Corporacion Inmobiliaria Vesta S.a.b. De C.v. · BMV:VESTA
Corporacion Inmobiliaria Vesta S.a.b. De C.v — Q3 2022 Earnings Presentation
41 slides from Corporacion Inmobiliaria Vesta S.a.b. De C.v's earnings presentation, 2022
Slide 1: Corporate Presentation 3Q22
CORPORATE PRESENTATION 3Q22
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 2021 1998-2005 2006-2012 2015 2019 Third Follow on Investments from 2012 2013 Investments Second Follow on First portfolio (US$ 200 M) CALPERS, DEG, IPO Initial F
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) 87. 0% 97.2% 85.0% 83.5% 96.6% 95.0% 84.0% 83.7% 84.0% 84.1% 84.2% 84.5% 84.1% 94.7% 94.2% 93.8% 95.3% 9
Slide 13: Long-term debt at fixed rates, with sound liquidity position
Long-term debt at fixed rates, with sound liquidity position… 30/09/2022 Rate Maturity Secured Debt MetLife II $150.0 4.55% Aug-26 6.1 years average maturity & MetLife III $118.0 4.75% Nov-27 4.5% average interest rate 15 350 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, 2022, % of GLA) Consolidated: GLA = 32.3 mm sf (2.99 mm m2) Buildings = 194 Land reserves = 40.8 mm sq.ft (3.8 mm m2) Stabilized portfolio occupancy 3Q22 =96.6% Clients = 184 82.0% 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, 2022) (% of Occupied GLA, as of September 30, 2022)
Slide 17: Strong tenant credit profile
…strong tenant credit profile… Automotive Logistics 7.4% E-commerce Automotive 23.9% Logistics 41.3% Manufacturing 58.7% Aerospace 7.0% Other 16.8% Food and Beverage 0.3% Energy 4.0% Aerospace Other Vehicles 2.5% Medical Devices Plastics 2.6% Paper0.1% 1.4% * Calculated over total occupied GLA www.v
Slide 18: 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 with a significant reduction of OEM suppliers driven by market consolidation where only the best and most profitable survived. OEM 1.0% Tier 1 48.6% Tier 2 17.1% 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 7.0% 5.9% 6.0% 1.99 2.00 $2.00 1.94 5.1% 1.85 1.80 1.74 4.9% 4.9% 5.0% 1.68 4.6% 1.53 $1.50 4.1% 3.8% 1.36 4.0% 1.21 1.23 2.9% 3.0% 0.096 $1.00 0
Slide 21: Focus on profitability
Focus on profitability… Growth paths for leading industrial real estate public companies Index base year 2015=100 240 2015 ‘16 ‘17 ‘18 ‘19 3Q22 230 220 210 3Q22 FFO1 per share 200 190 Vesta 180 FFO ps 2015-3Q22 CAGR: 11.5% 170 FFO ps CAGR 2015-2Q22 160 Vesta’s peers Prologis Inc ▪ Peer 1: 4.1% 150 P
Slide 22: Attractive discount
Attractive discount
Slide 23: Higher Book Net Asset Value vs Market Price
Higher Book Net Asset Value vs Market Price Average Discount/Premium 20.0% 9.8% Figures in US$ M 3Q21 3Q22 % change 12.2% 0.0% Properties 2,160 2,475 14.6% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 3Q22 Land 161 192 18.9% -20.0% -0.6% -12.7% Cash 374 254 -32.0% -23.1% -20.5% -23.1% Debt Cash
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 47% 48% 9% 46% 46% 46% 3% 43% 44% 5% 42% 3% 2% 8% 38% 35% 36% 36% 97% 95% 91% 34% 33% 33% 34% 33% 8% 97% 98% 32% 9% 92% 15% 28% 92% 23% 21% 20% 21% 21% 20% 21% 91% 19% 85%
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 governance 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 Daniela Luis de la Loreanne Oscar Douglas M Luis Javier Williams Dominguez Wieland Berho Calle García Cazares Arthur Solloa Soci
Slide 31: Vesta's 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, supported by a strong market
High occupancy, supported by a strong market (3Q22) MIN. ASKING PRICE MAX. ASKING PRICE UNDER CONSTRUCTION MARKET MARKET SIZE (SF) AVAILABLE (SF) VACANCY GROSS ABSORPTION (SF) (US/SF) (US/SF) (SF) Chihuahua 25,768,889 115,960 0.45% $0.41 $0.44 169,570 1,540,000 Juarez 70,630,000 122,623 0.17% $0.58
Slide 34: Appendix
VesTA Appendix
Slide 35: Historical Results
Historical Results 46 42 42 43 40 41 38 37 38 38 35 36 36 36 36 37 32 34 31 28 29 26 27 25 23 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Revenue 96.2% 95.3% 96.4% 96.4% 95.7% 96.5% 97.0% 96.7% 96.1% 95.4% 96.3% 95.3% 9
Slide 36: Historical Results
Historical Results LTV 36% 35% 35% 35% 37% 38% 38% 37% 37% 35% 34% 35% 34% 35% 34% 34% 33% 32% 32% 32% 30% 23% 23% 24% 24% 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q21 2Q22 3Q22 Net Debt / EBITDA 5.9x 5.7x 5.6x 5.5x 5.6x 5.7x 5.7x
Slide 37: Historical Results
Historical Results Debt/EBITDA 6.9x 6.9x 6.8x 7.1x 7.0x 6.9x 6.5x 6.6x 6.7x 6.6x 6.8x 6.6x 6.3x 6.3x 6.2x 6.0x 6.4x 5.7x 5.8x 5.9x 5.9x 4.7x 4.5x 4.7x 4.5x 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q21 2Q22 3Q22 EBITDA/Interest Exp
Slide 38: Case Studies
Case Studies Querétaro Aerospace Park Construction start 2006 GLA 2.18 million sf 13 buildings www.vesta.com.mx
Slide 39: Case Studies
Case Studies Douki Seisan Park Construction start 2013 GLA 2.13 million sf 8 buildings www.vesta.com.mx
Slide 40: Case Studies
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 2022 Earnings Presentation on 6ix