A FIBRA is Mexico's version of a real estate investment trust (REIT): a way to invest in income-producing property - shopping centers, warehouses, offices, hotels - without buying a building yourself. You buy it on the Mexican Stock Exchange (BMV) just like a stock, and it pays you a share of the rent the properties collect. This guide explains what a FIBRA is, how it works, the main types, how you make money, and the trade-offs to weigh before investing.
FIBRA, defined in plain terms
FIBRA stands for Fideicomiso de Inversión en Bienes Raíces - a real estate investment trust. It is the Mexican equivalent of a U.S. REIT. When you invest in one, you are not buying property directly: you are buying CBFIs (Certificados Bursátiles Fiduciarios Inmobiliarios), the trust certificates that trade on the BMV under their own tickers, much like shares of a company.
FIBRAS have existed in Mexico since 2011. The first one to list was FIBRA Uno (FUNO11.MX), which opened the market on March 18, 2011; dozens of others followed across different property segments. Because CBFIs trade on an exchange, you can buy and sell them through an online broker during market hours, which is a big practical difference from owning a physical building.
A trust (the fideicomiso) owns a portfolio of real estate and leases it to tenants. The rent those tenants pay becomes the income that flows to investors. Mexican tax law sets two defining rules: a FIBRA must keep the large majority of its assets invested in real estate, and it must distribute at least 95% of its taxable result to CBFI holders each year.
That mandatory 95% payout is the whole point of the structure, and it is why FIBRAS tend to pay high, regular distributions compared with an ordinary stock. In exchange for passing nearly all its profit through to investors, the trust itself is taxed lightly - the tax is mostly handled at the investor level instead.
The main types of FIBRAS
Not all FIBRAS own the same kind of property, and the type largely determines how the income behaves. The main categories on the BMV are:
Industrial - warehouses and logistics parks, often leased to manufacturers and e-commerce tenants (for example, FIBRA Prologis / FIBRAPL).
Retail / commercial - shopping centers and malls (for example, Fibra Danhos).
Office - corporate buildings leased to companies.
Hotel - hotels and hospitality assets, whose income is more sensitive to tourism and the economic cycle.
Mixed / diversified - a blend of segments in one trust (for example, FIBRA Uno / FUNO).
The type matters for risk: industrial FIBRAS rode the nearshoring and e-commerce wave, while office and hotel segments behave very differently through economic cycles. Tickers and portfolios change over time, so verify current data before you invest.
How you make money with a FIBRA
There are two ways a FIBRA can pay off, and they work independently of each other:
Distributions - periodic cash payments (usually quarterly) funded by the rent the properties collect. This is the income leg, and it behaves a bit like collecting rent without being a landlord.
Capital appreciation - if the price of the CBFI rises, you can sell it for more than you paid. This is the price-return leg, and it can also move against you if the price falls.
Your total return is the combination of both. A FIBRA can pay generous distributions while its price drops, so looking only at the distribution yield can be misleading.
Advantages and risks
FIBRAS give retail investors access to commercial real estate that would otherwise take a lot of capital to reach, but they are not a one-way bet.
The interest-rate point deserves emphasis. When rates rise, the high yields on safer instruments compete with FIBRA distributions, and property values can come under pressure - so FIBRA prices are historically sensitive to the rate cycle. No investment is risk-free, and a FIBRA is no exception.
FIBRA vs buying a property vs a real estate ETF
A FIBRA sits between two options many Mexicans already know. Buying a physical property gives you full control and a hard asset, but it needs a large down payment, is illiquid, and concentrates your money in a single building. A FIBRA gives you fractional exposure to a whole portfolio, trades in seconds, and can be started with a small amount - but you give up control and take on market price swings.
A real estate ETF is a further step in diversification: instead of one trust, it can hold many FIBRAS or global real estate companies in a single fund, usually for a small expense ratio. The trade-off is that you are one more layer removed from the underlying buildings. None of these is universally better - they answer different needs for control, liquidity, and diversification.
How FIBRA distributions are taxed
FIBRA distributions are not tax-free. In Mexico they are subject to income tax (ISR) withholding, which the intermediary generally deducts before the money reaches your account. The exact treatment depends on your situation and can change, so this article does not attempt to give a figure - confirm current rules with the SAT or a tax professional before relying on any number.
No. You own CBFIs - certificates that represent a fractional interest in a trust that owns properties. You get economic exposure to the rent and the property values, but you are not the direct owner of any building and you cannot use the property yourself.
Do FIBRAS really pay like rent?
In spirit, yes: distributions are funded by rent the trust collects and are usually paid quarterly. But unlike rent from your own apartment, the amount is not fixed - it rises or falls with occupancy, rents, and the trust's results, and it is not guaranteed.
Is there a minimum amount to invest?
Practically, the minimum is roughly the price of a single CBFI plus any broker commission, so many FIBRAS are accessible for a few hundred pesos. Some brokers in Mexico also allow fractional purchases. Check your broker's fees before committing.
A Mexican FIBRA or a U.S. REIT?
They are close cousins. A FIBRA gives you peso-denominated exposure to Mexican real estate; a U.S. REIT gives you dollar exposure to U.S. property and adds currency risk for a Mexican investor. Many investors hold both for diversification rather than choosing one. This is a matter of your goals, not a one-size-fits-all answer.
When you are ready to go from understanding FIBRAS to actually choosing one, our companion guide on how to invest in FIBRAS walks through the practical steps and what to compare. It also helps to know the largest companies on the BMV to understand the wider Mexican market these trusts trade in.
Legal Notice: Education, not advice. Past results do not guarantee future returns. Investing always involves risks.
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