Plymouth Industrial REIT(PLYM) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The first quarter of 2025 marked a strong start for the company, highlighted by record leasing activity and stable core financial performance [4][5] - The company affirmed its previously issued full year 2025 guidance for core FFO, anticipating a stronger second half of the year [8] Business Line Data and Key Metrics Changes - Approximately 70% of 1,600,000 square feet of speculative space greater than 100,000 square feet included in guidance has now been leased, contributing to occupancy growth [16] - The company has approximately $205,000,000 of acquisitions under agreement, representing roughly 2,000,000 square feet at a targeted initial NOI yield of 6.5% to 6.75% [7][18] Market Data and Key Metrics Changes - The company continues to monitor the impact of global supply chain adjustments on its tenant base, noting an increase in short-term space requirements [5][29] - The company has observed favorable reshoring dynamics and limited Class B supply in target markets, which are expected to benefit rental growth [5] Company Strategy and Development Direction - The strategic focus remains on acquiring infill industrial properties in dense supply-constrained submarkets, contrasting with larger warehouses that face longer lease-up periods [5][6] - The company aims to expand within existing markets, funded largely by proceeds from the Sixth Street transaction [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve sustained internal growth and long-term value creation despite macroeconomic uncertainties [5][30] - The company has not seen significant disruptions across its portfolio, although there is a noted increase in short-term leasing activity [29][30] Other Important Information - The company maintains strong liquidity with over 88% of its debt being fixed and no debt maturities in 2025 [7] - The company has a watch list that includes five tenants, occupying a combined 290,000 square feet, with a low likelihood of default [40][41] Q&A Session Summary Question: Confidence in renewal and backfill prospects - Management confirmed that a three-year renewal for the St. Louis asset has been signed and negotiations for backfilling the Columbus asset are ongoing [12][13] Question: Key drivers behind same-store growth acceleration - Management indicated that the St. Louis asset is a key contributor to growth, with a projected year-end same-store occupancy of about 97.3% [16][48] Question: Funding sources for acquisitions - The funding mechanism for acquisitions will primarily be through the line of credit, with an additional $79,000,000 to be drawn from Series C preferred [17][18] Question: Buyback priorities - Management stated that no shares were repurchased in Q1, emphasizing a balanced approach to capital deployment between acquisitions and opportunistic repurchases [22] Question: Changes in collections or bad debt - Management reported no significant changes in collections or bad debt, maintaining a favorable outlook on tenant payments [40][41]