Corporacion Inmobiliaria Vesta Q2 Earnings Call Highlights

Second-quarter performance improved as Vesta reported revenue up 16.7% year over year to $78.5 million, with adjusted EBITDA rising 15.7% and FFO increasing 6.8%. Management attributed the gains to higher rental income, inflationary adjustments, and stronger property revaluation results. Leasing drove occupancy higher , with about 2.4 million square feet of activity in the quarter and total portfolio occupancy reaching 91.7% from 89.7% in Q1. The company also highlighted strong pricing power, including a trailing 12-month weighted average spread of 10.3% on renewals and re-leasing. Route 2030 development is expanding , with roughly 1.8 million square feet under construction and a large 23 million-square-foot land bank supporting future projects. Vesta said demand is coming from AI-related infrastructure, electronics, logistics, automotive and advanced manufacturing, especially in markets such as Monterrey, Guadalajara, Tijuana and Ciudad Juárez. Corporacion Inmobiliaria Vesta NYSE: VTMX reported stronger second-quarter 2026 results, citing higher rental revenue, improved occupancy, active leasing and progress on its Route 2030 development strategy, according to management comments on the company’s earnings call. Chief Executive Officer Lorenzo Berho said Vesta is “converting demand into leases into occupancy” and turning its land bank into “disciplined development,” despite uncertainty in the global trade environment. Management said Mexico remains well positioned as a manufacturing and logistics platform due to nearshoring, North American supply chain integration and trade flows with the United States. Berho said the U.S.-Mexico-Canada Agreement remains in force and added that, in Vesta’s view, Mexico would remain competitive even if the agreement continued without a formal near-term extension. He cited CBRE and U.S. Census data showing Mexico was the United States’ largest goods trading partner in May, accounting for 17.4% of U.S. goods imports, compared with 7.5% for China. Vesta reported approximately 2.4 million square feet of total leasing activity in the quarter, including about 900,000 square feet of new leases with new tenants and 1.5 million square feet of renewals. Berho said the renewals carried a weighted average lease term of about seven years and a quarterly spread of nearly 217%. Total portfolio occupancy reached 91.7% at quarter end, up from 89.7% in the first quarter. Stabilized occupancy was 93.7%, while same-store occupancy remained at 95%. Berho said occupancy exceeded 80% in Monterrey and reached 100% in both Mexico City and the Central Southeast region. Management also pointed to continued pricing power. Renewals and re-leasing activity totaled 1.5 million square feet, with a trailing 12-month weighted average spread of 10.3%. Berho said renewal activity was especially strong in northern markets, where Vesta achieved significant mark-to-market increases. “Even in markets where vacancy has increased, tenants continue to prioritize high-quality buildings: infrastructure, location, energy availability, and an experienced partner they know can support their long-term operations,” Berho said. Chief Financial Officer Juan Sottil said total revenues increased 16.7% year over year to $78.5 million. Revenues excluding energy reached $76 million, up 16.2%, driven primarily by rental income from new leases and inflationary adjustments across the portfolio. Adjusted net operating income rose 15.6% to $71.5 million, with an adjusted NOI margin of 94%. Adjusted EBITDA increased 15.7% to $63.6 million, with a margin of 83.7%. Vesta FFO excluding current tax rose 6.8% to $46.1 mill.