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

Good morning, everyone, and welcome to our review of Vesta's third quarter 2026 earnings results. Presenting today with me are Lorenzo Dominique Berho, our chief executive officer, and Juan Sottil, our chief financial officer. The earnings release detailing our third quarter 2026 results was released yesterday after market close, and it's available on Vesta's IR website, along with our supplemental package. It's important to note that on today's calls, 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. Vesta assumes no obligation to update any forward-looking statements in the future. Additionally, please note that all figures were prepared in accordance with RFRS, which differ 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 is stated in U.S. Dollars unless otherwise noted. I'll now turn the call over to Lorenzo Berho.

Thank you, Fernanda, and good morning to everyone joining us today. I'm extremely pleased with Vesta's results for the third quarter. This was an outstanding quarter for our company, reflecting record new leasing activity, a substantial improvement in portfolio occupancy, strong financial performance, and important progress in the execution of our Route 2030 strategy. Importantly, our performance gives us the confidence to raise our full year 2026 guidance. Last quarter, I spoke about execution being clearly underway. I described how Vesta was converting demand into leases, leases into occupancy, and our land bank into discipline development opportunities. This quarter, we deliver on that commitment. Our results demonstrate that the opportunities we have been discussing throughout the year are translating into signed contracts, higher occupancy, new construction, and growing rental income. And we are accomplishing this while maintaining the financial discipline that has always been central to Vesta's strategy. Let me begin with the broader environment. The third quarter brought encouraging signs that industrial investment decisions in Mexico are gaining momentum. Following a period of caution and adjustment, we are seeing renewed investment in machinery and equipment, accelerating demand tied to electronics and AI-related industries. And companies moving forward with expansion plans despite continued uncertainty surrounding global trade. What is particularly encouraging is that this renewal activity is translating into tangible commitments. And Vesta is directly benefiting from these trends. As I've noted previously, Mexico is particularly well positioned in this environment. Its deep integration with North America, established manufacturing base, and competitive advantages provide a solid foundation for continued investment. While uncertainty surrounding trade negotiations and the USMCA review continues to influence the timing of some investment decisions, we're encouraged by the progress in discussions and, importantly, by what our customers are doing. Companies are continuing to invest, expand, and make long-term commitments in Mexico. Recent US trade data reinforces this point. According to U.S. Census Bureau figures, U.S. imports from Mexico reached approximately $60.6 billion in August, a record level, with Mexico accounting for approximately 18% of total U.S. goods imports. We're also encouraged by signs of recovery in investment in machinery and equipment following a period of slower activity. This is an important indicator because investment in productive capacity can translate into future demand for manufacturing and logistic facilities. Together with the expansion of electronics-related trade and the continued regionalization of supply chains, these trends reinforce our confidence in Mexico's industrial competitiveness. Mexican electronics exports have increased approximately 2.5 times from 2024 to 2026. reflecting the country's growing role in supplying the technology and digital infrastructure industries. At the same time, we are witnessing a significant transformation in the industry's driving demand for industrial space. Investment associated with artificial intelligence and digital infrastructure is creating new requirements across the manufacturing supply chain. As we have discussed on previous calls, the opportunity extends well beyond the data centers themselves. It includes the production and distribution of electronics, servers, electrical equipment, cooling systems, components, and other products required to develop and operate digital infrastructure. We're seeing how these requirements are translating into opportunities for industrial real estate in Mexico. alongside continued activity from automotive, logistics, e-commerce, food and beverage, and other established sectors. For Vesta, the significance is clear. As manufacturing and supply chains become more sophisticated, customers increasingly require high quality buildings with reliable energy, strong infrastructure, access to labor, and connectivity to critical logistics corridors. These are precisely the characteristics we prioritize in our portfolio and development strategy. And our third quarter leasing results provide compelling evidence that this approach is working. During the quarter, Vesta signed approximately 2.3 million square feet of leases, including a record 1.6 million square feet of new leases. This was an exceptional level of new leasing activity, Involving customers across electronics, e-commerce, logistics, automotive and consumer goods. What is particularly encouraging is the diversity of these transactions. We are seeing demand across different industries and regions, from multinational companies expanding established operations to other businesses investing in their growth in Mexico. We are particularly pleased to see established clients such as BMW, DSV Logistics, and Mercado Libre continue to grow with Vesta. These relationships demonstrate the value of our customer-focused operating model, while the diversity of activity across industries and geographies reinforces the resilience of our portfolio. This is an important part of our strategy, building long-term relationships with high-quality companies while continuously broadening our customer base. Most importantly, these are not simply prospects or expressions of interest. These are customers making decisions, signing long-term leases, and committing to Vesta properties. It's why we have remained confident in our market positioning. Even as broader industrial market conditions have been mixed, our leasing performance translated into a significant improvement in occupancy. Total portfolio occupancy reached 93.9% at quarter end, an increase of 220 basis points from the second quarter. Stabilized occupancy reached 93.9%, while same-store occupancy increased to 95.5%. This is an important milestone reflecting the strength of our commercial execution and our ability to lease high-quality space in strategically selected locations. We also completed approximately 700,000 square feet of lease renewals, with a waiter average lease term of approximately five years. Our trailing 12-month waiter average leasing spread remains strong at 10%, demonstrating the continued value consumers place on our properties. Vesta's competitive advantage is a combination of deep local market knowledge, long-standing customer relationships, an exceptional commercial team, and the ability to deliver high-quality properties in the locations where our customers want to operate. In industrial real estate, it is not enough to be present in an attractive city. Success depends on owning and developing properties in the specific corridors where customers want to operate. And our longstanding focus on these locations is paying off. Let me highlight a few examples from the quarter. In Monterrey, we made substantial progress leasing our existing Vesta Parque Apodaca properties. This progress has supported the next phase of growth at our new Vesta Parque Monterrey. Our success in leasing existing properties has provided a strong foundation for advancing the infrastructure and construction required to serve future customers in this strategic market. In the Bajio, we're also encouraged by leasing activity involving established industrial companies, including BMW in San Luis Potosi. This reflects the continued importance of Mexico within the North American automotive supply chain, while reinforcing the value of our longstanding relationships with multinational customers. Diversifying our customer base across industries is an important element of our approach to managing risk and creating a resilient portfolio. In Guadalajara, we delivered a building ahead of schedule during the third quarter. Together, with a building delivered in Querétaro, both properties were fully occupied upon completion. These deliveries demonstrate our ability to coordinate development and commercial execution while meeting our customers' operational needs. Across Vesta, we're encouraged not only by the amount of leasing achieved, but by the quality of our customers, the diversity of demand, and the improved visibility these contracts provide. And this is what distinguishes our performance from broader market averages. Industrial markets do not necessarily recover at the same pace, and conditions can differ significantly between sub-markets, as I have noted in the past. Let me now turn to development and capital allocation. Strong leasing performance together with our strategic land investments has enabled us to significantly accelerate development. During the third quarter, we initiated approximately 1.9 million square feet of new construction across five inventory buildings, three in Monterrey, one in Ciudad Juarez, and one in Guanajuato. Following these starts and the delivery of two fully occupied buildings, our development pipeline reached approximately 3.3 million square feet under construction, representing an estimated investment of $282.5 million and an expected yield on cost of 10.2%. This represents an important milestone in the execution of Route 2030. We are translating the strategic land positions we secure into infrastructure, new buildings, and opportunities for future rental income. Our most significant development priority is Monterrey, where the successful leasing of our existing Apodaca property has enabled us to advance development at our new Vesta Parque Monterrey. We're also investing in infrastructure and development in Ciudad Juarez, Guadalajara, Mexico City, and other selected markets where we see attractive long-term opportunities. This is a natural progression of our strategy. First, we identify unsecured exceptional locations. We then develop the infrastructure necessary to support our customers' operations and progressively build new capacity as demand materializes. And our approach remains disciplined. We're not developing simply to grow the size of our portfolio. We're focused on projects where the quality of the location, customer requirements, infrastructure, and expected returns support sustainable long-term value creation. Following quarter-end, we also acquired an additional land parcel in Mexico City, comprising approximately 689,000 square feet. This investment further strengthens our development capacity in one of Mexico's most important logistics markets and advances our Route 2030 land requirements Equally important, our growth strategy is supported by a strong and increasingly flexible financial position, as Juan will discuss Together with our successful equity offering earlier this year, these actions have strengthened our ability to fund development, infrastructure, and future growth opportunities while maintaining a prudent balance sheet. We believe this combination of development capabilities and financial discipline is especially important in the current market. From a financial perspective, the third quarter was also very strong, with rental revenue increasing 10.8% year-over-year to $77.5 million. Adjusted NOI increased 10.4% year-over-year to $72.9 million with a 94% margin. Adjusted EBITDA increased 9.2% year-over-year to $65.2 million and an 84.1% margin. Vesta FFO for the quarter, excluding current income tax, total $47.1 million, a 0.7% decrease compared with the third quarter of 2025. These results reflect the contribution from newly leased properties, continued revenue growth, and our focus on operational efficiency. Importantly, this performance has enabled us to raise our financial guidance for 2026. Juan will share these details shortly. We're extremely pleased with our performance and the progress we have made during the first nine months of the year. At the same time, we recognize that the pace of investment decisions and leasing activity can vary from quarter to quarter. Our confidence is grounded in what we have achieved, the quality of our portfolio and the long-term opportunities ahead. As we enter the final months of 2026 and prepare for 2027, we remain focused on sustaining strong operating performance, advancing developments that create value, and maintaining the financial flexibility to respond to attractive opportunities. We have built a company with the assets, customer relationships, expertise, and financial strength to succeed across different market conditions. This quarter demonstrates the effectiveness of the strategy. I would like to recognize our entire Vesta team for their exceptional work and thank our clients for continuing to place their trust in us. With that, let me turn the call over to Juan to discuss our financial results in greater detail.

Thank you, Lorenzo, and good day, everyone. We deliver another strong quarter, continuing the momentum we built since the start of the year. Given this consistent performance, we are raising our full year 2026 guidance as Lauren noted. We now expect revenue growth of 11.5% to 12.5%, up from our prior guidance of 10% to 11%. reflecting higher than expected rental income from properties added this year. We also now expect adjusted NOI and adjusted EBITDA margins to reach 94% and 84% respectively by year end, up from our prior guidance of 93.5% and 83%. Underscoring our continuing focus on expense control and on delivering strong results. Now, let me walk you through our third quarter results. Starting with our top line, total revenues increased 9.9% to $79.6 million, while revenues excluding energy reached $77.5 million, a 10.8% increase year over year. This growth was primarily driven by rental income from new leases and inflationary adjustments across our portfolio. In terms of currency mix, 89.4% of our third quarter 2026 rental revenues were denominated in U.S. dollars, unchanged from the same period last year. Moving to profitability, adjusted NOI increased 10.4% to $72.9 million. Our adjusted NOI margin decreased 33 basis points year-over-year to 94.1%, reflecting higher operating property costs relative to rental revenues in the quarter. Adjusted EBITDA totaled $65.2 million, up 9.2% year-over-year. while the margin contracted 123 basis points to 84.1%, primarily due to higher costs and administrative expenses during the quarter. FFO excluding current tax was relatively flat at $47.1 million in the third quarter. Pre-tax income was $104 million compared to $52.4 million in the third quarter 2025. The increase was primarily due to higher gains on the revaluation of investment properties, higher interest income, and higher other income, partially offset by higher interest expense, higher other expenses, and a foreign exchange loss. Turning to our balance sheet and capital allocation, we ended the quarter with $240 million in cash and cash equivalents and total debt of $1.1 billion. Net debt to EBITDA stood at 3.3 times and our loan-to-value ratio was 22.3%. During the quarter, both Standard & Poor's global ratings and fixed ratings upgraded our long-term issuer credit rating to BBB with a stable outlook, from BBB- with a positive outlook. These upgrades validate the quality of our portfolio and the strength of our balance sheet, and they should support a more efficient cost of capital going forward. Also, aligned with ensuring balance sheet strength, we took decisive steps this quarter to further strengthen our capital structure. We announced a prepayment of $105 million under two private financings, retiring both well ahead of maturity. As a result, we have no significant maturity over the next years, which gives us greater flexibility and allows us to stay focused on growth. Finally, on October 15, we paid a cash dividend for the third quarter equivalent to 37 cents in pesos per ordinary shares. This concludes our third quarter 2026 review. Operator, could you please open the floor for questions?