Plymouth Industrial REIT, Inc.

Good day and welcome to the Plymouth Industrial REIT fourth quarter 2023 results 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. Please go ahead.

Thank you. Good morning. Welcome to the Plymouth Adjuster REIT conference call to review the company's results for the fourth quarter of 2023. Yesterday afternoon, we issued our earnings release and posted a copy of our prepared commentary on a supplemental deck on the quarterly results section of our investor relations page. In addition to these earnings documents, a copy of prior Form 10-K when filed can be found on the SEC filings page of the IR site. The change in timing of our disclosures to yesterday afternoon was in response to previous feedback we received to allow more time to digest the earnings results and supplemental. We also thought it might be even more beneficial for you to read through our prepared commentary ahead of time. Our supplemental deck includes our full year 2024 guidance assumptions, detailed information on our operations portfolio and balance sheet, and definitions of non-GAAP measures and reconciliations to the most comparable GAAP measures. We will reference this information in our remarks. With me today is Jeff Witherell, Chairman and Chief Executive Officer. Anthony Taladino, Executive Vice President and Chief Financial Officer. Jim Conley, Executive Vice President of Asset Management, and Ann Hayward, General Counsel. I would like to point everyone to our forward-looking statements on page one of our supplemental presentation and encourage you to read them carefully. They apply to statements made in this call, our press release, our prepared commentary, and in our supplemental financial information. I'll now turn the call over to Jeff.

Thanks, Tripp. Good morning, and thank you for joining us today. I hope that everyone had a chance to review the commentary and supplemental information we posted last night. We believe this will provide for an efficient use of time during a busy earnings week. Our intent is to adopt this practice going forward, and as always, we're open to input on how we can improve. There are several themes I want to highlight this morning from our reported results in 2024 outlook. The Golden Triangle is a region that we believe can continue to benefit from onshoring and nearshoring of manufacturing to the U.S., Mexico, and Canada, as well as the complementary wave of suppliers and distributors. The data we've gleaned from a number of independent sources indicates that our markets are in front of a trend that could be measured in terms of decades, not years. Second, our balance sheet is the strongest it's been in the history of the company. That's seven straight quarters of reducing leverage to 6.5 times and a half turn ahead of where we thought we could be at year end. With a long-term target of five to seven times net debt to EBITDA, we anticipate operating in the six times range during 2024. Third, we're focused on accretive growth in 2024 that translates into FFO growth. we're projecting a 3-plus percent increase in FFO per share at the midpoint, primarily driven by improved portfolio operations, leasing, and same-store NOI growth. With the transaction market starting to come to life, we will look to be more active as the year progresses. We expect to fund growth with a combination of asset sales, use of the credit facility, potentially tapping the investment-grade unsecured notes market, and or selective ATM usage. And lastly, I'd like to highlight the Board's decision to increase our dividend by 6.7% effective with the first quarter. Together with a better recognition of the value we've created in our portfolio, we anticipate this could help provide an attractive total return to our investors while maintaining an FFO payout ratio of 50 to 51% based on our 2024 guidance. I would now like to turn it over to the operator for questions.