Logistic Properties of the Americas Announces First Quarter 2025 Earnings Results

Growth Momentum Accelerates with 1Q25 Revenue Increasing 12.9%

SAN JOSÃ%, Costa Rica--(BUSINESS WIRE)--May 14, 2025-- 

Logistic Properties of the Americas (NYSE American: LPA) (together with its subsidiaries, "LPA" or the "Company"), announced today its unaudited consolidated financial results for the first quarter ended March 31, 2025 ("first quarter 2025" or "1Q25"). The financial results are expressed in U.S. dollars and are presented in accordance with International Accounting Standard ("IAS") 34 - Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB"), which differs in certain significant respects from the U.S. Generally Accepted Accounting Principles ("GAAP"). This information should be read in conjunction with, and is qualified in its entirety by reference to, the Company's condensed consolidated interim financial statements, including the notes thereto. All comparisons within this announcement are year-over-year ("YoY"), unless otherwise noted. LPA's financial results are stated in U.S. dollars unless otherwise noted. LPA is a leading developer, owner, acquirer and manager of logistics and industrial real estate of institutional quality in the Americas, and one of the few internally managed, vertically integrated, and institutional platforms operating across the region.

1Q25 Financial and Operating Highlights

   -- Revenue increased 12.9% to $11.8 million in the first quarter of 2025. 
      The $1.4 million of additional revenue was primarily due to the 
      stabilization of a building in Peru during the first quarter, as well as 
      the stabilization of three buildings in 2024, two in Peru and one in 
      Costa Rica. In addition, the Company had a $0.2 million increase in 
      revenue from positive rental rate growth related to higher rental rates 
      upon lease rollovers or contractual rent increases on existing leases, 
      along with other revenues increasing approximately $0.1 million. 
      Partially offsetting the revenue increase was a $0.2 million decrease 
      related to currency translation effects of leases denominated in 
      Colombian pesos. 
   -- Net Operating Income ("NOI") increased 6.0% to $9.4 million, primarily 
      due to the above-mentioned building stabilizations and higher rental 
      rates. Same-Property Cash NOI decreased 4.3% to $8.6 million during the 
      period, primarily due to a rent reduction from the prepayment of a 
      financed tenant improvement in Costa Rica and a one-time maintenance 
      expense in Colombia. Additionally, property taxes in Peru increased 
      following a municipal asset revaluation and one-time charges from the 
      municipality. 
   -- The occupancy rate of LPA's operating portfolio was 98.0% at the end of 
      the first quarter, a 0.3 p.p. decrease from year-end 2024 and a 1.3 p.p. 
      increase from first-quarter 2024. During the first quarter of 2025, LPA 
      signed a USD-denominated lease for 63,109 square feet ("sq. ft.") of 
      space in Building 100 in its Parque Logístico Callao facility in 
      Lima, Peru with a leading third-party logistics provider, replacing a 
      prior lease with this tenant. LPA also signed a new lease for 71,580 sq. 
      ft. of Gross Leasable Area ("GLA") at Building 400 in Parque Logistico 
      Lima Sur with a long-standing regional tenant which is one of the world's 
      leading logistics providers. 
   -- General and Administrative expenses increased 112.1% to $3.6 million in 
      1Q25, primarily due to a $0.8 million increase in other professional 
      services expenses and to $0.3 million in amortization expenses related to 
      Director and Officer liability insurance expenses that have been incurred 
      since LPA's business combination and related listing on the NYSE American 
      on March 28, 2024. In addition, the Company incurred $0.4 million in 
      total share-based payment compensation in the form of Restricted Stock 
      Units issued to executives in connection with the business combination, 
      as well as $0.1 million of trustee and director fees. Also, an increase 
      in employee headcount during the first quarter increased personnel costs 
      by $0.1 million versus last year's comparable quarter. 
   -- During 1Q25, LPA repurchased an additional $0.8 million of its ordinary 
      shares, bringing the total amount of repurchased shares to $2.1 million 
      under its $10 million share repurchase program, which will expire on 
      November 20, 2025. 

Subsequent Events

On April 30, 2025, LPA announced its plan to expand the Parque Logístico Callao property with the construction of Building 200, a new 227,172 sq. ft. facility that will increase the Company's footprint in Peru's underpenetrated logistics real estate market. At the time of the announcement, this facility was more than 70% pre-leased to existing LPA clients, including Peru's largest consumer products company, which will lease 101,557 sq. ft., and to the country's largest pharmacy chain, which pre-leased 61,074 sq. ft. Both pre-leases are denominated in U.S. dollars.

CEO Commentary

The growth momentum of our multinational, vertically integrated real estate platform accelerated in the first quarter, as demand for institutional quality, strategically located facilities like ours remained strong. The bulk of that demand came from LPA's large and diverse customer base, comprised of both regional and global leaders in consumer goods, third-party logistics and retail. We continue growing with our customers and deepening our relationships with them, as they further expand their operations in response to growing domestic consumption in LPA's foundational markets: Costa Rica, Colombia and Peru.

During the quarter, one of those customers, a leading global logistics company, signed an additional lease with us that brought LPA's operating GLA to a fully leased status, a significant milestone. The following month we also announced that we will increase the space of our other Peruvian park, Parque Logístico Callao, with the addition of a 227,172 sq. ft. building. Reflecting the scarcity of premium facilities like ours in key urban markets like Lima, this facility was more than 70% pre-leased. Securing land in such a strategic location represents a high barrier to entry typical of the markets where we have chosen to operate, due to the prevalence of highly fragmented land ownership, which our Company is uniquely able to capitalize on. The concessionaire of this land sought a strategic partner in the region with LPA's unique characteristics: a recognized institutional-level player with a strong, long-standing track record of developing and operating world-class logistics parks.

Some of LPA's clients are also expanding in Mexico, and our deep relationships will enable us to grow with them in this market as well. Although there is considerable uncertainty surrounding nearshoring in Mexico currently, domestic consumption remains resilient and robust, driving demand for premium facilities that are strategically located in the country's key sub-markets. Mexico lengthens LPA's growth runway substantially, complementing the robust development opportunities we are seeing in our foundational markets. We will continue to work with local partners that have deep and extensive relationships in this far larger market, as well as complementary local market knowledge and on-the-ground expertise. We will also remain highly selective when investing, as we are when choosing our tenants.

Our vision and ambition to substantially expand and scale LPA's unique real estate platform are backed by our team's extensive industry and market experience, a robust balance sheet, and strong underlying fundamentals such as high occupancy levels and dollar-based rents. As we look ahead, we believe LPA remains well positioned to create enduring value for our shareholders.

Esteban Saldarriaga

Chief Executive Officer

 
Real Estate 
 Portfolio 
 
                     As of and for    As of and for the  As of and for the 
                    the three months     year ended        three months 
                    ended March 31,     December 31,      ended March 31, 
                          2025              2024               2024 
                    ----------------  -----------------  ----------------- 
Number of 
 operating real 
 estate 
 properties                       31                 30                 28 
Operating GLA (sq. 
 ft)                       5,292,588          5,121,625          4,743,305 
Leased GLA (sq. 
 ft)                       5,810,181          5,637,044          5,523,194 
Number of tenants                 57                 57                 52 
Average rent per 
 square foot                   $7.96              $7.79              $7.81 
Weighted average 
remaining lease 
term                       5.0 years          5.1 years          5.6 years 
Stabilized 
 occupancy rate (% 
 of GLA)                      98.0 %             98.3 %             96.7 % 
                    ----------------  -----------------  ----------------- 
 
 
 
Financial 
 Performance 
 
Revenues 
 
                      For the three months ended March 31, 
                    ----------------------------------------  ---------- 
                            2025                 2024          % Change 
                    ---------------------  -----------------  ---------- 
   Costa Rica        $          6,000,839  $       5,655,817     6.1% 
   Colombia                     2,400,284          2,339,372     2.6% 
   Peru                         3,363,652          2,431,060    38.4% 
   Unallocated 
    revenue                        75,016             57,213    31.1% 
                        -----------------   ----------------  ------ 
Total revenues       $         11,839,791  $      10,483,462    12.9% 
 
 
 
Investment 
 Property 
 Operating 
 Expenses 
 

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