Monex Expects a Greater Recovery in FIBRAs Distributions

In an analysis, Roberto Solano, Manager of Stock Analysis at Monex Casa de Bolsa, explained that when comparing the projected distribution for 2022 with the historical year of 2019, during which the sector enjoyed a solid average occupancy rate of 95.5%, it becomes evident that the distributions would be similar but superior to those of 2021, which saw a 32.4% increase compared to 2020.

These estimations were based on the analysis of dividend yields from six out of the 16 REITs operating in Mexico, namely Funo, Terrafina, Prologis, Danhos, Nova, and Fmty. Roberto Solano emphasized the importance of considering the sector's recovery, which could contribute to a strong performance of the trusts this year, potentially matching the levels observed in 2019 before the onset of the Covid-19 pandemic.

"Investors have been comparing interest rate levels with REITs' dividend yields. While it remains a factor to be taken into account, it is crucial to highlight the sector's recovery following the critical moments of the pandemic, particularly in 2022. Additionally, we anticipate increased dynamism in 2022 and 2023. It is essential to consider the prospect of achieving a performance similar to or even better than that of 2019 in terms of portfolio operations," he added. 

This optimistic outlook is contingent upon the solid performance of the industrial sector and the continued recovery of the commercial sector over the past quarters. Furthermore, the office segment is expected to reach a turning point in terms of occupancy, potentially improving in the latter half of 2022.

Read the full article (in Spanish).