Financial Data and Key Metrics Changes - Total income for Q3 2025 reached $72.4 million, a 13.7% year-over-year increase, while total income excluding energy reached $69.9 million, a 14.5% increase [5][17] - Adjusted net operating income increased 14.7% to $66.1 million, with an adjusted NOI margin of 94.4%, reflecting higher operating leverage as revenue growth outpaced costs [17] - Adjusted EBITDA totaled $59.7 million, a 15% increase year-over-year, with a margin expansion of 34 basis points to 85.3% [17] - FFO, including current tax, increased 16.5% year-over-year to $47.4 million [17] - The company revised its full-year 2025 guidance, expecting EBITDA margin to reach 84.5% and revenue growth between 10% and 11% [15][17] Business Line Data and Key Metrics Changes - Total leasing activity for Q3 2025 reached 1.7 million square feet, with 597,000 square feet in new leases and 1.1 million square feet in renewals [5] - The retention rate remains high, and rents on rollovers continue to trend upward, indicating strong tenant relationships [5] - The overall portfolio occupancy dipped slightly to 89.7%, while stabilized and same-store occupancy reached 94.3% and 94.8% respectively [6] Market Data and Key Metrics Changes - In Monterrey, the company completed construction of Apodaca Park, with strong interest from advanced manufacturing and logistics companies [6] - Ciudad Juárez saw a market turnaround with a 130 basis point contraction in overall vacancy and 1.3 million square feet of net absorption during the quarter [9] - Tijuana is experiencing slower recovery due to high vacancy from recent supply influx, but early signs of reactivation are noted [10] - Guadalajara maintained a healthy 2.8% vacancy rate, while Mexico City reported record absorption year-to-date, with a low vacancy of just 2% [11] Company Strategy and Development Direction - The company is focused on its Route 2030 growth strategy, prioritizing markets with visible tenant demand and ensuring capital allocation is tied to quality and market visibility [15] - The company is highly selective in determining future tenants, particularly in Monterrey, which is a key nearshoring destination [7] - The company aims to maintain a conservative capital allocation strategy, focusing on asset recycling and reinvesting in higher growth opportunities [15] Management's Comments on Operating Environment and Future Outlook - Management noted encouraging signs of improvement in leasing momentum and tenant demand, indicating a normalization of the market [4] - The company is confident in its ability to capture anticipated demand in 2026, supported by improving demand indicators [6] - Management emphasized the importance of energy supply and collaboration with federal authorities to enhance reliability for industrial users [12][13] Other Important Information - The company successfully completed a $500 million senior unsecured notes offering, enhancing liquidity and extending maturity profiles [18] - The company sold an 80,604 square feet building in Ciudad Juárez for $5.5 million, approximately 10% above appraised value [15][19] Q&A Session Summary Question: Long-term development pipeline acceleration - Management indicated positive demand signals across most markets, with a focus on mid to long-term plans for Route 2030, analyzing demand trends carefully [22][24] Question: Demand from existing vs. new tenants - Demand is coming from both existing tenants and new tenants, with interest from various industries including electronics and aerospace [25][26] Question: Update on leasing activity in October - Management confirmed leasing activity in various regions, including logistics operations in Ciudad Juárez and Tijuana [29][30] Question: Sustainability of improved EBITDA margins - Management expressed confidence in maintaining strong EBITDA margins due to a focus on expense control and operational efficiency [35][36] Question: Indicators for launching new developments - Decisions are based on internal data, occupancy trends, and direct communication with clients, ensuring alignment with market demand [53][56] Question: Trends in real estate taxes and insurance costs - No major adjustments in insurance costs or real estate taxes were noted, with costs being competitive for tenants [73][75]