About Vesta Real Estate Corporation
We are a fully-integrated, internally managed real estate company that owns, manages, develops and leases industrial properties in Mexico. We have significant development experience and capabilities, focused on a single real estate segment comprised of industrial parks and industrial buildings in Mexico. With an experienced management team, we strive to achieve excellence in the development of industrial real estate, to generate efficient and sustainable investments. We offer our world-class clients strategic locations across fifteen Mexican states located in the most developed industrial areas, with a growing portfolio of our developments built according to eco-efficient standards. As of March 31, 2023, our portfolio was comprised of 202 buildings with a total gross leasable area, or “GLA,” of 33.7 million square feet (3.1 million square meters), and a stabilized occupancy rate of 96.7%. Our GLA has grown 60.6x since we began operations in 1998, representing a compound annual growth rate, or “CAGR,” of 10.8% since our initial public offering in 2012. Our facilities are located in strategic areas for light-manufacturing and logistics in the Northwest, Northeast, Bajío-North, Bajío-South and Central regions of Mexico. The quality and geographic location of our properties are key to optimizing our clients’ operations, and constitute a crucial link in the regional supply chain. We are a holding company, and our sole assets are our holdings in our subsidiaries. Since our inception in 1998, we have grown from a private to a public company and evolved from a high-growth industrial real estate developer into an industrial real estate asset manager with strong development capabilities, with a high-quality portfolio and an extensive development pipeline. As we continue to evolve, we seek to become a world-class fully integrated industrial real estate company, striving to adhere to the highest standards available worldwide. We believe that over the last five years, we have created value for our shareholders by implementing our “Vision 2020” strategic plan for 2014 to 2019, and since 2019, our “Level 3 Strategy”. We are aiming to maximize growth in Vesta FFO by implementing this strategy, which establishes our expansion and growth strategy for 2019 to 2024, based on five strategic pillars: (i) manage, maintain and broaden our current portfolio, (ii) invest in and/or divest properties for ongoing value creation, (iii) strengthen our balance sheet and expand funding sources and maturities, (iv) strengthen our organization to successfully execute our strategy, and (v) become a category leader in ESG, embedding our sustainability practices throughout our business model. Our profit for each of the three-month periods ended March 31, 2023 and 2022 was US$30.9 million and US$49.4 million, respectively. Our profit for the first quarter of 2023 has decreased 37.5%, as compared to the first quarter of 2022. Our basic earnings per share have decreased 37.2%, as compared to the first quarter of 2022. These decreases in profit and basic earnings per share were primarily attributable to a decrease of US$27.5 million in gain on revaluation of investment property primarily due to market conditions during each quarter, including an increase in discount rates, exit rates and inflation rates, which was offset in part by a US$7.9 million increase in rental income. Vesta FFO per share has increased 22.3%, as compared to the first quarter of 2022. Our total GLA has grown 7.5%, as compared to the first quarter of 2022.
In addition, Adjusted NOI has grown 18.2%, as compared to the first quarter of 2022. --- Our properties provide innovative and customer-tailored real estate solutions to respond to our clients’ specific needs, as well as to adapt to industry trends that we identify in our markets. We selectively develop light-manufacturing and distribution centers through built-to-suit, or “BTS Buildings”, which are tailored to address the specific needs of clients or a particular industry. Our properties allow for modular reconfiguration to address specific client needs, ensuring that a facility can be continuously transformed. Working closely with our clients on the design of these bespoke properties, also allows us to stay abreast of and anticipate industry trends. In addition to tailor-made solutions in proven industrial areas, we also develop “Inventory Buildings,” which are built without a lease signed with a specific customer and are designed in accordance with standard industry specifications. Inventory Buildings provide sufficient space for clients that do not have the time or interest to build BTS Buildings. We adjust our building mix to cater to real estate demands of current and prospective clients by monitoring our clients’ and their sectors’ needs. We believe that we are one of the only fully vertically-integrated and internally managed Mexican industrial real estate companies that owns, manages, develops and leases industrial properties, on a large scale, in Mexico, which we believe differentiates us from our competitors. Our business is focused on developing our industrial properties, seeking to incorporate global quality standards to develop high-specification assets that are comparable with properties in other jurisdictions, with internal processes that minimize delivery times and costs. We focus on the development and management of our properties by outsourcing all construction, design, engineering and project management services and related works to third parties that are both experienced as well as known to us. By using high-quality contractors and service providers with long track-records and awarding contracts through bidding processes, we seek to mitigate contractor risk and foster competition, lowering our costs, increasing the quality of our buildings and providing competitive alternatives for our current and future clients. Our bidding processes are conducted in accordance with procedures that comply with the International Standard ISO 9001-2008, a certification we obtained in 2011 and renewed in 2015. We also obtained the ISO 9001-2015 Standard certification that focuses on risk mitigation. Vesta Real Estate Corporation Paseo de los Tamarindos No. 90, Torre II, Piso 28, Col. Bosques de las Lomas Cuajimalpa, C.P. 05210 Mexico City United Mexican States.
VTMX operates in the Finance, Insurance, And Real Estate | Real Estate | led by CEO Lorenzo Dominique Berho Carranza.
The $2.2B question: What happens when a company this good becomes this expensive?
In the constellation of American capitalism, certain companies shine brighter than others — not because they are inherently more valuable, but because they have positioned themselves at the nexus of forces that shape the economy. Vesta Real Estate Corporation, S.A.B. de C.V. is one such company.
At $2.2B in market capitalization, Vesta Real Estate Corporation, S.A.B. de C.V. (VTMX) currently ranks #155 in our quantitative model, with a composite score of 77.3/100. That places it firmly in "Strong Buy" territory — our highest conviction rating.
But here's the thing about stocks priced for perfection: They leave no room for error.
The Numbers That Matter
Let's start with what's undeniably true. Our 6-factor model gives VTMX the following scores:
| Factor | Score | Weight | Assessment |
|---|---|---|---|
| Quality | 88/100 | 30% | Exceptional |
| Value | 83/100 | 15% | Attractive |
| Momentum | 67/100 | 25% | Steady |
| Investment | 38/100 | 10% | Low |
| Stability | 74/100 | 10% | Solid |
| Short Interest | 49/100 | 10% | Normal |
The quality score of 88/100 is the headline here. It reflects profitability metrics that would make most CFOs weep with envy:
- ROE: 8.8%
- Net Margin: 88.5%
- Gross Margin: 98.7%
These aren't just good numbers. They're the kind of numbers that make VTMX a "must-own" stock for institutional portfolios.
The Bull Case
"If you could design a business in a laboratory, it would look something like VTMX."
The bull case writes itself:
- Quality is persistent. Academic research shows high-quality stocks outperform by 4-6% annually over long periods. VTMX is quality defined.
- Momentum is real. With a momentum score of 67/100, the stock has been recognized by the market — and momentum tends to persist.
- The moat is deep. Companies with these margins don't lose them easily. The competitive position is entrenched.
The Bear Case
But here's what keeps value investors up at night:
- Valuation compression risk. At current levels, the stock is priced for continued perfection. Any stumble — a missed quarter, a competitive threat, a macro slowdown — could compress the multiple from 10.0x to the low 20s. That's a 20-30% decline without anything fundamentally "wrong."
- The crowded trade problem. When everyone owns a stock, who's left to buy? Momentum works until it doesn't.
- Mean reversion. Trees don't grow to the sky. At some point, growth decelerates.
The Valuation Framework
| Scenario | Assumption | Fair Value | Upside/Downside |
|---|---|---|---|
| Bear | Multiple compression to 20x | -20% | Downside |
| Base | Current trajectory continues | +10-15% | Modest upside |
| Bull | Momentum accelerates | +30-40% | Significant upside |
The risk-reward is ... fine. Not exceptional. Not terrible. Just fine.
The Bottom Line
Vesta Real Estate Corporation, S.A.B. de C.V. is exactly what it appears to be: a high-quality business with strong momentum trading at a premium price. Whether that's attractive depends entirely on what kind of investor you are.
For long-term, buy-and-hold investors, VTMX is a core holding. For value investors or short-term traders, look elsewhere.
The company is priced for perfection — and in markets, as in life, perfection is a fragile thing.
⭐⭐⭐⭐⭐ Rating: 5-Star Strong Buy
Score: 77.3/100 | Rank: #155 of 3,571 stocks
Sector: Real Estate
This analysis reflects the views of Blank Capital Research as of February 16, 2026. It is not investment advice. Past performance does not guarantee future results.