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 It may not be reproduced or redistributed to any other person, and it may not be published, in whole or in part, for any purpose.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
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www.vesta.com.mx
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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 | $0.3656 |
- non cash
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Reconciliation Of Profit For The Period To FFO | Q4 2023 | |||||||||
All numbers express in US$ | ||||||||||
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 | |
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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.