Plymouth Industrial REIT Inc Q2 2023 Earnings Call Transcript

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

Question: Todd Thomas - KeyBanc Capital Markets - Analyst : Hi, thanks. Good morning. First question, I was just wondering if you could talk a little bit more about your plans to permanently finance the remaining in $21 million of preferred redemption. Sounds like you have a disposition teed up. Can you just provide a little bit more detail on the expected proceeds that you expect to generate and maybe and bookend sort of the pricing on that asset sale?

Question: Todd Thomas - KeyBanc Capital Markets - Analyst : Okay. And should we assume -- I know de-leveraging was an important initiative beyond the Series A redemption. Should we assume additional equity issuance is on the table to the extent that the stock remains in sort of a similar range to where it's trading to where you issued in the second quarter and through July?

Question: Todd Thomas - KeyBanc Capital Markets - Analyst : Okay. Got it. And then just one question around occupancy and the guidance. You ended June -- you ended the quarter at 98.9%. You maintained the 98% for the -- 98% range for guidance. Can you just talk about the trajectory of occupancy from here in that range? And if there are any known move outs or anything specific that you can sort of point to as you look out towards the second half of the year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 03, 2023 / 1:00PM, PLYM.N - Q2 2023 Plymouth Industrial REIT Inc Earnings Call

Question: Todd Thomas - KeyBanc Capital Markets - Analyst : Okay. All right. Thank you.

Question: John Kim - BMO Capital Markets - Analyst : Hey, good morning. I think the connection is not great, so we couldn't hear some answers just provided to Todd's questions. But I wanted to ask you about the preferred [regimen that] -- your stock is up 18% year to date. It's prudent to reduce leverage. But, Jeff, I think you indicated before at NAREIT that you thought raising equity in the $25 to $27 range would be appropriate. It looks like today you're more comfortable raising a little below that. Just wanted to ask -- I'm wanted to ask how you got there.

Question: John Kim - BMO Capital Markets - Analyst : It's a little bit choppy, so we can hear like every other word, but --

Question: John Kim - BMO Capital Markets - Analyst : Okay. Got it. In in his prepared remarks, Jim mentioned the difference again that you had between new and renewal spreads and renewal options having an impact on that. I think, last quarter, you guys have mentioned that 10% of the remaining [expirations in the past so] that we know our option. So going forward, should we expect that gap to narrow?

Question: John Kim - BMO Capital Markets - Analyst : Okay, great. We'll follow up with the other questions and congrats [on the timing].

Question: Nick Thillman - Robert W. Baird & Co. - Analyst : Hey, good morning. Maybe following up a little bit on the renewal, 52% of renewal activity with fixed renewals. I guess, what percentage of the stuff that is remaining in 2024 has that fixed renewal option embedded in it?

Question: Nick Thillman - Robert W. Baird & Co. - Analyst : Okay. That's helpful. And then maybe there's been a decent amount of comments on like bigger box demand being a little softer. Your three largest tenants have spaces over 500,000 square feet expiring in St. Louis through 2025. Maybe could you provide a little commentary on that specific market and those spaces and then maybe early indications for FedEx in 2024? Thanks.

Question: Nick Thillman - Robert W. Baird & Co. - Analyst : That's helpful. Thanks.

Question: Nikita Bely - JPMorgan Securities LLC - Analyst : Hey, guys. Good morning. Can you talk a little bit about the pipeline for additional development starts, maybe what your yield expectation on the new deals would be? And also any color at all on potential acquisitions given the market environment, anything will be appreciated.

Question: Nikita Bely - JPMorgan Securities LLC - Analyst : Right. Two more questions. Anthony, you mentioned the $110 million AIG loan that matured. So what's the plan for that one when it matures. How are you going to take it out? What's the go forward on that one? And the last one is just -- I wanted to hear the overall tone from tenants, like what have you heard from the tenants now? We've heard that some folks are taking longer to sign leases, decision-making process is a little slower, the business is not 10 out of 10 anymore. It's just good. It's great, but it's not 2020, 2021. Just overall color, the conversations that you're having with tenants -- what are they telling you?

Question: John Kim - BMO Capital Markets - Analyst : Got it. Thank you.

Question: Anthony Hao - Truist Financial Corporation - Analyst : Good morning, guys. Thanks for taking my questions. Maybe I missed this, but Anthony, can you talk about what drove the 11% same-store expense growth this quarter?

Question: Anthony Hao - Truist Financial Corporation - Analyst : Okay. For 2024 leasing, if we exclude the renewal options, what would the renewal lease spread be?

Question: Anthony Hao - Truist Financial Corporation - Analyst : Okay. Thanks, guys.

Question: Mitch Germain - JMP Securities - Analyst : Sorry about that. Nice quarter. Jeff, I know I ask you this every couple of quarters, but just curious in terms of your willingness to entertain a joint venture discussion or another joint venture. Clearly, now that you've cleaned up the capital stack, is that something that is still under discussion?

Question: Mitch Germain - JMP Securities - Analyst : That's helpful. Now that your development exposure is thinning out a little, and industrial fundamentals are still kind of extending this run to the positive, is there any desire to maybe look toward executing on some of your land positions? Or is it going to take some either pre-leased or significant interest to move forward on a new project?

Question: Mitch Germain - JMP Securities - Analyst : Got you. Thank you so much. A great quarter. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 03, 2023 / 1:00PM, PLYM.N - Q2 2023 Plymouth Industrial REIT Inc Earnings Call