Plymouth Industrial REIT Inc at NAREIT REITweek: Investor Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Anthony Hau - Truist Securities - Analyst : Okay. So what is the Golden Triangle and why is this region important to industrial real estate? What opportunities do you see in this region? And how does the cost of labor and availability of workforce affect tenants' decisions?

Question: Anthony Hau - Truist Securities - Analyst : Okay. There's also a lot of chatters about reshoring in the US, right, and how it will be a significant tailwind for the sector. And just curious like now, like what are your thoughts on these? Like are you seeing this in your portfolio today and which market do you think would benefit the most from this?

Question: Anthony Hau - Truist Securities - Analyst : Maybe we can switch gears and talk about the recent uptick in national vacancy rate. So this is the first time we saw increase since the second quarter of 2009. Are you seeing cracks in industrial demand as a result? And maybe you can talk about the new supply coming online in your markets and as well as how your portfolio is positioned?

Question: Anthony Hau - Truist Securities - Analyst : Got you. Sorry. No, just looking at Plymouth portfolio, it seems like a sweet spot for you guys are the multi-tenant industrial assets in infill locations. Other than the supply risks, like why do you guys prefer this product type over big box? And are you guys seeing a slowdown in demand for big box given the recent pullback from Amazon, et cetera?

Question: Anthony Hau - Truist Securities - Analyst : And how much does the clear height matters to customers, investors? Is like 28 feet clear considerably obsolete? What type of customers would prefer a 28 clear over a 32 clear?

Question: Anthony Hau - Truist Securities - Analyst : Got you. So like demand has been normalizing compared to COVID years, right? And given the risk of a potential recession late this year, what are you guys seeing today on the ground? And what's your expectation for this year and next year? And it would great if you guys can provide any like leasing update as well.

Question: Anthony Hau - Truist Securities - Analyst : Okay.

Question: Anthony Hau - Truist Securities - Analyst : And is that rental rate growth similar to what we saw in 2022 or even better?

Question: Anthony Hau - Truist Securities - Analyst : Yeah.

Question: Anthony Hau - Truist Securities - Analyst : Okay.

Question: Anthony Hau - Truist Securities - Analyst : Okay. And is your mark-to-market growing then? Because I know your mark-to-market right now is in 19%, 18%. Is that also growing as well?

Question: Anthony Hau - Truist Securities - Analyst : But are you seeing the cap rates being spent -- seeing cap expansion some of your markets or --?

Question: Anthony Hau - Truist Securities - Analyst : Got you. So in terms of balance sheet, any updates on the AIG loan and what interest rate do you think you get to refinance this loan?

Question: Anthony Hau - Truist Securities - Analyst : Okay. What do you see as a potential risk in your market spend? Because I know you guys talked about a very strong fundamentals. Like what keeps you up at night? Is it tougher, tighter capital markets? Potential recession? Pullback from e-commerce? Or just oversupply in general?

Question: Anthony Hau - Truist Securities - Analyst : Are there any questions from the audience?

Question: Anthony Hau - Truist Securities - Analyst : (laughter) Okay. So maybe on the flip side, what's the bull scenario? Like what gets you most excited about?

Question: Anthony Hau - Truist Securities - Analyst : Are there any new markets that you want to be in?

Question: Anthony Hau - Truist Securities - Analyst : And are you guys planning to -- I know that you guys kind of paused on acquisitions right now. Is it because of function of share price that's why you guys are not acquiring right now? Or is it because of like you just feel like there's still like a price discovery in the marketplace?

Question: Anthony Hau - Truist Securities - Analyst : Okay. And when you talked about that $1.9 million in GLA space, like how big is that in terms of dollar size? Is that like --

Question: Anthony Hau - Truist Securities - Analyst : It's pretty significant? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 06, 2023 / 2:15PM, PLYM.N - Plymouth Industrial REIT Inc at NAREIT REITweek: Investor Conference

Question: Anthony Hau - Truist Securities - Analyst : And are these mostly adjacent to your existing buildings? Or where are they located?

Question: Anthony Hau - Truist Securities - Analyst : And would you guys prefer -- I think there's a question. Unidentified Participant How do you compete with private equity with cost of capital?