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

Hello, ladies and gentlemen, please be on standby. We will start shortly. Again, please be on standby and we will start shortly. Thank you. Ladies and gentlemen, please be on standby. We will start shortly. Please be on standby. We will start shortly. Greetings, ladies and gentlemen. Welcome to the Vesta fourth quarter 2025 earnings conference call. All participants are currently in listen-only mode. The 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, Fernanda Bettinger, Vesta's investor relations officer. Please go ahead.

Good morning, everyone, and welcome to our review of the fourth quarter 2025 earnings results. Presenting today with me is Lorenzo Dominique Vero, Chief Executive Officer, and Juan Sotis, our Chief Financial Officer. The earnings release detailing our fourth quarter 2025 results was released yesterday after market close and is available on Vesta's IR 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 titles. Nesta assumes no obligation to update any forward-looking statements in the future. Additionally, note that all figures 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 in its entirety by reference to our financial statements, including the notes thereto and are stated in U.S. dollars or less otherwise notes. I'll now send the call over to Lorenzo Vero.

Good morning, everyone, and thank you for joining us. 2025 was a year of disciplined execution and strategic positioning for Vesta. We strengthened our platform, advanced Route 2030 on schedule, and made decisions which enabled Vesta to capture what we believe will be a powerful demand cycle beginning in 2026 and accelerating into 2027. Early in the year, Uncertainty is low decision-making, but we stay focused on operational discipline. During the year, our conviction to opportunistically dip investors' presence in Mexico's most dynamic markets, specifically Mexico City, Guadalajara, and Monterrey, has proven decisive. The strategic steps we implemented throughout 2025 have materially strengthened Vesta's portfolio and positioned us to outperform. Throughout this transition, our focus did not change. We remain disciplined in capital allocation, selective in development, and stay close to our clients while adapting with agility to capture unique opportunities as market conditions evolve. This defines Vesta. Long-term strategic clarity with the operational flexibility required to perform across cycles. We're not building for one quarter. We're building for the long term. And in 2025, we set our sights on the next cycle. With improved visibility by the end of 2025, we're seeing momentum return, particularly in the second half when leasing activity accelerated. We saw roughly 1.4 million square feet in new leasing during the second half of the year, compared to half a million square feet during the first semester. This reinforces our view that the market has likely reached a turning point. Vesta also delivered solid financial results for the full year 2025, which Juan will touch upon in more detail. We exceeded guidance with rental revenues increasing 11.8% to reach $274 million. while adjusted full-year 2025 NOI margin reached 94.8%, and adjusted EBITDA margin reached 84.4%. Vesta FFO total $174.9 million in 2025, a 9.2% year-on-year increase. Let me share an overview of listing and portfolio fundamentals in 2025. As I noted, leasing activity strengthened substantially in the second half of the year. Full-year leasing activity reached 6.9 million square feet with a weighted average lease term of seven years, which includes 1.9 million square feet in new leases and 5.0 million in lease renewals, representing the highest level of renewals recorded over the last three years. During 2025, renewals and re-leasing activity reached 5.4 million square feet with a trailing 12-month later average leasing spread of 10.8%. Importantly, manufacturing returned with conviction in 2025. 86% of Vesta's new leases were manufacturing related, with electronics leading this activity. I have commented previously that Mexico has overtaken China as the largest exporter of electrical and electronic equipment to the United States. And we are seeing that reflected directly in our leasing pipeline. This represents a notable shift from prior years when e-commerce was the dominant driver. Today, we're benefiting from dual engines of demand. the resilient logistics and e-commerce space, combined with a powerful resurgence in advanced manufacturing. AI-driven infrastructure is becoming an important structural demand driver for Vesta. Data center expansions in the U.S. has translated into real manufacturing demand for related referral equipment. This includes producers of HVAC systems, racking, tabling, and microchip-related assembly. Guadalacara continues to benefit from these structural trends with sustained demand from global manufacturing tenants. Existing clients, including Foxconn, are actively expanding their footprint, reinforcing the market's strategic importance within our portfolio. From a development standpoint, we invested approximately $330 million in projects during the year on a cash flow basis. These investments are directly aligned with our Route 2030 strategy and our focus on high conviction markets where we see sustained absorption. Turning to our fourth quarter results, leasing activity reached 1.9 million square feet, including 770,000 square feet of new leases with both existing and new best attendance across the electronics, aerospace, and automotive sectors. reflecting the improving market dynamics I discussed. Leased renewals, total 1.2 million square feet, with a waiter average lease term of approximately five years. Total portfolio occupancy stood at 89.7% at quarter end, while stabilized and same-store occupancy reached 93.6% and 95% respectively. We began construction on two new buildings during the quarter, one inventory building in Guadalajara, and one built to suit in Querétaro. We ended the quarter with 800,000 square feet under construction, with an estimated investment of approximately $60 million and an expected yield on cost of 9.9%. Let me walk you through leasing momentum and share insights on market dynamics across our regions. Occupancy moderated in certain submarkets due to normal tenant rotation and isolated shutdowns during the year. This is not a structural shift. It's part of the normal rotation of tenants in a dynamic market. Vacancy levels remain healthy, and we're already seeing strong backfill activity, including assets with multiple bidders. The Monterrey market continues to stand out, with leasing momentum building in this high demand market. And we expect a continued increase during 2026. Vesta Parca Podaca, which was completed in the third quarter of this year, is now in active marketing. Three state-of-the-art buildings are drawing strong interest, particularly from advanced manufacturing and logistic tenants. And as a related update, the Vesta Parca Podaca Building 8 was awarded first place in the GRI Global Awards 2025 Industrial and Logistic Project of the Year category. The award is considered one of the global real estate industry's highest distinctions, recognizing the most visionary projects and companies worldwide for excellence in design, sustainability, innovation, and contribution to the urban environment. Also in Monterrey, infrastructure is scheduled to begin in the first half of 2026 on the 330 acres we acquired in the high demand airport highway corridor. as announced in October. Ciudad Juarez reached what we described last quarter as an inflection point. Activity has strengthened. Interest from electronics and supply chain integration tenancy is robust. This market experienced the cyclical adjustments throughout 2025 that I described, but the fundamentals remain intact. Tijuana has stabilized, and we are seeing constructive tenant dialogue, including notable leasing activity with global companies during the third quarter. It's important to mention we continue seeing rents increasing across our markets, supported by discipline supply. Guadalajara remains a structural leader for Vesta, and we're seeing a growing number of high-tech electronics companies seeking large-scale projects. Many are leveraging the strong ecosystem that has developed in the region, including specialized talent, established supply chains, and existing industry clusters. This continued momentum reinforces Guadalajara's position as a leading technology and advanced manufacturing hub in Mexico, often referred to as the Silicon Valley of Mexico. Guadalajara also benefits from the manufacturing support data centers and AI demand, which I have described. Mexico City continues to benefit from its scale, consumption base, and logistics importance. We're actively engaged in discussions with major players, particularly in the logistics sector. Our project in the Vesta Park Punta Norte ramped up to become the largest cross docking operation in Latin America, of all e-commerce players in the region. Turning to capital allocation, in 2025, we secure strategic land positions at attractive terms during periods of market uncertainty in 2025. These acquisitions will support the next four years of Route 2030 execution. We are two years into our six-year Route 2030 plan and are ahead of schedule in terms of capital deployment. That said, Vesta's growth will continue to be prudent and measured. As always, our development base in 2026 will be calibrated carefully to demand and absorption levels in each market. We're clearly optimistic, but we remain disciplined. Protecting long-term returns is not negotiable. Our balance sheet remains strong, liquidity solid, and leverage metrics are trending as expected. In closing, 2025 marked a transition year, while the environment required patience early on. The broader macro backdrop is increasingly constructed as we look toward a renewed acceleration in demand. Mexico's fundamentals remain compelling. According to preliminary data from INEGI, exports grew 7.6% year-over-year to approximately $664.8 billion. marking a second consecutive year in which trade served as a key engine of economic growth. Meanwhile, imports also reached record levels, rising 4.4% to over $664 billion. These figures underscore the scale, depth, and resilience of Mexico's integration within North American supply chains. Despite uncertainty, this integration into North American trade flows supports sustained export momentum into the U.S., validating Mexico's role as a strategic manufacturing and logistics hub. Top-tier global companies continue to view Mexico as a critical platform for serving North American demand. Foreign direct investment and exports reached record levels in 2025, while cumulative foreign direct investment inflows through the third quarter running 10.9% above full-year 2024, reinforcing the structural drivers of growth that underpin Mexico in general and Vesta's market in particular. Setting our Route 2030 strategy in 2024 and executing with precision in 2025 has been fundamental to positioning Vesta for 2026 and beyond. We're beginning to see the benefits of those decisions translate into stronger fundamentals. And we are confident that this momentum will continue to drive growth underpinned by structural tailwinds, reinforcing our confidence in the long-term opportunity ahead. Our optimism is grounded in discipline. Even in the context of high occupancy and solid demand, we remain rigorous in how we allocate capital and underwrite new developments. We are closely monitoring supply pipelines and vacancy trends in each of our core markets. ensuring that growth remains balanced and value accretive. With that, let me pass the conversation to Juan.