The vacancy in Funo’s portfolio continues, however, it has not prevented the trust from registering record figures during the last quarter of 2021.
The commercial, industrial and office portfolios fell by 1.5, 0.6 and 3.2%, respectively, during 4Q21 against the same period, but last year. In contrast, the NOI had an increase of 14.4% compared to 2019, a pre-pandemic year, and a cash flow 41.4% higher compared to the previous year.
“One of the key elements of our performance is that we are starting to reap the benefits of all the development that we have invested in over the last four or five years. Considering that we have lived through two years of an event that happens once in 100 years, such as the COVID-19 pandemic, our investment in development took a little longer to start generating, however, we are beginning to see the benefits,” he said. Andrés El-Mann, CEO of Funo, at the presentation of results at the Mexican Stock Exchange (BMV).
One of the elements that has also contributed to growth is the upward pressure on rents caused by the increase in construction costs. During the fourth quarter, the trust had an increase in total income from constant properties of 4.6% compared to the same quarter of the previous year.
“The segment with the highest increase is the industrial segment with 7.3%, followed by the commercial segment with 6.3%”, says the report; “The beginning of the recovery of variable rents, the positive leasing spreads and the leasing of properties in the stabilization stage helped the growth in income of the total portfolio”, adds the report.
The offices are the ones that continue with negative figures, registering a drop of 3%. In response, Funo continues with its reconversion strategy. At a press conference, Gonzalo Robina, deputy general director of the trust, explained that 120,000 square meters are being intervened in Guadalajara and CDMX to become hospitals and a couple of housing projects for sale.
In the annual count, the figures were also encouraging, since there was an operating profit of 16% more than in 2020 and 13.9% more income than the previous year, however, it registered a net profit (loss) of 4,010,004 against 13,959,234 of the last year.
