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 August 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 ☒ Form 40-F ☐
EXPLANATORY
NOTE
On
August 14, 2024, Logistic Properties of the Americas announced its financial results for the second quarter of 2024. A
copy of this announcement and the accompanying supplemental information are furnished as Exhibit 99.1 and 99.2 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
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.
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Logistic
Properties of the Americas |
| |
|
|
| |
By: |
/s/
Esteban Saldarriaga |
| |
Name: |
Esteban
Saldarriaga |
| |
Title: |
Chief
Executive Officer |
Date:
August 14, 2024
Exhibit 99.1
Logistic
Properties of the Americas Announces Second Quarter 2024 Earnings Results
Yearly
Revenue Growth of 10% Highlights Strong Performance
SAN
JOSÉ, Costa Rica, August 14, 2024 – Logistic Properties of the Americas (NYSE American: LPA) (together with its subsidiaries,
“LPA” or the “Company”), a leading developer, owner, acquirer and manager of logistic and industrial real estate
of international quality in Central and South America, and one of the few, internally managed, vertically-integrated, and institutional
platforms operating across the region, today announced unaudited financial results for the three months ended June 30, 2024 (“second
quarter 2024” or “2Q24”). Financial results are expressed in U.S. dollars and are presented in accordance with International
Financial Reporting Standards (“IFRS”), which differs in certain significant respects from U.S. 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 in this
announcement are year-over-year (“YoY”), unless otherwise noted. LPA’s financial results are stated in US dollars unless
otherwise noted.
2Q24
Financial and Operating Highlights
|
● |
Operating
portfolio occupancy ended 2Q24 at 94.6%, due to expected lease expirations in Colombia and Peru. |
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|
|
|
● |
Average
rent per square foot increased 11.3% YoY to $ 7.87 in 2Q24 from $7.07 in 2Q23 and is in line with embedded automatic
escalators that the company has in its contracts. |
| |
|
|
|
● |
Revenue
increased 10.0% to $11.0 million in 2Q24, primarily due to increases of 20.7% in Peru and
9.3% in Costa Rica, more than offsetting a 2.3% decline in Colombia primarily attributable
to the sale of a building during the fourth quarter of 2023. |
| |
|
|
|
● |
Net
Operating Income (NOI) increased 6.2% to $ 9.2 million in 2Q24 from $8.7 million in 2Q23, and Same-Property Cash NOI Increased 8.5%
during the same period. |
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|
|
|
● |
Net
Earnings Attributable to Owners of the Company reached $9.9 million, compared with a Net Loss of $4.8 million in 2Q23. Earnings per
Share Attributable to Owners of the Company-basic and diluted of $ 0.31, up from a loss of $0.17 in 2Q23. |
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|
|
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● |
In
April 2024, the Company refinanced secured loans of $46.6 million with BAC Credomatic, S.A. with a new secured facility of $60.0
million with the same lender, to continue financing the development of the La Verbena Logistics Park in Costa Rica. The new secured
facility bears a lower interest rate (from 378 bps to 200 bps above SOFR) and extends the maturity date from July 2031 to April 2039.
|
Subsequent
Events
|
● |
On
July 15, 2024, LPA announced that Françoise Lavertu and Javier Marquina had been appointed as independent directors, augmenting
the Company’s board to a total of seven members and the number of independent directors to six. |
CEO
Commentary
LPA’s
portfolio of operating assets delivered a solid performance in the second quarter of 2024, driven by favorable underlying market trends
and leasing dynamics. Revenues increased 10% year-over-year to $11.0 million, as more of our leases were marked-to-market upon renewals,
and we signed leases for a recently completed industrial park in Costa Rica with several tenants, including a Fortune 500 company. Our
net operating income grew 6.2% to $9.2 million for the second quarter. It is important to note that G&A expenses were markedly higher,
mainly due to one-time costs related to LPA going public, and additional costs which will be recurring as we assume heightened auditing
and reporting obligations under US regulations.
The
quarter also brought unexpected fee income obtained from releasing certain shareholders from lock-up agreements when LPA’s share
price activity warranted these releases. The cash benefit bolsters our funding toward expanding LPA’s portfolio.
Our
operating GLA increased 7.5% to 5.0 million square feet during the first half of 2024, with leased GLA decreasing 5.9% to 5.0 million
square feet. Stabilized occupancy decreased 540 basis points to 94.6% during the same period, as we are patient and highly selective
in our re-leasing efforts, particularly in Colombia, where positive mark-to-market spreads can range between 25% and 40%. The lack of
incoming supply in this market over the last 18 months allows us to search for higher-value and option-constrained tenants who need our
premium product.
Our
finance team continues to identify ways to increase LPA’s capital efficiency. In April, we successfully refinanced the $60 million
facility for our La Verbena Logistics Park in Costa Rica. With this refinancing, we lowered the interest rate by 178 basis points and
extended the maturity profile of the facility to a 20-year amortization tenor.
To
conclude, we believe our future remains bright, and LPA is only in its early stages. Based on our strong track record of success, we
intend to continue focusing on delivering world-class products and capital solutions for our tenants, and investing patiently, all while
maintaining a high level of operational excellence.
Esteban
Saldarriaga
Chief
Executive Officer
Real
Estate Portfolio
| | |
Real Estate Portfolio | |
| | |
As of
June 30, 2024 | | |
As of
December 31, 2023 | | |
As of
June 30, 2023 | |
| Number of operating real estate properties | |
29 | | |
28 | | |
28 | |
| Operating GLA (sq. ft) | |
| 4,965,171 | | |
| 4,618,806 | | |
| 4,615,743 | |
| Leased area (sq. ft) | |
| 4,996,538 | | |
| 5,308,454 | | |
| 4,681,774 | |
| Number of tenants | |
| 50 | | |
| 53 | | |
| 53 | |
| Average rent per square foot | |
| 7.87 | | |
| 7.80 | | |
| 7.07 | |
| Weighted average remaining lease term | |
| 5.3 years | | |
| 5.3 years | | |
| 5.1
years | |
| Stabilized occupancy rate (% of GLA) | |
| 94.6 | % | |
| 100.0 | % | |
| 99.4 | % |
Financial
Performance
Revenues
(amounts
expressed in thousand dollars, unless otherwise noted)
| | |
Three- months ended June 30 | |
| | |
2024 | | |
2023 | | |
% Chg. | |
| Rental revenue | |
| | | |
| | | |
| | |
| Colombia | |
| 2,019 | | |
| 2,067 | | |
| -2.3 | % |
| Peru | |
| 2,935 | | |
| 2,433 | | |
| 20.7 | % |
| Costa Rica | |
| 5,993 | | |
| 5,482 | | |
| 9.3 | % |
| Unallocated revenue | |
| 40 | | |
| 8 | | |
| 375.6 | % |
| Total revenue | |
| 10,987 | | |
| 9,990 | | |
| 10.0 | % |
Investment
Property Operating Expenses
(amounts
expressed in thousand dollars, unless otherwise noted)
| | |
Three- months ended June 30 | |
| | |
2024 | | |
2023 | | |
% Chg. | |
| Investment property operating expense | |
| | | |
| | | |
| | |
| Colombia | |
| -291 | | |
| -259 | | |
| 12.5 | % |
| Peru | |
| -545 | | |
| -483 | | |
| 12.7 | % |
| Costa Rica | |
| -872 | | |
| -541 | | |
| 61.3 | % |
| Total Investment Property Operating expense | |
| -1,708 | | |
| -1,283 | | |
| 33.2 | % |
Operating
Performance
(amounts
expressed in thousand dollars, unless otherwise noted)
| | |
Three- months ended June 30 | |
| | |
2024 | | |
2023 | | |
% Chg. | |
| Total revenues | |
| 10,987 | | |
| 9,990 | | |
| 10.0 | % |
| Total investment property operating expense | |
| -1,708 | | |
| -1,283 | | |
| 33.2 | % |
| General and administrative | |
| -4,557 | | |
| -1,076 | | |
| 323.4 | % |
| Investment property valuation gain | |
| 4,551 | | |
| 305 | | |
| NM | |
| Interest income from affiliates | |
| 0 | | |
| 158 | | |
| -100.0 | % |
| Financing costs | |
| -5,809 | | |
| -12,135 | | |
| -52.1 | % |
| Net foreign currency (loss) gain | |
| -158 | | |
| 64 | | |
| -345.6 | % |
| Gain on sale of asset held for sale | |
| 0.0 | | |
| 1,023 | | |
| -100.0 | % |
| Other income | |
| 10,838 | | |
| 53 | | |
| NM | |
| Other expenses | |
| -1,172 | | |
| -54 | | |
| NM | |
| Profit (loss) before taxes | |
| 12,971 | | |
| -2,955 | | |
| NM | |
| Income tax expense | |
| -539 | | |
| -1,808 | | |
| -70.2 | % |
| PROFIT(LOSS) FOR THE PERIOD | |
| 12,432 | | |
| -4,763 | | |
| NM | |
| NM- not meaningful | |
| | | |
| | | |
| | |
Supplemental
Information
Please
refer to LPA’s quarterly Supplemental Information and Management Discussion and Analysis, available on the Company’s Investor
Relations website at https://ir.lpamericas.com
2Q24
Earnings Conference Call
When:
9:00 a.m. Eastern time, August 15, 2024
Who:
Mr. Thomas McDonald, Chairman of the Board, Mr. Esteban Saldarriaga, Chief Executive Officer, Mr. Paul Smith, Chief Financial Officer,
Ms. Annette Fernandez, Chief Operating Officer, Ms. Juliana Dominguez, Investor Relations
Dial-in:
1 800 715 9871 (U.S. domestic); 1 646 307 1963 (International)
Passcode:
7886580
Pre-Register:
You may pre-register at any time: click here. To access LPA’s financial results call via telephone, callers need to press #
to be connected to an operator.
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, Class A 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. 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 June 30, 2024, LPA consisted of an operating and development portfolio of thirty-four
logistic facilities in Colombia, Peru and Costa Rica 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
in 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
Juliana
Dominguez
Logistic
Properties of the Americas
+57
601-518-5124
juliana@lpamericas.com
Barbara
Cano/Ivan Peill
InspIR
Group
barbara@inspirgroup.com
/ ivan@inspirgroup.com
Exhibit
99.2
Logistic Properties of t... (AMEX:LPA)
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