Invest in Fibra Mty

How do you build your wealth with Mexican REITs?

The main yield source for Mexican REITs comes from cash distributions, it is estimated that 80% of the total yield will be through cash distributions in the long run.

Appreciation yield is generated only on the sale of the certificate, in the meantime it is considered an unrealized gain or loss. It is important to note that in the case of Mexican REITs this yield is not taxed.

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How to invest in Fibra Mty?

In order to invest in Fibra Mty securities, first you need to open an account with the brokerage firm of your choice. Before doing so, we highly recommend you review and compare all the possible options regarding commissions, minimum opening deposit, and the different tools offered to ease the trading of investment instruments.

Once you have opened your brokerage account, the next step is to add funds. This will get you started with the trading of investment instruments.

After you have added funds to your account, you may start purchasing Fibra Mty’s certificates. There are two ways to do so:

i) Through a purchase order with your Broker or Agent
ii) Directly from your online account (it is worth noting that only some brokerage firms provide this feature, make sure you understand the platform before making your first transaction).

Holding Fibra Mty’s certificates entitles you to recurring cash distributions, which are transferred directly to your investment account. The funds you receive may be used to acquire more certificates and grow your earnings, or you can cash them out according to your needs.

FAQs

Simply put, it is an investment instrument that acquires and manages properties on a large scale in different sectors such as office buildings, industrial facilities, shopping malls, hotels, among others. The properties are managed by a professional team that is responsible for operating and improving the properties to satisfy the needs of its tenants and generate value and returns for its investors.

Mexican REITs are similar to U.S. REITs and share the features of both fixed income and equity securities but can offer more attractive returns under relatively low-risk levels compared to other investment options in the market.

Since Mexican REITs are listed on the Mexican Stock Exchange, the investing public can purchase securities through any brokerage firm that is registered and approved by Mexico’s banking and securities regulator.

One of the greatest benefits for investors is that there are regulatory bodies who constantly review Fibra Mty's management and decision making, among them are: the Mexican Antitrust Commission (Comisión Federal de Competencia Económica – COFECE), the Mexican Tax Administration Service (Servicio de Atención Tributaria – SAT), the Bank of Mexico and Mexico’s banking and securities regulator (Comisión Nacional Bancaria y de Valores – CNBV), always looking out for the best interests of the investing public.

CBFIs are basically the same as stocks. Whoever holds a CBFI is considered an investor and equity partner of the Mexican REIT and therefore has different rights, for example, to receive recurring distributions from the Trust.

Fibra Mty’s certificates are listed on the Mexican Stock Exchange since 2014 under ticker symbol “FMTY-14”.

As a security listed on the Mexican Stock Exchange, certificates are held by INDEVAL, Mexico’s central securities depository, who is in charge of keeping track of who owns each certificate.
One of the greatest advantages of investing in publicly traded Mexican REITs, i.e., those listed on the Mexican Stock Market, is that the prices can be consulted via a simple web search. Through your brokerage firm you can monitor the price of Fibra Mty’s certificates and all the Mexican REITs listed in the market.
Certificate prices fluctuate for different reasons, such as supply and demand. These depend on factors such as growth and profitability expectations for the REIT, the sector in which they invest, as well as innovation and competition. They also depend on Mexico’s economic outlook both domestically and internationally. All this is not only determined by economic factors, but also by natural disasters, political developments, or health contingencies.

There are two main yield sources for Mexican REITs: 1) Cash distribution yield, which is the result of dividing all cash distributions received by the purchase price; and, 2) certificate appreciation yield, which is calculated by dividing the current or sale price by the purchase price.

Mexican REITs are long-term investment vehicles and are distinguished by the fact that approximately 80% of the total yield comes from cash distributions in the long run. It is worth noting that appreciation yield is generated only upon sale.

In accordance with articles 187 and 188 of the Mexican Income Tax Law, there are different tax effects applicable to the return on investments in Mexican REITs:

Cash distributions that are classified as “Taxable Income” will be taxed according to the withholding rate applicable to each investor. Your broker will withhold the applicable tax and provide you with a withholding certificate at the end of the year.

Cash distributions that are categorized as “Capital Reimbursement” will be taxed at 0%.

Certificate appreciation (sales price – purchase price) will be taxed at 0%.

There is no minimum investment amount in Fibra Mty, you can invest from 1 certificate. However, brokerage firms have different requirements for minimum amounts to open an investment account.
There is no minimum investment time, you can buy and sell your certificates on the same day. This is another great benefit of the securities traded in the Stock Market, there are many daily transactions.
No, Fibra Mty has properties throughout Mexico.
Fibra Mty does not charge commissions for buying certificates. However, brokerage firms have different commission schemes, it is important to know and compare these commissions between brokerage firms.
The only requirement is to have an investment contract with a brokerage firm approved by the Mexico’s banking and securities regulator.
Each time Fibra Mty makes a cash distribution, a transfer is made directly to your investment account at your brokerage firm. You, as an investor, decide what to do with the money, you can buy more Fibra Mty’s certificates, invest it in another investment instrument, or you can cash it out for your personal use.
Fibra MTY’s certificates are denominated in MXP, non-redeemable, with no par value, and can be issued, paid for, and acquired by both domestic and foreign investors who have an investment contract with an authorized institution in Mexico.
Fibra MTY’s certificates are currently covered by Grupo Financiero Actinver, Apalache Análisis, BBVA Bancomer, BTG Pactual, Intercam, Monex, and Signum Research.

Glossary

Term Definition Caracter
Real Estate Assets Means any right related to real estate, including ownership rights, trustee rights, rights to receive any income from the leasing of real estate or financing related to the acquisition or construction of the real estate in which the Trust invests either directly or through the Property Trusts. R
Internal Manager Means Administrador Fibra MTY, S.C. I
AFFO Acronym for “adjusted funds from operation”. A
Initial Contribution Means the amount of Ps.1,000.0 that the Trustor delivered to the Trustee of Fibra Mty as an initial contribution in accordance with the terms of the Trust Agreement. I
CBFIs Holders Meeting Means a Meeting of Holders of our CBFIs. C
External Auditor Refers to the External Auditor engaged by the Trustee in accordance with the instructions of the Internal Manager, with prior approval of the Audit Committee. E
Governmental Authority Means any country, government, dependence, agency, municipality, or any subdivision thereof (including those of Mexico, the United States, and any other country), or any other governmental entity with administrative, executive, legislative, judicial, monetary, or regulatory powers. G
BMV Refers to the Mexican Stock Exchange using its acronym in Spanish (Bolsa Mexicana de Valores, S.A.B. de C.V.) B
CBFIs Spanish acronym for real estate securities (Certificados Bursátiles Fiduciarios Inmobiliarios), issued by the Trustee in pursuance to the Trust Agreement and the provisions established by the Mexican Stock Market Law. C
CBRE Refers to any company of CBRE Group, Inc., advisory firm in the real estate market. C
Regulations Applicable to Issuers Refers to the General Provisions Applicable to Securities Issuers and Other Stock Market Participants, published in the Official Gazette of the Federation (Diario Oficial de la Federación) on March 19, 2003, drafted by Mexico’s banking and securities regulator, as amended or supplemented from time to time. R
CNBV Refers to the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores – CNBV). C
Audit Committee Refers to the Audit Committee that is integrated by at least three independent members, appointed by the Technical Committee, which has the powers described in the “Committees” section. A
Indebtedness Committee Refers to the Indebtedness Committee that is formed by at least three independent members, the majority of which must be appointed by the Technical Committee and have the powers set forth in the “Committees” section. I
Investment Committee Means the Investment Committee which is formed by at least three members appointed by the Technical Committee, the majority of which shall be Independent and shall have the powers set forth in the “Committees” section. I
Nominating Committee Refers to the Nominating Committee that is formed by at least three members, appointed by the Technical Committee, which shall be composed of at least two Independent Members and the Chairman of the Technical Committee. N
Corporate Practices Committee Refers to the Corporate Practices Committee, formed by at least three Independent Members appointed by the Technical Committee, which has the faculties described in the “Committees” section. C
Management Agreement Means the agreement entered into between the Trustee and the Internal Manager for the latter to perform certain management services on our behalf. M
Trust Agreement or Fibra Mty Means the Irrevocable Trust Agreement No. 2157 dated July 25, 2014, signed between Fibra Mty, S.A.P.I. de C.V., as Trustor, Banco Invex, S.A., Institución de Banca Múltiple, Invex Grupo Financiero, Fiduciario, as Trustee, and Monex Grupo Financiero, as Common Representative, which was fully amended on December 1, 2014. T
Lease Agreements Means the lease agreements that have been entered into in connection with Fibra Mty's Portfolio. L
Trust Accounts Means the bank accounts held and to be held by the Trustee during the term of the Trust Agreement, in compliance with the Purposes of the Trust and as instructed from time to time by the Internal Manager. T
Desarrollos Delta Refers to the companies in which the Garza Santos family holds a majority interest and acts as the main contributor to Fibra Mty’s initial portfolio, among which are the following: Bufete Inmobiliario Gala, S.A. de C.V., Buro Inmobiliario Imagen, S.A. de C.V., Buro Panamericano de Inmuebles, S.A., Consorcio Inmobiliaria América, S.A., Delta Inmobiliaria y Valores, S.A. de C.V., Inmobiliaria Capricornio, S.A. de C.V., Inmobiliaria Missouri, S.A. de C.V., Inmobiliaria Papaluapan, S.A. de C.V., Inmobiliaria Río Pilón, S.A. de C.V., Inmobiliaria San Arturo, S.A. de C.V., Inmobiliaria San Cirilo, S.A. de C.V., Inmobiliaria Sultana del Norte, S.A. de C.V., Inmobiliaria Tamazunchale, S.A. de C.V., and Promotora Inmobiliaria Express, S.A. D
Divestment Means any divestment carried out by the Internal Manager, with the prior approval of Fibra Mty’s Technical Committee or CBFI Holders, which may include, without limitation, alienations, dispositions, loans, market transactions and others. D
Distributions Refers to the distributions made by the Trustee to the CBFI holders equivalent to at least 95% of the accounting profit of the preceding fiscal year generated by the Trust’s Real Estate Assets. D
Issuance Means each issuance of CBFIs, including the initial public offering and any issuance of additional CBFIs. I
Emisnet Refers to the data transmission network developed by the Mexican Stock Exchange, which is used by the issuers to submit their relevant events and financial reports to the general public and competent regulators. E
USA Means the United States of America. U
FFO Acronym for “funds from operation”. F
Mexican REIT or FIBRA Refers to a Real Estate Investment Trust established in Mexico pursuant to Articles 187 and 188 of the Mexican Income Tax Law. M
Trustor Refers to Fibra MTY, S.A.P.I. de C.V. T
Trustee Refers to Banco INVEX, S.A., Institución de Banca Múltiple, INVEX Grupo Financiero, Fiduciario, acting as trustee of the Trust Agreement. T
Trustee of the Property Trusts Means Banco Monex, S.A., Institución de Banca Múltiple, Monex Grupo Financiero, acting as Trustee of the Property Trusts or the entity that substitutes it in accordance with the Property Trusts. T
Purposes of the Trust Means the purposes of the trust as set forth in the Trust Agreement, including the acquisition and/or development of real property in Mexico that is intended for lease, the entitlement to receive income from the lease of such property, as well as granting financing for such purposes with a mortgage guarantee of the leased property, in any case directly or through trusts (including, without limitation, through Property Trusts), in accordance with Articles 187, 188 and other applicable articles of the Mexican Income Tax Law. P
Trust Expenses Means the costs, expenses, and liabilities incurred in or arising from the operation and activities of the Trust, as determined by the Internal Manager and notified to the Trustee. T
GSA Means Green Street Advisors, Inc. G
Garza Santos Siblings Refers to Alberto Garza Santos, David Garza Santos, Marcela Garza Santos, and Yolanda Garza Santos. G
IFRS Means the International Financial Reporting Standards issued by the International Accounting Standards Board. I
Inmuebles Significa cualquier bien inmueble o derecho real sobre los mismos. I
Inmuebles Corporativos Significa los bienes inmuebles destinados por sus arrendatarios a propósitos operacionales de su organización, entre las cuales se encuentran oficinas centrales, oficinas corporativas, oficinas operativas y de soporte, oficinas de representación, sucursales, centros de distribución o manufactura e inclusive, inmuebles que tengan por objetivo desempeñar alguna función central de un determinado negocio. I
Net Operating Income (NOI) Means the result of subtracting the following items from total revenue: (i) administration and maintenance expenses of our properties, (ii) property tax, and (iii) insurance. N
Investments Means any investment made by the Trust in Real Estate Assets or in any Property Trust whose assets are comprised of Real Estate Assets (including through the acquisition of trust rights, trust certificates, or other debt securities or securities issued by such Property Trusts). I
ISR Spanish acronym for Income Tax. I
IVA Spanish acronym for Value-Added Tax. I
LGTOC Spanish acronym for General Law of Securities and Credit Transactions (Ley General de Títulos y Operaciones de Crédito). L
Leverage Guidelines Encompasses the guidelines approved by the Technical Committee pursuant to which the Trust may incur or undertake indebtedness at any time and for any reason. L
Investment Guidelines Refers to the guidelines approved by the Technical Committee in accordance to which the Trust may make investments to accomplish the Purposes of the Trust. I
LISR Spanish acronym for the Mexican Income Tax Law (Ley del Impuesto sobre la Renta). L
LMV Spanish acronym for the Mexican Stock Market Law (Ley del Mercado de Valores). L
México Means the United Mexican States. M
Independent Member Refers to any person who meets the requirements established by the Mexican Stock Market Law to qualify as independent in relation to each of the Trustee, the Trustor, the Internal Manager, and any Property Trust, who may be appointed as such at the moment of his or her appointment as a member of the Technical Committee. I
Trust Patrimony Means the sum of the following assets: (a) the Initial Contribution, (b) the CBFI Issuances Proceeds, (c) the Real Estate Assets, including the trustee rights on Property Trusts through which the Real Estate Assets are held, (d) the amounts deposited in the Trust Accounts and the Permitted Investments (and any yields generated by such), (e) the income and cash flows received by the Trustee as payment or yield of Real Estate Assets, (f) the equity or partnership interests representative of the Internal Manager’s capital and any patrimonial and/or corporate rights derived therefrom, and (g) the amounts, assets, and/or rights that the Trust has or may acquire in the future in accordance to the Trust Agreement. T
Incentive Plan Means the compensation plan for the key executives of the Internal Manager and the Chairman of the Technical Committee, which is governed by the Corporate Practices Committee. I
Portfolio Refers to the Real Estate Assets contributed to the Trust Agreement, including the Initial Portfolio. P
Initial Portfolio Means the portfolio of Real Estate Assets contributed to the Trust prior to or simultaneously with the initial public offering and as part of the Initial Operations. I
Initial Properties Means the nine properties that are part of the Initial Portfolio. I
ATM Program Means the at-the-market issuance program launched by Fibra Mty, through which it may issue and offer both real estate securities (CBFIs by its Spanish acronym) and long-term debt certificates (CEBUREs by its Spanish acronym), as approved by the CBFI Holders’ Meeting held on March 31, 2017, and authorized by Mexico’s banking and securities regulator on May 24, 2017, for up to Ps.10,000 million. A
REITS Means the Real Estate Investment Trusts. R
Annualized Lease Refers to the amount of the contractual rent in terms of a lease agreement in a twelve-month period to be paid by the tenant, excluding reimbursements for operating expenses of the properties, which are expenses paid by the tenant and transferred to Fibra Mty. A
Common Representative Means Monex Casa de Bolsa, S.A. de C.V., Monex Grupo Financiero, its right-holders, assignees, or the entity that replaces it in accordance with the Trust Agreement. C
Accounting Profit Means, for any fiscal year, the Accounting Profit or Loss of the Trust determined in accordance with the provisions of the Mexican Income Tax Law for such fiscal year, while deducting Accounting Losses of the Trust from previous fiscal years that are pending amortization. A
RNV Spanish acronym for the National Securities Registry (Registro Nacional de Valores). R
Regulations Applicable to External Auditors Refers to the General Provisions Applicable to Entities and Issuers Supervised by the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores – CNBV) that contract Basic External Financial Statement Audit Services, issued on April 26, 2018 in the Official Gazette of the Federation (Diario Oficial de la Federación), as such may be amended or supplemented from time to time. R
SAT Spanish acronym for Mexican Tax Administration Service (Servicio de Administración Tributaria). S
Property Management Services Understood as: (i) the services related to the day-to-day operation and maintenance of Real Estate Assets; (ii) services related to the engagement and supervision of third party providers regarding daily operation and maintenance of properties; and (iii) any other service that is incidental to the aforementioned. P
Gross Leasable Area (GLA) Means the total leasable area within the property at the end of a period, measured in square meters, excluding parking lots and other common areas. G
Holders Means any person holding one or more CBFIs at any time. H
Title Refers to the title of the CBFIs issued by the Trustee. T
Independent Appraiser Refers to the investment bank, accounting firm, or other independent appraisal firm who will carry out the valuation of the Real Estate Assets. I