Corporacion Inmobiliaria Vesta, S.A.B de C.V. American Depositary Shares, each representing ten (10) Common Shares

Greetings, ladies and gentlemen. Welcome to the VESTA second quarter 2024 earnings conference call. At this time, all participants are in listen-only mode. A question and answer session will follow today's prepared remarks. And as a reminder, this call is being recorded. It is now my pleasure to introduce your host, Mariana Dominguez, with VESTA's Investors Relations team. Please go ahead.

Good morning everyone and welcome to our second quarter earnings call. Presenting today with me is Lorenzo Dominique Vero, Chief Executive Officer and Juan Sotil, our Chief Financial Officer. The earnings release detailing our second quarter 2024 results was released yesterday after market closed and is available on the company website along with our supplemental package. It's important to note that on today's call, management remarks and answers to your questions may contain forward-looking statements. Forward-looking statements address matters that are subject to risk and uncertainties that may cause actual results to differ. For more information on these risk factors, please review our public filings. VESA assumes no obligations to update any forward-looking statements in the future. Additionally, note that all figures included herein were prepared in accordance with IFRS, which differs in certain significant respects from U.S. GAAP. All information should be read in conjunction with and is qualified and is entirely by reference to our financial statements, including the notes thereto and are stated in U.S. dollars unless otherwise noted. I will now turn the call over to Lorenzo Vero.

Thanks, Mariana. TESTA delivered solid second quarter results, driven by the sustained strength of our high-quality portfolio and great execution by our professional team. Leasing activity reached 2.8 million square feet, 1 million square feet in new leases, nearly half of which were buildings under construction led by the e-commerce and consumer logistics sector as a result of strong demand we're seeing in the market. 1.8 million square feet of our leasing activity was in renewals, and real leasing spread reached 7.1% during the quarter, consistent with last quarter and reflecting stable growth in rent in the overall market with low vacancy levels. We reached 42.5 million square feet of GLA, including buildings under construction, and continue to see portfolio occupancy levels increasing. during the quarter, stabilized occupancy reached a record 97.5%. EFTA's construction pipeline also continues to strengthen, ensuring we meet the demand we're seeing on the market. Our pipeline reached 4.7 million square feet during the quarter, of which 38.6% has been leased to date. Along these lines, 100% of the existing buildings within our Vesta Park Apodaca in Monterrey have been leased by second quarter's end. We also pre-leased a spec building in Monterrey during the quarter and began construction on the only 730,000 square foot large format spec building to have been built in Monterrey to date, anticipating the considerable demand we're seeing in Mexico's largest industrial market. Our business is led by two important drivers. First, Mexico's internal consumption and local and regional market demand. Deloitte estimates Mexico's GDP will grow 2.2% in 2024, then at a 2.1% average rate annually from 2025 to 2030, continuing the country's current macroeconomic direction of the slow and stable growth we've seen post-pandemic. And according to the World Bank, remittances accounted for 4.2% of Mexico's entire GDP in 2023, a number that is certainly higher now. Mexico's purchasing power is therefore strengthening. And new shoring remains an important growth driver for Mexico. Last week, speech ratings appeared Mexico's sovereign rating at triple B minus with a stable outlook. Each cited a prudent macroeconomic policy framework, sound and robust external finances, and steady debt levels. The agency noted that nearshoring could continue to offer future opportunities for the country. Foreign direct investment into Mexico reached over $38 billion from January through May. According to Mexico's economic ministry, a 35% year-on-year increase with the heaviest investment during the period in the manufacturing industry accounting for 21.8 billion, or 56% of FDI. Vesta's second quarter revenues reached $63 million, while adjusted NOI and EBITDA margins were 94.7% and 82.3%, respectively. Vesta FFO reached $37.9 million, a 23.2% year-on-year increase. As our results for the quarter therefore reflect, Vesta is well positioned to capture related opportunities. We're focused on the right markets, Mexico's most strategically relevant manufacturing hubs, and our site remains on the long term. And as I have noted in the past, we're highly selective regarding the markets and projects where we'll continue to invest and grow. I'd like to reiterate Vesta's important differentiators. Our outstanding asset quality is second to none. We have a long track record of leveraging close client relationships to identify unique and accretive opportunities, and a long history of exceptional execution and a deep understanding of industry dynamics and our market's nuances and challenges. Our capital allocation decisions have been and will continue to be measured and prudent. Finally, and importantly, we have proven our success of quickly and nimbly adapting to both react and to anticipate with well-grounded decision making. We'll therefore continue to focus on delivering strong and consistent results with both hands firmly at the helm and the wisdom and confidence built through more than 26 years as Mexico's leading industrial real estate developer. As a final comment, we released our sixth audited Integrated Annual Report during the second quarter, about which we are extremely proud. Please find it on our investor relations site. With that, let me pass our conversation to Juan, and I'll return for some brief closing remarks.