Vesta Real Estate (VTMX) - 2025 Q2 - Quarterly Report

Report Overview Conference Call & Contact Information 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] - The call will take place at 9:00 a.m. (Mexico City Time) and 11:00 a.m. (Eastern Time)[4] - Key contacts for investor relations include Juan Sottil (CFO), Fernanda Bettinger (IRO), and Barbara Cano (InspIR Group)[5] Q2 2025 Highlights Key Financial & Operational Achievements 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] - Total portfolio occupancy was 92.3%, with stabilized occupancy at 95.5% and same-store occupancy at 97.0% for Q2 2025[8] - 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] - 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] - Vesta paid US$ 17.4 million in dividends for Q2 2025, equivalent to PS$ 0.3796 per ordinary share[8] - Rodrigo Cueto Bosch was appointed Chief Investment Officer, effective October 1, 2025[8] CEO Letter & Strategic Outlook Macroeconomic Environment & Market Position 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] - Mexico's share of U.S. imports rose to 16.8% in May, driven by USMCA-compliant exports and geographic proximity[10] - President Trump announced a planned tariff increase to 30% on Mexican imports, potentially effective August 1, 2025, though USMCA-compliant goods remain exempt[11] - The U.S. industrial real estate market is accelerating, and Mexico is showing signs of renewed momentum with gradually picking up leasing transactions[12] Operational Performance & Portfolio Growth 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] - Stabilized and same-store occupancy reached 95.5% and 97.0% respectively, exceeding historic averages[14] - The portfolio's value appreciated to US$ 3.9 billion as of June 30, 2025, a 4.4% increase from December 31, 2024[14] - 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] 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 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] - 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] Detailed Financial Performance (Q2 2025) 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] - 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] - 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] Property Operating Costs 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$) | Q2 2025 | Q2 2024 | Chg. % | | :------------------------------------------ | :------ | :------ | :------- | | Total Operating Property Costs | (6.5) | (6.2) | 5.3 | | Related to properties that generate rental income | (5.6) | (5.3) | 4.8 | | Costs related to properties | (3.6) | (3.3) | 8.7 | | Costs related to energy | (2.0) | (2.0) | (1.5) | | Related to properties that did not generate rental income | (0.9) | (0.8) | 8.8 | - Increased costs related to investment properties generating rental revenues were primarily attributable to higher real estate taxes, insurance, and other property-related expenses[26] - Costs from investment properties not generating rental revenues increased by US$ 0.1 million due to higher insurance costs, maintenance, and a higher vacancy rate at Vesta Parks[27] Adjusted Net Operating Income (Adjusted NOI) 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$) | Q2 2025 | Q2 2024 | Chg. % | | :------------------- | :------ | :------ | :------- | | Adjusted NOI | 61.8 | 57.7 | 7.2 | | Adjusted NOI Margin % | 94.5% | 94.6% | - | - The 7-basis-point year-on-year decrease in Adjusted NOI margin was due to a slight increase in costs related to rental income generating properties[28] General and Administrative Expenses General and administrative expenses decreased by 8.0% to US$ 8.3 million in Q2 2025, reflecting cost control discipline Q2 2025 General and Administrative Expenses (vs Q2 2024) | Metric (million US$) | Q2 2025 | Q2 2024 | Chg. % | | :-------------------------------- | :------ | :------ | :------- | | General and Administrative Expenses | (8.3) | (9.0) | (8.0) | | Stock-based Compensation Expenses | 2.4 | 2.7 | (8.5) | - The decrease was primarily due to a reduction in the provision for employee annual salary and short-term benefits, marketing expenses, and other administrative expenses, as part of the Company's cost control discipline[29] Depreciation Depreciation expense remained consistent at US$ 0.1 million in Q2 2025, reflecting office space, equipment, and operating systems amortization Q2 2025 Depreciation (vs Q2 2024) | Metric (million US$) | Q2 2025 | Q2 2024 | Chg. % | | :----------- | :------ | :------ | :------- | | Depreciation | (0.1) | (0.1) | (23.0) | - This amount reflects office space and equipment depreciation as well as the amortization of Vesta's operating systems[31] Adjusted EBITDA Adjusted EBITDA increased by 9.0% to US$ 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$) | Q2 2025 | Q2 2024 | Chg. % | | :----------------- | :------ | :------ | :------- |\n| Adjusted EBITDA | 55.0 | 50.4 | 9.0 |\n| Adjusted EBITDA Margin % | 84.1% | 82.7% | - | - The 137-basis-point increase in Adjusted EBITDA margin was primarily due to lower administrative expenses during Q2 2025[33] Other Income and Expense Total other expense was US$ 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] - Interest expense decreased to US$ 11.9 million, reflecting a lower average debt balance[36] - Foreign exchange shifted from a US$ 6.5 million loss in Q2 2024 to a US$ 6.3 million gain in Q2 2025[37] - 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] Profit Before Income Taxes 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$) | Q2 2025 | Q2 2024 | Chg. % | | :----------------------- | :------ | :------ | :------- | | Profit Before Income Taxes | 54.5 | 131.8 | (58.7) | Income Tax Expense Income tax expense increased by 18.9% to US$ 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$) | Q2 2025 | Q2 2024 | Chg. % | | :----------------- | :------ | :------ | :------- | | Income Tax Expense | (26.8) | (22.5) | 18.9 | | Current Tax | (5.4) | (17.9) | (69.6) | | Deferred Tax | (21.4) | (4.7) | 357.9 | - The income tax expense is calculated based on the estimated 2025 Effective Tax Rate (ETR), considering stable balances, statutory rate, expected exchange rates on tax balances, and expected effects of inflation[41] Profit for the Period Profit for the period decreased significantly by 74.6% to US$ 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$) | Q2 2025 | Q2 2024 | Chg. % | | :----------------- | :------ | :------ | :------- | | Profit for the Period | 27.7 | 109.3 | (74.6) | Total Comprehensive Income (Loss) for the Period Total comprehensive income for Q2 2025 was US$ 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] Financial Position & Portfolio Metrics Funds from Operations (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$) | Q2 2025 | Q2 2024 | Chg. % | | :-------------------------- | :------ | :------ | :------- | | Vesta FFO | 43.1 | 38.2 | 12.9 | | Vesta FFO per share | 0.0502 | 0.0431 | 16.6 | | Vesta FFO (-) Tax Expense | 37.7 | 20.3 | 85.4 | | Vesta FFO (-) Tax Expense per share | 0.0439 | 0.0229 | 91.5 | - The increase in Vesta FFO after tax expense is due to a combination of higher EBITDA, lower interest expenses, lower taxes, and a decreased number of shares outstanding[9] Capital Expenditures (Capex) Investing activities during Q2 2025 totaled US$ 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] - 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] Debt Structure 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] - Of the total debt, US$ 5.0 million is related to short-term liabilities and US$ 895.4 million to long-term liabilities[47] - 100% of Vesta's debt was denominated in US dollars, and 88.9% of its interest rate was fixed[47] - Approximately 32.7% of total debt is secured by some of the Company's investment properties and related income[47] Portfolio Performance & Composition Vesta's portfolio consists of 231 high-quality industrial assets across Mexico, with strong stabilized and same-store occupancy rates Stabilized Portfolio Performance 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] Same-Store Portfolio Performance 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] Total Portfolio Overview 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] - 89.4% of the Company's income is denominated in US dollars[53] - 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] 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 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] 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 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] - The estimated investment for these projects is approximately US$ 91.0 million, with a projected yield on cost of 10.8%[8][57] 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 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][59] 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 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][66] - Capex for the first six months of 2025 reached US$ 169.4 million, related to investment property development and land purchases[67] Subsequent Events 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] - A cash dividend for Q2 2025 equivalent to PS$ 0.3796 per ordinary share was paid on July 15, 2025[69][70] Appendix: Financial Statements Consolidated Interim and Annual Statements of Profit and Other Comprehensive Income 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 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$) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | ASSETS | | | | Total current assets | 138.7 | 243.8 | | Investment properties | 3,859.0 | 3,696.8 | | Total non-current assets | 3,877.6 | 3,714.2 | | TOTAL ASSETS | 4,016.3 | 3,957.9 | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | Total current liabilities | 76.3 | 90.8 | | Long-term debt | 895.4 | 797.2 | | Deferred income taxes | 469.0 | 442.8 | | Total non-current liabilities | 1,397.0 | 1,269.8 | | TOTAL LIABILITIES | 1,473.3 | 1,360.7 | | Total shareholders' equity | 2,543.1 | 2,597.3 | | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,016.3 | 3,957.9 | Consolidated Statements of Cash Flows This section presents the consolidated statements of cash flows for the six months ended June 30, 2025, and 2024 Consolidated Statements of Cash Flows (million US$) | 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 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$) | Metric | Capital Stock | Additional Paid-in Capital | Retained Earnings | Share based payment reserve | Foreign Currency Translation | Total Stockholders´ Equity | | :------------------------------------ | :------------ | :------------------------- | :---------------- | :-------------------------- | :--------------------------- | :------------------------- | | Balances as of January 1, 2025 | 585.5 | 905.7 | 1148.4 | 3.9 | (46.2) | 2597.3 | | Dividends declared | 0.0 | 0.0 | 69.5 | 0.0 | 0.0 | 69.5 | | Vested shares | 2.0 | 7.0 | 0.0 | 9.0 | 0.0 | 18.0 | | Share-based payments | 0.1 | 0.3 | 0.0 | 7.7 | 0.0 | 8.0 | | Repurchase of shares | 7.6 | 28.8 | 0.0 | 0.0 | 0.0 | 36.4 | | Comprehensive income (loss) | 0.0 | 0.0 | 42.6 | 0.0 | 1.1 | 43.7 | | Balances as of June 30, 2025 | 595.2 | 941.8 | 1,260.6 | 20.6 | (45.1) | 2,773.0 | Notes & Disclaimers Accounting Standards & Exchange Rates This section clarifies that financial figures are prepared in accordance with IFRS and provides specific exchange rates used - All figures included in the report were prepared in accordance with International Financial Reporting Standards (IFRS)[6][20][75] Exchange Rates Used (US$) | 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 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][86] - 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][87] - 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][87] - 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][94] - These non-GAAP measures are used to supplement investor understanding of operating performance and facilitate comparisons, but are not substitutes for IFRS measures[88][89][95][96] Analyst Coverage 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][83] Forward-Looking Statements 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] - 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][84] - 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]