Corporación Inmobiliaria Vesta, S. A. B. de C. V. and Subsidiaries
Condensed Consolidated Interim Financial Statements for the three Months Period Ended March 31, 2024 and 2023 (unaudited)
Corporación Inmobiliaria Vesta, S. A. B. de C. V. and Subsidiaries
Unaudited Condensed Consolidated Interim Financial Statements as of as of March 31, 2024 and 2023 (unaudited)
Table of contents | Page |
Unaudited Condensed Consolidated Interim Statements of Financial Position | 1 |
Unaudited Condensed Consolidated Interim Statements of Profit and Other Comprehensive | |
Income | 2 |
Unaudited Condensed Consolidated Interim Statements of Changes in Stockholders' Equity | 3 |
Unaudited Condensed Consolidated Interim Statements of Cash Flows | 4 |
Notes to Unaudited Condensed Consolidated Interim Financial Statements | 6 |
Corporación Inmobiliaria Vesta, S. A. B. de C. V. and Subsidiaries
Unaudited Condensed Consolidated Interim Statements of Financial Position
As of March 31, 2024 and December 31, 2023 (In US dollars)
Assets | March 31, 2024 | ||||||||||||
Notes | (Unaudited) | December 31, 2023 | |||||||||||
Current assets: | |||||||||||||
Cash, cash equivalents and restricted cash | 5 | $ | 445,061,349 | $ | 501,166,136 | ||||||||
Recoverable taxes | 6 | 32,758,441 | 33,864,821 | ||||||||||
Operating lease receivables | 7 | 14,838,239 | 10,100,832 | ||||||||||
Prepaid expenses and advance payments | 7.vi | 35,766,128 | 21,299,392 | ||||||||||
Total current assets | 528,424,157 | 566,431,181 | |||||||||||
Non-current assets: | |||||||||||||
Investment property | 8 | 3,353,858,113 | 3,212,164,164 | ||||||||||
Office furniture - Net | 2,365,408 | 2,541,990 | |||||||||||
Right-of-use asset - Net of depreciation | 9 | 693,583 | 834,199 | ||||||||||
Security deposits made, restricted cash and others | 10,229,983 | 10,244,759 | |||||||||||
Total non-current assets | 3,367,147,087 | 3,225,785,112 | |||||||||||
Total assets | $ | 3,895,571,244 | $ | 3,792,216,293 | |||||||||
Liabilities and stockholders' equity | |||||||||||||
Current liabilities: | |||||||||||||
Current portion of long-term debt | 10 | $ | 69,688,381 | $ | 69,613,002 | ||||||||
Lease liabilities - short-term | 9 | 606,339 | 607,481 | ||||||||||
Accrued interest | 6,070,395 | 3,148,767 | |||||||||||
Accounts payable | 20,233,994 | 13,188,966 | |||||||||||
Income taxes payable | 4,862,866 | 38,773,726 | |||||||||||
Accrued expenses and taxes | 4,649,514 | 7,078,988 | |||||||||||
Dividends payable | 11.4 | 64,686,486 | 15,155,311 | ||||||||||
Total current liabilities | 170,797,975 | 147,566,241 | |||||||||||
Non-current liabilities: | |||||||||||||
Long-term debt | 10 | 844,723,820 | 845,573,752 | ||||||||||
Lease liabilities - long-term | 9 | 139,564 | 290,170 | ||||||||||
Guarantee deposits received | 25,595,943 | 25,680,958 | |||||||||||
Long-term accounts payable | 7,889,938 | 7,706,450 | |||||||||||
Employee benefits | 1,835,252 | 1,519,790 | |||||||||||
Deferred income taxes | 17 | 296,152,318 | 276,910,507 | ||||||||||
Total non-current liabilities | 1,176,336,835 | 1,157,681,627 | |||||||||||
Total liabilities | 1,347,134,810 | 1,305,247,868 | |||||||||||
Litigation and commitments | 21 | ||||||||||||
Stockholders' equity: | |||||||||||||
Capital stock | 11.1 | 593,977,760 | 591,600,113 | ||||||||||
Additional paid-in capital | 11.3 | 948,599,276 | 934,944,456 | ||||||||||
Retained earnings | 1,049,917,308 | 989,736,218 | |||||||||||
Share-based payments reserve | 19 | (10,153,203) | 3,732,350 | ||||||||||
Foreign currency translation | (33,904,707) | (33,044,712) | |||||||||||
Total stockholders' equity | 2,548,436,434 | 2,486,968,425 | |||||||||||
Total liabilities and stockholders' equity | $ | 3,895,571,244 | $ | 3,792,216,293 | |||||||||
See accompanying notes to unaudited condensed consolidated interim financial statements.
1
Corporación Inmobiliaria Vesta, S. A. B. de C. V. and Subsidiaries
Unaudited Condensed Consolidated Interim Statements of Profit and Other Comprehensive Income
For the Three-month periods ended March 31, 2024, and 2023 (In US dollars)
For the three-month period ended | ||||||||||
March 31, 2024 | March 31, 2023 | |||||||||
Notes | (Unaudited) | (Unaudited) | ||||||||
Revenues: | ||||||||||
Rental income | 12 | $ | 60,176,393 | $ | 49,610,889 | |||||
Management fees | 413,263 | 327,618 | ||||||||
60,589,656 | 49,938,507 | |||||||||
Property operating costs related to | ||||||||||
properties that generated rental income | 13.1 | (3,786,225) | (2,238,569) | |||||||
Property operating costs related to | ||||||||||
properties that did not generate rental | ||||||||||
income | 13.1 | (717,030) | (666,089) | |||||||
General and administrative expenses | 13.2 | (8,556,795) | (8,205,943) | |||||||
Interest income | 5,068,364 | 566,836 | ||||||||
Other income | 14 | 895,669 | 256,351 | |||||||
Other expenses | 15 | (1,110,553) | (330,286) | |||||||
Finance cost | 16 | (10,212,525) | (11,580,977) | |||||||
Exchange gain - Net | 854,082 | 4,602,489 | ||||||||
Gain on sale of investment property | 250,000 | - | ||||||||
Gain on revaluation of investment | ||||||||||
property | 8 | 107,326,025 | 10,759,462 | |||||||
Profit before income taxes | 150,600,668 | 43,101,781 | ||||||||
Income tax expense | 17 | (25,733,091) | 12,224,884 | |||||||
Profit for the period | 124,867,577 | 55,326,665 | ||||||||
Other comprehensive gain - Net of tax: | ||||||||||
Items that may be reclassified | ||||||||||
subsequently to profit and loss: | ||||||||||
- Exchange differences on translating | ||||||||||
other functional currency operations | (859,995) | 3,792,865 | ||||||||
Total other comprehensive | ||||||||||
income | (859,995) | 3,792,865 | ||||||||
Total comprehensive income for the period | $ | 124,007,582 | $ | 59,119,530 | ||||||
Basic earnings per share | 11.5 | $ | 0.1428 | $ | 0.0809 | |||||
Diluted earnings per share | 11.5 | $ | 0.1411 | $ | 0.0797 | |||||
See accompanying notes to unaudited condensed consolidated interim financial statements.
2
Corporación Inmobiliaria Vesta, S. A. B. de C. V. and Subsidiaries
Unaudited Condensed Consolidated Interim
Statements of Changes in Stockholders' Equity
For the Three-month periods ended March 31, 2024, and 2023 (In US dollars)
Foreign | Total | ||||||||||||||||||||||||||||||||
Capital | Additional | Retained | Share-based | currency | stockholders' | ||||||||||||||||||||||||||||
stock | paid-in capital | earnings | payments reserve | translation | equity | ||||||||||||||||||||||||||||
Balances as of January 1, 2023 | $ | 480,623,919 | $ | 460,677,234 | $ | 733,405,748 | $ | 5,984,051 | $ | (40,903,125) | $ | 1,639,787,827 | |||||||||||||||||||||
Dividends declared | - | - | (60,307,043) | - | - | (60,307,043) | |||||||||||||||||||||||||||
Vested shares | 2,204,586 | 8,048,945 | - | (10,253,531) | - | - | |||||||||||||||||||||||||||
Share-based payments | - | - | - | 2,792,918 | - | 2,792,918 | |||||||||||||||||||||||||||
Comprehensive income | - | - | 55,326,665 | - | 3,792,865 | 59,119,530 | |||||||||||||||||||||||||||
Balances as of March31, 2023 | |||||||||||||||||||||||||||||||||
(Unaudited) | $ | 482,828,505 | $ | 468,726,179 | $ | 728,425,370 | $ | (1,476,562) | $ | (37,110,260) | $ | 1,641,393,232 | |||||||||||||||||||||
Balances as of January 1, 2024 | $ | 591,600,113 | $ | 934,944,456 | $ | 989,736,218 | $ | 3,732,350 | $ | (33,044,712) | $ | 2,486,968,425 | |||||||||||||||||||||
Dividends declared | - | - | (64,686,487) | - | - | (64,686,487) | |||||||||||||||||||||||||||
Vested shares | 2,377,647 | 13,654,820 | - | (16,032,466) | - | - | |||||||||||||||||||||||||||
Share-based payments | - | - | - | 2,146,913 | - | 2,146,913 | |||||||||||||||||||||||||||
Comprehensive income | - | - | 124,867,577 | - | (859,995) | 124,007,582 | |||||||||||||||||||||||||||
Balances as of March 31, 2024 | |||||||||||||||||||||||||||||||||
(Unaudited) | $ | 593,977,760 | $ | 948,599,276 | $ | 1,049,917,308 | $ | (10,153,203) | $ | (33,904,707) | $ | 2,548,436,434 | |||||||||||||||||||||
See accompanying notes to unaudited condensed consolidated interim financial statements.
3
Corporación Inmobiliaria Vesta, S. A. B. de C. V. and Subsidiaries
Unaudited Condensed Consolidated Interim Statements of Cash Flows
For the Three-month periods ended March 31, 2024, and 2023 (In US dollars)
March 31, 2024 | March 31, 2023 | ||||||
(Unaudited) | (Unaudited) | ||||||
Cash flows from operating activities: | |||||||
Profit before income taxes | $ | 150,600,668 | $ | 43,101,781 | |||
Adjustments: | |||||||
Depreciation | 187,023 | 222,001 | |||||
Right-of-use asset depreciation | 140,616 | 146,874 | |||||
Gain on revaluation of investment property | (107,326,025) | (10,759,462) | |||||
Unrealized effect of foreign exchange rates | (1,714,077) | (4,602,489) | |||||
Interest income | (5,068,364) | (566,836) | |||||
Interest expense | 9,348,664 | 11,211,746 | |||||
Amortization of debt issuance costs | 863,861 | 369,231 | |||||
Expense recognized in respect of share-based payments | 2,146,914 | 2,792,918 | |||||
Employee benefits and pension costs | 315,462 | - | |||||
Gain on sale of investment property | (250,000) | - | |||||
Working capital adjustments: | |||||||
(Increase) decrease in: | |||||||
Operating lease receivables - Net | (4,737,407) | (3,391,723) | |||||
Recoverable taxes | 1,106,380 | 4,339,883 | |||||
Guarantee deposits paid | (479,854) | 1,512,522 | |||||
Prepaid expenses and other receivables | (14,466,736) | 2,056,570 | |||||
Increase (decrease) in: | |||||||
Accounts payable and client advances | 7,228,516 | 9,012,106 | |||||
Accrued expenses and taxes | (2,429,474) | (1,613,735) | |||||
Guarantee deposits collected | (85,015) | (186,324) | |||||
Interest received | 5,068,364 | 566,836 | |||||
Income taxes paid | (40,402,140) | (22,492,445) | |||||
Net cash generated by operating activities | 47,376 | 31,719,453 | |||||
Cash flows from investing activities: | |||||||
Purchases of investment property | (47,625,125) | (54,236,948) | |||||
Non-tenant Reembursments | 14,367,041 | - | |||||
Sale of investment property | 780,000 | - | |||||
Purchases of office furniture and vehicles | (10,441) | (85,660) | |||||
Net cash used in investing activities | (32,488,525) | (54,322,608) | |||||
Cash flows from financing activities: | |||||||
Interest paid | (6,427,036) | (7,098,240) | |||||
Loans paid | (1,143,784) | (1,183,062) | |||||
Dividends paid | (15,155,312) | (14,358,194) | |||||
Payment of lease liabilities | (151,748) | (181,707) | |||||
Net cash used in financing activities | (22,877,880) | (22,821,203) | |||||
March 31, 2024 | March 31, 2023 | ||||||
(Unaudited) | (Unaudited) | ||||||
Effects of exchange rates changes on cash | (785,758) | 4,490,012 | |||||
4 |
Net decrease in cash, cash equivalents and restricted cash | (56,104,787) | (40,934,346) | |||||
Cash, cash equivalents and restricted cash at the beginning of year | 501,901,448 | 139,882,397 | |||||
Cash, cash equivalents and restricted cash at the end of the period - | |||||||
Note 5 | $ | 445,796,661 | $ | 98,948,051 | |||
See accompanying notes to unaudited condensed consolidated interim financial statements.
5
Corporación Inmobiliaria Vesta, S. A. B. de C. V. and Subsidiaries
Unaudited Notes to Condensed Consolidated Interim Financial Statements
As of March 31, 2024 and December 31, 2023 and for the Three-month periods ended March 31, 2024, and 2023
(In US dollars)
-
General information
Corporación Inmobiliaria Vesta, S. A. B. de C. V. ("Vesta") is an entity incorporated in Mexico. The address of its registered office and principal place of business is Paseo de los Tamarindos 90, 28th floor, Mexico City.
Vesta and subsidiaries (collectively, the "Entity") are engaged in the development, acquisition and operation of industrial buildings and distribution facilities that are rented to corporations in eleven states throughout Mexico. - Application of new and revised International Financial Reporting Standards (IFRS) New and amended IFRS Accounting Standards that are effective for the current period
There are no accounting pronouncements which have become effective from January 1, 2024 that have a significant impact on the Group's interim condensed consolidated financial statements. - Significant accounting policies
-
Basis of preparation
The unaudited condensed consolidated interim financial statements have been prepared on the historical cost basis except for investment properties and financial instruments that are measured at fair value at the end of each reporting period, as explained in the accounting policies below. - Historical cost
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. - Fair value
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Entity takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these unaudited condensed consolidated interim financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of International Financial Reporting Standard ("IFRS") 2, Share-basedPayments.
In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
- Historical cost
-
Basis of preparation
6
- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
- Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
- Level 3 inputs are unobservable inputs for the asset or liability.
-
Going concern
The unaudited condensed consolidated interim financial statements have been prepared by Management assuming that the Entity will continue to operate as a going concern.
- Interim financial condensed statements
The accompanying condensed consolidated interim financial statements as of March 31, 2024 have been prepared in accordance with International Accounting Standard ("IAS") 34, Interim Financial Reporting, and have not been audited. In the opinion of Entity management, all adjustments (consisting mainly of ordinary, recurring adjustments) necessary for a fair presentation of the accompanying condensed consolidated interim financial statements are included. The results of the periods are not necessarily indicative of the results for the full year. These condensed consolidated interim financial statements should be read in conjunction with the audited annual consolidated financial statements of the Entity and their respective notes for the year ended December 31, 2023.
The accounting policies and methods of computation are consistent with the audited consolidated financial statements for the year ended December 31, 2023, except as mentioned in the preceding paragraph. - Segment
The Entity's primary business is the acquisition, development, and management of industrial and distribution center real estate. Vesta manages its operations on an aggregated, single segment basis for purposes of assessing performance and making operating decisions and, accordingly, has only one reporting and operating segment. As of March 31, 2024 and December 31, 2023, all of our assets and operations are derived from assets located within Mexico.
- Critical accounting judgments and key sources of estimation uncertainty
In preparing these interim financial statements, management has made judgements and estimates that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
The significant judgements made by management in applying the Entity's accounting policies and the key sources of estimation uncertainty were the same as those described in the last annual consolidated financial statements. - Cash, cash equivalents and restricted cash
For purposes of the condensed consolidated interim statement of cash flows, cash and cash equivalents include cash on hand and in banks, including restricted cash. Cash and cash equivalents at the end of the reporting period as shown in the condensed consolidated interim statement of cash flows can be reconciled to the related items in the condensed consolidated interim statements of financial position as follows:
7
March 31, 2024 | ||||||
(Unaudited) | December 31, 2023 | |||||
Cash and bank balances | $ | 444,802,321 | $ | 501,093,921 | ||
Restricted cash | 259,028 | 72,215 | ||||
445,061,349 | 501,166,136 | |||||
Non-current restricted cash | 735,312 | 735,312 | ||||
Total | $ | 445,796,661 | $ | 501,901,448 | ||
Restricted cash represents balances held by the Entity that are only available for use under certain conditions pursuant to the loan agreements entered into by the Entity. Such conditions include payment of monthly debt service fee and compliance with certain covenants set forth in the loan agreement. These restrictions are classified according to their restriction period: less than 12 months and over one year, considering the period of time in which such restrictions are fulfilled. Non-current restricted cash was classified within guaranteed deposits made, restricted cash and others in the accompanying consolidated statements of financial position.
Non-cash transactions
Changes in liabilities arising from financing activities not requiring cash relate to a decrease for the amortization of debt issuance costs for $369,230 and $369,231 in the three-month periods ended March 31, 2024 and 2023, respectively. Unpaid dividends are included in Note 11.4. Other non-cash investing activities related to investment properties are included in Note 8.
Additionally, the Entity recognized amortization of opening cost of a credit line for $123,658 and $123,658 in the three-month periods ended March 31, 2024 and 2023, respectively; included in Security deposits made, restricted cash and others balance change.
6. | Recoverable taxes | ||||||
March 31, 2024 | |||||||
(Unaudited) | December 31, 2023 | ||||||
Recoverable value-added tax ("VAT") | $ | 32,758,441 | $ | 33,733,662 | |||
Other receivables | - | 131,159 | |||||
$ | 32,758,441 | $ | 33,864,821 | ||||
7. Operating lease receivables, prepaid expenses and advance payments
i. The aging profile of operating lease receivables as of the dates indicated below are as follows:
March 31, 2024 | ||||||
(Unaudited) | December 31, 2023 | |||||
0-30 days | $ | 12,762,743 | $ | 9,338,540 | ||
30-60 days | 955,685 | 335,498 | ||||
60-90 days | 573,634 | 146,708 | ||||
Over 90 days | 546,177 | 280,086 | ||||
Total | $ | 14,838,239 | $ | 10,100,832 | ||
Pursuant to the lease agreements, rental payments should be received within 30 days following their due date; thereafter the payment is considered past due. As shown in the table above, 86% and 92% of all operating lease receivables are current as of March 31, 2024 and December 31, 2023, respectively.
All rental payments past due are monitored by the Entity; for receivables outstanding from 30 to 90 days, efforts are made to collect payment from the respective client. Operating lease receivables outstanding for more than 30 days but less than 60 days represent 6% and 3% of all operating lease receivables as of March 31, 2024 and December 31, 2023, respectively. Operating lease receivables
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Vesta Real Estate Corporation SAB de CV published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 21:11:12 UTC.