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 [13] - Leverage remains low with net debt to annualized run rate adjusted EBITDA equal to 5.1 times [13] - Liquidity stood at $961 million at quarter end [13] 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% [7][14] - Same store cash NOI growth was 3% for the quarter and 3.2% year to date, driven by leasing spreads of 26.1% and annual escalators of 2.9% [15] - Retention for the quarter was 75.3% [14] 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 [8][9] 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 [10][11] - The company aims to maintain flexibility in building designs to accommodate both multi-tenant and single-tenant leases [75][76] Management's Comments on Operating Environment and Future Outlook - Management noted a shift in the market from uncertainty to a more stable environment, with businesses continuing to grow despite challenges [7] - The company expects cash leasing spreads to be between 23-25% for the year [14] - Management expressed optimism about the acquisition market, indicating a narrowing bid-ask spread and increased activity [38][56] Other Important Information - Moody's upgraded the company's corporate credit rating to BAA2 with a stable outlook [15] - The company funded $550 million of fixed-rate senior unsecured notes with a weighted average fixed interest rate of 5.65% [16] Q&A Session Summary Question: What markets are seeing better early signs of recovery? - Management highlighted strong performance in the Midwest markets and Nashville, while noting weaker performance in bulk distribution markets [21][22] Question: How is the transaction market evolving? - Management indicated that the transaction market is becoming more active, with a focus on user sales and attractive cap rates [25][26] Question: What is the status of the leasing and demand in the portfolio? - Management noted that leasing times have increased to an average of nine to twelve months, with some larger buildings experiencing higher vacancy rates [29][30] Question: How is the acquisition pipeline structured? - The acquisition pipeline consists of over 60% one-off assets, with a cautious optimism for an active second half of the year [37][38] Question: What are the implications of the recent credit upgrade? - The credit upgrade may provide modest benefits in the private placement market and positions the company for potential public bond issuance [40][41] Question: How is the development pipeline performing? - The development pipeline is segmented into in-service, complete but not in service, and under construction, with varying leasing activity across these categories [49][50] Question: What are the fundamentals in Nashville? - Nashville is characterized by balanced demand in manufacturing and distribution, with regulated supply contributing to a healthy market [77][79]

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]