Premiums or discounts? On the values of net assets

Premiums or discounts? On the values ​​of net assets

Who would not want to have a window into the future and be able to see what the value of their real estate investments will be? especially when going through a crisis, such as the Covid-19 pandemic.

Most of the financial institutions and major players in the real estate industry, prepare analyzes and present their future perspectives. This information becomes a valuable instrument that helps investors, developers, and portfolio owners, in planning and managing their assets and projects.

In the arena in which we participate as real estate appraisers and advisers, we constantly consult a large number of data sources, both from the US and Mexico, among these is Green Street Advisors, who are a worthy source for information on various behavioral indicators. of the real estate sector, including its analysis of the premiums or discounts on the Net Asset Value, of each of the sectors that make up the large Commercial Real Estate group. That is, premiums, in which REITs (Real Estate Investment Trusts) are traded in relation to the underlying value that their properties have had in the past., indicating the possibility of future changes in property values; Green Street's core business is providing investigative services.

In the US, REITs (similar to FIBRAS in Mexico) made up of Industrial sector properties are being marketed at a 'premium' today, suggesting that property prices in this sector have not declined due to the pandemic, or that the change is temporary. It is also possible that the values ​​of high-quality industrial properties have moved above the value they had before the arrival of Covid-19, given the strong impulse to e-commerce and the interest in nearshore manufacturing.

From the analysis carried out on July 1, 2020 by Green Street with the title 'Property Sector NAV Premiums', on the universe covered by REITS, observations on changes suffered during the coronavirus pandemic emerge, reflecting the premiums or discounts in which Properties are traded relative to the underlying value the properties had before, figures that can be predictive of future changes in property values:

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Although the data is based on real estate portfolios located in the US, there is a similarity in behavior, mainly related to the industrial, office, mall, strip mall and hotel sectors. The net lease comprises properties from one or several sectors, which can be a mix of retail, offices, restaurant and industrial, but what distinguishes them are the terms of the rental contract, since they are typically 10 to 20 years and the owners you have very few financial responsibilities.

The industrial sector remains sovereign

The Industrial sector in Mexico, under Covid-19, continues to be largely resilient, particularly high-quality properties with physical characteristics and their own location for e-commerce, last mile, or in border areas for clients interested in nearshoring manufacturing.

In the podcasts on FIBRAS and capital markets under Covid-19, Colliers International and SiiLA México agree that the industrial sector is one of the least affected by the pandemic. However, on the value of post-Covid-19 properties, SiiLA indicates that the logistics sector, being one of the most defensive, will have the challenge of organizing its supply chain.

By: Oscar J. Franck Terrazas CRE, FRICS, RICS Registered Valuer

This is an excerpt from the article Premiums or discounts? On the values ​​of the net assets of the edition 121 https://inmobiliare.com/inmobiliare-121/

RELATED TOPICS:COMMERCIALE-COMMERCELOGISTICNEARSHORE MANUFACTURINGPRINCIPALREAL ESTATE INVESTMENT TRUSTS

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NEGOCIOSTinsa adquiere empresa de valoración inmobiliaria alemanaPublicado hace 2 horas el 1 diciembre, 2020Por Rubi Tapia Ramírez

La empresa de valoración, asesoramiento y smart data inmobiliario, Tinsa dio a conocer que llevó a cabo la compra Persch Consult GmbH Chartered Surveyors, empresa independiente de valoración inmobiliaria de Alemania. De acuerdo con el comunicado, con esta operación incrementará 25% su cifra de negocio prevista para 2021 en ese país Europeo.

“Tinsa ya es un referente tecnológico para el mercado inmobiliario alemán.  La compra de Persch Consult GmbH Chartered Surveyors nos refuerza también en nuestro core business, la valoración de activos inmobiliarios, que en los últimos años ha sufrido una tremenda transformación para integrar la tecnología en todos los procesos”, comentó Ignacio Martos, presidente y CEO del grupo Tinsa.

Cabe mencionar que Persch seguirá operando bajo su marca actual y el mismo equipo directivo local, que está capitaneado por su fundador y CEO, Nikolaus Persch, quien comentó que “formar parte del grupo de Tinsa es una oportunidad de seguir creciendo y de integrar nuevas maneras de trabajar, las cuales benefician a los clientes.

Hasta el momento, Persch cuenta con oficinas en seis ciudades alemanas y en Copenhague, Dinamarca; su plantilla asciende a 40 personas. Asimismo, “prevé alcanzar en 2021 una facturación de 8 millones de euros, lo que elevará hasta 37 millones la cifra de negocio del grupo en Alemania, que es el segundo país con más actividad. Tinsa sumará en el país una plantilla de casi 200 empleados, de los más de 1,200 que trabajan en todo el mundo”.

Hay que recordar que Tinsa entró al mercado alemán en 2019 con la compra de on-geo, empresa de software de valoración y data.

By 2021, Tinsa's international activity will represent more than 50% of the business , which has offices in 15 countries (Germany, Argentina, Austria, Belgium, Chile, Colombia, Denmark, Ecuador, Spain, Italy, Morocco, Mexico, Countries Netherlands, Peru and Portugal), as reported by the valuation company.

" We continue to be attentive to new opportunities that add value and allow us to bring Tinsa's differential service and technology to new geographies and business areas," said Ignacio Martos.

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