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Edited Transcript of PLYM.N earnings conference call or presentation 7-Nov-19 6:00pm GMT

Q3 2019 Plymouth Industrial REIT Inc Earnings Call

BOSTON Nov 15, 2019 (Thomson StreetEvents) -- Edited Transcript of Plymouth Industrial REIT Inc earnings conference call or presentation Thursday, November 7, 2019 at 6:00:00pm 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

* Pendleton P. White

Plymouth Industrial REIT, Inc. - President, CIO, Corporate Secretary & Director

* 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

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Presentation

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Operator [1]

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Hello, and welcome to the Plymouth Industrial REIT Third Quarter 2019 Earnings Call. (Operator Instructions) Please note, this event is being recorded.

I now would like to turn the conference over to your host today, Tripp Sullivan of Investor Relations. Please go ahead.

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

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will be Jeff Witherell, Chairman and Chief Executive Officer; Pen White, President and Chief Investment Officer; Dan Wright, Executive Vice President and Chief Financial Officer; and Jim Connolly, Executive 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 of 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 November 14, 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, November 7, 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 risk 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 EBITDAre. 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. 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. Thank you for joining us today. In addition to Pen White, Dan Wright and Jim Connelly, Anne Hayward, our General Counsel is here with us. The third quarter was an active one across all segments of our company. We continue to focus on the fundamentals that are important to us as a real estate operating company. Our portfolio had strong rental spreads. We have been successful in sourcing and closing attractive acquisitions, and our capital markets activity continues to fuel our growth and improve the balance sheet.

And as we move to the fourth quarter, we expect to finish strong and that should set us well up for 2020. With leasing, we are demonstrating the value we've built in the portfolio from well-located properties in markets with strong fundamentals. To date, in 2019, we've completed 1.7 million square feet of leases with average rental spreads on a cash basis of 12.6%. Jim will walk you through the activity in the third quarter and where we are on getting ahead of 2020 and 2021 renewals.

I'm proud of what the leasing team has accomplished this year, getting our largest vacancy taken care of with the lease in late August at our Creekside space in Columbus, is a great example of that work. We were also able to capitalize on the Volvo lease termination we were expecting in the quarter, which led to a one-time fee reflected in our NOI. We leased the entire space and converted 2 of the sub-lease tenants to longer term leases. As Pen will discuss in a moment, we've maintained the momentum with acquisitions. We added 16 properties to the portfolio during the third quarter. And the fourth quarter is shaping up well with several acquisitions under agreement that we expect to close by year-end.

Our capital markets activity in the quarter included the closing of the previously announced $100 million credit facility, the use of our ATM and a follow-on offering of common stock. With the ATM and the offering, we raised nearly $81 million of net proceeds that are being used to replenish the line and fund the acquisitions. Another factor in supporting our growth that I'd like to call out, is the team we have assembled. Our team at home office here in Boston and in our regional offices in Columbus and Jacksonville, Florida, are made up of very talented real estate, finance, accounting and legal professionals.

I know I've mentioned this before, but I can't emphasize this enough. Everyone at Plymouth derives a meaningful portion of their total compensation by restricted stock grants. This enhances my long-term standing position of employees as shareholders. They've delivered time and again and are responsible for the great results that we are producing.

I'll turn the call over to Pen White.

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Pendleton P. White, Plymouth Industrial REIT, Inc. - President, CIO, Corporate Secretary & Director [4]

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Good afternoon. We completed $115 million of acquisitions in the third quarter and to date in the fourth quarter. The 16 properties totaled 2.7 million square feet, and were a mixture of one-off and smaller portfolios in new and existing markets with initial yields in the range of 8.1% to 8.6%.

On our last call, we touched on a 560,000 square-foot property in Memphis that was under contract as well as portfolios in Chicago, Cincinnati and Columbus that were also under contract. We subsequently closed on all of these transactions ahead of schedule and saw some of the benefit from each of these in our third quarter results. These are all great additions that expand our scale in these existing markets with a single and multi-tenant buildings that we know well.

We had actually worked on a couple of these opportunities over a year ago, and were able to revisit them at more favorable pricing and terms. These new tenants provide significant diversity to our rent rolls across industries and asset type. At the end of October, we completed the acquisition of a multi-tenant industrial building in the Atlanta suburb of Peachtree City for $19.4 million, with an initial projected yield of 8.4%. This property is 100% leased with a weighted average lease term of approximately 5 years.

This was an off-market opportunity that was a result of an established relationship due to our presence in the Atlanta market. Our pipeline now remains robust with new opportunities totaling over $360 million with yields consistent with our previous projections. As Jeff noted earlier, we have additional acquisitions under agreement totaling about $82 million that we are expecting to close by year end. Most of these opportunities are in markets where we already have a presence and will likely consist of small portfolios as well as of one-off transactions.

I'll now turn it over to Jim to walk through the leasing activity.

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James M. Connolly, Plymouth Industrial REIT, Inc. - SVP of Asset Management [5]

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Good afternoon. Leasing activity during the third quarter continued at a strong pace. During the third quarter, 12 leases commenced comprised of 580,000 square feet. The leases commencing during the quarter that were 6 months or longer included 294,000 square feet of renewals leases and 282,000 square feet of new leases.

Significant leases included 260,000 square-foot lease at our Creekside property in Columbus to Spartan Logistics and a 148,000 square-foot renewal with the Popcorn Factory at 2 locations in Chicago. Overall, we had a 16.5% increase in rental rates on a cash basis over prior leases with a duration over 6 months.

Year-to-date, we have seen a 12.6% increase in rent on commenced leases over prior leases. So far this year, we have executed additional leases totaling 586,000 square feet that will commence during Q4, of which 215,000 square feet was related to lease renewals and 371,000 square feet associated with leases to new tenants.

The renewals included a conversion of 123,000 square feet with First Logistics from a month-to-month lease to a 5-year lease. The new tenants included 3,000 square feet with 2 existing subtenants that took over for the Volvo lease that terminated September 30. We have been working with Volvo and negotiating their restoration and exit agreement as well as with the subtenants Worthington and Eagle Logistics for the past year, securing these agreements.

Portfolio wide, occupancy at September 30 was 96.8%, up 70 basis points from Q2, which puts us squarely in the occupancy range we had projected for our full year guidance. Excluding the Q4 acquisitions, we would expect occupancy to remain in the 96% to 97% for the balance of the year. Through September 30, of the 2.7 million square feet scheduled to expire in 2019, 2.4 million square feet has already been addressed with a 67.5% renewal rate. Only 62,000 square feet of the 2019 expirations through September 30 remain vacant. And 298,000 square feet of vacant space at the start of the year has been leased.

In addition, of the approximate 2.3 million square feet scheduled to expire in 2020, 674,000 square feet has already been renewed, and we have made good progress in some of the 2021 expirations as well. Our leasing pace remains very strong and gives us confidence that we could drive rental rates and NOI growth over the next 2 years.

At this point, I'll turn it over to Dan to discuss our financial results.

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Daniel C. Wright, Plymouth Industrial REIT, Inc. - Executive VP & CFO [6]

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Thank you, Jim. The third quarter operating results were in line with what we were expecting as we factored in the impact from our last 2 equity offerings. Our operating metrics were up, once again, on a year-over-year and sequential basis with same-store NOI growth, strong leasing spreads and improvement in our occupancy.

Dividend coverage remains strong, and will continue to be for the year, based on our forecast. The third quarter earnings release and supplemental outline our results and provide additional details. For the third quarter, the primary factors driving our results were significant year-over-year acquisition activity that drove revenues, NOI, EBITDAre, FFO and AFFO.

We had a full quarter contribution from our second quarter acquisitions and as planned, 1 month of contribution from the $91 million worth of acquisitions completed at the end of August. With one more transaction closed last week and others projected to close by year-end, we expect to continue the quarterly progression we've experienced thus far this year.

G&A in the third quarter was in line with our expectations in previous full year guidance and includes approximately $282,000 of noncash expense, representing amortization of stock compensation that is an adjustment to AFFO. The ATM activity in August and the follow-on offering in September increased our weighted average share count and unit count by 110% compared with a year ago and by 29% compared with the second quarter.

That was a $0.03 per share and unit impact to FFO in the quarter and a $0.02 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. A few other items worth highlighted in the quarter results were in our NOI.

As Jeff and Jim both noted earlier, we received a onetime termination fee on the Volvo lease of approximately $450,000. It benefited our same-store NOI, along with a 1-month benefit in the quarter from the new lease at Creekside. These were partially offset by one-time expenses related to a 2018 property tax assessment that was received in Cincinnati and the related cost related to that.

Looking at guidance for 2019. We've made adjustments to our underlying assumptions to increase revenues, NOI and EBITDAre to reflect the impact from the acquisitions and their time. The full year outlook does not include any acquisitions other than the additional 82 of acquisitions that are under agreement that we are expecting to complete by year-end.

Despite the additional $115 million of acquisitions completed since second quarter, we've kept our full year G&A forecast range unchanged, reflecting the leverage we're anticipating from previous additions to our team.

Our weighted-average common shares and units outstanding are now estimated to be 9.66 million for the full year with 14.45 million currently outstanding. We do not forecast any potential capital markets activity in our guidance, which assumes a steady state on the current share count.

After factoring in these assumptions and the increase in the share and unit count to date, we expect FFO to be in the range of $1.95 to $1.96 per share and unit, and AFFO to be in the range of $1.62 to $1.63 per share and unit. There appears to be some confusion on this new range presently. So let me offer some clarifying remarks. We have wanted to remain consistent all year by sticking with a full year range rather than guiding by quarters.

Our assumptions note that the full year outlook is based on weighted average shares outstanding for the year of 9.66 million and 14.45 million for Q4. For the full year FFO range that would equate to FFO attributable of approximately $18.9 million to $19 million.

For the year-to-date period we've already reported $12.179 million in FFO attributable, implying that, that would leave $6.7 million to $6.8 million available for Q4. Doing the math on a per share basis with the 14.45 million shares outstanding would result in a Q4 range of $0.46 to $0.47 for FFO for Q4.

For the full year AFFO range that would equate to AFFO available of $15.6 million to $15.7 million. For the year-to-date period, we've already reported $10.191 million in AFFO attributable, leaving $5.4 million to $5.5 million in Q4 available.

Doing the same math as above on a per share basis would result in a Q4 range of $0.38 to $0.39 for AFFO for Q4, clearly covering our dividend of $0.375 per share. 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 4.15%.

At quarter end, we had no outstanding borrowings on our new credit facility as we've been able to pay that down with -- from our capital markets activities, and it will provide a substantial flexibility to continue pursuing our growth opportunities. We are continuing to bring down our leverage incrementally. Our goal is to work our leverage down over time as we have stated previously.

At quarter end, we were 41.6% levered on a gross asset value compared with 47% at the end of the second quarter, which is once again, heavily influenced by the timing of our recent capital markets activity and the use of proceeds. We would reasonably expect leverage to be in the mid-50% range with additional acquisition activity as we bring it down a few points at a time.

At quarter end, our net debt to annualized third quarter EBITDA was 7.11x compared with 7.31x at the end of the second quarter. We've made a lot of progress on our capital structure by staying disciplined on our capital allocation, and it's been a critical factor in driving our growth in 2019.

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

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Questions and Answers

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Operator [1]

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(Operator Instructions) And our question comes from Gaurav Mehta with National Securities.

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Gaurav Mehta, National Securities Corporation, Research Division - MD & Equity Research Analyst [2]

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First question on your guidance. So your same-store portfolio guidance of 95% to 96% has been unchanged, and as far as I recall, it did not include any impact of Creekside lease-up. And now that you have leased up Creekside, I was wondering why the guidance did not change on the occupancy side?

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Daniel C. Wright, Plymouth Industrial REIT, Inc. - Executive VP & CFO [3]

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I'm not sure I completely understood the question. You're wondering why our guidance didn't change regarding what?

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Gaurav Mehta, National Securities Corporation, Research Division - MD & Equity Research Analyst [4]

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On the occupancy side. So as I recall, on the last call you had said that Creekside lease-up is not included in the occupancy guidance. And now that's leased up, the guidance is still unchanged for occupancy. So I'm assuming that means the current guidance includes the lease-up of Creekside, right?

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James M. Connolly, Plymouth Industrial REIT, Inc. - SVP of Asset Management [5]

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The guidance for the rest of the year on the same-store should be 96% to 97%, which is up a bit. It was 95% before.

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Gaurav Mehta, National Securities Corporation, Research Division - MD & Equity Research Analyst [6]

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Okay. All right. And I guess on the capital markets side, I was hoping if you could, maybe, talk about how you're viewing issuing shares under ATM versus follow-on offering?

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [7]

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Yes. I mean we can't comment on future at market activity as far as that's concerned. We have used the ATM as disclosed in the Q. For us, that's -- it's a very attractive cost of capital. It's increasing our liquidity. And as you can see across pretty much all the REITs out there, it's a very efficient way of doing business. So we are -- we're happy at the way the ATM's worked so far. And in the future, we would anticipate continuing that. As far as additional capital markets activity in the future, we can't comment on that.

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Operator [8]

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And our next question comes from Barry Oxford with D.A. Davidson.

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Barry Paul Oxford, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [9]

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Jeff and Pen, are you guys are still seeing enough stuff when you look out over the horizon in the marketplace with the 8-plus-percent cap rate? Or do you think as we move into 2020, we might see some cap rate compression? Although your cost of capital has going down, so your spread would still be good. But do you think we're going to kind of dip more into 7.75% or not necessarily?

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Pendleton P. White, Plymouth Industrial REIT, Inc. - President, CIO, Corporate Secretary & Director [10]

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Barry, it's Pen here. We're -- our pipeline is full of properties that are in the cap rates that -- cap rate range that we have experienced over the last year or so. I don't see really too much change from that standpoint. As you know cap rates when we acquire properties, cap rates only tell a part of the story.

So there's more that goes into the acquisition or analyzing the acquisition in addition to initial yield. But by and large, for the most part, our -- as we look out on the horizon, we do anticipate pursuing acquisitions at cap rates, on average, kind of between 7.5% and 8.5%, in that range. But again, there's always some anomalies to that.

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Barry Paul Oxford, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [11]

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Right. Right. Exactly. Exactly. Jeff, when you look at your 2020 acquisition plans, let's say the capital markets window gets a little tight. I'm not talking about like '08 or Armageddon or anything, but just get a little tighter and stuff. Would you still be able to maneuver to kind of achieve what you want to achieve in 2020? Or would you have to kind of dial it back maybe?

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [12]

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Well, Barry, I think that's -- I think you've answered your own question.

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Barry Paul Oxford, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [13]

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Right. Yes, of course.

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [14]

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So I think we're at a point -- you look at the yield that we've achieved, you look at the NOI growth that we've demonstrated. We think that continues. I mean every other Industrial REIT is saying the same thing. But specifically in our portfolio we think that continues. The spreads are there. Our rates have come down significantly on the debt side. The debt markets are wide open.

So again, we are at a point now where we're covering our dividend substantially. If we achieve the embedded NOI growth that we have over the last couple of years, we are in great shape. I wouldn't listen to all the fake news headlines that have been put out this morning on Plymouth's demise. But we are excited about next year, and you're going to see it. I think you're really going to see it.

We have -- I think if you look at the last offering, I didn't bring the stats with me this morning because I was focused on the news. But we, in this last offering, which I probably should have put in the opening remarks, we brought -- it was 87% institutionally subscribed, the offering. We added 3 new, what we would consider, long-term significant institutional investors that came in, in that transaction. We've met with these investors. We have listened to them. They like the story. They, I think, will continue to be there for us.

They see our opportunity to grow. The fragmented market, all the things we've talked about that have gotten certain other REITs to scale and size profitably. There's no reason that doesn't apply to us. So that's a long-winded answer.

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Barry Paul Oxford, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [15]

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No. But I appreciate that. And in a way, Jeff, it was hidden agenda to kind of pull that out of you. I appreciate it.

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [16]

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We appreciate that.

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Barry Paul Oxford, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [17]

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Yes. And then one more for Dan. Dan, when you look at the G&A going into 2020, are you guys set from a personnel -- I'm not talking about, maybe, adding another accountant. But as you're looking in -- or are you going to have to hire some kind of higher level people to kind of keep up with you all's growth or are you kind of set?

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [18]

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So Dan had to step out. He's been fighting a cold this week. So now he just stepped back in, so I'm going to let him answer a question he didn't hear. We can answer that question for you. So we have added -- we filled in some holes, if you will, on some certain positions that are more at the operating level, the property level.

And the holes are really for this new properties that are coming in. If you heard through the prepared remarks that Pen put out there, we've got a significant number of properties under contract.

And where we have existing -- mostly, in existing markets. So in our Columbus office and even in our Jacksonville office, we've added some people there to support the on-the-ground operations, the property management and the repairs and things that we do.

But to answer your question for high-level, that's not needed. I think we've outlined out of the last couple of years since our IPO that we've got a great executive team. We don't really need to add to that. And most of the growth will come at the operating side. But as we add properties, yes, we're adding a property accountant we just recruited just the other day.

So we're very excited about the team we're putting together. And our G&A numbers, we're right on track. We continue to -- as G&A may go up, as we get bigger, the percentage to revenue is coming down.

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Barry Paul Oxford, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [19]

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Right. That's really -- that's my question. That's what I'm driving at Jeff, yes.

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [20]

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Yes. And we are right on plan. So we are -- we feel good about it.

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Barry Paul Oxford, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [21]

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Perfect. Great. That's -- yes, that's what I was driving at is the percentage of revenue.

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Operator [22]

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(Operator Instructions)

And the next question comes from Alexander Goldfarb with 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 [23]

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Dan, appreciate the quarterly guidance comments for the fourth quarter. Just going through the Volvo lease, appreciate that the $450,000 benefit to the third quarter. But just as you think about -- and for us who are modeling you and you can see consensus, there's a variety of estimates. What would you say is the run rate quarterly FFO estimate?

So not including anything other than what you guys have talked. So you closed the $82 million, all the activity goes on. So you talked about a $0.46 to $0.47 range for the fourth quarter. That's sort of a partial. What would be sort of a run rate if everything in the fourth quarter closes and sort of a steady state, as we think about our 2020 to build from?

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Daniel C. Wright, Plymouth Industrial REIT, Inc. - Executive VP & CFO [24]

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Well, I think the first thing, Alex, is the fact that we're going to continue to work off an FFO forecast on an annualized basis. Obviously, the -- as you get into the end of the third quarter, the fourth quarter becomes the one quarter that is left in the annual statement. So that's probably the first time you're actually going to be to calculate, if you will, a quarterly guidance figure.

We will probably -- we'll continue, at this point in time, given the accelerated growth, to literally have tripled the size of the capital base of this company in just over a year. Makes it very, very difficult to have solid program on a quarter-to-quarter basis and be hamstrung accordingly. Particularly if we're reporting on a weighted-average basis versus a math basis of quarter. One quarter plus second quarter plus third quarter, you end up with a different result, which is what we've tried to explain during the course of this -- of the earnings call.

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Operator [25]

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And the next question comes from Daniel Santos with 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 [26]

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It's Alex. I don't know what happened, my line cut off when you were answering. So I heard the response on Dan's line. So the next question is, I think, Pen, you've talked a lot in the past about the embedded NOI growth in the portfolio.

And just, what would you say is the sort of expected growth from either signed but not yet commenced leases or your expected roll over that you should -- that we should think about as far as growing NOI from the core portfolio, not simply from the additions.

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James M. Connolly, Plymouth Industrial REIT, Inc. - SVP of Asset Management [27]

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Yes. This is Jim. I'll address that question. Right now, the leases we've signed to date have a 16.5% increase over what was in place before. So that's going to continue into next year. That number will come down a bit.

But we're going to have that NOI growth that we built up this year carry on into next year.

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Daniel C. Wright, Plymouth Industrial REIT, Inc. - Executive VP & CFO [28]

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The net result of the -- off of that cash basis, your results, flows through strictly onto the NOI, probably have an embedded number that's somewhere right around 2% in the existing portfolio that you think you're going to see...

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Alexander David Goldfarb, Sandler O'Neill + Partners, L.P., Research Division - MD of Equity Research & Senior REIT Analyst [29]

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Okay. That's helpful. Okay. Dan, I mean sorry, yes, yes, Dan, that's helpful.

And then a final question is -- maybe Jim. As we look at your new lease versus your renewals. Your new lease, you guys are getting great, great spreads. The renewals, though, are a lot lower. Is it something about the nature of the tenants you are replacing? Like maybe, when you're buying it, you're noticing, hey, there are bunch of older tenants that we know are going to go out and therefore, we're going to get big rent bumps? Or is there some different dynamic that's going on where the renewals are in the single digit, but the new ones are up sharply? Just trying to understand the drivers of that.

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James M. Connolly, Plymouth Industrial REIT, Inc. - SVP of Asset Management [30]

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So there are several things there that influence those numbers on a quarter-to-quarter basis. For instance, the renewals were down slightly this quarter, but they included 1 lease that was going from a 1 year lease that was expiring to a 5-year lease. So the rent was much higher on the 1 year lease, so it came down like 6% or 7%.

And then additionally, there was another deal that was a 1-year lease, and it went to a 7-year lease and that came down 3%. So there's some of that. So each quarter because you don't have entire portfolio yield, only looking at a small sample, the percentages could be skewed.

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Alexander David Goldfarb, Sandler O'Neill + Partners, L.P., Research Division - MD of Equity Research & Senior REIT Analyst [31]

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Yes. I was actually referring to the year-to-date because as we all know quarter-to-quarter can be quite volatile. That's why I was just looking at the year-to-date. But okay...

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James M. Connolly, Plymouth Industrial REIT, Inc. - SVP of Asset Management [32]

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Right, what you're saying would be similar to the same, but there's some -- like in the new leases, there might be some space that wasn't previously leased before that might drive the number up a little higher.

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Operator [33]

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And at this time, I would like to return the floor to Jeff Witherell for any closing comments.

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Jeffrey Earle Witherell, Plymouth Industrial REIT, Inc. - Chairman & CEO [34]

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Yes. Thank you. So thank you, everyone, for joining us this afternoon. We look forward to seeing many of you next week at NAREIT in LA. And as always, we'll be available for follow-up questions. Thanks again.

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Operator [35]

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Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.