First Industrial Realty Trust (FR) 20 Apr 232023 Q1 Earnings call transcript

Good day, and welcome to First Industrial Realty Trust's First Quarter Results Conference Call. All participants will be in listen-only mode, [Operator Instructions]. After today's presentation there'll be an opportunity to ask question [Operator Instructions]. Please note, this event is being recorded.

I would now like to turn the conference over to Art Harmon, Vice President of Investor Relations and Marketing. ahead. go Please

Hello, Marliese. welcome our to Thank everybody, call. you, and

our our Before let results that These forward-looking statements first expectations, securities and on and by discuss as me may defined statements our everyone are year, XXXX laws. the estimates quarter we of federal prospects. include for updated remind management's based call plans guidance our

statements April obligation sensitive our Today's accurate which only differ our date, be to other described today's are no assume time may and cause our the could we XX, may forward-looking information We SEC XX-K statements of XXXX. results factors other provide. and or update as filings. in this statements Actual and from materially

discussed earnings our report Investors SEC under in today's You tab. The a release. filings firstindustrial.com can release find call and are supplemental measures reconciliation and our the report, financial of earnings supplemental at our available in non-GAAP

Jojo Markets and are Our call Officer; up with today and Senior Peter Musil, Walter, Peter remarks your and open by will our Operations; Investment begin of President Chief Chief Also President; Officer; questions. Management. we'll Chris after Chief us with Schneider, for Schultz, Scott Executive Vice it President which Executive our Financial President Vice Bob and of Officer; Asset Capital Vice Yap, Baccile,

Now let me hand to Peter. the call over

us for Thank XXXX is today. you, to all off excellent Art, joining thank and an start. you

tenants leasing our record maintaining and increasing track Our occupancy, of leasing on success, renewal new team for strong its securing continues new rents high developments. and capturing

FFO rate for we and our rental our cash of guidance. result As our estimate performance, raising a our full year XXXX are

coming within of nationally U.S. to online Fundamentals XXXX broader this continue developers There's up supply capture as amount drive in market. demand. and and high markets. occupancy, rates ramped incremental Moving target fair new to a now year of to the both our industrial

costs higher of new lower and constrained year to land to due throughout lending acquisition capital compared decline last However, we XXXX volumes. environment starts expect to

developments, holdings we positioning current are most our land-constrained Given conditions land focus market feel the on projects as primary to our as continue for our go as our warrant. well of which good new to ready about coastal markets of

continues an to first straight-line first a quarter rate and We our of portfolio market. the rental XX.X%, were finished for up for in On performance XX% the the a quarterly quarter outpace leases in national new rents our company. the occupancy Our cash record rate change with commencing was basis, XX.X% quarter.

of books XXXX of a lease As cash at our the rental in expirations rate approximately XX% yesterday, are of increase XX%.

Given our on release to will on now our is rental February increase midpoint the percentage new XX%. date we and than that be anticipate range midpoint we the our signed XXXX expirations, call. of new and for renewal on our X points This the is to rates higher XX% leasing in expectations remaining provided

Lehigh Valley on XXX,XXX Moving our last Pennsylvania. Miami Centre first of our in call, and XX% XXX,XXX market square Park Since XXX,XXX leased leases of foot foot Lehigh Seattle. building foot the XX in building, First full first the earnings for we signed steel to the square Logistics building development square We activity.

leased. park lease our project X in XXX,XXX a foot foot at inked loop first That XX,XXX XX% now building also is square We square completed logistics newly Orlando.

First great in Airport to dynamics located development from just with in the site ground Given we crossing market. The leasing the Philadelphia infill our its and XX State the I-XX and access Philadelphia on both submarket, progress broke I-XXX. is miles metro favourable supply-demand

estimated yield of and investment First a with State Crossing foot square cash million will projected XXX,XXX facility a X.X%. total of be $XX a

projected million, which cash first X.X yield square investment margin leased. The million quarter totalled feet overall approximately which expected investments of currently start, with development XX%. process an these in represents of the development for is $XXX X.X%, Including XX% developments an our are

land support balance XX.X exclude on In at basis. costs potential and book today square our remaining today's million can of land our sheet investment venture. an estimated total, the of approximately feet. additional construction new land based our the in $X.X These Phoenix our joint This billion figures share represents

Speaking that $XX for a acres quarter, venture, of price centre the first of XX in we user sales data million. to sold a

Our the fee approximately agreement XX acres, the provides two In an next incentive them into before an within was $XX the tax sale, conjunction with gain with buyer, venture an to share the in which million. of years. additional entered option purchase this

the of $XXX,XXX to this approximately a lease two share lease years, of our and up required the ground to is rent is month. buyer agreement, part As ground for the

you over some a we've results entire months' fourth little lapse from call, see, with As quarter great two time across our activity can platform. and had our

it to I'll turn Scott for over With that, his comments.

Thanks, Peter.

fully me quarter. to diluted share XXXX. operations compared were per recap XQ for in share $X.XX Let from results our per $X.XX NAREIT the funds

Our $X.XX tenant a first associated of per to accelerated departing related improvement of included the recognition results Dallas. reimbursement tenant share quarter income in with a

per share quarter $X.XX. this impact, was first $X.XX Excluding share XXXX per FFO

we successful space backfilling rental in As the cash were gross with rate increase XX%. Dallas a of for aside, no an downtime

results free leasing, quarter, and were the rental embedded rates in fees, renewal bumps Our increase our real rate offset occupancy, and quarter termination estate by rental NOI excluding rent was in higher the an driven taxes. The by leases higher in partially cash in same-store growth increases average new on for X.X%.

XXXX. compared finished basis we XX.X%, down to in-service up As noted, of XQ Peter XX occupancy to compared quarter with points XX basis and the points year-end

maintaining job Our great move-outs. so team our high tenant the by demonstrates was quarter-to-quarter of XX%, occupancy retention backfilling level square our by footage

activity square our leases with new, renewals lease-up. developments leasing were for the commenced. and approximately million million were during X these, million XXX,XXX and quarter, X.X Of Summarizing were X.X acquisitions

on earnings last release guidance our updated our XXXX to Moving evening. per

guidance now FFO per is Our range NAREIT to share. $X.XX for $X.XX

our $X.XX. is midpoint $X.XX we a monthly range lease from earlier, I increase Peter income share venture midpoint ground to our joint Excluding per is to due and mentioned. our our primarily discussed the share $X.XX at performance share a per rent of that item $X.XX guidance receive the This $X.XX of the leasing to expect per with share

recognized for quarter follows: points of increase are a call. NOI growth occupancy basis $X.X termination at XX fourth claim as XX.XX% Same-store end of basis to earnings compared assumptions the to XX.XX%. of calculation on XXXX. same-store in in-service insurance the income our prior fees that average cash excludes guidance an before midpoint of to to Note settlements million Key X.XX% quarter X.XX%, the related of

of earlier. Guidance includes to rent from anticipated at discussed of per our the ground XX. includes XXXX share primarily Guidance $X.XX share under FFO related related and the to joint developments costs March construction ventures, our completed

capitalize does per the future For of expense share about the of of not nor million. new guidance after our debt is potential call. impact at unchanged $XX repayments G&A equity we year In any to the sales, interest. this reflect fees full to XXXX, Guidance $XX range starts, or development $X.XX expect issuance acquisitions, million repurchases

me over turn back Peter. it Let to

Thanks, Scott. XXXX is off to a great start.

were and continues opportunities extension creation. and assuming results XXXX, outstanding, value the growth with take well drive no of cash to also options. long-term capital a flow new to portfolio Our base We're strong FR maturities advantage positioned debt team until and

we on laser-focused and on team, As a executing growth development our rent are opportunities.

up open we're questions. Operator, with for that, to ready

Marliese?

from And Ki Truist. [Operator our Bin Ki first ahead. from comes Instructions] Kim go please, question

prospect the about you seeing and you're Thanks, might pipeline over have guys good your talk how morning. that couple of development Can the quarters? activity that in changed past

sectors. broad-based and all good morning, to of the continues projects be Ki, it's across activity Peter. Generally,

has to continue beverage, several months. strong and would that see We XPLs, say, and demand retailers, from I from from pretty broader it's the gotten been food consistent, e-commerce, over medical, automotive, last

leased than Nashville building not Florida, to In prospects has see pretty year. interest continue full been of worse Jojo? and activity And would beginning we terms on say in completed from not been our buildings, of since consistent, partial assets. better the it's those the or the and I Denver, yet

construction. includes Sure. more inquiries the including And other that request proposals, on on completed to or for product add either RFPs, tours, existing and to showings responding that's just activity detail

those of XXXX. last the we is We Bin, on Ki recall, years. mentioned characteristic very, good demand see activity you'll were Overall, call, normalizing. And XXXX, the very

kind is COVID good. coming pretty we're by of activity the created bubble prospect off and So

do less, right, guys in little the given coming least a are that it see, enter the a potentially do the economy? you little guess, start although throttling -- everyone And in about I in term, patch soft absorb coming as of bit on you a sees the remarks at to think mentioned the volumes. you of be supply we near as the future a opening we decent your a pipeline Okay. amount how development might in, potentially bit like But amount supply of supply trying

right not coming year. XXX in see We three coming. space million now, about and significant to XXX is includes this we're XX%, XX is that in the feet that square that There Yes. pre-leased. of our XX% markets, investing About million

So it's also all spec. it. -- not we see keep but And

bump starts, XX% in going and to So far, in probably quarter, it's this big continue vacancies first to down But decline. will we so to a up little pretty slowdown also a see that we XX% bit. the year think

probably little see are they next maybe year, vacancies of now, of come towards you'll a end so where back lower. the to And bit even kind

leasing the that the the a we all. build. we obviously of market, to It short where We'll And vacancy but it's in dynamic a going health keep decide don't will to tick see landlord dynamic impact remain changing what the at clearly again, the eye see markets going is it. an and think we're when will to So in market. we term, the on impact up

that to they the note our country. look two California You'll several in the ready markets Florida, go, now at right have of and pipeline, in projects primarily that are and you strongest we development if are

Okay, thank you.

next Rob, Stevenson our from from question ahead. Rob Janney. please And comes go

Fourth this XX% at average about midpoint. quarter the and XX% quarter on was

you Is Given on seeing of overlapping or on about good first that? How what's Any construction the margins completed, that sort crossing difference you're really there? the be projects, that we that cost high margins there's day project? deal thinking should the stuff read-through on pressures rent overall? a lower of that

sorry, didn't again? the question XX% Can you hear. don't but your first, Yes, really it we I know, of ask

Sure.

So Peter, development of about on mid-XXs is margin sort XXs was profit you high the expected It talking pipeline were last quarter. and average. the

quarter And that fourth thinking here, on How or project? bunch you framing a through between stuff that completed, how it sort lower Philly there? the pressures? margins on be we cost projects and first Is should that? rent read that? Given there's on high what's construction of just Is that the about you overlapping the quarter difference margins of are

That pipeline. a development the can and take at whole Jojo XX% crack jump I'll relates in. that Philly, not to

points. basis that note have XX to the last adjusted we assumption In our just rates. it have bumped cap We we on quarter, up

go year, over if points. last to cap started rates, we for about basis margin our talking So XXX back this increased we you little cap assumption time have calculations first our when bit rate a

will that that an on the talking margins we're have about obviously today. impact So

Yes.

So XXXX wise from profit rate XX increase that for the in margins. movement is the the date. primary from basis It's point a cap roughly QX reason QX to

As was really. no movement there -- course, keep were that terms accurate cost we slight construction but of in of in rents Rob, slight there were the so tweaks, all and

And that rate so in the cap the contributor the major margin [indiscernible]. for increase self-imposed difference is to

or And side few are the where quarters? relatively days? you these labor real material still and relief construction over construction is the last cost any been on it's Or seeing in

criteria if XXXX, Because But construction be moderation. there X% bit We construction continue low of going depending you flat actually We a will our escalation. when question? to more up. trended Good internal little already that doors came came steel up QX Okay. down, some that dock some should answer a a the and is to upon to compare there bit. starts slight downside components your QX were feel Does a cost total to The that are at for We a but number Concrete, decrease increase. question. it's underwriting think little came also use actually electrical XXXX, moderate. cost think we the see level, prices starts. moderate construction

That's terms in availability today is What Thank Absolutely. your are pricing and seeing And financing? Scott, you great. you. cost what best then, of on of debt debt?

pieces. the closed knows, One, August million at last two of I loan market bank break on has year. in everyone term into it That quite loan a market. as changed look the -- would $XXX term we And I loan would bit.

have not deal. And upfront five-year of if strong to changed, seeing maturity was you're has a the increased banks the considerably. Our but is what The with would market, relationships have say term. you probably grid I the three fees in pricing two years

So, the August is compared other the doing costs, the including market, to say and up. I that option XX-year where to private were is we a would spreads XXX were maturities a at we're or as total at deal, term bank would fees you loan deal aren't have today at look long, points. I say basis And to public XXX placement. bond if probably on a

then price acre or here And that helpful. first million quarter? to XX? between me. one purchase in land Camelback different XX anything of the similar option, That's the one there Okay. first XXX did the and for is is fairly you And at the in last a X.X acres The the the quality last use of terms

the that confidentiality wants. pricing competitive on I that reasons, on comment and rest Rob, the acres can will XX tell you land the for it's I buyer the of

say numbers. lot use -- And would the terms and one bought on has of they would that we And I of lease in their two corners, you a be disclosed is ground similar use freeway. the frontage published on so and it the to this with

So but maybe suite it, one that's use. about It's same less it. from

Okay, Thanks guys, the appreciate time. perfect.

go Capital we Thomas Markets. Todd, please And from question a ahead. from have Todd KeyBanc

Yes, to on bit just hi little follow a I some of leasing. development Good up morning. the wanted thanks.

XX I think running should 'XX that And you've not months XX-month delivered think to average. any the months right? that pace from projects downtime the of been you leased the in closer might how we be on six up, assume But risk before here? guidance is do to completion I any that mark? And from to know see about lease continues of

we do the in I and post downtime for The shorter. kind peaky that right. completions. XX-month to business, XX-month mean frame So Doesn't on continue of lease-up would great we going assumption. forward. our our changed of XXXX-time couple yes, why use not We it's you're a assumed being new as that's have last been don't characterize confidence downtime have years,

we 'XX if fact, markets be and we'd all had we like going In fine. have XXXX forward, in just

So assumption that's there. the

some that projects leasing respect Jojo, region? on and pipeline are of to want With the about talk guys to development you the and in the existing completed, your Peter projects

I Todd. projects but to One would of commented comments. some all I add the two buildings deliver on Peter's before, Sure, is of our moving say to we things ready.

permit So and outfit there's building. not time lead the a to long

about convert we feel us that can So XX happen quickly, leasing months. fairly makes the within to the extent deal, a which pretty good

say larger The continue to the in are particularly see they given make environment, capital is environment second I would some of the their cadence they market midsized macro investments as from slower assess decision-making would smaller tenants little thing tenants, to we as of that building. continue the The bit the better. and a

bigger decision-making of I general, XX the say how good in would of these And tenants. we'll within months. leasing we to all of continue see some the So feel with about some goes

anything Jojo, want to else you add?

you and already see the really that projects Yes. add we're under about here completed. Yes. that to want I just excited construction

are cell Northern super of I and infill and the California, in SoCal construction, markets, primarily mean, Florida. them under markets coal South of in terms XX% about In Cal,

would so projects, And of look top you top constrained the and they're at designs if but these say not the all only very tier tier, I markets.

really pipeline. we're happy So very this with

so down our to job that time. beat And is months of XX course,

opportunity the quarter's SoCal that Southern not worked of role going had Are during sort then with XX% that, in year's I guess, been role Or you in this to of still be percentage Okay. now And helpful. through through outsized of is yet. change there year highlighted addressed has results? with that that role the this portion in you previously forward, this California year. in had of terms rent That's you an some

Chris. Yes. This range XXX,XXX look Actually, three square our to largest remaining you up feet. XXX,XXX feet rollovers, at they is if from square

Empire All market. of those rollovers are Inland in the

Okay. an Does up, is the assume they guidance occupancy And assumption. that guess, then last have in leased just third guidance and the Road around the question lease the quarter? I Post old executed still

is That's correct. Todd, Scott. this

Okay.

would that's in the decrease the balance year-end. the think imply, that? by -- greater outside occupancy guidance, underlying so little assumption occupancy the I XXX assumption to points guess terms guess, of of in then I that over in occupancy basis of for add guess So I of right occupancy about the terms an a that would way throughout what of portfolio. Is that sort even of trajectory the that occupancy

Well, we occupancy and gave that a quarter range of XX.XX%. end was average

stand higher we're today. that than we as So

in rate on, as slight having an occupancy. see a yes, decline But go still we we're So XX%. occupancy the very, quarters happy above very quarter-end with

points... a guidance, over though, basis basis the And assumes little that XXX -- points XXX Okay.

assumes third guidance in quarter Todd. only old and in place the because basis occupancy it in it's it's in costs It points the up assumed average But our that leased XQ, for lease quarters. two impacts to by yes, up XX quarter, only

Got you. it. All right, Thank that’s helpful.

we Anderson Rick on I while a just from unmute question second And will follow with Rich, from hang you. a SMBC.

Rich, Okay, please. ahead, go

did to this sort the and other you number number the to like degree are money nothing CapEx what of just cash In if first-generation that? you. To space. into you terms the So what would get blocks the influencing you building the spend even XX% is XX% curious, to of nearly releasing tenants that congratulations or spread words, attract what to -- the in is I'm bananas second-generation be?

they that the Chris, leasing on materially. changed really Over haven't costs average, and

a where entire little if that leasing really net XXXX. at of a were the we ones is for kind in and rent cost than the actually -- Yes. number, already, the look of One percentage of bit at statistic that we of percentage our number And lease over you as signed x the is look but lower TI term.

any not spending higher. So we those money get more we're of to those -- so

tenant are are buying These Todd. rents through not allowances we're in above-market it, saying our results. standard of increases improvements, in included way Another that

no And concessions. additional

In or are or in is. fact, there California as some renewals deals

Okay. Good.

then side, and you So it's number. a tenant I the And to their commitment had Scott, night pretty about a pure space. development on chat last quick

You their financially they're making bit dime? anything on their Are to and What suggest that seeing me? decision you to as guys the making that's they're tenants build-out fact making talked to decision commitment in not larger slower moving financial commitment general. a interior they're process. a tree about of the about just on for about space perhaps you that the that the of maybe slower talk moving Can in top commitment the much

is No, any What we commitments of not Schultz. level to taking Peter seeing in because this decisions seeing Rich, they're degradation their we're large. are make commitment. just real is the longer are the the

or tenants So we no the buildings, operate not growing, how we program in what see anticipate, probably to buildings of larger that the equipment the handling sophistication continue change and in particularly shrinking. their material given in

but Could of type more make, you the the racking basic a the typical of percentage investment an quantify how Can quantify much you really that of are sort which beyond system, much investment? tenants makes of tenant willing is that as sticky? higher something? does How much just a to how tech of

We again. general, really don't tenants Peter see directly. that it's Right, contract those work for costs in the

want activity Jojo, not that we're anything in you part. add for that? to really to involved So most the

expenditures. forklifts charging the mentioned, to in mean stations changed. I addition that And really materially and we're to has are but No, -- not all standard net I not of But I mean Todd open there's expenditures, dock nothing overall, racking packages. investment the then sometimes these mean, the investment

thanks very much. Okay,

Scotiabank. We question go Yulico ahead. the from please from will follow up Nicholas with Nicholas,

McGinniss with is on Nick. Greg This

everyone. morning, good So,

was debt $X.XX with raised Camelback, from in $X.XX guidance. from same-store from share growth potentially Just looking assumption expense the more guidance, $X.XX which a FFO embedded bad at interest, $X.XX per midpoint the from the capitalized at the

the the impact that year? guidance the very should leasing. with the year? appears given and original of what we Was expectations the range healthy year-to-date combined end towards really to line more So now $X.XX leasing for in be for Or looking top

Yes.

$X.XX you let primarily from early share per firstly $X.XX as to primarily on due was Park increase XX examples, leases. joint the the share just to leasing per due things high Miami about me First ventures, correct FFO increase. the So in development was $X.XX the on

that the got You're our three in that assuming $X.XX was quarters for correct that of interest interest absolutely we're increased capitalized netted against to remaining credit, rates so an line offset increase it. in was our by

is, an quarter, by to what leasing. only due compared points, would to what say the it increase you our made runner But with fourth in was now increase I was increases guidance if was change cash on basis at to new in same-store that we look do renewal the the sides better the and FFO rates the and has XX guidance

this One other fourth point we the our to midpoint also, if $X.XX. to to want make on relates remember call quarter you

in per fourth Our regions were estate values following impacted that it's quarter by in in we mentioned call, to fiscal increases we share. the We're up. negatively collect being real about market The in there Denver, taxes going was $X.XX year.

if midpoint take So would to negative our share. out per $X.XX impact, be FFO were you that

Right.

following is should viewing bad And touch you I on in growth? millions tenant guess debts. list assumed disclosure longer today? the watch you no this some same-store tenant of how look within Okay. like? there. your of just that appreciate And changed the the are what there? I tenants I quality quarter, what color top credit if movement on the Is following guess And up

Sure.

in about from the list, we're compared unchanged tenant bad what so bad assumed the having would compared seeing timely. is been owned was debt low per expense to in tenant fourth guidance. far and for for up but quarter, ADESA we are fourth as I They've watch watch by to $XXX,XXX and bring which I say Quarters will would very the X expense $XXX,XXX quarter. was I quarter Carvana. we X, say, guidance some financial quarter. material $XXX,XXX ADESA, nothing call on quarter problems, rent in the list, front So as on our talked which quarter our original the the but debt what XQ

you. Okay. Thank

go Goldman is coming from from Caitlin, please Caitlin question next Burrows Sachs. ahead. our And

another had you on quarter lease just development upside shift it last follow-up the $X.XX seems about you've last the of guys early how guidance in of I yes, from talked mentioned the like you -- potential $X.XX just quarter, know of kind that. recognized So up and

development of is for wondering just $X.XX from could still I'm timing Or another in lease-up since developments, are there's potential? not of we're So that on the already we how quite it that forward. go a is Does new perspective year, it amount. mean where

wondering gating much XX-month kind on Just of still lease out, how there is? the potential keep

Very good question. Caitlin, talked about. leasing I you're right. that due $X.XX to We of did up that pick early development our

We of early related have if That leaves $X.XX up another of developments about able we fourth in six us we're per short months. the opportunity about quarter the with share to lease lease-up talked within what call. our $X.XX to

of we quarter that inside about of in X-month talked are the developments So period. fourth that the some already

So number. in not them we're our including

that Is -- question? Okay? does your that answer

good frame, of how Yes, seems the and for agree I today industry. then characteristic I the a Thanks. about ‘XX-time really think separately, XXXX you it talked And demand which time was does.

So I company's you build-out? is have have the what's think wondering pricing demand high built macro Just was change versus, you a just wondering, say, Is of that been uncertainty, on driving view it too situation. warehouse that kind needs delaying out? more XXXX? if Is current what driving do

to minutes back what I Schultz. Peter go would ago. said a few it's I Caitlin,

had tenants decision-making percentage mid-sized net in tenants the of couple So the years. smaller last of cadence Larger been be a continues large tenants. certainly and absorption larger better the of to than

was where very decision-making normalization are the bit to quicker. continue that's taking frames be time and the that earlier. little smaller Peter make I more seeing given a tenants we're saying midsized decisions as So really active demand, of longer, think But

XXXX given an leasing to e-commerce anemic the probably and put and the at who other one and million XX outpace feet, weaker everything. that remember their COVID pretty about outrun year. large and effort competition very went square was very, So down And shutdowns in Caitlin, in thing, was player least

XXXX. fact, needs in active the In next XX tenants than combined space Amazon most more

urgency of out was the business. go and in your very sense and you you you 'XX So or a maybe of to outcompeted built beginning had play get now your and everybody it out high of this and 'XX, network platform strong catch-up get very, that

So up. we're of pop now you had a XXXX And course more urgency and a and 'XX. normalized to refer call And we a more to to normal we business why leasing I high getting what think that's huge back to catch try of as look demand. and in sense we forward,

That makes last And then sense. maybe one one.

Just about in the in-process come service starts the to $XXX started development terms market activities what and you but you've of in given -- placed million talked construction. some, close maintained how of have you down

again? level So just wondering come and for that know if First could expect Industrial, coming quickly or if you move talked have much to I opportunity that you maintain up think you you had about you how pretty it could down before

We particular. continued that really fundamentals continue. certainly expect our of in to depends That strong the submarkets on

or heard are buildings down larger, starts who the when morning, we violate of that have it a take commitment We wanted making our larger have. cap, mitigates tenants our to this that as they slowly, a times a cap new a any little timing And of self-imposed very large more our Some already so financial decisions We're going not format. have is building those you've the risk. couple larger bit for of a to impact reason. integrity will and there

know, you it's as number the time, that same the can company a at grows. as And move

leasing, with a the to larger it move on the with risk, happens have just not forward. mitigant spaces especially we'll constraint it's a what on our and see we growth, is as So yet

Perfect. Thank you.

comes question next from Our Vince Tibone ahead. from Vince, Street. go Green

cap point in curious, margins. stabilized crop Or I'm cap embedded more still up the development transaction commentary visibility? rate estimate little time? best follow a I rate, pricing it is just result and of this and morning. your in on the the seen is Good to you've wanted pipeline at bit higher the is

rates the with increase Yes. There felt of Again, a we change like intellectually peers a of cost year we et in construction said and recently of some a a And capital haven't the cetera, cap seen at points you've one have lack yield. in moved. transactions data our trades. be of lot been have decent that lot financing, and capital the of pretty to and honest, one to I markets clearly ago, the guess announced when

just think So judgment where be intellectually cap to us apartments really to with our a we that's rates really are. on try on

development the that, wanted about sell trends particular, estimate you think recent No, that or just how I peak off appreciate price some -- I'm a I Like case. you kind land curious land And Phoenix figured the was peak, just could do year confirm. presumably was would talk broader far somewhat was values. also the that price and plan I wondering you in ago? you then the related. in relative if I of market. the to about from where do to And development

to Jojo. data basically price from center metrics, is totally is land pricing. a data The This pricing the different is buyer industrial center and the

not our at whether data be are we even flatten we're on that will the data happy that and selling data So the center we to very I do center, platform business. tell grows prices, make not from not although out, experts, that's trends will we center you -- more

value business there. create Our of creating a we is value lot

requirements the overall In on and terms has cost capital. of country price are because a yield higher higher of moderated the industrial, the industrial of

a trend is Phoenix. markets, including that So across all

with how there can and a have really range your quantifying that? Anything draw No, points. agree color. helpful out I would of broader land you there any you much that's fallen way for Is

center point asking a or… you data data about pricing on Are

your range traditional industrial Do XX%? on. Well, I off would be think thoughts guess more pricing development. is XX%, of Any is kind rough you for just

Okay.

middle it a in In coastal the a than a basis the percentage market. on down of smaller terms reason has really markets, the of and come total of investment. land market because why the the less part country the the on portion the national part represents When sell market of depends pricing, simple it's in

therefore the is the total total markets, foot your So land comes upon of if per your investment. square is investment global a higher repeat less. In the down, portion

range, from range So would if force to a to give to I be XX% delta. were XX% the anywhere

on a and numbers stab those appreciate you. I Thank No, taking it.

from Mike question JP a Miller with continue Morgan. will from we And Instructions] [Operator

So two questions.

And or seeing either than $X.XX are wanting First, XQ, that of to to something for goes just you guess that? XXXX? income, Or lease away sign around assume spaces annual is we it shorter normal? more income I longer the any tenants secondly, in it than trends

take I'll question. part from Schultz. seeing tenants, we're the Peter first renewal. change not any the No, of material it's Mike, in terms newer

but average wouldn't Our bit, say material. has up little I lease a ticked term it's

then And Scott. it's Mike,

pay the land, the to has right, On the ground income two per holder goes to option the lease the lease, benefit land they the next do ability share The away. the you're $X.XX over If years. the buy buy ground though, related all-in have, will to roughly our distribution we'll is proceeds sales assuming venture a X.X% the we get line that model. First use via those to proceeds down the we Industrial, credit, a we're from and joint which of

paydown credit which ground loss the of So the line the of offsets our almost rent the decreases of expense, interest lease pickup.

at that's we that. how So look

it. Got

Okay, Thank that’s helpful. you.

ahead. go please from Petersen John from question John, a with proceed Jefferies. we'll And

the year do last to frame of expect that deployment Great. cap narrow A also is one of wide most -- capital in acquisition and focus spread. and about guys year, recent -- you lot question at curious do a the then -- hear What where that expect market see development. to pretty you way didXXX We and talk of progresses kind X.X% what or of acquisition acquisitions bid-ask you're But kind what a That's rate. years. seeing of takes. as spread it opportunities see you bid-ask million your to lot maybe more in a about you

those same would of you were today, do cap be rate willing what to kind you acquisitions pay? to If

more have elected of still not to the a spread Owners considered address terms a have are for not seeing tie because distressed good markets, that. that is lot product not has strong owners the really, sell in the all market -- forecasting We're much. who high. really let fundamentals sales bid-ask of We're really Overall, that acquisitions. that may of lot the me the of in product quality we

of So that would pursue. don't of we we're rate -- amount amount -- cap we significant of great forecasting a deals a significant not product

rates, little start from roughly basis our terms increased a bit In to cap you points that points, XXX today, XXX date. we've at view rates is to of of look the cap have mentioned over already you, basis XXXX if

this rent growth talk of just market we do you seeing months very of of cadence terms That's in Or a helpful. right. the of And guys All rent growth or within maybe what properties, have guess four versus Okay. view I -- are then year? guys what year? first you about and last this the you're your your seeing year markets seeing were

Jojo?

Okay.

to than The grow by markets continue QX faster from grew different non-wholesale market. market to rents It's QX. market markets. coastal the First,

moderate In 'XX. growth XXXX terms versus to year-over-year, we of expect market

stated to terms forecasting statistics XXs X rent market different growth this XX from XXXX, that anywhere XX In to of internally was percentage. the are year. We from sources low in

helpful. much. Thank Okay. you That’s very

now Vikram Please, go question a Malhotra ahead. Vikram, Mizuho. from from have we And

much some just into so I debate that questions. community. There's maybe the the brokerage building just of off leading and amongst for taking question, maybe Thanks SoCal. been just market

a amongst within large the for of the maybe are differences calling what's bit? dispersion unpack between that you brokers are maybe and what little lot and similar out What seeing a you box different? demand Some versus would may data then maybe show SoCal submarkets there's this of to broader small. some be the Can

the doing are of market seeing to that terms the as activity. expanding We've portfolio almost rents in is else, lose well. our on We've or renewal. we're SoCal push what tenants really on in in is our getting the able in Well, we tenants been been everything -- only strong portfolio

their course, they're Of couldn't growth. exciting, we when accommodate

rent now, well. But ranges. that right is all a seeing I again, of as the add business some macro are growth tenants all rents have of buildings, little seeing, only activity course, they're from I format for positive gone we're say is things the thing -- larger in that would further we're will the growth, that given economy L.A. watching size terms in from In seeing brand bit

the I-XX So corridor there's to way banning. the all XX-month to continued activity

call building basically There's there's And Corridor. basically, what some we that's IENorth. the desert happening XXX format then in high large also on be south

bit So the little six I-XXX rent. The on save are from a tenants, see large a would That's that's comment further format a still different in months. last to South. building looking tenants I --

Okay.

I specific you're signs any But -- or are around of as either markets just maybe So are demand maybe I'm changing core of Is anything rent inflections supply there Empire about wondering growth the sort seeing of inflection? sort still if or some guess, Inland of there seeing watching East-West, you're any terms specific two in in. of those very, thinking any come of strong. than, but the inflections very you're there type the or

change. big In like not IE to in East. No, no, infection. not no there's I'm any opportunity seeing build U.S., really much

to at bit look than So to there absorption, East. ability West enough if East not leasing higher the gross now with compete of does because little IE East then actually lot IE lagging. to build And West, activity. of IE our IE but West mean, IE you more the was a is IE total rent doesn't a have that growth really products

So...

assuming development opportunities. just then the And of just on more are last side, there question, in the terms

sort additional about of in process Can appetite I properties of for other you you just missed for are where forms later. in joined raise to we that remind funding. if Sorry, your just divesting and that us this. capital? think further terms of I But funding, capital versus

sales dividend to $XXX The and flow credit. be $XX million. that piece guidance funded to the million. about million a cash $XX that. big be XXXX after CapEx is or spend about excess developments on we're And our about for $XXX midpoint in going We're hand by sales is going The Sure. then to of related our will remaining cash forecasting of is line our generate of million. Property of

of pretty in shape So view. good point we're from a funding

a please Powell Anthony, have ahead. now from from Anthony Barclays. go question We

you. Thank

me some for in next pressure the please. Dallas, deliveries XX seen your the supply? one growth you availability in see where What's for expect and rent on do months? guess to And role we've Just there Dallas any given

primarily Dallas, in is our infill Well, markets. portfolio

Great absolutely develop. planning we good you're market Dallas, influx don't We to or of infill there's products, you three deliveries at in in the the not have have correct in that most either ownership when have markets look investment that which Southwest which

North The Forth South and East, Dallas, Dallas worth.

If about comprise all the you XX%, those markets, I combine new of that products of the in in. coming think, buildings

So in we're markets. those not

expect -- -- So not in we're you a but have markets. competition, in product, those those if the markets, we you

you. Thank

ahead. Next now comes from Nick go Nick, please Thillman question from Baird.

of time as on just Have you the Peter market. Maybe line in going with a renewal demand that to in time morning. discuss options demand tenants good lease touching indicator any shift mentioned on bit. Good little a the line or seen the you? usually renewals of

Not Not stayed years. line past the has year, over two change. That a time really. pretty big consistent

outside Maybe on the to Southern there then one California. bit role, was said last you for a And me. just XXXX more little exposure

there? little be looking more we're As 'XX, exposed current at to in are portfolio? your any Or -- markets is going anything a with that line bit that more there is

portfolio. In a standpoint, meaning its The XXXX, -- you of know, California share its portfolio. in share of our disproportionately was rollover lower to our as 'XX, it from disproportionate than high, is slightly

it that’s me. all for Okay, Thanks.

to ahead. I any from would Baccile conference turn closing our like And to session. the Peter for -- concludes question-and-answer Go this over back remarks.

today. of June many participating look with and Thank to to operator, in call York. New We thanks our in everyone you, connecting on for forward you

The now today's concluded. conference you for attending has Thank presentation.

may disconnect. You now