Vesta Equity Offering to Fund Growth as New Starts Gain Momentum

Research evidence excerpt

Vesta Equity Offering to Fund Growth as New Starts Gain Momentum

J P M O R G A N Latin America Credit Research

27 July 2026

Neutral

Vesta VESTA

Equity Offering to Fund Growth as New Starts Gain

Momentum

EM Latin America Corporate

Vesta delivered decent 2Q26 results, with double-digit EBITDA growth driven by Research

strong leasing activity and inflation-linked rent escalations, though margins

Ian B Snyder ACcompressed modestly on higher property operating costs and administrative

(1-212) 834-3798

expenses. The defining event of the quarter was the May global equity offering, ian.b.snyder@jpmchase.com

which helped drive cash higher by US$198mm sequentially to US$404mm and net J.P. Morgan Securities LLC

leverage lower to 3.1x (-0.9x sequentially). We view the offering favorably:

financing the growth pipeline with equity rather than incremental debt is consistent

with management's strong track record of disciplined capital allocation and

reduces balance sheet pressure at a time when the company is beginning to convert

its land bank into new starts.

Looking ahead, early signs are encouraging — leasing momentum is building,

demand composition is improving with the AI/data center complex emerging as

the most visible incremental driver, and management noted that companies are

resuming decision-making despite USMCA uncertainty. That said, we remain

cautious on demand accelerating further from here given the absence of a definitive

trade resolution at this point. Importantly, we think the company is well-positioned

for either scenario: if trade uncertainty persists, management retains the flexibility

to pace or delay development starts against its largely secured land bank; if a more

favorable USMCA outcome materializes and demand accelerates, the land bank