Logistic Properties of the Americas

Good morning and welcome to LPA's first quarter 2026 earnings conference call. My name is Ellie and I will be your operator for today's call. At this time, all participants are in 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 2026 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 the review of LPA'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 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 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 shared over a year, unless we note other ways. Esteban will begin today's review. Esteban, please go ahead.

Good morning, everyone, and thank you for joining us. We're off to a powerful start to 2026. We delivered a standout quarter with last year's momentum accelerating into 2026. Revenue jumped 21.6%, and NOI grew even faster at 28.6%, reflecting the operating leverage that we've been building up as we scale our cross-border logistics platform, which remained 100% occupied in the first quarter. This growth wasn't just about portfolio expansion. Same property NOI rose 10.9%, and average rent per square foot CLIMBED 9.8%, A DIRECT RESULT OF THE PRICING POWER THAT WE COMMAND IN THE UNDERSERVED MARKETS WHERE WE INVEST AND OPERATE. THESE NUMBERS UNDERSCORE THE STRENGTH OF OUR BUSINESS MODEL, DISCIPLINED EXECUTION, ADVANTAGED MARKET POSITIONING, AND A DIVERSE HIGH QUALITY CUSTOMER BASE. THEY ALSO REFLECT SUSTAINED DEMAND FOR MODERN CLASS A FACILITIES LIKE OURS, WHICH REMAIN SCARCE IN OUR CHOSEN MARKETS. ADDITIONALLY, The local economies we serve continue to benefit from resilient domestic consumption, e-commerce growth, and the ongoing regionalization of supply chains. Of course, we still face challenges, including the one-time emergency tax levied by the Colombian government at the beginning of the year. This quarter, Peru led the way with revenue surging nearly 40% as new buildings stabilized in our prime location, Callao Logistics Park in Lima. including the LEED Gold facility we delivered late last year to PepsiCo, one of many global brands we serve in the four countries where we operate. Columbia was another strong contributor, with revenue up nearly 25%, helped in part by favorable FX. Notably, some of that growth came from Pricemark, a major U.S. listed retailer that also leases one of our Costa Rica buildings, making it one of several cross-border customers on our roster. Other examples are Cunanago, which occupies LPA facilities in both Colombia and Peru, and Natura, which operates in our Peruvian and Costa Rican properties. It is worth emphasizing here that our unique ability to offer multi-market solutions to international companies like these is the backbone of our business model and is integral to our growth strategy. In Costa Rica, revenue grew 3.3%, driven by releasing, renewals, and higher rental rates. Mexico also contributed this quarter with the two logistics facilities we acquired in Puebla. This marked our first investment in the country a key growth market and essential to delivering a seamless cross-border solution for our customers. By extending our logistics platform to Mexico, we can further monetize our customer base by cross-selling to them, in addition to accessing new customers and the considerable growth potential of this large and dynamic market. Through a recent agreement with Fordham Capital, one of Mexico's leading institutional real estate investors, we will acquire over time approximately $200 million of stabilized dollar-denominated Class A assets within Central Park 57, beginning in the second and third quarters of this year. This is a modern, large-scale industrial and logistics park that Fortum has been developing within a key logistics corridor and sub-market of the greater Mexico City area and three economically dynamic states. an area that's home to 35% of Mexico's population, and that has an even higher proportion of spending power. Importantly, beyond accelerating LPA's expansion in Mexico, our strategic partnership with Fordham mitigates the risks normally associated with building and stabilizing a multi-phase project like this one. Taken as a whole, Central Park 57 represents the equivalent of 36% of our current operating GLA. As we've previously communicated, we will fund the purchases of the Central Park 57 facilities through a combination of debt, local equity partners, as well as funds derived from recycling capital from the sale of certain assets within our existing property portfolio. Through a never-expanding network of local relationships in Mexico, our team there continues locating and assessing similar assets to acquire in strategic locations within other resilient submarkets of the country, the local economies of which are also primarily consumer-driven, as opposed to being export-oriented. The team is also looking at opportunities to selectively develop properties where there is strong demand for facilities that meet the exacting standards of global and regional companies operating in Mexico, particularly as we observe heightened interest both direct and indirect, tied to products along the AI infrastructure supply chain, aerospace, defense, and broader electronics manufacturing. Although USMCA negotiations are expected to begin near the end of this month, and while the eventual outcome can't be predicted, Mexico's industrial and logistics markets remains the lynchpin of many U.S. supply chains that are critical, especially to curb inflationary pressures in the U.S. For now, we observe that Mexico's industrial and logistics real estate market remains resilient, albeit with corrections in certain northern markets where we have yet to deploy any capital. Rents continue to trend upward, net absorption is stabilizing, and new supply remains limited. Occupancy has softened modestly, but that's against the backdrop of exceptionally strong years of demand. We'll continue closely monitoring market data and benefiting from the intelligence that we gather through our local teams and network within Mexico. Also, we are mindful of the potential economic fallout of the current situation in the Middle East, specifically its impact on interest rates. Therefore, we will remain disciplined with capital, only investing where we see clear opportunities to earn attractive risk-adjusted returns. We have the ability to look through economic cycles, recognizing that Mexico will remain strategically vital to the U.S. on the global economic stage. Turning to the development front, we'll continue expanding the GLA of LPA's regional platform with the construction of two facilities in our Cajal Logistics Park in Peru. Importantly, 92% of their combined 440,000 square feet is already pre-leased, effectively de-risking development. Both buildings remain on schedule for completion in the second and third quarters, and together they will generate roughly $3.2 million in annualized revenue, fueling additional growth this year. Looking ahead, within this park, we have just one remaining shovel-ready pad to develop a fifth building. It represents another 210,000 square feet of space, which we expect to prelease this year at yields of approximately 13%, thanks to ongoing supply constraints for facilities like ours. Before Paul covers the financials, I'd like to take a brief moment to discuss LTA's share price performance. We share our fellow shareholders' frustration with the acute dislocation that remains between our market price and LPA's book value, which was roughly $8 per share at quarter end, particularly given our consistently strong financial performance. Among other initiatives to address the valuation gap, we continue engaging equity research analysts to initiate coverage with the goal of reaching the investors they serve and broadening the market's understanding of our differentiated business and its strong growth potential. As part of this effort, we are already working with two specialized firms that provide equity research, one of which has already initiated coverage of LPA. Through the reach with institutional investors, we expect this to raise LPA's market visibility and help drive demand for our shares. I'll now turn the call over to Paul, who will discuss our first quarter results in more detail.