Plymouth Industrial REIT Inc Q1 2025 Earnings Call Transcript

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

Question: Todd Thomas - KeyBanc Capital Markets Inc. - Analyst : Hi, thanks, good morning. First question in the prepared commentary, you noted the potential three year renewal, at the 624,000 square foot asset in St. Louis and the backfill prospects you're, negotiating with, at ODW, that the 772,000 square footer in Columbus. Just in light of the current environment, how confident are you that those deals get done and have conversations changed at all? Over the last few weeks, in light of the current environment here.

Question: Todd Thomas - KeyBanc Capital Markets Inc. - Analyst : Okay, and then in terms of the acceleration in growth in the back half of the year. So, really strong second half in terms of, increase in total NOI and portfolio occupancy. The larger St. Louis asset, I guess is a contributor that you backfilled and signed the lease there, the 769,000 square foot facility, but that was removed from the same store. Can you just walk through the key drivers behind the acceleration in the same store growth rate later in the year what the primary drivers are there.

Question: Todd Thomas - KeyBanc Capital Markets Inc. - Analyst : Okay, that's really helpful. And sorry about that. I appreciate the clarification on St. Louis. And then last question, just in terms of the $205 million of acquisitions under agreement. Can you just remind us run through the funding sources for those investments from here? That the timing of the remaining drawdown of the $79 million preferred, what you're anticipating there? And I guess in terms of funding the balance, how we should think about that?

Question: Todd Thomas - KeyBanc Capital Markets Inc. - Analyst : Okay, all right, thank you.

Question: Richard Anderson - Wedbush Securities Inc. - Analyst : Thank you. Good morning. Where does a buyback stack up with you on your priorities from a capital deployment standpoint, today?

Question: Richard Anderson - Wedbush Securities Inc. - Analyst : Right. So -- and the buyback also can just be disruptive from a balance sheet perspective. I assume if you did go that direction, it would be on a balance sheet neutral way? Is that taking -- again, taking capital from the Sixth Street transaction and just instead of portfolio expansion buyback and it would still be a balance sheet neutral transaction in your mind. Is that correct?

Question: Richard Anderson - Wedbush Securities Inc. - Analyst : Okay. On ODW, you said $280 million to $400 million some amount as being signed now or sort of -- it's sort of -- what was that? Was that $280 million that's being close to being signed. Is that what you said? I missed that. I apologize.

Question: Richard Anderson - Wedbush Securities Inc. - Analyst : $280 million. And you said period of time, is that like another one of those short-term six-month type situations or longer or shorter? How could you provide that?

Question: Richard Anderson - Wedbush Securities Inc. - Analyst : And's the mentality there generally and maybe specifically for that is just we don't know what's going on in front of us with tariffs, et cetera, in the economy. And so we're just -- don't want to make an overcommitment. Is that basically the commentary from your tenants?

Question: Richard Anderson - Wedbush Securities Inc. - Analyst : As I recall, they have some presence in that area. But generally speaking, is that the sort of the mentality that you're hearing?

Question: Richard Anderson - Wedbush Securities Inc. - Analyst : Okay. And last for me, you reiterated guidance. You got some acquisitions coming, maybe some more after that. What some of your peers saying we would have raised guidance had it not been for some of these uncertainties ahead. Do you -- would you make the same comment or would you say guidance is good sort of -- it sort of captures whatever might happen in the future as stands. So it's not something that you would have raised if not for some of the questions that are out there right now broadly, broadly speaking.

Question: Richard Anderson - Wedbush Securities Inc. - Analyst : Okay, fair enough. Thanks very much.

Question: Nicholas Thillman - Robert W. Baird & Co., Inc. - Analyst : Good morning. I appreciate all the commentary on some of the larger tenant. Anthony, I think you mentioned 140 basis points of occupancy loss in fourth quarter. Is that related to any specific tenants or I know like as we look through the schedule, that's like the next tenant that we didn't touch on is like communications test design. Any updates there?

Question: Nicholas Thillman - Robert W. Baird & Co., Inc. - Analyst : And maybe following up, Jeff, you've kind of talked a lot about sort of the smaller tenant or smaller building, multi-tenant assets and kind of the focus there on the acquisition standpoint. Is there any appetite from like a disposition side to maybe de-risk on some of these individual tenants and sell some of those assets, given where the stock is trading today?

Question: Nicholas Thillman - Robert W. Baird & Co., Inc. - Analyst : That's very helpful. And then maybe just one last question quickly for Anthony. Any changes to sort of what you're seeing on collections or bad debt within the portfolio or changes to the watch list? 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 02, 2025 / 1:00PM, PLYM.N - Q1 2025 Plymouth Industrial REIT Inc Earnings Call

Question: Nicholas Thillman - Robert W. Baird & Co., Inc. - Analyst : Very helpful, thank you guys.

Question: Mike Mueller - JPMorgan - Analyst : Yeah, hi, so I think you said you expect at year-end about 97.3% occupancy. And I guess how much of that 97.3% is this short-term leasing, like 170,000 in St. Louis or something that could be 30, 60, 90 days or something, they could go away pretty quickly. So how much of that 97.3% could kind of go away within a couple of months or something?

Question: Mike Mueller - JPMorgan - Analyst : Got it. Okay. And then just to clarify, the 97.3% that does reflect 140 basis points of recapture, I think that you were talking about in November? 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 02, 2025 / 1:00PM, PLYM.N - Q1 2025 Plymouth Industrial REIT Inc Earnings Call

Question: Mike Mueller - JPMorgan - Analyst : It does, okay.

Question: Mike Mueller - JPMorgan - Analyst : Okay. Sounds good. And then one other question. I guess how much capacity -- I know you talked about $200 million under contract, I think another $150 million behind it. I guess what's the capacity for acquisitions after that before you get to the point where you need to start thinking about the next round of equity as being critical to fund the acquisitions. And I guess if the stock doesn't rerate, what -- how do you approach the next batch of acquisitions once you need to start thinking about equity?

Question: Mike Mueller - JPMorgan - Analyst : Got it. Okay, appreciate it. Thank you.

Question: Eric Borden - BMO Capital Markets - Analyst : Hey, good morning. I'm just going back to ODW in the space that is being leased about the one-third. Can you talk about any frictional vacancy? Is there any downtime associated? And do you plan or intend to split up the box and if there's any CapEx involved 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 02, 2025 / 1:00PM, PLYM.N - Q1 2025 Plymouth Industrial REIT Inc Earnings Call

Question: Eric Borden - BMO Capital Markets - Analyst : Okay, so it would be a minimal downtime in terms of occupancy and them paying rent, or would they immediately just pay rent, and the fence would go up rather quickly?

Question: Eric Borden - BMO Capital Markets - Analyst : Okay, that's helpful. And then just following up on that, when would ODW be added back to the same store pool?

Question: Eric Borden - BMO Capital Markets - Analyst : Okay. You talked about acquisitions being our priority focus, maybe with some stock buybacks, but just curious where new development starts fit into the capital outlay understand that you started a smaller investment during the quarter. Just curious on your thoughts going forward for the development pool.

Question: Eric Borden - BMO Capital Markets - Analyst : Great, thanks for the time guys. 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 02, 2025 / 1:00PM, PLYM.N - Q1 2025 Plymouth Industrial REIT Inc Earnings Call