FIBRA Monterrey has completed the stabilization phase of its second public offering of real estate investment trust certificates (CBFIs). The process concluded on April 12, 2024, when Citibanamex Casa de Bolsa, acting on behalf of the placing intermediaries, exercised the over-allotment option with the additional sale of 88,586,956 CBFIs. This action marked the end of the period designated to stabilize the CBFI prices following their initial issuance. During this period, measures were taken to ensure that the value of the CBFIs remained stable and to prevent significant fluctuations that could impact investors.

This step was taken under the auspices of a CBFI and long-term fiduciary securities (CEBUREs) placement program authorized by the National Banking and Securities Commission (CNBV), which allowed for raising up to 20 billion pesos (nearly 1,198.1 million dollars). With the over-allotment, the total CBFIs offered reached 644,587,077 units, increasing the total CBFIs in circulation to 2,458,917,920 once the liquidation process is completed. This control and adjustment of the available CBFIs are essential to maintain a more balanced and predictable market for investors.

By exercising the over-allotment option, more CBFIs were added to the market to balance supply and demand, helping to stabilize the prices of these certificates. Notably, in the recent issuance on March 15, 2024, 679,166,667 CBFIs were sold for 11.50 pesos (around 0.69 dollars) each. This event is part of a broader trend observed from 2015 to 2023, during which the price of FIBRA Monterrey's CBFIs has shown relative stability, with a slight decrease of 3% in their value, according to data from SiiLA FIBRA Analytics.

Over-allocating CBFIs during public offerings is a common strategy that protects the issuing company and investors from sudden price changes when there is a perceived shortage or surplus of the certificates offered. With this successful closure of the stabilization period, FIBRA Monterrey ensures a solid and stable entry of its CBFIs into the market, fostering confidence and security among investors.

This achievement occurs in a context where FIBRA Monterrey has demonstrated a remarkable ability to attract national and international capital. On March 15, 2024, the real estate investment trust (REIT or FIBRA) conducted a public offering in Mexico and a private international offering in the United States and other countries, achieving a demand exceeding the offer by 1.9 times. These operations reflected the market's confidence in FIBRA Monterrey and its growing presence as a recurrent issuer and leader in Mexico's capital markets.

FIBRA Monterrey's strategy focuses on acquiring and operating corporate and industrial properties in the Mexican Republic, emphasizing transparency and fiscal efficiency, allowing most of its income to be distributed directly to CBFI holders. This business structure has positioned FIBRA Monterrey as an attractive and practical investment vehicle in the dynamic commercial real estate market.

At the end of the last quarter of the previous year, the FIBRA demonstrated sustained growth and diversification in its portfolio, which includes 106 properties for industrial, office, and commercial use, covering more than 1.65 million square meters of gross leasable area and with an occupancy rate of 96.3%.

Additionally, with expansion projects totaling almost 100 million dollars, FIBRA Monterrey is preparing to significantly increase its presence in the industrial sector with new constructions that will expand its gross leasable area by more than 100,000 square meters. These figures demonstrate the company's financial and operational robustness and strategic vision in an increasingly competitive market.

For more details about FIBRAs' performance and current trends in Mexico's commercial real estate market, explore SiiLA REsource or contact us at contacto@siila.com.mx.