Vesta Real Estate (VTMX) - 2025 Q3 - Quarterly Report

Financial Performance - Total income for Q3 2025 reached US$ 72.4 million, a 13.7% year-over-year increase from US$ 63.7 million in Q3 2024[9] - Adjusted NOI for Q3 2025 increased by 14.7% to US$ 66.1 million, with an Adjusted NOI margin of 94.4%[10] - Vesta FFO for Q3 2025 was US$ 47.4 million, reflecting a 16.5% increase compared to US$ 40.7 million in Q3 2024[9] - Vesta's total revenues for Q3 2025 increased by 13.7% to US$ 72.4 million, up from US$ 63.7 million in Q3 2024[22] - Adjusted EBITDA for Q3 2025 increased by 15.0% to US$ 59.7 million, with an EBITDA margin of 85.3%[33] - Profit before income taxes for Q3 2025 was US$ 52.4 million, down from US$ 62.7 million in Q3 2024, reflecting a 16.4% decrease[40] - Vesta's total comprehensive income for Q3 2025 was US$ 27.6 million, compared to US$ 43.4 million in Q3 2024[43] - Profit for the nine months of 2025 was US$ 67.6 million, a decrease of 76.4% compared to US$ 286.2 million in 2024[65] - Total comprehensive income for the nine months of 2025 was US$ 71.3 million, down 74.2% from US$ 276.7 million in 2024[66] Revenue and Income Sources - Rental income rose by US$ 8.7 million, primarily driven by a US$ 7.8 million increase from previously vacant space[22] - The company declared dividends of $69.5 million in 2025, up from $64.7 million in 2024, reflecting an increase of 12.9%[73] Expenses and Costs - Total operating costs for Q3 2025 reached US$ 8.2 million, a 27.1% increase from US$ 6.5 million in Q3 2024[25] - General and Administrative Expenses rose by 11.8% to US$ 7.8 million in Q3 2025, attributed to higher auditing and consulting expenses[29] - Income tax expense for Q3 2025 was US$ 27.4 million, significantly higher than US$ 10.7 million in Q3 2024[41] - The Company reported a significant increase in income tax expense, rising 156.2% to US$ 27.4 million in Q3 2025 compared to US$ 10.7 million in Q3 2024[47] - Finance costs for the three-month period ended September 30, 2025, were $12.3 million, slightly up from $11.2 million in 2024, an increase of 9.8%[91] Assets and Liabilities - Total assets increased to $4,601.2 million as of September 30, 2025, up from $3,957.9 million at the end of 2024, representing a growth of 16.3%[71] - Current liabilities increased to $224.0 million, up from $90.8 million, reflecting a rise of 146.0%[71] - Long-term debt surged to $1,278.9 million from $797.2 million, an increase of 60.3%[71] Cash Flow - Net cash generated by operating activities improved to $146.2 million compared to $79.2 million in the previous year, a growth of 84.5%[72] - Net cash used in investing activities was $224.9 million, up from $143.3 million, indicating a 57.0% increase[72] Portfolio and Occupancy - Vesta's stabilized portfolio occupancy was 94.3% at the end of Q3 2025, consistent with historical levels[13] - The overall vacancy rate for Vesta's property portfolio was 10.3% as of September 30, 2025[55] - The total portfolio comprised 235 industrial assets with a gross leased area of 43.0 million square feet, and 89.4% of income was in U.S. dollars[53] - Vesta is currently developing 376,016 square feet of inventory buildings, expected to be completed by April 2026[57] - The Company had 39.7 million square feet in land reserves as of September 30, 2025[58] Capital Expenditures - Vesta's capital expenditures for Q3 2025 totaled US$ 56.7 million, primarily for construction and land bank purchases[46] - Capital expenditures (Capex) for the nine months of 2025 reached US$ 226.5 million, related to investment property development and land purchases[66] Shareholder Information - Vesta paid US$ 17.4 million in dividends for Q3 2025, equivalent to MXN$ 0.3751 per ordinary share[9] - The company approved a US$ 69.5 million dividend to be paid in quarterly installments[67] Other Financial Metrics - Adjusted EBITDA for the nine months of 2025 reached US$ 170.0 million, an 11.9% increase compared to US$ 152.0 million in 2024[64] - The diluted EPS for the nine months of 2025 was US$ 0.0828, compared to US$ 0.3104 in the same period of 2024[70] - Adjusted NOI for the nine-month period ended September 30, 2025, reached $190.0 million, compared to $171.5 million in 2024, indicating a 10.8% increase[91]