Angel Bernal Robles
Angel Bernal Robles is a distinguished professional with a robust educational and professional background. He holds a Bachelor of Science in Mechanical and Electrical Engineering from ITESM in Mexico City, complemented by an MBA from Harvard Business School in Boston, Massachusetts.
Early Career
Angel Bernal Robles embarked on his professional journey as a business analyst at McKinsey & Company from 2001 to 2006. During this period, he honed his analytical and strategic thinking skills, laying a solid foundation for his future endeavors.
A Focus on Risk Management
From 2006 to 2008, Angel Bernal Robles served as a Risk Manager for GE Real Estate. In this role, he was responsible for underwriting debt and equity transactions across various sectors, including industrial, office, commercial, and residential projects. His work involved meticulous risk assessment and management, crucial for the successful financing of diverse real estate ventures.
Leadership at LaSalle Investment Management
In 2008, Mr. Bernal advanced his career by joining LaSalle Investment Management as Vice President of Acquisitions. He played a pivotal role in investing LaSalle’s first Mexican Fund, focusing on industrial, commercial, and residential development projects. His leadership and strategic insights were instrumental in the fund’s successful deployment and growth.
CFO Role at Terrafina
Angel Bernal Robles’ expertise in finance and real estate led him to Terrafina (BMV: TERRA13) in 2013, where he took on the role of Chief Financial Officer. At Terrafina, he was responsible for overseeing all financing, reporting, and administrative functions for the publicly traded REIT. His tenure saw significant advancements in the company’s financial operations and strategic positioning in the market.
MIRA and Co-Founding Cobra Development Fund
In 2019, he joined MIRA, a mixed-use real estate development company owned by Black Creek Group and Ivanhoe Cambridge, as Chief Financial Officer. In this role, he continued to leverage his extensive experience in real estate and finance.
In addition to his corporate roles, Angel Bernal Robles co-founded Cobra Development Fund with his college partner and friend, Mr. Federico Cerdas. Cobra Development Fund focuses on developing key projects in Mexico City, including Skyhaus, a residential development, and Viveh, a multifamily project. Their entrepreneurial venture expanded with the launch of Cobra Development Partners (US Subsidiary) in 2020 and Cobra Carmo in 2021, an asset management venture in collaboration with Roy Salsinha from Carmo Companies.
Contributions and Impact
Angel Bernal Robles’ journey from a business analyst to a high-ranking executive and entrepreneur underscores his versatility and dedication to the field of real estate and finance. His contributions have not only advanced the companies he has worked with but also significantly impacted the real estate landscape in Mexico and beyond. With a blend of technical expertise, strategic acumen, and entrepreneurial spirit, Mr. Bernal continues to shape and influence the industry. In his spare time, Angel Bernal Robles enjoys traveling with his family, and experiencing new cultures and communities. His future blog posts will highlight not only his professional endeavors, but his travel experiences as well.
Essential Strategies for Real Estate REIT Investors
Real Estate Investment Trusts (REITs) offer investors the opportunity to gain exposure to the real estate market without directly owning physical properties. While REITs provide numerous benefits, such as diversification and income generation, they also come with their own set of challenges, one of which is managing liquidity risks. Below, Angel Bernal Robles explores the concept of market liquidity in the context of REIT investing and discusses effective strategies for mitigating liquidity risks.
Understanding Market Liquidity
Market liquidity refers to the ease with which an asset can be bought or sold in the market without significantly impacting its price. In the context of REITs, liquidity is crucial for investors who may need to liquidate their investments quickly to meet financial obligations or capitalize on investment opportunities. However, unlike stocks or bonds, which trade on public exchanges, REITs often have lower liquidity due to their nature as real estate-focused investments.
Factors Affecting Liquidity in REITs
Angel Bernal Robles says that several factors influence the liquidity of REIT investments, including the type of real estate assets held by the REIT, market conditions, and investor sentiment. For example, REITs that invest in highly liquid assets such as office buildings or retail centers may offer greater liquidity compared to those focused on illiquid assets like undeveloped land or specialized properties.
Strategies for Managing Liquidity Risks
Diversification
Diversifying across different types of REITs can help spread liquidity risk. By investing in REITs with exposure to various sectors such as residential, commercial, or industrial properties, investors can reduce their reliance on the liquidity of any single asset class.
Assessing Asset Composition
Before investing in a REIT, it’s essential to evaluate the underlying assets in its portfolio. Properties with stable cash flows and high occupancy rates are generally more liquid than those facing vacancies or lease expirations. Additionally, considering the geographical location and market dynamics of the properties can provide insights into potential liquidity risks.
Monitoring Fundamentals
Regularly monitoring the fundamental metrics of a REIT, such as occupancy rates, rental income, and debt levels, can help investors assess its financial health and liquidity position. Strong fundamentals indicate a higher likelihood of meeting liquidity needs during challenging market conditions.
Analyzing Trading Volume
Analyzing the trading volume and liquidity profile of a REIT’s shares can provide valuable insights into market sentiment and investor interest. Higher trading volumes and narrower bid-ask spreads typically indicate greater liquidity and ease of trading.
Accessing Alternative Liquidity Sources
In addition to traditional exchanges, some REITs may offer alternative liquidity sources, such as private secondary markets or redemption programs. These platforms allow investors to buy and sell shares outside of public exchanges, providing additional liquidity options.
Maintaining a Long-Term Perspective
Angel Bernal Robles explains that while liquidity is an essential consideration for investors, it’s crucial to maintain a long-term perspective when investing in REITs. Real estate is inherently illiquid compared to other asset classes, and short-term fluctuations in liquidity may not necessarily reflect the underlying value of the investment.
Market liquidity is a critical factor to consider when investing in REITs, as it directly impacts investors’ ability to buy and sell shares in the market. By understanding the factors affecting liquidity and implementing effective risk management strategies, investors can navigate liquidity risks and position themselves for long-term success in real estate investing.
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