Corporación Inmobiliaria Vesta Reports Third Quarter 2021 Earnings Results

MEXICO CITY, Oct. 20, 2021 /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 third quarter ended September 30, 2021. All figures included herein were prepared in accordance with International Financial Reporting Standards (IFRS) and are stated in US dollars unless otherwise noted.

Highlights

• Vesta delivered exceptional third quarter 2021 results, a reflection of continued strong execution on the Company's Level 3 strategy, driven by increased rents, occupancy and leasing activity during the quarter. As a result, Vesta has increased its full year 2021 guidance: full year 2021 revenue guidance has increased to a range of 6-6.5% from range of 4.5-5.5%, NOI margin guidance has increased to 94% from 93%, and full year 2021 EBITDA has increased to 84%, from the Company's prior guidance of 83%.
• Third quarter leasing activity reached 1,848,342 sf with a 92.5% increase in total occupancy levels year on year, compared to 90.5% in 3Q20. Leasing activity during the quarter included leading global e-commerce, retail, transport and logistics, and light manufacturing companies such as O´Reilly Auto Parts, ThyssenKrupp AG, Kuehne + Nagel and Coppel. Further, 802,596 sf leases were renewed during the third quarter 2021, reducing 2021 and 2022 maturities to 1.7% and 11.0%, respectively.
• During the third quarter, Vesta acquired 89 acres in Guadalajara, adjacent to its existing Vesta Park representing an opportunity to develop approximately 1.5 million square feet of GLA. This land increase enables Vesta's continued growth in a high-demand region while expanding its presence in the logistics and e-commerce sectors.
• The Company began construction of three new buildings totaling 505,905 sf including a 78,286 expansion with Thyssen Krupp and two new inventory buildings: one 206,819 sf construction in Monterrey and one 220,800 sf building in Guadalajara. As of 3Q21, the Company's development pipeline reached 1.8 million sf with an expected US$ 98.8 million investment, 70% of which has been leased to date. Vesta's inventory building in Guadalajara and Tijuana were pre-leased by O´Reilly Auto Parts and Coppel, respectively, during the third quarter 2021 to become a spec to suit buildings.
• 3Q21 revenues increased 9.4% year on year, to US$ 41.0 million, from US$ 37.48 million in 3Q20, while NOI and EBITDA margin reached 94.0% and 83.8%, respectively. This reflects a continued prudent approach to cost and administrative expenses with improved collections, which also reduced the Company's doubtful accounts reserve during the quarter.
• 3Q21 NAV per share increased 5.7% to US$ 2.53, from US$ 2.39 in 3Q20, while pre-tax FFO increased 2.6% to US$ 22.7 million, from US$ 22.2 million in 3Q20.
• Vesta's commitment to sustainability is an important component of Vesta's Level 3 strategy. At quarter's end, 95% of buildings within Vesta's development pipeline are in the process of LEED certification, aligned with Vesta´s target within its 10-year sustainability-linked bond to reach 28% of the Company's total GLA by 2030

• Revenues increased by 9.4% in the third quarter 2021, to US$ 41.0 million from US$ 37.5 million in 3Q20. This increase is primarily due to new revenue-generating contracts closed during the third quarter 2021.
• Net operating Income ("NOI") increased 8.6% to US$ 38.5 million in 3Q21, compared to US$ 35.5 million in 3Q20. The third quarter 2021 NOI margin was 94.0%; a 68-basis-point decrease due to higher costs related to rental income generating properties.
• EBITDA increased 7.1% to US$ 34.4 million in the third quarter 2021, as compared to US$ 32.1 million in the third quarter of 2020. 3Q21 EBITDA margin was 83.8%; a 179-basis-point decrease due to higher administrative expenses as compared to the same quarter last year.
• 3Q21 pre-tax funds from operations ("pre-tax FFO") increased 2.6% to US$ 22.7 million, from US$ 22.2 million for the same period in 2020. Pretax FFO per share was US$ 0.0328 for the third quarter 2021, compared with US$ 0.0388 for the same period in 2020; a 15.3% decrease. 3Q21 after tax FFO was US$ 16.0 million, compared to US$ 15.5 million during 3Q20. This increase was due to increased revenue, while the decrease on a per share basis was due to the successful capital market transaction at the beginning of 2021.
• 3Q21 total comprehensive gain was US$ 4.0 million, versus US$ 35.49 million for the same quarter in 2020. This decrease was primarily due to increased taxes during the 3Q21.
• As of September 30, 2021, the total value of Vesta's investment property portfolio was US$ 2.28 billion; an 8.5% increase compared to US$ 2.10 billion at the end of December 31, 2020.

For a full version of Corporación Inmobiliaria Vesta Third Quarter 2021 Earnings Release please visit: https://www.vesta.com.mx/investors/financial_information

CONFERENCE CALL INFORMATION:

Vesta will host a conference call on Thursday, October 21, 2021 to discuss these results at 10:00 a.m. Eastern Time / 9:00 a.m. Central Time (Mexico City Time).

To access the call, please dial:
US, toll-free: +1 877-705-6003
International, toll: +1 201-493-6725
Mexico, toll-free: +1 800-522-0034

A replay will be available from 1 p.m. on October 21 until November 4, 2021 and can be accessed by dialing:
US, toll-free: +1 844-512-2921
International, toll: +1 412-317-6671
Replay ID: 13723752

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 September 30, 2021, Vesta owned 189 properties located in modern industrial parks in 15 states of Mexico totaling a GLA of 31.6 million ft² (2.94 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.

Related Links

http://www.vesta.com.mx

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