistent with the average of the past four quarters. New supply declined 33% versus last quarters to 10 million square feet. But this level was sufficient to increase vacancy by 40 basis points to 5.3%. Construction starts totaled 14 million square feet, reversing the downward trend of the previous two quarters, and nearing a historical record. Market trends were relatively stable this quarter, with consumption markets seeing low single-digit growth, while manufacturing markets were flat to slightly down. Property values were also stable, with marginal cap rate expansion in select submarkets, mainly Tijuana. While headwinds remained on the trade front, customers appear to be gradually making investment decisions in advance of the upcoming USMCA renegotiation. The path ahead may be bumpy, but we expect a constructive outcome. We continue to closely monitor customer sentiment and policy developments to ensure we maximize long-term value for all stakeholders. Turning to the Terrafina acquisition, on October 14, we launched the third tender offer for the remaining 10% at 42.5 pesos per certificate. We are optimistic about the results and expect to provide an update by mid-November when the tender offer closes. By reaching 95% ownership, our intention remains to delist Terrafina. At the same time, we're making solid progress, elevating Terafina's operating standards, bringing contracts to market trends, which has surpassed expectations, and moving forward our disposition and asset recycling goals. We remain fully committed to our shareholders and to always placing their interests first. With that, I'll hand it over to Jorge.