Financial Data and Key Metrics Changes - Revenue increased by 12.9% to $11.8 million and NOI grew almost 6% to $9.4 million in Q1 2025 [5] - Average rent per square foot increased by 1.9% across the property portfolio compared to Q1 2024 [14] - Net debt to adjusted EBITDA improved, decreasing by 30 basis points over the same period [17] Business Line Data and Key Metrics Changes - Peru, representing 29% of the 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 economy is characterized by low inflation, minimal government debt, and low unemployment, contributing to strong consumer spending [5] - Mexico is viewed as a new avenue for long-term growth, with a focus on logistics rather than light manufacturing due to tariff uncertainties [10][12] Company Strategy and Development Direction - The company aims to replicate its success in Mexico while being selective in investments, focusing on logistics space driven by domestic consumption [10][12] - Plans to increase footprint in Lima with a new 215,000 square foot building, already 73% pre-leased [7] - The company maintains a strong pipeline of near and long-term investment opportunities in foundational markets and Mexico [26] Management's Comments on Operating Environment and Future Outlook - Management remains constructive on Mexico's medium and long-term prospects despite tariff uncertainties [10] - The foundational markets are demonstrating resilience, with expectations for additional NOI growth this year [26] - The company emphasizes the importance of being selective about customers and investments to scale its regional platform [26] Other Important Information - The company achieved 100% occupancy across its operating portfolio of 5.6 million square feet [7] - G&A expenses increased by 112% due to higher professional services and D&O insurance expenses [16] - The company repurchased $800,000 worth of ordinary shares during the quarter, totaling 2.1 million buybacks [17] Q&A Session Summary Question: Is the company shying away from light manufacturing in Mexico? - Management prioritizes logistics assets in Mexico and is being selective regarding light manufacturing, particularly in the auto sector [20][22] Question: Are tenants still in a wait-and-see mode regarding tariffs? - Management indicates that foundational markets are mostly consumer-driven, and tariffs have not significantly impacted leasing activity [21][24]
Logistic Properties of the Americas(LPA) - 2025 Q1 - Earnings Call Transcript