WHAT ARE FIBRAs?

AMEFIBRA / KNOW ABOUT FIBRAS / WHAT ARE FIBRAs?

What are FIBRAs?

 

FIBRA is the equivalent to a REIT in Mexico or Mexican REITs. These instruments are listed in the Mexican Stock Exchange.

 

FIBRA is a vehicle focused both on the acquisition and construction of real estate that is rented in Mexico and the result obtained from its operating flow is distributed, through dividends, every quarter.

 

FIBRAs as an investment instrument focus on different segments of the real estate sector such as: offices, industrial, hotels, commercial (retail) and self-storage (storage), among others.

How does a FIBRA work?

como-funciona-una-fibra-amefibra

1 - INCOME

FIBRA receives income derived from the lease contrats of the properties.

2 - EXPENSE

Operation and property management expenses are paid.

3 - INTEREST

Interest is paid on debt (if any).

4 - MANTENANCE

Property maintenance and lease fees are paid.

5 - YIELDS

The remaining amount is distributed to CBFIs holders through dividends.

Advantages:

  • Conversion of low liquid physical goods to liquid and marketable securities.
  • Constant flow source via dividends.
  • High rates based on growth derived from surplus value, which exceeds the inflation rate.
  • Flexibility to adjust to the needs of both institutional and physical investors.
  • Trusts that ensure the permanence of the property managed and operated through a third party, as well as the destination of the flows.
  • Trust in the issuer that is a CPO holding company that complies with the regulations of the stock exchange.
  • Guarantee of negotiations carried out through transparent and efficient platforms.
  • It offers investors tax benefits since there is no ISR (Income Tax) for obtaining capital gains derived from the disposal of issued shares by Mexican companies in the stock exchange.
  • It is a smart investment, since in times marked by high inflation your fixed rate debt shields you from any risk.
  • You can invest in a wide portfolio of properties and not just one, which means that the risk of loss of capital is considerably reduced.
  • Ease of buying and selling: by listing on the stock market through “CBFIs” (Certificados Bursátiles Fiduciarios Inmobiliarios), or shares, FIBRAs avoid inconveniences present in the real estate market.
  • FIBRAs have very predictable, secure flows with no expiration date.
  • FIBRAs have an excellent track record in offering annual dividends.
  • The first CBFI allows you to own various properties.

 

Some types of Real Estate FIBRAs:

OFFICES

HOTELS

SCHOOLS

LAND

MALLS

AGRO-FOOD

INDUSTRIAL

SELF-STORAGE

MIXED USES