Logistic Properties of the Americas (LPA) Q3 2024 earnings summary

Executive summary

• Revenue and NOI grew over 10% year-over-year in Q3 2024, with occupancy reaching 98.5% and average rent per sq ft rising 4.9% to $7.92, driven by strong performance in Peru and Costa Rica, offsetting a decline in Colombia due to a prior divestment.

• Entered a binding agreement for a strategic partnership with Falcon, marking entry into the Mexican market with two assets in Puebla, expected to close in 2025; DHL is an anchor tenant, enhancing sector diversification.

• LPA manages 7.3 million sqft of GLA with a 94.5% occupancy rate and an average remaining lease life of 5.0 years as of September 30, 2024.

• Tenant base includes major multinationals and regional leaders, with diversified exposure across logistics, consumer goods, retail, and manufacturing sectors.

• LPA maintains a strong focus on sustainability, with all warehouses EDGE certified and managed under the Ecological Blue Flag Program.

Financial highlights

• NOI for YTD Q3 2024 reached $27.7 million, up 19.8% year-over-year, with Q3 NOI at $9.6 million, up 10.3% year-over-year.

• Adjusted EBITDA for Q3 2024 was $25.95 million, reflecting a 17.0% CAGR from 2021 to 2024.

• Same-property cash NOI growth was 22.1% in Q3 2024 compared to Q3 2023.

• Operating GLA grew at a 14.8% CAGR from 2021 to Q3 2024, reaching 5.1 million sqft.

• General and administrative expenses increased significantly due to public company transition costs.

Outlook and guidance

• The Falcon partnership provides a strategic foothold in Mexico, leveraging nearshoring and e-commerce trends, with the transaction expected to close in early 2025.

• LPA expects continued organic growth with up to 2.0 million additional sqft through development of its land portfolio.

• Management is actively assessing further investment opportunities in Mexico to increase presence and GLA.

• Committed to disciplined investment and replicating regional success in the Mexican market.

• E-commerce is projected to remain a resilient demand driver, with Latin American e-commerce sales expected to grow at an 11% CAGR from 2023 to 2027.