Fibras endure their first big economic crisis

According to experts, real estate investment trusts (Fibras) have faced their first major economic crisis since their inception in Mexico almost 10 years ago. José Carlos Alemán, general director of SiiLA Mexico, explained that some of the issues that have supported Fibras as instruments preferred by institutional investors such as Afores and Funds, are their administration, the processes to make their information transparent and having homologated criteria. "This investment vehicle has definitely been tested, it is here to stay; we have expert players, professionals with internal administration who do things in a very careful way", commented Alemán, who considered that the addition of one more trust, Fibra Sites, from Telesites, focused on telecommunications, is a positive sign for these assets, which means that, far from expecting a contraction, it is more feasible to see the expansion of players and new sectors.

He said that Fibras are going to diversify and others will be born, in a similar way it happened in the US, where there are trusts specialized in cellular antennas, space rental to plant trees, to store energy, among others. Diego León, market analyst at Newmark Knight Frank (NKF), said that the diversification of portfolios, as well as the dynamism of the properties of the industrial sector, especially in logistics industrial parks, provide a good outlook for Fibras in general. According to data presented by NKF, the trusts total about 27.5 billion dollars in assets, with 23.8 billion square meters in their portfolios, which include about 1,750 properties. José Carlos Alemán considered that it is not possible to generalize the expectation about each one of the trusts going only by the price of their certificates, but that the whole portfolio of properties that support them should be analyzed; however, he considered that it will be a reference to add investors with a medium term perspective. Therefore, he considered that a good reference to analyze is the Fibras' acquisition plan, both in future purchases and in cancellations of acquisitions. "Fibras remain well placed (after the Covid-19 emergency); they were hurt and affected, but in the long term this is not going to change the business model; some properties will need to be reinvented," the executive predicted.

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