Fibra UNO (FUNO 11) Q4 2024 earnings summary

Executive summary

• FY 2024 performance benefited from improving occupancy, positive leasing spreads and rent growth across retail, office and industrial portfolios.

• Long-term returns included NAV per CBFI growth at a 7.8% CAGR and NOI per CBFI growth at a 12.7% CAGR over 14 years.

• Mexican tax authorities confirmed criteria for the industrial-asset carve-out; internalization remained targeted for H1 2025, subject to market conditions.

Financial highlights

• Q4 revenue rose MXN 368 million, or 5.1% QoQ, to MXN 7.5 billion; NOI increased MXN 164.6 million, or 3% QoQ, to nearly MXN 5.6 billion.

• Q4 FUNO-controlled FFO and adjusted FFO rose MXN 230.8 million, or 10.1% QoQ, to just over MXN 2.5 billion; FFO and AFFO per CBFI were MXN 65.80.

• Q4 distribution totaled MXN 2.1 billion, or MXN 0.5513 per CBFI, with an 83.7% AFFO payout; FY 2024 distributions totaled MXN 8,192 million.

• FY 2024 net consolidated income was MXN 10,007 million, down from MXN 18,344 million in 2023; operating income rose to MXN 20,313 million from MXN 19,151 million.

• Year-end total assets were MXN 354,844 million; fair-value investment properties were MXN 327,173 million.

Outlook and guidance

• Internalization is expected in H1 2025 and may be coordinated with a potential NEXT IPO; management may proceed earlier if market conditions do not allow a simultaneous transaction.

• Office occupancy could approach 85%, potentially in the next quarter; rent increases will depend on broader market conditions.

• Long-term leverage objective after the carve-out is ~35% LTV and ~5.5x or lower net debt/EBITDA; NEXT is expected to provide immediate deleveraging.

• Potential asset sales cover ~100,000 sq m, with one targeted for Q2 2025 and three for Q3 2025; the pipeline may change.

• Management expects nearshoring to support demand across industrial, retail and office segments.