MEXICO CITY, April 23, 2025--(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, 2025. 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 2025 Highlights
Vesta delivered strong financial results for the first quarter 2025: total income was US$ 67.1 million; a 10.7% year over year increase, while total income excluding energy reached US$ 64.9 million; an 8.6% increase compared to US$ 59.7 million in the first quarter 2024. First quarter 2025 Adjusted NOI1 margin and Adjusted EBITDA2 margin reached 95.7% and 85.2%, respectively. Vesta FFO reached US$ 45.0 million for the first quarter 2025; an 11.4% increase compared to US$ 40.4 million in the first quarter 2024.
Based on first quarter performance and the Company's current outlook, Vesta reaffirms its full year 2025 guidance as was provided within its fourth quarter 2024 earnings results press release: Vesta expects 2025 revenues to increase between 10.0-11.0% with a 94.5% Adjusted NOI margin and an 83.5% Adjusted EBITDA margin, while maintaining the Company´s solid performance across key operational metrics.
First quarter 2025 leasing activity reached 1.4 million sf: 139 thousand sf in new contracts, with three new Vesta tenants, and 1.3 million sf in lease renewals. Vesta’s first quarter 2025 total portfolio occupancy therefore reached 92.8%, while stabilized and same-store occupancy reached 95.3% and 97.4%, respectively.
First quarter 2025 renewals and re-leasing reached 1.4 million sf with a trailing twelve-month weighted average spread of 11.5%. Same-store NOI increased by 4.3% year over year.
During the first quarter, the Company acquired 18.7 acres of land in Mexico City representing 367 thousand sf in GLA. In April 2025, subsequent to the quarter´s end, Vesta acquired 20.2 acres of land in Monterrey representing 449 thousand sf in buildable area for future construction. Both land acquisitions represent highly desirable urban infill locations which address critical last-mile logistics and e-commerce demand. These acquisitions represent another important milestone for the Company, further expanding its strategic land bank, aligned with Vesta's Route 2030 plan.
Vesta ended the first quarter 2025 with 1.9 million sf in current construction in progress; an estimated investment of approximately US$ 142.6 million with a projected yield on cost of 10.6%, in markets including Mexico City, Querétaro and Monterrey.
At Vesta's General Shareholders' Meeting on March 19, 2025, Vesta shareholders approved a share buyback plan in the amount of US$ 150 million. Vesta's share repurchase program reached US$ 36.4 million, or 15.5 million shares, for the first quarter 2025. All shares acquired as part of the Company's buyback program will be subsequently canceled, aligned with Vesta's focus on consistently allocating capital to ensure the most significant shareholder return.
Also at its March 19, 2025 General Shareholders' Meeting, Vesta shareholders approved a US$ 69.5 million dividend for 2025, representing a 7.5% year over year dividend increase. Vesta therefore paid US$ 17.4 million in dividends, equivalent to PS$ 0.4137 per ordinary share, on April 15, 2025 for the first quarter 2025.
Subsequent to quarter's end, in April 2025, Vesta drew down US$ 100 million of the US$ 345 million syndicated loan the Company had closed in December 2024.
Financial Indicators (million)
Q1 2025
Q1 2024
Chg. %
Total Rental Income
67.1
60.6
10.7
Total Revenues (-) Energy
64.9
59.7
8.6
Adjusted NOI
62.1
57.2
8.5
Adjusted NOI Margin %
95.7%
95.8%
Adjusted EBITDA
55.3
50.6
9.3
Adjusted EBITDA Margin %
85.2%
84.7%
EBITDA Per Share
0.0637
0.0572
11.4
Total Comprehensive Income
12.3
124.0
(90.1)
Vesta FFO
45.0
40.4
11.4
Vesta FFO Per Share
0.0518
0.0456
1359.0
Vesta FFO (-) Tax Expense
36.1
33.4
8.2
Vesta FFO (-) Tax Expense Per Share
0.0416
0.0377
10.3
Diluted EPS
0.0142
0.1402
(89.9)
Shares (average)
867.9
884.8
(1.9)
First quarter 2025 total revenue reached US$ 67.1 million; a 10.7% year on year increase from US$ 60.6 million in the first quarter 2024. Total revenues excluding energy increased to US$ 64.9 million; a 8.6% year on year increase from US$ 59.7 million in 2024 due to US$ 5.2 million in new revenue-generating contracts and a US$ 2.1 million inflationary benefit on first quarter 2025 results.
First quarter 2025 Adjusted Net Operating Income (Adjusted NOI) increased 8.5% to US$ 62.1 million, compared to US$ 57.2 million in the first quarter 2024. The first quarter 2025 Adjusted NOI margin was 95.7%; a 10-basis-point year on year decrease due to increased costs related to rental income generating properties.
Adjusted EBITDA for the quarter increased 9.3% to US$ 55.3 million, as compared to US$ 50.6 million in the first quarter 2024. The Adjusted EBITDA margin was 85.2%; a 50-basis-point increase primarily due to a decrease in the proportion of administrative expenses relative to total revenues for the quarter.
First quarter 2025 Vesta funds from operations after tax (Vesta FFO (-) Tax Expense) increased to a US$ 36.1 million gain, from US$ 33.4 million for the same period in 2024. Vesta FFO after tax per share was US$ 0.0416 for the first quarter 2025 compared with US$ 0.0377 for the same period in 2024, a 9.2% increase. This increase is due to higher income for the first quarter 2025. First quarter 2025 Vesta FFO excluding current tax was US$ 45.0 million compared to US$ 40.4 million in the first quarter 2024, due to higher 2025 profit relative to the same period in 2024.
First quarter 2025 total comprehensive income was US$ 12.3 million, versus a US$ 124.0 million gain in the first quarter 2024, primarily due to lower other expenses during the first quarter 2024.
The total value of Vesta’s investment property portfolio was US$ 3.7 billion as of March 31, 2025; a 1.4% increase compared to US$ 3.7 billion at the end of December 31, 2024.
The replay will be available two hours after the call has ended and can be accessed from Vesta's IR website.
About Vesta
Vesta is a real estate owner, developer and asset manager of industrial buildings and distribution centers in Mexico. As of March 31, 2025, Vesta owned 228 properties located in modern industrial parks in 16 states of Mexico totaling a GLA of 41.2 million sf (3.7 million m2). Vesta has several world-class clients participating in a variety of industries such as automotive, aerospace, retail, 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.
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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
