fiber one (Funo), the first investment trust in commercial, industrial and office real estate, assured that the “pandemic is behind us”, however, it now faces challenges due to high inflation, which in Mexico was at levels of 7.72%. in the first fortnight of last April.
“Persistent high inflation poses a challenge for contract renewals, where we see increases of 8.7% in industrial and 6.3% in the commercial segment,” said André El-Mann, CEO of Funo.
Through the report published in the Mexican stock exchange (BMV), the real estate firm explained that the rent per square meter of constant properties increased 4.9% nominal; considering a weighted average inflation of 6.47%, equivalent to a reduction of 1.6% in real terms.
“The foregoing is mainly due to the fact that some contracts in dollars in the industrial segment have capped increases and to the loss of occupancy in the office segment, as well as to the lag in the increase in inflation,” he added.
Regarding its financial results for the first quarter of the year, Funo He said that operating funds (FFO) grew 15.8%, to 2,385 million pesos compared to the first quarter of 2021.
Its total income grew 8.9%, to 5,849 million pesos; meanwhile, the net operating income (NOI) increased 9.4%, to 4,616 million pesos, in the first quarter of 2022 compared to the same period of 2021.
The real estate trust stated that the growth was driven by the 1.1% growth in the gross leasable area (GLA) and by the 10 basis point increase in the occupancy rate, which ended at 92.6 percent.
fiber one said that at the end of the first quarter of 2022 its portfolio consisted of 10.9 million square meters of GLA and a total of 662 properties.
“The report of fiber one is positive, as it continues to show signs of significant recovery. The economic activation opens the possibility for it to recover ground in 2022. In the coming quarters it will be key to know the negotiation periods on the renewal of the ABR, which until now have a long period of duration”, said Roberto Solano, manager of Stock market analysis at Monex Casa de Bolsa.
The expert on Fibras issues said that although the office occupancy rate continues to be low, the perspective is that in the second half of the year a greater demand will be observed due to the imminent return to corporate offices by most companies. While the industrial real estate sector “would remain as an additive value and balance during 2022.”
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