FIBRA Prologis's Hybrid Payout: A Bet on Mexico's Industrial Boom

MEXICO CITY, MX – February 03, 2026 – By Sarah Hughes

FIBRA Prologis, a titan in Mexico's industrial real estate sector, has declared its latest quarterly distribution, continuing a financial strategy that speaks volumes about its confidence and future plans. In an announcement that merges shareholder returns with strategic capital management, the company revealed a hybrid payout combining cash and additional equity, a move that underscores the intense growth dynamics currently shaping the nation's industrial landscape.

On Tuesday, the company (BMV:FIBRAPL 14) detailed a distribution payable on February 16, 2026, to its certificate holders. The payout consists of a cash portion of Ps. 0.6462 per certificate (CBFI) and an in-kind distribution of 27.35 million new CBFIs, valued at an equivalent of Ps. 1.2784 per certificate. This brings the total distribution to Ps. 1.9246 per CBFI, a significant return generated from its fiscal performance in December 2025.

While complex, this hybrid model is not an anomaly for FIBRA Prologis but a recurring feature of its financial playbook. The decision to issue a substantial portion of the distribution in the form of new certificates, rather than all cash, offers a window into the company's strategy as it navigates a period of historic opportunity driven by the global nearshoring trend.

A Strategy of Cash Preservation and Growth

The structure of the distribution is deliberately designed. The cash component, totaling approximately US$61.5 million, is specifically allocated to cover the mandatory 30% income tax (ISR) withholding on the total distribution. This mechanism aims to simplify the tax burden for many investors by providing the liquid funds necessary for their custodians to remit payments to tax authorities.

However, the more strategically significant element is the in-kind distribution, valued at over US$121 million. By paying a large part of its shareholder return in equity, FIBRA Prologis effectively preserves a substantial amount of cash on its balance sheet. This capital retention is not a sign of distress but rather a calculated move to fuel an aggressive expansion strategy in a highly competitive market.

This approach allows the company to fund growth initiatives—such as acquisitions and development projects—without taking on additional debt or diluting existing shareholders through a separate equity offering. The firm’s recent activities provide clear evidence of this expansionary focus. In August 2024, FIBRA Prologis successfully acquired a commanding 77.14% stake in rival FIBRA Terrafina, a landmark deal that added over 42 million square feet to its portfolio. More recently, in January 2026, the company acquired three fully occupied, US-dollar-denominated industrial properties in the key markets of Monterrey, Toluca, and Ciudad Juarez for US$67.1 million.

By using its own certificates as a currency for distributions, management signals strong confidence in the future value of its portfolio and encourages investors to maintain and increase their stake, effectively reinvesting in the company's growth trajectory.

Riding the Nearshoring Wave

FIBRA Prologis's financial strategy is unfolding against the backdrop of a red-hot Mexican industrial real estate market. The global push for supply chain resilience has ignited a “nearshoring” boom, with international companies relocating manufacturing and logistics operations to Mexico to be closer to the massive North American consumer market.

This trend has created unprecedented demand for Class-A industrial facilities, the very core of FIBRA Prologis's business. Market reports from 2024 and 2025 highlighted near-100% occupancy rates across Mexico's primary industrial corridors and sustained, robust rental growth. According to Prologis Research, the nearshoring effect is so powerful that rent growth in Latin America is projected to be roughly double the global average. The research estimates that every US$1 billion invested in Mexican auto factories alone can generate between 5 and 10 million square feet of local logistics demand.

As a leading owner and operator with a portfolio of 515 properties totaling 87 million square feet as of late 2025, FIBRA Prologis is at the epicenter of this economic transformation. Its vast presence in six core industrial markets positions it as a primary beneficiary of the influx of foreign direct investment and the corresponding need for modern logistics and manufacturing space.

The Investor Perspective: Balancing Returns and Liquidity

For the individual or institutional investor, the hybrid distribution presents a nuanced picture. On one hand, it represents a consistent and substantial return from a top-performing real estate investment trust. The in-kind portion allows shareholders to automatically increase their holdings and participate directly in the company’s anticipated growth without incurring transaction fees on a reinvestment plan.

On the other hand, the structure has implications for liquidity. Investors seeking immediate cash flow must sell the newly received CBFIs on the open market, exposing them to market price fluctuations and potential brokerage costs. This can be an administrative inconvenience compared to the simplicity of an all-cash dividend landing directly in a brokerage account.

Furthermore, navigating the tax implications is crucial. While the cash component is designed to cover the standard 30% withholding for many, investor circumstances vary. Certain entities, like Mexican pension funds, are exempt from the withholding, while foreign residents may have different tax treatments under international treaties. Investors are ultimately responsible for ensuring their tax obligations related to the distribution are met correctly, a process that requires careful attention.

Ultimately, FIBRA Prologis is executing a sophisticated strategy that aims to strike a delicate balance. It continues to fulfill its mandate to distribute at least 95% of its taxable income to shareholders, a core requirement for Mexican FIBRAs, while simultaneously retaining the financial firepower needed to capitalize on a once-in-a-generation market opportunity. The message to investors is clear: the company is betting on itself, and it is inviting its shareholders to come along for the ride as it builds the logistical backbone of a new North American economic era.