This article first appeared on GuruFocus .
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Revenue:Increased 26.1% year over year, led by Peru (up 50.4%) and Colombia (up 29.3%), with Costa Rica up 5.6%.
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Net Operating Income (NOI):Increased 27% to $12.2 million; excluding the positive effect of Colombian peso translation, NOI would have increased 23% to $11.8 million.
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Same-Property NOI:Increased 15% to $9.6 million.
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Average Rent per Square Foot:Increased 10% to $8.88.
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Operating Expenses:Increased 27% to $2.6 million, primarily due to commencing operations at newly leased facilities in Peru and higher real estate taxes in Costa Rica.
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General and Administrative Expenses:Decreased 8.7% to $4.2 million.
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Financing Costs:Increased 1.8% to $4.8 million, reflecting a higher debt balance and interest rates related to the development pipeline.
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Investment Property Gain:Reported a gain of $20 million versus a valuation loss of $257,400 in the same period last year, primarily due to a $16.3 million gain from the sale of Lima Sur Park.
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Operating GLA:5.8 million square feet, a 9.7% increase year over year; total GLA increased 10.8% to 6.2 million square feet.
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Occupancy:Held at 100% across the regional logistics platform.
Release Date: August 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Occupancy remained at 100% across the regional logistics platform, outperforming peers.
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Revenue accelerated 26.1% year-over-year, with strong growth in Peru (50.4%) and Colombia (29.3%).
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NOI increased 27% year-over-year, with same-property NOI up 14.5%.
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Average rent per square foot rose 10% year-over-year, reflecting strong pricing power.
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Divestment of Lima Sur Park at an 18% premium to appraised value, with proceeds to be redeployed into higher-return Mexican assets.
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Development pipeline in Peru is 92% pre-leased, with expected development yields of approximately 13%.
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New fee income stream from managing Lima Sur Park for Fiuda Prime, with potential for more such agreements.
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G&A expenses decreased 8.7% year-over-year, indicating improving operating leverage.
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Three new equity research firms initiated coverage, enhancing market visibility.
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Strategic alliance with Fiuda Prime provides optionality to repurchase the sold park in four years.
Negative Points
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Operating expenses increased 27% year-over-year, driven by new facility operations, higher real estate taxes, and one-time costs.
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Financing costs rose 1.8% due to higher debt balances and interest rates related to development projects.
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Colombian peso exposure remains unhedged, leading to potential translation and FX losses.
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Uncertainty surrounding USMCA trade agreement could impact demand in northern Mexican markets.
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Demand levels in Mexico's industrial real estate sector are lower thus far in 2026 compared to the previous year.
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The company faces high G&A expenses relative to public U.S. REITs, though efforts are underway to rationalize them.
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Development in Colombia is delayed due to high interest rates and tenants adjusting to new market rents.
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The sale of Lima Sur Park is subject to regulatory approvals and may close later than expected.
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The company's share price remains dislocated from book value, indicating a valuation gap.
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Potential future asset sales could reduce the company's presence in foundational markets, though it remains committed to them.
Q & A Highlights
Q: How should we think about the 10% increase in average rental per square foot for the back half of the year? Do you expect a similar increase in the third and fourth quarters compared with a year ago? A: Esteban Saldarriaga (CEO): We don't expect the same level of increase in the back half of the year because we don't have as many leases or renewals coming up for release. We expect the rental rate growth to stay at similar levels, but the pace of growth will likely moderate as the year progresses.
Q: Can you provide some insight into the dynamics that supported the 18% premium on the Lima Sur asset sale? Was that higher than expectations? A: Esteban Saldarriaga (CEO): The sale was within the realm of what we thought was possible. The premium reflects the very limited Class A supply in the market, the quality of the assets and tenancy we built, and the portfolio premium that institutional investors like Fiuda Prime see in our parks. While we always expect to exceed appraised value, this isn't something to expect every time, but it speaks to the quality of our assets and the dynamics we've created in our parks.
Q: Under what circumstances would you exercise the four-year repurchase option for the Lima Sur asset? A: Esteban Saldarriaga (CEO): We retain that option to maintain flexibility and the ability to aggregate our portfolio at scale. In four years, depending on capital availability and the resetting of real estate cycles in each market, the option could be well in the money. We could also align local capital to take the asset back without sacrificing growth in other parts of our platform.
Q: Do you anticipate the need to monetize further assets to fund the balance sheet transition towards Mexico, or is that more of a long-term possibility? A: Esteban Saldarriaga (CEO): It's always a possibility. We want to grow in Mexico fast, and the scale of that market might require pruning our own portfolio. We are listening and have fascinating properties and tenants in Costa Rica and Colombia, so more asset sales could come ahead to fund the transition.
Q: Has the development or financing environment in Colombia improved materially after the recent elections to lead you to move forward with your land assets there? A: Esteban Saldarriaga (CEO): From a tenant demand perspective, we're fielding plenty of requests. The land is pad-ready with infrastructure and permits in place. However, we're balancing tenants digesting new market rents and relatively high interest rates in Colombia. An easing of interest rates would be helpful to kickstart development, but we're not jumping into the water just yet.
Q: Are you fully exposed in your operating metrics to the recent appreciation of COP versus USD, or do you have any hedges in place? How long does it take for currency variations to be reflected in property appraisals? A: Esteban Saldarriaga (CEO) and Paul Smith (CFO): We don't have any hedges in place. Roughly 20% of the portfolio is in Colombian pesos and is left unhedged. Currency variations are reflected on a quarter-by-quarter basis because our properties are appraised in local currency every quarter. The $600,000 FX loss is derived from the opposite effect on US dollar-denominated debt in Peru and Costa Rica, as those currencies appreciate.
Q: What are you doing to rationalize G&A expenses, which are very high compared to public U.S. REITs? A: Esteban Saldarriaga (CEO): G&A expenses decreased 8.7% this quarter. We have this front and center as part of setting our platform for growth. It's a function of scale, which is why we're pushing to bring in local capital to work alongside our balance sheet capital, augmenting our operations and progressively diluting G&A expense relative to our asset base.
Q: Does the more business-friendly administration in Peru and Colombia make you rethink growth and where you want to deploy capital? Do these markets become more attractive than before? A: Esteban Saldarriaga (CEO): It's still primarily focused on Mexico due to the scale of the market and opportunities. However, business-friendly administrations improve sentiment and activity. Peru has wonderful tailwinds, and Colombia has pent-up demand after years of constrained supply. We see activity but want to focus on raising local domestic equity capital to address that demand while keeping the majority of our balance sheet tilted toward Mexico.
Q: Can you provide insight into the timing of receiving the $65 million net cash from the Lima Sur asset sale? A: Esteban Saldarriaga (CEO): We expect the transaction to close over the coming months, going through customary regulatory approvals. We expect to get the first payment in the third quarter, likely in September, with the bulk of the capital in hand by then. Some components are deferred, but we'll have the cash available to redeploy towards Mexico.
Q: You mentioned consolidation among real estate companies in Mexico is creating opportunities. Can you elaborate on that? A: Esteban Saldarriaga (CEO): Over the last 12-18 months, we've seen consolidations like Prologis and Terrafina, and Fiura Monterrey with Fiura Macquarie. We expect those Fiuras to trim their portfolios as they reassess their holdings. That's a healthy dynamic, and we expect some of those assets to come into play. LPA would be an interested, willing, and able buyer in those situations.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
