Corporación Inmobiliaria Vesta, S.A.B. de C.V. (VTMX) Earnings

Management highlights

### Overall Strategic Performance - Vesta delivered a strong second quarter 2026, marking clear progress on the execution of its Route 2030 long-term strategy - The company is positioned to create value through organic development, differentiating it from peers focused on M&A and portfolio consolidation - Demand is driven by enduring structural trends: North American supply chain integration, nearshoring growth, rising U.S.-Mexico trade flows, and increasing demand from high-value industries ### Leasing and Occupancy Performance - Total second quarter leasing activity reached 2.4 million square feet, consisting of 900,000 square feet in new leases with new tenants and 1.5 million square feet in renewals - Renewals had a weighted average lease term of approximately 7 years and a quarterly rental spread of nearly 17%, demonstrating strong tenant commitment - Overall portfolio occupancy reached 91.7% at quarter end, a 200 basis point improvement from 89.7% in the first quarter of 2026; stabilized occupancy hit 93.7%, and same-store occupancy was 95% - Regional occupancy: over 80% in Monterrey, 100% in both Mexico City and the Central Southeast region - Trailing 12-month weighted average rental spread on renewals and releasing was 10.3%, with particularly strong mark-to-market increases in northern markets, reflecting continued pricing power for high-quality, well-located assets ### Sector and Demand Trends - Demand is increasingly concentrated in high-value sectors: light manufacturing, electronics, AI-related infrastructure, logistics, aerospace, and automotive - Growing demand for industrial space supporting data centers and AI operations, including components, cooling systems, power infrastructure, and specialized manufacturing; this trend is accelerating with broader AI adoption - Tenants consistently prioritize high-quality buildings with strong infrastructure, reliable energy access, good location, and experienced operators, even in markets with elevated overall vacancy; Vesta's portfolio is well-positioned for this 'flight to quality' dynamic ### Development and Capital Activity - As of quarter end, Vesta had 1.8 million square feet under construction, representing an estimated total investment of $162 million, with projects in Tijuana, Ciudad Juarez, Guadalajara, Querétaro, and Mexico City - The company maintains a 23 million square foot secured land bank to support flexible, phased growth and efficient capital allocation - A follow-on equity offering completed earlier in 2026 strengthened the balance sheet, providing capital to capture visible growth opportunities; gross proceeds from the offering were nearly $270 million - In the second half of 2026, the company plans to make significant infrastructure investments on land acquired in 2025, primarily in Monterrey, Guadalajara, and Ciudad Juarez, to prepare for future growth and respond to a strong tenant pipeline - New construction will begin in Monterrey, Guadalajara, and select northern markets as demand materializes, maintaining a disciplined approach to development activation only in markets with strong tenant interest - A cash dividend of $0.38 per ordinary share was paid post-quarter end on July 15, 2026 ### Macroeconomic and Trade Context - As of the second quarter, USMCA remains in full force; even without a formal near-term extension, Mexico remains highly competitive for companies seeking resilient North American supply chains - Per U.S. Census data, Mexico was the United States' largest goods trading partner in May 2026, accounting for 17.4% of U.S. goods imports compared to 7.5% for China, reflecting a major structural shift in trade flows

Guidance

- Management maintains its original full-year 2026 guidance, noting that while first half results are tracking ahead of original expectations, second half 2026 results will be compared to a strong second half 2025 when market activity began picking up - Management is optimistic about continued strong performance in the second half, but is waiting for additional data to confirm any potential upward revision - Rental pricing is expected to remain firm, with continued strong leasing spreads supported by ongoing demand for high-quality industrial assets - The company expects to invest at a pace of approximately $300 million per year to execute its Route 2030 growth plan, with the ~$300 million in recent equity proceeds supplemented by debt and retained earnings for total planned investments of $1.3 billion across key projects in Monterrey, Guadalajara, Mexico City, Tijuana, and Ciudad Juarez - No specific timeline for full capital deployment was provided, but infrastructure investments and new construction will move forward in the second half of 2026

Segment performance

Vesta reports consolidated financial performance for its industrial real estate portfolio as a single business segment, with no separate product segment breakdowns provided. Second quarter 2026 results (all USD): - Total revenue: $78.5 million, up 16.7% year-over-year - Rental revenue excluding energy: $76 million, up 16.2% year-over-year, with 89.3% of rental revenue denominated in U.S. dollars - Adjusted net operating income (NOI): $71.5 million, up 15.6% year-over-year, with an adjusted NOI margin of 94% (down 51 basis points year-over-year) - Adjusted EBITDA: $63.6 million, up 15.7% year-over-year, with an adjusted EBITDA margin of 83.7% (down 41 basis points year-over-year) - Funds From Operations (FFO) excluding current tax: $46.1 million, up 6.8% year-over-year - Pre-tax income: $98.8 million, up from $54.5 million year-over-year, driven by higher investment property revaluation gains, interest income, and other income, partially offset by higher interest expense - Balance sheet: $404 million in cash and cash equivalents, total debt of $1.2 billion, net debt to EBITDA of 3.1x, and loan-to-value ratio of 24.3%

Risks & headwinds

- Uncertainty remains around ongoing USMCA negotiations and future trade rules; unclear near-term outcomes may cause some companies to delay investment decisions, and potential new tariffs could impact sector demand - Ongoing global trade uncertainty and geopolitical tensions (including recent tensions in the Middle East) create macroeconomic volatility that could affect tenant investment plans - Elevated overall vacancy in some regional markets (such as Tijuana and San Luis Potosi) requires selective underwriting of new development; San Luis Potosi has seen particularly soft demand to date - Rising energy prices (including recent oil price volatility) could push up construction costs, particularly for cement which is energy-intensive - Mixed signals in the broader Mexican economy, with softness in some consumption sectors, could indirectly impact industrial demand dynamics

Analyst Q&A

• Q: What is the nature of AI/electronics sector demand in key markets like Guadalajara and Ciudad Juarez, and what is your outlook for automotive sector demand amid reports of production shifting back to the U.S.? /

  A: AI-driven growth has created strong demand for both data centers and the supporting industrial manufacturing that serves them, including server components, cooling equipment, and electrical infrastructure. Demand is growing rapidly across Guadalajara, Ciudad Juarez, Tijuana, and Monterrey, with a robust pipeline of both existing and new tenant inquiries. Vesta continues to see healthy automotive sector demand; existing supply chains are adapting to new North American trade requirements, and Mexico remains the most competitive location for automotive manufacturing integration, leading to ongoing new leasing activity for the company.

• Q: Will ongoing USMCA uncertainty dampen tenant demand, why is San Luis Potosi soft, and is the 17% quarterly leasing spread sustainable? /

  A: Tenants are currently waiting for more clarity on new trade rules, but even under annual continuing implementation (the current status), companies are still moving forward with investments in Mexico, and Mexico will remain the biggest beneficiary of any new trade framework. San Luis Potosi has been slow, but a stronger pipeline has emerged this quarter, rents have held steady, and management expects demand to improve in the second half. The strong leasing spread reflects broad-based demand for high-quality assets; good supply of quality space is constrained, and strong pricing is expected to be sustained.

• Q: What is the expected timeline for lease-up of new developments in Monterrey and Tijuana, and what types of tenants are targeted for northern projects? /

  A: Two of three buildings at Monterrey's Apodaca project were already leased this quarter to AI/data center-related clients, and management expects full lease-up in the second half of 2026. New development at Vesta Parque Monterrey will kick off soon, with demand diversified across e-commerce logistics, AI-related industrial, and third-party logistics. In Tijuana, high overall vacancy is concentrated in low-quality, poorly located submarkets; Vesta focuses on prime submarkets with strong demand from aerospace, electronics, logistics, and medical device tenants.

• Q: What is the allocation plan for recent equity proceeds, and when will capital be deployed? /

  A: The ~$300 million in equity proceeds will fund a portion of Vesta's $1.3 billion planned Route 2030 development investments across Monterrey, Guadalajara, Mexico City, Tijuana, and Ciudad Juarez, with remaining capital coming from debt and retained earnings. The company expects to invest at a historical pace of ~$300 million per year, but no specific 12-month deployment target was provided.