Corporación Inmobiliaria Vesta Reports Second Quarter 2024 Earnings Results

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MEXICO CITY, July 25, 2024--(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 second quarter ended June 30, 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.

Q2 2024 Highlights

  • Vesta’s second quarter 2024 total income was US$ 63.0 million; a 22.4% year over year increase. Q2 2024 Adjusted NOI1 margin and Adjusted EBITDA2 margin reached 94.7% and 82.3%, respectively. Vesta FFO ended Q2 2024 at US$ 37.9 million; a 23.2% increase compared to US$ 30.8 million in Q2 2023.

  • Second quarter 2024 leasing activity reached 2.8 million sf: 1.0 million sf in new contracts, 47% of which were buildings under construction that deepen Vesta’s e-commerce and consumer logistics sector presence; and 1.8 million sf in lease renewals. Vesta’s second quarter 2024 total portfolio occupancy reached 95.0%, while stabilized and same-store occupancy reached a record 97.5% and 97.8%, respectively.

  • Trailing twelve-month renewals and re-leasing reached 4.8 million sf with a weighted average spread of 7.1%. Same-store NOI increased by 4.5% year on year.

  • New construction during the quarter reached approximately 1.2 million sf. Vesta began construction on four new buildings during the second quarter 2024: two in Aguascalientes, one in Monterrey3, and another one in Puebla, strengthening the Company’s development portfolio aligned with its growth plan and reflecting continued market strength. Vesta’s current construction in progress reached 4.7 million sf by the end of the second quarter 2024, representing a US$ 417.2 million estimated investment and a 10.4% yield on cost, in markets including Mexico City, Puebla, Ciudad Juarez, Monterrey and the Bajio region.

 

 

 

6 months

 

Financial Indicators (million)

Q2 2024

Q2 2023

Chg. %

2024

2023

Chg. %

Total Rental Income

63.0

51.5

22.4

123.6

101.4

21.9

Total Revenues (-) Energy

61.0

50.6

20.6

120.7

100.1

20.6

Adjusted NOI

57.8

48.3

19.6

115.1

96.1

19.8

Adjusted NOI Margin %

94.7%

95.5%

 

95.4%

95.9%

 

Adjusted EBITDA

50.2

42.6

17.9

100.8

84.7

19.0

Adjusted EBITDA Margin %

82.3%

84.2%

 

83.5%

84.6%

 

EBITDA Per Share

0.0566

0.0612

(7.5)

0.1138

0.1218

(6.6)

Total Comprehensive Income

109.6

98.6

11.2

233.6

157.7

48.1

Vesta FFO (pre tax)

37.9

30.8

23.2

78.3

61.3

27.7

Vesta FFO Per Share

0.0428

0.0443

(3.4)

0.0884

0.0882

0.3

Vesta FFO (-) Tax Expense

20.1

9.3

115.3

53.5

19.1

180.2

Vesta FFO (-) Tax Expense Per Share

0.0227

0.0134

68.8

0.0604

0.0274

120.0

Diluted EPS

0.1237

0.1418

(12.8)

0.2638

0.2268

16.3

Shares (average)

886.6

695.3

27.5

885.7

695.3

27.4

  • Second quarter 2024 revenue reached US$ 63.0 million; a 22.4% year on year increase from US$ 51.5 million in the second quarter 2023 primarily due to US$ 8.9 million in new revenue-generating contracts and a US$ 1.9 million inflationary benefit on second quarter 2024 results.

  • Second quarter 2024 Adjusted Net Operating Income (Adjusted NOI) increased 19.6% to US$ 57.8 million, compared to US$ 48.3 million in the second quarter 2023. The second quarter 2024 Adjusted NOI margin was 94.7%; a 77-basis-point year on year decrease due to increased property-related costs.

  • Second quarter 2024 Adjusted EBITDA increased 17.9% to US$ 50.2 million, as compared to US$ 42.6 million in the second quarter 2023. The Adjusted EBITDA margin was 82.3%; a 188-basis-point decrease primarily due to increased administrative expenses during the quarter.

  • Second quarter 2024 Vesta funds from operations (Vesta FFO) increased by 23.2% to US$ 37.9 million, from US$ 30.8 million in 2023. Vesta FFO per share was US$ 0.0428 for the second quarter 2024 compared with US$ 0.0443 for the same period in 2023; a 3.4% decrease resulting from an increase in interest expenses for the quarter. Second quarter 2024 Vesta FFO excluding current tax was US$ 20.1 million compared to US$ 9.3 million in the second quarter 2023, due to higher profit and lower current taxes in the second quarter 2024 relative to the same period in 2023.

  • Second quarter 2024 total comprehensive gain was US$ 109.0 million, versus US$ 98.6 million in the second 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$ 3.5 billion as of June 30, 2024; a 20.5% increase compared to US$ 2.9 billion at the end of June 30, 2023.