PLYM - Earnings call transcript Q3 2020 | Plymouth Industrial REIT, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. Welcome to the Plymouth Industrial REIT Third Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. Please note that this event is being recorded. to Relations. conference like Sullivan to now Investor of would turn over the Tripp I ahead. go Please

Tripp Sullivan

Thank you, results morning. call quarter Kate. Good XXXX. to REIT Plymouth of review conference Industrial the company’s for third Welcome the to the

Counsel. President Witherell, Anne Financial On Executive and Connolly, Officer; Chief Officer; and Officer; be Vice Harit, Executive Vice and Chief Dan President Jim Chairman Wright, the of White, President will and call Investment today General Asset Jeff Management; Pen and Executive Chief

XXXX. provided were be morning on release, Investor press website, A shortly this results the which call conclusion can after XX-Q Relations The our press of in Our release. our access the earnings XX, the numbers with replay the the call Form released in SEC. to replay of earnings supplemental our be are the along filed and will available of found with section November this through

replay For remind the those XXXX, call, the subsequent November not today, as and who that to made X, will we be you listen herein call. of updated are to of this this remarks

disclosed disclosures the company’s the our of During forward-looking subject expectations. made call various laws, to of the statements including represent are certain comments to conference of with to by and may statements to statements All other from and the make of deemed actual including filings potential statements SEC. other our Plymouth’s risk investments, this performance and portfolio, company, urged call, the carefully Investors can current and results and within information our the uncertainties risks meaning the date in activities. differ acquisitions by prescribed we materially future are review forward-looking related that cause the judgment dividends financing this be and securities pipeline as future

comparable GAAP including reconciliations ahead. We to call of measures the over Definitions I’ll Please with the FFO, most limited our Jeff in measures to these and and non-GAAP also included non-GAAP discuss to, Witherell. not filings certain adjusted the will SEC. but turn measures, AFFO EBITDAre. now are go

Jeff Witherell

Tripp. Thank today. everyone. for us here you, joining Good morning, Thanks

quarter the our on primarily that quarter we second reflect here during both team third the third completed our quarter, collections work. overnight metaphor, proceed where need [ph]. sport, we and a can. have common out we active offense positive are along coming leasing Rental While a the I’m Continuing Plymouth defensive as offering, the deploying on playing are in and was such, Also results of feel we equity continually that saying another team was continued which we activity trajectory sports we our second nature, the with actively quarter. on often had one we best and to

area our to in strong of effort. have each put building hard foundation make results We are members at I a the our thank worked in to and past one continue to team happen. over who of direct several that every want my result months the this business work of a

us leases quarter, up of We are job of all With how far the as three in outstanding close that volumes needs. seeing all believe commenced to months. occupancy, quality and XX% we strong to that results asset that but leasing that XX% rent already the a their leases backed for responsive well. Our nine be portfolio quarters staying collections which in convinced first strong the and to October leasing in at so have up an our of for teams this shows have our and management XX%, our and rental to momentum cash for the property statement our The speaks achieved general. this increase our done collected and been. our also management tenants tenants This XX% brings year have we on

occupancy portfolio our our focus care largely XXXX and renewals is with of XX%, turning taken XX% around beyond. stable Our to remained to XXXX

Turning our is improve our continues able that sources our and covered, that to that we dividend balance have leverage of to profile to grow ensure well access been sheet, our are capital the to portfolio. multiple to priorities

Board’s pandemic. an important continue XX% to quarter well plans AFFO, earlier dividend allowed four. below year, quarter are dividend and We throughout to ahead our FFO and pay on for the the on are the deliberations each year this for consideration two and year With initiative. guidance we was XX% projecting for both of us to That the reinstated in has below a coverage

Our common than equity to to capital. in offerings was new It several We see that new deploy made REIT accommodate decision of to deal with million profile we $XXX that the institutional rewarding brought we completed the leverage upside in proceeds quality past. in investors. a August the lower REIT was have

We we acquisitions. at targeting, are striking are. industrial this are we path significantly Assuming million for proper we than need the approximately we leverage. look lower between XX% and proceeds, we leverage in be REIT, When net the to long-term $XXX completing on the use growth believe to much balance where is larger we only the over

on were on in our two peers we this of closed Outside our farther much a your $XXX than the venture should think bank, we another some we has facility October, profound into entered completed on in In have we unsecured years. path, a offering with Morgan, which key million right the credit Realty. in this with us opinion, took I right accomplishments, on in October, the company. early give which led joint International the BMO. a quarter, impact along was major Also JP the Madison by larger One our step included and Barclays, Capital direction, and bank moment. you by joined in will group details Dan

stockholders. since We also have investment stock to They’re largest of our in them with know our come XXXX. preferred them well one common

see million. do equity initial we good We investment of joint a were fee asset $XXX going fit gives a the capital interest to earn venture. we options believe structured not the power in also intentional We we expect purchase day-to-day and to time would It invested have are we’re targeted right source which be return to approximately the X% pursue ownership should leverage the certain us They’ll It XX% between between above have a we initial partners interest we as right hurdles properties XX% give earn REIT. have on how the to We included XX% right and profile to not XX%. otherwise controls. this our for the this partner. an growth and million, the management will in promote equity the this and in chose of first us us. that took opportunities our that of for we buying offer venture $XXX to venture that of complimentary will in the to the We very the

utilize on get properties value-add investments lease And We would to short-term JV have doesn’t more nature heavy under capital acquisition. flow. up the enough or cash they in REIT and the acquire will this two, One, CapEx can to opportunistic two take the conditions. are that affect

these of have we since agreement The with both under first qualifications. our venture the acquisition

well many growth around influenced shipping for protection international demand and but incremental or way the of House. pipeline apparently the demand chain impact intellectual that infill supply is the worth of imbalance time. we an seeing administration of the the others I Our White With Class Pen will are this space to isn’t to unabated, is on as serve in enough industrial with by the This tide of in and there of opportunities all itself properties continuing as pursue and the the particularly you unique will take just impact and that’s of joint much our supply not we update believe but is driven heavily majority ask in is It’s we located. is repeating the that, to to and where it the them a and continues active in of space portfolio another, we’re country. locations us of way e-commerce have and venture. economics global rising will at the the industry protection market continues that are be our The B else. that for us, coming, one benefiting anyone The supply which rationalization associated chain environmental property, acquisition demand right the through continue creating find right as to this believe

Pen White

back Considering on from the morning. in March acquisition we number button our enhanced has our with transactions pursuing in were April, been and motivated focus of Good sellers. pipeline opportunities a pause

has venture markets $XX.X agreement opportunity continued. extend from We B pricing quarter our areas. million There equity generate acquire and benefit infill Louis to provide these and strong the the asset rates in St. B and on growing square offerings where believe in A October and incremental we are completing the at and attractive they our properties, find Madison. Jacksonville to to target also from can we each we’ve These or St value. attractive where Louis, with In our deals markets, Ohio property existing prudently, markets We’ve new with deploy new we base. A entry well Class transactions been capital markets. attain properties entry properties we and rental momentum of have With additions pursuing Jacksonville. major joint are each We in million our to square minus new points in our over X.X efficiently a we renewal in tenanted successful urban select replicate in completed $XXX and existing locations are first, separate wanted able fundamentals in we totaling scale in drive mixture points proceeds now a purchased look the during in feet equity initiative to and million minus similar Louis Jacksonville on near for to and that done well, in to B They plus three past, market are were St. million XXX,XXX that opportunities $XX September, in and Class as August that Class positioned markets have presence. feet what another Ohio over

and Regarding an mentioned we this, first had on I comments standpoint earlier briefly have are venture the the we acquisition this approaching how from under investment to JV, some reinforce Jeff, but Madison agreement. want

few seen REIT of target in that in deals the nature, to For that at time. a large years, portfolio have or opportunistic value-add more our seeing we are and good a number not trade for transactions the fit markets last i.e.,

in markets, do to able an in committed Now, the with scale Madison, our partner, as opportunity not extent the we been to past. have have a target push we

the agreement in under proximity instance, XX For the approximately our million is have play initial of our for a in familiar there We logistics CapEx. Memphis general, well within a in and And market the property we’re a There with Memphis, industrial market. and with. are first some million. them is to strong portfolios that are demand This manufacturing existing many more several this very is foot to assets $XX vacancy drivers base. know opportunity with distribution, building, along tied top very and have close properties this X.X is will we multiple of some market square as portfolio value-add in require

year end, subject this conditions. closing to We by close expect customary to

markets, pipeline look ones. existing plus as and As new in is opportunities forward, comprised A minus properties our B, in B similar as well robust. some Class both It’s of we

For is part, nature positive and as for a skilled of multitude to some e-commerce we industrial and a reasons. it’s locations good Conversation of they to urban the theme labor advantage and for product. leading our This the fundamentals enduring have situations, with instability, are access type and be the strong environment to having still and fragmented ownership patiently been, price and where the of is space where in time The it of the a of is markets. tightening fairly demand invested important some in is taken pool of infill even to the close industrial. same most with sellers, share common creating always being overall

number to with in and the continue new markets, to on as a We look months. of opportunistic our value-add great have in We scale opportunities grow and like the situations Madison. well progress forward to with coming as company opportunities reporting our continued more existing increase partner a to

and activity I’ll it Connolly turn now, over portfolio leasing walk Jim to to So, the operations. through

Jim Connolly

Good morning.

XXth, addressed our to As that of we leases September in were expire due have of XXXX. XX%

already addition, expirations. addressed In we the XX% forecasted have of XXXX

months XXX,XXX we square amount renewal Of During square leases feet rental leases prior increase and had feet a XXX,XXX months. XX the XX% or of new was commenced third of six XXX,XXX over a with six quarter, for this longer, over leases. cash which on totaling Overall, in square square XXX,XXX comprised leases of leases rates basis feet feet. was duration

During expiring. XX% Of for space the nine square September was XXth, million this tenants. or X.X to ended square totaling XX% renewal square million were leased feet and or either was or months renewed feet leases new feet X.X subject to XXX,XXX space,

a XX Factoring another we net in due up filling points in XX The over have to at through we vacant XXX,XXX XXX,XXX a occupancy previously months. four of vacancy a space year current Creekside absorption in tenants. X.X% the locations at leased the first QX, in of negative our points. acquisitions, includes of square Columbus duration vacant leases a increase rate basis feet, that XXX,XXX over was seen the and of being the mainly basis new in for basis vacancy was last end XXXX XXXX, square XX.X%, September repositioned XX.X% impact at during Overall, six that in cash prior QX, feet QX of rental Portfolio to we through to foot are space wide overall quarters basis the a the acquisitions is Additionally, properties owned three rates renovations. going dropped at on had vacancy the major XX Overall, with X.X%. increase points our XX facility square year. resulting

bring are down we to to basis which lease a out to was in the up of year. it last reposition at is XX of higher the XX,XXX fees, renew. to to is Included XXX,XXX need X% which than our rate our to our expirations, end space and XX.X%, than move which scheduled majority to less occupancy be that will of square space received expected Excluding XXXX feet, space we remaining points QX. QX termination he in

during We positive in are XX,XXX square vacant of commencing space absorption QX. QX during leases with forecasting was feet that

in we minimal continue a business feedback We and of the of related we collected rents challenge to their isn’t during built positive XX.X% plans our our core change impact have portfolio our from to facilities. when XX/XX, operations have COVID-XX on the Through the there month collections rent collection you were agreements QX our factor at had XX.X% and quarter. a -- if is our October rent in is executed no there seen deferrals and rent XX.X% month. for for deferral at end expected rate the

square to Our million or addressed XXXX of scheduled had To-date XXXX. square expirations. already we’ve the focus now upcoming million of turns explorations. Initially we the the or XX% XX.X% slated in X.X feet portfolio feet current expire X.X to

worked leases At to in also with prospective show add tenants is supplemental we our are continue in tenant the we see leased We by to seem April. type, that these to I’ve provide extensive square access segmented is our Southwest statistics and including to schedules our at smaller have account square a to and point, effort Stonecrop net a at strong properties in with have Overall, with that over been XX,XXX size. look leases as we investors out multi-tenant commenced tenant plan lot by discuss are very to a place concerned as highlight works, marketing of an early facility Boulevard in a efforts lease have to refine how on our XXXX well results. as turn And and X.X% Columbus with vacating quarterly be financial well-tenanted to activity our feet in to Stonecrop leases is concentrated few we than What now in of total interested Dan portfolio for what to this most working parties size, would buildings. our great We’ve of about I’ll and it base annualized We our only In size breakdown our composition required. of the footage if disclosures diversification. rent. plus portfolio. relate several about

Dan Wright

same-store you, we near-term last third strong that results Jim. quarter quarter. on Thank discussed We headwinds NOI the despite posted

We’re Consistently our making collections mention, execution we’ve burning some confidence high to portfolio year the leasing sustained, on within the releasing progress the of vacancy on acquisition from our portfolio the opportunities the some rent and same-store in off leases. momentum three guidance. ranks the with the and the reinstate not to us continued full and gave those visibility

more of balance each detail. in We and made sheet progress significant our those discuss on also I’ll

cover First, acquisition the few of the were same-store NOI, impact month acquisitions let and from partial a in respectively. After $XX from AFFO FFO and NOI, available revenues, $X.XX impacted decline note AFFO. quarter. the Significant a had activity the items the offset contribution completed for We acquisition. a in the EBITDAre, of and of me only additional grows million the office FFO unitholder that and and quarter. per QX impact share shares $X.XX, year-over-year

required also carrying associated record use our headquarters assets right value primary of to of primary related lease the $XXX,XXX with to the impairment non-cash We’re on offices.

We of space prior the XX-Q for increased in approximately AFFO we But headline for amortization of Street. G&A in also $XXX,XXX reporting stock to got subway the to the executed -- House compensation at for was our timing. operations leading the being the of impairment a and are there the of fell to agreement, already office our to the related reflect additional expense which we’ve includes some due sequentially non-cash classic delayed quarter the several Coronavirus actual have detail a of as professional Adding more and down the concerns to due there’s this an on quarter, XX gap for that the $X.XX new of In footnotes in adjustment Custom fees back year-over-year from we our $X.XX charge approximately transaction occupancy of yield in requirements, confusion. costs already quarter these non-cash season. to have our and representing non-cash is been to $XXX,XXX -- G&A expense subtenant. occupancy on the FFO bring QX.

our the with to And when those reductions our assumption During offering. able make proceeds leverage expect of approximately $XXX.X years to to quarter, we’re equity from in able to and we offering, operate million in lower acquisitions. with substantial this raised a past net be proceeds in than applying leverage

will assuming with years. on deploy our credit We had with we at rate interest quarter-end, applicable our XX% from in pay leverage, next our to offering of proceeds interest quarter-end to are X.X% Balance outstanding proceeds facility leverage place There offers. our September an fixed At we previous nearly represents loans we to no for compared XX% two X.XX%. X% XX% these approximately $XX with rates XXth of used of eight the at were term year to on it zero. at million borrowings with borrowings down as debt

as Our quarter. the of leverage September asset XX.X% end was debt-to-gross on second XXth of the at value, XX.X% compared based to

Our stock. include a ago. leverage. preferred we to net times are These year debt X.X times and times This and was X.X X.X is adjusted when meaningful respectively X.X in EBITDAre reduction from debt a annualize and down times from

two net down next the leverage a over to year debt is goal the next or plus to opportunity bring turn so. times two-off offering take to years leverage us this gives by three recent of or the over and Our few our preferred

operating $X.X operating plus million As expense for and approximately real in insurance, Xth, had totaling escrows approximately $XX.X we cash, estate million. November taxes of

with of and debt loan XXXX unsecured new statements, facility until In minor our on comprise $XXX credit subsequent This own credit revolving we quarter will We facility our of material to of previous and we closed had care million $XXX availability million. $XXX a a KeyBanc. million XXXX, took on end. maturity XXXX Consistent in will our mature a credit new led by million $XXX respectively. addition,

to borrowing increases costs to down reduction to substantial we with addition in continue a XX-basis-point availability, matrix. XX-basis-point In bring our our pricing in

sheet. on a momentum we’ve facility on unsecured going strengthening We’re gives and negotiate structure and rents stable continued. noted forward done this job earlier leasing in a flexibility is major efficiency great an Jim remaining also The achievement greater able collecting that us [ph] and basis. to balance mill our with unsecured occupancy

quarters of full-year ability have XX% acquisitions our the improved to guidance. our XXXX in of With we and decided collect last an rents visibility our and markets, to capital three reinstate

with FFO per of the $X.XX. leasing year, range be would $X.XX noted If I to share that be in $X.XX add unit the For expecting to $X.XX we are the back now we outstanding. associated in earlier impairment to $X.XX

AFFO, to For XX%. anticipating only payout dividend now $X.XX $X.XX annualized for we are of

will reconciliation in our non-GAAP include acquisitions provided of earnings which with major along have million of assumptions release assumptions. We year-end, obviously before $XXX completion accompanying supplemental have the The only small with to capital G&A our Higher support on the lower reporting, with expenditures. growth fees and a impact continued headcount with expenses along and professional fourth compliance quarter. associated recurring increased

the while shape good and we’ve to leverage to on execute and opportunities progress in We’re earlier, growth. to reducing substantial our Jeff made support described capital ensuring on Pen have access

commentary has been answer Operator, in have we take site. various to this remotely will ready on to during adjusted to happy as of the and Jeff this the I working on we additional efforts remarks, The our any of As And are questions. is be Q&A. be coordination and questions staff professionals his a commended. team to both mentioned effort, now

Operator

KeyBanc is Mailman [Operator Instructions] Our Craig ahead. Capital Markets. first Go from question from

Craig Mailman

Good morning. Hey.

I Just one move said, you How that? the Stonecrop. think April clarification, out, is big

Jeff Witherell

square XXX,XXX is Stonecrop feet.

Craig Mailman

kind going completely so? underwriting the of the assumption on dark. that’s is --what there back How So

Jeff Witherell

access to Stonecrop space. We only month vacant, we’re now. is down working already expect right waiting us. basically They’re that the us operations with the We three and an have shutting building. is our actually months allowing this assumption on RFPs marketing

we’ll and have sooner, their tenant terminate we move tenant new lease the a in. if just So

Craig Mailman

And of of could the trying of bridge are And reconcile into a to just threshold I maybe venture, what joint XX% here, of are more type Okay. you little that then detail the using XX% Great. -- Plymouth gap to us? you about about guess, you to timing JV? bit of, when the opportunity? is provide of incremental Thanks. the Jeff, debt lower that the there just you just just come moving you kind guys for Can in leverage just kind guys also for that

Jeff Witherell

of first didn’t I the Yeah. Sure. it. part

timing. what you’re You about there? talked know referring I over don’t

Craig Mailman

Oh! would kind the the you -- triggers of on Plymouth, for threshold bit would what difficult guys a guys Sorry. that Of what’s from hurdle return do you Plymouth, that detail when hit? perspective? to a how Just more just easy or maybe like little

Jeff Witherell

Right.

we really for basis, So, envision will on not that a necessarily your but flow I mean, flow you obviously, don’t us on too Pen cash model. Plymouth, our much of in cash mean, up the do our have. the XX% be I gets if to we’re equity underwriting Plymouth But right? in

Pen White

That’s But lot whole the we we properties. right. don’t adequate. is detail. to know the a of little -- into bit That’s Not unknown, we go because are actually timing No. sell until

kicks thresholds on the of that. the will But when first us. property we just we’re case in stages Plymouth anything changes. -- be we we beginning XX% actually close the at the to on said, here, we prefer just So this are get in out the to And details not cryptic in for

allows structure for You’ve the fee, JV, asset for structure a the the Plymouth management of us. to it which got allows

we deals right, close up Now that be and the on tweaked, deal. as a come could

we on scenes are deal off will things that -- could that until be things just put property. behind out we didn’t purpose, the that closing. could on after methods affect we close. working Hypothetically, a could building on detail lot we that go it that on the the and change up There right just you sell could So of the

that and of out helpful… didn’t give don’t just We ahead but is change, be That’s want to change. much get out these we think just details we to So really to ourselves all conservative. going try could

Craig Mailman

deal is it’s no for deal can blanket by change? there the Plymouth Plymouth, So

Pen White

to I’m JV in that’s tweak writing, saying deal, and that’s But that, we so our a saying it’s that’s that depending What What return the there, do we has I’m have Plymouth bit in, we and is metrics. deal change based solid, on on negotiated. it. little if been staggered that have is No. need it that asset comes fee the management a a negotiated, been

happy that did it certainly flexible. do that have but certainly not type engaging happen, could. to We a partner. to be of We’re We don’t and that

Craig Mailman

JV to And use the the just then on Okay. balance decision on kind LTVs. the of versus there leverage higher in sheet

Dan Wright

Yeah. property is for And that the higher on exercise transaction. we the where point offer the and the obviously got of leverage JV that would slightly on time, into at we We basis revisit like time JV average believe level if first the the we agreement, the at built the based beneficial. ever to on particular value the

Craig Mailman

can Okay. you gets yourself look if higher what’s that, do investment, base full through at full you leverage right? the do I’ll deal kind what XXX significant the JV think? you size of today because guys of relative impact of at What that company the ever impact to that the think it’s the on net kind you could of be the XX%, if

Jeff Witherell

right? the XX% Yeah. So XX% -- I mean, when it’s XX% of equity, debt. we of would take we the have

Pen White

Correct.

looking Plymouth, and investment independent separate. obviously, it the will XX%, it doesn’t at automatically and Our that mean to were third-party, doesn’t to liquidated is returns therefore, it if an flow automatically the sold, be your going and road, proposition could down back be be to

Craig Mailman

as about thresholds, too to sheet? into sheet. any the -- or for in return buckets just then Is me, last different value-add would JV go balance for guys the keeping want think there one difference one you a guys big balance versus And you of two Okay.

Jeff Witherell

what going right? is, is that So, and deal that than the needs And Memphis equity to sell anything a bit. partners definition CapEx to of be create in that’s of by to the kind time. REIT over Yeah. higher it correctly -- particular that’s there I think by of as potential IRRs I there all we And IRR. different that are portfolio The opportunistic rejigger mean And this role, to a CapEx IRR, to definition, are deals there’s is goal said, little do, necessarily. lot in going to the right? private can -- these cash want, value-add, be leasing all of good managed that’s good returns, I what’s some there’s is pretty some do, there’s

Craig Mailman

Is that there taking that value-add scale it just JV at for premium higher risk XXX-basis-point or automatically? CapEx the XXX-basis-point is like like a or that goes target into on

Pen White

mark Craig, bit in in our the you are little general of REIT are you’d JV, less. that to kind the mid-teens in right. be the IRRs Yeah. expect A a very whereas target

Craig Mailman

Awesome. Thank you, guys.

Jeff Witherell

Thank you, Craig.

Operator

ahead. from Go Our National Gaurav Securities. next question from Mehta is

Gaurav Mehta

morning. Yeah. Thanks. Good

up JV, on the that’s that deal vacancy looking you How are acquisition I guys provide acquisition? rate color if initial is of kind able on Following that at under to What cap and closed? are you Memphis was what’s on contract. hoping the any

Pen White

Yeah.

We close this deal haven’t on yet.

to next within the days. expect XX We

So that provide information. specific more we can time

Jeff Witherell

get some just the open still things, right dynamics. that out of things. Yeah. call. spent on making get as not changes, don’t you after closing Have this I said, don’t some right? on all just I we tweaking tweaked, really might But guys we’re want here. deal something and get Gaurav, think, don’t we that really want it and We -- to if time to happen into around we’re could ahead change don’t the superstitious ourselves start just modeling think might

Gaurav Mehta

And for fair? is acquisition as Madison guys That’s how Understood. you I that in sourcing involved those deals? JV, guess, sourcing are the

Pen White

together. but involved, I the sourcing about hear or we part, last just work heard how didn’t I

We’re…

Jeff Witherell

I President have at capital the if look he they an I that Plymouth Dickman Ron has press to why international the world that’s that’s expressed think of you in us. release, the mean, And provider. they’re and the platform. firm the is believes But

well. common on largest stockholders as the they’re one I our As of remarks, mentioned prepared

So could venture spectrum. the partner the found with REIT are think whose don’t we aligned better a joint across interests we have

as we win. So a look at they this. why that’s But are this win, -- doing we’re

take think and mean, that got I markets So lost. it. not you to transaction provide been if bring I the These bringing us. to have that a hopefully REIT, this portfolio come our can it’s assured of We’ve And coming for already want we future. that. some think deals the They board opportunities cost, we’ve bring They on us. if decide XXX% particular no in in property we’re into the we are on markets. rest property, venture about in people on get in it. to joint REIT managing There’s we ground advantage the to been

Gaurav Mehta

Okay. I Thank all you. have. that’s

Jeff Witherell

Okay.

Pen White

Thank you.

Operator

is question Oxford D.A. Barry ahead. next Our Davidson. Go from from

Barry Oxford

I think you. How Thanks. Great. bad Dan, should this forward? think is expense debt for going about we your

Jeff Witherell

Barry. Say to hear. again, Good that

Barry Oxford

Bad forward? debt expense going

Jeff Witherell

Okay.

Dan Wright

-- We have think got under a under control. relatively really we

minimum, bad experience think been our debt I on has right?

Jeff Witherell

on I our as of of now. deferrals it we just at plus don’t rent. these XX% any we I that’s And think We collecting and much mean, of were touched have all? right

Barry Oxford

Jeff, would when collected X/XX X/XX? those fully by deferrals be or

Dan Wright

And expect this XX% already deferrals. handful sliding year-end have year. to we’ve collected significant into over January, point, a only with of by February the collected we of At well portions that next

Barry Oxford

Okay.

So quickly you’ll collection have fairly the months. full over few next

Dan Wright

Absolutely.

Barry Oxford

in then any has if cap been few And picture that acquisition down? Great. have from sale pricing, real seen the gone second, the the for last changed that of anything, my couple just months? rate, guys inventory last changes such there is, question And months Great. have you an then, volume they’ve Yeah. big guess of as over over

Dan Wright

Yeah. first Barry, regarding… do first question I your

Barry Oxford

Yeah. Yeah.

Dan Wright

… cap rate.

the compression the rate XX markets, markets we’re in just last to from cap not seeing few kind anywhere some seen basis of in have points months. primary XX points. basis the but secondary And in We and

market I versus been think do. each and what that that’s single why change asset the do naturally we properties is has rates. we cap more see multi-tenant where in in minimal different there But we

marketplace We’re a have all you the for seen know. reasons lot But we days of working industrial some in a a know. chasing compressions, capital general comment, that you as as very these fragmented

Barry Oxford

Right.

Dan Wright

the I on deals, little in So low, the bit volume guess, have surfaced the of deals market. and time since didn’t summer Day, it’s that But we’ve tick in up the COVID definitely seen a of help. amount Labour

busy. a it’s fair right I deals of million -- we’re we’re and I still and -- $XXX are amount now over it’s active. So tell our busy is going through quite our you team pipeline now, can XXxX right and

that’s good a So sign.

Barry Oxford

Great. look enough for guys sure make at. Right. just to want I No. there’s you to

Dan Wright

Yeah.

Barry Oxford

Perfect. Thanks, it. Appreciate guys.

Jeff Witherell

Thanks, Barry.

Operator

is Go Our from next Connor Berenberg. ahead. from question Siversky

Connor Siversky

for Hi, call. me on everybody. the Thank having you

year to reports, into just shipping if could and your going any restriction I’m next that tenants little year? this capacity the a First we related as affect some showing seeing XXXX. level, end you there conversations high to and in approach with are a if leasing of the think And question wondering

Jeff Witherell

got you Jim, any insight to that?

Jim Connolly

We have not into about any on with not restrictions see a conversation had our going And leasing tenants. next do we year. slowdown

the majority first the with tenants. already We’re half of on expirations -- working

Connor Siversky

Okay.

just I’m that other one opportunities a recycling way in down leverage to disposition, XXXX. Maybe incrementally? to engage And into some if seeing Okay. capital you’re wondering as out then on bring there any use

Jeff Witherell

we’re Yeah. bringing I think, first I leverage. mean, off, down

we market another $XXX universe there REIT the We’re plus leverage million is REIT don’t our and that have. in think profile has cap I

a if is, you and at and that because net where down sub-XX% cap we sub-X spread works. the Xs, and facilities. leveraging we be between at significant that look are any -- of see that debt-to-EBITDA rates X% we the projections time drive have that. at all low will Selectively, sub are, where Look where leverage on could dispositions. our bought on and gross look over certain Look our We assets continue we’re don’t work our that there issues spread at with at to

is sometimes record We people buy properties, that there will work. it to doesn’t go times cap where a track low higher it very works, out tried that to bifurcated, in have have of properties cap REIT go the their sell out lot you and space,

deploy. Our we’ve got focus is capital to

could I don’t is a think really capital, issue, we lot have do. things of recycling So big we could a

sales all time. select We You see the review or some properties. that may

are our XX%, of generating lot on properties Our cash. XX%

going to not is and that years years anybody recycle real is type business So do in to next be or I’m property. the sure able to so three four of in estate into that

good tenants. good We going that’s to got of we’ve they’re our So renew, business. think not properties, part they’re obsolete,

the going most isn’t work who for part, for our to We’re us. is is to strong we the -- forecast renew, out that’s well of and really one ability points who to think that that’s going

up cash, be at XX% we’re we’ll cash. on XX% we to on So going to XX% think

is want of could would What great. leverage to certainly lot thresholds a people. a times than to And happens is, some the long return that. -- facility. of different of their see the other you So answer They We to buy kind seem think sales. older kind users approach lot and select us out winded are a

So what it. significant have into a the you. going they’ll lot property a money put property, pay if they’re If to they’re especially or capital for more using

happened So with some that you see might us. of

Connor Siversky

color. me. That’s all guys. Appreciate the for Thanks, Okay.

Jeff Witherell

you. Thank Yeah.

Operator

Our Go next from is Baird. question Dave from Rodgers ahead.

Unidentified Analyst

I Stonecrop Mason guys. just question. Hi, one [ph] is is that -- expiration. in Kean have But talked XX clarity June on on Nick the This quick about past think I for Dave. we’ve property. Thanks [ph] the for XXXX

think you of you been like it’s one I go guys subleased there? to just you any mentioned direct I with have if guys are and wondering that was the tenants updates guys hoping there.

Jeff Witherell

already They So Mason -- deal take with they but they the well. lease roughly tenants, is square of June. do may in what to to in year. feet. until beginning square once feet. to they Kane for square sublet on building off and they fully done wants the us want. as which the sure Mason piece a a size feet it because exactly have Kane did the what XXX,XXX the we’ve the seven-year space two And another one wait want remaining They that to tenant the not XXX,XXX expires of is space with They expires They of

you be XXX,XXX XXX,XXX So square feet feet. they in square to could know

Unidentified Analyst

Okay. Great.

Jeff Witherell

done is is half half in the the and still other works. So

Unidentified Analyst

Okay. Great.

Operator

over This remarks. Witherell I Go for ahead. to would concludes Jeff the session. like our closing conference now back question-and-answer to turn

Jeff Witherell

us you, Thank all you Thank Kate. for joining morning. this

again Thanks. you questions the day. we’re for follow-up throughout always, available As We’ll soon. talk to

Operator

concluded. you presentation. for today’s has conference not The Thank

disconnect. You may now

Plymouth Industrial REIT (PLYM) 6 Nov 202020 Q3 Earnings call transcript