LPA Q2 2025 Earnings: Revenue up 6.4% to $11.7mln, NOI increases 3.7% to $9.6mln

Logistic Properties of the Americas reported Q2 2025 revenue of $11.7 million, up 6.4% YoY, driven by building stabilizations in Peru and Costa Rica, and higher rental rates in Colombia. Net Operating Income increased 3.7% to $9.6 million, despite a 17.5% rise in operating expenses. The company appointed a new Country Manager for Mexico and aims to capitalize on strong demand for logistics space to enhance long-term income and portfolio value.

Logistic Properties of the Americas (LPA) released its Q2 2025 financial results on August 14, 2025, revealing a mixed financial picture. The company reported a 6.4% year-over-year (YoY) increase in revenue to $11.7 million, driven by building stabilizations in Peru and Costa Rica, and higher rental rates in Colombia. However, the net operating income (NOI) increased by only 3.7% to $9.6 million, despite a significant 17.5% rise in operating expenses.

The company's occupancy rate remained robust at 94.5%, with an average remaining lease life of 5.0 years. LPA's total gross leasable area (GLA) stood at 7.3 million square feet, including 5.8 million square feet of operating GLA and 1.5 million square feet of potential new GLA in its land portfolio.

Despite the revenue growth, LPA's stock fell 4.06% to $6.41 following a significant earnings miss. The company reported a $2.62 per share loss, which overshadowed the positive operational metrics. This was partly due to the company's high debt levels, with net debt of $244.1 million in Q2 2025, representing 42.2% of investment properties.

LPA's strategic focus on capturing Latin America's e-commerce growth potential was evident in the presentation. The company expects e-commerce sales in Latin America to grow from $159 billion in 2025 to $227 billion by 2029, representing a 9% CAGR. This growth is expected to drive increased demand for logistics space.

The company appointed Eduardo Nakash as the new Country Manager for Mexico, indicating its plans to expand into the Mexican market. CEO Esteban Saldarriaga emphasized the company's disciplined approach to growth, stating that it would deploy capital with patience.

Investors responded negatively to LPA's mixed results, with the stock falling 4.06% to $6.41 on August 14, 2025. The company's high debt levels and deteriorating same-property NOI growth present additional challenges that management will need to address to restore investor confidence.

References:
[1] https://www.investing.com/news/company-news/lpa-q2-2025-slides-strong-revenue-growth-overshadowed-by-earnings-concerns-93CH-4193404
[2] https://www.stocktitan.net/news/LPA/logistic-properties-of-the-americas-announces-second-quarter-2025-49s763dvrz8x.html