Financial Data and Key Metrics Changes - The company reported adjusted company FFO for the third quarter at approximately $47 million, with guidance for 2025 adjusted company FFO tightened to a range of $0.63 to $0.64 per share, reflecting the impact of property sales and debt repayment [11][12] - The net debt to adjusted EBITDA ratio improved to 5.2 times, down from 5.8 times, following the sale of properties [5][12] - The company achieved a same store NOI growth of 4% year to date and 2% for the third quarter, with portfolio occupancy increasing to 96.8% from 94.1% in the previous quarter [13][14] Business Line Data and Key Metrics Changes - The sale of two vacant development projects for a gross sale price of $175 million resulted in a 20% premium to the gross book value, driving portfolio occupancy up by 370 basis points [5][6] - The company has successfully leased or sold 98% of its development program, contributing to having the youngest industrial portfolio in the public market [6][10] Market Data and Key Metrics Changes - The investment sales market remains healthy, with the company currently marketing approximately $115 million of assets for sale in non-target markets [7] - The target markets outperformed the broader market, with robust net absorption of approximately 33 million square feet in the company's 12 target markets during the third quarter [7][8] Company Strategy and Development Direction - The company continues to focus on a 12 market investment strategy in the Sun Belt and select lower Midwest states, which account for approximately 85% of gross assets [7] - The company is exploring opportunities for modest spec development next year if tenant demand remains strong, while prioritizing internal growth through contractual rent escalations and occupancy gains [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position, highlighting the successful sale of development projects that addressed critical operating objectives and resulted in higher occupancy and lower leverage [9][19] - The company anticipates a strong 2026 and beyond, focusing on marking rents to market and capitalizing on lease-up opportunities [19] Other Important Information - The Board of Trustees authorized an annualized dividend increase of $0.02 per share, raising the annualized rate to $0.56 per share [9] - A 1-for-5 reverse stock split is scheduled to take effect on November 10, 2025, with trading on a post-split basis beginning on November 11, 2025 [18] Q&A Session Summary Question: Future Capital Deployment Focus - Management indicated a strong internal growth profile and a focus on build-to-suit opportunities, with modest spec development possible if tenant demand remains strong [21][22] Question: Non-Target Market Assets - The company is actively selling assets outside of the 12 target markets to create liquidity for reinvestment, viewing this portfolio as a source of liquidity [25] Question: Disposition Timeline and Cap Rates - Management expects to close on the $115 million of marketed assets by December, with anticipated cap rates in the low sixes [27] Question: Mark-to-Market Expectations - The company projects a 20% mark-to-market for 2026 lease expirations, with an average annual escalator of 2.9% across the portfolio [30][32] Question: Same Store Results and Move-Outs - The decrease in same store results was attributed to move-outs, with a positive impact from contractual rent escalators and renewals [45] Question: Leasing Activity Post Quarter-End - The company reported 1.1 million square feet of leasing post quarter-end, primarily from renewals, including a significant new lease in Indianapolis [64][68]