Corporación Inmobiliaria Vesta Reports First Quarter 2022 Earnings Results

MEXICO CITY, April 20, 2022 /PRNewswire/ -- Corporación Inmobiliaria Vesta S.A.B. de C.V., ("Vesta", or the "Company") (BMV: VESTA), one of the leading pure-play industrial real estate companies in Mexico, today announced results for the first quarter ended March 31, 2022. All figures included herein were prepared in accordance with International Financial Reporting Standards (IFRS) and are stated in US dollars unless otherwise noted.

Q1 2022 Highlights

• Vesta's development pipeline continued to expand during the quarter; projects under construction reached 2.7 million sf in 1Q22 reflecting an estimated US$ 150.7 million of investment with a 9.9% return on cost. During the quarter Vesta increased its development pipeline by 1.3 million sf and began construction on six inventory buildings in Monterrey, Tijuana, Guadalajara and Queretaro which are regions with continued strong demand and record-low vacancy.
      
• The Company increased its presence within target markets through strategically relevant land acquisitions. In Ciudad Juárez, Vesta acquired land to develop 1.25 million sf for its new Vesta Park Juárez Oriente on prime real estate located in close proximity to the commercial border crossing between Ciudad Juárez and El Paso. In Monterrey, Vesta acquired land to develop 1.35 million square feet for the Vesta Park Monterrey Apodaca Phase 2 while also securing land to ensure future expansion ahead of continued strong demand in the Monterrey area.
      
• First quarter 2022 leasing activity reached 2.2 million sf. This represented 1.3 million sf in lease renewals, 821,871 sf in new contracts with existing clients and a new lease signed with Amazon. 1Q22 total portfolio occupancy therefore increased to reached 93.8%, from 90.0% in 1Q21, stabilized occupancy increased to 94.3%, from 90.6% in 1Q21, and same store occupancy increased to 94.1%, from 91.1% in 1Q21.
      
• Vesta delivered strong financial results for the first quarter of the year with a 9.4% year on year revenue increase to US$ 42.0 million, from US$ 38.4 million in 1Q21. This increase is primarily due to a US$ 2.55 million inflationary impact and a US$ 4.20 million impact resulting from new revenue-generating contracts on 1Q22 results. 1Q22 NOI and EBITDA margins reached 96.2% and 84.3%, respectively.
     
• In line with the Company's Level 3 Strategy, 1Q22 NAV per share increased 8.4% to US$ 2.62, from US$ 2.42 in 1Q21, while pretax FFO increased 11.7% to US$ 25.0 million compared to US$ 22.4 million in 1Q21. 1Q22 pretax FFO per share decreased 7.3% to US$ 0.0360, from US$ 0.0389 in 1Q21, due to a year on year comparison which encompassed Vesta's follow on offering at the beginning of 2021.

• Net Operating Income (NOI) increased 8.5% to US$ 40.4 million in 1Q22, compared to US$ 37.2 million in 1Q21. 1Q22 NOI margin was 96.2%; a 76-basis-point year on year decrease due to increased property costs.
     
• EBITDA increased 5.9% to US$ 35.4 million in the 1Q22, as compared to US$ 33.4 million in 1Q21. 1Q22 EBITDA margin was 84.3%; a 276-basis-point decrease due to higher administrative expenses as compared to the same quarter last year.
     
• 1Q22 pre-tax funds from operations (pre-tax FFO) increased 11.7% to US$ 25.0 million, from US$ 22.4 million for the same period in 2021. Pretax FFO per share was US$ 0.0360 for the first quarter 2022, compared with US$ 0.0389 for the same period in 2021; a 7.3% decrease. 1Q22 after tax FFO was US$ 15.86 million, compared to US$ 16.87 million in 1Q21. This decrease was due to higher taxes in 1Q22.
      
• 1Q22 total comprehensive gain was US$ 55.3 million, versus US$ 13.5 million for the same quarter in 2021. This increase was primarily due to an increase in investment property valuation.
      
• The total value of Vesta's investment property portfolio was US$ 2.38 billion as of March 31, 2022; a 5.4% increase compared to US$ 2.26 billion at the end of December 31, 2021.

For a full version of Corporación Inmobiliaria Vesta First Quarter 2022 Earnings Release please visit: https://www.vesta.com.mx/investors/financial_information

CONFERENCE CALL INFORMATION:

Vesta will host a conference call on Thursday, April 21, 2022 to discuss these results at 1:00 p.m. Eastern Time / 12:00 p.m. Central Time (Mexico City Time).

To access the call, please dial:
US, toll-free: +1 877-423-9813
International, toll: +1 201-689-8573
Mexico, toll-free: +1 800-522-0034

A replay will be available from 4 p.m. on April 21 until May 5, 2022 and can be accessed by dialing:
US, toll-free: +1 844-512-2921
International, toll: +1 412-317-6671
Replay ID: 13728399

About Vesta

Vesta is a best-in-class, fully integrated real estate company that owns, manages, acquires, sells, develops and re-develops industrial properties in Mexico. As of March 31, 2022, Vesta owned 190 properties located in modern industrial parks in 15 states of Mexico totaling a GLA of 31.4 million ft² (2.91 million m²). The Company has multinational clients, which are focused in industries such as e-commerce/retail, aerospace, automotive, food and beverage, logistics, medical devices, and plastics, among others. 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 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 the outbreak and spread of COVID-19 and the measures that governments, agencies, law enforcement and/or health authorities implement to address it; and (ix) those additional factors discussed in reports filed with the Bolsa Mexicana de Valores. 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, whether as a result of new information, future events or otherwise except as may be required by law.

Contact Information:

Juan Sottil, CFO
+52 55 5950-0070 ext. 133
[email protected]

Fernanda Bettinger, IRO
+52 55 5950-0070 ext. 163
[email protected]
[email protected]

Barbara Cano, InspIR Group
+1 646 452-2334
[email protected]

SOURCE Corporación Inmobiliaria Vesta, S.A.B. de C.V.

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