Hugo Grassi B. Soares's questions to Vesta Real Estate Corporation, S.A.B. de C.V. (VTMX) leadership • Q3 2023
Question
Asked for an explanation of the $13.37 million current tax expense, questioning if it was caused by the strong peso's impact on U.S. dollar-denominated debt.
Answer
The tax expense is driven by two factors: first, the strong appreciation of the peso requires a mark-to-market of their dollar-denominated debt, increasing the tax provision in peso terms. Second, the company is generating higher profits from its core rental revenue operations.