AUS
NZ
UK
CA
USA
IND
Key Highlights:
- Revenue grows 10.4% year-over-year to $11.3 million, driven by growth in Peru and Costa Rica.
- Net Operating Income rises 10.3% to $9.6 million, with high portfolio occupancy of 98.5%.
- Net earnings surge 266% to $4.9 million, reflecting a significant improvement in profitability.
Logistic Properties of the Americas (NYSE:LPA) has announced financial results for Q3 2024, showcasing continued growth in its key markets. The company, which specializes in industrial real estate in Latin America, reported a 10.4% increase in revenue, reaching $11.3 million. This growth was primarily driven by strong performances in Peru and Costa Rica, where revenue grew by 26.4% and 9.5%, respectively. These gains helped offset a 7.1% decline in revenue from Colombia, a market that faced some headwinds during the quarter.
The company’s net operating income (NOI) also saw healthy growth, rising 10.3% year-over-year to $9.6 million. This was driven by the strong revenue increase and continued high occupancy across its operating portfolio, which achieved an impressive 98.5% leased rate. The leasing activity has been a key contributor to the company’s strong results, with notable new tenants including Porsche and DSV, both of whom signed long-term leases with LPA. These new agreements led to an average rate increase of 28%, which further bolstered the company's revenue outlook.
In terms of profitability, LPA saw a remarkable 266% increase in net earnings, which surged to $4.9 million in Q3 2024 compared to $1.3 million in the same quarter last year. This surge in net earnings translated into a significant increase in earnings per share (EPS), which rose to $0.16 basic and $0.15 diluted, a sharp improvement over the prior year’s figures.
The company also experienced a year-over-year increase in average rent per square foot, which rose by 4.9% to $7.92, reflecting higher leasing rates and strong demand for its properties. The continued growth in rent rates and high occupancy levels indicate that LPA’s portfolio is well-positioned in the industrial real estate market, especially in its core Latin American markets.
Despite these positive results, there were some challenges in Q3 2024. The company faced a 7.1% revenue decline in Colombia, which has been a slower market for LPA, reflecting broader economic conditions in the region. Additionally, general and administrative (G&A) expenses surged by 88.5%, driven by increased investments in corporate infrastructure and expansion efforts. This contributed to a slight increase in overall operating expenses during the quarter. Furthermore, LPA saw a 16.8% decrease in the valuation gain of its investment properties, a factor that weighed on the company’s broader financial performance.
Another challenge was a slight decline in the operating Gross Leasable Area (GLA) occupancy rate, which fell from 100% in Q3 2023 to 94.5% in Q3 2024. This reduction is partly due to ongoing market dynamics and the transition of some spaces between tenants, though LPA’s high overall occupancy rate indicates the resilience of its portfolio.
Looking forward, Logistic Properties of the Americas remains confident in its ability to maintain strong growth in the coming quarters, particularly as it continues to expand in key Latin American markets and secure new, high-quality tenants. With a solid lease portfolio, strong earnings growth, and a commitment to strategic investments, LPA is well-positioned to capitalize on the growing demand for industrial real estate in the region.
