Logistic Properties of the Americas Q2 Earnings Call Highlights

Q2 performance remained strong: Revenue rose 26.1% year over year, NOI increased 27%, and the portfolio maintained 100% occupancy. Peru and Colombia led rental growth, while average rent per square foot climbed 10% to $8.88. Lima Sur sale will fund expansion: LPA agreed to sell its Peruvian Lima Sur Park for $145 million, expecting approximately $65 million in net proceeds after debt repayment and taxes. Most proceeds will be redeployed into Mexico while LPA continues managing the property. Mexico is becoming the primary growth market: The company agreed to acquire 2.1 million square feet of Class A facilities in Greater Mexico City for $200 million and expects Mexico to represent more than half of its portfolio within two to three years.

Logistic Properties of the Americas NYSEAMERICAN: LPA reported second-quarter revenue growth of 26.1% year over year and net operating income growth of 27%, as the regional logistics real estate company maintained 100% occupancy across its portfolio and advanced a strategy to shift more capital toward Mexico. Chief Executive Officer Esteban Saldarriaga said the company’s revenue growth was led by Peru and Colombia, where rental revenue increased 50.4% and 29.3%, respectively. Costa Rica revenue rose 5.6%. LPA attributed the gains to leasing activity at newer facilities, higher market rents captured through renewals and re-leasing, and contributions from Mexican assets acquired during the latter half of the prior year.

Average rent per square foot increased 10% to $8.88 during the quarter. Same-property NOI rose 15% to $9.6 million, while total NOI reached $12.2 million. Chief Financial Officer Paul Smith said that excluding the favorable accounting translation effect from Colombian peso appreciation, NOI would have increased 23% to $11.8 million.

Peru and Colombia Drive Rental Growth In Peru, Smith said the increase in rental revenue was primarily driven by PepsiCo’s occupancy of a new LEED Gold facility at Parque Logístico Callao near the end of last year. Leasing of previously vacant space and the addition of another tenant at the same park also contributed, with higher market rates producing positive lease spreads. Colombia’s growth was largely tied to the late-2025 re-leasing of Parque Logístico Calle 80 space to U.S. retailer PriceSmart, along with contractual inflation adjustments. Smith noted that, excluding the currency translation effect, Colombian revenue increased about 11%. In Costa Rica, higher rates from re-leasing, tenant expansions and renewals supported growth. LPA’s Colombian leases are denominated in local currency, while leases in its other markets are largely denominated in U.S. dollars.

Operating expenses increased 27% to $2.6 million, reflecting costs associated with newly leased Peruvian facilities, maintenance activity, higher ground lease payments and real estate taxes in Costa Rica following a reassessment of La Verbena Park. General and administrative expenses declined 8.7% to $4.2 million, mainly due to reduced reporting and legal expenses. Operating gross leasable area totaled 5.8 million square feet at quarter-end, up 9.7% from a year earlier, while leased GLA rose 10.8% to 6.2 million square feet.

Lima Sur Sale Funds Mexico Expansion A central development in the quarter was LPA’s agreement to sell its Lima Sur Park in Peru for $145 million. The transaction represented an in-place capitalization rate of approximately 7% and was priced about 18% above the park’s independently appraised carrying value, according to Saldarriaga. After repayment of roughly $60 million of debt and payment of capital gains taxes, the company ex...