June 28, 2024
International Real Estate Value

Value Investor Insight June 2024

Key takeaways include:

  • Inmobiliaria Vesta has capitalized on global trends post-Covid, with companies rethinking supply chains and moving towards "near-shoring" production.
  • The company has been successful in securing deals with major manufacturers like Foxconn, Tesla, Eaton, and Thyssenkrupp, which is indicative of its growth and appeal.
  • Vesta's strategic focus on logistics warehouses and industrial parks is aligned with the increased demand for manufacturing space close to the U.S. market.
  • Potential risks include the real estate market's tendency for overbuilding and the impact of geopolitical changes, such as the policies of the incoming Mexican President-elect Claudia Sheinbaum.  That said, Quentin is optimistic about the incoming president's understanding of the manufacturing sector's significance to the nation's prosperity.
  • The majority of Vesta's revenue and debt being in U.S. dollars is seen as a protective measure against currency fluctuation risks.
  • Vesta's stock is currently trading at a price that we believe undervalues the company, given its prospects for growth in earnings and net asset value.
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