Real Estate Investment
Antonio Dovali Jaime No.
70, 11th Floor Tower B,
Samara, Sant Fe, Mexico
Jorge Pigeon, VP Investor Relations:
T: +52(55) 220.127.116.11
- Dow Jones Sustainability Index (DJSI)
- FTSE4Good Index
CHIEF SUSTAINABILITY OFFICER
Ana Mora Karen Gonzalez
- ALA Award for safety in Latin America and the Caribbean 2017
- Excellency EXPO Security Mexico, Best private Project in Mexico, 2018
Three basic pillars come forward in Fibra Uno’s strategy, creating sustainable value through time:
- The diversification of their portfolio by segments, clients and geographies.
- Offering their clients the best product (location, location, location); at a competitive price which leads them to be the first ones to be leased and the last ones to be vacated through the Real Estate Cycle.
- To keep a solid financial structure, with moderate leverage levels.
The company’s mission is the following: “To create sustainable value through leasing, operating, acquiring and developing real estate in key locations with high economic dynamics and favorable growth prospects in Mexico. Always looking to match our business model with our tenants growth strategies, mainly in the retail, industrial and office segments.”
FUNO started operations with its IPO on March 18th, 2011. As of December 31st, 2019, Fibra Uno had a portfolio of 641 properties that totaled approximately 10.1 million sqm. Fibra Uno targets properties with the best locations, high-quality assets and diversification of geographies, segments and tenants, in order to maximize capital appreciation and there for cashflows.
Company Sustainable Activity
Fibra Uno focuses on 6 guideline actions: human capitals, corporate social responsibility, ethics, energy eco-friendly, emissions, water stewardship.
Their sustainability has been strengthening and has become institutionalized hand by hand with the organizations development and growth. In 2016, they created their corporate sustainability department and became signatories of the United Nations Global Compact, to support and promote best practices within the organization related to the environment, human rights, labour practices and anti-corruption.
Further information on Fibra Uno’s Sustainable Activity mentioned in “How company covers SDGs”
- LEED Certification for 100% of buildings (LEED Gold: 5 buildings; LEED Silver: 7 buildings).
- ESR 2018 (Empresa Socialmente Responsable)
Sustainable Development Goals
How company covers SDGs
Progress related to each SDG can be found in the “progress” section.
“HIGHER AND HIGHER” SDG 1:
Due to the nature of their business, they are the powerhouse of the local economy in the communities in which they operate; the activity it creates is the beat of progress. They generate an economic spillover of $693,463,741 through their suppliers and a total investment of $303,431,587 in human capital. The pace of development begins inside their REIT and is the outcome of solid results.
“WE BELIEVE IN MEXICO” SDG 12:
Fibra Uno is the first and largest REIT in Mexico, and their skills to create long term value sets them apart from everybody else. Sustainability is one of their priorities, hence they have adopted best business practices in order to benefit all their stakeholders.
“BEYOND OUR PROPERTIES” SDG 10:
Supply Chain: Their supply chain management is a strategic priority at FUNO. It allows them to timely satisfy their properties needs with high-quality products and services, giving continuity to their operations. In 2018 they centralized their purchase processes and focused on their supply chain management, creating a procurement acquisition policy with will be executed throughout 2019.
Some achievements were:
• 100% of suppliers were segmented throughout 76 categories.
• Suppliers contracts were modified.
• Creation of the acquisitions of procurement team; with specialized personnel.
• Revision of the procurement processes.
• Interaction of all FUNO departments in order to better meet their needs and improve communication within their procurement department and internal clients.
• Strategic plans to improve communication and interaction between the procurement department and other internal clients.
“OUTLINING THE SKYLINE” SDG 9:
Samara, Mexico City:
Located within Santa Fe corridor, this complex is a mix-use property including 4 office buildings, one shopping center and a world-class hotel.
It uses natural lighting and in-door flora and fauna for ambiance. SAMARA implemented a cardboard and cellulose recycling program, which includes tenants and suppliers. On health and safety, they also implemented a crime prevention campaign, for auto theft and have an on-site emergency ambulance to service their more than 5000 fixed population.
Torra Reforma Latino, Mexico City:
It’s a skyscraper located within the “Reforma Corridor” –Latin America’s most important financial corridor–. Its exclusive location offers exceptional accessibility to different transportation hubs, as well as services such as banks, shopping malls and entertainment halls.
Torre Reforma Latino is a LEED Gold certified building. In 2018 it was recognized as Mexico City’s most sustainable building.
“HIGH-PERFORMING HUMAN RESOURCES” SDG 8:
TEAM: The tools that support inclusiveness at FUNO are:
• Policy on attracting internal talent. They keep all channels open for any employee who wants to apply for a new position at FUNO. They examine their job qualifications, and if they are suited for the position, they provide prompt follow-up and feedback.
• Whistleblowing mechanism managed by an external firm. This instrument gives all their employees the freedom to confidentially share any acts they witness that might infringe on FUNO’s values.
• Agreements with outside vendors, available to all personnel and for a variety of interests. These are inclusive opportunities to enjoy discounts on a number of types of products and services.
• Training. They offer opportunities for development at all levels and positions, and every employee is a candidate for training, provided they justify the purpose and the commitment of both company and employee.
In 2018, Fibra Uno launched a Management Skills Specialization Course called “The FUNO Way,” given by the Instituto Tecnológico de Estudios Superiores de Monterrey (ITESM).
To have Building Managers trained in financial, operating, sustainability and customer management areas, to continuously improve property operations across the country. Through this program, they help their managers develop and strengthen skills, expanding their know-how, capacity and “THE FUNO WAY” skills, empowering them in their current jobs and opening future opportunities as responsible for the company’s management and results. “The FUNO Way” aims to give participants qualifications that represent a competitive advantage in this industry.
“LIMITLESS CONTRIBUTION” SDG 13:
Their commitment with Mexico and their stakeholders goes beyond contractual conditions, they are currently working to create a resilient portfolio with sustainable properties, aiming at reducing their emissions and waste while mitigating environmental impacts and protecting biodiversity within their scope of operation. Similarly, Fibra Uno has invested in new technologies to improve the eco-efficiency of their properties and optimize resources.
- $255 million pesos invested on energy issues.
- $105 million pesos on water issues.
- $37 million pesos invested on vertical transportation efficiency.
- $16 million pesos towards air conditioning systems efficiencies.
- $10 million pesos towards waste management, while $100 on health and wellbeing.
- $13 million pesos invested on initiatives aiming at reducing our consumption of refrigerants, hence reducing emissions.
- Optimize functioning of air conditioning equipment, along with redesign and upgrades totaling $11 million, so that they consume less electricity. (achieved)
- Adapt 11 WTPs to meet NOM003 standard for reuse of water in watering, irrigation and toilets. (achieved)
- Save 5% on water consumption through reuse of water treated at the WTPs. (achieved)
- Generation of Waste Management Plan (achieved)
- Waterproof another 33 buildings. (achieved)
“BUILDING SUSTAINABLE COMMUNITIES” SDG 17:
FUNO’s operations promote economic growth and social progress. They work towards strengthening community relationships, generating alliances in order to favor economic, social and environmental development in Mexico.
- 40 properties are located in touristic areas. Such properties produce an average spillover of +$1,777 million de pesos.
- 123 properties have drinking fountains with free access to any community member.
- $154 million pesos invested on safety and crime prevention initiatives.
- $120 million pesos invested in community support programs.
- 802 workers benefited from the FUNO alliance “Manos al Futuro”.
- FUNO’s direct contribution to UNETE sums up, over $1.5 million pesos.
- FUNO Foundation is yet another mechanism through which FUNO, promotes social development and equality across the country.
“SOLID GROUND” SDG 16:
FUNO’s competitive advantage relies on their solid and experienced Technical Committee. It represents an exceptional solid ground, with enough tenacity, experience and transparency to lead their organization into success.
“BUILT ON SOLID FOUNDATIONS” SDG 11:
Fibra Uno is the first and largest REIT in Mexico. They operate and develop a wide spectrum of properties, mainly within the industrial, retail and office segments. Becoming a natural propulsor of progress wherever they operate, and delivering growth opportunities for their employees, tenants, guests and neighbors.
- In 2018 they continue with zero corruption cases which have transcended legally or financially. Result of their commitment to comply with all applicable regulations and strengthen FUNO’s philosophy.
- 1,392.6 training hours on ethical issues in 2018.
- $98,512 pesos invested in 2018 the proper management of their whistleblowing mechanism.
Finance and Treasury
- Have bond issue programs ready to launch when necessary, to be used only for acquisitions. (achieved)
- Refinance the FUNO 15 bond maturing in 2019 (achieved)
- Keep credit lines open under the best possible conditions. (achieved)
- Continue their transparency on ESG performance and keep trust and reliability from their tenants and CBFI holders (achieved)
- Compare properties with their own performance on trimestral bases, on their water and energy consumption (achieved)
- Increase their participation on ESG Forums (achieved)
- Build and strengthen FUNO’s reputation inside and outside the organization through initiatives for each audience (achieved)
- Increase presence of the FUNO Brand in strategic communication channels (achieved).
- Reach 9.8 million sqm of GLA by 2023 (in the process of being achieved)
- Incorporate and stabilize acquired properties (in the process of being achieved)
- Reduce and negotiate their receivable accounts (in the process of being achieved)
- Consolidation of condominium property titles (in the process of being achieved)
- Analysis, impugnment and recollection of their Brand (achieved)
- Non-strategic asset recycling (in the process of being achieved)
Procurement- 2018 Commitments:
- Respond and close 100% supplier and purchasing requisitions through the procurement area, instead of doing so, individually at the property level (achieved)
- Set up a “friend supplier” roster for each of their 46 categories; focusing on their tier 1 suppliers (in the process of being achieved)
- Respond and close at least 95% of supplier and procurement requisitions within 30 days or less (achieved)
- Identify opportunities in their procurement process (achieved)
- Mature their procurement processes (achieved)
- Centralization of the purchasing process (in the process of being achieved)
2018 GOALS AND 2019 PROGRESS
Goal: Support initiatives that promote Mexico’s competitiveness and infrastructure
Progress: • They completed reconstruction of homes damaged or destroyed in the September 2019 earthquake in Delegación Iztapalapa, Mexico City. • They undertook 124 social and environmental engagement activities within their properties.
Goal: Increase their social investment in supporting infrastructure by at least $20 million over fiscal year 2017.
Progress: Goal met; $20 million donated to rebuilding homes in Iztapalapa, and $3.5 million to the“Manos al Futuro” program.
Goal: Introduce BMS in air conditioning, vertical transport, and lighting.
Progress: 5% reduction in electricity consumption.
Goal: Launch waste reduction campaigns with tenants for cans and aluminum
Progress: 30% of 2018 Revenues
Goal: Correction of PF and harmonic factors in the electrical system, improving equipment performance.
Progress: 2% reduction in electricity consumption.
Goal: Reduce electrical consumption from the CFE using solar energy technology.
Progress: Reduction of 500 kW monthly using a meter installed in the building.
Goal: Take advantage of rainwater for use in their buildings
Progress: Recovery of 5% of water consumed
Goal: Reuse of treated wastewater
Progress: 20% water consumption
Goal: Reduce consumption of refrigerants
Progress: 5% reduction in refrigerant consumption vs. 2018
2018 Commitments in Operations: Investment of $145 million in eco-efficiency projects
2018 Commitments in Energy: • Replicate pilot testing at Patio Pachuca in other buildings. • Replace incandescent lighting for LED in more shopping centers. • Optimize air conditioning technology in four cities. • Replace two transformers and optimize backup power plant technology, to improve efficiency in reducing diesel emissions and consumption by at least 40%. • Save 5% on consumption of electrical energy through efficient technologies.
Progress: Achieved: • Stabilization of WTP = 15 were stabilized. • Change to LED lighting = this change was made in 16 buildings, • Waterproofing: 35 buildings were waterproofed. • Air conditioning system optimization in 5 buildings and complete overhaul of air conditioning systems. • Replacement of a transformer and optimization of 4 emergency generators. •Increase in the efficiency of vertical transportation systems in 4 buildings. • $68 million pesos of total investment.
- Support initiatives that promote Mexico’s competitiveness and infrastructure (achieved)
- Increase their social investment in supporting infrastructure by at least $20 million over fiscal year 2017 (achieved)
- Strengthen FUNO Foundation’s endowment board (achieved)
- Support infrastructure improvements in at least two communities where they operate (achieved)
- Strengthen employee, committee members and supplier’s knowledge on their philosophy, the code of ethics and other anticorruption practices. (achieved)
- Open the whistleblowing mechanism to suppliers. (achieved)
Fibra Uno follows the UN expectation on sustainability, working on the reduction of poverty, global ethics and resource scarcity. They communicate very clearly on their goals and progress towards these goals. They hold recognitions such as LEED certification, but do not hold primary certificates. They are given the rating B.