Logistic Properties of the Americas Announces Second Quarter 2024 Earnings Results
Yearly Revenue Growth of
SAN JOSÉ,
2Q24 Financial and Operating Highlights
-
Operating portfolio occupancy ended 2Q24 at
94.6% , due to expected lease expirations inColombia andPeru . -
Average rent per square foot increased
11.3% YoY to in 2Q24 from$ 7.87 in 2Q23 and is in line with embedded automatic escalators that the company has in its contracts.$ 7.07 -
Revenue increased
10.0% to in 2Q24, primarily due to increases of$11.0 million 20.7% inPeru and9.3% inCosta Rica , more than offsetting a2.3% decline inColombia primarily attributable to the sale of a building during the fourth quarter of 2023. -
Net Operating Income (NOI) increased
6.2% to in 2Q24 from$ 9.2 million in 2Q23, and Same-Property Cash NOI Increased$8.7 million 8.5% during the same period. -
Net Earnings Attributable to Owners of the Company reached
, compared with a Net Loss of$9.9 million in 2Q23. Earnings per Share Attributable to Owners of the Company-basic and diluted of$4.8 million , up from a loss of$ 0.31 in 2Q23.$0.17 -
In April 2024, the Company refinanced secured loans of
with BAC Credomatic, S.A. with a new secured facility of$46.6 million with the same lender, to continue financing the development of the La Verbena Logistics Park in$60.0 million Costa Rica . The new secured facility bears a lower interest rate (from 378 bps to 200 bps above SOFR) and extends the maturity date from July 2031 to April 2039.
Subsequent Events
- On July 15, 2024, LPA announced that Françoise Lavertu and Javier Marquina had been appointed as independent directors, augmenting the Company’s board to a total of seven members and the number of independent directors to six.
CEO Commentary
LPA’s portfolio of operating assets delivered a solid performance in the second quarter of 2024, driven by favorable underlying market trends and leasing dynamics. Revenues increased
The quarter also brought unexpected fee income obtained from releasing certain shareholders from lock-up agreements when LPA’s share price activity warranted these releases. The cash benefit bolsters our funding toward expanding LPA’s portfolio.
Our operating GLA increased
Our finance team continues to identify ways to increase LPA’s capital efficiency. In April, we successfully refinanced the
To conclude, we believe our future remains bright, and LPA is only in its early stages. Based on our strong track record of success, we intend to continue focusing on delivering world-class products and capital solutions for our tenants, and investing patiently, all while maintaining a high level of operational excellence.
Esteban Saldarriaga
Chief Executive Officer
Real Estate Portfolio
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Real Estate Portfolio |
||||||
|
|
As of June 30, 2024 |
As of December 31, 2023 |
As of June 30, 2023 |
|||
Number of operating real estate properties |
29 |
28 |
28 |
||||
Operating GLA (sq. ft) |
4,965,171 |
4,618,806 |
4,615,743 |
||||
Leased area (sq. ft) |
4,996,538 |
5,308,454 |
4,681,774 |
||||
Number of tenants |
50 |
53 |
53 |
||||
Average rent per square foot |
7.87 |
7.80 |
7.07 |
||||
Weighted average remaining lease term |
5.3 years |
5.3 years |
5.1 years |
||||
Stabilized occupancy rate (% of GLA) |
|
|
|
|
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Financial Performance
Revenues
(amounts expressed in thousand dollars, unless otherwise noted)
Three- months ended June 30 |
|||||
|
2024 |
|
2023 |
|
% Chg. |
Rental revenue |
|||||
|
2,019 |
2,067 |
- |
||
|
2,935 |
2,433 |
|
||
|
5,993 |
5,482 |
|
||
Unallocated revenue |
40 |
8 |
|
||
Total revenue |
10,987 |
|
9,990 |
|
|
Investment Property Operating Expenses
(amounts expressed in thousand dollars, unless otherwise noted)
Three- months ended June 30 |
|||||
|
2024 |
|
2023 |
|
% Chg. |
Investment property operating expense |
|||||
|
-291 |
-259 |
|
||
|
-545 |
-483 |
|
||
|
-872 |
-541 |
|
||
Total Investment Property Operating expense |
-1,708 |
|
-1,283 |
|
|
Operating Performance
(amounts expressed in thousand dollars, unless otherwise noted)
Three- months ended June 30 |
|||||
|
2024 |
|
2023 |
|
% Chg. |
Total revenues |
10,987 |
9,990 |
|
||
Total investment property operating expense |
-1,708 |
-1,283 |
|
||
General and administrative |
-4,557 |
-1,076 |
|
||
Investment property valuation gain |
4,551 |
305 |
NM |
||
Interest income from affiliates |
0 |
158 |
- |
||
Financing costs |
-5,809 |
-12,135 |
- |
||
Net foreign currency (loss) gain |
-158 |
64 |
- |
||
Gain on sale of asset held for sale |
0.0 |
1,023 |
- |
||
Other income |
10,838 |
53 |
NM |
||
Other expenses |
-1,172 |
-54 |
NM |
||
Profit (loss) before taxes |
12,971 |
-2,955 |
NM |
||
Income tax expense |
-539 |
-1,808 |
- |
||
PROFIT(LOSS) FOR THE PERIOD |
12,432 |
|
-4,763 |
|
NM |
NM- not meaningful |
|
|
|
|
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Supplemental Information
Please refer to LPA’s quarterly Supplemental Information and Management Discussion and Analysis, available on the Company’s Investor Relations website at https://ir.lpamericas.com
2Q24 Earnings Conference Call
When: 9:00 a.m. Eastern Time, August 15, 2024
Who: Mr. Thomas McDonald, Chairman of the Board, Mr. Esteban Saldarriaga, Chief Executive Officer, Mr. Paul Smith, Chief Financial Officer, Ms. Annette Fernandez, Chief Operating Officer, Ms. Juliana Dominguez, Investor Relations
Dial-in: 1 800 715 9871 (
Passcode: 7886580
Pre-Register: You may pre-register at any time: click here. To access LPA’s financial results call via telephone, callers need to press # to be connected to an operator.
Webcast: click here
The call recording will also be available for replay on LPA’s website for a limited time.
About Logistic Properties of the
Logistic Properties of the
Forward-Looking Statements
This press release contains certain forward-looking information, which may not be included in future public filings or investor guidance. The inclusion of forward-looking information in this press release should not be construed as a commitment by LPA to provide guidance on such information in the future. Certain statements in this press release may be considered forward-looking statements within the meaning of the
These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by LPA and its management, are inherently uncertain and are inherently subject to risks variability and contingencies, many of which are beyond LPA’s control. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (i) the possibility of any economic slowdown or downturn in real estate asset values or leasing activity or in the geographic markets where LPA operates; (ii) LPA’s ability to manage growth; (iii) LPA’s ability to continue to comply with applicable listing standards of NYSE American; (iv) changes in applicable laws, regulations, political and economic developments; (v) the possibility that LPA may be adversely affected by other economic, business and/or competitive factors; (vi) LPA’s estimates of expenses and profitability; (vii) the outcome of any legal proceedings that may be instituted against LPA and (viii) other risks and uncertainties set forth in the filings by LPA with the
Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240814030040/en/
Investor Relations Contacts
Juliana Dominguez
Logistic Properties of the
+57 601-518-5124
juliana@lpamericas.com
Barbara Cano/Ivan Peill
InspIR Group
barbara@inspirgroup.com / ivan@inspirgroup.com
Source: Logistic Properties of the