Logistic Properties of the Americas

My name is Audra, and I will be your 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 Ulloa, Investor Relations. Please go ahead, sir.

Welcome to LPA's first quarter 2025 earnings conference call. My name is Camilo Yoa with LPA's Investor Relations Team. Joining me on today's call are Esteban Saldarriaga, our Chief Executive Officer, and Paul Smith, Chief Financial Officer. Before we proceed with our review of LPA's financial and operating results, please note that the information presented through this call is intended for informational purposes only. and does not constitute an offer to buy or sell any securities. Forward-looking statements made during this call are subject to a number of risks and uncertainties which are discussed in LPA's findings with the SEC. Our actual results, performance, and prospective opportunities may differ materially from those expressed or implied in these statements. We undertake an obligation to audit or revise any forward-looking statements after this call. We have prepared supplemental materials that we may reference during the call. We encourage you to visit our website, ir.lpamericas.com, to download these materials. Esteban will begin today's review. Esteban, please go ahead.

Thank you, Camilo, and welcome, everyone. Thank you for joining our earnings call. LPA's growth accelerated in the first quarter, with revenue increasing 12.9% to $11.8 million, and NOI growing almost 6% to $9.4 million. Leading this growth was Peru, as we continued cultivating our existing customers and deepening our relationships with them. These are regional and global companies operating as third-party logistics providers such as Switzerland-based Cunanago, that continue expanding in Peru, which has a thriving domestic economy thanks to strong consumer spending trends and highly favorable e-commerce tailwinds. The country currently enjoys low inflation, minimal government debt, and low unemployment, with foreign trade bolstered by high-performing mining commodities like copper and gold. As such, Peru hasn't been identified as a target for U.S. tariffs, nor have our other foundational markets, Colombia and Costa Rica. They also have similar healthy economic profiles and trends, and their operations in both countries also contributed to a revenue growth in the first quarter. Returning to Peru at our Lima Sewer Park, which consists of six buildings totaling around 1.3 million square feet, we signed a new lease during the quarter with one of our longstanding global customers. a leading logistics company that also leases space from us in Colombia. This lease brought our entire operating portfolio of 5.6 million square feet to 100% occupancy, marking a major milestone that further strengthens the long-term value of our regional platform. Rental revenues from these recent contracts have not yet been fully reflected in our cash flow statement, but will begin to be over the coming months as customers settle into their space. On the development front, as we announced last month, we will increase our footprint in Lima with the construction of a 215,000 square foot building at Parque Logístico Callao. Reflecting the scarcity of premium logistics facilities in the market, this planned building is already 73% pre-leased, even before construction started, by repeat customers, one of which is Peru's largest consumer products company, and the other, the country's largest pharmacy chain. Consistent with our business model, these are dollar-denominated leases. Keep in mind that once completed, our Callao Park will eventually comprise of four premium buildings totaling over 1 million square feet, with only one last pad pending lease up and development launch. It's a prized location, one that's adjacent to Lima's International Airport, serving more than 10 million people in the capital city. roughly a third of the country's population, and which also provides seamless connectivity to the maritime port of Cajal. This location exemplifies the high barrier nature of our foundational markets, where ownership of land is often fragmented, making land acquisitions difficult for development purposes. In this case, we worked with an institutional concessionaire that needed a strategic partner like LPA. a trusted institutional level player with a demonstrated track record and a strong reputation for development and operational excellence. LPA is a clear partner of choice for customers, evidenced by GLA expansions by companies already in a rent role. And growing with our clients also means serving some of those that are expanding in Mexico. It's a country with a far larger economy, and it's a new avenue of long-term growth for LPA. another way we intend to replicate our success there of course we are mindful of the uncertainty around emerging u.s tariff policies and their potential impact on mexico's nearshoring sector which policies will be ultimately implemented and what their impact might be can be predicted at this time but we remain constructive on this country in the medium and long term in the meantime Our approach to investment in Mexico remains disciplined, methodical, and highly selective. We will avoid sectors heavily reliant on certain targeted exports, focusing instead on growing demand for logistics space in key submarkets, demand that's driven by resilient domestic consumption, similar to the favorable economic dynamics of our foundational markets. By way of example, 39 new investments were announced during the first quarter according to Mexico's economy ministry. Of the nearly 26 billion in aggregate investment, 43% is commerce related, reflecting a shift toward projects aimed at the domestic market amid the growing uncertainty about the export sector. A recent example of this is DHL's 120 million expansion at its air hub in Querétaro. As a reminder, we intend to work with Mexican partners who have deep relationships in the country, as well as crucial local market knowledge and expertise. Our first investment through LPA's joint venture with Falcon will give us a controlling interest in two logistics assets located in Puebla, giving us a strategic foothold in Mexico, as well as DHL as an anchor customer. As mentioned on our previous earnings call, we are making steady progress towards completing this transaction. We have successfully established our Mexican legal entities, completed due diligence. The asset is performing in line with expectations, and we anticipate announcing the closing soon. With that, I'll pass the call over to Paul, who will expand a bit on our first quarter results.