Fibra Danhos, an investment trust in commercial, office and mixed-use real estate, reported that its total income and net operating income (ION) reached 1,302.3 million pesos (mdp) and 1,050.3 mdp, respectively, in the first quarter of the year (1Q22), which translates into increases of 26.9% and 24.1%, compared to the same period last year (1Q21).

The issuer said in its report sent to the Mexican Stock Exchange (BMV) that the adjusted funds from operations (AFFO), which is a measure of the capacity to generate flows, totaled 841 million pesos and represents an AFFO for stock certificates real estate trustees (CBFI) with economic rights of 0.565 pesos, which meant an increase of 37.3% compared to 1Q 21.

Fibra Danhos explained that the quarter's AFFO was affected by the payment of property taxes and the payment of insurance premiums.

Check here: Behavior of FIBRAS during Covid-19

The properties operated by the real estate trust, including Torre Virreyes, closed the period with an occupancy rate for the same properties of 93.0%, while for total properties it registered 85.2%, which translated into a decrease of 0 and - 40 basis points compared to the first quarter of last year.

While the influx registered to total properties reached 20.8 million during the quarter, an increase of 84.4% compared to the previous year.

“The pandemic put us to the test once again with the wave of infections of the Omicron variant that was aggressive but short-lived. Fortunately, the influx of visitors recovered quickly and apparently the trend towards normalization in economic activities is sustainable”, Salvador Daniel Kabbaz Zaga, CEO of Fibra Danhos, commented in the report.

Of interest: Industrial construction registers the highest figure in recent years

The trust reported that in the quarter it renewed lease contracts for commercial premises, in an area of approximately 19,000 square meters with a "lease spread" of 2%.

“Danhos' results for the quarter were in line with our estimates, despite occupancy levels continuing to hover around 80%, we highlight the strong renewal rate of 97.9% during the quarter, but with leasing margins of 2 % only”, said Pablo Monsivais and Benjamin Theurer, strategists at Barclays.

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Original note