Plymouth Industrial REIT(US:PLYM)2024-02-22 19:11Financial Data and Key Metrics Changes - The company reported a strong balance sheet with leverage reduced to 6.5x, marking seven consecutive quarters of improvement [5] - The company anticipates a 3% increase in FFO per share at the midpoint for 2024, driven by improved portfolio operations and same-store NOI growth [10] - A dividend increase of 6.7% was announced, effective in the first quarter, while maintaining an FFO payout ratio of 50% to 51% based on 2024 guidance [11] Business Line Data and Key Metrics Changes - The company is focused on accretive growth in 2024, primarily through improved portfolio operations and leasing [10] - The guidance for 2024 includes assumptions about vacancy rates and credit loss, with specific properties in St. Louis and Chicago being highlighted for their leasing potential [13][34] Market Data and Key Metrics Changes - The company is optimistic about the Golden Triangle region benefiting from onshoring and near-shoring trends, which could enhance demand for their properties [30] - There is a noted increase in interest from foreign companies in light manufacturing, particularly in Atlanta, indicating a potential growth area for leasing [40] Company Strategy and Development Direction - The company plans to be more active in the transaction market as opportunities arise, focusing on small one-off deals and potential joint ventures [31][36] - The strategy includes funding growth through asset sales, credit facilities, and possibly tapping into the investment-grade unsecured notes market [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leasing strategy and the potential for accelerated lease-up in key properties, particularly in Chicago and St. Louis [13][34] - The company is monitoring the transaction market closely, with expectations of increased activity and favorable cap rates for acquisitions [64] Other Important Information - The company has identified Texas as a future market of interest but remains focused on current operations within the Golden Triangle [37] - There is an ongoing assessment of the tenant watch list, with minimal changes noted, indicating stability in tenant performance [24] Q&A Session Summary Question: What factors are embedded in the guidance range around development leasing? - The guidance includes assumptions about vacancy and credit loss, with confidence in leasing up properties in the second half of the year [13] Question: What is the company's preference between traditional acquisitions and potential JV solutions? - The company is agnostic and will pursue opportunities based on the asset's needs and potential for value addition [16] Question: How is the onshoring trend impacting demand in the leasing pipeline? - While results have been limited, there has been significant activity in Atlanta related to new buildings that are now fully leased [57] Question: What is the expected cadence of same-store growth in 2024? - The company anticipates a similar quarterly cadence to 2023, with Q1 being muted due to weather impacts, ramping up in the second half [62] Question: What is the probability of transacting in the current market? - The company is tracking smaller one-off deals and is interested in properties that may need refinancing or have expiring leases [64]