Vesta Real Estate (US:VTMX)2024-10-24 21:08Financial 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]