Logistic Properties of the Americas

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 Camilo Ulloa, Investor Relations. Please go ahead, sir.

Welcome to LPA's third quarter 2025 earnings conference call. My name is Camilo Ulloa 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 LTA's financial and operating results, 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. Forward-looking statements made during this call are subject to a number of risks and uncertainties which are discussed in LTA's filings with the SEC. Our actual 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 supplemental materials that we may reference during the call. We encourage you to visit our website ir.lpamericas.com to download these materials. Please also note that all comparisons that we will discuss during today's call are year-over-year, unless we note otherwise. Esteban will begin today's quarterly review. Esteban, please go ahead.

Thank you, Camilo, and good morning, everyone. Thank you for joining our results call. Our international logistics platform continued to perform very well in the third quarter, delivering mid-teen revenue growth driven primarily by Peru and Colombia. where domestic consumption remains healthy and leasing conditions highly favorable. Although not observable in our 3Q figures, just last week we leased the remaining available space in our operating portfolio in Bogota to a now cross-border customer, one that is renting space in Costa Rica. This is another clear indication of sustained demand and customer preference for our high-quality logistics facilities and the benefit of our regional model. Also, we expect the leasing of our Bogota facility to take us to full lease status by the end of 2025. It's important to highlight that Mexico contributed to the 14.3% revenue increase in the third quarter, supported by a recent acquisition of two logistics facilities in Puebla, which are anchored by DHL under a five-year dollar denominated lease. This marks the first of many investments we expect to make in Mexico, both organic and inorganic, as we systematically and thoughtfully expand into this large and attractive market. That expansion enables us to grow alongside our existing multinational customers while positioning us to win new ones that operate across multiple jurisdictions where we have a presence. As a reminder, we plan to grow in Mexico through strategic, purpose-driven partnerships, such as our collaboration with ALES and the recent acquisition of the Puebla facilities. By combining our partners' deep local market insights with LPA's operational and institutional expertise, we can acquire mission-critical logistics assets in ideal locations and couple this with our development capabilities when supported by market conditions. In some cases, partners may also contribute land, similar to one of our latest developments in Costa Rica, a 750,000-square-foot facility that represents a high-value project, the financing of which we arrange with local equity investors, thus enhancing LPA's rate of return while enabling us to continue serving customers that are growing in this market. We remain mindful of uncertainty stemming from evolving tariff policies in Mexico. However, recent data is encouraging. Vacancy levels in key northern markets, such as Juarez, have begun to abate. Closing rents remain resilient across most submarkets, especially in Mexico City, and net absorption continues to recover. Importantly, our investment strategy in Mexico is initially focused on submarkets driven by domestic consumption. the same resilient demand profile that underpins our success in LPA's foundational markets. We continue to find attractive opportunities where demand for premium logistics facilities remains strong and which we are continually assessing. Turning to the other markets in our asset portfolio, we are advancing several high-quality developments. Construction at Parque Logístico Callao in Lima, Peru is moving ahead efficiently, with building 300 already delivered on November 3rd to one of the world's largest food and beverage companies. To our knowledge, this is the first LEED gold logistics building in Peru and attests to the demanding specifications that only a company like LPA can credibly deliver on time and on budget. Without a doubt, this is a significant milestone in elevating the quality and sustainability of logistics infrastructure in the region where LPA is a leading operator in this compelling market segment. We're also progressing with construction of Building 200 on that same complex, and where 75% of the GLA in both buildings is pre-leased under dollar-denominated contracts that will contribute to rental growth in 2026. Returning to our third quarter results, revenue for the quarter reached close to $13 million. driven by higher leasing rates as we mark our portfolio to market, by the addition of newly delivered facilities, and also by robust occupancy. We ended the quarter with 98% of our GLA under contract, a testament to the strength of our markets and enduring customer relationships. Third quarter NOI was also gratifying, increasing 8.7% to 10.4 million compared to third quarter 2024. For the first nine months of 2025, revenue and NOI grew 11.2% and 6.2%, reaching $36.4 million and $29.4 million, respectively. With leasing renewals for the next 12 months now completed across our operating portfolio, we have a solid operational foundation and strong visibility heading into 2026. We therefore continue to envision sustained double-digit revenue growth. On the cost side, we're pleased to highlight that SG&A decreased 5% year-over-year. We expect expenses to remain relatively stable, creating meaningful operating leverage as we further expand our property portfolio, rollover leases to market rates, and thus bolster revenue generation. Before turning the call over to Paul, I think it is important to address the recent performance of LPA share price. Since the expiration of the 18-month lockup period on September 27th, as explained in our filings and related to legacy shareholders from our business combination last year, our stock has faced notable pressure. While volatility can be expected around a lockup event, our focus remains firmly on execution. Moreover, our fundamentals continue strengthening quarter over quarter, and our strategy is delivering clear results. We're also actively enhancing our communication with the market to help ensure that investors see the depth of our operational progress, our growing profitability, and the long-term value embedded in LPA's expanding international platform. Most importantly, we remain confident in the trajectory of our business. Even as we navigate industry and market headwinds that arise, such as this lower than expected easing of interest rates and noisy political headlines, We are steadfast in advancing our strategic plans, and we are doing this from an advantageous position. And when monetary policy, especially in the U.S., eventually turns into an economic tailwind, we expect the underlying performance and strength of our company to be even more visible to the market. With that, I'll turn it over to Paul to discuss our third quarter financial results in more detail.