Fibra Uno Administracion SA de CV ((MX:FUNO11)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Fibra Uno Administracion SA de CV painted a generally positive picture, highlighting significant growth in revenue, net operating income (NOI), and leasing spreads. The company reported high occupancy rates across most segments and a reduction in interest expenses, contributing to the optimistic sentiment. However, challenges such as exchange rate fluctuations and increased operating expenses were also noted as areas of concern.
Revenue and NOI Growth
Fibra Uno reported a commendable increase in total revenues, which rose by MXN 20 million quarter-over-quarter to reach MXN 7.5 billion, marking a 5.1% increment year-over-year. Additionally, the net operating income saw a slight increase of MXN 2.9 million compared to the previous quarter, reaching MXN 5.58 billion.
High Occupancy Rates
The company’s operating portfolio maintained strong occupancy rates, with an overall occupancy of 95%. The industrial portfolio led with a 97.4% occupancy rate, followed by the retail portfolio at 93.6%, and the office portfolio at 83%.
Positive Leasing Spreads
Leasing spreads demonstrated robust performance, particularly in the industrial segment, which saw a growth of 16.8% in peso terms. The retail segment followed with a 6% increase, while the others segment and office segment grew by 5.3% and 1.3%, respectively.
Interest Expense Reduction
The company successfully reduced its net interest expense by MXN 45.8 million or 1.5% from the previous quarter. Year-over-year, the net interest expense saw a significant decrease of MXN 150 million or 5.4%.
AFFO and FFO Growth
Adjusted funds from operations (AFFO) increased by MXN 90.8 million or 3.9% compared to the second quarter of ’25. On a year-over-year basis, the AFFO grew by MXN 156.5 million or nearly 7%.
Exchange Rate Impact
The appreciation of the peso-dollar exchange rate negatively impacted U.S.-denominated rents and interest expense lines, posing a challenge for the company.
Retail Portfolio Performance
The retail portfolio recorded a 93.6% occupancy rate, slightly lower by 10 basis points compared to the previous quarter, indicating a minor dip in performance.
Increased Operating Expenses
Operating expenses rose by MXN 36 million or 3.7% from the second quarter of ’25, primarily due to increased costs from suppliers and services surpassing inflation.
Forward-Looking Guidance
Fibra Uno’s CEO, Mr. Andre El-Mann, expressed expectations for double-digit growth in key financial metrics, including total revenue, NOI, and effective payout per share by year-end. The company aims to achieve cost efficiencies and effective debt management to support this growth amidst challenges like contract revisions and inflation. The guidance also highlighted stable occupancy rates and significant projects like Mitikah and the internalization of management, set for January 2026, which are expected to bolster financial performance and strategic objectives.
In summary, Fibra Uno’s earnings call reflected a positive outlook with notable growth in revenue and NOI, supported by high occupancy rates and reduced interest expenses. While challenges such as exchange rate impacts and rising operating expenses were acknowledged, the company’s forward-looking guidance suggests a focus on sustaining growth and achieving strategic goals.