PLYM - Earnings call transcript Q4 2024 | Plymouth Industrial REIT, Inc.

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Operator

Good morning, and welcome to the Plymouth Industrial REIT conference call to review the company's results for the fourth quarter of 2024. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to John Wilfong of Investor Relations. Please go ahead.

Unknown Executive

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

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

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

will of We Chief today Executive in Management; General Hayward, Asset Connolly, Chief remarks. and is Saladino, Anthony With Jim President and and Anne reference me information this Officer; Financial Counsel. Chairman President Jeff Vice Witherell, Officer; our Executive

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

Jeffrey Witherell

go in some few months thank with to John. I'll Q&A. a capital Thanks, Street. joining then highlights to big us view Sixth made respects. we'll transaction we I us propel first, and for for We've announcements that hit the this our and can announced accretive as relating few strategic securing today. several August, growth. Good In you late this morning, past transformative

Chicago to their recap Street partner for secured sourced valuation who marker in a Sixth on tremendous notably, real largest up has acquisitions. a with million capital our Most and platform. out continued we the We portfolio estate build JV in to $XXX put

refinancing of enhanced maturities loans, of increase to With the enhanced and upsizing pursue also other unsecured capacity extended the to facilities our billion. and unsecured in we've borrowing one the and our term this credit $X.X debt. with the revolver We significantly our recasting ability

addresses our combination investment The Sixth needs. Street's of capital current borrowing capacity fully and expanded

Our both be leasing, themes quarters. deployment, capital XXXX on will coming in which focus the will be key for and opportunities of

and we some the that Our in commentary leasing prior well challenges we tenant release prepared and also as faced didn't as quarter deployment earnings anticipate. discussed

are we to However, portfolio's XXX,XXX navigate challenges particularly in conditions our under rentable favorable, remaining confident lease spaces. and is these in wholly square XX% the over ability feet, XX% owned concentrated. remain and square our our of where leases buildings of Market footage

tightening our square we balance anticipate the of we totaled we Cincinnati in as Historically, address XXX,XXX this unlock in value-added and a remaining of our activities our across support we take expirations. newly mark-to-market made momentum our to solid strong segment deployment. The approximately expirations, high XXXX for lease progress supply million, through Memphis expect acquisitions we've and to As value portfolio, continue efforts. $XX.X we portfolio. capital maintained We've on occupancy also feet care leasing and acquired recycling

nearly with square strategically are Our place, $X know in to existing We billion in opportunities our pipeline our capital positioned and feet the well scale. expand markets. XX we acquisitions markets potential of all now and million with exceeds these now in located these

to now and questions. it further we providing leasing I look strategies. over our coming deployment on turn forward the capital like to updates for to operator the months would as execute in I

Operator

is And Eric the from Instructions] Capital Borden [Operator first from Markets. BMO question

Eric Borden

the whether like be balance a you acquisitions. or Or the talk be JV? your It up Jeff, acquisition? potential just be $XXX to on billion that half based that sounds $X million Could balance the potential last other would on about so, of could comment sheet of about on guidance, around under that would the sheet.

Jeffrey Witherell

pipeline, I are not. total say our JV balance just billion? sheet. we able that's on mean most execute to portfolio I mean be going Probably that billion would that focused I question. be right? material. will likely to $X we're the there's So that for thanks $X all within million Eric, $XXX

bid -- So that the see of on it sheet. balance working is how we're process of we're in right We'll our X The X the in majority But top now. majority is it on develops. markets. or

Eric Borden

then acquisitions are how in the and And of helpful. the guidance, on That's Okay. initial timing rates thinking with those? about acquisitions you cap the

Anthony Saladino

assume we banked the about which Eric, million midpoint, coming of the quarters. over acquisitions, remainder the $XX with is of somewhat be evenly $XXX already At to million deployed

would we continue I to I in It yields. how bid a parameters In navigate process. the X.XX%. could about yield, good think tighten view terms are up of of those initial to and strike that deployment in at as going terms bit But

Eric Borden

Appreciate one more, that. may. I And then if

puts low guidance the on remarks. there, talk the color your and guidance that get to the detailed was Just and of the but hoping the appreciate bridge all XX guidance. the high end Page your to you could of to on takes prepared I just reach of about I end

Anthony Saladino

reset It's midpoint, which million Well, now represents, think, I total now listen, buildings in-place encompassing portfolio. feet, at have the square of XX% portfolio we February. same-store of XX XXX as the the about

we of which particular driver, we about XX% occupancy, subset about portfolio. if QX believe the So have think at to I the to do XXXX back stood this for same-store look

one XXX the and at comprised a just talking is we've Louis. of buildings And X we're of been lot feet. improvement, in that equates of which lease-up assuming about midpoint, million the St. in the about, of X that bps a lot So square Cleveland occupancy over the to X

And with that the could some to more to can some midpoint some to transitory that muting the to the then is that the or beyond of respect a a we don't outcome. extent we the surprises as midpoint, have bit of realize be a protracted, vacancy, leasing drag. a There so little anticipated. the upside deploy deployment think of extent the better And bit result you'll we accelerated on extent than the have a if you to

Operator

question the Capital Thomas is Todd And next from Markets. from KeyBanc

Todd Thomas

of leasing pertains share full -- FedEx vacancies to and to the guidance the bit a square XXX,XXX guidance? you I the just per specifically it what's and FFO, the leases that some site in And timing timing as the can follow of about for -- about that whether the Logistics sort in feet still what little XXX,XXX as So a includes impact wanted the speculative of $X.XX the vacant little And Louis. signed, space wanted up included former ask of I is there is What's leasing commenced on talk of bit on to the whether to going the which leasing. versus it St. forward? year remaining that? commence environment to pertains for like That any

James Connolly

Yes.

All vacant leased been space carryover all that of is commenced already. up that has

So all $XXX,XXX has already commenced.

year. As we the through far came the leasing, on projections that focused are vacancy as in our on

February. You'll end a see this that been There's has of lot through activity the -- which have space from XX.X% has been I leasing shows of gone vacancy. do pickup vacancy to We has XX.X% January XX.X% leased. gone our mean, the already for occupancy big from year, and towards in existing up up up prospects a

expect -- as we well. big leasing including So bulk big space lease,

Todd Thomas

end is speculative or -- the of for in range? any space there vacant the any the leasing guidance included additional Okay. high Does at

Anthony Saladino

Yes.

of, addressed. $XXX,XXX that of to Jim's So million I already is it, spoke point, just $X call about the

So there's that, the that of balance is speculative.

Todd Thomas

St. what's bit can detail in or then the on remaining box, around provide I guidance? assumptions tenant expirations? that can $XXX,XXX a some within of Louis. there like big you expect the notes vacate little more time you around Columbus the bit including And to and little of detail sounds those you the discuss provide line Okay. other renew, 'XX more but the appreciate the noted, sort also that, and a you the that embedded It downsize

James Connolly

for Sure. us. overall bit A of little analysis market

our rental normalizing basically, growth our But mid- to small growth markets, prepared is in So as XXX,XXX low rent and to to expect rate we on on XX% X%. spreads see anything comments, feet. our space, shown under X% midsized square still between in

of -- spaces, pretty from to net space and effective tenants we're down high. the still are they're -- point, And on is as getting so the larger rents a so But kind TI. to keep take looking no

St. it's in as well. but on as lease term, in has in expanding short as afterwards the in other that interest the fairly continuing rest vacancy expressed that exploring tenant locations Now Louis, space and lease, well the of our

contract In and extension some potentially Columbus, the a building. of They the part have leaving. on on ODW is staying under interest expressed planning in

We have ODW at the with building entire and after X be the fill that would we're that immediately moment, working left. they would prospects

to minimal downtime. little see could we So

Operator

And Anderson the from Rich Wedbush. next question be will from

Richard Anderson

it's of from going following wondering to you tenant of of space on lease, I XXX,XXX Louis So that feeling term. commit though has why terms that longer if sort give on it's Can to guess a the the square you of to you're in back understand year. little the bit transaction? want it's optimistic cadence taking funny I got the feet I'm why the sort have there St. it kind to even a story going a XXX,XXX

James Connolly

Yes.

has a The off into contracts on, like the that really This been soon usually on like building. space like the and space, as us is they And finding looking we tenant lease lease additional distributor usually is headquartered -- that current feedback they're they far them we of contract. for we stay large So so told in. the come Europe. signed plan to that one and more from move building this in the based configuration as international

Richard Anderson

Okay.

said also Turning bed? those you to to can kind thought you but a well? if of Cleveland. sort it's back turnaround Can because ago, story it the this, or situations what's X as be. that color I -- turning apologize, be quarter or don't on expectation give faster I of if out quarter I than And to give I if know a the to me you some you would a putting thought

James Connolly

potential has vacancy mean one over the candidate is the And X% really We right But take buildings market just that square to -- is a very market. we little the lined bit. less. but had in down nothing tight there's rate or Yes. slowed one away, a Cleveland up feet. of I XXX,XXX

the So balance. XXX,XXX and vacancy, deals the inked really already expect this leased have leasing we of to on months the We've about up of couple next feel we up. over good

Richard Anderson

has fully lastly know guidance the the that to transaction? And redeployment trying on still sort meat of for of the do Street Or -- million midpoint. million acquisitions Okay. terms me, in entire more the that but at $XXX be $XXX math, the of Sixth would there address? from to then would bone address Would I'm you I the

Anthony Saladino

Rich, we in XXXX. acquired the Memphis it we deployed gets XXX when us remember, of close portfolio because midyear

Operator

from The is Nick next question Baird. from Thillman

Nicholas Thillman

of feet around that that in square Maybe then, million not spoken St. like Louis half for the over core the availability of and portfolio, spoken clarification. kind just is Cleveland points of The X.X includes -- changes the pool. of for, space if Louis space but just Anthony, could into asset same-store is the in former St. to pool. like you elaborate the bucket. moving that on It And was sounds FedEx that that

ODW are Just for in or out wondering pool any GEODIS, 'XX. of the moved those if of if or

James Connolly

Right.

has So that leased available space the has space of yes, pool. the off is additional up been taken -- the taken been

end but this if to occurred February XX. is us, just were to the of end up over already the And the the of addressed, expirations at that number there the you the transactions XX.X was XX XX. between include was So year only unusual and and year, XX of for note, that

So like month a be or XXs X. expect that we in to

Anthony Saladino

as the And It's Louis With the for in has reintroduction ODW previously point, FedEx pool Latty your key is other as was materials. XXX,XXX changed kind repositioning to square not. in the building of the Geodis. we the is that in provided in pool is and is the in pool. same-store To composition building. same-store, respect the foot that Nick, driver of St. said

to So year-over-year in the come contributing that I growth. And portfolio into approximately XXXX. the has bps same-store X believe that's

Nicholas Thillman

kind kind strategies? how are the as Sixth you you mean, the there. And to kind is you of I these the going guess your do continues what transaction Like guys' you levels? and guys to the view helpful. views Board, are pursue I Jeff. obviously market's view? of going Street But announced I you -- if alternative linger are to patient Just for of between think That's guys of Maybe the guys guess, at be buyback. your the stock disconnect

Jeffrey Witherell

complication. I mean, I yes, mean, nobody likes

the I feedback biggest think have. we that's

more not our equity us I because you we're we at correctly. mean, the thing going think and biggest telling is 'XX, pricing 'XX that look the your Street equity give is they're to any stock I in not

interest transformative was So best shareholders, we plenty did what that's capital. we and the of transaction, a of thought in

the Chicago, patient we for ad move feet nauseam JV. good which into It put we've that been a to a that details was all get million can square of entire it about put X into -- X I Nick. we've talked years, and on why mean take

to where NAV in your do our I our stock we where bidding believe -- around and day is. at type And NAV on is where value is versus I price we continue And to the mid- We our look tackling. every XXs. think guess property. blocking our in we're high the market the

from across So a on Columbus, we're our in the building street property. bidding right now

bidder on and you, it's I can not on to tell winning be going So identical. bidders the it. there's we're And it, XX

totally Plymouth and of our anything XX the bids. We're mark. XX, markets, north they're getting XX, using somebody outbid value X.XX%, if it's So a of in to rate all off cap is

what we up well to for is need Cincinnati. like did are good do out going some And that work got property, shorter to find Plymouth. to So need are walls teed that in we deals really we we've the

we think going is And patience. deal have the Street So to fantastic. work Sixth lot of out I a

us. I correctly everything think for is priced

brought we're deployed. months. how So going as glad you in, I'm We'll We get put over few that did the the buyback you to performs next this stock see mentioned, money up. a

for we work it us we But at, that that. to of stock the I But be whether kind believe our on no-brainer to look put based at capital can if properties do where a can you buy going is to price and it's think that's what we back in in.

So good. right looks now, the pipeline

But that. just for about good us. it's option feel we another So

Nicholas Thillman

any just That's as areas as Jeff, responsibilities you're on to the And current there with of focus speak as kind additional different CFO... looking well. you last President Is could areas helpful. one. this your new that Anthony, are of title, than or and

Jeffrey Witherell

just speak beyond a years. processes of overall. on over couple obviously, I'll expertise, to that better it's making company go out proven as Anthony's into that. really I last handle got mean, CFO, has -- No, he's the the acquisitions, But that,

him. move us, and it's for a So a for I think great it's great move

Operator

The next Germain from JMP. Mitch question is Citizens from

Mitch Germain

you Maybe, were you to just relationship, Jeff, I'm their how Sixth relationship with since they mentioning grow curious Street guys? the you are engaged with

Jeffrey Witherell

engaged a across I different Mitch, yes, lead Sixth basis. with talk and on this, platform, with their on so am our are levels Street we daily somewhat engaged regularly.

going is was So take this -- this supposed to be time. It's to transformative.

As worked you know, several that have for we've done out really well JVs Plymouth.

of think I are some JVs them. relationship at Sixth Street that. real is pretty so probably JV. basis think looking -- And I the that's And with deal smart about the a the is we're And we

which growing they're the on sheet because the They're did very focused us we win REIT on deal. warrant going their position, balance to why is

as anticipate well. as we'll and anticipate, well moves some stock we the if So they money, they'll do make and

have came They're it. Sixth on speculate can't $XX into I money, just a announced that, core growing billion core of of money outside some So Street. platform. They

talking basis. shareholders to them term. prove a And about think So that's for to out on really going daily we're I Plymouth long well industrial

Mitch Germain

Okay. That's pricing curious market I'm in some super helpful. today. trends of the about the

I think was you bit higher. more were lower. deals and rates or a about cap maybe Obviously, X.XX% the acquired talked one recent little even of Memphis

we're board? that contraction seeing safe say So mean, is it I to across the

Jeffrey Witherell

correct. think I that's

we're we're markets. works. seeing which been we here see us. are lot industrial. we in starting capital leverage negative on As We're seeing a it person -- But in our never the sit still of that today, baffles seeing how to I've again marketplace, a leverage into negative

were Memphis was And transaction, parts there Memphis. said That I moving there $XXX being this lot of on before about XX-plus said, tenants. portfolio, a the million a and

have that a You one. an small office be building needed sold, to

team We call that of construction industrial is the have center a we process our as we to converting in back speak. --

on. feet, And XXX,XXX of let's parcel square land say, there's then a that build we can vacant

lot those Memphis need going that of all which know the what they're So we can we're We all people value add doing. that that's is in-house, a do And of doing. to components to what portfolio. think are that

So attack that's ground, get why you bidders, there with an weren't why those the have in very office can changes accretively. portfolio like a accomplished many and people you if and that that's Memphis as on

winning think we it. that's And I why were on bidder the

is I want what market Memphis people don't the thing. cap a, that's X situation. So a away that not It's to the special Cincinnati take And is, is an because case. same

got out. We've in tenants. small in Again, work office X-person to do renew them we We'll tenants. of We We're have expand Ohio. some them. have going move We'll Cincinnati. some an to

to much money it. do Like us us Others do cost and aren't. it do it. for we're that, So to equipped doesn't to time

So into And it's building tenants, in XX on get you it. there's I a deal, as but one think I that's -- there's it. where with Columbus, X asset mentioned, bidders

And on the whack out of pricing is going to that. get

So we anybody I deals, rates to continue the rise But to to have we'll for which in is going continue are think it good for think and and it. that going is do here sit don't space. to to industrial are -- cap Plymouth fight

Mitch Germain

That's helpful...

Jeffrey Witherell

It's will tough. we proven we buy continue But execute. and we've can that to

Mitch Germain

me, I for more One might. if

that of preference that of guys commentary there's situations seems the clearly that strategic it discussed. that of investments. you based there's to type on or a leasing more it do And just have call these kind value-enhancing Just front on value-add

And maybe, that the you all of talk situations versus you handle add. in So do have Jeff, all once? factoring about just at existing the talk can more doing -- about guys value if weighing to capabilities

Jeffrey Witherell

in just we square Yes. need -- lot deal, I put on component kind single asset a of of value-add of we lot deal I don't work it the this year, a closed to out mean, XXX,XXX on it. didn't That doesn't but acquisition, Cincinnati feet. a look, a yet, information

portfolio to $XX But a of bought we the the then million lot small going balance we will Plymouth couple next weeks. of work that close is that. I here other that on There's and for said and the in do of the tenants,

estate we're more for We should do built mean we're real people. it. add. So I value

We have the been at afraid short how for to XX not estate we years, of We're real correctly right walls. basis. and understand buy

things of we think a comes estate. too real missed buying many to don't piece I it when

be should we it. So more doing of

But right? public balance You as group, estate to buying business as more real add. cash be We're flow with value that FFO REIT. a in got growth the we should a

to balance at each on the that try acquisition. we that's look So

So it's a That's an how more answer we're doing looked estate. XXX should just real We've times, create easy We not lease for think said got lot times, of in out as value to FFO. REIT, it. I smooth but add. at value be a we're net not your you you've

So there. balance there's a

Operator

And Brendan the is from Lynch question Barclays. next from

Brendan Lynch

that seeing spending? lot specifically there's mentioned your Is you for increase of capital also acquisitions? in an Are Jeff, a into coming you that markets. development

Jeffrey Witherell

No. it's money there'll still of buyers We're a seeing to acquisitions. And run the out lot there's who all it's there. coming I bidders, in of it are. gamut sides. mostly, be going Like from those Brendan, mean just said, XX I and

of a that I it XX% think been you think lot look a is they But on, construction would million mean and we're it's focus square to at of if I to that's get product leased. I continue under think into market there's see like think that, -- X.X feet I Cleveland starting we absorption. of about I development. --

to going new So I because go into XXX,XXX and start only product. feet start Cleveland square build to point spec that of someone to is think available where there's we're at

Columbus a XX% you is that mean building some A. Class like be And Columbus, designated and if places XX-foot new A by of at are obviously, parts clear definition, vacancy. there's Now I look would there's overbuilt. severely Dallas Class

A, outside But it's a vacancy. of the balance X.X% Class

could of Columbus, lot in think product There's building anytime vacancy. just soon. don't I be any So new you a

I So you lot certain once it there's some depends I see think market. think on in spec to think a the And start I I -- capital. development. markets, But think of

Brendan Lynch

of have you're having of That's that helpful. talking or exposure. Maybe them? conversations initiatives? tariffs you're your coastal with than from any exposure more Heartland lot you're a customer you tariffs just impact level, peers with Maybe that and for Obviously, also anything and potential base high seeing more seeing reshoring terms in the your

James Connolly

to various requirements, Yes. we're tariffs, for significant regard With storage increase both BPO companies a short bulk from midterm. and seeing

it as product be the these seems have that like to Some soon to in -- get a in of we warehouses country actively rush and negotiations, into as but possible.

there's piled-up definitely demand. So

Operator

Mueller The next from question from is Mike JPMorgan.

Michael Mueller

is what new rent Apologize timing the, year on the Columbus X that? the on what's if I move-out during missed this. compared the guess, rent? the prospects And But to I

James Connolly

be rents -- of the higher. because July they gross end be building, rent talking we're is the one then or at and would net probably and a September. June. net but And the lease the move-out timing other lease, would the on be -- Well, triple the the July to August go actual may leases subdividing The a effective slightly the would versus rents we're between

Michael Mueller

looking then point? any at And there last known at When question. this expirations, the move-outs similar Okay. chunky you're 'XX are

James Connolly

No. projections 'XX point. There's this at for seems fine. move-outs no

Operator

and our At Take call. very And time, and session thus care. today's you attending your for may this presentation. question-and-answer ladies thank concludes disconnect lines. today's this We concludes much you gentlemen,

Plymouth Industrial REIT (PLYM) 27 Feb 252024 Q4 Earnings call transcript