Corporación Inmobiliaria Vesta Reports First Quarter 2023 Earnings Results

MEXICO CITY, April 20, 2023 /PRNewswire/ -- Corporación Inmobiliaria Vesta S.A.B. de C.V., ("Vesta", or the "Company") (BMV: VESTA), one of the leading pure-play industrial real estate companies in Mexico, today announced results for the first quarter ended March 31, 2023. All figures included herein were prepared in accordance with International Financial Reporting Standards (IFRS) and are stated in US dollars unless otherwise noted.

1Q 2023 Highlights

• Vesta delivered strong financial results for the first quarter of the year, reflected in a 19.5% year on year increase to reach US$ 50.2 million in revenue for the 1Q23, as compared to US$ 42.0 million in 1Q22. This increase is primarily due to US$ 6.1 million in new revenue-generating contracts and a US$ 2.3 million inflationary benefit on 1Q23 results. 1Q23 NOI and EBITDA margins reached 95.0% and 83.4%, respectively.
• First quarter 2023 leasing activity reached 2.2 million sf; 1.2 million sf of which were new contracts with companies such as Polaris, DB Schenker and TLC Moka, among others, and almost 1 million sf in lease renewals. Vesta's 1Q23 total portfolio occupancy therefore increased by 130 basis points year on year, to 95.1% from 93.8% in 1Q22; stabilized occupancy increased to 96.7% from 94.3% in 1Q22 and same store occupancy increased to 96.6% from 94.1% in 1Q22.
• 1Q23 NAV per share increased by 10.1% to US$ 2.87, from US$ 2.61 in 1Q22, while pretax FFO increased 21.6% to US$ 30.4 million in 1Q23 compared to US$ 25.0 million in 1Q22. 1Q23 pretax FFO per share increased 21.5% to US$ 0.0438, from US$ 0.0360 in 1Q22.

• Net Operating Income (NOI) increased 18.1% to US$ 47.7 million in 1Q23, compared to US$ 40.4 million in 1Q22. The 1Q23 NOI margin was 95.0%, a 120-basis-point year on year decrease due to higher costs at rent-generating properties.
• EBITDA increased 18.6% to US$ 42.0 million in 1Q23, as compared to US$ 35.4 million in 1Q22. 1Q23 EBITDA margin was 83.7%; a 60-basis-point decrease due to an increase in long term incentive expenses reflected in a year on year increase in administrative expenses, year on year.
• 1Q23 pre-tax funds from operations (pre-tax FFO) increased 21.6% to US$ 30.4 million, from US$ 25.0 million for the same period in 2022. Pretax FFO per share was US$ 0.0438 for the first quarter 2023, compared with US$ 0.0360 for the same period in 2022; a 21.5% increase. 1Q23 after tax FFO was US$ 9.7 million, compared to US$ 15.9 million in 1Q22. This decrease was due to higher income tax expenses from an increased higher exchange rate related current tax in 1Q23.
• 1Q23 total comprehensive gain was US$ 59.1 million, versus US$ 55.3 million in 1Q22. This increase was primarily due to a tax benefit in 1Q23.
• The total value of Vesta's investment property portfolio was US$ 2.79 billion as of March 31, 2023; a 2.0% increase compared to US$ 2.74 billion at the end of December 31, 2022.

For a full version of Corporación Inmobiliaria Vesta First Quarter 2023 Earnings Release please visit: https://vesta.com.mx/investors/financial_information

CONFERENCE CALL INFORMATION:

Vesta will host a conference call on Friday, April 21, 2023 to discuss these results at 11:00 a.m. Eastern Time / 9:00 a.m. Central Time (Mexico City Time).

To participate in the conference call, please connect via webcast or by dialing:  
US: +1-718-866-4614  
Mexico: +52-55-1168-9973  
Brazil: +55-61-2017-1549  
Participant Code: 748643  
Webcast: https://mm.closir.com/slides?id=748643

The call replay will be available 2 hours after the call has ended and can be accessed on Vesta's IR website.

About Vesta

Vesta is a best-in-class, fully integrated real estate company that owns, manages, acquires, sells, develops and re-develops industrial properties in Mexico. As of March 31, 2023, Vesta owned 202 properties located in modern industrial parks in 15 states of Mexico totaling a GLA of 33.7 million ft² (3.13 million m²). The Company has multinational clients, which are focused on industries such as e-commerce/retail, aerospace, automotive, food and beverage, logistics, medical devices, and plastics, among others. For additional information visit: www.vesta.com.mx.

Note on Forward-Looking Statements

This report may contain certain forward-looking statements and information relating to the Company that reflects the current views and/or expectations of the Company and its management with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like "believe," "anticipate," "expect," "envisages," "will likely result," or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, regional and local economic and political climates; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our properties; (iv) risks associated with acquisitions, dispositions and development of properties; (v) tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that we maintain; (vii) environmental uncertainties, including risks of natural disasters; (viii) risks related to the outbreak and spread of COVID-19 and the measures that governments, agencies, law enforcement and/or health authorities implement to address it; and (ix) those additional factors discussed in reports filed with the Bolsa Mexicana de Valores. We caution you that these important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation and in oral statements made by authorized officers of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as may be required by law.

SOURCE Corporación Inmobiliaria Vesta, S.A.B. de C.V.