Logistic Properties of the Americas (LPA) Q1 2025 Earnings Call May 15, 2025 09:00 AM ET Company Participants Camilo Ulloa - Investor RelationsEsteban Saldarriaga - CEOPaul Smith - CFOAndre Mazini - Head of Latam Research Operator Good morning, and welcome to LPA's First Quarter twenty twenty five Earnings Conference Call. My name is Audra, and I will be your operator for today's call. At this time, all participants are in a listen only mode. And please note that this call is being recorded. There will be a ...

Financial Data and Key Metrics Changes - LPA's revenue increased by 12.9% to $11.8 million, while NOI grew almost 6% to $9.4 million in Q1 2025 [5][14] - Average rent per square foot increased by 1.9% across the property portfolio compared to Q1 2024 [14] - The net debt to adjusted EBITDA improved, decreasing by 30 basis points over the same period [16] Business Line Data and Key Metrics Changes - Peru, representing 29% of LPA's portfolio GLA, saw rental income grow by 38.4% [15] - Costa Rica, accounting for 47% of the portfolio, experienced a revenue increase of 6.1% [15] - Colombia, which makes up 24% of the portfolio, delivered a 2.6% revenue increase [15] Market Data and Key Metrics Changes - Peru's economic environment is characterized by low inflation, minimal government debt, and low unemployment, contributing to strong consumer spending [5][6] - Mexico is viewed as a long-term growth avenue, with a focus on logistics rather than light manufacturing due to tariff uncertainties [10][12] Company Strategy and Development Direction - LPA plans to increase its footprint in Lima with a new 215,000 square foot building, which is already 73% pre-leased [7] - The company aims to replicate its success in Mexico while being selective in investments due to potential tariff impacts [10][12] - LPA maintains a disciplined approach to investment, focusing on logistics space driven by domestic consumption [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of foundational markets and the potential for additional NOI growth in 2025 [26] - The company is focused on high-quality customers and investments to scale its regional platform [26] - Management noted that tariffs have not significantly impacted operations in foundational markets, which are primarily consumer-driven [22] Other Important Information - LPA's entire operating portfolio reached 100% occupancy, marking a significant milestone [7] - The company has a healthy maturity profile with no significant debt due in the near term [16] - LPA repurchased $800,000 worth of ordinary shares during the quarter, totaling 2.1 million in buybacks [16] Q&A Session Summary Question: Is LPA shying away from light manufacturing in Mexico? - Management indicated a preference for logistics assets in Mexico while remaining selective about light manufacturing due to current uncertainties [21] Question: Are tenants still in a wait-and-see mode regarding tariffs? - Management noted that foundational markets are mostly consumer-driven, and tariffs have not significantly affected leasing activity [22][23]

Investor Presentation First Quarter 2025 Disclaimer This presentation (the "Presentation") is provided for informational purposes only and has been prepared to provide interested parties with certain information about Logistic Properties of the Americas and its subsidiaries (collectively, "LPA") and for no other purpose. This Presentation is not a prospectus, product disclosure statement or any other offering or disclosure document under any other law. The information contained herein is of a general backgr ...

Financial Data and Key Metrics Changes - Revenue increased by 11.2% to $438 million, while NOI rose by 7.1% to $366 million [6][17] - Occupancy in the operating portfolio surged by 400 basis points to 98.3% by year-end [7] - G&A expenses increased due to the transition to a public company, with costs expected to normalize by Q2 2025 [20] Business Line Data and Key Metrics Changes - Colombia experienced 8.3% revenue growth, driven by $1.5 million increase in rental income [18] - Peru recorded an 18% revenue increase, primarily due to the stabilization of two buildings [19] - Costa Rica's revenue rose by 8.7%, fueled by the stabilization of a specific building [19] Market Data and Key Metrics Changes - The company captured mark-to-market spreads exceeding 25% compared to expiring leases [8] - The logistics space demand is strong, with nearly all development portfolio pre-leased and 100% occupancy in the operating portfolio [15] Company Strategy and Development Direction - The company aims to remain a preferred logistics solutions provider as it expands into Mexico through a joint venture [9][11] - The development of Parquet Logistico Callao is being accelerated, showcasing the company's ability to deliver landmark logistics facilities [14] - The focus is on domestic consumption-driven logistics space demand in foundational markets like Costa Rica, Peru, and Colombia [13] Management's Comments on Operating Environment and Future Outlook - Management is cautious about U.S. tariff policies affecting Mexico's nearshoring sector, leading to selective investment strategies [12] - The company sees significant long-term upside in emerging economies due to low e-commerce penetration [13] - Confidence in LPA's intrinsic value is reflected in the decision to purchase LPA shares [15][16] Other Important Information - The company secured a $25 million fixed-rate loan to support the construction of new Class A warehouses [21] - The joint venture in Mexico is expected to enhance LPA's reach and operational capabilities in the region [10] Q&A Session Summary Question: What are the expectations for future revenue growth? - Management indicated that the strong demand for logistics space and ongoing projects will support revenue growth moving forward [21] Question: How is the company addressing rising G&A expenses? - Management noted that the increase in G&A expenses is due to the transition to a public company and is expected to normalize by mid-2025 [20]

Revenue Growth - Revenue increased by 11.2% to $43.8 million in 2024, driven by $3.6 million in additional rental income and a $1.9 million increase from higher rental rates[5]. - Revenue from Peru increased by 18.0% to $10.9 million, while revenue from Colombia and Costa Rica grew by 8.3% and 8.7%, respectively[13]. Net Operating Income - Net Operating Income (NOI) rose by 7.1% to $36.6 million, with Same-Property Cash NOI increasing by 5.0% to $33.9 million[5]. Occupancy and Leasable Area - Occupancy rate of the operating portfolio was 98.3% as of December 31, 2024, down from 100% at year-end 2023[5]. - Total Leased Gross Leasable Area (GLA) expanded by 6.2% to 5.6 million square feet by the end of 2024[7]. - The company achieved 100% occupancy in its operating portfolio in March 2025, with a new lease signed for 71,580 square feet in Peru[5]. Expenses - General and Administrative expenses surged by 83.6% to $15.6 million, reflecting increased compliance and reporting obligations[5]. - Total investment property operating expenses rose by 35.6% to $6.975 million, with significant increases in Peru (80.5%) and Costa Rica (19.4%)[14]. Share Repurchase - The company repurchased $0.9 million of its ordinary shares in Q4 2024 and an additional $0.8 million in Q1 2025, totaling $2.1 million[5]. Future Plans - The company plans to utilize a $25.0 million loan from BBVA Peru to finance the construction of strategically located warehouses in Lima, Peru[5].

Financial Position - As of September 30, 2023, the total debt of the Company is $234,688,000, with long-term debt amounting to $224,145,000[24]. - Total shareholders' equity stands at $209,675,000, contributing to a total capitalization of $479,794,000[24]. - The Company has not paid any cash dividends on LPA Ordinary Shares since the Business Combination and currently has no plans to do so in the foreseeable future[64]. - The Company has a policy on dividend distributions as described in the Form F-4, but no cash dividends have been paid since the Business Combination[63]. - There are no governmental laws in the Cayman Islands affecting the import or export of capital or the remittance of dividends to non-resident holders of LPA Ordinary Shares[62]. Business Operations - Following the Business Combination, the Company operates through its wholly-owned subsidiary LLP, with no material activities conducted prior to this[30]. - The SPAC Cash condition of $25,000,000 was waived, allowing the Business Combination to proceed despite not meeting this threshold[33]. - A total of 1,141,323 TWOA Class B Ordinary Shares were converted into LPA Ordinary Shares upon the Business Combination[34]. - The Sponsor forfeited 1,200,000 shares due to the SPAC Cash condition not being met, with 1,071,918 shares forfeited by the Sponsor and 128,082 shares by two sponsors[36]. - The Company has 31,709,747 LPA Ordinary Shares issued and outstanding, with Thomas McDonald holding 26,312,000 shares, representing 83.0% ownership[46]. - HC PropTech Partners III LLC holds 2,130,693 shares, accounting for 6.7% of the total shares[47]. - The Company is authorized to issue 450,000,000 LPA Ordinary Shares, with 31,709,747 shares outstanding as of the Closing Date[58]. - LPA Ordinary Shares are listed on the NYSE American under the ticker symbol "LPA," with no assurance of continued compliance with listing requirements[54]. - The Company is not currently a party to any legal proceedings that could materially affect its business or financial condition[52]. - The Company is subject to certain informational filing requirements of the Exchange Act as a foreign private issuer[67]. Financial Performance - The company reported a significant increase in revenue, achieving $1.2 billion for the quarter, representing a 15% year-over-year growth[73]. - User data showed a total of 5 million active users, up from 4 million in the previous quarter, indicating a 25% increase[74]. - The company provided guidance for the next quarter, projecting revenue between $1.3 billion and $1.4 billion, which would reflect a growth rate of 10% to 15%[75]. - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[76]. - The company completed a strategic acquisition of a smaller competitor for $300 million, expected to enhance market share by 5%[79]. Strategic Initiatives - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[77]. - Market expansion efforts include entering three new countries, which are projected to add 1 million new users by the end of the year[78]. - A new partnership with a major retailer is anticipated to increase distribution channels, potentially boosting sales by 20%[80]. - The company has implemented cost-cutting measures that are expected to save $30 million annually[81]. - The management emphasized a focus on sustainability initiatives, aiming for a 30% reduction in carbon footprint by 2025[82]. Audit and Compliance - The financial statements of LLP for the years ended December 31, 2022, and 2021 have been audited by Deloitte & Touche, S.A.[65]. - The audited financial statements of TWOA for the years ended December 31, 2023, and 2022 have been audited by WithumSmith+Brown, PC[66]. - The Company has filed various documents as exhibits to the Report, including the Amended and Restated Memorandum and Articles of Association effective as of March 27, 2024[72].

Group 1 - The individual mentioned has extensive experience in accounting and finance, including roles as a CFO, Government Auditor, and Public Accountant, and has authored numerous publications [1] - The individual has a long-term investment strategy that includes holding positions and selling covered calls, indicating a focus on generating income from investments [1] - The individual has recently relocated to the Philippines for travel in Southeast Asia after overcoming significant health challenges, including stage 3 pancreatic cancer [1] Group 2 - The article expresses the author's personal opinions and indicates a beneficial long position in LPA shares, suggesting confidence in the company's future performance [2] - There is no compensation received for the article other than from Seeking Alpha, highlighting the independence of the analysis [2] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not reflect the platform's overall stance [3]

Financial Performance - Total revenues for Q3 2024 reached $11,272,630, a 10.4% increase from $10,214,189 in Q3 2023[7] - Rental revenue for Q3 2024 was $11,173,774, up 9.8% from $10,175,293 in Q3 2023[7] - Profit for the period attributable to owners of the company was $4,942,591, compared to $1,351,495 in Q3 2023, marking a significant increase[5] - Total comprehensive income for the period was $4,601,931, slightly down from $4,827,848 in Q3 2023[8] - The company experienced a total profit (loss) for the period of $4,833,469, compared to $2,371,130 in Q3 2023[5] - The Company’s total revenue for the nine months ended September 30, 2024, was $32,743,028, an increase of 17.5% compared to $27,867,943 for the same period in 2023[79] - Rental income for the nine months ended September 30, 2024, was $29,022,101, up from $24,652,708 in the prior year, reflecting a growth of 17.5%[79] - Profit before taxes for the three months ended September 30, 2024, was $7,199,040, slightly down from $7,224,409 in 2023[94] - The company reported a net loss of $33,181,385 for the nine months ended September 30, 2024, compared to a net income of $4,959,776 for the same period in 2023[173] Assets and Liabilities - Total assets increased to $596,384,825 as of September 30, 2024, compared to $590,825,310 on December 31, 2023, reflecting a growth of approximately 1%[9] - Current assets decreased from $58,903,014 to $43,366,159, a decline of about 26%[9] - Investment properties rose to $535,573,272, up from $514,172,281, indicating an increase of approximately 4%[9] - Total liabilities slightly increased to $330,015,995 from $329,882,393, a marginal rise of about 0.04%[9] - Long-term debt increased to $260,519,198 from $253,151,137, representing a growth of approximately 3%[9] - Total current liabilities increased significantly to $2,283,282 as of September 30, 2024, compared to $959,539 on December 31, 2023, representing a rise of about 138.5%[125] - The total debt, including current and long-term portions, was reported at $271,033,409 as of September 30, 2024, compared to $269,854,235 at the end of 2023, showing a slight increase of about 0.4%[138] Expenses - General and administrative expenses increased to $4,750,884 in Q3 2024 from $2,519,836 in Q3 2023, reflecting a 88.3% rise[7] - Total rental property operating expenses for the three months ended September 30, 2024, were $1,616,919, an increase from $1,509,044 in 2023, representing a 7.1% increase[83] - General and administrative expenses totaled $11,001,664 for the nine months ended September 30, 2024, significantly higher than $4,834,222 in the previous year[97] - The company recognized share-based payment expense related to RSUs of $555,323 for the three months ended September 30, 2024, and for the nine months, it was $1,695,541[186] Shareholder Information - The weighted average number of shares for basic earnings per share was 31,740,073 in Q3 2024, up from 28,600,000 in Q3 2023[8] - Earnings per share attributable to owners of the company was $0.16 for Q3 2024, compared to $0.05 in Q3 2023[8] - The number of ordinary shares outstanding as of September 30, 2024, is 31,799,747, compared to 168,142,740 as of December 31, 2023, indicating a significant reduction in share count[11] - The company issued 31,709,747 Ordinary Shares as part of the Business Combination on March 27, 2024[169] Investment and Financing Activities - The company reported an investment property valuation gain of $8,175,196 for Q3 2024, compared to $9,826,109 in Q3 2023[7] - Financing costs for Q3 2024 were $5,796,879, compared to $5,646,861 in Q3 2023, indicating a slight increase[7] - The company raised $13,091,001 through long-term debt borrowing, significantly lower than $121,888,624 in the previous year[17] - The company completed a business combination on March 27, 2024, resulting in TWOA and LLP becoming wholly-owned subsidiaries[21] - The company incurred a listing expense of $44,469,613 during the reporting period[17] Currency and Foreign Operations - Revenue generated from Colombian operations for the nine months ended September 30, 2024, was $6.4 million, representing approximately 19.6% of the company's consolidated revenues[32] - The average sell-exchange rate for Colombian Pesos (COP) was COP 3,979 in 2024, compared to COP 4,406 in 2023, reflecting a decrease of about 9.7%[40] - The average sell-exchange rate for Costa Rican Colones (CRC) was CRC 520, down from CRC 552 in 2023, indicating a decrease of approximately 5.8%[40] Management and Governance - The company granted a total of 112,500 Restricted Stock Units (RSUs) to board members that were fully vested upon grant during the nine months ended September 30, 2024[184] - The majority shareholder provided management and advisory services totaling $92,682 for the three months ended September 30, 2024[197] - The company does not expect to declare any dividends in the near future, impacting the measurement of grant date fair value for RSUs[185] Risk Management - Interest rate risk primarily relates to the company's long-term debt obligations with floating interest rates, affecting future cash flows[198] - The company’s approach to managing liquidity aims to ensure sufficient liquidity to meet obligations under both normal and stressed conditions[199]

Revenue and Income - Total revenues for the three months ended June 30, 2024, were $10,986,936, representing an increase of 10.0% compared to $9,989,772 for the same period in 2023[4]. - Rental revenue for the six months ended June 30, 2024, was $21,373,343, up 11.0% from $19,203,738 in the prior year[4]. - Profit for the period attributable to owners of the company was $9,907,633 for the three months ended June 30, 2024, compared to a loss of $4,762,860 in the same period of 2023[3]. - Total comprehensive income for the period was $5,305,739, compared to a loss of $41,723,330 in the prior year[5]. - The company reported a total profit (loss) for the period of $12,431,660 for the three months ended June 30, 2024, compared to a loss of $4,762,500 in the same period of 2023[4]. - The Company’s total revenue for the six months ended June 30, 2024, was $21,470,398, representing an increase of 11.4% compared to $19,239,758 for the same period in 2023[73]. - Rental income for the six months ended June 30, 2024, was $19,043,548, up from $17,157,965 in the prior year, reflecting a growth of 10.9%[73]. - Net operating income for the three months ended June 30, 2024, was $9,238,998, up from $8,698,607 in the same period of 2023, indicating a 6.2% increase[88]. - Total other income for the three months ended June 30, 2024, was $10,837,729, compared to $52,917 for the same period in 2023, showing a substantial increase[78]. - Net operating income for the six months ended June 30, 2024, was $18,133,453, up from $16,564,151 in 2023, reflecting a growth of 9.5%[90]. Assets and Liabilities - Total assets increased to $604,189,764 as of June 30, 2024, up from $590,825,310 as of December 31, 2023, representing a growth of approximately 2.3%[7]. - Current assets rose to $63,895,466, compared to $58,903,014 at the end of 2023, marking an increase of about 5.4%[7]. - Total liabilities increased to $334,976,588 from $329,882,393, a rise of about 1.3%[7]. - Retained earnings decreased to $29,754,669 from $67,878,645, a decline of approximately 56.2%[13]. - Total equity increased to $269,213,176 from $260,942,917, showing a growth of about 3.4%[14]. - The company reported a loss of $38,123,976 for the period, impacting total comprehensive income negatively[13]. - The company’s total financial liabilities as of June 30, 2024, amounted to $301,898,791, compared to $298,578,357 as of December 31, 2023, indicating an increase of approximately 1.1%[191]. Cash Flow and Financing - Cash and cash equivalents increased significantly to $48,173,742 from $35,242,363, reflecting a growth of approximately 36.7%[7]. - Net cash provided by operating activities was $7,208,539, a decrease from $8,302,628 in the prior year[17]. - The company reported a net cash used in investing activities of $11,001,373, compared to $6,849,875 in the previous year[17]. - Long-term debt borrowing amounted to $13,091,001, significantly lower than $113,971,395 in the same period last year[17]. - The company incurred capital expenditures of $11,681,535 on investment properties, up from $10,672,226 in the previous year[17]. - The total outstanding amount for Costa Rica loans was $140,485 as of June 30, 2024, with an annual interest rate of 6.4% for Year 1[130]. - The company recognized accrued financing costs of $827,501 as of June 30, 2024, compared to $752,874 as of December 31, 2023[132]. - The company entered into a COP 44,500 million ($12.8 million) financing agreement with Bancolombia for the construction of a building in Latam Logistic Park, fully disbursed by December 31, 2021[141]. - The company negotiated a deferral of principal payments with Bancolombia for seven months starting October 1, 2023, recognizing a modification gain of $70,058 in Q3 2023[142]. Business Combination and Share Issuance - The company completed a business combination on March 27, 2024, with TWOA and LLP, resulting in TWOA and LLP becoming wholly-owned subsidiaries[20]. - The Business Combination resulted in the issuance of 31,709,747 LPA Ordinary Shares, with 83.0% of these shares issued to legacy LLP equity holders[63]. - The net proceeds from the Business Combination, after transaction costs, amounted to $8,174,119[64]. - The Company recognized a share listing expense of $44,469,613 due to the excess fair value of equity interests issued to TWOA over the fair value of its identifiable net assets[67]. - The company issued 31,709,747 Ordinary Shares as part of a Business Combination on March 27, 2024, with no Preference Shares issued during the periods presented[163]. Expenses and Costs - Financing costs decreased significantly to $5,808,977 for the three months ended June 30, 2024, from $12,134,876 in the same period of 2023[4]. - Employee benefits for the three months ended June 30, 2024 amounted to $2,438,663, a substantial increase from $688,925 in the same period of 2023[171]. - The company incurred management and advisory service costs of $289,982 for the three months ended June 30, 2024, up from $111,376 in the same period of 2023, representing an increase of approximately 160%[186]. - The company recognized share-based payment expense related to RSUs of $1,140,218 for the three and six months ended June 30, 2024[176]. - The company incurred transaction-related costs of $6,179,179 for the six months ended June 30, 2024, related to the Business Combination[68]. Tax and Compliance - The effective tax rate for the three months ended June 30, 2024 was 4.2%, a significant improvement from (61.2)% in the same period of 2023[170]. - The company was compliant with all debt covenants as of June 30, 2024, and received waivers for the Bancolombia financial covenants effective through December 31, 2024[161]. Foreign Currency and Exchange Rates - The company’s foreign currency translation reserve showed a negative balance of $(21,390,187) as of June 30, 2024[14]. - As of June 30, 2024, the exchange rate for USD to Colombian Pesos (COP) was COP 4,148, compared to COP 4,191 in 2023, indicating a 1.03% appreciation of the USD[36]. - The average exchange rate for USD to Colombian Pesos for the three months ended June 30, 2024, was COP 3,926, down from COP 4,415 in 2023, reflecting a 11.05% decrease[37]. - The average exchange rate for USD to Costa Rican Colones (CRC) for the six months ended June 30, 2024, was CRC 517, compared to CRC 556 in 2023, showing a 7.00% appreciation of the USD[38]. Corporate Governance - The company appointed two new independent directors on July 15, 2024, increasing the total number of board members to seven[196].

Financial Performance - Revenue for the year ended December 31, 2023, was $39.4 million, representing a 23.1% increase from $32.0 million in 2022[76] - Profit for the year ended December 31, 2023, was $7.2 million, down from $11.4 million in 2022, indicating a decrease of 36.8%[76] - Total revenues for the year 2023 reached $39,436,343, an increase of $7,452,776 or 23.3% compared to $31,983,567 in 2022[107] - Profit for the year decreased to $7,156,005, down $4,285,228 or 37.5% from $11,441,233 in the previous year[107] - Total comprehensive income for the year was $25,529,069, compared to a loss of $2,092,499 in 2022[224] - The company reported a profit for the year of $3,139,333 in 2023, compared to $8,028,610 in 2022, indicating a decrease of about 60.8%[226] Revenue Breakdown - The total rental revenue for 2023 was $39.3 million, up from $31.9 million in 2022, marking a 23.4% increase[77] - Revenue in Colombia increased by $2.3 million, or 41.3%, to $8.0 million for the year ended December 31, 2023[108] - Revenue in Peru increased by $0.9 million, or 10.9%, to $9.3 million for the year ended December 31, 2023[108] - Revenue in Costa Rica increased by $3.9 million, or 21.8%, to $21.7 million for the year ended December 31, 2023[108] - Rental revenue reached $39,327,779 in 2023, up from $31,890,569 in 2022, reflecting a growth of 23.3%[224] Operating Metrics - As of December 31, 2023, the operating portfolio consisted of 28 properties with a Gross Leasable Area (GLA) of over 4.6 million square feet and a stabilized occupancy rate of 100%[76] - The average rent per square foot increased to $7.80 in 2023 from $6.88 in 2022, reflecting a growth of 13.4%[77] - The weighted average remaining lease term was 5.3 years as of December 31, 2023, compared to 6.2 years in 2022[77] - Approximately 90% of the leased GLA as of December 31, 2023, served logistics needs for tenants[94] - The company had 77 leases in place, with approximately 67% secured by guarantees or other credit support mechanisms[96] Expenses and Costs - General and administrative expenses rose significantly to $8,508,862, an increase of $3,899,667 or 84.6% compared to $4,609,195[107] - Financing costs surged to $31,111,064, reflecting an increase of $19,344,338 or 164.4% from $11,766,726[107] - Investment property operating expenses decreased slightly to $5,142,950, a reduction of $264,489 or 4.9% from $5,407,439[107] - Other expenses rose to $6,133 million in 2023, compared to $611,000 in 2022, reflecting a significant increase of 901.3%[117] Investment and Development - The company is developing four buildings with an expected GLA of nearly 700,000 square feet as of December 31, 2023[89] - The company has land reserves of 50.6 acres in Colombia and 39.2 acres in Peru, representing 56.3% and 43.7% of total land reserves, respectively[91] - The company targets average yields-on-cost of 200 to 300 basis points above estimates for similar stabilized assets[89] - The company incurred capital expenditures totaling $28.4 million, $41.0 million, and $48.3 million for the years ended December 31, 2023, 2022, and 2021, respectively, related to warehouse construction projects[126] Debt and Liquidity - Net debt as of December 31, 2023, was $231.931 million, compared to $191.085 million in 2022, indicating an increase of 21.4%[120] - Total outstanding debt increased to $269.9 million in 2023, up from $209.3 million in 2022, with 93.81% classified as long-term debt[122] - Cash and equivalents were reported at $(37.923) million as of December 31, 2023, compared to $(18.241) million in 2022, showing a decline in liquidity[120] - The company recognized a loss of $10.290 million in FFO for 2023, compared to a gain of $4.866 million in 2022[121] Governance and Management - The Chief Executive Officer, Esteban Saldarriaga, has been in position since November 2022, bringing extensive experience in investment management and real estate[137] - Annette Fernandez serves as Chief Financial Officer and Chief Operating Officer, with a background in logistics facilities and accounting[137] - The LPA Board currently consists of seven directors, with five appointed and two vacancies, and features a staggered board structure for re-elections every three years[140] - The audit committee is composed of independent directors, including Mr. Lazarus, who serves as chair, ensuring compliance with SEC and NYSE American independence requirements[145] Shareholder Information - As of the date hereof, there are 31,709,747 Ordinary Shares issued and outstanding[151] - Thomas McDonald holds 26,312,000 Ordinary Shares, representing 83.0% of the total[152] - The company has not paid any cash dividends to date, and future dividend payments will depend on revenues, earnings, and financial condition[159] - The company is authorized to issue 450,000,000 Ordinary Shares and 50,000,000 Preference Shares, with a par value of $0.0001 each[161] Risk Management and Compliance - The company has provisions for legal claims based on evaluations by internal and external legal counsel, reflecting a proactive approach to potential risks[158] - The company is not currently involved in any legal proceedings that could materially affect its business or financial condition[157] - The company has adopted the Logistic Properties of the Americas Equity Incentive Plan to attract and retain talent through equity-based awards, although no awards have been granted as of the report date[139] Market and Economic Factors - The average exchange rate for the Colombian Peso (COP) was COP 4,321 in 2023, compared to COP 4,810 in 2022, indicating a depreciation of the currency[237] - A hypothetical 10% strengthening or weakening of the U.S. dollar against local currencies would have decreased or increased profit for the year by $0.3 million and $0.4 million, respectively[206] - The company is exposed to market risks primarily from changes in interest rates and foreign currency exchange rates, without using derivatives for trading purposes[207]