Logistic Properties of the Americas Signals Strong Momentum

Logistic Properties Of The Americas ((LPA)) has held its Q4 earnings call. Read on for the main highlights of the call.

Logistic Properties of the Americas struck an upbeat tone on its latest earnings call, underscoring robust growth across most metrics despite some valuation and cost headwinds. Management highlighted double‑digit revenue and NOI gains, full portfolio occupancy, and strong pricing power, while acknowledging share‑price weakness and Mexico‑related policy risks that have yet to catch up with the company’s operating momentum.

Revenue Growth Accelerates Across the Portfolio

Consolidated revenue climbed 14.3% in 2025 to $50.1 million, with fourth‑quarter revenue surging 23.3% year over year. The step‑up was driven mainly by Peru, where revenue rose 31%, and Colombia, which delivered 14.8% growth, underscoring the strength of core Andean operations.

NOI and Cash NOI Deliver Double‑Digit Expansion

Net operating income increased 29.8% in the fourth quarter and 11.9% for full‑year 2025, outpacing revenue growth as assets scaled and leasing improved. Cash NOI also moved higher by 12.4% to $40.3 million, signaling that underlying cash generation is tracking strongly alongside accounting measures.

Full Occupancy Underscores Leasing Momentum

The operating portfolio reached 100% occupancy by quarter‑end, with leased gross leasable area up 6.3% to nearly 6 million square feet. Notable wins included PepsiCo’s 254,000‑square‑foot LEED Gold facility in Parque Logístico Callao and a 97,000‑square‑foot lease in Bogotá to PriceSmart, adding a cross‑border retailer to the tenant base.

Development Pipeline Supports Portfolio Expansion

Operating GLA increased about 13.3% to roughly 5.8 million square feet across 34 properties, reflecting both acquisitions and development. The pipeline remains active, with Building 200 of around 224,000 square feet and an on‑time, on‑budget 215,000‑square‑foot building at Parque Logístico Callao, while management targets attractive development yields near 13%.

Mexico Partnership Extends Growth Runway

A strategic master forward purchase agreement with Fortem Capital, totaling about $200 million over time, anchors the company’s push into Mexico. Through this structure, Logistic Properties expects to acquire Central Park 57, roughly 2.1 million square feet across eight buildings, providing line of sight to a 36% GLA increase versus year‑end 2025 via stabilized, dollar‑denominated Class A assets.

Rental Rate Gains Highlight Pricing Power

Average rent per square foot rose 11% to $8.65, helped by favorable foreign‑exchange moves but also by firm demand in key logistics markets. Management emphasized embedded rental upside as in‑place leases roll to market and as new, largely pre‑leased developments are delivered at higher rental levels.

Financing Costs Ease and Leverage Improves

Financing costs fell 7.9% to $20.8 million, supported by lower interest rates and capitalization of development interest, which reduced pressure on earnings. Leverage also improved, with net debt to investment properties down 150 basis points to 40.2% and no major near‑term maturities, giving the company flexibility to fund further expansion.

Share Price Lag Seen as Valuation Dislocation

Management openly addressed the stock’s underperformance following the expiration of its go‑public lock‑up in September, describing the current valuation as a significant disconnect from fundamentals. With book value per share at $8.12 at year‑end 2025, the team pledged more proactive investor engagement to close what it views as an unwarranted gap.

Softer Investment Property Revaluation

Investment property valuation gains declined by $11.7 million, or 36.2%, to $20.6 million in 2025, mainly due to a smaller uplift at Parque Logístico Callao compared with the prior year. While still positive, the lower revaluation reduced the non‑cash boost to earnings that had benefited previous periods.

Operating and SG&A Costs Creep Higher

Operating expenses increased 16.8% to $1.2 million, reflecting higher real estate taxes, maintenance and repair costs, larger credit loss provisions, and land lease charges. SG&A spending grew 7.1% to $16.7 million, driven by additional hiring, salary adjustments, Colombia’s alternative minimum tax, and rebranding and digital marketing efforts.

Mexico Opportunity Balanced by Policy Risk

The company framed Mexico as a major growth vector but flagged exposure to evolving tariff regimes and USMCA‑related negotiations as a key risk. To mitigate potential volatility, management is focusing on resilient, domestically oriented submarkets while closely tracking future trade and tariff policy developments.

Costa Rica Growth Trails the Rest of the Region

Not all markets contributed equally, with Costa Rica revenue rising just under 1% for the year and lagging stronger showings elsewhere. The slower performance highlights ongoing regional variability and suggests management may reassess capital allocation or leasing strategies in that market.

Guidance Points to Continued NOI and GLA Expansion

Looking to 2026, management expects to carry strong NOI momentum into the new year, starting from a base of 100% occupancy and meaningful rental growth as leases reprice to market. New projects, including Building 200, a shovel‑ready 210,000‑square‑foot pad, and the fourth 215,000‑square‑foot building at Parque Logístico Callao, plus the Fortem‑backed Central Park 57 acquisition and 13% targeted Peru development yields, are set to expand GLA and build on 2025’s solid revenue and cash NOI metrics with support from a healthier balance sheet.

Logistic Properties of the Americas used its earnings call to underscore a clear growth story grounded in higher rents, full occupancy, and an expanding development and acquisition pipeline. While rising costs, softer revaluation gains, and Mexico‑related macro risks remain watchpoints, management’s confidence in its operating trajectory and capital position suggests the company is well positioned for further scale and potential re‑rating by investors.