Plymouth Industrial REIT, Inc.

Good morning and welcome to the Plymouth Industrial REIT third quarter 2022 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Tripp Sullivan of SCR Partners. Please go ahead.

Thank you. Good morning. Welcome to the Plymouth Industrial REIT conference call to review the company's results for the third quarter of 2022. On the call today will be Jeff Witherell, Chairman and Chief Executive Officer, Ann White, President and Chief Investment Officer, Anthony Saladino, Executive Vice President and Chief Financial Officer, Jim Connolly, Executive Vice President of Asset Management, and Ann Hayward, General Counsel. Our results were released this morning in our earnings press release, which can be found on the Invest Relations section of our website, along with our Form 10-Q and supplemental, followed with the SEC. A replay of this call will be available shortly after the conclusion of the call. through November 10, 2022. The numbers to access the replay are provided in the earnings press release. For those who listened to the replay of this call, we remind you that the remarks made herein are as of today, November 3, 2022, and will not be updated subsequent to this call. During this call, certain comments and statements we make may be deemed forward-looking statements within the meaning prescribed by the securities law. including statements related to the future performance of our portfolio, our pipeline of potential acquisitions and other investments, future dividends, and financing activities. All forward-looking statements represent Plymouth's judgment as of the date of this conference call and are subject to risk and uncertainty that can cause actual results to differ materially from our current expectations. Investors are urged to carefully review various disclosures made by the companies including the risk and other information disclosed in the company's filings with the SEC. We will also discuss certain non-GAAP measures, including but not limited to core FFO, AFFO, and adjusted EBITDA. Definitions of these non-GAAP measures and reconciliations to the most comparable GAAP measures are included in our filings with the SEC. I'll now turn the call over to Jeff Witherell. Please go ahead.

Thanks, Tripp. Good morning, everyone, and thank you for joining us today. The story at Plymouth continues to be more of the same. Our portfolio is nearly fully leased. The vertical integration strategy continues with another regional office opened. We're exceeding the mark-to-market with our leasing efforts, and the first phase of our development program is nearing completion. What we're seeing and hearing on the ground in our markets still doesn't line up with the distortion in the capital market. Nearly every conversation lately starts with what we're seeing in our markets. As of today, we remain extremely positive as we continue to engage with our tenants regarding their need for additional space and the relative health of their businesses. As Jim will highlight here in a few minutes, our property management and asset management teams are also busy responding to the large number of RFPs for our space. As Penn will note later, the conversations with brokers and sellers are starting to change for the smaller deals. Expectations have started to be more reasonable, but without any larger transactions occurring, there really isn't a real read-through on cap rates yet. I mentioned this earlier in passing, but it's an important point. During the quarter, we opened our regional office in Atlanta. This is our fourth regional office, joining Columbus, Jacksonville, and Memphis. With the two new developments nearing completion in this market, we will be over 2 million square feet in Atlanta. This brings the percentage of our portfolio that is internally managed to about 70%. This is a critical component of our vertical integration strategy and creates a distinct competitive advantage for us in our markets. In addition to delivering better service to our customers, we are saving millions of dollars a year in third-party fees. Now let's turn to the key operating stats for the quarter, which continue to highlight our strong internal growth. Occupancy was 98.8%. Cash releasing spreads were 17.6%. Same-store NOI on a cash basis was up 11%. Rent collections were well over 99%. Core FFO per share was up 7%, and AFFO per share was up 29%. In addition to the internal growth from same store NOI, we have added some growth for next year with the first phase of our development program. The total investment of nearly $49 million is expected to generate initial yields in the 7% to 9% range. Pages 5 and 12 of our supplemental have more detail on the program and the pipeline, but I'll briefly bring you up to speed on the first phase. In Portland, Maine, we have completed construction at our $9.3 million, 70,000-square-foot building. We are now 50% leased with occupancy of a new 10-year lease commencing this quarter and nearing execution of a lease for the balance of the space with a Q1 2023 start date. In Atlanta, we are under construction with a new 237,000-square-foot industrial building that is delivering in the fourth quarter and a 180,000-square-foot building adjacent to it that is delivering this quarter as well. The total investment for these two projects is approximately $26.7 million. We have fully leased the 180,000 square foot building for five years with occupancy in early January 2023, and we have several proposals out for consideration for the second building. In Cincinnati at our Fisher Industrial Park, our new 156,000 square foot building is delivering this quarter for a total investment of $13 million. There's an LOI with a full building user being negotiated for February 2023 commencement date. These four buildings comprise the first phase. While they have exceeded our expectations and we have demand in place for our other projects in the pipeline in Jacksonville and Cincinnati, we're going to pause for now on that second phase to prioritize our capital elsewhere in 2023. Anthony will provide the details on our capital position, but I did want to reaffirm that we know where we need to be in terms of leverage, and we'll get there gradually and prudently. With a Series B preferred stock conversion occurring well ahead of when we expected, 2023 can be an opportunity for us to continue to simplify the balance sheet. Ben, why don't you take it from here?