Industrial REITs in Mexico: Outstanding Performance and CBFI Trends

In Mexico, the period spanning from the first quarter of 2018 to the third quarter of 2023 has witnessed remarkable performance, especially in the industrial real estate sector. Among the 16 Real Estate Investment Trusts (REITs), known as FIBRAs (Fideicomisos de Inversión en Bienes Raíces), operating in the country, three have stood out significantly in terms of the value of their Real Estate Trust Securities (CBFIs): FIBRA Prologis (FIBRAPL), FIBRA Macquaire (FIBRAMQ), and FIBRA Nova (FNOVA).

During this period, the average price of CBFIs experienced a solid increase of 17%. However, these three mentioned FIBRAs showcased exceptional performance. FIBRA Prologis' title grew an impressive 79%, followed by FIBRA Macquaire with a 55% increase, and FIBRA Nova with a notable uptick of 46%.

One of the primary reasons behind this growth lies in the increasing demand for industrial spaces, driven particularly by the relocation of foreign companies to Mexico. This phenomenon has been more evident in the northern markets of the country, where these FIBRAs have a significant portion of their inventory. Additionally, FIBRAs have capitalized on this surge through new acquisitions and the development of modern facilities, including the construction of new industrial warehouses.

Data compiled by SiiLA Market Analytics confirms that the year 2023 particularly stood out for these FIBRAs, as each recorded its best performance since inception. Each FIBRA has demonstrated a unique dynamic in its growth. To illustrate this, consider the example of the CBFI price of FIBRA Nova, which rose from $21.20 in the first quarter of 2021 to the current $28.50. In comparison, FIBRA Prologis has experienced an increase from $38.88 in the second quarter of 2019 to the current $61.56, while FIBRA Macquaire has gone from $25.06 in the third quarter of 2020 to the current $31.69.

FIBRAs play a crucial role in the development of the commercial real estate sector. For more information on this and other topics related to the sector, explore  SiiLA REsource or reach out to us at contacto@siila.com.mx.