Corporación Inmobiliaria Vesta SAB de CV Q3 FY2025 earnings call

• Vesta is seeing improving leasing momentum and tenant demand in Mexico's industrial real estate market. Third quarter rental revenues increased due to rent-generating buildings delivered. - Leasing activity across regions: Monterrey completed Apodaca park with new facilities in marketing; Ciudad Juarez saw market turnaround with 1.3 million sq ft net absorption and a 500k sq ft lease; Tijuana has early signs of reactivation; Guadalajara and Mexico City have strong fundamentals. - Land acquisitions: 330 acres in Monterrey, land bank nearly complete for Route 2030. - Asset recycling: Sold an 80,604 sq ft building in Ciudad Juarez for $5.5 million, a 10% premium to appraised value. - Financial strategy: Completed $500 million senior unsecured notes, strengthened balance sheet, and repaid debt.

Vesta's total income for the third quarter reached $72.4 million, a 13.7% year-over-year increase. Total income excluding energy was $69.9 million, a 14.5% increase. Adjusted NOI margin was 94.4% and adjusted EBITDA margin was 85.3% for the third quarter 2025. Total leasing activity for Q3 2025 was 1.7 million square feet, with 597,000 square feet in new leases and 1.1 million square feet in renewals. Vesta's total portfolio occupancy was 89.7%, while stabilized and same-store occupancy were 94.3% and 94.8% respectively.

• Revised full-year 2025 guidance: EBITDA margin expected to reach 84.5% (up from prior 83.5%), revenue growth 10-11%, adjusted NOI margin around 94.5%. - Guidance revised due to strong operational execution in Q3.

• Macro uncertainty and slower market activity initially faced. - USMCA review in 2026 with other countries getting tariffs. - Market dynamics in Tijuana with slower recovery and high vacancy due to recent supply influx. - Energy supply challenges and regulatory uncertainties.

Q: When do you think you'll accelerate Route 2030 projects?

A: We analyze market-by-market, resume whenever needed, considering USMCA review and market demand.

Q: Are positive demand signals from existing or new tenants?

A: Both, from existing tenants and new tenants across various industries including electronics, aerospace, and logistics.

Q: Sustainability of EBITDA margin?

A: EBITDA will continue to be strong as we grow, with operational margins playing in our favor due to being vertically integrated.

Q: Leasing spreads sustainability?

A: Expected to be sustained in double digits, with trends upward and linked to inflation.