FIBRA Next: Is FUNO Using Its Industrial Spin-Off to Boost Market Value?

Despite securing regulatory approval, FUNO has decided to delay the IPO. The company postponed FIBRA Next’s launch until mid-to-late March, citing the uncertainty surrounding U.S. tariffs on Mexican exports. FUNO’s Deputy CEO, Gonzalo Robina, stated that the company is waiting for a more favorable market window.

However, beyond its official reasoning, FIBRA Next has already proven to be a key market driver for FUNO. Whether it’s a positive announcement or a setback, the stock price reacts. With the IPO still in limbo, speculation alone continues to move the market. FUNO has a clear strategy in play, but its endgame remains an open question. If FIBRA Next has influenced FUNO’s valuation before even existing as a publicly traded entity, does that indicate a straightforward restructuring—or a powerful market catalyst at work?

Today, FUNO’s CBFIs trade between 22-23 pesos, or 1.0-1.1 USD, far below their peak of nearly 32 pesos (1.5 USD) in February 2024 following the FIBRA Next announcement. Although they enjoyed their strongest rally in years from September 2023 to February 2024, the uptrend stalled in mid-2024, leading to a market correction. Over the past two years, from January 2023 to January 2025, FUNO’s CBFI value has declined by 14.8%.

But while FUNO’s stock has slid, the company hasn’t stood idle. Over the years, it has deployed various strategies to strengthen its market valuation, with strategic share buybacks being one of its most frequently used tools.

In March 2018, FUNO allocated 664.6 million pesos (approximately 32.3 million USD) to repurchase CBFIs following the sale of a property in Guadalajara. In an official statement, the company justified the buyback by stating its certificates were “significantly undervalued” and represented an “attractive investment opportunity.” More recently, in October 2024, FUNO canceled 66.9 million CBFIs, 52.8 million of which were acquired through its buyback fund. The move coincided with a 7.2% drop in FUNO’s stock—the largest decline since June 2024, when it fell 6.6%.

Stock buybacks serve multiple purposes: reducing shares in circulation, influencing valuation, and signaling market confidence. But FUNO hasn’t relied solely on repurchases. In recent years, it has taken a more structural approach to revaluing its assets—by segmenting its portfolio.

The spinoff of FUNO’s industrial assets to form FIBRA Next isn’t just a restructuring—it’s an isolation of its most profitable segment. With over 6 million square meters of industrial space, representing nearly 55% of its gross leasable area, FUNO is transferring highly sought-after assets to FIBRA Next. These properties boast an occupancy rate of 98.4%, significantly higher than the 83.5% in office properties and 92.7% in retail, according to SiiLA and company data.

Industrial lease rates have also outpaced other segments. In the third quarter of 2024, the most recent data available, lease renewals in the industrial sector rose 900 basis points (bps) in pesos and 1,560 bps in USD. In contrast, commercial leases saw increases of 800 and 750 bps, while office renewals lagged at 490 and -430 bps. Even when adjusted for inflation, the disparity remains: industrial lease growth hit 1,250 bps, compared to 440 bps in commercial and -740 bps in office space. In short, the industrial sector not only leads in occupancy but also in rental growth.

While the IPO remains in limbo, the market has already responded enthusiastically. FIBRA Next’s expected price range underscores its appeal. According to company documents, its target IPO price is set at 54 pesos (or 2.6 USD) per CBFI—substantially higher than FUNO’s current 1.0-1.1 USD range.

The spinoff is underway. The approval is secured, but the offering remains on hold. As FUNO carefully times the IPO’s launch, the market has already spoken—in every announcement, every fluctuation, and every expectation. The only question left is: how much longer will the market reflect the value of something that doesn’t yet exist?

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