Corporacion Inmobiliaria Vesta Sab - ADR

Strong earnings & margin expansion; guidance raised - Q3 2025 total income: $72.4m (+13.7% YoY); rental/energy excluded income: $69.9m (+14.5%). - Adjusted NOI margin: 94.4% (up 16 bps YoY); Adjusted EBITDA margin: 85.3% (up 34 bps YoY). - FFO (ex current tax): $47.4m (+16.5% YoY). - Full-year 2025 guidance revised up: EBITDA margin to ~84.5% (from 83.5% prior), revenue growth expected 10–11%, and adjusted NOI margin ~94.5%.

Leasing momentum improving, but occupancy temporarily pressured by new deliveries - Q3 leasing: 1.7m sq ft total ( 597k sq ft new leases; 1.1m sq ft renewals with avg lease age ~6 years and trailing 12m weighted avg spread 12.4%). - Occupancy: total portfolio 89.7%; stabilized 94.3%; same-store 94.8%. - CEO framed the slight overall occupancy dip as temporary, driven by new buildings in lease-up from a robust development pipeline (expecting absorption to follow).

Market/region view: recovery uneven; Monterrey & Mexico City/Guadalajara strong; Tijuana slower - Monterrey: Apodaca park now in marketing phase (interest from advanced manufacturing/logistics). After quarter end (Oct 2025): acquisition of 330 acres in the high-demand Monterrey–Apodaca Airport Highway corridor; land bank nearing completion for Route 2030. - Ciudad Juárez: early turnaround—CBRE cited vacancy contracting 130 bps and Class A vacancy -190 bps, supported by 1.3m sq ft net absorption; Vesta secured 500k sq ft lease with a global electronics company. - Tijuana: still elevated vacancy due to spec deliveries/supply influx, but early signs of reactivation; CBRE notes 67% of leasing demand from manufacturing users. - Guadalajara & Mexico City: highlighted as consistently strong (Mexico City vacancy ~2%; record absorption YTD).