In This Article:
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Fibra Uno Administracion SA de CV (FBASF) reported a 10% year-over-year revenue growth in the retail segment, with a 190 basis points increase in occupancy.
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The office segment has surpassed pre-pandemic occupancy levels, reaching almost 84%, with a 7.1% increase in rents.
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The industrial segment achieved a 98% occupancy rate, with a 15.1% year-over-year rent growth and a 124.3% increase in revenues.
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The company successfully refinanced its 2026 bonds, with the next dollar amortization not due until 2030, improving its financial stability.
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Fibra Uno Administracion SA de CV (FBASF) has a strong leasing spread performance, with significant increases in all segments, indicating robust demand and effective management.
Negative Points
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The internalization process has faced delays, with ongoing tax and valuation implications, raising concerns about its timely completion.
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Property taxes have increased significantly, impacting operating expenses, and are expected to continue rising above inflation.
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The company's leverage remains relatively high, with net debt to EBITDA at 7 times, raising concerns about financial flexibility.
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Occupancy rates in northern markets, such as Nuevo Leon and Tamaulipas, have shown pressure, reflecting regional market challenges.
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The payout ratio for dividends was close to 85%, which may limit the company's ability to reinvest in growth or reduce debt.
Q & A Highlights
Q: What has been holding up the internalization process, and can you provide visibility on its conclusion? A: The internalization process has faced delays due to tax and valuation implications. However, we are confident it will be executed by the end of the first half of the year, as previously guided. (Respondent: Unidentified_3)
Q: With the recent tax authorization, how are you approaching the timeline for the carve-out of the industrial assets? A: We are pleased to have received the confirmation criteria for the carve-out. While there have been changes in the portfolio, we remain committed to the original plan and expect positive developments. (Respondent: Unidentified_3)
Q: Is the internalization likely to happen before the IPO of the next phase? A: Yes, the internalization can occur before the IPO. Although initially connected, the processes have been disconnected, and we aim to execute them simultaneously if market conditions allow. (Respondent: Unidentified_2)