PLYM - Earnings call transcript Q1 2024 | Plymouth Industrial REIT, Inc.

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Operator

Good morning, and welcome to the Plymouth Industrial REIT First Quarter 2024 Earnings Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Tripp Sullivan. Please go ahead.

Harry Sullivan

you. Thank morning. Good Plymouth company's the conference to call Welcome for Industrial the the results XXXX. first review to REIT quarter of we Results section release earnings our Investor our a issued a of deck night, page. supplemental Quarterly of and prepared and the on Relations copy commentary Last posted our

a these the XX-Q IR of can filings be addition to copy SEC of In found page earnings documents, our on the site.

balance our sheet full year definitions XXXX assumption, operations, deck portfolio and supplemental on and measures most includes our non-GAAP Our the comparable and measures. detailed of guidance to information reconciliations GAAP

will remarks. We information this reference in our

With Anne Vice and President Chairman General Hayward, me of Connolly, Chief Executive Financial Chief Anthony President Officer; Counsel. Jim Saladino, Jeff today and is Executive and Executive Management; Witherell, Vice Officer; Asset

statements this point X and prepared press to the Witherell. read commentary I'd everyone Page I'll now Jeff supplemental and the forward-looking call apply call, supplemental in in They turn over our our to statements encourage to on presentation to made our them you financial our information. of our like release, carefully.

Jeffrey Witherell

and There morning, points I'd to and thank and results, review right like Q&A. information make get commentary to for last today. I joining Good few hope a that the Trip. Thanks, supplemental posted about the we chance are us a everyone night. had you to that then we'll

several from Golden to made new companies Toyota for see month. just continue announcements highlighted of Honda last We've Triangle. the First, a substantial making and we in investments that couple are ones

was the along charge Conference more I in long speaking this Moser, of is and that and recent to to the pleased Harry you leading He's of our highlighted with reshoring strongly BMO household him. at Stifel a becoming see been be report also a any week, I'm encourage in before will name next us, Anthony. from industry. He friend, initiative our follow

of our over balance track on debt, Xx rates to and for We the and operate XX% remain liquidity fixed strong. XXXX. sheet in we're our Second, well during range

unlocked had seeing earlier focused the translates last growth potential to asset sales I'll are in we quarter. little and facility. We a reiterate transaction opportunities than growth credit growth. with Lastly, any FFO accretive intend but that we XXXX on market new a combination fund into what I of We're said use anticipated, the of

it I over for like to operator turn questions. would to the now

Operator

will the We now session. begin question-and-answer

Our first from Markets. come question Thomas will with Todd Capital KeyBanc

Todd Thomas

you on. on just more I today? sounds which and with wanted just touched see like more question, opportunities. you just First Can to investments, a It elaborate little starting to stick bit pipeline you're the

And plus then commentary, some of of the sound Is of there core occupancy based rent or sort that the rates or looking you're value cap to IRRs some on like achieve? to and bookend upside. they these, a way add with kind the

Jeffrey Witherell

it's Todd, Thanks question. Jeff. the for

So the right, be to they basis for all accretive, need going of our investments, in.

some significant that of looking next we years. cash X, are going flow walls, to been the the growth starting product cash over and in at shorter where So realize X, has have Day But continue we the to X. kind on look we're flow for X

There's to some underwrite IRRs don't necessarily. of the to looking at, we but stuff value-add components we're some really

we at itself. both are you start also always for I right in IRR I have assets that, for flow of but REIT, that think market. we growing can't if you the cash much the we are, more takes like mean, active you the really and care basis, JV, at than looking give the are

also up. are deals several answer in that first And part To of portfolios popping asset question, are your the market. there the are several single there

more So side. activity we the are much on seeing for-sale

Todd Thomas

rate in pricing, terms in recent environment? change all adjust expectations the at seen higher seller of or given you have And months Okay. just

Jeffrey Witherell

are. on depends where It you

So of say yes deals some seeing get done. I still markets, negative leverage But would some in that. we're to

mark-to-market buy their pretty we're growth to is that rent some the to get attractive significant we for the so to us. way accretive we and So some hurdles. able on markets, things cap get But counting buy, it's going somebody and rates, I in think in our

Todd Thomas

some Okay. the wanted I market. And to sounds then square foot in like Louis about It the ask facility XXX,XXX St. there. there's interest

active marketing been that. You've

they then FedEx this? Has think the should we out? moving a second for for that rent the to And officially to extent door notice in questions. is, a get a line they like about facility and are commence time that Two do, to question tenant the provided how

some sounds of talking sort also for fit maybe curious some you're of concessions. and space out additional terms be could there It in if required to them their to just like manufacturer I'm groups. time

curious Just be should there. about we what thinking

Jeffrey Witherell

Jeff. This Yes. is

we So would would and office as group small be build in out the it a far them they're out. a wanted as moving because us back giving just have FedEx second for space, is They keep to wouldn't work concerned, office. to the but

it So didn't work. really

calls. is X also the The size It's a you of lot see, getting. large could buildings building video. a a you that the interest generating that building. we're in The the creating video available good of of which as right if There's watch now, some market phone building, very is is only really

Yes, access, would their get start which free bit some your GAAP away a companies interested, them right rent to a right with than early in faster. have cash, been next then which expect. -- that us also manufacturing up. time with giving a rent are set we of that logistics and As away, space addressed rent far year. of We've There's would quicker to the point That's as gives what about the and cash get some be starting that proposal.

Operator

come Our next Thillman question Nick with will Baird. from

Nicholas Thillman

a some peers new being to more your bit We've of heard to just on from deliberate commit commentary tenants space. little

A is being delivered guess expirations. the us at? new like you're larger differential look have So of as we what Class kind I that's kind through remind of rent rents do you that product the like and guys like XXXX, the some between

term on know first half, as the like your fixed we're X then weighed renewals, And X at lease is looking to rate around years. just that's I

to So going to 'XX? are start come go see we into that down we as

James Connolly

Sure. a between more, Class B square foot, some A The least or in and at whether it it's maybe cases, $X especially differential abatements not. includes

some feet tenants As -- far expirations concerned, just tenants. we've as we're weeks, this renewals 'XX recently few our X are working on million of about with last with large in square

have And that limits fixed as in bit I renewals concerned, We far are mostly, the growth side. rate as do 'XX. a mean our

good one renew. to one they're probably and one However, going our assurance of case, that tenants in larger has it's

always they off really But not thing. bad to it's So a burn start next year.

Nicholas Thillman

of commentary then leasing. kind commentary kind tenant discussions? Any Okay. a maybe reluctant in shift be just Or engage behavior, they a are on any maybe to of of conversation? you noticed little delaying more they're helpful. And there renewal in general bit kind would Have

Jeffrey Witherell

Nick, this is Jeff.

find things we better were go on their then are. And the is once out talked what it on be think yes, to we the let's a have they sitting market that deal, or they're I about and the time actually to we out try for say, right? taking where negotiated, that into they XX lease, So see believe where test marketplace signing this were the XX, days. to signature and last and terms well, for seeing negotiate as it's tenants, what year they

And size you square our so there's one when availabilities that. XX,XXX probably need about feet you're talking of XX our if for markets, in not space,

Jim time if that. add can And taking people I that. don't so know their what we've on just seen is to

James Connolly

that's going been trend on been year. Yes, a the past that's for

on going the all to larger is that's the on where companies are they future. doing studies thing Another be logistics want in

won't going the across what sign longer we X they're now, to a get them be it's is lease, because is And the for sign than it's right but instance months trying And board, future. like gauge X-month which their in to leases business just like great. Maersk to

So and right it's it were They for in it's get deals. spot. not trying the just maximize efficient to also better

Nicholas Thillman

me. helpful. That's for Very it

Operator

from Our next Citizens question with will come Germain JMP. Mitch

Mitch Germain

there of emerging the match funding I'm acquisitions. talked some some only assets long-term growth you that a leasing or to some some the not may sort Is the have in at you potential portion and market. you fit for know profile of opportunistic I future? match may investment sales in dispositions, just if do talked about some issues Jeff, address or sellers But a about buyers least activity to potential or curious

Jeffrey Witherell

Mitch. Yes,

kind of covered of we've think past. I the things in some these

or right for We that X sale. have X are now ready buildings

tenant sale want is exit in And as I we this we're -- in market. to Kansas I talk to to the that's anymore, bring we've foot think put building by XX,XXX our well. City some see proceeds. us the that the selling square so mentioned about being don't going you Milwaukee to think I want

that that, on we're quite don't fit. buildings So of top evaluating always

are say we're a I and an buyers round to hate too on want the hot, When to sell of fit prune a markets you listening to because much that kind building potentially. it building. assets line round But always the don't open are keep rectangles. looking about

Mitch Germain

helpful. other item? the of like one-off in any there Or a That's portfolio? you. Are Got options is kind purchase this

Unknown Executive

of on our one-off to a be are item. diminutive a valuation are consider that would purchase in We in-place amount There exercised. this based leases unlikely options

Mitch Germain

structure. longer bit pushback helpful. with curious to structure. of a of discussing little in ] any leases still But the I a know on to That's or of kind when curious push of you about about kind about you've I'm lease Are able this you new [ wants Last getting little Okay. for some are Or me, escalators bit talked term environment? I'm execute. super tenants. you're -- kind

James Connolly

like term of the the it early. to years, it people way, of over last renew but going seemed where have over just that be going want to that start increases X-plus to and the changed a a to was the of It's last there at months, X.X lot lot we're was significant year, rent month. So seeing seems changed go pushback, it

Mitch Germain

Great. much. Thank you so

Jeffrey Witherell

Mitch. Thanks,

Operator

next B. Maher will come Bryan with Our question FBR. Riley from

Bryan Maher

and you little maybe your wondering on center year or prepared opportunities you Toyota comments X think Triangle. on last going you. was more Can next the impact comment Triangle of and other announcements. over Golden if the more on little a I color specifically your could front night, give Honda bit us the and bit you Great. maybe how that thoughts more to released Golden the kind are and you on a And put

Jeffrey Witherell

more the on on there, Golden data we to Triangle, on. we've continue primarily that believe based out And lot in. so the we're markets mean, add a try we're That's and those stay. market put focus this detail we out Bryan, to to here all phenomenon the put that much to the it. I there we've going to are is

for out put every Moser referenced Basically, information documentation. Harry announcements. new some week, There's been prepared the as there's we fantastic in

being getting was we I So in St. being in markets we I United Memphis, one think benefit pointed how in mean, big set into Honda is and States. Canada, of the really bring out like down I Louis. things mean, product for Canada up to their setting up able the Chicago.

come So up if part they're down Louis distributed. of they're St. into come and big a going to places getting and going the product probably into the And Memphis right it to United down from into Texas distribute. like States, Chicago bringing is

need You for that. infrastructure

we you employment lowest infrastructure transportation in have base. you country, you and is Chicago, the the like benefit So being places because the have how in the where have cost

which going of in it are lease our onshoring In secure a what to So mean, future to last power negotiating to be and we then of be we reshoring, the did. to negotiate and these the time. we to St. obviously We're like of building infrastructure. markets. be talked Georgia, think going Georgia in new things one the all Louis labor. in is also to prohibiting a about that's is is really and going I other of Power, order significant contract needed But reshoring places going I factors fairly infrastructure drive with

can is this going to get phenomenon not stop. those you out, things figured If

we in being these benefit infrastructure. think that I the So markets by have

Bryan Maher

we're these like too it look, demand too early to to it -- is is And paper quantify demand, demand we that to in quantify and We're And really it's put -- is pen what bow, the know a have be"? bigger exactly picture space shot going to just early mean, on kind everything. there to of right? is warehousing analysts, coming. Is the "Hey, from this but we to the level I going markets? don't And impact across

Jeffrey Witherell

investment, increase if had I that, investment mean billion XX years. an And right, manufacturing, I to and think look in these is of they for just next but get carry mean you level at you going between wrong, investment the XXXX, and new I Yes. think $XXX in about of I'll XXXX that of numbers manufacturing.

is these all -- this So points. data

put where where manufacturing that's again, new you so And you to -- build to are are in? this going going coming

occupied is is the the think has that XX been they're if is X in this, Nitrile, to about, this -- we've I don't first first medical this Grove of building. one-on-one so gloves, I building and on basically manufacturer know -- now that They're Nitrile by manufacturer talking get City, but mean, and I so years, what think, forth. we'll we're years been American that Ohio for which building really I gloves and for in in the use is United selling. States and the

that, improvements in purchase that to going do we they're and And building. So right? option, going they put so in was them a that's in and why done. to million And that now take expand. $XX needed they're of came to million give to order the And $XX in building to

is and it's the on this So pretty happening to ground, exciting see.

Operator

will next from Our question Anthony with SunTrust. Hau come

Anthony Hau

were I'm extend to guys in XXXX at you Distriplex the able Memphis? lease curious,

James Connolly

lease Maersk we the extended. that That's Yes.

Unknown Executive

Yes.

that the option in another the lease extended 'XX. event already mentioned to extend to beyond months. start they up, January for X that's lined in So have exploring is interested we that Maersk prospect don't Jim -- that the

Anthony Hau

it Got about you any you. know with Canin be guys And Royal early, I and but GEODIS have conversation renewal? had might too

James Connolly

year. one lease extending the we've to last last the their first Yes. last another And of Canin talked were that tenants contacted time Royal renewed on the they us the held that They to GEODIS, they them. year, then about lease minute. till

the date, expect positive full and going is but going last renew. to I they're So we're us to the take to building they're

Anthony Hau

question. be in the know Got negotiation this one you like extend you. guys a the renewal? X-year with Would I just test are or And designed to then last a lease. communication extension currently multiyear

James Connolly

options. option, different several for look They X-year for a asked They X-year option.

Operator

question Our Barclays. come next Instructions] [Operator Lynch with Brendan from will

Brendan Lynch

You have those? you by a year-end? start to in leases soon expiring down to percentage of And a come leases of can little less that X/X than How XXXX. where might as address addressing

James Connolly

be tenants is to around renewing. estimate large I that Yes. that, us We've number already have would about going XX%. that got approached several

So going come I quite bit. down think a it's to

Brendan Lynch

and on interest next facility one give prospect Okay. a That's of little phase of helpful. And at up also you maybe bit in your then in the some of development color leasing on could development, the the the commencing in Cincinnati point near future?

James Connolly

at Plus that in in another part. I'll available -- asking a space, building feet of well. that building the whether the some are now looking over The the take the other current Plus it, that as Fisher Fisher that's space. Park first XX,XXX there. Industrial square main tenant take to Industrial expand in we Park to -- tenants in about Fisher is both prospects they Park, are have that's few that are

lease to very going soon. think it's we up So

Jeffrey Witherell

Yes.

concerned, As we another available minus, do million we in or square have, outline the far land build. as feet, mean, I plus that new the development supplement X.X to is

we pull momentarily. identified have buildings several there where We are and parcels the could permits designed

we're basis going do in it we spec a But the like not on to past. did

So We to think wait we're shows we that's the going before prudent. until ground. break up build-to-suit

Operator

for This well attending there as concludes you It the Thank as are conference. further appears our question-and-answer questions. session no presentation. today's

now disconnect. may You

Plymouth Industrial REIT (PLYM) 2 May 242024 Q1 Earnings call transcript