Corporación Inmobiliaria Vesta Reports First Quarter 2024 Earnings Results
April 25 2024 - 4:43PM
Business Wire
Corporación Inmobiliaria Vesta S.A.B. de C.V., (“Vesta”, or the
“Company”) (BMV: VESTA; NYSE: VTMX), a leading industrial real
estate company in Mexico, today announced results for the first
quarter ended March 31, 2024. All figures included herein were
prepared in accordance with International Financial Reporting
Standards (IFRS), which differs in certain significant respects
from U.S. GAAP. This information should be read in conjunction
with, and is qualified in its entirety by reference to, our
consolidated financial statements, including the notes thereto.
Vesta’s financial results are stated in US dollars unless otherwise
noted.
Q1 2024 Highlights
- Vesta delivered outstanding financial results for the first
quarter 2024, achieving US$ 60.6 million in total income; a 21.3%
year over year increase. Q1 2024 Adjusted NOI margin and Adjusted
EBITDA margin reached 96.0% and 84.7%, respectively. Vesta FFO
ended Q1 2024 at US$ 40.4 million; a 32.4% increase compared to US$
30.5 million in Q1 2023.
- First quarter 2024 leasing activity reached 2.0 million sf: 1.2
million sf in new contracts- including a pre-lease with Latin
America’s largest e-commerce company and longtime Vesta client-
among others, and 0.8 million sf in lease renewals. Vesta’s first
quarter 2024 total portfolio occupancy reached 94.0%, while
stabilized and same-store occupancy reached 97.1% and 97.4%,
respectively.
- During the first quarter 2024, Vesta preleased 845,957 sf
within its Vesta Park Punta Norte building in Mexico City to one of
the largest e-commerce Companies in Latin America, underscoring
Vesta’s leadership position and success in building a strong
presence within Mexico’s key metropolitan areas.
- Trailing twelve-month renewals and re-leasing reached 4.1
million sf with a weighted average spread of 8.0%. Same-store NOI
increased by 5.6% year on year.
- New construction during the quarter exceeded 1.0 million sf:
Vesta began construction on three new buildings in Monterrey and
one in Queretaro for Vesta´s longtime client Safran, aligned with
the Company’s growth plan and reflecting strong market dynamics.
Vesta’s current construction in progress reached 4.1 million sf by
the end of the first quarter 2024, representing a US$ 344.5 million
estimated investment and a 10.1% yield on cost, in markets
including Mexico City, Ciudad Juarez, Monterrey and Bajio
region.
- Vesta achieved 28% of its ESG Bond KPIs related to the
portfolio’s green certified GLA, by year end 2023, exceeding its
targeted 2031 timeframe. This was achieved through the Company´s
focus on GLA certification for existing properties and by the
accelerated portfolio growth in recent years. Vesta continues to
monitor these KPIs, as any asset sales or changes to the portfolio
composition can impact this metric.
- Vesta sold a non-strategic land lease property in the Bajio for
US $780,000 during the first quarter 2024 as part of the Company’s
strategy to opportunistically recycle non-strategically relevant
assets.
Financial Indicators
(million)
Q1 2024
Q1 2023
Chg. %
Total Rental Income
60.6
49.9
21.3
Total Revenues (-)
Energy
59.7
49.6
20.5
Adjusted NOI
57.4
47.8
20.1
Adjusted NOI Margin %
96.0%
96.4%
Adjusted EBITDA
50.6
42.1
20.2
Adjusted EBITDA Margin
%
84.7%
84.9%
EBITDA Per Share
0.0572
0.0606
(5.6)
Total Comprehensive Income
124.0
59.1
109.8
Vesta FFO
40.4
30.5
32.4
Vesta FFO Per Share
0.0456
0.0439
3.9
Vesta FFO (-) Tax
Expense
33.4
9.7
242.9
Vesta FFO (-) Tax Expense Per
Share
0.0377
0.0140
169.1
Diluted EPS
0.1402
0.0851
64.6
Shares (average)
884.8
694.3
27.4
- First quarter 2024 revenue reached US$ 60.6 million; a 21.3%
year on year increase from US$ 49.9 million in the first quarter
2023 primarily due to US$ 8.9 million in new revenue-generating
contracts and a US$ 2.1 million inflationary benefit on first
quarter 2024 results.
- First quarter 2024 Adjusted Net Operating Income (Adjusted NOI)
1 increased 20.1% to US$ 57.4 million, compared to US$ 47.8 million
in the first quarter 2023. The first quarter 2024 Adjusted NOI
margin was 96.0%; a 35-basis-point year on year decrease due to
increased property-related costs.
- First quarter 2024 Adjusted EBITDA 2 increased 20.1% to US$
50.6 million, as compared to US$ 42.1 million in the first quarter
2023. The Adjusted EBITDA margin was 84.7%; a 21-basis-point
decrease primarily due to increased administrative expenses during
the quarter.
- First quarter 2024 Vesta funds from operations (Vesta FFO)
increased by 32.4% to US$ 40.4 million, from US$ 30.5 million in
2023. Vesta FFO per share was US$ 0.0456 for the first quarter 2024
compared with US$ 0.0439 for the same period in 2023; a 3.9%
increase resulting from an increase in Adjusted EBITDA, while
interest expenses and current tax for the quarter decreased. First
quarter 2024 Vesta FFO excluding current tax was US$ 33.4 million
compared to US$ 9.7 million in the first quarter 2023, due to
higher profit, lower interest expense and lower current taxes in
the first quarter 2024 relative to the same period in 2023.
- First quarter 2024 total comprehensive gain was US$ 124.0
million, versus US$ 59.1 million in the first quarter 2023. This
increase was primarily due to increased revenues and a higher gain
on the revaluation of investment properties during the
quarter.
- The total value of Vesta’s investment property portfolio was
US$ 3.4 billion as of March 31, 2024; a 4.4% increase compared to
US$ 3.2 billion at the end of March 31, 2023.
For a full version of Corporación Inmobiliaria Vesta First
Quarter 2024 Earnings Release, please visit:
https://ir.vesta.com.mx/financial-results
CONFERENCE CALL INFORMATION
Vesta will host a conference call on Friday, April 26, 2024, to
discuss these results at 11:00 a.m. Eastern Time / 9:00 a.m. Mexico
City Time.
To participate in the conference call, please connect via
webcast or by dialing:
U.S. Toll-Free: +1 (888) 350-3870 International Toll: +1 (646)
960-0308 International Dial-In:
https://events.q4irportal.com/custom/access/2324/
Participant Code: 1849111
Webcast: https://events.q4inc.com/attendee/715377601
A telephonic replay will be available for one week following the
conference call and can be accessed two hours subsequent to call’s
completion via Vesta’s IR website, along with the company's
earnings press release, financial tables, and slide
presentation.
About Vesta
Vesta is a real estate owner, developer and asset manager of
industrial buildings and distribution centers in Mexico. As of
March 31, 2024, Vesta owned 214 properties located in modern
industrial parks in 16 states of Mexico totaling a GLA of 37.3
million sf (3.5 million m2). Vesta has several world-class clients
participating in a variety of industries such as automotive,
aerospace, high-tech, pharmaceuticals, electronics, food and
beverage and packaging. For additional information visit:
www.vesta.com.mx.
Note on Forward-Looking Statements
This report may contain certain forward-looking statements and
information relating to the Company and its expected future
performance that reflects 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,
without limitation, any statement that may predict, forecast,
indicate or imply future results, performance or achievements, and
may contain words like “believe,” “anticipate,” “expect,”
“envisages,” “will likely result,” or any other words or phrases of
similar meaning. Such statements are subject to a number of risks,
uncertainties and assumptions. Some of the 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 foreign currency
exchange rates; (iii) increased or unanticipated competition for
our properties; (iv) risks associated with acquisitions,
dispositions and development of properties; (v) tax structuring and
changes in income tax laws and rates; (vi) availability of
financing and capital, the levels of debt that we maintain; (vii)
environmental uncertainties, including risks of natural disasters;
(viii) risks related to any potential health crisis and the
measures that governments, agencies, law enforcement and/or health
authorities implement to address such crisis; and (ix) those
additional factors discussed in reports filed with the Bolsa
Mexicana de Valores and in 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 officers of
the Company. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of their
dates. The Company undertakes no obligation to update or revise any
forward-looking statements, including any financial guidance,
whether as a result of new information, future events or otherwise
except as may be required by law.
1 Adjusted NOI and Adjusted NOI Margin calculations have been
modified, please refer to Notes and Disclaimers 2 Adjusted EBITDA
and Adjusted EBITDA Margin calculations have been modified, please
refer to Notes and Disclaimers
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240425013278/en/
Juan Sottil, CFO +52 55 5950-0070 ext. 133
jsottil@vesta.com.mx
Fernanda Bettinger, IRO +52 55 5950-0070 ext. 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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