FIBRA Danhos has reported progress on its Danhos Cuautitlan I Industrial Park in the Mexico City metropolitan area. The real estate investment trust recently announced that Building 1, with a gross leasable area (GLA) of 103,190 square meters, has been leased to a well-known global public company. As of April 2024, potential tenants included Mercado Libre, highlighting the high competitiveness of this property, which is scheduled for delivery in the third quarter of the year. Additionally, FIBRA Danhos has commenced construction of Building 2, which will be similar in size to Building 1 and is slated for completion by the end of the first quarter of 2025.

Situated in the heart of the Cuautitlan, Tultitlan, and Tepotzotlan (CTT) industrial submarket, one of the country's major logistics centers, and with quick access to Highway 57 and the Mexiquense Outer Loop, FIBRA Danhos's new properties are ideally suited for e-commerce, distribution, and light manufacturing.

In keeping with the company's commitment to environmental and social responsibility, the project will feature LEED certification, incorporating solar panels to enhance the use of renewable energies and advanced systems to capture and reuse rainwater. The project also anticipates significant job creation and improvements to local infrastructure, including street paving and upgrades to public lighting, in collaboration with municipal authorities.

It's important to note that the Cuautitlan Park development is the first industrial project spearheaded by the company led by David Daniel Kabbaz Chiver. The project will have two development phases (Buildings 1 and 2) with approximately 200,000 square meters of Class A GLA.

Beyond its industrial development, FIBRA Danhos is a company focused on the retail and office segments, which include mixed-use buildings. According to data from the trust and SiiLA FIBRA Analytics, FIBRA Danhos ended the third quarter of 2024 with a portfolio of 15 commercial and corporate properties in operation, with a GLA of roughly 940,000 square meters, excluding half of the GLA of Parque Tepeyac, which belongs to a private co-investor.

Over the past three years, the company's GLA has grown by 5%, an addition of approximately 47,000 square meters. This context highlights the substantial impact of the trust's industrial development, as the combined GLA of the two phases represents a nearly 21% expansion of the company's current operational portfolio.

Financial Strength: The Bedrock of FIBRA Danhos's Investment Potential

FIBRA Danhos's financial situation stands out for its robustness and strategic capacity to drive expansion and ongoing development. Between the first quarter of 2023 and 2024, the company's total revenues grew by 8.4%, and its EBITDA, which represents earnings before interest, taxes, depreciation, and amortization, increased by 9.4%.

These indicators reflect sufficient growth for future investments, bolstered by a 38.7% increase in liquidity over the last year, limiting its need to incur new debt, and a moderate level of indebtedness, mitigating insolvency risks and enhancing the company's operational flexibility. As of March this year, the trust's debt amounted to 11.1% of its total asset value, indicating a substantial borrowing margin to fund new projects without compromising its financial stability.

In addition to financial stability, a key aspect of FIBRA Danhos's future investments is the balance of its dividend distribution policy. The company adjusts its distributions each quarter to balance investor benefits with capital retentions to finance ongoing development and portfolio expansion. For instance, in the first three months of 2024, the trust distributed 75.4% of its adjusted funds from operations (AFFO), a decrease from the 98.7% observed a year earlier, indicating a more conservative strategy in managing its financial resources to strengthen its capital base for future or current investments.

Careful planning and efficient resource management ensure that FIBHA Danhos remains a prominent player in the market, capable of adapting and thriving in an ever-evolving business environment.

For more details on the performance of FIBRAs in Mexico, visit SiiLA REsource or contact us at contacto@siila.com.mx.