Logistic Properties of the Americas (LPA) WTR Insights Conference: Powered by The Small Cap Showcase summary

Business overview and strategy

• Operates, acquires, and develops modern warehouses across Mexico, Costa Rica, Colombia, and Peru, with a $700 million asset portfolio and a vertically integrated model.

• Focuses on long-term leases with global multinational tenants, generating over $50 million in revenue and growing NOI and EBITDA.

• Maintains 100% occupancy, driven by e-commerce growth and nearshoring trends that increase demand for logistics assets in emerging markets.

• Achieves high risk-adjusted returns with 80% dollar-denominated leases and yields twice as high as comparable U.S. assets.

Financial performance and growth drivers

• Recent quarterly growth was primarily due to new buildings coming online, especially in Peru, with a 40% portfolio increase there.

• Lease renewals capture significant rent escalations, often 20–25% or more, supported by rising replacement costs and inflation.

• Organic growth is expected from new developments, with two buildings (7.5% of GLA) coming online in late 2024 and anticipated 10–15% rental increases on lease rollovers.

Market focus and regional strategies

• Mexico is a strategic focus due to its large, youthful population, proximity to the U.S., and structural advantages for logistics, despite current trade policy uncertainties.

• Initial Mexico investments target domestic consumption logistics near Mexico City, with plans to expand to export-oriented regions as market conditions stabilize.

• Peru benefits from a strong mining sector and logistics demand, with the company holding a leading market position and exceeding rent expectations.

• Costa Rica serves as a stable, cash-generating anchor with long-term, low-cost financing and ongoing growth opportunities, especially in medical devices.