Latam Logistic Properties' Q1 2025: Contradictory Insights on Tariffs, Investment Strategies, and Market Focus

Focus on logistics assets and light manufacturing in Mexico, impact of tariffs on growth, investment strategy in Mexico, market impact of tariffs, and company focus and strategic priorities are the key contradictions discussed in Latam Logistic Properties' latest 2025Q1 earnings call.



Regional Revenue and NOI Growth:
- LPA reported revenue of $11.8 million for Q1 2025, up 12.9% from the previous quarter, and NOI grew almost 6% to $9.4 million.
- The growth was driven by strong performances in Peru, Colombia, and Costa Rica, supported by robust consumer spending, e-commerce tailwinds, and favorable economic indicators.

Peru's Economic and Market Stability:
- Peru's strong performance accounted for 29% of LPA's portfolio GLA and saw rental income growth of 38.4%.
- The country's low inflation, minimal government debt, and robust mining commodities contributed to a thriving domestic economy, which boosted LPA's revenue.

Mexico Investment Strategy:
- LPA's approach in Mexico focuses mainly on logistics assets, with initial investments in Puebla through a joint venture with Falcon.
- The strategy prioritizes resilience in domestic consumption over potential impact from U.S. tariffs on exports, ensuring LPA's medium and long-term growth.

Occupancy and Lease Trends:
- LPA's operating portfolio achieved 100% occupancy, with a stabilized occupancy rate of 98%, reflecting strong customer relationships and favorable supply-demand imbalances.
- This was supported by a new lease with a global customer in Peru and a 73% pre-leased building in Callao, further solidifying the company's regional platform value.