Logistic Properties of the Americas Announces Third Quarter 2024 Earnings Results
Continued Double-Digit Revenue Growth Highlights Strong Performance
SAN JOSÉ,
3Q24 Financial and Operating Highlights
-
Revenue increased by
10.4% to for the three months ended September 30, 2024, primarily driven by increases of$11.3 million 26.4% and9.5% inPeru andCosta Rica , respectively, thereby offsetting a7.1% decline inColombia , which resulted from the tactical divestment of a building during the fourth quarter of 2023. -
3Q24 Net Operating Income (NOI) increased by
10.3% to , from$9.6 million in 3Q23, while 3Q23 Same-Property Cash NOI remained in line.$8.7 million -
LPA’s operating portfolio achieved a leased rate of
98.5% by quarter’s end, from94.6% in 2Q24. This increase reflects the Company’s strategic approach to capturing rental market growth through both lease renewals and new lease agreements. LPA ended 3Q24 having executed two new lease agreements inColombia with Porsche and DSV (formerly Panalpina), respectively, earlier than previously expected, resulting in a combined gross leasable area (GLA) of 125,282 square feet. These new leases replace prior vacancies and reflect current increased market rental rates, achieving an average rate increase of28% . LPA secured a new lease at the Callao Park inPeru with Scharff International Courier & Cargo S.A. and also leased available space in the Lima Sur Park with Signia Soluciones Logisticas S.A.C., for a combined GLA of 92,537 square feet. InCosta Rica , LPA signed a new lease agreement with Chemelco Food Tech, S.A., adding 1,416 square feet to LPA’s total leased portfolio. The quarter’s leasing activity inPeru andCosta Rica demonstrates the Company’s ability to effectively capture embedded rental rate growth within its portfolio in the markets where LPA operates. -
Average rent per square foot increased by
4.9% year-over-year (“YoY”) to in 3Q24 from$7.92 in 3Q23, supported by charges related to automatic escalators included in the Company’s existing lease contracts.$7.55 -
Net Earnings Attributable to Owners of the Company reached
in 3Q24, a$4.9 million 266% increase compared to in 3Q23. Earnings per Share Attributable to Owners of the Company increased to basic of$1.4 million and diluted of$0.16 compared to basic and diluted of$0.15 in 3Q23.$0.05
Subsequent Events
- In December 2022, the Company committed to a 30-year land lease agreement with Lima Airport Partners S.R.L. (“LAP”) to develop warehouses on the leased land. In connection with this commitment, on October 31, 2024, LAP granted the Company the right to access three land parcels measuring approximately 1.5 million square feet, of which one parcel measuring approximately 0.7 million square feet will be used by LPA to begin construction of a warehouse. For the remaining land parcels, the Company is authorized to prepare the land for future construction, after which the land parcels will be returned to LAP until further authorization on construction is granted to the Company.
-
On November 12, 2024, the Company has entered into a binding agreement with a Mexican real estate developer to form a strategic partnership in
Mexico for the purpose of operating real estate properties located inMexico . Upon formation of the partnership, the real estate developer will contribute two operating properties to the partnership, and the Company will contribute cash equal to10% of the appraised values of the two properties. The Company will own a10% equity interest in the partnership, and the real estate developer company will own the remainder. This transaction is expected to close in early 2025.
Furthermore, this strategic alliance grants LPA immediate access to Falcon’s extensive experience through more than 65 years operating within Mexico’s industrial and logistics market, well-established relationships with
CEO Commentary
LPA’s portfolio of operating assets continued delivering solid performance levels in the third quarter, driven by favorable underlying market trends and positive leasing dynamics across our markets. Revenues increased by
Our operating GLA increased by
The quarter also brought additional residual fee income from the release of certain shareholders from lock-up agreements when LPA’s share price activity warranted these releases. This income bolstered our funding for expanding LPA’s portfolio in the region. We do not expect to receive additional fee income of this nature in subsequent quarters.
Lastly and perhaps most noteworthy, we have initiated our investment program in
Esteban Saldarriaga
Chief Executive Officer
Real Estate Portfolio |
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Real Estate Portfolio |
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As of September 30, 2024 |
|
As of December 31, 2023 |
|
As of September 30, 20231 |
|
Number of operating real estate properties |
30 |
|
28 |
|
28 |
|
Operating GLA (sq. ft) |
5,121,625 |
|
4,619,616 |
|
4,615,760 |
|
Leased area (sq. ft) |
5,629,154 |
|
5,308,454 |
|
5,098,759 |
|
Number of tenants |
51 |
|
53 |
|
53 |
|
Average rent per square foot |
|
|
|
|
|
|
Weighted average remaining lease term |
5.0 years |
|
5.3 years |
|
5.5 years |
|
Stabilized occupancy rate (% of GLA) |
94.5 % |
|
100.0 % |
|
99.4 % |
|
1 Excludes a held-for-sale investment property in |
Financial Performance |
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Revenues |
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(amounts expressed in thousand dollars, unless otherwise noted) |
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|
Three months ended September 30 |
|
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|
2024 |
|
2023 |
|
% Chg. |
|
|
Rental revenue |
|
|
|
|
|
|
|
|
2,068 |
|
2,226 |
|
(7.1 |
)% |
|
|
2,983 |
|
2,360 |
|
26.4 |
% |
|
|
6,122 |
|
5,589 |
|
9.5 |
% |
|
Unallocated revenue |
100 |
|
39 |
|
154.2 |
% |
|
Total revenue |
11,273 |
|
10,214 |
|
10.4 |
% |
|
Investment Property Operating Expenses |
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(amounts expressed in thousand dollars, unless otherwise noted) |
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|
Three months ended September 30 |
|
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|
2024 |
|
|
2023 |
|
|
% Chg. |
|
|
Investment property operating expense |
|
|
|
|
|
|
|||
|
(310 |
) |
|
(261 |
) |
|
18.6 |
% |
|
|
(566 |
) |
|
(423 |
) |
|
34.0 |
% |
|
|
(741 |
) |
|
(825 |
) |
|
(10.2 |
%) |
|
Total Investment Property Operating expense |
(1,617 |
) |
|
(1,509 |
) |
|
7.1 |
% |
|
Operating Performance |
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(amounts expressed in thousand dollars, unless otherwise noted) |
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|
Three months ended September 30 |
|
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|
2024 |
|
|
2023 |
|
|
% Chg. |
|
|
Total revenues |
11,273 |
|
|
10,214 |
|
|
10.4 |
% |
|
Total investment property operating expense |
(1,617 |
) |
|
(1,509 |
) |
|
7.1 |
% |
|
General and administrative |
(4,751 |
) |
|
(2,520 |
) |
|
88.5 |
% |
|
Investment property valuation gain |
8,175 |
|
|
9,826 |
|
|
(16.8 |
)% |
|
Interest income from affiliates |
— |
|
|
160 |
|
|
(100.0 |
)% |
|
Financing costs |
(5,797 |
) |
|
(5,647 |
) |
|
2.7 |
% |
|
Net foreign currency gain |
49 |
|
|
13 |
|
|
261.6 |
% |
|
Other income |
1,105 |
|
|
32 |
|
|
NM |
|
|
Other expenses |
(1,238 |
) |
|
(3,345 |
) |
|
(63.0 |
)% |
|
Profit before taxes |
7,199 |
|
|
7,224 |
|
|
(0.4 |
)% |
|
Income tax expense |
(2,366 |
) |
|
(4,853 |
) |
|
(51.3 |
)% |
|
PROFIT FOR THE PERIOD |
4,833 |
|
|
2,371 |
|
|
103.8 |
% |
|
NM- not meaningful |
|
|
|
|
|
|
Supplemental Information
Please refer to LPA’s quarterly Supplemental Information and Management Discussion and Analysis, both which are available on the Company’s Investor Relations website at https://ir.lpamericas.com
3Q24 Earnings Conference Call
When: November 14, 2024, 9:00 a.m. Eastern Time
Who: Mr. Esteban Saldarriaga, Chief Executive Officer, Mr. Paul Smith, Chief Financial Officer, Ms. Annette Fernandez, Chief Operating Officer, and Mr. Camilo Ulloa, Investor Relations
Dial-in: +1 800 343 5172 (Toll-Free), +1 203 518 9843 (International)
Passcode: LPA3Q24
Pre-Register: You may pre-register at any time: here. Callers will need to press # to be connected to an operator to access LPA’s financial results conference call via telephone.
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 within 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/20241113043557/en/
Investor Relations
Camilo Ulloa
Logistic Properties of the
+506 6293 9083
camilo@lpamericas.com
Barbara Cano/Ivan Peill
InspIR Group
barbara@inspirgroup.com / ivan@inspirgroup.com
Source: Logistic Properties of the