Logistic Properties Of The Americas ((LPA)) has held its Q3 earnings call. Read on for the main highlights of the call.
Claim 70% Off TipRanks This Holiday Season
- Unlock hedge-fund level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Logistic Properties Of The Americas (LPA) recently held its earnings call, revealing a robust performance marked by significant revenue growth and successful expansion efforts. The company reported high occupancy rates, although it also acknowledged challenges such as stock price pressure and evolving tariff policies in Mexico. Overall, the positive aspects, particularly the expansion and growth metrics, outweighed the challenges, painting an optimistic picture for the future.
Mid-Teen Revenue Growth
The international logistics platform of LPA delivered impressive mid-teen revenue growth, primarily driven by strong performances in Peru and Colombia. The company reported a 14.3% increase in revenue for the third quarter, showcasing its ability to capitalize on opportunities in these markets.
Mexico Expansion
LPA’s expansion into Mexico significantly contributed to its revenue increase. The acquisition of two logistics facilities in Puebla marked the beginning of what is expected to be a series of investments in this promising market, highlighting the company’s strategic focus on growth in the region.
High Occupancy Levels
The company ended the quarter with an impressive 98% of its gross leasable area (GLA) under contract. This high occupancy rate underscores the strength of LPA’s market position and its solid relationships with customers.
Decreased SG&A Costs
LPA successfully reduced its selling, general, and administrative (SG&A) costs by 5% year-over-year. This reduction has contributed to meaningful operating leverage, enhancing the company’s overall financial efficiency.
NOI Growth
The third quarter saw LPA’s net operating income (NOI) increase by 8.7% to $10.4 million. Over the first nine months of 2025, the cumulative NOI growth reached 6.2%, totaling $29.4 million, reflecting the company’s strong operational performance.
Stock Price Pressure
Despite strengthening fundamentals, LPA’s stock has faced notable pressure since the expiration of the 18-month lockup period. This pressure highlights a disconnect between the company’s financial performance and its stock market valuation.
Evolving Tariff Policies in Mexico
Uncertainty persists due to evolving tariff policies in Mexico, although recent data indicates some positive trends. This situation presents both challenges and opportunities for LPA as it navigates the regulatory landscape.
Costa Rica Revenue Decline
The company reported a 1.5% decrease in rental revenue from Costa Rica during the quarter. This decline contrasts with the overall positive performance in other regions, indicating a need for strategic adjustments in this market.
Forward-Looking Guidance
Looking ahead, LPA anticipates sustained double-digit revenue growth as it continues to expand its property portfolio and leverage strategic partnerships and acquisitions in Mexico. The company remains optimistic about maintaining high occupancy rates and further enhancing its financial metrics.
In summary, the earnings call for Logistic Properties Of The Americas highlighted a strong performance with significant growth and expansion achievements. While challenges such as stock price pressure and tariff uncertainties in Mexico were noted, the overall sentiment was positive, emphasizing the company’s strategic direction and growth potential.