Corporación Inmobiliaria Vesta pronounces outcomes for the second quarter of 2021

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Corporación Inmobiliaria Vesta announces results for the second quarter of 2021

MEXICO CITY, July 21, 2021 / PRNewswire / – Corporación Inmobiliaria Vesta S.A.B. de C.V., ("Vesta" or the "Company") (BMV: VESTA), one of the leading pure industrial real estate companies in Mexico, today announced results for the past first quarter June 30, 2021. All figures contained herein have been prepared in accordance with International Financial Reporting Standards (IFRS) and are presented in US dollars unless otherwise stated.

Highlights

  • US $ 229.2 million In net equity, the follow-up proceeds from the capital market transaction successfully carried out by Vesta in the first quarter were channeled into Vesta's Level 3 strategy in the second quarter of 2021 $ 350 million sustainability-linked bonds repaid and the company's maturity profile extended during the quarter with no material payments expected through 2026.
  • Letting reached 1,369,236 sf, net absorption 804,163 sf, representing a total occupancy rate of 92.5% in the second quarter, a sequential increase of 90.0% in the first quarter 21. New customer leasing activities included Coppel, The Home Depot and Samsung which reflects Vesta's successful marketing during the quarter. The company also closed a pre-leased development building for Eaton Corporation that is currently under construction.
  • Vesta's contractual rent increases in US dollars, which are indexed to the US CPI, were positively impacted by inflation in the first half of the year as the US CPI rose from 1.4% in January to 5.4% in June. rise.
  • Demand from a wide range of international and local businesses and sectors boosted rental activity during the quarter to 994,747 sf in the e-commerce and logistics sectors, representing 72.6% of total leasing. This underscores an e-commerce focus as part of Vesta's Level 3 strategy, which is also reflected in the inclusion of Puebla and Tijuana as new e-commerce markets for the company. Tijuana and Juarez 41.9% of leasing activities in the second quarter. We emphasize this in the Tijuana Market new letting of vacant space achieved a rental increase of 12.6% compared to previous tenants.
  • Sales rose by 8.6% in the second quarter of 21 $ 39.8 million, of $ 36.7 million in the second quarter of 20, while NOI and EBITDA rose 10.2% and 9.8%, respectively, and margins reached 94.3% and 84.6%, respectively. This reflects continued prudent management of costs and administrative expenses, as well as improved collections that reduced the provision for the company's dubious accounts.
  • 2Q21 NAV per share increased by 4.7% to $ 2.47, of $ 2.36 in 2Q20, while pre-tax FFO per share rose 29.7% year over year $ 0.0252 End of 2Q21, from $ 0.0358 in 2Q20.
  • Vesta was selected for the second time in a row for inclusion in the S & P / BMV Total Mexico ESG Index with 28 selected BMV-listed companies, based on S & P's Corporate Sustainability Assessment.
  • Vesta has sold its third property in the Querétaro market for the United States $ 11.0 million, total US $ 22.3 million so far covers a total of 23 hectares.




Financial metrics (millions)

2Q21

2Q20

Change%

Rental income

39.80

36.65

8.6

NO, I

37.54

34.06

10.2

NOI margin%

94.3%

92.9%


EBITDA

33.69

30.68

9.8

EBITDA margin%

84.6%

83.7%


EBITDA per share

0.0492

0.0537

(8.3)

Overall result

111.28

9.37

n / A

FFO before taxes

17.25

20.49

(15.8)

FFO before tax per share

0.0252

0.0358

(29.7)

FFO

3.75

17.28

(78.3)

FFO per share

0.0055

0.0302

(81.8)

EPS

0.1626

0.0164

n / A

Shares (average)

684.25

571.58

19.7

  • Revenue in the 2nd quarter of 21 rose to $ 39.8 million; an increase of 8.6% compared to the previous year of $ 36.65 million in the second quarter of 20, while NOI and EBITDA rose 10.2% and 9.8%, respectively. The NOI margin in the second quarter of 2021 reached 94.3% with an EBITDA margin of 84.6%, reflecting Vesta's continued prudent approach to cost and expense management
  • Funds from operations before taxes ("FFO before taxes") in the 2nd quarter of 21 fell 15.8% to $ 17.25 million, of $ 20.49 million for the same period in 2020. The pre-tax FFO per share was $ 0.0252 for the second quarter of 2021 compared to $ 0.0358 for the same period in 2020; a decrease of 29.7%. 2Q21 after tax FFO was $ 3.75 million, compared to $ 17.28 million in 2Q20. This decrease is due to an increase in taxes in the second quarter of 21 and an increase in the common stock due to the successful capital market transaction.
  • The total profit for 2Q21 was $ 111.28 million, against a $ 9.37 million in the same quarter of 2020. This increase was mainly due to the revaluation of investment properties and a deferred tax benefit in Q2 21.
  • From June 30, 2021was the total value of Vesta's investment property portfolio $ 2.23 billion; an increase of 6.1% compared to $ 2.10 billion At the end of December 31, 2020.

A full version of the Corporación Inmobiliaria Vesta's earnings release for the second quarter of 2021 is available at: https://www.vesta.com.mx/investors/financial_information

INFORMATION ABOUT THE CONFERENCE CALL:

Vesta will host a conference call on Thursday July 22ndto discuss these results 10:00 a.m. Eastern Time / 9:00 a.m. Central Time (Mexico City time).

To access the call, please dial:
USA Toll Free: +1 877-705-6003
International, toll: +1 201-493-6725
Mexico, toll free: +1 800-522-0034

A rerun will be available from 13 o'clock on 22nd of July until August 5, 2021 and can be reached by choosing:
United States Toll Free: +1 844-512-2921
International, toll: +1 412-317-6671
Repeat ID: 13721189

About Vesta

Vesta is a world class, fully integrated real estate company that owns, manages, acquires, sells, develops and redevelops industrial real estate Mexico. From June 30, 2021, Vesta owned 189 properties in modern industrial parks in 15 states Mexico with a GLA of 31.6 million ft2 (2.93 million m2). The company has multinational clients who focus on industries such as e-commerce / retail, aerospace, automotive, food and beverage, logistics, medical devices, and plastics, among others. Further information is available at: www.vesta.com.mx.

Cautionary note on forward-looking statements

This report may contain certain forward-looking statements and information regarding the company that reflect the current beliefs and / or expectations of the company and its management with regard to its performance, business and future events. Forward-looking statements include, without limitation, any statements that may predict, predict, indicate or imply future results, performance or accomplishments and include the words "believe", "anticipate", "expect", "intend", "likely result" or other words or phrases with similar meanings. Such statements are subject to a number of risks, uncertainties, and assumptions. Some of the factors that may affect results and outcomes include, but are not limited to: (i) national, regional, and local economic and financial political climates; (ii) changes in global financial markets, interest rates and exchange rates; (iii) increased or unexpected competition for our real estate; (iv) risks associated with the acquisition, sale and development of real estate; (v) tax structuring and changes of income tax laws and rates; (vi) availability of funding and cap al, the amount of debt we maintain; (vii) environmental uncertainties, including risks of natural disasters; (viii) Risks related to the outbreak and spread of COVID-19 and the steps governments, authorities, law enforcement and / or health authorities are taking to address them; 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, goals, expectations, estimates and intentions expressed in this presentation and oral statements made by the Company’s authorized employees. Readers are cautioned not to place undue reliance on these forward-looking statements as they point only to the date. The company assumes no obligation to update or revise any forward-looking statements as a result of new information, future events or for any other reason, except as required by law.

SOURCE Corporación Inmobiliaria Vesta, S.A.B. de curriculum vitae