Fitch Publishes What Investors Want to Know: Mexican REITs (FIBRAs)

MONTERREY, Mexico--(BUSINESS WIRE)-- Fitch Ratings has published a new report covering a new investment alternative known as Fideicomiso de Inversion en Bienes Raices (FIBRAS). Over the past four years, several FIBRAs have issued debt or equity in capital markets in Mexico. A FIBRA is an investment trust vehicle under Mexican law dedicated to the acquisition and development of real estate assets in Mexico intended for leasing. FIBRAs are similar to real estate investment trusts (REITs) in the U.S. This vehicle provides an investment alternative to participate in the Mexican real estate sector through a public, established market.

'In recent years FIBRAs in Mexico have been very active, growing mostly through acquisitions; most of them have issued equity through CFBIs (Certificados Bursatiles Fiduciarios Inmobiliarios); only Fibra Uno has issued public debt in both international and domestic markets, but Fitch expects that other FIBRAs will follow in Fibra Uno's footsteps soon' , said Indalecio Riojas, Associate Director.

To add more insight to the credit quality and operating characteristics of this sector of the Mexican REIT industry, Fitch is publishing some of investors' most frequently asked questions in What Investors Want to Know: Mexican REITs (FIBRAs).

Key questions addressed in this report include:

--What are the main differences between a Mexican FIBRA and a U.S. REIT?

--What are the new regulations regarding FIBRAS in Mexico, and what happens in case a FIBRA does not comply with these requirements?

--How would FIBRAS cover debt service if they are obliged by law to distribute 95% of net taxable income?

--What qualitative factors are more important for FIBRAS' good credit quality, according to Fitch?

--What is the size of the Mexican REIT market, and who are the participants?

--How do FIBRAS fit within Mexican retail real estate dynamics? Has this been a successful business model?

--What is Fitch's view on such aspects as corporate governance, management approach and fee structure for FIBRAS?

--What are the sector-specific factors Fitch considers when analyzing FIBRAS' credit risk?

--What are the main similarities and differences between FIBRAS and REOCS?

--How do FIBRAS fit within the Mexican industrial real estate market?

--How does Fitch view the Mexican real estate market's portfolio liquidity and market depth?

--What is the sector's rental income risk profile?

The full report titled 'What Investors Want to Know: Mexican REITs (FIBRAs) ' is available on the Fitch web site at 'www.fitchratings.com' or by clicking on the link.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research: What Investors Want to Know: Mexican REITs (FIBRAs)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863440

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Fitch Ratings
Indalecio Riojas
Associate Director
+52 81 8399-9100
Fitch Mexico SA de CV
Prol. Alfonso Reyes 2612.
Monterrey, NL, MEXICO
or
Jose Vertiz
Director
+1-212-908-0641
or
Media Relations:
Elizabeth Fogerty, +1-212-908-0526
[email protected]

Source: Fitch Ratings

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