Piero Trotta's questions to Vesta Real Estate Corporation SAB de CV (VTMX) leadership • Q2 2025
Question
Piero Trotta of Citigroup asked about the outlook for Vesta's yield on cost for projects under construction, which stood at 10.8%, and inquired about the current construction cost scenario in Mexico.
Answer
CEO Lorenzo Dominique Berho Carranza affirmed that Vesta maintains attractive double-digit yield on costs, creating a significant spread compared to stabilized asset cap rates. He noted that while construction costs have seen minor adjustments, the development strategy remains highly value-accretive. The primary focus is on managing lease-up periods to ensure return targets are met.