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Logistic Properties of the Americas (LPA) released its first quarter 2025 investor presentation on May 15, highlighting continued strong occupancy rates and strategic positioning to capitalize on e-commerce growth across its Latin American markets.
Quarterly Performance Highlights
LPA maintained robust operational metrics in Q1 2025, reporting 98.0% occupancy across its portfolio of 7.3 million square feet of gross leasable area (GLA). The company generated $9.4 million in net operating income (NOI) for the quarter, representing a 2.2% year-over-year increase in cash NOI.
Rental revenues reached $11.8 million in Q1 2025, up from $11.0 million in Q4 2024 and $10.4 million in Q1 2024. However, same-property NOI growth turned negative at -3.0%, with same-property cash NOI also declining by -4.3% year-over-year, reversing the positive growth trend seen throughout 2024.
As shown in the following snapshot of LPA’s key metrics and geographical presence:
The company’s portfolio spans three key markets with Costa Rica representing 2.5 million square feet of operating GLA, Colombia with 1.3 million square feet, and Peru with 1.4 million square feet of operating GLA plus nearly 480,000 square feet under development.
Strategic Market Positioning
LPA continues to position itself to benefit from the growing e-commerce penetration in Latin America, which currently stands at 12.3% of total retail sales compared to 26.3% in North America, indicating significant growth potential.
"E-commerce requires approximately 3.0x the logistical space compared to traditional retail logistics operations," the company noted in its presentation, highlighting the demand driver for its facilities.
The following chart illustrates e-commerce growth projections in LPA’s key markets:
Costa Rica is expected to see the strongest e-commerce growth at 14% annually, with Colombia at 11% and Peru at 7%. This growth trajectory supports LPA’s expansion strategy across these markets.
The company’s financial performance has shown consistent growth over recent years, with operating portfolio GLA increasing at a 9.4% CAGR since 2022, while NOI has grown at a 12.5% CAGR over the same period.
The following chart demonstrates LPA’s track record of performance:
Tenant Relationships and Lease Structure
LPA has established relationships with multinational and regional companies across various sectors. Its tenant base includes logistics providers like Kuehne + Nagel, consumer goods companies such as Kimberly-Clark (NYSE:KMB) and Kraft Heinz (NASDAQ:KHC), retailers including PriceSmart (NASDAQ:PSMT), and manufacturers like Holcim (SIX:HOLN).
The following image showcases LPA’s diverse tenant base:
The company’s top 10 customers represent 44.5% of net effective rent, with Kuehne + Nagel as the largest tenant at 7.1%. LPA’s lease expirations are well-distributed, with only 5.1% of leases expiring in the remainder of 2025, providing revenue stability.
The company’s lease structure is illustrated in the following analysis:
Notably, 81.0% of LPA’s leases are denominated in US dollars, providing a hedge against local currency fluctuations. The average remaining lease term stands at 5.0 years, supporting predictable cash flows.
Growth Initiatives and Development Pipeline
LPA has outlined a path to add approximately 1.5 million additional square feet through the development of its land portfolio. The company currently has 479,306 square feet under development in Peru, with 74.4% already leased.
The following chart shows LPA’s growth potential through its existing land bank:
This development pipeline represents a significant organic growth opportunity without requiring additional land acquisitions. The company’s operating portfolio metrics show an average building age of 4.8 years across 31 logistics properties, indicating a relatively modern portfolio.
Financial Structure and Sustainability Focus
As of March 31, 2025, LPA reported total debt of $265.7 million with a net debt to adjusted EBITDA ratio of 8.7x, slightly improved from 9.0x at the end of 2024. The company’s debt is 86.2% denominated in US dollars, with 38.7% at fixed interest rates.
LPA has also emphasized its commitment to sustainability through various environmental, social, and governance initiatives. The company’s warehouses comply with high efficiency standards through EDGE certification and are managed through the Ecological Blue Flag Program.
The following image highlights LPA’s ESG approach:
Outlook and Strategic Direction
While the Q1 2025 presentation didn’t provide specific forward guidance, the recent earnings report for Q4 2024 indicated that LPA plans to expand across four geographies, including a strategic entry into the Mexican market through a joint venture. The company also secured a $25 million loan for new warehouse construction in Peru, which aligns with the development pipeline shown in the presentation.
The slight decline in same-property NOI growth during Q1 2025 bears watching, as it represents a reversal from the positive growth seen throughout 2024. However, the company’s high occupancy rates, well-structured lease expirations, and development pipeline position it to potentially overcome this short-term challenge.
With e-commerce penetration in Latin America still significantly below North American levels, LPA appears strategically positioned to benefit from continued growth in logistics demand across its key markets.
Full presentation:
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