FUNO offered support and discounts for $973 million pesos
- FIBRA Uno (FUNO) reported a 16.8% decrease in Total Revenues for the second quarter of 2020, reaching 4,298.3 million pesos.
- The revenue decline was primarily due to the support provided to tenants during the Covid-19 crisis, totaling 973.2 million pesos, including rent discounts and provisions for future discounts.
FIBRA Uno (FUNO), the first and largest Real Estate Investment Trust (REIT) in Mexico, has released its second-quarter 2020 results. According to the company's statement, there was a 16.8% decrease in Total Revenues, reaching 4,298.3 million pesos (mdp), primarily due to the 973.2 million pesos provided as support to tenants during the Covid-19 crisis.
This marks the first significant revenue decline for the company. Jorge Pigeon, VP of Capital Markets and Investor Relations at FUNO, explained in a press conference that the revenue decrease resulted from rent discounts given to tenants during the three-month closure period, which are unlikely to be fully recovered.
The company has also negotiated rent deferrals with some tenants, allowing them to pay within a 6 to 12-month period, without exceeding the specified limit. The total cost of these measures amounts to 973.2 million pesos, which includes rent discounts and provisions for future discounts.
