The following is a summary of the Corporación Inmobiliaria Vesta, S.A.B. De C.V. (VTMX) Q4 2023 Earnings Call Transcript:
Financial Performance:
Corporación Inmobiliaria Vesta registered a revenue increase of more than 20% to $214.5 million in 2023.
Total portfolio occupancy for the year marked at 93.4%.
FY23 FFO reached 127.9 million, an increase of 23.6% YoY.
The company carried out a significant acquisition of 81,000 square meters in Toluca with an estimated cap rate of 8.5%.
Vesta ended 2023 with $215 million in total revenue, exceeding expectations with a year-on-year increase of 20.5%.
Total revenues for Q4 stood at $55.9 million, a hike of 17.9% majorly due to new leases and inflationary adjustments.
Adjusted net operating income saw an increment of 19.4% reaching $53 million.
Pretax income stood at $99.8 million, marking an increase from the previous year's $74.8 million.
Vesta's FFO saw growth of 20% at $32.6 million.
Business Progress:
Vesta established strong relations with Foxconn and Tesla in Guadalajara and the Bajio region.
A record leasing activity marked at 2.7 million square feet in the fourth quarter of the year.
Almost 4 million square feet in new buildings were delivered and construction was started on 3.2 million square feet during the year.
The company has invested over $269 million in the acquisition and development of assets into best-in-class projects.
With their 2024 strategy largely focusing on investment in energy, substations, and grid connectivity, Vesta aims to anticipate market demand.
There is a focused approach on high-barrier entry markets like Monterrey, Mexico City, and Guadalajara, promising high prospects.
Vesta has initiated an asset recycling program and aims to deploy over $300 million in specific key markets for land acquisition.
The company plans to maintain a high-quality client base preferring long-term leases at or above market rates while expanding their asset portfolio in a disciplined manner for future acquisitions and investment cycles.
The company anticipates a revenue increase of 16% to 17% YoY in 2024 and achieving a 94% NOI margin as well as an 83% EBITDA margin.
The net profits from their IPO will be utilized to fund land acquisitions and the development of industrial buildings.
More details: Vesta Real Estate IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.