Core Insights - The article discusses the importance of understanding the history of financial markets for making informed future investment decisions [1]. Group 1 - The author has over 10 years of experience in communications and has worked for various economic institutions [1]. - The author currently holds positions at the Center for Economic Studies Argentina XXI (CEEAXXI) and the International Foundation Bases [1]. - The author runs a YouTube podcast called Storiopolis, which aims to present historical narratives without ideological bias, focusing on the history of finance [1].

Financial Data and Key Metrics Changes - Total revenues increased by 10.7% to $60.6 million, driven by rental revenues from new leases and inflationary adjustments [21] - Adjusted net operating income rose by 8.5% to $62.1 million, with a margin contraction of 10 basis points to 95.7% due to higher costs [21][22] - Adjusted EBITDA reached $55 million, a 9.3% increase year-over-year, with a margin increase of 50 basis points to 85.2% [22] - Pre-tax income decreased to $28.6 million compared to $150.6 million in 2024, primarily due to lower gains on revaluation of investment properties [23] - Cash and cash equivalents stood at $49 million, with total debt decreasing to $801 million [24] Business Line Data and Key Metrics Changes - Total leasing activity for Q1 2025 reached $1.4 million, comprising 139,000 square feet of new contracts and 1.2 million square feet in lease renewals [14] - Same store NOI increased by 4.3% year-over-year, reflecting strong tenant relationships and portfolio quality [13] Market Data and Key Metrics Changes - Vesta's revenues were 89.7% denominated in U.S. dollars, up from 87.8% in Q1 2024 [21] - Vacancy rates in Monterrey were around 7%, while Tijuana's rates were close to 8%, indicating healthy market conditions despite a slow quarter [132] Company Strategy and Development Direction - Vesta is focused on maturing leases and renewals, generating a 11.5% trailing 12-month weighted average spread, the highest since 2022 [13] - The company is making strategic land acquisitions in urban infill markets aligned with its Route 2030 strategy, particularly for e-commerce and last-mile logistics [15] - Vesta aims to maintain a diversified portfolio, with logistics and e-commerce making up about 50% of its tenant base [82] Management's Comments on Operating Environment and Future Outlook - Management noted that uncertainty continues to affect decision-making across industries, but Vesta's tenants are largely maintaining long-term plans [7][8] - The company views the current environment as an opportunity, leveraging its strong balance sheet for future growth [12] - Management expects an uptick in leasing activity for new tenants in upcoming quarters as uncertainties dissipate [30] Other Important Information - Vesta executed a share buyback program of $36 million during the quarter, acquiring 15.5 million shares [16][25] - The loan-to-value ratio was reported at 20.6%, one of the lowest in the industry, providing financial flexibility [17] Q&A Session Summary Question: What is the outlook for leasing activity in April and May? - Management sees an increase in leasing activity and expects new leases to pick up in upcoming quarters, despite the first quarter being slow due to uncertainty [30] Question: Can you provide details on tenant engagement and occupancy stabilization? - Management reported strong engagement with tenants, who are optimistic about Mexico, and expects occupancy to stabilize as clarity on trade rules improves [42][46] Question: What is the current state of market rents in Monterrey and Tijuana? - Vacancy rates are healthy, with rents stabilizing or increasing, indicating positive market dynamics despite a slow quarter [134] Question: Will Vesta continue to aggressively buy back shares? - Management will monitor market conditions and execute the $150 million buyback program when opportunities arise [124]

Economic Conditions and Risks - The company's business performance is closely tied to general economic conditions and the real estate industry, with potential adverse effects from economic slowdowns or downturns in asset values [101]. - Economic conditions in Mexico, including political and social developments, could negatively impact the company's financial condition and results of operations [104]. - The volatility of financial markets may adversely affect the availability of credit and the company's ability to secure favorable financing terms [112]. - The ongoing geopolitical tensions, including the war in Ukraine, could lead to further market disruptions and negatively affect the company's operations [114]. - The appraisal of real estate assets has become more difficult due to market volatility, potentially leading to lower-than-expected property values [115]. - The company may experience increased vacancy rates and reduced demand for industrial space, impacting rental income [109]. - The company is exposed to risks from economic downturns in specific sectors, with tenants primarily in automotive (32.4%), logistics (11.7%), and food and beverage (8.7%) industries [134]. - Political instability in Mexico could adversely affect business operations, with significant changes in laws and public policies posing risks [203]. - The electoral victory of the Morena party in 2024 has resulted in a concentration of political power, which may impact economic conditions and business operations [205]. - The Mexican economy is influenced by significant political and economic instability, which may adversely affect the company's business operations and financial condition [210]. Tenant and Revenue Risks - A significant portion of rental income is derived from a limited number of customers, increasing vulnerability to tenant defaults [101]. - The company relies heavily on its tenants for revenue, and defaults by major tenants could materially affect financial performance [126]. - As of December 31, 2024, the company's top 10 tenants accounted for approximately 27.1% of total GLA and 28.5% of rental income, with Nestlé being the largest customer [129]. - The company may need to modify lease terms to accommodate tenants facing financial difficulties, which could reduce rental income [128]. - The company's rental income is dependent on the performance of its tenants and the overall economic environment in Mexico [143]. Financial Condition and Capital Structure - The company’s financial condition may be jeopardized if it cannot raise additional capital on favorable terms, affecting future growth prospects [140]. - As of December 31, 2024, the company's total outstanding debt was US$847.0 million, with US$269.2 million in secured loans [141]. - The shareholders increased the cap on indebtedness to US$1.8 billion in March 2024, allowing for potential strategic acquisitions [141]. - The company may incur additional indebtedness for strategic acquisitions, investments, or joint ventures, which could significantly increase financial obligations [141]. - The company is dependent on raising capital through financial markets, and unfavorable credit ratings could impair access to financing [139]. - The company’s ability to service its debt may be adversely affected by economic downturns or failure to meet financial covenants [144]. Development and Operational Risks - The company faces risks related to the development of new properties, including rising construction costs and supply chain issues [101]. - The company is subject to risks related to development activities, including potential increases in construction costs and supply chain issues [157]. - The company may face challenges in obtaining necessary governmental approvals, licenses, and permits, which could delay operations [158]. - Delays or increased costs in construction projects could negatively impact the company's financial condition and rental income [177]. - The company relies on a global network of suppliers, and current supply constraints may lead to increased lead times and costs [178]. Environmental and Regulatory Risks - The company is subject to various environmental laws and regulations, which may lead to significant additional costs and liabilities that could adversely affect its financial condition [163]. - The company anticipates that the regulation of its business operations under Mexican environmental laws will become more stringent over time, potentially impacting cash flows and compliance costs [164]. - Under Mexican law, the company is jointly liable with tenants for soil pollution remediation costs, which could materially affect its financial condition if tenants fail to meet their obligations [165]. - The company faces potential class action lawsuits related to environmental liabilities, which may adversely impact its financial condition [166]. - The company is exposed to physical risks from climate change, including severe weather events that could affect tenants' operations and their ability to pay rent [167]. - Compliance with new climate change regulations may require significant improvements to existing properties, potentially increasing operating costs that cannot be passed on to tenants [168]. Market and Competitive Risks - The company faces significant competition from major players like Prologis and Fibra Uno, which could lead to lower occupancy rates and rental income [136]. - Future market conditions may affect the company's ability to divest assets at favorable pricing or in a timely manner [117]. - The company may need to explore alternative ways to increase liquidity, including divesting properties at less than optimal terms or incurring debt, which could adversely affect financial condition and distributable cash flow [118]. - The market price of the company's ADSs may be volatile, influenced by various uncontrollable factors, including economic conditions and investor perceptions [229][230]. - The company is exposed to potential securities litigation due to market volatility, which could divert management's attention and incur substantial costs [231]. Shareholder and Governance Risks - The company's bylaws restrict any acquisition of common shares resulting in beneficial ownership of 9.5% or more without prior Board approval [232]. - A public tender offer is required if beneficial ownership of 20.0% or more is achieved, with the purchase price being the greater of book value, highest trading price in the last 365 days, or the highest price ever paid plus a 20.0% premium [234]. - Holders of American Depositary Shares (ADSs) have fewer rights than direct shareholders and must act through the depositary to exercise those rights [258]. - The company is a holding company and relies on dividends from subsidiaries to service its debt and make distributions to shareholders [259]. - The company may lose its foreign private issuer status, requiring compliance with more extensive U.S. reporting requirements and potentially increasing regulatory costs [270]. Financial Performance and Growth - The company's profit for the year ended December 31, 2024, was $223.3 million, reflecting a decrease of 29.5% from 2023 [290]. - Vesta FFO per share has increased 3.2x since 2012, with a CAGR of 10.2% from 2012 to 2024 and a growth of 9.0% from 2023 to 2024 [290]. - The total GLA has grown 3.3x since 2012, with a CAGR of 10.6% from 2012 to 2024 and a growth of 7.9% from 2023 to 2024 [290]. - The company aims to maximize growth in Vesta FFO through its "Level 3 Strategy" from 2019 to 2024, focusing on portfolio management, property investment, and ESG leadership [289]. - The company has achieved a 5.5x increase in profit since 2012, with a CAGR of 15.2% from 2012 to 2024 [293]. - The company has implemented eco-efficient standards in its developments, contributing to sustainable investments [287]. - The company has obtained ISO 9001-2015 certification for risk mitigation, recently renewed in 2023 [292].

Financial Data and Key Metrics Changes - Total revenue for 2024 reached $252 million, a 17.7% year-over-year increase, surpassing revised guidance of 17% [15][23] - Adjusted NOI margin and EBITDA margin for 2024 were 94.6% and 83.5%, respectively [16][23] - FFO for 2024 was $160.1 million, a 25.2% increase compared to $127.9 million in 2023 [16][24] Business Line Data and Key Metrics Changes - Leasing activity for the full year reached 7.7 million square feet, with 3.5 million square feet from new leases [14] - Fourth quarter leasing activity was 1.6 million square feet, with 739,000 square feet in new contracts [17] - Renewals during the year totaled $4.2 million, with an 8.4% increase in rent spreads [14] Market Data and Key Metrics Changes - Total portfolio occupancy at the end of Q4 2024 was 93.4%, with stabilized and same-store occupancy at 95.5% and 97.6%, respectively [17] - The Bajio region showed continued absorption strength, while Tijuana and Ciudad Juarez experienced a slowdown in demand [45][56] Company Strategy and Development Direction - The company unveiled its Route 2030 strategic plan, focusing on balanced investment, growth, profitability, and ambitious Net Zero and ESG objectives [8] - Strategic investments will prioritize land acquisition and development that provide a clear competitive advantage [14] - The company aims to maintain a strong financial position and be selective in tenant leasing [21] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the challenges expected in 2025, but remains confident in the opportunities in Mexico [9][10] - The economic interdependence between Mexico and the U.S. is emphasized, with near-shoring strategies expected to drive growth [11][12] - Management noted that while there are uncertainties, the company is well-positioned to navigate these challenges [63] Other Important Information - The company secured a $545 million global syndicated sustainability-linked credit facility [16][29] - A share repurchase program reached $42.3 million by year-end, representing 2% of total outstanding shares [22][32] Q&A Session Summary Question: Insights on leasing activity in Monterrey - Management confirmed that Monterrey remains a key market with full leasing and confidence in upcoming projects [36][38] Question: Stabilized portfolio occupancy decrease in the North region - Management noted that while Monterrey is stable, Tijuana and Ciudad Juarez have shown a slowdown in demand [45][46] Question: Developments in the Bajio region - Management highlighted positive signs in Guadalajara and Queretaro, with low vacancy rates and strong demand [54][55] Question: Impact of northern market weakness on Bajio - Management indicated that different markets have unique dynamics, and they remain confident in the Bajio region's health [68][72] Question: CapEx deployment and guidance - Management did not provide specific guidance but indicated an active capital deployment strategy for the year [88][90] Question: Risks affecting the development pipeline - Management expressed confidence in material supply and development processes, with no major risks anticipated [115][116] Question: Automotive sector concerns - Management noted that major automakers reaffirmed commitments to Mexico, despite tariff concerns [124][126]

Core Insights - Corporación Inmobiliaria Vesta (NYSE: VTMX) is a Mexican industrial REIT that manages a portfolio of logistic centers and manufacturing properties, benefiting from the near-shoring trend as companies relocate [1] Group 1: Company Overview - Vesta provides logistics and manufacturing space for companies that are moving operations closer to the U.S. market due to the near-shoring trend [1] - The company focuses on delivering shareholder value through dividends and capital appreciation opportunities [1] Group 2: Investment Strategy - The investment strategy emphasizes identifying undervalued companies relative to their fundamentals, peers, and historical performance [1] - The approach seeks companies with high potential for capital appreciation driven by foreseeable catalysts [1]

Financial Data and Key Metrics Changes - Total income for Q3 2024 was $63.7 million, a 14.4% year-over-year increase [4] - Adjusted NOI margin reached 94.2%, and adjusted EBITDA margin was 84.5% for the quarter [4] - Vesta FFO ended at $40.4 million for the quarter, a 20.3% year-on-year increase [4][10] - Total revenues increased 14.4% to $64 million, primarily due to rental revenues from new leases and inflationary adjustments [9] - Adjusted net operating income increased 11.4% to $57.6 million, with a margin increase of 87 basis points [9] - Cash and equivalents stood at $281.2 million, and total debt decreased to $845 million [11] Business Line Data and Key Metrics Changes - Third quarter leasing activity reached 1.3 million square feet, with 476,000 square feet for new leases and 787,000 square feet in renewals [5] - The majority of new leases had a contract lease term of approximately 10 years, with an 8% spread for renewals and re-leasing [5] Market Data and Key Metrics Changes - The company noted continued recovery and heightened activity in Mexico City and Bajio [5] - Nearshoring trends remain robust, highlighted by Foxconn's commitment to build a large plant in Mexico [7] - The development pipeline remains strong with 3.4 million square feet under construction [8] Company Strategy and Development Direction - Vesta is focused on creating value through disciplined, strategic investment activities to ensure long-term growth in cash flow and funds from operations [4] - The company is executing on a strong pipeline with a shovel-ready land bank, ensuring clients access to logistic corridors and energy infrastructure [8] - Vesta aims to maintain a strong balance sheet while being selective in tenant leasing [4][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current market conditions despite minor upticks in vacancy rates, attributing it to new projects coming online [15] - The company anticipates continued demand in 2025, driven by long-term contracts with clients [17] - Management remains cautious but optimistic about the ongoing strength in the Mexican market and nearshoring trends [20] Other Important Information - The company upwardly revised its full-year 2024 revenue growth guidance to exceed 17% [12] - Vesta opportunistically bought back approximately 5 million shares, totaling nearly $50 million [11] Q&A Session Summary Question: Insights on occupancy and commercial discussions amid political volatility - Management noted good occupancy levels despite a minor tick in total portfolio occupancy, attributing it to new projects in lease-up stage [15][16] Question: Outlook on development in the Bajio region - Management indicated strong demand in the Bajio region, particularly in the automotive industry, and plans to utilize land bank effectively [19] Question: Demand dynamics in northern markets - Management acknowledged a minor uptick in vacancies in northern markets but emphasized long-term demand remains strong [29] Question: Updates on land bank acquisitions - Management confirmed a strong pipeline of potential land acquisitions and emphasized the importance of well-located land for future developments [39] Question: Buyback program and capital allocation strategy - Management reiterated the importance of capital allocation and indicated a willingness to be active in the buyback program if market conditions are favorable [46]

Financial Performance - Rental income for the nine-month period ended September 30, 2024, was $186,881,830, a 19.8% increase from $156,117,790 in the same period of 2023[7] - Profit for the period reached $286,155,593 for the nine months ended September 30, 2024, compared to $202,807,712 for the same period in 2023, marking an increase of 41.1%[7] - Total comprehensive income for the period was $276,666,988, up from $212,241,446 in the previous year, reflecting a growth of 30.4%[7] - Interest income rose to $13,140,475 for the nine-month period ended September 30, 2024, compared to $5,527,899 in the same period of 2023, a significant increase of 138.5%[7] - Comprehensive income for the nine-month period ended September 30, 2024, was $276,666,988, compared to $212,241,446 for the same period in 2023, showing an increase of about 30.4%[10] - The company reported a profit before income taxes of $345,127,412 for the nine-month period ended September 30, 2024, up from $281,773,986 in the same period of 2023, marking an increase of about 22.5%[10] - Energy income increased significantly to $5,495,834 for the nine-month period ended September 30, 2024, compared to $1,609,991 in the prior year, marking a 241.5% growth[98] Assets and Liabilities - Total assets increased to $3,930,346,519 as of September 30, 2024, up from $3,792,216,293 at December 31, 2023, representing a growth of 3.65%[5] - Total current liabilities decreased to $71,687,969 as of September 30, 2024, down from $147,566,241 at December 31, 2023, a reduction of 51.4%[5] - Total stockholders' equity increased to $2,691,564,634 as of September 30, 2024, up from $2,486,968,425 at December 31, 2023, reflecting a growth of 8.2%[5] - Total stockholders' equity as of September 30, 2024, reached $2,691,564,634, an increase from $2,220,680,459 as of September 30, 2023, representing a growth of approximately 21.3%[8] - Cash, cash equivalents, and restricted cash at the end of the period on September 30, 2024, totaled $281,932,919, down from $408,182,657 at the end of September 2023, reflecting a decline of approximately 30.9%[11] - As of September 30, 2024, total cash and cash equivalents decreased to $281,932,919 from $501,901,448 as of December 31, 2023, representing a decline of approximately 44%[36] - Short-term accounts payables increased to $15,925,594 as of September 30, 2024, compared to $13,188,966 as of December 31, 2023, reflecting an increase of about 20.8%[31] Investment Properties - Investment property value increased to $3,589,613,509 as of September 30, 2024, from $3,212,164,164 at December 31, 2023, an increase of 11.7%[5] - The fair value of investment properties increased to $3,589,613,509 as of September 30, 2024, compared to $3,212,164,164 at the end of 2023, reflecting a growth of approximately 11.7%[60] - The total additions to investment properties for the year amounted to $158,848,138, while the gain on revaluation of investment properties was $231,374,529[61] - The company reported a gain on revaluation of investment property of $(231,374,529) for the nine-month period ended September 30, 2024, compared to $(179,549,769) in the same period of 2023, indicating a decrease in gains of about 28.8%[10] Cash Flow and Investments - Net cash generated by operating activities for the nine-month period ended September 30, 2024, was $79,246,179, compared to $128,947,738 for the same period in 2023, indicating a decrease of about 38.4%[10] - The company experienced a net cash used in investing activities of $(143,279,432) for the nine-month period ended September 30, 2024, compared to $(195,776,103) for the same period in 2023, reflecting a decrease of about 26.8%[10] - Purchases of investment property for the nine-month period ended September 30, 2024, were $(172,493,271), compared to $(195,666,429) in the same period of 2023, indicating a decrease of approximately 11.8%[10] Dividends and Shareholder Information - Dividends declared increased to $(64,686,487) for the nine-month period ended September 30, 2024, compared to $(60,307,043) for the same period in 2023, representing an increase of approximately 6.3%[8] - The entity declared a dividend of $64,686,487, approximately $0.01832 per share, to be paid in four equal installments[90] - The third installment of the 2024 declared dividends was approximately $0.0183 per share, totaling $16,171,622[118] - Basic earnings per share for the nine-month period ended September 30, 2024, is $0.2681, compared to $0.2777 for the same period in 2023[97] - The total number of shares in treasury increased to 15,334,934 as of September 30, 2024, from 14,387,308 as of December 31, 2023[87] - The entity's total shares outstanding as of September 30, 2024, is 868,983,607, down from 870,109,128 as of December 31, 2023[86] Expenses and Costs - Total property operating costs for the nine-month period ended September 30, 2024, were $17,175,408, up from $12,118,168 in 2023, reflecting a 41.8% increase[99] - General and administrative expenses totaled $25,182,005 for the nine-month period ended September 30, 2024, compared to $22,340,322 in 2023, indicating a 8.2% rise[100] - Interest on loans and others amounted to $32,285,679 for the nine-month period ended September 30, 2024, slightly down from $33,626,366 in the previous year[103] Debt and Financing - Total long-term debt as of September 30, 2024, is $843,044,931, compared to $845,573,752 as of December 31, 2023, showing a slight decrease[78] - The long-term debt includes a $200 million unsecured sustainability-linked revolving credit facility obtained in September 2022, with no provisions made as of September 30, 2023[68] - The entity's Series A Senior Notes and Series B Senior Notes have interest rates of 5.03% and 5.31%, respectively, with maturity dates in September 2024 and September 2027[78] Compliance and Governance - The condensed consolidated interim financial statements were approved by the Board of Directors on October 25, 2024[119] - The entity is in compliance with financial covenants as of September 30, 2024[84] - The Entity is not involved in any litigation that could materially affect its financial position or cash flows[116] Market Conditions - The inflation rate in Mexico is projected to be between 3.66% and 4.0% for Q3 2024, which could positively influence the fair value of properties[56] - The discount rate for fair value assessment increased to a range of 7.75% to 12.26% in Q3 2024, compared to 7.00% to 12.21% in 2023, which may impact future valuations negatively[56] - The exit cap rate remained stable at 6.50% to 9.25% for Q3 2024, consistent with the previous year, suggesting no significant change in market expectations[56]

Financial Data and Key Metrics Changes - Vesta's second quarter revenues reached $63 million, a 22.4% increase year-on-year, driven primarily by higher rental revenue [4][95] - Adjusted net operating income increased by 19.6% to $57.8 million, while the adjusted EBITDA rose 20% to $50.2 million, although margins decreased due to higher costs [86][94] - Cash and equivalents stood at $377 million, with total debt remaining unchanged at $914 million, resulting in a net debt to EBITDA ratio of 2.8 times [6] Business Line Data and Key Metrics Changes - Leasing activity included 1.8 million square feet in renewals, with a real leasing spread of 7.1% during the quarter, reflecting stable growth in rent [3][119] - The construction pipeline reached 4.7 million square feet, with 38.6% already leased [93] Market Data and Key Metrics Changes - Foreign direct investment into Mexico reached over $38 billion from January to May, marking a 35% year-on-year increase, with significant investment in the manufacturing sector [4] - Portfolio occupancy levels increased to a record 97.5% during the quarter [93] Company Strategy and Development Direction - Vesta aims to continue acquiring land in strategic locations, focusing on development as a key part of its growth strategy [12][130] - The company is well-positioned to capture opportunities in Mexico's manufacturing hubs, with a disciplined approach to capital allocation [94][120] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market dynamics, noting strong demand in regions like Ciudad Juarez and Monterrey, despite some delays in construction [10][15] - The company anticipates continued rent increases and a favorable leasing environment, driven by limited supply of quality assets [22][50] Other Important Information - Vesta's FFO reached $37.9 million, a 23.2% year-on-year increase, indicating strong operational performance [94][122] - The company has a strong focus on maintaining a high-quality portfolio and leveraging client relationships to identify growth opportunities [34][130] Q&A Session Summary Question: What should be expected regarding audit expenses? - Management indicated that audit expenses will remain elevated due to compliance requirements with the New York Stock Exchange [88][37] Question: What are the reasons for project delays? - Management noted minor construction delays but emphasized that these are not material and are expected to stabilize [10] Question: How is the leasing spread expected to trend? - Management expects leasing spreads to continue increasing, with potential for high single-digit growth [23][50] Question: What is the company's exposure to EV suppliers? - Management clarified that while there is some exposure, most clients are diversified across various industries, not solely reliant on the EV sector [45][62] Question: How does the company view the new administration's support for industrial parks? - Management expressed optimism about the new administration's plans to support industrial development, emphasizing the importance of infrastructure improvements [52][116]

| --- | --- | --- | |-------------------------------------------------------------------------------------------|---------------------|-------------------------| | All numbers express in US$ \nASSETS | | | | | As of June 30, 2024 | As of December 31, 2023 | | Current assets: | | | | Cash and cash equivalents 376,941,475 501,166,136 Financial assets held for trading - - | | | | | | | | Recoverable Taxes 35,793,676 33,864,821 Operating lease receivables 11,900,512 10,100,832 | | | | Prepaid expenses 26,494,23 ...

Financial Data and Key Metrics Changes - Total revenues grew by 21% to $60.6 million, driven by rental revenue from new leases and inflationary adjustments [20] - Adjusted net operating income (NOI) increased by 20% to $57.4 million, with an adjusted NOI margin of 96% [21][24] - Funds from operations (FFO) rose by 32% to $40.4 million [23] Business Line Data and Key Metrics Changes - First quarter leasing activity reached 2 million square feet, with 1 million square feet from new leases and nearly 1 million square feet from renewals [10] - Stabilized occupancy increased by 40 basis points to 97.1%, reflecting a strong and diverse client base [9][15] Market Data and Key Metrics Changes - Rental prices for Mexico's industrial space rose by 22% year-on-year, averaging $6.89 per square meter [10] - Total portfolio occupancy increased to 94% from 93.4% in the previous quarter [15] Company Strategy and Development Direction - The company is focusing on acquiring strategically located land and developing best-in-class buildings to lease to top-tier clients [11][12] - Vesta aims to leverage its strong balance sheet and relationships to capture opportunities in Mexico's nearshoring wave [8][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain strong leasing activity and capture value from rent increases [33][35] - The Mexican economy is expected to grow between 1.8% to 2.5% in 2024, supported by incentives for nearshoring investments [14] Other Important Information - The company has a land bank that could potentially increase its portfolio by over 10 million square feet [51] - A cash dividend of MXN0.29 per ordinary share was paid for the first quarter [25] Q&A Session Summary Question: Rental growth on a per region basis - Management noted rent increases across most markets, with significant spreads in Tijuana and Ciudad Juarez [26][27] Question: Peso-denominated rents - There is strong interest from companies to lease in U.S. dollars, reflecting a preference for quality space over currency denomination [29] Question: Leasing spreads and expirations in 2025 - Management is proactive in renewing leases and expects potential upside in rent due to expirations [31][34] Question: Impact of increased capital flow on growth trajectory - Increased competition for land is acknowledged, but Vesta's development capabilities position it well to capture value [36][38] Question: Guidance for 2024 - Management confirmed that guidance remains unchanged from the previous quarter [41][44] Question: Non-tenant reimbursement - A significant reimbursement of $14 million was noted, related to tenant improvements [86] Question: Land sale dynamics - A non-strategic asset was sold for a premium, reflecting a strategy to clean up the portfolio [87] Question: Delivery timeline for development projects - Management expressed confidence in managing construction risks and maintaining strong leasing activity [90][92] Question: Interest in market acquisitions - Vesta will focus on its investment pipeline and maintain discipline in its strategy [94][96]