First Industrial Realty Trust (FR) 18 Jul 242024 Q2 Earnings call transcript

Good day, and welcome to the First Industrial Realty Trust, Inc.

Second Quarter Results Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Art Harmon, Senior Vice President of Investor Relations and Marketing. Please go ahead.

Dave. much, very you Thank Hello, everybody, our welcome to call. and

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

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

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

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

to me let call over hand Peter. Now the

Art, and today. us you, Thank thank you joining all for

quarter. starts XXXX all kicked some within about leasing. X We're in all and of development that our delivered projects. excited shortly. earnings Since is core has on wins, second big off leasing discuss As also call, this we both last we the development the on discussed call, team in new More our our to portfolio that our

X.X% improving, expected, broadly, last vacancy the as online. fundamentals industrial to year's by XX are Looking market market basis continue industrial come starts although points as to slowly ticked up U.S. at

leased respect feet the million to million disciplined, quarter of remain starts XX peak With in nationally quarter, XXXX. tenant totaling XX absorption market was uptick requirements Year-to-date saw third with from target within an markets. XX% second converted the net in in million XX square spaces. our demand, into feet the the New down square being

remain the to see term As in in XXXX. could new increases slower and starts continues demand near we vacancy potential improve muted, and pace declines of

Turning now wins. to our leasing

now net For of XXXX, of change cash we with prior XX%. rate includes the we're West Empire expirations on This the in now population XX% the through of our by spoke run renewal square about calls. rent footer Inland earnings XXX,XXX a

for to on the leasing cash West new lease Inland XXX,XXX remains rates the Empire the extension other renewal Our in XXXX increase rental is still significant range in rollover, progress. footer and XX% guidance XX%. square The for

the call benefit potential midpoint expiration, you lease pleased our our expirations. do We're as We'll on inked our but we're see we footer a recently beginning our on off this a X.X next Pennsylvania. that start. progress quarter year's of square done early to XXXX some million years, we cash NOI also largest an provide Note third from include in of I'm same-store prior had strong to guidance the FFO in for rollovers to update that any on not and renewal decision-making renewal. our XXXX report

Southern XXXX development in quarter our X.X million X.X approximately markets mentioned of date, that updated was half square feet. FFO development the to of on feet and the including I This in square April. is our first included call As provided quarter guidance speculative of several quarter almost remarks, California, in leasing signed leases third at totaled across the which beginning speculative second we my X million

XPL. lease a first Inland pioneer East foot project in to inked we for a quarter, third Empire our the square the full In building XXX,XXX

XX first We project in In in signed market beverage crossing square also just day Denver. our food a first lease company. the and a project lease at airport XXX,XXX the the signed foot for a XX,XXX entire quarter, Philadelphia square we second to foot leading

square Seattle at at First feet and Chicago. our steel remaining We square also submarket in feet in XXX,XXX asset first a leased Park Kenosha the the XX,XXX of XX

leased new completed In at building. market square Florida, XX service building since that of that X successfully we within our First First we XX underway. is of success square given Miami forma. X.X leased Building on is continues This South projects. we Park pro there, placed foot latest now South Building the we've our XXXX, million X/X where the and in average, up the Park XXX,XXX X.X starting the Florida outperform, phase already Miami second square park quarter, and have building are of to million feet just foot in well leased X The The

attractive location we or Building X be the square a infill to and Broward, estimated XX,XXX XXX,XXX customers, footer an Miami-Dade. multiple Florida located will footer businesses site in and and and Palm County, serve Beach square directly In investment Beach Turnpike, started Pompano $XX is million. a for estimated the serving of location an Broward I-XX Tri-County the highly The between at X is $XX with million. investment area at of total

X these projects estimated Florida South combined is X%. Our yield on approximately

at yield the approximately XXX, investment for the our XX% is cash Total on first development Prior XXX,XXX beginning a side a to in building. construction, million site the of of inked of Interstate $XX square infill X%. beltway. loop with lease to with frontage starting also we Houston expected We're this Northeast foot be

of incremental date, we to Moving to an in $XXX $XX million. second the dispositions year-to-date quarter quarter bring third total and million our assets to to sold

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

Thanks, Peter.

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

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

with and leasing our the we and square occupancy X.X commenced; and basis activity We service for were of quarter, developments during were XXX have these, in-service developments the of Summarizing million quarter points million from XX.X%, X.X new, opportunity acquisitions were million XXXX. feet of in approximately leases of with renewals finished X.X placed in and approximately XXX,XXX XXXX lease-up.

current our Before extension covered I during the no of by flow cash capital on period. XXXX, our remind loans. you required capital be funding incremental to proceeds projected that date in assuming dividends positioned and complete construction we maturities expenditures to strongly the excess projects the and X touch front, development guidance, with let our until sales Also, third quarter on me will are exercise our the of bank after options debt

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

$X.XX guidance now we FFO equity-based leasing per to employees. $X.XX $X.XX to call, expense share at detailed development share. last have to fourth accelerated is rule our which the FFO of in for range as due higher since our excludes granted guidance our NAREIT to fully guidance that certain Including requires per of for value quarter per than approximately share of made to earnings tenured our midpoint the this per primarily us the $X.XX is compensation $X.XX on earnings is $X.XX is related expense $X.XX expense, range accounting share, an up This progress we prior Our quarter's guidance. Note our call.

increases rate for guidance, our X.XX% a occupancy earnings to rental assumptions all XX.XX% primarily unchanged driven on before basis follows: NOI quarter-end rates are our leases. in call X.XX%, last termination bumps as same-store since new are rental renewal Key fees leasing, which to with of in by XX.XX%, and on average of along growth embedded cash of

same-store completed anticipated costs June and Note that disclosed. XX. under calculation to our XXXX excludes that onetime previously tenant construction the developments we includes Guidance related the the XXXX reimbursement at

For year of per to XXXX, about capitalize the we full $X.XX share interest. expect

This range per or Our to to $XX.X share expense G&A earlier. in guidance million. expense the $X includes million million referred is $X.XX I roughly accelerated $XX.X

Lastly, debt issuance payments guidance debt equity acquisitions, does repurchases the reflect issuances, of sales, call. nor any not or this starts, impact development after potential of the future

Let me back to Peter. over turn it

significant our first to Thanks, Scott. leasing call. our wins several earnings for since team Congratulations again quarter

With Houston as our as capital have development already leased. XX% we incremental to portfolio to allocate new is Florida well excited progress which the achieved, leasing project, our we're South

on is leasing development beyond. team in contribute will steadfastly to which on portfolio the remaining XXXX our our and opportunities Our focused growth in delivering flow cash

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

Dave?

[Operator from Instructions] question Rob Our comes first Stevenson Janney. with

still You more of conservative market given you banks the on sold Can of talk to see in last that $XX to XXXX in of any year, lending yet recently. about million rate these your of on properties become buyers we today industrial some that potential health the the dispositions? versus disposition cuts

significant number of NDAs -- we're we mean bringing market, a to we're a that significant the bids. Yes. assets I getting and on number of

buyers, that of buyers So capital assets and selling most the that to Remember there's we're a local the are are users back. lot XXXX there. out appealing

So opportunities significant for capital in there's this searching space. invest to new

release. basis leasing that in then, talked developments the is And you half in those the guys and second in release Okay. occupancy inclusive the of that on points that announced call today? Scott, leasing the leases? and first 'XX announced upside Or from of Is XXX half 'XX to about that the addition the you've

That's in addition Rob. to that,

fourth still happen the our X.X in So to guidance assumed square we for that development of have it's all feet the million XXXX, in quarter.

asset is Is on what basis? then multi-tenant today for the yield-wise material? an a And basis versus guys that single-tenant leasing you Okay. a difference

margin Rob, to and on a better, In wide to a it it some little anything you add but today. asset. that? would want cases, it's market I Peter Jojo, bit Schultz. be depends say not would

costs. the to but that have smaller, Yes. tenants that little there's rent, then then [indiscernible] with I bit the would offset a increased to agree. you And extent get the higher

overall, said, difference. So not Peter it's just a like material

Craig question comes from Mailman next Citi. with The

context get bit here back the million what couple I development square commentary because at make of works that up that your want at in people popped look been in little some feet decisions leasing Peter, was is to point. had to Just, are start you at trying to have of versus a put quarters the of that least XQ. more that deals, X.X as mean a and circle starting I maybe mix on deals you done recently guys of the the to since demand up those for better this

Yes. Yes.

So good question.

period continues country deals the I'll and a be deals board, both seen been The a case do. while. gestation surprise across We of gestation longer-term take larger the to have won't across mix shorter for those in say, the discussion you, that periods. to have good That longer

period, We prospects QX. in of lease First have signed signed the Denver, the Park building shorter in were completed lease our we the not we at the recently gestation Those examples in Miami.

the came those done second and got So within quarter.

months. Another good partial Houston. The the in build-to-suit period X on is that about gestation example was

when would taking the -- several you guess look quarters you frame I a you those now, for the larger are little is bit case at longer. smaller time for has that for deals, So that deals, And this, say been shorter. as

That's terms first what concessions talk just a a than different of helpful. bit had lease be And that rise that, kind was then materially Or just in the there. and slower given on their market. a of the would final that's any -- detail, XPL, underwritten? tenant the you or returns that you been tenant, in just little segment guys needs it Was helpful? that bit it that's Can been little about to pioneer

Jojo, take to want you that? do

Sure. Thank you.

pioneer. market this XPL initiatives. this need a need a with of robotics has the is is and in establish VNA was a Narrow a are this that facility state-of-the-art business green growth a and that was both Aisle Basically, to our has market, kind lot overall, this and was Very Canada, U.S. the for a gross of some XXXst -- So and technology

that's the So need. basically

fit perfectly facility chosen. that, was facility why that was Our our and

will original a I low in yield, yield, which mid-X would lot In the our terms the exact the value. basically here tell exceeded it of not quote exceeded you yields creates of is to rents but you I -- underwriting. -- And with

that a the know you that just X.X have is square more spread renewal then aren't in the in slip of different? giving PA, 'XX? in on one And is of but average signed details, ton where guys helpful. I foot The here. consistent to you Or materially That's guys million

Peter it's Schultz. Craig,

You're right.

that have confidentiality agreement a We with tenant.

exercised that So negotiated rate a the in information. not I to tell will much fixed of you XXXX. that half option second they able we're was renewal disclose

the Kim question And from comes Bin next Truist. Ki with

the the commenting by from about improvement I was pickup leasing off on a And you standpoint, some last in sense poker leasing, Could in get of you're meeting. weighted sustainability you this seeing was the the know seeing? start the I you're that Because, it. kind of have it that. it, what but was from mentioned just demand there of I on congrats curious good our you quarter? a Peter, back-end much activity I didn't know NAREIT face,

then clear. and still are Decision-making I'll Look, remains progress with start the Jojo determine with we become early more It's direction. obviously, this as we should Peter achieved here in. see pace data even and chime leasing, though on resiliency right deliberate. some the fairly today, and demand the indicators the still whole in of the pointing to

we So potentially are add little suggest do say you want we draw that long-term one activity. that? would quarter things Peter, to can feeling not But to from bit conclusions to a of better.

development move said, questions, Peter now of in deals year. seeing the notably, really any inquiries, buoyant larger were just we're hasn't to that bit answer and announced more Ki a earlier RFPs, little timing add that of it than But in pleased slower. continue the as we a indication about see the will we've deals, with and more we to our change. more inspections, it's don't Bin, would couple talked decision-making was where, the we've And changed, deals as in it several that I more just that

square pipeline about available. and the Let me the still to a aren't to say said from the space And million that each down XXX for There prospects one million. several more deliberate And to sense over thing are going XXX high this. feet of on urgency the of changes, change. having that until are pace national that, is alternatives

net the year absorption we're continue getting hopefully, on. goes there. improve will And So to as

Okay. you're pricing. And getting? opportunities quarter good small a you the that in in yields might acquisition I you acquisitions does some yield. versus market, I you on how bought curious compare terms of in you also the what L.A. yields like might was a look know get deal had for potential this development

Jojo?

markets, competitive. be The a pace of to active to Bi, both development Ki most buyers, land remain compared even is There market, abundant. capital last in for acquisitions QX actually year. QX more lot compared one-off assets and to definitely now There's is of across a investment and and

an very And that up tire And got piece manufacturer, closed that the So is there hit way large we pleased the of acquisition are of investors enjoyed property back. market. we're but doing submarket We one with with not did the tightest they this markets off-market deal it with The actually with deal. business and with L.A., ended abundant the them. It the divergent then a -- us. is power. transacting -- did in -- another we led to we of the that was

from Thillman question Nick comes with next Baird. The

then here? to activity you of I the up have just you're wanted change sounds on It the to concessions And is to back a material of though and offer to go kind better. little the lease on kind on that as touch you're here? space remains development willing bit leased. seeing activity Any be changed

want you to one? start do that Pete, with

Sure.

about So first. Denver let's talk

there, We have our XXX,XXX largest square building feet.

more putting see would users, to supply continue full building has occupier set time. competitive million XPL users result and picture reduced for large with from We X I that and contract activity activity to improved at partial feet building in a in under of a by full this The a Denver. half building The say, leasing corporate buy. has a as been building

a decision-making for So good that's certainly there. backdrop

a including talked number deals have about, been choices. more larger the reasons, slower have that for we've As moving they of

thing. choices good fewer So is a

done the XX pretty start We're discussions when started building with just did first pleased that finish smaller to than tenant we we endeavor, less from continue we with activity. lease in see good The that got to days.

fourth into was of have first Orlando, that of urgency. We're our bit building some there. like the we Jojo? the prospect more. a in put the So service some in a building Pennsylvania, occupied. with activity then discussions at good building. in that In indication a We'd And that loop XX% see little we project, to for balance

Yes.

in been like there on some renewal has have active materially a Baccile on it activity, has are IE mentioned, activity, not lot, Just we Peter changed most renewal options.

I competitive, TIs. So that Empire change pleased rates the if leased or free free the got, site kind only coverage use. floater XX,XXX is but because we very, very first now you a the have we not at of not about much has in that we somewhat look that's terms, in was activity, is the would we're that slow is leased And lot surface TIs market it constructed in with know, pioneer that facility that market been rent renewal current SoCal as Inland in rent. low you market that long term say development West. done right the and market market our is of 'XX And a

I activity interested completed the when port still we in expect and then finished just more it's early we And that be -- the X-year the in would And other process. the like So we in think on SoCal, taking. those. would be asset grows said, everybody those lease-up an we in that future, and we're budget we buildings just

more going being back the sort near That's range the year-to-date, sales? of upper kind helpful. should end else view noncore to year. we it kind anything And as completed you're funded well just of kind what opportunity this for of of there? you've Is dispositions, there you're Or of of then kind

the use assets we'll we is in we that likely growth plenty lower that We've capital take correct. is continue off it of and got and sales think you're going to the redeploy volume forward. opportunity better of be can after funding think and I to where dispose

Anderson Rich from comes with Wedbush. question next The

know you that cash your in I XX% XX%, a you or nature, have number. what what the say And those math anytime we of market, get At if versus think bit closer or in that's because based cash percentage you're of mentioned get pedestrian to down that a on like nationally up on a that of to market seeing happen portfolio soon? is let's Does rents cash XX numbers point spreads. releasing a sort releasing imbalance do more you Question in terms a don't more flat in number spreads. where situation bit. we or releasing spread that

that We've looked of the at resilience that and good. is mark pretty

it But call go you or might derivatives with It each rents depends then solely they So what has away. under significantly, come If let's X that. year Obviously, and 'XX. to of that you them X in it resiliency some will growing on mark like some down flattish, the duration. say whether because we're not goes analysis 'XX has were fall were clearly we resiliency. mark that

enough. of does easily and tariffs Or Fair opportunity? would your in of in landscape at conversations and And on say, mindset it 'XX more Okay. does where election whatnot guys become very who What b, disruption, that terms of wins. the does year hear then tenants, an in like terms that sort the on tenants, political create you beyond? depending a, with in conversation into, -- your mindset is play could of the are you I of around and how

Yes.

lithium as higher Trump our Tariffs biggest I the for more in of tariffs Interestingly, different going of aren't is like the think, our is kind on are tariff inflation, ton both to but for an right that candidates furniture, conversation. for a create that are peers' prospects, ship-to-shore things generally solar they the demand a in Those question. rates be generate are is EVs, -- products cranes, to now question space the the tariffs. much seems -- that obviously, product increasing warehouses. our batteries, our that. and warehouses. for That specific our Toys, that's country semiconductors, cells, getting tariff around on great not

-- manufacturing. tenants. large. and of tenants discussion manufacturing We have don't So to manufacturing it have by lot around really the We is want don't a

consumption. where see economy and prospects goes. is and Clearly, our the we'll So key management to the to this key

So we'll see.

might think a more for shoring, not of that a may reshoring this suppliers phenomenon. to type push you but that want manufacturing, Is could manufacturers, But those of you fair near statement?

Yes, manufacturers help in those our where depending And in looks markets it Phoenix. going and Yes, depending and be by tenants. And where near now, for those like it Dallas, the would maybe is and vendors is. Mexico, right Mexico Houston large, shoring to even correct. on that's

So that a for to be would us. tailwind demand

about concerned And any just point the follow of to -- about conversations? this any in at you up, to it, terms tenants your anything of this, at level talking

Again, lot not not time a we're of really with because manufacturing the tenants. no, really, spending

comes from question with Sachs. Caitlin Next Burrows Goldman

it talked Maybe guys the side, on shows development you on the it new the in-process supplement X% developments, in yield about Florida I and think the including One.

think what guys you about sense order yields you in projects rates as for kind where think of your guess I today where are? are, you makes going So do What pencil? costs forward, need to

is depend X, where a growth speaking, investor, That's on X But is to could growth lower, at were minimum a to a we're IRR. and a handle to going and going the higher. want and where going our yields generally get to prospects the on total be X.X developments so size be it return

Got it.

on past then it think about And I on when future in starts. -- I the asked Okay.

now happen they could that talked about in seen. Florida, we've which You

you would take again, in you for second the do to more forward, what there additional going think projects? So starts half? be start could it Or

see bit improvement this that's I to an here that a We Clearly, sustainable. mean quarter, we've had more great. improvement development and want second of is leasing. in the

encouraging. lease. of is X.X they some have other year feet like Now of is, Florida with sure tempo new if we we looks absolutely on into And want holdings completed and million service Northwest But and then Nashville whether to leased is places and X.X we land completed in will it we in in that, South and were the good, came engage or with that that sustainable. make starts Dallas. XX%. that's process, in developments We've the That million square

one quick one. other maybe Got And it.

signed any decisions, do comments overarching the like those the think have drove second combining locations, just On splitting or in you you growing that. business on leases whether was locations, the what you existing that quarter, it anything development

talk you about it? want to Do

it's Peter Caitlin, facilities. Several Sure. from upgrading and and of were fulfillment them processing Schultz. existing

location. or Some a downsizing. establish just were were a them need a None expansions them of of and to were move some lateral new

question with comes Wells Blaine And from Heck the Fargo. next

to Just a color overall bit notable seeing market Southern of of market wanted little on strength or weakness get any whether in sizes? pace in just California activity more profiles you've you're the Can change quarter? there. that trends And from any the you submarkets, the or leasing touch some on and over the specific tenant past seen

Jojo?

new Overall, QX, some I that quite XXX,XXX and robust transactions. was take the is a but would to But active. mean, like that's that of probably for is said that that bit XXX,XXX was again. And quicker range, supply more then below it feet in we've QX, lot And all active we less were XXX,XXX range. say of up if I've There's QX discussed space about needed in take go XXX,XXX QX to terms that's came more on look and range. active and They square and the of comprised size very much a I has than deals deals to size size space. there.

it's up is markets, very, said, of vacancy. we L.A., very in terms In -- X% like SoCal,

dynamics. choices if and East, IE IE So of tenants have West similar both you're and kind fewer any than have IE

IE supply East; bigger forth to to could want IE to then go East bit you save IE little you if chain, get and a more space, and you West. in further so and want you go If your to

tenants our in in our in shows spaces also that renewing portfolio are disciplined renewal there's our lot So portfolio. that you the of a

that tenants high a rate stay to lot. and you a a not kind want tells of have moving put renewal of lot We

And about really development opportunistic few could that That's color. had you a guys step ago, helpful where acquisitions Great. then capital guys quarters to in to on few funding. several you needs those kind projects seeing you guys those of be you distressed Are the do expect any and with or market? far more between? deals opportunities on Or help opportunistic of talked

Yes. deep-pocket leasing offers, are They're between. elongated making distress. no and the a weight done are of they We're capital. We're but couple. along far between. of few There's There's out Most We've and periods. far can really lots and few looking. sponsors

next Malhotra question with from Vikram The Mizuho. comes

but up or I I for if missed this, of the or expires sort the comes did that comment update year? you on give Federal Sorry lease next or property think an Mogul

Peter?

No, Schultz. we Peter haven't yet. it's Vikram,

foot that's XXX,XXX Central So the square PA. in building

lease probably expire The the that there. marketing mark-to-market the are know end so now. vacating, that up share does date our preliminary some keep the we're of progress. correct. the You're I March at you with interest we'll of seen would XX% XX% and to you they We've in We XXXX. building is to range, on

leasing does versus just impact that -- have you like roughly And achieved great, when that can kind of the quarter, year all of obviously, Okay. in then 'XX, sense has FFO? I just give 'XX a understand to second -- the us do the actually -- Great. wanted you on leasing been so congratulations just you of full impact hit the

Scott?

second impact we be for don't lot have signed. leases XXXX. going start I a to so Vikram, that, the third that I what are dates these know But don't of or incremental calculation is a of quarter

impact So quick math, a FFO going math XXXX real to you're to get though. in from 'XX. That's doubling in quick them

And then one. it. last Got just

renewal achieved joined of those be half was in that you remind one leases the other discussions? there sort are mentioned may where any there are us you in sort variability? SoCal. second you which where And with There the dealing in larger just -- you of there's I on I sorry Can late, that. more variability believe one, was You and another more

At progress. is our Yes. earnings and in The next maturity renewal not give in is foot on our renewal call. guidance, lease still of update an the you XXX,XXX point, this this we'll included

Capital And comes Markets. from the Thomas next question with KeyBanc Todd

the last Or XXXX guess, does XXXX assumed follow-ups. fourth quarter? development assumed on leasing guidance? quick question, X.X quarter, that mostly impact in the are feet to of the those X what's I the -- first commencements? Just leases regarding square be that's commence million will they has fourth the that, Or on leasing in

quarter. to Todd, it's assumed commence fourth They Scott. in the are

of mid-fourth to So average, the share. if start per all you date a impact quarter $X.XX assume is in about XXXX on the leasing

And the you of believe. placed points, the 'XX that's developments XXX,XXX then, XXX in and quarter, occupancy basis you about little Got it. XXX Okay. from leases have announced in I'm the service, bit X third assuming. terms that the more, opportunity I basis in point included, That's a 'XX the that

you near is more there basis there's XXX you're So XX that a really to that term points commencements here? Or from XXX on anticipating? of top opportunity see XXX,XXX incremental point that of an basis

million There's and XXX opportunity that mind, feet is already vast that is opportunity, X.X of point service. majority the in of Keep development leasing. square in placed basis that a number

gets So really it's up, to when going leased impact occupancy. positively it

[Operator question with next Instructions] Street. Green from Jessica Zheng comes our

wanted to are dynamics East sides. versus also up follow IE than greater West on experiencing one similar they seeing market Just leasing between Or pretty the Do rent are Are X IE said you similar? your comment. decline you another?

'XX, I I year-over-year, and that's mean. than QX rent IE about it, declined X% 'XX different. QX too not more East say but It's that overall, West, would IE

question next And with JPMorgan. comes Michael the from Mueller

we projects Or you rate, and you And is could the it, bias? cap missed smaller relates thinking a to, be give have that or starting potentially see activity, disposition buyers? it next of what projects year, type see X.X new may guess, so. I yourself the sense didn't first, us One, but could can developments a as for over Should you on Houston the I if you questions. X think? XQ size the well, do of years that the of larger as Just you some of say and then mention

of that and second the first talk then take Jojo about the to going half half. can I'm

the -- As I projects mean, far we on demands. have size as and deliver projects those we what the projects, depends market of

new or So developments Florida Nashville, feet. square call in be In to XX,XXX South to feet. going could they XXX,XXX XXX,XXX square XXX,XXX be or are it, XXX,XXX

million. be We and We talking would in for is you're environment in this California. XX,XXX Northern ready then land smaller not or feet. have million, X example, which opportunities, clearly Those own square X.X SoCal, in XX,XXX

on that depends it size on tenants deepest are range what that the in any alternatives So for the it where what really market given ranges and market demand meets market. It based for is.

the bulk is And a cap is Jersey cash that QX Schultz that stabilized the but portfolio mentioned a that the going on the reason And sold And above combine the earlier, just market. that's rents of that you what's like happened -- peaked in substantial the experience is if to rate rents and New X.X at potentially cap is portion Peter is kind X.X. out and sale the New flow of have the The QX. of we rate, is sub-X. are yield are sale Jersey

The Nick next comes question from Yulico Scotiabank. with

Greg is with on This McGinniss Nick.

there? to market stand actually developed So then on the be could X for handle that make that how of your today, rents longer bank declines much appreciate may the on can target where development. land With rent the development, sense we are no And given plans of level? land Inland what some Empire

Yes.

-- all the are fourth you're wait, SoCal. And SoCal, those the about to whole in average, in going and obviously. economy this with respect X% largest are land holdings across X% is the strongly yield that or still It's are the committed fifth There in of land So our world. to where to on is yield. our some holdings, we

this absorbing it period, COVID, of toughest to going that, entitlements. market space forget get is the We to best get have are only the because that's country. work and in -- the overbuilt we while once digestion overleased market worse. in through country we once markets that are of you're through that, remains that the to was we Don't digesting living And that see going again and one and

increase. the rents time, to excited holdings are and rebound value our we of again increase and about will continue we Over means holdings will have that there. land So the that

in Okay. the the What to last And of have bank of U.S. to you today? looking and one Florida, And land markets are markets Southern more year? kind then be seen specifically the terms over the you where are guys pricing to building land which strongest in obviously of you add in seems

want to land talk pricing? you the Do about

a much are has has anything pricing Jojo, come I Land you as down as with come But seeing have less down and not generally down. would yields Land X bit, development come say, we're that? spec so. to handles. Sure. to want Florida, rents little where costs South today add

the land yields. has rents capital have down commensurate and of not cases, or of come In come The with maintenance the come Cost land has some down up. pricing flatted adjusted. not has

X So opportunity return -- very total with thing only -- add land is IRRs. X a said, -- there is I'll for that is a still developers the see But pricey. handle only like we Peter

percentage or expense of benefiting They one tenant And for there there the recovery just quarter? question me And expenses. meaningfully component this the to occupancy last despite year. items improved unique quarter-over-quarter. a as any of similar lower Okay. was more on year Was seasonal operating

had expenses the because expense before, of that first people 'XX that included in compensation expenses impact impacts the equity are think portfolio that quarter the well. regional item as spoke operating property I in the about I of or

improvement probably that's recovery. of So vast the the majority of that

year-over-year, was last but with then it lower And occupancy. Okay. basically year, same as the

any trying just that if there's to on see also. extra was we I -- So any glean could information,

can think I of, Chris? Nothing

it in the little more -- in is what little quarter, Possibly but it. I little where But of bit storm there's higher, bit seasonality so of referred think is Yes. a it sort Scott of, first to. a bit

question next And Lynch from the Brendan Barclays. with comes

some increase walk on that Maybe market through touch to and peers. are just causing the just which dynamics, you Maybe It the for seem Florida. does demand in could you like South very a strong is your there. of

increase The South population an role. demand. would a ports it's Florida a plays play say I in it's wouldn't growth consistent role. Certainly, in I say demand. the

where smaller constrained. County, of we're starting construction it's at a essentially very today. in the As land opportunities know, just There's you there's no all building, new Broward lot new not

They take check, a there's very market difficult there although little supply entitlements. supply get to So in a more bit keep long The land, today. to constraints time. that

consistent We demand. continue to pretty see

geographically, to about other North is the Yes. West blades in has Don't ] got miles. on East side XX miles you've about ocean XXX one -- [ the and on forget and geographic South, that to is market

to So entry you are have that significant. barriers

racking the cost type what assets for how ability when Great. to percentage of earlier your is and narrow renewal that have your That's about to referenced maybe the you would impact infrastructure helpful. implement leases systems. that rates what roll? would solution? customers you very talk And of And drive Can similar aisle

users Yes. do And lot investment of Well, In it need VNA, of a it's First able significant tenant of a to bigger of the the XX more you have takes capital potential case, idea is minority robotics. market, you of investment at a that. this lot a and that the have the means when that that through because that, And that being do don't that we cubic part Pioneer, and building meaning clear a use racking. just stacking. love to

So for by of state-of-the-art tenants of we're But that's more them. not a excited a used lot that's in the being marketplace.

question-and-answer would This concludes over to I turn remarks. to for our the any Baccile Peter session. like conference closing

Thank to on and thanks you, participating the operator, everyone today. for call

you have great Art, to our please me. out reach a If week. follow-ups call, from Have any Scott or

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

disconnect. now may You