Logistic Properties of the Americas (NYSEAMERICAN:LPA) detailed fourth-quarter and full-year 2025 results that management characterized as “transformational,” highlighting expansion into Mexico, portfolio-wide occupancy gains, and accelerating operating performance in its existing markets.
Management highlights: growth, occupancy, and operating momentum
Chief Executive Officer Esteban Saldarriaga said 2025 marked a step-change in the company’s scale and reach, including the addition of Mexico as a fourth operating geography. He pointed to a more than 13% increase in operating gross leasable area (GLA) during the year, alongside revenue growth of 23.3% in the fourth quarter and 14.3% for the full year.
The CEO said the operating portfolio reached 100% occupancy by quarter-end. Despite full occupancy, he said the company still sees opportunities to capture additional rental upside as leases roll over to higher market rates and as new development projects come online.
Mexico expansion: Fortem partnership and Central Park 57
A central focus of the call was LPA’s Mexico growth strategy. Saldarriaga discussed a strategic partnership with Fortem Capital, which he described as one of Mexico’s leading institutional real estate investors. Under a master forward purchase agreement, LPA plans to progressively acquire stabilized, dollar-denominated Class A assets at Central Park 57, a large-scale industrial and logistics park located along Federal Highway 57 in the state of Hidalgo.
Management described the partnership as representing roughly a $200 million investment to be deployed over time. Once completed, Central Park 57 is expected to include approximately 2.1 million square feet of GLA across eight buildings, with the partners—supported by LPA—aiming to have the park fully operational over the next couple of years, with LPA ultimately becoming the beneficial owner.
Saldarriaga said LPA expects to fund the purchase program using a mix of traditional debt financing, local equity partners, and proceeds from selective asset recycling in other geographies. He said the structure accelerates and “de-risks” expansion because LPA will acquire stabilized, delivered properties over time, mitigating construction and commercial risk.
He added that the Fortem pipeline would represent a 36% increase in GLA relative to LPA’s total operating portfolio at year-end 2025.
On the broader Mexico market backdrop, Saldarriaga said the company was encouraged by a recent U.S. Supreme Court ruling on tariffs, while remaining mindful of shifting tariff policies and USMCA negotiations. He said LPA is focusing on resilient Mexican submarkets driven more by domestic consumption than trade. He cited market data indicating that fourth-quarter rents in Mexico continued to gradually increase, net absorption improved amid limited new supply, occupancy remained high and stable, and construction activity stayed restrained.
Operational updates across Peru, Colombia, and Costa Rica
In Peru, Saldarriaga highlighted that PepsiCo occupied Building 300 at Parque Logístico Callao, describing it as a significant driver of fourth-quarter growth. The 254,000-square-foot facility is LEED Gold certified and, according to management, the first and only of its kind in Peru. The park’s location adjacent to Lima’s international airport and connectivity to the marine port and metropolitan areas were cited as competitive advantages.
He said construction of a fourth 250,000-square-foot building at the park remains on time and on budget for delivery in the second quarter and is expected to contribute additional revenue and NOI growth in the second half of 2026. Management noted the building was 100% pre-leased under a dollar-denominated contract prior to breaking ground, which Saldarriaga said “fully de-risked” the development. With that building, Parque Logístico Callao is expected to total four Class A buildings and 863,000 square feet of GLA.
Saldarriaga added that one remaining shovel-ready pad could support a fifth and final building of close to 210,000 square feet, which he said LPA believes it can pre-lease in 2026 with development yields “at or around 13%.”
In Colombia, the CEO pointed to the leasing of the remaining 97,000 square feet in LPA’s Bogotá operating portfolio. He said the tenant, PriceSmart, is a cross-border customer already renting space in one of LPA’s facilities in Costa Rica, which he said demonstrates the platform’s ability to serve multinational tenants across jurisdictions.
More broadly, Saldarriaga said Costa Rica, Colombia, and Peru continue to show resilience supported by domestic consumption, rising commodity prices—particularly metals and mining—e-commerce penetration, and favorable demographic trends.
Financial results: revenue, rents, expenses, and leverage
Chief Financial Officer Paul Smith reported full-year 2025 revenue increased 14.3% to $50.1 million, led by Peru and Colombia, which grew 31% and 14.8%, respectively. Costa Rica revenue increased just under 1%, while the new facilities in Mexico contributed incremental revenue.
Smith said growth was primarily driven by additional rents tied to the stabilization of buildings in Peru and one building in Colombia, as well as mark-to-market lease renewals, CPI-linked increases—mainly in Colombia—and the occupancy of previously vacant space. He said the company’s average rent per square foot increased 11% to $8.65, aided in part by favorable foreign exchange changes.
On the operating footprint, Smith said operating GLA increased 13.3% to 5.8 million square feet across 34 properties. Leased GLA increased 6.3% to nearly 6 million square feet. Development GLA (Building 200 in Parque Logístico Callao) was unchanged at about 224,000 square feet, and Smith noted 84.1% of development GLA was pre-leased.
Operating expenses increased 16.8% to $1.2 million, which Smith said was largely in line with projections and driven by higher real estate taxes, maintenance and repairs, expected increases in credit loss provisions, and higher land lease costs. SG&A increased 7.1% to $16.7 million, which the CFO said was below revenue growth and reflected improved operating leverage. He attributed notable SG&A items to hiring and salary increases, Colombia’s alternative minimum tax, and rebranding and digital marketing initiatives.
Smith reported investment property valuation gains fell by $11.7 million, or 36.2%, to $20.6 million in 2025, primarily due to an $11.2 million reduction in valuation gain at Parque Logístico Callao as the largest building in the park mostly stabilized in 2024.
Financing costs were $20.8 million, down 7.9% year over year. Smith attributed the decrease to lower interest rates on existing debt, more favorable interest-rate environments in Costa Rica and Colombia, and capitalization of interest related to development in Peru. He said the company had no significant near-term debt maturities and that net debt to investment properties improved 150 basis points to 40.2%.
Cash NOI increased 12.4% to $40.3 million, which Smith said reflected increased GLA and higher occupancy and rental rates.
Investor messaging and 2026 outlook themes
Saldarriaga also addressed LPA’s share price performance, saying management believes the stock is disconnected from business fundamentals. He said shares came under pressure following the expiration of a shareholder lock-up in September. As a reference point, he said book value per share was $8.12 at year-end 2025, while emphasizing book value does not capture the full growth potential of the platform.
During Q&A, Citigroup’s Andre Mazini asked about consolidation and M&A activity in Mexico’s public real estate space and whether it changes LPA’s strategy. Saldarriaga said the activity “bolsters” LPA’s confidence and could segment the market, potentially enabling LPA to focus on mid-market opportunities in the $100 million to $200 million range, and possibly up to $300 million. He added that consolidation could lead to portfolio pruning, which may create additional opportunities for LPA.
Looking to 2026, Saldarriaga said the company entered the year at full occupancy and expects rental growth as leases roll to market rates and as new, largely pre-leased buildings become occupied in the first half of the year. He said management anticipates another year of “high growth” and additional strategic investments aimed at scaling and diversifying the platform.
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.
