FIBRA Educa, Mexico's first educational real estate investment trust, has acquired a 2,346-square-meter property in Toluca, State of Mexico, dedicated to the educational sector. According to the trust, the lease agreement for the property began on May 9, the day the property was acquired. It is initially set for a mandatory term of 15 years, extendable for similar periods at the tenant's discretion.

FIBRA Educa also noted that the property has an estimated yield (cap rate) of 10.40% and a net operating income (NOI) of 90.10%. This suggests the investment could generate stable and attractive long-term financial returns for the trust's investors.

The investment, whose value was not disclosed, included VAT on construction and property transfer costs and was financed using the trust's resources.

It is essential to highlight that, due to the type of contracts the trust holds, with a mandatory initial term of 15 years, the remaining term of these contracts ranges from nine to 15 years as of the date of this publication. This contractual term is one of the longest among the 16 publicly traded trusts in Mexico, which results in an occupancy rate of 100% in addition to income stability. According to SiiLA FIBRA Analytics and company data, as of the first quarter of this year, FIBRA Educa's properties were leased under 20 contracts with six tenants and their related parties, all controlled by Nacer-Global, the company that formed the trust in 2018.

The Expansion of FIBRA Educa

The recent transaction adds to the company's portfolio of 66 properties, including 26 educational properties, 35 learning centers, and five offices, encompassing a total gross leasable area (GLA) of 542,235 square meters across 20 Mexican states.

According to SiiLA, this is the trust's first acquisition since the fourth quarter of 2023, when it purchased an educational property with a GLA of 2,255 square meters in Veracruz. Before that purchase, there were 13 acquisitions between 2019 and 2022 that added 185,778 square meters to its initial portfolio.

The 15 properties acquired by FIBRA Educa since its inception in 2018, when it began operations with 52 properties, have significantly contributed over 188,000 square meters to its portfolio, representing a robust growth of 53%.

The company's recent transaction reflects its solid financial health. Despite challenges such as damages caused by Hurricane Otis, which resulted in a temporary suspension of rental income from two properties in Acapulco, Guerrero, FIBRA Educa has demonstrated financial resilience. The trust's management has maintained adequate liquidity and the ability to cover financial commitments, evidenced by a 157.61% increase in yields from legally permitted investments (LISR) and a significant 81.72% decrease in the cost of financing amortization compared to the first quarter of 2023.

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