Fibra MTY is perfectly positioned to dominate industrial developments as the main real estate investor in the main hubs where nearshoring is occurring most. The listing will primarily focus on Mexico, but also involve an attempt to tap into the US capital markets through private offerings. Emerging Real Estate Digest has previously written about the untapped potential of Mexican REITs to raise capital in America, as well as their progress in aligning management structures to investors' interests. Mexico's REITs are largely uninvestable for American REIT investors due to these alignment mismatches, gaps in the regulatory framework, and taxation issues.
Fibras are Mexican Real Estate Trusts, similar to REITs in America. They were introduced in 2011 and have become a popular investment tool in Mexico representing around 4% of the total market cap of the Mexican stock exchange. They hold over 27 million square meters (i.e., 290 million square feet) of gross leasable area across more than 1,900 properties. The first was Fibra Uno, which remains the dominant player commanding around a 25% market share.
According to Bloomberg, Fibra MTY is preparing to issue more shares to fill its coffers to keep plowing money into building more industrial which so far has been a very good investment. Interestingly, the trust will issue shares in Mexico, but also in America and other countries through a private offering. The amounts targeted to be raised in the various geographic is not yet public nor was it mentioned in the filing documents with the Mexican authorities.
Fibra MTY invests in industrial properties and primarily in Monterrey which is how the name "MTY" was derived. It was founded in 2014 and has amassed a portfolio of over 300 properties with a GLA exceeding 8 million square meters (i.e., 86 million square feet). It has a market cap of around $1.3 billion, and its properties are concentrated in Monterrey, Guadalajara, and Tijuana.
Last year, Mexican companies tied to nearshoring raised around $1.2 billion through listing shares in the US and Mexico, a tripling of what was raised in 2022.
Fibra Next is preparing to launch an IPO in early 2024 in Mexico, which it failed to do in its first attempt which was canceled in 2023. Reportedly, concerns regarding the fiscal status of the Fibra led to the cancellation, and those matters seem to now be in order. It will focus on industrial developments and as a rollout of Fibra Uno's industrial properties will enter the world already with 7.5 million square meters (i.e., 86 million square feet) of stabilized industrial space. Some investors have asked if industrial is so hot then why is the largest and smartest real estate investor in the country divesting itself of the asset class?
