Logistic Properties of the Americas

Good morning, and welcome to LPA's fourth quarter 2025 earnings conference call. My name is Carly, and I will be the operator for today's call. At this time, all participants are in listen-only mode. 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. Camillo Ulloa, Investor Relations. Please go ahead, sir.

Welcome to LPA's four-quarter and full-year 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 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 LPA'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 review. Esteban, please go ahead.

Good morning, everyone. Thank you for joining our latest earnings call. Without a doubt, 2025 was a great and transformational year in many respects for LPA. Not only did we make significant inroads into Mexico, our fourth operating geography that is characterized by sizable and promising submarkets, but also a year in which the increase in the scope and reach of LTA's real estate platform accelerated. Furthermore, our fundamentals are shining bright. To start off, we increased operating GLA by over 13% while delivering a 23.3% increase in fourth quarter revenue and 14.3% for the full year. Benefiting from enhanced operating leverage, our earnings power also strengthened. We posted significant bottom line profitability in 2025, our first full year as a public company. Particularly noteworthy in demonstrating the growth push that we had conveyed to the market was that net operating income grew by 29.8% in the quarter and 11.9% in 2025. Let me repeat that. NOI expanded almost 30% in the last quarter of 2025 compared to the same quarter the previous year. This level of growth speaks to the new speed that we envisage in 2026. In other words, LPA's NOI momentum is anticipated to be carried over into 2026, and we intend to continue building on top of it. By every key measure, we did everything that we said we would accomplish in 2025. The year's impressive results reflect the continued maturation of our international logistics platform, the importance of adding solid talent to our teams, strong tenant demand across our markets, and the rental upside embedded in our portfolio. More specifically, our strong growth was also supported by achieving full occupancy across our operating portfolio, higher leasing rates, and the addition of the assets we acquired in Mexico last August. And despite having reached 100% occupancy by quarter end, which provides clear evidence of the quality of our team, customer relationships, and real estate assets, we know that we still see opportunities to capture additional rental upside embedded in pockets of our property portfolio as leases roll over to higher market rates and as our new development projects come online this year. Moreover, we're only just getting started in Mexico, a far larger market where we see select opportunities to invest in expanding key logistics sub-markets that have similar demand underpinnings and resiliency as our foundational markets. As announced last week, we took a major step towards visibly increasing our presence in Mexico through a strategic partnership we have forged with Fortin Capital, one of Mexico's leading institutional real estate investors, representing roughly a $200 million investment to be deployed over time. Under a master forward purchase agreement with Fortin, LPA will progressively acquire, stabilize, dollar-denominated Class A assets within Central Park 57, a modern, large-scale industrial and logistics park that is strategically located along Federal Highway 57, a key logistics corridor in the state of Hidalgo. The park provides express connectivity to Mexico City, the state of Mexico, Querétaro, and Bajio. all of which are economically vibrant areas of the country that collectively account for approximately 35% of Mexico's population and potentially even more economically based on purchasing power. Our high investment conviction is driven by the fact that this particular site offers a power ready and cost effective option for companies seeking dual highway connectivity along the greater Mexico City logistics corridor. Once completed, Central Park 57 will have approximately 2.1 million square feet of GLA in a layout that will consist of eight buildings, which our partners with our assistance will endeavor to have fully operational over the next couple of years, with LPA ultimately becoming the beneficial owner of the park. To fund this purchase program, we expect to employ a combination of traditional debt financing, local equity partners, and LPA's proceeds from selective asset recycling initiatives in other geographies. Importantly, our institutional partnership with Fortum both accelerates and de-risks our expansion in Mexico, which will be a new phase of growth for LPA on a much larger scale. The partnership provides a clear line of sight to a substantive growth pipeline, one representing a 36% increase in GLA in our total operating portfolio as compared to year-end 2025. And because the partnership enables our international platform to sequentially acquire operating and delivered properties over time, this approach meaningfully mitigates construction and commercial risks. Regarding the overall market picture that we see for Mexico in 2026, we are encouraged by the recent US Supreme Court ruling on tariffs, but remain mindful of shifting tariff policies, the USMCA negotiations, and continue to focus on resilient submarkets in Mexico that are driven by mostly domestic consumption rather than trade. Through that lens, our underground team and our growing network of local relationships, we continue identifying existing logistics assets as well as attractive development opportunities where there are pockets of strong demand for modern logistics facilities in key logistics corridors. The most recent data for Mexico's real estate market is also encouraging. In the fourth quarter, rents continued to gradually increase, while net absorption improved on still limited new supply, as well as high unstable occupancy levels. Furthermore, construction activity was still restrained. Turning to our other markets, we are also pleased to highlight our stellar performance in them. Starting with Peru, PepsiCo has occupied building 300 in Parque Logístico Callao, which is a significant driver of our fourth quarter growth. The new 254,000 square foot facility is LEED Gold certified, and the first and only of its kind in Peru. Strategically located adjacent to Lima's International Airport, the park also provides seamless connectivity to the marine port, as well as direct access to the metropolitan areas, more than 10 million consumers. Additionally, construction of a fourth 215,000 square foot building within the park remains on time and on budget for delivery in the second quarter and will contribute additional revenue and NOI growth in the second half of 2026. Prior to breaking ground recently, the building was 100% pre-leased under a dollar denominated contract, fully de-risking its development. With the addition of this building, Parque Logístico Callao will comprise four state-of-the-art Class A buildings, totaling 863,000 square feet of gross leaseable area. We now only have one more shovel-ready pad at this location for a fifth and final building that would add close to 210,000 square feet, which we believe we can pre-lease this year with development yields at or around 13%. This highlights the strong cycle and positioning LPA has achieved in this constrained market of Peru. As a reminder, LPA's sites exemplify the high barrier nature of the markets in which we operate. In many of these locations, land ownership is fragmented, making large-scale logistics development difficult and therefore creating structural scarcity for institutional quality logistics facilities in mission-critical locations. This is supported by our data. Under supplied market conditions, it has given us pricing power and enabled us to achieve an 11% increase in rent per square foot across our aggregate regional portfolio last year. Another important contributor to our fourth quarter performance was the leasing of the remaining 97,000 square feet in LPA's operating portfolio in Bogota, Colombia. What makes this lease particularly notable is that the tenant, a U.S. listed warehouse club operator called Pricemark, became a cross-border customer. Specifically, they were already renting space in one of our facilities in Costa Rica. This illustrates one of the defining advantages of LPA's platform, our unique ability to provide seamless multi-jurisdiction solutions to leading global and U.S. companies operating across the region. It is why we added Mexico to our platform last year, beginning with two premium logistics facilities in Puebla with a local equity partner, and we have now joined forces with Fortum to deepen LPA's presence in Mexico's dynamic market in a disciplined and effective manner. This will enable us to leverage longstanding tenant relationships, as well as attract new companies that are also expanding in the country. We also continue to see growth opportunities in our foundational market, Costa Rica, Colombia, and Peru. In a show of resilience and durability that surprises external observers, but not us, these economies continue benefiting from strong domestic consumption levels, rising commodity prices, especially in the metals and mining sectors, e-commerce penetration, and favorable demographic trends. Before turning the call over to Paul, we think it is important to address our share price performance. We continue to work tirelessly to ensure the market recognizes what we view as a significant dislocation, one that is disconnected from the fundamentals of our business. As we have noted previously, LPA shares came under pressure last September following the expiration of the shareholder lockup from our GoPublic transaction. Our central mission now, beyond sustaining the strong financial performance that underpins our expansion strategy, is to deepen our dialogue with the market. broaden investor awareness, and highlight the compelling investment opportunity we believe LPA shares represent. As a relevant reference point, our book value per share stood at $8.12 as of year-end 2025. While book value does not capture the full picture, particularly the intangible value of our international platform's near and long-term growth potential, we remain committed to bringing greater visibility to what we see as a meaningful value opportunity. In that same spirit of visibility and relentless drive, we are marking LPA's 10th year in business with the next step in our brand's evolution. We have invested in strengthening our digital presence, and yesterday we launched a renewed brand identity and website, both designed to reflect the company we have become over the past decade and our distinctive and valuable position within the publicly traded logistics sector. Our refreshed visual and marketing assets will also introduce a new ethos that captures the essence of LPA's value proposition, bridging local insight with global impact. This core message reflects the strength of our platform and the differentiated role we play for multinational customers, partners, and investors across the region. In short, LPA's vision and values emphasize a more purpose-driven organization as we enter our next decade of growth. We invite you to explore our new commercial website at lpamericas.com, which showcases this evolution and the opportunities ahead. With that, I'll turn the call over to Paul to discuss our 2025 results in more detail.