Earnings call transcript Q4 2022

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Operator

Good day, and welcome to the Plymouth Industrial REIT Fourth Quarter 2022 Earnings Call. All participants will be in listen-only mode. [Operator instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Trip Sullivan of SCR Partners. Please go ahead.

Trip Sullivan

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

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

our section earnings on Our our press which morning results were our found Relations released can supplemental the with the along in Investor and filed of this website, be XX-K SEC. release, Form with

A replay access of Xnd, the be the replay this through The the XXXX. in available release. the shortly conclusion March call press call after are will to numbers provided of earnings

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

deemed this our call, future within future financing potential comments we and prescribed and of the to statements During and other may acquisitions, certain of dividends activities. the portfolio, laws, our related including forward-looking performance meaning the statements statements pipeline by securities investments, be make

represent conference cause to Plymouth's of All forward-looking expectations. differ current are results of risks this materially as statements to date call and the actual uncertainties judgment can subject and that from our

filings in company's disclosures the including company the and the by information review made are urged to disclosed various carefully Investors the risks SEC. other with

are filings SEC. the most and We and to non-GAAP EBITDA. GAAP these but limited measures Definitions measures will not to, core also discuss adjusted included FFO, with AFFO, non-GAAP certain including, our measures, reconciliations the in comparable of

ahead. to Please go the Jeff call over I'll now turn Witherell.

Jeff Witherell

of for vertical and exceptionally office and year. risk property in-house Under XX% category, busy Thanks our thank by close management. today. and XXXX our obvious, the adding integration bringing joining Good in To Trip. we busy Atlanta was portfolio an strategy interesting under an everyone us morning to the expanded stating you

made leased in acquired our million structure. we and capital major strides square of properties, addition, feet, simplifying In X.X $XXX million

forward, Under rising a complete be transaction commitment halt year of constants, the needs, the find this new there the people the along opportunities of of to were with to rates, This in create helped for namely growth internal tenants' of and interesting come the fundamentals to markets, shareholders. fourth strong push our quarter. category, XXXX our market. the to company fellow our responsive value to and Golden rampant was Amid portfolio forefront an in change, backdrop Triangle inflation, few the a the all almost to interest our the to commitment,

collections forecast. exceeding up improved XX.X%, of the to end us for to XX.X% of the up over well from spreads bringing was remained a the were XXXX. $X.XX, cash per the XX.X%, on basis share XX% XX%. year full year top end the for AFFO at was up year. XX.X% our per up Core NOI re-leasing was and Same-store Cash FFO Rent X.X%. Occupancy share midpoint

feel? property do a of seeing remains and with in and asset management how Every a slowdown entire I week, team fundamentals. simple not indications Their feel our We question, you still We're canvass begin good. unchanged. response

tenants. robust. demands us But economy that. if around conversations to velocity date, growth that continues expect the in our natural our coming tenants seen come little have Our renewals to that stress would under see are to space It's that is Leasing and evidence to we begins with be strong very meet needs. manifest to of we their to

optimistic. cautiously is Our XXXX outlook for best as described

announcements seeing Triangle are impacting nearshoring with new catalysts. will the a As on large and of demand we Golden are number Reshoring initiatives Pen describe later, that

markets Triangle with trend that the region. Golden our properties XX% and We are of in front in diversified of our the located on focus

we second believe soft all, year or in outcome. of landing uncertain the in positioned well or a the US if we the are either economy hard at be no half we impact While for are for will there that matter,

and management most of expiring terms putting X.X six than all we and signed XX% the for in feet in leases management addressed our XXXX portfolio to asset put the the To we perspective, the time our commenced teams in square was commenced property longer equal XXXX million and have and expirations, months first XXXX years. Our XXXX in overall signed of combined. below lease leases this for

our our real portfolio. that limit ability that's will perspective, to estate a XX% it good While XX% the thing capture temporarily to mark-to-market a from within exists

development is example. another program Our

unlocked have feet on portfolio completed the with or of returns XXX,XXX with this in million X% of X% square value in and construction We the over the investment. to under range land expected held $XX

more year. the returns, weighted half We these second and to hit the of will priority. the get timing of to that's done and the leasing to leasing a is The occupancy top

average than source While two quarters originally hundred to points current growth several have above able returns. market we that's been on anticipated, basis later one at to external

know in online should in from Series there. structure sheet. the eliminated leverage, strong growth as with step same-store preferred which during simplifying organic our will balance the capital higher need gradual facet we year a sequential and the We another big stock XXXX, get B of Our a to is from delevering conversion We where with takes and the EBITDA by see the be we business was properties. growth that new developments place improvement coming

to and priorities an who value that Triangle within important Overall, portfolio. five laser-focused I'm maximizing in more our a have fully the the that to are year outlined we to one of XX achieving I've right our today. the than we team the is have Golden returns years confident are XXXX is next Plymouth, ever for we and markets over going significant deliver each that committed strategy on

Pen, take it you why don't here? from

Pen White

everyone. morning, Good Jeff. Thanks,

some that means. patience months for approach. want several strategic now color to the to what investment our used We term on describe have give I

Our product retrading. recent especially pipeline deals, that come have last back those to active some from continue to of us with been year or is a

discussions also are number and/or our upgrade well opportunities as asset in single in as of joint on transactions venture nature. We markets in programmatic that a are potential

But focus provide remain and continue vertical but at our cap markets, hoped see portfolio. on deals New given dislocation direction unsettled ability we the capital leverage increases rates interest more coming rates the the into with overall strategy to our secure across that to price rental and Year, stabilization in and the discovery present. us We had the to above-market in integration

of reassuring as and chains costs significant multiple to against are onshoring and more more year remains are a and product There onshore will clear third-party these providers on drivers entry logistics real new see rates. before And it estate to be supply steps. ground second trends fewer real clarity two, very positive for companies the higher believe utilize assembly protect in manufacturing One, of We half with import disruptions. we and initiatives absorption, truncating are product in though. continue markets chain demand and strong industrial and decrease few competing fundamentals that deliveries ports low of the our the effect the supply we availability see

XX% a article that reduction XX% by Asia and have manufacturing Bloomberg XXXX. by their publication of referenced executives, employ of XX% shipments reshoring US to to recent begun also Deloitte a stating for estimating of reduction production. A the transport a and XXXX XXX from cited nearshoring survey and [indiscernible] a

Ford Ohio previously the these Golden highlighted on focused of So Triangle, going dollars in Tennessee in Intel Well, we the noted billions to? US where with midyear where we in in in and and our Motor there. building are companies investments as report Honda that Company

have the and Southeast. seen of moving companies We Midwest continuation a to

lower suppliers and pools recent and electric product their of the and leading Executive the reshoring EV close Economic regulatory business likes of Development from the government infrastructure battery The cost Chem sectors XX% excellent skills incentives, survey, industrial Council these and with costs, and environments taxes and life Chief the energy of to the of and semiconductor, living to International space transportation, Vision our and availability quality labor Hyundai, clients, of all and Midwest again and And they vehicle pro friendly lower Group of Northeast here. and be burgeoning stand the are the major on benefit indicated billions to focused primarily or Southeast way the XX% expanding most LG to from CEOs, were relocating and additional XX% companies the manufacturers mostly manufacturing Midwest, to phenomenon, and they considering mid-market only X% needing responded California. that BMW the absorb continue as are the investing benefits, Southwest Southeast. And

to the than XX% attract more So any Triangle the X with GDP, railroads, population, of seven companies US over country, other half and capital. the the Golden and US continues ports region in Class more the of five

for Carolina The and Ohio, based reshoring Florida, XXXX new top markets noted in the due investment. that North Kentucky the to foreign are non-profit direct US jobs adding four in and initiatives reshoring Georgia, in

from chain demand the and more and industrial chain disruptions. supply used supply estate as to real ports show JLL that the of of tapped driver onshore protect against and companies Research main resiliency hired entry, lower import cost was for Reshoring Institute providers CBRE, manufacturing third-party multiple logistic

to important practice to is for And while at backlogs create in And chain remain maintaining goods the as chain industrial has replenished lows protect estate disruptions the further real against the inventory levels driver continue a rest subsided, supply reshoring demand supply will ports. more XXXX. of

million rents any combine this availability, region. Tight for all-time many have XXX could high announced direct an for market to the along the Coast of year. and the the the and requirements in foreign region occupiers congestion top terms in accounting feet This Southeast by port demand, year, over square and high year, in was reshoring West XXX,XXX investment pushed Southeast US jobs

opportunity future. Triangle The we in some we where the see fundamentals strong Golden our remain that time. see for markets for industrial real bottom line That's is

Now it to leasing activity I'd and walk Jim like the to operations. portfolio Connolly through over to turn

Jim Connolly

for fourth million months. square Good leases X.X feet for new of than million Pen. feet during Thanks, with of X.X tenants. the aggregate leases Leases and XXXX totaled million with included square six morning. square leases greater renewal associated quarter X.X commenced These feet leases an

The these for cash X.X and on QX leases rental was rate basis. years renewal XX%. weighted XX.X% lease average rates lease The a term was for increased over prior rates

at the feet, XX.X% least was that four rental year months. prior for million rents. full XXXX, years average increase six was Of X.X of commencing cash on amount, over leases $X.X square the lease with weighted leased we rate term which million For an leased

X.X in resulting feet being the square leased. expire of square XX.X% to XX,XXX leased feet in We only not scheduled million XXXX and

leased the The space that at rate X.X million also We renewal start XX%. feet vacant of overall was XXXX. for was square of XXXX

X.X the total total million square have square scheduled during related X.X a adjustments of which acquisitions includes Through XX.X% we leased expire million leases amount feet to This February for of of XXXX, expirations. feet and terminations. XX, XX represents to early

term expiring renewal transactions rate for average cash The for years. increase new rate was at XX.X%, was these with XX.X% rents XX% weighted for XX.X% of The X.X renewals tenants. weight lease over a

or to increase the new leases We expect range of are increase higher, rate nearing XXXX the as the execution finalized. more overall within significantly tenants with

leased working the XX,XXX projects actively vacant start Maine we of coming remaining and of that are XXXX development the feet during new at been square and Furthermore, our of we Cincinnati There nearing leasing execution. feet prospects online that space are had several lease for development square year. and space Atlanta, XXX,XXX

Approximately XX.X% scheduled associated above February reached tenants. through XXXX renewals square new XX of million expiring X this XX% feet during month leased XX, is and with have with to Also and rents. we cash expire

will our million We arrays X.X over by solar power. capable year last program megawatts of accommodate square approximately with feet initial concluding have the identification the solar XX of over feasibility that considerably rooftop of of advanced generating our

solar of square the The is in XX first solar to expected comprised be and program this XXXX. early leased X.X to community rooftops has phase program feet to been of submitted be across operational million Illinois

due classified this has of as Approximately was the the and XX to XX leasing tenants renovations. Portfolio-wide achieving feet of commencement during XXXX square of being QX, excess buildings in from to points XX% our planned space up the total, yields and mentioned. occupancy repositioned X.X vacant of were stabilized In basis with million at the due X.X%. end XXXX, rollover of long-term XX%, there previously now end space with the

operationally collected are our a active And due there XX, February It XX.X% rents quarter during by we asset teams. level had QX performance rent billed the of agreements. high our through currently of no was control XXXX. and management property to strong Finally,

well relations rates rise, Our after. are looked high tenant buildings buildings level, leased at high to and continue our to a are occupancy at remain the continue

At financial our to this Anthony point, I'll turn it to over discuss results

Anthony Saladino

that the our XXXX midpoint liquidity, Thank leading growth at right with for quarter the reported through on way. some the strong our the walk for then you, add We capitalization bridge organic color year I'll quarterly our and and Jim. guidance. fourth landed results a and

Same-store above year reimbursement full the cash basis the XX.X% supported by in new on high basis, in convert outlook. Same-store a NOI performance which our triple was portfolio, points improved and of sequential XX up to rollover net reflects the us our from leasing lease expense expiring put revenue renewal structures. end as we growth

same-store than year. now end. as approximately the G&A for anticipated. That time leases slightly from net was nearly XX% quarter Triple account is ABR of XX% last of for up more quarter this up

realized a point we XX a improvement revenues. However, year-over-year of as percentage basis

our reflect X on revolver development and point fixed. program, increase increase or continues expense The interest the expected, approximately revolver borrowings our the of in year-over-year. with that our in than remains better only slightly XXX is debt Phase basis SOFR hedged associated not to completing While the

As average B count weighted of shares expected, sequentially Series We Madison's the not we QX. as QX. ATM higher the in share full did the quarter the from utilize experienced the remaining of in count conversion was share a up of during unit

preferred full balance our X.X debt QX this to turn X.X debt at times. with net ended to Turning down to EBITDA times, sheet. plus of QX We a And nearly at year. EBITDA adjusted net from adjusted

total rate debt average or cost December XX, with unsecured a a debt of X.XX% rate interest of through an our with basis. carried fixed total As weighted on of of swaps total of and XX% debt fixed XX% was

that strong, position million as the remains of $XXX.X line million $X.X liquidity performance have actors hand credit, cash in expense escrows Our earlier. presently of $XX.X additional on mentioned capacity we and of plus of operating revolving million an Jeff on

comparable we a Further, remaining have banner range year. large projects, to rental while tightly focus on the and move-outs velocity is sharp rollover no with bumpiness of for the bound. XXXX, in less to year higher we and XXXX executing was execution spreads a leasing. of are And development address at create to the prior a lease-up

Another fund mitigated QX contribute which EBITDA is of development projects to the XXXX, to delevering on is will being variable initially revolver, XXXX. our development sheet by the exposure during online remaining while XXXX during half projected the come now the to rate only expansion QX our factor, of spend, used second and balance way

And of is the full last but effect not conversion from carryover count stock year. preferred the comments B least the the a of year the higher in last Series share of

of paper and several scale last that continue for simplifying and opportunities creating trade-off us capacity over higher this take as allowed While the to was worked structure share greater capital the build delever. to as growth intended count advantage external years, to our we

guidance. XXXX Now to our

basis assumed. or midpoint on We or $X.XX a the are projecting capitalization cash basis includes vacancy prospective a XX% being dispositions core non-specific with no X.XX%, activities acquisitions, to full representing loss. of assumes share in the $X.XX points to square footage. the total approximately XX.X%, FFO range credit This XX.X% X.XX% of portfolio NOI of Same-store occupancy per which and in-place with of main range assumptions $X.XX of growth full the XX of to now

$XX.X percentage a small million, of decline of year-over-year phase assumes and of of and $XX program G&A remaining midpoint million projects our one million to show $XX.X the to a $XX.X in which borrowings of two. improvement as the at a expense Interest development phase $XX.X million sequential would two fund million incremental revenues. to

said for A. arbitrage capacity positive decelerate and A. that, nor to the We revolver under of Series there rates address the ship opportunity are the usage, not the Series the Having is redemption assuming ATM

we story growth in capital larger and And the will those With capital of of our component than much structure options you've Simplification been. believe now things today, the are a the past. take scale, us have of same-store to we've had continue. available than common heard to our portfolio more improvements our we ever care needs is it's and our

Operator, to questions. ready take we're now

Operator

Thank you.

Kim question Instructions] from BMO [Operator first the Capital ahead. We John comes begin session. Please Markets. go will now Our question-and-answer from

John Kim

and X.X% wondering the this through you Thanks year I if could Anthony, at of was morning. good guidance midpoint. the walk NOI same-store

You XX% have be like looks bit. expiring little a talked a about of probably mark-to-market escalators. Looks still it or this shy together, you X.X%. going you But leases of would and that occupancy adding all down at then X% like year, so, it have annual

makes what was difference? just I wondering So a

Anthony Saladino

Yeah. John. Sure,

I think the those feet. from we the former and pool pool acquired encompassing maybe start, includes XXXX in XXXX JV million buildings The square which total to buildings the square I portfolio of about has materially Memphis, now X.X in about XX% to XX growing year-over-year, XX%. footage is believe properties that same-store changed

based latter the transpired growth of Some commencements half the of in XXXX. timing on actually the XXXX in of

from in benefiting of XXXX that. we're full So the effect

a So pool. to little XX% account timing just mark-to-market it is the as for, there same-store of is north the relates and to

I just you found slightly then the and loss. think factors, range credit that that outside on your by based to assumption And use we So for those get somewhere range. of vacancy

John Kim

yields line on at be wondering hurdle with curve funded going I'm for initial going this Where for IRR most or year, yield? is in trending? the SOFR Acquisitions your of you given Okay. the just and that rate credit to just is are it's likely what either looking where

Jeff Witherell

Right steady pipeline. Jeff Hey, – we John, it’s fairly a we're now, here. have

We're price rate to I but we're should the kind quarter. for on have this don't these so I days deals. button data an quarter still We exact are hard down; from but pressed obviously. pause map. and of rates have have some do XX point set comparable next say to cap and all have the been pin now, over sidelines, probably obviously, increased, and right -- increase, we Cap going a will through the discovery anywhere seeing basis XXX It's

John Kim

Can SOFR line what you is? of spread credit your to remind us,

Anthony Saladino

Certainly, $XXX it's million over SOFR.

John Kim

Thank Okay. so much. you

Anthony Saladino

right north right line. yeah, X% John, So the X%, just we're now, sitting of on -- about at,

John Kim

Great. you. Thank

Operator

ahead. question Please go comes from Our next Dave from Baird. Rodgers

Dave Rodgers

Yeah. the Jeff Good was Ohio. ever been morning, and on this, and I've I've doing call that most heard. bullish Pen. years, XX

get all take the we that can Midwest. I'll So in here

that. thanks So for

first leasing to I think go the with Jim, regard on to back question, you front. wanted I the numbers to provided.

was a far was said achieved think the There and big XX%. that spreads. you the renewal delta I new so you've XX% around between pretty

get XX% there's this what spread the end level talk might renewal. And over and the you between side wanted then, you'd say, about different? And new delta of any the be those said, kind maybe, to if thought, so. year verify by building next, I also geography, I to then numbers, but of year, the or the a

And does an to these we in Are year? the of rest this for if coming going you're activity to to you get then, what XX% that your XX% the get to the as going related outsized up leases, spread, of in half back the increase year, mark-to-market, mean later the year? or to see

Jim Connolly

renewals accurate Yes. NPI cases, fixed at renewal of usually no you're And some all. The reasons. little rates them. rate, not in some a less there's ones, little several Other increase, cheaper for commission. are because Those a is statements. are One of doing an of and [ph]

So market. there know tenants them the benefit in tenants for is and a the what's doing the

the tenants reaching rate it's any issue of works, backfilling going up had really mean jump very we XXXX we're don't leases some also the are the not they're an a as that we renewals, new we that's numbers have rate, several to the last And couple in year. can't large NPI to up, still them spaces bring and going to going on that so high. I see we But much. and So give what -- increase

Dave Rodgers

Okay. competitive about That's maybe And Pen your Obviously, you supply or Appreciate concern. for in Jeff, markets. been that. helpful. a then, could talk it's

supply? you're there's market But that seeing you but supply to be maybe be is Midwest little in really what higher, a think I competitive of doesn't are seeing. bit of hitting seem terms discussion at what talk a might the competitive case. lot you about It could the

Pen White

record Pen It's just million come feet in year. was feet XXX Dave, which supply. obviously, million about throughout Yes, on Hi been XXX square there's more quarter, market, about a here. was completed square the the the completed last

we're think As with that buildings, it. most certainly we've past, don't of competes the mindful the of said new generally in I supply our but

foot. rates We mindful rate coming That rental products our of are very compares the $X.XX. incremental charged to average in-place of XX% the $X.XX being also averaging are are online, year-over-year square up for new asking that favorably rates still per

that comfortable in. pretty feel in with situation, we the especially that we're markets So

Dave Rodgers

a lot. Thanks

me, Jeff, taking comfortable would For you out the what get preferred?

Jeff Witherell

are Well, we're Dave, what going where I here is, really interest go. to on think rates focused

but at. where So we're to trying availability interests the on line, going figure liquidity, looking we've got we're at out settle obviously to and in

right, I think said mean, great to Scary at future. that past, some be a the think could. we might in X.X% it in point I rate the way, but

I the we you Series just every So look day up, A, know. at so wake Dave,

Dave Rodgers

Understood. Thanks, everyone.

Jeff Witherell

Thank you.

Operator

question next go Markets. Todd ahead. The Please, KeyBanc Thomas from from Capital comes

Todd Thomas

morning. Good Thanks. Hi.

questions, of outlook. couple on guess, and the a Just guidance I

in First, and about of there. the forecast thinking same-store the occupancy, back to occupancy terms

the of are any year, You just the there the there nice an into pickup through little the since bit that has occupancy any you've year? made? guidance, known a of quarter in sense. or moderation change of the start And that and a assumption sort is But factored makes during been a year-end, move-outs which had during

Jeff Witherell

Yes.

non-tenant tightness Clearly, address start across are no and built is specific. assumptions our me or then significant if could vacancy to add conservatism. contemplated conservatism, budgeted Jim markets. known Let as that been the for I mentioned, guidance. occupancy around additional the underscores And necessary. in move-outs the the is The haven't color, largely There

of anticipate the pool duration don't that in of a through we XXXX. bumpiness So lot

Todd Thomas

Got of have see sort rent XXXX onshoring you're the potential portfolio do color market improve? about do The market your to growth rent expecting in trend of change then, and the you you that that how market helpful. And for appreciate And to on and demand in in you're a forecast spoke That's for to growth? you from What rent terms it. that I nearshoring. can relative I rent Okay. XXXX. share? XXXX you mean, growth about, seeing, --

Pen White

Todd, driven top and Yes, market average Memphis, down, and XX% in numbers our of were by would growth say, XXXX, actual market see in growth. general, rent XX% looking between kind Pen about three a Yes, of our rent I we're at here. in weighted X.X% Primarily -- projected year. those market to Atlanta, the XX% actual Columbus markets, last rent XXXX. maybe XX% drifting in for We growth

So across we're of to seeing average about an X.X% X% our markets.

Todd Thomas

And the -- a debt but maturities, -- the not the November Okay. X%. over on What's embedded outcome? the there? $XXX probably for the little what's impact million, what's what's expected on Anthony, then, in -- And a the guidance guidance huge XXXX,

Anthony Saladino

maturity. to The a guidance that conservative addressing takes pretty approach

that facility reflect today, address and to And basis very group. had I XXX the discussions, with another as have sufficient not renew But AIG of under mature the above that to we at we the with debt. bank rate constructive the particular end piece only year. as think, the certainly on we're points we've but that, we of current sit here capacity conversations in extend, becomes

Todd Thomas

All Okay. Great. you. Thank That's helpful. right.

Operator

Please comes Hau Anthony from from go ahead. question next Truist. Our

Anthony Hau

asset $X thanks. bit and you provide only buying year, tripled nearly seems color year. last million Hi, It morning. you this less this more nonrecurring spent guys Can on despite CapEx Good year that guys piece? a $XX million the which

we already well? a should are much nature what And similar is expect buckets? And how that the acquisition other cost? part as the of level of So, of

Anthony Saladino

Anthony, 'XX. attributable the that development spend, taper going and majority is to to of in that's

to development. is point that evaluating, think, provided ongoing deminimis. commentary I but And I balance fairly currently it the total spend were of is that as 'XX. we're relates development a for carryover some don't X essentially Phase Phase some we around There address budget two going to that forecast we

Anthony Hau

Thanks, guys.

Operator

question from Please Maher from Riley FBR. B go next comes The Bryan ahead.

Bryan Maher

Good morning.

that one think shallow be seem some increases, respect much -- doesn't take or would that think deep go guys issues rate getting space and there as pressures there inflationary be between with between acknowledge and give use to that that trying or has tenants much for renew whether get to pretty or Does recession they who actually it's to and to or there's but rent the you are happy on, and space, to that also. there's a face re-leasing the discussion. just So leverage coming, might

Jeff Witherell

them No, indications rates. to trying that for we haven't of leverage seen any

a they year little as to think maybe sooner. willing XX executed. of true But I close the up date some to get the until We doing to this renew the that's wait leases leases They not expiration longer people board. got take them instead across well.

across bag mixed a board. it's So, the

Bryan Maher

two just And more me. for

what operating those the this On but the bear your expense key side, you for it's increases are your outlook are -- is guys in what P&L? guidance, sure embedded costs cost that I'm year? that impacting your

Jeff Witherell

there insurance then and suspects taxes, are Bryan, usual estate the weather-related impacts. Yes, real

increase. sequential a is seeing we're what So,

role increasingly I is for the across on that convert is we I think board consideration there us the of for is of leakage budgeted as as tenant. which that execute legacy The do significant, ultimately the XXXX we a net, the to terms OpEx. the and triple these leases to to continue beyond. in think we'll because less X.X% we balance responsibility But continue of

And so OpEx while see of in impact year-over-year. in we there's an increase on that terms performance, less

Bryan Maher

pretty year more Okay. comments, on it's for to the you And this last become it to that guys you're where about not and optimistic located. offense? hard With industry to see In your take would that you're me. a your think what backdrop, then for specifically just as prepared

Jeff Witherell

Bryan, of the the things on discussed we calls couple last that are play. still in

in responding morning, headlines interest be still higher. rates the are Pen again are very that to there. this seems Market affecting volatile. to deals what a So going really The mentioning, is markets turn, is debt out are that. lot That,

deals So many that there aren't there. out

where on two the are trading, don't last – for really quarters cap industrial we the rates are over good for our where So have data portfolios sector.

to have well. in we as So wait for to that come

One comments thing going and make to It's And where the we is the credit markets not cost going not the capital to I before, so our balance we're sheet. settle of plan. of facility leverage be. just is in in our that's figure leverage make can that acquisitions make not to out settle down, use just up. and adding go on and to kind want interest We're Pen's equity clear rates to – when out and going

So and the which we'll down, offense. out figure really settle until cost then equity, the our affects on of debt of kind markets then

So you'll on I down, offense don't think those on us until acquisitions. settle straight things see

Bryan Maher

you. Thank Okay.

Jeff Witherell

you. Thank

Operator

from comes Mitch question next Our ahead. from Germain Please go JMP Securities.

Mitch Germain

that the further, taking under consideration, bit about equity, might think acquisitions where venture you're or it? into the a be straight obviously, sort of is that comment going some if little to that just way you're Jeff, all

Jeff Witherell

Yeah, that's it. about exactly think Mitch, I to think how

I out. think proved we've that

we've reasons. early about that years the you in a JV, then few ago bought portfolio off I think for we a deal is the of bought and being bought that last back Memphis with we several talked balance sheet year type

continue So to have perspective, reads look at that that discussing. several from we deals up we're we like a JV

first Plymouth of we've we bought we Mark-to-market I opportunities acquisitions, Those $XXX estate. real are product. exist. you straight worth proved out, – quarter year, last think they’re especially think million basically

component. value-add our that's So

But to until can that. UPREIT look continue we'll so JVs and the for and an machine And when market's like we that's be things right. right, acquisition

Mitch Germain

or give full triple the have and what's And a to Great. discussions you with tenants to that switch net take your

Jeff Witherell

can on jump that? Jim

Jim Connolly

success There's we've and the we'll based been Indianapolis at of been pushing there. successful few where had them on are a We've like it a But years. XX% we've it. negotiation Yes. successful. are pushed We a is in market process, tenants probably introduced the years. early been been very just It's rate most about for just back few last that a trend

Mitch Germain

I are and Where which couple guys the nearing underway know, parcels obviously, phase? next completion. then development? projects And -- Great. and development of gearing the up a phase which for What's markets of you next

Jeff Witherell

Mitch. Yes,

in place. are feet So once Phase we Cincinnati, is acquisitions construction. Jacksonville, we ones to square a is we're new have that X, again, under capacity land that but we got XXX,XXX the have one going to in X in that have start which we've and in in added identified tenant several buildings have we And supplement four -- only the of build Phase the additional evaluating,

speculative, the to something past going little to So leased. what is X be but done that's is going really a Phase in we've bit be

I that. -- additional have and like some in think additional land So you things Savannah

is be. little Phase square of we We've footage gone going but to is past X going a So that to be, that's identified really what that. what bit haven't

So we're to get Phase things we out going see to X. how before play

Mitch Germain

Got so you. Thank you much

Jeff Witherell

Mitch. Thanks, Yes.

Operator

queue. There back concludes are turn Witherell would session. in This more to closing no Jeff question-and-answer remarks. the the to I over any for our like questions conference

Jeff Witherell

Great. Thank you.

us joining for today. thanks, So everyone,

questions for to usual we're next you and follow-up As quarter. look Thank forward available you. seeing as

Operator

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

now You may disconnect.

Plymouth Industrial REIT (PLYM) 23 Feb 232022 Q4 Earnings call transcript