Q2 2026 Logistic Properties of The Americas Earnings Call Transcript
Key Points
- Occupancy remained at 100% across the regional logistics platform, outperforming peers.
- Revenue accelerated 26.1% year-over-year, with strong growth in Peru (50.4%) and Colombia (29.3%).
- NOI increased 27% year-over-year, with same-property NOI up 14.5%.
- Average rent per square foot rose 10% year-over-year, reflecting strong pricing power.
- Divestment of Lima Sur Park at an 18% premium to appraised value, with proceeds to be redeployed into higher-return Mexican assets.
- Development pipeline in Peru is 92% pre-leased, with expected development yields of approximately 13%.
- New fee income stream from managing Lima Sur Park for Fiuda Prime, with potential for more such agreements.
- G&A expenses decreased 8.7% year-over-year, indicating improving operating leverage.
- Three new equity research firms initiated coverage, enhancing market visibility.
- Strategic alliance with Fiuda Prime provides optionality to repurchase the sold park in four years.
- Operating expenses increased 27% year-over-year, driven by new facility operations, higher real estate taxes, and one-time costs.
- Financing costs rose 1.8% due to higher debt balances and interest rates related to development projects.
- Colombian peso exposure remains unhedged, leading to potential translation and FX losses.
- Uncertainty surrounding USMCA trade agreement could impact demand in northern Mexican markets.
- Demand levels in Mexico's industrial real estate sector are lower thus far in 2026 compared to the previous year.
- The company faces high G&A expenses relative to public U.S. REITs, though efforts are underway to rationalize them.
- Development in Colombia is delayed due to high interest rates and tenants adjusting to new market rents.
- The sale of Lima Sur Park is subject to regulatory approvals and may close later than expected.
- The company's share price remains dislocated from book value, indicating a valuation gap.
- Potential future asset sales could reduce the company's presence in foundational markets, though it remains committed to them.
Good morning, and welcome to LPA's first quarter 2026 earnings conference call.
(Operator Instructions)
Mr. Camilo Ulloa, Head of Investor Relations.
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Welcome to LPA's second-quarter 2026 earnings conference call. My name is Camilo Joa with LPA's Investor Relations team. Joining me on today's call are Esteban Saldarriaga, our Chief Executive Officer, and Paul Smith, Chief Financial Officer. Before we proceed with our review of LPA's financial and operating results. Please note that the information presented during this call is intended for informational purposes only and does not constitute an offer to buy or sell any securities. Forward-looking statements made during this call are subject to a number of risks and uncertainties, which are discussed in LPA's filings with the SEC. Our actual results, performance, and prospective opportunities may differ materially from those expressed or implied in these statements.
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