FIBRA Danhos to Enter Mexican Industrial Sector and Collaborate with FIBRA Hotel in 2024

FIBRA Danhos, the real estate investment trust, is set to forge ahead with its expansion plans 2024, unveiling two exciting projects in Mexico. One project will focus on capitalizing on supply chain relocation and the growing demand for industrial spaces due to nearshoring, while the other aims to tap into the thriving tourism sector in the southeastern region of Mexico.

In a strategic move, the real estate trust will venture into the industrial sector with properties in the State of Mexico, dedicated to handling logistics and product distribution in the Metropolitan Area of Mexico City. According to FIBRA Danhos, they have already secured a significant land reserve for their inaugural industrial project. Presently, they are developing approximately 100,000 square meters of gross leasable area (GLA) in Cuautitlan, representing half of the planned 200,000 square meters of GLA. The first phase is expected to be ready in the fourth quarter of 2024.

It's worth noting that, as of the third quarter of 2023, FIBRA Danhos reported a commercial and office property portfolio encompassing more than 982,500 square meters of GLA spread across Mexico City, the State of Mexico, and Puebla.

FIBRA Danhos' second project involves entering the luxury tourism sector through a 50-50 joint venture with FIBRA Hotel. Together, they will develop a high-end hotel in an exclusive location on the Yucatan Peninsula. According to FIBRA Danhos' latest financial report, the company has already acquired the land and development rights for the project.

To finance both projects in the industrial and hotel sectors, FIBRA Danhos plans to use a combination of debt and cash flow generation. Consequently, the company has established a fixed quarterly distribution policy of 0.45 pesos per stock or CBFI from the third quarter of 2023 through the second quarter of 2024. This decision provides investors with a clear view of scheduled dividend flows, with a total distribution of 2.10 pesos per CBFI for 2023 and 0.90 pesos per CBFI for the first half of 2024. These funds will enable FIBRA Danhos to execute its development plan, maintain a conservative capital structure, and diversify its portfolio.

Furthermore, following their successful issuance of the Sustainability-Linked Bond in August this year, FIBRA Danhos raised approximately 2,500 million pesos (around 139 USD million), payable over seven years at a fixed rate of 10.67%. These funds were used for refinancing liabilities and acquiring land with tourism and industrial potential.

According to SiiLA, FIBRA Danhos' expansion plans signify a substantial shift in their portfolio trend, which had remained largely unchanged since late 2022 and throughout 2023. This move underscores the trust's strategic adaptability to market opportunities.

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