Logistic Properties of the Americas Q2 FY2026 earnings call

Financial Performance Highlights

• LPA maintained 100% occupancy across its entire regional logistics platform, outperforming peer operators.
• Average rent per square foot increased 10% year-over-year to $8.88, driven by positive mark-to-market lease spreads on renewals and re-leasing.
• General and administrative (G&A) expenses decreased 8.7% year-over-year to $4.2 million, driven by lower reporting and legal costs. Management expects operating leverage on G&A to improve as the platform scales.
• An investment property gain of $20 million was recorded in the quarter, versus a $257,400 valuation loss in the year-ago period. Most of the gain came from the Lima Sur Park divestment, with a smaller $3.2 million gain from ongoing development at Callao.

Strategic Milestone: Lima Sur Park Divestment

• LPA divested its stabilized Lima Sur Park in Peru for $145 million at a 7% in-place cap rate, 18% above the asset's independently appraised carrying value.
• Net proceeds after debt repayment and capital gains taxes are approximately $65 million, which will be nearly entirely allocated to expansion of LPA's footprint in Mexico.
• LPA retained operational management of the park, generating ongoing recurring fee income, and holds a 4-year repurchase option on the asset.
• The transaction launched a strategic alliance with buyer Fiuda Prime (a leading Peruvian REIT) that combines LPA's development/operational expertise with Fiuda Prime's institutional capital to pursue additional logistics projects in Peru.
• This divestment is the first of several planned monetizations of mature stabilized assets, creating a virtuous cycle of value creation via reinvestment in higher-return opportunities and shifting LPA to a more capital-efficient business model.

Mexico Expansion Strategy

• LPA is shifting its portfolio center of gravity to Mexico to access the country's large, dynamic industrial logistics market, leverage nearshoring and e-commerce demand tailwinds, and further diversify its geographic and tenant base.
• Net proceeds from Lima Sur will fund the first acquisitions under a $200 million programmatic purchase agreement for Class A Central Park 57 facilities in the key Mexico City greater area logistics corridor, which are already stabilized, eliminating development/leasing risk. The 2.1 million square foot portfolio represents ~34% of LPA's current total GLA.
• Management expects Mexico will hold more than 50% of LPA's total portfolio within 2-3 years, with a $1 billion pipeline of opportunities in key logistics corridors. LPA targets 8-9% cap rates for Mexican investments, prioritizes off-market proprietary transactions, and focuses on domestically oriented assets to avoid trade policy volatility in northern Mexican border markets.
• Structural demand drivers for Mexican logistics include nearshoring trends from U.S. tariffs on Chinese goods, sustained e-commerce growth, expanding domestic consumption from a growing middle class, and incremental demand from AI data center supply chain development.

Foundational Market Updates (Peru, Colombia, Costa Rica)

• LPA remains committed to its foundational markets, which are expected to remain consistent sources of value due to constrained supply of modern Class A logistics space and benefit from regional supply chain shifts.
• New business-friendly administrations in Peru and Colombia have immediately improved business sentiment, unlocked pent-up demand, and strengthened domestic consumption trends.
• Two development projects adding 440,000 square feet of GLA at Parque Logístico Callao (Peru) are 92% pre-leased, on budget and on schedule. Building 200 will deliver in Q3 2026 with $1.3 million of annual NOI, and Building 400 will deliver in Q4 2026 with $1.6 million of annual NOI, for a 13% development yield. A fifth pre-leasable shovel-ready pad remains for future development.

Valuation and Investor Outreach

• LPA's net intrinsic book value per share was $8.62 at quarter-end, up 16% year-over-year and 8.2% sequentially. Management notes this excludes the value of its operating platform, highlighting a large dislocation between current share price and underlying asset value.
• Three new firms (BTG Pactual, Watertower, Sidoti) have recently initiated equity coverage of LPA, expanding institutional investor reach and improving market visibility. LPA has also stepped up investor outreach and digital engagement to close the valuation gap, which has already improved trading liquidity.

LPA operates across four geographic segments, with overall second quarter 2026 total revenue growing 26.1% year-over-year and total net operating income (NOI) growing 27% to $12.2 million. Same property NOI increased 14.5% year-over-year to $9.6 million.

• Peru: Rental revenue increased 50.4% year-over-year, contributing the largest share of overall top-line growth. Growth was driven by PepsiCo's occupancy of a new facility, rapid leasing of existing space at above-market rates, and positive lease spreads.
• Colombia: Rental revenue increased 29.3% year-over-year (11% when excluding positive currency translation effects from the appreciating Colombian peso). Growth was driven by re-leasing of Calle 80 space to a major U.S. retailer and contractual inflation adjustments. Colombian leases are denominated in local currency, unlike most other markets where leases are U.S. dollar-denominated.
• Costa Rica: Rental revenue increased 5.6% year-over-year, reflecting a fully stabilized portfolio. Growth came from higher mark-to-market rents on re-leasing, expansions, and renewals. A tax reassessment of LPA's La Verbena Park drove higher real estate expenses in the quarter.
• Mexico: Rental contributions came from facilities acquired in the second half of 2025, adding to overall top-line growth. LPA's total gross leasable area (GLA) across all segments reached 6.2 million square feet at the end of the quarter.

• Management expects 10% YoY average rent growth will not repeat in the second half of 2026, due to a lower volume of lease renewals and re-leasing scheduled for the back half of the year, and rental rates are expected to remain at current levels.
• Net proceeds from the Lima Sur Park divestment are expected to close and the bulk of cash to be received by the end of Q3 2026 (with a small potential delay to October), available for immediate deployment into Mexican acquisitions.
• LPA expects to grow Mexico's share of its total portfolio to over 50% within 2-3 years based on the current opportunity set.
• Management targets capital deployment in Mexico at cap rates of 8-9%, varying by asset and tenant quality.
• LPA expects to maintain strong organic growth momentum through the second half of 2026, driven by embedded rental lease spreads and newly developed facilities coming online.

• Uncertainty surrounding the unresolved USMCA trade agreement creates volatility for demand and asset values in northern Mexican industrial markets, which LPA is avoiding by prioritizing domestically focused assets in central Mexico.
• High local interest rates in Colombia are delaying development progress on pre-permitted shovel-ready land holdings, despite strong pent-up tenant demand.
• Currency translation volatility exists for Colombia, where 20% of LPA's portfolio is denominated in Colombian pesos and LPA does not hedge this exposure. USD-denominated debt in markets with appreciating local currencies creates periodic FX losses that offset translation gains on assets.
• LPA's current G&A expense ratio is higher than peer U.S. public real estate companies, requiring scale and incremental growth to dilute the expense over a larger asset base.
• Most of LPA's debt matures starting in 2031, so near-term refinancing risk is limited but interest rate volatility affects financing costs for new development and acquisitions.

Q: Average rent per square foot rose 10% YoY in Q2 2026. What should be expected for rental growth in the second half of 2026? / A: Management does not expect 10% rental growth to continue in the back half of the year, after removing FX effects. There are far fewer lease renewals and re-leasing events scheduled for H2 2026, so average rental rates are expected to stabilize near current Q2 levels. (191 characters)

Q: You note Mexican industrial consolidation is creating acquisition opportunities. How does this dynamic work for LPA? / A: Large recent consolidations (such as Prologis/Terrapina and Fiura group mergers) will lead the merged firms to prune their combined portfolios of smaller, non-core assets. These mid-sized assets ($70M-$150M) in high-demand submarkets are exactly what LPA targets, as they are too small to interest large competitors, leaving a clear opening for LPA to acquire high-quality properties. (276 characters)

Q: New business-friendly administrations in Peru and Colombia change your capital allocation priorities, or will Mexico still be the primary focus? / A: Mexico will remain LPA's primary growth focus due to the market's larger scale, more attractive risk-adjusted returns, and broader opportunities for U.S. dollar-denominated assets. The new administrations have improved sentiment, unlocked pent-up demand, and made these markets more attractive, but LPA will focus on raising local equity to fund growth there to keep the balance sheet tilted towards Mexico. (302 characters)

Q: What drove the 18% premium to appraised value on the Lima Sur Park sale, and was this higher than expected? / A: The premium was within management's expected range, driven by extremely limited supply of high-quality Class A logistics assets in Peruvian markets, and a portfolio premium for LPA's well-occupied, high-quality, stabilized park. The result reflects the underlying quality of LPA's developed assets and tenant base, and while such a premium is not expected for every future sale, it demonstrates the market value of LPA's portfolio. (312 characters)

Q: Under what conditions will you exercise the 4-year repurchase option for Lima Sur Park? / A: Management retains the option to scale up the Peruvian portfolio when favorable, and will base the decision on future capital availability, the state of the real estate cycle in Peru in four years, and overall portfolio balance. LPA does not need to use full balance sheet capital to repurchase; it can align with local institutional capital, and the option itself adds significant value regardless of whether it is ultimately exercised. (311 characters)