Plymouth Industrial REIT, Inc.

Good morning and welcome to the Plymouth Industrial REIT first quarter 2025 conference call. All participants will be in a 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 and then one on your touchtone phones. To withdraw your questions, you may press star and two. Please note today's event is also being recorded. I would now like to turn the conference call over to John Wolfong, Investor Relations. Sir, please go ahead.

Thank you, and good morning. Welcome to the Plymouth Industrial Reit conference call to review the company's results for the first quarter of 2025. Yesterday afternoon, we issued our earnings release and posted a copy of our prepared commentary and a supplemental deck on the quarterly results section of our investor relations page. In addition to these earnings documents, a copy of our 10-Q can be found on the SEC filings of our IR site. Our supplemental deck includes our full year 2025 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 Wetherill, Chairman and Chief Executive Officer, Anthony Saladino, President and Chief Financial Officer, Jim Connolly, Executive Vice President of Asset Management, and Ann Hayward, General Counsel. I would like to point everyone to our forward-looking statements on page three 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, John. 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. First, I will hit a few highlights and then we'll go to Q&A. The first quarter of 2025 marked a strong start to the year, highlighted by record leasing activity, positive acquisition momentum, and stable core financial performance. We continue to be well positioned to scale our platform. with ample strategic capital and nearly 30% of annual rents rolling in 2025 and 2026 in markets benefiting from sequential rent growth, limited Class B supply, and favorable reshoring dynamics. We see a path for sustained internal growth and long-term value creation. On a macro level, as global supply chains adjust to the shifting geopolitical and trade landscape, we will continue to actively monitor the impact across our tenant base in target markets. We have yet to see any material interruptions across our portfolio, but we have observed an increase in short-term space requirements, primarily driven by tenants responding to inventory adjustments and shifting trade flows. Our strategic focus continues to be on acquiring and operating smaller footprint infill industrial properties in dense, supply-constrained submarkets, areas where speculative development has primarily targeted large-scale bulk assets. In contrast to larger warehouses, which often face longer lease-up periods and a narrower tenant base, our properties feature modular layouts and multi-tenant configurations that help mitigate binary vacancy risk and support more resilient cash flows. This flexibility enables us to adapt quickly to evolving tenant demands including those driven by reshoring, inventory realignment, and supply chain diversification. Our acquisition strategy remains focused on expanding within our existing markets. Our deal activity in the first quarter and at the end of 2024 was funded largely by the proceeds of the Sixth Street transaction. These acquisitions were located in key distribution hubs within our target markets located across the Golden Triangle. As of today, we have approximately 205 million of acquisitions under agreement, representing roughly 2 million square feet at a targeted initial NOI yield of 6.5 to 6.75. Since our June 2017 IPO, we have acquired over 32 million square feet at an average cost under $50 per square foot, well below replacement costs, which not only provides a meaningful margin of safety, but also enhances cash flow returns and highlights our disciplined approach to capital deployment and value creation. Moving to our balance sheet, we continue to have strong liquidity with over 88% of our debt being fixed, no debt maturities in 2025, and expect to operate in the six times range for the balance of the year. With the upsizing of our credit facility in last year's fourth quarter, We have $415 million of availability there, and with the capital secured through the Sixth Street transaction, we are well positioned and have the critical financial flexibility to scale our platform and support long-term value creation for our shareholders. Finally, we have affirmed our previously issued full-year 2025 guidance for Core FFO. We anticipated a bit of a muted start to the year, with a stronger second half driven by the stabilization of transitory vacancies in Cleveland and St. Louis, along with the full contribution from acquisitions expected to close in the second and third quarters. I look forward to providing further updates in the coming months as we execute on our leasing and capital deployment strategies. I would now like to turn it over to the operator for questions.