Plymouth Industrial REIT Inc Q4 2023 Earnings Call Transcript

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

Question: Eric Borden - BMO Capital Markets - Analyst : Hey, good morning out there, and appreciate the change in reporting style. I guess my first question for you is on the transaction market. You noted a $500 million pipeline and a pure-play, potential opportunities, but also noted you're also seeing an increase in JV opportunities. Do you have a preference between the two? What is more attractive today between traditional acquisitions and potential JV solutions? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 22, 2024 / 2:00PM, PLYM.N - Q4 2023 Plymouth Industrial REIT Inc Earnings Call

Question: Eric Borden - BMO Capital Markets - Analyst : Okay. That's helpful. And is there any new market opportunities within that potential pool?

Question: Eric Borden - BMO Capital Markets - Analyst : Okay. That's helpful. And then last one for me. I understand we're only two months into 2024 and you still have some wood left to chop on the '24 expirations. But kind of looking a little bit into '25, you have a couple of larger lease expirations coming due. Have you had any initial conversations with these tenants about potentially either renewing their lease or vacating?

Question: Eric Borden - BMO Capital Markets - Analyst : Okay. Thanks. I'll leave it there.

Question: Nick Thillman - Robert W. Baird & Co., Inc. - Analyst : Hey, good morning. Maybe touching a little bit more on kind of your markets in the Golden Triangle in the onshore and near-shoring trends. Does this change the type of product that you're willing to own? Like I know like 25% has some part of like manufacturing. Is that a product type that you guys would like to own more of going forward? Or is that included in like this acquisition pipeline? Or are you more looking at the distribution, like supporting these types of onshoring and these facilities kind of coming back to the States?

Question: Nick Thillman - Robert W. Baird & Co., Inc. - Analyst : That's helpful. And then maybe as we're looking at deployment here in 2024, based on like development versus acquisitions, are you seeing more opportunity in one bucket or the other? And maybe what markets are most interesting today?

Question: Nick Thillman - Robert W. Baird & Co., Inc. - Analyst : That's helpful, Jeff. And then maybe last one for me. Anthony, any changes -- or maybe give us an update on what the tenant watch list is? And then what is kind of baked in for bad debt expectations for the same-store guide this 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. FEBRUARY 22, 2024 / 2:00PM, PLYM.N - Q4 2023 Plymouth Industrial REIT Inc Earnings Call

Question: Nick Thillman - Robert W. Baird & Co., Inc. - Analyst : Thanks for that.

Question: Mitch Germain - JMP Securities - Analyst : Thank you, and thanks again for all the information last night. Jeff, you talk a lot about onshoring trends in the Golden Triangle. I'm curious if you're seeing how this is having an impact on demand in your leasing pipeline?

Question: Mitch Germain - JMP Securities - Analyst : Great. That's super helpful. You mentioned dispositions. I know, obviously, Jersey was a market where you didn't really have much size and scale. Is there any sort of region that stands out to you as one that might have properties that you're looking to queue up for a disposition?

Question: Mitch Germain - JMP Securities - Analyst : Great. And last one for me. I know you just did some development leasing in Atlanta. I believe Cincinnati is either executed or soon to be executed. Some others in even the prior quarters. From a cadence in terms of how the impact is on 2024, it seems to be somewhat back weighted. Is that the way to think about it here?

Question: Mitch Germain - JMP Securities - Analyst : Got you. And Anthony, while I have you, I guess one more question. Last year, there were some cadence issues with regards to the same property growth. Obviously -- I think there were some expenses that hit in 3Q and then you were able to collect in 4Q and had an acceleration. How should we think about the cadence? Is there anything that you want to point out with regards to the results that kind of might impact our analysis of your earnings or your same property results?

Question: Mitch Germain - JMP Securities - Analyst : Thank you.

Question: Bryan Maher - B. Riley Securities - Analyst : Great. Thank you, and good morning. Most of my questions have already been asked and answered. But maybe as we sit here, Jeff -- and you've laid-out in your prepared information last night, which was appreciated, kind of the parameters upon which you would transact. But can you maybe REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 22, 2024 / 2:00PM, PLYM.N - Q4 2023 Plymouth Industrial REIT Inc Earnings Call talk a little bit in your view as you sit here today what the probability is that you think you'd transact? And what the sweet spot would be of what it is in the 500 you're looking for that would really compel you to move?

Question: Bryan Maher - B. Riley Securities - Analyst : Perfect. Thank you. That's helpful.

Question: Mike Mueller - JPMorgan - Analyst : Yeah. Hi. I guess going back to St. Louis. In the guidance range, when I think of a guidance midpoint, I tend to think of the most likely outcome. And then you kind of deviate up and down from there. So I guess with St. Louis staying in place and having no disruption, being the midpoint, is it safe to say that you think that's kind of the most likely outcome at this point? Because I guess in the transcript it just didn't read that way.

Question: Mike Mueller - JPMorgan - Analyst : Okay. And then I guess just a quick same-store question. I know you -- that's not included in the same-store range. But if it was in there, do you have a sense as to what the sensitivity would have been by, say, a FedEx move out?

Question: Mike Mueller - JPMorgan - Analyst : Okay. That's helpful. Thank you.