Demand for Industrial Spaces drives 42% Profit Increase for Real Estate Investment Firm Fibra Terrafina
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Loading... - Adelinde Horn
- 19 Jul 2024
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Fibra Terrafina reported a significant rise in its net profit for the second quarter of 2024, marking a 42.3% increase compared to the same period in 2023. This surge, resulting in a net profit of 1,254 million pesos, is primarily attributed to the high demand for industrial spaces.
In the second quarter of 2023, Fibra Terrafina's net profit stood at 881.4 million pesos. The notable increase in 2024 underscores the robust performance and favorable market conditions within the industrial real estate sector.
Alberto Cherin, CEO of Fibra Terrafina, remarked on the company's success:
“We achieved positive operating and financial results, in line with the strength of the sector. The high demand for industrial spaces favored organic growth, supporting double-digit increases in average effective rent. This proves that manufacturing activity for export in primary and secondary markets is thriving. As in previous quarters, occupancy also benefits from the lower supply of new properties.”
Total revenues for the second quarter of 2024 reached 986.5 million pesos, representing a 2.7% increase from the 960.7 million pesos earned in the same period of 2023. This steady revenue growth reflects the ongoing high demand and effective management within the company.
Fibra Terrafina is also engaged in an asset sale process, working with various bidders and keeping all parties informed. Currently, six Fibras, including Fibra Uno, Fibra Mty, and Macquarie, have shown interest in acquiring this competitor.
The increase in demand for industrial spaces indicates a thriving manufacturing sector geared towards export activities in both primary and secondary markets. This trend has positively impacted occupancy rates, further fueled by the limited supply of new properties.
Fibra Terrafina's strategic positioning and proactive management have enabled it to capitalize on these market dynamics, resulting in substantial financial gains and promising growth prospects for the future.
