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

Vesta reported total revenue of $78.5 million, up 16.7% year over year, and rental revenue of $76 million, up 16.2%. Adjusted NOI rose 15.6% to $71.5 million with a 94% margin, and Adjusted EBITDA increased 15.7% to $63.6 million with an 83.7% margin. Vesta FFO was $46.1 million, up 6.8% year over year; pre-tax income was $98.8 million versus $54.5 million a year ago. Quarter-end occupancy was 91.7%, up 200 basis points sequentially from 89.7%. Guidance was qualitative rather than numerical: management said the first half was strong, expects good results in the second half, and remains comfortable with full-year guidance, while noting second-half comparisons will be tougher because leasing was also strong in the same period last year.

Lorenzo Berho framed the quarter as evidence that Vesta’s Route 2030 strategy is working, saying the company is converting demand into leases, leases into occupancy, and land into disciplined development. He emphasized that demand is being driven by nearshoring, U.S.-Mexico trade integration, AI/data center-related infrastructure, electronics, logistics, aerospace, and automotive supply chains. His tone was upbeat and confident, with repeated references to the portfolio’s quality, tenant relationships, and Vesta’s ability to develop rather than rely on M&A.

Juan Sottil highlighted the financial bridge: rental revenue of $76 million, Adjusted NOI of $71.5 million, Adjusted EBITDA of $63.6 million, and FFO of $46.1 million, with margins of 94% and 83.7% on NOI and EBITDA, respectively. He noted that the margin compression came from higher operating property costs and administrative expenses, and that higher interest expense was partly offsetting FFO due to a higher debt balance. He also said Vesta ended with $404 million in cash and cash equivalents, $1.2 billion of debt, net debt/EBITDA of 3.1x, and an LTV ratio of 24.3%, supported by nearly $270 million of gross proceeds from the equity follow-on. On capital allocation, he said the raise was meant to fund land and infrastructure investments and strengthen the balance sheet ahead of anticipated demand.

Analysts focused on three themes: AI/data center-related demand, USMCA/trade uncertainty, and the sustainability of strong leasing spreads. Management said AI is driving demand not only for data centers but also for supporting industrial inputs like cooling systems, cabling, and electrical equipment, and they pointed to strong activity in Guadalajara, Ciudad Juárez, Tijuana, and Monterrey. On USMCA, Lorenzo said companies want more clarity but still see Mexico as highly competitive; he also said San Luis Potosí has been slow but is seeing a better pipeline. On leasing spreads, management said the strong pricing should remain sustainable because supply of good quality, infrastructure-ready buildings remains constrained.