Fibra MTY Secures US$215 million Credit, S&P Affirms BBB-

Fibra MTY, Mexico’s first real estate investment trust that is 100% internally managed and advised, announced it successfully executed a syndicated credit agreement with a four-bank group led by Banorte for a principal amount of up to US$215 million. The facility was 1.15x oversubscribed and includes an accordion option to increase the amount by US$50 million, taking total capacity to US$265 million.

The financing is unsecured, structured with a single bullet principal payment at maturity, and carries a five-year tenor from signing. It also includes up to two one-year extension options, potentially lengthening the maturity profile to seven years, subject to lender approval. The loan accrues interest at one-month SOFR plus a variable spread of 1.55% to 1.65%, determined by Fibra MTY’s Liabilities-to-Assets level.

Fibra MTY says the spread would only step up from 155 to 165 basis points if the Liabilities-to-Assets ratio exceeds 40%, which would imply leverage above its internal target of 35%. Management expects the spread to remain recurrently at 155 basis points. As of the announcement date, the trust stated it has not drawn on the facility.

The company says that the new line supports its objective of maintaining a prudent capital structure, preserving financial flexibility, and keeping a competitive cost of debt. Strategically, it provides advance access to liquidity to extend the trust’s debt maturity profile.

S&P Assigns BBB- Global Corporate Rating With Stable Outlook

On Feb. 4, S&P Global Ratings published rating actions on Fibra MTY highlighting a solid asset profile backed by well-located properties, high occupancy, and long lease terms. S&P notes that roughly 59% of rental income comes from properties in Mexico’s northern industrial markets, with the remaining 41% generated in the Central and Bajio regions. The portfolio mix also provides exposure to diversified end-markets such as autos and components (about 29% of revenue), consumer durables and apparel (13%), materials (12%), and capital goods (10%).

S&P emphasizes Fibra MTY’s weighted average lease term of about 4.9 years, occupancy above 95%, and the fact that about 85% of leases are US dollar-denominated, supporting cash-flow predictability. The agency also pointed to structural efficiency from full internalization and to the trust’s lease profile, with more than 90% of contracts structured as double- or triple-net leases.

At the same time, S&P flagged constraints including Fibra MTY’s midsize scale, some tenant concentration, and exposure to office rents. The agency notes that the top 10 tenants account for about 35% of rental income, higher than some higher-rated peers, although it believes tenant credit quality and long operating histories in Mexico partially mitigate this risk. As of September 2025, about 21% of rental income came from office and commercial assets; S&P expects Fibra MTY to reduce that exposure over the next 12 to 24 months through divestments and reinvestment into export-driven industrial and logistics facilities with US dollar leases.

In its base case, S&P expects Fibra MTY to sustain solid operating performance over the next two years, including occupancy above 95% and EBITDA margins above 84%. The agency’s assumptions point to adjusted net debt to EBITDA approaching 4.3x, interest coverage of 3.8x, and debt-to-capital of 26.5% by year-end 2026. The stable outlook reflects expectations for high renewal rates, broadly stable occupancy, and supportive long-term industrial real estate fundamentals, even as uncertainty remains around the USMCA review scheduled to conclude in mid-2026.

3Q25 Performance and Portfolio Actions

In 3Q25, Fibra MTY saw industrial expansion and made strategic divestments, MBN reports. The trust reported 15.6% YoY growth in total revenues, 17.4% growth in NOI, and a 17.0% rise in adjusted EBITDA, with NOI margins of 91.8% and adjusted EBITDA margins of 84.5%. During the quarter, Fibra MTY sold its Fortaleza office property in the State of Mexico for MX$360 million (US$19.5 million), acquired two newly built industrial facilities in Nuevo Leon for US$73.4 million, and purchased land in Cienega de Flores to expand an industrial asset with an investment of US$20.2 million.

By the end of September, Fibra MTY managed 119 properties (96 industrial, 17 office, and six retail), totaling 2.06 million m² of gross leasable area and 96% occupancy. It reported total assets of MX$42.6 billion and a debt ratio of 27.1%, in line with 2024. The trust also pointed to a pipeline exceeding US$500 million in stabilized industrial assets and improving ESG metrics, including a 74-point score in the 2025 GRESB assessment and 62 points in S&P Global’s Corporate Sustainability Assessment.