Corporacion Inmobiliaria Vesta S.a.b. De C.v. · BMV:VESTA
Corporacion Inmobiliaria Vesta S.a.b. De C.v — Q3 2021 Earnings Presentation
41 slides from Corporacion Inmobiliaria Vesta S.a.b. De C.v's earnings presentation, 2021
Slide 1: Corporate Presentation 3Q21
CORPORATE PRESENTATION 3Q21
Slide 2: Safe Harbor
SAFE HARBOR 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 solic
Slide 3: Vesta Snapshot
VesTA Vesta Snapshot Bw ma
Slide 4: Fully-integrated industrial real estate owner, operator and developer
Fully-integrated industrial real estate owner, operator and developer: Well positioned in Mexico, one of the world´s most attractive manufacturing and distribution hubs. Internally managed company, with strict focus on shareholders' return. Market benchmark offering innovative and customized solutio
Slide 5: Highlights
Demonstrated Track 1 Record 2 Level 3 Strategy 3 Strong financial results & Resilient balance sheet 4 Diversified portfolio Highlights Consistent Shareholder 5 Value Creation 6 Attractive discount Maximizing our stabilized 7 portfolio 8 Vesta Parks- Growth strategy Strong Commitment 9 www.vesta.com.
Slide 6: Demonstrated Track Record
VesTA Demonstrated Track Record
Slide 7: Strong foundation with critical milestones to consistently drive growth
Strong foundation with critical milestones to consistently drive growth Initial Stage Pre IPO Post IPO Vesta 20/20 Vison Level 3 Strategy 1998-2005 2006-2012 2015 2019 Investments from 2012 2013 2021 Investments Second Follow on First portfolio CALPERS, DEG, IPO Initial Follow on Third Follow on fro
Slide 8: Level 3 Strategy
VesTA Level 3 Strategy Bw ma
Slide 9: Strategy Overview
Strategy Overview Strategy based on five key pillars, supported by a strengthened organizational structure Becoming a World-Class Fully Integrated Industrial Real Estate Company I II III Strengthen balance sheet Manage, maintain and Invest and/or divest for and expand funding sources deepen current
Slide 10: Level 3 Strategy Takeaways
Level 3 Stategy Takeaways • Fully integrated real estate company that creates value throughout the business cycle Our Business Model • Manage, maintain and deepen current portfolio Our Strategic • Invest and / or divest for ongoing value creation Focus • Further strengthen our balance sheet and expa
Slide 11: Strong financial results & Resilient balance sheet
Strong financial results & Resilient balance sheet
Slide 12: Stable, and predictable cash flows and profitability
Stable, and predictable cash flows and profitability Highly predictable rental income & stable occupancy rates Strong EBITDA growth with low margin volatility¹ (US$ in millions) (US$ in millions) 97.2% 94.7% 93.1% 94.0% 95.3% 85.0% 84.0% 84.2% 84.9% 87.0% 94.2% 93.8% 91.1% 84.0% 83.7% 84.0% 84.1% 92
Slide 13: Long-term debt at fixed rates, with sound liquidity position
Long-term debt at fixed rates, with sound liquidity position… 30/09/2021 Rate Maturity Secured Debt 7.1 years average maturity & MetLife II $150.0 4.55% Aug-26 4.5% average interest rate 15 MetLife III $118.0 4.75% Nov-27 350 MetLife Top Off $26.6 4.75% Aug-26 Total Secured Debt $294.6 Unsecured Deb
Slide 14: Diversified portfolio
VesTA Diversified portfolio
Slide 15: One of the largest and most modern industrial portfolios in Mexico
…one of the largest and most modern industrial portfolios in Mexico… (As of September 30, 2021, % of GLA) Consolidated: GLA = 31.6 mm sf (2.94 mm m2) Buildings = 189 Land reserves = 40.9 mm sq.ft (3.8 mm m2) Stabilized portfolio occupancy 3Q21 =93.1% Clients = 185 83.9% of rental income is denominat
Slide 16: High-quality client base diversified by industry and geography
…high-quality client base increasingly diversified by industry and geography with balanced combination of growth and defensive sectors … Balanced portfolio use Long-term and staggered lease maturity profile¹ (% of Occupied GLA, as of September 30, 2021) 4.1 yrs weighted average (% of Occupied GLA, a
Slide 17: Strong tenant credit profile
…strong tenant credit profile… Automotive Logistics 4.7% E-commerce Automotive 24.6% Logistics 35.6% Manufacturing 64.4% Energy 4.2% Recreational Aerospace Vehicles 7.3% 7.3% Medical Aerospace Devices 1.5% Paper0.1% Plastics 2.8% Other 16.6% * Calculated over total occupied GLA www.vesta.com.mx
Slide 18: Exposure to most stable component of automotive supply chain
…exposure to most stable business component of automotive supply chain… Post-crisis outcome: Tier 1 manufacturers have strengthened with a significant reduction of OEM suppliers driven by market consolidation where only the best and most profitable survived. OEM 1.1% Tier 1 49.0% Tier 2 19.3% Tier 3
Slide 19: Consistent Shareholder Value Creation
Consistent Shareholder Value Creation
Slide 20: Accretive development and acquisitions drive strong FFO results and dividend yield
Accretive development and acquisitions, plus accelerated leasing activity and divestments drive strong FFO results and pay attractive dividend yield $2.50 0 5.9% 0 1.99 $2.00 1.94 5.1% 1.80 1.78 1.74 4.9% 4.9% 0 1.68 4.6% 1.53 $1.50 3.8% 1.36 0 1.21 1.23 2.9% 0 $1.00 0.096 0.088 0.080 0.082 0 1.6% 1
Slide 21: Focus on profitability
Focus on profitability… Growth paths for leading industrial real estate public companies Index base year 2015=100 240 2015 ‘16 ‘17 ‘18 ‘19 3Q21 230 220 210 3Q21 FFO1 per share 200 190 Vesta 180 FFO ps 2015-21 CAGR: 10.4% 170 FFO ps CAGR 2015-21 Prologis Inc 160 Vesta’s peers 150 ▪ Peer 1: 3.5% ▪ Pee
Slide 22: Attractive discount
Attractive discount
Slide 23: Higher Book Net Asset Value vs Market Price
Higher Book Net Asset Value vs Market Price Figures in US$ M 3Q20 3Q21 % change Average Discount/Premium 20.0% 11.3% Properties 1,940 2,160 12.2% 9.8% 0.0% Land 161 161 0.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 3Q21 173.0% Cash 137 374 -12.7% -20.0% -0.6% Debt Cash Collateral 4 12 200.0% -23
Slide 24: Maximizing our stabilized portfolio
Maximizing our stabilized portfolio
Slide 25: Portfolio development declines as stabilized GLA increases
Portfolio development declines as stabilized GLA increases GLA under construction Growth derived from various types of buildings 5% 3% 6% 2% 8% 95% 94% 46% 46% 46% 46% 97% 98% 43% 44% 8% 42% 92% 38% 9% 36% 36% 15% 34% 35% 34% 34% 92% 33% 33% 91% 28% 85% 23% 21% 21% 20% 21% 20% 20% 2014 2015 2016 201
Slide 26: Vesta Parks - Growth strategy
Vesta Parks- Growth strategy
Slide 27: Continued Organic Growth through Development Strategy
Continued Organic Growth through development Strategy North • is a sustainable City Park Name GLA (000's sf) Stage gated industrial park with TJ Lagoeste 552 state-of-the-art class A TJ Tijuana III 619 buildings designed for TJ VP Alamar 602 35% Bajio advanced light CDJ VP Juarez Sur 720 66% Cit
Slide 28: Focus on ESG
VesTA Focus on ESG Bw ma
Slide 29: Commitment and Focus on ESG
Commitment and Focus on ESG We Contribute to our clients’ and suppliers’ competitiveness and society’s well-being, while minimizing our environmental impact and related climate change risks. All our ESG initiatives are aligned with Vesta’s Level 3 Strategic Plan Key Performance Indicators (% of GLA)
Slide 30: Strong corporate governance with best-in-class practices
Strong corporate governance with best-in-class governance practices, since inception Board of Directors Lorenzo Berho Corona Executive Chairman Stephen B Jose Manuel Craig Elizabeth Luis de la Luis Javier Oscar Douglas M John Williams Dominguez Wieland Bell Calle Solloa Cazares Arthur Foster Social
Slide 31: Committees are 100% chaired by independent directors
Vesta´s Committees are 100% Chaired by independent directors Committees • Review and analysis of quarterly and annual financial statements Audit • Review of compliance with tax obligations • Analysis, approval and follow-up of Company’s operating budget • Evaluation and approval of salaries and exec
Slide 32: Strong Real Estate Fundamentals
Strong Real Estate Fundamentals
Slide 33: High occupancy, new deliveries increasing
High occupancy, new deliveries increasing (3Q21) MIN. MAX. UNDER ASKING ASKING UNDER GROSS NET *INDUSTRIAL MARKET MARKET SIZE AVAILABLE VACANCY CONSTRUCTION NEGATIVE ABS *SF DELIVERED PRICE PRICE CONSTRUCTION ABSORPTION ABSORPTION GROWTH BTS (US/SF) (US/SF) Juarez 67,000,994 SF 1,097,925 SF 1.64% 0.
Slide 34: Appendix
VesTA Appendix
Slide 35: Historical Results
Historical Results 40 41 38 37 38 38 36 36 36 36 37 34 35 31 32 28 29 26 27 25 22 23 20 21 21 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Revenue 96.8% 96.7% 96.9% 97.0% 96.2% 96.5% 97.0% 96.7% 96.1% 95.4% 96.3% 96.9% 9
Slide 36: Historical Results
Historical Results LTV 37% 38% 38% 37% 37% 36% 35% 35% 35% 35% 35% 35% 34% 34% 32% 32% 30% 23% 23% 23% 23% 23% 23% 24% 24% 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Net Debt / EBITDA 5.9x 5.7x 5.6x 5.7x 5.7x 5.7x 5.8x
Slide 37: Historical Results
Historical Results Debt/EBITDA 6.9x 6.8x 6.7x 7.1x 7.0x 6.9x 6.6x 6.3x 6.3x 6.5x 6.6x 6.2x 6.0x 5.7x 5.8x 5.9x 5.9x 5.3x 5.1x 5.0x 4.8x 4.7x 4.5x 4.7x 4.5x 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 EBITDA/Interest Exp
Slide 38: Case Studies: Querétaro Aerospace Park
Case Studies Querétaro Aerospace Park Construction start 2006 GLA 2.18 million sf 13 buildings www.vesta.com.mx
Slide 39: Case Studies: Douki Seisan Park
Case Studies Douki Seisan Park Construction start 2013 GLA 2.13 million sf 8 buildings www.vesta.com.mx
Slide 40: Case Studies: Vesta Park Toluca II
Case Studies Vesta Park Toluca II Construction start 2013 GLA 1.47 million sf 6 buildings www.vesta.com.mx
Slide 41: Thank you!
Thank you! www.vesta.com.mx
Corporación Inmobiliaria Vesta, S.A.B. de C.V. — Q3 2021 Earnings Presentation on 6ix