Fibra UNO

Fibra UNO reported total revenue up MXN 348 million, or 4.6%, versus the prior quarter, driven by occupancy gains, inflation-linked rent increases, and renewals, partly offset by peso appreciation. NOI rose MXN 498.3 million, or 8.9%, to MXN 6.079 billion, with NOI margin at 85.1% of rental revenue and 77.2% of total revenue. FFO controlled by FUNO increased MXN 157.4 million, or 6.6%, to MXN 2.55 billion, and adjusted FFO increased MXN 121.1 million, or 5%, to MXN 2.55 billion; FFO per average CBFI was MXN 0.6690 and AFFO per average CBFI was MXN 0.6712. Total debt was MXN 152 billion versus MXN 147 billion in the prior quarter, total equity increased to almost MXN 56 billion higher, and the company closed the quarter with 3.810 billion CBFIs outstanding. Looking ahead, management said MXN 2 billion of CapEx is a reasonable recurring level for 2026, while noting that this excludes new developments and that the full impact of the Fibra Next consolidation will be clearer in Q1 2026.

André Arazi framed 2025 as a year of major structural change, emphasizing the industrial portfolio drop-down, the completion of Fibra Next actions, the internalization process, and liability management. His tone was upbeat and forward-looking, saying the company is excited about the post-restructuring future and expects shareholders to see the benefits more clearly in 2026. He also said management wants to close the gap between NAV and the share price, because that would unlock more opportunities.

Jorge Pigeon Solórzano focused on the quarter’s operating improvement and the mechanics of the new structure. He pointed to 95.5% occupancy, NOI of MXN 6.079 billion, FFO of MXN 2.55 billion, and AFFO of MXN 2.55 billion, while explaining that higher operating costs, debt consolidation, and exchange-rate effects pressured some lines. On leverage, he said the company feels comfortable below 40% LTV, with a sweet spot around 35% to 40%, and that maintaining investment-grade ratings is the goal; he also cited stable outlooks from Moody’s and Fitch. He noted the company expects about MXN 2 billion of CapEx in a normal year and said internalization should save MXN 400 million to MXN 500 million this year.

Analysts focused on leverage, post-restructuring targets, CapEx, nonrecurring operating expenses, and the outlook for retail and office. Management said the industrial carve-out and added equity from the market should support deleveraging, and that inflation-linked rents plus future equity issuances at Fibra Next could reduce leverage further; they do not plan an additional deleveraging strategy beyond maintaining metrics compatible with investment grade. On CapEx, management said MXN 2 billion is a reasonable annual level for 2026, excluding new developments. They also said retail looks attractive in Mexico, office occupancy is improving and could support higher rents once it reaches about 85%, and variable retail rents are already contributing through revised lease structures.