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    LPA
    Earnings call· Jun 2026(Q2 FY26)

    Logistic Properties of the Americas Q2 FY26 earnings call LPA

    Aug 13, 2026 Source

    Executive summary

    Logistic Properties of the Americas Q2 FY26 — Strategic Divestment Fuels Mexico Expansion

    Logistic Properties of the Americas delivered strong Q2 FY26 results, marked by significant revenue and NOI growth, driven by high occupancy and rising market rents. The strategic divestment of Lima Sur Park at a premium provides substantial capital for accelerated expansion into the larger Mexican market, while the company maintains commitment to its foundational markets. This capital recycling strategy aims to enhance value creation and diversify the portfolio.

    Highlights

    5

    • Revenue accelerated 26.1% year-over-year, with Peru up 50.4% and Colombia up 29.3%.

    • Net Operating Income (NOI) grew 27% year-over-year, and same-property NOI increased 14.5%.

    • Divestment of Lima Sur Park for $145 million, 18% above appraised value, with net proceeds of $65 million for Mexico expansion.

    • Operating GLA increased 9.7% year-over-year to 5.8 million sq ft, maintaining 100% occupancy across the regional logistics platform.

    • New developments at Parque Logistico Callao (440,000 sq ft GLA) are 92% pre-leased with 13% development yields.

    Concerns

    3

    • Colombian peso appreciation resulted in a positive accounting translation effect, with underlying revenue growth for Colombia at 11% versus 29.3% reported.

    • Operating expenses increased 27% to $2.6 million due to new facility operations, maintenance, and higher real estate taxes.

    • High interest rates in Colombia are currently hindering new development starts despite tenant demand.

    Guidance & targets

    6
    CategoryTargetConfidence
    Mexico portfolio composition
    More than 50% of LPA's property portfolio
    high materiality
    High
    Capital deployment cap rates (Mexico)
    8% to 9%
    medium materiality
    High
    Annual NOI contribution (Parque Logistico Callao Building 200)
    $1.3 million
    medium materiality
    High
    Annual NOI contribution (Parque Logistico Callao Building 400)
    $1.6 million
    medium materiality
    High
    Organic momentum
    Hold through the second half of the year
    medium materiality
    High
    G&A expenses
    Remain relatively flat
    low materiality
    Medium

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Peru
    Primarily driven by PepsiCo's occupancy of new LEED Gold facility, rapid leasing of vacated space, and addition of a new tenant, all at significantly higher market rates.
    Rental revenue growth: 50.4% YoY
    		—50.4%——
    Colombia
    Primarily due to higher rent for Coyol-Alajuela space re-leased to PriceSmart and contractual inflation adjustments. Appreciation of the Colombian peso resulted in a positive accounting translation effect.
    Rental revenue growth: 29.3% YoY (11% excluding Colombian peso appreciation)
    		—29.3%——
    Costa Rica
    Driven by higher mark-to-market rental rates associated with re-leasing, tenant expansion, and lease renewal. Reflects a fully stabilized operation.
    Rental revenue growth: 5.6% YoY
    		—5.6%——

    Operational metrics

    17
    Average rent per square foot
    $8.88Up 10% YoY
    Q2 FY26

    Reflects higher mark-to-market rental rates across the regional platform.

    Operating expenses
    $2.6 millionUp 27% YoY
    Q2 FY26

    Primarily due to commencing operations at newly leased facilities in Peru, maintenance activities, higher real estate taxes in Costa Rica, and reversal of a prior arbitration cost benefit.

    Net Operating Income
    $12.2 millionUp 27% YoY
    Q2 FY26

    Driven by embedded rental growth from positive mark-to-market leasing spreads and operating leverage.

    Same-property Net Operating Income
    $9.6 millionUp 15% YoY
    Q2 FY26

    Reflects sustained growth in profitability.

    General and administrative expenses
    $4.2 millionDown 8.7% YoY
    Q2 FY26

    Due to reduced reporting and legal expenses. Expected to remain relatively flat going forward, generating operating leverage.

    Operating Gross Leasable Area (GLA)
    5.8 millionUp 9.7% YoY
    Q2 FY26

    Total operating GLA at the end of the second quarter.

    Leased Gross Leasable Area (GLA)
    6.2 millionUp 10.8% YoY
    Q2 FY26

    Total leased GLA at the end of the second quarter.

    Investment property gain
    $20 millionVersus $257,400 valuation loss in Q2 FY25
    Q2 FY26

    Reflects gains from the Lima Sur divestment and valuation adjustments.

    Financing costs
    $4.8 millionUp 1.8% YoY
    Q2 FY26

    Mainly reflecting a higher debt balance and interest rates related to the development pipeline in Peru and Colombia.

    Intrinsic value net of capital gains tax
    $8.62Up 16% YoY, 8.2% sequentially
    Q2 FY26

    Management's view of the hard asset value per share, excluding the value of the operating platform.

    Development yields
    13%
    Q2 FY26

    NOI levels from new facilities equate to these yields.

    In-place cap rate
    7%
    Q2 FY26

    Cap rate at which Lima Sur Park was divested.

    Deployment cap rates
    8% to 9%
    Ongoing

    Target cap rates for capital deployment in Mexico, depending on tenant quality and lease agreements.

    Mexico portfolio target
    >50%
    Within 2-3 years

    Target for Mexico's share of LPA's total property portfolio.

    Mexico acquisition program GLA
    2.1 millionApproximately 34% of current GLA
    Over 12-18 months

    GLA to be acquired under the programmatic purchase agreement in Mexico.

    FX loss (debt related)
    $600,000
    Q2 FY26

    Derived from USD-denominated debt in Peru and Costa Rica as local currencies depreciated.

    Lima Sur sale premium
    18%Above independently appraised carrying value
    Q2 FY26

    Premium realized on the divestment of Lima Sur Park.

    Industry KPIs

    2
    MetricValueDetails
    Leasing revenue growth26.1%%
    Segment operating profit growth27%%

    Orderbook & backlog

    2
    Development pipeline (Parque Logistico Callao)440,000 sq ft GLAQ2 FY26

    92% pre-leased

    Expected to be completed and operational in Q3 and Q4 FY26, contributing $1.3M and $1.6M annual NOI respectively.

    Investment volume under contract (Central Park 57)$200 millionQ2 FY26

    Programmatic purchase agreement over the next 12 to 18 months for stabilized Class A facilities in Greater Mexico City.

    Deals & partnerships

    3
    FIBRA PrimeSale of Lima Sur Park$145 million

    LPA retains an option to repurchase the Park 4 years after closing. Transaction is undergoing regulatory approvals.

    FIBRA PrimeStrategic alliance for Peruvian logistics market

    Aims to further exploit Lima's underpenetrated logistics property market.

    Portland CapitalProgrammatic purchase agreement for Central Park 57 facilities$200 million12 to 18 months

    Facilities located in a key logistics corridor of Greater Mexico City. Financing to come from local debt and equity partners.

    Capital programs

    1
    Parque Logistico Callao Development (Buildings 200 & 400)nearing completion

    Benefit: 440,000 sq ft GLA; $1.3 million annual NOI (Building 200), $1.6 million annual NOI (Building 400)

    Two facilities on budget and on schedule, 92% pre-leased, with development yields of approximately 13%.

    Risks & headwinds

    4
    USMCA trade agreement uncertaintyOngoing

    Affects northern industrial markets like Tijuana and Monterrey

    Mitigation: Prioritizing off-market and proprietary acquisitions in domestically oriented markets, avoiding areas vulnerable to trade policy volatility.

    High interest rates in ColombiaNear-term

    Hindering new development starts

    Mitigation: Waiting for an easing of interest rates; balancing tenant demand with new market rents.

    FX exposure in ColombiaOngoing

    20% of portfolio in Colombian pesos, unhedged, leading to translation effects (e.g., 11% underlying revenue growth vs 29.3% reported)

    Mitigation: Acknowledged; no specific hedging strategy mentioned, rather managed by portfolio design.

    Valuation gap between share price and intrinsic asset valueOngoing

    Intrinsic value net of capital gains tax stood at $8.62 per share at Q2 end

    Mitigation: Increased investor outreach, participation at industry and investor conferences, enhanced digital presence, and new equity coverage.

    What to watch in Q3 FY26

    5

    Lima Sur proceeds receipt

    Q3 FY26
    CurrentUnder regulatory approval
    TargetFirst payment received

    Why it matters

    The receipt of these funds is critical for funding the planned expansion into Mexico.

    We expect to get the first payment in, let's say, the third quarter. I would expect that to be in September before the end of the third quarter.

    Q&A highlights

    7

    Will the 10% average rent per square foot increase seen in Q2 continue into the second half of the year?

    Esteban clarified that the rental rate, excluding FX, would likely stay at similar levels for the second half of the year, as fewer leases or re-leases are scheduled.

    “For the second half of the year, we don't expect that as much trying to eliminate the FX component, because we don't have that many leases or re-leases going on in the back half of the year. So we should expect that to pretty much stay on similar levels.”

    asked by Eric Goldstein · answered by Esteban Gaviria

    2 min read7 chapters

    Detailed Narrative

    01

    Strategic Capital Recycling and Mexico Expansion

    LPA executed a major strategic divestment of its Lima Sur Park in Peru for $145 million, realizing an 18% premium over its appraised value. The net proceeds of approximately $65 million, after debt repayment and taxes, are earmarked for expansion in Mexico. This move is part of a broader strategy to shift the portfolio's center of mass towards Mexico, with a goal for Mexico to represent over 50% of LPA's property portfolio within 2-3 years, leveraging the country's larger and more dynamic industrial real estate market.

    02

    Operational Performance and Market Dynamics

    The company reported robust operational performance, maintaining 100% occupancy across its regional logistics platform. Revenue growth was strong at 26.1% YoY, with Peru and Colombia leading at 50.4% and 29.3% respectively. Same-property NOI grew 14.5%. Average rent per square foot increased 10% to $8.88, reflecting strong demand for Class A facilities and LPA's pricing power.

    03

    Development Pipeline and Yields

    LPA is on schedule with two new facilities at Parque Logistico Callao in Peru, totaling 440,000 square feet of GLA, which are 92% pre-leased. Building 200 is expected to contribute $1.3 million in annual NOI starting Q3, and Building 400, $1.6 million starting Q4, both at attractive development yields of approximately 13%. A fifth building is planned for the same park, with pre-leasing targeted for this year.

    04

    Mexico Growth Strategy and Nearshoring

    The expansion in Mexico includes a programmatic purchase agreement for Central Park 57 Class A facilities, valued at $200 million over 12-18 months, focusing on stabilized assets. LPA aims to deploy capital at cap rates of 8-9%. The company emphasizes Mexico's role as a nearshoring destination, benefiting from supply chain reconfigurations and strong e-commerce trends, as well as the emerging demand from AI and data center infrastructure logistics.

    05

    Foundational Markets and Strategic Alliances

    Despite the Mexico focus, LPA remains committed to its foundational markets of Peru, Colombia, and Costa Rica, where it is a market leader. The strategic alliance with FIBRA Prime in Peru, stemming from the Lima Sur divestment, allows LPA to manage and operate the park, generating fee income and exploring similar transactions. The company also notes improved business sentiment in Peru and Colombia following recent elections.

    06

    Financial Management and G&A

    General and administrative expenses decreased 8.7% to $4.2 million, and management expects G&A to remain relatively flat, leading to significant operating leverage as the platform scales, particularly in Mexico. The bulk of LPA's debt is property-level and does not mature significantly until 2031, providing financial stability. A $600,000 FX loss related to USD-denominated debt in Peru and Costa Rica was noted.

    07

    Investor Relations and Valuation

    LPA is increasing investor outreach and participation in conferences, and has secured new equity coverage from BTG Pactual, Water Tower, and Sidoti, aiming to close the valuation gap between its share price and intrinsic asset value ($8.62 per share at Q2 end). Management views the Lima Sur sale premium as evidence of the underlying value of its assets and operating platform.

    AI-generated summary of the company’s earnings call. Not investment advice.