Corporacion Inmobiliaria Vesta S.a.b. De C.v. · BMV:VESTA
Corporacion Inmobiliaria Vesta S.a.b. De C.v — Investor Presentation (October 2019)
39 slides from Corporacion Inmobiliaria Vesta S.a.b. De C.v's investor presentation, October 2019
Slide 1: Corporate Presentation 3Q19
CORPORATE PRESENTATION 3Q19
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
Slide 3: Vesta's Snapshot
VesTA Vesta’s Snapshot Bw ma
Slide 4: Fully integrated industrial real estate owner, operator and developer
Fully integrated industrial real estate owner, operator and developer: Internally managed company. Offers innovative and customized solutions. Development approach to capture specific supply chain sectors and generate higher returns. 182 174 Class A industrial properties located in Mexico’s key trad
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 Executive Chairman Stephen B Jose Manuel Craig Thomas J. Luis de la Wilfrido Oscar Francisco John Williams Dominguez Wieland McDonald Calle Castillo Cazares Uranga Foster Social and Investment
Slide 6: Highlights
1 Record-high results 2 Resilient balance Highlights 3 Growth without dilution 4 Increasing dividends Maximizing our stabilized 5 portfolio 6 Attractive discount www.vesta.com.mx
Slide 7: Record-high Results
VesTA Record-high Results
Slide 8: Strong foundation proven through key milestones that have accelerated growth
Strong foundation proven through key milestones that have accelerated growth Initial Stage Pre IPO Post IPO Vesta 20/20 Vison Level 3 Strategy 41.2 39.2 37.3 35.3 33.5 31.5 29.9 29.9 26.7 22.6 20.1 16.8 14.4 12.0 10.8 11.0 11.3 11.4 9.9 6.9 4.8 3.5 2.6 1.1 1.2 1.5 0.6 0.7 1998 1999 2000 2001 2002 20
Slide 9: 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) 97.2% (US$ in millions) 85.0% 84.0% 84.0% 86. 0% 95.3% 95.6% 96.0% 96.0% 84.0% 83.7% 84.0% 84.4% 129 94.2% 154 82.5% 82.8%
Slide 10: Resilient balance
Resilient balance
Slide 11: Long term debt at fixed rates with sound liquidity position
Long term debt at fixed rates with sound liquidity position… 30/09/2019 Rate Maturity Secured Debt MetLife I $47.5 4.4% Apr-22 7 years average maturity & MetLife II $150.0 4.6% Aug-26 4.8% average interest rate MetLife III $118.0 4.8% Nov-27 MetLife Top Off $26.6 4.8% Aug-26 Total Secured Debt $342.
Slide 12: One of the largest and most modern industrial portfolios in Mexico
…one of the largest and the most modern industrial portfolios in Mexico… (As of September 30, 2019, % of GLA) Consolidated: GLA = 29.3mm sf (2.72 mm m2) Buildings = 182 Land reserves = 40.1 mm sq.ft (3.7 mm m2) Stabilized portfolio occupancy 3Q19 =95.6% Clients = 174 86.5% of rental income is denomi
Slide 13: Strong client base diversified by industry and geography
…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 profile¹ (% of Occupied GLA, as of September 30, 2019) (% of Occupied GLA, as of September 30, 2019) 5.0 yrs weighted av
Slide 14: Strong tenant credit profile
…strong tenant credit profile… Automotive Logistics Automotive 30.7% Logistics 28.5% Manufacturing 72.3% Energy 4.5% Recreational Aerospace Vehicles 5.9% 8.2% Medical Aerospace Devices 2.0% Paper 0.1% Plastics 3.5% Other 16.6% * Calculated over total occupied GLA www.vesta.com.mx
Slide 15: Exposure to most stable business component of automotive supply chain
…exposure to most stable business component of automotive supply chain… Post-crisis outcome: Tier 1 manufacturers have strengthened in a significant reduction of OEM suppliers driven by market consolidation where only the best and most profitable survived. OEM 5.4% Tier 1 53.4% Tier 2 15.6% Tier 3 4
Slide 16: Growth without dilution
VvesTA Growth without dilution
Slide 17: Strong buy-back program and increasing key financial metrics
Strong buy-back program and increasing key financial metrics Increasing FFO per share Increasing EBITDA per share 0.22 0.15 0.21 0.21 0.14 0.14 0.19 0.13 0.12 0.15 0.09 0.11 0.12 0.11 0.07 0.07 2014 2015 2016 2017 2018 3Q19 LTM 2019 E 2020 E 2014 2015 2016 2017 2018 3Q19 LTM 2019 E 2020E Lower numbe
Slide 18: Increasing dividends
VesTA Increasing dividends
Slide 19: Accretive development, acquisitions and leasing results in strong financial metrics
The accretive development, acquisitions, accelerated leasing activity and devesting, results in strong financial metrics to 9.0% distribute an attractive yield 8.0% 1.99 7.0% 1.74 6.2% 1.68 5.7% 5.9% 5.9% 6.0% 1.53 1.54 1.54 1.54 5.1% 1.36 5.0% 1.21 1.23 3.8% 4.0% 2.9% 0.10 0.09 0.09 3.0% 0.08 1.6%
Slide 20: Maximizing our stabilized portfolio
Maximizing our stabilized portfolio
Slide 21: Development of our portfolio decreases as stabilized GLA increases
The developmnet of our portfolio tends to decrease as our stabilized GLA increases while development costs remain flat GLA under construction Our growth comes from different types of buildings 3% 43% 44% 46% 46% 8% 3% 42% 97% 97% 38% 36% 36% 8% 34% 35% 33% 33% 9% 92% 15% 28% 92% 91% 23% 21% 21% 21%
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 3Q19 Average Discount/Premium Properties 1,821 12.2% 20.0% 9.8% -0.6% Land 144 0.0% 2012 2013 2014 2015 2016 2017 2018 3Q19 Cash 111 -20.0% -12.7% -33.6% -35.5% -32.8% -39.2% Debt Cash Collateral 4 -40.0% Net Recoverable VAT - -60.0% Asset
Slide 24: Stable yields through increasing price per share
Stable yields through increasing price per share EBITDA yield FFO yield (EBITDA per share/share price US$) (FFO per share/share price US$) 14.5% 13.8% 13.6% 13.5% 10.0% 9.6% 9.5% 9.2% 12.2% 9.1% 9.9% 7.2% 7.0% 5.7% 4.5% 3.5% 2014 2015 2016 2017 2018 3Q19 LTM 2019 2020 2014 2015 2016 2017 2018 3Q19 L
Slide 25: Appendix
VesTA Appendix
Slide 26: Historical Results
Historical Results 35 36 36 36 32 34 31 28 29 26 27 23 25 21 21 22 19 20 19 20 16 16 17 17 15 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Revenue 97% 97% 97% 97% 97% 97% 97% 97% 96% 96% 96% 97% 97% 96% 96% 96% 96% 97. 0
Slide 27: Historical Results
Historical Results LTV 36% 35% 35% 35% 34% 35% 32% 32% 30% 26% 26% 26% 25% 25% 24% 23% 23% 23% 23% 23% 23% 23% 24% 24% 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Net Debt / EBITDA 6.5x 5.9x 5.8x 5.9x 5.7x 5.6x 5.5x 5.2x 5.3
Slide 28: Historical Results
Historical Results Debt/EBITDA 6.7x 6.9x 6.5x 6.2x 6.0x 6.3x 6.3x 6.2x 6.0x 5.7x 5.4x 5.8x 5.5x 5.7x 5.8x 5.9x 5.3x 5.1x 5.0x 4.8x 4.7x 4.5x 4.7x 4.5x 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 EBITDA/Interest Expense 9x 8x
Slide 29: Strategy shift to Vesta Parks
Before beign a public company our strategy was base on buying land insde industrial Parks and develope buildings. Now we do Vesat 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 million sf GLA Vesta Park
Slide 30: 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 31: 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 32: 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 33: Positive industry trends driving growth
Positive industry trends driving growth Industrial Real Estate Inventory Industrial market absorption¹ (m2 in millions) (m2 in millions) 74.1 Bajio Central North 80.0 68.4 71.5 70.0 CAGR ‘10–2018: 5.8% 30% 8.4 62.7 4Q18 New Deliveries: 2.5 mm 25% 60.0 1.0 50.2 50.5 52.6 50.0 47.0 48.7 20% 1.0 40.0 1
Slide 34: 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%
Slide 35: 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* • 100% of the regions with at least 1 social project. • 1.6 SF of GLA are
Slide 36: Why Mexico?
Why Mexio? 76 open airports (12 national 64 international) 117 maritime ports • In 2016 Mexico was the sixteenth largest recipient of Foreign Direct 27 thousand kilometers of railways Investment globally with more tan US$27,400 million. 370 thousand kilometers of roads • Stable macroeconomic environ
Slide 37: 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 www.vesta.com.mx
Slide 38: Industry trends
Industry trends 4.0 Industrial Revolution 4.0 and Mexico • Ability to anticipate client demand • Mexico is a world-class Manufacturing Hub, • New paradigm known as the 4th Industrial exporting more than one billion dollars per Revolution day • Convergence of technologies • 50% of these exports are m
Slide 39: Thank you!
Thank you! www.vesta.com.mx
Corporación Inmobiliaria Vesta, S.A.B. de C.V. — Investor Presentation (October 2019) on 6ix