Oct 23, 2026 earnings call — Record leasing and raised full-year guidance
Company raised full year 2026 revenue growth guidance to 11.5% to 12.5%.
Revenue $0.1B (est $0.1B) · EPS $1.18 (est $0.30)
Key quotes
"During the quarter, Vestas signed approximately 2.3 million square feet of leases including a record 1.6 million square feet of new leases."
"Following these starts and the delivery of 2 fully buildings, our development pipeline reached approximately 3.3 million square feet under construction."
"We also now expect adjusted NOI and adjusted EBITDA margins to reach 94% and 84%, respectively."
Analyst Q&A 13
AI demand size for industrial space
Q (Juan Tonsay · Bradesco BBI): How large could AI-related demand for industrial space in Mexico become in the next 2–3 years (in GLA)?
A: Management did not give a size estimate in this exchange. They asked the analyst to repeat what he meant about AI-related demand, so no concrete GLA number was provided.
E-commerce last-mile and pipeline impact
Q (Rodolfo Ramos · Bradesco BBI): How will e-commerce last-mile demand evolve long term, and could that make you accelerate your development pipeline if US–Mexico trade deals progress?
A: There is no management answer recorded in this exchange. The transcript shows only the analyst question and no response from management in this block.
Development pipeline and land bank
Q (Goldman Sachs): Do you have preliminary conversations or potential tenants for the spec buildings? And are you buying more land in Mexico City or elsewhere?
A: They said Vesta has been buying land in Monterrey, Juarez, Tijuana, Guadalajara, and Mexico City, including a recent Mexico City acquisition to develop approximately 700 thousand square feet. They develop spec buildings while seeking tenants during construction, feel comfortable with that strategy, and said rents hold and returns can be double digit, about 10% return on costs.
"So we can still make returns in the double digit range, 10% return on costs." — Lorenzo Dominique Berho Carranza (CEO)
City-level leasing, Tijuana recovery
Q (Pablo Ricalde Martinez · Itau): Can you give leasing color by city and say whether Tijuana is recovering and when you expect a recovery?
A: They listed cities where they closed leases this quarter and said many markets are recovering. Specifically, they said Tijuana had new leases in food & beverage and manufacturing, and other markets (San Luis Potosi, Silao, Monterrey, Puebla, Ciudad Juarez) also showed renewed demand.
"Tijuana, with companies in different sectors, 1 of them related to food and beverage and the other 1 related to manufacturing." — Lorenzo Dominique Berho Carranza (CEO)
How you measure development economics
Q (Alejandra Obregon · Morgan Stanley): How do you measure when development economics 'make sense', and which markets look more or less attractive? How does that set the pecking order of your pipeline?
A: No direct management reply is recorded in this exchange; the analyst asked the question but the substantive response appears later in the call. Therefore no concrete metrics or market ranking are given here.
Yield on cost and returns
Q (Morgan Stanley): Has your yield on cost changed versus 2–4 years ago?
A: They said yields on cost remain at double digits and estimated returns around 10% to 11% return on cost. They noted construction costs rose since the pandemic but rents also rose, helping sustain returns, and that leases have annual inflation adjustments which hedge the company versus inflation.
"We estimate returns between 10% to 11% return on cost." — Lorenzo Dominique Berho Carranza (CEO)
Tax / fiscal package impact
Q (JPMorgan): How should we think about the fiscal package and possible reduced deductions — what tax headwind might you face next year?
A: They said the fiscal package has not been approved yet and they are still analyzing it. They see possible implications in monthly payments (temporary advances on the annual tax bill) but said it is unclear whether the annual tax bill will be affected and they will keep investors posted.
"I see implications in the monthly payments, which are temporary advances over our annual tax bill." — Juan Felipe Sottil Achutegui (CFO)
Interest rates effect on cap rates and leases
Q (Andre · Citi): Does the high U.S. 10-year rate change cap rate dynamics for stabilized assets? And can you give more details on recent leases (terms, tenant improvements)?
A: They said cap rates do not move immediately with interest rates and they have not seen major cap rate changes despite volatility. They noted private-market transactions even at sub-6% and emphasized they focus on development yields, which they expect to remain around 10%–11% return on cost.
"We have even seen transactions of some of our peers at sub-6 percent." — Lorenzo Dominique Berho Carranza (CEO)
Auto sector / BMW supplier presence
Q (Alisa Gomez · BCG Patra): You mentioned a BMW-related supplier among new tenants — do you see a recovery in the auto sector or is it limited to a few names?
A: The exchange contains clarification and hearing issues; no clear management answer is recorded here. The question was repeated but the call transcript does not capture a direct, substantive reply in this block.
Clarify audio (follow-up)
Q (Alisa Gomez · BCG Patra): Can you repeat the BMW question more clearly?
A: This exchange only contains the operator requesting the analyst move closer to the device and no management answer; no substantive reply is recorded here.
Repeat: BMW supplier and auto recovery
Q (Alisa Gomez · BCG Patra): Are you seeing broader recovery in the auto sector or just a few names? Any specific names?
A: The transcript shows repeated questioning but no management answer in this block. A substantive answer about the auto sector is not recorded here.
M&A activity in Mexico
Q (Alan Macías · BofA): How is M&A activity in Mexico — is it picking up?
A: No management reply is recorded in this exchange; the analyst asked for color but the transcript does not show a response here.
Spec vs build-to-suit mix
Q (David Soto · Scotiabank): Why keep a pipeline mostly of spec/inventory buildings, and what mix between build-to-suit and spec should we expect over the next 12–24 months?
A: They said Vesta develops both spec buildings and build-to-suit projects and prefers industrial parks that can host both types. They cited strategic land positions, readiness of pads and utilities, and said they expect about one third to one half of projects over the next 12–24 months to be build-to-suit within their parks.
"So, definitely, over the next 12, to 24 months, maybe 1 third to half of the projects will continue to be in the build to suit area inside of our parks." — Lorenzo Dominique Berho Carranza (CEO)