Real estate investment trusts (REIT) have become an extraordinary investment opportunity because, especially in times of crisis, they are an investment opportunity.
A REIT operates or finances real estate that generates income. The idea behind them is to allow investors to buy shares in commercial real estate portfolios such as public and private infrastructure, industrial centers, apartment complexes, office buildings, warehouses, among others, something that was previously only allowed to high net worth individuals.
ADVANTAGES OF INVESTING IN REITS
REITs allow you to diversify your portfolio in a safe way, in addition to offering solid annual dividends, generating investment stability. Likewise, buying and selling them is very simple because most of them are traded on public exchanges, a feature that gives them an advantage over real estate by itself. Finally, investing in REITs does not generate taxes, anyone can do it and it has an easily identifiable price.
STOCK MARKET WINNERS
2020 was a difficult year for everyone due to the global pandemic, however, some sectors have benefited more than others.
The president of the Mexican Association of Real Estate REITs stated that the industrial sector has been the least hit by the health crisis, as it relies heavily on exports, the trade relationship with the United States and e-commerce.
Developers of industrial buildings point out that the competitiveness and strategic location that Mexico offers in the world, combine to offer companies more opportunities to reconfigure their new supply chain, affected since 2020 with the pandemic and that has complicated the manufacturing of automobiles, household appliances, electronics and computers, among others.
Since the signing of the T-MEC, as well as the trade war between the United States and China, open an area of opportunity in the industrial markets, mainly in the northwest of the country, as there has been a greater demand from Asian, American and European companies for expansions or new leases.
Likewise, the recovery of the U.S. economy, which achieved a 5.7% growth in 2021, boosts the export sector and with it the demand for border industrial spaces.
The increase in e-commerce adds to the list. Expectations for e-commerce growth in Mexico accelerated exponentially in 2020, this due to the fact that online sales grew 81% in 2020, with respect to 2019, to reach 316 billion pesos, which represented 9% of total retail sales.
"E-commerce has increased sharply because we were all forced to stay at home, and so e-commerce sales have skyrocketed. And certainly this has brought a need for distribution centers and manufacturing infrastructure," commented Amefibra's president.
Likewise, expectations for 2025 continue to grow. According to an analysis by Euromonitor, an international market trends consultancy, it is estimated that e-commerce sales will grow by nearly 250% by 2025.
As a result, retail, consumer, distribution and logistics firms have been able to expand their distribution portfolio. This dynamic is driving cities such as Monterrey, Tijuana and Ciudad Juarez, Toluca, Guadalajara and the CDMX, to detonate the leasing of industrial and logistics warehouses in a few months.
Fibra Uno, Fibra Prologis, Terrafina and Fibra Macquarie, Fibra Monterrey, as well as Fibra Upsite, are the main leasing companies.
Historically, REITs generate competitive returns, thanks to the high and consistent dividends they generate along with long-term appreciation. In addition, they are a great help to diversify the portfolio, as they help reduce risk and lower the portfolio's yield.
