Logistic Properties of the Americas (LPA) Q2 2024 earnings summary

Executive summary

• Achieved robust portfolio performance in Q2 2024, with revenue growing 10% year-over-year to $11.0 million, driven by strong fundamentals and favorable market trends in Costa Rica and Peru, offsetting a decline in Colombia.

• Entered a new phase as a public company, leveraging NYSE listing for capital access and expansion, particularly targeting Mexico's industrial real estate market.

• Added two independent directors with expertise in scaling businesses and regional real estate, strengthening governance and board independence.

• As of June 30, 2024, the portfolio comprised 7.3 million sqft of GLA, with 5.3 million sqft operating and 2.0 million sqft in the land portfolio for future development.

• Maintained a high occupancy rate of 94.6%, with 80.3% of leases US dollar-denominated, providing stability against currency fluctuations.

Financial highlights

• Q2 2024 rental revenues reached $10.9 million, up from $10.0 million in Q2 2023; total revenues for the quarter were $11.0 million.

• Net operating income for Q2 2024 was $9.2 million, with a NOI margin of 84.4%.

• Net earnings for Q2 2024 were $12.4 million, compared to a net loss of $4.8 million in Q2 2023, driven by investment property valuation gains.

• G&A expenses rose due to $1.8M in public listing costs, $1.1M in non-cash stock-based compensation, and new reporting obligations.

• Investment property operating expenses increased 33.2% year-over-year to $1.7 million.

Outlook and guidance

• Focused on expanding in Mexico, especially the USMCA corridor (Monterrey, Juárez, San Luis Potosí, Mexico City, Puebla), to capitalize on nearshoring and e-commerce trends.

• Plans to increase GLA in Costa Rica, Peru, and Colombia, with a 750,000 sq ft Costa Rica project nearing completion.

• Intends to replicate successful joint venture model in Colombia, as done in Costa Rica and Peru.

• Management remains optimistic about future growth, citing strong market trends and a focus on delivering high-quality products and capital solutions.

• Average remaining lease life is 5.3 years, supporting long-term revenue visibility.