Corporación Inmobiliaria Vesta Reports First Quarter 2024 Earnings Results
Q1 2024 Highlights
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Vesta delivered outstanding financial results for the first quarter 2024, achieving
US$ 60.6 million in total income; a 21.3% year over year increase. Q1 2024 Adjusted NOI margin and Adjusted EBITDA margin reached 96.0% and 84.7%, respectively. Vesta FFO ended Q1 2024 atUS$ 40.4 million ; a 32.4% increase compared toUS$ 30.5 million in Q1 2023. - First quarter 2024 leasing activity reached 2.0 million sf: 1.2 million sf in new contracts- including a pre-lease with Latin America’s largest e-commerce company and longtime Vesta client- among others, and 0.8 million sf in lease renewals. Vesta’s first quarter 2024 total portfolio occupancy reached 94.0%, while stabilized and same-store occupancy reached 97.1% and 97.4%, respectively.
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During the first quarter 2024, Vesta preleased 845,957 sf within its
Vesta Park Punta Norte building inMexico City to one of the largest e-commerce Companies inLatin America , underscoring Vesta’s leadership position and success in building a strong presence within Mexico’s key metropolitan areas. - Trailing twelve-month renewals and re-leasing reached 4.1 million sf with a weighted average spread of 8.0%. Same-store NOI increased by 5.6% year on year.
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New construction during the quarter exceeded 1.0 million sf: Vesta began construction on three new buildings in Monterrey and one in
Queretaro for Vesta´s longtime client Safran, aligned with the Company’s growth plan and reflecting strong market dynamics. Vesta’s current construction in progress reached 4.1 million sf by the end of the first quarter 2024, representing aUS$ 344.5 million estimated investment and a 10.1% yield on cost, in markets includingMexico City ,Ciudad Juarez , Monterrey andBajio region. - Vesta achieved 28% of its ESG Bond KPIs related to the portfolio’s green certified GLA, by year end 2023, exceeding its targeted 2031 timeframe. This was achieved through the Company´s focus on GLA certification for existing properties and by the accelerated portfolio growth in recent years. Vesta continues to monitor these KPIs, as any asset sales or changes to the portfolio composition can impact this metric.
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Vesta sold a non-strategic land lease property in the
Bajio for US$780,000 during the first quarter 2024 as part of the Company’s strategy to opportunistically recycle non-strategically relevant assets.
Financial Indicators (million) |
Q1 2024 |
Q1 2023 |
Chg. % |
Total Rental Income |
60.6 |
49.9 |
21.3 |
Total Revenues (-) Energy |
59.7 |
49.6 |
20.5 |
Adjusted NOI |
57.4 |
47.8 |
20.1 |
Adjusted NOI Margin % |
96.0% |
96.4% |
|
Adjusted EBITDA |
50.6 |
42.1 |
20.2 |
Adjusted EBITDA Margin % |
84.7% |
84.9% |
|
EBITDA Per Share |
0.0572 |
0.0606 |
(5.6) |
Total Comprehensive Income |
124.0 |
59.1 |
109.8 |
Vesta FFO |
40.4 |
30.5 |
32.4 |
Vesta FFO Per Share |
0.0456 |
0.0439 |
3.9 |
Vesta FFO (-) Tax Expense |
33.4 |
9.7 |
242.9 |
Vesta FFO (-) Tax Expense Per Share |
0.0377 |
0.0140 |
169.1 |
Diluted EPS |
0.1402 |
0.0851 |
64.6 |
Shares (average) |
884.8 |
694.3 |
27.4 |
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First quarter 2024 revenue reached
US$ 60.6 million ; a 21.3% year on year increase fromUS$ 49.9 million in the first quarter 2023 primarily due toUS$ 8.9 million in new revenue-generating contracts and aUS$ 2.1 million inflationary benefit on first quarter 2024 results. -
First quarter 2024 Adjusted Net Operating Income (Adjusted NOI) 1 increased 20.1% to
US$ 57.4 million , compared toUS$ 47.8 million in the first quarter 2023. The first quarter 2024 Adjusted NOI margin was 96.0%; a 35-basis-point year on year decrease due to increased property-related costs. -
First quarter 2024 Adjusted EBITDA 2 increased 20.1% to
US$ 50.6 million , as compared toUS$ 42.1 million in the first quarter 2023. The Adjusted EBITDA margin was 84.7%; a 21-basis-point decrease primarily due to increased administrative expenses during the quarter. -
First quarter 2024 Vesta funds from operations (Vesta FFO) increased by 32.4% to
US$ 40.4 million , fromUS$ 30.5 million in 2023. Vesta FFO per share wasUS$ 0.0456 for the first quarter 2024 compared withUS$ 0.0439 for the same period in 2023; a 3.9% increase resulting from an increase in Adjusted EBITDA, while interest expenses and current tax for the quarter decreased. First quarter 2024 Vesta FFO excluding current tax wasUS$ 33.4 million compared toUS$ 9.7 million in the first quarter 2023, due to higher profit, lower interest expense and lower current taxes in the first quarter 2024 relative to the same period in 2023. -
First quarter 2024 total comprehensive gain was
US$ 124.0 million , versusUS$ 59.1 million in the first quarter 2023. This increase was primarily due to increased revenues and a higher gain on the revaluation of investment properties during the quarter. -
The total value of Vesta’s investment property portfolio was
US$ 3.4 billion as ofMarch 31, 2024 ; a 4.4% increase compared toUS$ 3.2 billion at the end ofMarch 31, 2023 .
For a full version of Corporación Inmobiliaria Vesta First Quarter 2024 Earnings Release, please visit: https://ir.vesta.com.mx/financial-results
CONFERENCE CALL INFORMATION
Vesta will host a conference call on
To participate in the conference call, please connect via webcast or by dialing:
International Toll: +1 (646) 960-0308
International Dial-In: https://events.q4irportal.com/custom/access/2324/
Participant Code: 1849111
Webcast: https://events.q4inc.com/attendee/715377601
A telephonic replay will be available for one week following the conference call and can be accessed two hours subsequent to call’s completion via Vesta’s IR website, along with the company's earnings press release, financial tables, and slide presentation.
About Vesta
Vesta is a real estate owner, developer and asset manager of industrial buildings and distribution centers in
Note on Forward-Looking Statements
This report may contain certain forward-looking statements and information relating to the Company and its expected future performance 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 any potential health crisis and the measures that governments, agencies, law enforcement and/or health authorities implement to address such crisis; and (ix) those additional factors discussed in reports filed with the Bolsa
1 Adjusted NOI and Adjusted NOI Margin calculations have been modified, please refer to Notes and Disclaimers
2Adjusted EBITDA and Adjusted EBITDA Margin calculations have been modified, please refer to Notes and Disclaimers
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+52 55 5950-0070 ext. 133
jsottil@vesta.com.mx
+52 55 5950-0070 ext. 163
mfbettinger@vesta.com.mx
investor.relations@vesta.com.mx
+1 646 452-2334
barbara@inspirgroup.com
Source: Corporación