Logistic Properties of the Americas (NYSEAMERICAN:LPA) reported a strong start to 2026, with management pointing to higher rents, full occupancy and expanding operations in Mexico as key drivers of first-quarter performance.
On the company’s first-quarter earnings call, Chief Executive Officer Esteban Saldarriaga said LPA delivered “a standout quarter,” with revenue rising 21.6% and net operating income increasing 28.6% from a year earlier. The company’s cross-border logistics platform remained 100% occupied during the quarter.
Saldarriaga said the results reflected not only portfolio expansion, but also pricing power in markets where modern Class A logistics space remains scarce. Same-property NOI rose 10.9%, while average rent per square foot increased 9.8% to $8.74.
“These numbers underscore the strength of our business model, disciplined execution, advantaged market positioning, and a diverse high-quality customer base,” Saldarriaga said.
Peru and Colombia Lead Revenue Growth
Peru was the strongest contributor during the quarter, with revenue rising 39.9%. Chief Financial Officer Paul Smith said the increase was primarily driven by incremental leasing activity and higher stabilized occupancy, including PepsiCo’s occupancy of a new building at LPA’s Callao Logistics Park in Lima.
Saldarriaga noted that the PepsiCo facility was delivered late last year and is LEED Gold certified. He also cited continued demand for Class A facilities in supply-constrained locations, saying the company benefits from “resilient domestic consumption, e-commerce growth, and the ongoing regionalization of supply chains.”
Smith said LPA recently re-leased a soon-to-be-vacated space in Peru ahead of lease expiration, achieving a positive lease spread of 25% without incurring capital expenditures.
Colombia revenue increased 24.8%, helped by re-leasing at higher mark-to-market rents, contractual CPI-linked rent escalations and favorable foreign exchange. Excluding the positive impact of the Colombian peso, Colombia revenue increased 8.3% to $2.6 million, Smith said.
Costa Rica revenue rose 3.3%, driven by re-leasing, renewals and higher rental rates. Management said the Costa Rican portfolio remained fully occupied, with re-leasing spreads trending close to double digits.
Mexico Expansion Becomes a Strategic Focus
Management spent a significant portion of the call discussing Mexico, where LPA recently acquired two logistics facilities in Puebla, marking its first investment in the country. Saldarriaga described Mexico as a key growth market and central to the company’s ability to provide cross-border logistics solutions to multinational customers.
LPA has also entered into an agreement with Fortem Capital to acquire, over time, approximately $200 million of stabilized, dollar-denominated Class A assets within Central Park 57. Saldarriaga said the first acquisitions under that arrangement are expected to begin in the second and third quarters of this year.
Central Park 57 is located in a logistics corridor and submarket of the Greater Mexico City area. Saldarriaga said the park represents the equivalent of 36% of LPA’s current operating gross leasable area.
The company expects to fund the purchases through a mix of debt, local equity partners and proceeds from recycling capital through sales of selected assets in its existing portfolio.
During the question-and-answer session, Saldarriaga said LPA expects “relevant deployments in acquisitions before year-end” in Mexico. He said the company is focused primarily on the country’s central region, including the 57 corridor and outskirts of Mexico City, while also selectively reviewing opportunities in northern markets.
He added that LPA is prioritizing dollar-denominated assets and global blue-chip tenants, while remaining cautious as negotiations around the United States-Mexico-Canada Agreement are expected to begin near the end of the month.
Development Pipeline Remains Largely Pre-Leased
LPA is also expanding its platform through development in Peru. The company is constructing two facilities at Callao Logistics Park with a combined 440,000 square feet of gross leasable area. Saldarriaga said 92% of that space is already pre-leased, which he said effectively de-risks the projects.
The two buildings remain on schedule for completion in the second and third quarters and are expected to generate roughly $3.2 million in annualized revenue.
Within Callao Logistics Park, LPA has one remaining shovel-ready pad that could support a fifth building of about 210,000 square feet. Saldarriaga said the company expects to pre-lease that space this year at yields of approximately 13%, citing continued supply constraints.
As of quarter-end, LPA’s operating gross leasable area increased 9.7% from a year earlier to 5.8 million square feet, while leased gross leasable area rose 6.9% to 6.2 million square feet.
Expenses, Valuation Loss and Debt Profile
Operating expenses decreased 4.1% to $2.2 million, which Smith attributed mainly to collection recoveries and lower property taxes following a one-time adjustment in Peru last year.
General and administrative expenses rose 13.3% to $4 million, primarily due to a one-time emergency tax levied by the Colombian government in the first quarter. In response to an analyst question, Smith said the tax had an impact of about $400,000 on quarterly results and was based on asset values under IFRS reporting. He said the tax has been challenged and is under review by Colombia’s Supreme Court.
LPA recorded an investment property valuation loss of $9.2 million in the first quarter, compared with a $1.9 million gain in the prior-year period. Smith said the change was primarily due to assumption-driven valuation adjustments and project normalization across the platform.
- A $7.2 million reduction in Colombian asset valuations reflected changes in underwriting assumptions tied to evolving market conditions.
- A $2.3 million decrease at Callao Park in Peru reflected the fact that most development-related appreciation was recognized last year.
- A $1.1 million reduction at Coyol II Park in Costa Rica was tied to an updated leasing assessment.
- A $0.6 million negative impact related to capital expenditures during the quarter.
Financing costs increased 12% to $5.9 million, mainly due to higher interest expense related to new financing activities, including a bridge loan received in the fourth quarter of 2025, financing for a new building at Callao Park and a loan supporting development at Cayena Park in Colombia. Smith said the increase was partially offset by lower interest rates and scheduled loan amortization.
At quarter-end, LPA’s net debt to investment properties stood at 42.1%, and Smith said the company had no significant debt maturing in the near term.
Management Addresses Share Price and Capital Recycling
Saldarriaga said management shares shareholder frustration over what he called an “acute dislocation” between LPA’s market price and its book value, which he said was roughly $8 per share at quarter-end. He said the company is engaging equity research analysts to broaden investor awareness, including two specialized firms, one of which has already initiated coverage.
In response to a question about liquidity and trading activity, Saldarriaga said LPA is undertaking an “awareness push” through its website, communications and investor outreach efforts.
Analysts also asked about asset recycling. Saldarriaga said the company is evaluating the sale of stabilized, mature assets in foundational markets where LPA has already created value through development. He said Colombia and Peru could be part of that process, with proceeds potentially redeployed into Mexico, where management sees stronger risk-adjusted opportunities.
“As an internally managed real estate company, you can count on us to invest thoughtfully and selectively with capital efficiency top of mind,” Saldarriaga said in closing remarks.
About Logistic Properties of the Americas (NYSEAMERICAN:LPA)
Logistic Properties of the Americas (NYSE American: LPA) is a publicly traded real estate investment trust focused on the acquisition, development, and management of Class A industrial properties across the Americas. The company's portfolio comprises modern logistics and distribution facilities strategically located in key markets throughout the United States, Mexico, and Latin America. By targeting high-barrier-to-entry locations, Logistic Properties of the Americas aims to support growing demand from e-commerce, retail, manufacturing, and third-party logistics providers.
Founded in 2020, the company launched its initial public offering in late 2020 and is overseen by a management team with deep experience in industrial real estate and supply chain operations.
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