Corporación Inmobiliaria Vesta Reports Strong Third Quarter 2025 Financial Performance and Expands Growth Strategy
Corporación Inmobiliaria Vesta S.A.B. de C.V. (“Vesta” or the “Company”) (BMV: VESTA; NYSE: VTMX), a leading developer, owner, and operator of industrial real estate in Mexico, announced its financial results for the third quarter ended September 30, 2025. The results highlight another quarter of solid growth, strategic expansion, and disciplined financial management, reinforcing Vesta’s position as a top player in the construction-driven industrial real estate market in Mexico.
All figures are prepared in accordance with International Financial Reporting Standards (IFRS) and presented in U.S. dollars unless otherwise stated. These results should be read in conjunction with Vesta’s consolidated financial statements and accompanying notes.
Upgraded 2025 Full-Year Guidance Reflects Operating Strength
Vesta has revised its full-year 2025 guidance, raising its EBITDA margin projection to 84.5%, up from the prior estimate of 83.5%. The improvement reflects the company’s strong cost-control discipline and efficient operations. The company reaffirmed its expectations for revenue growth between 10% and 11% and an adjusted net operating income (NOI) margin of 94.5%, signaling continued operational excellence.
Third Quarter 2025 Financial Highlights
Vesta delivered another quarter of robust financial results, driven by strong leasing activity, disciplined expense management, and strategic asset recycling.
- Total income: US$ 72.4 million, up 13.7% year-over-year (YoY) from US$ 63.7 million in Q3 2024.
- Total income excluding energy: US$ 69.9 million, a 14.5% increase compared to US$ 61.1 million in Q3 2024.
- Adjusted NOI margin: 94.4%, reflecting improved operational efficiency.
- Adjusted EBITDA margin: 85.3%, supported by revenue growth and lower administrative expenses.
The company’s funds from operations (FFO) reached US$ 47.4 million, representing a 16.5% increase from the prior year. On a per-share basis, FFO rose 20.1% to US$ 0.055, underscoring the company’s ability to generate sustainable cash flow for investors.
Operational Performance: Strong Leasing and Expansion Momentum
Vesta’s third-quarter 2025 leasing activity totaled 1.7 million square feet (sf), including:
- 600,000 sf in new lease contracts across electronics, e-commerce, and automotive sectors, reflecting improving demand in Mexico’s industrial markets.
- 1.1 million sf in lease renewals, with an average weighted lease life of approximately six years.
During the quarter, Vesta began construction on one new building in Guadalajara and delivered 1.3 million sf of new facilities. The company’s stabilized portfolio occupancy remained strong at 94.3%, reflecting steady tenant demand and strategic portfolio management.
Renewals and re-leasing activity reached 1.2 million sf, with a trailing twelve-month average spread of 12.4%, indicating favorable pricing power. The company’s same-store NOI rose 2.4% YoY, supported by higher rent collections and minimal vacancy losses.
Strategic Financing and Balance Sheet Strength
A major financial milestone during Q3 2025 was the successful issuance of US$ 500 million in senior unsecured notes, bearing a 5.50% interest rate and maturing in 2033. The issuance, rated BBB-/Positive by both S&P Global Ratings and Fitch Ratings, strengthens Vesta’s balance sheet, provides financial flexibility, and advances the company’s transition toward a fully unsecured capital structure.
The proceeds from this bond issuance are being used strategically to repay existing debt and support long-term growth initiatives. Following the quarter’s close, on October 9, 2025, Vesta repaid its MetLife II credit facility of US$ 150 million and an additional US$ 26.6 million incremental facility, optimizing its debt maturity profile and reducing financing costs.
Portfolio Optimization: Strategic Sale and Land Acquisition
As part of its asset recycling strategy, Vesta sold an 80,604-square-foot building in Ciudad Juárez for US$ 5.5 million, representing an approximately 10% premium to its appraised value. The transaction demonstrates Vesta’s disciplined approach to capital recycling — selling mature assets at favorable valuations to reinvest in higher-growth opportunities.
Following quarter-end, on October 22, 2025, Vesta announced the acquisition of 330 acres of prime industrial land in Monterrey, located in the high-demand Monterrey-Apodaca Airport Highway corridor. The total purchase price was US$ 93.8 million, with an initial payment of US$ 46.9 million and two-year seller financing for the remaining amount, providing flexibility in capital deployment.
This strategic site — adjacent to Monterrey International Airport and the Nuevo León Research and Technology Innovation Park — offers exceptional connectivity and access to a skilled workforce. The acquisition secures nearly all the land required to advance Vesta’s Route 2030 expansion plan, which aims to grow its portfolio through sustainable and high-quality industrial developments across Mexico.
Shareholder Returns and Dividend Distribution
Vesta remains committed to delivering consistent value to its shareholders. During the third quarter, the company paid US$ 17.4 million in dividends (equivalent to MXN 0.3751 per ordinary share) on October 15, 2025. This reflects Vesta’s strong cash generation capacity and disciplined capital allocation policy.
Detailed Financial Performance
- Total revenues for Q3 2025 reached US$ 72.4 million, a 13.7% increase YoY, driven by new revenue-generating contracts and favorable inflation adjustments totaling US$ 1.9 million.
- Total revenues excluding energy grew 14.5% YoY to US$ 69.9 million, supported by US$ 7.8 million in new leasing income.
- Adjusted NOI increased 14.7% to US$ 66.1 million, compared to US$ 57.6 million in Q3 2024.
- Adjusted EBITDA rose 15.0% to US$ 59.7 million, reflecting operational efficiency and expense control.
- Adjusted EBITDA margin improved by 34 basis points to 85.3%, supported by higher rental income and lower administrative expenses as a percentage of revenue.
After-tax FFO rose to US$ 41.5 million, compared to US$ 35.2 million in Q3 2024. FFO per share after tax increased 21.7% YoY, reaching US$ 0.0484, mainly due to stronger EBITDA performance and a reduced share count.
Total comprehensive income was US$ 27.6 million, compared to US$ 43.4 million in Q3 2024. The decline reflects lower revaluation gains and higher taxes during the quarter, though operational profits remained strong.
Portfolio Value and Market Position
As of September 30, 2025, Vesta’s total investment property portfolio was valued at US$ 3.9 billion, marking a 5.9% increase compared to US$ 3.7 billion at the end of 2024. This growth was driven by new property developments, acquisitions, and increased market valuations across key logistics corridors.
Vesta continues to focus on high-demand regions such as Monterrey, Guadalajara, Querétaro, and Ciudad Juárez — areas that are attracting global manufacturing and logistics tenants amid Mexico’s nearshoring boom. The company’s modern, sustainable industrial parks are designed to meet evolving tenant needs in electronics, automotive, aerospace, and e-commerce industries.
