Corporación Inmobiliaria Vesta Announces Third Quarter 2024 Earnings Results

MEXICO CITY, October 24, 2024–(BUSINESS WIRE)–Corporación Inmobiliaria Vesta SAB de CV (“Vesta” or the “Company”) (BMV: VESTA; NYSE: VTMX), a leading industrial real estate company in Mexico, today announced results for the third quarter ended on September 30, 2024. All figures contained herein have been prepared in accordance with International Financial Reporting Standards (IFRS), which differ from U.S. GAAP in some material respects. This information should be read in conjunction with, and is qualified in its entirety by, our consolidated financial statements, including the notes thereto. Unless otherwise stated, Vesta’s financial results are expressed in U.S. dollars.

Highlights of the third quarter of 2024

Vesta has updated its full-year 2024 forecast: revenue forecast has been revised upward and is expected to exceed 17%, up from the company’s previous forecast of 16-17%. Adjusted NOI margin was revised from 94.0% to 94.5% Adjusted EBITDA was revised from 83.0% to 83.5%. This reflects Vesta’s financial discipline and strong leasing activity during the year.
Vesta’s total revenue for the third quarter of 2024 was $63.7 million; an increase of 14.4% compared to the previous year. Third Quarter 2024 Adjusted NOI¹ Margin and Adjusted EBITDA² The margin reached 94.2% and 84.5%, respectively. Vesta FFO ended third quarter 2024 at $40.4 million; an increase of 20.3% compared to $33.6 million in the third quarter of 2023.
Leasing activity in Q3 2024 reached 1.3 million SF: 476,000 SF of new leases in Bajio and Mexico City with blue-chip automotive and e-commerce companies and 787,000 SF of lease renewals. The overall occupancy of the Vesta portfolio in the third quarter of 2024 thus reached 93.9%, while the stabilized occupancy and same-store occupancy reached 95.8% and 98.3%, respectively.
During the quarter, renewals and new leases reached 787,000 SF with a weighted average margin of 7.1% over the trailing twelve months. Same-store NOI increased about 3% year-over-year.
Vesta completed a new strategic land acquisition in Tijuana, Baja California, comprising 35.7 hectares of land directly adjacent to the company’s existing Vesta Park Mega Region. The new park will ultimately cover a total area of 1.0 million square meters and include six world-class LEED-certified buildings that meet the highest global sustainability standards.
Vesta’s current construction progress reached 3.4 million square feet by the end of the third quarter of 2024, representing an estimated investment of $328.9 million and a cost return of 10.4% in markets such as Mexico City, Puebla, Ciudad Juárez , Monterrey and the Bajio region .
The company further strengthened its balance sheet and in October, after the end of the third quarter, successfully signed a letter of engagement for a $500 million syndicated credit facility, consisting of a $300 million term loan with an availability period of 18 months . and a $200 million revolving credit facility that replaces the current revolving credit facility.
During the quarter, Vesta paid $65 million of the first tranche of the company’s 2017 private placement notes due September 2024.
Vesta’s share repurchase program was approximately $15 million in the third quarter of 2024. The Company’s strategy continues to focus on consistent capital allocation to ensure the greatest possible return for shareholders.
On October 14th^ThVesta paid third-quarter dividends of $16.2 million, equivalent to PS$0.3576 per common share.

				*9 months*
Financial figures (millions)	Q3 2024	Q3 2023	Change. %	2024	2023	Change. %
Total rental income	63.7	55.7	14.4	187.3	157.1	19.2
Total sales (-) energy	61.1	55.3	10.4	180.8	157.1	15.1
Adjusted NOI	57.6	51.7	11.4	171.7	148.8	15.3
*Adjusted NOI margin %*	*94.2%*	*93.4%*		*95.0%*	*94.8%*
Adjusted EBITDA	51.6	45.0	14.8	151.4	130.8	15.8
*Adjusted EBITDA margin %*	*84.5%*	*81.3%*		*83.7%*	*83.2%*
EBITDA per share	0.0545	0.0649	(16.0)	0.1698	0.1762	(3.6)
Overall result	50.2	79.0	(36.4)	283.5	212.2	33.6
Vesta FFO	40.4	33.6	20.3	117.7	96.0	22.6
Vesta FFO per share	0.0427	0.0485	(12.0)	0.1320	0.1294	2.0
Vesta FFO (-) tax expense	34.9	2.0	1628.0	87.3	22.4	290.6
Vesta FFO (-) tax expense per share	0.0368	0.0029	1164.5	0.0980	0.0301	225.1
Diluted EPS	0.0530	0.1140	(53.5)	0.3181	0.2861	11.2
Stocks (average)	947.0	693.0	36.6	891.3	741.9	20.1

Third-quarter 2024 revenue reached $63.7 million; a year-over-year increase of 14.4% from $55.7 million in the third quarter of 2023, primarily due to $7.4 million of new revenue-generating contracts during the quarter and an inflation benefit of $2.0 million -dollars in third quarter 2024 results.
Adjusted net operating income (adjusted NOI) in the third quarter of 2024 increased 11.4% to $57.6 million, compared to $51.7 million in the third quarter of 2023. The adjusted NOI margin in the third quarter of 2024 was 94.2%; an increase of 87 basis points over the previous year due to higher rental income.
Adjusted EBITDA for the quarter increased 14.8% to $51.6 million, compared to $45.0 million in the third quarter of 2023. Adjusted EBITDA margin was 84.5%; an increase of 322 basis points, primarily due to a decrease in administrative expenses during the quarter.
In the third quarter of 2024, Vesta’s after-tax funds from operations (Vesta FFO (-) tax expense) increased to $34.9 million from $2.0 million in the same period in 2023. Vesta FFO per share was $0.0368 in the third quarter of 2024 compared to $0.0029 in the same period in 2023; The increase is due to a decrease in current taxes for the third quarter of 2024. Vesta’s FFO in the third quarter of 2024, excluding current taxes, was $40.4 million compared to $33.6 million in the third quarter of 2023, reflecting higher profit compared to the same period in 2023.
Total income in the third quarter of 2024 was $27.7 million compared to $79.0 million in the third quarter of 2023, primarily due to a decrease in profit from the revaluation of investment properties during the quarter.
The total value of Vesta’s investment real estate portfolio was $3.6 billion as of September 30, 2024; an increase of 11.8% compared to $3.2 billion at the end of December 31, 2023.

For a full version of Corporación Inmobiliaria Vesta’s third quarter 2024 results release, please visit:

TELEPHONE CONFERENCE INFORMATION

Friday, October 25, 2024
9:00 a.m. (Mexico City time)
11:00 a.m. (Eastern Time)

To participate in the conference call, please register via webcast or select:

International Toll Free: +1 (888) 350-3870
International Toll: +1 (646) 960-0308
International numbers:
Participant code: 1849111

Webcast:

The recording will be available two hours after the end of the call and can be accessed via Vesta’s IR website.

About Vesta

Vesta is a property owner, developer and asset manager of industrial buildings and distribution centers in Mexico. As of September 30, 2024, Vesta owned 221 properties in modern industrial parks in 16 states in Mexico with a total rental area of 39.1 million sf (3.6 million m²).²). Vesta has several world-class customers operating in a variety of industries, including automotive, aerospace, retail, high-tech, pharmaceutical, electronics, food and beverage, and packaging. Further information can be found at: www.vesta.com.mx.

Note Regarding Forward-Looking Statements

This report may contain certain forward-looking statements and information regarding the Company and its expected future performance, which reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. Forward-looking statements include, but are not limited to, any statements that predict, forecast, suggest or suggest future results, performance or achievements and may contain words such as “believe”, “anticipate”, “expect”, “anticipate”, “likely to be” or “probable outcome”. ” or other words or expressions with similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. Factors that may affect outcomes and results include, but are not limited to: (i) national, regional and local economic and political climates; (ii) changes in global financial markets, interest rates and exchange rates; (iii) increased or unexpected competition for our properties; (iv) risks associated with the acquisition, disposition and development of real estate; (v) tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the amount of indebtedness we hold; (vii) environmental uncertainties, including risks of natural disasters; (viii) risks associated with a potential health crisis and the measures that governments, government agencies, law enforcement agencies and/or health authorities may take to address such crisis; and (ix) the additional factors discussed in reports filed with the Bolsa Mexicana de Valores and the U.S. Securities and Exchange Commission. We caution you that these important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation and in oral statements made by authorized executives of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their date. The Company undertakes no obligation to update or revise any forward-looking statements, including financial projections, whether as a result of new information, future events or otherwise, except as required by law.

_____________________________

¹ The Adjusted NOI and Adjusted NOI Margin calculations have been changed, see Notices and disclaimers.

² The Adjusted EBITDA and Adjusted EBITDA margin calculations have been changed, see Notices and disclaimers

View source version on businesswire.com:

Contacts

Juan Sottil
CFO
+52 55 5950-0070 extension 133
jsottil@vesta.com.mx

Fernanda Bettinger
IRO
+52 55 5950-0070 extension 163
mfbettinger@vesta.com.mx
investor.relations@vesta.com.mx

Barbara Cano
InspIR group
+1 (646) 452-2334
barbara@inspirgroup.com

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