Corporación Inmobiliaria Vesta Reports Second Quarter 2025 Earnings Results
Q2 2025 Highlights
Vesta delivered strong financial results for the second quarter 2025: total income reached US$ 67.3 million; a 6.8% year over year increase, while total income excluding energy reached US$ 65.4 million; a 7.3% increase compared to US$ 61.0 million in the second quarter 2024. Second quarter 2025 Adjusted NOI 1 margin and Adjusted EBITDA 2 margin reached 94.5% and 84.1%, respectively.
Vesta FFO reached US$ 43.1 million for the second quarter 2025; a 12.9% increase compared to US$ 38.2 million in the second quarter 2024, while Vesta FFO per share reached US$ 0.050; a 16.6% year over year increase.
Second quarter 2025 leasing activity reached 1.8 million sf: 411 thousand sf in new contracts with both existing and new Vesta tenants in the electronics, food and beverage and automotive sectors, and 1.4 million sf in lease renewals with an average weighted lease life of approximately five years. Vesta's second quarter 2025 total portfolio occupancy therefore was 92.3%, while stabilized and same-store occupancy reached 95.5% and 97.0%, respectively.
Second quarter 2025 renewals and re-leasing reached 1.5 million sf with a trailing twelve-month weighted average spread of 13.7%. Same-store NOI increased by 1.9% year over year.
During the second quarter 2025, Vesta acquired 128.4 acres of land in Guadalajara, representing 2.3 million square feet in buildable area. Also during the quarter, Vesta finalized its acquisition of 20.2 acres of land in Monterrey, representing a 449 thousand square foot buildable area, as was announced in the first quarter 2025.
Vesta ended the second quarter 2025 with 1.3 million sf in current construction in progress; an estimated investment of approximately US$ 91.0 million with a projected yield on cost of 10.8%, in Querétaro and Monterrey.
The Company expects to achieve its stated 2025 guidance and remains focused on the Vesta Route 2030 long-term strategy while navigating current uncertainty.
Vesta paid US$ 17.4 million in dividends for the second quarter 2025 on July 15, 2025 , equivalent to PS$ 0.3796 per ordinary share.
Vesta is pleased to announce the appointment of Rodrigo Cueto Bosch as Chief Investment Officer, effective on October 1, 2025 with the planned retirement of Guillermo Díaz, a founding executive whose contributions have been instrumental to the Company's growth. A structured leadership transition will ensure continuity and upholds Vesta's strategic objectives, alignment, and long-term organizational success. Mr. Cueto has considerable investment and Real Estate finance expertise with a proven track record of delivering results. He has been an integral part of Vesta's team since 2021, most recently as Senior Vice President of Finance and Capital Markets.
6 months
Financial Indicators (million)
Q2 2025
Q2 2024
Chg. %
2025
2024
Chg. %
Total Rental Income
67.3
63.0
6.8
134.3
123.6
8.7
Total Revenues (-) Energy
65.4
61.0
7.3
130.3
120.7
7.9
Adjusted NOI
61.8
57.7
7.2
123.9
115.0
7.8
Adjusted NOI Margin %
94.5%
94.6%
95.1%
95.2%
Adjusted EBITDA
55.0
50.4
9.0
110.3
101.1
9.1
Adjusted EBITDA Margin %
84.1%
82.7%
84.6%
83.7%
EBITDA Per Share
0.0641
0.0569
12.6
0.1278
0.1141
12.0
Total Comprehensive Income
31.4
109.6
(71.3)
43.7
233.6
(81.3)
Vesta FFO
43.1
38.2
12.9
88.1
78.6
12.1
Vesta FFO Per Share
0.0502
0.0431
1662.4
0.1021
0.0887
1501.0
Vesta FFO (-) Tax Expense
37.7
20.3
85.4
73.8
148.1
(50.2)
Vesta FFO (-) Tax Expense Per Share
0.0439
0.0229
91.5
0.0855
0.1672
(48.9)
Diluted EPS
0.0366
0.1237
(70.4)
0.0507
0.2638
(80.8)
Shares (average)
858.3
886.6
(3.2)
863.0
885.7
(2.6)
Second quarter 2025 total revenue reached US$ 67.3 million; a 6.8% year on year increase from US$ 63.0 million in the second quarter 2024. Total revenues excluding energy increased to US$ 65.4 million; a 7.3% year on year increase from US$ 61.0 million in 2024 due to US$ 5.3 million in new revenue-generating contracts and a US$ 2.0 million inflationary benefit on second quarter 2025 results.
Second quarter 2025 Adjusted Net Operating Income (Adjusted NOI) increased 7.2% to US$ 61.8 million, compared to US$ 57.7 million in the second quarter 2024. The second quarter 2025 Adjusted NOI margin was 94.5%; a 7-basis-point year on year decrease due to higher costs related to rental income generating properties.
Adjusted EBITDA for the quarter increased 9.0% to US$ 55.0 million, as compared to US$ 50.4 million in the second quarter 2024. The Adjusted EBITDA margin was 84.1%; a 137-basis-point increase primarily due to an 8.0% decrease in administrative expenses compared to last year´s quarter, reflecting Vesta's continued discipline related to expense control aligned with internal budgeting, while identifying further opportunities for cost savings throughout the organization.
Second quarter 2025 Vesta funds from operations after tax (Vesta FFO (-) Tax Expense) increased to US$ 37.7 million, from US$ 20.3 million for the same period in 2024. Vesta FFO after tax per share was US$ 0.0439 for the second quarter 2025 compared with US$ 0.0229 for the same period in 2024, a 91.5% increase. This increase is due to a combination of higher EBITDA, lower interest expenses and lower taxes, as well as a decreased number of shares outstanding in the second quarter 2025. Second quarter 2025 Vesta FFO excluding current tax was US$ 43.1 million compared to US$ 38.2 million in the second quarter 2024 due to higher 2025 profit and lower interest expenses compared to the same period in 2024.
Second quarter 2025 total comprehensive income was US$ 31.4 million, versus a US$ 109.6 million gain in the second quarter 2024, primarily due to lower gain on revaluation during the second quarter 2024.
The total value of Vesta's investment property portfolio was US$ 3.9 billion as of June 30, 2025; a 4.4% increase compared to US$ 3.7 billion at the end of December 31, 2024.
For a full version of Corporación Inmobiliaria Vesta Second Quarter 2025 Earnings Release, please visit: https://ir.vesta.com.mx/financial-results
CONFERENCE CALL INFORMATION
Conference Call
Friday July 25, 2025
9:00 a.m. (Mexico City Time)
11:00 a.m. (Eastern Time)
To participate in the conference call please connect via webcast or by dialing:
Webcast: https://events.q4inc.com/attendee/313151581
The replay will be available two hours after the call has ended and can be accessed from Vesta's IR website.
About Vesta
Vesta is a real estate owner, developer and asset manager of industrial buildings and distribution centers in Mexico. As of June 30, 2025, Vesta owned 231 properties located in modern industrial parks in 16 states of Mexico totaling a GLA of 41.7 million sf (3.9 million m2). Vesta has several world-class clients participating in a variety of industries such as automotive, aerospace, retail, high-tech, pharmaceuticals, electronics, food and beverage and packaging. For additional information visit: www.vesta.com.mx.
Note on Forward-Looking Statements
This report may contain certain forward-looking statements and information relating to the Company and its expected future performance that reflects the current views and/or expectations of the Company and its management with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like 'believe,' 'anticipate,' 'expect,' 'envisages,' 'will likely result,' or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, regional and local economic and political climates; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our properties; (iv) risks associated with acquisitions, dispositions and development of properties; (v) tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that we maintain; (vii) environmental uncertainties, including risks of natural disasters; (viii) risks related to any potential health crisis and the measures that governments, agencies, law enforcement and/or health authorities implement to address such crisis; and (ix) those additional factors discussed in reports filed with the Bolsa Mexicana de Valores and in the U.S. Securities and Exchange Commission. We caution you that these important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation and in oral statements made by authorized officers of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. The Company undertakes no obligation to update or revise any forward-looking statements, including any financial guidance, whether as a result of new information, future events or otherwise except as may be required by law.
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