Yearly Revenue Growth of 10% Highlights
Strong Performance
Logistic Properties of the Americas (NYSE American: LPA)
(together with its subsidiaries, “LPA” or the “Company”), a leading
developer, owner, acquirer and manager of logistic and industrial
real estate of international quality in Central and South America,
and one of the few, internally managed, vertically-integrated, and
institutional platforms operating across the region, today
announced unaudited financial results for the three months ended
June 30, 2024 (“second quarter 2024” or “2Q24”). Financial results
are expressed in U.S. dollars and are presented in accordance with
International Financial Reporting Standards (“IFRS”), which differs
in certain significant respects from U.S. GAAP. This information
should be read in conjunction with, and is qualified in its
entirety by reference to, the Company’s consolidated financial
statements, including the notes thereto. Financial results are
preliminary and subject to year-end audit and adjustments. All
comparisons in this announcement are year-over-year (“YoY”), unless
otherwise noted. LPA’s financial results are stated in US dollars
unless otherwise noted.
2Q24 Financial and Operating Highlights
- Operating portfolio occupancy ended 2Q24 at 94.6%, due to
expected lease expirations in Colombia and Peru.
- Average rent per square foot increased 11.3% YoY to $ 7.87 in
2Q24 from $ 7.07 in 2Q23 and is in line with embedded automatic
escalators that the company has in its contracts.
- Revenue increased 10.0% to $11.0 million in 2Q24, primarily due
to increases of 20.7% in Peru and 9.3% in Costa Rica, more than
offsetting a 2.3% decline in Colombia primarily attributable to the
sale of a building during the fourth quarter of 2023.
- Net Operating Income (NOI) increased 6.2% to $ 9.2 million in
2Q24 from $8.7 million in 2Q23, and Same-Property Cash NOI
Increased 8.5% during the same period.
- Net Earnings Attributable to Owners of the Company reached $9.9
million, compared with a Net Loss of $4.8 million in 2Q23. Earnings
per Share Attributable to Owners of the Company-basic and diluted
of $ 0.31, up from a loss of $0.17 in 2Q23.
- In April 2024, the Company refinanced secured loans of $46.6
million with BAC Credomatic, S.A. with a new secured facility of
$60.0 million with the same lender, to continue financing the
development of the La Verbena Logistics Park in 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
10% year-over-year to $11.0 million, as more of our leases were
marked-to-market upon renewals, and we signed leases for a recently
completed industrial park in Costa Rica with several tenants,
including a Fortune 500 company. Our net operating income grew 6.2%
to $9.2 million for the second quarter. It is important to note
that G&A expenses were markedly higher, mainly due to one-time
costs related to LPA going public, and additional costs which will
be recurring as we assume heightened auditing and reporting
obligations under US regulations.
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 7.5% to 5.0 million square feet
during the first half of 2024, with leased GLA decreasing 5.9% to
5.0 million square feet. Stabilized occupancy decreased 540 basis
points to 94.6% during the same period, as we are patient and
highly selective in our re-leasing efforts, particularly in
Colombia, where positive mark-to-market spreads can range between
25% and 40%. The lack of incoming supply in this market over the
last 18 months allows us to search for higher-value and
option-constrained tenants who need our premium product.
Our finance team continues to identify ways to increase LPA’s
capital efficiency. In April, we successfully refinanced the $60
million facility for our La Verbena Logistics Park in Costa Rica.
With this refinancing, we lowered the interest rate by 178 basis
points and extended the maturity profile of the facility to a
20-year amortization tenor.
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
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)
94.6%
100.0%
99.4%
Financial Performance Revenues (amounts expressed
in thousand dollars, unless otherwise noted)
Three- months ended June 30
2024
2023
% Chg.
Rental revenue
Colombia
2,019
2,067
-2.3%
Peru
2,935
2,433
20.7%
Costa Rica
5,993
5,482
9.3%
Unallocated revenue
40
8
375.6%
Total revenue
10,987
9,990
10.0%
Investment Property Operating Expenses (amounts expressed
in thousand dollars, unless otherwise noted)
Three- months ended June 30
2024
2023
% Chg.
Investment property operating expense
Colombia
-291
-259
12.5%
Peru
-545
-483
12.7%
Costa Rica
-872
-541
61.3%
Total Investment Property Operating
expense
-1,708
-1,283
33.2%
Operating Performance
(amounts expressed in thousand dollars, unless otherwise
noted)
Three- months ended June 30
2024
2023
% Chg.
Total revenues
10,987
9,990
10.0%
Total investment property operating
expense
-1,708
-1,283
33.2%
General and administrative
-4,557
-1,076
323.4%
Investment property valuation gain
4,551
305
NM
Interest income from affiliates
0
158
-100.0%
Financing costs
-5,809
-12,135
-52.1%
Net foreign currency (loss) gain
-158
64
-345.6%
Gain on sale of asset held for sale
0.0
1,023
-100.0%
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
-70.2%
PROFIT(LOSS) FOR THE PERIOD
12,432
-4,763
NM
NM- not meaningful
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 (U.S. domestic); 1 646 307 1963
(International)
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 Americas
Logistic Properties of the Americas is a leading developer,
owner, and manager of institutional quality, Class A industrial and
logistics real estate in high-growth and high-barrier-to-entry
markets in Central and South America. LPA’s customers are
multinational and regional e-commerce retailers, third-party
logistic operators, business-to-business distributors, and retail
distribution companies. LPA expects its strong customer
relationships and insight to enable future growth through the
development and acquisition of high-quality, strategically located
facilities in its target markets. As of June 30, 2024, LPA
consisted of an operating and development portfolio of thirty-four
logistic facilities in Colombia, Peru and Costa Rica totaling more
than 491,000 square meters (or approximately 5.3 million square
feet) of gross leasable area. For more information visit
https://ir.lpamericas.com
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 U.S. federal securities laws.
Forward-looking statements include, without limitation, statements
about future events or LPA's future financial or operating
performance. These forward-looking statements regarding future
events and the future results of LPA are based on current
expectations, estimates, forecasts, and projections about the
industry in which LPA operates, as well as the beliefs and
assumptions of LPA’s management. These forward-looking statements
are only predictions and are subject to known and unknown risks,
uncertainties, assumptions and other factors beyond LPA's control
that are difficult to predict because they relate to events and
depend on circumstances that will occur in the future. They are
neither statements of historical fact nor promises or guarantees of
future performance. Therefore, LPA's actual results may differ
materially and adversely from those expressed or implied in any
forward-looking statements and LPA therefore caution against
relying on any of these forward-looking statements.
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 U.S. Securities and
Exchange Commission. There may be additional risks that LPA does
not presently know or that LPA currently believes are immaterial
that could also cause actual results to differ from those contained
in the forward-looking statements. Any forward-looking statements
made by or on behalf of LPA speak only as of the date they are
made. Except as otherwise required by applicable law, LPA disclaims
any obligation to publicly update or revise any forward-looking
statements to reflect any changes in their respective expectations
with regard thereto or any changes in events, conditions or
circumstances on which any such statement is based. Accordingly,
you should not place undue reliance on forward-looking statements
due to their inherent uncertainty.
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 Americas +57 601-518-5124 juliana@lpamericas.com
Barbara Cano/Ivan Peill InspIR Group barbara@inspirgroup.com /
ivan@inspirgroup.com
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