Logistic Properties of the Americas (LPA) Water Tower Research Virtual Insights Conference summary

Market environment and operating performance

• Portfolio remains fully occupied for the third consecutive quarter, reflecting strong demand and limited new supply in key Latin American markets.

• Rents per square foot increased 10% year-over-year, with same-property NOI up nearly 16%, driven by pricing power in undersupplied markets.

• Peru and Colombia showed the highest revenue growth, with Peru up over 50% and Colombia nearly 30%, due to scarcity of institutional-quality space.

• Lease terms average 4.5 years unexpired, with annual step-ups and regular repricing to market rates, creating a multi-year tailwind for rental income.

• Early signs of demand from AI-related industries are emerging, adding to the broad-based essentials-driven tenant base.

Capital recycling and portfolio strategy

• Completed a $145 million sale of Parque Logístico Lima Sur in Peru, marking the largest exit to date and validating the platform's full-cycle development model.

• Sale achieved a 22% gain over book value, with proceeds to be redeployed into higher-yielding development opportunities, primarily in Mexico.

• Capital recycling is positioned as a self-funding growth engine, with $85 million from the sale earmarked for Mexico over the next 12–18 months.

• Ongoing partnerships, such as with Fibra Prime, are expected to be replicated in future developments.

• Monetizing mature assets and reinvesting at higher yields is a core lever for enhancing shareholder returns.

Mexico growth focus and development approach

• Mexico identified as the primary capital development opportunity, benefiting from nearshoring, strong domestic consumption, and e-commerce growth.

• Strategy targets less competitive sub-markets along the 57D corridor, leveraging a proven playbook and existing tenant relationships.

• Entry into Mexico emphasizes pre-leasing and forward purchase structures to de-risk investments and secure attractive yields.

• Central Park 57 project utilizes a forward purchase model, allowing acquisition post-stabilization and minimizing development risk.

• Pipeline in Mexico is deep, enabling selective investment and maintenance of wide yield spreads.