Fibra Next · BMV:NEXT/25
Fibra Next — IPO Roadshow (November 2023)
31 slides from Fibra Next's IPO roadshow presentation, November 2023
Slide 1: Investor Presentation
STRICTLY PRIVATE AND CONFIDENTIAL Investor Presentation November 2023
Slide 2: Disclaimer (1/2)
Disclaimer (1/2) THIS PRESENTATION AND ITS CONTENTS ARE STRICTLY CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY. THIS PRESENTATION DOES NOT CONSTITUTE OFFERING MATERIAL IN WHOLE OR PART. This presentation has been prepared by Trust 2401
Slide 3: Disclaimer (2/2)
Disclaimer (2/2) This Presentation contains Non-GAAP financial measures. The Non-GAAP financial measures contained in this Presentation are not measures of financial performance calculated in accordance with International Financial Reporting Standards, or IFRS, and should not be considered replaceme
Slide 4: Today's Presenters
Today’s Presenters André El-Mann Raúl Gallegos Patricio Hernandez Executive Vice CEO of NEXT FUNO M&A Chairman of NEXT ▪ FUNO’s CEO since 2010 and ▪ Former President and CEO of ▪ 7+ years of experience working member of FUNO’s and GE in Mexico, having also led at FUNO in asset management NEXT’s Tech
Slide 5: Today's Presenters
Today’s Presenters Gonzalo Robina Jorge Pigeon Pablo Gomez Sofia Peña NEXT’s Board Member VP FUNO Capital FUNO M&A FUNO IR & FUNO Co-CEO Markets Director Director ▪ 40+ years of experience in ▪ 29+ years of experience in ▪ 14+ years of experience in ▪ 10+ years of experience in the real estate secto
Slide 6: Transaction Overview
Transaction Overview Issuer / Ticker Nearshoring Experts & Technology ("NEXT") / [NEXT23] Exchange Mexican Stock Exchange Offering Structure Issuance of CBFIs, Local + 144A / Reg S, 100% primary Base Deal Size 277,777,777 CBFIs; equivalent to MXN15bn(1) Hot Deal Option Up to 20% of the deal Greensho
Slide 7: NEXT is the Optimal Vehicle to Play North America's Integration and Nearshoring
NEXT is the Optimal Vehicle to Play North America’s Integration, Nearshoring, Logistics and e-Commerce Trends in Mexico with Scale & Quality Unique Timing for Mexican Industrial Real Estate One of the fastest growing industrial market globally with short-term constrained supply capabilities to addre
Slide 8: NEXT Unique Combination of Size, Shovel-Ready Landbank and Experience
NEXT Unique Combination of Size, ‘Shovel-Ready’ Landbank and Experience Makes it a One-of-a-Kind Investment Opportunity NEARSHORING DRIVES CONSTRAINTS TO SUPPLY PENT UP DEMAND Access to: 1 Growing Absorption + 2 Dropping Vacancy 3 Pushing Rent Growth Private Limited Energy Net Absorption 2023E: ONLY
Slide 9: The Mexican Industrial Real Estate Sector is Thriving Due to Alignment of Sector Trends
The Mexican Industrial Real Estate Sector is Thriving Due to Alignment of Sector Trends Mexico has highly competitive manufacturing costs and a privileged location… Manufacturing Cost Competitiveness Index Privileged Location Ideal to Improve Supply Chains... (US=100) (Days) 100 Destination Mexico C
Slide 10: NEXT's Core Locations Have the Elements that Represent Barriers for Other Players
NEXT’s Core Locations Have the Elements that Represent Barriers for Other Players 67% of Mexico’s Power is Generated in the Central and Southern Regions 33% National Power Generation 67% National Power Generation Power plants NEXT's Markets Drought analysis impact across regions in Mexico 2018 2019
Slide 11: NEXT: The Largest Industrial Real Estate Portfolio in Mexico
NEXT: The Largest Industrial Real Estate Portfolio in Mexico Ciudad Juarez ▪ GLA: 0.4mm sqm (3.8mm sqft) 199 ▪ % of GLA: 5% Properties ▪ Occupancy: 100.0% 7.5 mm sqm Monterrey(3) ▪ GLA: 0.7mm sqm (7.6mm sqft) (81mm sf) ▪ % of GLA: 9% of GLA(1) ▪ Occupancy: 94.9% 97.3% Occupancy Tijuana ▪ GLA: 0.2mm
Slide 12: World-Class & Diversified Tenant Base
World-Class & Diversified Tenant Base Widely Diversified and High-quality Tenant Base: Top 10 Tenants Represents Less Than 20% of Next’s Total Rent The Most Diversified Portfolio Extensive and reliable list (Top 10 Tenants as % of Total Annualized Base Rent) of clients… 28.5% 23.8% +800 +600 >30 yea
Slide 13: NEXT Compares Favorably Against its Mexican Industrial Real Estate Peers
NEXT Compares Favorably Against its Mexican Industrial Real Estate Peers Operational GLA 7.5(1) 3.4 4.1 mm sqm (mm sqft) (81.1) (36.9) (44.2) 13.4 4.8 5.6 Potential GLA (143.8) (51.3) (60.2) mm sqm (mm sqft) Occupancy rates 97.3% 97.3% 98.4% (%) NOI 3Q’23 LTM(2) $465 $192 $260 (US$ mm) In Place NOI
Slide 14: Organic Growth Opportunities From Mark-to-Market
Organic Growth Opportunities From Mark-to-Market Lease Maturity Schedule 3.3mm sqm maturing in the next 3 years (mm sqm) 46% of Total Leases/GLA Expected to Mature in the Next 3 Years and Today our Average ~49.2% Price Rent is 22% Below Market Price % GLA 3.4 ~18.7% ~13.1% ~14.4% ~4.5%(1) 1.3 0.9 1.
Slide 15: Access to the Largest Shovel-Ready Developable GLA in Center Mexico
Access to the Largest Shovel-Ready Developable GLA in Center Mexico Key Highlights Geographic Footprint of e-Group Properties ✓ NEXT has a ROFO and ROFR on industrial Queretaro properties from e-Group ▪ GLA 1.2 mm sqm ✓ Exclusive access to 10.7mm sqm of land Toluca (13 mm sf) ▪ Avg. Rent(1): $5.15 r
Slide 16: T-MEX Park
T-MEX Park v NAFTA HIGHWAY Laguna De Zumpango NAVE F1 NAVE F2 NAVE E1 Tepozpark N NAVE F1 NAVE D2 N Cuautipark NAVE E2 NAVE C1 Access Casetas N Santa Lucía NAVE C2 NAVE C3 International NAVE B3 Airport NAVE B1 NAVE A1 NAVE A2 NAVE B2 NAVE B4 N La Joya Park Tultitlan Access N Mexiquensepark Park N N
Slide 17: El Marqués Park
El Marqués Park 32 NAFTA 30 31 28 29 HIGHWAY Santiago de 26 27 25 Access Quéretaro 8 7 Access 24 6 Querétaro 23 22 Carretera México-Celaya 1 2 3 4 5 21 20 19 9 10 11 12 18 Access 17 16 Access 13 14 15 Location: Municipio del Marques, Queretaro ✓ 1.7mm sqm of land with 0.9mm sqm of expected GLA once
Slide 18: Toluca Park 3000
Toluca Park 3000 Xonacatlán Plot 3 Plot 4 Tolucapark II N N Maravillaspark Plot 5 LA Maquinita Toluca International Plot 2 Plot 6 Airport Plot Plot 7 Lermapolaris Lerma N 8 Lermapark I N Tolucapark I N Toluca Paseo Tolocan N Lermapark II Access Access MEX-TOLUCA Plot 1 Metepec San Mateo Atenco Airpo
Slide 19: Transparent Conflicts of Interest Resolution Mechanism With e-Group
Transparent Conflicts of Interest Resolution Mechanism Will Rule our Transactions With e-Group Related-Party 1 Related- party transaction is presented to Practices Committee Transaction Fairness Opinion by A mandatory fairness opinion and appraisal from independent Practices Committee Investment Ban
Slide 20: NEXT Has the Potential to Double its Size Within its Own Exclusive Landbank
NEXT Has the Potential to Double its Size Within its Own Exclusive Landbank Potential Development Inside NEXT Could Grow the GLA by 1.8x in the Next Years… (GLA mm sqm) 1.8x 5.8 13.4 1.4 7.5 6.1 2.1x BIGGER THAN THE 2 MAIN PEERS COMBINED(1) FUNO Industrial Portfolio e-Group Industrial Portfolio NEXT
Slide 21: Backed by a Proven Track-Record of Execution and Capital Deployment
Backed by a Proven Track-Record of Execution and Capital Deployment Largest Real Estate Operator in LatAm 11 mm 27% +US$6bn US$1.1bn Sqm of total GLA GLA average annual growth In cumulative Equity raised LTM NOI (~2.7x its closest competitor) since IPO since IPO TOTAL NAV CAGR SINCE IPO: AFFO / CBFI
Slide 22: Optimal Balance Sheet Structure with Prudent Leverage Target BBB/Baa2 Rating
Optimal Balance Sheet Structure with Prudent Leverage Target BBB/Baa2 Rating Debt Profile Highlights Long-term policies are to Weighted Average EBITDA Interest maintain a minimum of ~1:1 Total Debt Average Life of Debt Coupon Coverage Target currency coverage in USD ~US$2,704mm ~10 Years(1)(3) incom
Slide 23: Optimal Balance Sheet Structure with Prudent Leverage Target BBB/Baa2 Rating (Cont'd)
Optimal Balance Sheet Structure with Prudent Leverage Target BBB/Baa2 Rating (Cont’d) NEXT Target Capital Structure(1) Debt Breakdown Highlights NEXT Debt Type Currency Interest Rate Maturity Amount (mm) By Security By Rate Bank Debt (%) (%) Doña Rosa facility MXN$ 7.920% Dec-28 $42 Hércules facilit
Slide 24: NEXT Has a Seasoned Management Team With Over 40 Years of Experience
NEXT Has a Seasoned Management Team With Over 40 Years of Experience in the Industrial Real Estate Sector Raúl Gallegos Carlos Pantoja Diego Noriega NEXT CEO NEXT CFO NEXT CLO ▪ Former President and CEO of ▪ 25+ years of experience in the ▪ 15+ years of experience in GE in Mexico, having also led fi
Slide 25: Best-in-Class Corporate Governance Structure
Best-in-Class Corporate Governance Structure Fully-aligned interests of all shareholders through internally-managed structure and market-friendly corporate governance. Key Governance Considerations Technical Committee Non-Independent Independent ✓ Internally-managed vehicle; no fees paid to third pa
Slide 26: Committed to the Best Social and Environmental Practices
Committed to the Best Social and Environmental Practices Selected Achievements NEXT ESG Goals from Our Sponsor • Wastewater treatment plant and harvest system in each industrial park ESG Regional • Have 100% of clean energy sources in our operations and at Top Rated least 30% of clean energy sources
Slide 27: NEXT Unique Combination of Size, Shovel-Ready Landbank and Experience
NEXT Unique Combination of Size, ‘Shovel-Ready’ Landbank and Experience Makes it a One-of-a-Kind Investment Opportunity NEARSHORING DRIVES CONSTRAINTS TO SUPPLY PENT UP DEMAND Access to: 1 Growing Absorption + 2 Dropping Vacancy 3 Pushing Rent Growth Private Limited Energy Net Absorption 2023E: ONLY
Slide 28: Appendix
NEARSHORING EXPERTS AND TECHNOLOGY. Appendix [5]
Slide 29: The Right Structure with the Highest Corporate Governance Standards
The Right Structure with the Highest Corporate Governance Standards Pro Forma Structure Corporate Governance Fully-aligned interests of all shareholders Public Investors Internally-managed vehicle 54.8% 45.2% Fully-independent management team Access to e-Group Potential GLA (~5.3mm sqm) 50% independ
Slide 30: FUNO's Industrial Portfolio
NEXT’s Assets Overview FUNO’s Industrial Portfolio Tepoz Park1 San Martín Obispo l San Martín Obispo ll Tijuana Alamar 27
Slide 31: Jupiter's Industrial Portfolio
NEXT’s Assets Overview (Cont’d) Jupiter’s Industrial Portfolio San José Tulti Park III Tulti Park IV Santín 28