BUZZ-Mexico's Fibra Uno climbs on tax authority greenlight to IPO industrial portfolio

Shares in Mexican real-estate investment trust Fibra Uno FUNO11.MX close up 5.5%, after Tuesday morning's announcement that tax authority SAT had given FUNO the OK to take its industrial portfolio public as Fibra Next

FUNO says it now plans to launch the IPO "as soon as market conditions allow," without specifying a timeline

"Better late than never," write analysts at Barclays, after the approval was delayed in late 2023 and again in early 2024. "The idea of finding appropriate market conditions is a moving target, and geopolitics will likely play a role."

Bradesco analysts point to uncertainty surrounding threatened tariffs on Mexican exports to the U.S., which would hit the local manufacturing sector and occupation levels of industrial real estate, but say progress is a positive step

"This could be the catalyst that was needed for a re-rating of the stock and perhaps for the company to internalize its management," adds Barclays

FUNO is Mexico's top Fibra, the local equivalent of a U.S. REIT, and its certificates trade on the Mexican exchange as though they were shares