Could you provide insight into the current landscape of Mexico’s FIBRA industry?

Our association serves as the unifying force for the 15 FIBRAs in Mexico, dedicated to advancing the FIBRA market nationally and internationally. By pooling resources, we aim to streamline communication, facilitating a cohesive strategy encompassing government relations, regulatory matters, and overall FIBRA-related issues. Collectively, our FIBRAs command approximately USD37.66 billion in total assets, comprising over 2,000 properties with a staggering 290.5 million sqft of rentable space. Spanning diverse sectors such as office spaces, industrial areas, hotels, retail outlets, educational spaces, and self-storage units, FIBRAs significantly contribute to Mexico’s employment landscape, directly and indirectly employing around 400,000 individuals across all 32 states.

ESG reporting is a cornerstone of our commitment; 14 out of 15 FIBRAs, alongside AMEFIBRA, have diligently presented ESG reports. This proactive stance underscores our aspiration to lead the real estate sphere by embracing and advocating for the principles of Environmental, Social, and Governance (ESG). Our involvement extends beyond mere compliance; we anticipate substantial returns on investment from this critical movement. Moreover, our pioneering efforts in issuing green bonds, amassing nearly USD657 million, further amplify our dedication to ESG principles. This not only aligns with our ESG commitment but also facilitates cost-saving avenues and improved financial rates. Additionally, three of our FIBRAs secured spots in S&P’s esteemed 2022 Sustainability Yearbook, a testament to their outstanding achievements, a source of immense pride for our association.

How do you perceive the evolution of the Mexican REIT market?

The Mexican REIT market, born in 2011, stands at the brink of its 10th year, signifying ongoing developmental strides. Drawing inspiration and imbibing best practices from the international REIT landscape, our focus remains on advancing corporate governance and fostering inclusive boards, championing gender equality. Our board proudly includes two female members, a testament to our commitment to fostering diversity and recognizing talent. We’re resolute in expanding this representation when warranted. Engaging the international investor community in FIBRA investments remains paramount. While our initial market outreach saw significant participation from institutional international investors, reengagement is now pivotal. FIBRA Day in New York City aims to educate potential investors, diversifying our investment sphere across different markets.

Enhancing disclosure practices remains a focal point; while our disclosures and reports are commendable, we aspire to elevate these standards further. Diversification across industries, geographies, and risks remains integral. Professionally managed, we offer an optimal avenue for real estate investment, boasting dividends, clear pathways, and robust professional disclosures. Foreseeing robust growth over the next decade, FIBRAs stand as a beacon of promise within the real estate landscape.

What advantages does the Mexican REIT or FIBRA market hold over other emerging markets?

Mexico stands on the precipice of significant opportunities, notably in nearshoring, emerging as a prime manufacturing hub adjacent to major markets. The industrial sector, marking historical achievements in recent years, heralds substantial growth potential, supported by ancillary developments. This unique advantage positions Mexico differently from other nations, unlocking unparalleled growth prospects that reverberate across all FIBRA segments.