LPA

Good morning, 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. 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 a 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.lpaamericas.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, 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, advantage market positioning, and a diverse high-quality customer base.

They also reflect sustained demand for modern Class A facilities like ours, which remains 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. Colombia was another strong contributor, with revenue up nearly 25%, helped in part by favorable FX.

Notably, some of that growth came from PriceSmart, 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 Kuehne+Nagel 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 re-leasing, 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 our recent agreement with Fortem 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 Fortem has been developing within a key logistics corridor and submarket 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 Fortem 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 an ever-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. 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 market remains the linchpin 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 team and network within Mexico. We are mindful of the potential economic fallout of the current situation in the Middle East, specifically its impact on interest rates. 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 continue expanding the GLA of LPA's regional platform with the construction of two facilities in our Callao Logistics Park in Peru. Importantly, 92% of their combined 440,000 sq ft 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 sq ft of space, which we expect to pre-lease 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 LPA'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.

Thank you, Esteban. Good morning, everyone. I'll begin my review by providing a closer look at the acceleration of revenue growth in Peru and Colombia in the first quarter. The 39.9% increase in Peru's top line was primarily driven by incremental leasing activity and the higher level of stabilized occupancy. As Esteban pointed out, this included PepsiCo's occupancy of the new building in our Callao Logistics Park. The rapid absorption and large lease spreads we are achieving continue to reflect deep tenant demand for Class A facilities that remain in short supply in strategic locations like ours.

As a more recent example, our team in Peru re-leased a soon-to-be-vacated space just ahead of lease expiration while securing a positive lease spread of 25% and without incurring any CapEx spend. The 24.8% revenue increase in Colombia's rental revenue was mainly due to re-leasing at higher mark-to-market rents and to contractual CPI-linked rent escalations. It's important to note, however, that the appreciation of the Colombian peso accounted for a large part of the revenue increase in the first quarter. When excluding the positive FX impact, Colombia's revenue increased 8.3% to $2.6 million. In Costa Rica, re-leasing and renewals primarily accounted for the 3.3% revenue increase there, both of which benefited from higher rental rates.

In the aggregate, the rental increases across our cross-border platform resulted in 9.8% increase in average rent per square foot, which was $8.74 for the quarter. Turning to Mexico, it should be noted that with the acquisitions of the Central Park 57 facility that we expect to make this year, Mexico will become an increasingly stronger contributor to both revenue and NOI growth, along with the two new facilities that we will bring online this year in Peru. Our first quarter operating expenses decreased 4.1% to $2.2 million, mainly reflecting collection recoveries and a reduction in property taxes after a one-time adjustment in Peru last year. Driving the 28.6% increase in our net operating income in the quarter were higher levels of operating leverage in both Peru and Colombia.

When excluding the positive FX impact on Colombia's revenue, NOI would have increased 24.4% to $11.7 million. Same-property cash NOI increased 10.9% to $9.8 million, primarily due to the growth in rental rates that I explained earlier, and also to the expiration of rent abatements at certain properties. The addition of three properties since first quarter 2025 increased operating GLA of our platform by 9.7% to a total of 5.8 million sq ft, 100% of which remained occupied during the first quarter. Leased GLA increased 6.9% to 6.2 million sq ft, while our development GLA was slightly lower at 440,000 sq ft. As Esteban noted, 92% of the development portfolio is pre-leased.

Our general and administrative expenses increased 13.3% to $4 million, primarily due to the one-time emergency tax levied by the Colombian government in the first quarter. LPA's investment property valuation gain decreased from a positive $1.9 million in the first quarter of 2025 to a $9.2 million loss in the first quarter of 2026. The change was primarily due to the assumption-driven valuation adjustment and the effect of project normalization across our platform. This included the following four elements. Number one, a $7.2 million reduction in our Colombian assets, reflecting changes in underwriting assumptions used in the first quarter 2026 due to evolving market conditions.

Two, a $2.3 million decrease in our Callao park in Peru as the majority of development-related appreciation was recognized last year, given that asset was largely stabilized in the first quarter of 2026. Three, a $1.1 million reduction at our Coyol II park in Costa Rica due to an updated leasing assessment. Four, a $0.6 million negative impact related to capital expenditures during the first quarter. Our financing costs increased 12% to $5.9 million in the quarter.

The increase was mainly due to higher interest expenses related to new financing activities, which included a bridge loan received in the fourth quarter of 2025, additional financing for a new building within our Callao park in Peru, and to incremental interest related to a new loan that finances the development of a new facility at our Cayena park in Colombia. The higher financing costs were partially offset in the quarter, mainly by lower interest rates and scheduled loan amortization. Lastly, at the end of the quarter, LPA maintained its healthy debt profile with largely dollar-denominated debt, no significant debt maturing in the near term, and net debt to investment properties standing at 42.1%. That concludes the review of the quarter. Operator, please open the call for any questions.

At this time, we will open the floor for your questions. If you'd like to ask a question, please press star followed by one on your telephone keypad. As a reminder, you can also submit your questions online by using the Q&A function of the webcast platform. We will pause for a brief moment to wait for the questions to come in.

The first question comes from the line of Eric Goldstein of Water Tower Research. Sir, your line is now open. Please proceed with your question.

Good morning, guys. Very nice job in the quarter. I just had a few questions. I guess, the first one is just around how do we think about Mexico in the near to medium term in terms of growth between asset acquisitions and development, and are there some particular parts of the country that you find more attractive?

Good morning, Eric. Thank you for your questions. Look, yeah, fascinating. Look, Mexico, we see the enormous growth potential, and it has been a recurring theme of ours more recently how we have pushed into the market. It's still in its early stages, but it is showing already, it's bearing great fruit. We're seeing that as a major market for us. What we're expecting as we go forward is to make relevant deployments in acquisitions before year-end. We're working on that front.

Much of that can be seen through the lens of the Fortem for purchase agreement that we have signed, but we're also selectively looking for new operating asset acquisitions that can enhance and accelerate that deployment into Mexico, as we've seen a relatively interesting entry point, given the, I would say, the noise around the market, but the long-term, the mid and long-term potential for Mexico. That's how we're framing Mexico, and that's why we also see that the capital reallocation that we are thinking about in our portfolio is gonna be a catalyst. That's on your first point. The second aspect, what markets are we seeing more with higher interest? Opportunities are coming our way, I would say, along the 57 corridor. We're looking at Mexico City outskirts. We like that.

We're sticking to our knitting on dollar-denominated assets. We're sticking to our knitting in prioritizing global blue chip customers who we wanna continually serve across the platform. For that reason, we're right now mostly focused towards, I would say, the center of the market, you know, the central region of the country, but selectively looking at other northern markets where there might be, I would say, a dislocation there for us, we could come in and deploy capital there. We still wanna be, I would say, more cautious because a lot of things need to still be defined through the USMCA renegotiations. We see that, especially after the recent market moves with the tender occurring for free room inquiry and all of the movement into market that will bode well for our acquisition activity going forward.

Okay, great. Just as, just a follow-up to that. I know we've talked, some about the idea of, you know, recycling assets, maybe divesting, assets and reinvesting the capital into some higher return areas. I'm just curious, how do you go about choosing, which assets to divest? Is there any thoughts or guidance you might have on the spread that you're looking to achieve, in terms of the returns?

Wonderful question. When we look at how to process which assets to divest, we think which are already stabilized, mature, and have benefited from our development activity. 90% of our portfolio in what we call our foundational markets has been developed by LPA from the ground up. Therefore, we have already accreted value within them and think it could be a great moment to reallocate that capital towards Mexico. We think Colombia, Peru might be up next for that recycling process. Eventually, the spread that we can be seeing is a full-on compression because we developed those assets at, you know, 11% yield, 12% yields. Now, once they have, you know, they have grown, we can monetize them, you know, in the 7%-8% range.

It's hard to still see how those processes will come about. We are aware of the fact that we have election cycles in Colombia and Peru, but we feel highly confident in, one, the fact that we have great track record in terms of occupancy, rental growth, and that these assets have been highly optimized during our holding period. That capital can now be reallocated towards Mexico, where we are seeing better opportunities to be deployed at higher returns, and again, to enhance the profile and diversification of our platform as a whole.

Okay, great. Thank you. Just a last question. You recorded a valuation loss in the first quarter, which I think is a little bit unusual for you guys, and it just seems like there were a few unusual, you know, one-time items. How are we thinking about that going forward through the balance of the year?

Thank you. Let me take that one, Esteban. This is Paul Smith. Good morning.

The largest impact we faced this quarter was in Colombia, it's basically reflecting the evolution of the fiscal and economic landscape in that country. The changes they've made recently had an impact on the valuation of our assets within Colombia, and we're simply reflecting those impacts as well. That's basically explaining the, I would say, the largest component. The other items in the variance essentially result from the process of stabilizing assets in Peru. As you know, we have been very active, particularly within our Callao development. Essentially what it's reflecting is we had very powerful quarters last year when the park started to stabilize, and we simply don't have the same dynamic this quarter. That essentially captures it.

If you look at the balance sheet, from an, I would say, aggregated perspective, you will see that net-net, the effect was muted. Essentially we basically maintain the same asset valuation as last year.

Okay, great. Thank you, guys.

Thank you.

If you'd like to ask a question, please press star followed by one on your telephone keypad. That's Star followed by one on your telephone keypad. Your next question comes from the line of Brendan McCarthy of Sidoti. Your line is now open, sir. Please proceed with your question.

Great. Good morning, everyone. Thanks for taking my questions here. I just wanted to start off on the emergency wealth tax I think that you highlighted impacting Colombia. I guess, is there a way for you to, you know, structure new leases, or anything along those lines to protect the bottom line? How can investors really think about that tax impact in the quarter?

Thank you very much for that for question. That tax, as you know, it's not necessarily a wealth tax. It was an emergency tax that was justified, given, you know, certain meteorological conditions that happened within the country. Needless to say, we were not, and then the rest of the country was not prepared for something of that nature. It did have a sizable impact. It was about $400,000 on our results for the quarter. It's predicated on the value of the assets. Essentially, what it's doing is it's based on your IFRS reporting.

There's really few things that you can do in terms of structuring leases to prevent it because it's not necessarily derived on anything other than the value you've created within the country. We remain constructive on the landscape. As you know, well, I don't know if you know that, but this tax was actually challenged, and it's currently being reviewed by the Colombian Supreme Court. We remain constructive that the Supreme Court will review and see that perhaps this is not the best way to proceed fiscally moving forward, and that things will normalize ahead.

Understood. I really appreciate the detail there, Paul. Turning to the Costa Rican portfolio, I think I saw your revenue growth was right around 3% year-over-year. I believe that portfolio is at 100% occupancy as well. Can you kinda touch on the growth prospects for Costa Rica? Is there any substantial or notable, you know, lease renewal activity coming up? How do you kind of weigh that growth versus the rest of the portfolio? Thank you.

Thank you. That's actually a wonderful question as well. Give me one second. Yeah. Thank you. We were getting some echo here. You're absolutely right. That portfolio is 100% occupied. In terms of the releases, we are seeing some increases on the mark-to-market releases. I would say that the spreads are being closer to double digits in terms of the re-spreads. We will announce obviously as they come due and as they happen. Yeah, that's the status of that portfolio. Esteban maybe would like to complement this as well.

Thank you for that, Paul. As we look forward to Costa Rica, it is already a significant portion of our portfolio. We are guiding the majority of new capital investment towards Mexico. We are seeing growth opportunities in Costa Rica. What I would say is we're being much more selective. It's a market we have come to appreciate, and we have a very relevant and dominant position in. For that reason, we see that the majority of the growth potential will likely be with third-party joint ventures, and we're trying to arrange for that as we go forward, so we preserve capital mostly to be deployed into Mexico. In a way we think about it is already relevant. It's around 45% of our company.

We wanna rather balance that out over time and shift our center of gravity, if you will, towards Mexico. That's why we wanna prioritize allocation into Mexico, where we're seeing a better risk-adjusted opportunity set, by the way. That's the way we're thinking about it. There are interesting opportunities. I think we're just being more selective in guiding ourselves into Mexico with a more important tilt.

Understood. That makes a lot of sense. Thanks, everybody. That's all for me.

Thank you.

Our next question comes from the line of Elisa Gómez of BTG Pactual. Your line is now open.

Hi, good morning. Thanks for taking my question. Regarding your expansion in Mexico, are you looking on any of the assets of Terrafina that are in sale? If any of the Ferremec Group assets came into the market, would you be interested in those ones?

Thank you for that. We're constantly canvassing the market. Yeah, there are acquisition opportunities that are very interesting for us. We have dialogue with relevant parties in multiple circumstances. That's one of the things that Mexico has is a deep opportunity set. To answer your question, yes, we would definitely look at them. We have looked at them in other contexts in the past. We want to just continue canvassing because we see that you know, there could be even richer opportunities for us as these moves come along. Yeah, there's a lot still to be done. We're trying to look for off market proprietary deals that we're working through our local relationship network. We want to stay away from, you know, competing or very tightly managed processes.

We'd rather be in off market transactions where we can get a more interesting opportunity for us. As you know, we like partnering, that's, I think, where we can offer more value and eventually get more value for our platform. That's the way we think about acquisitions. For sure, after these consolidation efforts take place, we do expect more assets to be, you know, to be available for us to consider.

Perfect. Very clear. Thank you.

Ladies and gentlemen, there are no more questions from the phone lines. We will now proceed with questions from the webcast platform. We will pause for a brief moment to wait for the question to come in. Thank you. The question comes from Bruce Wilson. Isn't LPA one of many companies whose share price is impacted by the liquidity and lack of equity?

Thank you for that question, Bruce. Yes, that surely is something we're trying to enhance. Liquidity and tradability of our shares is something we wanna enhance. That's why we're having what we would call an awareness push. It comes not only with the way we revamped our website, our communications, but also our engagement to the investor community. That's something we're working towards. That's why we're working with equity research analyst firms. We welcome that. We benefit from that. It is part of the reason why we're seeing our share price performance, you know, suffer the way it has. That's precisely why there's so much room to improvement because it doesn't speak, excuse me, doesn't speak necessarily to value, but rather on technicals that we expect to correct as time progresses.

Yeah, that might be one of the reasons that why we might be affected at the moment, and we're trying to address that head on with these communication efforts to make sure that we try to bring and restore balance, if you will, to how we are understood in our markets.

Thank you. At this time, there are no further webcast questions. With that, we will be concluding today's question-and-answer session. I would like to turn the call over to Esteban for closing remarks.

Thank you, operator. I would like to end today's review with a few takeaways from the quarter. First, we continue to deliver quarter after quarter with revenue growth and profitability accelerating as our portfolio captures rising market rates and our development investments come online. Second, the fundamentals of our cross-border platform are very strong. They're backed by contracted predominantly dollar-denominated revenues, superior occupancy, observable pricing power, and a high-quality tenant base. We expect to build on this momentum throughout the rest of the year as rental growth materializes, additional development properties come online. The third point is that while the macro backdrop across both developed and emerging economies continues to evolve, navigating shifting political and economic conditions is one of our core competencies, and our track record demonstrates that.

Behind LPA is a talented, deeply experienced team that bridges local insight with global impact, making us a partner of choice for multinationals, for strategic partners, and real estate investors alike. Finally, while we continue to monitor developments in the Middle East and the upcoming electoral cycle in Peru and Colombia, our conviction in Mexico and our foundational markets is stronger than ever, given the clear structural scarcity of institutional quality logistics facilities across the region. As an internally managed real estate company, you can count on us to invest thoughtfully and selectively with capital efficiency top of mind. We are well-positioned to further scale and diversify LPA's vertically integrated platform, capture rising demand for institutional quality, well-located facilities, and continue driving earning power over time.

As we continue to execute consistently, we are confident the public markets will increasingly recognize LPA's robust financial performance and long runway for growth, and reward our shareholders by closing the gap to fundamental value. We're energized by the start we've had to 2026 and are confident in the path ahead. Thank you for joining us today. We look forward to speaking with you on our next call.

This concludes today's conference call. You may now disconnect. Goodbye.

Good morning, and welcome to Logistic Properties of the Americas’ 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 Camilo Ulloa, Investor Relations. Please go ahead, sir. Welcome to Logistic Properties of the Americas’.

Fourth quarter and full year 2025 earnings conference call. My name is Camilo Ulloa with Logistic Properties of the Americas’ investor relations team. Joining me on today's call are Esteban Gaviria, our Chief Executive Officer, and James Smith Marquez, Chief Financial Officer. Before we proceed with our review of Logistic Properties of the Americas’ 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 Logistic Properties of the Americas’ 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 at 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 Logistic Properties of the Americas. 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 Logistic Properties of the Americas’ 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 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, Logistic Properties of the Americas’ 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 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 note 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 are only just getting started in Mexico, a far larger market where we see select opportunities to invest in expanding key logistics submarkets 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 Fortem 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 Fortem, Logistic Properties of the Americas will progressively acquire stabilized, 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 Bajío, 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 2,100,000 square feet of GLA in a layout that will consist of eight buildings, which our partners with our systems will endeavor to have fully operational over the next couple of years, with Logistic Properties of the Americas 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 Logistic Properties of the Americas’ proceeds from selective asset recycling initiatives in other geographies. Importantly, our institutional partnership with Fortem both accelerates and de-risks our expansion in Mexico, which will be a new phase of growth for Logistic Properties of the Americas and 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 U.S. 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 on-the-ground 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 from 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 and stable 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 area's more than 10,000,000 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 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 leasable 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 Logistic Properties of the Americas has achieved in this constrained market of Peru. As a reminder, Logistic Properties of the Americas’ 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. Undersupplied market conditions have 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 Logistic Properties of the Americas’ operating portfolio in Bogotá, Colombia. What makes this lease particularly notable is that the tenant, a U.S.-listed warehouse club operator called PriceSmart, 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 Logistic Properties of the Americas’ 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 prime logistics facilities in Puebla with a local equity partner, and we have now joined forces with Fortem to deepen Logistic Properties of the Americas’ presence in Mexico's dynamic market in a disciplined and effective manner. This will enable us to leverage long-standing 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 markets—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 James, 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, Logistic Properties of the Americas’ shares came under pressure last September following the expiration of the shareholder lock-up from our go-public 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 Logistic Properties of the Americas’ 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 Logistic Properties of the Americas’ tenth 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 ecosystem that captures the essence of Logistic Properties of the Americas’ 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, Logistic Properties of the Americas’ 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 will turn the call over to James to discuss our 2025 results in more detail. Thank you, Esteban, and good morning, everyone.

Our consolidated 2025 revenue increased 14.3% to $50.1 million, led by Peru and Colombia, which grew 31% and 14.8%, respectively. Costa Rica's revenue increased just under 1%, while our new facilities in Mexico contributed incremental revenue. The revenue growth was primarily driven by additional rents related to the stabilization of buildings in Peru during the year, the latest of which, as Esteban explained in his remarks, in addition to the stabilization of one building in Colombia, and other key drivers were lease renewals that were marked to market rates, contractual CPI-linked rate increases related to lease rollovers, mainly in Colombia, and the occupancy of previously vacant space in both markets. The new rates and leases increased average rent per square foot by 11% to $8.65, an increase that also benefited from favorable changes in FX rates. As we advance our growth strategy during the year, operating GLA increased 13.3% to 5,800,000 square feet across 34 properties. Leased GLA increased 6.3% to nearly 6,000,000 square feet, while development GLA in Building 200 in Parque Logístico Callao was unchanged at approximately 224,000 square feet. It is important to note that 84.1% of our development GLA is pre-leased. As Esteban pointed out, our development pipeline represents significant revenue and NOI growth in 2026, irrespective of any properties that we acquire under our recent purchase agreement with Fortem Capital or any other acquisitions we might make this year. Our 2025 operating expenses increased 16.8% to $1.2 million, largely in line with our projections for the year. The increase was mainly due to higher real estate taxes, operating costs such as maintenance repairs, expected increases in credit loss provisions, and higher land lease costs. SG&A increased 7.1% to $16.7 million, well below the 14.3% increase in full-year revenues and effectively increasing operating leverage. The most significant expenses were those related to hiring and salary increases, Colombia's alternative minimum tax, as well as the rebranding and digital marketing initiative that Esteban highlighted. Investment property valuation gain decreased by $11.7 million, or 36.2%, to $20.6 million in 2025. The decrease was primarily due to an $11.2 million valuation gain at Parque Logístico Callao, as the building, the largest in this park, mostly stabilized in 2024. Our $20.8 million in financing costs were 7.9% lower in 2025. The decrease was mainly due to securing lower interest rates on Logistic Properties of the Americas’ existing debt, more favorable interest rate environments in Costa Rica and Colombia, and the capitalization of interest related to the development of the two buildings within Parque Logístico Callao in Peru. We also maintain a healthy debt profile, with no significant debt maturing in the near term, and net debt to investment properties improving 150 basis points to 40.2%. Lastly, cash NOI increased 12.4% to $40.3 million in 2025, mainly reflecting the increased GLA as well as higher occupancy and rental rates during the year. That concludes our review. Operator, please open the call for any questions.

At this time, we will open the floor for your questions. If you would like to signal a question on your phone, simply press star and one on your telephone keypad. Also, as a reminder, you may submit your questions online by using the Q&A on the webcast platform. Your first question comes from Andre Mazzini with Citigroup.

Yes, team, thanks for the call and the question here. So, if you can speak a little bit about the Mexico markets, a lot going there in terms of M&A in that space. So how you are seeing the market and this whole M&A activity, if it changes your strategy in any sense, consolidation in the Fibra space there in Mexico or not really your focus on, of course, until now, acquiring properties in the private market. If it does not really change how you are thinking about the Mexico market, all this kind of M&A activity in the public space we are seeing?

Thank you, Andre, for joining the call and your question. Actually, it bolsters our confidence in that market. That interest and that activity level does make us think that consolidation might be underway. I do think there is going to be a form of segmentation, for one, such that there are going to be bigger players, allowing a platform like Logistic Properties of the Americas to play more in what I would say is the middle market. So these are billion-plus transactions, and we are going to be looking at opportunities between $100 million, $200 million, maybe even $300 million. And that market segmentation is going to be powerful. That is why, to name an example, the Fortem Capital deal that we agreed earlier this year is a reflection of that. So that is the first takeaway. One, it bolsters our confidence. Second, I think it starts to segment the market and allows us to play in a mid-market tier. The last point I would highlight is the fact that some portfolio pruning might be underway after those consolidation moves take place. And then, once again, Logistic Properties of the Americas will be on the lookout to grasp additional opportunities. So I think that is going to be a beautiful setup as we roll into the market and take a bigger presence.

Very clear. Thank you, Esteban.

Again, if you would like to ask a question, press star one on your telephone keypad. It appears that we have no further questions at this time. We will now turn the call back over to Esteban for any closing remarks.

Thank you, operator. I would like to end today's call with a few key takeaways. Number one, it was a transformational year during which we delivered again on what we had promised to our shareholders. The revenue growth and the earnings power of Logistic Properties of the Americas’ regional platform are accelerating. Our most recent results clearly demonstrate the strength of our unique business model, the substantial pricing power that we command across our underserved markets, and the proven ability of our highly experienced team to effectively execute our long-term growth strategy. Two, we have a solid development track record we extended last year, with a 13.3% increase in GLA. Building on top of that, we are establishing a strong foundation in Mexico, where we plan to make additional investments that strategically expand our platform to encompass more of this key market, focusing on select locations that are mission critical to multinational companies. As an internally managed real estate company, our fellow shareholders can count on us to continue investing with sharp focus on capital efficiency and long-term value creation. Moreover, active asset management will remain a strong value driver as well. And finally, having entered 2026 with full occupancy, we see significant rental growth ahead as we roll over leases to market rents and as new, largely pre-leased buildings become occupied in the first half of the year. With the visibility we have going into 2026, we anticipate that it will be another exciting year of high growth and additional strategic investments to substantially scale, further diversify, and augment the optionality and underlying value of Logistic Properties of the Americas’ vertically integrated regional logistics platform. Thank you again for joining us today. We look forward to seeing you on our next earnings call. Have a good day, everyone.

This concludes today's conference call. You may now disconnect.