PLYM - Earnings call transcript Q4 2020 | Plymouth Industrial REIT, Inc.

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Operator

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

Tripp Sullivan

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

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

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

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

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

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

Jeff Witherell

you year everyone, us have morning, are most an the Good challenges The of joining Plymouth for most and today. the of, Tripp. year. aware Despite had was we Thanks, that endured. thank outstanding all disruptive period us that XXXX

portfolio and our are as the well, performed property Our exceptionally in as markets ever. fundamentals strong

pace leasing nearly already strong, XXXX of been Our has and addressed we've explorations. half our

want new source and continue We for Plymouth opportunities improving have produce our the team entire they wherever worked on attractive and together, commitment. progress it markets, their I doing to results. takes whatever made hard to target in our were, balance to much thank sheet. They've these

once experience out. real Our itself has as estate proven operators again

XX% for with for of start pandemic. of in on X.X% don't for XX%, and today speak And to rents payout respectively X.X% of our color XX% XX.X%. throughout AFFO themselves. our here Same-store ratios add Cash year. the growth the the the NOI a core of dividend the cash quarter. and FFO year. basis We fourth collected was releasing with full have I spreads as Occupancy portfolio. stats year-end much at too Let's

spreads to basis be this in be continue to X% on We releasing same-store plus in are range. projecting with a in strength range, cash XX% X% to the XXXX, cash to the NOI and expected

our see of is replacement being cost, added that based of peers, do want on added components data We've fundamentals. additional NAV, help square portfolio. of provide a enterprise supplemental We value value properly as features primary is foot A of on stock landscape portfolio valued should an data, to that point how $XX relevant our the replacement breakout our and preferred our secondary $XX stand square collections, acquired an stack joint concentrations, Where and land a out. on rent we'll information investment as our Compare cost few exceptionally developable market valuing stock. at of the based $XX across in a We've in of implied foot. well potential up of total versus color creation, I figures venture well. look they basis upon As public foot square a the to a industrial this yesterday's those more look price. in

trading are range, We at six in the handle of with versus also the cap and on our for quoted rate. implied larger in X% planned XXXX cap portfolios seeing X% rates an us rate cap around in acquisitions markets, a

a half would outlook right our on is the an investments by ours. see well the above December above cap implied is and quo count second foot be equity think share values square XX. and since of industrial frankly, we for implies unwarranted. across peers, unsustainable working consensus Looking that We'll that is activity delta of We and street full per guidance exponentially top assuming increased hard which to the rate ramp the drive the implied quite significant these and ATM quarter August enterprise next two impact imply in for and our January, core up the investment and status educate believe a year-over-year, guidance The on comparison collectively with community for also our decline the is year, the that in solid, the offering what years. to we We which disconnect. home throughout and with first better FFO XX% XXXX and reflects it slight a in AFFO that place, year September had year the

have and balance of sources to been that sheet that As profile I've our ensure we our before, dividend to that multiple covered, capital. priorities is to well continues stated leverage access have improve, our

projected was Our XXXX. in be is well so to XXXX and again covered dividend in

than the a outlined X debt adjusted to targeting XXXX. year-end which less we times of EBITA We of ratio net August in are target is by XXXX, same

venture. our capacity wholly-owned on activity, access power have joint million recent to buy with cash we Madison We $XXX have to from acquire remaining and ATM hand assets over of through

within supply benefit supply is target industrial new access and that of up, growing don't positioned our are be we've in bullish large to in the are activity? time portfolio, a to case walk and the particular. is these type acquisition from disciplined labor. the now we outlook properties last you I of said, constrained proven are favorable our remain that own our and industrial over will to Rents on markets markets, pools years. us why We going in the believe to being in dynamic, and general for targeted skilled our That through Pen, several demand

Pen White

St. $XXX Good between first September venture last projected our quarter XXXX. transaction. with I'll Louis We for Thanks, to and wholly-owned Jacksonville. million first a total acquisitions everyone. fourth were plan, that of joint through on track And offering quarter in million our we of our work Jeff. last the our a $XXX $XX and on After quarter August, discussed presence in completed we the to separate million we Ohio, morning, putting transactions and walk invested. with two touch transactions add then first right in then to in in

acquisition was of north a first located industrial building multitenant The Columbus.

of transaction state, management footprint we've foot, scale two as acquired attractive entry rent is Kansas square X.X vacancy. fallen Canton. was We've a it's is of XXX,XXX $X.X an the tenants, significant the second a yield million market. Ohio, XXX% in one near of The year, a approximately have million $XX cost and in which a for asset that we buildings targeted September, growth $XX well in logistical initial another economic low targets for approximately we into with million, mid-February square distribution in to large put and rate City, second we've our our now industrial ground. when per a and the approximately square assembled outlined industrial to record, Wrapping-up X.X%. per last to our and on X.X%. of Kansas foot we our to Page that square and expertise XXXX is replacement completed square work XX leased building, footprint below first expected City, X absorbed only Columbus in X.X to we The created it portfolios leasing provide supplemental. the square with that totals a feet million With its drivers, shown now portfolio initial X.X the and market, vacancy approximately larger This institutional absorbed on in in feet, has office feet It property regional of foot, Akron and the

joint we XX building gears, acquisition in This future. portfolio So, footprint that $XX Madison fourth our with forward partner at transacted to International first in venture our market look during near Memphis, expanding a our we which million. was the quarter. in completed Switching the

points. few and million from the new page The details in with on with specific funded from to our a was but secured partners, supplemental a highlight have that of I a venture, a mortgage. wanted joint transaction We balance deal equity the $XX provides the

the $X we in area, in to in located to and our over Memphis are XX brought reviewing Our expect equity million add previously Memphis We opportunities markets. annualized receive investment infill buildings the share investment solid our the equity, our joint investment, close for to existing $XXX,XXX we management the of square a income. criteria of The are initial believe proximity market them share said, our existing asset net this with with was fee Adding actively venture. to properties. addition X for partner's in Madison, on operating the footprint in stated accounted markets million additional an and many our in them, value That metropolitan within of feet.

our in we for acquisitions of million Looking plans under the to wholly-owned targeting for year, the balance slightly ahead $XXX the are year.

rental and acquisitions X% in outlines guidance growth high strong the for published Our given the rates the X%, these even rates in are markets. selected or we range, and be low cap expected anticipating opportunities would mark-to-market timing,

are earlier, Jeff our strong markets. noted fundamentals the As industrial in

are invested are That our some the We continued value turn lease of supports well the pricing now both and the to drive to don't compression we we larger any and strong, markets, in over very as through markets, walk continued where particularly our frothy. ability we new remains as up and within because We for speaks in have these markets broad assembled cap gateway that portfolio are where positive rent to rate preferred current markets, to relates leasing our plans portfolios. to it we secondary markets growth is migrate obviously already activity I'll have portfolio. surprised, and invest. product, seeing primary seeing to, our to remains the aren't to properties and target Jim, growth. internal it But our operations. we exposure portfolio have for in constrained absorption supply But and

Jim Connolly

million square our XXXX, Through feet square amount of had was tenants XXXX. renewed, vacated. to Leases to XX% Pen. released expire And feet and scheduled square of end XXX,XXX year. was million XXX,XXX we that X.X were feet Thanks, expire were square morning. the the of into Good that of feet new going space comprised during to leased scheduled leases X.X

In up XXXX was of year-end was Portfolio from addition we of vacant space square that leased XXX,XXX basis wide the at year. the at start occupancy QX. feet XX.X% XX points

to also and especially remaining growth of increase square XXX,XXX basis. was amount, on feet square in feet, new over renewed XXXX, leases of the rates the the XX tenants. square the XXX,XXX pandemic. six XXX,XXX cash XXX,XXX longer During lease to considers underscore quarter which feet commenced saw months X.X% These of our fourth feet leases portfolio, rates one and this a leased resiliency or we metrics related was when total Of impact rental comprising of In square included prior duration. a leases the

model XX,XXX basis few in in a cash influenced on flat started that lease X.X% we although expiring While square that prior five feet saw X.X was term. for by deals. from rates rates, totaling from year and square decrease six starting rent, average feet decrease deal the years just the lower One rents lease in XXX,XXX had a Chicago rental leases

previously vacant third feet, over As our of the I locations. mainly due mentioned, square our the feet commencement square leases XX that to at space. addressing XXX,XXX four is points included new Vacancy XXX,XXX basis XX within repositioned was quarter, at year-end, of portfolio year-end up being portfolio occupancy

space be $XXX,XXX QX would received Excluding points that termination fees at footage, in the related would occupancy we reposition higher that square is move square in our XX.X%, which XX,XXX than end XXXX. lease QX. outs it Included feet have basis rate the to in for increased of XXX was and to

deferral business foot square million portfolio current has the a have X.X operations in is plans collected to over including in maintaining rents duration. foot year have in related financial XX, granted we square South tenants lease or continue now lease over I'll in been feedback or QX. we set We The five on our amount portfolio the February explorations, of has few. turn billed Cincinnati, been to rates had have feet, we and now increased have on made Bend, were of full no a name the over last their positive a have only impact results. scheduled square COVID-XX. point, of our to it in At XX.X% seven square and basis XX.X% -- agreements during To-date, to tenants discuss addressed on progress foot our To-date this this year. minimal for XX.X% XXXX rate. expire million since months far, to XXXX. rent of paid a great X impact XXX,XXX core from collection slated have focus others our rental QX XXX,XXX the With year from have feet, X.X% XX-year, And just rent our we and in Indianapolis, rates established seen our in on a the to in cash prior leases Dan a six has been our XX.X% Thus they square mid-XXXX, through been lease our Initially squarely XXX,XXX to-date. facilities. explorations,

Dan Wright

the two previously. and us provided and of of applied of months supplemental, below resulting quarter leasing weighted property was this encourage a brought information I the and share our share midpoint Fourth of common pennies the Good I disclosures CapEx, on thorough been store our X.X% increased within of primarily and the a Jim. We our of to ATM our XXXX driven of basis were from is the mentioned you in on will year the a FFO December and with the the quarter earnings set respectively, midpoint some you, saw would year per have anticipated detail the 'XX. not and XX,'XX, XXXX. to Thank disclosures. time morning. on fourth executed to very additional growth $X.XX realized and recurring quarter property handful which those smaller We've The X.X% activity, ended Same in to $X.XX results, providing the XX-months of in guidance liquidity midpoint the as was a expanded opportunity take industrial release our and same my that and count due focus for and AFFO first predominantly which leasing the which quarter first FFO for cash full being units latter strong against NOI XXXX. strong review of store to average AFFO for be trends three sector. range. until growth at results NOI commissions in range, morning by

ratio net of balance XXXX. nearly our X.X new has year-end was with continued our loan times year-end credit. at and to The of debt unsecured to unsecured, of thanks our Our of improve line composition to comparable adjusted to term debt sheet XX% EBITDAre

if another We capacity have million line $XXX with expense in additional of taxes liquidity of plus under currently on ample cash provision, $XXX hand, available and for $X required. insurance, with on accordion real million and escrows our million the estate $XX an operating million

earnings in Our is full-year at and $X.XX XXXX guidance outlined release our of of core of on AFFO we assumptions supplemental. the the and built FFO have in $X.XX midpoint,

property first the and quarterly with first contribution ATM the factor some first of we offset quarter targeted range same primary the quarter second In have is a assumptions earlier in expect range acquisition cadence, three from anticipated share acquisitions higher a by the X.X%, store cash be key yield on timing to count quarter will in additional being basis NOI growth the include; projected to quarter, a like provided Pen, addition the to by activity. much from

see weighted of share and as as from higher second The within to count unit and half of and weighted into sequential the full-year average XXXX second share XXXX. quarters the year. average XX% up the well benefit the expect is count ramp-up the comes for of unit full-year year first play this guidance, We transactions from the

net we below be off acquisitions and track Texas the it the mentioned are for to 'XX, number, goal times adjusted that quarter year year-end we As and Jeff QX. timing it of as above earlier, by two settling we're quarters X could on debt starting stay middle the with set before slightly in below quarter. EBITDAre to last at is the which Again,

$X.XX, October, quarter the XXXX of portfolio of at large quarter Mansfield, the that With in will a weeks first the Canton, was Akron, the indicated. call XXXX guidance acquisition late I to well Fourth and in Ohio acquisition Memphis $X.XX as Our Ohio midpoint. following. portfolio this, FFO acquisitions partial JV couple of regard the AFFO of as November, benefit core and Pen in benefit out from a had

the the XXXX. X.X% over increase operating higher XXXX, activity to 'XX, quarter the is predominantly so weather increase period outstanding growth quarter unit and from share basis we'll first see for increase per property to to on X/XX/XXXX X% first average quarter our the of in of impacted shares by to ATM to far plus a experience decrease driven projected QX in the transactions, quarter cash And extreme on expenses NOI is first plus QX, quarter, to January. rollover and due City related shares approximately X%, the The weighted transaction. to ATM the all equates recent by cash the basis tenant the will by compared today, end of Same to that XX% the on basis to a benefit extensions. That Same-store quarter predominantly XXXX in NOI total First compared Kansas reflected from within and activity the XXXX, our half fourth markets. escalations fully approximately issued on overall three fourth growth in a expense timing basis down rental attributable was a be per operating anticipated additional QX, that store the impact quarter a share recent due property as of completed and is projected the on extreme end. to full a weather, higher

financial XXXX a to we been benefit take position and to to questions. are additional for investment continue never of growth have our good gain overall rental overall stronger, has to take our exposure consistent with plan from and objectives. ready to now we Our markets, advantage opportunities in Operator, markets,

We begin First will Rodgers question-and-answer ahead. the question Dave now from instructions] Please session. Baird. comes go [Operator with

Dave Rodgers

which check on have color gave Good I some other we a still renewals the and nice in tackle? previously, lot and about maybe to detail talked particular. and this talked team the morning, for the Jeff, that is disclosures added Thanks you on was leases left of Kean improvements the accomplished everybody. expirations the some But of you've those in wanted the and XXX lease XXXX and two related two to that. about in all you XX% Stonecrop, Mason supplement what's quarter. And the to already.

Jeff Witherell

on here it. Yes, Thank actually that have in actually question, sit that which wasn't we XXXX, is I the Southwest as glad lease Stone you. prepared but out you today, we Ohio. on to asked property, I'm David. a be I Columbus, Boulevard for mean, first

out with lease new a signature have a tenant. We for

may, risk never the signed signature. it's should right. run. out not. may it are disclosure, signed, for It you It the get So, get but today. may It Those

on his far good team as So as a is did -- and really great And job that's concerned news. that. Kane Jim,

Pen White

it lease XXXX so a And Mason to had, in just was the is, I the that is half Yes. new new that of -- that not space tenant. included leased results at Kane, discussed. were currently

additional expires. over that wants they the expand of parts another subtenant in space So a into when long-term the as well. There's Mason lease Kane now may takes building our deal, half to the it's a other subtenant that do of but

out. that working we're So

Jeff Witherell

that, David, that got the a little complicated. But a it's it's in you but of activity Hopefully, Kane space. space, lot

Dave Rodgers

the really number? that really good. And hold on basis as Stonecrop, up through cash giving really roll and the a a for and in get that's you 'XX, year a we positive can number. sounds That The maybe so strong, anticipate downtime that. then similar Thanks you X.X% just far Would follow-up.

Pen White

Yes. pretty all That's last years. couple been consistent the for along

Jeff Witherell

we then can on this, And -- downtime the I know if don't

Pen White

immediately This four of out, expires. starts Stonecrop but lease build months the after

So GAAP basis, downtime. no there's from a

Jeff Witherell

No downtime rents. on

Dave Rodgers

then Okay, maybe just for great. me. lastly And

think in million mention outlook, the was was year. the just that guidance I acquisition it under the On wholly-owned. did for you the $XXX And

then talk just what the you're that total, pipeline. in the compares So bigger today? I there I anticipating maybe are you that it sounds But us a do you a it. like number about in acquisitions to said If can have sense, guess size you've some pipeline maybe seen in give it, deploying? the you the And how missed past? And of

Pen White

Hi.

we always have $XXX about we're $XXX of million, it's our have deals pipeline like million that at a looking underwriting robust you. what or fairly have. Right worth We now,

out about So gave very, very in call. that we we the earlier feel phone the number comfortable

with have with Madison. of As also, amount partner we our Jeff joint venture buying mentioned, capacity fair a

just probably pipeline activity have of the million over We worth for venture $XXX itself. joint

that feeling that So all confident capital will before if the not share, very certainly of be deployed year-end. we're lion's

Dave Rodgers

you. Thank

Jeff Witherell

you. Thank

Operator

Barry The from Davidson. from next question comes D.A. ahead. Oxford Please go

Barry Oxford

Thanks, Great. guys.

the payout in now the ratios dividend in you're range. that XX% close Looking lease minimum and now to given standards. retain fairly the payout low [ph] at I $X.XX, to your imagine

definition in company, If at grow are, point, to to just you is continue to 'XX? going all the guys which increase you have dividend some by that guys

Jeff Witherell

the know, to be on Barry. that's future... I or don't if mean, got I it possibly We we got careful careful. a question By be Thanks will. the to But Hey, question. for comment.

Barry Oxford

guess saying that's off. I'm But, what what analysis guess far I'm I look, I is, my not asking. is

Jeff Witherell

Correct.

Barry Oxford

the you I your And here the 'XX, as looks strong further? I first for any then count, at in Okay. ATM the your And if look obviously activity, very quarter. planning it ATM in guys then share at guidance Great. aren't utilizing on look when

Jeff Witherell

It your looks question? like we're not, that

Barry Oxford

the share the or really weighted ATM. and have of shares much into because kind being Yes, average count guys year I'm looking it doesn't look like a more the baked for of lot Yes. full you issued at

Jeff Witherell

guidance put not very going to we're we speculate When forward, Right. equity proven out, to on the has for right. effective heading our us. be But, offerings ATM

I build to think you far things. is offerings. may we're modeling it People comes from a institutional to as filings types have in to table of not some large want some in seen as when is Plymouth, our position investors. everything us, on continue But, Barry, they the for equity corporate should. concerned, those as modeling And

Barry Oxford

alright. Okay,

into going don't So, ATM, course range we're the to stock and if stuff, over a like. of heats up pipeline utilize if price acquisition read look, our is within but then the we this especially that

Jeff Witherell

talked we only a know. Right. a kind pushed need through do those all And there's of That's of last the or business, those the for that JLL ones this that to you revised we've estimates keep up. what the reports I space. whatever mean, grow claiming that square that opportunity as tremendous amount billion We're getting about do. feet numbers of year,

piece be plan So the that. five four should to of And a years good. be industrial good or next in we

Barry Oxford

guys. Thanks, that. on color the for Thanks Right.

Jeff Witherell

you, Thank Barry.

Operator

with The is next Please go ahead. Mailman from question KeyBanc. Craig

Craig Mailman

Hey, guys.

that is up under point? acquisitions, LOI this $XXX to the contract on That fully following and dialed either what identified Just at you've or million, in guidance.

Pen White

fully now. not identified It's

as pieces. you probably know. floating, But bits It's XXX%identified. and always it's have We not

Craig Mailman

Okay.

spec in So there that either there or hit guys is you could some exceed.

rates can And And NAV issuing kind standpoint, on mix high range Okay. your get make stocks that, on fact on had of trading. you the earnings it stuff where deals at some and from just numbers? rate mid Pen, in trading how an buying an into of X%, then, mentioned accretive to But guys these you're inside the buy from get can kind be with in. of when least are would an listen, some much my X% you seven But kind that standpoint, easily buying maybe of and NAV cap inside evaluate, you even of cap deals. caps And guys you low you how creeping lower you're basis, I implied debt. around of I

Pen White

sake the in what happened to win I which the our say, indicative asking last comment deal. year that, Yes. what above seeing ground of a you We look, board to make absorption want up X.X%, aggregating the record, just assets No, And rents the not now. numbers. across of every think kind type behind is single have terms from we country back assets. the all every are aggregating just look XX.X% a These That's growth. that absorbed, total million And Vacancy on We're good, Jeff out these for square across to is rate of we increased of kind days, feet money we're want as of level across at deal. rental zoom take to is the at macro on that if strong X.XX%. and of board XXXXs the is XXX up X.X% from right XXXX. was

play deals these in We're different deals we the So seeing Xs, at our Xs. out good, mid it assets. seeing growth. in deal way. We're own we're in And seeing is numbers each that and rental the we're look solid seeing high

hope paying we that find pretty able And are we're market good in question. something, I that buying your that or has chance instance, the if you a to the answers below tenants near-term. there's that bet Xs, going that can rents. asset an we're buying to ourselves probably be we're for buying something in So, high mark-to-market

Craig Mailman

it Yes, did.

of Where I And cap get. maybe where not that's market in and in? right, your generally the I way which look of to rents, been better a So more look evaluate. rates stabilized is gone you're you've it you going where below view trading. of it, on, if kind you to stock your have versus guys you at are at stuff talking buying about because I mean, guys guess point, at

XX kind the in up, relative you to year rates? you of or that what it mean, have you NAV. within going XXX can basis that's recoup to I two cap is range that a been targeting of how roll If points guys

Pen White

that's, at we good on, will the observation looking year, we first that's and a at, the to at it. we third, No, I look think deals yield, The just don't forth. look obviously, fourth, ingoing at pretty but, we're and look so a look way so and second, yes, the at

we versus likely at We So rent way a tenant as these multi-tenant, growth have depends, a to it a more parts. of single multi-tenant. recapture look And it's lot if amongst it's some tenants. moving most

be to XXX basis it now more, things our points, like maybe So, the markets. across you said, way going right are could XX

So, optimistic are. about quite we're feeling We really this.

think I those more see deals So, along lines. you'll

Craig Mailman

are where seeing into And Xs? markets? of the creep you guys What type product your kind Okay.

Pen White

market, you the I the vintage building, or depends of tenants. the think, the lot quality the of of not a quality age the and it but just also as know, the

us that of come gateway So, that in and I places not pricing what the you're generalize at But, they've markets Chicago. monetarily types I we pretty come to tremendously in Atlanta, think, it's Obviously, as hard we're cap that down frothy. in down earlier. as to chasing deals, way. those the rates seeing to like look But mentioned

that's anyway, -- So

Jeff Witherell

do to Craig, a size. with has of this lot portfolio

we think of last the what feet, the remarks at rate to X that's or many... and X in end my I portfolio was of you year million on a how portfolio square take closed I alluded was,

Pen White

the In Xs. high

Jeff Witherell

Xs market. that market, Cleveland was on that's that. That's our high Yes,

that closed the in in supplement. size deals, are these of to of portfolio Louis, But So, indicative are here. size, they're cap but I the on deals on highlights properties Market. mean, Kansas rates I it'll aggregate cap we probably work. can really and really St. be we one-off City the put some but who the entered can And, some the mean, are the we not money rates this we've of high, them. significantly in entered some smaller

lot large there, the think. of a has I cap with so And do portfolios, it rate to

Pen White

Yes, that's accurate.

Craig Mailman

you. call. apologize, the my I out in phone cut early Got And

roll the that Stonecrop? guys of is said had guys you you X% addressed on 'XX. inclusive that think already? of XX% Is I and spreads that Or have to just

Jeff Witherell

still in historical That's continue releasing a basis include into just into we're those we projecting spreads And next not yet, on this -- one it. year that company-wide to Stonecrop expect on year. does the

Craig Mailman

Okay.

should but maybe little later year? Stonecrop size, in gets because the bit is it one of the that lower, offset range? be that in a So Or

Jim Connolly

not it to going say not I'm lower. be what exactly it's going is, but to

Craig Mailman

Okay. And just Apologies. one then one. last

the XX% the XX%? -- put you right are out as around the disclosure of JV I'm in kind already XX% waterfall added would sort returns you and appreciate just kind waterfall bucket? you there, those of So, curious I with the guys be Madison. guys are that of levered Just

Pen White

Yes, that's right.

Craig Mailman

of So, -- should XX% are guys. to so you getting goes your starting it that, slightly that above some to that accrue you're already be you

Pen White

Right. That's correct.

Craig Mailman

Okay, all you. Perfect. Thank right.

Operator

Berenberg. Siversky go from question Please comes next The with ahead. Connor

Connor Siversky

the Just jumping back acquisition, to pipeline timing. and

year. So, June in footnote are states looking at I'm finished these million supplemental this by about the And in to XX $XXX acquisitions. that the then going be

these XX? are XXXX? that And what through of what wondering, chances sense end the the pace this then, are just actually I'm June completed is that by continues all the So,

Jeff Witherell

an the exact properties, than case started because right. That's the a in we not place. the buying mean, we're And since properties is market science, we buy this not duration, in. we're all least mean, deals, to I we kinds over been opportunities company. have capital. buy in we're We're do short I markets of that Yes. REIT. we at We off lot all deep the see more

leases. not XX-year So, we're out with competing there

out variety big of there. a there's So, products

meet or exceed our are the in that by will we filings So, numbers far.

Connor Siversky

that. leverage than a to debt to the a look through equity like, through in Thanks June these at expect group, can acquisitions XX? bit then, And of wondering what higher still, financing looking mix just terms Okay. we for

Jeff Witherell

size. with it our Yes, Because, really mean, its think look we off moved on company I'll per don't working cap, bring I'll market we a that fully didn't I I I at look that of thing of answer it's who's it one unsecured out now, on, that acquisition basis. much, facility a highlight credit we're at mean, a because into amazing.

lenders, I it's not to for to credit a Plymouth, going that. also have with think the it's our class, And I take the think industrial, XX% we that's XXX% relationships unprecedented. So, take we're to we're operate, the asset but somewhat we it's credit, testament going way

the So we're lever XX%, next oh, at asset going this to looking XX%. not we're and this say,

claim told leverage they what says a made we've what that's to X%. to we Plymouth when everyone's want that That's EBITDA we keep debt under on our think I And net So, of a do. basis something, our that, investors. realized that

look that. million the out there. in at our And, just And our universe REIT, that you exist market so leverage cap that's doesn't and a look and and out again, we $XXX how go at growth at look

we're So, that again, when market going cap, will there. out any of cap chip it's from worried continue away we're profile perspective. leverage best billion Rents the leverage we're billion And when be relevant not over that's up. at going time, are our $X market leverage REIT to $X to about

Connor Siversky

land. what And positive That looking a outlook can there. expanding this a little level, of land, on then kind of parking, facilities some and it's maybe at any here, if you the the color particularly provide long-term color would certainly Appreciate I'm appreciated the excess higher for new, the be there. developable development. disclosure, building whether any plan just is just wondering

Jeff Witherell

Yes.

brought you Plymouth put this there. we've buy Pen we that out mean, when our and plenty and a I So which them. I place, from bought go last out of property, to and was

land. the at on and we've on it square bought it got land we we existing we now, included. bought build is a that XX,XXX can nine a property, foot For instance, a building property cap When

relatively lands in so markets, not speaking. industrial, that expensive, a our of And in in lot the particular,

into you not gets want going building, $XXX,XXX. well, you if an and the if or It's $XXX,XXX kind -- excess like, want it's So the the it of to extra deal. excess land, we're charge thrown you

makes of sneaky going we're want kind buy with, been excess to come always we've we're building, So, going to land the to sense. good where, it that, at the only if

X in build now can space, want. do it of build and we have we we that the almost square yields to feet million so, the And ability certain markets, achieve and

that. we couple develop, that if the here. XXX,XXX developers. tenants of spec house building to seven people eight that, So, in with that's few our We're a have and deal, for not could negotiating tenants, yield a cap we a them build that do square right building we're necessarily range, expertise a right or over feet. can other now to existing do buy as We my would build rate one background, to next well as And we have want we and to their

for lot time it's want real a going to sense. the price is there, little it it's do that. of getting approaching some foot just makes of our bit in tenants be if And yields a So business us But square good there, to the go getting markets. it, are again, where per taking of it's

Connor Siversky

That's Thank there. you. very it I'll helpful. leave

Jeff Witherell

you. Thank

Operator

The from next with go question Please ahead. comes Aaron Hecht JMP.

Aaron Hecht

how assets? you these Hey, Just think rate on of cap about were guys. threshold compared larger wondering, in bids the rate talk the doing to properties one-off type come cap buyer applied the Can and compression transaction? portfolios groups where play you EBITDA lower and where

Jeff Witherell

through coming a Aaron, of Hey, little kind it muffled.

see I rephrase it. if the answer think I and I'll question can

that? cap portfolio mean, said I what a changes? the I was of kind at talking about size is think you rate what of

Aaron Hecht

right. That's

Jeff Witherell

Okay.

Pen White

both since have It's meaning Class kind and Yes, it's cap extraordinarily the Class markets million up or whether all traded really, over we've definitely of portfolio the A kind But hard first it's $XXX premium, a low in are B. generalize. the and seen a at to portfolios of that the board. rates, all year, at

without were, goes yields as that as have that, been some it we of the when buy higher. are basis we So doing, we in properties, on going saying our one-off

that don't answers question. the I if So, know

over be range. sometimes $XX $XX think to the million all not, if there's million a portfolio obviously, might $XXX I in not that -- might portfolios million, that

might at not up, makes that would a that sense. premium million So as you significant $XXX if level have and portfolio you but

Aaron Hecht

that Yes, you where do JV guys standpoint? you're the what to to And grow on longer-term, get? my of do. drive How ones can do your think that want get secondly, you and who cross. that then talk expand was the because desire thresholds the income thoughts you longer-term fee to What's just platform question higher kind of only about, big kind from it the JV, plans desire level

Jeff Witherell

Aaron. Yes,

So, the an point in the are size time, is what JVs of do, limitations. can has any outgrowth which our REIT one

And yield the the JV to probably As starting case low go of substantial out we require, in potentially, and is leasing said is past, could going current the this there's it into the obviously then in the be do. that going CapEx properties in Memphis. properties to be some to

And these us more But markets We to that. the that. We're able So, opportunity. even markets, want strategic and it's like really all be income. more in of of a we really buyer little to We fee a these greater product know affords the that products gain a be it's than scale. in JV the markets well.

this So obviously, we type going get all industrial. with any to Madison. of not JV, that like that, On is is lack this think to capital, a of structure really capital us be especially our things financials do and promote for there, reflect -- gravy, they not we'll significant have

balance we REIT this what build in to with REIT, to is mistake the the in the about we our REIT. to do continue it, deals But will do we grow So, the prudently. JV and business accretively is no up make

And tired and of find Their saying everybody it, buy no As their some of to me be Plymouth, don't. but in have that people REITs compensation stock, and REITs know I employees stock. part that into strange. is I some

in we're all So together. this

so overshadow in we're And is to we platform happens But what think see REIT itself. what the you're doing believe don't going JV the I right.

Aaron Hecht

Okay.

want focus of fee start because from to that and really your away plus, services, fair have you your say? REIT is, Is to assets. got much too the scale where focus give to own don't ramping the platform expectation up is core no So

Jeff Witherell

mean, but I say, to our fair assets. is That joint ventures these are

we have JV lot partner. we that presence, table a as bring strong a markets a in so, And to the

stated. you're part, most the in for So, just you've what correct

Aaron Hecht

Thanks for your time, guys.

Jeff Witherell

you. Thank

Operator

ahead. The question Piper Sandler. with comes go from next Goldfarb Alexander Please

Alexander Goldfarb

Good morning. Happy Friday.

two questions. So,

going just First, the to guidance.

include the You guys printed equity. additional first $X.XX. you're the as -- And sorry doesn't XX in guidance you guiding quarter, any said,

assumed you've on acquisitions line sort $X.XX called in somewhere That's that $XXX $X.XX. yields costs, in The et annualized basis, So, annualized. to a of low million of and whether X% range. funding the a obviously credit, that's $X.XX, cetera, the spread get on

only is this partial the obviously, period. So,

get be annualized for if would So, it's $X.XX, going not that in the but to midpoint is gets year. the to all was which you you, your range, full it obviously,

So, rent roll-ups? what the the you leasing you're gets that that XXXs, should of think that? other the Is the acquisitions? the about are Is we in addition low are range from Or that in into are where guidance you're year, the to doing? this some that some of of sort that the driving means growth -- XXXs. areas coming What other somewhere pennies that other maybe high

Jeff Witherell

what first that did think we I ramp from state was Alex, there. Well, the it up in was there going quarter, to

the but guidance we've So, rental given it We quarter, quarter, rate portfolio. haven't for full across first growth. increases the first got year. the we going the got on we've in on it We given given embedded

you, something of early any problem. to macro assume going like But outside -- we're get unless numbers that changes, without So, the can to those and seen last year. I we've event,

Alexander Goldfarb

with go not let's Yes, macros.

we've had enough all think I macros. of

Jeff Witherell

when 'XX, look on great see XXXX And quo a on I out I basis. good. really in status it's things us within But Right.

if the fourth don't you a know tell quarter, up third way. every I every the But to we've can spreads X% get of first into but we quarter, second, if we it on cash which with you releasing to here on you, we this penny, discussion given and goes So, can and give got I XX%, about, quarter. guidance call haven't it every

that's So, we'll how bridge it.

Alexander Goldfarb

saying drive -- to so going that's embedded how is, portfolio that's you're in what the basically delta. growth the it's that Jeff,

Jeff Witherell

Correct.

Alexander Goldfarb

cool. Okay,

going funding. Second the question acquisitions the is and to

cash, satisfy whatever credit $XX $XXX to have have obviously, earlier have million cost of back you this of costs. both Craig's going the you remainder would fund, to of on the where your capacity, call, But the which then line question of million line cheaper equity that the the do imbalance on credit and is creates plus would ample you of So, JV. sort wholly-owned, than of

equity credit, wholly the funding, if I at So, about some do that use JV, remainder you both obviously with the talked and for offset whatever on to line of which guess, needs you point. do be you

do of you gap you more is of costs? cost in internal that credit So, line equity think bridge sort line your your your where in when with that guys modeling,

Jeff Witherell

understands have to you that somebody it. that question, answer to leave to going I Alex, do the but get Dan, don't to have an I'm that?

Dan Wright

at a our market. is I a advantageous reality of think then of in the follow-up is sub detail I the Alex, equity, that roughly the and line equity explore think less call. the obviously cost and cost can cost. But clearly a on we that credit, is within X% factor And existing pricing interest of

crosses is actually at this time, line that that definitely And where point something north we today. So are share where is we of undervalued. think in our price

exact an the price. a Jeff additional market NOI overall into that advantage determined as between drives happen half And same cost beneficial within look year. this our the of taking is is forward debt going At quo market said, drives But second structure, to see by our So, pricing status in move of versus as crossover we to have increase and time, the acquisitions we further further particularly the we would predominantly that on cap. equity the cost position. performance, would

Alexander Goldfarb

Okay. Dan, thank you.

the is the his hit look that point that question, in question. the from the internal my obviously, guys I we where great have is answered you initially portfolio. You growth Craig it equity And which guess in constant thing that dilution offset doesn't the for, of

thank So Dan. you,

Jeff Witherell

you, Alex. Thank

Operator

The next with ahead. go Mehta Securities. question Gaurav National Please comes from

Gaurav Mehta

morning. Good Thanks.

new Kansas looking what hoping liked if that you market any is new markets And I kind you planned to maybe about grow much there? City. a are you about quarter, there talk enter you things How then of are post did City? was other guys which could this You Kansas guys at?

Pen White

our past Yes. Good down going we're properties, to into a Kansas at or of We've entry number markets, as and of a portfolio able create City, markets the looking go feel the don't in right to at like unless other points. we've cluster line. we been calls be a morning. we looking mentioned create

a be our services square vacancy would over absorbed name market, is hospital So It's I it. market. the sector year, Kansas type of and Low think rate. many it's got between first future. a near feet X this our would million City is what you the great financial It's and in right near last record. and the the economic hospitality drivers of sector all

is, from we any able it's don't have are that currently of southeast. think road pipeline and sense when make before, wide looking sale letters down intent that some agreements. the makes and comment or at, some we're new as There And make in to So deep the But are it in well -- other markets announcements. that announcements include purchase will can't we I standpoint. and mostly mentioned an of on I where really diversified our terms is to be markets

Gaurav Mehta

Okay, great.

Second small provide was amount more of question, Maybe a effort it in XXXX? like are of on that expecting some there repurchase seems that? XQ. in of repurchase color share And then you to

Jeff Witherell

I the about hear A Gaurav. whole Are talking series didn't preferred? thing. quite Hi, the you

Gaurav Mehta

Yes.

Jeff Witherell

on. to excess I the advantage And would that. take we of that's is think would when it's been we continue far, the can use do equation the great just just call And the I two of is we a we price right, that. minimal We It's coupon CFO under figured but now, cash. so in think math on that that numbers Yes. that. runs And X.X. mean, years our fantastic

Gaurav Mehta

Thank you. Okay.

Operator

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

Jeff Witherell

call, Great. for have. answer any phones And answer give Plymouth, at as so joining so us own questions always you we Thank everyone, our we’ll much. you. here us. again, Thanks, a Thanks

Operator

The you conference today's now Thank concluded. attending presentation. has for

disconnect. now may You

Plymouth Industrial REIT (PLYM) 26 Feb 212020 Q4 Earnings call transcript