Market Overview - The market is at a record high, raising concerns among investors about valuations outpacing fundamentals [1] - Despite market rallies, certain REITs are still presenting attractive dividend yields above 6% [1] Frasers Logistics & Commercial Trust (FLCT) - FLCT focuses on logistics and commercial properties across developed markets including Singapore, Australia, and the UK [2] - The share price has faced pressure due to higher borrowing costs, leading to a 13.8% year-on-year decline in distribution per unit (DPU) to S$0.03 for the half year ended 31 March 2025 [2][3] - FLCT currently offers a distribution yield of 6.7%, with potential upside as interest rates may taper down [3] - The overall portfolio occupancy rate is 93.9%, with logistics & industrial at 99.6% and commercial at 84.1% as of 1HFY25 [3][4] - The weighted average lease expiry (WALE) is 4.6 years for the overall portfolio [4] Mapletree Industrial Trust (MIT) - MIT is an industrial-focused REIT with exposure to data centres and high-specification properties [5] - For the first quarter ended 30 June 2025, MIT's DPU decreased by 4.7% year-on-year to S$0.0327, primarily due to the absence of prior year's divestment gain [5][6] - MIT maintains a dividend yield of around 6.3%, supported by stable rental demand, particularly from data centres [6] - The average portfolio occupancy rate is stable at 91.4%, with a WALE of 4.5 years [6] Mapletree Logistics Trust (MLT) - MLT is a pan-Asian logistics REIT with a diverse portfolio across several countries [9] - For the first quarter ended 30 June 2025, MLT's DPU fell by 12.4% year-on-year due to currency fluctuations, divested assets, weaker performance in China, and higher financing costs [9][10] - The portfolio occupancy rate is 95.7%, with a positive rental reversion of 2.1% [9][10] - MLT's aggregate leverage ratio is steady at 41.2%, with a weighted average borrowing cost of 2.7% per annum [10] Investment Considerations - The REIT sector continues to offer stability and attractive yields, with distribution yields above 6% providing a buffer against market volatility [11][12] - Investors are advised to consider balance sheet strength and asset quality alongside yield when selecting REITs [12] - Established REITs like FLCT, MIT, and MLT are noted for their attractive dividend payouts supported by strong fundamentals [12]

Core Viewpoint - One Liberty Properties, Inc. has declared a quarterly dividend of $0.45 per share, marking its 131st consecutive quarterly dividend and demonstrating a commitment to maintaining or increasing dividends for over 31 years [1]. Company Overview - One Liberty Properties, Inc. is a self-administered and self-managed real estate investment trust (REIT) incorporated in Maryland in 1982 [2]. - The company focuses on acquiring, owning, and managing a geographically diversified portfolio, primarily consisting of industrial properties [2]. - Additional financial and operational information can be found on the company's website, and stakeholders are encouraged to review its Annual Report on Form 10-K and other SEC filings for more details [2].

Core Insights - One Liberty Properties, Inc. has entered into an agreement to acquire an industrial property for $24.0 million, bringing total acquisitions in 2025 to over $112 million [1][10] - The company completed the sale of three retail assets, resulting in a net gain of $6.5 million [1][12] - The transformation of the portfolio towards primarily industrial properties has positively impacted the company's results [3] Operating Results - Rental income for the second quarter of 2025 increased by 12.3% year-over-year to $24.5 million, driven by acquisitions and an increase in same-store rental income [4] - Total operating expenses rose to $15.7 million in Q2 2025 from $14.9 million in Q2 2024, primarily due to higher real estate expenses and increased depreciation [5] Income and Funds from Operations - Net income attributable to One Liberty for Q2 2025 was $8.4 million, or $0.39 per diluted share, down from $9.6 million, or $0.45 per diluted share, in Q2 2024 [7] - Funds from Operations (FFO) increased to $9.7 million, with a per diluted share growth of 4.7% to $0.45 [8] - Adjusted Funds from Operations (AFFO) was $10.6 million, reflecting a diluted per share growth of 2.1% to $0.49 [8] Acquisitions and Dispositions - The company has contracted to acquire a 210,600 square foot industrial property in Blythewood, South Carolina for $24.0 million, with expected annual base rent of approximately $1.5 million [10][11] - The sale of three retail assets generated net proceeds of $18.3 million after mortgage debt repayment [12] Balance Sheet - As of June 30, 2025, One Liberty had total assets of $795.6 million and total debt of $455.0 million [13] - The company reported $19.0 million in cash and cash equivalents, with available liquidity of approximately $115.5 million as of August 1, 2025 [13] Subsequent Events - On July 15, 2025, the company sold a land parcel in Lakewood, Colorado for $3.5 million, expecting to recognize a $2.9 million gain in Q3 2025 [14] - On August 1, 2025, a retail property in Eugene, Oregon was sold for $6.0 million, with an anticipated gain of $2.5 million [15]

Financial Data and Key Metrics Changes - The company reported an AFFO per share of $1.28 for the second quarter, representing a 9.4% increase year-over-year, driven by accretive investment activity and sector-leading rent growth [16] - The full-year AFFO guidance range has been raised to between $4.87 and $4.95 per share, implying a 4.5% year-over-year growth at the midpoint [16][27] - Contractual same-store rent growth for the second quarter was 2.3% year-over-year, with comprehensive same-store rent growth at 4% [17] Business Line Data and Key Metrics Changes - The majority of second-quarter investments were in warehouse and industrial properties, which also represent the bulk of the investment pipeline [10] - The average yield on investments year-to-date is in the mid-nine percent range, one of the highest in the net lease sector [8][10] - The company has closed approximately $550 million in deals during the second quarter at an initial weighted average cap rate of 7.5% [8] Market Data and Key Metrics Changes - Investments were primarily concentrated in the U.S., with a notable increase in deal volume in Europe during the third quarter [10] - The company has identified a strong pipeline of $700 million in advanced-stage deals, with expectations for continued favorable market conditions [9] Company Strategy and Development Direction - The company is focused on maintaining strong investment volume and has raised its investment guidance for the year, expecting to complete $1.4 billion to $1.8 billion in investments [16][27] - The strategy includes accretive sales of non-core assets, with an expectation of achieving over 100 basis points of spread between asset sales and new investments [12] - The company aims to continue building its portfolio through capital projects, including build-to-suits and expansions, with nearly $300 million of projects underway [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining momentum despite broader economic uncertainties, noting no unforeseen disruptions in business or tenant credit events [7][26] - The company is monitoring trade policy developments but has not seen direct impacts on its portfolio [14][56] - Management believes the foundation built this year positions the company well for long-term growth and value creation for shareholders [27] Other Important Information - The company declared a dividend of $0.90 per share, representing a 3.4% increase over the prior year, with a payout ratio of approximately 73% of AFFO per share [25] - The company ended the second quarter with liquidity of about $1.7 billion and a low weighted average cost of debt at 3.1% [23][24] Q&A Session Summary Question: Expectations for comprehensive income in the second half of the year - Management expects comprehensive income to normalize in the back half of the year, potentially tracking slightly above contractual levels [29][31] Question: Transition of self-storage operating portfolio to net lease structure - The company has flexibility regarding the remaining self-storage portfolio and may lean towards more sales or conversions to net lease structures [33] Question: AFFO guidance implications for the second half of the year - Management highlighted that the second quarter's elevated other lease-related income is expected to normalize, impacting AFFO guidance [42][43] Question: Credit quality of tenants and market conditions - Management noted improved credit quality among tenants and a stable transaction market, which is driving increased opportunities [78] Question: Impact of new entrants in the net lease market - Management acknowledged increased competition but remains confident in its ability to compete effectively in the market [83] Question: Acquisition and disposition cap rates for the quarter - The company reported acquisition cap rates in the mid-sevens and disposition cap rates approaching 6% for the full year [95][96]

Rexford Industrial Overview - Rexford Industrial Realty has a portfolio of 424 industrial properties, encompassing 51 million square feet, with an entity value of $13 billion[7] - The company focuses on prime infill locations in Southern California[7, 13] - Rexford's FFO per share growth has a 5-year CAGR of 10%, exceeding the REIT average of 3%[9, 10] - The dividend per share growth has a 5-year CAGR of 16%, significantly higher than the REIT average of 3%[9, 10] Growth and Value Creation - Rexford has substantial embedded cash NOI growth, including a $60 million portfolio mark-to-market, $105 million in annual embedded rent steps, and $70 million from repositioning and redevelopment[17] - Repositioning and redevelopment projects in-process or in lease-up are expected to generate $70 million in annualized stabilized cash NOI[17, 18, 25] - The company's leasing activity in 1Q 2025 covered 2.4 million square feet, with average embedded rent steps of 3.6% in executed leases[28] Market and Portfolio - Southern California is the largest and highest-value industrial market in the nation, valued at $32 billion with 2.1 billion square feet[38] - Rexford's portfolio has a trailing 12-month average executed lease rate of $19.16 per square foot, a 22% premium over the Infill SoCal average of $15.65[59] - Over the last 4 years, >85% of transactions were executed off/lightly-marketed[34]

Financial Data and Key Metrics Changes - Funds from Operations (FFO) and Core FFO per share remained stable at $0.34 for both Q1 2025 and Q1 2024 [14] - 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 [15] - Net assets increased from $1,090,000,000 to $1,160,000,000 due to acquisitions [15] Business Line Data and Key Metrics Changes - The company acquired industrial properties totaling 355,778 square feet for $73,250,000, increasing industrial concentration to 65% of annualized straight-line rent [10] - Same store rents increased by 6.6% compared to the same period in 2024, driven by higher property expense recovery revenue and rental rates [14] 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, matching levels from the previous year, while vacancy rates rose slightly to 7% [7][8] Company Strategy and Development Direction - The company aims to increase industrial concentration to at least 70% and continues to focus on acquiring high-quality, mission-critical industrial assets [10][12] - The strategy includes selectively disposing of non-core assets and extending lease terms to capture market opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second quarter despite macroeconomic uncertainties and noted that the industrial sector continues to perform well [6][10] - The company is well-positioned with over $99,000,000 in availability via its line of credit and cash on hand for future acquisitions [13] 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 [10][21] - The common stock dividend is set at $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? - Management indicated that they have approximately $70,000,000 under contract and a backlog of about $140,000,000 consisting of 10 assets, with increased competition from family offices and private equity [23][24] Question: Are sellers more willing to negotiate on price? - Management noted a combination of both increased asset availability and seller willingness to negotiate, aided by strong broker relationships [30] Question: What is the status of lease expirations for 2026 and 2027? - Management is actively working on lease expirations for 2026 and 2027, with a good handle on upcoming negotiations [34] Question: What is the situation with the Austin office property? - Management reported positive cash flow from the Austin property and ongoing efforts to increase tenancy [46] Question: Any changes in acquisition parameters due to government policy? - Management confirmed a focus on light manufacturing, which is seen as more attractive compared to warehouse distribution in the current environment [48]