Financial Data and Key Metrics Changes - Core FFO per share was $0.65 for the quarter, an increase of 8.3% compared to last year [8] - Core FFO guidance for the year has been increased to a range of $2.52 to $2.54 per share, a $0.03 increase at the midpoint [3][11] - Same-store cash NOI grew 3.9% for the quarter and 3.5% year to date [9] Business Line Data and Key Metrics Changes - The company commenced 22 leases totaling 2.2 million square feet, generating cash and straight-line leasing spreads of 27.2% and 40.6%, respectively [8] - Retention for the quarter was 63.4% and 78% for the year [8] - Cash leasing spreads for 2025 are approximately 24%, while for 2026, they are expected to be between 18% and 20% [4][8] Market Data and Key Metrics Changes - National vacancy rates are expected to be around 7% for the next two to three quarters, with an anticipated improvement in the latter half of next year [3] - The company has seen an increase in acquisition opportunities, with a total acquisition volume of $101.5 million for the third quarter [5] Company Strategy and Development Direction - The company is focusing on both acquisitions and development, with a bullish outlook on development due to improving demand [36][88] - A record amount of square footage is expiring in 2026, with 52% of the expected leasing already addressed [4] - The company is actively engaging with tenants to secure renewals ahead of lease expirations [15] Management's Comments on Operating Environment and Future Outlook - Management noted that industrial fundamentals remain stable and are improving, with increased leasing demand [3] - The company is optimistic about the stability in the market and expects further improvements in market rent growth [18] - Management highlighted the importance of tenant engagement and commitment to their spaces, which has contributed to leasing success [4][16] Other Important Information - The company refinanced a $300 million term loan, extending its maturity to March 15, 2030, with a fixed interest rate of 1.7% until February 2026 [9] - Liquidity at quarter end was $904 million, with low leverage at 5.1 times net debt to annualized run-rate adjusted EBITDA [10] Q&A Session Summary Question: What is driving the leasing progress for 2026? - The majority of leasing activity is driven by renewals, with 95% being renewals and 5% new leasing [15] Question: Can you discuss the dynamics across your markets? - The company has not experienced the same volatility as the top five U.S. markets, maintaining occupancy rates better than others [18] Question: What is the outlook for cash leasing spreads? - The company is guiding to 18% to 20% cash leasing spreads for next year, down from 24% this year [26] Question: How is the company approaching development given the improving demand? - The company is bullish on development and is careful with underwriting, aiming for at least a 7% going-in yield [36] Question: What has changed regarding acquisition forecasts? - The company noted stable interest rates and a more stable macroeconomic environment, leading to increased seller engagement [42] Question: Are there any known move-outs for 2026? - There are no material known move-outs, with active negotiations ongoing for large tenants [66]