Accessibility StatementSkip Navigation JLL's Capital Markets group secured refinancing for CIP Real Estate and Almanac Realty Investors' diversified portfolio of 42 shallow bay industrial properties PHOENIX, Oct. 20, 2025 /PRNewswire/ -- JLL's Capital Markets group announced today that it has arranged an $820 million refinancing for a national industrial portfolio comprising 42 shallow bay industrial properties totalling 6.1 million square feet across six states. JLL represented the borrower, a joint ventur ...

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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]

Financial Data and Key Metrics Changes - Daily funds from operations (FFO) were $0.76 per fully diluted share, compared to $0.68 per share in Q3 2024, reflecting a positive impact from an insurance claim recovery [8] - Cash same-store NOI growth for the quarter, excluding termination fees, was 6.1%, primarily driven by increases in rental rates on new and renewal leasing [8][10] - In-service occupancy was 94% at quarter end, down 20 basis points from the second quarter [8] Business Line Data and Key Metrics Changes - The overall cash rental rate increase for new and renewal leasing was 32%, with a 37% increase when excluding a large fixed-rate renewal in Central Pennsylvania [6] - Approximately 2.2 million square feet of leases commenced during the quarter, with 400,000 being new leases, 900,000 renewals, and 800,000 for developments and acquisitions [9] Market Data and Key Metrics Changes - Vacancy in Tier 1 U.S. markets was 6.3% at the end of Q3, flat compared to Q2, indicating potential stabilization of national fundamentals [5] - Net absorption in the company's 15 target markets was 11 million square feet in Q3, totaling 22 million for the first three quarters of the year [5] Company Strategy and Development Direction - The company is encouraged by recent development leasing wins and expects increased tenant commitments as tariff uncertainties diminish [12] - The focus remains on markets like South Florida, Greater Philadelphia, Dallas, Houston, and Nashville for future developments [23] Management's Comments on Operating Environment and Future Outlook - Management noted that tenant decision-making remains deliberate due to uncertainties around tariffs, but the fundamental picture is improving [4] - The company anticipates that as tariffs become less of a concern, prospective tenants will be more willing to invest in additional space [12] Other Important Information - The company increased its 2025 NAREIT FFO midpoint by $0.04 to $2.96 per share, primarily due to development leasing successes and lower interest expenses [10] - Bad debt expense for the quarter was $245,000, with a year-to-date total of approximately $750,000, aligning with original guidance [9] Q&A Session Summary Question: What is the delta between the $0.04 FFO range? - The delta is influenced by development leasing, with 300,000 square feet scheduled to lease up by December 31, which does not impact midpoint guidance [15] Question: Can you discuss the transaction market today? - The market for leased assets is very competitive, with significant capital looking to invest, while vacant property and land markets are less robust [16][18] Question: What is the company's appetite for future developments? - The company is considering starts in 2026 in preferred markets and expects yields close to 7% for available opportunities [23][24] Question: Can you elaborate on current market conditions in SoCal? - Demand is increasing, with flat vacancy rates and signs of stabilization in the market, although supply remains high [26][27] Question: How is the company addressing vacancies in Denver and New York? - The company is actively working with prospects for its Denver building and seeing positive absorption in Pennsylvania [30][31] Question: How is the company balancing rate versus occupancy? - The focus is on maximizing net present value, with a willingness to offer concessions if it leads to better long-term rates [66]

Portfolio Composition - As of September 30, 2025, the total portfolio comprised 417 properties, including 414 in service, 3 completed developments not in service, and 6 properties under construction[32] - The in-service portfolio's gross leasable area (GLA) totaled 68,526,496 square feet with an occupancy rate of 940%[32] - The company's same-store pool consisted of 395 properties, representing 63,390,096 square feet, which is 93% of the in-service square footage[34] Financial Performance - For the three months ended September 30, 2025, lease revenue was $179424 thousand, compared to $165909 thousand for the same period in 2024[15] - Net income available to common stockholders for the three months ended September 30, 2025, was $65306 thousand, compared to $99363 thousand for the same period in 2024[15] - Funds From Operations (FFO) for the three months ended September 30, 2025, was $103514 thousand, compared to $92479 thousand for the same period in 2024[16] - Same Store Revenues increased by 82% for the three months ended September 30, 2025, reaching $165101 thousand[34] Debt Analysis - As of September 30, 2025, total debt outstanding was $2412834 thousand, with a weighted average maturity of 38 years[21,22] - The weighted average interest rate on total debt was 411% for the three months ended September 30, 2025[22] Acquisitions and Dispositions - Total property acquisitions in 2025 amounted to $1463 million, including the purchase of Camelback 303 Buildings A & B in Phoenix for $1200 million[48] - Property sales in 2025 totaled $269 million, including the sale of 28435 Automation Blvd & 47711 Clipper Street in Detroit for $119 million[62]

This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Dive Brief: Prologis raised its full-year earnings guidance on Wednesday as executives noted an improved outlook around tariff-related volatility, with President Dan Letter saying on the company earnings call that customers have "definitely become more desensitized to the short-term noise as they look at making long-term decisions.” The San Francisco-based industrial rea ...

Core Insights - The industrial real-estate owner's revenue increased by 9% year-over-year in the third quarter [1] Group 1 - The revenue growth indicates a positive trend in the industrial real estate sector [1]

Core Insights - Zacks offers various investment opportunities and tools aimed at long-term success in the stock market [1] - The Zacks Focus List is a curated portfolio of 50 stocks expected to outperform the market over the next 12 months [3][4] Performance Metrics - In 2020, the Focus List gained 13.85% annually, outperforming the S&P 500's return of 9.38% [5] - Cumulatively, from February 1, 1996, to March 31, 2021, the Focus List returned 2,519.23%, while the S&P 500 returned 854.95% [5] Methodology - Stocks for the Focus List are selected based on earnings estimate revisions, which reflect analysts' expectations of growth and profitability [6] - The Zacks Rank, a proprietary stock-rating model, utilizes changes in quarterly earnings expectations to aid in portfolio building [8] Zacks Rank Components - The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise, which are recalculated nightly [9] - Stocks in the Focus List are primarily from 1 (Strong Buy) or 2 (Buy) ranked companies, indicating a bullish earnings consensus among analysts [9] Case Study: Prologis (PLD) - Prologis, a leading industrial real estate investment trust, was added to the Focus List on June 3, 2020, at $95.46 per share and has since increased by 20.94% to $115.45 [11][12] - Recent upward revisions in earnings estimates for fiscal 2025 and an average earnings surprise of 4.9% highlight Prologis's strong performance [12]

Group 1: Dividend Increases - Terreno Realty has raised its dividends for 13 consecutive years, with the latest increase from $0.49 to $0.52 per share, resulting in an annual figure of $2.08 per share and a dividend yield of 3.61% [3][4] - Trinity Industries has increased its dividends for 15 consecutive years, with the most recent hike from $0.28 to $0.30 per share, equating to an annual figure of $1.20 per share and a dividend yield of 4.31% [6] - Stanley Black & Decker is recognized as a global provider of tools and outdoor products, although specific recent dividend information is not provided in the documents [8] Group 2: Financial Performance - Terreno Realty reported annual revenue of $426 million as of June 30, with Q2 2025 revenues of $112.23 million, which missed the consensus estimate of $113.66 million, while EPS of $0.64 exceeded the consensus of $0.49 [4] - Trinity Industries had annual revenue of $2.52 billion as of June 30, with Q2 2025 revenues of $506.20 million and EPS of $0.19, both below consensus estimates [7]