Just a quick note about our post on November 2nd, in which we talked about Fibra Uno (FUNO). At that time, we mentioned to our readers that we believed the Mexican REIT offered value at low risk.
You can revisit our post here, but basically we thought that FUNO offered a cheap and less risky opportunity to someone who needs income.
The FED has become more dovish on interest rates in the US, and the Mexican Peso has strengthened, despite López-Obrador. FUNO is still buying its own shares, as a great way to increase returns for their investors (we were against most companies’ shares buyback over the last few years, but FUNO is different and we explained it in our post).
Besides, 2 new strategic alliances have been signed and FUNO acquired another 21% of Torre Mayor, bringing its stake in the most iconic building in Mexico to 70%, at a cash return of 8% per annum in USD.
Many people criticized our investment at the time because of the risks involved in investing in Mexico. According to some of them, we should have invested in the US. Well, the US markets have sold off since and Fibra Uno’s shares are up by more than 12%. On top of that, we got a 10% dividend return (approximately 2.5% per quarter), an investment in properties at half the price and we got the bonus of the Mexican peso, which got stronger. All in all, we have got ourselves a nice 20%+ return in USD in only 2 months.