LPA 2026년 2분기 실적 발표 콜: 매출 26.1% 증가, 멕시코 사업 확장 순항

핵심 요약

• 매출은 페루(50.4%), 콜롬비아(29.3%), 코스타리카(5.6%)의 임대 수익 성장에 힘입어 전년 동기 대비 26.1% 증가했습니다.
• 순영업소득(NOI)은 1,220만 달러로 27% 증가했으며, 동일 자산 기준 NOI는 약 15% 증가한 960만 달러를 기록했습니다. 포트폴리오 점유율은 100%를 유지했습니다.
• 계약 갱신, 면적 확장, 재임대 및 긍정적인 시가 평가(mark-to-market) 스프레드에 힘입어 제곱피트당 평균 임대료는 10% 상승한 8.88달러를 기록했습니다.
• LPA는 리마 수르 파크(Lima Sur Park)를 약 7%의 현행 자본수익률(in-place cap rate) 및 독립 감정 장부가액보다 약 18% 높은 1억 4,500만 달러에 매각하기로 합의했습니다.
• 회사는 약 6,000만 달러의 부채 상환과 양도소득세 납부 후 약 6,500만 달러의 순매각 대금이 발생할 것으로 예상하고 있습니다. 경영진은 순매각 대금의 거의 전액을 멕시코에 재투자할 계획입니다.
• 파르케 로지스티코 카야오(Parque Logistico Callao)의 2개 개발 사업을 통해 44만 제곱피트의 총임대가능면적(GLA)이 추가될 예정입니다. 이들 자산은 92% 사전 임대되었으며, 약 13%의 개발 수익률로 연간 총 290만 달러의 NOI를 창출할 것으로 예상됩니다.

주요 재무 데이터

사업 및 운영 실적

페루는 지역별 성장에 가장 크게 기여한 국가였습니다. 임대 수익은 펩시코(PepsiCo)가 파르케 로지스티코 카야오의 신규 LEED 골드 인증 시설에 입주하고, 공실의 신속한 재임대 및 더 높은 시장 임대료 조건의 신규 임차인 추가에 힘입어 50.4% 증가했습니다.

콜롬비아 매출은 콜롬비아 페소화 가치 상승에 따른 환차익 효과를 포함하여 29.3% 증가했습니다. 이러한 환율 영향을 제외하면 매출은 약 11% 증가했다고 경영진은 밝혔습니다. LPA 포트폴리오의 약 20%는 콜롬비아 페소화로 표시되어 있으며, 현재 환헤지가 되어있지 않습니다.

코스타리카 매출은 재임대, 임차인 면적 확장 및 계약 갱신에 따른 시가 평가 기준 임대료 인상에 힘입어 5.6% 증가했습니다. 2025년 하반기에 인수한 멕시코 시설의 임대료 수입 역시 연결 매출 성장에 기여했습니다.

파르케 로지스티코 카야오의 200호동은 완공을 앞두고 있으며, 3분기부터 연간 130만 달러의 NOI를 창출할 것으로 예상됩니다. 400호동은 4분기 후반부터 연간 160만 달러의 NOI를 창출할 것으로 예상됩니다. 한편 LPA는 2026년 중에 해당 물류단지 내 다섯 번째 건물의 사전 임대도 추진할 계획입니다.

리마 수르 거래는 자본 경량화(capital-light) 모델로의 전환을 의미합니다. LPA는 피브라 프라임(FIBRA Prime)을 위해 해당 자산의 관리 및 운영을 계속 맡아 수수료 수익을 창출하며, 거래 종결 4년 후 해당 물류단지를 재매수할 수 있는 옵션을 유지합니다.

경영진 가이던스

경영진은 리마 수르 매각 대금의 대부분이 2026년 9월에 유입될 것으로 예상하고 있으나, 관례적인 당국의 승인 절차가 남아 있어 시점이 10월로 연기될 가능성도 있습니다.

LPA는 센트럴 파크 57(Central Park 57)의 클래스 A 시설 매입을 시작으로, 이 자금을 멕시코 인수 파이프라인에 활용할 계획입니다. 2억 달러 규모의 프로젝트 협약은 향후 12~18개월 동안의 인수를 대상으로 하며, 나머지 자금 조달은 현지 부채 및 지분 파트너를 통해 이루어질 예정입니다.

센트럴 파크 57은 210만 제곱피트 규모로, 현재 LPA 총임대가능면적(GLA)의 약 34%에 해당합니다. 경영진은 현재의 투자 기회를 고려할 때 2~3년 내에 멕시코가 포트폴리오의 50% 이상을 차지할 것으로 예상하고 있습니다. 회사는 임차인의 신용도와 임대 조건에 따라 8%~9%의 투자 캡레이트(cap rate)를 목표로 하고 있습니다.

경영진은 하반기에 임대 계약 갱신 및 재임대 일정 수량이 적기 때문에 상반기와 같은 10% 수준의 임대료 인상이 다시 일어나지는 않을 것으로 예상하고 있습니다. 임대료 수준은 전반적으로 비슷하게 유지될 것으로 보이나, 기존 임대 계약에 내재된 임대료 인상분과 신규 건물 완공이 자체적인 매출 및 NOI 성장을 뒷받침할 전망입니다.

플랫폼이 확장됨에 따라 일반관리비(G&A)는 비교적 안정적으로 유지될 것으로 예상되며, 임대 수익과 자산 규모가 계속 확대될 경우 추가적인 영업 레버리지 효과가 나타날 수 있습니다.

리스크 및 주요 관전 포인트

• 미국·멕시코·캐나다 협정(USMCA) 틀을 둘러싼 불확실성이 지속되면서 티후아나, 몬테레이 등 멕시코 북부 시장의 산업용 부동산 수요가 약화되고 불균일해지는 원인이 되고 있습니다.
• 멕시코시티와 과달라하라의 견조한 물류 수요에도 불구하고, 2026년 멕시코의 전반적인 산업용 부동산 수요는 전년 대비 감소했습니다.
• 포트폴리오의 약 20%가 환헤지 없이 콜롬비아 페소화로 표시되어 있어, 분기별 실적 및 자산 가치 평가 시 환산에 따른 변동성이 발생합니다.
• 콜롬비아의 높은 금리는 임차인 문의 증가와 최근의 공급 부족에도 불구하고 신규 개발 사업의 수익성을 제약하고 있습니다.
• 리마 수르 매각 대금 유입 시점은 당국의 승인에 달려 있으며, 경영진은 대금의 대부분이 유입되는 시기가 9월에서 10월로 연기될 수 있음을 인정했습니다.
• 경영진은 자금 집행을 검토할 때 인플레이션과 금리 동향을 지속적으로 모니터링하고 있습니다.

애널리스트 Q&A 주요 내용

경영진은 리마 수르의 감정 장부가액 대비 18%의 프리미엄은 클래스 A 자산의 공급 부족, 해당 자산의 우수한 임차인 구성, 그리고 포트폴리오 프리미엄 가능성을 반영한 것이라고 설명했습니다. 다만, 향후 모든 자산 매각에서 동일한 수준의 프리미엄을 기대해서는 안 된다고 당부했습니다.

4년 후 재매수 옵션은 LPA에 자금 동원력과 부동산 주기를 재평가할 수 있는 유연성을 제공합니다. 경영진은 향후 재매수 시 LPA의 재무상태표에만 전적으로 의존하기보다는 현지 자본을 활용할 수 있다고 밝혔습니다.

LPA가 멕시코 확장을 가속화함에 따라 성숙 자산의 추가 매각 가능성은 열려 있습니다. 회사는 일부 파트너십에서 운영권을 유지하는 한편, 제3자 지분 자본을 활용해 규모를 확대하고 일반관리비 부담을 줄일 계획입니다.

또한 경영진은 멕시코 대형 산업용 부동산 기업들 간의 재편으로 인해 약 7,000만 달러에서 1억 5,000만 달러 규모의 중형 포트폴리오 인수 기회가 생길 것으로 예상하고 있습니다.

콜롬비아에서 LPA는 인프라와 인허가가 완료되어 즉시 착공 가능한(pad-ready) 부지를 보유하고 있습니다. 임차인 문의는 증가했으나, 경영진은 임대료와 금융 조건(특히 금리)이 신규 개발 사업의 수익성을 뒷받침할 때까지 기다리고 있습니다.

실적 발표 전화회의 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

[Audio Gap]

Now I would like to turn the call over to Mr. Camilo Ulloa, Head of Investor Relations. Please go ahead.

Camilo Ulloa

Welcome to LPA's second quarter 2026 earnings conference call. My name is Camilo Ulloa, with LPA's Investor Relations team. Joining me on today's call are Esteban Gaviria, our Chief Executive Officer; and Paul Smith, Chief Financial Officer.

Before we proceed with a review of LPA's financial and operating results, please note that the information presented during this call is intended for informational purposes only and does not constitute an offer to buy or sell any securities. Forward-looking statements made during this call are subject to a number of risks and uncertainties, which are discussed in LPA's filings with the SEC. Our actual results, performance, and prospective opportunities may differ materially from those expressed or implied in these statements. We undertake no obligation to update or revise any forward-looking statements after this call. We have prepared supplemental materials that we may reference during the call. We encourage you to visit our website, ir.lpamericas.com to download these materials. Please also note that all comparisons that we will discuss during today's call are year-over-year, unless we note otherwise.

Esteban will begin today's review. Esteban, please go ahead.

Esteban Gaviria

Good morning, and welcome, everyone. Thank you for joining us. This was a breakthrough quarter for LPA in terms of both our financial results and the strategic steps we took to crystallize value and position our platform to build an exciting growth pipeline for 2027 and beyond.

I am pleased to report that we expanded our strong momentum in the second quarter, while once again outperforming our peers on occupancy, which held at 100% across our regional logistics platform. Revenues materially accelerated again, increasing 26.1% year-over-year, led by Peru and Colombia, where rental revenues increased 50.4% and 29.3%, respectively. In Costa Rica, revenue grew 5.6%, reflecting a fully stabilized operation within LPA's portfolio. Our additional progress was driven by strong leasing activity and occupancy at our newest facilities, together with rising market rents that we captured through renewals, expansions, and re-leasing.

NOI growth was equally strong, increasing 27% with same-property NOI up 14.5%. The sustained growth in our profitability was -- thanks to the exceptional customer service we provide and the pricing power that our advantageous market position and strong brand afford us -- both reflected in still rising average rent per square foot, which increased 10%. Also driving profitability was our operating leverage, which is gradually improving as we scale our platform across the 4 countries we operate in.

In addition to our strong financial and operating results, the second quarter marked a major strategic milestone with the divestment of our Lima Sur Park in Peru for $145 million, representing an in-place cap rate of approximately 7%. In line with our strategy and the repositioning of our business, we will allocate almost all of this transaction's net proceeds into the expansion of LPA's footprint in Mexico. That's roughly $65 million after repaying approximately $60 million of debt and paying capital gains taxes.

Selectively taking profits from stabilized seasoned assets like Lima Sur and allocating the resulting capital into properties that generate high returns is a distinct advantage of being a multi-national vertically integrated real estate company. It enables LPA to capture the strategic benefits of a balanced and diversified portfolio, while also opportunistically capitalizing on different phases of each country's real estate cycle rather than being beholden to a single set of economic events in one geography.

It is also a new improving lever of value creation within our core business. Put another way, the monetization of our Lima Sur Park represents a successful round trip across the entire real estate value chain from greenfield development to leasing stabilization of a meaningful part of our portfolio. It is the first of several potential transactions and partnerships to come in the years ahead, followed by reinvestment to create a virtuous cycle of value creation for our fellow shareholders.

This will also make LPA more capital-light in our foundational markets as we realign our balance sheet more towards Mexico while keeping the vast majority of our assets U.S. dollar-denominated and transitioning to a more capital-efficient business model.

It is important to note that we sold Lima Sur at roughly 18% above its independently appraised carrying value in our books. That premium and the cap rate behind it are hard and clear evidence of our ability to execute on what we have set out to do with discipline and resolve, keenly aware of the verifiable underlying value of our assets and the operating platform that has just begun to bear fruit. We trust this evidence will not be lost on the market and that it sheds more light on the considerable dislocation between our current public share price and the hard asset value of our company on a book value per share basis.

For reference, at the end of the second quarter, that intrinsic value net of capital gains tax stood at $8.62 per share, an increase of 16% year-over-year and 8.2% sequentially. Moreover, in our view, this figure excludes the value of the operating platform itself, which we think should sit on top of any fair appraisal of the hard assets underpinning LPA's business.

The Lima Sur transaction also reflects the attractiveness of our facilities to institutional third parties such as FIBRA Prime, the preeminent REIT in this geography. Furthermore, our agreement with FIBRA Prime gives LPA the option to repurchase the Park 4 years after closing the current sale. Optionality like this is yet another way that we are creating long-term shareholder value.

The monetization of Lima Sur has also served as a springboard for the strategic alliance that we have formed with Prime, which owns a diversified and stabilized portfolio of commercial real estate in Peru. Our alliance contemplates similar transactions that strategically combine LPA's strong development and operational capabilities with Prime's local and institutional capital base to further exploit Lima's underpenetrated logistics property market.

As a reminder, through the alliance, LPA will manage and operate Lima Sur on behalf of Prime, generating ongoing fee income in the process. As the Park's operator, we retain control and will continue maintaining tenant relationships and delivering service excellence.

As we have emphasized in prior calls, shifting our portfolio center of mass towards Mexico is a key component of our strategy, enabling us to tap this substantially larger and dynamic industrial real estate market to further diversify and rebalance our property portfolio and tenant base and to strengthen LPA's unique cross-border offering to global and regional companies. More specifically, our goal in Mexico is to earn higher risk-adjusted returns and further capitalize on our platform's underlying value.

We will redeploy capital from the divestment of Lima Sur into our acquisition pipeline, starting with a programmatic purchase agreement for Central Park 57 Class A facilities, which are located in a key logistics corridor of the Greater Mexico City area.

As we have highlighted in the past, the properties that we are set to acquire from Portland Capital over the next 12 to 18 months under that $200 million agreement will comprise stabilized assets, effectively eliminating the risks associated with developing and leasing up facilities. The remainder of the financing will come from local debt and equity partners. Several prospective partners have already expressed interest. And we still have equity allocations available for additional third parties who want to participate in this park.

By way of an update, we recently appointed a leasing manager to further accelerate the stabilization of the park's facilities. He previously held senior roles in real estate advisory and brokerage, brings over 30 years of experience in the Mexican market and has deep relationships with blue-chip companies across the country.

To give context to the Central Park 57 purchase program, the 2.1 million square feet represents approximately 34% of our current GLA. And within 2 to 3 years, we anticipate Mexico will be home to more than 50% of LPA's property portfolio based on our current opportunity set, which is about $1 billion of facilities located in key logistics corridors surrounding major metropolitan areas and those along Federal Highway 57D. There, we intend to deploy capital at cap rates of 8% to 9%, depending on the quality of tenants and lease agreements in place. Beyond redeploying the capital freed by asset divestitures, we will fund our broader expansion with a similar mix of conventional bank debt and local equity capital as we have done successfully in the past. Where we source equity capital from insurers and family offices, LPA would, in some instances, hold a minority but significant stake in an asset's equity while also retaining control provisions for the financing, leasing, and day-to-day operations of the asset, given our core expertise. We have steadily built and institutionalized this capability, cultivating local alliances while earning market and incentive aligned fees for value-added services along the way.

A few words about the current macro picture. Although the USMCA trade agreement remains unresolved, our conviction on Mexico is steadfast. As companies increasingly reconfigure their global supply chains to be strategically closer to North America in response to the trade frictions between the U.S. and China, we expect Mexico to be a net beneficiary in spite of the recently announced annual agreement review framework, and that its importance within the global production and distribution ecosystem will become even greater, further strengthening the country's position as a highly desirable nearshoring destination.

Interestingly, the recent increase in the U.S. trade deficit with Mexico is a consequence of companies shifting more of their supply chains to Mexico, in response of the U.S. tariffs placed on Chinese imports. More importantly, though, strong prevailing e-commerce trends and resilient domestic consumption remain significant structural drivers of long-term demand for modern logistics facilities in key submarkets of Mexico, where we will focus additional expansion investments. A newer and increasingly powerful tailwind is the build-out of artificial intelligence and data center infrastructure across the United States.

While attention is often focused on the data centers themselves, the more relevant dynamic for our platform is the substantial logistics demand this activity generates across the supply chain, with industry estimates suggesting that each $1 trillion of data center investment can drive 30 million to 40 million square feet of incremental logistics space. This is an additive multi-year source of demand that complements the e-commerce and domestic consumption trends, as described, and it reinforces the appeal of the logistics corridors we're targeting for investment.

Recent market data is also encouraging. New construction in Mexico's industrial real estate sector is close to 2023 peak. And this follows the 47 million square feet of space that was absorbed last year, although demand levels are lower thus far in 2026.

Demand for facilities remains strongest in Mexico City and Guadalajara, while it varies across northern industrial markets like Tijuana and Monterrey due to the uncertainty surrounding USMCA. In Guadalajara, in particular, this strength is increasingly reinforced by demand tied to electronics and the data center supply chain as manufacturers serving hyperscale customers expand their footprint in the region.

Crucially, demand for logistics space, our sweet spot, is higher than manufacturing space for the first time in Mexico in many years. This is not surprising as e-commerce continues to grow rapidly and has only reached around 20% of retail sales in Mexico, while the need for just-in-time redundancy among some online retailers also fuels demand for modern warehouses like ours.

The trend also reflects a long-term positive evolution in domestic consumption as the country's middle class continues expanding and as household incomes continue rising. In other words, demand for distribution infrastructure to serve an expanding consumer-driven economy will be sustained for the foreseeable future.

As we have communicated in the past, the consolidation underway among Mexico's large industrial real estate companies is expected to create additional opportunities for us to acquire midsized property portfolios in the range of $70 million to $150 million, as acquirers eventually prune their newly acquired portfolios.

For LPA, these properties would be located in key submarkets that are also attractive to the global and regional companies that we serve and target, but not property sizes or areas that are typically the focus of our larger competitors. Select high-quality assets such as those in Central Park 57 also present many opportunities for us to expand in Mexico.

Avoiding highly competitive auction processes, we continue prioritizing off-market and proprietary acquisitions, leveraging our local team and relationships and if needed, using partnership structures like the one we have with Fortum. We favor properties that are home to high-quality tenants focused on logistics or light manufacturing. That is domestically oriented while generally pushing out investments that are vulnerable to the near-term volatility of rapidly changing trade policy, such as those located in Mexico's northern markets.

Although we are evaluating different alliances to selectively monetize certain mature assets with the aim of geographically tilting LPA's portfolio towards Mexico, we remain fully committed to Costa Rica, Colombia, and Peru, where we are a market leader. This is essential to providing seamless multi-market warehouse solutions to current and future customers as we are the only public industrial real estate company that operates across these countries' borders. Accordingly, our platform will remain invested in Peru, anchored by Parque Logistico Callao, which is a cornerstone of our ongoing operations and future growth in the country.

To be clear, we expect our foundational markets to remain consistent sources of value, particularly because the structural supply of modern logistics space is still quite low in them. Moreover, we're encouraged by the recent presidential elections in Peru and Colombia, where new business-friendly administrations are now governing these countries. The change in business sentiment has been immediate and palpable with pent-up demand and general activity rushing in.

Further, domestic consumption trends remain solid. The penetration levels of e-commerce remain effectively low despite the sector's rapid rollout. And our foundational markets are also expected to benefit like Mexico from the regionalization of supply chains that has been underway. For all these reasons, we are firmly committed to Peru, Colombia, and Costa Rica, which are integral to LPA's seamless cross-border offering.

Turning over to the development front, which is focused on Peru currently. We remain on budget and on schedule with the 2 facilities that will add a total of 440,000 square feet of GLA at Parque Logistico Callao, which is located in one of Peru's most supply-constrained logistics submarkets. Together, they are now 92% pre-leased, reflecting continued strong levels of demand for institutional quality facilities. Building 200 is nearing completion and will contribute $1.3 million of annual NOI beginning in the third quarter, while Building 400 will contribute $1.6 million beginning later in the fourth quarter.

It is important to note that in addition to the incremental growth that these facilities will generate, their NOI levels equate to development yields of roughly 13%. Further ahead is the remaining shovel-ready pad where we will develop a fifth building in that same park and which we intend to pre-lease this year.

Adding to the new building deliveries, we have a sustained tailwind of mark-to-market rental updates that are embedded across our existing portfolio, which will help drive additional organic revenue and NOI growth. Contributing to this will be the fee income that we receive from managing Lima Sur Park that we sold to FIBRA Prime. This is a new capital-light revenue stream going forward with more to come as we divest other mature assets in the future.

Beyond the new fee income, we expect any future asset sales to make the big difference between LPA's book value and share price even clearer to investors, as I noted earlier. In the meantime, to help close the current valuation gap, we have increased our investor outreach, stepped up our participation at industry and investor conferences and enhanced our digital presence with the aim of bringing LPA to the attention of a wider audience of market participants that could help drive additional demand and liquidity for our shares. That effort is starting to pay off as LPA's improved trading activity indicates.

One final comment before I turn the call over to Paul. Three firms have recently initiated equity coverage on LPA. BTG Pactual, one of the region's most relevant investment banks, initiated coverage, which broadens our reach to institutional investors across the region and in key U.S. and European capital markets. Water Tower, an equity research and investor engagement firm, also initiated equity research coverage, along with Sidoti, a broker-dealer, which recently launched sponsored research as well.

You can find the reports on each firm's website. We view this as an important step in explaining our equity story and our business as well as in raising LPA's market visibility. We hope the new coverage helps improve the market's understanding of our platform and its relative value.

Paul, please go ahead.

James Smith Marquez

Thank you, Esteban, and good morning, everyone. I'll start by providing some detail about the accelerated growth of our platform's Peruvian and Colombian operations during the second quarter. PepsiCo's occupancy of our new LEED Gold facility in Parque Logistico Callao near the end of last year primarily drove the 50.4% increase in Peru's rental revenue. Other drivers were the rapid leasing up of vacated space in the same park and the addition of a new tenant there. In both cases, significantly higher market rates drove positive lease spreads.

In Colombia, the 29.3% increase in revenue was primarily due to higher rent for Coyol-Alajuela space that was released in late 2025 to U.S. retailer PriceSmart, which is one of our multi-market tenants. That park also benefited from contractual inflation adjustments. It's important to note the appreciation of the Colombian peso during the quarter, which resulted in a positive translation effect in accounting terms. When excluding it, the revenues of our Colombian operations increased approximately 11%. As a reminder, LPA's leases in Colombia are in local currency as opposed to the other markets where our leases are largely in U.S. dollars.

In Costa Rica, higher mark-to-market rental rates associated with re-leasing, tenant expansion and lease renewal were behind the 5.6% increase in our revenue in this market. The quarter's higher rental rates across our regional platform resulted in a 10% increase in average rent per square foot, which was $8.88 in the period. Full occupancy and the large lease spreads that we continue to secure reflect sustained demand for modern Class A facilities that still remain scarce in key logistics corridors of our foundational markets.

Lastly, on revenue. Rent from the facilities that we acquired in Mexico in the later half of last year also contributed to our strong top line growth in the second quarter.

Turning to costs. Our operating expenses increased 27% to $2.6 million in the quarter. This was primarily due to commencing operations at newly leased facilities in Peru, resulting in higher ground lease payments and direct expenses, and also to maintenance activities in the country. Higher real estate taxes following a tax reassessment of the value of our La Verbena Park in Costa Rica also contributed to the increase in the quarter's operating expenses. Another factor was the reversal of an arbitration cost that benefited last year's quarter.

The 27% increase in our net operating income, which was $12.2 million in the second quarter, was driven by embedded rental growth associated with the positive mark-to-market leasing spreads that I referenced earlier and by operating leverage related to the scaling of LPA's regional platform. When excluding the positive effect of the accounting translation related to the appreciation of the Colombian peso, NOI would have increased 23% to $11.8 million. Regarding same-property NOI, it increased 15% to $9.6 million in the quarter.

Our general and administrative expenses decreased 8.7% to $4.2 million due to reduced reporting and legal expenses. As we continue scaling our platform, particularly in Mexico and expand rental revenues in the process, we anticipate generating significant operating leverage relative to G&A, which we expect to remain relatively flat going forward.

On the immediate horizon is the approximately 440,000 square feet development of GLA that will be completed this year and which is already largely pre-leased. Operating GLA at the end of the second quarter was 5.8 million square feet, a 9.7% increase versus last year's quarter, while lease GLA increased 10.8% to 6.2 million square feet.

For the quarter, we reported investment property gain of $20 million versus a valuation loss of $257,400 in the same period last year. The quarter's gain was primarily due to a $16.3 million gain related to the sale of our Lima Sur Park. In addition to this was a $3.2 million valuation gain that accounted for additional development incurred at our park in Coyol. Our financing costs increased 1.8% to $4.8 million in the second quarter, mainly reflecting a higher debt balance and interest rates related to our development pipeline in Peru and Colombia.

I'd like to highlight that the bulk of LPA's debt is at the property level. It does not mature significantly until 2031 and thereafter. And we service it through contracted and largely dollar-denominated revenues from our diverse base of blue-chip tenants.

That concludes our review of the second quarter. Operator, please open the call for questions.

Operator

[Operator Instructions] Your first question comes from the line of Eric Goldstein from Water Tower Research.

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Eric Goldstein

A lot of great information. I just had a couple of questions. So the average rental per square foot rose about 10% on a constant currency in the second quarter. I guess how should we think about that for the back half of the year? Do you expect a similar type of increase in the third and fourth quarters compared with the year ago?

Esteban Gaviria

Eric, Esteban here. Thank you for joining our call. It's a wonderful question. Yes, the rental rate on a constant currency basis did increase 10%. For the second half of the year, we don't expect that as much trying to eliminate the FX component, because we don't have that many leases or re-leases going on in the back half of the year. So we should expect that to pretty much stay on similar levels.

Eric Goldstein

Okay. And I just had a couple of other questions. Just timing -- so from the asset sale, you're going to take in $65 million net of debt repayment and the taxes that you have to pay. Do you -- can you just talk about the timing of receiving that cash? Do you expect that to come in, in the second half of the year?

Esteban Gaviria

Great. So let me point out, yes, we're expecting for that transaction to close over the coming months. It's already going through the regulatory approvals that are customary in this sort of transaction. We expect to get the first payment in, let's say, the third quarter. I would expect that to be in September before the end of the third quarter. And from that, we will have that capital available to then redeploy towards Mexico.

We have some components that are deferred and that we are expecting, by the way, to really bring forward via financial measures. So effectively, we'll have the bulk of that capital, again, in September, maybe it could slip to October, but that's the timing we're foreseeing. So we will be able to have that cash in hand.

Eric Goldstein

Okay. And then a couple of other things. You mentioned there's consolidation among real estate companies in Mexico, which I guess is -- you said is creating opportunity for you because I guess as those -- as companies consolidate, I guess, they're looking to maybe sell some of their smaller properties. Is that the idea?

Esteban Gaviria

Yes, that is correct. Yes. Over the last 12 months, 18 months, we've seen the Prologis and Terrafina consolidation, and then FIBRA Monterrey with FIBRA Macquarie. And we do expect those FIBRAs to trim their portfolio. That is welcome. It's a healthy part of the dynamic as they reassess their fully integrated holdings. And we expect some of those assets to come into play. And we do expect LPA to be an interested willing and able buyer in those situations.

Eric Goldstein

Okay. And just last question for you. So I know -- I mean, obviously, the focus is on Mexico in terms of the growth going forward. But you mentioned more business-friendly administrations now in Peru and Colombia. So I guess, does that make you rethink kind of growth and where you want to deploy capital going forward? Do Peru and Colombia become more attractive than maybe what they had been before? Or is it still primarily focused on Mexico?

Esteban Gaviria

That's a great nuance. It's still primarily focused in Mexico just because of the depth, the scale of the market, the opportunities we're seeing, the possibilities in currency denomination, which, for example, is something that we have to account for in a geography like Colombia, not in Peru. In Peru, we operate in dollars. But having business-friendly administration does improve sentiment, does improve business activity. We all know how that works. And we're starting to see that effect.

Peru has wonderful tailwinds right now. Their economy is on very steady footing. And Colombia has now -- and we'll talk about it later. Despite their recent events, the natural disaster that occurred on Monday, is really on much better stance and is there is pent-up demand because there was several years in which supply was heavily constrained. So we do see activity. But again, we do want to focus on raising local domestic equity capital that can come alongside us and therefore, address that demand, but keeping the majority of our balance sheet tilted towards Mexico.

Operator

[Operator Instructions] Your next question comes from the line of Brendan McCarthy from Sidoti.

Brendan Michael McCarthy

I wanted to circle back to the Lima Sur asset sale. I know you mentioned it sold at about 18% above the recently appraised value. Can you provide some insight into some of the dynamics that supported that premium? Was that higher than expectations? And what really drove that?

Esteban Gaviria

Brendan, thank you for joining the call. Esteban here. Look, I would say that sale was certainly within the realm of what we thought was possible. Look, there's very, very limited Class A supply in the market. Some of you can also account for portfolio premium, for example. So when we saw that negotiation take place, we led that directly because it is very relevant. It is very material. And it is transformational for the country.

So I think it's just the first step. We always have the expectation to exceed how we're carrying our appraised value. But then again, we have to temper ourselves. So I wouldn't say it's something to be expected every time. But it does speak a lot to a couple of things.

One, the assets that LPA has built. Two, the tenancy and the mix, the quality, the dynamic that we have created in our own parks and that might warrant a portfolio premium. And there are very few of those in particularly in Peru. And under -- in the backdrop of a rapidly growing economy, attending consumer demand, we see these types of situations to opportunistically arrive and we are a rational investor and that's what drove that.

Brendan Michael McCarthy

Understood. I appreciate the insight there. And you mentioned there's a 4-year repurchase option in place for that asset. Under what circumstances would you exercise that option and buy back the asset in a couple of years?

Esteban Gaviria

Yes. We retain that option just again, because we think optionality and being able to aggregate a portfolio -- in our view, scale is something that we want to achieve fast to -- especially to dilute G&A cost, which is important. So having that optionality will be important 4 years out, gives us enough time to assess the conditions on that time. And we see depending on capital availability and the resetting of real estate cycles in each market, which was one of the benefits of LPA, having that multi-geographic approach, will inform us in that time.

So right now, we don't want to get ahead of ourselves, but we think the optionality has deep value. And in 4 years, it could be well into the money. And it might make sense to take the asset back in. But we'll see. We'll see at that moment. We could also align local capital. And once again, it doesn't have to be full balance sheet equity for LPA, but rather some form of capital that we can manage. And with that option, we can take the asset back into the fold without sacrificing growth in other parts of our platform.

Brendan Michael McCarthy

That makes sense. And I know you mentioned you're set to receive the proceeds in a couple of months here. But at this point, do you anticipate the need to monetize further assets to kind of fund the balance sheet transition towards Mexico? Or is that more in the long-term future of possibilities?

Esteban Gaviria

It's always a possibility. We have signaled that, yes. We want to grow in Mexico and grow in Mexico fast. And that might require just because of the scale that Mexico has, that might require a pruning of our own portfolio. So I cannot get ahead of myself, but yes, we are listening. We're listening and we have fascinating properties, tenants and in Costa Rica, in Colombia. So for that reason, we think that more of those could come ahead.

Brendan Michael McCarthy

Understood. And last question for me. I know you mentioned the early read-through from the recent Colombian elections has been positive from a sentiment perspective. But as it relates to your -- I think there's some land assets that you own in Colombia. Has the development environment or the financing environment improved materially to maybe lead you to move forward with those projects? Or is that a little too early to tell?

Esteban Gaviria

So from a tenant demand perspective, we're fielding plenty of requests. I think the equation we're trying to balance out now. We have -- the land is, by the way, adjacent and it is within our parks. So it's not raw land. It's pad-ready, frankly. So it has the infrastructure, the permits, everything is ready to go.

I think it's an equation of tenants digesting the new market rent. In this particular market, we have plenty of embedded rental growth, meaning the in-place rent is lagging what new construction will command. And that conversation is something we're having with tenants and interest rates are relatively high in Colombia right now.

So it is a dynamic in which we want to proceed with care. But the encouraging factor is tenants are ringing up the phones. They want space. New development did not take place over the last 2, 3 years and that's driving up rents. So we do think that an easing of interest rates will be helpful to really get us kick started. But by the way, that might come in early. The thing is we're not really jumping into the water just yet.

Operator

Ladies and gentlemen, at this time, there are no further questions from the phone lines. We will now proceed with questions from the webcast platform. Your first question comes from the line of Gordon Lee.

Gordon Lee reads, thank you for the call and congratulations on the strong results. Are you fully exposed in your operating metrics to the recent appreciation of COP versus USD? Or do you have any hedges in place that could reduce the translation gains but produce a financial gain?

Also, I assume the USD 600,000 FX loss is related to this and is immediate. But how long does it typically take for currency variations to be reflected in property appraisals when reported in USD?

Esteban Gaviria

Thank you, Gordon. We appreciate your question. Effectively, just to be addressing your point, we don't have any hedges in place. So we don't address that currency exposure directly, rather by just design. 20% of the portfolio roughly is in Colombian pesos. So that is left unhedged.

And to your second point of the question, before I turn it over to Paul, regarding the effect, the FX considerations in your question, currency variations is reflected on a quarter-by-quarter basis, because our property are appraised in local currency every quarter. And therefore, currency movements do translate on a quarter-by-quarter basis.

So just to recap before I turn it over to Paul, we don't have any hedges, 20% is denominated in pesos. And lastly, FX flows into our P&L on a quarter-by-quarter basis.

Paul, do you want to talk about the FX?

James Smith Marquez

Yes, sure. Thank you, Gordon, for the question. So Esteban already mentioned, we have 2 effects here. One is from unrealized, which is basically the appreciation of the asset that gets recognized every quarter with the revaluation of that asset. And then to your specific question on the $600,000 loss, that is derived from the opposite effect that's coming from the debt.

As we also have debt denominated in U.S. dollar, that creates an effect on the opposite side, particularly in Peru and Costa Rica, where those vehicles are financed through U.S.-denominated debt. And as those currencies depreciate as well, generate that recognized loss on our results. And we have similar effects for both the Costa Rican Colon and the Peso in Peru.

Operator

Your next question comes from the line of Hector Cruz. Hector asks, what are you doing in order to rationalize the G&A expenses? These are very high compared to public U.S. REITs.

Esteban Gaviria

Thank you, Hector, for joining the call. Yes, we want to address G&A expenses. G&A expenses decreased this quarter 8.7%. It's something that we have front and center. It is part of setting our platform to be ready for growth. So that should be expected. And it's also a function of scale. That's why we are on this constant push to particularly bring in local capital, meaning other equity that can work alongside our balance sheet capital and therefore, augment the breadth of operations that we have and progressively dilute that G&A expense compared to our asset base. So we're trying to address that head on.

Operator

At this time, there are no further questions. I will now turn the call over to Esteban for closing remarks.

Esteban Gaviria

Thank you. Before I recap the quarter, I do want to take a moment to acknowledge the earthquake that struck Western Colombia on August 10. Our hearts are with everyone affected. And we extend our deepest condolences to the families who lost loved ones and to the communities who are now facing a steep recovery ahead.

I am grateful to report that all LPA and tenant personnel at our Parque Logistico Callao, Coyol-Alajuela, and Bogota are safe and accounted for, and that the facility has sustained no damage and is fully operational as we shared yesterday. Colombia has been an important part of LPA's history, growth, its future. We stand with the country during this difficult time. And in the weeks and months ahead, we will explore how LPA can contribute to the recovery.

We covered a lot of ground today in this call. So I'd like to provide a brief summary of the most important points that we wanted to convey today. First, our differentiated regional logistics platform remained 100% occupied and continues delivering consistently strong revenue and NOI acceleration, both up nearly 30% year-over-year. We expect to hold this organic momentum through the second half of the year as more embedded rental lease spreads kick in and as our newly developed facilities become operational.

Second, we completed a landmark transaction with the divestment of our Lima Sur Park, roughly 18% as discussed today, above its appraised carrying value with the capital to be reinvested in high-return assets in targeted submarkets of Mexico, which is, again, central to a regional business model and ambitious growth plans. The harvesting of this capital in this way is a new lever of long term value creation that will play a greater role with time.

Moreover, the cash consideration that we received for the park reflects the high quality that institutional investors see in LPA's assets, its customer base and ongoing partnership. This validates the underlying value of our vertically integrated platform. Third, although structural demand for logistics space remains strong in Mexico, and we see many opportunities to acquire assets there, we remain highly selective with a focus on facilities that meet the exacting standards of the blue-chip companies we serve and that are located in key logistics corridors that form the backbone of the country's rapidly growing e-commerce sector and promising AI-related supply chain dynamics.

With the discipline of an internally managed company and leveraging our many years of experience, we expect to deploy capital at normalized cap rates of 8% to 9%. At the same time, we continue to monitor the global macroeconomic backdrop, particularly inflation measures and the path of interest rates.

Finally, as we further scale LPA's multi-market platform to capture more value-accretive growth, we're further strengthening our competitive moat while benefiting from operating leverage. Many of our growth levers are working in concert, full occupancy, embedded rental rate growth, capital reallocation into high-returning opportunities and new streams of fee income. That is the foundation of our confidence in the months and years ahead. And as we enter the second half of the year with a stronger balance sheet and the deepest growth pipeline in LPA's history, we intend to convert it into lasting value for our fellow shareholders.

Thank you again for joining our call and for the continued confidence in LPA. We look forward to reporting on our progress next quarter. Have a good day, everyone.

Operator

This concludes today's call. Thank you all for attending. You may now disconnect.