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Edited Transcript of PLYM.N earnings conference call or presentation 8-Aug-19 5:00pm GMT

Q2 2019 Plymouth Industrial REIT Inc Earnings Call

BOSTON Aug 17, 2019 (Thomson StreetEvents) -- Edited Transcript of Plymouth Industrial REIT Inc earnings conference call or presentation Thursday, August 8, 2019 at 5:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Daniel C. Wright

Plymouth Industrial REIT, Inc. - Executive VP & CFO

* James M. Connolly

Plymouth Industrial REIT, Inc. - SVP of Asset Management

* Jeffrey Earle Witherell

Plymouth Industrial REIT, Inc. - Chairman & CEO

* Tripp Sullivan

Plymouth Industrial REIT, Inc. - IR, SCR Partners, LLC

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Conference Call Participants

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* Alexander David Goldfarb

Sandler O'Neill + Partners, L.P., Research Division - MD of Equity Research & Senior REIT Analyst

* Barry Paul Oxford

D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst

* Gaurav Mehta

National Securities Corporation, Research Division - MD & Equity Research Analyst

* Henry Joseph Coffey

Wedbush Securities Inc., Research Division - MD of Equities Research

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Presentation

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Operator [1]

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Good day, and welcome to the Plymouth Industrial REIT Second Quarter 2019 Earnings Conference Call and Webcast. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference call over to Mr. Tripp Sullivan of Investor Relations. Mr. Sullivan, the floor is yours, sir.

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Tripp Sullivan, Plymouth Industrial REIT, Inc. - IR, SCR Partners, LLC [2]

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Thank you, Mike. Good afternoon, everyone welcome to the Plymouth's Industrial REIT conference call to review the company's results for the second quarter of 2019. On the call today will be Jeff Witherell, Chairman and Chief Executive Officer; Dan Wright, Executive Vice President and Chief Financial Officer; and Jim Connolly, Senior Vice President of Asset Management.

Our results were released this morning in our earnings press release, which can be found on the Investor Relations section at our website, along with our Form 10-Q and supplemental filed with the SEC. A replay of this call will be available shortly after the conclusion of the call through August 15, 2019. The numbers to access the replay are provided in the earnings press release.

For those who listen to the replay of this call, we remind you that the remarks made herein are as of today, August 8, 2019, 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 laws, 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 risks and uncertainties that can cause actual results to differ materially from our current expectations. Investors are urged to carefully review various disclosures made by the company, 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, 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.

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [3]

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Thanks, Tripp. Good afternoon, everyone. Thanks for joining us. In addition to Dan and Jim, Anne Hayward our General Counsel is here with us. Pen White, our President and Chief Investment Officer, is traveling today and won't be able to join us.

Our outlook for 2019 remains very positive and the actions we took during the second quarter, and so far in the third quarter, have solidified those expectations. We are executing well on acquisitions as I will discuss in a moment, and on our leasing front as Jim will discuss as well. We have stayed true to our strategy and the strong performance by our team is helping us capitalize on a number of opportunities within our existing portfolio and within our targeted markets. With leasing, we are benefiting from the strong location of our properties and the underlying fundamentals in the markets. We had 714,000 square feet of leases commenced in quarter 2 with the leases that were 6 months or longer generating an 8.3% increase in rental rate and that's on a cash basis. We are still not including the lease-up of our Creekside space in Columbus, Ohio in our forecast but Jim will discuss this asset in a few minutes.

We continue to be well ahead of our expirations in 2019 and 2020. We were very active with the capital markets during the quarter. And I'm pleased with how we were able to execute with the ATM program in early April. In May, we completed an overnight common stock follow-on offering raising $56.1 million in net proceeds. We paid down the line to some of those proceeds and also funded acquisitions. Dan will walk through how we've used the balance of the proceeds since then and how we conclude that it gives us approximately $120 million of liquidity to pursue additional acquisitions.

This week, we also entered into a new $100 million credit facility led by KeyBanc. Barclays and Capital One have joined the line as well, and we look forward to expanding our relationships with them. This credit facility, we placed our existing $45 million facility, extends our maturity to 2023 and it lowers our borrowing costs by 50 basis points. It also has an accordion feature where we can expand it up to $200 million. Regarding acquisitions, during the quarter, we purchased a 485,000 square-foot property for $17 million in Indianapolis, 100% leased to 2 tenants.

So far in the third quarter, we completed the acquisition of 129,000 square-foot multitenant industrial building on Phantom Drive in St. Louis for $5.4 million in cash and an initial projected yield of 8.6%. This was our first entry into St. Louis, and we are actively working other opportunities in the market for both one-off and small portfolios. This market has similar characteristics to our other markets, specifically a large inventory of additional industrial properties to acquire, a lack of new supply and access to a highly skilled labor force.

As of today, we are under contract on a number of properties. The first one is a 7-building portfolio in Chicago, totaling just over 1 million square feet. The $32.25 million in cash and an initial projected yield of 8.25%. We know this portfolio well and it's been owned by private equity. It's a great addition to our existing presence in Chicago.

The second deal is a property with 2 industrial buildings in Memphis, totaling 566,000 square feet with total consideration of about $22 million. The property is 100% leased. The tenant is heavily invested in these buildings and recently extended their lease to 2024. We are funding this acquisition with just over $12 million in cash and the assumption of a $9.5 million mortgage. Our third deal is a 6 property, 592,000 square-foot portfolio in Ohio, 4 properties in Cincinnati and 2 in Columbus. The purchase price is $35.55 million, and we are assuming the existing loan of about $22 million.

We continue to focus on signing new leases to eliminate our remaining vacancies and renewals, closing new acquisitions in the pipeline and making additional improvements to our balance sheet. I'm pleased with how well we have performed in the first half of the year and as a result of our hard work, we have enhanced our position for an even better 2019 than we originally projected. We will continue to focus on maintaining that momentum as well as remain disciplined with our approach to capital allocation.

Jim, why don't you walk us through the leasing?

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James M. Connolly, Plymouth Industrial REIT, Inc. - SVP of Asset Management [4]

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Good afternoon. Leasing activities are in the second quarter continuing at a strong pace. During the quarter, 12 leases commenced comprised of 714,000 square feet. This total included a 141,000 square-foot short-term lease at our Creekside property in Columbus from April through the end of July. The balance of the lease that was commencing during the quarter included 253,000 square feet of renewal leases and 320,000 square feet of new leases.

Significant leases included a new 7-year, 269,000 square-foot lease with Elk at our Freeport, Illinois property, previously under a master lease with the prior owner. And a 5-year renewal on 111,000 square-feet at our Diamond Road, Cleveland, Ohio, property with Winston Products.

Overall, on leases commencing during the quarter, we had an 8.3% increase in rental rates on a cash basis over prior leases. Year-to-date, we have seen a 10.9% increase in rent on commenced leases over prior leases.

During the quarter, we executed additional leases totaling 486,000 square feet that will commence later this year, of which 286,000 square-feet was related to lease renewals in 200 square feet associated with a subtenant that will stay on for additional 3 years after Volvo leaves in October.

Also as previously announced, we executed a renewal with Ingram publishing services on 638,000 square feet that will commence during 2020. As mentioned by Jeff, I'd like to provide an update on our Creekside leasing activity. There have been numerous interested parties in this property. Over the past few weeks, we have been negotiating leases with 2 strong potential candidates, one of which is a logistics prospect that wants 3 quarters of the building over multiple years. We strongly believe that we will finalize that deal in short order, and we'll be announcing further details on it in the next couple of weeks.

Occupancy at June 30, was 96.1%, up 1.6% from Q1. For the balance of the year, we are confident that occupancy will meet our expected guidance of 95% to 96%. As previously mentioned, we have leases commencing later in the year along with significant interest in Creekside that is expected to keep overall occupancy levels high. Through June 30, of the 2.7 million square feet that was scheduled to expire in 2019, 1.9 million square feet had already been addressed with 70.5% of tenants renewing. Included in this -- in the balance of leases scheduled to expire is about 300 (sic) [300,000] square feet associated with month-to-month tenants that we are working to convert to long-term leases. We are in active negotiations on the remaining and expect to close many of these deals in Q3. In addition of the approximate 2 million square feet that was scheduled to expire in 2020, 760,000 square feet has already been renewed. Based on our prior results, we feel confident about the pace of our leasing in 2019 and 2020, and expect that we will be able to push rental rates and drive NOI growth. At this point, I will turn it over to Dan to discuss our financial results.

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Daniel C. Wright, Plymouth Industrial REIT, Inc. - Executive VP & CFO [5]

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Thank you, Jim. The second quarter operating results were ahead of what we were anticipating when we raised guidance in May. We were up across-the-board on all metrics on a year-over-year and sequential basis on the strength of our acquisitions, leasing and the leveraging of G&A. Our dividend coverage was stronger in the quarter on both an FFO and AFFO basis, and our outlook for 2019 projects the dividend to be fully covered for the full year.

The second quarter earnings release and supplemental outline our results and provide additional details. I'd like to focus my time this afternoon on the color behind those results and what we have included in our updated guidance.

For the second quarter, the primary factors driving our results were significant year-over-year acquisition activity that drove revenues, NOI, EBITDA, FFO and AFFO. We had less than a month's contribution from the Indianapolis acquisition and the recent planned acquisitions in July and August should begin to have more of an impact in Q3 and further in Q4, further enhancing the sequential, orderly progression we've been expecting all year.

G&A in the second quarter was in line with our previous guidance and includes approximately $305,000 of noncash expense, representing amortization of stock compensation that is an adjustment to AFFO. The ATM activity in early April and the follow-on offering in May increased our weighted average share count and unit count by 102% compared with a year ago and by 36% compared with the first quarter. That was $0.14 per share in unit impact to FFO in the quarter and $0.12 per share impact to AFFO, which is in line with what we expected when we completed the offering. We have factored the higher share count into our current guidance.

Turning to guidance for 2019, we've made adjustments to our underlying assumptions to increase revenues, NOI and EBITDA to reflect the impact from the acquisitions and their timing. The full year outlook does not include any acquisitions other than those stated previously.

Although, we are clearly expecting to complete additional acquisitions in the second half, as we put capital to work, we do not, as a usual practice, include assumptions for future acquisitions unless they are under agreement.

General and administrative expenses have been increased approximately $200,000 to account for higher professional fees, and our same-store portfolio occupancy remains unchanged and still excludes any lease-up at Creekside in Columbus. Our weighted-average common shares and units are now estimated to be 8.4 million for the full year, with 9.8 million currently outstanding. That higher share and unit count is expected to be in place for all of Q3 and Q4. Again, similar to acquisitions, we don't forecast any potential capital markets activity in our guidance, which assumes a steady state on the current share count in the second half.

After factoring in these assumptions and the 36% increase in share and unit count, we are now expecting FFO to be in the range of $2.10 to $2.13 per share in unit and AFFO to be in the range of $1.73 to $1.76 per share in unit.

I want to elaborate a bit more on that how -- and how we expect to put the capital we've raised to work. As Jeff mentioned earlier, roughly $56 million we raised in May through the follow-on offering would've equated to about $120 million of acquisitions, assuming leverage of 57% from sales on those transactions. With approximately $95 million put to work, we're committed already that we'd use another $25 million to complete by year-end, which would equate to incremental FFO and AFFO that is not currently baked into our guidance. The impact would mostly depend upon the timing of potential acquisitions and if they are done early in the fourth quarter or closer to year-end.

Regarding our balance sheet, at quarter end, we had 100% of our debt in place with fixed interest rates for the next 5 to 9 years at approximately 4.18%. We should also see lower borrowing costs and increased flexibility from our line of credit reflecting in our overall results in the second half of the year and in 2020. The increased availability from $45 million to $100 million, the extended maturity and the 50 basis points reduction in our LIBOR margin, are material improvements to our overall capital structure.

Our goal is to work our leverage down over time. At quarter end, we were 47% levered on a gross asset value compared with 57.3% for Q1, which is heavily influenced by the timing of the offering and the ultimate use of proceeds. We don't expect to stay at this level with additional acquisition activity, but it is reasonable to expect we will continue to bring it down a few points at a time. At quarter end, our net debt to annualized second quarter EBITDA was 7.31x compared with 8.99x for the first quarter. All in all, our capital structure has improved in a very short period of time and that should translate into better support of our disciplined capital allocation.

I'll be happy to answer any additional questions on this commentary in the question-and-answer period. Operator, we're now ready to take questions.

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Questions and Answers

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Operator [1]

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(Operator Instructions) The first question will come from Barry Oxford of D.A. Davidson.

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Barry Paul Oxford, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [2]

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Jeff, you guys had nice occupancy gain in the quarter. Was that a function of the lease-up more so? Or was it a function of the acquisition being fully leased?

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [3]

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Barry, thanks for the question.

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James M. Connolly, Plymouth Industrial REIT, Inc. - SVP of Asset Management [4]

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Barry, that number was driven by the short-term lease we had at Creekside. So it was a 4-month deal, which ended at the end of July, but we're working on that -- the new lease right now.

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Barry Paul Oxford, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [5]

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Right. Okay. Perfect, perfect. From -- I know you probably don't want to discuss in great detail, the July and August. But Jeff, maybe from a macro sense, can you help us with cap rates?

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [6]

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Yes. We -- I mean -- I think if you look through the 3 acquisitions that I highlighted, I think some of that information is in our earnings release as well. The cap rates are right in line where they've been for us. Somewhat of a -- I think, there's a disconnect in the market somewhere where large portfolios that can, whatever those sizes are, there's hundreds of millions of dollars. It seems like those are getting done at low cap rates. And I'm not so sure that's a function of the real estate or is it a function that large amounts of cash to push out. But these properties that we're buying, these portfolios in these cap rates, there's, obviously -- it's our strategy. We continue to find good deals that we can execute on.

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Operator [7]

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And next we will have Gaurav Mehta from National Securities.

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Gaurav Mehta, National Securities Corporation, Research Division - MD & Equity Research Analyst [8]

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I was hoping if you could comment on how your acquisition pipeline is looking and in which markets are you looking for new product for the rest of the year?

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [9]

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Yes. We probably say the same thing every call. I mean we continue to maintain what we call a robust acquisitions pipeline. We have a variety of sellers, they come -- there are institutions to individuals, and we have seen some small portfolios. We're under contract on 2 of them. We've passed on a few and there are always one-off deals bouncing around and we take those. So our pipeline is pretty strong, we're going through a lot of product right now, as you can see. But we're planning to stay at it.

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Gaurav Mehta, National Securities Corporation, Research Division - MD & Equity Research Analyst [10]

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Okay. And second question, I was hoping if you could comment on what you're hearing from your customers, and how was your tenant retention for the quarter?

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [11]

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I didn't understand the last part of the question for the quarter.

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Gaurav Mehta, National Securities Corporation, Research Division - MD & Equity Research Analyst [12]

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Yes, the customer retention rate, I think, in 1Q it was around 80%?

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [13]

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Would you have that?

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James M. Connolly, Plymouth Industrial REIT, Inc. - SVP of Asset Management [14]

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Our customers are enjoying our landlord skills, we've done a great job, we've gotten a lot of positive feedback from property management and leasing. For the year, the retention rate is at 70.5%. The quarter is roughly the same, so that's where we stand.

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Operator [15]

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The next question will come from Alexander Goldfarb of Sandler O'Neill.

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Alexander David Goldfarb, Sandler O'Neill + Partners, L.P., Research Division - MD of Equity Research & Senior REIT Analyst [16]

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Just a few questions here. First, are -- so the guidance that you laid out, just to be clear, that's as you stand today, with the $113 million closing by quarter end. It doesn't include the remaining $25 million that was part of your IPO acquisition plan, correct? Is that correct?

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Daniel C. Wright, Plymouth Industrial REIT, Inc. - Executive VP & CFO [17]

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That is correct.

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Alexander David Goldfarb, Sandler O'Neill + Partners, L.P., Research Division - MD of Equity Research & Senior REIT Analyst [18]

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Okay. And then are you planning any ATM? Is there any ATM assumed in the back half of this year?

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Daniel C. Wright, Plymouth Industrial REIT, Inc. - Executive VP & CFO [19]

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The guidance -- as I stated, in the guidance, we don't factor in any change on -- drawdown of the ATM or an additional offer.

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Alexander David Goldfarb, Sandler O'Neill + Partners, L.P., Research Division - MD of Equity Research & Senior REIT Analyst [20]

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Okay. But I mean I'm just saying -- but you -- I mean clearly the acquisition environment is pretty healthy, your stock has held up -- so what are your thoughts on reengaging in the ATM as you did earlier in the year? Because it seems like, from an acquisition standpoint, you guys are blessed with a lot of opportunity.

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [21]

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Yes, we are. We've had a board call yesterday, and we are going to assess the market as it goes forward. I mean the ATMs worked out well for a lot of people, and we will certainly use it if the time is right. You're right, we have plenty of acquisitions, that's not our issue.

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Alexander David Goldfarb, Sandler O'Neill + Partners, L.P., Research Division - MD of Equity Research & Senior REIT Analyst [22]

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Okay. And then the next question is on Creekside. Obviously, good to see some progress in the quarter and then appreciate the leasing commentary that's going on right now. Just given the previous description of the asset as sort of unique in the market relative to the competitive set, do you think that assuming that you have this leased up by year-end that you would seek to sell it? Or Jeff, do you think that you'll keep it based on what you're seeing in the market?

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [23]

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It's hard for us to tell what we'll do. We evaluate everything, every quarter whether we want to keep it or sell it. I think it will depend on the tenant, it will depends on what we think the role is going to be. From those particular tenants, how long this lease is and what we think the role will look like. And so that's why we buy -- in fact, we buy -- a lot of our acquisitions are that way too Alex, right? If we think -- we buy them because we think they're going to renew in 2, 3 years. We have probably an educated guess that they're going to renew. We don't always win that, but we've won the majority of that. And a lot of times, these leases are below market. So we see how this one plays out.

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Operator [24]

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Next we have Henry Coffey of Wedbush.

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Henry Joseph Coffey, Wedbush Securities Inc., Research Division - MD of Equities Research [25]

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Just to kind of summarize, just to make sure I have it right. The 3 acquisitions that you've got under contract equal $113 million in total value, some of which will be assumed by -- some of which will be financed by assumable debt, right?

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Daniel C. Wright, Plymouth Industrial REIT, Inc. - Executive VP & CFO [26]

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The -- plus the other asset we've already bought.

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [27]

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Right, so it's -- $113 million is total. That also includes the other 2 assets we have.

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Henry Joseph Coffey, Wedbush Securities Inc., Research Division - MD of Equities Research [28]

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Yes, it's 3 right?

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [29]

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Well, the 3 new acquisitions were about $90 million.

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Henry Joseph Coffey, Wedbush Securities Inc., Research Division - MD of Equities Research [30]

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$90 million, okay. And then plus the other 2...

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [31]

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That's the [goal but] -- yes, the other 2, St. Louis and Indianapolis.

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Henry Joseph Coffey, Wedbush Securities Inc., Research Division - MD of Equities Research [32]

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Right. Okay, and so -- and all of those should be on the books by the end of September?

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [33]

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Definitely by the end of September, right. These, again -- these are subject to final closing conditions but all of our due diligence has been done so we're happy with it, it's just a matter of title and things like that and those -- sometimes those things pop up, right? So if these happen, which we think they will, we believe they'll all be done certainly before September 1.

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Henry Joseph Coffey, Wedbush Securities Inc., Research Division - MD of Equities Research [34]

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And so the -- and the amount of assumable debt that goes with total $113 million?

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Daniel C. Wright, Plymouth Industrial REIT, Inc. - Executive VP & CFO [35]

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Approximately $31 million.

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Henry Joseph Coffey, Wedbush Securities Inc., Research Division - MD of Equities Research [36]

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I just couldn't get it written down fast enough. And the cap rate's in the, like you sort of said, in the 8s in total?

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Daniel C. Wright, Plymouth Industrial REIT, Inc. - Executive VP & CFO [37]

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That is correct. Low 8s, yes.

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Henry Joseph Coffey, Wedbush Securities Inc., Research Division - MD of Equities Research [38]

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And that's all that's in this guidance and I think everybody on the call would not be surprised if you then added more acquisitions during the September, October period. When you think about putting on properties, now that you've access to the ATM, what is the thought process either in terms of assumable debt or the amount of money you would borrow? So if you're putting on $100 of new assets, how much of it would you -- would have to be equity? And how much of it -- equity/cash? And how much of it would you be comfortable financing either with assumable debt or the issuance of your own debt?

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [39]

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So that's kind of a two-part answer, I think, Henry. Just as we look across the portfolio, we want to maintain our leverage, I mean we were -- our model, I think, spoke to around 57% of debt-to-book value not market value, right? So we think the market value is higher. So we think that number is obviously lower in the real world, but on the financial statements it's about 57%. So that -- we've told you that sort of at the last overnight offering that we were going to maintain that 57% and then bring it down over time. So from a model perspective, we like to keep the portfolio at 57%. I can say that on one of these particular acquisitions, the leverage is 50%, Dan? So each deal -- so the second part of the answer, I guess, is that on each deal, it just depends, right? I mean if one deal is 65% levered and the other one is 50% that's -- you're going to get you to -- your 57%.

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Henry Joseph Coffey, Wedbush Securities Inc., Research Division - MD of Equities Research [40]

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And then just more of a technical question. I noticed that property management cost, if I have my numbers right, was $6.3 million in the first quarter and a little over $6 million in the second. What -- is that seasonality and taxes and things? Or maybe you could help me understand how that works a little bit.

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Daniel C. Wright, Plymouth Industrial REIT, Inc. - Executive VP & CFO [41]

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Generally, you're absolutely right. It'll be -- some of that is seasonality and part of it again is real estate taxes and adjustments on a couple of the various locales adjusting their real estate tax rates as of the beginning of June moving into fiscal year.

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Henry Joseph Coffey, Wedbush Securities Inc., Research Division - MD of Equities Research [42]

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And then for the rest of the year, we should assume it's sort of a blend of those 2 numbers? Or assuming no news. Well, with the acquisitions obviously it'd be higher.

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Daniel C. Wright, Plymouth Industrial REIT, Inc. - Executive VP & CFO [43]

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Yes. Roughly, I would say, yes.

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Henry Joseph Coffey, Wedbush Securities Inc., Research Division - MD of Equities Research [44]

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Okay. Great quarter, and lots of progress and certainly things have moved in right direction. What numbers would prompt you to increase the dividend? What do you want to see, kind of, on a look-back basis before you sit down with the Board and say, I think it's time to raise the number?

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [45]

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Maybe it's a product of share price as well, Henry. We probably haven't really thought of that all the way through. I mean our first priority is going to be make sure our debt is going the right way. So I think that's -- our #1 priority is to do that.

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Henry Joseph Coffey, Wedbush Securities Inc., Research Division - MD of Equities Research [46]

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Well, it makes perfect sense, given your...

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [47]

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Yes. I mean like, right now, we -- listen, as major shareholders, right? We love to raise the dividend because it benefits us. But the marketplace, right now, if we can raise the dividend 20% and I don't know if the market's going to respond accordingly. I mean look at what our dividend yield is today and look at what we've been able to execute on. So we just need probably a little more time in the market. I think the last kind of -- this is good information, but I think the last -- I should -- I apologize for not putting this in the prepared information, but the overnight offering was very successful for us. We brought in 17 new institutional investors. It was about 87% institutional deals. 10 of them were major investors with major orders. So I think that's a telltale sign that they're supporting the company. They believe in what we're doing, and they've indicated that they'll -- they want to be with us into the future as well.

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Henry Joseph Coffey, Wedbush Securities Inc., Research Division - MD of Equities Research [48]

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Great. No, I mean it's a huge opportunity in your subsector. We had a commercial real estate call with a bunch of brokers and that's all they could talk. When they weren't talk about how wonderful multifamily was they would switch the conversation to how active the industrial real estate space so.

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [49]

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There you go. Retail and industrial is blending, so that's a benefit.

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Operator [50]

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I'm showing no further questions at this time. We'll go ahead and conclude our question-and-answer session. I would now like to turn the conference call back over to Mr. Jeff Witherell for any closing remarks. Sir?

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [51]

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Yes. Thank you all for joining us, and we are available for questions afterwards as usual. Reach out to Tripp Sullivan. Thanks so much.

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Operator [52]

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And we thank you, sir, and the rest of the management team for your time, also today. The conference call has now concluded. At this time, you may disconnect your lines. Thank you, take care and have a great day everyone.