Logistic Properties of the Americas(LPA) - 2024 Q2 - Quarterly Report

Revenue and Income - Total revenues for the three months ended June 30, 2024, were $10,986,936, representing an increase of 10.0$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$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$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$48,173,742 from $35,242,363, reflecting a growth of approximately 36.7$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].