FIBRA Prologis Is Twice As Large Post Terrafina Acquisition But Still Expensive

2025-03-01 01:10:32 ET

Summary

• FIBRA Prologis released 4Q24 earnings, showing a combined $270 million in FFO, a low 5.5% yield on a $4.9 billion market cap.
• The company plans to sell 5% of total assets, mainly from Terrafina's non-core portfolio, amid market uncertainties from tariffs and trade agreements.
• Significant debt increase to $2.25 billion for Terrafina acquisition, with $500 million more in maturities by 2027, to be managed through asset sales.
• Valuation concerns due to low vacancy rates and high renewal price risks in an uncertain Mexican industrial real estate market; maintain Hold rating.

FIBRA Prologis ( OTCPK:FBBPF ), FPrologis for short, released 4Q24 earnings, the first financial statements with the combined interest in FIBRA Terrafina ( OTCPK:CBAOF ) owned at 90%....

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