Financial Data and Key Metrics Changes - Core FFO per share was $0.53 for the quarter, an increase of 3.3% compared to last year [12] - Leverage remains low with net debt to annualized run rate adjusted EBITDA equal to 5.1 times [12] - Liquidity stood at $961 million at quarter end [12] - Same store cash NOI growth was 3% for the quarter and 3.2% year to date [14] Business Line Data and Key Metrics Changes - The company leased 90.8% of the operating portfolio square feet expected to lease in 2025, achieving cash leasing spreads of 24.5% [6][13] - During the quarter, 32 leases totaling 4.2 million square feet were commenced, generating cash and straight line leasing spreads of 24.6% and 41.1% respectively [12] - Retention for the quarter was 75.3% [13] Market Data and Key Metrics Changes - The Midwest markets, including Minneapolis, Milwaukee, Louisville, Detroit, and Cleveland, are performing well, while bulk distribution markets like Indianapolis, Columbus, and Memphis are lagging [22] - The transaction market is showing signs of improvement, with an uptick in underwritten deals observed in the last three weeks [7][56] Company Strategy and Development Direction - The company is focusing on its development initiative, with approximately 3 million square feet of development activity across 12 buildings in the US, 42% of which is under construction [9][10] - The company aims to maintain flexibility in building designs to accommodate both multi-tenant and single-tenant leases [77][78] Management's Comments on Operating Environment and Future Outlook - Management noted that while the environment is not back to normal, businesses are making decisions in an uncertain environment, indicating a shift from the previous pause [6] - The company expects cash leasing spreads to be between 23% and 25% for the year [13] - Management expressed optimism about the acquisition market improving, with a narrower bid-ask spread between buyers and sellers [40][56] Other Important Information - Moody's upgraded the company's corporate credit rating to BAA2 with a stable outlook [14] - The company funded $550 million of fixed rate senior unsecured notes with a weighted average fixed interest rate of 5.65% [15] Q&A Session Summary Question: What markets are seeing better early signs of recovery? - Management highlighted strong performance in the Midwest markets and noted some weaker bulk distribution markets [22] Question: Can you discuss the competition from well-funded users? - Management acknowledged that competition from large users is impacting net absorption positively, as it takes some vacancy out of the market [25] Question: What is the status of the acquisition pipeline? - The pipeline consists of 60% one-off assets, 20-30% portfolios, and some development deals, with an active second half of the year anticipated [39][40] Question: How is the company planning to finance upcoming deals? - The company has approximately $1 billion in liquidity and is in the process of refinancing a $300 million term loan due early next year [49][47] Question: What is the status of the development pipeline? - The development pipeline is segmented into in-service, complete but not in service, and under construction, with varying leasing activity across these categories [51][52] Question: How are embedded rent bumps trending? - The weighted average rental escalator across the portfolio is currently 2.9%, with expectations for it to increase as new leases are signed [67]

Financial Data and Key Metrics Changes - Cash basis NOI grew by 2.1% year over year and normalized FFO increased by 54% year over year [7] - Normalized FFO for Q2 2025 was $13,800,000 or $0.21 per share, representing a 54% increase compared to the same quarter last year [16] - NOI was reported at $87,600,000, with cash basis NOI at $84,700,000, both showing increases year over year and sequentially [17] - Interest expense decreased by $1,900,000 compared to the previous year, reflecting the impact of a lower interest rate cap [17] - The net debt to total assets ratio increased slightly to 69.9%, while the net debt coverage ratio remained unchanged at 12 times [18] Business Line Data and Key Metrics Changes - The portfolio consisted of 411 distribution and logistics properties across 39 states, totaling 60,000,000 square feet with a weighted average lease term of 7.6 years [7] - Leasing activity in Q2 totaled 171,000 square feet, with weighted average rental rates 21.1% higher than prior rates for the same space [8] - Year-to-date leasing activity is expected to increase annualized rental revenue by approximately $3,200,000, with one-third yet to be realized [8] Market Data and Key Metrics Changes - ILPT ended the quarter with an occupancy rate of 94.3%, exceeding the national industrial average by 170 basis points [12] - The leasing pipeline totals 7,800,000 square feet, with more than half related to renewal discussions for leases expiring in 2026 and 2027 [13] Company Strategy and Development Direction - The company is focused on evaluating opportunities to improve its balance sheet and reduce leverage, including potential asset sales to enhance liquidity [9] - A property was classified as held for sale at an attractive valuation of $50,000,000, with proceeds expected to partially repay a $700,000,000 fixed-rate mortgage loan [10] - The company remains committed to driving value through new and renewal leasing with strong economics [10] Management's Comments on Operating Environment and Future Outlook - Management believes ILPT is well-positioned to navigate current market conditions and capitalize on long-term fundamentals despite ongoing macroeconomic uncertainty [11] - The company expects normalized FFO for 2025 to be between $0.25 and $0.27 per share based on leasing activity and interest expense savings from refinancing [19] Other Important Information - The quarterly dividend was increased from $0.01 per share to $0.05 per share, reflecting confidence in the company's financial position [7][16] - The refinancing of $1,235,000,000 of floating rate debt into $1,160,000,000 of fixed rate debt is expected to yield annual cash savings of approximately $8,500,000 [15] Q&A Session Summary Question: Were there any one-time earnings this quarter? - A remediation payment of $50,000 related to a scheduled lease termination was noted as the only one-time item [22] Question: Are there plans to refinance the $1,400,000,000 JV debt? - The company is actively evaluating options for refinancing the JV debt [23] Question: Should more properties be expected for sale in the coming quarters? - While there are no immediate plans, the company is evaluating opportunities and may consider additional properties for disposition in the second half of the year or early 2026 [24] Question: What factors influenced the timing of the recent refinancing? - The refinancing was driven by the higher interest rate of the previous loan, and the company has time to evaluate options for the Mountain loans [32] Question: What is the current status of the leasing activity in the Hawaiian and Indiana properties? - There has been increased activity in the Indiana property, while the Hawaiian property remains status quo with no significant changes [38]

Portfolio Overview - The company's portfolio consists of 600 buildings across 41 states, totaling 1183 million square feet[9] - The total portfolio occupancy is 963%, with the operating portfolio at 970%[9] - The weighted average lease term is 42 years, with a weighted average rent of $579 per square foot[9] Financial Performance - For the three months ended June 30, 2025, rental income was $207438 thousand, compared to $186467 thousand for the same period in 2024[16] - Net income for the three months ended June 30, 2025, was $51063 thousand, compared to $61074 thousand for the same period in 2024[19] - Same Store Cash NOI increased by 30% to $145266 thousand for the three months ended June 30, 2025, compared to $140984 thousand for the same period in 2024[40] - Core FFO per share/unit - basic is $063 for the three months ended June 30, 2025, compared to $061 for the same period in 2024[22] Capital Structure and Debt - Net Debt to Annualized Run Rate Adjusted EBITDAre ratio is 51x[9] - Liquidity stands at $9612 million[53] - The company's unsecured credit facility has a committed balance of $10000 million, with a principal balance of $510 million and a Term SOFR + 0775% interest rate[56] Acquisitions and Dispositions - In the second quarter of 2025, the company acquired one property in Chicago, IL, with 183200 square feet for $18399 thousand, with a cash capitalization rate of 71%[27] - Disposed of one property in Calhoun, GA, with 151200 square feet for gross proceeds of $9100 thousand in the second quarter of 2025[33]

Financial Data and Key Metrics Changes - Adjusted company FFO for Q2 2025 was $0.16 per diluted common share, totaling approximately $47 million, with guidance for 2025 adjusted company FFO tightened to a range of $0.62 to $0.64 [14][20] - Same store NOI growth for Q2 was 4.7%, with the same store portfolio 98% leased at quarter end [14][15] - Net debt to adjusted EBITDA was 5.8 times at quarter end, down 0.4 turns over the last twelve months [20] Business Line Data and Key Metrics Changes - The company leased approximately 2.4 million square feet year to date, with second generation base and cash based rent spreads of approximately 41% and 46% respectively [9] - The company reached a significant milestone by leasing a 1,100,000 square foot facility in Greenville Spartanburg, contributing $3.7 million of base rent in 2025 [14][10] - Portfolio occupancy increased to 94.1% in Q2, up from 93.3% in Q1 [16] Market Data and Key Metrics Changes - Net absorption in the U.S. was approximately 30 million square feet in Q2, with 20 million square feet occurring in the company's 12 target markets [8] - The construction pipeline in the target markets is approximately 90 million square feet, down nearly 75% from the 2022 peak [9] Company Strategy and Development Direction - The company continues to focus on its investment strategy in 12 target markets, which account for approximately 85% of gross assets, emphasizing positive demographic trends and advanced manufacturing investments [12] - The company is evaluating modest capital recycling opportunities outside of target markets for reinvestment, aiming to be largely earnings neutral [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the core business amid a soft industrial real estate environment and uncertain macroeconomic conditions [7] - The company anticipates lower tenant retention for 2025, with year-end same store occupancy expected to be approximately 97% to 99% [10][15] Other Important Information - The company sold a property in Chillicothe, Ohio for approximately $40 million at a cash capitalization rate of 4.3%, bolstering its cash position [11] - The company has approximately $71 million in cash on the balance sheet at quarter end [20] Q&A Session Summary Question: What drove the low cap rate on the sale? - The sale execution was better than if sold into the investor marketplace, as a user wanted to own the property [23] Question: Can you provide a sense of the magnitude of dispositions in the near term? - The company would test the market with about $100 million of dispositions going forward, optimistic about creating liquidity from assets outside of target markets [25] Question: What has traffic been like for leasing up larger empty boxes? - Activity in Indianapolis has picked up significantly, while Central Florida has seen slower activity but renewed interest recently [26][29] Question: Can you provide an update on lease expirations? - The company expects to backfill the 380,000 square foot facility in Indianapolis quickly, with positive activity noted [34][35] Question: What is the outlook for tenant retention in 2026? - Strong retention is expected, with a few tenants potentially moving out, but overall positive outlook for renewals [38] Question: Are there opportunities within the land bank? - There is potential interest in build-to-suit projects, particularly in Columbus, where the market has tightened significantly [40] Question: Will the cold storage or office JV properties be considered for sale? - Those portfolios are considered static, with one potential opportunity in the office JV [46] Question: How does the company view share repurchase versus acquisitions? - The priority is to generate more EBITDA and reduce net debt to EBITDA, with share repurchase being a potential part of the strategy [50]

Financial Data and Key Metrics Changes - Adjusted company FFO for Q2 2025 was $0.16 per diluted common share, totaling approximately $47 million, with guidance for 2025 adjusted company FFO tightened to a range of $0.62 to $0.64 [14][20] - Same store NOI growth for Q2 was 4.7%, with the same store portfolio 98% leased at quarter end [14][15] - Net debt to adjusted EBITDA was 5.8 times at quarter end, down 0.4 turns over the last twelve months [20] Business Line Data and Key Metrics Changes - The company leased approximately 2.4 million square feet year to date, with second generation base and cash based rent spreads of approximately 41% and 46% respectively [8][14] - The company achieved a significant milestone by leasing a 1,100,000 square foot development facility in Greenville Spartanburg, contributing approximately $6 million in annual cash base rent [9][14] Market Data and Key Metrics Changes - Net absorption in the U.S. was approximately 30 million square feet in Q2, with 20 million square feet occurring in the company's 12 target markets [7] - The construction pipeline in the target markets is approximately 90 million square feet, down nearly 75% from the 2022 peak [8] Company Strategy and Development Direction - The company continues to focus on its investment strategy in 12 target markets in the Sunbelt and select Lower Midwest states, which account for approximately 85% of gross assets [12] - The company is evaluating modest capital recycling opportunities outside of target markets for reinvestment, expecting to be largely earnings neutral [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the core business amid a soft industrial real estate environment and uncertain macroeconomic backdrop [6] - The company anticipates lower tenant retention for 2025, with year-end same store occupancy expected to be approximately 97% to 99% [10][15] Other Important Information - The company sold a property in Chillicothe, Ohio for approximately $40 million at a cash capitalization rate of 4.3%, bolstering its cash position [11] - The company has approximately $71 million of cash on the balance sheet at quarter end [20] Q&A Session Summary Question: What drove the low cap rate on the sale? - The sale execution was better than if sold into the investor marketplace, as it involved finding a user that wanted to own [23] Question: Can you provide a sense of the magnitude of dispositions in the near term? - The company would test the market with about $100 million of dispositions going forward, optimistic about creating liquidity from assets outside of target markets [24] Question: What traffic has been like for leasing up some of the larger empty boxes? - Activity in Indianapolis has picked up significantly, with several good deals signed, while Central Florida has seen renewed interest but remains slower [26][28] Question: Can you provide an update on lease expirations? - The company expects to backfill the 380,000 square foot facility in Indianapolis quickly, with good activity noted [33] Question: Any update on the land bank and build-to-suit opportunities? - There is continued interest in build-to-suit projects, particularly in Columbus, where the market has tightened significantly [39] Question: Are there any known move outs worth discussing? - The move outs were primarily due to competitive buildings offering better terms, such as tax abatements [60] Question: Is there a point where the company would consider buying back shares? - The priority is to generate more EBITDA and reduce net debt to EBITDA, with share repurchase being part of the mix if feasible [50]

Portfolio Overview - LXP Industrial Trust has gross assets of $4.8 billion and owns 116 properties, with 100% focused on industrial real estate[7] - The portfolio consists of 56.4 million square feet of space, with 48% of tenancy from investment-grade companies[8] - 92% of the portfolio is classified as Class A properties[7] - The portfolio is 94.1% leased with an average rent of $5.14 per square foot[17] Financial Performance and Growth Drivers - The company produced same-store NOI growth of 4.7%[11] - LXP extended 1.3 million square feet of leases year-to-date, increasing Base and Cash Base Rents by 41% and 46%, respectively[11] - Leases expiring through 2030 are estimated to have a ~17% current mark-to-market, potentially increasing initial annual cash rent by $32 million[15, 53] - The company repurchased $28 million of floating rate Trust Preferred Securities at a 5% discount to par[11] Strategic Focus and Market Positioning - LXP is focused on 12 target markets in the Sunbelt and lower Midwest, where population and job growth are 2.3x and 1.7x the national average, respectively[12] - There is $150 billion of advanced manufacturing investment announced in LXP's target markets[12] - The company sold one property for $40 million at a cash capitalization rate of 4.3%[11] - The company has 514 acres of development land available, including 315 acres in Phoenix[68]

Core Insights - FIBRA Prologis reported strong financial results for Q2 2025, with net earnings per CBFI increasing to Ps. 1.8021 (US$0.0915) from Ps. 0.7770 (US$0.0470) in Q2 2024, indicating a significant year-over-year growth [2][3] - The company emphasized its strategic focus on resilient consumption-driven hubs, which has contributed to sustainable growth despite market challenges [3] Financial Performance - Funds from operations (FFO) per CBFI rose to Ps. 1.1634 (US$0.0585) in Q2 2025, compared to Ps. 0.8112 (US$0.0485) in the same quarter of 2024 [2] - As of June 30, 2025, FIBRA Prologis had a leverage ratio of 22.8% and liquidity of approximately Ps. 21.5 billion (US$1.1 billion), which includes Ps. 19.7 billion (US$1.0 billion) of available capacity on its unsecured credit facility [5] Operating Metrics - The period-end occupancy rate was 97.7%, while the average occupancy rate was 98.2%, both showing slight decreases from the previous year [4] - Customer retention improved significantly to 86.0% from 65.8% in Q2 2024, indicating stronger tenant relationships [4] - The net effective rent change was recorded at 68.0%, up from 58.1% in the same period last year, driven by markets such as Monterrey and Mexico City [4][8] Updated Guidance - The updated guidance for FFO per CBFI for 2025 has been revised upwards to a range of US$0.2200 to US$0.2400, reflecting a positive outlook excluding foreign exchange impacts [6]

Group 1 - The article highlights the resurgence of growth stocks, with the S&P 500 reaching an all-time high for the fifth consecutive week, indicating a favorable market environment for capital gains [2] - The focus is on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging, appealing to investors seeking cash dividends [1] - The author emphasizes a preference for defensive stocks with a medium- to long-term investment horizon, reflecting a cautious approach in the current market [2] Group 2 - The article does not provide specific financial advice or recommendations, encouraging readers to conduct their own due diligence before making investment decisions [4][5] - There is a disclosure regarding the author's beneficial long position in specific shares, indicating a personal investment interest that may influence the analysis presented [3]

Company Overview - Vesta's property portfolio encompasses 431 million square feet of manufacturing and logistics facilities[14] - The company's property portfolio is valued at US$386 billion[14] Financial Performance (Q2 2025) - Total revenues reached $6727 million, a 68% increase compared to Q2 2024[20, 29] - Adjusted NOI was $6182 million, up 72% from $5768 million in Q2 2024[20, 29] - Adjusted EBITDA increased by 90% to $5500 million, compared to $5044 million in the same period last year[20, 29] - Vesta FFO stood at $4312 million, a 129% increase year-over-year[20, 31] - Total debt outstanding was $90036 million, representing a leverage ratio of 224%[20] Portfolio Metrics - Total portfolio occupancy was 923%[20] - Stabilized portfolio occupancy was 955%[20] - Same-store portfolio occupancy was 970%[20] Land Bank - Total land bank area is 9263 acres[16] - The market value of the land bank is $20451 million[16] Development Portfolio - The total expected investment in the development portfolio is $9096 million[16] - The development portfolio's GLA is 129 million square feet[16]

Financial Data and Key Metrics Changes - Funds from operations (FFO) were $2.21 per share, up 7.8% for the quarter compared to the prior year, excluding involuntary conversions [8][15] - Quarter-end leasing was 97.1% with occupancy at 96%, while average quarterly occupancy was 95.9%, down 110 basis points from Q2 2024 [8][9] - Cash same store NOI rose 6.4% for the quarter despite lower occupancy [9] - The company’s debt to total market capitalization was 14.2%, with an unadjusted debt to EBITDA ratio of 3.0 times and interest and fixed charge coverage increased to 16 times [16] Business Line Data and Key Metrics Changes - Quarterly re-leasing spreads were 44% GAAP and 30% cash, with year-to-date results at 46% GAAP and 31% cash respectively [8] - The company has the most diversified rent roll in its sector, with the top 10 tenants accounting for only 6.9% of rents, down 90 basis points from last year [9] Market Data and Key Metrics Changes - The market has bifurcated, with smaller spaces (50,000 square feet and below) seeing continued conversion while larger spaces experience elongated decision-making times [11][25] - The company is re-forecasting 2025 starts to $215 million, leaning towards the back end of the year due to current demand levels [12] Company Strategy and Development Direction - The company is focusing on leasing to maintain occupancy and is making quick leasing decisions to adapt to market conditions [10] - The strategy includes targeting geographic and revenue diversity to stabilize earnings regardless of economic conditions [9] - The company aims to capitalize on development opportunities earlier than private peers, leveraging its balance sheet strength and existing tenant expansion needs [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's quality and the resilience of the industrial market despite macroeconomic uncertainties [7][18] - The company anticipates upward pressure on rents as demand stabilizes due to limited availability of modern facilities [14] - Management noted that the current economic environment is expected to improve, leading to potential rent growth as demand picks up [66] Other Important Information - The company invested $61 million in two new properties, increasing its market ownership in Raleigh to approximately 600,000 square feet [10] - The management team has a proven track record and is focused on driving FFO per share growth and enhancing portfolio quality [19] Q&A Session Summary Question: Can you talk about the cadence of leasing through the second quarter and any color you can provide for July? - Management noted that leasing activity was strong in the first quarter and late last year, but the tariff news has caused some hesitation among tenants, leading to slower decision-making [25][28] Question: Can you discuss the expected downside to average month-end occupancy in the third quarter? - Management clarified that the decrease in occupancy is primarily due to under-leased development properties coming online, impacting overall portfolio occupancy [34][35] Question: How are you focusing on occupancy and what mechanisms are you using? - Management indicated that they are not dropping rents significantly but are maintaining yields on projects, with some concessions noted in specific markets like California [43] Question: What are your thoughts on rent growth in the next 12 to 24 months? - Management expressed optimism for continued rent growth, citing low vacancy rates and a strong demand outlook in their key markets [66][105] Question: How do you view the cost of your credit facility versus equity in the back half of the year? - Management highlighted the flexibility of their balance sheet and the potential to utilize their credit facility as needed, while monitoring market conditions closely [72][76] Question: Are you expecting to be active in further supplementing your land bank? - Management acknowledged the challenges in finding good land sites but indicated they would continue to seek opportunities in various markets [88][90]