FIBRA Educa: Maximizing Returns as One of Mexico's Most Profitable REITs

FIBRA Educa stands out as one of the most profitable real estate trusts for investors in Mexico. With a portfolio of 65 properties spanning over 500,000 square meters, FIBRA Educa is the only trust in Mexico that manages educational centers, universities, and some office spaces. According to data from SiiLA FIBRA Analytics, FIBRA Educa generates higher rental income per square meter than the average of other real estate trusts in Mexico.

Every quarter, FIBRA Educa's rental income surpasses 1 billion pesos. While this revenue level places the trust in the sixth position in income among the 16 real estate trusts in Mexico, each square meter managed by FIBRA Educa generates proportionally higher income. Compared to FIBRA Uno (FUNO), Mexico's largest real estate trust in terms of market capitalization and gross leasable area, FIBRA Educa generates higher proportional income per square meter. While FUNO receives over 6 billion pesos quarterly for renting over 10 million square meters, FIBRA Educa receives 1 billion for renting around 500,000 square meters. This means that FIBRA Educa receives 2,000 pesos per square meter, while FUNO receives 600 pesos.

FIBRA Educa's income has consistently grown by more than 4% each quarter since its debut on the Mexican Stock Exchange in 2018. However, there are other reasons why it is one of the most profitable trusts for investors. Another factor that sets FIBRA Educa apart is the price appreciation of its Certificados Bursatiles Fiduciarios Inmobiliarios (CBFIs), which are essentially stock shares.

Over the past five years, the average price of CBFIs in the 16 Mexican real estate trusts has increased by nearly 20%. During the same period, the FIBRA Educa's CBFIs price has grown by over 160%, rising from 20 pesos per CBFI to 53.5 pesos per CBFI. FIBRA Educa has over 1.2 billion CBFI units, resulting in a market value exceeding 60 billion pesos, double its book value. This indicator reflects the confidence of stock market investors in FIBRA Educa. Furthermore, in addition to the appreciation of its shares over the past five years, FIBRA Educa has also distributed dividends of nearly 10 pesos per CBFI each quarter.

The data from FIBRA Analytics not only indicates that FIBRA Educa generates the highest proportional income per square meter among real estate trusts, but it also highlights the significant increase in the value of its CBFIs. Additionally, FIBRA Educa maintains a prudent level of indebtedness, with a debt ratio of 15% relative to the value of its assets, which is below the average of other real estate trusts at 30%.

To learn more about FIBRA Educa and real estate trusts in Mexico, visit FIBRA Analytics or contact us at contacto@siila.com.mx.