Logistic Properties of the Americas Q3 Earnings Call Highlights

Key Points

• Third-quarter revenue rose 19.3% to $15.4 million and net operating income increased 21.1% to $12.6 million; portfolio occupancy remained at 100% for a fourth consecutive quarter.
• LPA’s three announced property sales total just over $300 million, about 42% of gross property value. It expects to invest most of roughly $137 million in net proceeds in Mexico, targeting supply-constrained markets and deploying capital through 2027.
• Financing costs roughly doubled to $10.1 million, including a $1.3 million debt prepayment penalty. Colombian peso appreciation boosted reported results; without that currency benefit, companywide NOI growth would have been 14.2% rather than 21.1%.

Logistic Properties of the Americas NYSEAMERICAN: LPA reported higher third-quarter revenue and full occupancy across its logistics portfolio, while outlining plans to reinvest proceeds from asset sales primarily in Mexico.

Revenue rose 19.3% year over year to $15.4 million, and net operating income increased 21.1% to $12.6 million, executives said on the company’s third-quarter 2026 earnings call. The quarter marked LPA’s fourth consecutive period of 100% occupancy.

CEO Esteban Saldarriaga said the company had closed the sale of its PLS property in Peru, agreed to sell Bodegas Aurora in Costa Rica and, shortly after the quarter ended, announced the sale of its Calle 80 Park in Colombia. The transactions totaled just over $300 million, he said, representing roughly 42% of the company’s gross property value.

Asset sales fund Mexico expansion

Saldarriaga said the three transactions were priced at a weighted average premium of nearly 10% to 12% to appraised value, depending on how foreign exchange is accounted for, and at a blended in-place capitalization rate of approximately 7.7%. The company expects to deploy most of approximately $137 million in net equity proceeds in Mexico.

The $152 million all-cash sale of Calle 80 to Bancolombia is LPA’s largest asset sale to date, Saldarriaga said. Once it closes, the company expects to repay the equivalent of $55 million in Colombian peso debt. LPA retained land within the park suitable for more than 1 million square feet of additional gross leasable area and will earn a facilities management fee equal to 1.5% of rental revenue, he said.

The CEO said LPA would prioritize Mexico over development of the retained Colombian land. For that site, the company would seek third-party capital and consider contributing the land and providing development, leasing and operating services, provided its investment hurdles are met.

In Mexico, LPA is focused on supply-constrained markets along the Highway 57 corridor. Its Central Park 57 project in Tepeji del Río is expected to offer more than 2.1 million square feet of gross leasable area and represent an investment of roughly $200 million. The company plans to acquire stabilized facilities within the park gradually rather than develop it independently, Saldarriaga said.

During the question-and-answer session, Saldarriaga said LPA is targeting deployment of the capital throughout 2027, though it could not pinpoint when individual deals would close. He said the company is prioritizing properties serving domestic consumption and is mindful of potential tariff exposure in export-oriented sectors.

Regional growth and financing costs

Revenue rose 45.1% in Peru and 45.7% in Colombia. CFO Paul Smith said the Peru increase primarily reflected rent from PepsiCo at a new Callao Park building, while Colombia benefited from a lease to PriceSmart at Calle 80 and contractual inflation adjustments.

Colombia’s peso appreciation also boosted reported results. Excluding the currency benefit, the country’s revenue would have increased 16.2%, Smith said. Companywide net operating income would have risen 14.2% to $11.9 million without the peso’s appreciation.

Costa Rica revenue increased 4.2%, supported by higher rental rates, while Mexican facilities acquired in August of the prior year contributed a full quarter of rental revenue. Same-property net operating income grew 11.9% to almost $10 million, and average rent per square foot rose 10.6% to $9, executives said.

Operating expenses increased 54.6%, reflecting factors including new building operations in Callao, the stronger Colombian peso and higher taxes at La Verbena Park following a municipal reassessment. General and administrative expenses were $4.7 million, or 30.3% of revenue, compared with nearly 35% a year earlier.

Financing costs roughly doubled to $10.1 million. Smith said a prepayment penalty on debt associated with the Peru property was about $1.3 million, with other costs recognized when the loan was liquidated.

Repurchase option and capital allocation

Although LPA closed the PLS sale in the third quarter, Smith said the company will continue to report the property’s results and retain a related liability on its balance sheet for the foreseeable future. Because LPA has an option to repurchase the asset, the transaction is treated as a financing for accounting purposes, he said.

Saldarriaga said LPA’s shares traded at less than one-third of its approximately $8.86 book value per share as of September 30. He said the company is not currently contemplating a share buyback or dividend, arguing that repurchases could reduce the free float and trading liquidity. The board could revisit that position as conditions change, he added.

LPA is also investing alongside three institutional investors in a planned $85 million logistics park on Peru’s Panamericana Sur Highway. Saldarriaga said LPA will have an 11% equity stake, including capitalized development fees, and full control of the assets. The partners plan to develop the 1.1 million-square-foot park over the next three years.

About Logistic Properties of the Americas (NYSEAMERICAN:LPA)

Logistic Properties of the Americas (NYSE American: LPA) is a logistics real estate company that owns, develops and operates industrial and warehouse properties in Latin America. Its portfolio is designed to support supply-chain, distribution and fulfillment activities for businesses that require modern logistics facilities. The company serves key logistics markets in Costa Rica, Colombia and Peru. Its properties are generally located near major population centers, transportation routes and commercial hubs, providing space for activities such as warehousing, distribution, light industrial operations and last-mile delivery.

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