6-K
Logistic Properties of the Americas (LPA)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2024
Commission File Number: 001-41995
Logistic Properties of the Americas
(Exact name of registrant as specified in its charter)
601 Brickell Key Drive
Suite 700
Miami, FL 33131
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F x Form 40-F o
EXPLANATORY NOTE
On November 13, 2024, Logistic Properties of the Americas announced its financial results for the third quarter of 2024. A copy of this announcement and the accompanying supplemental information are furnished as Exhibit 99.1, 99.2, and 99.3 to this Report on Form 6-K.
The information in this Form 6-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.
EXHIBIT INDEX
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release of Logistic Properties of the Americas datedNovember 13, 2024 |
| 99.2 | ThirdQuarter 2024 Supplemental Information |
| 99.3 | Third Quarter 2024 Corporate Information |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Logistic Properties of the Americas | |
|---|---|
| By: | /s/ Esteban Saldarriaga |
| Name: | Esteban Saldarriaga |
| Title: | Chief Executive Officer |
Date: November 13, 2024
Document
Exhibit 99.1
Logistic Properties of the Americas Announces Third Quarter 2024 Earnings Results
Continued Double-Digit Revenue Growth Highlights Strong Performance
SAN JOSÉ, Costa Rica, November 13, 2024 – Logistic Properties of the Americas (NYSE American: LPA) (together with its subsidiaries, “LPA” or the “Company”), announced today its unaudited financial results for the three months ended September 30, 2024 (“third quarter 2024” or “3Q24”). The Financial results are expressed in U.S. dollars and are presented in accordance with International Financial Reporting Standards (“IFRS”), which differ in certain significant respects from the U.S. generally accepted accounting principles (“GAAP”). This information should be read in conjunction with, and is qualified in its entirety by reference to, the Company’s consolidated financial statements, including the notes thereto. Financial results are preliminary and subject to year-end audit and adjustments. All comparisons within this announcement are year-over-year (“YoY”), unless otherwise noted. LPA’s financial results are stated in U.S. dollars unless otherwise noted. LPA is a leading developer, owner, acquirer and manager of logistics and industrial real estate of institutional quality in the Americas, and one of the few internally managed, vertically-integrated, and institutional platforms operating across the region.
3Q24 Financial and Operating Highlights
•Revenue increased by 10.4% to $11.3 million for the three months ended September 30, 2024, primarily driven by increases of 26.4% and 9.5% in Peru and Costa Rica, respectively, thereby offsetting a 7.1% decline in Colombia, which resulted from the tactical divestment of a building during the fourth quarter of 2023.
•3Q24 Net Operating Income (NOI) increased by 10.3% to $9.6 million, from $8.7 million in 3Q23, while 3Q23 Same-Property Cash NOI remained in line.
•LPA’s operating portfolio achieved a leased rate of 98.5% by quarter’s end, from 94.6% in 2Q24. This increase reflects the Company’s strategic approach to capturing rental market growth through both lease renewals and new lease agreements. LPA ended 3Q24 having executed two new lease agreements in Colombia with Porsche and DSV (formerly Panalpina), respectively, earlier than previously expected, resulting in a combined gross leasable area (GLA) of 125,282 square feet. These new leases replace prior vacancies and reflect current increased market rental rates, achieving an average rate increase of 28%. LPA secured a new lease at the Callao Park in Peru with Scharff International Courier & Cargo S.A. and also leased available space in the Lima Sur Park with Signia Soluciones Logisticas S.A.C., for a combined GLA of 92,537 square feet. In Costa Rica, LPA signed a new lease agreement with Chemelco Food Tech, S.A., adding 1,416 square feet to LPA’s total leased portfolio. The quarter’s leasing activity in Peru and Costa Rica demonstrates the Company’s ability to effectively capture embedded rental rate growth within its portfolio in the markets where LPA operates.
•Average rent per square foot increased by 4.9% year-over-year (“YoY”) to $7.92 in 3Q24 from $7.55 in 3Q23, supported by charges related to automatic escalators included in the Company’s existing lease contracts.
•Net Earnings Attributable to Owners of the Company reached $4.9 million in 3Q24, a 266% increase compared to $1.4 million in 3Q23. Earnings per Share Attributable to Owners of the Company increased to basic of $0.16 and diluted of $0.15 compared to basic and diluted of $0.05 in 3Q23.
Subsequent Events
•In December 2022, the Company committed to a 30-year land lease agreement with Lima Airport Partners S.R.L. (“LAP”) to develop warehouses on the leased land. In connection with this commitment, on October 31, 2024, LAP granted the Company the right to access three land parcels measuring approximately 1.5 million square feet, of which one parcel measuring approximately 0.7 million square feet will be used by LPA to begin construction of a warehouse. For the remaining land parcels, the Company is authorized to prepare the land for future construction, after which the land parcels will be returned to LAP until further authorization on construction is granted to the Company.
•On November 12, 2024, the Company has entered into a binding agreement with a Mexican real estate developer to form a strategic partnership in Mexico for the purpose of operating real estate properties located in Mexico.
Upon formation of the partnership, the real estate developer will contribute two operating properties to the partnership, and the Company will contribute cash equal to 10% of the appraised values of the two properties. The Company will own a 10% equity interest in the partnership, and the real estate developer company will own the remainder. This transaction is expected to close in early 2025.
Furthermore, this strategic alliance grants LPA immediate access to Falcon’s extensive experience through more than 65 years operating within Mexico’s industrial and logistics market, well-established relationships with Mexico's key landowners, and a solid local network of clients and developers.
CEO Commentary
LPA’s portfolio of operating assets continued delivering solid performance levels in the third quarter, driven by favorable underlying market trends and positive leasing dynamics across our markets. Revenues increased by 10.4% year-over-year, as more of our leases were marked-to-market upon renewal, also benefiting from the execution of new leases with several new tenants, including European multinational companies, complementing our lease portfolio. This top line growth, combined with continued operating efficiencies, increased NOI by 10.3% to $9.6 million for the third quarter 2024. It is important to note that general and administrative expenses were significantly higher again this quarter, mainly due to the one-time costs related to LPA’s transition to become a publicly traded company, and the additional costs that will be recurring as we have assumed heightened auditing and reporting obligations to comply with U.S. Securities and Exchange Commission requirements.
Our operating GLA increased by 10.9% to 5.1 million square feet from the beginning of the year. Stabilized leased area leveled off by 150 basis points to 98.5% during the same period, as we are patient and highly selective in our re-leasing efforts, particularly in Colombia where the range of mark-to-market spreads increased by 25% to 40%. The considerable scarcity of new supply within this market over the last 18 months has enabled us to identify higher-value and option-constrained tenants which require our premium product.
The quarter also brought additional residual fee income from the release of certain shareholders from lock-up agreements when LPA’s share price activity warranted these releases. This income bolstered our funding for expanding LPA’s portfolio in the region. We do not expect to receive additional fee income of this nature in subsequent quarters.
Lastly and perhaps most noteworthy, we have initiated our investment program in Mexico, aligning with our long-term value creation strategy and seizing an opportunity to deploy capital earlier than initially planned. Consistent with our long-term value creation strategy, we have begun investing in Mexico, successfully identifying an opportunity to invest capital sooner than we initially expected. Extending LPA’s differentiated vertically-integrated real estate platform to Mexico represents an exciting new phase of growth for our Company, as we continue to benefit from the growing industrial and logistics sector demand and strong nearshoring and ecommerce tailwinds within Mexico. We expect to replicate our success through sustained operational excellence in this globally relevant, and fast-growing market, leveraging our many years of experience delivering world-class products and capital solutions to the region's highest quality tenants.
Esteban Saldarriaga
Chief Executive Officer
Real Estate Portfolio
| Real Estate Portfolio | ||||||
|---|---|---|---|---|---|---|
| As of September 30, 2024 | As of December 31, 2023 | As of September 30, 20231 | ||||
| Number of operating real estate properties | 30 | 28 | 28 | |||
| Operating GLA (sq. ft) | 5,121,625 | 4,619,616 | 4,615,760 | |||
| Leased area (sq. ft) | 5,629,154 | 5,308,454 | 5,098,759 | |||
| Number of tenants | 51 | 53 | 53 | |||
| Average rent per square foot | 7.92 | 7.80 | 7.55 | |||
| Weighted average remaining lease term | 5.0 years | 5.3 years | 5.5 years | |||
| Stabilized occupancy rate (% of GLA) | 94.5 | % | 100.0 | % | 99.4 | % |
All values are in US Dollars.
1 Excludes a held-for-sale investment property in Colombia with a Leased Area of 289,000 square feet which was occupied by one tenant.
Financial Performance
Revenues
(amounts expressed in thousand dollars, unless otherwise noted)
| Three months ended September 30 | ||||
|---|---|---|---|---|
| 2024 | 2023 | % Chg. | ||
| Rental revenue | ||||
| Colombia | 2,068 | 2,226 | (7.1) | % |
| Peru | 2,983 | 2,360 | 26.4 | % |
| Costa Rica | 6,122 | 5,589 | 9.5 | % |
| Unallocated revenue | 100 | 39 | 154.2 | % |
| Total revenue | 11,273 | 10,214 | 10.4 | % |
Investment Property Operating Expenses
(amounts expressed in thousand dollars, unless otherwise noted)
| Three months ended September 30 | ||||
|---|---|---|---|---|
| 2024 | 2023 | % Chg. | ||
| Investment property operating expense | ||||
| Colombia | (310) | (261) | 18.6 | % |
| Peru | (566) | (423) | 34.0 | % |
| Costa Rica | (741) | (825) | (10.2 | %) |
| Total Investment Property Operating expense | (1,617) | (1,509) | 7.1 | % |
Operating Performance
(amounts expressed in thousand dollars, unless otherwise noted)
| Three- months ended September 30 | ||||
|---|---|---|---|---|
| 2024 | 2023 | % Chg. | ||
| Total revenues | 11,273 | 10,214 | 10.4 | % |
| Total investment property operating expense | (1,617) | (1,509) | 7.1 | % |
| General and administrative | (4,751) | (2,520) | 88.5 | % |
| Investment property valuation gain | 8,175 | 9,826 | (16.8) | % |
| Interest income from affiliates | — | 160 | (100.0) | % |
| Financing costs | (5,797) | (5,647) | 2.7 | % |
| Net foreign currency gain | 49 | 13 | 261.6 | % |
| Other income | 1,105 | 32 | NM | |
| Other expenses | (1,238) | (3,345) | (63.0) | % |
| Profit before taxes | 7,199 | 7,224 | (0.4) | % |
| Income tax expense | (2,366) | (4,853) | (51.3) | % |
| PROFIT FOR THE PERIOD | 4,833 | 2,371 | 103.8 | % |
| NM- not meaningful |
Supplemental Information
Please refer to LPA’s quarterly Supplemental Information and Management Discussion and Analysis, both which are available on the Company’s Investor Relations website at https://ir.lpamericas.com
3Q24 Earnings Conference Call
When: November 14, 2024, 9:00 a.m. Eastern Time
Who: Mr. Esteban Saldarriaga, Chief Executive Officer, Mr. Paul Smith, Chief Financial Officer, Ms. Annette Fernandez, Chief Operating Officer, and Mr. Camilo Ulloa, Investor Relations
Dial-in: +1 800 343 5172 (Toll-Free), +1 203 518 9843 (International)
Passcode: LPA3Q24
Pre-Register: You may pre-register at any time: here. Callers will need to press # to be connected to an operator to access LPA’s financial results conference call via telephone.
Webcast: click here
The call recording will also be available for replay on LPA’s website for a limited time.
About Logistic Properties of the Americas
Logistic Properties of the Americas is a leading developer, owner, and manager of institutional quality industrial and logistics real estate in high-growth and high-barrier-to-entry markets in Central and South America. LPA’s customers are multinational and regional e-commerce retailers, third-party logistic operators, business-to-business distributors, and retail distribution companies among others. LPA expects its strong customer relationships and insight to enable future growth through the development and acquisition of high-quality, strategically located facilities in its target markets. As of September 30, 2024, LPA’s operating and development portfolio was comprised of 31 logistics facilities in Costa Rica, Peru and Colombia totaling more than 491,000 square meters (or approximately 5.3 million square feet) of gross leasable area. For more information visit https://ir.lpamericas.com
Forward-Looking Statements
This press release contains certain forward-looking information, which may not be included in future public filings or investor guidance. The inclusion of forward-looking information in this press release should not be construed as a commitment by LPA to provide guidance on such information in the future. Certain statements in this press release may be considered forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements about future events or LPA’s future financial or operating performance. These forward-looking statements regarding future events and the future results of LPA are based on current expectations, estimates, forecasts, and projections about the industry in which LPA operates, as well as the beliefs and assumptions of LPA’s management. These forward-looking statements are only predictions and are subject to known and unknown risks, uncertainties, assumptions and other factors beyond LPA’s control that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. They are neither statements of historical fact nor promises or guarantees of future performance. Therefore, LPA’s actual results may differ materially and adversely from those expressed or implied in any forward-looking statements and LPA therefore caution against relying on any of these forward-looking statements.
These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by LPA and its management, are inherently uncertain and are inherently subject to risks variability and contingencies, many of which are beyond LPA’s control. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (i) the possibility of any economic slowdown or downturn in real estate asset values or leasing activity or in the geographic markets where LPA operates; (ii) LPA’s ability to manage growth; (iii) LPA’s ability to continue to comply with applicable listing standards of NYSE American; (iv) changes in applicable laws, regulations, political and economic developments; (v) the possibility that LPA may be adversely affected by other economic, business and/or
competitive factors; (vi) LPA’s estimates of expenses and profitability; (vii) the outcome of any legal proceedings that may be instituted against LPA and (viii) other risks and uncertainties set forth in the filings by LPA with the U.S. Securities and Exchange Commission. There may be additional risks that LPA does not presently know or that LPA currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Any forward-looking statements made by or on behalf of LPA speak only as of the date they are made. Except as otherwise required by applicable law, LPA disclaims any obligation to publicly update or revise any forward-looking statements to reflect any changes in their respective expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. Accordingly, you should not place undue reliance on forward-looking statements due to their inherent uncertainty.
Nothing within this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made.
Investor Relations Contacts
Camilo Ulloa
Logistic Properties of the Americas
+506 6293 9083
Barbara Cano/Ivan Peill
InspIR Group
[email protected] / [email protected]
ex99220243qsupplementalp
Logistic Properties of the Americas Third Quarter 2024 Supplemental Information LPA Parque Logístico Calle 80 – Bogota, Colombia
Disclaimer This presentation (the “Presentation”) is provided for informational purposes only and has been prepared to provide interested parties with certain information about Logistic Properties of the Americas and its subsidiaries (collectively, “LPA”) and for no other purpose. This Presentation is not a prospectus, product disclosure statement or any other offering or disclosure document under any other law. The information contained herein is of a general background nature and does not purport to be exhaustive, all-inclusive or complete. This Presentation does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase, any equity, debt or other financial instruments of LPA. No such offering of equity or debt securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, or an exemption therefrom. No representations or warranties, express or implied are given in, or in respect of, the accuracy or completeness of this Presentation or any other information (whether written or oral) that has been or will be provided to you. To the fullest extent permitted by law, LPA disclaims any and all liability for any loss or damage (whether foreseeable or not) suffered or incurred by any person or entity as a result of anything contained or omitted from this Presentation and such liability is expressly disclaimed. The viewer of this Presentation agrees that it shall not seek to sue or otherwise hold LPA or any of its respective directors, officers, employees, affiliates, agents, advisors or representatives liable in any respect for the provision of this Presentation, the information contained in this Presentation, or the omission of any information from this Presentation. Viewers of this Presentation should each make their own evaluation of LPA and of the relevance and adequacy of the information provided in this Presentation and should make such other investigations as they deem necessary before making an investment decision. Nothing herein should be construed as legal, financial, tax or other advice. You should consult your own advisers concerning any legal, financial, tax or other considerations concerning anything described herein, and, by accepting this Presentation, you confirm that you are not relying solely upon the information contained herein to make any investment decision. The general explanations included in this Presentation cannot address, and are not intended to address, your specific investment objectives, financial situations or financial needs. Forward-Looking Statements This Presentation contains certain forward-looking information which may not be included in future public filings or investor guidance. The inclusion of forward-looking financial information or metrics in this Presentation should not be construed as a commitment by LPA to provide guidance on such information in the future. Certain statements in this Presentation may be considered forward-looking statements. Forward-looking statements include, without limitation, statements about future events or LPA’s future financial or operating performance. For example, statements regarding anticipated growth in the industry in which LPA operates and anticipated growth in demand for LPA’s products and solutions, the anticipated size of LPA’s addressable market and other metrics are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “pro forma,” “may,” “should,” “could,” “might,” “plan,” “possible,” “project,” “strive,” “budget,” “forecast,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “potential” or “continue,” or the negatives of these terms or variations of them or similar terminology. These forward-looking statements regarding future events and the future results of LPA are based on current expectations, estimates, forecasts, and projections about the industry in which LPA operates, as well as the beliefs and assumptions of LPA’s management. These forward-looking statements are only predictions and are subject to known and unknown risks, uncertainties, assumptions and other factors beyond LPA’s control that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. They are neither statements of historical fact nor promises or guarantees of future performance. Therefore, LPA’s actual results may differ materially and adversely from those expressed or implied in any forward-looking statements and LPA therefore cautions against relying on any of these forward-looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by LPA and its management, are inherently uncertain and are inherently subject to risks variability and contingencies, many of which are beyond LPA’s control. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (i) the possibility of any economic slowdown or downturn in real estate asset values or leasing activity or in the geographic markets where LPA operates; (ii) LPA’s ability to manage growth; (iii) LPA’s ability to continue to comply with applicable listing standards of the New York Stock Exchange (“NYSE”); (iv) changes in applicable laws, regulations, political and economic developments; (v) the possibility that LPA may be adversely affected by other economic, business and/or competitive factors; (vi) LPA’s estimates of expenses and profitability; (vii) the outcome of any legal proceedings that may be instituted against LPA and (viii) other risks and uncertainties set forth in the filings by LPA with the U.S. Securities and Exchange Commission (the “SEC”). There may be additional risks that LPA does not presently know or that LPA currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Any forward-looking statements made by or on behalf of LPA speak only as of the date they are made. Except as otherwise required by applicable law, LPA disclaims any obligation to publicly update or revise any forward-looking statements to reflect any changes in their respective expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. Accordingly, you should not place undue reliance on forward- looking statements due to their inherent uncertainty. Nothing in this Presentation should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Industry and Market Data This Presentation also contains estimates and other statistical data made by independent parties which they believe to be reliable and by LPA relating to market size and growth and other data about LPA’s industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. In addition, projections, assumptions, and estimates of the future performance of the markets in which LPA operates are necessarily subject to a high degree of uncertainty and risk. LPA has not independently verified the accuracy or completeness of the independent parties’ information. No representation is made as to the reasonableness of the assumptions made within or the accuracy or completeness of such independent information. Trademarks LPA owns or has rights to various trademarks, service marks and trade names used is connection with the operation of its business. This Presentation may also contain trademarks, service marks, trade names and copyrights of other companies or third parties, which are the property of their respective owners. LPA’s use thereof does not imply an affiliation with, or endorsement by, the owners of such trademarks, service marks, trade names and copyrights. Solely for convenience, some of the trademarks, service marks, trade names and copyrights referred to in this Presentation may be listed without the TM, SM or symbols, but LPA will assert, to the fullest extent under applicable law, the rights of the applicable owners to these trademarks, service marks, trade names and copyrights. Financial Measures Certain financial information contained herein is unaudited and is based on internal records and/or estimates. The Presentation also contains unaudited alternative financial measures that are measures of financial performance not calculated in accordance with generally accepted accounting principles in the United States (or international financial reporting standards (“IFRS”)) and should not be considered as replacements or alternatives to net income or loss, cash flow from operations or other measures of operating performance or liquidity of LPA. These alternative financial measures should be viewed in addition to, and not as a substitute for, analysis of LPA’s results reported in accordance with IFRS or otherwise. Notwithstanding these limitations, and in conjunction with other accounting and financial information available, LPA’s management considers the alternative financial measures contained in this presentation (including EBITDA, EBITDA margin, Net Debt, Net Operating Income (NOI), Cash NOI, Same-Property NOI, Same-Property Cash NOI, Enterprise Value, Equity Value, FFO, AFFO, Yield-to-cost, and Return on Equity (ROE)) reasonable indicators for comparisons between LPA and LPA’s principal competitors on the market. These alternative financial measures are used by market participants for comparative analysis, albeit with certain limitations as analytical tools, of the results of businesses in the sector and as indicators of LPA’s capacity to generate cash flows. Nevertheless, alternative financial measures do not have any standardized meaning and therefore may not be comparable to similar measures presented by other companies. You should review LPA’s financial statements and additional information included in its filings with the SEC.
3Notes: (1) The Company considers that most real estate companies and funds in Costa Rica, Colombia, and Peru do not focus exclusively on the industrial segment; instead, they have investments across multiple sectors, including retail, hospitality, and others, and often lack a regional presence. Development and construction(2) of properties in the land bank DEVELOPER Asset ownership on a long-term basis OWNER Leasing and management(3) of assets MANAGER Logistic Properties of the Americas is a leading developer, owner, acquirer and manager of logistic and industrial real estate of international quality in Central and South America. LPA is one of the few, internally managed, vertically-integrated and institutional platforms operating across the region (1). Acquisition of stabilized assets ACQUIRER
4 Content LPA Parque Logístico Calle 80 – Bogota, Colombia Highlights • Company Profile 5 • Company Performance 6 • Financial Summary 7 Financial Information • Condensed Consolidated Interim Balance Sheet 8 • Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income (Loss) 10 • Reconciliation for Adjusted EBITDA, Adjusted EBITDA margin, FFO, AFFO, NOI and NOI margin 11 Operations Overview • Total Portfolio GLA 13 • Operating Portfolio – Period end Occupancy 14 • Rental Revenues 15 • Net Operating Income 16 • Average Rent per Square Foot 17 • Same Property NOI Growth 18 • Other Non-IFRS Metrics 19 Operations • Customer Concentration and Lease Expiration Analysis 20 • Investment Properties Portfolio 21 Capital Deployment • Stabilized Properties 22 • Development Portfolio 23 • Land Portfolio 24 Capitalization • Debt Summary and Metrics 25 Definitions • Definitions 26
5 LIMA, PERU Operating GLA (sqft) Development GLA (sqft) Land Reserves (acres)(6) 1,350,084 166,410 40.5 BOGOTA, COLOMBIA Operating GLA (sqft) Development GLA (sqft) Land Reserves (acres)(6) 1,255,404 - 50.6 SAN JOSE, COSTA RICA Operating GLA (sqft) Development GLA (sqft) Land Reserves (acres)(6) 2,516,137 - - 7.3 mm sqft Gross Leasable Area(1) 94.5% Occupancy(2) 81.6% US dollars-denominated Leases(3) Example Properties 5.0 years Avg. remaining lease life(4) US$27.7 mm YTD Q3 2024 NOI (5) 19.8% Cash NOI (5) Growth YTD 3Q 2024 – 2023 Current Operations Expansion Plans Logistic Park Coyol I, Alajuela, Costa Rica Logistic Park Lurin I, Lima, Peru Logistic Park Calle 80, Bogota, Colombia (1) Includes 5.3 million sq ft of GLA in our total portfolio and 2.0 million of potential new GLA to be built-out in our land portfolio. (2) Operating Portfolio period-end occupancy. (3) Based on active leases as of September 30, 2024. (4) Remaining lease life weighted average by leased area (5) NOI and Cash NOI are non-IFRS measures. (6) Land reserve acres are adjusted for Floor Area Ratio (“FAR”). Highlights Company Profile As of September 30, 2024
6 As of and for the three months ended US$ in millions, except for number of buildings, sq ft, and percentages September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Portfolio (sq ft) Same Property Portfolio No. of buildings 27 27 27 20 20 Gross leasable area (GLA) 4,570,653 4,570,653 4,570,653 3,047,734 3,047,734 Period end occupancy % 93.8% 94.2% 96.6% 100.0% 99.6% NOI 8.3 8.2 8.5 5.9 5.7 Growth over prior year 1.3% (2.6%) 6.8% 7.0% 9.3% Cash NOI 9.6 8.5 8.8 6.2 6.0 Growth over prior year (0.1%) 8.5% 20.6% 14.2% 22.1% Operating Portfolio No. of buildings 30 29 28 28 ⁽¹⁾ 28 Gross leasable area (GLA) 5,121,625 4,964,181 4,741,488 4,619,616 4,615,755 Period end leased % 98.5% 94.6% 96.7% 100.0% 99.4% Period end occupancy % 94.5% 94.6% 96.7% 100.0% 99.4% Development Portfolio No. of buildings 1 2 3 4 ⁽¹⁾ 3 Gross leasable area (GLA) 166,410 323,854 546,547 668,419 447,294 Period end leased % 100.0% 92.3% 95.5% 78.5% 64.3% Period end occupancy % 84.8% 72.3% 72.4% 8.0% 12.0% Total Portfolio No. of buildings 31 31 31 32 ⁽¹⁾ 31 Gross leasable area (GLA) 5,288,035 5,288,035 5,288,035 5,288,035 5,063,049 Period end leased % 98.6% 94.5% 96.6% 97.3% 96.3% Period end occupancy % 94.2% 93.3% 87.5% 88.4% 91.7% Highlights Company Performance (1) As of December 31, 2023, a building in Peru was in a mixed phase, with some sections fully operational and others still under development. Consequently, the Company reported the building in both stages. By September 30, 2024, however, the entire building had transitioned to full operational status.
7 Highlights Financial Summary (1) Net Debt/Investment properties US$ in millions, except for percentages As of and for the three months ended September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Rental revenues 11.2 10.9 10.4 11.5 10.2 Revenues 11.3 11.0 10.5 11.6 10.2 Cash net operating income (Cash NOI) 9.2 8.7 9.0 10.7 8.8 Net operating income (NOI) 9.6 9.2 8.9 10.4 8.7 NOI margin % 84.8% 84.4% 85.3% 90.4% 84.8% Net earnings (loss) 4.8 12.4 (46.4) (2.0) 2.4 Adjusted EBITDA 5.8 5.9 7.6 6.8 6.2 Adjusted EBITDA margin 51.6 % 53.8 % 72.4 % 59.0 % 61.0 % FFO, as defined by LPA (2.2) (0.5) (0.9) 1.0 (4.1) AFFO (2.2) (0.9) (1.2) 0.0 (3.8) Debt Outstanding balance at carrying value 271.0 275.9 268.0 269.9 234.7 Cash and restricted cash (37.3) (52.9) (43.4) (37.9) (13.0) Net Debt 233.7 223.0 224.6 231.9 221.7 Investment properties 535.6 525.9 528.6 514.2 494.9 Leverage ratio (1) 43.6% 42.4% 42.5% 45.1% 44.8% Cash interest rate at period-end 8.4% 8.4% 8.8% 8.8% 9.2%
8 As of September 30, 2024 December 31, 2023 Assets Current Assets: Cash and cash equivalents $ 31,394,469 $ 35,242,363 Due from affiliates — 9,463,164 Lease and other receivables, net 2,623,141 3,557,988 Receivable from the sale of investment properties – short term 4,781,622 4,072,391 Prepaid construction costs 256,954 1,123,590 Restricted cash equivalent – short term — 2,000,000 Prepaid income taxes 1,340,637 651,925 Other current assets 2,969,336 2,791,593 Total current assets 43,366,159 58,903,014 Non-Current Assets: Investment properties 535,573,272 514,172,281 Tenant notes receivables – long term, net 5,350,618 6,002,315 Receivable from the sale of investment properties – long term — 4,147,507 Restricted cash equivalent – long term 5,912,997 681,110 Property and equipment, net 323,609 354,437 Deferred tax asset 1,154,342 1,345,859 Other non-current assets 4,703,828 5,218,787 Total non-current assets 553,018,666 531,922,296 Total Assets $ 596,384,825 $ 590,825,310 Financial Information Condensed Consolidated Interim Balance Sheet
9 As of September 30, 2024 December 31, 2023 Liabilities and Shareholder's Equity Current Liablities: Accounts payable and accrued expenses $ 6,846,733 $ 13,127,502 Income tax payable 2,909,132 2,024,865 Retainage payable 1,540,803 1,737,805 Long term debt – current portion 10,514,211 16,703,098 Security deposits - current portion 537,850 — Other current liabilities 2,283,282 959,539 Total current liabilities 24,632,011 34,552,809 Non-Current liablities: Long term debt 260,519,198 253,151,137 Deferred tax liability 38,905,814 37,451,338 Security deposits 2,011,631 1,790,554 Other non-current liabilities 3,947,341 2,936,555 Total non-current liabilities 305,383,984 295,329,584 Total Liabilities 330,015,995 329,882,393 Equity: Ordinary Shares 3,180 168,142,740 Additional paid-in capital 217,926,222 — Retained earnings 34,697,260 67,878,645 Foreign currency translation reserve (21,621,725) (13,694,983) Equity attributable to owners of the Company 231,004,937 222,326,402 Non-controlling interests 35,363,893 38,616,515 Total Equity 266,368,830 260,942,917 Total Liabilities and Equity $ 596,384,825 $ 590,825,310 Financial Information Condensed Consolidated Interim Balance Sheet (continued)
10 Financial Information Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income (Loss) (1) Listing expense is a non-cash item that relates to the difference in the fair value of the shares deemed to have been issued by the accounting acquirer and the fair value of the accounting acquiree’s identifiable net assets represents a service received by the accounting acquirer, and thus should be recognized as an expense upon consummation of the Business Combination. For more information, please review note 3 of the Financial Statements. For the Three Months Ended For the Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Revenues Rental revenue $ 11,173,774 $ 10,175,293 $ 32,547,117 $ 27,793,027 Other 98,856 38,896 195,911 74,916 Total revenues 11,272,630 10,214,189 32,743,028 27,867,943 Investment property operating expense (1,616,919) (1,509,044) (4,856,809) (4,032,138) General and administrative (4,750,884) (2,519,836) (11,001,664) (4,834,222) Listing expense (1) — — (44,469,613) — Investment property valuation gain 8,175,196 9,826,109 17,925,184 21,688,490 Interest income from affiliates — 159,850 302,808 474,338 Financing costs (5,796,879) (5,646,861) (17,168,235) (23,283,779) Net foreign currency gain (loss) 49,158 13,595 (127,447) 243,367 Gain on sale of asset held for sale — — — 1,022,853 Other income 1,104,810 31,703 12,253,069 131,213 Other expenses (1,238,072) (3,345,296) (8,582,889) (3,483,718) Profit (loss) before taxes 7,199,040 7,224,409 (22,982,568) 15,794,347 Income tax expense (2,365,571) (4,853,279) (6,212,089) (6,632,916) Profit (Loss) for the period $ 4,833,469 $ 2,371,130 $ (29,194,657) $ 9,161,431 Other comprehensive income (loss): Items that may be reclassified subsequently to profit or loss: Translation (loss) gain from functional currency to reporting currency (231,538) 2,456,718 (7,926,742) 12,277,835 Total comprehensive income (loss) for the period $ 4,601,931 $ 4,827,848 $ (37,121,399) $ 21,439,266 Profit (Loss) for the period attributable to: Owners of the Company $ 4,942,591 $ 1,351,495 $ (33,181,385) $ 4,959,776 Non-controlling interests (109,122) 1,019,635 3,986,728 4,201,655 Total profit (loss) for the period $ 4,833,469 $ 2,371,130 $ (29,194,657) $ 9,161,431 Total comprehensive income (loss) attributable to: Owners of the Company $ 4,711,053 $ 3,808,212 $ (41,108,127) $ 17,237,610 Non-controlling interests (109,122) 1,019,636 3,986,728 4,201,656 Total comprehensive income (loss) for the period $ 4,601,931 $ 4,827,848 $ (37,121,399) $ 21,439,266 Weighted average number of shares – basic 31,740,073 28,600,000 30,732,528 28,600,000 Weighted average number of shares – diluted 31,967,429 28,600,000 30,732,528 28,600,000 Earnings (loss) per share attributable to owners of the Company – basic $ 0.16 $ 0.05 $ (1.08) $ 0.17 Earnings (loss) per share attributable to owners of the Company – diluted $ 0.15 $ 0.05 $ (1.08) $ 0.17
11 Financial Information Reconciliation for Adjusted EBITDA, Adjusted EBITDA margin, FFO, AFFO, NOI and NOI margin(¹) (1) Refer to the “Non-IFRS Financial Measures and Other Measures and Reconciliations” in the Management’s Discussion and Analysis (“MD&A”) for more details around the non-IFRS measures. (2) Interest income settled in cash is excluded from other income for the calculation of FFO. (2) The adjustment related to financing costs include the one-time debt extinguishment or modification gain or loss, amortization of debt issuance cost and accrued interest, and exclude the cash settled interest expense. For the three months ended US$ in millions, except for percentages September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Revenues 11.3 11.0 10.5 11.6 10.2 Profit (loss) for the period 4.8 12.4 (46.5) (2.0) 2.4 Interest income from affiliates — — (0.3) (0.2) (0.2) Financing costs 5.8 5.8 5.6 7.8 5.6 Income tax expense 2.4 0.5 3.3 (1.6) 4.9 Depreciation and amortization 0.4 — — — — Investment property valuation gain (8.2) (4.6) (5.2) 1.5 (9.8) Gain on disposition of asset held for sale — — — — — Share-based payment 0.6 1.1 — — — One-time cash bonus related to the Business Combination — — 0.3 — — Gain on sale of investment property — — — (1.1) — Listing expense — — 44.5 — — Other income (1.1) (10.8) (0.3) (0.2) — Other expenses 1.2 1.2 6.2 2.6 3.3 Net foreign currency loss (gain) (0.1) 0.2 — — — Adjusted EBITDA 5.8 5.9 7.6 6.8 6.2 Adjusted EBITDA margin 51.6 % 53.8 % 72.4 % 59.0 % 61.0 % For the three months ended US$ in millions September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Profit (loss) for the period 4.8 12.4 (46.5) (2.0) 2.4 Investment property valuation gain (8.1) (4.6) (5.2) 1.5 (9.8) Gain on disposition of asset held for sale — — — — — Gain on sale of investment property — — — (1.1) — FFO (3.3) 7.9 (51.7) (1.6) (7.4) Share-based payment 0.6 1.1 — — — One-time cash bonus related to the Business Combination — — 0.3 — — Listing expense — — 44.5 — — Other income (2) (0.7) (10.7) (0.2) — — Other expenses 1.2 1.2 6.2 2.6 3.3 FFO (as defined by LPA) (2.2) (0.5) (0.9) 1.0 (4.1) Depreciation and amortization 0.3 — — — — Financing costs (3) 0.1 (0.1) — (0.9) 0.3 Interest income from affiliates — — (0.3) (0.2) (0.2) Unrealized foreign currency loss (gain) (0.1) 0.2 (0.2) (0.2) 0.1 Straight-line rental revenue (0.3) (0.6) 0.1 0.3 0.1 Adjusted FFO (2.2) (0.9) (1.2) — (3.8)
12 Financial Information Reconciliation for Adjusted EBITDA, Adjusted EBITDA margin, FFO, AFFO, NOI and NOI margin (continued)(¹) For the three months ended US$ in millions September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Net Operating Income Rental revenues 11.2 10.9 10.4 11.5 10.2 Investment property operating expense (1.6) (1.7) (1.5) (1.1) (1.5) NOI 9.6 9.2 8.9 10.4 8.7 NOI margin 84.8% 84.4% 85.3% 90.4% 84.8% For the three months ended US$ in millions September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Net Operating Income Profit (loss) for the period 4.8 12.4 (46.5) (2.0) 2.4 Other revenue (0.1) — (0.1) — — General and administrative 4.8 4.6 1.7 3.6 2.5 Listing expense — — 44.5 — — Investment property valuation gain (8.2) (4.6) (5.2) 1.5 (9.8) Interest income from affiliates — — (0.3) (0.2) (0.2) Financing costs 5.8 5.8 5.6 7.8 5.6 Net foreign currency loss (gain) — 0.2 — — — Other income (1.1) (10.8) (0.3) (0.2) — Gain on sale of investment property — — — (1.2) — Gain on disposition of asset held for sale — — — — — Other expenses 1.2 1.2 6.2 2.7 3.3 Income tax expense 2.4 0.5 3.3 (1.6) 4.9 NOI 9.6 9.2 8.9 10.4 8.7 Constant currency impact(²) — (0.1) (0.1) — — Less: Non Same-Property NOI 1.3 1.1 0.4 1.3 0.5 Same-Property NOI(³) 8.3 8.0 8.4 9.1 8.2 NOI 9.6 9.2 8.9 10.4 8.7 Straight-line rental revenue (0.3) (0.6) 0.1 0.3 0.1 Cash NOI 9.2 8.7 9.0 10.7 8.8 Constant currency impact(²) — (0.1) (0.1) — — Less: Non Same-Property Cash NOI 0.8 0.2 0.2 0.7 0.3 Same-Property Cash NOI(³) 8.5 8.4 8.7 10.0 8.5 (1) Refer to the “Non-IFRS Financial Measures and Other Measures and Reconciliations” in the MD&A for more details around the non-IFRS measures. (2) Constant currency information is non-IFRS financial information that compares results between periods as if exchange rates had remained constant period-over-period. We use results on a constant currency basis as one measure to evaluate our performance. We calculate constant currency by calculating prior-period results using current-period average foreign currency exchange rates. We generally refer to such amounts calculated on a constant currency basis as excluding the impact of foreign exchange. (3) LPA defines Same Property NOI as NOI less non same-property NOI and adjusted for constant currency. LPA defines Same Property Cash NOI as Cash NOI less non same-property cash NOI and adjusted for constant currency.The same property population for a given period includes the operating properties that were owned during the entirety of that period and the corresponding prior year period.
13 1,255 1,255 1,255 1,255 1,255 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Operations Overview Costa Rica ColombiaPeru By Geography 5,063 5,288 5,288 5,288 5,288 4,616 4,620 4,741 4,964 5,122 447 668 547 324 166 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Development GLA Operating GLA 2,514 2,516 2,516 2,516 2,516 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 1,294 1,517 1,517 1,517 1,517 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Total Portfolio GLA (in thousands sq ft) Total Portfolio
14 Total Operating Portfolio 100.0 100.0 100.0 90.0 90.0 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 100.0 100.0 87.9 89.9 89.9 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 98.8 100.0 99.1 99.8 99.2 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 99.4 100.0 96.7 94.6 94.5 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Operations Overview Operating Portfolio – Period-end Occupancy (%) Costa Rica ColombiaPeru By Geography
15 2.2 2.0 2.3 2.0 2.1 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 2.4 2.2 2.4 2.9 3.0 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 5.6 7.3 5.7 6.0 6.1 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 10.2 11.5 10.4 10.9 11.2 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Operations Overview Rental Revenues (US$ million) Total Portfolio (for the three months ended) Costa Rica Peru Colombia By Geography (for the three months ended)
16 2.0 1.8 2.1 1.7 1.8 2.1 1.9 2.1 2.0 1.9 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 1.9 2.0 2.0 2.4 2.4 2.0 2.2 2.0 1.9 2.1 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 4.8 6.6 4.8 5.1 5.4 4.7 6.6 4.9 4.8 5.2 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 8.7 10.4 8.9 9.2 9.68.8 10.7 9.0 8.7 9.2 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Operations Overview Total Portfolio (for the three months ended) Costa Rica Peru Colombia NOI and Cash NOI by Geography (for the three months ended) NOI Cash NOI Net Operating Income (US$ million)
17 5.77 5.70 6.62 6.81 6.76 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 7.29 7.26 8.07 7.38 7.41 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 8.57 8.54 8.58 8.60 8.72 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 7.55 7.80 7.93 7.87 7.92 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Operations Overview Total Portfolio Costa Rica Peru Colombia By Geography Average Rent per Square Foot (US$/Sq ft/Yr)
18 10.1% 15.3% 36.4% -2.5% 2.3% 9.4% 11.1% 55.2% 19.4% 1.4% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 -0.7% 3.0% 6.0% -6.0% -5.4% 27.0% 21.1% 7.8% -1.5% -7.7%Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 14.8% 7.4% -2.8% -1.2% 4.0% 22.7% 11.4% 15.2% 9.3% 2.8% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 9.3% 7.0% 6.8% -2.6% 1.3% 22.1% 14.2% 20.6% 8.5% (0.1)% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Operations Overview Same-Property NOI Growth (% YoY) Total Same-Property Portfolio Costa Rica Peru Colombia By Geography NOI Cash NOI
19 6.2 6.8 7.6 5.9 5.8 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Financial Overview Other Non-IFRS Metrics (US$ million) Adjusted EBITDA (for the three months ended) FFO, as defined by LPA (for the three months ended) (4.1) (0.9) (0.5) (2.2) 1.0 Q3 2023 Q3 2024Q2 2024Q1 2024Q4 2023
20 19.6% 37.2% 27.5% 15.7% Operations Customer Concentration and Lease Expiration Analysis Lease Breakdown as Measured by Total Portfolio NER Customer Type Contractual Rent Increases Amount of Leases by Currency As of September 30, 2024 Logistic Services Consumer Goods Distribution Retailer Manufacturing and Other 18.4% 19.7% 56.6% 5.3%COL-CPI US-CPI Constant Escalator Other 81.6% 18.4%USD COP Top 10 Customers as % of Net Effective Rent % of Net Effective Rent Total Square Feet 1 Alicorp 8.0% 437,370 2 Kuehne + Nagel 7.2% 384,777 3 Samsung 6.8% 200,209 4 Pequeño Mundo 5.2% 270,572 5 Yichang 4.0% 220,875 6 Natura & Co 3.8% 206,785 7 CEVA 3.8% 219,734 8 Indurama 3.5% 191,684 9 PriceSmart 3.4% 167,831 10 Ikea 3.0% 185,548 Total 48.7% 2,485,385 Lease Expirations Net Effective Rent % of Currency Year Occupied Sq Ft Annualized (US$ in millions) % of Total $/Sq Ft COP USD 2024 65,068 0.6 1.6% $ 9.22 — % 100.0% 2025 376,747 2.6 6.6% $ 6.90 16.0% 84.0% 2026 321,905 2.4 6.1% $ 7.46 23.5% 76.5% 2027 957,051 6.9 17.5% $ 7.21 38.5% 61.5% 2028 707,748 5.1 12.9% $ 7.21 14.2% 85.8% Thereafter 2,550,958 21.8 55.3% $ 8.55 15.0% 85.0% Total 4,979,477 39.4 100.0% $ 7.92 19.4% 80.3%
21 US$ in millions US$ in millions Square Feet Net Effective Rent Investment Properties No. of buildings Total % of Total Occupied % Leased % Q3 quarter to date NOI Year to Date NOI Annualized Sq ft / Year Total fair market value % of Total Operating Portfolio Costa Rica 19 2,516,137 49.1% 99.2 99.8 5.4 15.3 21.9 $ 8.77 257.9 52.1% Peru 6 1,350,084 26.4% 89.9 94.8 2.2 6.4 13.6 $ 11.21 122.5 24.7% Colombia 5 1,255,404 24.5% 90.0 100.0 1.8 5.6 9.8 $ 8.67 114.8 23.2% Subtotal 30 5,121,625 100.0% 94.5 98.5 9.4 27.3 45.3 $ 9.36 495.2 100.0% Development Porftolio Peru 1 166,410 100.0% 84.8 100.0 0.2 0.4 1.4 na 13.2 100.0% Subtotal 1 166,410 100.0% 84.8 100.0 0.2 0.4 1.4 na 13.2 100.0% Total Portfolio 31 5,288,035 94.2 98.6 9.6 27.7 46.7 $ 9.4 508.4 Operations Investment Properties Portfolio As of September 30, 2024
22 6/30/2024 9/30/2024 US$ in millions, except for sq ft and percentages Square Feet TEI FMV Occupied % Annualized Estimated Rent Revenues Annualized Estimated NOI Est. Return on Cost Square Feet Total Investment FMV Occupied % Annualized Estimated Rent Revenues Annualized Estimated NOI Est. Return on Cost Est. Develop. Yield Peru San Jose La Verbena Logistic Park B. 400 157,444 12.0 15.4 58.9 % 1.5 1.3 10.8% 157,444 11.7 18.2 100.0% 1.6 1.6 12.5% 13.4% Total 157,444 12.0 15.4 58.9% 1.5 1.3 10.8% 157,444 11.7 18.2 100.0% 1.6 1.6 12.5% 13.4% Capital Deployment Stabilized Properties As of September 30, 2024
23 US in millions TEI Invested to Date Project Sq ft Occupied % Leased % FMV Land + Infra Shell Total Land + Infra Shell Total Est. Stabilization Date Annualized estimated Rent Revenues Annualized estimated NOI Est. Return on Cost Est. Develop. Yield Type Peru Callao Logistic Park B. 100 166,410 84.8 100.0 13.2 7.4 8.1 15.5 7.4 8.1 15.5 Dec-24 1.3 1.0 8.4(¹) 6.6(¹) Pre Leased Total 166,410 84.8 100.0 13.2 7.4 8.1 15.5 7.4 8.1 15.5 1.3 1.0 8.4% 6.6% Capital Deployment Development Portfolio (1) Reflects the total development expenses of the entire industrial park, including costs associated with infrastructure, utilities, and landscaping, not just the individual warehouse.. As of September 30, 2024
24(1) Buildable GLA of the Land Bank (2) LPA Peru has a land lease agreement with a third party, under a joint ownership structure of 40% LPA and 60% Capia, in which LPA acts as the lessee. Gross Land Area (Acres) Buildable Area (Sq ft)(1) FMV FMV/Sq ft of Gross Land Area US$ in millions Q3 2024 Q4 2023 % Change Q3 2024 Q4 2023 % Change Q3 2024 Q4 2023 % Change Q3 2024 Q4 2023 % Change Peru (2) 40.5 40.5 0.0% 878,022 878,022 0.0% 2.0 0.6 226.0% $ 1.15 $ 0.35 226.0% Colombia 50.6 50.6 0.0% 1,090,211 1,090,211 0.0% 25.1 24.1 4.3% $ 11.40 $ 10.93 4.3% Total 91.1 91.1 0.0% 1,968,233 1,968,233 0.0% 27.1 24.7 9.8% $ 6.84 $ 6.23 9.8% Capital Deployment Land Portfolio As of September 30, 2024
25 2024 Third Quarter Second Quarter Net debt (US$ in millions) 233.7 223.0 Net debt over investment properties (end of period) 43.6% 42.4% Net debt/ Adjusted EBITDA ratio (1) 8.9x 8.3x Net debt / NOI (1) 6.3x 6.1x US$ in millions Maturity Loans Wtd Avg.Cash Interest Rate 2024 2.6 7.9% 2025 12.9 6.8% 2026 9.0 6.0% 2027 9.7 6.0% 2028 10.5 6.0% 2029 11.3 6.0% Thereafter 216.5 5.2% Sub-total debt at par 272.5 8.4% Premium/Discount 0.4 Deferred Financing Cost (1.9) Total Debt 271.0 62.6% 37.4% Fixed vs Floating Rate Debt 100.0% Secured vs Unsecured Debt 84.3% 15.7% Capitalization Debt Summary and Metrics Debt Summary Debt Metrics As of September 30, 2024 (1) Net Debt related multiples are calculated using the annualized Adjusted EBITDA and NOI in their respective calculations. Debt by Currency SecuredFixed FloatingUSD COP
26 Definitions Please refer to LPA financial statements as prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board and filed with the Security and Exchange Commission (“SEC”) and other public reports for further information about LPA and LPA business. “YTD (Year to Date)” period starting from the beginning of the current year up to the current date, used to measure the performance over this period. Adjusted EBITDA. LPA defines Adjusted EBITDA as profit (loss) for the period excluding (a) interest income from affiliates, (b) financing costs, (c) income tax expense, (d) depreciation and amortization, (e) investment property valuation gain, (f) gain or loss on disposition of asset held for sale, (g) share-based payment, (h) one-time cash bonus related to the Business Combination, (i) listing expense, (j) other income, (k) other expenses, and (l) net foreign currency gain or loss. Management uses Adjusted EBITDA to measure and evaluate the operating performance of LPA’s business, which consists of developing, leasing and managing industrial properties, before LPA’s cost of capital and income tax expense. Adjusted EBITDA is a measure commonly used in LPA’s industry, and it presents Adjusted EBITDA to supplement investor understanding of its operating performance. LPA’s management believes that Adjusted EBITDA provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles and fair value adjustments of LPA’s assets. Cash Net Operating Income (Cash NOI) LPA defines Cash NOI as NOI adjusted for straight-line rental revenue during the relevant period. Debt Metrics. We evaluate the following debt metrics to monitor the strength and flexibility of our capital structure and evaluate the performance of our management. Investors can utilize these metrics to make a determination about our ability to service or refinance our debt. Net Debt LPA defines Net Debt as LPA’s total debt (defined as long term debt plus long-term debt—current portion) less cash, cash equivalents and restricted cash. Net Debt to Profit (Loss) represents Net Debt divided by Profit (Loss) for the period. Net Debt to Adjusted EBITDA This metric represents Net Debt divided by Adjusted EBITDA. LPA’s management believes that this ratio is useful because it provides investors with information on LPA’s ability to repay debt, compared to LPA’s performance as measured using Adjusted EBITDA. Net Debt to Net Operating Income (NOI) This metric represents Net Debt divided by NOI. LPA’s management believes that this ratio is useful because it provides investors with information on LPA’s ability to repay debt, compared to LPA’s performance as measured using NOI. Net Debt to Investment Properties This metric represents Net Debt divided by Investment Properties (end of period value). LPA believes that this ratio is useful because it shows the degree in which Net Debt has been used to finance LPA’s assets. Development Portfolio Represents industrial properties that are under development and properties that are developed but have not met Stabilization. Development Yield This metric is calculated for development properties as Stabilized NOI divided by TEI. Estimated Build Out (TEI and sq ft) This metric represents the estimated TEI and finished square feet available for lease upon completion of an industrial building on existing parcels of land. Estimated Value Creation This metric represents the value that we expect to create through our development and leasing activities. We calculate Estimated Value Creation by estimating the Stabilized NOI that the property will generate and applying a stabilized capitalization rate applicable to that property. Estimated Value Creation is calculated as the amount by which the value exceeds our TEI, including closing costs and taxes. Funds From Operations, or FFO LPA calculates FFO as profit for the period, excluding (a) investment property valuation gain and (b) gain on disposition of asset held for sale. LPA calculates FFO (as defined by LPA) as FFO, excluding (a) share- based payment, (b) one-time cash bonus related to the Business Combination, (c) listing expense, (d) other income and (e) other expenses. LPA defines Adjusted FFO as FFO (as defined by LPA), excluding (a) depreciation and amortization, (b) non-cash financing costs, (c) interest income from affiliates, (d) unrealized foreign currency gain or loss and (e) straight-line rental revenue. FFO (as defined by LPA) and Adjusted FFO (collectively, “FFO Measures”) These non-IFRS measures help analyze the operating results of LPA’s assets and operations. LPA’s management believes that FFO Measures are useful to investors as supplemental performance measures because they exclude the effects of certain items which can create significant earnings volatility, as well as certain noncash items, but which do not directly relate to LPA’s ongoing business operations or cash flow generation. LPA’s management believes FFO Measures can facilitate comparisons of operating performance between periods, while also providing an indication of future earnings potential. However, since FFO Measures do not capture the level of capital expenditures or maintenance and improvements required to sustain the operating performance of properties, which has a material economic impact on operating results, LPA’s management believes the usefulness of FFO Measures as measures of performance may be limited. LPA’s computation of FFO Measures may not be comparable to FFO measures reported by other real estate companies that define or interpret the FFO definition differently. Fair Market Value (FMV) Represents the value of a property based on current market conditions and appraised by a certified third party. Valuation methodology used by the third-party appraiser for the valuation of the assets and the factors which are part of the approaches, at the end we will present the ranges of the rates such as the market rents used for the entire portfolio. There are three basic approaches to value: • Income Approach • Discounted Cash Flow Method • Direct Comparison Approach • Cost Approach In practice, an approach to value is included or omitted based on its applicability to the property type being valued and the quality and quantity of information available. Income Approach The Income Approach reflects the subject’s income-producing capabilities. This approach assumes that value is created by expected income. Since the investment is expected to be acquired by an investor who would be willing to pay to receive an income stream plus reversion value from a property over a period, the Income Approach is used as the primary approach to value. The two common valuation techniques are the Discounted Cash Flow (DCF) Method and the Direct Capitalization Method.
27 Definitions Return on Cost This is calculated on development properties as Stabilized rental revenue divided by TEI. Same-Property Our Same-Property metrics are non-IFRS financial measures, which are commonly used in the real estate industry and expected from the financial community, on both a net-effective and cash basis. We evaluate the performance of the operating properties we own and manage using a “Same-Property” analysis because the population of properties in this analysis is consistent from period to period, which allows us to analyze our ongoing business operations. The Same-Property population for a given period includes the operating properties that were owned during the entirety of that period and the corresponding prior year period. Properties developed or acquired are excluded from the Same- Property population until they are held in the operating portfolio for the entirety of both such periods, and properties that sold during such periods are also excluded from the Same-Property population. We have defined the Same-Property portfolio, for the three months ended September 30, 2024, as those properties that were owned by LPA as of January 1, 2023 and have been in operations throughout the same three-month periods in both 2023 and 2024. We believe the factors that affect lease rental income, rental recoveries, property operating expenses and NOI in the Same-Property portfolio are generally the same as for our total operating portfolio. We use the following Same- Property metrics to valuate the performance of our operating properties: Same-Property NOI LPA defines Same Property NOI as NOI less non same-property NOI and adjusted for constant currency. LPA evaluates the performance of the properties it owns using a Same Property NOI, and LPA’s management believes that Same Property NOI is helpful to investors and management as a supplemental performance measure because it includes the operating performance from the population of properties that is consistent from period-to-period, thereby eliminating the effects of changes in the composition of LPA’s portfolio on performance. When used in conjunction with IFRS financial measures, Same Property NOI is a supplemental measure of operating performance that LPA’s management believes is a useful measure to evaluate the performance and profitability of LPA investment properties Same-Property Cash NOI LPA defines Same Property Cash NOI as Cash NOI less non same-property cash NOI and adjusted for constant currency. The same property population for a given period includes the operating properties that were owned during the entirety of that period and the corresponding prior year period. Properties developed or acquired are excluded from the same property population until they are held in the operating portfolio for the entirety of both such periods, and properties that sold during such periods are also excluded from the same property population. Stabilization LPA defines stabilization as the earlier of the point at which a developed property has been completed for one year, or when it reaches a 90% occupancy rate. Stabilized NOI This metric is the estimated twelve months of potential gross rental revenue (base rent, including above or below market rents plus operating expense reimbursements) multiplied by 95% to adjust income to a stabilized vacancy factor of 5%, minus estimated operating expenses. Total Expected Investment (“TEI”) This represents total estimated cost of development or expansion, including land, development and leasing costs. TEI is based on current projections and is subject to change. Total Portfolio is comprised of the Operating Portfolio and Development Portfolio. Discounted Cash Flow Method Using this valuation method, future cash flows forecasted over an investment horizon, together with the proceeds of a deemed disposition at the end of the holding period. This method allows for modeling any uneven revenues or costs associated with lease up, rental growth, vacancies, leasing commissions, tenant inducements and vacant space costs. These future financial benefits are discounted to a present value at an appropriate discount rate based on market transactions. • A discount rate applicable to future cash flows and determined primarily by the risk associated with income, and • A capitalization rate used to obtain the future value of the property based on estimated future market conditions. These rates are determined based on: • The constant interviews we have with the developers, brokers, clients and active players in the market to know their expectation of IRR (before debt or without leverage). • Mainly the real transactions in the market are analyzed. Since we are a leading company in the real estate sector, we have extensive experience in most purchase transactions and we have the details of these before and during the purchase, which allows us to have a solid base when selecting our rates. Direct Capitalization Method This method involves capitalizing a fully leased net operating income estimate by an appropriate yield. This approach is best utilized with stabilized assets, where there is little volatility in the net income and the growth prospects are also stable. It is most commonly used with single tenant investments or stabilized investments. Direct Comparison Approach The Direct Comparison Approach utilizes sales of comparable properties, adjusting for differences to estimate a value for the subject property. This approach is developed in a simplified method to establish a range of unit prices for market comparable sales. This method is typically developed to support the Income Approach rather than to conclude on a value. Cost Approach The Cost Approach is based on the principle of substitution - that a prudent and rational person would pay no more for a property than the cost to construct a similar and competitive property - assuming no undue delay in the process. The Cost Approach tends to set the upper limit of value before depreciation is considered. Gross Leasable Area (GLA). The total floor area designed for tenant occupancy and exclusive use, including basements, mezzanines, and upper floors. Net Effective Rent (“NER”) This amount is calculated at the beginning of the lease using estimated total cash base rent to be received over the term and annualized. The NER per square foot number is calculated by dividing the annualized net effective rent by the occupied square feet of the lease. Net Operating Income (“NOI”) LPA defines NOI as profit for the period excluding (a) other revenue (which primarily relates to development fee revenue), (b) general and administrative expenses, (c) listing expense, (d) investment property valuation gain, (e) interest income from affiliates, (f) financing costs, (g) net foreign currency gain or loss, (h) other income, (i) gain on disposition of asset held for sale, (j) other expenses, and (k) income tax expense. Operating Portfolio This includes stabilized industrial properties. Assets held for sale are excluded from the portfolio.
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Investor Presentation Third Quarter 2024
Disclaimer This presentation (the “Presentation”) is provided for informational purposes only and has been prepared to provide interested parties with certain information about Logistic Properties of the Americas and its subsidiaries (collectively, “LPA”) and for no other purpose. This Presentation is not a prospectus, product disclosure statement or any other offering or disclosure document under any other law. The information contained herein is of a general background nature and does not purport to be exhaustive, all-inclusive or complete. This Presentation does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase, any equity, debt or other financial instruments of LPA. No such offering of equity or debt securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, or an exemption therefrom. 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Viewers of this Presentation should each make their own evaluation of LPA and of the relevance and adequacy of the information provided in this Presentation and should make such other investigations as they deem necessary before making an investment decision. Nothing herein should be construed as legal, financial, tax or other advice. You should consult your own advisers concerning any legal, financial, tax or other considerations concerning anything described herein, and, by accepting this Presentation, you confirm that you are not relying solely upon the information contained herein to make any investment decision. The general explanations included in this Presentation cannot address, and are not intended to address, your specific investment objectives, financial situations or financial needs. Forward-Looking Statements This Presentation contains certain forward-looking information which may not be included in future public filings or investor guidance. The inclusion of forward-looking financial information or metrics in this Presentation should not be construed as a commitment by LPA to provide guidance on such information in the future. Certain statements in this Presentation may be considered forward-looking statements. Forward- looking statements include, without limitation, statements about future events or LPA’s future financial or operating performance. For example, statements regarding anticipated growth in the industry in which LPA operates and anticipated growth in demand for LPA’s products and solutions, the anticipated size of LPA’s addressable market and other metrics are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “pro forma,” “may,” “should,” “could,” “might,” “plan,” “possible,” “project,” “strive,” “budget,” “forecast,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “potential” or “continue,” or the negatives of these terms or variations of them or similar terminology. These forward-looking statements regarding future events and the future results of LPA are based on current expectations, estimates, forecasts, and projections about the industry in which LPA operates, as well as the beliefs and assumptions of LPA’s management. These forward-looking statements are only predictions and are subject to known and unknown risks, uncertainties, assumptions and other factors beyond LPA’s control that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. They are neither statements of historical fact nor promises or guarantees of future performance. Therefore, LPA’s actual results may differ materially and adversely from those expressed or implied in any forward-looking statements and LPA therefore cautions against relying on any of these forward-looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by LPA and its management, are inherently uncertain and are inherently subject to risks variability and contingencies, many of which are beyond LPA’s control. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (i) the possibility of any economic slowdown or downturn in real estate asset values or leasing activity or in the geographic markets where LPA operates; (ii) LPA’s ability to manage growth; (iii) LPA’s ability to continue to comply with applicable listing standards of NYSE American; (iv) changes in applicable laws, regulations, political and economic developments; (v) the possibility that LPA may be adversely affected by other economic, business and/or competitive factors; (vi) LPA’s estimates of expenses and profitability; (vii) the outcome of any legal proceedings that may be instituted against LPA and (viii) other risks and uncertainties set forth in the filings by LPA with the U.S. Securities and Exchange Commission (the “SEC”). There may be additional risks that LPA does not presently know or that LPA currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Any forward-looking statements made by or on behalf of LPA speak only as of the date they are made. Except as otherwise required by applicable law, LPA disclaims any obligation to publicly update or revise any forward-looking statements to reflect any changes in their respective expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. Accordingly, you should not place undue reliance on forward-looking statements due to their inherent uncertainty. Nothing in this Presentation should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Industry and Market Data This Presentation also contains estimates and other statistical data made by independent parties which they believe to be reliable and by LPA relating to market size and growth and other data about LPA’s industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. In addition, projections, assumptions, and estimates of the future performance of the markets in which LPA operates are necessarily subject to a high degree of uncertainty and risk. LPA has not independently verified the accuracy or completeness of the independent parties’ information. No representation is made as to the reasonableness of the assumptions made within or the accuracy or completeness of such independent information. Trademarks LPA owns or has rights to various trademarks, service marks and trade names used is connection with the operation of its business. This Presentation may also contain trademarks, service marks, trade names and copyrights of other companies or third parties, which are the property of their respective owners. LPA’s use thereof does not imply an affiliation with, or endorsement by, the owners of such trademarks, service marks, trade names and copyrights. Solely for convenience, some of the trademarks, service marks, trade names and copyrights referred to in this Presentation may be listed without the TM, SM or symbols, but LPA will assert, to the fullest extent under applicable law, the rights of the applicable owners to these trademarks, service marks, trade names and copyrights. Financial Measures Certain financial information contained herein is unaudited and is based on internal records and/or estimates. The Presentation also contains unaudited alternative financial measures that are measures of financial performance not calculated in accordance with generally accepted accounting principles in the United States (or international financial reporting standards (“IFRS”)) and should not be considered as replacements or alternatives to net income or loss, cash flow from operations or other measures of operating performance or liquidity of LPA. These alternative financial measures should be viewed in addition to, and not as a substitute for, analysis of LPA’s results reported in accordance with IFRS or otherwise. Notwithstanding these limitations, and in conjunction with other accounting and financial information available, LPA’s management considers the alternative financial measures contained in this presentation (including EBITDA, EBITDA margin, Net Debt, Net Operating Income (NOI), Cash NOI, Same-Property NOI, Same-Property Cash NOI, Enterprise Value, Equity Value, FFO, AFFO, Yield-to-cost, and Return on Equity (ROE)) reasonable indicators for comparisons between LPA and LPA’s principal competitors on the market. These alternative financial measures are used by market participants for comparative analysis, albeit with certain limitations as analytical tools, of the results of businesses in the sector and as indicators of LPA’s capacity to generate cash flows. Nevertheless, alternative financial measures do not have any standardized meaning and therefore may not be comparable to similar measures presented by other companies. You should review LPA’s financial statements and additional information included in its filings with the SEC.
3 Development and construction(2) of properties in the land bank DEVELOPER Asset ownership on a long-term basis OWNER Leasing and management(3) of assets MANAGER Logistic Properties of the Americas is a leading developer, owner, acquirer and manager of logistic and industrial real estate of international quality in Central and South America. LPA is one of the few, internally managed, vertically-integrated and institutional platforms operating across the region (1). Acquisition of stabilized assets ACQUIRER Notes: (1) LPA believes most of the real estate companies and funds in Costa Rica, Colombia and Peru do not focus exclusively on the industrial segment (they have a presence in retail, hotels, etc.) and do not have a regional presence; (2) Construction is outsourced to construction companies; (3) Relationship with tenants and administration of logistics parks
4 LIMA, PERU Operating GLA (sqft) Development GLA (sqft) Land Reserves (acres)(6) 1,350,084 166,410 40.5 BOGOTA, COLOMBIA Operating GLA (sqft) Development GLA (sqft) Land Reserves (acres)(6) 1,255,404 - 50.6 SAN JOSE, COSTA RICA Operating GLA (sqft) Development GLA (sqft) Land Reserves (acres)(6) 2,516,137 - - 7.3 mm sqft Gross Leasable Area(1) 81.6% US dollars-denominated Leases(3) 5.0 years Avg. remaining lease life(4) 19.8% Cash NOI(5) Growth YTD 3Q 2024 – 2023 Current Operations Expansion Plans Logistic Park Coyol I, Alajuela, Costa Rica Logistic Park Calle 80, Bogota, Colombia Logistic Park Lurin I, Lima, Peru (1) Includes 5.3 million sq ft of GLA in our total portfolio and 2.0 million of potential new GLA to be built-out in our land portfolio. (2) Operating Portfolio period end occupancy. (3) Based on active leases as of September 30, 2024. (4) Remaining lease life weighted average by leased area (5) NOI is a non-IFRS measure. (6) Land reserve acres are adjusted for Floor Area Ratio (“FAR”). LPA at a Glance As of September 30, 2024 94.5% Occupancy(2) Example Properties US$27.7 mm YTD Q3 2024 NOI(5) Logistic Park Lurin I, Li a, Peru
5 Natural Light Fire Protection System: NFPA Clear Height: 39 ft Floor Capacity: 0.5-0.7 Tons/sqft LPA Develops Facilities to meet U.S. Institutional Standards Facility Specs Interiors Distance between Columns: optimized
6 Container Parking Platforms: 1 per 5,059 sqft Shared Maneuvering Yards: 187 ft Exclusive Maneuvering Yard: 125 ft LPA Develops Facilities to meet U.S. Institutional Standards Facility Specs Exteriors
7 4.3 5.6 2023 2027E CAGR 23-27E: 1 1% 133 146 163 182 204 2023 2024E 2025E 2026E 2027E 0.6 1.0 2023 2027E 11% E-commerce is a Resilient Driver of Demand E-commerce requires ~3.0x the logistical space as compared to traditional retail logistics operations. E-commerce will continue to drive significant demand for LPA Source: Euromonitor, May 8, 2024 E-Commerce Penetration (E-Commerce as % of total sales – 4Q23)(US$ in billions) 2023 – 2027E CAGR Latin America Costa Rica 14% E-Commerce Sales – Latin America Peru 7% 27.5% 26.3% 15.5% 15.5% 12.3% 4.1% APAC North America Central & Eastern Europe Western Europe Latin America Middle East & Africa Colombia 5.9 8.9 2023 2027E
8 Colombia Proven Track Record of Performance and Growth Net Operating Income Growth Date as of September 30, 2024 (1) 2021 – 2024 (Annualized) Operating Portfolio GLA Growth Adjusted EBITDA US$ in thousands Sq Ft in thousands CAGR(1): 14.8% US$ in thousands CAGR(1): 19.8% CAGR(1): 17.0% 3,388 4,038 4,620 5,122 2021 2022 2023 Q3 2024 16,353 22,195 25,953 19,625 2021 2022 2023 Q3 2024 21,467 26,483 34,185 27,690 13,000 14,329 19,352 15,322 4,207 7,063 7,784 6,7854,260 5,091 7,049 5,583 2021 2022 2023 Q3 2024 Costa Rica Peru
9 Coveted Tenant Relationships LPA’s differentiated Class A product and geographic diversification make it the ideal partner to large multinationals and respected regional / local players Logistic Services Consumer Goods and Distribution Retailer (including E-Commerce) Manufacturing and Other
10 81.6% 18.4%18.4% 19.7%56.6% 5.3%19.6% 37.2% 27.5% 15.7% Operations Customer Concentration and Lease Expiration Analysis Lease Breakdown as Measured by Total Portfolio NER Customer Type Contractual Rent Increases Amount of Leases by Currency As of September 30, 2024 Top 10 Customers as % of Net Effective Rent % of Net Effective Rent Total Square Feet 1 Alicorp 8.0 % 437,370 2 Kuehne + Nagel 7.2 % 384,777 3 Samsung 6.8 % 200,209 4 Pequeño Mundo 5.2 % 270,572 5 Yichang 4.0 % 220,875 6 Natura & Co 3.8 % 206,785 7 CEVA 3.8 % 219,734 8 Indurama 3.5 % 191,684 9 PriceSmart 3.4 % 167,831 10 IKEA 3.0 % 185,548 Total 48.7% 2,485,385 Lease Expirations Net Effective Rent % of Currency Year Occupied Sq Ft Annualized (US$ in millions) % of Total $/Sq Ft COP USD 2024 65,068 0.6 1.6 % $ 9.22 — % 100.0 % 2025 376,747 2.6 6.6 % $ 6.90 16.0 % 84.0 % 2026 321,905 2.4 6.1 % $ 7.46 23.5 % 76.5 % 2027 957,051 6.9 17.5 % $ 7.21 38.5 % 61.5 % 2028 707,748 5.1 12.9 % $ 7.21 14.2 % 85.8 % Thereafter 2,550,958 21.8 55.3 % $ 8.55 15.0 % 85.0 % Total 4,979,477 39.4 100.0 % $ 7.92 19.4 % 80.6 % Logistic Services Consumer Goods Distribution Retailer Manufacturing and Other COL-CPI US-CPI Constant Escalator Other USD COP
11 10.2 11.5 10.4 10.9 11.2 8.7 10.4 8.9 9.2 9.6 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Rental Revenues and Net Operating Income Continues to Grow as positive annual changes in leases and increase in GLA Cash Same Properties NOI Growth Driven by Rent Growth and Free Rent Period Burning Out Solid Operating Performance Period-End Operating Portfolio Occupancy and Period-End Leased Development Portfolio Data as of September 30, 2024 99.4% 100.0% 96.7% 94.6% 94.5% 64.3% 78.5% 95.5% 92.3% 84.8% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Operating Portfolio Development Portfolio US$ in millions Rental Revenues NOI 9.3% 7.0% 6.8% -2.6% 1.3% 22.1% 14.2% 20.6% 8.5% (0.1)% Q3 2024 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Same-Property NOI Same-Property Cash NOI
12 90% 10% 878 1,090 Data as of September 30, 2024 Organic Growth of up to ~2.0 million additional square feet through the Development of our Land Portfolio 5,122 sq ft 166 sq ft 1,968 sq ft 7,256 sq ft Operating Portfolio Dev. Portfolio Land bank and Expansion Land (1) (square feet in thousands) Operating Portfolio by Country Development Portfolio by Country Operating Portfolio Acquired vs Developed (based on sq ft) (based on sq ft) (based on sq ft) OPERATING PORTFOLIO METRICS Net Rentable Area 5,122 sq ft Average Portfolio Aging 4.3 years Number of Logistic Properties 30 Period End Occupancy % 94.5% Average Building Size per Country: sq ft in 000’s Costa Rica 110 sq ft – 215 sq ft Peru 160 sq ft – 270 sq ft Colombia 215 sq ft– 325 sq ft Average Tenant Size per Country: sq ft in 000’s Costa Rica 54 sq ft – 160 sq ft Peru 85 sq ft – 215 sq ft Colombia 160 sq ft– 270 sq ft DEVELOPMENT PORTFOLIO METRICS Net Rentable Area 166 sq ft Number of Logistic Properties 1 Leased % 100.0% Development Pipeline per Country: Bldg # GLA (sq ft) % Leased Costa Rica 0 0 - Peru 1 166 100.0% Colombia - - - Total 1 166 100.0% 49% 26% 25% Land bank and Expansion Land Based on Buildable Square Feet in Thousands Peru Colombia Costa Rica Peru Colombia Peru Developed Acquired
13 Capitalization Debt Summary and Metrics Debt Summary Debt Metrics As of September 30, 2024 (1) Net Debt related multiples are calculated using the annualized Adjusted EBITDA and quarter-to-date NOI in their respective calculations Debt by Currency 84.3% 15.7% USD COP Fixed vs Floating Rate Debt 62.6% 37.4% Fixed Floating Secured vs Unsecured Debt 100.0% Secured US$ in millions Maturity Loans Wtd Avg.Cash Interest Rate 2024 2.6 7.9 % 2025 12.9 6.8 % 2026 9.0 6.0 % 2027 9.7 6.0 % 2028 10.5 6.0 % 2029 11.3 6.0 % Thereafter 216.5 5.2 % Sub-total debt at par 272.5 8.4% Premium/Discount 0.4 Deferred Financing Cost (1.9) Total Debt 271.0 2024 Third Quarter Second Quarter Net debt 233.7 223.0 Net debt over investment properties (end of period) 43.6 % 42.4 % Net debt/ Adjusted EBITDA ratio (1) 8.9x 8.3x Net debt / NOI (1) 6.3x 6.1x
14 Strong Focus on Sustainability We believe our ESG commitment is institutionalized in LPA’s corporate culture Social Governance Warehouses comply with highest standards of efficiency and environmental sustainability by means of EDGE certification – EDGE certification (sponsored by the IFC and World Bank), promotes the development of sustainable buildings with savings of at least 20% of potable water, electricity consumption and carbon footprint levels compared with conventional buildings All of LPA’s projects are managed through the Ecological Blue Flag Program (Bandera Azul), an award that acknowledges effort and volunteer work seeking to improve social and environmental conditions Internally managed - alignment of interests Board of Directors with extensive experience and adequate representation of shareholders Committees led by independent members Transparency through defined policies and regulations Protection mechanisms for minority shareholders Defined investment criteria Long-term incentive program prepared for managers Human Capital: professional development policies, training programs, annual bonus, feedback and annual review Value Chain: strict supplier selection criteria, suppliers code of conduct and databases, sustainable procurement practices, sustainable use of facilities manual for tenants, open communications channels Deep understanding of client needs – strategic partners in growth Community: sustainable business and community strategy, “Bandera Azul Ecológica” environmental program, corporate volunteering & environmental education Environmental
15LPA Coyol 1 Logistic Park, Costa Rica Appendix
16 Strong Focus on Sustainability She CEO and CFO have a combined track record of 30+ years and are complemented by local managers with deep knowledge of their respective markets Country Manager, Costa Rica Luis Conejo • 5 years with LPA • Previously Client Relationship Manager at Vivicon • 15+ years of experience, 7 years with LPA • Principal in the Investment Team at Jaguar Growth Partners, a global private equity firm • Significant experience in real estate operating companies. • Led and executed multiple M&A transactions in the region • International investment banking experience (J.P. Morgan) • MBA from Columbia Business School in New York City and B.S. and M.Sc. in Economics from Universidad Javeriana in Bogota Esteban Saldarriaga Annette Fernández • 15+ years of industry experience, 6 years with LPA • Previously VP of Financial Operations and Investor Relations for FIBRA Prologis • 5 years at PwC. • B.S. in Accounting from University of Puerto Rico CEO COO Guillermo Zarco Country Manager, Colombia • 6 years with LPA • Previously Logistics Portfolio Manager at Terranum Alvaro Chinchayan Country Manager, Peru • 7 years with LPA • Previously Project Manager at PECSA and General Manager at Papelera Alfa Paul Smith • 15+ years of experience as a CFO of public and private companies • Experienced in financial structuring. Closed transactions in asset-heavy and asset-light businesses • Led and executed multiple M&A transactions in the region, consulting experience from McKinsey & Co. • MBA from Harvard Business School and B.S. in Accounting and Finance from Universidad Panamericana in Guadalajara, Mexico CFO Esteba l a riaga ith LPA has extensive industrial and real estate experience in Central and South America
17 As a Corporate Entity, LPA Offers a Differentiated Value Proposition Notes: (1) Assets Under Management Corporate Entity REIT Investment Focus • Focused on industrial real estate assets – Participate in the whole value chain with Development capabilities + Asset valuation + Asset Management • Rules on how assets must be invested – Total assets must be at least 75% real estate investments – Acquired or developed assets should be used for leasing activities only – No more than 20% of the assets can be invested in other REITs listed on the Stock Market Fee Structure • More Shareholder-Friendly Structure – No fees charged to investors – In-house management is fully aligned with the Company’s objectives • Fee structures can create conflicts of interest – Includes investor fees: i) fixed fee based on a % of AUM(1); and ii) incentive fee / specific metrics. – Potential conflict in prioritizing AUM(2) growth at the expense of choosing profitable, high-yielding investments Distributions • Focused on real estate quality and long-term value – Focused on total return – No requirement by regulation to distribute dividends – Taxes at the corporate level – All distributions to shareholders are post income tax on the P&L • Focused on initial returns – Focused on dividend yield – Required to distribute at least 90% of taxable net income as dividends annually – No taxes at the corporate level. Pass-through vehicle for the investor, subject to fiscal regime Compensation Structure • Internally Managed – Employed manager – Platform included (investment team, back-office support, etc.) • Externally Managed – Third-party manager – Dependence on the infrastructure of an external administrator
18 Definitions Please refer to LPA financial statements as prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board and filed with the Security and Exchange Commission (“SEC”) and other public reports for further information about LPA and LPA business. “YTD (Year to Date)” period starting from the beginning of the current year up to the current date, used to measure the performance over this period. Adjusted EBITDA. LPA defines Adjusted EBITDA as profit (loss) for the period excluding (a) interest income from affiliates, (b) financing costs, (c) income tax expense, (d) depreciation and amortization, (e) investment property valuation gain, (f) gain or loss on disposition of asset held for sale, (g) share-based payment, (h) one-time cash bonus related to the Business Combination, (i) listing expense, (j) other income, (k) other expenses, and (l) net foreign currency gain or loss. Management uses Adjusted EBITDA to measure and evaluate the operating performance of LPA’s business, which consists of developing, leasing and managing industrial properties, before LPA’s cost of capital and income tax expense. Adjusted EBITDA is a measure commonly used in LPA’s industry, and it presents Adjusted EBITDA to supplement investor understanding of its operating performance. LPA’s management believes that Adjusted EBITDA provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles and fair value adjustments of LPA’s assets. Cash Net Operating Income (Cash NOI) LPA defines Cash NOI as NOI adjusted for straight-line rental revenue during the relevant period. Debt Metrics. We evaluate the following debt metrics to monitor the strength and flexibility of our capital structure and evaluate the performance of our management. Investors can utilize these metrics to make a determination about our ability to service or refinance our debt. Net Debt LPA defines Net Debt as LPA’s total debt (defined as long term debt plus long-term debt—current portion) less cash, cash equivalents and restricted cash. Net Debt to Profit (Loss) represents Net Debt divided by Profit (Loss) for the period. Net Debt to Adjusted EBITDA This metric represents Net Debt divided by Adjusted EBITDA. LPA’s management believes that this ratio is useful because it provides investors with information on LPA’s ability to repay debt, compared to LPA’s performance as measured using Adjusted EBITDA. Net Debt to Net Operating Income (NOI) This metric represents Net Debt divided by NOI. LPA’s management believes that this ratio is useful because it provides investors with information on LPA’s ability to repay debt, compared to LPA’s performance as measured using NOI. Net Debt to Investment Properties This metric represents Net Debt divided by Investment Properties (end of period value). LPA believes that this ratio is useful because it shows the degree in which Net Debt has been used to finance LPA’s assets. Development Portfolio Represents industrial properties that are under development and properties that are developed but have not met Stabilization. Development Yield This metric is calculated for development properties as Stabilized NOI divided by TEI. Estimated Build Out (TEI and sq ft) This metric represents the estimated TEI and finished square feet available for lease upon completion of an industrial building on existing parcels of land. Estimated Value Creation This metric represents the value that we expect to create through our development and leasing activities. We calculate Estimated Value Creation by estimating the Stabilized NOI that the property will generate and applying a stabilized capitalization rate applicable to that property. Estimated Value Creation is calculated as the amount by which the value exceeds our TEI, including closing costs and taxes. Funds From Operations, or FFO LPA calculates FFO as profit for the period, excluding (a) investment property valuation gain and (b) gain on disposition of asset held for sale. LPA calculates FFO (as defined by LPA) as FFO, excluding (a) share- based payment, (b) one-time cash bonus related to the Business Combination, (c) listing expense, (d) other income and (e) other expenses. LPA defines Adjusted FFO as FFO (as defined by LPA), excluding (a) depreciation and amortization, (b) non-cash financing costs, (c) interest income from affiliates, (d) unrealized foreign currency gain or loss and (e) straight-line rental revenue. FFO (as defined by LPA) and Adjusted FFO (collectively, “FFO Measures”) These non-IFRS measures help analyze the operating results of LPA’s assets and operations. LPA’s management believes that FFO Measures are useful to investors as supplemental performance measures because they exclude the effects of certain items which can create significant earnings volatility, as well as certain noncash items, but which do not directly relate to LPA’s ongoing business operations or cash flow generation. LPA’s management believes FFO Measures can facilitate comparisons of operating performance between periods, while also providing an indication of future earnings potential. However, since FFO Measures do not capture the level of capital expenditures or maintenance and improvements required to sustain the operating performance of properties, which has a material economic impact on operating results, LPA’s management believes the usefulness of FFO Measures as measures of performance may be limited. LPA’s computation of FFO Measures may not be comparable to FFO measures reported by other real estate companies that define or interpret the FFO definition differently. Fair Market Value (FMV) Represents the value of a property based on current market conditions and appraised by a certified third party. Valuation methodology used by the third-party appraiser for the valuation of the assets and the factors which are part of the approaches, at the end we will present the ranges of the rates such as the market rents used for the entire portfolio. There are three basic approaches to value: • Income Approach • Discounted Cash Flow Method • Direct Comparison Approach • Cost Approach In practice, an approach to value is included or omitted based on its applicability to the property type being valued and the quality and quantity of information available. Income Approach The Income Approach reflects the subject’s income-producing capabilities. This approach assumes that value is created by expected income. Since the investment is expected to be acquired by an investor who would be willing to pay to receive an income stream plus reversion value from a property over a period, the Income Approach is used as the primary approach to value. The two common valuation techniques are the Discounted Cash Flow (DCF) Method and the Direct Capitalization Method.
19 Definitions Return on Cost This is calculated on development properties as Stabilized rental revenue divided by TEI. Same-Property Our Same-Property metrics are non-IFRS financial measures, which are commonly used in the real estate industry and expected from the financial community, on both a net-effective and cash basis. We evaluate the performance of the operating properties we own and manage using a “Same-Property” analysis because the population of properties in this analysis is consistent from period to period, which allows us to analyze our ongoing business operations. The Same-Property population for a given period includes the operating properties that were owned during the entirety of that period and the corresponding prior year period. Properties developed or acquired are excluded from the Same-Property population until they are held in the operating portfolio for the entirety of both such periods, and properties that sold during such periods are also excluded from the Same-Property population. We have defined the Same-Property portfolio, for the nine months ended September 30, 2024, as those properties that were owned by LPA as of January 1, 2023 and have been in operations throughout the same nine-month periods in both 2023 and 2024. We believe the factors that affect lease rental income, rental recoveries, property operating expenses and NOI in the Same-Property portfolio are generally the same as for our total operating portfolio. We use the following Same-Property metrics to valuate the performance of our operating properties: Same-Property NOI LPA defines Same Property NOI as NOI less non same-property NOI and adjusted for constant currency. LPA evaluates the performance of the properties it owns using a Same Property NOI, and LPA’s management believes that Same Property NOI is helpful to investors and management as a supplemental performance measure because it includes the operating performance from the population of properties that is consistent from period-to-period, thereby eliminating the effects of changes in the composition of LPA’s portfolio on performance. When used in conjunction with IFRS financial measures, Same Property NOI is a supplemental measure of operating performance that LPA’s management believes is a useful measure to evaluate the performance and profitability of LPA investment properties Same-Property Cash NOI LPA defines Same Property Cash NOI as Cash NOI less non same-property cash NOI and adjusted for constant currency. The same property population for a given period includes the operating properties that were owned during the entirety of that period and the corresponding prior year period. Properties developed or acquired are excluded from the same property population until they are held in the operating portfolio for the entirety of both such periods, and properties that sold during such periods are also excluded from the same property population. Stabilization LPA defines stabilization as the earlier of the point at which a developed property has been completed for one year, or when it reaches a 90% occupancy rate. Stabilized NOI This metric is the estimated twelve months of potential gross rental revenue (base rent, including above or below market rents plus operating expense reimbursements) multiplied by 95% to adjust income to a stabilized vacancy factor of 5%, minus estimated operating expenses. Total Expected Investment (“TEI”) This represents total estimated cost of development or expansion, including land, development and leasing costs. TEI is based on current projections and is subject to change. Total Portfolio is comprised of the Operating Portfolio and Development Portfolio. Discounted Cash Flow Method Using this valuation method, future cash flows forecasted over an investment horizon, together with the proceeds of a deemed disposition at the end of the holding period. This method allows for modeling any uneven revenues or costs associated with lease up, rental growth, vacancies, leasing commissions, tenant inducements and vacant space costs. These future financial benefits are discounted to a present value at an appropriate discount rate based on market transactions. • A discount rate applicable to future cash flows and determined primarily by the risk associated with income, and • A capitalization rate used to obtain the future value of the property based on estimated future market conditions. These rates are determined based on: • The constant interviews we have with the developers, brokers, clients and active players in the market to know their expectation of IRR (before debt or without leverage). • Mainly the real transactions in the market are analyzed. Since we are a leading company in the real estate sector we have extensive experience in most purchase transactions and we have the details of these before and during the purchase, which allows us to have a solid base when selecting our rates. Direct Capitalization Method This method involves capitalizing a fully leased net operating income estimate by an appropriate yield. This approach is best utilized with stabilized assets, where there is little volatility in the net income and the growth prospects are also stable. It is most commonly used with single tenant investments or stabilized investments. Direct Comparison Approach The Direct Comparison Approach utilizes sales of comparable properties, adjusting for differences to estimate a value for the subject property. This approach is developed in a simplified method to establish a range of unit prices for market comparable sales. This method is typically developed to support the Income Approach rather than to conclude on a value. Cost Approach The Cost Approach is based on the principle of substitution - that a prudent and rational person would pay no more for a property than the cost to construct a similar and competitive property - assuming no undue delay in the process. The Cost Approach tends to set the upper limit of value before depreciation is considered. Gross Leasable Area (GLA). The total floor area designed for tenant occupancy and exclusive use, including basements, mezzanines, and upper floors. Net Effective Rent (“NER”) This amount is calculated at the beginning of the lease using estimated total cash base rent to be received over the term and annualized. The NER per square foot number is calculated by dividing the annualized net effective rent by the occupied square feet of the lease. Net Operating Income (“NOI”) LPA defines NOI as profit for the period excluding (a) other revenue (which primarily relates to development fee revenue), (b) general and administrative expenses, (c) listing expense, (d) investment property valuation gain, (e) interest income from affiliates, (f) financing costs, (g) net foreign currency gain or loss, (h) other income, (i) gain on disposition of asset held for sale, (j) other expenses, and (k) income tax expense. Operating Portfolio This includes stabilized industrial properties. Assets held for sale are excluded from the portfolio.
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