Vesta Announces Q4 2025 Results
Corporación Inmobiliaria Vesta S.A.B. de C.V. (“Vesta” or the “Company”) (BMV: VESTA; NYSE: VTMX), a leading industrial real estate company in Mexico, today reported its results for the fourth quarter ended December 31, 2025. All figures presented are in accordance with International Financial Reporting Standards (IFRS), which differ in certain significant respects from U.S. GAAP. Readers should review this information in conjunction with Vesta’s consolidated financial statements, including the notes. Unless otherwise stated, financial figures are in U.S. dollars.
Q4 2025 Financial Highlights
Vesta delivered strong financial results for the full year 2025. Total rental income increased to US$ 283.2 million, while rental revenues reached US$ 273.6 million, representing an 11.8% year-over-year increase. This exceeded the company’s full-year revenue guidance of 10–11%. Adjusted Net Operating Income (Adjusted NOI) margin reached 94.8%, surpassing the revised guidance of 94.5%, and Adjusted EBITDA margin reached 84.4%, in line with the revised guidance of 84.5%. Vesta’s Funds From Operations (Vesta FFO) totaled US$ 174.9 million in 2025, a 9.2% increase compared to US$ 160.1 million in 2024.
Leasing Activity
Vesta achieved notable leasing activity in 2025, totaling 6.9 million square feet (sf). This included 1.9 million sf in new leases and 5.0 million sf in lease renewals, marking the highest level of renewals over the last three years. The company’s weighted lease term reached seven years. Renewals and re-leasing activity totaled 5.4 million sf, with a trailing twelve-month weighted average spread of 10.8%.
In the fourth quarter, Vesta leased 1.9 million sf, including 771 thousand sf in new leases with tenants in the electronics, aerospace, and automotive sectors. Lease renewals accounted for 1.2 million sf, with a weighted average lease term of approximately five years. Total portfolio occupancy stood at 89.7% at quarter-end, while stabilized and same-store occupancy reached 93.6% and 95.0%, respectively.
Construction Updates
During the quarter, Vesta commenced construction on two new buildings: an inventory building in Guadalajara and a built-to-suit facility in Querétaro. Construction in progress totaled 0.8 million sf at the end of Q4 2025, representing an estimated investment of approximately US$ 59.0 million, with an expected yield on cost of 9.9%.
Debt Repayment and Financial Flexibility
On October 9, 2025, Vesta repaid its Metlife II credit facility and the related incremental facility, totaling US$ 150 million and US$ 26.6 million, respectively. Subsequent to quarter-end, on February 17, 2026, the company prepaid its MetLife III facility of US$ 118 million. These repayments strengthened Vesta’s balance sheet, leaving it with no secured debt and enhancing overall financial flexibility.
Dividend Payment
Vesta paid dividends of US$ 17.4 million for Q4 2025, equivalent to MXN$ 0.3751 per ordinary share, on January 19, 2026.
ESG and Sustainability Achievements
In 2025, Vesta was included in the S&P/BMV Total ESG Mexico Index for the sixth consecutive year and the S&P Global Sustainability Yearbook for the third consecutive year. The company exceeded the targets of its sustainability-linked bond issued in early 2021, finishing 2025 with 19 new LEED-certified buildings and 19 EDGE-certified buildings. Approximately 54% of Vesta’s gross leasable area (GLA) is now certified. Vesta also maintained an AA rating from MSCI ESG for the second consecutive year.
2026 Guidance
For 2026, Vesta expects rental revenues to grow 10.0–11.0%, with an Adjusted NOI margin of approximately 93.5% and an Adjusted EBITDA margin of around 83%. The company anticipates maintaining solid performance across key operational metrics.
Quarterly Financial Indicators
Fourth quarter 2025 total revenues reached US$ 76.4 million, a 17.2% increase from US$ 65.2 million in Q4 2024. Revenues excluding energy grew 16.0% to US$ 73.4 million, reflecting US$ 8.6 million from new revenue-generating contracts and US$ 2.2 million from favorable inflationary effects.
Adjusted NOI for Q4 2025 increased 17.1% to US$ 69.4 million, compared to US$ 59.3 million in the same period of 2024. The adjusted NOI margin was 94.6%, an 88-basis-point increase year over year, driven by higher rental income and a lower proportion of costs relative to income.
Adjusted EBITDA rose 18.2% to US$ 61.1 million, compared to US$ 51.7 million in Q4 2024. The EBITDA margin improved 155 basis points to 83.3%, primarily due to higher revenues and a decrease in administrative expenses relative to rental income.
Funds From Operations
Vesta FFO after tax decreased to US$ 3.4 million in Q4 2025, compared to US$ 39.6 million in Q4 2024. FFO after tax per share was US$ 0.0039, down from US$ 0.0452, primarily due to higher current tax expenses driven by Mexican peso appreciation. Excluding current taxes, FFO decreased slightly to US$ 39.3 million from US$ 41.1 million in the same quarter of 2024, mainly due to higher interest expenses.
Comprehensive Income
Vesta reported total comprehensive income of US$ 172.4 million in Q4 2025, compared to a loss of US$ 66.6 million in Q4 2024. The improvement was largely driven by positive effects from deferred taxes.
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