David Soto

David Soto of Scotiabank requested more details on Vesta's marketing efforts and ongoing negotiations for vacant buildings, including the types of tenants interested. He also asked if it's reasonable to assume double-digit leasing spreads could be maintained in 2026 and which regions might achieve this.

Answer

Lorenzo Dominique Berho Carranza, CEO of Vesta, expressed confidence in the pipeline for vacant buildings, citing the quality of Vesta's projects, such as the award-winning Vesta Park Apodaca Building 8. He noted that Vesta's flexible spec buildings can accommodate e-commerce, logistics, and light manufacturing clients in dynamic markets with good labor access and infrastructure. Regarding leasing spreads, Lorenzo affirmed that the upward trend is expected to continue in upcoming years as long-term leases mature, providing opportunities for mark-to-market adjustments across various regions.

David Soto inquired about the marketing efforts and ongoing negotiations for Vesta's vacant buildings, the types of tenants interested, and whether double-digit leasing spreads can be maintained in 2026 and in which regions.

Answer

Lorenzo Dominique Berho Carranza, Vesta's CEO, expressed confidence in leasing vacant buildings due to a strong pipeline, award-winning projects like Vesta Park Apodaca, flexible building designs accommodating various tenants, and competitive costs. He expects upward trends in leasing spreads to continue in 2026 and beyond as long-term leases mature, providing opportunities for mark-to-market adjustments.

David Soto Soto from Scotiabank asked about potential major risks to the development pipeline, such as tariffs or rising material costs. He also requested color on the marketing efforts for buildings pending lease-up in Juarez and Tijuana.

Answer

CEO Lorenzo Dominique Berho Carranza stated he sees no major effects from material costs, as Mexico is well-supplied and Vesta's use of third-party contractors mitigates risk. Regarding marketing, he highlighted Vesta's key differentiator: a vertically integrated model with local presence in each market. He noted that while they use third-party brokers, over 70% of leasing activity last year came from existing clients, underscoring the importance of their focus on high-quality tenants.

David Soto of Scotiabank asked if management sees any potential upside risk to passenger growth resulting from the recent U.S. Department of Transportation (DOT) actions concerning Mexico City's main airport.

Answer

CEO Ricardo Dueñas Espriu responded that the company does not anticipate any major impacts on its operations in the coming months from the U.S. DOT's actions but will continue to monitor the situation closely.