Logistic Properties of the Americas Q1 FY2026 earnings call

• Core Business Model & Q1 2026 Performance

  • LPA delivered accelerating growth from 2025 momentum, with strong operating leverage from its scaling cross-border logistics platform, which maintained 100% occupancy in the quarter
  • The company benefits from sustained, unmet demand for modern Class A logistics facilities in its target markets, supported by resilient domestic consumption, e-commerce growth, and regional supply chain nearshoring trends
  • LPA's core competitive advantage is its ability to deliver multi-market cross-border logistics solutions to global blue-chip customers across its four operating markets

• Mexico Expansion Strategy

  • LPA completed its first investment in Mexico (two facilities in Puebla), a key growth market that enables cross-selling to existing global customers and access to new market opportunities
  • Entered a strategic partnership with Fordham Capital to acquire ~$200 million of stabilized dollar-denominated Class A assets in Central Park 57 (near Mexico City) over time, with initial acquisitions closing in Q2 and Q3 2026. Central Park 57 equals 36% of LPA's current operating GLA, and the partnership mitigates typical greenfield development and stabilization risk
  • LPA is targeting consumer-driven, not export-focused, submarkets in Mexico, and is seeing growing demand for facilities from companies in the AI infrastructure supply chain, aerospace, defense, and electronics manufacturing. The company prioritizes dollar-denominated assets and blue-chip global tenants, with a current focus on central Mexico
  • Acquisitions will be funded via a combination of debt, local equity partners, and capital recycling from divestment of mature stabilized assets in LPA's existing foundational markets (Colombia, Peru, Costa Rica)

• Development Pipeline

  • Two facilities at Cajal Logistics Park (Peru) are under construction, with 92% of the combined 440,000 square feet already pre-leased, expected to be completed in Q2 and Q3 2026, and generate ~$3.2 million in annualized revenue
  • One remaining shovel-ready pad (210,000 square feet) is available for development at Cajal Logistics Park, expected to be pre-leased in 2026 at ~13% yields, supported by ongoing supply constraints

• Share Price Valuation Gap Initiatives

  • Management shares shareholder frustration over the large dislocation between LPA's share price and its Q1 2026 book value of ~$8 per share, despite consistent strong financial performance
  • LPA is actively engaging equity research analysts to initiate coverage, and already has one new coverage initiation completed, to improve market visibility, broaden investor understanding of LPA's differentiated business model, and close the valuation gap

1. Peru: Revenue increased 39.9% year-over-year, driven by incremental leasing activity and higher stabilized occupancy, including the PepsiCo LEED Gold facility at Callao Logistics Park. This segment was the top growth contributor for the quarter.
2. Colombia: Rental revenue grew 24.8% year-over-year, 8.3% after excluding favorable Colombian peso FX impacts, reaching 2.6 million USD. Growth came from releasing at higher mark-to-market rates and contractual CPI-linked rent escalations. FX appreciation accounted for a large portion of the nominal revenue increase.
3. Costa Rica: Revenue grew 3.3% year-over-year, driven by releasing, lease renewals, and higher rental rates. The segment maintains 100% occupancy, with double-digit mark-to-market rent spreads on recent renewals, and currently makes up ~45% of LPA's total portfolio.
4. Mexico: Contributed to Q1 2026 revenue following the acquisition of two logistics facilities in Puebla (LPA's first entry into the market). Upcoming acquisitions of Central Park 57 assets (expected to close in H2 2026) will make Mexico an increasingly large contributor to future revenue and NOI growth.

Aggregate platform performance: Total revenue grew 21.6% year-over-year, net operating income (NOI) grew 28.6% to 11.7 million USD (24.4% after excluding FX impacts). Same property NOI rose 10.9%, average rent per square foot increased 9.8% to $8.74. Operating expenses decreased 4.1% to 2.2 million USD, G&A expenses increased 13.3% to 4 million USD, financing costs increased 12% to 5.9 million USD. Total operating GLA increased 9.7% year-over-year to 5.8 million square feet, which remained 100% occupied in Q1 2026.

• LPA expects to complete relevant acquisition deployments in Mexico before the end of 2026, with additional selective development activity where strong demand from global and regional companies exists
• Capital will be increasingly reallocated from mature foundational markets to Mexico, where management expects to earn higher risk-adjusted returns than are available from fully stabilized mature assets in existing markets
• The pre-leasing of the fifth remaining development pad at Cajal Logistics Park (Peru) is expected to occur in 2026, at expected yields of approximately 13%
• Growth in Costa Rica will be limited and selective moving forward, with most new capital investment redirected to Mexico; future growth in Costa Rica will likely come from third-party joint ventures to preserve capital for Mexico expansion
• Management expects ongoing momentum in revenue and profitability growth for the full year 2026, as rental growth materializes and new development properties come online
• Management is confident that ongoing strong execution will lead public markets to close the gap between LPA's share price and its fundamental value over time

• Uncertainty around the outcome of upcoming USMCA negotiations, which may impact Mexico's industrial logistics market dynamics; LPA has not yet deployed capital in correction-impacted northern Mexico markets and is maintaining caution while monitoring developments
• A one-time emergency tax levied by the Colombian government negatively impacted Q1 2026 G&A expenses; the tax is currently under judicial review at the Colombian Supreme Court, with an uncertain outcome
• Upcoming national election cycles in Colombia and Peru create some near-term policy and market uncertainty
• The ongoing conflict in the Middle East creates potential economic fallout, particularly via impacts on global interest rates
• LPA faces a liquidity and visibility discount on its shares, leading to a large gap between market price and underlying book/fundamental value
• Valuation adjustments in Q1 2026 reflected evolving market and underwriting assumptions for Colombian assets, which could lead to further valuation volatility if market conditions continue to change

Q: What is LPA's near- to medium-term growth outlook for Mexico between acquisitions and development, and which submarkets are most attractive?

A: Management views Mexico as a major long-term growth market, and expects to complete relevant acquisition deployments before year-end 2026, starting with the agreed forward purchase of Central Park 57 assets. The company is selectively pursuing additional operating asset acquisitions to accelerate entry, focusing on central Mexico (Mexico City outskirts) to prioritize dollar-denominated assets and blue-chip global cross-border customers. Management is cautiously evaluating opportunities in dislocated northern Mexican markets, but will hold off on major deployments until USMCA negotiation outcomes are clearer.

Q: How does LPA select assets for capital recycling, and what return expectations drive divestments?

A: LPA targets mature, stabilized assets that were developed from the ground up by the company, which have already accrued significant value during the holding period. Most candidate assets are in the foundational markets of Colombia and Peru, where the assets were developed at 11-12% yields and can now be monetized at 7-8% yields. The freed-up capital will be reallocated to Mexico, where management can earn higher risk-adjusted returns and improve platform diversification. Near-term election cycles in Colombia and Peru do not reduce management confidence in the ability to monetize these optimized assets.

Q: What caused the Q1 2026 valuation loss, and should investors expect similar impacts through the rest of 2026?

A: The largest component of the valuation loss was a downward adjustment to Colombian assets, driven by changes to Colombia's fiscal and economic landscape that changed the company's underwriting assumptions. The remaining portion of the loss came from the stabilization of the Callao Logistics Park development in Peru, where most development-related appreciation was already recognized in 2025. On an aggregate balance sheet level, the net impact of these adjustments is muted, and no material overall change to total asset valuation from the prior year occurred.

Q: Will LPA consider available assets from Terafina (held for sale) in Mexico, and what is the company's acquisition strategy for the market?

A: LPA continuously canvasses the Mexican market and will evaluate any relevant opportunity, including assets from Terafina. The company prioritizes off-market proprietary deals sourced through its local relationship network, and prefers partnering to access favorable valuations, rather than competing in crowded public processes. Management expects more assets will become available as market consolidation progresses, creating additional opportunities for LPA.