My name is Claudia Medina. I am the Head of Communications at Vesta, and apart from giving you a very heartfelt welcome, I'm going to—I want to share that during today's event, we will be making statements related to our business that are forward-looking statements under federal securities laws. As we have a disclaimer at one of the slides, so you can see it later. These statements are not guarantees of future performance. They are subject to a variety of risks and uncertainty. Our actual results could differ materially from the expectations reflected in any forward-looking statements. For a discussion of the material risks and other important factors that could affect our actual results, please refer to the filings with the SEC, as well as the risks and other important factors discussed in today's presentation. Additionally, we will be sharing non-GAAP financial measures today.
This information should be read in conjunction with, and is qualified in its entirety, by reference to our consolidated financial statements, including the notes thereto. A reconciliation of the non-GAAP measures to GAAP measures is provided in the presentation. I want to share with you our agenda. This speaks about the topics our speakers will cover. We are having first the presentation of our highlights and achievements of our previous strategy that is ending this year, Vesta Level 3 Strategy, and its outstanding results. After that, we'll share our strategic vision for the next phase of our growth as we unveil our new strategic plan called Route 2030. You'll hear first from our CEO, Lorenzo Berho, and then you'll hear from other members of our management team as they each provide a deep dive into the key areas relevant to our business and continued success.
Our CFO, Juan Sottil, will close the presentation with our financials. As you see, we're having three blocks of presentation, and then there will be a Q&A section for each of these blocks. So please feel free to take the chance of asking questions both via our webcast platform and in person. We'll start first with the questions of the persons that are attending this room and then our webcast audience. If you would like to ask a question during the Q&A, please submit your question in the Ask a Question text box on the webcast console at any point during the course of the event. After today's event, we'll be sharing a replay on our Investor Relations website along with a slide presentation and transcript. Please silence your phones and enjoy the presentations. First, we're having a video, and then I'll welcome our Chief Executive Officer.
Vesta is leading the change, developing industrial parks and distribution centers across Mexico. With over 25 years of experience shaping the future of industry, it is a driving force, creating the most modern industrial real estate platform in Mexico. Our journey has always been defined by one thing: excellence. From delivering world-class quality to setting the bar higher for operational standards, workforce well-being, and environmental responsibility, we build success with purpose. As the world shifts, so do we. Vesta pioneers nearshoring opportunities, empowering top-tier global companies to expand into Mexico. With a personal touch and deep local expertise, we deliver more than space. We offer partnership and growth. ESG is part of Vesta's DNA, woven into every process, every project. Our commitment to social and environmental actions not only supports our clients but strengthens communities, ensuring that progress is shared and mutual.
Our vision is clear: to deliver unique, premier locations in high barrier-to-entry markets, backed by superior asset management that drives value. With a strong business plan and disciplined execution, our development capabilities give us full control over the real estate cycle, from acquisition to operation. As we embark on Route 2030, our bold strategic vision, we're not just aiming for growth. We're determined to lead the way. We're building a future where every challenge is met with opportunity and every success drives us forward. This is the Vesta way: building a better tomorrow today.
Now we welcome to the stage our Chief Executive Officer, Lorenzo Berho.
Gracias, Claudia. Is this on? Perfect, so I don't need this one. I'll just put it outside. Great. Well, welcome everybody. We are very excited to be sharing today many of the areas where Vesta has been working on. We're incredibly excited, not because we'll be unveiling a new long-term strategy, but we are finalizing also another stage, which basically today that we are presenting a new plan. Reminds me of 2019, summer of 2019, that many of you were present at the Peninsula Hotel when we presented the Level 3 Strategy. We thought it was far away, and we thought it was going to be a long time, and we couldn't wait until be able to present the final results of it, and here we are.
We are excited to be again presenting another stage of the company, clearly a moment where we have seen tremendous evolution in a company, and today we're about to talk about the different areas of the company and the focus on the next items we'll be working on. We will gladly go over and walk you through many of the results and many of the achievements this company has done over the last six years. Welcome again, and thank you for your attendance. The Level 3 Strategy has been well characterized by what we consider the main focus, which was profitability. Back in 2019, we decided to focus our strategy clearly based on growth, but not necessarily having certain milestones in terms of growth.
What we did focus is value, and we kind of shifted the strategy of a company of being more focused towards, you might remember, net asset value per share growth as well as FFO per share growth. Those were our key metrics, and we selected a whole number of different ways to be able to drive growth in net asset value per share as well as FFO per share. But I will walk all of you just through some of the important milestones that we were able to achieve throughout these years. First of all, yes, the company did continue focusing its growth in terms of GLA. We passed from almost 30 million sq ft to what today is 42 million sq ft, basically a 40% growth, but the most growth of the company did not come in terms of GLA.
Our dedicated focus and discipline towards rental revenue, FFO, as well as value creation through net asset value and asset value has enabled the company to grow in more than double throughout this period of time. If you consider other metrics, we have been able to grow particularly FFO as well as net asset value by a CAGR of double digits, even almost at 20%, 18% in terms of FFO of CAGR per annum, as well as net asset value of 16%. These are major achievements, and this is a well-executed result coming from a different array of disciplines, which I will discuss further. We, different from other real estate investment vehicles, set two particular objectives in terms of FFO per share and net asset value per share.
It was quite ambitious, but we thought it was the only way to have the right path going forward and be able to demonstrate that we have a different way to own performance, a different focus on performance. As many of the other investment real estate vehicles in Mexico were mostly focused on yield, we were focused on total return, and we decided to set the targets of $3 of net asset value per share and $0.20 of FFO per share. In terms of net asset value per share, we were able to achieve our target even a couple of years ahead of time, which was an excellent signal that we were on track of delivering strong results.
In terms of FFO per share, even that we were shy of the $0.20, we believe that certain adjustments, particularly our entry into the New York Stock Exchange as well as another follow-on event that we had, was a great enabler to help us have a stronger balance sheet and was worth considering or taking a minor impact on the FFO per share, but knowing that we'll pave the road better for the upcoming future by having a better balance sheet. Clearly, these particular objectives and these particular targets were well executed and were actually well represented throughout the total return of the company in terms of IRR when compared to other major indexes throughout this time. We have been able to deliver outstanding IRRs way above our peers, even understanding that we have overcome major challenging periods of time.
We went over a pandemic, we went over several elections, we went over major supply chain disruptions, and even with that, Vesta has followed and executed well its strategy that we have had a major net asset value per share growth, and share price has actually followed, which was one of the questions at the beginning when we were trading at a major discount to net asset value. Today, what we are seeing is that Vesta has had some periods of time where we have been trading at a discount, sometimes that we have been trading at a premium, but we believe on the medium to long term that eventually the share price will follow what net asset value per share might be, and just using this particular time frame, we can show how this actually happens over time.
But of course, all of these results we have not been able to achieve them if we wouldn't have a strategy and a plan. That's why in 2019, when we presented the Level 3 Strategy, we set very well-defined goals and objectives in order to work throughout these years. We practically have five different pillars where we follow carefully so that we can have the whole company very well aligned in order to be able to meet our overall goals. First, it was to manage and maintain an optimized existing portfolio. Secondly, to have a strong discipline and a strong investment approach. Third was to strengthen our balance sheet, which was one of our main objectives. The fourth pillar was to strengthen the organization, and the fifth one to become a category leader in ESG.
You probably might remember all these five pillars because every time we sit down with analysts, we sit down with investors, we want to make sure that everybody knows what the strategy of the company is. So maybe this is a bit repetitive, but I want to make sure that this has been the way to create value over time. In each of the objectives, we set very clear milestones. This was incredibly helpful not only to send the right message where we want to take the company, but also internally to set the right KPIs internally so that the whole organization can follow through carefully and surpass results and execute in each one of them. I would like to highlight some of the major achievements that we went over these particular six years, and you might remember well. Vesta had a very good position in several industrial markets.
However, we were missing a couple of industrial markets which were performing incredibly strong and where Vesta needed to be in order to be a nationwide platform. So we decided to enter Guadalajara, Monterrey, and Mexico City, as well as to keep our leadership in some of the other markets, including Tijuana, Bajío, Juárez, and other markets. While Vesta was able to successfully enter these regions, being Guadalajara, Monterrey, and Mexico City, 60% of the investment over this period of time, and today we can say that Vesta not only was able to have a presence in these markets, but today we have a leading position in these regions by being able to close the most important transactions recently. Our team, my team, will follow up with some of the examples in each of these regions so that you can further understand our focus in the areas.
Not only were we able to grow in these markets, we have also been very disciplined and worked hard in order to have a better occupancy in the total portfolio. As you can see, we have been able to increase occupancy in the different types of portfolio, same store, stabilized, and total. And even that we know that this is sometimes we get only a picture of it, but it's more about the whole movie. We understand when occupancies are low, when occupancies are at the right time, and we believe in being in the right, we call it in the right places in order to be able to not only have available buildings in place in the markets so that we can anticipate to demand, but also to be able to start with new inventory buildings, particularly when demand keeps strong.
Today, we have been able to surpass in the last 10 years several challenges from having lower occupancies to being in the need of facing the COVID, the pandemic between 2020 and 2021, and also to be able to achieve record high occupancies in all portfolios. We might see in some of the different quarters that we could have some minor adjustments, but overall, we believe that the portfolio is in the best shape we have ever seen, even understanding that we might have some adjustments over time, but that can even give us the advantage that we have the right properties, the right inventory buildings in the right markets to anticipate potential demand, which has been a key advantage for Vesta. Talking still about our portfolio, we wanted to reach out to other regions.
Today, we can say that we have not only grown into other regions, but also we have carefully been able to craft a portfolio so that we can say that it's the best diversified portfolio in Mexico today, having a presence in most of the markets and no market having a major position in the total portfolio. We have no market being more than a third, and we think that is very healthy, particularly understanding that not all the markets behave the same way in the same times, and we think that this can give us the right strength in order to continue growing as long as the markets continue performing well. The same for our portfolio diversification regionally works in terms of our sectoral growth. We have diversified well in terms of industries and sectors.
We wanted to expand our presence in e-commerce and logistics, as you might remember in 2019, and we have also been able to capture other industries such as electronics and other industries so that we can have, again, a more robust, more diversified portfolio and particularly being a player in some of those industries that are growing the most in Mexico. E-commerce and logistics together represent almost 40%, which has expanded from less than 28% back in 2018. And transport equipment manufacturing, which is basically auto industry as well as aerospace, will continue to thrive, but today is, let's say, it's only a third of the portfolio, so we think it's very well balanced, not depending on one particular sector. You know very well who the main clients of Vesta are.
This has actually shifted well positively considering that we have not only been able to grow with some other sectors and some other industries, but players such as Mercado Libre, which is one of the most important companies in Latin America, as well as Foxconn, today are part of the top 10 clients of Vesta, and interestingly, these companies are still growing. We focus on the best companies, and we know that the best companies tend to grow, and that's why we will continue selecting carefully the type of tenants that we have. We'll help them grow, and I'm pretty sure that that particular growth is going to be very helpful now that we also have presence in different markets. Many of these clients have grown in multiple cities and multiple regions too.
But of course, our discipline has also extended to companies that are not currently in the top 10 list, but are very good companies that we believe will continue to grow. These are some of the names of the companies that you know very well that we have in this period of time. We have been able to do one transaction or a couple of transactions, and we're pretty sure that will help us to shape our portfolio in the future in the right way. Our discipline towards investment-grade tenants will continue to be there, and we will continue focusing on the right companies that will grow. In terms of investment, well, we plan to invest in 2019 approximately $600 million. Well, we did easily surpass that number. We invested over $1.1 billion over these particular six years.
But interestingly, the first three years, even considering the pandemic, the company was investing approximately $100 million per year. So we have almost tripled that amount, and that has helped us not only to continue believing in certain markets, but also to be able to get into new markets which have a higher dynamic. Vesta has also strengthened its management team in order to be able to continue delivering, developing in these particular new regions, and by having the opportunity to identify the right pieces of land to acquire, to invest and anticipate on the development time frame, and being able to lease up accordingly in order to continue with the evolution, to continue developing over time. This $1.1 billion have also been invested accretively.
We focus on the development because we believe in spread investment, and we have been able to achieve returns that are way above acquisition cap rates. Just looking at these names of markets and the returns, which are all of them in the double digits, when we compare them with some of the recent transactions we've seen in these markets, this is a strong statement that our strategy will continue to work. As long as we find markets where we can develop at a major spread, we will continue to do so and therefore deliver higher returns and increase the value to our shareholders. Cap rates, we see cap rates still holding in the 6%-7% range, and development yields above 10% gives us the right spread to drive net asset value and FFO per share growth. And lastly is the position that we are today.
The company has evolved from a $2 billion in assets portfolio in 2018, sorry, almost $700 million of debt. We have maintained debt at a low level while improving and increasing materially the value of our assets, which is our investment properties. So we have almost doubled the amount of investment properties while maintaining a low leverage and low debt amount. This has come basically from the follow-on offerings we have done, some asset sales, and also from being able to manage our debt, our leverage ratios low from 35% in 2019 to 22% today, which gives us ample room for growth. This has been a great ride over these six years, and I would like to appreciate and thank you for the trust you have given us and the trust you gave us in 2019 that we were able to execute a successful plan.
Today, I'm happy and honored to say that we have executed very successfully a plan over six years. Unfortunately, it doesn't end up here because we will listen and hear about the next six-year plan, which I know that you are all curious about. So thank you very much for your trust. I would like now Gonzalo Morales to talk a little bit about the business opportunities and outlook that will help us to, I'm sorry, that will help us to pave the road for the next six years. Thank you.
Thank you, Loren. Can you hear me well? Hello everybody. It's a pleasure to be here. My name is Gonzalo Morales, and I've had the pleasure of working with Vesta over the past 10 years or so in consulting strategy projects, one of them being the development of the Level 3 Strategy.
Today, I'm going to talk about the outlook and the opportunities for Vesta. Starting with the basics, I mean, as you all know, the fundamental drivers for industrial GLA demand are on the one side manufacturing exports, which Mexico has a very dynamic, modern, and competitive manufacturing sector, and also consumer goods logistics, which we have also a growing middle class, a growing population, and still an economy that is still in a formalization process. These are two robust drivers for long term that also are experiencing specific trends that we think are very encouraging and are here to stay for a while and are driving sustained growth in the markets.
One of them, of course, nearshoring, which I'm sure you've heard a lot about, but we think it responds to global dynamics that greatly favor Mexico's location and Mexico's export manufacturing sector, and e-commerce, which along with the pandemic, the world changed, and we saw tremendous growth in e-commerce that will also keep driving demand. So if there's something I want you to take from today is that Vesta is standing on very robust long-term drivers that will continue driving demand beyond short-term concerns that we will also address in a moment. If we see the most recent. So if we see what's happening recently in these drivers, Mexican exports that you can see on your left-hand side on the top have been growing significantly higher than in the past.
We like a lot that trend, and we think that is a response to strong growth in many sectors, companies coming into Mexico, but also companies that are in Mexico that are growing faster and in more sectors. E-commerce, obviously, with the COVID pandemic was the largest growth, but it's still growing, and we'll talk a little bit more about that. What I like the most is the graph on your right that shows that the market has been growing in the last three years in terms of GLA stock as much as the previous seven years. Not only that, but all the while rents have been increasingly steadily growing at record levels, which at least I had never seen before. Rents in Mexico were always at $450 per sq ft, and we have seen steady growth across all markets. On average, it's at $7 in Mexico.
So going into exports, manufacturing exports, there are some concerns. We share them, we are sensitive to them, but we think that there are reasons for optimism, and we are optimistic about the future. We think that in terms of the USMCA, there will be the review when the time comes, but the fundamentals are there for continuity and for a strengthened North American manufacturing sector. There are some industries that are even of national security concerns, such as electronics and semiconductor industry. That's one of the industries that has been showing most promising growth. Mexico is a competitive market. Inflation is a key concern in the U.S., and we think that Mexico is part of the equation of controlling and of having a stronger U.S. economy and controlling inflation and having access to competitive manufacturing.
Also on the Mexico side, we think there's positive stance from the new government. There's always concerns or risks when government changes, but we think the messages are positive. They've been very vocal about their support for the USMCA continuity. They've been very vocal about the support for industrial parks. They recognize that Mexico's manufacturing activity is a key driver of our economy, and there's also been good signs in terms of energy. We'll hear a bit more about that from Diego, but there are clear rules to incorporate private investment, and that should also help support Mexico's growth, so a bit of information. Mexico is the largest. The Mexico-U.S. trade relationship is the largest in the world. A few years ago, that was not the case. That was China, so it is a very big relationship, only rivaled by that between Canada and the U.S.
More importantly, it's a relationship that has been growing steadily for many years now. Trade in both directions of the border, this is for all goods, which are mostly manufactured goods, grow both ways and benefit both countries, and we have highly integrated value chains that we think will continue to grow in the future. Last piece of information about Mexico's manufacturing sector, which I think is very important to recognize. Not many years ago, transport equipment was the driver of Mexican exports, and it's really the sector that moved the needle in terms of growth. If you can see, between 2012 and 2019, the most dynamic sector was transport equipment. The largest Vesta clients were in that sector.
The Bajío region was the most dynamic region, and that was all great, obviously, but we had a high dependence as a country and as a sector on that part of the economy. And today, we see encouraging growth in what we call the four key nearshoring industries. Why we call them the four key nearshoring industries? Because these are sectors or industries that represent a large portion of what the U.S. imports from Asia and China, and that they are relevant in this side of the world, but we have ample room to grow the share of Mexico and North America on those sectors. And that's exactly where we're seeing the fastest growth, and we think those are very encouraging signs that nearshoring is here and that it's happening, and in my opinion, will continue to do so. So we have structural advantages over China.
I'm sure you've heard a lot about this. To me, the bottom line is that today, the total landed cost is lower to source from Mexico than from China, even without tariffs. The range is about 12.5%-30%. That is the estimate from BCG Competitiveness Index. And we have a great strategic location. We're still in the same place with access to both oceans, with a large border, with the largest economy in the world. And what do we think will happen in the future? We think we will keep gaining a share in the imports of the U.S. You have here from 2002 to 2024. At the beginning, it was tougher times for Mexico. In the early 2000s, China joined the World Trade Organization, and obviously, they were the driving force of the world.
But Mexico has been quietly, but steadily gaining share in the U.S. imports, and more so in the recent years, and we think that will continue to happen. And as long as that happens, our sector, manufacturing exports, should continue to grow. Approximately, we estimate that for every $1 billion of new exports, there is a new demand for 2.2 million sq ft, and that's fairly steady along the last years. And what does that imply? That we're estimating the market will grow in the next six years about 226 million sq ft. That is in response to a growth in exports of about $110 billion that would come from an assumption that the exports from Mexico to the U.S., sorry, total imports in the U.S. keep growing at around 2%, and we are able to capture 18% of those imports.
So lastly, about e-commerce, also a big, big trend I think is particularly relevant for companies as Vesta because e-commerce, large players are very relevant in e-commerce, and it is no surprise that they are very relevant clients for Vesta. And the key word here is adoption. Essentially, e-commerce demands more retail space to sell the same dollar than traditional retail sales. And the information you see on the screen, on the left-hand side, you have countries with more advanced adoption of e-commerce. This is e-commerce sales as a percentage of total retail sales. And you can see that more advanced economies like USA, China, South Korea have adoption rates of 30%-40%. On the right-hand side, you have countries with earlier adoption. We have Argentina, Chile, Brazil, Mexico. Mexico is the red line.
Currently, we stand at, well, not currently, at the end of 2023, we stood at 11.5%. And obviously, after a period of huge growth during the pandemic, before the pandemic, we were at about 4%. So this has been great news for the industry. And we think it should continue to grow. I mean, it's always hard to predict what will happen in the future, but we see a clear trajectory, and if we compare to similar economies, we think there is ample room for growth, and it's, if at all, conservative to what we're thinking about a 15% penetration in 2030. And what would that translate to? We estimate that that would be equivalent to a growth in total e-commerce sales equivalent to what happened in the last six years. Obviously, in the last six years, we saw a jump from 3.7% to currently 12% of share of e-commerce.
So if we reach 15%, we'll have a period of similar growth in terms of sales, and that would translate to roughly a demand for 36 million sq ft. So to wrap it up, two big drivers, two strong long-term drivers, which are exports to the U.S. We are projecting about $110 billion increase by 2030. We are projecting about a $30 billion growth in e-commerce sales, and we think these drivers will create about 250 million sq ft of demand in the next six years. And a final note on that, perhaps some of that growth will be more in the later years. We'll see how things play out.
If we're cautious, maybe demand will be, or the pace of growth will be a bit slower in the short term, but we are very confident that when the dust settles, we are sitting on very strong fundamentals, and growth will be in the 40-50 million sq ft per year, which is what we've been seeing in the last years. So that would be all from my side, and I will pass it again back to Lorenzo where he will talk to you about the important thing, which is what's next. Thank you.
Gracias, Gonzalo. Okay. Okay, so getting into the next six years. Fortunately, I have my team to help me out. And before getting into Route 2030, I would like to thank again the team for being here.
I think that one of the greatest things of the Vesta Days or Investors Days is that not only are you able to see me or Juan or Fernanda, I think is the ability and the opportunity to be here with different heads of different areas that actually make things happen in the company. We'll talk later about ESG. We'll talk later about energy, commercial efforts, communication, and luckily, you're going to be able to get first-hand information not only to what we will be presenting throughout the slides, but also what you can be, the information you can get throughout the discussions we can have later. Now, what does the next stage of the company look like? First of all, we're happy to be unveiling our new strategic plan. We call it Route 2030. We always like to have names for our strategies and our paths going forward.
Some people say, "Well, if it was level three, just call it level four." We say, "Maybe we can change it. Maybe we can adjust." And we came out with a route that we understand that, like many other routes, there might be circumstances that the ride is going to be easier. In some circumstances, it's going to be a more challenging ride. But in the end, we will get to 2030, and we want to make sure that we have a right path to get there in the best possible way. You might remember the different strategies we held in the last periods. We had the Vesta Vision 2020. I think in 2014, it was the first time we presented a long-term plan, which was basically after we had our IPO and a couple of follow-ons. We wanted to focus on the quality of our portfolio.
The Level 3 Strategy, we just discussed about the main objective of the Level 3 Strategy, which we were able to execute successfully. And now, the Route 2030, the focus will continue to be on profitability. However, we consider that growth will come at a faster pace and will help us and support our growth, particularly in terms of revenues and FFO, where even that we're going to be able to grow from 40 million sq ft to a little bit more than 60 million sq ft, we're going to be able to double revenue again as we did in the past, and we're going to be able to double our FFO, which is going to be a major accomplishment in the next six years. How are we going to get to those numbers?
We have considered, instead of the five pillars that I just briefly discussed, we will focus on two main avenues, and we call these two avenues the avenues for value creation. The first one being the existing portfolio that we have carefully crafted in order to be able to take advantage of value. Today, rough numbers, the portfolio has an estimated value of $3.7 billion, and we think that with certain adjustments that we will discuss briefly, we can have the opportunity to increase value on the existing portfolio. We estimate $600 million for a total portfolio of $4.3 billion. So the first avenue is existing portfolio, which has material upside potential. Secondly, Vesta's unique position to be able to capture value through development, which is quite unique in publicly listed companies in Mexico.
We estimate to invest $1.7 billion throughout these six years, pretty much in line to what we have been doing in the last couple of years to develop 20 million sq ft. 63 million sq ft will be in total in 2030, and we will end up with $1.5 billion in increased value and $6.8 billion of total portfolio. The first avenue of value creation is clearly the existing portfolio. We believe that Vesta is the most modern portfolio there is in current listed markets in Mexico. We have been developing most of it. We have selected the markets we want to enter. We have selected even sometimes the clients we want to have through a disciplined approach, and we have a strong focus on U.S. dollar leases.
Particularly, while many of our peers are making a big effort in order to have a bit more leases, we have almost 90% of our leases in U.S. dollars, which is a natural hedge to our international investors mainly. The locations we have been able to develop have experienced major rent growth. Therefore, we think that a strong rent upside will continue to materialize over this period of time. So for that, we have a dedicated team focusing on the existing portfolio, renewing leases, finding for those vacant buildings still the best clients, and keep the discipline of having long-term leases adjusted to inflation or above inflation in each anniversary, and focusing on the investment-grade companies that will continue to grow through the existing portfolio.
We will show you some examples of the current products we are developing as well as existing portfolio and how we are going to be able to extract value through the portfolio, and secondly is, of course, the development program that we have established. Vesta has been very successful in identifying land, developing inventory buildings, developing the infrastructure, focusing on the energy requirements that our parks require and our potential clients require, and we believe we have an advantage over many other vehicles. We are very well capitalized. We have identified many of these markets, and we think that it is only a matter of being able to continue tapping the potential demand there is in the market coming from either existing clients or new clients entering the country.
We have been able to identify a strong pipeline on land as well as been able to achieve some land acquisitions, and some of them will be discussed by our team, some acquisitions that we have been able to do recently. These two avenues of growth will definitely generate increased revenue, so if we only use this simple example, we can clearly see that there are two ways to deliver major rent growth. Starting from the right-hand side, Vesta is going to be able to get to almost $500 million in total rental revenue coming from the existing $250 million. The current portfolio, we believe, has the potential to add revenue by $68 million annually, and even we think that there could be a potential over the next years to get additional mark-to-market.
We think that this is a major driver of growth and a major driver of value, and we will focus on getting this upside as quick as possible, but particularly, we believe that we will do it, and considering that in certain markets, we are still seeing vacancy rates being incredibly low, we see limited supply in the market, but more importantly, is limited supply where not only the buildings are state-of-the-art, but have energy, and we will discuss about energy and how important it is when it comes to leasing out properties, and we believe we have a major advantage, and of course, another important part is the growth plan, which will represent $170 million once stabilized, and both together will get us to the almost $500 million of rental revenue, so we have a clear path to continue increasing revenue through these two avenues.
Talking about the second avenue, we will continue to develop similarly to what we have done in the past, and we have carefully analyzed our ability to develop in what we can develop in the upcoming years, being very mindful of current situation, being very mindful of each of the market's dynamics. Some of the markets have experienced major net absorption. Many of them are at still record low vacancy rates. Some of them have had its own adjustments, and that's why we have defined a growth plan, which is particularly well-defined in the next upcoming years in the markets where we can start buildings at a quick pace, where we can lease up according to market dynamics, but also considering that eventually over time, we're going to be able to increase our pace if the market permits and if demand gets stronger.
20 million sq ft will be well divided among the different regions that Vesta is currently operating. We estimate that $1.7 billion being still distributed well among the different markets, where we think that by 2030, we will have a total portfolio of 63 million sq ft, being in Tijuana, one of our main markets, 9 million sq ft, 7 million in Juárez, 7 million in Monterrey, Guadalajara, together with a couple of other markets by 13 million, Querétaro in the Bajío 14, and Mexico City and State of Mexico and other sub-markets by 12 million. As previously discussed, we will continue focusing on the largest markets, being Monterrey, Guadalajara, and Mexico City, taking the biggest part of our total investment plan.
Almost 10 million sq ft will be in these three regions, but we're still seeing strong dynamics in other markets like Juárez, Tijuana, Querétaro, and others, where we think that they will continue to see strong demand, strong industrial dynamics, and therefore, we are confident that there will be attractive opportunities in many of these markets where we are already well established. But of course, in order to be able to have a successful strategy and considering these two pillars or these two avenues, we have very important enablers, which are an advantage between us, other vehicles, or even new peers or new competitors trying to enter the market. We already have a strong balance sheet, and we will continue to strengthen it, and I will discuss further. We will talk about energy later.
We think that this is key in order to be able to achieve this type of ambitious growth plans. This is actually one of the main differentiators that a player like us might have. Our ESG dynamics are just part of the discipline that Vesta will continue to foster, and we have a very strong program, which will continue to give us not only an advantage when it comes to developing more - buildings, but also in the capital markets. Our track record of more than 10 years will continue to prove that it's very helpful when it comes to overcome this type or to be able to achieve this type of objectives, and corporate governance and the management team. We think that Vesta has a unique strategy in terms of corporate governance. We have a board and corporate bodies that represent well the interests of your shareholders.
We have not only at the board, we have differentiated ourselves to many peers, not only in Mexico, but even in the U.S., where we have a big portion of independent board members. We have increased diversity through a women part of the board. Also, we have been able to have increased nationalities in the board, which gave us a better perspective on what's happening not only in Mexico, not only in the U.S., but also in other parts of the world, which as of today is playing a more important role. Our diversity in terms of age, length of service, and even the experience of our board members also in other boards. This is incredibly helpful when it comes particularly to making important decisions on the company.
We have different corporate bodies, and I will talk about the investment committee because I think it's going to be key for the growth going forward. The investment committee has been incredibly active in keeping that discipline where to invest, where we do a land acquisition, what are the type of returns we should be focusing on, and we have very experienced real estate and finance experts helping us to shape the strategy going forward in terms of how we want to invest and focus on creative investment opportunities, but of course, the corporate practice committee being in the New York Stock Exchange has been a major achievement for the company, a major milestone, but requires also more robust corporate governance, audit committees, ethics committees, debt and capital committees, as well as ESG. We are incredibly active in the company.
We think we're a reference to other companies in Latin America, and we can even say that we are even a reference to some companies in North America, particularly in the U.S. But of course, our local leadership is still going to be unique. We have had presence for many years in these particular markets: Adrián Eguia in Tijuana, Mario Chacón, who is here today with us as Chief Commercial Officer in Juárez and Monterrey, Adalberto Ortega, Guadalajara, Francisco Estrada in Querétaro, and Juan Carlos Cueto also today in Mexico City. This is only to give you a reference how well present we are in many of these markets, which many of you have already been able to visit. But on the corporate side, we have a strong team in commercial asset management, construction, finance, investment. This is a very robust team.
This doesn't happen from one day to the other. This takes time, and we can only say that today, Vesta has the most professional team there is in the sector. How is Vesta going to look like in 2030? Again, we're going to be able to achieve 50% growth in terms of GLA. We will double in terms of revenue as well as FFO, which is a material change or pretty much the same pace as we have done in the past. We will continue to increase asset value and, of course, continue focusing on net asset value growth. This is a graph that many of you remember, which represents well the main objectives of Vesta. Vesta, again, will not focus on yield. We'll focus on total return. How do we achieve total return? By being able to grow FFO per share as well as net asset value per share.
This is what we have done in the past. So again, today, we are selecting these two particular metrics for our Route 2030 to be able to target $0.30 of FFO per share by 2030, as well as $5 of net asset value per share growth. This is helpful so that we can communicate where we're heading, where we're taking the company going forward, but also internally, every decision we make, every transaction, every action has to have a positive impact, either in FFO per share as well as net asset value per share.
Before jumping into questions- and- answers, and I think, Gonzalo, maybe you're going to be able to join me here today, I think that it's also important to say that this is clearly a strong base scenario that Vesta has, using our expertise, using our track record, understanding the market dynamics. But of course, today, there might be many questions on tariffs, on USMCA, on what will happen with China, on what will happen with even the political situation in Mexico. And we understand that there could be potentially many scenarios. However, we think that Vesta has shown discipline in the past. Vesta has shown resilience. We know that things might need to adjust in time, but Vesta has the ability to adjust when needed. Vesta has shown resilience. Vesta has shown its robustness when it comes to making the right decisions.
And for that reason, we think that we're better positioned than ever. We understand the challenges will be ahead of us, but we're going to be able to overcome different challenges. And actually, in 2030, I'll be standing here and give you fantastic results. So thank you.
Thank you, Gonzalo and Lorenzo. Now we will open the floor for questions. If you have a question, please raise your hand. Pablo.
Hi, thank you. Pablo from Barclays. I have two questions, Loren. One is that if my math is correct, you are assuming that probably you're going to spend like $80 per sq ft in your development pace. How is that your land bank is going to be used? Because at $80 per sq ft, I think you are putting also land cost there. So I wanted to see how much of that is already incorporated. That's the number one.
My second question is about your rent increase. What are you doing differently to see that catch-up in rents? And why are you expecting that rent to happen if you have properties in el Bajío? And to what part of that increase is going to be in that area? Thanks.
Perfect. Gracias, Pablo. Yes, we expect to invest $1.7 billion in the next six years. In some cases, we already own the land, but actually, we're going to be buying land in the near future. I think that Juan will present sources and uses for the whole plan, but I think that out of the $1.7 billion, maybe in the next six years, we might require approximately $300 million of land acquisitions, which we have already identified.
Maybe the number is not exact, but the point is that we will continue to buy land in the markets that we currently do not own. The reason in some markets that we do not own is because we have developed all the land that we have. But clearly, as we have defined the markets where we want to be, in some of these markets, we will continue to buy land, which is part of the total calculation. We currently have like $110 million of land. It's not a very big number, so that's why the most important number is from land that we're going to be able to buy in this period of time. In terms of rent increase, yes, we have seen major rent growth in all of the markets in Mexico.
Mario will give you some more detail on where we're standing today in terms of rent growth. But more importantly, we think that there will continue to be rent growth in some markets that have lacked the rent increases as some more mature markets like Mexico City, Monterrey, which have experienced major rent growth. We know that there's going to be some adjustments in some of these markets. We think that some markets like Bajío could be representing between 10%-20% rent growth in the next few years. That is quite significant. That's coming mostly from a stronger pipeline that we're seeing in terms of demand and limited supply. That immediately has an impact on rent increases.
So the challenge is now to be able to get the mark-to-market on the existing portfolio as well as to expect that market rents will continue to increase in some of these markets. Yes, I think that together with the rent increase question, together with Bajío was kind of explained, Pablo. Gracias.
Perfect. Jorel.
Thank you, Jorel Guilloty from Goldman Sachs. I have two questions, kind of follow-ups from what Pablo asked. So just digging a little bit deeper, and maybe I'm just jumping ahead from Juan's presentation, but the $1.7 billion, how is that split between debt, equity, and cash flow?
He'll give you a detail.
Okay, great. So I'll wait till Juan. Looking forward to it. And so the other part is just digging into the contract structure. Is that changing in any way?
Because I know that you have renewals on your contracts, and then those go at basically the same rent. So as you build out and you expand on the Route 2030, could we see that changing where you go to five years and then automatic mark-to-market, or just basically, will you change your contract structure?
Good. That's a good question. Well, it's not necessarily major adjustments. I think that there are certain adjustments that are kind of helpful, as you just mentioned, sometimes having the ability to mark-to-market. But I think that the main objective of Vesta is to continue to have great tenants and have long-term leases in U.S. dollars that are going to be adjusted to every anniversary, sometimes inflation, sometimes even higher than inflation.
I think that will, in general terms, that will continue to be the same case if there is a possibility to have certain clauses in the contract where we can jump in case the market rents increase too much. We try to achieve those, but not necessarily has been a major change in the contract, and those types of clauses are more based on market dynamics, so I think that in general terms, we will continue to have the same focus on long-term leases.
Thank you.
Perfect. Anton, yes.
Hi, Lorenzo. Thank you. Anton Mortenkotter from GBM. I mean, if I'm right, I think the number you're expecting for next year, at least in terms of GLA, I mean, CapEx is going as expected, but in terms of GLA, it's slightly slower from the previous expectations we had.
So I was just trying to understand, does this attend to maybe a different strategic approach towards where you are developing some of the properties? Maybe you change a little bit your focus from the north to some Bajío, or is there any relevant change on that? And the other question will be, which do you think is the biggest risk that exists going ahead for your development program?
Sure. Well, I mean, it doesn't change materially. I think that what we just wanted to illustrate is that we feel more certain in the long term in terms of development pace. These numbers are not necessarily each year until 2030 very precise, but we understand how the next coming years might look like, and we just want to take a more conservative approach considering that there will be some uncertainty, particularly next year.
But still, we know that there is major demand, and we have a strong pipeline, and we will continue to see some growth. So the plan, I think that it's more to focus on the long term without the necessity of focusing too much, particularly on the short term. But being able to develop four million sq ft in the later stage of the plan, we think it's something more doable. However, if things improve and we need to develop more, we will continue to be active. As you might remember, we start a building, it takes some time, we lease it up, then we try to start another one, and it's kind of a cycle. So if that cycle kind of gets faster than expected, we can address that particular pace, as we have also done in the past.
But we rather go the other way around, which is just lay a plan, and if things go well, you can increase it later on. So that's why even the model looks a little bit more that way.
Gordon. Hi, Gordon from BTG Pactual.
Well, thanks very much for the invitation. Two quick questions, Lorenzo. The first is, given your geographic mix is very different from what it was, or somewhat different from what it was 10 years ago, and if you look at your projected CapEx, it's going to shift a little bit more. Is it still reasonable to expect Vesta to develop at 10% yields on cost, or is that changing, just given the different geographic focus and what's happened to land prices and materials prices?
The second question is, I'm curious, if we had held this event in May before the Mexican election, before last month's election in the U.S., how different would these numbers have been? Or maybe put differently, how has your view on the outlook changed in the past six months?
Great. So to your first question, I think, Gordon, we have been, yes, we will continue to focus on development, and clearly our geographic footprint has changed. Today, we might see each other more often in New York and Monterrey and Guadalajara than even in Mexico City or the Bajío. But it's part of the plan to be more on those markets which are more dynamic, more robust, and I think that's exactly what we want to keep on achieving. And returns, fortunately, rents have increased a lot.
That's helpful when it comes to buying the right land, even at a higher price. The examples of Monterrey and Guadalajara where we acquired land, which we thought, well, we're paying a little bit more, but it's the right land, I think that approach will continue to be there. 10% returns we have been able to achieve in the last years. I think this question was raised three, four years ago, and returns have been quite well. We feel very comfortable, particularly knowing that cap rates are stabilized cap rates are low. I mean, we just saw some cap rates in the 6.5% range, but some cap rates have been in the 6%. If interest rates drop, there will continue to be spread. Another way to see it is that we'll focus on spread.
If it's a 9.5%-6.5%, it's great if it's in a great market. If we can make returns above 10%, which we have been able to do recently, 11% even, fantastic. So I think the discipline of the company in terms of investment is here to stay. And the spreads are a result of that particular discipline. Well, I think our view, like all of you, has changed from May to today. So I think that we just have to be humble enough to recognize that things will change. How are they going? Where are they going? We'll have to figure out, and we have to be open enough to adjust when necessary. And even my view today and in a couple of years from today might change too.
But in the end, I think that it's not about, I think that we'll have to be careful on understanding that there has to be a long-term goal, long-term plan. We'll have to make adjustments over time in the midterm. But understanding that in this particular moment, there are several things happening, and it's fair. And I think that Vesta, in that regard, will probably take a more conservative approach when needed, and I think that's what you want us to do so. But yeah, definitely, I think our views are a bit different.
Yes. Rodolfo.
Thank you. Perfect. Rodolfo Ramos, Bradesco BBI. Looking at the 10-year projection or historical background that you showed on occupancy, it's clear that you see an upward trend.
When you think about the properties that you're having coming online, of course, all of this volatility around U.S. election and all these concerns, how bad do you think things can get in the short term in terms of that occupancy, given those commercial discussions that you're having? I don't know if you can put it like as a floor or just on the short term, how much pain could we see given all this volatility that we've seen in the market?
Sure. Well, I think that, I mean, currently, we're at very attractive levels in terms of occupancy. And that's why it was important to show the slide, because I think that Vesta has been much lower occupancy levels. And frankly, it didn't have a major impact. Why? Because eventually, over time, good quality assets get leased up.
When you have a good tenant base who constantly requires to expand, it's easier to do a deal with a client that you already are dealing with. So over time, we feel very comfortable with the quality of assets we're developing. What happens? Maybe it takes a little bit longer to lease. Maybe you need to adjust somehow or lower a bit the rent. It's one of the gives and takes. So we have been over challenging times, not only over the last 10 years or the last 25 years, and I think for that reason, we focus on the quality of our assets. We focus on the long-term leases, and we have a strong leasing team.
So maybe ask that question to Mario and to Juan Carlos, because in the end, I think that having local presence makes a big difference when it comes to being the first one to be commercializing assets.
Perfect. Perhaps one more question. Yes, go ahead.
Hi, Roberto Verthelyi, ASIMICO. I have a question. You didn't speak much about the dividend. Can you talk about where does that fit in in your projections? And I have another question, which is, as you see the market grow, do you see that an incremental demand for last-mile type structures in Mexico? And is that something that is a target for you as well?
Sure. Let me leave the dividend side to Juan, because he will talk about the strategy on dividends later. On your question on last mile, which is related to e-commerce, we have seen a tremendous growth in this particular sector.
I think Gonzalo can give a little bit more details. Vesta has a strong focus on near-shoring opportunities, manufacturing platform, and manufacturing and supply chain integration to North America that will continue to thrive a lot. Another strong tailwind is the evolution of e-commerce that we have experienced in just as short as the last three years. I mean, Mexico was the country that expanded the most in terms of internet or e-commerce sales to total retail sales last year. We think that, and there's a lack of buildings for last mile, particularly in Mexico City. We just recently leased the biggest building in Mexico City at the highest rent, and that's a signal of how much interest there is from e-commerce companies to enter the market.
We'll continue to grow in last mile, and I think Juan Carlos will give a little bit more detail on what we are doing in that regard.
And just one more. When you lease, how many of those leases turn out that the tenant does significant customization on its own? And how sticky are the tenants therefore? I mean, you showed in the video a lot of robotic stuff and stuff. I mean, how much does that prevent them from moving around and stuff like that?
Yes, it's big. It's very big, the amount of investment the companies are doing, particularly when it comes to this type of companies. I mean, talk about the Amazons, the Foxconns, the Eatons. Sometimes it's at least one time the investment on the building, and in some cases, three or four times the investment of the buildings.
And in some cases, we don't even get the numbers because of how specialized this equipment is. But definitely, stickiness is key. And that's why our focus in inventory buildings or spec buildings is strategic so that we can anticipate on the buildings. The tenants take them, and we don't do any major investment inside of the facilities. We let them do the building. So you have the long-term lease, the US dollars, the corporate guarantee, the investment-grade companies, and their investment inside of the facility, which supports very well our strategy of why we want this type of clients. I mean, I would add that in Level 3, there was a specific target to do less build-to-suit. So the building per se is very standard. And much of all that investment is done by the client.
So the building per se, so that creates more resilient and more standard properties.
Thank you.
Now we will answer one question from the webcast. So the question comes from Francisco Chávez from BBVA. My question is regarding competitive landscape. If your peers have the same optimistic outlook for the industry, don't you think that competition will become harder? Any opportunity of seeing Vesta as a market consolidator?
Okay. Good. Well, I think that this is an industry where everyone wants to be in. I was just this last week at the AMPIP, which is the Association of Industrial Parks in Mexico, and there's way more players trying to play in this game. Why? Because out of the different business or asset classes there is in Mexico, the one that is thriving and will continue thriving because of the strong fundamentals is the industrial sector.
However, many of our peers, they lack some of the things that we just recently explained. They don't have the track record. They don't have the balance sheet. They don't have the local presence. They don't have a strategy. And I think in that regard, Vesta has an advantage by having all of that. So you cannot only be optimistic in order to be competitive. It's maybe only one ingredient, but in the end, I think that it's a lot of work that is required in order to be well positioned. An opportunity of seeing Vesta as a market consolidator. Well, I think that today, the idea of the Vesta Day is to give more clarity where we're heading in the next six years. It has worked out in the past. Have a plan, be able to execute.
We think that that will have to continue to be the main strategy of the company. Execute successfully, and the rest will only be opportunistic. Perfect.
Thank you, Loren. That closes the first Q&A session. Now we will continue with the commercial presentation.
Perfect. Gracias. Thank you, Rob.
Hi, everyone. I hope you guys are having a good Thanksgiving week. Yeah, perfect. All right. My name is Mario Chacón. I'm the Chief Commercial Officer. Juan Carlos and I are really excited to talk to you about the most dynamic and rapidly growing real estate markets in Mexico, and also what we have been doing and we're going to do in the following years. We're going to start with a quick real estate market snapshot here. A quick thing is going to be very clear too. The trend is continuous upwards.
And combined with the forecast that the team here just shared, we think they're going to continue backwards. We had this little bit of slowdown during the pandemic, but it continues to go upwards. High absorption in prime areas like Monterrey, Guadalajara, Mexico City, the border cities in key industrial hubs are driven by near-shoring and expansions. Expansions by companies that are already there and want to continue. Tight vacancy rates in cities like Tijuana, Monterrey, Mexico City leads to higher rents and competition for space, even though that the high pace of construction. The rising lease prices in high-demand markets like Tijuana, Monterrey, and logistics hubs like Mexico City continue and are becoming even more. Demand for high-quality modern facilities with advanced tech features. It's the things that we have been seeing: automation, energy efficiency.
Another factor that has been pushing up the lease prices are construction cost increases: steel, concrete, inflation, and labor shortages. There has been a segmentation of the market. Warehousing and distribution centers near urban areas have seen higher lease prices compared to more remote manufacturing spaces. The best example is Mexico City. Monterrey, with its strategic location very close to the U.S., two or three hours away from the border, has this uniqueness, attractiveness of the market. Our first project here was an opportunity we found in a very urban infill location in Guadalupe, one of the most important submarkets of Monterrey, with no land available. There were three old buildings, and we decided to demolish them. We built two large state-of-the-art buildings. We pre-leased them to companies, most of them for last-mile operations. We have been doing an exhaustive job of seeking for the best available land.
I think we are achieving it. In 2020, we acquired the first land in Apodaca, the most active submarket in Monterrey, that I will elaborate in a bit. Our parks and buildings have the best technical characteristics: security, fire protection system, domestic water, the hydro-pneumatic system, tilt-up walls, LED lighting, high clear heights, isolated roof, equipped loading box, exhaust or climate system, electrical equipment, and energy capacity ready, LEED certification, all these specs to receive manufacturing or logistics operations. Monterrey is the largest industrial real estate market, also known now as the capital of nearshoring. We entered this market at the end of 2019 as part of our Level 3 Strategy. One of our goals was to enter the largest industrial markets, Monterrey being the largest one. Proximity to the U.S. is essential for just-in-time manufacturing and supply chain, what some of our existing and future customers need.
Customers and key sectors that drive the industrial demand in a very diversified market, starting with automotive, with a Kia plant in Pesquería, and a new plant of Volvo that was recently announced in Ciénega, in the north part of Monterrey. Auto parts production for General Motors, Ford, and all of them. Electronics with a plant for LG and another one for Whirlpool. Logistics and distribution for e-commerce. Monterrey is the second most populated city in Mexico. During the last years, this market has been targeted by all the commerce players: Amazon, Mercado Libre, and the Mexican ones like Coppel. Increasing focus on tech and innovation sectors, biotech, electric vehicles, that diversifies even more Monterrey's economy and drives demand for specialized industrial space. The skilled workforce, especially in technical fields like electronics and automotive manufacturing. Proximity to the best universities of Mexico and technical institutes.
Tec de Monterrey, based in Monterrey, our Mexican MIT, it has great connection programs with industry. We are another, but much better, not better, the best real estate solution in the market. Our standards are easily aligned to any global cosmopolitan city like Monterrey. Customer service with a local team, with our own development team, property management team, and commercial team. Energy availability, the best location in any of our two parks for now, now with 0% of vacancy rate. The Vesta Park Apodaca. When we bought this land, and let me tell you how it happened, we found this, we identified this piece of land. We knew that it was going to be the right one. The owners, some rancher family, a local rancher family, they were not really convinced on selling. So we sat down, we talked, we negotiated, and we convinced them.
We bought the first half in 2020. We immediately knew that it was going to go fast, and we decided to buy the other half of the land. It's in a very urban infill location, very close to the airport, great connections to highways to the US. It's really the best corridor in Monterrey for industrial. The brokers call it the Champs-Élysées. Liverpool right next to it, with 2.6 million sq ft in three years, with clients like Polaris, Walmart, Onilog, Interplex, almost all pre-lease. Building 5, there is not even completely built there yet, this one here. It was already pre-leased by MercadoLibre. We have been the most fast-growing developer in the area. The investment of this project is $210 million, with a return of investment of around 10.7%. The plans of our Route 2030 is to stabilize our Apodaca buildings.
Right now, we have three other buildings on construction right now, the three last facilities, with a very active pipeline, and already negotiating some of them. Developed 3.7 million sq ft with around $310 million, and to get to almost 7 million sq ft. Tijuana, very well located, next to San Diego, California, also very close to Ensenada port and also the US ports. Vesta Park Mega Region represents the unity of these great regions, the Baja and Southern California, with all the industrial qualities that any industrial client wants. Challenging terrains, our team has the capabilities to develop, and ended with a great result for logistics and manufacturing operations. Combined with our Vesta Park and building specs, Vesta Park Mega Region offers the best quality for our clients. To mention, Home Depot, Amphenol, Herdez, TCL are some of our clients over there.
Tijuana is one of the oldest industrial cities in Mexico that adds great expertise in skilled labor, labor force, competitive cost, large supply chain, and a very healthy diversification. A modern and efficient cross-border infrastructure. In this diversified market, we have been seeing new economic trends into tech, more specialized, also into tech healthcare sectors. In a market with scarcity of good land, we have found great locations over the last years. Also in a market with scarcity of energy, we have our own electrical substation, making our park one of the few with capacity to host clients with large energy needs. We are the largest developer in Tijuana. The plans for our Route 2030 is to stabilize the last Mega Region buildings. As we speak, we are negotiating a few of the clients of the deals in the last buildings over here.
Also, start the development of phase two of Vesta Park Mega Region that we just recently acquired. Also, well, the plan is to develop 2.4 million sq ft by 2030 with around $230 million to get to 9 million sq ft. Ciudad Juárez, strategically located in the middle of the country, right next to El Paso, Texas, where companies can ship either to the west side, east side of the country, and it all will be in the west. Our parks have been absorbed with great timing due to the combination of industries, most of them manufacturing and logistics for manufacturing. This one here, the Vesta Park Juárez Sur, located in the most important industrial corridor, home for Lear, DB Schenker, Eaton, Harman, continues to be one of our best parks, one of our most demanded parks.
Our new park, Juárez Oriente, only five minutes away from the commercial border crossing in the U.S., with energy capacity available, also very close to the labor pool. It's now home to also, and again here, DB Schenker, BRP, Sage Automotive by Asahi Kasei. Vesta Las Torres, a conversion of an old park to a new one, renovated, expanded, and modernized park. Brought new and important players to the area, like Eaton, Vishay, and Grupo Modelo have been built. Juárez, also one of the first industrial cities in Mexico with the Maquiladora program, a program that was created for manufacturing factories with duty- and tariff-free for their exports to the U.S. Skilled workforce, mostly in electronics, automotive, and medical devices. Competitive labor cost compared to the U.S. Four of the five electronics contract manufacturers, Foxconn, Wistron, Pegatron, and Inventec, are building the electronics mecca here.
Huge companies to combine them with the great supply chain that is located in this borderland. Also continues to be a great hub for automotive, aerospace, and medical devices. Efficient cross-border logistics with fast movement of goods is key for these players. The border markets are more influenced and correlated to the U.S. economy and politics. Despite the fact, the industrial real estate market remains robust with a lot of requirements for specialized manufacturing spaces. We are the best park in the city, almost inside of the U.S., with energy capacity available. Now we are in the top three, the top three leaders in the market. We have been the most active developer in the borderland.
The plan for our Route 2030 is to stabilize the last Vesta Park Juárez Oriente buildings, which, by the way, a lot of companies, a lot of clients, or prospect clients have their proposals on their table, and they're ready to trigger the lease agreements. They're doing their math to do this trigger. Nail down the next plant for the next Vesta Park. We are right now in the process of acquiring more land. Develop 2.6 million sq ft with $225 million to get to over 7 million sq ft. Guadalajara, located in central western Mexico, well connected to the U.S. border and Mexican cities. Access to the Manzanillo port, facilitating international shipping. As part of our level three strategy, we entered Guadalajara. We wanted to be within the urban footprint with a meaningful site for grounding reinvented development. We did it and fast.
An important part of our strategy continues on being able to cluster properties in scale into state-of-the-art Vesta parks. Being able to control the overall design, image, traffic flow, and construction process allows us to reduce the overall execution risk. Guadalajara has historically been a key manufacturing hub in Mexico, and this sector continues to grow, particularly in the automotive industry. The city's proximity to key automotive manufacturing hubs like Guanajuato and Aguascalientes has led to the growth of the local supply chain, with Guadalajara becoming an important location for automotive components and electronics manufacturing. Companies like Audi and General Motors have set up plants nearby, spurring further industrial development in the area. Electronics manufacturing. Guadalajara has long been known for its electronics manufacturing, particularly in the production of items such as televisions, radios, and mobile phones.
The city's facilities host companies like Flextronics, Foxconn, and other electronic giants, contributing to a thriving tech hardware sector. Guadalajara has emerged as Mexico's leading tech hub, often referred to as the Silicon Valley of Latin America. This is driven by the presence of global tech giants. Companies such as IBM, Intel, Hewlett-Packard have set up operations in Guadalajara, attracted by its talent pool and proximity to the U.S. market. Additionally, new companies like Amazon, Google, and Microsoft have been expanding their presence, helping foster the local tech ecosystem. Proximity to skilled labor force. Also very well universities, very known and important universities and technical institutes. In recent years, Guadalajara has transformed into a more diversified economy, transitioning from a primarily manufacturing-based economy to one with strong technology, creative logistics, and service sectors. Online retail has surged with companies like Amazon and Mercado Libre expanding in Guadalajara.
Being Guadalajara, the third most populated city in the country, the rise of e-commerce has fueled demands for logistics services, including last-mile delivery solutions. Rising demand for large-scale facilities and also some characteristics different, a little bit higher ceilings, better docks, high demand for modern facilities, energy-efficient features, automation. With a very recent entrance, we are now one of the most active industrial players, the first developer to offer large-scale buildings, now with a 0% vacancy rate. The Vesta Park Guadalajara, we acquired this great location right during the pandemic, during challenging moments, but right after we acknowledged that all the attributes we seek in this location were the correct ones. Mercado Libre took our first building and expansions, then O'Reilly, then DSV, Foxconn, which by the way, they have huge plans for this area.
With 3.3 million sq ft in three and a half years, it's been a great success. Here's an image of the time lapse of how it was developed. And we're very excited to announce that we just acquired a piece of land to develop phase three of Vesta Park Guadalajara. We will start development immediately. Two large buildings, two large-scale buildings of around 350,000 sq ft each, and that will be ready by third and fourth quarter of 2025. The Vesta Park Guadalajara is an investment of $205 million, with a return on investment of around 10.5%. The plans for our Route 2030 is to consolidate Vesta's position as market leader, develop 3.5 million sq ft with $380 million to get to almost 7 million sq ft.
Now I'm going to let you guys with Juan Carlos that he will talk to you about two other very dynamic markets in Mexico.
Thank you very much. My name is Juan Carlos Cueto. I'm in charge of the central region. I'm going to talk about Querétaro as well. Francisco Estrada is in charge of that region, and I bring good news for you. Let's start with the video. Querétaro stands out as a secure industrial hub, ranking among Mexico's top 10 most densely populated cities, top five cargo airport, top five largest industrial city. The new government is promoting the development of passenger railways to improve mobility between Mexico City and Querétaro. Querétaro is known to provide highly skilled, talent pool, well-regarded universities, high standards of living, and competitive labor and rental costs. Vesta Park Querétaro is the largest of the Vesta parks.
It has the optionality to expand capacity by buying available adjacent land. Vesta has secured top-tier tenants in a broad range of industries ranging from logistics to light manufacturing companies. One advantage, as you may know, is that we have our offices inside the park, so we're in touch with all our clients to provide them with asset management, asset management team, commercial team, and the development. Here are the offices. You can see it. Talking about Querétaro market, as you can see, the vacancy rate here in Querétaro is 4.4%. The vacancy rate of the Vesta portfolio in Querétaro is around 2%. What happened? We're performing better than the market. In this year, we just leased 700,000 sq ft with six different companies. We took 40% of the market share in Querétaro.
The six companies, two were automotive companies, two were aerospace companies, and the two other companies were in the electronics sector. So very diverse portfolio. As you know, we have been here with Aerospace Vesta Park that is just next to the airport, and this park is two kilometers away from the airport, like three kilometers away from the main highway that goes to Mexico City. And the rent per square year remains in line with what the market has right now. And I think Querétaro, after the pandemic, slowed down a little bit, and then this year is picking up. So we are in a peak market right now. The Route 2030, as you can see, we want to develop 1.9 million sq ft by 2030 to reach a total portfolio of 8.5 million sq ft, and we're going to invest $9 million in new developments.
As I mentioned in the video, we have the optionality to buy land. Adjacent land is disposable, available, and we're negotiating in order to grow our GLA in this park. I'm going to talk about Mexico City. First, I'm going to talk about one of the main projects that we have that we call Vesta La Villa. A new development in construction. It's an infill urban location, a standalone building, a couple of blocks away from Ciudad de México airport. By building rapport with local landowners, we acquired an old production facility that was demolished to provide an A-class building green certification at the best location. Next to a transportation hub, La Villa was created to establish last-mile operations for the most active companies. You can see as well Basílica de Guadalupe next to La Villa. Basílica de Guadalupe receives around 22 million people a year.
This is a very dense commercial location. For example, Walmart that has two stores over there, they got always record highs in sales, taking into account the United States and Mexico, so it's very dense. Punta Norte, situated at the north of Mexico City, is another project. It has direct access to Periférico, Mexico City, most important highway. Punta Norte is located in the CTT, the most dynamic industrial corridor in Mexico City. Punta Norte showcases Vesta ability to enter new markets, quickly stabilize projects, and attract one of the most leading e-commerce players at one of the highest rates in the city prime industrial corridor. Vesta Punta Norte exemplifies once again the ability to build rapport with landowners. The best locations are owned by businessmen who really trust our company and our management team. I'm going to explain a little bit the dynamism of.
Where are these two parks? As you can see, Vesta La Villa is in the middle of Mexico City. Vesta Punta Norte is in the north. We're pretty close to San Martín Obispo that has been very successful. It's a public park that has clients such as PepsiCo, Walmart, Amazon, Samsung. Everybody wants to be in San Martín Obispo, but we want a better location than San Martín Obispo. San Martín Obispo has heavy traffic. Sometimes it's hard to enter the park, and we're just pretty close to the Periférico, perfect access, and we have perfect visibility. What happened? A lot of people commute from north to south Mexico. We're going to be seen on a daily basis for more than 1.5 million people every single day. For us, this is a flagship, and we have leased these two properties.
I'm going to talk about later on the case. The vacancy rate right in Mexico City is a historic vacancy rate, 2.3%. In the region, we have a vacancy of 0%, fully leased in Puebla, fully leased in Toluca, and we are right now, we have four properties in construction, two buildings in Punta Norte, one building in La Villa, and another building in Puebla. We already pre-leased the two buildings in Punta Norte, and we have closed LOIs in La Villa and in Puebla. So we're going to be fully leased. So we have great news for the growth in this presentation. We started this building in, well, it was at the end of 2023. This location is known by the outlet Punta Norte, and as you can see, there are two highways, Periférico and Chamapa-Lechería, that goes directly to Toluca.
That is in the outskirts of Mexico, and we have presence with 20 buildings. We overcame topographical issues because we had to divide the project into two different platforms. We have retaining walls, 30-meter retaining walls, so it was challenging, but we got a good project that we're going to finish in two or three months. We're delivering to Mercado Libre the two properties that I'm going to talk about. The building in the bottom is for last-mile project for Mercado Libre, and the biggest building is going to be for a distribution center. They leased these two buildings at a record high rent. As you see in the last slide, market rent's around $10 per sq ft. We leased it at around $12.5 per sq ft. So we captured a lot of value.
In the Route 2030 highlight, once we stabilize Punta Norte and La Villa, we want to develop 2.7 million sq ft to reach a total portfolio of 4 million. Two years ago, we had 250,000 sq ft in Mexico City. We have today 2 million sq ft, and we want to double that in five years or triple that maybe with an investment of $300 million. We have great news as well. We are in a process to acquire another plot of land in CTT, close to Punta Norte, maybe this year, to start construction next year. It's going to be about 25 acres. We're going to develop three buildings right away. What Laura mentioned before, we need to acquire land. The land is costly in Mexico. It's very expensive, and the carrying cost hurts a little.
So we have to acquire, start development right away, lease it right away in order to be successful in this kind of primary market. And that will be all. And Mario's coming with some other information. And we're going to pass to the video. Yeah.
Today, Mexico is the place to be. That's why at Vesta, we are committed to providing global standards, ensuring the world's leading companies find the perfect location and conditions to thrive. Eaton, a global leader in electric components, is a prime example. The company's expansion in Mexico underscores the unparalleled benefits. First of all, our presence in Mexico is long. It's not just recent. Even though now it's like increasing activity going to Mexico because of the geopolitical and geostrategic decisions, definitely we find that Mexico is good land for us, principally because of the talent and good people that are working in our facilities.
We have pretty decent landlords that also provide to us good and safe space, and we have logistic benefits that we can cross the border fairly quickly. At Vesta, we create spaces where industry leaders can excel. Whether in manufacturing, logistics, technology, or energy, we understand what businesses need to succeed. Another great example is Vishay, a global leader in electronic components, specializing in products for industries that include aerospace and military. [Foreign language]
The automotive sector is one of Mexico's most vital industries. Companies like Sage are thriving here. We know that the right location is crucial.
That's why we focus all our efforts on offering strategic locations across five key markets tailored to our clients' unique needs. We have several points. The last one is infrastructure, especially electricity. Vesta has a substation of electricity. It's a good advantage for Vesta. Also, another part is base. It should have durability over weight. The third one is labor, also human resources. The talent of the Mexican workforce strengthens our value proposition, which continues to grow and evolve to meet market demands. That is why our clients choose to partner with Vesta. We have been working with Vesta since 10 years now. We made many different projects, and we just expand our footprint in Juárez with the latest building that we have here now.
When we evaluate to establish a location at BRP, we're always looking to find a strategic location close to the main avenues, close to the borders as well, and close to the other facilities plant. As well, we are working to reduce our environmental emissions, and the building of Vesta is providing us a LEED-certified building, which is supporting our objective at BRP. At Vesta, we aim to be a unique proposition. We are a catalyst for success. Vesta is proud to be the trusted partner of world-class companies, always delivering the best of what we have to support a journey toward excellence.
It's our clients who can really tell the story of working with Vesta. Just to mention a quick thing about these clients we interview, Eaton, we have built four buildings in different markets during the last three years in Juárez, San Luis, and Querétaro.
Vishay has been our client since 2006. In 2022, we remodeled their original building, and we leased them a new ultra-modern building right next to their original operation. Sage Automotive by Asahi Kasei in 2022 pre-leased our Building 5 in Vesta Park Juárez Oriente. Jaguar by Sumitomo. Sumitomo has been our client since 2007 in Sinaloa. This division came to Aguascalientes and leased one building in our Vesta Park Aguascalientes, and a few months later, we replicated it in one more building in the same park. BRP, we built two build-to-suit campuses from 2014 to 2019, one in Querétaro and one in Juárez. In 2019, they acquired from us these properties. In 2023, they came back to us with a new requirement, and we pre-leased one of our inventory buildings in Juárez for their distribution center.
The industrial real estate market in Mexico has been resilient and continues to perform strongly due to a mix of nearshoring, increasing demand for logistics and e-commerce, and the country's strategic location and trade agreements. Lease prices have been steadily rising, especially in prime locations, due to high demand, limited supply, and construction costs. Absorption rates remain strong, reflecting the ongoing need for modern, flexible industrial spaces in key markets. Our commercial team, Laura mentioned them, Adrián in Tijuana, César in Monterrey, Adalberto in Aguascalientes in Guadalajara, María in San Luis, Francisco in Querétaro, Alejandro in Guanajuato, and Juan Carlos in Central Mexico. In Vesta, we're working very hard in every phase of the process, from finding the right lot of land, having a unique position to sit down with the right and correct landowners, keeping good relationships with government, strong reputation, strong connections locally. We become local.
We are local. We develop the buildings that the market is thriving. We, our team, work very hard to be close with the clients, to understand their needs, help them start their operations, support their expansions. We are focused on attempting and catching the best deals, not only for our good, but for the development of Mexico. Thank you.
Thank you, Mario and Juan Carlos. Now we will open the floor for questions. Anyone has a question? Yes. Jorel.
Jorel from Goldman here. There you go. So just I have two questions. So we talked a lot about a potential development pipeline, and I'm sorry if you said this before, but how much do you envision that as being build-to-suit versus spec of the locations you talked about? And then I just want to talk a little bit about demand.
I mean, there's been a decline in net demand in border markets like Tijuana, Juárez. And so I just wanted to get a sense of how do you view that demand? Because you have both GLA increasing because development pipelines are everybody's basically reducing development pipelines. And then there's the decline in absorption. So how do you think about those two markets specifically in terms of where they are in the cycle, when they can potentially inflect? Those would be my two questions.
All right. Well, let's start with Build to Suit projects. Actually, during the last years, most of our projects start as Spec buildings, inventory buildings, and we change it to more like Spec to Suit. So it's not necessarily a custom-made building for the companies. An example is BRP.
The BRP, this last building, we started the construction, and we adjusted some slight things on the building, but really still a very standard building, and that's what we do in the rest of the markets. Maybe these slight changes, I mean, are just, let's say, call it tenant improvements. It's not really different than the standard ones, so that's what we have been doing during the last years. About the Tijuana and Juárez market, I mentioned border cities, border markets are very influenced by the U.S. We have identified that it's very cyclical. It's very cyclical and also very influenced by certain industries, let's say automotive. What is really interesting about us is how our markets complement, because right now, let's say, border markets are not really strong or really active, but we really expect to be very active in the following months.
But at the same time, right now, Bajío markets are very strong. Mexico City is very strong. So that's how it is. And we like how all the markets complement each other. But I think we can expect starting the year having more activity in the border markets.
Great. Pablo. Okay.
Hi. Thank you. I was wondering what are the clients telling you about the uncertainty that we're seeing in terms of the USMCA review, tariffs, Mexico judicial reform, all that noise that we see in the market. I guess that you have a pretty good sense of do actually tenants care what they're saying about the plans? I don't know. If you can share some color, it would be great. Thanks. All right.
Okay. We have great news because we signed a contract, for example, with Meli after the Mexico election.
We started signing LOIs for La Villa after the Mexican election, so for consumer goods, logistics, and e-commerce, they want to stop growing. They're keeping a pace, and they're going to continue to do that because it's the essence of their business. For example, Mercado Libre leased five million sq ft in eight months. We capture one million out of five million. Rather, we have news here in the US or in Mexico, I think, for the logistics and for the e-commerce companies. I think they don't care. Maybe that will impact the manufacturing. Maybe somehow. But for Mexico City, I think we're in a good path, and they're just keeping growing. To add a little bit more about the manufacturing, what we hear from the clients or customers or prospect clients, some of them, they prefer not to say anything.
Some of them, they just say that they're under review. And what I really think and what people inside can tell us a little bit more is that they're analyzing and seeing all the scenarios of what is happening for them to manufacture some goods and bring them to the U.S., how it's going to impact their changes on tariffs. But either way, we lived it already when President Trump came to the first time of his administration. And it ended very well for Mexico. And I think right now, we think it's going to be similar. The war with China still helps Mexico. And we can share what we can feel. And that's part of what we see.
Perfect. Thank you.
Lygia Campbell . There we go. Loews Corporation. I have two questions. One was just from the video.
I noticed that one of your clients commented on having the power source near that particular facility. So thinking data centers, I know it's different, but how much of a factor is that power source for some of the others? If you're buying new land or you're developing something new, how does that play into local municipality and so forth, and how big of a deal is that? And then the second question is from a design perspective. I know these are boxes, and they can be tuned in. I mean, I'm not trying to some have two floors, some not. But how do you think that design has changed from, say, 10 years ago, and how could it potentially change going forward with AI and different ways of manufacturing? In other words, I'm getting at obsolescence.
At what point, even though it's a really young portfolio, does the tweaking to it change enough that it makes it more difficult out into the future?
Okay. Let's start with the energy one, and we'll have Diego talking about our energy program in a bit. But I mean, either way, I think it's very important. We consider and we start the assessment since we are looking at the land, and we start all the investigation about if there's an energy feasibility for that piece of land since before we acquired that land, and if there is or if there is not, we start the process with the CFE or CENACE, which are the government entities for this item, and we definitely are very focused on that part. We know how important it is for our clients to be ready for them to start their operations.
So in some parts, in some land lots that there's not, we start the process before even we acquire the land. So in most of our projects, we invest a lot on energy. And definitely, it's one of our advantages from being in some of our markets. And we see that in Tijuana, it's more difficult to find, but that's why we build our own substation. In Monterrey, there's some. We've invested to bring the grid to the park and have the energy there. And same thing in Guadalajara, in Mexico City. So it varies a little bit, but I mean, at the end, we're very focused on that. Okay? Second. The signs, yes. And also, Diego, we can explain to you a little bit more on this sign, the development part of it.
But I mean, what I think has been changing through the years, I mean, the height, it's definitely one of the things. I mean, we've seen that companies are trying to store and put their goods in higher ceilings. But either way, it's not that different from the years back. One thing, it's automation. Automation is one. And what takes you to, I mean, that brings us to more energy. So maybe more energy to the future. We will need more. We will need more. I think that's one of the things that Diego probably can explain a bit more on that.
Regarding your first question, what we do right now is we sign a contract with CFE in order to keep the kVAs. And we just give it away temporarily for the term of lease. And then the client gives us back the kVAs.
Ten years ago, it was the opposite. They hire everything, and they just sign the contract with CFE. Sometimes we start losing the kVAs. So right now, we have control over the kVAs. So I think we cover certain areas with that.
Perfect. Thank you.
Y es. Thank you very much for having me here at the event. I just came back from Miami with Genesis Ventures. I think actually Mexico is going to benefit a lot just coming back from Cantor Fitzgerald event in Miami. So I think this is a positive movement in your direction. I was happy to see you doing some work in medical industry, medical technology, as well as AI. Two-part questions. Actually, I want to piggyback from the colleague question earlier.
In terms of what we're seeing from our client base across supply chain, how are you able to digitize your operations? And when I say digitize the operations, a lot of clients are looking at big data, mainly behind location intelligence. And two, the other part of the question is, what industries are you getting more involved in? What we're seeing on our end, other than the energy and the big data centers, we're seeing a lot in the space technology area. So some of the discussions were whether or not we use operations outside of the U.S., Mexico's a logical location. What are you doing in that area? And do you get clients in that particular industry?
Sure. Starting with the information we have about the supply chain and for medical devices, I mean, what we see is it's definitely a more robust supply chain in certain markets.
And let's say the ones who have more history, it definitely has more supply chain, and in terms of I don't know if it's true that, but in Querétaro, we have sold some pieces of land for data centers. And we supply the energy for them, and it's inside of our park, in the Vesta Park Querétaro. And we have Microsoft, Ascenty, and one more. But I mean, I think that's one of the things that we've seen. They're not really our clients because they're not our builders because they are too specialized. They are too specialized, and we prefer to sell the land to them so they can build their own buildings. Okay? I don't know if that's part of what you're referring to, but I mean, that's what we see from our side as developers. Okay? And the other question was, what was the other? Sorry.
The types of industries in terms of advanced technology, space technology, artificial intelligence. Electronics.
We are seeing a lot of electronics in certain markets: Guadalajara, Tijuana, Juarez. And some of them, and you probably heard of it, but we have been seeing companies are trying to manufacture semiconductors in Mexico. So that's one of the things that we're looking at right now in Guadalajara. And there is a big project there right now. So we hope we can foster one of these projects. So yes.
Yes.
Hi. Hi, everybody. John Haskell from Atla Capital Management. Good to see you, Mario. And the whole team. I have a question about rent rate growth. So there's been astounding increases in rent for the system and for you in particular. And so what is your feeling on the ground with clients as to their ability to absorb these price increases in the future?
If I think of another asset class like retail, there's occupancy cost, right, as a metric that is a pretty good guide of whether the developer is taking kind of the right share of the value chain overall. So where do you see as a developer in industrial sort of rents stabilizing at a more at the right equilibrium? Is the client base stretched or not, just from what you see in your conversations? And how does Mexico rent rates now compare to kind of key comp markets, either domestic U.S. or other EM markets? Thanks so much.
In terms of the lease prices, right during the pandemic, we noticed that companies were very analyzing what was the impact on those increases. And it took longer to decide back then. Right after, it changed. And they knew that they had to. They had to.
I think that's what we keep seeing right now. They have to. It continues, but not as the jump we had during 2020. It continues a little bit on the upward trend, yes. I think that's what they and that's what we hear, and that's what we see on our leases. Yeah. Regarding Mexico City, in 2022, rents rose maybe 15%. Last year was a huge jump, 40%. What the broker community is saying right now is that maybe this year we will get another 10%. Then maybe rents will stabilize in the future, I think so. What we see right now, for example, in the different markets inside Mexico City is because companies are flying to quality. If you compare, for example, infill locations to the locations on the outskirts, maybe there is a 60% jump. It's amazing.
Companies are willing to pay because they don't have to. Maybe transportation costs are more efficient if they are inside. The traffic normally in Mexico City is heavy traffic. The commute is pretty long sometimes. So they're looking for quality products and for quality locations. So if you ask for this, if you can provide them with these kind of locations, because we have a scarcity of land as well, it's almost impossible to buy maybe 50 acres in Mexico City. You have to buy maybe 25 and another 25 here and 25 there. So we have to be very picky on that. But I think we have a lot of opportunities. And maybe also the old facilities, like we did in La Villa, we bought an old facility. We demolished the facility, and then we start a new project because you redevelop.
So I think this is going to be the business for the next couple of years.
Perfect. Now we will continue with some virtual questions for our in-person audience. Note that our management team will be available for detailed questions in the cocktail session. This question comes from André Mazini from Citi. Would you consider having JV partners at the asset level in order to fund growth with a third-party balance sheet, so to speak? Yeah. Yeah, perhaps. Juan Sottil is going to ask that. Okay. André, Juan will address your question later on. Okay. Thank you so much. Thank you. We will continue with Diego to energy. Thank you.
Thank you.
Thank you so much. I think this is from there.
Thank you so much, Mario and Juan Carlos. I think that the testimonials were also very inspiring. And as one of them mentioned, Mr.
Furukawa from Sumitomo, which was a great experience. We did a first project, they expanded, and then we did another project for them. So I think growing with the tenants and having this great commercial relationship with them has always supported our growth. Well, my name is Diego Berho. I lead asset management, development, and construction. Today, I would like to walk you through the opportunities that we're seeing in energy infrastructure for industrial real estate in general, and in particular for Vesta, as we focus on how we can leverage our ability to access power for tenants to further underscore our competitive advantage. Now, in 2016, we led our industry when we established a dedicated team anticipating potential bottlenecks ahead from the surge in demand and also from the restructuring of Mexico's federal utility company.
Today, we have a well-defined energy program that I'll speak about in this presentation, as it involves first anticipating access to power to propel our continued growth, and second, decarbonizing our portfolio through our clean energy use. Now, securing access to power for development projects has become a priority across the world of real estate, and Mexico is no exception. Grid congestions and interconnection queues have posed challenges to all the underwriting processes that we've had, so Vesta has anticipated these challenges and these challenges we're seeing in the market, ensuring that our tenants have immediate access to capacity through our microgrids, which I will explain a little later. Vesta's smart meter solutions have enabled us to leverage historic data so far, and today, we can monitor and gather data for 100% of our portfolio.
Now, in terms of clean energy, renewables play the most important role in our approach to decarbonization. Vesta is benefiting from a first-mover's advantage in having already negotiated energy contracts with our tenants. And the immediate program rollout has factored in the complexity to supersede technical, commercial, and legal barriers while aligning Vesta and our tenants' sustainability objectives within the appropriate regulatory frameworks. We're therefore unlocking value through reduced cost of energy, increased attractiveness, and leasing volume, and also benefiting from Vesta's resulting access to sustainable finance. Now, I'll try not to get too technical while illustrating how microgrids offer a compelling solution that simultaneously addresses multiple challenges. Today, most of our buildings are within a Vesta park. This approach has allowed us to cluster properties and provide a unified standard for our assets.
At the same time, we're able to integrate the park with an electrical microgrid, which is a small-scale private distribution network, which is connected to the national grid. Now, one of the most important benefits of microgrids is their ability to simplify regulatory compliance. By aggregating capacity to demand and presenting as a single user to utility companies, we can significantly streamline the application process, and it also results in more flexible terms from the utility agreements. From a business perspective, the benefits are also substantial. Picture a tenant moving into a property, and instead of navigating a complex process with a utility company, instead, the tenant gets immediate access to our power through our plug-and-play microgrid solution. Moreover, microgrids offer unprecedented flexibility in the capacity allocation across buildings and tenants and adapting to future market conditions.
But perhaps most importantly, microgrids preserve long-term asset value because we can maintain the power at an asset level and make properties more attractive also for second-generation leasing. The technical advantages of microgrid are particularly exciting. Through sophisticated management systems, we can maximize the capacity utilization within the grid and more effectively integrate distributed energy resources such as solar and storage solutions. And our submetering systems provide unprecedented transparency, allowing users to monitor and optimize their energy consumption in real time. In our commitment to sustainable development, microgrids serve as an open system ready to integrate local renewable resources and encourage other initiatives such as electric vehicle fleet adoption. And this infrastructure also positions us to purchase off-site clean energy supply, significantly contributing to Vesta's decarbonization goals. Now, Mexico's energy landscape is experiencing a transformative shift.
The new administration has unveiled a comprehensive energy plan that, at its core, the plan opens the door for increased investment across Mexico's transmission, distribution, and generation infrastructure. What makes this particularly significant is the administration's commitment to renewable energy, targeting an ambitious 45% share in the national grid by 2030. These policy changes will accelerate Vesta's power access capabilities and our clean energy initiatives, ultimately strengthening our ability to serve our clients while advancing in their decarbonization objectives. Now, we have identified the key intersections where our energy team supports our development and marketing capabilities. I will use a fictitious Vesta Park X to better illustrate how our process works. Now, even before acquiring a piece of land, Vesta's pre-construction teams have assessed and anticipated energy demand and timing, and immediately engaged with Mexico's utility company to ensure the project's feasibility and the economic viability.
For Vesta Park X, with 1.5 million sq ft of GLA and probably six tenants, we would require roughly nine megawatts of power. Historic data and site-specific criteria enable us to have a much more granular approach to when and how much capacity should come online. Before even breaking ground, our teams would have already submitted an early application to utility. Now, during construction, we prepare for the interconnection process and begin procurement and CapEx for long lead items while ensuring that the interconnection works that apply are properly negotiated with the utility planning division. The utility planning division assesses the project relative to the grid and therefore assigns the interconnection works and reinforcement works that need to be done and coordinates with other stakeholders in order to execute these works.
For Vesta Park X, our team would have procured the required capacity and coordinated about $10 million in interconnection investments and distribution network, which have been budgeted into the park's infrastructure. The timely delivery of the expected works is key for the pre-leasing stabilization process. Finally, we work with our leasing and our investment teams in order to do the planning, the pricing, and the managing of the allocation of the capacity to satisfy the project's immediate needs, but also to guarantee sufficient capacity for future growth and also negotiate signing the power purchase agreements with the tenants. For Vesta Park X, our energy team would have a proactive role in the tenant negotiation, allocating capacity, and also proposing ramp-up scenarios for them in order for their production to become live in an effective way.
Now, usage fees have been very common, but we use them mostly to avoid tenants' speculation of capacity needs, and once the project is stabilized, the project goes online, and then we can start generating revenues. As I noted earlier, Vesta's dedicated energy team has over eight years of experience proactively ensuring tenants' access to power. We've secured 146 megawatts of power and invested around $100 million in reinforcement works, transmission lines, interconnection substations, and distribution networks as part of Vesta's Level 3 Strategy. For Vesta Route 2030, we include procuring about 120 megawatts of additional capacity in line with our growth targets. To be more specific, Vesta has allocated 90 megawatts of capacity to date and has 56 megawatts of available capacity dedicated to our immediate development pipeline alone. Importantly, this underscores our ability to ensure energy for sustained logistics and light manufacturing growth.
We're committed to our portfolios on-site solar solutions to achieve 50 megawatts by 2030. We are able to unlock further value with this from our existing assets, and this is what our clean energy initiative encompasses. We have clearly identified those projects that are prepared for behind-the-meter deployment, and these include 15 Vesta Park microgrids as well as 25 standalone buildings. In terms of operations, today, we have nine microgrids connected to the utility and 60 power purchase agreements active with tenants. By 2030, we expect to have 25 operational microgrids and 160 power purchase agreements with our tenants. And as we continue on this path, we're building out our energy team and the overall energy-related capabilities across the company. Further, we will build upon our already outstanding reputation, actively engaging in institutional working groups to further strengthen our relationships with local authorities.
This is in order to stay ahead of the planning and regulation curve that we foresee in the near future. Data will become increasingly relevant as we scale these projects and provide us insightful information about our portfolio that can help us further with underwriting. Finally, Vesta is always innovating. We're exploring alternative energy solutions such as on-site gas power plants in order to bridge any potential interconnection delays and to serve as future backup for redundancy power, and our Qualified Supplier status allows Vesta microgrids to access alternative energy suppliers and enables additional off-site clean energy from a greener grid. All of the above optimally positions Vesta to support and facilitate our clients' progress towards Scope 3 decarbonization. The program underscores that our platform is uniquely positioned to anticipate market dynamics and also to meet our clients' energy needs. Now, let me share with you our Tijuana case study.
As Mario mentioned in his video about how the process was, this, I think, is a better way to illustrate how our success in securing power for this specific project can provide a lot of value, so Vesta has the largest footprint of buildings in Tijuana and has been active acquiring and developing projects for almost 20 years. We are able to anticipate real estate demand and energy requirements through our deep understanding of sub-market dynamics. Vesta Park Mega Region began in 2021 with six buildings, which were finished this year. We began the conversation with the utility company even before breaking ground.
Given past experiences, we were able to sit down with them and analyze interconnection alternatives, run impact studies, and define the reinforcement and interconnection alternatives and the works that would work for the utility that would fit our development schedule and that would be economically viable for the development of the project. The best solution in this case, as you can see, it was a high-voltage interconnection through a 15-megawatt substation. Our teams were able to accelerate the project's initial phase, simultaneously securing a mid-voltage bridge solution. Ensuring immediate availability was critical to our successful pre-leasing of the project.
While negotiating with the utility company, we conducted our design and procurement processes, selecting the contractor on time in order to overcome potential supply chain issues, achieve the rights of way in order to get to the substation, and have the transformers ready on site to meet with the predefined deadlines with the interconnection queue followed by commissioning to go online. Successfully securing power also enabled us to confidently increase the project's footprint. We recently purchased land here in order to duplicate Mega Region's size over the next years. Today, we have two available buildings and six more to come and to be developed with ensured immediate access to power. This next case study is a pilot project for clean energy. For this pilot project, we wanted to demonstrate Vesta's on-site solar solutions rollout creating immediate value.
We chose a small-scale Vesta Park located in Monterrey of slightly less than 500,000 sq ft, which Mario presented because it's very urban infill and has four tenants, two of which are e-commerce tenants. The project is fully leased, Vesta manages the meters within the microgrid, and they already have power purchase agreements in place. Now, we wanted to simplify the complexity of renewable energy supply for tenants, and therefore, their energy contracts will remain unchanged. We planned our leases to ensure roof access in order to deploy solar, and these two buildings are LEED Silver certified, which, among others, guarantees the building's energy efficiency performance. We're leveraging smart data from the microgrid for the conceptual design, and after a thorough engineering process, the solution will include a 1.2 megawatt of on-site solar, storage solutions for intermittents, and electric vehicle charging stations for the fleets of these e-commerce tenants.
The project is expected to be online by 2025 and provides tenants with more than 35% of on-site renewable energy at the same price as their current rates. In economic terms, we are expecting to invest about $1 million to deploy this pilot project, which should achieve immediate returns in line with those of Vesta's investment guidelines. Now, Route 2030, therefore, ensures that our strategic approach to energy remains an important differentiator, creating value to our tenants, to our assets, and to the communities. And with this, I will leave you with Laura, who will talk further on our ESG objectives. And thank you very much.
Thank you, Diego, and good afternoon. My name is Laura Ramirez. I'm the ESG director for Vesta. There has been growing support and a recognition of the importance of companies focused on ESG in creating long-term value.
Today, ESG has proven critical and essential to resilience and long-term recovery, while also enabling certain companies to take the initiative as leaders, recognizing that their long-term profitability can only be achieved when they invest in people, in environment, and work transparently with a focus on their stakeholders' interests. Vesta was an early adopter of ESG protocols, recognizing our responsibility to elevate the standards. Vesta's ESG commitment is therefore a critical component to our long-term vision, working with our different stakeholders to incorporate ESG throughout our core business as part of our corporate culture. Our areas of focus related to ESG have evolved over time, ensuring that today, these are integral to our day-to-day operations. This process cannot be implemented by just one department of the company. We require all the departments on a daily basis.
ESG, therefore, is deeply embedded throughout aspects of all of the company, from the board of directors to the smallest department of the company. We've made considerable success since presenting our targets to you at the 2022 Vesta Day, and I'm pleased to share updates and to share out our updated ESG strategy. We began implementing Vesta's ESG program and related initiatives 13 years ago and have since built what's widely considered to have a strong ESG program, which we continue to expand and improve based on national and international standards and led the best practice in the industrial real estate sector. Turning to our accomplishments related to Level 3 Strategy in the governance and integrity pillar. When we refer to investment, we are aware of the importance of the environment and the community and the relevance in the decision-making process.
That's why 80% of our investment decisions by year-end 2024 are based on the UN PRI guidelines, and we have targeted 100% compliance by the end of 2025. Our suppliers are also a key component to achieve our ESG strategy targets. That's why we ended 2024 having exceeded this KPI by establishing ESG commitments with more than 50% of our critical suppliers. At Vesta, we are convinced that diversity enriches decision-making, which is why we seek to promote diversity on our board. As Lorenzo mentioned, we are above our Mexican and U.S. peers regarding board diversity. It is for this reason that we will end 2024 with three women as proprietary members of our board of directors. Based on these results and new ESG trends, we define the following KPIs for 2030.
We are aware that ESG topics are the responsibility of all departments of the company, which is why 100% of our senior management and employees' financial compensation will be linked with ESG objectives. ESG topics must be considered from the highest levels of decision-making. Therefore, we are going to train in ESG aspects to all of our board members, and we are going to reduce the salary gender gap by 8% in the executive level and 5% at the management level. For us, people are very important, which is why we promote human rights inside and outside of the company. As well, we recognize the needs of the communities to turn them into opportunities for collaboration. I am glad to share with you what we have achieved in the Level 3 Strategy, mainly in the social pillar right now.
Strategic partnerships have raised more than $1 million, which has been directed towards Vesta's ESG projects. This includes stakeholder partnerships as well as the Vesta Challenge charitable cycling event. With these additional funds, we can multiply the impacts in the communities, and we could reach more people. Although we know that we still have a way to go in terms of salary gender gap, we had reduced the salary gender gap by 50% in the executive level and 5% at the management level to date. Based on these results and new ESG trends, we define the following KPIs for 2030, which translate into strengthening our strategic alliances, the NGOs, by auditing and developing them, involving employees and family members through a professional volunteer program, implementing impact measures in Vesta's social investment projects.
Finally, we will develop processes where human rights, the community, the vulnerable groups, and security are considered in our daily operations. As an industrial real estate company, we know the role we play in carrying and reducing our environmental impact. The real estate sector consumes 60% of global energy, and in 2021, it was responsible for 37% of carbon emissions relating to energy production. Therefore, we have developed different activities related to preventing and mitigating our impacts. Among these are, regarding our climate change strategy, we've completed our initial emissions inventory, including all three scopes. We identify all physical and transitional risks to determine mitigation and preventing actions based on TCFD and IFRS standards. We are finishing our first biodiversity analysis aligned with TNFD. Regarding Vesta's green certification KPI, by 2023, we have already exceeded our stated commitment, having achieved green certifications for 28% of our GLA.
Regarding our final two KPIs, we remain focused on mitigating energy, water, and waste to ensure we meet both objectives by 2025. These actions led to creating the basis to strengthen our initiatives in environmental aspects, among which are established our Net Zero commitment, prioritizing achieving Net Zero for Scope 1 and 2 emissions by 2040, and achieving a material reduction in our Scope 3 emissions related to tenant energy consumption, as well as through the increase of use of materials in our construction process with a lower carbon footprint towards 2050. Okay, we are going also to have energy efficiency operations in 100% of our Vesta parks. This means that they should comply with ISO 14000. We are going to promote a positive impact on nature in accordance with recommendations of TNFD.
And as part of our decarbonization plan, we are going to install 50 megawatts of on-site solar capacity by 2030. Our 2030 ESG strategy also includes an additional sustainable business pillar. This considers specific portfolio actions that strongly demonstrate the extent to which Vesta's ESG strategy permits through our business key operations. This translates into the following actions: promote the use of green lease in our new contracts, continue working with our stakeholders, meaning employees and suppliers, and we plan to achieve 55% of our GLA with a green certification by 2030. With all these actions and efforts that we have been implementing during all these years, we proudly share that we have been recognized by different international ratings for our ESG performance.
Let me share with you the results of the three most important ratings that we were part of in 2024 and Vesta's comparison with our main Mexican and US peers. MSCI, Vesta is among the leading companies having achieved a double-A rating for the second consecutive year, well, for the second consecutive year, with AAA being the highest rating. Sustainalytics, we are considered a low-risk company regarding ESG. S&P Global provides in a depth assessment of a variety of areas related to ESG. Vesta's grade of 63 points out of 100, 100 being the highest grade, enables our company to be included in the 2024 S&P Yearbook. We also have received outstanding ratings grades from CDP for our climate change strategy, GRESB for our portfolio management, and UN PRI for our responsible investment process.
ESG actions are no longer an option, but rather requirements for companies to succeed and operate in today's world. Companies that set the agenda for climate resilient growth are more attractive as investment prospects. Therefore, Vesta is proudly committed to ESG initiatives. Thank you. And let me turn our discussion over to our CFO, Juan Sottil, who will continue our conversation by sharing his financial perspective.
Thank you, Laura, and thank you for explaining to us the importance of ESG, which is a key component of our strategy. As you may know me, my name is Juan Sottil. I'm the CFO of Vesta. I will try to do this quick and dirty so that we can finalize the presentation. Jorel, you asked about our sources and uses of funds, so let me go deeper into that.
As you can see, we plan to invest $1.7 billion over the next six years. A significant part of it would be in income-producing properties, which we plan to deploy as the plan goes along. There will be some land purchases that we will do. We're historically low on land. Land has been fluctuating typically between 6%-9% of total real estate assets. Right now, we're way below that, and I would expect that next year, we'll have significant investments in land reserves for our business. If you go to the right-hand side of the chart, you can see how we're going to fund that. We basically have a very strong balance sheet, and we will take advantage of that strong balance sheet by issuing about $1 billion in debt.
And there will be some, if you take into account cash on hand and some property recyclings, we will continue to fund the company. If there is an opportunity, of course, we will issue equity. But right now, we will focus on debt expansion for our funding. Furthermore, about 60% of our capital requirements will be funded by debt, as I explained. We're very mindful of the strong balance sheet that we need to keep. Therefore, we're focusing on loan-to-value of 30% and net debt to EBITDA of 3.5%. We have touched upon. You asked about dividend policy. Dividend policy is an important part of the total return for our investors. We have never been the highest dividend payer in Mexico, nor do I expect that to happen.
But we will pay dividends as an integral part of the total return that we will offer investors. However, we expect that stock appreciation will kick in and do that gap. We are a very carefully managed company. We're very conservative, but we're an opportunistic company as well. In that respect, if we see the stock market mispricing what we believe is the fair market price of our equity, we will implement, as we have been doing so over the last six months or four months. We have been very active in stock buybacks, and we will continue to do that when we see the opportunity. I think that's a great way to improve the returns to our investors over time. We're very mindful of returns on our investment. And we have shown this graph before.
If we update this chart to what we see happening over the next six years, we will be investing $1.7 billion. We believe that these incremental investments will be worth about $2.3 billion by year 2030. And therefore, we have a significant value creation over this period. And this is what we are committed to do for our investor base: really sharp and strong profitability over the next six years, as we have done in the past. I'm going to double-click on this long-term profitability. You have seen this chart on Laura's presentation. We're showing this again with a twist. We're doing it on a relative basis. So we're comparing Vesta performance on our two main metrics, profitability metrics: FFO per share and NAV per share. FFO per share, we compare ourselves to our main peer. And we all know who that is, I guess.
Well, over the last 10 years, we have grown at a 10% CAGR on FFO per share. We've far outpaced what our main peer has done over the same period. Furthermore, if we extrapolate, as we grow the GLA on the horizontal axis, we expect to grow FFO per share on a CAGR of 10% over the next six years. That's a significant objective that we have, and we plan to meet it. If we go to NAV per share, again, on a relative basis, we have provided a 7% CAGR growth over the last 10 years. We expect to provide 8% over this six-year growth plan. I only will underline that every time we do this exercise, providing a long-term view, we have met the objective. That was the subject of Laura's presentation.
We are very comfortable in achieving these profitability targets because the way we view business is significantly different than the way our peers view the business. We develop our own properties at a significant high cap rate. When we acquire properties, we do it on an opportunistic basis. And basically, when we see the cost of acquisition significantly closer to replacement cost. So if you, for six years, develop properties at above 10% cap rates, if we continue with a prudent funding plan of the company, if we are mindful about dilutions, then we're confident to provide these NAV per share increases as well as the FFO per share increases that we think we will deliver to you over the next six years. With this, I end up my presentation. And Laura, Diego, and myself will be open for your questions.
Thank you. Okay. Jorel, that was your question. How are we going to fund ourselves?
Thank you for answering my question. I have a question about, you said something about recycling assets. One thing, if I'm sort of connecting the dots, there were some markets that you mentioned about expansion, but among them, there was not Guanajuato, San Luis Potosí, and Centro. Maybe I missed it. I just wanted to get a sense, are those the markets that you would consider recycling assets in?
We take a more holistic view on recycling properties. I think that there are several ways to approach that. The main objective of Vesta is to improve the portfolio that is left after you sell some properties. That is always the main objective. The first time we recycled properties, we basically sold an average portfolio, if you recall, in 2018, I think.
We sold the average Vesta portfolio. We were very mindful that whatever was left was at least equal to what we had beforehand. At the time, what we wanted to prove was that the market was valuating the Vesta portfolio wrongly. We said, if the appraisers are saying that the portfolio is valued XYZ, and if we can prove that we can sell it at a significant lower cap rate. We chose to select a very standard portfolio. It was across the board. In that particular case, we sold properties from the Bajío as well as from Toluca. We chose those types of properties for that particular reason. The second time we sold the. We raised a significant proceeds, $110 million, if memory doesn't fail me.
We sold it at about seven and a quarter cap rate, something like that, which was significantly low to what our development cap rate was at the time, which was 10 and a half, give or take. On the second time, we sold a portfolio that basically had a 10-year average life. We chose properties on Querétaro as well as on Ciudad Juárez. We have a couple of other properties as well. We raised about $107 million. What we wanted to do at that time was to sell stabilized properties with an average maturity of 10 years. We needed some capital, and we used it basically to fund the company. We didn't see any more potential to increase the value of the properties as the land that we have on those properties was fully deployed on the tenants.
It ended up happening that the owner of the properties bought back his own properties, which turned out to be better. We had a competitive bidding process. A South American insurance company was the best bidder. But in Mexico, the law requires you to first give a right of first refusal to the landowner. Significant money proceeds to the company. It was a great transaction. In the future, we might consider either to sell some of the buildings that have gone stale because of aging. We still have some buildings that were developed some time ago. We may choose to do an average portfolio basis, or we may solve any other problem that we see an opportunity on. But I don't see that our recycling opportunities will be focusing on a particular landholding.
We take a very holistic view of what's the problem that needs to be solved when we recycle properties, and we will solve for that variable.
Thank you. Very clear.
Perfect. Yes, sir.
Yes, sir.
Thank you. Juan, my question is, so 10% of the funding comes from equity in your estimate. So that's a convenient sliver because if markets are not good conditions, you probably can figure out another way to hit your goal, so my question is, really getting to the rate of growth that you're targeting, what is the limiting factor? Are you trying to create a plan that you can execute on with or without equity raising? Or is that the growth rate that the market can fundamentally absorb or that you have the capacity to develop?
I can give you our opinion.
I think that when we made this plan, the guiding purpose was, again, we are a very conservative company. We are a very judicious company. We do not like to take risks, and if we take a risk, it's only on the development side of the business, so the question that we asked when we did this business plan, we approached it bottom up. We first talked to our commercial division. What do they think is going to happen on their markets? How strong they feel that the markets could grow, could bear? Where are they going to go the land reserves? Is it profitable to underwrite the land reserves given the substantial price that has risen on land? Taking all that into account, we developed the plan. Then the question had to be asked, are we being conservative? Are we being very forward-leaning?
Once we felt comfortable on the amount of growth that we were willing to commit to you, then we answered the question, is it fundable? We have the great advantage that we have a very strong balance sheet. We solved that problem last year. We really developed a strong balance sheet. Then we just exercised good judgment in saying how much leverage can we do. We look at the ratios that that leverage will imply on the company, and we like the results. The results is a good balance on company with not a huge amount of leverage, and say, well, voilà. That's what we will do. Now, I am mindful, we are mindful that the stock market, I believe, is not particularly forward-looking in our stock valuation. So I do not want to, we did not want to over-rely on stock issuance.
But I believe that this is a temporary thing. I believe that as we implement this plan and as we deploy the capital, I think that the stock market will take a second look at Vesta. And if that happens, when it happens, we will be ready to issue more equity. If that happens, when it happens.
Yes.
Yes, sir. I have a question. On the PPAs, who takes the risk for any changes in tariffs? And how long are they? I mean, do they match the tenor of the lease? And then I have a question about, again, on the dividend, you said you were.
I apologize. Let me get that clear. Dividends are an integral part of our commitment.
I heard that part. It's just.
Look, we set dividends on a yearly basis. And we recommend to the shareholders to approve them.
Typically, dividends are not. I mean, we will grow dividends accordingly to the actual cash flow generated the previous year. I believe, as you saw our FFO, I think that there is sufficient room to pay a good return on dividends. It has never been our policy to be the highest payer of dividends. And I think that that policy will continue. That means that dividends are going to grow judiciously.
But I mean, you're not prepared to say what percentage of FFO or anything like that, any sort of.
When you develop at a 10% return on cost, 10% return on cost, where my cost of funds today on a marginal basis are around 6% in dollars, and I do not run a, I am very long dollars after paying my debt, do you really want me to pay a significant number in dividends?
That's a policy.
I'm not saying that you have to pay a significant number. I just wanted to get some clarity as to what the policy. It could be zero.
No, in the past, we have grown the dividends. I mean, in the past, we have grown the dividends a little bit higher than U.S. inflation on the last four years.
Okay. And on the PPAs?
Sure. So basically, our PPAs are basically risk-free. We tend to be more conservative on that side in order to have the PPA match the lease. So it's active as long as the lease is active. And basically, how we structure it is a pass-through unless the tenant wants to elaborate on a more long-term basis. So that's the default scenario for the PPAs.
Gordon? Yes.
Thank you. Hi, Diego. Just actually, that was one of my questions on who takes the underlying risk of energy.
But a second question, which was related to that, is you mentioned that the returns on the power strategy are consistent with the returns with Vesta's capital deployment. So let's call it a 10%-ish type of return. Where is that captured? Is that captured on the surcharge on the electricity charge, or is that reflected in higher rents over time?
So the way we can structure that can be manifold. So in that particular case, which is the pilot project that we're doing, that involves really on the PPA. That is where we are getting that, and specifically on that specific investment. That is where we're getting those returns. So they're apart from the lease structure in that specific case. Yeah.
Perfect. Yes? Thank you, [Cunha].
Yeah, great presentation on the green energy, solar energy.
In the video you showed, you had all these gorgeous, beautiful, long buildings with these huge flat roofs. I didn't see one solar panel. Not one. Maybe I think maybe one or two buildings in that whole presentation, yours and others. What are you going to put the solar panels on? You got the perfect buildings for it.
Sure. Indeed, that's why we have our energy program in place. Our commitment is to deploy 50 megawatts of solar. Bearing in mind also what the regulatory framework can allow us to do on a more of a risk-free basis in order not to match also the consumption of the tenants and of the microgrids with those of the users and the production that we can do in terms of solar.
So today, we have much more visibility in terms of the energy program in place by the authorities. And therefore, we can plan ahead. And that's why we're willing to commit that towards 2030 to have 50 megawatts installed by then.
Or you can put a lot of solar panels on those roofs for your microgrid. And you won't have to look at anything else hardly. Now, are you guys looking at putting any buildings in Puebla?
We are in the Puebla market. And if we believe that there's good opportunities from Volkswagen, from Audi, from other people interested there, we will certainly buy the land and invest properties there. Is it the hottest market in Mexico right now? Well, compared to other markets, it's a good market. It's not the hottest market.
So we will allocate capital according to the opportunities that we have on hand at the time we make the decision.
Because I know the workers, the people in Puebla are very hard workers.
They are. Look at Volkswagen. Why?
Because the majority of Mexicans in New York are from Puebla.
Yes. Yes. Go ahead. Yes. I don't see you. Pablo.
Okay. Thank you. Rob Colorina, AIAC Family Office . This might be a question for Laura. This might be also a little bit more education for us. But with respect to some of the ESG policies and some of the incentives, are there greater contractual upsides or economics for you all to be in compliance? Could you speak a little bit about that with respect to ESG credits?
And then are sort of the authorities sort of more active in terms of governance of this in Mexico? Again, this might be more education because most of us are U.S.-based.
Okay. Well, first, we always try to comply with the local laws in the way we operate and we work within the environmental part mainly. But also, we take into consideration the social part when we enter into the communities. And sometimes, it helps us to develop a complete, for instance, in the responsible investment part, we work together the environmental and social parts in bylaw and also within the social parts with the community and also in the environmental laws. But regarding, you mentioned something about, something about banks or something? Okay. Maybe in that part in energy or something, fiscal parts, maybe Juan could help you in that part. But.
We've been working with specific banks, for instance, or yeah, financial enterprises that we could start working like ESG bonds, sustainable bonds, not for instance. And we can make it like we're evaluating, for instance, in 2021, we launched SLB bond. And we are working towards to have another this type of facility with the banks.
To give you clarity, on the global bond that we issued a couple of years ago, we had five basis points if we meet the hurdle by year number five. It's a 10-year bond. We're going to meet it. We're way beyond the upgrade. On the debt raise that we announced that we were going to do, on which we just last week, we had the commitments from the banking sector, several of you are here, we have hiked the bar on the type of ESG commitments, which is in particular.
The SLB certified with the green certification. Again, it is a bigger hurdle. It is a higher hurdle. It is a five-year floater based on SOFR. When we meet on a yearly basis, the path of growth of approved GLA, we will have again a five basis points lowering of the rate. You will know the details early next month about how much we raise at what rate. I think that the market is going to be happily surprised about the commitments that we have, the debt is oversubscribed, the commitments that we have, and the rate that we achieve, as well as the performance of the enhancement given the ESG targets that we committed to.
I would like to add just two things. For instance, in Mexico, we have launched the Mexican taxonomy. It's really new. It's pretty new.
But it's also really, let's say, outrageous because it's one of the only taxonomies all around the world that has two main components, the social component and also the environmental component. It's totally different from the UN taxonomy that is also the mother of all taxonomies. But actually, that will help us also to communicate with you all as investors and the ESG department to speak the same language. So that also will help with the SLB, green bonds, social bonds, and sustainable bonds that we could launch as a company with your banks. And also, another thing that we're doing is regarding climate change.
For instance, when you measure your physical and transition risk and evaluate financially according to IFRS and also TCFD, you could see as banks also the risk we have as a company if we do not invest in the climate change strategy to make the company more resilient. So I think that's also another key thing that we need to take into consideration more than fiscal incentives because I think it's where we're going to. So that's the two things I would like to add.
Yeah. Perfect. Thank you, Laura. Now we will continue with some virtual questions. I just want to remind everyone that you will have a chance to meet with the management at the cocktail to ask more questions. The first one comes from Alejandra Obregón.
Can you talk about the NOI yields that you foresee for the 2025-2030 plan given the expected rent upside and the land needs?
Look, I think that we give you enough clarity given the FFO component on long term as well as NAV. I think that we give guidance on NOI on a yearly basis. It is an aggressive guidance from my point of view. It is always challenging to meet it. So NOI, I don't think that I'm going to give you clarity for six years. I think it's too granular. I think that what investors should focus on is on cash flow, which is represented by FFO per share. And I think that's good enough clarity for the next six years, not for a yearly basis on which I will give guidance on February every year.
From André Mazini, we will revisit the question, Juan.
JVs, I don't forget. Sorry. We have explored JVs in the past. Look, I think that JVs, the only JVs that we will consider are those JVs where we do not share the development component. That should be our investors' domain. However, if we can explore stabilized portfolios, JVs, where we keep the management of that portfolio, that could be a route of raising funds in the future. That's what we did just prior to the pandemic. I think that theoretically, we can be open to that idea. But we're not going to share development yields with JV partners. I don't think that's a good idea. Development cap rates are the domain of you, our shareholders.
Perfect. Thank you, Juan. And we will go with one last question from Francisco Chávez at BBVA. My question is regarding your energy program.
Can you give us an idea on how high are the barriers of entry and what you have done so far? How easy is it to replicate Vesta's progress? And finally, this energy plan be a relevant source of profit besides property value in coming years?
Sure. So I think our focus will remain and is and will remain to focus on our core business, which is the real estate. So our strategy is to have access to power in order to satisfy our growth objectives. That is one part of the question. And I mean, how high can the barriers of entry be? I mean, I think it depends for whom. But I mean, at least we already have a head start in terms of having the PPAs already with the tenants in order to deploy solar easily.
That will make up the bulk of the energy program that we have in place.
How long have you had an energy division?
Yeah, for more than eight years. So that's a significant entry barrier. You have the knowledge base for eight years, which I don't think a lot of people do in Mexico.
Perfect. Great. Thank you. Thank you, guys. Now we will go to the closing remarks from Lorenzo.
We have quite a day. We are again very excited to be able to share with you many of the activities that Vesta has been through in these last years, but particularly to share with you what we see ahead of us. We're very excited to be able to continue being a leader in the industry. We appreciate the feedback that we have received from all of you.
We appreciate every time we sit with you either through a conference, a call. We take very seriously your comments. Vesta has been and will continue to be a good steward of your capital. We represent your interest. And we will continue to scale up the opportunities together with you investors, the financial community. And we're pretty sure that with all your support, we will continue to take advantage of what we believe is a very prosperous country with great opportunities where locals might have a greater expertise and greater opportunity. And collaboration with you is going to make us greater. I will walk through a little bit briefly about some of the important remarks after the presentation. We've been working for more than 25 years to establish a fantastic platform.
I can today say after the presentations of my team that we have really the best team to take advantage of opportunities. Our track record can talk to itself for what we have achieved. That will help us to be able to achieve better results in the upcoming future. Fundamentals, even with the challenges that we will be facing, we believe are still there. E-commerce, nearshoring, the region of North America per se, even with some of the potential negotiations or revisions that we'll be facing on the trade agreement. We flew over from Mexico. We're still next to each other, similar to the flags behind me. There will definitely be opportunities going forward. Of course, our focus on value. We think that Vesta is a vehicle that has been created in order to provide value for our shareholders.
We will continue to do so. We will continue to find ways. We will continue to find means in order to make this happen and make our investors as always happy. For that reason, we appreciate again your time. We appreciate your presence. We're very thankful for your support throughout all these years. We'll be more than happy to continue the discussion and talks through the cocktail in the next hour that we had together with you. Thank you very much. Welcome again.
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