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Corporación Inmobiliaria Vesta Reports Second Quarter 2022 Earnings Results

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MEXICO CITY, July 21, 2022 /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 second quarter ended June 30, 2022. All figures included herein were prepared in accordance with International Financial Reporting Standards (IFRS) and are stated in US dollars unless otherwise noted.

Q2 2022 Highlights

  • Vesta has updated its full year 2022 guidance: revenue guidance has been upwardly revised to a range of between 7.5-8% from the Company's prior guidance of 5.5-6%, NOI margin guidance remains at 94%, and full year 2022 EBITDA has increased to 83.5% from 82.5%. This reflects Vesta´s continued outstanding leasing, reflected in second quarter results, with favorable effects of higher than expected inflation and strong execution on Vesta's Level 3 strategy in an continued strong demand environment.

  • Vesta reported exceptional leasing activity for the second quarter 2022, reaching 3.2 million sf. This represented nearly 1.0 million sf in new leases with companies such as Amazon, AB InBev, Foxconn, among others. Lease renewals reached an unprecedented 2.3 million sf, a historic record for Vesta, with lease spreads of approximately 8% and weighted average lease maturities of seven years.

  • Vesta delivered three buildings in Ciudad Juarez and Guadalajara totaling 720,279 sf during 2Q22 with leading companies including Amazon, Foxconn, Vishay Intertechnology and O´Reilly. It's important to note that all three were leased prior to delivery.

  • Strong 2Q22 leasing activity resulted in a record high 95.8% total portfolio occupancy, an increase from 92.5% in 2Q21, while stabilized occupancy increased to 95.9%, from 92.7% in 2Q21, and same store occupancy increased to 95.7%, from 93.0% in 2Q21.

  • Vesta also achieved strong second quarter financial results with an 8.3% year on year revenue increase to US$ 43.1 million, from US$ 39.8 million in 2Q21. This increase is primarily due to a favorable US$ 2.15 million inflationary impact and a US$ 4.21 million impact from new revenue-generating contracts on 2Q22 results. 2Q22 NOI and EBITDA margins reached 94.3% and 84.4%, respectively.

  • In line with the Company´s Level 3 Strategy, 2Q22 NAV per share increased 7.2% to US$ 2.65, from US$ 2.47 in 2Q21, while pretax FFO increased 41.9% to US$ 24.5 million compared to US$ 17.3 million in 2Q21. 2Q22 pretax FFO per share increased 42.8% to US$ 0.0356, from US$ 0.0249 in 2Q21.

  • Vesta was selected for inclusion in the S&P/BMV Total Mexico ESG Index for the third consecutive year as further endorsement of Vesta's commitment to environmental, social and governance.

  • Vesta sold 1.3 million sf of land in Ciudad Juarez for US$ 13.9 million during the second quarter.

 





6 months


Financial Indicators (million)

2Q22

2Q21

Chg. %

2022

2021

Chg. %

Rental Income

43.1

39.8

8.3

85.09

78.19

8.8

NOI

40.7

37.5

8.3

81.05

74.76

8.4

NOI Margin %

94.3 %

94.3 %


95.2 %

95.6 %


EBITDA

36.4

33.7

8.0

71.84

67.12

7.0

EBITDA Margin %

84.4 %

84.7 %


84.4 %

85.8 %


EBITDA Per Share

0.0529

0.0486

8.7

0.1034

0.0969

6.7

Total Comprehensive Income

50.4

111.3

na

105.71

124.75

na

FFO Pretax

24.47

17.25

41.9

49.51

39.63

24.9

FFO Pretax Per Share

0.0356

0.0249

42.8

0.0712

0.0572

24.5

FFO

12.12

3.76

222.7

28.03

20.62

35.9

FFO Per Share

0.0176

0.0054

224.8

0.0403

0.0298

35.5

EPS

0.0732

0.1607

na

0.1521

0.1801

na

Shares (average)

688.22

692.58

(0.6)

695.04

692.58

0.4

 

  • Net Operating Income (NOI) increased 8.3% to US$ 40.7 million in 2Q22, compared to US$ 37.5 million in 2Q21. 2Q22 NOI margin was 94.3%, in line with that margin for the same period of 2021 due to increased property costs year on year.

  • EBITDA increased 8.0% to US$ 36.4 million in the 2Q22, as compared to US$ 33.7 million in 2Q21. 2Q22 EBITDA margin was 84.4%; a 21-basis-point decrease due to higher administrative expenses year on year.

  • 2Q22 pre-tax funds from operations (pre-tax FFO) increased 41.9% to US$ 24.5 million, from US$ 17.2 million for the same period in 2021. Pretax FFO per share was US$ 0.0356 for the second quarter 2022, compared with US$ 0.0249 for the same period in 2021; a 42.8% increase. 2Q22 after tax FFO was US$ 12.1 million, compared to US$ 3.8 million in 2Q21. This increase was due to a decrease in interest expenses and taxes in 2Q22.

  • 2Q22 total comprehensive gain was US$ 50.4 million, versus US$ 111.3 million for the same quarter in 2021. This decrease was primarily due to a decrease in investment property valuation and with increased income tax expenses in 2Q22.

  • The total value of Vesta's investment property portfolio was US$ 2.44 billion as of June 30, 2022; a 7.8% increase compared to US$ 2.26 billion at the end of December 31, 2021.

For a full version of Corporación Inmobiliaria Vesta Second Quarter 2022 Earnings Release please visit: https://www.vesta.com.mx/investors/financial_information

CONFERENCE CALL INFORMATION:

Vesta will host a conference call on Friday, July 22, 2022 to discuss these results at 12:00 p.m. Eastern Time / 11:00 a.m. Central Time (Mexico City Time).

To access the call, please dial:
US, toll-free: +1 877-423-9813
International, toll: +1 201-689-8573
Mexico, toll-free: +1 800-522-0034

A replay will be available from 3 p.m. on July 22 until August 5, 2022 and can be accessed by dialing:
US, toll-free: +1 844-512-2921
International, toll: +1 412-317-6671
Replay ID: 13731036

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 June 30, 2022, Vesta owned 193 properties located in modern industrial parks in 15 states of Mexico totaling a GLA of 32.1 million ft2 (2.98 million m2). The Company has multinational clients, which are focused in 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.

Contact Information:

Juan Sottil, CFO
+52 55 5950-0070 ext. 133
jsottil@vesta.com.mx

Fernanda Bettinger, IRO
+52 55 5950-0070 ext. 163
mfbettinger@vesta.com.mx
investor.relations@vesta.com.mx

Barbara Cano, InspIR Group
+1 646 452-2334
barbara@inspirgroup.com

Cision
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View original content:https://www.prnewswire.com/news-releases/corporacion-inmobiliaria-vesta-reports-second-quarter-2022-earnings-results-301591393.html

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