Corporación Inmobiliaria Vesta S.A.B. de C.V. (VESTA) reported fourth‑quarter 2025 results, posting revenue of $76.4 million, up 17.2 % from $65.2 million in Q4 2024. Earnings per share stood at $0.20, falling short of the consensus estimate of $0.80 by $0.60, a miss of 75 %. The revenue growth was driven by new rental contracts and a favorable inflationary environment, while the earnings miss stemmed from higher current tax expense linked to Mexican peso appreciation and a one‑time interest expense increase.
Adjusted NOI rose 17.1 % to $69.4 million, and adjusted EBITDA climbed 18.2 % to $61.1 million, reflecting stronger rental income and a lower cost mix. However, Vesta FFO after tax fell to $3.4 million from $39.6 million in Q4 2024, largely due to the tax hit. The decline in FFO after tax signals that while operating performance improved, the company’s tax position was adversely affected by currency movements, underscoring the sensitivity of its profitability to exchange rates.
For 2026, Vesta guided 10‑11 % rental revenue growth, with adjusted NOI and EBITDA margins projected at 93.5 % and 83 %, respectively—slightly lower than 2025 margins but still high, indicating confidence in maintaining profitability while managing cost pressures. The guidance reflects management’s view that demand for industrial real estate will remain robust, but margin compression is expected from higher operating costs and the need to invest in sustainability initiatives.
Management highlighted strong operational performance in 2025, noting total revenues of $283.2 million and rental revenues of $273.6 million, exceeding the 10‑11 % guidance range. They emphasized resilience amid a challenging operating environment and the impact of peso appreciation on tax expense.
The results were met with a mixed market reaction. While the EPS miss and revenue shortfall tempered enthusiasm, the strong guidance and high margin outlook, coupled with a clean balance sheet after repaying secured credit facilities, attracted positive sentiment from investors focused on long‑term value.
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