Logistic Properties of the Americas(LPA) - 2023 Q4 - Annual Report

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]