High Yields in Mexico. The REITs That Have Distributed the Most Dividends up to Q2 2023

FIBRAs (or Mexican REITs) were introduced in Mexico to stimulate real estate investment and provide investors with a liquid and diversified way to tap into real estate market yields. Over the past year, these real estate trusts distributed more than 260 billion pesos (13.6 billion dollars) to their shareholders, according to data from SiiLA FIBRA Analytics.

These distributions or dividends represent proportional payments based on the revenues generated from the operation or use of the underlying real estate and infrastructure assets held by FIBRAs. These assets encompass a broad spectrum of properties, including industrial facilities (warehouses, distribution centers, and manufacturing sites), corporate spaces (offices and work areas), commercial premises (malls, plazas, and department stores), hotels, education properties (schools and universities), and mixed portfolios featuring various types of real estate holdings.

FIBRAs generate revenue through rents and other cash flows stemming from their underlying assets. After accounting for operational expenses and additional asset management and maintenance costs, FIBRAs are legally obligated (LIR, Article 187) to distribute at least 95% of their net income to investors. This distribution is channeled to investors in the form of dividends.

Distributions occur at least once a year, typically every quarter. The dividend amount varies based on the financial performance of assets and the broader market conditions. Additionally, on occasion and through agreement, payments can be reduced or suspended to reinvest in assets that fortify the trust's value.

Which REITs paid the highest dividends in the last year?

Annual distributions in relation to the share price (or CBFIs) of FIBRAs reflect the amount of money shareholders receive as a proportion of the share’s value they invest in. In simpler terms, it's a percentage that indicates how much money a shareholder receives in relation to their investment in the FIBRA. A higher percentage signifies greater returns on investment.

According to FIBRA Analytics, the trusts specializing in industrial and mixed assets yielded the highest returns at the end of the second quarter of 2023. FIBRA Uno, possessing a diverse portfolio and the largest gross leasable area in Mexico among FIBRAs, achieved the best results with annual distributions of 10.6% relative to the CBFI price.

Following FIBRA Uno, the trust with stronger performance was the administrator of Class A industrial properties, FIBRA Prologis (8.9%). Similarly, among the most profitable industrial trusts were FIBRA Nova (7.6%), FIBRA Macquarie (6.8%), FIBRA Monterrey (6.4%), FIBRA Terrafina (5.5%), and FIBRA Storage (2.1%).

Furthermore, FIBRA Danhos (6.8%) and FIBRA Plus (1.4%) stood out among trusts with mixed portfolios. Among the hotel-focused trusts, FIBRA Inn and FIBRA Hotel distributed 2.2% and 1.1% dividends, respectively. As for the educational asset specialist, FIBRA Educa, it disbursed dividends of 3.3%, while FIBRA Shop, dedicated to the retail sector, provided 1.1%.

Only three trusts—the mixed portfolio FIBRA HD (part of FIBRA Plus since 2021) and FIBRA Soma, as well as the industrial portfolio FIBRA Upsite—did not issue dividend payments.