Oct 2, 2025 5:00 PM Eastern Daylight Time Share MEXICO CITY--(BUSINESS WIRE)--Corporación Inmobiliaria Vesta, S.A.B. de C.V. (NYSE: VTMX, BMV: VESTA) ("Vesta") announced today that the Company's Third Quarter 2025 financial results will be released after market close on Thursday, October 23, 2025. Vesta will host a conference call to discuss its results. Conference Call Details:Friday, October 24, 202511:00 a.m. ET / 9:00 a.m. Mexico City Time To participate in the conference call, please connect via webcas ...

MEXICO CITY--(BUSINESS WIRE)--Corporación Inmobiliaria Vesta, S.A.B. de C.V. (the "Company†or "Vesta†) (NYSE: VTMX; BMV: VESTA), a fully-integrated, internally managed real estate company that owns, manages, develops and leases industrial properties in Mexico, today announced the closing of US$ 500 million aggregate principal amount of 5.500% senior unsecured notes (the "Notes†) due 2033. The issuance received a credit rating of BBB-/Positive by both, S&P Global Ratings and Fitch Ratings. ...

(NYSE: VTMX; BMV: VESTA), a fully-integrated, internally managed real estate company that owns, manages, develops and leases industrial properties in Mexico, today announced that it has priced an offering of US$500.00 million aggregate principal amount of 5.500% senior unsecured notes due January 30, 2033 (the "Notes†). The Notes will be issued through a private placement and resold by the initial purchasers. MEXICO CITY--(BUSINESS WIRE)--Corporación Inmobiliaria Vesta, S.A.B. de C.V. ("Vesta†) ...

Group 1 - Vesta (NYSE: VTMX) is highlighted as a significant investment opportunity by the author, who has a strong background in financial journalism and real estate market knowledge [1] - The author has over 10 years of experience in communications and has worked for various economic institutions, indicating a solid foundation for analysis [1] - The author also runs a podcast called Storiopolis, which focuses on the history of finance, suggesting a deep understanding of financial markets that could inform investment decisions [1] Group 2 - There are no disclosed stock or derivative positions in any of the companies mentioned, indicating an unbiased perspective in the analysis [2] - The article expresses the author's personal opinions and does not involve any compensation from companies mentioned, reinforcing the independence of the analysis [2] - Seeking Alpha clarifies that past performance does not guarantee future results, emphasizing the need for careful consideration in investment decisions [3]

Financial Data and Key Metrics Changes - Total revenues increased by 6.8% year over year, reaching $67 million, primarily driven by rental income from new leases and inflationary adjustments [17] - Adjusted net operating income rose by 7.2% to €61.8 million, with an adjusted NOI margin of 94.5% [18] - Adjusted EBITDA increased by 9% year over year to €55 million, with a margin expansion of 137 basis points to 84.1% [18] - Pre-tax income decreased to $54.5 million compared to $131.8 million in 2024, mainly due to lower gains on valuation of investment properties [19] - Funds from operations (FFO), excluding current tax, increased by 12.9% year over year to $43.1 million [19] - Cash and cash equivalents stood at $65.2 million, with total debt increasing to $900 million [20] Business Line Data and Key Metrics Changes - New leasing activity totaled 1.8 million square feet, including 411,000 square feet in new contracts, reflecting a sequential increase from the first quarter [9] - Strong retention rates of 84% were reported, with rent increases of 20% to 30% in some cases [10] - The tracking 12-month spread reached 13.7%, indicating a significant increase in the mark-to-market portfolio strategy [10] Market Data and Key Metrics Changes - The portfolio ended the quarter with a stabilized occupancy of 95.5%, with rents indexed to inflation [8] - The company noted an uptick in vacancy in markets such as Tijuana and Juarez, but rents have maintained or increased in some cases [23] - The company has approximately 2 million square feet in lease-up stage across different regions [25] Company Strategy and Development Direction - The company is focused on extracting value from core operations and managing assets with discipline, emphasizing tenant retention and strategic positioning [12] - The strategy includes completing existing projects and strategically expanding the land bank in line with Route 2030 [11] - The company aims to reinforce its foundation to scale confidently when the environment normalizes, with a focus on energy infrastructure planning and streamlining permitting [12] Management's Comments on Operating Environment and Future Outlook - Management views the current slowdown in leasing as a temporary deceleration rather than a structural change, with companies exercising caution rather than canceling plans [14] - The company expects recent deliveries of income-producing properties to contribute to revenues in the second half of 2025 [15] - Management remains optimistic about the long-term growth potential in Mexico, particularly in light of industrial realignment [16] Other Important Information - The company acquired 128.4 acres in Guadalajara and finalized a 20.2-acre acquisition in Monterrey, enhancing its strategic footprint [20] - The company paid a cash dividend of $0.38 per ordinary share for the second quarter [21] Q&A Session Summary Question: Development pipeline progress ahead of USMCA review - Management noted an uptick in vacancy in some markets but expressed confidence in rent stability and pent-up demand as negotiations progress [23][24] Question: Leasing activity in Monterrey - Management highlighted strong net absorption in Monterrey and expressed confidence in leasing up new properties due to their prime locations [30][31] Question: Yield on cost for projects under construction - Management confirmed attractive yield on costs above 10% and noted stable construction costs with minor adjustments [39] Question: Land acquisitions and leverage by year-end - Management indicated a healthy leverage position and confidence in sustaining land acquisition strategies without compromising financial ratios [48] Question: Increase in leasing activity pipelines - Management observed increased visits to industrial parks and anticipated more leasing activity in the second half of the year [52] Question: Leasing spreads and development starts - Management expects continued strong leasing spreads and will be cautious with new development starts until existing properties are leased up [58][63] Question: Land bank and shovel-ready status - Management confirmed that recent land acquisitions are mostly shovel-ready, with some permits already in place [68][72] Question: Dynamics in absorption, vacancy, and rents - Management reported stable to positive rent growth in Tijuana and Ciudad Juarez, with expectations for increased leasing activity in the second half [80][81] Question: Renewals and market gaps - Management indicated approximately 3% of GLA expiring this year, with expectations for high renewal rates and rent increases [85][86] Question: Regional footprint and market priorities - Management emphasized the priority of leasing up vacant space in key markets like Monterrey and Ciudad Juarez before new developments [93]

Financial Data and Key Metrics Changes - Total revenues increased by 6.8% year over year, reaching $67 million, primarily driven by rental income from new leases and inflationary adjustments [14] - Adjusted net operating income rose by 7.2% to €61.8 million, with an adjusted NOI margin of 94.5% [15] - Adjusted EBITDA increased by 9% year over year to €55 million, with a margin expansion of 137 basis points to 84.1% [15] - Pre-tax income decreased to $54.5 million compared to $131.8 million in 2024, mainly due to lower gains on investment property valuations [16] - Funds from operations (FFO), excluding current tax, increased to $43.1 million from $38.2 million in Q2 2024, a 12.9% year-over-year increase [17] - Cash and cash equivalents stood at $65.2 million, while total debt increased to $900 million [17][18] Business Line Data and Key Metrics Changes - New leasing activity totaled 1.8 million square feet, including 411,000 square feet in new contracts, reflecting a sequential increase from Q1 [6][7] - Retention rates remained strong at 84%, with successful rent increases of 20% to 30% in some cases [7] - The tracking 12-month spread reached 13.7%, indicating a significant increase in the mark-to-market portfolio strategy [7] Market Data and Key Metrics Changes - The portfolio ended the quarter with a stabilized occupancy rate of 95.5%, with rents indexed to inflation [10] - The company noted a cautious leasing environment, particularly in export-linked markets, but highlighted resilience in renewals and releasing activity [5][6] - The company acquired 128.4 acres in Guadalajara and 20.2 acres in Monterrey, enhancing its strategic footprint [9][18] Company Strategy and Development Direction - The company is focused on long-term growth, emphasizing tenant retention, strategic positioning, and the intrinsic value of its existing portfolio [10] - The strategy includes completing existing projects and strategically expanding the land bank in line with Route 2030 [9] - The company aims to reinforce its foundation to scale confidently when the environment normalizes, including accelerating energy infrastructure planning [10][12] Management's Comments on Operating Environment and Future Outlook - Management views the current slowdown in leasing as a temporary deceleration rather than a structural change, with companies exercising caution rather than canceling plans [12] - The company expects recent deliveries of income-producing properties to contribute to revenues in the second half of 2025 [13] - Management remains optimistic about the long-term outlook, citing trade policy stabilization and manufacturing resilience as positive indicators for future growth [14] Other Important Information - The company paid a cash dividend of $0.38 per ordinary share for Q2 2025 [19] - The company maintains a healthy leverage position with a net debt to EBITDA ratio of four times and a loan to value ratio of 22.4% [18] Q&A Session Summary Question: Development pipeline progress ahead of USMCA review - Management noted an uptick in vacancy in some markets but expressed confidence in stable or increasing rents, indicating pent-up demand [20][22] Question: Leasing in Monterrey with weak net absorption - Management highlighted strong net absorption in Monterrey and expressed confidence in leasing up new properties due to their prime locations [28] Question: Yield on cost for projects under construction - Management confirmed attractive yield on costs above 10% and noted stable construction costs with minor adjustments [36][38] Question: Land acquisitions and leverage by year-end - Management reassured that leverage remains healthy and that land acquisitions align with their long-term strategy [42][46] Question: Increase in leasing activity pipelines - Management observed increased visits to industrial parks and anticipated more leasing activity in the second half of the year [50] Question: Leasing spreads expectations - Management expects continued strong leasing spreads and proactive management of tenant relationships [58] Question: Priorities for regional footprint and new starts - Management emphasized leasing up existing properties as a priority before considering new developments [90] Question: Impact of exchange rates on net income - Management clarified that most properties are dollar-denominated, and the impact on net income is primarily from financial adjustments rather than exchange rates [96][99] Question: Expected leasing activity from upcoming projects - Management expects high-quality assets to attract leasing activity within three to twelve months after delivery [104] Question: Exposure to manufacturing and logistics - Management indicated a balanced strategy between manufacturing and logistics, with a focus on long-term leases with high credit-rated companies [112] Question: Vertical integration and tenant demands - Management confirmed existing vertical integration and expressed interest in renewable energy solutions for tenants [120][122]

Company Overview - Vesta's property portfolio encompasses 431 million square feet of manufacturing and logistics facilities[14] - The company's property portfolio is valued at US$386 billion[14] Financial Performance (Q2 2025) - Total revenues reached $6727 million, a 68% increase compared to Q2 2024[20, 29] - Adjusted NOI was $6182 million, up 72% from $5768 million in Q2 2024[20, 29] - Adjusted EBITDA increased by 90% to $5500 million, compared to $5044 million in the same period last year[20, 29] - Vesta FFO stood at $4312 million, a 129% increase year-over-year[20, 31] - Total debt outstanding was $90036 million, representing a leverage ratio of 224%[20] Portfolio Metrics - Total portfolio occupancy was 923%[20] - Stabilized portfolio occupancy was 955%[20] - Same-store portfolio occupancy was 970%[20] Land Bank - Total land bank area is 9263 acres[16] - The market value of the land bank is $20451 million[16] Development Portfolio - The total expected investment in the development portfolio is $9096 million[16] - The development portfolio's GLA is 129 million square feet[16]

Report Overview [Conference Call & Contact Information](index=1&type=section&id=Conference%20Call%20%26%20Contact%20Information) Details for the Q2 2025 earnings conference call, including date, time, participation, and investor relations contacts - The **Q2 2025** earnings conference call is scheduled for **Friday, July 25, 2025**[4](index=4&type=chunk) - The call will take place at **9:00 a.m. (Mexico City Time)** and **11:00 a.m. (Eastern Time)**[4](index=4&type=chunk) - Key contacts for investor relations include **Juan Sottil (CFO)**, **Fernanda Bettinger (IRO)**, and **Barbara Cano (InspIR Group)**[5](index=5&type=chunk) Q2 2025 Highlights [Key Financial & Operational Achievements](index=2&type=section&id=Key%20Financial%20%26%20Operational%20Achievements) Vesta reported strong Q2 2025 financial results, with increased income, FFO, significant leasing, and strategic land acquisitions Q2 2025 Financial Performance Highlights (vs Q2 2024) | Metric | Q2 2025 (US$ million) | Q2 2024 (US$ million) | Change (%) | | :--------------------- | :-------------------- | :-------------------- | :--------- | | Total Income | 67.3 | 63.0 | 6.8% | | Total Income (excl. energy) | 65.4 | 61.0 | 7.3% | | Adjusted NOI Margin | 94.5% | - | - | | Adjusted EBITDA Margin | 84.1% | - | - | | Vesta FFO | 43.1 | 38.2 | 12.9% | | Vesta FFO per share | 0.050 | 0.0431 | 16.6% | - **Leasing activity** reached **1.8 million square feet** in **Q2 2025**, comprising **411 thousand sf** in new contracts and **1.4 million sf** in lease renewals[8](index=8&type=chunk) - **Total portfolio occupancy** was **92.3%**, with **stabilized occupancy** at **95.5%** and **same-store occupancy** at **97.0%** for **Q2 2025**[8](index=8&type=chunk) - Vesta acquired **128.4 acres** of land in Guadalajara (**2.3 million sf** buildable area) and finalized the acquisition of **20.2 acres** in Monterrey (**449 thousand sf** buildable area)[8](index=8&type=chunk) - The company has **1.3 million sf** in current construction, with an **estimated investment** of **US$ 91.0 million** and a **projected yield on cost** of **10.8%**[8](index=8&type=chunk) - Vesta paid **US$ 17.4 million** in **dividends** for **Q2 2025**, equivalent to **PS$ 0.3796** per ordinary share[8](index=8&type=chunk) - **Rodrigo Cueto Bosch** was appointed **Chief Investment Officer**, effective **October 1, 2025**[8](index=8&type=chunk) CEO Letter & Strategic Outlook [Macroeconomic Environment & Market Position](index=4&type=section&id=Macroeconomic%20Environment%20%26%20Market%20Position) CEO notes fluid macroeconomic environment, Mexico's USMCA advantage, and renewed industrial real estate momentum - The macro environment remains fluid and unsettled, with domestic uncertainties and U.S. tariff vulnerability[10](index=10&type=chunk) - Mexico's share of **U.S. imports** rose to **16.8%** in May, driven by **USMCA-compliant** exports and geographic proximity[10](index=10&type=chunk) - **President Trump** announced a planned **tariff increase** to **30%** on Mexican imports, potentially effective **August 1, 2025**, though **USMCA-compliant** goods remain exempt[11](index=11&type=chunk) - The U.S. **industrial real estate market** is accelerating, and Mexico is showing signs of renewed momentum with gradually picking up leasing transactions[12](index=12&type=chunk) [Operational Performance & Portfolio Growth](index=4&type=section&id=Operational%20Performance%20%26%20Portfolio%20Growth) Vesta's Q2 operational performance was strong, driven by solid leasing, cost containment, strategic land acquisitions, and high occupancy - Second quarter **leasing activity** reached **1.8 million square feet**, with **411 thousand square feet** in new contracts and **1.4 million square feet** in lease renewals[14](index=14&type=chunk) - **Stabilized** and **same-store occupancy** reached **95.5%** and **97.0%** respectively, exceeding historic averages[14](index=14&type=chunk) - The **portfolio's value** appreciated to **US$ 3.9 billion** as of **June 30, 2025**, a **4.4%** increase from **December 31, 2024**[14](index=14&type=chunk) - Acquired **128.4 acres** in Guadalajara and completed the acquisition of **20.2 acres** in Monterrey, strengthening the company's footprint in strategic locations[15](index=15&type=chunk) Q2 2025 Key Financial Results | Metric | Q2 2025 (US$ million) | Q2 2024 (US$ million) | Change (%) | | :--------------------- | :-------------------- | :-------------------- | :--------- | | Total Income | 67.3 | - | 6.8% | | NOI | 61.8 | - | 7.2% | | NOI Margin | 94.5% | - | -7 bps | | EBITDA | 55.0 | 50.4 | 9.0% | | EBITDA Margin | 84.1% | 82.7% | +137 bps | | Vesta FFO | 43.1 | 38.2 | 12.9% | [Strategic Focus & Future Outlook](index=4&type=section&id=Strategic%20Focus%20%26%20Future%20Outlook) Vesta maintains a clear strategy to preserve value, strengthen its foundation, and invest in anticipation of long-term demand - **Vesta's strategy** is to preserve value, strengthen its foundation, and invest in anticipation of long-term demand, guided by discipline, foresight, and execution[17](index=17&type=chunk) - The company is confident that its portfolio, strong financial performance, and prudent capital allocation will enable it to capture renewed demand as conditions stabilize[18](index=18&type=chunk) Detailed Financial Performance (Q2 2025) [Revenues](index=6&type=section&id=Revenues) Total revenues for Q2 2025 increased by 6.8% to US$ 67.3 million, driven by new contracts and inflationary adjustments Q2 2025 Revenue Breakdown (vs Q2 2024) | Revenue Type (million US$) | Q2 2025 | Q2 2024 | Chg. % | | :------------------------- | :------ | :------ | :------- | | Rental income | 62.2 | 57.7 | 7.9 | | Reimbursable building services | 3.2 | 3.3 | (4.3) | | Energy Income | 1.9 | 2.0 | (8.4) | | Management Fees | 0.0 | 0.0 | na | | **Total Revenues** | **67.3** | **63.0** | **6.8** | - The **US$ 4.3 million rental revenue increase** was primarily due to a **US$ 5.3 million** increase from newly rented space and a **US$ 2.0 million** increase from inflationary adjustments[22](index=22&type=chunk) - Results were partially offset by a **US$ 1.8 million** decrease from non-renewed leases and a **US$ 0.8 million** decrease due to Peso-denominated rental income conversion[23](index=23&type=chunk) - **89.4%** of **Q2 2025 rental revenues** were **US dollar denominated** and indexed to the **US Consumer Price Index (CPI)**, an increase from **88.0%** in **Q2 2024**[24](index=24&type=chunk) [Property Operating Costs](index=7&type=section&id=Property%20Operating%20Costs) Total operating costs increased by 5.3% to US$ 6.5 million in Q2 2025, mainly due to higher costs for rental income-generating and non-generating properties Q2 2025 Property Operating Costs (vs Q2 2024) | Cost Type (million US$) | Q2 2025 | Q2 2024 | Chg. % | | :------------------------------------------ | :------ | :------ | :------- | | Total Operating Property Costs | (6.5) | (6.2) | 5.3 | | Related to properties that generate rental income | (5.6) | (5.3) | 4.8 | | Costs related to properties | (3.6) | (3.3) | 8.7 | | Costs related to energy | (2.0) | (2.0) | (1.5) | | Related to properties that did not generate rental income | (0.9) | (0.8) | 8.8 | - Increased costs related to **investment properties generating rental revenues** were primarily attributable to higher **real estate taxes**, **insurance**, and other property-related expenses[26](index=26&type=chunk) - Costs from **investment properties not generating rental revenues** increased by **US$ 0.1 million** due to higher **insurance costs**, maintenance, and a higher vacancy rate at Vesta Parks[27](index=27&type=chunk) [Adjusted Net Operating Income (Adjusted NOI)](index=7&type=section&id=Adjusted%20Net%20Operating%20Income%20(Adjusted%20NOI)) Adjusted NOI increased by 7.2% to US$ 61.8 million in Q2 2025, with a slight margin decrease due to higher costs Q2 2025 Adjusted NOI Performance (vs Q2 2024) | Metric (million US$) | Q2 2025 | Q2 2024 | Chg. % | | :------------------- | :------ | :------ | :------- | | Adjusted NOI | 61.8 | 57.7 | 7.2 | | Adjusted NOI Margin % | 94.5% | 94.6% | - | - The **7-basis-point** year-on-year decrease in **Adjusted NOI margin** was due to a slight increase in costs related to rental income generating properties[28](index=28&type=chunk) [General and Administrative Expenses](index=7&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses decreased by 8.0% to US$ 8.3 million in Q2 2025, reflecting cost control discipline Q2 2025 General and Administrative Expenses (vs Q2 2024) | Metric (million US$) | Q2 2025 | Q2 2024 | Chg. % | | :-------------------------------- | :------ | :------ | :------- | | General and Administrative Expenses | (8.3) | (9.0) | (8.0) | | Stock-based Compensation Expenses | 2.4 | 2.7 | (8.5) | - The decrease was primarily due to a reduction in the provision for employee annual salary and short-term benefits, marketing expenses, and other administrative expenses, as part of the Company's **cost control discipline**[29](index=29&type=chunk) [Depreciation](index=7&type=section&id=Depreciation) Depreciation expense remained consistent at US$ 0.1 million in Q2 2025, reflecting office space, equipment, and operating systems amortization Q2 2025 Depreciation (vs Q2 2024) | Metric (million US$) | Q2 2025 | Q2 2024 | Chg. % | | :----------- | :------ | :------ | :------- | | Depreciation | (0.1) | (0.1) | (23.0) | - This amount reflects office space and equipment depreciation as well as the amortization of Vesta's operating systems[31](index=31&type=chunk) [Adjusted EBITDA](index=8&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA increased by 9.0% to US$ 55.0 million in Q2 2025, with the margin improving by 137 basis points due to lower administrative expenses Q2 2025 Adjusted EBITDA Performance (vs Q2 2024) | Metric (million US$) | Q2 2025 | Q2 2024 | Chg. % | | :----------------- | :------ | :------ | :------- |\n| Adjusted EBITDA | 55.0 | 50.4 | 9.0 |\n| Adjusted EBITDA Margin % | 84.1% | 82.7% | - | - The **137-basis-point** increase in **Adjusted EBITDA margin** was primarily due to lower administrative expenses during **Q2 2025**[33](index=33&type=chunk) [Other Income and Expense](index=8&type=section&id=Other%20Income%20and%20Expense) Total other expense was US$ 2.2 million in Q2 2025, a significant decrease from Q2 2024, mainly due to lower gain on revaluation of investment properties Q2 2025 Other Income and Expenses (vs Q2 2024) | Metric (million US$) | Q2 2025 | Q2 2024 | Chg. % | | :------------------------------------ | :------ | :------ | :------- | | Interest income | 0.4 | 4.1 | (91.3) | | Other (expenses) income | 0.9 | 1.1 | (21.4) | | Other net income energy | (0.9) | (2.3) | (60.5) | | Interest expense | (11.9) | (12.3) | (3.0) | | Exchange gain (loss) | 6.3 | (6.5) | (197.1) | | Gain on revaluation of investment properties | 7.8 | 100.1 | (92.2) | | **Total other income (expenses)** | **2.2** | **84.2** | **(97.4)** | - **Interest income** decreased to **US$ 0.4 million** due to a lower cash position[35](index=35&type=chunk) - **Interest expense** decreased to **US$ 11.9 million**, reflecting a lower average debt balance[36](index=36&type=chunk) - **Foreign exchange** shifted from a **US$ 6.5 million** loss in **Q2 2024** to a **US$ 6.3 million** gain in **Q2 2025**[37](index=37&type=chunk) - **Gain on revaluation of investment properties** decreased significantly from **US$ 100.1 million** in **Q2 2024** to **US$ 7.8 million** in **Q2 2025** due to fewer new properties appraised[38](index=38&type=chunk) [Profit Before Income Taxes](index=9&type=section&id=Profit%20Before%20Income%20Taxes) Profit before income taxes significantly decreased by 58.7% to US$ 54.5 million in Q2 2025, primarily due to lower gain on revaluation of investment properties Q2 2025 Profit Before Income Taxes (vs Q2 2024) | Metric (million US$) | Q2 2025 | Q2 2024 | Chg. % | | :----------------------- | :------ | :------ | :------- | | Profit Before Income Taxes | 54.5 | 131.8 | (58.7) | [Income Tax Expense](index=9&type=section&id=Income%20Tax%20Expense) Income tax expense increased by 18.9% to US$ 26.8 million in Q2 2025, reflecting the estimated effective tax rate for the year Q2 2025 Income Tax Expense (vs Q2 2024) | Metric (million US$) | Q2 2025 | Q2 2024 | Chg. % | | :----------------- | :------ | :------ | :------- | | Income Tax Expense | (26.8) | (22.5) | 18.9 | | Current Tax | (5.4) | (17.9) | (69.6) | | Deferred Tax | (21.4) | (4.7) | 357.9 | - The **income tax expense** is calculated based on the estimated **2025 Effective Tax Rate (ETR)**, considering stable balances, statutory rate, expected exchange rates on tax balances, and expected effects of inflation[41](index=41&type=chunk) [Profit for the Period](index=9&type=section&id=Profit%20for%20the%20Period) Profit for the period decreased significantly by 74.6% to US$ 27.7 million in Q2 2025, driven by lower profit before tax and increased income tax expense Q2 2025 Profit for the Period (vs Q2 2024) | Metric (million US$) | Q2 2025 | Q2 2024 | Chg. % | | :----------------- | :------ | :------ | :------- | | Profit for the Period | 27.7 | 109.3 | (74.6) | [Total Comprehensive Income (Loss) for the Period](index=9&type=section&id=Total%20Comprehensive%20Income%20(Loss)%20for%20the%20Period) Total comprehensive income for Q2 2025 was US$ 31.4 million, a 71.3% decrease from Q2 2024, mainly due to lower profit Q2 2025 Total Comprehensive Income (vs Q2 2024) | Metric (million US$) | Q2 2025 | Q2 2024 | Chg. % | | :------------------------------------ | :------ | :------ | :------- | | Total Comprehensive Income for the period | 31.4 | 109.6 | (71.3) | - This **comprehensive income** was partially increased by a **US$ 3.7 million** gain in exchange differences when translating other functional currency operations[43](index=43&type=chunk) Financial Position & Portfolio Metrics [Funds from Operations (FFO)](index=10&type=section&id=Funds%20from%20Operations%20(FFO)) Vesta FFO increased by 12.9% to US$ 43.1 million in Q2 2025, with FFO per share rising by 16.6% Q2 2025 Vesta FFO Performance (vs Q2 2024) | Metric (million US$) | Q2 2025 | Q2 2024 | Chg. % | | :-------------------------- | :------ | :------ | :------- | | Vesta FFO | 43.1 | 38.2 | 12.9 | | Vesta FFO per share | 0.0502 | 0.0431 | 16.6 | | Vesta FFO (-) Tax Expense | 37.7 | 20.3 | 85.4 | | Vesta FFO (-) Tax Expense per share | 0.0439 | 0.0229 | 91.5 | - The increase in **Vesta FFO after tax expense** is due to a combination of higher EBITDA, lower interest expenses, lower taxes, and a decreased number of shares outstanding[9](index=9&type=chunk) [Capital Expenditures (Capex)](index=10&type=section&id=Capital%20Expenditures%20(Capex)) Investing activities during Q2 2025 totaled US$ 111.1 million, primarily allocated to new building construction and land bank purchases - **Investing activities** during **Q2 2025** resulted in a total expense of **US$ 111.1 million**[46](index=46&type=chunk) - These investments were primarily related to payments for works in progress in the construction of new buildings in the Northern, Bajio, and Central regions, as well as land bank purchases[46](index=46&type=chunk) [Debt Structure](index=10&type=section&id=Debt%20Structure) As of June 30, 2025, Vesta's total debt was US$ 900.4 million, predominantly long-term, US dollar-denominated, and largely fixed-rate - The Company's overall balance of **total debt** was **US$ 900.4 million** as of **June 30, 2025**[47](index=47&type=chunk) - Of the **total debt**, **US$ 5.0 million** is related to short-term liabilities and **US$ 895.4 million** to long-term liabilities[47](index=47&type=chunk) - **100%** of **Vesta's debt** was denominated in US dollars, and **88.9%** of its interest rate was fixed[47](index=47&type=chunk) - Approximately **32.7%** of **total debt** is secured by some of the Company's investment properties and related income[47](index=47&type=chunk) [Portfolio Performance & Composition](index=10&type=section&id=Portfolio%20Performance%20%26%20Composition) Vesta's portfolio consists of 231 high-quality industrial assets across Mexico, with strong stabilized and same-store occupancy rates [Stabilized Portfolio Performance](index=10&type=section&id=Stabilized%20Portfolio%20Performance) Vesta's stabilized portfolio grew to 40.2 million sf in Q2 2025, with an overall occupancy of 95.5% Stabilized Portfolio by Region (Q2 2025 vs Q2 2024) | Region | Q2 2025 SF | Q2 2025 % | Q2 2024 SF | Q2 2024 % | | :------------- | :--------- | :-------- | :--------- | :-------- | | Central Mexico | 8,277,643 | 20.6% | 7,256,310 | 19.7% | | Bajio | 18,937,695 | 47.1% | 18,024,250 | 49.0% | | North | 12,990,342 | 32.3% | 11,527,878 | 31.3% | | **Total** | **40,205,680** | **100%** | **36,808,437** | **100%** | Stabilized Portfolio Occupancy by Region (Q2 2025 vs Q2 2024) | Region | Q2 2025 Occupancy SF | Q2 2025 % Total | Q2 2024 Occupancy SF | Q2 2024 % Total | | :------------- | :------------------- | :-------------- | :------------------- | :-------------- | | Central Mexico | 8,277,643 | 100.0% | 7,256,310 | 100.0% | | Bajio | 18,183,753 | 96.0% | 17,188,291 | 95.4% | | North | 11,927,045 | 91.8% | 11,459,498 | 99.4% | | **Total** | **38,388,441** | **95.5%** | **35,904,098** | **97.5%** | - The 'operating portfolio' calculation includes properties which have reached **80% occupancy** or have been completed for more than one year, whichever occurs first[49](index=49&type=chunk) [Same-Store Portfolio Performance](index=11&type=section&id=Same-Store%20Portfolio%20Performance) The same-store portfolio expanded to 36.8 million sf in Q2 2025, with an occupancy rate of 97.0% Same-Store Portfolio by Region (Q2 2025 vs Q2 2024) | Region | Q2 2025 SF | Q2 2025 % | Q2 2024 SF | Q2 2024 % | | :------------- | :--------- | :-------- | :--------- | :-------- | | Central Mexico | 7,256,309 | 19.7% | 7,179,938 | 21.5% | | Bajio | 18,026,641 | 49.0% | 15,970,183 | 47.7% | | North | 11,480,854 | 31.2% | 10,297,622 | 30.8% | | **Total** | **36,763,804** | **100%** | **33,447,743** | **100%** | Same-Store Portfolio Occupancy by Region (Q2 2025 vs Q2 2024) | Region | Q2 2025 Occupancy SF | Q2 2025 % Total | Q2 2024 Occupancy SF | Q2 2024 % Total | | :------------- | :------------------- | :-------------- | :------------------- | :-------------- | | Central Mexico | 7,256,309 | 100.0% | 7,179,938 | 100.0% | | Bajio | 17,272,699 | 95.8% | 15,304,208 | 95.8% | | North | 11,146,638 | 97.1% | 10,229,242 | 99.3% | | **Total** | **35,675,646** | **97.0%** | **32,713,387** | **97.8%** | - This metric includes properties within the Company's portfolio which have been stabilized for the entirety of current and comparable periods[51](index=51&type=chunk) [Total Portfolio Overview](index=11&type=section&id=Total%20Portfolio%20Overview) As of June 30, 2025, Vesta's total portfolio comprised 231 industrial assets with a GLA of 41.7 million sf - As of **June 30, 2025**, **Vesta's portfolio** was comprised of **231 high-quality industrial assets**, with a **total gross leased area (GLA)** of **41.7 million sf**[53](index=53&type=chunk) - **89.4%** of the Company's income is denominated in US dollars[53](index=53&type=chunk) - Vesta's properties are located in key economic growth regions of Mexico (Northern, Central, and Bajio regions) and serve predominantly multinational companies across diverse industries[53](index=53&type=chunk) Total Portfolio by Region (Q2 2025 vs Q1 2025) | Region | Total Portfolio SF (Q2 2025) | % (Q2 2025) | Total Portfolio SF (Q1 2025) | % (Q1 2025) | | :------------- | :--------------------------- | :---------- | :--------------------------- | :---------- | | Central Mexico | 8,576,841 | 20.5% | 8,405,555 | 20.4% | | Bajio | 19,533,041 | 46.8% | 19,533,041 | 47.4% | | North | 13,628,161 | 32.7% | 13,263,621 | 32.2% | | **Total** | **41,738,043** | **100%** | **41,202,217** | **100%** | [Total Vacancy](index=12&type=section&id=Total%20Vacancy) Vesta's total property portfolio vacancy rate increased slightly to 7.7% as of June 30, 2025, with the North region experiencing the highest vacancy - **Vesta's property portfolio** had a **7.7% vacancy rate** as of **June 30, 2025**[55](index=55&type=chunk) Total Vacancy by Region (Q2 2025 vs Q1 2025) | Region | Q2 2025 Vacant SF | Q2 2025 % Total | Q1 2025 Vacant SF | Q1 2025 % Total | | :------------- | :---------------- | :-------------- | :---------------- | :-------------- | | Central Mexico | 299,198 | 3.5% | 299,198 | 3.6% | | Bajio | 1,198,442 | 6.1% | 1,377,640 | 7.1% | | North | 1,701,116 | 12.5% | 1,297,365 | 9.8% | | **Total** | **3,198,756** | **7.7%** | **2,974,203** | **7.2%** | [Projects Under Construction](index=12&type=section&id=Projects%20Under%20Construction) Vesta has 1.3 million sf of projects under construction, with an estimated investment of US$ 91.0 million and an expected completion date of August 15, 2025 - Vesta is currently developing **1,291,613 sf** (**119,995 m²**) in inventory and **BTS buildings**[57](index=57&type=chunk) - The **estimated investment** for these projects is approximately **US$ 91.0 million**, with a **projected yield on cost** of **10.8%**[8](index=8&type=chunk)[57](index=57&type=chunk) Projects Under Construction (Q2 2025) | Project | GLA (SF) | Investment (thousand USD) | Type | Expected Termination Date | City | Region | | :-------------- | :--------- | :------------------------ | :-------- | :------------------------ | :-------- | :------------ | | Apodaca 8 | 730,762 | 57.2 | Inventory | 8/15/2025 | Monterrey | North Region | | PIQ-13 | 186,983 | 12.3 | Inventory | 8/15/2025 | Querétaro | Bajio Region | | Querétaro 8 | 218,194 | 12.2 | Inventory | 8/15/2025 | Querétaro | Bajio Region | | Querétaro 9 | 155,674 | 9.3 | Inventory | 8/15/2025 | Querétaro | Bajio Region | | **Total** | **1,291,613** | **91.0** | | | | | [Land Reserves](index=13&type=section&id=Land%20Reserves) Vesta's land reserves increased by 19.7% to 40.3 million sf as of June 30, 2025, positioning the company for future development - The Company had **40.3 million sf** in **land reserves** as of **June 30, 2025**[58](index=58&type=chunk)[59](index=59&type=chunk) Land Reserves by Region (June 30, 2025 vs March 31, 2025) | Region | Gross Land Area (SF) (March 31, 2025) | Gross Land Area (SF) (June 30, 2025) | % Chg. | | :---------------- | :------------------------------------ | :----------------------------------- | :------- | | Tijuana | 3,847,171 | 4,005,262 | 4% | | Monterrey | 0 | 885,988 | na | | Juárez | 4,237,626 | 4,237,626 | —% | | San Luis Potosí | 2,555,692 | 2,555,692 | 0.0% | | Querétaro | 3,561,966 | 3,561,966 | 0.0% | | Guanajuato | 3,404,979 | 3,404,979 | 0.0% | | Aguascalientes | 10,281,833 | 10,281,833 | —% | | SMA | 3,597,220 | 3,597,220 | 0.0% | | Guadalajara | 1,408,555 | 7,001,510 | 397% | | Puebla | 0 | 0 | na | | Mexico City | 815,780 | 815,780 | —% | | **Total** | **33,710,821** | **40,347,855** | **19.7%** | Six-Month Financial Summary (YTD 2025) [Consolidated Performance Overview](index=14&type=section&id=Consolidated%20Performance%20Overview) For the first six months of 2025, Vesta reported an 8.7% increase in total revenues, but profit before tax and profit for the period saw significant declines 6-Month 2025 Consolidated Financial Performance (vs 6-Month 2024) | Metric (million US$) | 6 Months 2025 | 6 Months 2024 | Chg. % | | :------------------------------------------------ | :------------ | :------------ | :------- | | Total Revenues | 134.3 | 123.6 | 8.7 | | Total Operating Property Costs | (11.7) | (10.7) | 9.6 | | Adjusted Net Operating Income | 123.9 | 115.0 | 7.8 | | General and Administrative Expenses | (16.6) | (17.3) | (3.8) | | Adjusted EBITDA | 110.3 | 101.1 | 9.1 | | Total other income (expenses) | (22.2) | 187.3 | (111.8) | | Profit Before Income Taxes | 83.1 | 282.4 | (70.6) | | Income Tax Expense | (40.4) | (48.3) | (16.2) | | Profit for the Period | 42.6 | 234.2 | (81.8) | | Total Comprehensive Income for the period | 43.7 | 233.6 | (81.3) | - The significant decline in **profit before tax** and **profit for the period** was primarily due to a decrease in the revaluation of investment properties and interest income, resulting in **total other expense** of **US$ 22.2 million** compared to a **US$ 187.3 million** gain in the prior year[65](index=65&type=chunk)[66](index=66&type=chunk) - **Capex** for the first six months of **2025** reached **US$ 169.4 million**, related to investment property development and land purchases[67](index=67&type=chunk) Subsequent Events [Dividends](index=16&type=section&id=Dividends) Vesta paid a cash dividend for Q2 2025 equivalent to PS$ 0.3796 per ordinary share on July 15, 2025 - Vesta shareholders approved a **US$ 69.5 million dividend** at the Annual General Shareholders Meeting on **March 19, 2025**, to be paid in quarterly installments[68](index=68&type=chunk) - A **cash dividend** for **Q2 2025** equivalent to **PS$ 0.3796** per ordinary share was paid on **July 15, 2025**[69](index=69&type=chunk)[70](index=70&type=chunk) Appendix: Financial Statements [Consolidated Interim and Annual Statements of Profit and Other Comprehensive Income](index=17&type=section&id=Consolidated%20Interim%20and%20Annual%20Statements%20of%20Profit%20and%20Other%20Comprehensive%20Income) This section presents the consolidated interim and annual statements of profit and other comprehensive income for Q2 and 6 months ended June 30, 2025, and 2024 Consolidated Interim and Annual Statements of Profit and Other Comprehensive Income (Q2 & 6 Months 2025 vs 2024) | Metric (million) | Q2 2025 | Q2 2024 | Chg. % | 6 months 2025 | 6 months 2024 | Chg. % | | :------------------------------------------------ | :------ | :------ | :------- | :------------ | :------------ | :------- | | Total Revenues | 67.3 | 63.0 | 6.8 | 134.3 | 123.6 | 8.7 | | Total Operating Property Costs | (6.5) | (6.2) | 5.3 | (11.7) | (10.7) | 9.6 | | Adjusted Net Operating Income | 61.8 | 57.7 | 7.2 | 123.9 | 115.0 | 7.8 | | General and Administrative Expenses | (8.3) | (9.0) | (8.0) | (16.6) | (17.3) | (3.8) | | Adjusted EBITDA | 55.0 | 50.4 | 9.0 | 110.3 | 101.1 | 9.1 | | Total other income (expenses) | 2.2 | 84.2 | (97.4) | (22.2) | 187.3 | (111.8) | | Profit Before Income Taxes | 54.5 | 131.8 | (58.7) | 83.1 | 282.4 | (70.6) | | Income Tax Expense | (26.8) | (22.5) | 18.9 | (40.4) | (48.3) | (16.2) | | Profit for the Period | 27.7 | 109.3 | (74.6) | 42.6 | 234.2 | (81.8) | | Total Comprehensive Income for the period | 31.4 | 109.6 | (71.3) | 43.7 | 233.6 | (81.3) | [Consolidated Statements of Financial Position](index=18&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) This section provides the consolidated statements of financial position as of June 30, 2025, and December 31, 2024 Consolidated Statements of Financial Position (million US$) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | **ASSETS** | | | | Total current assets | 138.7 | 243.8 | | Investment properties | 3,859.0 | 3,696.8 | | Total non-current assets | 3,877.6 | 3,714.2 | | **TOTAL ASSETS** | **4,016.3** | **3,957.9** | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | Total current liabilities | 76.3 | 90.8 | | Long-term debt | 895.4 | 797.2 | | Deferred income taxes | 469.0 | 442.8 | | Total non-current liabilities | 1,397.0 | 1,269.8 | | **TOTAL LIABILITIES** | **1,473.3** | **1,360.7** | | Total shareholders' equity | 2,543.1 | 2,597.3 | | **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | **4,016.3** | **3,957.9** | [Consolidated Statements of Cash Flows](index=19&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section presents the consolidated statements of cash flows for the six months ended June 30, 2025, and 2024 Consolidated Statements of Cash Flows (million US$) | Metric | June 30, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------ | | Net cash generated by operating activities | 89.73 | 37.7 | | Net cash used in investing activities | (171.0) | (101.3) | | Net cash (used in) generated by financing activities | (38.6) | (54.3) | | Effects of exchange rates changes on cash | 0.9 | (6.3) | | Net Increase in cash and cash equivalents | (118.9) | (124.2) | | Cash, restricted cash and cash equivalents at the beginning of period | 184.9 | 501.9 | | Cash, restricted cash and cash equivalents at the end of period | 66.0 | 377.7 | [Consolidated Statements of Changes in Stockholders' Equity](index=20&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) This section details the consolidated statements of changes in stockholders' equity for the periods ended June 30, 2025, and 2024 Consolidated Statements of Changes in Stockholders' Equity (million US$) | Metric | Capital Stock | Additional Paid-in Capital | Retained Earnings | Share based payment reserve | Foreign Currency Translation | Total Stockholders´ Equity | | :------------------------------------ | :------------ | :------------------------- | :---------------- | :-------------------------- | :--------------------------- | :------------------------- | | Balances as of January 1, 2025 | 585.5 | 905.7 | 1148.4 | 3.9 | (46.2) | 2597.3 | | Dividends declared | 0.0 | 0.0 | 69.5 | 0.0 | 0.0 | 69.5 | | Vested shares | 2.0 | 7.0 | 0.0 | 9.0 | 0.0 | 18.0 | | Share-based payments | 0.1 | 0.3 | 0.0 | 7.7 | 0.0 | 8.0 | | Repurchase of shares | 7.6 | 28.8 | 0.0 | 0.0 | 0.0 | 36.4 | | Comprehensive income (loss) | 0.0 | 0.0 | 42.6 | 0.0 | 1.1 | 43.7 | | Balances as of June 30, 2025 | 595.2 | 941.8 | 1,260.6 | 20.6 | (45.1) | 2,773.0 | Notes & Disclaimers [Accounting Standards & Exchange Rates](index=21&type=section&id=Accounting%20Standards%20%26%20Exchange%20Rates) This section clarifies that financial figures are prepared in accordance with IFRS and provides specific exchange rates used - All figures included in the report were prepared in accordance with **International Financial Reporting Standards (IFRS)**[6](index=6&type=chunk)[20](index=20&type=chunk)[75](index=75&type=chunk) Exchange Rates Used (US$) | Date | Exchange Rate | | :------------ | :------------ | | Balance Sheet (June 30, 2025) | 18.893 | | Income Statement (Q2 2025 average) | 19.981 | | Income Statement (6M 2025 average) | 19.981 | [Non-GAAP Financial Measures Definitions & Reconciliation](index=21&type=section&id=Non-GAAP%20Financial%20Measures%20Definitions%20%26%20Reconciliation) This section defines and reconciles non-GAAP financial measures like Adjusted EBITDA, NOI, Adjusted NOI, and Vesta FFO - **Adjusted EBITDA**, **NOI**, **Adjusted NOI**, and **Vesta FFO** calculations have been modified retroactively to exclude energy income and energy costs, as these are not actively managed business activities[85](index=85&type=chunk)[86](index=86&type=chunk) - **Adjusted EBITDA** is defined as profit for the year adjusted by various items including tax expense, interest income/expense, exchange gain/loss, gain on revaluation of investment property, depreciation, stock-based compensation, and energy income/costs[76](index=76&type=chunk)[87](index=87&type=chunk) - **Adjusted NOI** is defined as the sum of **NOI** plus property operating costs related to properties that did not generate rental income during the relevant period minus energy costs[77](index=77&type=chunk)[87](index=87&type=chunk) - **Vesta FFO** is defined as the sum of **FFO**, adjusted for the impact of exchange gain (loss) - net, other income – net, other energy income net, interest income, total income tax expense, depreciation and stock-based compensation expense and equity plus[78](index=78&type=chunk)[94](index=94&type=chunk) - These non-GAAP measures are used to supplement investor understanding of operating performance and facilitate comparisons, but are not substitutes for **IFRS** measures[88](index=88&type=chunk)[89](index=89&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) [Analyst Coverage](index=22&type=section&id=Analyst%20Coverage) In compliance with BMV regulations, Vesta is covered by analysts from 17 brokerage firms, including major financial institutions - Vesta is covered by analysts at **17 brokerage firms**, including **Actinver Casa de Bolsa**, **Barclays Bank Mexico**, **Bank of America**, **BBVA Bancomer**, **Citigroup Global Markets Inc.**, **Goldman Sachs**, and **J.P. Morgan Casa de Bolsa**[81](index=81&type=chunk)[83](index=83&type=chunk) [Forward-Looking Statements](index=22&type=section&id=Forward-Looking%20Statements) This section advises that the report may contain forward-looking statements subject to various risks, uncertainties, and assumptions - This report may contain forward-looking statements and information relating to the Company and its expected future performance[82](index=82&type=chunk) - Such statements are subject to a number of risks, uncertainties, and assumptions, including economic and political climates, changes in financial markets, competition, and tax laws[82](index=82&type=chunk)[84](index=84&type=chunk) - Readers are cautioned not to place undue reliance on these statements, and the Company undertakes no obligation to update or revise them except as required by law[84](index=84&type=chunk)

Core Insights - Investors in the Real Estate - Operations sector should consider TPG RE Finance Trust (TRTX) and Corporacion Inmobiliaria Vesta, S.A.B. de C.V. Sponsored ADR (VTMX) for potential value opportunities [1] Valuation Metrics - TRTX has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while VTMX has a Zacks Rank of 5 (Strong Sell), suggesting a negative earnings outlook [3] - TRTX's forward P/E ratio is 8.39, significantly lower than VTMX's forward P/E of 15.97, indicating TRTX may be undervalued [5] - TRTX has a PEG ratio of 2.28 compared to VTMX's PEG ratio of 4.15, suggesting TRTX offers better value relative to its expected earnings growth [5] - TRTX's P/B ratio is 0.59, while VTMX's P/B ratio is 8.81, further indicating TRTX's more attractive valuation [6] - Based on these metrics, TRTX holds a Value grade of B, whereas VTMX has a Value grade of F, highlighting TRTX as the superior option for value investors [6][7]

Group 1 - The investment approach has received over 500 five-star reviews from members, indicating high satisfaction and perceived benefits [1] - The company invests significant resources, over $100,000 annually, into researching profitable real estate investment opportunities [1] - The leader of the investing group High Yield Landlord shares real-time transactions and maintains three distinct portfolios: core, retirement, and international [2] Group 2 - Jussi Askola, the President of Leonberg Capital, is recognized for his expertise in REIT investing and has authored award-winning academic papers on the subject [2] - The investing group offers features such as buy/sell alerts and direct access to analysts for member inquiries [2]