LPA Sells 42% of Its Portfolio and Bets the Proceeds on Mexico

Logistic Properties of the Americas (NYSE American: LPA) sold assets equal to roughly 42% of its gross property value — just over $300 million across three transactions — and plans to deploy most of about $137 million in net equity proceeds into Mexico. The company announced the figures on its third-quarter 2026 earnings call, alongside results that look strong at first glance and thinner once currency effects are stripped out.

Revenue rose 19.3% year over year to $15.4 million, and net operating income increased 21.1% to $12.6 million. The quarter marked LPA's fourth consecutive period of 100% occupancy across its logistics portfolio. Those headline numbers, however, rest partly on the Colombian peso: excluding its appreciation, net operating income would have risen 14.2% to $11.9 million, CFO Paul Smith said. In plain words, a fifth of the growth was currency, not operations.

What did the company sell?

CEO Esteban Saldarriaga said LPA closed the sale of its PLS property in Peru, agreed to sell Bodegas Aurora in Costa Rica and, shortly after the quarter ended, announced the sale of Calle 80 Park in Colombia. The transactions were priced at a weighted average premium of nearly 10% to 12% over appraised value — depending on how foreign exchange is accounted for — and at a blended in-place capitalization rate of approximately 7.7%.

The $152 million all-cash sale of Calle 80 to Bancolombia is LPA's largest asset sale to date. Once it closes, the company expects to repay the equivalent of $55 million in Colombian peso debt. LPA retained land within the park suitable for more than 1 million square feet of additional gross leasable area and will earn a facilities management fee equal to 1.5% of rental revenue.

Where does the money go?

Mexico takes priority. Saldarriaga said LPA would focus on supply-constrained markets along the Highway 57 corridor rather than develop the retained Colombian land, for which it will seek third-party capital and consider contributing the land plus development, leasing and operating services — provided its investment hurdles are met.

The Central Park 57 project in Tepeji del Río is expected to offer more than 2.1 million square feet of gross leasable area and represent an investment of roughly $200 million. LPA plans to acquire stabilized facilities within the park gradually rather than develop it independently. During the question-and-answer session, Saldarriaga said the company targets deploying the capital throughout 2027, though it could not pinpoint when individual deals would close. He also acknowledged awareness of potential tariff exposure in export-oriented sectors; LPA is prioritizing properties serving domestic consumption.

What drove regional growth?

Revenue rose 45.1% in Peru and 45.7% in Colombia. Smith said the Peru increase primarily reflected rent from PepsiCo at a new Callao Park building, while Colombia benefited from a lease to PriceSmart at Calle 80 and contractual inflation adjustments. Excluding the currency benefit, Colombian revenue would have increased 16.2%. Costa Rica revenue grew 4.2% on higher rental rates. Same-property net operating income grew 11.9% to almost $10 million, and average rent per square foot rose 10.6% to $9.

Costs moved the other way. Operating expenses increased 54.6%, reflecting new building operations in Callao, the stronger peso and higher taxes at La Verbena Park after a municipal reassessment. Financing costs roughly doubled to $10.1 million, including a prepayment penalty of about $1.3 million on debt tied to the Peru property.

What about shareholders?

Smith said that despite closing the PLS sale, LPA will keep reporting the property's results and retain a related liability on its balance sheet, because a repurchase option forces the transaction to be treated as a financing for accounting purposes.

Saldarriaga said LPA's shares traded at less than one-third of its approximately $8.86 book value per share as of September 30, yet the company is not contemplating a buyback or dividend, arguing repurchases could shrink free float and trading liquidity. The board could revisit that as conditions change. Separately, LPA will hold an 11% equity stake — including capitalized development fees — with full asset control in a planned $85 million, 1.1 million-square-foot logistics park on Peru's Panamericana Sur Highway, developed alongside three institutional investors over three years.

A discounted share price, a financing-treated sale and a two-year deployment timeline all warrant scrutiny; the Mexico bet is not yet a return.