Analysts Anticipate Stronger Foundations for FIBRAs
- Mexican real estate investment trusts (REITs), known as "fibras," experienced a combined revenue growth of 19.45% in the first semester of this year.
By: SiiLA News
The performance of real estate investment trusts (REITs), known as "FIBRAs," showcases solid growth despite current challenges. Between January and June of this year, the combined revenues of the 16 FIBRAs in the sector increased by 19.45%, reaching 29,804.89 million pesos.
Despite facing higher interest rates and persistent inflation, FIBRAs are strengthening their foundations, and a more robust operational performance is expected for the remainder of the year.
During the first semester, the revenues of the FIBRAs increased by 19.45% in total, reaching 29,804.89 million pesos. Additionally, the funds from operations (FFO) increased by 16.05%, reaching 12,017 million pesos, and the average occupancy was 91.70%, slightly lower than the 93.02% of the same period last year, excluding the hotel segment.
Positive reports on FIBRAs, particularly in the second quarter, have been reflected in their stock prices on the Mexican Stock Exchange, indicating a recovery trend.
Overall, the fundamentals of FIBRAs are strong, and their market performance has improved despite the increase in interest rates, according to Eduardo López, an analyst at Banco Ve Por Más (Bx+).
The S&P/BMV FIBRAS index has reduced its losses during the year and shows a 0.06% increase, in contrast to the performance of the S&P/BMV, which has declined by 8.70%. In the second semester, the FIBRAs index has increased by 5.36%, while the S&P/BMV IPC has risen by 2.34%.
In 2022, the FIBRAs that have performed well in the stock market include FIBRA Hotel, with a 47.37% increase in the price of its real estate trust certificates (CBFIs), followed by FIBRA Nova, which has increased by 20.04%. The third best-performing is FIBRA Inn, focused on the hotel sector, with a 14.65% increase, and Educa ranks fourth with 8.08%.
Experts anticipate more solid prospects for the second semester, as FIBRAs have largely ceased offering rent deferrals or discounts, measures taken during the pandemic to support tenants.
