Corporacion Inmobiliaria Vesta S.a.b. De C.v. · BMV:VESTA

Corporacion Inmobiliaria Vesta S.a.b. De C.v — Investor Presentation (2019)

41 slides from Corporacion Inmobiliaria Vesta S.a.b. De C.v's investor presentation, 2019

  1. Slide 1: Innovating Mexico's Industrial Platform

    INNOVATING MEXICO´S INDUSTRIAL PLATFORM CORPORATE PRESENTATION CORPORACIÓN INMOBILIARIA VESTA S.A.B. DE C.V. 1Q19

  2. Slide 2: Disclaimer

    DISCLAIMER This presentation has been prepared by Corporación Inmobiliaria Vesta, S.A.B. de C.V. (“Vesta” or the “Company”) solely for use at this presentation. This presentation was prepared solely for informational purposes and does not constitute, and is not to be construed as, an offer or solici

  3. Slide 3: Vesta's Snapshot

    VESTA´S SNAPSHOT 3

  4. Slide 4: Vesta's Snapshot

    VESTA´S SNAPSHOT Fully integrated industrial real estate owner, operator and developer Park-to-suit ◼ Internally managed company (“PTS”) ◼ Offers innovative and customized solutions Custom-designed and [Add picture] ◼ Development approach to capture specific supply built industrial parks chain secto

  5. Slide 5: Strong Corporate Governance with Best-in-Class Governance Practices

    STRONG CORPORATE GOVERNANCE WITH BEST-IN-CLASS GOVERNANCE PRACTICES Board of Directors Lorenzo Berho Corona Independent members Executive Chairman Stephen B. José Manuel Craig Thomas J. Luis de la Wilfrido Óscar Francisco John Foster Williams Domínguez Wieland McDonald Calle Castillo Cazares Uranga

  6. Slide 6: Strong Corporate Governance: New Corporate Structure

    STRONG CORPORATE GOVERNANCE WITH BEST-IN-CLASS GOVERNANCE PRACTICES New Corporate Structure effective on August 1st, 2018 Board of Directors Executive Chairman Lorenzo Berho Chief Executive Officer Lorenzo D. Berho Chief Investment & Chief Legal Chief Integrity & HR Chief Financial Chief Commercial

  7. Slide 7: Highlights

    1 Record-high results 2 Resilient balance 3 Growth without dilution HIGHLIGHTS 4 Increasing dividends 5 Maximizing our stabilized portfolio 6 Attractive discount 7

  8. Slide 8: Record High Results

    RECORD HIGH RESULTS 8

  9. Slide 9: Record-High Results: Key Milestones

    1 RECORD-HIGH RESULTS Strong foundation proven through key milestones that have accelerated growth (millions sf) Initial Stage Pre IPO Post IPO Vesta 20/20 Vision 2012 – 2018 CAGR 2018 – 2020 CAGR 35.5 GLA GLA 16.4% 8.9% 33.0 Adj FFO per shr Adj FFO per shr 18.0% 9.2% 29.9 26.7 22.6 20.1 16.8 14.4 1

  10. Slide 10: Stable and Predictable Cash Flows and Profitability

    1 RECORD-HIGH RESULTS STABLE AND PREDICTABLE CASH FLOWS AND PROFITABILITY Highly predictable rental income & stable occupancy rates Strong EBITDA growth with low margin volatility(1) (US$ in millions) (US$ in millions) 85.0% 85.1% 85.0% 85.0% 97.5%97.5% 97.2% 96.8% 84.0% 83.7% 84.0% 165 140 95.3% 94

  11. Slide 11: Resilient Balance

    RESILIENT BALANCE 11

  12. Slide 12: Long Term Debt at Fixed Rates with Sound Liquidity

    2 RESILIENT BALANCE LONG TERM DEBT AT FIXED RATES WITH SOUND LIQUIDITY POSITION… 31/03/2019 Rate (US$ in millions) Secured Debt 6.2 years average MetLife I $47.5 4.4% maturity & 4.8% MetLife II $150.0 4.6% average interest rate MetLife III $118.0 4.8% 27 MetLife Top Off $26.6 4.8% 150 150 Total Secu

  13. Slide 13: One of the Largest and Most Modern Industrial Portfolios in Mexico

    2 RESILIENT BALANCE …ONE OF THE LARGEST AND THE MOST MODERN INDUSTRIAL PORTFOLIO IN MEXICO… (As of March 31, 2019, % of GLA) Consolidated: GLA = 30.4mm sf (2.83 mm m2) Buildings = 187 Land reserves = 37.8 mm sq.ft (3.5 mm m2) Stabilized portfolio occupancy 1Q’19 =96.8% Clients = 171 84.5% of rental

  14. Slide 14: Strong Client Base Diversified by Industry and Geography

    2 RESILIENT BALANCE …STRONG CLIENT BASE DIVERSIFIED BY INDUSTRY AND GEOGRAPHY WITH BALANCED COMBINATION OF GROWTH AND DEFENSIVE SECTORS... Balanced portfolio use Long-term and staggered lease maturity profile(1) (% of Occupied GLA, as of March 31, 2019) (% of Occupied GLA, as of September 30, 2018)

  15. Slide 15: Strong Tenant Credit Profile

    2 RESILIENT BALANCE …STRONG TENANT CREDIT PROFILE… 171 tenants (As of June 30, 2018, % of GLA) Food & beverage Automotive 25+ tenants Aerospace * Automotive 31.6% Logistics 28% Manufacturing Logistics 71% Energy4.4%* Recreational * Vehicles 5.6% Aerospace 8.4% * Medical Devices* 1.9% * Paper 0.1% Pl

  16. Slide 16: Exposure to Stable Component of Automotive Supply Chain

    2 RESILIENT BALANCE …EXPOSURE TO MOST STABLE BUSINESS COMPONENT OF AUTOMOTIVE SUPPLY CHAIN… (As of March 31, 2019 % of GLA) OEM 5.3% Post-crisis outcome: Tier 1 manufacturers have strengthened in a Tier 1 53.1% significant reduction of OEM suppliers driven by market consolidation where only the best

  17. Slide 17: Growth Without Dilution

    GROWTH WITHOUT DILUTION 17

  18. Slide 18: Strong Buy-Back Program and Increasing Key Financial Metrics

    3 GROWTH WITHOUT DILUTION STRONG BUY-BACK PROGRAM AND INCREASING KEY FINANCIAL METRICS Increasing FFO per share Increasing EBITDA per share 0.16 0.24 0.15 0.21 0.13 0.20 0.13 0.19 0.12 0.15 0.09 0.12 0.11 0.11 0.07 0.07 2014 2015 2016 2017 2018 1Q19 LTM 2019 E 2020 E 2014 2015 2016 2017 2018 1Q19 LT

  19. Slide 19: Increasing Dividends

    INCREASING DIVIDENDS 19

  20. Slide 20: Increasing Dividends

    4 INCREASING DIVIDENDS 9.0% ACCRETIVE DEVELOPMENT AND ACQUISITIONS WITH ACCELERATED LEASING ACTIVITY 8.0% 1.99 7.0% 6.5% 6.5% 1.74 1.68 6.1% 5.9% 6.0% 1.53 1.42 5.1% 1.45 1.36 1.36 1.36 5.0% 1.21 1.23 3.8% 4.0% 0.088 0.088 0.088 2.9% 0.080 3.0% 0.063 1.6% 1.5% 1.7% 2.0% 0.044 0.046 0.033 0.028 0.027

  21. Slide 21: Maximizing Our Stabilized Portfolio

    MAXIMIZING OUR STABILIZED PORTFOLIO 21

  22. Slide 22: Maximizing Our Stabilized Portfolio

    5 MAXIMIZING OUR STABILIZED PORTFOLIO THE DEVELOPMNET COMPONENT OF OUR PORTFOLIO TENDS TO DECREASE AS OUR STABILIZED GLA INCREASES WHILE DEVELOPMNET COSTS REMAIN FLAT GLA under development Our growth comes from different types of buildings 3% 46% 47% 3% 44% 42% 43% 8% 38% 35% 36% 36% 8% 34% 33% 33%

  23. Slide 23: Attractive Discount

    ATTRACTIVE DISCOUNT 23

  24. Slide 24: Higher Book NAV vs Share Market Price

    6 ATTRACTIVE DISCOUNT HIGHER BOOK NET ASSET VALUE VS SHARE MARKET PRICE Average Discount/Premium 12.2% 9.8% Amounts in US$ M -0.6% Properties 1,847 2012 2013 2014 2015 2016 2017 2018 1Q19 Land 125 -12.7% Cash 60 -33.6% -32.9% -35.5% -39.2% Debt Cash Collateral 4 Net Recoverable Taxes 10 Assets 2,046

  25. Slide 25: Stable Yields Through Increasing Price per Share

    6 ATTRACTIVE DISCOUNT ESTABLE YIELDS THROUGH INCREASING PRICE PER SHARE EBITDA yield FFO yield (EBITDA per share/ share price US$) (FFO per share/ share price US$) 17.4% 11.8% 14.8% 10.2% 13.8% 13.5% 9.6% 9.5% 9.3% 12.2% 9.9% 7.2% 7.0% 5.7% 4.5% 3.5% 2014 2015 2016 2017 2018 1Q19 LTM 2019 E 2020 E 2

  26. Slide 26: Appendix

    APPENDIX 26

  27. Slide 27: Historical Results

    HISTORICAL RESULTS (Figures in US$ M) 35 36 32 34 31 28 29 26 27 25 22 23 20 20 21 21 19 19 16 17 17 14 15 16 14 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 Revenue 96.6% 96.8% 96.9% 96.5% 96.8% 96.7% 96.9% 97.0% 96.4%

  28. Slide 28: Credit Metrics

    CREDIT METRICS LTV 36% 35% 35% 35% 32% 32% 30% 28% 26% 26% 26% 25% 25% 24% 23% 23% 23% 23% 23% 23% 23% 24% 24% 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 Net Debt / EBITDA 6.5x 5.9x 5.8x 5.9x 5.7x 5.5x 5.6x 5.5x 5.2x 5.1x 5.1x 5

  29. Slide 29: Credit Metrics

    CREDIT METRICS EBITDA/Interest Expense 6.0x 5.8x 4.9x 4.7x 4.6x 3.6x 3.7x 3.3x 3.4x 2.8x 3.0x 2.8x 2.7x 2.9x 3.1x 3.2x 3.0x 3.0x 2.5x 2.5x 2.6x 2.0x 2.2x 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 Debt/EBITDA 7.1x 6.9x 6.7x 6.5x

  30. Slide 30: Business Strategy

    2 BUSINESS STRATEGY …before being a public company our strategy was base on buying land inside industrial parks and develop building. Now we do Vesta Parks Vesta Park Lago Este Vesta Park Juárez 552,454 sf GLA 68,721 sf GLA Vesta Park El Florido 469,813 sf GLA Vesta Park Puerto Interior I 2.4 millio

  31. Slide 31: Case Studies

    CASE STUDIES Querétaro Aerospace Park • Construction start 2006 • GLA 2.18 million sf • 13 buildings 31

  32. Slide 32: Case Studies

    CASE STUDIES Douki Seisan Park • Construction start 2013 • GLA 2.13 million sf • 8 buildings 32

  33. Slide 33: Case Studies

    CASE STUDIES Vesta Park Toluca II • Construction start 2013 • GLA 1.47 million sf • 6 buildings 33

  34. Slide 34: Strategy Map: Financial Perspective

    STRATEGY MAP: FINANCIAL PERSPECTIVE 2020 Objectives Total 2018 Guidance Concept 2017-2020 Income increase between 18-20% GLA 33.2 M sf US$470 M investment to NOI 95% margin Land 71 acres complete the Vesta Vision EBITDA 83% margin Acquisition 20/20 Plan 2019 Guidance Increase Total Portfolio Develop

  35. Slide 35: Why Mexico?

    WHY MEXICO? • In 2016 Mexico was the sixteenth largest recipient of Foreign Direct Investment globally with more tan US$27,400 million. • Stable macroeconomic environment • Legal certainty to investment • Qualified human capital • 1 of every 7 manufacturing exports from Latin America originated in M

  36. Slide 36: Recognized Quality of Mexico's Automotive Manufacturing

    RECOGNIZED QUALITY OF MEXICO’S AUTOMOTIVE MANUFACTURING HAS ENABLED OEMS TO CHOOSE MEXICO AS A UNIQUE MANUFACTURING PLATFORM Mexico’s positive macroeconomic outlook and attractive industry dynamics serve as foundations for a promising growth potential in the automotive sector Source: Site Selection,

  37. Slide 37: Positive Industry Trends Driving Growth

    POSITIVE INDUSTRY TRENDS DRIVING GROWTH Industrial Real Estate Inventory Industrial market absorption 1 (m2 in millions) (m2 in millions) Bajio Central North 80.0 68.4 71.5 74.1 8.4 30% 4Q18 New Deliveries: 2.5 mm 70.0 62.7 25% 1.0 60.0 52.6 48.7 50.2 50.5 1.0 50.0 47.0 20% 5.5 40.0 15% 1.8 30.0 10%

  38. Slide 38: High Occupancy and Growing New Deliveries

    HIGH OCCUPANCY AND GROWING NEW DELIVERIES (4Q’18) Stock Availability Net Absorption Vacancy Rate Average Rent Growth New Deliveries 2018 USD/m2/mont (m2) (m2) YTD (m2) % h YTD % YTD (m2) Aguascalientes 2,199,864 68,596 46,715 3.1% 4.0 3.10% 66,179 Guadalajara 4,049,080 129,469 198,194 3.2% 4.4 0.50%

  39. Slide 39: Focus on Sustainability

    FOCUS ON SUSTAINABILITY FOR VESTA SUSTAINABILITY IS… "To contribute to the competitiveness of our clients and well being of society while minimizing the environmental impact of our developments" Social Investment Environment* ▪ 1.6 SF of GLA are LEED certified. ▪ 100% of the regions with at least 1

  40. Slide 40: Industry Trends

    INDUSTRY TRENDS 4.0 Industrial Revolution ▪ Ability to anticipate client demand ▪ New paradigm known as the 4th Industrial Revolution ▪ Convergence of technologies ▪ Ubiquitous and mobile internet ▪ More powerful and cheaper sensors ▪ Artificial intelligence ▪ Machine learning ▪ Rapid evolution towa

  41. Slide 41: Thank You!

    THANK YOU! WWW.VESTA.COM.MX

Corporación Inmobiliaria Vesta, S.A.B. de C.V. — Investor Presentation (2019) on 6ix