FUNO to Invest MX$10 Billion Annually to Boost Real Estate Assets

Fibra Uno (FUNO), the largest real estate investment trust in Mexico and Latin America, announced at FUNO Day 2025 in New York that it plans to invest MX$10 billion (US$538.4 million) annually over the next five years. The MX$50 billion (US$2.6 billion) program aims to reinforce its industrial, retail, and office portfolios amid strong domestic consumption, rising 3PL demand, and continued e-commerce growth.

“Investor sentiment toward Mexico is highly positive. We are seeing macro stability, strong demand and an unprecedented opportunity to keep developing spaces that support the country’s growth,” said Gonzalo Robina, FUNO’s Deputy CEO.

A key highlight of the event was the progress of Fibra NEXT, the new industrial REIT that will consolidate FUNO’s industrial assets together with properties from its founding group. Once launched, NEXT is set to become one of the largest industrial landlords in Mexico and Latin America.

According to FUNO’s documentation, NEXT will integrate 203 properties totaling 8.1 million m² of GLA, with 97.9% occupancy and a 3.5-year WALT. It will also have exclusive access to a 13-million-m² landbank, giving it deep long-term growth potential.

Notably, 59% of NEXT’s GLA will be located in the Mexico City metro area—Mexico’s tightest and highest-rent industrial market. With vacancy at 2% and rents rising twice as fast as in other regions, NEXT is positioned to benefit directly from nearshoring-driven industrial demand.

FUNO also announced a MX$10 billion capital increase, including part of the Jupiter portfolio, which will further strengthen NEXT’s asset platform.

Retail Performance

Between 2019 and 2025, FUNO’s retail portfolio maintained 92% average occupancy. Leasing spreads reached 7% in pesos and 5% in dollars, bolstered by strong demand for experience-driven shopping centers and “life center” formats.

The Apolo Portfolio acquisition reshaped FUNO’s tenant mix, with food and entertainment tenants rising from 12–13% in 2019 to 35% in 2025, mirroring Mexico’s shift toward experiential retail.

Office Market Recovery

FUNO’s office portfolio continues to rebound from pandemic lows, reporting 187,000 m² of net absorption so far in 2025 and an 88% occupancy rate—outperforming Class A/A+ markets in Mexico City, Monterrey, and Guadalajara.

Availability in prime corridors is tightening as technology, financial, and global services firms expand their physical space. Landmark properties such as Torre Mayor, Torre Diana, Mitikah, and Torre Mexicana continue to attract top corporate tenants.

Financial Performance and Deleveraging Strategy

FUNO reported a 3Q25 cash distribution of MX$0.605 (US$0.03) per CBFI, totaling MX$2.305 billion (US$124.07 million), fully funded by fiscal results.
As of September 2025, the REIT managed 586 properties totaling 11.1 million m² of GLA, with consolidated occupancy at 95%.

The trust is also advancing an organic deleveraging plan, aiming to reduce its loan-to-value ratio from 38% to 33% by 2030, keep short-term maturities below 5%, and increase controlling FFO per CBFI by up to 96% under its “full-potential” scenario. Following the refinancing of Apolo-related debt and an optimized maturity schedule, FUNO’s financial position has strengthened considerably.

Outlook 2026–2030
In its base-case scenario for 2030, FUNO projects 46% NOI growth, 92% FFO growth, and an increase in controlling FFO per CBFI from MX$2.52 to MX$4.45. Its portfolio would expand to 13.7 million m² of GLA while LTV falls to 33%. Under its full-potential scenario, expectations are even stronger: 86.9% NOI growth, 153% FFO growth, 16.9 million m² of GLA, and controlling FFO per CBFI rising to MX$4.93