Fibers are shaping up for a good closing of the year; earn 5.36%

Investment trusts in real estate (fibras) are shaping up to have a positive year-end.

The S&P/BMV Fibras sector index accumulates a yield of 5.36%, standing at 241.94 points until the close of this Tuesday, December 27. With this percentage, it has surpassed the S&P/BMV IPC, the main stock reference of the Mexican Stock Exchange, which has fallen 5.32% in the same period.

These real estate investment vehicles have been resilient to the adverse conditions that persist in global markets, derived from inflationary pressures and increases in the interest rate, which in Mexico reaches 10.5%, as well as fears of a global economic recession.

“The performance of fibers has been remarkable when compared to the performance of the stock market. Although the dividend yield (or profitability) is still below the returns generated by government debt,” said Eduardo López Ponce, analyst at Grupo Financiero Ve for More (Bx+).

Real estate trusts are often compared to the yield on 10-year Mexican government bonds, which hovers around 9.0 percent.

This comparison is made because the fibras are classified as hybrid instruments, as they share characteristics of variable income assets (shares) and fixed income (debt), given the returns they generate with the listing of their titles in the capital market and the distributions they make quarterly.

It is worth noting that the trusts that gained the most in the capital market were the hoteliers Fibra Inn (+65.29%) and Fibra Hotel (+55.79%), after maintaining a constant recovery in their occupancy rates.

But also Fibra Nova (+16.76%); Fibra Macquarie (+10.79%) and Fibra Uno (+10.35%) are positioned among the top five performers on the Stock Market so far in 2022.

These last three companies have diversified their portfolio of properties in sectors such as industrial, commercial and offices, mainly.

industrial, excel

The general director of the stock market analysis firm Signum Research, Armando Rodríguez, explained that most of the Fibras have registered a positive performance in their operations.

Those of the industrial sector stood out again, since it is experiencing a strong increase in the demand for spaces, especially on the northern border of the Mexican Republic, driven by the rearrangement in supply chains and by the T-MEC.

“The best dynamics have been in the industrial sector due to nearshoring trends, which have sparked demand from new international companies that are relocating their operations from China to Mexico to bring them closer to the United States market,” the manager stressed.

He also said that the hotel segment has been favored by the increase in tourism, both for pleasure and business. While shopping centers improved their dynamics due to the economic recovery, reporting occupancy rates of 90.25%, on average.

Finally, he said that the greatest lag continued in the office sector, whose occupancy has not yet escalated to the reports prior to the Covid-19 pandemic.

Although it has shown a slight recovery due to the gradual return of workers to these spaces, the hybrid work trends still weigh heavily. By 2023, occupancy levels are expected to climb to 74.5 percent.

Eduardo López agreed that next year will be more active for real estate trusts. He projected that the record employment in industrial fibers will continue. For hotels and shopping centers the dynamics will improve, but for office lessors the recovery will continue.

Meanwhile, to face inflationary challenges, companies could continue to increase rental prices.

For Armando Rodríguez, the challenges will be inflation and interest rates.

judith.santiago@eleconomista.mx