REITs, Key Players in Mexico's Industrial Real Estate Boom

Mexican Real Estate Investment Trusts or FIBRAs are investment instruments that facilitate and drive the development of the real estate sector in Mexico through the management and leasing of different types of properties, including industrial properties. In fact, FIBRAs manage one-fifth of the industrial square meters in Mexico's largest real estate markets: Mexico City, Monterrey, and Guanajuato. This includes over 320 properties covering more than 6.4 million square meters, according to SiiLA FIBRA Analytics.

Despite the massive amount of industrial space managed by FIBRAs in these regions, their proportion is relatively low. It is important to note that FIBRAs are regulated institutions, offering lower-risk investments with greater portfolio diversification. This ultimately leads to increased capitalization for investors.

In the past year alone, the average value of FIBRA's Real Estate Trust Securities (CBFIs for its acronym in Spanish) - the equivalent of stock shares - has increased by 13%. According to SiiLA, the combined value of FIBRA investments nationwide was nearly MXN 374 billion at the end of 2022. This is equivalent to half of Mexico's foreign direct investment during the same period.

The performance of FIBRAs reflects the market's confidence in these investment vehicles in a positive context. FIBRA Analytics data indicates that industrial properties managed by these types of trusts have occupancy rates close to 100% on average and are high-quality properties with an average size of 20,000 square meters, exceeding the national average size of 16,000 square meters for industrial warehouses. These characteristics indicate that FIBRA properties are in high demand and well-positioned in the real estate market, further increasing investor confidence in these investment instruments.

Due to their performance, investment in industrial spaces is becoming increasingly attractive for FIBRAs. FIBRA Monterrey, for example, recently announced the acquisition of 46 industrial properties comprising the Zeus Real Estate Portfolio for USD 662 million. This acquisition significantly increased the trust's industrial inventory from 76% to 89% of its total real estate portfolio. Additionally, FIBRAs that rent industrial parks and buildings (along with hotel trusts) are among those with the best performance over the past year, mainly due to the nearshoring trend towards Mexico. FIBRA Nova (+25.6%), FIBRA Uno (+11.5%), and FIBRA Prologis (+11%) are among the trust funds with industrial properties whose CBFIs had the best performance, according to FIBRA Analytics data.

Want to know more about FIBRAs or which ones to invest in? FIBRA Analytics is the tool you've been looking for! With real-time updates on stock prices, dividend yields, net asset value discounts, market margins, and more, you can dive deeper into the FIBRA of your choice and analyze it using different metrics to uncover historical data and emerging trends. Our platform offers a range of solutions for FIBRA investors. Don't wait any longer to make informed investment decisions! Contact us at contacto@siila.com.mx for further details.