FIBRA Storage Changes to Internal Management

 According to the real estate firm, resolutions made during the Shareholders' Assembly on April 29, 2021 led to the termination of the management contract with Self Storage Management, an external company providing administrative services. "FIBRA Storage has signed a contract for the internalization of management services with the Irrevocable Administration Trust number CIB/2981, which will assume the role of internal administrator," stated the communication issued by FIBRA Storage. 

Consequently, they will initiate the administrative and operational transition to ensure the continuity of operations and transfer the operation of the U-Storage brand and its platform to the CIB/2981 Trust in a later phase. Marisol Huerta, currently an analyst at Grupo Financiero Ve por Más (Bx+), mentioned in an article that FIBRAs were created with a structure allowing for internal or external management, with external advisors receiving a fixed commission based on property value, as well as a variable commission for property administration. 

Significant challenges in the FIBRAs market: "Considering the market's preference for internally managed FIBRAs, the path to maximize investor performance is to become internally managed," stated an analysis by Sherry Cefali, a specialist at Duff & Phelps, cited in the report "Major Challenges in the FIBRAs Market." 

She added that "FIBRAs, with good corporate governance including internal management, should trade at a premium compared to their peers that use external advisors for management. 

Read the full article (in Spanish).