SUPPLEMENTAL INFORMATION

Q4 2023

USA: VTMX

MEX: VESTA

www.vesta.com.mx

Cautionary Statements

Q4 2023

This presentation is strictly confidential, It has not been independently verified and is being furnished to you solely for your information. It may not be reproduced or redistributed to any other person, and it may not be published, in whole or in part, for any purpose. By receiving this presentation, you become bound by the above referred confidentiality obligation. Failure to comply with such confidentiality obligation may result in civil, administrative or criminal liabilities. The distribution of this presentation in other jurisdictions may also be restricted by law and persons who obtain this presentation should inform themselves about and observe any such restrictions.

This presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy any securities in the United States or elsewhere nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment to purchase shares nor does it constitute the basis, in whole or in part, for the execution of any agreement or commitment of any kind. Specifically, this presentation does not constitute a placement prospectus or equivalent document, and the information contained herein is in general nature, and is distributed for information purposes only. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended (the "Act"). Corporación Inmobiliaria Vesta, S.A.B. de C.V. (the "Company") has not and does not intend to register any securities under the Act or offer any securities to the public in the United States. Any decision to purchase shares in any offering should be made solely on the basis of the information to be contained in the Mexican prospectus to be registered with the Mexican Banking and Securities Commission (Comisión Nacional Bancaria y de Valores) or any offering circular to be published in due course in relation to any such offering. No reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness. No representation or warranty, express or implied, is given or will be given by or on behalf of the Company, the Global Coordinator, the Mexican lead arrangers, bookrunners, any other Manager or any of their respective affiliates or agents, or any of such persons' directors, officers, employees or advisors or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this document and any reliance you place on them will be at your sole risk. In addition, no responsibility, obligation or liability (whether direct or indirect, in contract, tort or otherwise) is or will be accepted by the Company, the Global Coordinator, the Mexican lead arrangers, bookrunners, or any other person in relation to such information or opinions or any other matter in connection with this document or its contents or otherwise arising in connection therewith.

This presentation includes forward-looking statements. All statements other than statements of historical fact included in this presentation, including, without limitation, those regarding our prospective resources, contingent resources, financial position, business strategy, management plans and objectives or future operations are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our actual resources, reserves, results, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. These forward-looking statements are based on numerous assumptions regarding our present and future business operations and strategies and the environment in which we expect to operate in the future. Forward looking statements speak only as of the date of this presentation and we expressly disclaim any obligation or undertaking to release any update of or revisions to any forward looking statements in this presentation, any change in our expectations or any change in events, conditions or circumstances on which these forward-looking statements are based.

By attending this presentation or by accepting to view any of the materials presented, you agree to be bound by the foregoing limitations. Neither the Mexican Banking and Securities Commission (Comisión Nacional Bancaria y de Valores) nor any other authority has approved or disapproved the contents of this presentation, or the adequacy or truthfulness of the information contained herein.

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Table of Contents

Cautionary Statements

Table of Contents

Highlights

Financial Summary

Balance Sheet

Consolidated Statement of Operations

Reconciliation of FFO

New portfolio metrics definitions

Historical portfolio metrics

Stabilized portfolio

Portfolio Operating Metrics

Land Bank

Development Portfolio

Top Tenants

Analyst coverage

Definitions

Q4 2023

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

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Company Profile

Q4 2023

Vesta is a leading Mexican provider of modern Industrial Real Estate.

Our US$ 3.21 billion property portfolio encompasses 37.3 million square feet of manufacturing and logistics facilities across Northern, Bajio and Central Mexico.

North Region

Bajio Region

Central Region

Total

Number of operating buildings

85

92

36

213

Number of buildings under development

3

6

3

12

Total Buildings

88

98

39

225

Operating portfolio (sf)

12,070,580

18,027,608

7,179,938

37,278,126

Development portfolio (sf)

716,079

1,155,265

1,230,308

3,101,652

Total GLA (sf)

12,786,659

19,182,873

8,410,246

40,379,778

31.7%

47.5%

20.8%

100%

Development portfolio TEI* (In thousands)

$57,715

$70,141

$82,909

$210,766

Land (acres)

100.83

605.97

2.12

708.93

Land book value

$33,220

$104,370

$790

$138,380

* Total Expected Investment

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Financial Summary

All numbers express in US$

Company Profile

Market capitalization (Ps.)

Float @ Dic 31

Share price (Ps.)

Earnings Profile

Total Revenues

Adjusted NOI

Adjusted NOI Margin

Adjusted EBITDA

Adjusted EBITDA Margin

Vesta FFO

Per Share

Adjusted NOI per share

Adjusted EBITDA per share

Vesta FFO per share

Portfolio (sf)

Same store portfolio

Portfolio Occupancy

Stabilized portfolio

Portfolio Occupancy

Total portfolio

Portfolio Occupancy

Total Portfolio Average rent per sf

Debt Summary

Total debt outstanding

Leverage ratio (debt to total asset)

Weighted Average Number of Shares *

Q4 2023

Q4 2023

Q4 2022

2023

2022

$58,671,458,501

$31,612,974,437

$58,671,458,501

$31,612,974,437

870,109,128

679,702,740

870,109,128

679,702,740

$67.43

$46.51

$67.43

$46.51

$55,942,291

$47,432,343

$216,408,305

$179,288,682

$52,953,005

$44,254,607

$203,093,348

$169,990,834

98.1%

95.9%

94.7%

95.5%

$44,143,586

$39,429,458

$176,188,128

$151,208,209

81.7%

85.4%

82.2%

84.9%

$32,585,133

$27,151,692

$129,881,153

$104,812,053

$0.062

$0.064

$0.264

$0.245

$0.052

$0.057

$0.229

$0.218

$0.038

$0.039

$0.169

$0.151

32,542,808

31,063,694

32,542,808

31,063,694

97.0%

97.2%

97.0%

97.2%

35,847,488

32,850,684

35,847,488

32,850,684

96.7%

97.3%

96.7%

97.3%

37,278,126

33,714,370

37,278,126

33,714,370

93.4%

95.1%

93.4%

95.1%

$0.507

$0.465

$0.480

$0.439

$915,186,754

$930,499,586

$915,186,754

$930,499,586

24.1%

31.5%

24.1%

31.5%

848,735,109

688,163,119

768,845,264

694,253,758

(*) Under IFRS, management compensation shares that have been transfered to the trust constitued by Vesta for such effect, are considered Treasury shares, as long as such shares remain within the trust.

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Balance Sheet

Q4 2023

All numbers express in US$

ASSETS

As of December 31, 2023

As of December 31, 2022

Current assets:

Cash and cash equivalents

501,166,136

139,147,085

Financial assets held for trading

-

-

Recoverable Taxes

33,864,821

30,088,473

Operating lease receivables

10,100,832

7,690,195

Prepaid expenses

21,299,392

25,308,351

Total current assets

$566,431,181

$202,234,104

Non-current assets:

Investment property - Net

3,212,164,164

2,738,465,276

Leasing Terms

834,199

1,417,945

Office furniture and Vehicles - Net

2,541,990

1,437,981

Derivative financial instruments

-

-

Guarantee deposits made

10,244,759

9,601,094

Total non-current assets

$3,225,785,112

$2,750,922,296

Total assets

$3,792,216,293

$2,953,156,400

LIABILITIES AND EQUITY

Current liabilities:

Current portion of long-term debt

69,613,002

4,627,154

Lease liabilities - Short term

607,481

606,281

Accrued interest

3,148,767

3,847,752

Accounts payable

13,188,966

16,628,788

Income Tax payable

38,773,726

14,824,658

Dividends payable

15,155,311

14,358,194

Accrued expenses and taxes

7,078,988

5,154,626

Total current liabilities

147,566,241

60,047,453

Non-current liabilities:

Long-term debt

845,573,752

925,872,432

Lease liabilities - long term

290,170

897,658

Guarantee deposit received

25,680,958

18,333,119

Long-term accounts payable

7,706,450

7,889,937

Employee benefits

1,519,790

348,280

Deferred income taxes

276,910,507

299,979,693

Total non-current liabilities

1,157,681,627

1,253,321,119

Total liabilities

1,305,247,868

1,313,368,572

Stockholders' equity:

Capital stock

591,600,113

480,623,919

Capital premium

934,944,456

460,677,234

Retained earnings

989,736,218

733,405,749

Share-base payments reserve

3,732,350

5,984,051

Foreign currency translation reserve

(33,044,712)

(40,903,125)

Valuation of derivative financial instruments

-

-

Total equity

2,486,968,425

1,639,787,828

Total liabilities and equity

$3,792,216,293

$2,953,156,400

Shares outstanding

870,109,128

684,252,628

-

-

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Consolidated Statement of Operations

Q4 2023

All numbers express in US$

Q4 2023

Q4 2022

%Change

2023

2022

%Change

Revenues:

Rental income

52,977,557

44,717,419

200,267,401

168,707,094

Reimbursable building services

972,276

1,451,703

13,180,895

9,318,367

Energy Income

1,940,693

1,263,221

1,940,693

1,263,221

Management Fee

51,765

-

1,019,316

-

Total revenues

$55,942,291

$47,432,343

17.9%

$216,408,305

$179,288,682

20.7%

Property operating costs:

Related to properties that generate rental income

(3,150,653)

(2,820,678)

(13,476,324)

(8,940,789)

Costs related to properties

(1,048,594)

(1,914,516)

(11,374,264)

(8,034,627)

Costs related to energy

(2,102,060)

(906,162)

(2,102,060)

(906,162)

Related to properties that did not generate rental income

(1,716,965)

(935,546)

(4,763,398)

(2,482,605)

Adjusted NOI

52,953,005

44,254,607

19.7%

203,093,348

169,990,834

19.5%

Adjusted NOI Margin

98.1%

95.9%

94.7%

95.5%

General and administrative expenses

(8,812,454)

(5,568,489)

(30,141,822)

(22,950,508)

Stock-based compensation expenses (1)

1,720,000

1,678,886

8,000,000

6,650,487

Depreciation

(567,119)

(378,747)

(1,578,073)

(1,463,920)

Adjusted EBITDA

$44,143,586

$39,429,458

12.0%

$176,188,128

$151,208,209

16.5%

Adjusted EBITDA Margin

81.7%

85.4%

82.2%

84.9%

Other Income and Expenses:

Interest income

3,886,128

1,095,100

9,414,027

2,640,687

Other (expense) income

(696,636)

318,695

1,743,735

956,862

Other income (Energy)

357,309

-

357,309

-

Transaction cost on debt issuance

-

-

-

-

Finance cost

(11,558,453)

(12,277,765)

(46,306,975)

(46,396,156)

Exchange gain/loss

2,712,772

2,256,112

8,906,782

1,939,848

Gain in sale of properties

(461,600)

-

(461,600)

5,027,826

Gain/loss on revaluation of investment property

63,910,052

45,710,571

243,459,821

185,491,519

Total other income and expenses

$58,149,572

$37,102,713

$217,113,099

$149,660,586

Profit (loss) before income taxes

$99,844,672

$74,831,596

$383,561,787

$293,111,445

Income tax gain / expense

13,982,691

3,870,145

(64,983,583)

(48,223,470)

Current income tax

(18,157,277)

(13,949,236)

(91,953,099)

(41,981,391)

Deferred Tax

32,139,968

17,819,381

26,969,516

(6,242,079)

Profit (loss) for the period

$113,827,363

$78,701,740

$318,578,204

$244,887,975

Other Comprehensive Income (Loss) :

Fair value gains on derivative instruments

-

-

-

-

Exchange differences on translating other functional currency operations

(1,575,321)

5,900,617

7,858,413

8,923,264

Total Comprehensive Income (Loss)

$112,252,042

$84,602,357

$326,436,617

$253,811,239

Weighted Average Number of Shares

848,735,109

688,163,119

768,845,264

694,253,758

Diluted Earnings (loss) per share

$0.1323

$0.1229

$0.4246

$0.3656

  1. non cash

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Reconciliation Of Profit For The Period To FFO

Q4 2023

All numbers express in US$

Q4 2023

Q4 2022

%Change

2023

2022

%Change

Reconciliation of profit for the period to FFO

Profit for the period

$113,827,363

$78,701,740

$318,578,204

$244,887,975

Adjustments:

Gain /Loss on Revaluation of Operations

(63,910,052)

(45,710,571)

Gain in sell properties

461,600

-

FFO

$50,378,911

$32,991,169

Foreign Exchange Adjustment

(2,712,772)

(2,256,112)

Non cash share compensation

1,720,000

1,678,886

Depreciation/Other Assets

567,119

378,747

Other income

696,636

(318,695)

Other income energy

(357,309)

-

Energy

161,367

(357,058)

Interest earned on existing cash

(3,886,128)

(1,095,100)

I/S Tax expense

(13,982,691)

(3,870,145)

Vesta FFO

$32,585,133

$27,151,692

Vesta FFO per share

$0.0384

$0.0395

Tax Adjustment:

(243,459,821)(185,491,519)

461,600(5,027,826)

52.7%

$75,579,983

$54,368,631

39.0%

(8,906,782)(1,939,848)

8,000,0006,650,487

1,578,0731,463,920

(1,743,735)(956,862)

(357,309)-

161,367

(357,058)

(9,414,027)

(2,640,687)

64,983,583

48,223,470

20.0%

$129,881,153

$104,812,053

23.9%

-2.7%

11.9%

$0.1689

$0.1510

Current Income tax

(18,157,277)

(13,949,236)

(91,953,099)

(41,981,391)

Vesta FFO (-) Tax Expense

$14,427,856

$13,202,456

9.3%

$37,928,054

$62,830,662

-39.6%

-11.4%

-45.5%

Vesta FFO(-) Tax Expense per share

$0.0170

$0.0192

$0.0493

$0.0905

Current Tax Expense

0.118959079

Operating Current Tax

(597,914)

(4,472,560)

(23,425,226)

(12,640,385)

Exchange rate related Current Tax

4,817,435

10,253,065

1,533,195

(2,496,935)

Adjusted FFO

$128,020,804

$95,541,395

34.0%

$479,335,301

$387,503,065

23.7%

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Portfolio metrics definitions

Q4 2023

A Better Gauge: U.S. REITs report occupancy using three primary methods, 1. total portfolio occupancy, 2. operating (stabilized) portfolio occupancy, and 3.same store portfolio occupancy. Most U.S. REITs emphasize stabilized and same store portfolio metrics and provide separate and distinct disclosure on its development pipeline to draw clear distinctions between its operating portfolio and external growth initiatives.

Vesta's U.S. peers report normalized occupancy metrics that focus on their stabilized portfolios. For most REITs, the stabilized and same store portfolios hold the majority of their properties, therefore investors usually evaluate management's operating capabilities using these metrics.

Core Metric

Definition

Total Portfolio Occupancy

Stabilized Portfolio

Occupancy

Same Store Portfolio

Occupancy

Percentage of occupied properties for the entire property portfolio. Includes development, redevelopment, stabilized, and properties held

for sale.

Percentage of occupied properties for stabilized properties only. A property is generally considered stabilized once it has reached 80%

occupancy or has been completed for more than one year, whichever occurs first.

Percentage of occupied properties for properties that have been in the operating (stabilized) portfolio for the entirety of two comparable

periods.

Same Property Breakdown

The pool of properties owned for more than a year - the general, albeit oft modified definition of "same-property" at most industrial REITs - represents the vast majority of value for most REITs. As a result, providing clear operational metrics for this group of properties can help investors - the ultimate owners of these properties - best understand their changing health.

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Historical portfolio metrics

All numbers shown in SF

19

20

21

22

24

26

Total Portfolio

Period

Initial GLA

Additions

Final GLA

% Occupancy

Vacancy

##

Q1 2022

31,081,746 *

285,105

31,366,851

93.8%

1,952,503

##

Q2 2022

31,367,771

720,279

32,088,050

95.8%

1,341,798

##

Q3 2022

32,096,942

169,984

32,266,926

96.1%

1,262,639

##

Q4 2022

32,286,281 *

1,428,089

33,714,370

95.1%

1,660,344

##

Q1 2023

33,714,370

0

33,714,370

95.1%

1,650,214

##

Q2 2023

33,717,520 *

889,191

34,606,711

94.7%

1,839,740

##

Q3 2023

34,557,186 *

2,348,774

36,905,960

92.5%

2,777,029

Q4 2023

36,592,411 *

685,715

37,278,126

93.4%

2,478,416

10

11

12

13

15

17

Stabilized Portfolio

Period

Initial GLA

Conversion

Final GLA

% Occupancy

Lease Up

Q1 2022

31,032,114 *

78,286

31,110,400

94.3%

256,451

Q2 2022

31,111,320

769,911

31,881,231

95.9%

206,819

Q3 2022

31,890,123

206,819

32,096,942

96.6%

169,984

Q4 2022

32,116,297 *

734,387

32,850,684

97.3%

863,686

Q1 2023

32,850,684

222,974

33,073,658

96.7%

640,712

Q2 2023

33,074,756 *

640,341

33,715,097

96.9%

891,615

Q3 2023

33,717,537 *

1,088,120

34,805,657

97.3%

1,879,884

Q4 2023

34,492,243 *

1,355,245

35,847,488

96.7%

1,430,638

-313,413 *

2

26,917,429

3

4

5

Same Store Portfolio

Period

Initial GLA

Conversion

Final GLA

% Occupancy

Vacancy

Q1 2022

29,759,799 *

43,381

29,803,180

94.1%

1,763,463

Q2 2022

29,804,100

135,614

29,939,714

95.7%

1,293,800

Q3 2022

29,948,606

0

29,948,606

96.4%

1,092,655

Q4 2022

29,967,017 *

1,096,677

31,063,694

97.2%

882,694

Q1 2023

31,063,694

78,286

31,141,980

96.5%

1,095,538

Q2 2023

31,143,077 *

767,498

31,910,575

96.7%

1,056,328

Q3 2023

31,915,015 *

206,819

32,121,834

97.6%

779,126

Q4 2023

31,808,421 *

734,387

32,542,808

97.0%

961,580

-313,413

Q4 2023

Total Portfolio % Occupancy

93.8%

95.8%

96.1%

95.1%

95.1%

94.7%

93.4%

92.5%

95.00%

90.00%

85.00%

80.00%

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Q3 2023

Q4 2023

Stabilized Portfolio % Occupancy

100.00%

95.9%

96.6%

97.3%

96.7%

96.9%

97.3%

96.7%

94.3%

95.00%

90.00%

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Q3 2023

Q4 2023

Same Store Portfolio % Occupancy

96.4%

97.2%

96.5%

96.7%

97.6%

97.0%

95.7%

94.1%

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Q3 2023

Q4 2023

* Adjusted by changes in the initial size of the portfolio, during 4Q21 we adjusted the portfolio to reflect the sale of properties

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Disclaimer

Vesta Real Estate Corporation SAB de CV published this content on 22 February 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2024 13:45:04 UTC.