Management implements new health, safety and business contingency protocols and measures in response to threat of COVID-19
Starting new speculative buildings temporarily suspended
MEXICO CITY, March 24, 2020 /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, announced today the drawdown of US$ 85 million from an US$ 125 million existing three-year revolving credit facility, maturing in August 2022. Under the terms of the credit facility, Vesta pays an interest rate of Libor +185 bps.
The average weighted maturity of the Company's total debt is 6.3 years, with an average weighted interest rate of 4.5%.
With regard to revenue streams, Vesta has the longest-dated maturity profile of leases in Mexico's industrial real estate sector, with 4.8 years of average weighted maturity and with 5% and 8% of leases maturing during 2020 and 2021, respectively. For more than ten years, the Company has emphasized leasing arrangements with leading, high-quality global companies and receives approximately 85% of rental income in US dollars. Further, Vesta's property portfolio is well diversified across industries and regions, with top-10 clients representing less than 30% of GLA. All of Vesta's leases are enforceable to maturity and around 90% of lease contracts have guarantees.
Vesta has temporarily suspended starting new speculative buildings, as the Company's management has adopted a cautious approach toward the currently volatile business environment stemming from COVID-19. For the foreseeable future, the Company intends to focus on maintaining leasing activity and built-to-suit property development.
"As a socially-responsible company, our top priority has always been the health safety of our employees, clients and communities. Last year, we received the Oracle Excellence Award in the construction and engineering category for enhancing and reinforcing our company's technology platform, which today allows us to manage virtually all of Vesta's business processes and has positioned us well to continue operating safely and effectively during these challenging times," said Lorenzo Dominique Berho, Chief Executive Officer of Vesta.
The Company has implemented the following protocols and measures across its operations, in response to the current known threats posed by COVID-19:
- Quick-reaction contingency plans to maintain property and administrative operations at optimal levels, including the use of reaction charts based on geography, mission-critical activities and alternative suppliers;
- Health and safety practices based on World Health Organization recommendations and those of local authorities;
- Confirmation of emergency contact information of regional and local authorities; and
- Tenant communications that confirm Vesta's commitment to client-service excellence.
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 December 31, 2019, Vesta owned 184 properties located in modern industrial parks in 14 states of Mexico totaling a GLA of 29.8 million ft2 (2.76 million m2). The Company has multinational clients, which are focused in industries such as aerospace, automotive, food and beverage, logistics, medical devices, and plastics, among others. For additional information visit: www.vesta.com.mx.
Juan Sottil, CFO
Tel: +52 55 5950-0070 ext.133
Tel: +1 646 452 2334
Fernanda Bettinger, IRO
Tel: +52 55 5950-0070 ext.163
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SOURCE Corporación Inmobiliaria Vesta, S.A.B. de C.V.