Executive Summary / Key Takeaways

• Logistic Properties of the Americas ($LPA) is strategically positioned to capitalize on the burgeoning demand for Class A industrial and logistics real estate across high-growth corridors in Latin America, particularly in Costa Rica, Colombia, Peru, and now Mexico.
• The company's focus on "last mile" distribution capabilities and leveraging e-commerce and nearshoring trends underpins its operational strategy and competitive differentiation.
• Recent financial performance in 2024 saw a significant net loss of $29.29 million, primarily influenced by a substantial increase in operating expenses, despite robust revenue growth to $43.86 million.
• LPA has secured crucial capital through a Share Purchase Agreement with New Circle Principal Investments LLC, allowing the issuance of up to 30 million ordinary shares over 36 months for general corporate purposes, alongside a strategic partnership with EPICO to unlock private capital for regional projects.
• The company's inclusion in the Russell 3000® and Russell Microcap® Indexes, coupled with strong lease terms (e.g., a 20% increase in net effective rental rates in Costa Rica), signals growing market recognition and pricing power within its specialized markets.

The Foundation of Latin American Logistics

Logistic Properties of the Americas ($LPA) is a developer, owner, manager, and operator of institutional-quality, Class A industrial and logistics real estate, primarily serving the dynamic markets of Costa Rica, Colombia, and Peru. The company's strategic vision centers on acquiring and developing modern logistics facilities in high-growth, high-barrier-to-entry markets that are currently undersupplied. LPA caters to a diverse client base, including third-party logistics providers, retailers, and consumer goods distributors, with a keen focus on enabling "last mile" distribution capabilities crucial for the expanding e-commerce sector and the accelerating trend of nearshoring across Latin America.

LPA's operational history reflects a commitment to growth within its specialized niche. From 2021 to 2023, the company demonstrated consistent revenue expansion, growing from $25.60 million to $39.44 million, while its total asset base significantly increased from $477.79 million to $590.83 million. This period of expansion laid the groundwork for LPA's current strategic initiatives, which are designed to further solidify its market position and capitalize on regional opportunities.

Strategic Property Design and Market-Driven Innovation

LPA's competitive edge is not rooted in traditional technological R&D but rather in its highly strategic approach to property development and management, which functions as its core "technology." The company's focus on "modern Class A logistics real estate" in specific, undersupplied Latin American markets represents an optimized design and location strategy. These properties are meticulously positioned to provide tenants with critical "last mile" distribution capabilities, directly leveraging strong e-Commerce and "nearshoring" trends. This strategic foresight allows LPA to offer superior value in markets where demand for high-quality logistics infrastructure is surging.

The tangible benefits of this approach are evident in LPA's operational achievements. For instance, a new five-year lease agreement for 121,600 square feet of logistics space at LPA Coyol 4 Logistic Park in San Jose, Costa Rica, with a regional third-party logistics provider, reflected approximately a 20% increase in the net effective rental rate, including common area maintenance fees, compared to the previous agreement. This demonstrates strong demand and LPA's pricing power for its strategically located, high-quality assets. Furthermore, LPA's partnership with Inmobiliaria y Constructora Alas, S.A. led to the acquisition of Puebla Logistics Facilities in Mexico, adding two operating logistics buildings totaling 257,700 square feet of gross leasable area. This expansion into Mexico, a new market for LPA, underscores its commitment to serving high-profile global clients like DHL (DPSGY) and leveraging strategic alliances for sustained value in high-demand logistics corridors.

LPA's "innovation" is further manifested through its strategic partnerships aimed at accelerating capital inflows and property development. The collaboration with EPICO, a Costa Rica-based firm, is designed to expedite the development and acquisition of state-of-the-art warehouses, distribution centers, and logistics facilities across high-growth corridors throughout Central America. This initiative directly addresses the surging demand for institutional-grade logistics facilities in LPA's target markets, enabling the company to scale faster and more strategically in the region.

Financial Performance and Capital Infusion

LPA's financial trajectory has been marked by significant growth in revenue and assets, though profitability saw a notable shift in the most recent fiscal year. In 2024, LPA reported revenues of $43.86 million, continuing an upward trend from $39.44 million in 2023 and $31.98 million in 2022. However, the company recorded a net loss of $29.29 million in 2024, a stark contrast to net incomes of $3.14 million in 2023 and $8.03 million in 2022. This loss was largely influenced by a substantial increase in operating expenses (Opex) and selling, general, and administrative (SGA) expenses, which surged to $60.10 million in 2024 from $6.32 million and $8.51 million respectively in 2023. Despite this, total assets continued to grow, reaching $607.02 million by the end of 2024.

Examining the latest trailing twelve-month (TTM) financial ratios, LPA exhibits a Gross Profit Margin of 82.41% and an Operating Profit Margin of 44.20%, indicating healthy operational efficiency at the property level. The Net Profit Margin stands at 15.02%, reflecting the impact of the aforementioned expenses.

The company's Debt/Equity ratio is 1.24, suggesting a moderate level of leverage. Cash flow from operations remained positive at $19.39 million annually, with a Free Cash Flow of $2.65 million, demonstrating its ability to generate cash from its core business despite the net loss.

To fuel its strategic expansion and manage its financial structure, LPA recently entered into a Share Purchase Agreement (SPA) with New Circle Principal Investments LLC on September 23, 2025. This agreement grants LPA the right to issue and sell up to 30 million of its ordinary shares over a 36-month period, solely at the company's option. The net proceeds from these sales are earmarked for general corporate purposes, including financing property management and development activities, capital expenditures, working capital, and the repayment or refinancing of outstanding indebtedness. As consideration for New Circle's commitment, LPA paid a structuring fee of $25,000 and a legal fee of $25,000, and will pay a commitment fee of $300,000 in shares or $250,000 in cash. This capital infusion mechanism provides LPA with significant financial flexibility to execute its growth strategy.

Competitive Landscape and Strategic Positioning

LPA operates within a competitive industrial and logistics real estate sector, contending with both global giants and regional specialists. While precise market share figures for all niche competitors are not publicly detailed, LPA's strategic focus on Latin America differentiates it from larger, more globally diversified players like Prologis (NYSE:PLD) and U.S.-centric firms such as Rexford Industrial Realty (NYSE:REXR) and EastGroup Properties (NYSE:EGP).

Prologis, a global leader, benefits from immense scale, a strong brand, and extensive geographic reach, often translating into robust revenue growth and superior operational resilience. However, LPA's regional expertise in Latin America allows for a more tailored approach to local market needs, potentially fostering stronger customer loyalty and recurring revenue through deeper relationships and a nuanced understanding of local regulations. This localized strategic adaptability can lead to more efficient project execution and potentially superior margins in its specific markets, countering the broader scale advantages of a company like Prologis.

Compared to U.S.-focused entities like Rexford Industrial Realty and EastGroup Properties, LPA's presence in emerging Latin American economies positions it to capture demand in rapidly expanding regions. While Rexford and EastGroup may exhibit higher operational efficiencies and more stable cash flow generation from mature markets, LPA's specialized knowledge of Latin American supply chain needs allows it to offer more customized logistics solutions. LPA's TTM Price-to-Earnings (P/E) ratio of 27.25 and Price-to-Book (P/B) ratio of 0.80 are lower than those of Prologis (P/E 30.51, P/B 1.99), Rexford (P/E 32.14, P/B 1.11), and EastGroup (P/E 36.76, P/B 2.55). This suggests that LPA's asset base may be undervalued relative to its peers, or it reflects a higher perceived risk associated with its emerging market focus.

LPA's competitive advantages, or "moats," are primarily its deep regional expertise and established local networks. These allow for faster adaptation to regional demands and potentially more cost-effective operations in emerging markets. However, its smaller scale and limited geographic diversification present vulnerabilities, exposing it to localized economic risks and potentially leading to higher costs per property compared to larger rivals. The high capital requirements and regulatory complexities inherent in Latin American real estate act as significant barriers to entry, which help LPA defend its market position but also favor larger competitors with greater access to capital.

Outlook and Key Risks

The outlook for Logistic Properties of the Americas remains tied to the robust demand for logistics infrastructure in Latin America, driven by e-commerce expansion and nearshoring trends. The company's strategic partnerships, such as with EPICO, are designed to accelerate capital inflows and property development, positioning LPA to capitalize on this sustained growth. The recent inclusion in the Russell 3000® and Russell Microcap® Indexes is expected to enhance LPA's visibility and liquidity, attracting a broader investor base.

Despite the promising market dynamics, investors should consider several risks. The Share Purchase Agreement with New Circle Principal Investments LLC, while providing crucial capital, is subject to termination if any governmental authority prohibits the transactions, introducing a regulatory or legal risk. Furthermore, LPA's concentrated geographic exposure to Latin America makes it susceptible to regional economic downturns, political instability, or currency fluctuations, which could impact its financial performance more significantly than a globally diversified competitor. The substantial increase in operating expenses observed in 2024 also warrants close monitoring to ensure future profitability.

Conclusion

Logistic Properties of the Americas is carving out a compelling investment narrative by strategically developing and managing Class A logistics real estate in high-growth Latin American markets. Its "technology" of optimized property design and location, coupled with a keen understanding of regional market dynamics, positions it to benefit from the powerful tailwinds of e-commerce and nearshoring. While the company faced a challenging 2024 with a significant net loss driven by increased operating expenses, its proactive capital-raising initiatives, including the New Circle SPA and the EPICO partnership, provide a clear pathway for continued expansion.

LPA's ability to command higher rental rates and strategically acquire new assets, as demonstrated by the Puebla facilities purchase and the Costa Rica lease, underscores the value of its specialized approach. Despite its smaller scale and regional concentration compared to global peers, LPA's focused strategy and deep local expertise offer a differentiated investment opportunity. The company's long-term success will hinge on its continued ability to effectively deploy capital, manage operational costs, and navigate the specific economic and regulatory landscapes of its target markets, ultimately leveraging its strategic positioning to deliver sustained value to investors.