Vesta

Thank you for standing by. Welcome to VESTA's third quarter 2021 results conference call. At this time, all participants are on a listen-only mode. Following the presentation, we will conduct a question and answer session. Instructions will be provided at that time. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. I'll now turn the call over to your host for today's call, Ms. Fernanda Bettinger. Vesta's Investor Relations Officer. Please go ahead.

Thank you, Rob, and good morning. Welcome to Vesta's conference call to review our third quarter 2021 results. On today's call, we will be Lorenzo Dominique Perot, Chief Executive Officer, Juan Sotil, Chief Financial Officer, and Laura Ramirez, our ESG Director. Our results will were released yesterday afternoon and can be found on the investor relations sector of our website, along with our supplementary package and appropriate filings with the Mexican Stock Exchange. A replay will be available shortly after the conclusion of the call. Certain comments we make during today's discussion may be deemed forward-looking statements within the meaning prescribed by the security laws, including statements related to the future performance of our portfolio financial activities our pipeline, and other investments. All forward-looking statements represent Vesta's judgment as of the date of this conference call and are subject to risk and uncertainties that can cause actual research to differ materially from our current expectations. Investors are urged to carefully review various disclosures made by the company, including other risks and other information disclosed in the company's filing with the Mexican Stock Exchange. Finally, note that all figures included herein were prepared in accordance with IFRS and are stated in nominal US dollars unless otherwise noted. With that, I will now turn the call over to Mr. Vero.

Thank you, Fernanda. Good morning, everyone, and thank you all for joining us. I'd like to begin our commentary by discussing the environment we're seeing in the industrial real estate sector and how some of our key operating metrics have trended for the quarter. Today, we have reached the point where we can confidently say manufacturing has reawakened and Vesta's clients are assertively moving forward and committing to long-term plans. Vesta has hit the ground running in a revitalized market environment, reflected in outstanding third quarter results driven by considerable year-on-year increases in rents occupancy, and leasing activity. Revenue for the third quarter increased 9.4% year-on-year to $41 million with NOI and EBITDA margins, which reached 94% and 83.8% respectively, also reflecting our prudent approach to cost and expense management. Vacancies and availability within Mexico's industrial real estate market have fallen to the lowest levels we have seen in decades, with demand for warehouse and distribution space considerably outpacing supply as manufacturers expanded footprints to supply mostly U.S.-based customers and strive to keep pace with exploding e-commerce sales of consumer goods. We saw the e-commerce trend accelerate during the COVID-19 pandemic and it's clearly here to stay, resulting in demand for larger logistics and warehouse space. The supply chain issues we saw in recent months further underscore the benefits of nearshoring, and businesses are urgently stockpiling inventories to mitigate shipping and delivery risk. What's good for the consumer also translates into a reduction in freight and logistics costs, which improves profitability, and proximity to the North American consumer that yields several benefits and compares favorably to offshore producers, enabling reduced delivery lead times and flight costs while also reducing manufactories' environmental impact. Now, in particular, lead times are critical to the retailer's ability to make sales. Dealers can't complete the sale when the consumer's product is stocked somewhere in a container from Asia. It's important to note that of Vesta's industrial real estate clients in a variety of industry sectors, some have experienced supply chain issues. Our results this quarter are a reflection of clients' results to secure Vesta's high-quality buildings for much-needed space, which is more critical than ever to ensure their success. Vesta's third quarter leasing activity totaled 1.8 million square feet during the third quarter. with one million square feet in new contracts. Leasing activities during the quarter included leading global e-commerce, retail, transport, and logistics, and light manufacturing companies such as O'Reilly Auto Parts, ThyssenKrupp, Cuninego, and Coppell. We also sold the most significant renewals to date for the year to reach more than 800,000 square feet. Vestas Inventory Building in Guadalajara and Tijuana were pre-leased by O'Reilly Auto Parts and Koppel respectively during the third quarter 2021 to become a spec to suit buildings, both of them. The company began construction of three new buildings, totaling 505,000 square feet, including a 78,000 expansion with decent crew and two new inventory buildings. One 200,000 square foot construction in Monterrey and one 220,000 square foot building in Guadalajara As of third quarter 2021, the company's development pipeline reached 1.8 million with an expected 98.8 million investment, 70% of which has already been leased today. We are excited to announce that the second phase of our Vesta Park in Guadalajara is in progress, and during the quarter, we acquired 89 additional adjacent acres in land reserves. ensuring we're well positioned to capitalize on the important demand we're seeing for the highest quality industrial real estate at prime urban locations, which provide coveted last-minute logistics and demonstrate Vesta's ability to penetrate in the most attractive markets in Mexico. Vesta has closed more than 18 new leasing transactions since June, signing more than 3 million square feet in new leases year-to-date. the highest number since 2017. This is a clear sign that today's real estate fundamentals are stronger than ever. Increased occupancy, leasing activity, and rent, and the opportunity we're seeing have enabled us to confidently, upwardly revise our year-end guidance, increasing our revenues guide to above 6%, with an NOI and EBITDA margin increased to 94% and 84%, respectively. We're also focused on ESG-related deliverables, and during the quarter, achieved social investment strategic alliances with Mercado Libre, with PNUD, and others during the quarter. Also, 95% of new construction within Vesta's development pipeline are in the process of LEED certification, fully aligned with our bond commitments. Finally, our annual Vesta Challenge cycling event sponsorship, and registrations resulted in $130,000 directed to 15 local social initiatives related to education, inclusion, and community development in the 12 states where we operate. 500 cyclists and more than 100 employees and partners participated in this year's live Vesta Challenge in Querétaro, which was also an excellent return to normalcy. Looking ahead, we're seeing today's strong real estate fundamentals continue. Vacancies in best-of-market are approaching zero, with clear advantages for our company as a well-established, well-capitalized developer uniquely positioned to capture today's exciting market opportunities. With that, let me pass over the discussion to Juan to review this quarter's financial highlights. Thank you.