Market Cap is a key indicator for investors holding shares in companies (including Real Estate Investment Trusts, Fibras in Spanish) listed on the Mexican Stock Exchange (BMV in Spanish) or Institutional Stock Exchange (BIVA in Spanish). It provides insight into the size of a company or Fibras in the financial market.
Market Cap considers the total market value of all a company’s shares. In the case of Fibras, it corresponds to the total market value of the real estate trust certificates (CBFIs in Spanish).
In addition to indicating the size of the Fibras, Market Cap serves as a guide to the potential risk or benefit of an investment. Investing in Fibras with a smaller Market Cap means a higher level of risk but also greater potential benefits because they have more room to grow. On the other hand, investing in Fibras with a larger Market Cap carries less risk because they are well established, but their growth is slower.
The formula for Market Cap is the total number of CBFIs in circulation * the current price of each CBFI.
In this scenario, at the end of Q1 2024, the Fibras had a combined Market Cap of over $400 billion pesos. This figure reveals the liquidity and scale of Fibras in the country’s stock market.
As Fibra Uno is the real estate investment trust with the largest property portfolio in the country, it also has a high volume of CBFIs in circulation, and its Market Cap exceeded $105.5 billion pesos. It is followed by Fibra Prologis, with a Market Cap of $95.7 billion pesos.
Most Fibras have a Market Cap of around $30 billion pesos, such as Fibra Danhos, Fibra Soma, Fibra Terrafina, Fibra Mty, and Fibra Macquarie.
Fibras with significant market capitalization provide stability and confidence to investors. Meanwhile, smaller REITs represent growth opportunities.
