Piero Trotta's questions to Vesta Real Estate Corporation, S.A.B. de C.V. (VTMX) leadership • Q2 2025
Question
Piero Trotta of Citigroup questioned the outlook for yield on cost, which stood at 10.8%, and asked for an update on the construction cost scenario in Mexico.
Answer
CEO Lorenzo Dominique Berho Carranza confirmed that Vesta's yield on cost remains attractive at over 10%, representing a significant spread compared to stabilized asset cap rates. He noted that while construction costs have seen minor adjustments, the development approach continues to generate substantial value. The primary focus now, he added, is managing lease-up periods to ensure these returns are met, rather than just the cost of construction.