While for many companies in the world, inflation is a great threat, for Fibra Uno it is "their great ally" for their business, assured André El-Mann, general director of the real estate investment trust.

When presenting its financial report for the third quarter of the year (3Q22), it stated that inflation benefits them because all their lease contracts are indexed (or adjusted) for inflation. In Mexico, inflation closed at 8.53% in the first half of October.

Check here: Opportunities and risks for a sustained development of industrial investment

“Higher inflation means higher cash flows and higher value of our real estate assets. Additionally, significant increases in raw materials have raised replacement costs and comparable transactions also point to an increase in the absolute value of real estate assets,” explained the manager.

In this sense, he mentioned that with record rates in the National Consumer Price Index (INPC), which increased at an annual rate of 8.5%, they will close the year with a growth rate of 14.8% in their total income.

He highlighted that the third quarter of this year represents the 47th consecutive quarterly period in which they have delivered solid results, where revenues amount to 6,018.4 million pesos, equivalent to an increase of 11.8% compared to the same period of 2021, and 3.7 % compared to 2Q 2022.

While, compared to the first three months of the year, Fibra Uno's total income grew 3.36%.

Of interest: What to expect from the industrial real estate market in Mexico towards the end of the year?

On the Net Operating Income (NOI) side, it grew 9.8% between 3Q22 and 3Q21, while it advanced 5.2% when compared to the second quarter of the year and 3.66 percent.

Fibra Uno closed the third quarter with 11.2 million square meters of gross leasable area and a total of 638 properties, which in total had an average occupancy of 93.2%. It stands out that in September the Mitikah shopping center was inaugurated, which in total has 105 thousand m2 of profitable space.

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