Fitch upgrades Vesta rating to BBB on strong financials

Fitch Ratings has raised the credit rating of Corporacion Inmobilaria Vesta S.A.B. de C.V. to BBB from BBB- on Monday. The firm has also upgraded Vesta's senior unsecured notes to BBB from BBB-. The rating outlook is currently Stable. This upgrade is a testament to Vesta's robust financial position, characterized by strong profitability, a well-structured capital base, and ample liquidity.

The rating also highlights Vesta's status as Mexico's leading industrial real estate company, with a diversified, high-quality asset portfolio and exposure to investment-grade counterparties. The company's properties boast healthy occupancy rates, competitive rent rates per square foot, and solid profitability. Fitch anticipates Vesta to uphold its BBB credit metrics over the rating period, with net leverage staying below 5x, EBITDA margins exceeding 78%, and adequate liquidity.

The company plans to expand its gross leasable area by 28% by 2030, with an estimated 2.4 million square feet of new gross leasable area added each year from 2026 to 2029, accompanied by annual capital expenditures of $260 million. Vesta currently owns 43.3 million square feet of gross leasable area, with an occupancy rate of 91.7% as of June 30, 2026, and a high proportion of hard-currency revenue at 89%.

The portfolio comprises 232 developed properties in Mexico, with the top 10 tenants contributing to 26.3% of the total gross leasable area and 31.6% of the annual base rent. Approximately 88% of the top 10 tenants' gross leasable area is leased to investment-grade companies, and over 85% of all leases have corporate guarantees. The majority of Vesta's cash reserves and debt are denominated in U.S. dollars, with about 89% of the company's rental revenue, most of its cash position, and 100% of its outstanding debt being in U.S. dollars.