Kiepher Kennedy's questions to Vesta Real Estate Corporation SAB de CV (VTMX) leadership • Q4 2024
Question
Kiepher Kennedy of Citibank followed up on projects under construction, asking for specific reasons behind the delay of the Punta Norte project in Valle de Mexico, which appeared to be behind its Q3 expected completion date.
Answer
CEO Lorenzo Dominique Berho Carranza explained that the minor delay at Punta Norte was client-driven. After leasing the larger building to Mercado Libre, the client also took the second building, leading to adjustments as tenant improvements were incorporated during construction. He confirmed the project will be delivered next quarter, fully leased long-term in U.S. dollars at a 10% return, and stated the delay has no material impact on profitability.