Financial Data and Key Metrics Changes - Funds from operations (FFO) per share for Q3 2025 was $2.27, an increase of 6.6% compared to the same quarter last year [6][10] - Quarter-end leasing was at 96.7%, with occupancy at 95.9%, and average quarterly occupancy was 95.7%, down 100 basis points from Q3 2023 [6][7] - Cash same-store revenue rose by 6.9% for the quarter and 6.2% year-to-date [7] Business Line Data and Key Metrics Changes - Quarterly releasing spreads were 36% GAAP and 22% cash for leases signed during the quarter, with year-to-date results at 42% and 27% GAAP and cash, respectively [6][10] - The company reported a quarterly retention rate of almost 80%, indicating a cautious nature among tenants [8] Market Data and Key Metrics Changes - The market remains somewhat bifurcated, with improved activity in smaller spaces (50,000 sq ft and below) but larger spaces experiencing delays in leasing [7][8] - The company is reforecasting 2025 starts to $200 million based on current demand levels, with a noted decline in the supply pipeline [9] Company Strategy and Development Direction - The company aims to capitalize on development opportunities earlier than private peers, leveraging its balance sheet strength and existing tenant expansion needs [9] - The focus is on geographic and tenant diversity to stabilize earnings regardless of economic conditions [7][9] - The company is excited about acquiring properties in Raleigh, North Carolina, and new development land in Orlando, as well as new buildings in Northeast Dallas [9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improved market activity and the potential for future growth, despite current delays in leasing [8][9] - The company anticipates that as demand stabilizes, upward pressure on rents will occur due to limited availability of new modern facilities [9][10] - Management highlighted the importance of maintaining a strong balance sheet and being patient in evaluating capital sources [11] Other Important Information - The company’s debt-to-total market capitalization was 14.1%, with an unadjusted debt-to-EBITDA ratio of 2.9x and interest coverage at 17x [11] - Tenant collections remain healthy, with uncollectible rents estimated to be in the 35 to 40 basis point range as a percentage of revenues [13] Q&A Session Summary Question: Expansion on leasing and development pipeline - Management noted that conversations regarding leasing have improved since May, with a high retention rate benefiting the portfolio [18][19] Question: Construction costs and market rents - Construction pricing has decreased by 10% to 12%, and current construction pricing is still yielding acceptable returns [26][27] Question: Development pipeline availability and leasing activity - Management indicated that while there is activity in the development pipeline, the pace of leasing has been slower than desired [31][33] Question: Regional market strengths and weaknesses - The eastern region, particularly Florida and Raleigh, has shown strength, while California markets, especially L.A., have been slower [47][49] Question: Impact of economic conditions on leasing spreads - Management believes that a shift in demand could quickly impact rents, with a low supply environment supporting potential rent increases [55][60] Question: Bad debt levels and tenant watchlist - Bad debt remains low at around 30 to 35 basis points, with no significant changes in the tenant watchlist [68] Question: Interest rates and leverage levels - Management is monitoring interest rates and plans to utilize debt as opportunities arise, maintaining a flexible capital strategy [70][71] Question: Average rent per square foot and GAAP same-store NOI - Management indicated that rental rates remain sticky despite some moderation, with a strong operating year expected to continue [78][80]

Financial Data and Key Metrics Changes - Total income for Q3 2025 reached $72.4 million, a 13.7% year-over-year increase, while total income excluding energy reached $69.9 million, a 14.5% increase [5][17] - Adjusted net operating income increased 14.7% to $66.1 million, with an adjusted NOI margin of 94.4%, reflecting higher operating leverage as revenue growth outpaced costs [17] - Adjusted EBITDA totaled $59.7 million, a 15% increase year-over-year, with a margin expansion of 34 basis points to 85.3% [17] - FFO, including current tax, increased 16.5% year-over-year to $47.4 million [17] - The company revised its full-year 2025 guidance, expecting EBITDA margin to reach 84.5% and revenue growth between 10% and 11% [15][17] Business Line Data and Key Metrics Changes - Total leasing activity for Q3 2025 reached 1.7 million square feet, with 597,000 square feet in new leases and 1.1 million square feet in renewals [5] - The retention rate remains high, and rents on rollovers continue to trend upward, indicating strong tenant relationships [5] - The overall portfolio occupancy dipped slightly to 89.7%, while stabilized and same-store occupancy reached 94.3% and 94.8% respectively [6] Market Data and Key Metrics Changes - In Monterrey, the company completed construction of Apodaca Park, with strong interest from advanced manufacturing and logistics companies [6] - Ciudad Juárez saw a market turnaround with a 130 basis point contraction in overall vacancy and 1.3 million square feet of net absorption during the quarter [9] - Tijuana is experiencing slower recovery due to high vacancy from recent supply influx, but early signs of reactivation are noted [10] - Guadalajara maintained a healthy 2.8% vacancy rate, while Mexico City reported record absorption year-to-date, with a low vacancy of just 2% [11] Company Strategy and Development Direction - The company is focused on its Route 2030 growth strategy, prioritizing markets with visible tenant demand and ensuring capital allocation is tied to quality and market visibility [15] - The company is highly selective in determining future tenants, particularly in Monterrey, which is a key nearshoring destination [7] - The company aims to maintain a conservative capital allocation strategy, focusing on asset recycling and reinvesting in higher growth opportunities [15] Management's Comments on Operating Environment and Future Outlook - Management noted encouraging signs of improvement in leasing momentum and tenant demand, indicating a normalization of the market [4] - The company is confident in its ability to capture anticipated demand in 2026, supported by improving demand indicators [6] - Management emphasized the importance of energy supply and collaboration with federal authorities to enhance reliability for industrial users [12][13] Other Important Information - The company successfully completed a $500 million senior unsecured notes offering, enhancing liquidity and extending maturity profiles [18] - The company sold an 80,604 square feet building in Ciudad Juárez for $5.5 million, approximately 10% above appraised value [15][19] Q&A Session Summary Question: Long-term development pipeline acceleration - Management indicated positive demand signals across most markets, with a focus on mid to long-term plans for Route 2030, analyzing demand trends carefully [22][24] Question: Demand from existing vs. new tenants - Demand is coming from both existing tenants and new tenants, with interest from various industries including electronics and aerospace [25][26] Question: Update on leasing activity in October - Management confirmed leasing activity in various regions, including logistics operations in Ciudad Juárez and Tijuana [29][30] Question: Sustainability of improved EBITDA margins - Management expressed confidence in maintaining strong EBITDA margins due to a focus on expense control and operational efficiency [35][36] Question: Indicators for launching new developments - Decisions are based on internal data, occupancy trends, and direct communication with clients, ensuring alignment with market demand [53][56] Question: Trends in real estate taxes and insurance costs - No major adjustments in insurance costs or real estate taxes were noted, with costs being competitive for tenants [73][75]

Financial Data and Key Metrics Changes - Funds from operations (FFO) per share for Q3 2025 was $2.27, representing a 6.6% increase compared to the same quarter last year [7][13] - Quarter-end leasing was at 96.7% with occupancy at 95.9%, while average quarterly occupancy was 95.7%, down 100 basis points from Q3 2024 [7][8] - Cash same store revenue rose by 6.9% for the quarter and 6.2% year to date [8] - The company has a diversified rent roll, with the top 10 tenants accounting for only 6.9% of rents, down 60 basis points from the previous year [8] Business Line Data and Key Metrics Changes - Quarterly releasing spreads were 36% GAAP and 22% cash for leases signed during the quarter, with year-to-date results slightly higher at 42.7% GAAP and cash respectively [7][8] - The retention rate for tenants rose to almost 80%, indicating a cautious nature among tenants [10] Market Data and Key Metrics Changes - The market remains somewhat bifurcated, with improved activity in smaller spaces (50,000 square feet and below) but larger spaces experiencing delays in leasing [9][10] - The company is reforecasting 2025 starts to 200,000,000 due to current demand levels and a decline in the supply pipeline [11] Company Strategy and Development Direction - The company aims to capitalize on development opportunities earlier than private peers, leveraging its balance sheet strength and existing tenant expansion needs [12] - The focus is on geographic and tenant diversity as strategic paths to stabilize earnings regardless of economic conditions [8] - The company is excited about acquiring properties in Raleigh, North Carolina, and new development land in Orlando [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about macroeconomic conditions improving, which could strengthen consumer and corporate confidence [16] - The company is positioned to benefit from long-term trends such as population migration and evolving logistics chains [18] - Management noted that while construction costs have come down, demand remains a critical factor for development starts [33] Other Important Information - The company has a strong balance sheet with a debt to total market capitalization of 14.1% and an unadjusted debt to EBITDA ratio of 2.9 times [14] - Tenant collections remain healthy, with uncollectible rents estimated to be in the 35 to 40 basis point range as a percentage of revenues [15] Q&A Session Summary Question: Can you expand on leasing and the development pipeline? - Management noted that conversations regarding leasing have improved since May, with a high retention rate benefiting the portfolio [22][24] Question: How have construction costs trended recently? - Construction pricing has come down by about 10% to 12%, but demand remains the primary constraint on starting new projects [31][33] Question: What is the outlook for releasing spreads? - Management believes they can maintain releasing spreads in the mid-30s, with low supply and high demand expected to drive future rent increases [48][50] Question: How are different regional markets performing? - The Eastern Region, particularly Florida and Raleigh, has shown strength, while California and Denver have been slower markets [58][60] Question: What is the current status of bad debt and tenant watch lists? - Bad debt remains low at around 30 to 35 basis points relative to total revenue, with no significant changes in the tenant watch list [84] Question: What interest rate would prompt a change in leverage levels? - Management indicated that they are monitoring interest rates and equity opportunities, with plans to potentially issue $200,000,000 to $250,000,000 in unsecured term loans [85][86]

Financial Data and Key Metrics Changes - Total income for Q3 2025 reached $72.4 million, a 13.7% year-over-year increase, while total income excluding energy was $69.9 million, reflecting a 14.5% increase [7][23] - Adjusted net operating income (NOI) increased 14.7% to $66.1 million, with an adjusted NOI margin of 94.4%, up 16 basis points from the prior year [24] - Adjusted EBITDA totaled $59.7 million, a 15% year-over-year increase, with a margin expansion of 34 basis points to 85.3% [24] - Funds from operations (FFO), excluding current tax, increased 16.5% year-over-year to $47.4 million [24] Business Line Data and Key Metrics Changes - Total leasing activity for Q3 2025 reached 1.7 million square feet, with 597,000 square feet in new leases and 1.1 million square feet in renewals, showing a trailing twelve-month average spread of 12.4% [7][8] - Portfolio occupancy reached 89.7%, while stabilized and same-store occupancy reached 94.3% and 94.8% respectively [8] Market Data and Key Metrics Changes - In Monterrey, strong interest from advanced manufacturing and logistics companies was noted, with the completion of new facilities in Apodaca Park [9][10] - Ciudad Juarez showed early signs of market recovery, with a 130 basis point contraction in overall vacancy and a 190 basis point decline in Class A vacancy [11] - Tijuana experienced slower recovery due to high vacancy rates from recent supply influx, but early signs of reactivation were observed [12][13] - Guadalajara maintained a healthy 2.8% vacancy rate, supported by foreign direct investment in advanced manufacturing sectors [15] Company Strategy and Development Direction - The company is focused on its Route 2030 strategy, aiming to build a diversified industrial platform across key corridors in Mexico [21] - A cautious approach to capital allocation is being maintained, with only one project under construction currently [20] - The company is prioritizing markets with visible tenant demand and is committed to asset recycling to reinvest in higher growth opportunities [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving demand signals across most markets, particularly in Mexico City and Guadalajara, where vacancy rates are low [5][29] - The company is confident in its ability to capture future demand cycles, especially in light of the upcoming USMCA review [30][56] - Management highlighted the importance of energy supply and collaboration with federal authorities to support industrial parks [17][18] Other Important Information - The company completed a €500 million senior unsecured notes offering to enhance liquidity and extend maturity profiles [25] - An acquisition of 330 acres of land in Monterrey was announced, strategically located near the Monterrey International Airport [10][26] Q&A Session Summary Question: Long-term development pipeline acceleration - Management noted positive demand signals across most markets and emphasized careful analysis before resuming new operations [29][30] Question: Demand from existing vs. new tenants - Demand is coming from both existing tenants and new companies, with interest from various industries including electronics and aerospace [33][34] Question: Leasing activity in October - Management confirmed leasing activity in Ciudad Juarez and the Bajio region, with expectations for continued absorption [39][40] Question: Sustainability of EBITDA margin improvement - Management indicated that the focus on maintaining a low cost base will support sustainable EBITDA margins in the future [47][49] Question: Indicators for new development launches - Decisions are based on internal data, occupancy trends, and direct communication with existing tenants [73][76] Question: Trends in lease spreads - Management acknowledged a slight decline in leasing spreads but remains optimistic about sustaining double-digit increases going forward [94][97] Question: Cap rate of recently sold building - The cap rate for the sold building was 6.2%, with a sale price reflecting a 10% premium to appraisal value [104]

Financial Data and Key Metrics Changes - Funds from operations (FFO) per share for Q3 2025 was $2.27, an increase of 6.6% compared to the same quarter last year [6][11] - Quarter-end leasing was at 96.7%, with occupancy at 95.9%, and average quarterly occupancy was 95.7%, down 100 basis points from Q3 2023 [6][7] - Cash same-store NOI rose 6.9% for the quarter and 6.2% year-to-date [7] Business Line Data and Key Metrics Changes - Quarterly releasing spreads were 36% GAAP and 22% cash for leases signed during the quarter, with year-to-date results at 42% and 27% GAAP and cash, respectively [6][11] - Retention rate rose to almost 80%, indicating tenants' cautious nature [8][19] Market Data and Key Metrics Changes - The market remains somewhat bifurcated, with improved activity in smaller spaces (50,000 square feet and below) but larger spaces experiencing delays in decision-making [7][19] - The supply pipeline continues to decline, with historically low starts this quarter, which is expected to put upward pressure on rents as demand stabilizes [9][10] Company Strategy and Development Direction - The company aims to capitalize on development opportunities earlier than private peers, leveraging its balance sheet strength and existing tenant expansion needs [10][15] - The focus remains on geographic and tenant diversity to stabilize earnings regardless of economic conditions [7][11] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improving market conditions and the potential for increased leasing activity as macro uncertainties subside [13][15] - The company is reforecasting 2025 starts to $200 million based on current demand levels, with a focus on maintaining a strong balance sheet [9][12] Other Important Information - The company settled all outstanding forward equity agreements for gross proceeds of $118 million at an average price of $183 per share [11] - Tenant collections remain healthy, with uncollectible rents estimated to be in the 35 to 40 basis point range as a percentage of revenues [12][13] Q&A Session Summary Question: Can you expand on leasing and the development pipeline? - Management noted that conversations with prospects have improved since May, with a high retention rate indicating strong portfolio performance [19][20] Question: How have construction costs trended recently? - Construction pricing has come down by about 10% to 12%, but demand remains the primary constraint on starting new projects [24][25] Question: What is the status of the development pipeline and leasing activity? - Management indicated that while leasing activity has been muted, there is a growing number of prospects, and they are optimistic about future developments [28][33] Question: How do you view the market conditions for next year? - Management expressed hope for a stronger market next year, with potential for increased starts if demand picks up [76][78] Question: What is the current level of bad debt and tenant watchlist? - Bad debt remains low at around 30 to 35 basis points relative to total revenue, with a consistent watchlist [57] Question: How do you see the impact of interest rates on leverage levels? - The company is monitoring interest rates closely and plans to issue $200 million to $250 million in unsecured term loans in the fourth quarter [58][59]

Core Insights - Corporación Inmobiliaria Vesta S.A.B. de C.V. announced its third-quarter results for the period ending September 30, 2025, highlighting its position as a leading industrial real estate company in Mexico [1] Financial Performance - The financial results were prepared in accordance with International Financial Reporting Standards (IFRS), which differ from U.S. GAAP [1]

Core Insights - JLL's Capital Markets group has successfully arranged an $820 million refinancing for a national industrial portfolio consisting of 42 shallow bay industrial properties totaling 6.1 million square feet across six states [1][2]. Company Overview - The refinancing was secured for a joint venture between CIP Real Estate LLC and Almanac Realty Investors, featuring a floating-rate, single-asset single-borrower (SASB) structure led by Wells Fargo, with participation from J.P. Morgan and Goldman Sachs [2][4]. - The portfolio is strategically located in major industrial markets including Atlanta, Dallas-Fort Worth, Charlotte, Tampa, and California's East Bay and Inland Empire, and is currently 91% leased to over 950 unique tenants as of September 2025 [2][3]. Property Details - The properties within the portfolio have an average clear height of 19 feet, an average office finish of approximately 33%, and range in size from 16,176 to 944,655 square feet, with an average property size of 145,925 square feet [3]. - The strategic locations of these properties provide tenants with access to major transportation infrastructure and population centers, catering to logistics, e-commerce, and distribution needs, including last-mile operators and small to medium-sized businesses [3]. Management Commentary - Eric Smyth, CEO of CIP Real Estate, highlighted that this refinancing marks a significant milestone for their partnership with Almanac and reflects the strength of their diversified industrial portfolio, emphasizing the opportunity in the shallow bay industrial sector [4]. - Kevin MacKenzie, President of JLL's Capital Markets, noted that strong sponsorship and strategic execution were key factors in achieving competitive financing terms for this diverse portfolio [5]. JLL's Capital Markets Group - JLL's Capital Markets group is a global provider of capital solutions for real estate investors and occupiers, with over 3,000 specialists worldwide and operations in nearly 50 countries [5].

Core Insights - The article discusses the perspective of a small business owner in Connecticut who supplies equipment and supplies to the restaurant and food service industry, emphasizing the importance of reallocating profits for passive retirement income [1] Group 1: Business Background - The company operates in the restaurant and food service supply sector, indicating a focus on providing essential equipment and supplies [1] - The owner has a background in finance, having earned a CFA charter and CIPM certificate, which adds credibility to their investment insights [1] Group 2: Investment Strategy - The long-term goal of the company is to create a portfolio that generates passive income for retirement, highlighting a strategic approach to financial planning [1] - The owner is sector agnostic, willing to write about any company as long as the business model is understood, suggesting a flexible investment strategy [1]

Financial Data and Key Metrics Changes - Third quarter core FFO was $0.60 per share, up one penny from last quarter, driven by higher occupancy and accretive capital recycling from dispositions and share repurchases [11] - Total portfolio occupancy, including repositioning and redevelopment, was up 260 basis points sequentially [11] - The company raised its full-year 2025 core FFO per share midpoint to $2.40, up $0.01 compared to last quarter [11][12] - Same property cash NOI midpoint increased to 4%, up 150 basis points from last quarter [12] Business Line Data and Key Metrics Changes - Executed 3.3 million square feet of leasing, nearly double last quarter, with healthy leasing spreads [4] - Same property ending occupancy reached 96.8%, a 60 basis point increase compared to the prior quarter [5] - Leasing spreads for comparable leases were 26% and 10% on a net effective and cash basis, respectively [6] Market Data and Key Metrics Changes - Net absorption in the overall 1.8 billion square foot infill Southern California market was nominally positive at 400,000 square feet, while Rexford's portfolio saw a positive net absorption of 1.9 million square feet [5] - Market rents for Rexford's portfolio experienced a decline of 1% sequentially, compared to an overall market decline of 2% [6] Company Strategy and Development Direction - The company focuses on driving long-term value through a high-quality infill Southern California portfolio, strategic asset management, and creative capital allocation [4] - The strategic approach includes evaluating each property for optimal value creation strategies, such as repositioning, redevelopment, or leasing as is [7] - The company is committed to capital allocation that drives the highest risk-adjusted returns while maintaining a low-lever, flexible balance sheet [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving tenant sentiment and strong new leasing activity, despite uncertainties in the macroeconomic environment [5] - The company highlighted strong demand from key growth sectors, which will support favorable long-term industrial fundamentals [7] - Management acknowledged the unpredictability of future demand due to macroeconomic factors but remains encouraged by current market signs [18] Other Important Information - The company executed $150 million of share repurchases funded by disposition proceeds, capturing a 200 basis point spread between the weighted average exit cap rate and implied FFO yield [12] - Approximately $65 million of projected annualized NOI is tied to repositioning and redevelopment projects, with $41 million related to projects that stabilized during the quarter [13] Q&A Session Summary Question: How should we think about the run rate of the 3.3 million square feet leased? - Management noted that this was the highest leasing quarter in their history, with strong retention levels and activity on about 80% of vacant spaces [18] Question: How should we think about the trade-off of boosting occupancy at the expense of elevated concessions? - The focus remains on driving occupancy and cash flow, with proactive demand generation contributing to leasing success [21] Question: How much of the redevelopment pipeline could be sold off? - Management indicated ongoing assessments for dispositions to strengthen quality and growth profiles, with $160 million currently under contract [24] Question: Can you talk about credit and bad debt relative to expectations? - Tenant health remains resilient, with negligible bad debt levels and a watchlist of about 20 tenants [31] Question: What is the occupancy of the assets sold during the quarter? - The occupancy on sold assets was about 67%, with market cap rates assumed for vacant assets [34] Question: How have you adjusted assumptions for assets currently in the pipeline? - The company has stabilized properties at an average yield of 5.8%, with adjustments based on current market conditions [38] Question: How quickly can we pivot from a flat market to growth? - Management highlighted strong tenant health and demand drivers, but noted that macroeconomic uncertainties make it difficult to predict the timing of recovery [42]

Financial Data and Key Metrics Changes - Third quarter core FFO was $0.60 per share, up $0.01 from the previous quarter, driven by higher occupancy and accretive capital recycling from dispositions and share repurchases [13] - Total portfolio occupancy, including repositioning and redevelopment, increased by 260 basis points sequentially [13] - The company raised its full year 2025 core FFO per share midpoint to $2.40, an increase of $0.01 compared to the last quarter [14] Business Line Data and Key Metrics Changes - The company executed 3,300,000 square feet of leasing in the third quarter, nearly double the previous quarter, with healthy leasing spreads [4][6] - Same property ending occupancy reached 96.8%, a 60 basis point increase compared to the prior quarter [6] - Bad debt levels were below historical averages at 30 basis points as a percentage of revenue year to date [7] Market Data and Key Metrics Changes - In the overall 1,800,000,000 square foot infill Southern California market, net absorption was positive at 400,000 square feet, while Rexford's portfolio saw a positive net absorption of 1,900,000 square feet [6] - Market rents in Rexford's portfolio experienced a sequential decline of 1%, compared to a 2% decline in the overall market [7] Company Strategy and Development Direction - The company focuses on three broad themes: high-quality infill Southern California portfolio, strategic asset management, and accretive capital allocation [5] - The company is committed to evaluating each property for optimal value creation strategies, including repositioning, redevelopment, or disposal [9] - The company has a disciplined approach to capital allocation, focusing on the highest risk-adjusted returns while maintaining a low levered, flexible balance sheet [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improved tenant sentiment but acknowledged uncertainty around the macroeconomic environment and tariff policy [5] - The company is encouraged by strong leasing activity and believes that underlying supply-demand dynamics remain strong despite market challenges [8][14] - Management highlighted the importance of maintaining operational efficiency and driving cash flow [67] Other Important Information - The company executed $150,000,000 of share repurchases funded by disposition proceeds, capturing a 200 basis point spread between the weighted average exit cap rate and implied FFO yield [15] - The company has approximately $65,000,000 of projected annualized NOI tied to repositioning and redevelopment projects [15] Q&A Session Summary Question: How should we think about the run rate of the 3,300,000 square feet leased in Q3? - Management noted that this was the highest leasing quarter in their history, with strong positive net absorption and improved tenant decision-making across the portfolio [20][21] Question: How do you balance boosting occupancy at the expense of elevated concessions or rent? - Management emphasized a focus on driving occupancy and cash flow, indicating that they will take immediate NOI opportunities even if it means lower rates or concessions [23][25] Question: How much of the redevelopment pipeline could be sold off? - Management stated they continually assess their portfolio for disposition opportunities to strengthen quality and growth profiles [29][30] Question: What is the current status of credit and bad debt? - Management reported that tenant health remains resilient, with negligible bad debt levels and a cautious reserve for potential disruptions [38][39] Question: What is the occupancy of the assets sold during the quarter? - Management indicated that the occupancy of sold assets was about 7%, and they quoted market cap rates for those vacant assets [42][44] Question: How have stabilized assets performed compared to initial underwriting? - Management noted that stabilized properties had an average yield of 5.8%, with some yields not meeting expectations due to market conditions [50][51] Question: What is the outlook for growth given current market conditions? - Management highlighted favorable market dynamics and tenant health, but acknowledged the difficulty in predicting the timing of a recovery or rent inflection point [56][59]