Corporación Inmobiliaria Vesta Reports First Quarter 2021 Earnings Results

MEXICO CITY, April 30, 2021 /PRNewswire/ — Corporación Inmobiliaria Vesta S.A.B. de C.V., («Vesta», or the «Company») (BMV: VESTA), one of the…

MEXICO CITY, April 30, 2021 /PRNewswire/ — Corporación Inmobiliaria Vesta S.A.B. de C.V., («Vesta», or the «Company») (BMV: VESTA), one of the leading pure-play industrial real estate companies in Mexico, today announced results for the first quarter ended March 31, 2021. All figures included herein were prepared in accordance with International Financial Reporting Standards (IFRS) and are stated in US dollars unless otherwise noted.

Highlights

  • On March 2021, Vesta’s shareholders approved the Company’s new financial plan at its annual Shareholders’ Meeting. The plan includes raising US$ 300 million in capital and increasing Vesta’s debt limit to US$ 1,250 million from US$ 850 million, ensuring Vesta has the necessary financial flexibility to continue its growth plans.
  • On April 27, 2021 Vesta announced the successful conclusion of its primary equity offering of common shares through the Mexican Stock Exchange, successfully raising US$ 229 million in gross proceeds, including the over-allotment option which has been successfully exercised.
  • As presented in the Shareholder´s Meeting and as part of the Company’s financial plan, the Company is considering, subject to market and other conditions, the issuance of a new bond in order to refinance some of its existing debt and  to extend the maturity profile of its debt portfolio.
  • During the first quarter 2021, Vesta acquired additional land in the city of Monterrey on which it plans to develop a Vesta Park of approximately 1.4 million square feet, representing a total investment of approximately US$ 70 million including land cost and infrastructure costs.
  • Revenues increased 1.8% during 1Q21 to US$ 38.39 million, from US$ 37.71 million in 1Q20, while NOI and EBITDA increased 5.0% and 6.3%, respectively, and margins reached 96.9% and 87.1%, respectively. This reflects a continued prudent approach to cost and administrative expenses as well as improved collections which reduced the Company’s doubtful accounts reserve.
  • 1Q21 NAV per share increased 2.7% to US$ 2.42, from US$ 2.36 in 1Q20, while pre-tax FFO per share increased 1.8% year on year, to US$ 0.0389 at the end of 1Q21, from US$ 0.0382 in 1Q20.
  • Leasing activity for the quarter reached 1,303,180 ft² (121,069 m²) comprised of 545,486 ft² (50,677 m²) through 225,966 ft² (98,509 m²) related to Mercado Libre´s continued expansion as well as 319,520 ft² (29,684 m²) in new contracts with companies such DB Schenker and Living Spaces and 757,694 ft² (70,392 m²) in lease renewals. Closing 1Q21 with a 90.0% occupancy in our total portfolio and droving 2021 and 2022 maturities to 4.6%and 12.9%, respectively. 
  • Vesta began construction of two 305,684 ft² (28,399 m²) inventory building in Ciudad Juarez and has resumed the construction of a 405,509 ft² (37,673 m²) inventory building in Guadalajara. Vesta´s 1Q21 development portfolio therefore totaled 1,257,366 ft² (116,813 m²) with a US$ 68.8 million total investment, 18% of which has been leased, with a 10.6% expected weighted average return on cost.




Financial Indicators (million)

1Q21

1Q20

Chg. %

Rental Income

38.39

37.71

1.8

NOI

37.22

35.44

5.0

NOI Margin %

96.9%

94.0%


EBITDA

33.44

31.46

6.3

EBITDA Margin %

87.1%

83.4%


EBITDA Per Share

0.0581

0.0542

7.2

Total Comprehensive Income

13.47

(25.93)

na

FFO Pretax

22.39

22.17

1.0

FFO Pretax Per Share

0.0389

0.0382

1.8

FFO

16.87

20.32

(17.0)

FFO Per Share

0.0293

0.0350

(16.3)

EPS

0.0234

(0.0447)

na

Shares (average)

575.80

580.66

(0.8)

  • Revenues increased by 1.8% in 1Q21 to US$ 38.39 million, from US$ 37.71 million in 1Q20. This increase is primarily due to new revenue-generating contracts closed during the first quarter 2021.
  • Net Operating Income («NOI») increased 5.0% to US$ 37.22 million in 1Q21, compared to US$ 35.44 million in 1Q20. The first quarter 2021 NOI margin was 96.9%; a 298-basis-point increase due to lower costs related to rental income generating properties.
  • EBITDA increased 6.3% to US$ 33.44 million in the first quarter 2021, as compared to US$ 31.46 million in the first quarter of 2020. 1Q21 EBITDA margin was 87.1%; a 366-basis point increase due to the Company´s prudent approach to costs and administrative expenses during the quarter as well as an increase in the long-term incentive.
  • Pre-tax funds from operations («pre-tax FFO») for 1Q21 increased 1.0% to US$ 22.39 million, from US$ 22.17 million for the same period in 2020. Pretax FFO per share was US$ 0.0389 for the first quarter 2021, compared with US$ 0.0382 for the same period in 2020; a 1.8% increase. 1Q21 after tax FFO was US$ 16.87 million, compared to US$ 20.32 million during 1Q20. This decrease was due to increased current taxes in 1Q21.
  • Total comprehensive gain for 1Q21 was US$ 13.47 million, versus a US$ 25.93 million loss in the same quarter 2020. This increase was primarily due to lower deferred taxes during 1Q21. 
  • As of March 31, 2021, the total value of Vesta’s investment property portfolio was US$ 2.12 billion; a 0.9% increase compared to US$ 2.10 billion at the end of December 31, 2020.

For a full version of Corporación Inmobiliaria Vesta First Quarter 2021 Earnings Release please visit: https://www.vesta.com.mx/investors/financial_information

CONFERENCE CALL INFORMATION:

Vesta will host a conference call on Monday, May 3, to discuss these results at 10:00 a.m. Eastern Time / 9:00 a.m. Central Time (Mexico City Time).

To access the call, please dial:

US, toll-free: +1 877-705-6003

International, toll: +1 201-493-6725

Mexico, toll-free: +1 800-522-0034

A replay will be available from 1 p.m. on May 3 until May 17, 2021 and can be accessed by dialing:

US, toll-free: +1 844-512-2921

International, toll: +1 412-317-6671

Replay ID: 13718701

About Vesta

Vesta is a best-in-class, fully integrated real estate company that owns, manages, acquires, sells, develops and re-develops industrial properties in Mexico. As of March 31, 2020, Vesta owned 189 properties located in modern industrial parks in 15 states of Mexico totaling a GLA of 31.6 million ft2 (2.93 million m2). The Company has multinational clients, which are focused in industries such as e-commerce/retail, aerospace, automotive, food and beverage, logistics, medical devices, and plastics, among others. 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 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 the outbreak and spread of COVID-19 and the measures that governments, agencies, law enforcement and/or health authorities implement to address it; 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, 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, whether as a result of new information, future events or otherwise except as may be required by law.

Contact Information:

Juan Sottil, CFO

+52 55 5950-0070 ext. 133

jsottil@vesta.com.mx

Fernanda Bettinger, IRO

+52 55 5950-0070 ext. 163

mfbettinger@vesta.com.mx 

investor.relations@vesta.com.mx

Barbara Cano, InspIR Group

+1 646 452-2334

barbara@inspirgroup.com

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