Logistic Properties of the Americas

Please stand by. Your program is about to begin. If you need assistance during your conference today, please press star zero. Good morning and welcome to LPA's third quarter 2024 earnings conference call. My name is Shelby and I will be the operator for today's call. At this time, all participants are in a listen-only mode. And please note that this call is being recorded. There will be an opportunity for you to ask questions at the end of today's presentation. Now, I would like to turn the call over to Mr. Camilo Ulla, Investor Relations. Please go ahead, sir.

Welcome to LPA's Third Quarter 2024 Earnings Conference Call. My name is Camilo Ulla with LPA's Investor Relations Team. Joining me on today's call are Esteban Saldarriaga, our Chief Executive Officer, Paul Smith, our Chief Financial Officer, and Annette Fernandez, our Chief Operating Officer. Before we proceed with our review of LPA's financial and operating results for the third quarter of 2024, please note that the information presented during this call is intended for informational purposes only and does not constitute an offer to buy or sell any securities. What we're looking at statements made during this call are subject to a number of risks and uncertainties, which are discussed in LPA's filings with the SEC. Our active results, performance, and prospective opportunities may differ materially from those expressed or implied in these statements. We undertake no obligation to update or revise any forward-looking statements after this call. We have prepared supplementary materials that we may reference during this call. We encourage you to visit our website, ir.ltamericas.com, to download these materials. With that, I turn the call over to Simon.

Thanks, Camilo, and good morning, everyone. Thank you for joining our earnings call. During the third quarter, our diversified, vertically integrated real estate platform continued to perform well. Revenue and NOI both grew just over 10%, while our leased occupancy increased 390 basis points to 98.5%. It is important to note that when leasing available space, We maintained our patient and disciplined approach and have successfully capitalized on acute supply, demand, and balances that resulted in leasing spreads that had increased by 25 to 40% in Colombia compared to prior year. In addition to capturing the sizable mark-to-market spreads, we waited for select tenants such as Porsche and DSV, one of the world's largest global transport and logistic companies, both of which, meet our exacting criteria, not only as reliable counterparties, but also as potential partners for regional market growth. We're also delivering on our long-term value-creating strategy and are delighted to have entered into a binding agreement this month to form a strategic partnership with Inmobiliada y Constructora ALAS, also known as Falcon, a prominent real estate developer in Mexico, which marks our entry into the Mexican market. This transaction is expected to close in 2025 and will grant LPA a controlling interest in two strategically located assets in Puebla, Mexico, an important automotive manufacturing hub that plays an integral role in Mexico's nearshoring industry. Additionally, DHL is an anchor tenant at the new properties, which underscores their strategic location. This particular investment also helps to further diversify the sectors we serve because it gives us more exposure to light manufacturing. Our joint venture with Falcon will give LPA an initial strategic foothold in Mexico, enabling us to tap into a growing internal demand for institutional quality facilities led by strong nearshoring trends and e-commerce tailwinds. Furthermore, Mexico's export-driven economy will provide LPA direct exposure to today's robust U.S. consumption, while diversifying our portfolio risk with new tenants de-linked to our current tenants in Colombia, Peru, and Costa Rica. As we noted in our recent press release, our strategic partnership with Falcon will grant us immediate access to their extensive experience in Mexico's industrial and logistics market, gain through more than 65 years of operation, firmly establish relationships with Mexico's key landowners, and a solid local network of clients and developers. Our new partner will provide us boots on the ground with substantial expertise, deeply rooted local relationships, and an intimate understanding of the local market's nuances and regulations. Simply put, the partnership with Falcon will be our springboard to grow in Mexico and serve as LPA's local office. This opportunity with Falcon arose through LPA's existing network in Mexico, leveraging our senior management's deep business relationships gained through decades of experience in this market. Additionally, LPA's U.S. public listing raised our profile while strengthening our reputation through the increased transparency and elevated governance standards required from a public company. Lastly, LPA's strong balance sheet and ample financial flexibility remain a meaningful competitive advantage for our company, which also allows us to remain a partner of choice within the region. I'll now hand over the call to Paul to discuss our third quarter financial results in more detail. Thanks, Esteban.