Juan Ponce

Juan Ponce asked about the MXN 260 million major maintenance provision recognized this quarter, inquiring if it reflects higher maintenance intensity or just timing shifts, and sought clarification on the full-year expectation of MXN 400 million as a non-cash item.

Answer

CFO Rufino Pérez Pliego confirmed that the provision reflects expected expenditures for the 2026-2030 period and timing changes, reiterating the full-year expectation of MXN 400 million as a non-cash impact.

Juan Ponce asked about the MXN 260 million major maintenance provision recognized this quarter, inquiring if it reflects higher maintenance intensity or just timing shifts, and requested additional color on the change.

Answer

CFO Rufino Pérez Pliego explained that the provision reflects the expected expenditures for the 2026-2030 period, as well as timing changes compared to past assumptions. He confirmed the full-year number is expected to be around MXN 400 million and is a non-cash item.

Juan Ponce from Bradesco BBI inquired about the expected network development at Monterrey airport over the next twelve months, given its significant international traffic growth.

Answer

CFO Ruffo Pérez Pliego responded that while they anticipate new domestic route openings in the second half of the year, international growth may not accelerate as much due to announced airline capacity cuts. The focus will be on consolidating recently launched international routes.

Juan Ponce of Bradesco BBI inquired about the resilience of Vesta's current development pipeline in a scenario where the USMCA review does not reach an agreement in 2026, and specifically asked about confidence in leasing ongoing projects in Guadalajara and Querétaro if trade visibility becomes more limited.

Answer

Lorenzo Dominique Berho Carranza, CEO of Vesta, explained that Mexico's integrated supply chain and strong supplier base, particularly in electronics in Guadalajara and the auto/aerospace sectors in Querétaro, provide resilience against trade uncertainties. He expressed optimism for long-term investments by global companies and a strong leasing pipeline for 2026.

Juan Ponce asked about the resilience of Vesta's development pipeline and confidence in leasing ongoing projects in Guadalajara and Querétaro, particularly if the USMCA review in 2026 leads to limited trade visibility.

Answer

Lorenzo Dominique Berho Carranza, Vesta's CEO, explained that Mexico's integrated supply chain and long-term investments by global companies provide resilience. He expressed optimism for Guadalajara's electronics sector and Querétaro's auto/aerospace sectors, citing strong pipelines and new land acquisitions, expecting 2026 to be a successful leasing year.

Juan Ponce of Bradesco BBI inquired about the progress of Vesta's development pipeline ahead of the USMCA review, considering the rising vacancy rates in northern markets.

Answer

CEO Lorenzo Dominique Berho Carranza acknowledged a slight vacancy increase in markets like Tijuana and Monterrey but noted that rents have held firm and even risen in some cases. He stated that Vesta has carefully selected its development locations, which have key advantages in infrastructure and energy. Berho expressed confidence that once there is more clarity from trade negotiations, pent-up demand will drive leasing activity for Vesta's well-positioned assets.

Juan Ponce of Bradesco BBI inquired about the progress of Vesta's development pipeline in light of the upcoming USMCA review and its potential to unlock pent-up demand, particularly in northern markets experiencing rising vacancy but stable rents.

Answer

CEO Lorenzo Dominique Berho Carranza acknowledged a slight vacancy increase in northern markets but highlighted the surprising resilience of rental rates, which have even increased in some cases. He expressed confidence that greater clarity from USMCA negotiations will stimulate leasing momentum, noting that Vesta's well-located parks with key infrastructure like energy are positioned to capture this future demand.

Juan Ponce of Bradesco BBI questioned the potential impact of the U.S. elections on international traffic to leisure destinations and asked whether recent declines were driven by capacity constraints or a drop in demand.

Answer

Executive Raul Musalem acknowledged a significant decrease in available airline seats for leisure destinations like Los Cabos, Puerto Vallarta, and Montego Bay, which has impacted passenger growth. He clarified that demand and yields remain healthy, suggesting the issue is primarily capacity-driven. Musalem noted it was too early to attribute this to the U.S. elections and highlighted that business and VFR traffic, particularly in Guadalajara, remains strong with double-digit growth.

Juan Ponce asked about the decline in U.S. travel to Mexican destinations and sought clarification on the recovery timeline for the Pratt & Whitney engine issues.

Answer

Adolfo Castro Rivas explained the U.S. traffic decline by comparing it to the 2018 U.S. election year, which saw a similar drop. He also clarified that he expects the negative effects from the Pratt & Whitney engine problems to conclude after the second quarter of 2025.