Plymouth Industrial REIT Inc Q1 2023 Earnings Call Transcript

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

Question: Nick Thillman - Robert W. Baird & Co. - Analyst : Maybe starting on capital deployment going forward. Looks like you had some solid activity in the leasing pipeline, especially in development. Maybe for Jeff or Pen, going forward, what's the more favorable options? Is it development or like acquisitions?

Question: Nick Thillman - Robert W. Baird & Co. - Analyst : Okay, that's helpful. And then maybe turning to Jim, you called out renewal options out that happened during the quarter. Just curious on, like expirations going forward. What percentage would you say have those embedded options?

Question: Nick Thillman - Robert W. Baird & Co. - Analyst : Okay. And then last one for Anthony. Looks like rent collections quarter over quarter improved, like 30 basis points. Of that 100 basis points that you're not collecting rent, is there anything to read through on those specific tenants?

Question: Nick Thillman - Robert W. Baird & Co. - Analyst : Very helpful. Thanks guys.

Question: AJ Peak - KeyBanc Capital Markets Inc. - Analyst : Good morning. This is AJ on for Todd. Just a couple of quick ones, and sorry if I missed some. I joined late. Same-store occupancy was 9.1%, and the guidance assumes a midpoint of 98.6%. Are there any known move-outs or anything specific to point to? Or is that just an assumption given the macro?

Question: AJ Peak - KeyBanc Capital Markets Inc. - Analyst : Okay, that's helpful. And then just switching gears to development leasing. Good momentum in Jacksonville and Boston in the quarter. Can you talk about timing of commencements for Jacksonville and Atlanta Phase 1? When is the rent going to commence and is there a free rent period associated just as I think about the model? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 04, 2023 / 1:00PM, PLYM.N - Q1 2023 Plymouth Industrial REIT Inc Earnings Call

Question: AJ Peak - KeyBanc Capital Markets Inc. - Analyst : Okay, that's helpful. And then just one last one, if I can. Can you talk about rent trends? So last quarter, you mentioned there was about a $5 per square foot spread between rents on new supply and your existing in-place rents. Are you seeing that gap improve at all? Thank you.

Question: AJ Peak - KeyBanc Capital Markets Inc. - Analyst : Great. Thank you.

Question: Bryan Maher - B. Riley FBR, Inc. - Analyst : Great. Good morning. Any thoughts with -- given the squirrelly economic environment, which is making you hit the pause button on spec development, is there any thought of maybe pushing out the WALT on leases that you are renewing? I think you're maybe at 3.5 years now. Any thoughts on pursuing that out further?

Question: Bryan Maher - B. Riley FBR, Inc. - Analyst : Okay. And operating expenses were a little higher than we thought. Is there anything unusual going on there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 04, 2023 / 1:00PM, PLYM.N - Q1 2023 Plymouth Industrial REIT Inc Earnings Call

Question: Bryan Maher - B. Riley FBR, Inc. - Analyst : Okay. And then just last for me. It seems like we're getting a little bit of conflicting data, right? So you're putting up good numbers, good rent increases, but you're holding back on development acquisitions, et cetera. Should the positive trends continue? Are there projects that you're currently penciling out, thinking about, want to pursue that in the next quarter or two, you might pull the trigger on and go ahead with?

Question: Bryan Maher - B. Riley FBR, Inc. - Analyst : Okay, thank you. That's all for me.

Question: Mike Mueller - JPMorgan Chase & Co. - Analyst : Yeah, hi. A couple of questions. First of all, I appreciate the color on the '23 and '24 commencements. In the '24 commencements, you mentioned about 5% spreads on the renewals. Is there something specific weighing on that? Or is that, I guess, the mix of fixed renewals that you alluded to?

Question: Mike Mueller - JPMorgan Chase & Co. - Analyst : Got it. Okay. And then I guess, thinking about the development pipeline, if you think -- looking out, say, the next three years or five years, where do you think, or where would you like to see that average total expected investment or pipeline size gravitate around?

Question: Mike Mueller - JPMorgan Chase & Co. - Analyst : Got it. Okay. Makes sense. Thank you.

Question: Mitch Germain - JMP Securities LLC - Analyst : Thank you. Any thought about recycling some assets here if you could find some good opportunities in the acquisition market?

Question: Mitch Germain - JMP Securities LLC - Analyst : Okay, that's helpful. And then has the joint venture discussions been shelved for now until the macro environment stabilizes? Or is that still something that's under consideration? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 04, 2023 / 1:00PM, PLYM.N - Q1 2023 Plymouth Industrial REIT Inc Earnings Call

Question: Mitch Germain - JMP Securities LLC - Analyst : That's it for me. Thank you. Nice quarter.