Logistic Properties of the Americas Reports 2024 Earnings
Company Overview Logistic Properties of the Americas (NYSE American: LPA), along with its subsidiaries, has released its audited consolidated financial results for the fiscal year ending December 31, 2024 (“FY24”). The results, expressed in U.S. dollars, are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). These standards differ from the U.S. Generally Accepted Accounting Principles (GAAP). Investors and stakeholders are encouraged to review the company’s audited financial statements for further details.
LPA specializes in developing, owning, acquiring, and managing logistics and industrial real estate across the Americas. The company operates as an internally managed, vertically integrated platform, making it one of the leading institutional players in the region.
FY24 Financial and Operating Highlights
- Revenue Growth: LPA reported an 11.2% increase in revenue, reaching $43.8 million. This growth was driven by an additional $3.6 million in rental income from newly stabilized buildings and a $1.9 million increase from higher rental rates. However, revenue was partially offset by the sale of a Colombian property in November 2023 ($0.9 million impact) and $0.8 million in vacancy-related revenue declines.
- Net Operating Income (NOI): NOI rose by 7.1% to $36.6 million, while Same-Property Cash NOI grew by 5.0% to $33.9 million due to rental growth and expiration of abatements.
- Portfolio Occupancy: As of December 31, 2024, occupancy stood at 98.3%, slightly down from 100% in 2023. Notable lease agreements were signed with Porsche and DSV (125,282 sq. ft.) in Colombia and Scharff International Courier & Cargo and Signia Soluciones Logisticas (92,537 sq. ft.) in Peru.
- General & Administrative Expenses: These costs increased by 83.6% to $15.6 million due to compliance costs from becoming a public company, the implementation of a Restricted Stock Unit compensation plan, and increased staffing expenses.
- Share Repurchase Program: In Q4 2024, LPA repurchased $0.9 million in shares as part of a $10.0 million repurchase program running through November 2025.
Key Developments in Early 2025
- 100% Occupancy Achieved: On March 3, 2025, LPA reached full occupancy after signing a lease for 71,580 sq. ft. at Parque Logistico Lima Sur in Peru with a global third-party logistics provider, making this company LPA’s largest tenant.
- New Loan Agreement: On March 6, 2025, LPA secured a $25.0 million loan from BBVA Peru to fund warehouse construction in Lima, Peru.
- Additional Share Repurchases: The company repurchased another $0.8 million in shares in Q1 2025, bringing the total buyback to $2.1 million.
CEO Commentary
LPA’s CEO, Esteban Saldarriaga, emphasized the company’s strong performance and growth trajectory. Since its public listing, LPA has enhanced its brand, gained better access to capital, and expanded its regional footprint to meet increasing demand for high-quality logistics facilities.
Key strategic initiatives include:
- A disciplined approach to leasing, allowing LPA to capitalize on market demand and secure high-value tenants such as Porsche and DSV.
- Achieving 100% occupancy and increasing leased GLA by 6.2% to 5.6 million sq. ft. by the end of 2024.
- A cautious yet opportunistic outlook on the Mexican nearshoring sector, where LPA sees selective opportunities in logistics.
- Expanding within foundational markets (Costa Rica, Colombia, and Peru) that are less exposed to global trade risks and continue to see growing local demand.
- A commitment to enhancing shareholder value through share repurchases, with $1.3 million bought back in Q4 2024 and an additional $0.8 million in Q1 2025.
Saldarriaga reaffirmed LPA’s long-term strategy of scaling operations to build a stronger and more profitable company, leveraging its experienced leadership team and robust operational foundation.
Real Estate Portfolio Overview
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Operating Properties | 30 | 28 | 24 |
| Operating GLA (sq. ft.) | 5,121,625 | 4,619,616 | 4,037,886 |
| Leased GLA (sq. ft.) | 5,637,044 | 5,308,454 | 4,820,273 |
| Number of Tenants | 57 | 53 | 51 |
| Average Rent per Sq. Ft. | $7.79 | $7.80 | $6.88 |
| Weighted Avg. Lease Term | 5.1 years | 5.3 years | 6.2 years |
| Stabilized Occupancy | 98.3% | 100.0% | 99.6% |
Financial Performance Overview
Revenue by Region (in $000s)
| Region | 2024 | 2023 | % Change |
| Colombia | 8,702 | 8,038 | 8.3% |
| Peru | 10,926 | 9,260 | 18.0% |
| Costa Rica | 23,953 | 22,029 | 8.7% |
| Unallocated | 281 | 109 | 158.9% |
| Total | 43,862 | 39,436 | 11.2% |
Investment Property Operating Expenses (in $000s)
| Region | 2024 | 2023 | % Change |
| Colombia | (1,114) | (989) | 12.6% |
| Peru | (2,664) | (1,476) | 80.5% |
| Costa Rica | (3,197) | (2,678) | 19.4% |
| Total | (6,975) | (5,143) | 35.6% |
