Logistic Properties of the Americas

What they do

LPA acquires, develops, and manages Class A logistics and distribution centers in key markets across Latin America. The company generates revenue primarily through long-term leases to tenants in sectors such as retail, e-commerce, and third-party logistics. Its portfolio includes properties in countries like Costa Rica, Panama, Colombia, Peru, and Mexico, with a focus on high-demand urban and nearshoring corridors.

Revenue drivers

• Leasing of logistics and industrial properties — Primary revenue source is rental income from long-term leases. Portfolio spans multiple countries, with properties in Costa Rica, Panama, Colombia, Peru, and Mexico.
• Development and expansion projects — Growth comes from developing new facilities and expanding existing ones to meet demand from logistics and e-commerce tenants, particularly in markets like Mexico and Colombia.
• Geographic diversification — Revenue is diversified across countries, with significant contributions expected from newer markets such as Mexico, which is benefiting from nearshoring trends.

Recent performance

For the fiscal year ended December 31, 2025, LPA reported total revenue of $25 million, up from $18 million in 2024. Net income increased to $7 million from $2.4 million in the prior year. The company also saw growth in its investment property portfolio and improved occupancy rates. The financial results reflect contributions from its existing properties and expansion in key markets.

Strategy

Management's strategy is to capitalize on the growing demand for modern logistics space in Latin America, driven by e-commerce, retail, and nearshoring. They plan to expand their development pipeline, particularly in Mexico and other high-growth markets, and to selectively acquire properties that meet their investment criteria. The company focuses on maintaining high occupancy and tenant quality, while also exploring opportunities to increase operational efficiency and leverage its regional platform.

Risks

• Concentration risk in Latin American economies — Revenue is dependent on economic and political conditions in countries like Costa Rica, Panama, Colombia, Peru, and Mexico, which may affect tenant demand and rent collection.
• Currency exchange rate fluctuations — The company operates in multiple currencies (CRC, PEN, COP, MXN), and adverse exchange rate movements could reduce reported revenues and earnings in USD terms.
• Development and construction risks — Delays, cost overruns, or lower-than-expected demand for new projects could impact profitability and expected returns on investment.
• Interest rate and financing risks — The company's growth strategy relies on debt financing; higher interest rates could increase borrowing costs and reduce net income.

Outlook

Management expects continued growth in demand for logistics real estate across Latin America, supported by e-commerce expansion and nearshoring trends. They plan to advance their development pipeline and may pursue additional acquisitions to expand their portfolio. The outlook reflects confidence in the region's long-term growth prospects, but remains subject to economic and geopolitical conditions.