Logistic Properties of the Americas’ 2025 Earnings Call: Shifting M&A Strategy and Tariff Views Highlight Contradictions

Date of Call: Mar 19, 2026

Financials Results

• Revenue: $50.1 million, up 14.3% YOY

Business Commentary:

Revenue and NOI Growth:

• Logistic Properties of the Americas reported a 23.3% increase in fourth-quarter revenue and an 11.9% increase for the full year of 2025.
• This growth was driven by enhanced operating leverage, full occupancy across the operating portfolio, higher leasing rates, and the addition of assets acquired in Mexico.

Expansion in Mexico:

• The company announced a strategic partnership with Fortem Capital, representing a $200 million investment to be deployed over time, focusing on acquiring stabilized dollar-denominated Class A assets in Mexico.
• This expansion is driven by the market's segmentation, allowing LPA to focus on the mid-market tier, and is expected to increase GLA by 36%.

Development and Pre-leasing Success:

• In Peru, the leasing of the remaining space in Bogota and the pre-leasing of a new building in Parque Logístico Callao contributed to strong performance, with the new building pre-leased at 100% under a dollar-denominated contract.
• The success is attributed to LPA's strong market position and the high demand for modern logistics facilities in key locations.

Market Position and Pricing Power:

• LPA achieved an 11% increase in rent per square foot across its regional portfolio, supported by undersupplied market conditions and strong tenant demand.
• The company's ability to command pricing power is due to its unique business model and strategic presence in high-barrier markets with fragmented land ownership, creating structural scarcity.

Sentiment Analysis:

Overall Tone: Positive

• The CEO described 2025 as a 'great and transformational year' and stated 'our fundamentals are shining bright.' He highlighted 'significant bottom line profitability,' with NOI growing 29.8% in Q4 and 11.9% for the full year, and expressed confidence that 'LPA's NOI momentum is anticipated to be carried over into 2026.' The tone was optimistic about growth and strategic expansion.

Q&A:

• Question from André Mazini (Citigroup Inc. Exchange Research): So if you can speak a little bit about the Mexico market, a lot going there in terms of M&A in that space, so how you're 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, up until now, acquiring properties in the private market, if it doesn't really change how you're thinking about the Mexico market, all this kind of M&A activity in the public space we're seeing?
  Response: The M&A activity bolsters confidence in the Mexico market, suggests a move toward segmentation that allows LPA to target the mid-market tier ($100M-$300M), and may create portfolio pruning opportunities for further expansion.

Contradiction Point 1

Acquisition Strategy and Market Focus

Shift from broad market focus to a specific mid-market tier strategy.

What question does André Mazini (Citigroup Inc. Exchange Research) have? - André Mazini (Citigroup Inc. Exchange Research)

2025Q4: The M&A activity bolsters confidence in the Mexico market and may lead to market segmentation, creating opportunities for LPA to focus on the mid-market tier (properties valued between $100 million and $300 million). Portfolio pruning post-consolidation could also create additional acquisition opportunities for LPA. - [Esteban Gaviria](CFO)

How is the M&A-driven market in Mexico evolving, and how does this impact LPA's strategy for acquiring private market properties? - Geronimo Cuevas (JPMorgan)

2025Q3: The company is constantly looking at growing through partnerships similar to the one with Alas. They are also prioritizing acquisitions and are monitoring the market for potential portfolios to directly evaluate and acquire. The current focus is on these two segments. - [Esteban Gaviria](CFO)

Contradiction Point 2

M&A Market Impact Assessment and Strategy Focus

Contradiction on how M&A activity influences market confidence and LPA's strategic focus.

André Mazini (Citigroup Inc. Exchange Research) - André Mazini (Citigroup Inc. Exchange Research)

2025Q4: The M&A activity bolsters confidence in the Mexico market and may lead to market segmentation, creating opportunities for LPA to focus on the mid-market tier... - [Esteban Gaviria](CEO)

How is the M&A-driven market in Mexico evolving, and how does this impact LPA's strategy for acquiring private market properties? - Questioner (Not Specified from Call Audio, Referenced in Script)

2025Q2: The decrease in other income is due to fees related to lockup releases from the company's IPO. The shareholder lockup agreements were released in exchange for fees, which are considered a one-time item. - [James Smith Marquez](CFO)

Contradiction Point 3

Strategic Focus on Light Manufacturing in Mexico

Stance shifts from being highly selective due to tariff uncertainty to having a constructive, long-term view.

André Mazini (Citigroup Inc. Exchange Research) - André Mazini (Citigroup Inc. Exchange Research)

2025Q4: The strategic partnership with Fortem Capital is an example of this approach. - [Esteban Gaviria](CFO)

How is the M&A market in Mexico evolving, and how does this impact LPA's strategy for acquiring private market properties? - André Mazini (Citigroup)

2025Q1: Longer-term, the company is constructive on light manufacturing but currently wants to be highly selective due to uncertainty around U.S. tariff policies. - [Esteban Gaviria](CFO)

Contradiction Point 4

Impact of Tariff Uncertainty on Tenant Behavior

Contradiction on whether tariff uncertainty is affecting leasing activity and tenant decision-making.

What are your key insights from the earnings call, André Mazini of Citigroup? - André Mazini (Citigroup Inc. Exchange Research)

2025Q4: The M&A activity bolsters confidence in the Mexico market... - [Esteban Gaviria](CFO)

How is the M&A market in Mexico evolving, and how does this impact LPA’s strategy for acquiring private market properties? - André Mazini (Citigroup)

2025Q1: There is no noticeable impact on leasing activity from tariff uncertainty. - [Esteban Gaviria](CFO)