Logistic Properties of the Americas Announces Second Quarter 2024 Earnings Results
Yearly Revenue Growth of 10% Highlights Strong Performance
SAN JOSÃ%, Costa Rica--(BUSINESS WIRE)--August 14, 2024--
Logistic Properties of the Americas (NYSE American: LPA) (together with its subsidiaries, "LPA" or the "Company"), a leading developer, owner, acquirer and manager of logistic and industrial real estate of international quality in Central and South America, and one of the few, internally managed, vertically-integrated, and institutional platforms operating across the region, today announced unaudited financial results for the three months ended June 30, 2024 ("second quarter 2024" or "2Q24"). Financial results are expressed in U.S. dollars and are presented in accordance with International Financial Reporting Standards ("IFRS"), which differs in certain significant respects from U.S. GAAP. This information should be read in conjunction with, and is qualified in its entirety by reference to, the Company's consolidated financial statements, including the notes thereto. Financial results are preliminary and subject to year-end audit and adjustments. All comparisons in this announcement are year-over-year ("YoY"), unless otherwise noted. LPA's financial results are stated in US dollars unless otherwise noted.
2Q24 Financial and Operating Highlights
-- Operating portfolio occupancy ended 2Q24 at 94.6%, due to expected
lease expirations in Colombia and Peru.
-- Average rent per square foot increased 11.3% YoY to $ 7.87 in 2Q24 from
$ 7.07 in 2Q23 and is in line with embedded automatic escalators that the
company has in its contracts.
-- Revenue increased 10.0% to $11.0 million in 2Q24, primarily due to
increases of 20.7% in Peru and 9.3% in Costa Rica, more than offsetting a
2.3% decline in Colombia primarily attributable to the sale of a building
during the fourth quarter of 2023.
-- Net Operating Income (NOI) increased 6.2% to $ 9.2 million in 2Q24 from
$8.7 million in 2Q23, and Same-Property Cash NOI Increased 8.5% during
the same period.
-- Net Earnings Attributable to Owners of the Company reached $9.9 million,
compared with a Net Loss of $4.8 million in 2Q23. Earnings per Share
Attributable to Owners of the Company-basic and diluted of $ 0.31, up
from a loss of $0.17 in 2Q23.
-- In April 2024, the Company refinanced secured loans of $46.6 million
with BAC Credomatic, S.A. with a new secured facility of $60.0 million
with the same lender, to continue financing the development of the La
Verbena Logistics Park in Costa Rica. The new secured facility bears a
lower interest rate (from 378 bps to 200 bps above SOFR) and extends the
maturity date from July 2031 to April 2039.
Subsequent Events
-- On July 15, 2024, LPA announced that Françoise Lavertu and Javier
Marquina had been appointed as independent directors, augmenting the
Company's board to a total of seven members and the number of independent
directors to six.
CEO Commentary
LPA's portfolio of operating assets delivered a solid performance in the second quarter of 2024, driven by favorable underlying market trends and leasing dynamics. Revenues increased 10% year-over-year to $11.0 million, as more of our leases were marked-to-market upon renewals, and we signed leases for a recently completed industrial park in Costa Rica with several tenants, including a Fortune 500 company. Our net operating income grew 6.2% to $9.2 million for the second quarter. It is important to note that G&A expenses were markedly higher, mainly due to one-time costs related to LPA going public, and additional costs which will be recurring as we assume heightened auditing and reporting obligations under US regulations.
The quarter also brought unexpected fee income obtained from releasing certain shareholders from lock-up agreements when LPA's share price activity warranted these releases. The cash benefit bolsters our funding toward expanding LPA's portfolio.
Our operating GLA increased 7.5% to 5.0 million square feet during the first half of 2024, with leased GLA decreasing 5.9% to 5.0 million square feet. Stabilized occupancy decreased 540 basis points to 94.6% during the same period, as we are patient and highly selective in our re-leasing efforts, particularly in Colombia, where positive mark-to-market spreads can range between 25% and 40%. The lack of incoming supply in this market over the last 18 months allows us to search for higher-value and option-constrained tenants who need our premium product.
Our finance team continues to identify ways to increase LPA's capital efficiency. In April, we successfully refinanced the $60 million facility for our La Verbena Logistics Park in Costa Rica. With this refinancing, we lowered the interest rate by 178 basis points and extended the maturity profile of the facility to a 20-year amortization tenor.
To conclude, we believe our future remains bright, and LPA is only in its early stages. Based on our strong track record of success, we intend to continue focusing on delivering world-class products and capital solutions for our tenants, and investing patiently, all while maintaining a high level of operational excellence.
Esteban Saldarriaga
Chief Executive Officer
Real Estate Portfolio
Real Estate Portfolio
As of June 30, As of December As of June 30,
2024 31, 2023 2023
Number of
operating real
estate
properties 29 28 28
Operating GLA
(sq. ft) 4,965,171 4,618,806 4,615,743
Leased area (sq.
ft) 4,996,538 5,308,454 4,681,774
Number of tenants 50 53 53
Average rent per
square foot 7.87 7.80 7.07
Weighted average
remaining lease
term 5.3 years 5.3 years 5.1 years
Stabilized
occupancy rate
(% of GLA) 94.6% 100.0% 99.4%
----------------- --------------- --------------- ----------------
Financial Performance
Revenues
(amounts expressed in thousand dollars, unless otherwise noted)
Three- months ended June 30
-------------------------------------------
2024 2023 % Chg.
Rental revenue
Colombia 2,019 2,067 -2.3%
Peru 2,935 2,433 20.7%
Costa Rica 5,993 5,482 9.3%
Unallocated revenue 40 8 375.6%
Total revenue 10,987 9,990 10.0%
-------------------- ------ ----- ------
Investment Property Operating Expenses
(amounts expressed in thousand dollars, unless otherwise noted)
Three- months ended June 30
--------------------------------------------------------------------
2024 2023 % Chg.
Investment property operating expense
Colombia -291 -259 12.5%
Peru -545 -483 12.7%
Costa Rica -872 -541 61.3%
Total Investment Property Operating expense -1,708 -1,283 33.2%
-------------------------------------------- ------ ------ ------
Operating Performance
(amounts expressed in thousand dollars, unless otherwise noted)
Three- months ended June 30
----------------------------------------------------------------------
2024 2023 % Chg.
Total revenues 10,987 9,990 10.0%
Total investment property operating expense -1,708 -1,283 33.2%
General and administrative -4,557 -1,076 323.4%
Investment property valuation gain 4,551 305 NM
Interest income from affiliates 0 158 -100.0%
Financing costs -5,809 -12,135 -52.1%
Net foreign currency (loss) gain -158 64 -345.6%
Gain on sale of asset held for sale 0.0 1,023 -100.0%
Other income 10,838 53 NM
Other expenses -1,172 -54 NM
Profit (loss) before taxes 12,971 -2,955 NM
Income tax expense -539 -1,808 -70.2%
PROFIT(LOSS) FOR THE PERIOD 12,432 -4,763 NM
NM- not meaningful
-------------------------------------------- ------ ------- -------
Supplemental Information
Please refer to LPA's quarterly Supplemental Information and Management Discussion and Analysis, available on the Company's Investor Relations website at https://ir.lpamericas.com
2Q24 Earnings Conference Call
When: 9:00 a.m. Eastern Time, August 15, 2024
Who: Mr. Thomas McDonald, Chairman of the Board, Mr. Esteban Saldarriaga, Chief Executive Officer, Mr. Paul Smith, Chief Financial Officer, Ms. Annette Fernandez, Chief Operating Officer, Ms. Juliana Dominguez, Investor Relations
Dial-in: 1 800 715 9871 (U.S. domestic); 1 646 307 1963 (International)
Passcode: 7886580
Pre-Register: You may pre-register at any time: click here. To access LPA's financial results call via telephone, callers need to press # to be connected to an operator.
Webcast: click here
The call recording will also be available for replay on LPA's website for a limited time.
About Logistic Properties of the Americas
(MORE TO FOLLOW) Dow Jones Newswires
August 14, 2024 18:00 ET (22:00 GMT)
Comments