Plymouth Industrial REIT Inc Q4 2024 Earnings Call Transcript

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

Question: Eric Borden - BMO Capital Markets - Analyst : Jeff, just on the last comment around the $1 billion of potential acquisitions, it sounds like based on your guidance, up to about half of that could be on balance sheet. Could you talk about the other $500 million or so, whether that would be a potential balance sheet acquisition or would that be under the JV? 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 27, 2025 / 2:00PM, PLYM.N - Q4 2024 Plymouth Industrial REIT Inc Earnings Call

Question: Eric Borden - BMO Capital Markets - Analyst : Okay, that's helpful. And then with the acquisitions in guidance, how are you thinking about the timing of acquisitions and the cap -- the initial cap rates on those?

Question: Eric Borden - BMO Capital Markets - Analyst : Appreciate that. And then one more, if I may, just on the guidance bridge on page 10 of the prepared remarks. I appreciate all the detailed color there, but I was just hoping that you could talk about the puts and takes to get to the low end of your guidance and to reach the high end of your guidance.

Question: Todd Thomas - KeyBanc Capital Markets Inc. - Analyst : I just wanted to follow up on that a little bit as it pertains to the guidance and some of the leasing. And I wanted to ask about the timing, specifically of the 740,000 square feet of leases signed which includes 600,000 of the former FedEx logistics site in St. Louis. So that's $0.07 per share impact on the full year FFO. 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 27, 2025 / 2:00PM, PLYM.N - Q4 2024 Plymouth Industrial REIT Inc Earnings Call What's the timing like for that? What's commenced versus what is still to commence going forward? And can you talk a little bit about the leasing environment as it pertains to the remaining vacancies and whether there is any speculative leasing for vacant space included in the guidance?

Question: Todd Thomas - KeyBanc Capital Markets Inc. - Analyst : Okay, does -- is there any additional or any speculative leasing for vacant space included in the guidance at the high end of the range?

Question: Todd Thomas - KeyBanc Capital Markets Inc. - Analyst : Okay, and then can you provide a little bit more detail on the remaining 25 expirations? Appreciate some of the notes around that, including the other big box, the 625,000 in St. Louis. It sounds like you expect that tenant to renew, but can you provide a little bit more detail there and also discuss the Columbus downsize or vacate that you noted the timeline and what's embedded around those assumptions within the guidance?

Question: Richard Anderson - Wedbush Securities, Inc. - Analyst : So on the St. Louis lease, I guess I want to understand why you're optimistic if it's going from 600,000 square feet to 450,000 the following year. I'm wondering why the tenant is -- got a funny cadence to it in terms of the space it's taking, even though you have a feeling that it's going to commit longer term. Can you give the back story there a little bit on that transaction?

Question: Richard Anderson - Wedbush Securities, Inc. - Analyst : Okay. Turning to Cleveland, I don't know if you said this, I apologize, but what's the expectation to putting those situations to bed and if you can give also the back story because I thought, a quarter or two -- or a quarter ago, you thought it would be a faster turnaround than it's turning out to be. Can you give me some color on that as well? Thanks.

Question: Richard Anderson - Wedbush Securities, Inc. - Analyst : Okay. And then lastly for me, I know the guidance has you at $360 million in terms of acquisitions midpoint. Would that -- I'm trying to do the math, but would that fully address the redeployment of the entire $500 million from the Sixth Street transaction or would there still be more meat on the bone to address?

Question: Nick Thillman - Robert W. Baird & Co. Incorporated - Analyst : Maybe just points of clarification, the 2.2 million square feet of availability in the core portfolio, that includes the St. Louis and Cleveland around like --over half of that space is spoken for or not spoken for, but in that bucket. And then Anthony, if you could just elaborate on changes to the same-store pool. It sounds like that St. Louis asset that was the former FedEx space is moving into the pool. Just wondering if ODW or [GEODIS], if any of those are moved in or out of the pool for '25. 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 27, 2025 / 2:00PM, PLYM.N - Q4 2024 Plymouth Industrial REIT Inc Earnings Call

Question: Nick Thillman - Robert W. Baird & Co. Incorporated - Analyst : That's helpful. Maybe for Jeff, I mean, I guess what do you think the disconnect is between your guys' view of the Sixth Street transaction and the market's view? And as the Board, you guys obviously announced the buyback, but I guess how patient are you guys going to be if the stock continues to linger at these levels? Like are you guys -- are you going to pursue alternative strategies? Just your views there.

Question: Nick Thillman - Robert W. Baird & Co. Incorporated - Analyst : That's helpful. Just last one, Anthony, with the new title; and Jeff, you could speak to this as well. Is there any additional areas of focus you're looking on as President or areas that are different than your current responsibilities as CFO?

Question: Mitch Germain - Citizens JMP Securities, LLC - Analyst : Maybe Jeff, since you were just mentioning the Sixth Street relationship, I'm curious how engaged are they with you to grow their relationship with you guys?

Question: Mitch Germain - Citizens JMP Securities, LLC - Analyst : Okay, that's super helpful. I'm curious about some of the pricing trends in the market today. I think you talked about how cap rates 6.75 or maybe even lower. Obviously, Memphis was acquired and one of the more recent deals were a little bit higher. So I mean, is it safe to say that we're seeing contraction across the board?

Question: Mitch Germain - Citizens JMP Securities, LLC - Analyst : Thank you for that. One more for me if I might. Just there's clearly situations that on the leasing front that you guys have discussed. And it just seems based on that commentary that, there's a preference to do more of these strategic or co-value enhancing value-add type of investment. So talk about, maybe Jeff, if you can just talk about factoring in the -- weighing the existing situations versus doing more value-add and you guys have the capabilities to handle all of that all at once.

Question: Brendan Lynch - Barclays Capital Inc. - Analyst : Jeff, you mentioned that there's a lot of capital coming into your markets. Is that specifically for acquisitions? Are you also seeing an increase in development spending?

Question: Brendan Lynch - Barclays Capital Inc. - Analyst : That's helpful. Maybe also just talking high level, any impact that you're seeing from the tariffs or potential for tariffs and reshoring initiatives? Obviously, you have more heartland exposure than a lot of your peers with more coastal exposure. Maybe anything that you're seeing in terms of your customer base and conversations you're having with them?

Question: Mike Mueller - J.P. Morgan Securities LLC - Analyst : Apologize if I missed this, but what is the, I guess, Columbus rent on the two new prospects compared to the move out rent and what's the timing during the year on that?

Question: Mike Mueller - J.P. Morgan Securities LLC - Analyst : Okay. And then last question, when you're looking at the '26 expirations, are there any similar chunky known move-outs at this point?