Core Insights - FIBRA Prologis has announced a recast of its unsecured sustainable credit facility, increasing its capacity and improving terms [1][2] - The company has also secured a new term loan to enhance its debt maturity profile [3][4] Credit Facility Details - The recast credit line has increased from US$400 million to US$500 million, with an accordion feature allowing expansion up to US$1 billion, subject to lender approval [2] - The facility has an initial maturity of May 29, 2028, with two optional one-year extensions, and pricing is currently set at 125 basis points over the applicable benchmark rate [2] - Additional terms include KPI-based pricing adjustments of ±2 basis points and an unused commitment fee of 25 basis points, representing a 5 basis point improvement over the previous facility [2] Term Loan Information - The company secured a US$300 million term loan with a one-year term extendable for up to two additional years, carrying the same 125 basis point spread [3] - This term loan will be used to refinance existing short-term debt, thereby enhancing the company's maturity profile [3] Company Overview - As of March 31, 2025, FIBRA Prologis's portfolio includes 507 investment properties totaling 87.0 million square feet (8.1 million square meters) [4] - The portfolio consists of 345 logistics and manufacturing facilities across six industrial core markets in Mexico, comprising 65.5 million square feet (6.1 million square meters) of Gross Leasing Area (GLA) [4] - Additionally, the company holds 162 buildings with 21.5 million square feet (1.9 million square meters) of non-strategic assets in other markets [4]

Core Viewpoint - Rexford Industrial Realty, Inc. is focused on creating value through investments in industrial properties in Southern California, highlighting strong operational and transaction activity in the second quarter of 2025 [1]. Operating Activity (Second Quarter to Date) - The company executed 1.2 million square feet of new and renewal leases, with an average unit size of 17,000 square feet, including approximately 652,000 square feet of renewal leases and 571,000 square feet of new leases [6]. - Comparable rental rates on new and renewal leases increased by 17% on a net effective basis and by 4% on a cash basis compared to prior rents [6]. - Embedded annual rental rate increases averaged 3.7% for leases executed in the quarter to date [6]. Transaction Activity - The company leased a 191,000-square-foot repositioning project in the Los Angeles – San Gabriel Valley submarket, with a total investment of $31 million, projected to generate a 9.2% unlevered stabilized cash yield [6]. - In May, the company disposed of a property in the San Diego – North County submarket for $31 million, achieving $289 per square foot, with the transaction generating an 11.9% unlevered IRR [6]. - The company has $32 million of dispositions under contract or accepted offer, although there is no guarantee these transactions will close [6].

Core Viewpoint - Plymouth Industrial REIT, Inc. has successfully acquired a 100,420-square-foot warehouse facility in Atlanta for $11.7 million, with an initial net operating income yield of 6.95% [1][2]. Acquisition Details - The newly acquired property is fully leased until May 2030 to a leading consumer self-care products provider, featuring a triple net lease with 3.0% annual rent escalations [2]. - The facility, built in 2014, includes modern features such as tilt-wall construction, 30-foot clear heights, and full climate control, which are essential for the tenant's operations [3]. Portfolio Expansion - This acquisition enhances the Company's existing portfolio in Peachtree City, bringing its total footprint in the Atlanta market to 15 buildings, totaling approximately 2.5 million square feet [3]. Strategic Insights - The CEO of Plymouth Industrial REIT emphasized the focus on identifying accretive opportunities in core markets, targeting well-located industrial assets at discounts to replacement costs, which are expected to yield attractive risk-adjusted returns [4].

Core Viewpoint - Prologis offers a dividend yield of 3.8%, which is high compared to its historical range, and despite current tariff tensions, the long-term outlook remains positive due to a significant internal growth opportunity valued at $42 billion [1][10]. Company Overview - Prologis is a real estate investment trust (REIT) specializing in industrial properties, particularly warehouses in key international trade hubs, with a market capitalization of approximately $100 billion, making it one of the largest publicly traded REITs [2][5]. Asset and Operations - The company owns over 5,800 buildings, encompassing more than 1.3 billion square feet of space across 20 countries, serving around 6,500 customers, and managing $198 billion in assets for institutional investors [4]. Market Position and Strategy - Prologis's size provides advantageous access to capital markets and positions it as an industry consolidator, although its focus on global distribution hubs ties it to global trade dynamics, which are currently affected by tariff issues [5][6]. Growth Opportunities - The undeveloped land owned by Prologis is estimated to support a build-out worth $42 billion, representing a significant long-term growth opportunity relative to its market cap [8][9]. - The company plans to utilize this growth opportunity over time, ensuring that capital investment aligns with tenant demand, thus providing sustained growth potential [9][10].

Core Viewpoint - Industrial real estate stocks experienced significant declines due to tariff announcements but have shown a strong recovery since then [1] Group 1: Company Analysis - Prologis (PLD) is identified as the leading company in the industrial real estate sector, significantly impacted by President Trump's tariff announcements [1] - Despite the initial downturn, Prologis' stock has rebounded sharply, indicating potential for patient investors [1]

Core Viewpoint - EastGroup Properties, Inc. has declared a quarterly cash dividend of $1.40 per share, marking its 182nd consecutive quarterly distribution and reflecting a strong commitment to returning value to shareholders [1] Group 1: Dividend Information - The quarterly cash dividend of $1.40 per share is payable on July 15, 2025, to shareholders of record on June 30, 2025 [1] - This dividend represents an annualized rate of $5.60 per share [1] - EastGroup has maintained or increased its dividend for 32 consecutive years, with increases in 29 of those years, including each of the last 13 years [1] Group 2: Company Overview - EastGroup Properties, Inc. is a self-administered equity real estate investment trust focused on industrial properties in high-growth markets across the United States, particularly in Texas, Florida, California, Arizona, and North Carolina [2] - The company's strategy aims to maximize shareholder value by providing functional, flexible, and quality business distribution space for location-sensitive customers, primarily in the 20,000 to 100,000 square foot range [2] - EastGroup's portfolio currently includes approximately 63.1 million square feet, encompassing development projects and value-add acquisitions in lease-up and under construction [2]

Core Insights - Terreno Realty (TRNO) has executed a new lease for a 3.0-acre improved land parcel in Rancho Dominguez, CA, starting May 20, 2025, and expiring in May 2028, with an environmental waste management services provider as the lessee [1] - The company also renewed a lease for 53,000 square feet with the United States Postal Service in Washington, D.C., and secured a new lease for 70,000 square feet in Woodinville, WA, with a designer and manufacturer of camera movement systems [2] - As of March 31, 2025, TRNO's operating portfolio was 96.6% leased to 663 tenants, with a same-store portfolio of 15.6 million square feet at 97.4% leased, and an improved land portfolio of 47 parcels at 95.1% leased [3] - The company achieved a 34.2% increase in cash rents on new and renewed leases during Q1 2025, with a tenant retention ratio of 71.7% for its operating portfolio [4] - TRNO is positioned for long-term growth with a solid operating platform and healthy balance sheet, although its shares have decreased by 2.3% in the past month compared to the industry's growth of 3.2% [5] Industry Context - Other REITs in the sector, such as VICI Properties and W.P. Carey, are currently rated higher, with VICI's 2025 FFO per share estimated at $2.34, reflecting a year-over-year growth of 3.5%, and WPC's estimated at $4.88, indicating a 3.8% increase from the previous year [6][8]

Investment Rating - The report indicates a stable outlook for the Brisbane industrial market, with prime yields remaining stable and a slight firming observed in secondary yields [9][17][26]. Core Insights - Industrial turnover in Q1 was recorded at $277 million, a decrease from $539 million in Q4, reflecting a return to levels seen earlier in 2023 [9]. - The largest transaction in Q1 was the sale of a multi-warehouse estate at 14 Dixon Street, Yatala, for $102.50 million, reflecting a core market yield of 6.35% [9]. - Vacancy rates increased by 21% in Q1, attributed mainly to new developments and lower leasing take-up, resulting in a total vacancy of 782,562 sqm [10][16]. - Prime net rents showed modest growth, with an increase to $160/sqm net, while secondary rents also saw a rise [22][31]. - Land values continued to appreciate, with sites under 5,000 sqm increasing by 32% year-on-year to $766/sqm [22][46]. Summary by Sections Industrial Market Overview - The Brisbane industrial market experienced a decline in turnover, with Q1 figures reflecting a significant drop compared to Q4 [9]. - Yields remained stable, with prime yields at 6.10% and secondary yields tightening by 64bps year-on-year [9][17]. Vacancy and Leasing Activity - Total vacancy increased to 782,562 sqm, with a vacancy rate of 5.2%, up from 4.3% in Q4-24 [16]. - Leasing activity was down 22% quarter-on-quarter, with a total take-up of 159,483 sqm [16]. Rental Growth and Land Values - Prime rents increased by 6.7% year-on-year, while secondary rents rose by 5.2% [22]. - Land values for smaller lots saw significant growth, with a 26.5% increase for sites 1-5ha [22]. Transaction Highlights - Notable transactions included the sale of properties at 14 Dixon Street and 836-854 Boundary Rd, reflecting strong buyer engagement and yield certainty [9][22].

Financial Data and Key Metrics Changes - Funds from Operations (FFO) and Core FFO per share available to common shareholders were both $0.34 for Q1 2025, unchanged from Q1 2024 [13] - Total operating revenues increased to $37,500,000 in Q1 2025 from $35,700,000 in Q1 2024, while operating expenses rose to $23,900,000 from $23,300,000 [14] - Net assets increased from $1,090,000,000 to $1,160,000,000 due to acquisitions [15] Business Line Data and Key Metrics Changes - Same store rents increased by 6.6% in Q1 2025 compared to Q1 2024, driven by higher property expense recovery revenue and rental rates [13] - Portfolio occupancy remained high at 98.4% as of March 31, 2025 [9] Market Data and Key Metrics Changes - U.S. Treasury yields remain volatile, impacting inflation and economic growth outlooks [6] - Industrial real estate sector showed resilience with net absorption of 23,100,000 square feet in Q1 2025, matching the previous year's levels [7] - Vacancy rates rose modestly to 7%, but remain in line with historical averages [8] Company Strategy and Development Direction - The company aims to increase industrial concentration in its portfolio to at least 70% [9] - Focus on acquiring high-quality industrial assets that are mission-critical to tenants, while selectively disposing of non-core assets [11] - The company is actively working to extend lease terms and support tenant growth through capital improvement initiatives [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second quarter despite macroeconomic uncertainties and tariff pressures [6] - The company has not seen material deterioration in credit quality, even with higher interest rates [12] - Long-term tailwinds from reshoring and onshoring activities are expected to benefit the company [10] Other Important Information - The company has over $99,000,000 in availability via its line of credit and cash on hand, positioning it well for future acquisitions [12] - The common stock dividend is set at $0.30 per share per quarter, with a yield of 8.68% at the last closing price [17] Q&A Session Summary Question: What is the status of the acquisition pipeline? - The company has approximately $70,000,000 under contract and a backlog of about $140,000,000 consisting of 10 assets, indicating increased market activity [21][22] Question: Are sellers more willing to negotiate on price? - The response indicated a combination of increased willingness from sellers and more suitable assets fitting the company's portfolio [27] Question: How is the company preparing for lease expirations in 2026 and 2027? - The company is actively managing lease expirations and is in discussions for renewals, with a focus on industrial properties [30] Question: What is the situation with the Austin office property? - The Austin property is generating positive cash flow, and the company is tracking several requirements and RFPs in the market [44] Question: Are there any changes in acquisition parameters due to government policy? - The company finds light manufacturing more attractive compared to warehouse distribution, aligning with its focus on reshoring and onshoring [45] Question: What is the competition like in the leasing market? - The leasing market is competitive, primarily with end users, and the company remains competitive in securing leases [55]

Financial Data and Key Metrics Changes - Funds from Operations (FFO) and Core FFO per share available to common shareholders were both $0.34 for Q1 2025, unchanged from Q1 2024 [15][21] - Total operating revenues increased to $37,500,000 in Q1 2025 from $35,700,000 in Q1 2024, while operating expenses rose to $23,900,000 from $23,300,000 [16] - Net assets increased from $1,090,000,000 to $1,160,000,000 due to acquisitions [17] Business Line Data and Key Metrics Changes - Same store rents increased by 6.6% in Q1 2025 compared to Q1 2024, driven by higher property expense recovery revenue and rental rates [15] - Portfolio occupancy remained high at 98.4% as of March 31, 2025 [11] Market Data and Key Metrics Changes - U.S. Treasury yields remained volatile, impacting inflation and economic growth outlooks [9] - Industrial real estate sector showed resilience with net absorption of 23,100,000 square feet in Q1 2025, matching the previous year's levels [9] Company Strategy and Development Direction - The company aims to increase industrial concentration in its portfolio to at least 70% and continues to focus on high-quality, mission-critical assets [11][12] - The strategy includes selectively disposing of non-core assets and extending lease terms to capture market opportunities [13] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the industrial real estate sector despite macroeconomic uncertainties and anticipates upward pressure on rental rates due to a slowdown in new construction [10][14] - The company has a strong liquidity position with over $99,000,000 available for acquisitions and has not seen material deterioration in credit quality [14][18] Other Important Information - The company sold one office property for a gain of $377,000 and recognized a selling profit of $3,900,000 from a sales-type lease [11][21] - The common stock dividend is $0.30 per share per quarter, with a yield of 8.68% at the last closing price [18] Q&A Session Summary Question: What is the current acquisition pipeline and market activity for industrial properties? - The company has approximately $70,000,000 in acquisitions expected to close in Q2 and a backlog of about $140,000,000 under review [23][24] Question: How will the acquisitions be funded? - The company has sufficient liquidity and is exploring various financing sources, including potential joint ventures [25] Question: Are sellers more willing to negotiate on price? - The company noted a combination of increased asset availability and willingness from sellers to negotiate, aided by strong broker relationships [29] Question: What is the status of lease expirations for 2026 and 2027? - The company is actively managing lease expirations and is in discussions for upcoming renewals, with a focus on industrial properties [32] Question: What is the situation with the Austin office property? - The Austin property is generating positive cash flow, and the company is actively seeking new tenants [44] Question: Any changes in acquisition parameters due to government policy? - The company finds light manufacturing more attractive compared to warehouse distribution, aligning with its focus on reshoring and onshoring [46] Question: What is the competition like in the leasing market? - The leasing market is competitive, primarily with end users, and the company remains well-positioned to meet tenant needs [56]