Q2 2025 Plymouth Industrial REIT Inc Earnings Call
Station, there will be an opportunity to ask questions to ask a question you May Press Star then one on your Touchtone phone to withdraw your question. Please press Star then two please.
Please note this event is being recorded.
I would now like to turn the conference over to Ethan Ferris Investor Relations. Please go ahead.
Thank you good morning, welcome to the Plymouth Industrial REIT Conference call to review the company's results for the second quarter of 2025, yes.
Speaker #1: Good day and welcome to the Plymouth Industrial REIT second quarter 2025 earnings conference call. All participants will be in listen-only mode. Should you ed assistance, please signal a ference specialist by pressing the star key followed by zero.
Yesterday afternoon, we issued our earnings release and posted a copy of our prepared commentary and supplemental deck on the quarterly results section of our Investor Relations Page. In addition to these earnings documents a copy of our 10-Q can be found on the SEC filings page of the IR site.
Speaker #1: After today's commentary, please note that this is our prepared commentary and...
Speaker #1: presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtoned phone. To withdraw your estion, please press star then two.
Our supplemental deck includes a full year 2025 guidance assumptions detailed information on our operations portfolio and balance sheet and definitions of non-GAAP measures and reconciliations to the most comparable GAAP measures. We will reference this information in our remarks.
With me today is Jeff Witherell, Chairman and Chief Executive Officer.
Speaker #2: Good morning. Welcome to the Plymouth Industrial REIT conference call to review the company's results for the second quarter of 2025. Yesterday afternoon, we issued our earnings release and posted a copy of the report.
Anthony Saudi you know President and Chief Financial Officer, and Jim Connolly Executive Vice President of asset management.
I would like to point, everyone to our forward looking statements on page three of our supplemental presentation and encourage you to read them carefully.
Speaker #2: a supplemental deck on the quarterly results section of our vestor Relations page. In addition to these earnings documents, a copy our 10-Q can be found on the SEC filings page of the IR site.
Apply to the statements made in this call our press release, our prepared commentary and in our supplemental financial information I will now turn the call over to Jeff <unk>.
Speaker #2: Our supplemental deck includes our full year 2025 guidance assumptions detailed information on our operations, portfolio, and balance sheet, and definitions of non-GAAP measures and reconciliations to the most comparable GAAP measures.
Thanks Heath and good morning, and thank you for joining us today I.
I hope that everyone had a chance to review the commentary and supplemental information we posted last night.
First I'll highlight a few key points from the quarter before we move to Q&A.
Speaker #2: We will reference this information in our remarks. With me today is Jeff Witherell, Chairman and Chief Executive Officer. Anthony Saladino, President and ief Financial Officer.
The second quarter of 2025 was another solid period of execution for <unk> marked by strong leasing activity continued deployment into high quality acquisitions and further progress on our capital allocation priorities.
Speaker #2: And Jim Connolly, Executive Vice President of Asset Management. I would like to point everyone to our forward-looking statements on page three of our supplemental presentation and encourage you to read them carefully.
We commenced over one 4 million square feet of leasing in the quarter, bringing our year to date total to nearly 6 million square feet addressing nearly 70% of our 2025 lease expirations and driving blended cash rent spreads of over 13%.
Speaker #2: They apply to the statements made in this call, our press release, our prepared commentary, and in our supplemental financial information. I'll now turn the call over to Jeff.
Speaker #3: Thanks, Ethan. Good morning and thank you for joining us today. I hope that everyone had a chance to review the commentary and supplemental information we posted last night.
Leasing activity remains broad based but we're seeing particular strength among light manufacturing users seeking long term space commitments in our core markets.
Speaker #3: First, I'll highlight a few key points from the quarter before we move to Q&A. The second quarter of 2025 was another solid period of execution for Plymouth.
We closed on $204 million, because the acquisitions in Q2, including the Ohio light industrial portfolio, one of the largest transactions in our company's history.
Speaker #3: Marked by strong leasing activity, continued deployment into high-quality acquisitions, and further progress on our capital allocation priorities. We commenced over $1.4 million square feet of leasing in the quarter, bringing our year-to-date total to nearly $6 million square feet, addressing nearly 70% of our 2025 lease expirations, and driving blended cash rent spreads of over 13%.
These fully leased assets were acquired at an initial yield of six 7% with in place rents approximately 22% below market and a weighted average remaining lease term of two six years offering embedded rent growth and long term upside.
We also continued to execute on our share repurchase program acquiring over 805000 shares in the quarter.
Speaker #3: Leasing activity remains broad-based. But we're eing particular strength among light manufacturing users seeking long-term space commitments in our core markets. We closed on $204 million of acquisitions in Q2, including the Ohio Light Industrial portfolio, one of the largest transactions in our company's history.
225000 shares post quarter end.
Operationally our portfolio continues to perform well same store NOI grew four 1% on a cash basis supported by strong rent growth and renewal activity occupancy increased sequentially and we expect to end the year with same store occupancy near 96, 5%.
Speaker #3: These fully leased assets were acquired at an initial yield of 6.7%, with in-place rents approximately 22% below market and a weighted average remaining lease term of 2.6 years.
Given by ongoing leasing success in our larger spaces and continued tenant retention across the portfolio.
Speaker #3: Offering embedded rent growth and long-term upside. We also continued to execute on our share repurchase program, acquiring over $805,000 shares in the quarter and another $225,000 shares post-quarter end.
From a strategic standpoint, our focus remains on acquiring and operating smaller footprint infill industrial properties in dense supply constrained submarkets.
These assets continue to outperform bulk product with occupancy rates over 400 basis points higher and broader market averages.
Speaker #3: Operationally, our portfolio continues to perform well. Same store NOI grew 4.1% on a cash basis, supported by strong rent growth and renewal activity. Occupancy increased sequentially, and we expect to end the year with same-store occupancy near 96.5%.
With development concentrated in larger buildings, our portfolio is well insulated from new supply and positioned to capture strong rent growth.
We ended the quarter with over $285 million of availability on our unsecured credit line and 74, 5% of our debt fixed including through interest rate swaps.
Speaker #3: Driven by ongoing leasing success in our larger spaces and continued tenant retention, across the portfolio. From a strategic standpoint, our focus remains on acquiring and operating smaller footprint infill industrial properties in dense, supply-constrained submarkets.
With no debt maturities in 2025, we maintained strong balance sheet flexibility and expect to return to our targeted leverage range in the near term as newly acquired assets stabilize.
We are reaffirming our full year 2025 core <unk> guidance and continue to expect a stronger second half of the year supported by continued lease up activity embedded rent growth in the full contribution from recently acquired assets.
Speaker #3: These assets continue to outperform bulk product, with occupancy rates over 400 basis points higher than broader market averages. With development concentrated in larger buildings, our portfolio is well insulated from new supply, and positioned to capture strong rent growth.
Thank you for your continued support and interest in Plymouth I look forward to providing additional updates as we execute on our strategy.
Speaker #3: We ended the quarter with over $285 million of availability on our unsecured credit line, and $74.5% of our debt fixed. Including through interest rate swaps.
With that I'll turn it over to the operator for questions.
Thank you we will now begin our question and answer session to ask a question you May Press Star then one on your Touchtone phone to withdraw your question. Please press Star then two.
Speaker #3: With no debt maturities in 2025, we maintain strong balance sheet flexibility and expect to return to our targeted leverage range in the near term, as newly acquired assets stabilize.
At this time, we will pause momentarily to assemble our roster.
Speaker #3: We are reaffirming our full year 2025 core FFO guidance and continue to expect a stronger second half of the year supported by continued lease-up activity, embedded rent growth, and the full contribution from recently acquired assets.
And the first question will come from Todd Thomas from Keybanc Capital markets. Please go ahead.
Uh huh.
It sounds like you're seeing a little bit of an increase in leasing demand more recently I appreciate some of the detail on those the renewal and expansion opportunities underway.
Speaker #3: Thank you for your continued support and interest in Plymouth. I look forward to providing additional updates as we execute on our strategy. With that, I'll turn it over to the operator for questions.
Can you provide us with an update on the year end exploration in Memphis.
Speaker #1: Thank you. We will now begin our question and answer session. To ask a question, you may press star then one on your touchtoned phone.
And then with regard to the 624000 square foot August exploration in St. Louis can you just discuss your confidence in.
Speaker #1: To withdraw your estion, please press star then two. At this time, we will pause momentarily to assemble our roster. And the first question will come from Todd Thomas from KeyBank Capital Markets.
In that renewal.
Materializing here is there any risk of that not happening at this point.
Yes.
On.
Speaker #1: Please go head.
Memphis exploration.
They are working with them on it on a two year extension.
Speaker #3: It sounds like you're saying a little bit of an increase in leasing demand. More recently, I appreciate some the detail on those renewal and expansion opportunities underway.
So.
Details will be coming shortly.
And as far as the.
The St. Louis 625000 square foot that is in docking side. They have all of their client contracts <unk> is approved and we just expect it any day.
Speaker #3: Can you provide us with an update on the year-end expiration in Memphis? And then with regard to the $624 thousand square foot August expiration in St.
Signature processes with these international companies are quite extensive and take a while but theres no theres no chance is not happening.
Speaker #3: Louis, can you just discuss your confidence in in that renewal materializing here? there any risk of that not happening at this point?
Okay.
That's helpful and then.
Can you also talk about some early indications around 2026 and your expectations for tenant retention.
Speaker #4: Yeah. Yes, hi. On the Memphis expiration, we're currently working with them on a two-year extension. So details will be coming shortly. And as far as the St.
Any insight around what that might look like as you gain a little more visibility around 2006 and begin working through.
Explorations.
Speaker #4: Louis $625 thousand square foot, that is in DocuSign. They have all of their client contracts, signatures approved, and we just expect it any day.
Yes.
Yes, 2000, six's, probably it looks like it's a little light so far but.
There's two big leases that.
Currently in the signature cycle again.
Speaker #4: These signature processes with these international companies are quite extensive and take a while. But there's no chance it's not happening.
Both international companies and they take they take a while to sign that's going to be 370000 square feet that is going to be signed shortly as far as retention I mean, we're seeing.
Speaker #3: Okay. That's helpful. And then can you also talk about some early indications around 2026 and your expectations for tenant retention? You know, any insight around what that might look like as you gain a little more visibility around '26 and begin working through expirations?
We're seeing quite a bit of that we sit where we're getting people wanting to.
Address there.
The explorations early and.
We're working with.
Speaker #4: Yes. Yeah. '26 is probably it looks like it's a little light so far, but there's two big leases that are currently in. The signature cycle again both international companies and they take a while to sign.
Several companies right now.
Yes.
Okay.
If I could just ask one question around acquisitions.
How should we think about additional acquisitions in the second half as you look to.
Completely redeploy the sixth Street capital proceeds.
Speaker #4: That's going to be 300 and 70 thousand square feet. That's going to be signed shortly. As far as retention, I an, we're seeing quite a bit of that.
In the context of additional stock buybacks wasn't it wasn't clear if there is more to do in terms of acquisitions in your view just in light of where our capital costs are today or if anything has changed.
Speaker #4: We're getting people wanting to address their expirations early and we're working with several companies right now on these extensions.
Yes, Tom this is Anthony so just.
Contextualize that a bit.
The pipeline currently stands at about $750 million, which is double the level. We saw in the first quarter all of the.
Speaker #3: Okay. And if I could just ask one question around acquisitions. You know, how should we think about additional acquisitions in the second half as you ok to, you ow, completely redeploy the 6th Street Capital proceeds?
Contemplated transactions are located in markets, where we already have an operating presence, which perfectly aligns with our strategy of expanding within.
The existing metros.
Speaker #3: You know, in the context of, you know, additional stock buybacks. Wasn't clear if there is more to do in terms of acquisitions in your view, just in light of where capital costs are today or if anything has changed?
I would say, notably today, we are.
We are fully engaged on a large off market portfolio.
And if successful this opportunity would bring us be on the midpoint of our full year acquisition volume.
Speaker #5: Yeah, Tom, this is Anthony. So just contextualizing that a bit, the pipeline currently stands at about $750 million, which is double the level we saw in the first quarter.
I think as we think about.
Guidance and our.
Previously announced deployment, we probably have around $91 million left to go.
Speaker #5: All of the contemplated transactions are located markets where we already have an operating presence, which perfectly aligns with our strategy of expanding within the existing metros.
And so looking ahead, we would expect to potentially supplement acquisition and growth activity through.
Combination of balance sheet capacity selective term financing and capital recycling initiatives.
Speaker #5: I'd say notably today, we're we are fully engaged on a large off-market portfolio. You know, and if successful, this opportunity would bring us beyond the midpoint of our full year acquisition volume.
Okay Alright.
Alright, thank you.
Thanks.
And again as a reminder, if you would like to ask a question. Please press Star then one.
The next question is from Eric <unk> from BMO capital markets. Please go ahead.
Speaker #5: I think as we think about guidance and our previously announced deployment, we probably have around $91 million left to go. And so looking ahead, we would expect to potentially supplement acquisition and growth activity through, you know, a bination of balance sheet capacity, selective term financing, and capital recycling initiatives.
Hey, good morning, everyone.
In your prepared commentary you mentioned that 80% of the remaining 25 lease explorations. We are in active discussing I was just hoping if you could provide a little bit more context as it relates to.
Is there a portion of the explorations that are under LOI are you currently trading papers with a portion of it or and is there a portion still kind of kicking the tires around those deals.
Speaker #3: Okay. All right. Thank ou.
Okay.
Eric.
Speaker #5: Thanks.
You were referring to what we previously disclosed was about $1 6 million square feet of speculative leasing and same store is that correct.
Speaker #1: And again, as a reminder, if you would like to ask a question, please press star then one. The next question is from Eric Borden from BMO Capital Markets.
It's the 847000 square feet of remaining debt.
Speaker #1: Please go head.
Speaker #6: Hey, good morning, everyone. in your prepared commentary, you mentioned that 80% of the remaining 25 lease expirations were in active discussion. I was just hoping if you could provide a little bit more context as it relates to, ou know, is there a portion of the expirations that are under LOI, or are you currently trading papers with a portion of it, or is there a portion still kind of kicking the tires around those deals?
Explorations.
In the prepared commentary.
Understood Jim could speak to that.
Got it broken down exactly the way you laid it out but.
But.
We're going back and forth with on all of these deals probably.
That's getting out.
And the rest of it is.
Probably.
Speaker #5: Eric, I think you were referring to what we previously disclosed as about $1.6 million square feet of speculative leasing in same store. Is that correct?
Hi.
Rois.
Probably 40%.
Active conversations.
50%.
Speaker #6: It's the $847 thousand square feet of remaining that, of expirations. In the prepared commentary.
Just day to day communications with tenants, 10% so.
They are in active discussions there.
Speaker #5: Oh, understood. Jim could speak to that.
In process, and then kind of get.
Speaker #4: Yeah. I don't have it broken down exactly the way you laid it out, but we're going back and forth with on all these deals.
Okay.
Okay is there any risk that those get pushed out into 2026 just given.
Speaker #4: Probably, you ow, that's netting out the key notice. And the rest of it is, probably the ROIs are probably 40%. active conversations, you know, well, 50%.
The macro uncertainty and discussions with potentially just taking longer today.
Uh huh.
Yeah.
There's always a chance that something might slip a little bit, but I don't think there is.
As much risk in what we have left for this year.
Okay.
And then on the Ohio portfolio acquisition I understand that there is a little bit of a shorter wall.
Speaker #4: And, just day-to-day communications with tenants, 10%. So, I mean, they're in active discussions. They're in process, and they're ing to get done.
Pretty sizable mark to market opportunity.
Just curious what portion of that.
<unk> portfolio lease rolls this year.
Speaker #6: Okay. And is there just any risk that those get pushed out into 2026 just given the macro uncertainty and, you ow, discussions with potentially just taking longer today?
And are you currently in active discussions with the remainder of the portfolio and is there any.
Thanks.
Tenant staying or leaving today.
So with respect to Ohio light.
You're right.
Weighted average remaining lease term is just inside two five years.
Speaker #4: There's always a chance that something might slip a little bit, but I don't think that there's much risk in what we have left for this year.
With respect to the stickiness of tenancy, we anticipate renewals will be elevated relative to.
Speaker #6: Okay. And then on the Ohio portfolio acquisition, understand that there's a a little bit of a shorter wall, but a pretty sizable mark-to-market opportunity.
Our average portfolio wide renewal.
Or retention.
Engagement has been high.
Speaker #6: You know, just curious, you know, at portion of that portfolio lease rolls this year, and are you currently in active discussions with the remainder of the portfolio, and is there any, you know, sense of tenants staying or leaving today?
With respect to RPM teams and be the in place tenancy and.
We anticipate that.
Our execution will be at or above.
Pro forma levels.
Speaker #5: So with respect to Ohio Light, you're right, the the weighted average remaining lease term is, you know, just inside 2.5 years. with respect to the stickiness of tenancy we anticipate renewals will be elevated relative to, our average, portfolio-wide renewal.
Okay.
Last one for me if I may.
Jeff in your prepared remarks, you mentioned that demand is broad based I was hoping that you could comment on the development leasing at the 42000 square foot Liberty business Park development that is currently underway.
Yes. So we have a couple of full building users were negotiating with now at.
Speaker #5: or retention. engagement has been high. with respect to, our PM teams and the the in-place tenancy and we anticipate that, our our execution will be at or above, pro forma levels.
46000 square feet, we want to basically.
Get a full building user if we can.
So.
We still got a couple of months left so I think we're going to sign somebody up here fairly soon.
Thank you very much thank you.
And the next question is from Nikita belly from Jpmorgan. Please go ahead.
Speaker #6: Okay. And last one for me, if I may. Jeff, in your prepared remarks, you mentioned that demand is broad-based. I was hoping that you could ment on the development leasing at the $42,000 square foot Liberty Business Park development that's currently underway.
Hey, Good morning, guys can you talk a little bit about the leasing activity and maybe specifically, what's driving that it seems like you've had decent decent activity would fundamentally what are your customers, saying. This thing. These days I mean is it really more a function of them getting tired of all the headlines in the tariff news and <unk>.
Speaker #7: Yeah. So we have, a couple of full-building users we're negotiating with now. you know, at $46,000 square feet, we we want to basically get a full-building user if we can.
Just moving on which is kind of what we've been hearing this quarter or was there something else that maybe is driving that.
Speaker #7: so you know we still got a couple of months left, so I think we're going to sign somebody up here fairly soon.
Yes.
In the prepared comments, we did discuss that manufacturing firms.
Speaker #6: Thank you very much.
Solidify their space long term, maybe they think that theres going to be.
Speaker #7: Thank you.
Speaker #1: And the next estion is from Nikita Belly from JP Morgan. Please go head.
Significant increases down the road.
<unk>.
Also.
Speaker #8: Hey, good morning, guys. Can you talk a little bit about the leasing activity and maybe specifically what's driving that? seems like you've had decent activity.
There's a lot of <unk> activity.
Hey, there.
We are working with US for instance, like in.
Speaker #8: What fundamentally, what are your customers saying this day, these days? I mean, is it really more a function of them getting tired of all the headlines and the tariff news, and people are just moving on, which is kind of what we've hearing this quarter?
Indianapolis, we've seen an uptick.
Retail activity, we've just signed a lease.
This week for 99000 square feet that it had been vacant and we are working.
Speaker #8: Or is there something else that maybe is driving that?
With several three pls long term whenever they search for business, where like they come to us they use our space.
Speaker #4: Yeah. On the, in the prepared comments, we did discuss that, you know, manufacturing firms are trying to solidify their space long term, and maybe they think that there's going to be, significant increases down the road.
Space is there.
For their bids and.
This guy.
He wants to extend into some of our other buildings as well. So we're doing the same in Columbus.
Speaker #4: in rents. Also, there's a lot 3PL activity. they're they're working with us. Like, for instance, like in, Indianapolis, we've seen an uptick in, 3PL activity.
We have a strong relationship with certain ppl's here and.
They are using us for bidding process and we're using them to fill up backfill those spaces.
And what are these three pills the same because we've heard.
Speaker #4: We just signed a lease this week for $99,000 square feet. That had been vacant. And we're working with several 3PLs long term. whenever they they searching for business, we're like, they come to us.
Interest in the opposite from solar companies for example, in California, or the T bills have been somewhat.
Retrenching in the last couple of years this seems to be there.
What do you think is driving that.
Different markets I understand of course, yes.
Yes, I think in our case.
Speaker #4: They use our, our spaces there. For their bids and, this guy, he wants to extend it to some of our other buildings as well.
There's a lot of class a buildings in.
In Indianapolis.
Side outside of the city that are more expensive than.
Speaker #4: So we're doing the same in Columbus. We've, we have a strong relationship with certain 3PLs there. And, they they use us for their bidding process.
Our buildings.
I think bill are building.
Which is on the east side, but more and more towards the.
Central part of the city.
Speaker #4: And we, and we're using them to fill up, fill our aces.
Just offers a better cost structure so.
Speaker #8: And what are these 3PLs saying? Because we've heard, interesting, the opposite from some of the companies, for example, in California, right? The 3PLs have been somewhat retrenching in the last couple of years.
It helps them win business.
Hum.
And can you talk a little about the rents more market level. What are you seeing overall, if you have maybe a production guidance.
Speaker #8: This seems to be the opposite. What do you think is driving that? Different markets, I understand, of course.
For 2025 in terms of the overall market rent and how has that trended versus on a sequential basis like <unk> versus <unk> and what are you seeing in <unk>, specifically your portfolio euros, but the marketplace, where you guys participate in play around.
Speaker #4: Yeah. I think in our case, that, you ow, there's a lot of Class A buildings on, like, in Indianapolis on the east side outside of the city that are more expensive than, our buildings and, I think our build, our building and, which is on the east side, but more, more towards the, central part of the city.
What are you seeing on a sequential basis with the market level rents there.
Our market.
Answer for our market rents first.
Speaker #4: It just offers a better cost structure. So, it helps them win business.
Market rents have.
<unk> been growing.
Maybe a little off pace from previous years, except for.
Speaker #8: And can you talk a little bit about the rents more, the market level? Like, what are you seeing overall if you have maybe a prediction or new hints for 2025 in terms of the overall market rent and how has that trended versus on a sequential basis?
The bigger box.
Product, which is kind of muted our results I think we show that if we backed out one.
One property from our.
Spreads basically close to where we were last year.
Speaker #8: Like, one queue versus two queue, and what are you seeing in three queue? Not specifically your portfolio, your rent, but the market rents where you guys participate and play around.
We're seeing that occur.
Across the board.
Assistant that big box in a couple of locations.
Speaker #8: Where, where are you eing on a sequential basis with the market level rents there?
Not just us it's everybody has had a level set there.
Rent expectations.
Because of the glut.
Speaker #4: Our market, answer for our market rents first. Our market rents have have been growing. You know, maybe a little off pace from previous years, except for the bigger box, product, which is kind of muted our results.
Bill that came up over the past year, so while that's being absorbed friendships.
Flattened a bit in big blocks, but we will continue to grow.
Once that space this fall.
Got it maybe last one on the rent bumps what kind of road bumps you guys accumulative known all the new leases and renewals when you're renegotiating those contracts versus what's in place is that still higher. So we should expect overall portfolio bumps to continue to trend up.
Speaker #4: Like, I think we we show that if we backed out one one property from our our spreads, it's basically close to where we were last year.
Speaker #4: And we're seeing that, across the board. it's just that the big box and a couple of locations, it's not just us. It's everybody who's had a level set their their their rent expectations because of the the glut in, builds that came up over the past year.
Yes, we're probably averaging three 5% on that.
On new and renewals on the bumps yes.
Got it.
Thank you.
And as a final reminder, if you'd like to ask a question. Please press Star then one.
Speaker #4: So while that's being absorbed, rents have kind of flattened a bit on big box, but we'll continue to grow. Once that space is full.
The next question is from Brendan Lynch from Barclays. Please. Please go ahead.
Speaker #8: Got it. Maybe last one. On the rent bumps, what kind of rent bumps are you guys achieving right now in all your new leases and renewals when you're renegotiating those contracts versus what's in place?
Good morning, Thanks for taking my question.
Jeff can you talk a little bit about your capital allocation priorities over the next couple of quarters, obviously, you've been very active on the acquisition front recycling some capital, but theres also been an uptick in share repurchases and kind of where that fits in your list of priorities.
Speaker #8: Is that still higher? So we should expect the overall portfolio bumps to continue to trend up?
Speaker #4: Yeah. We're probably averaging three and a half percent on that.
Sure Brandon.
I think as we mentioned we have about $90 million left to deploy.
Speaker #8: On new and renewals on the bumps?
Speaker #4: Yes.
Whether that's across acquisitions or share repurchases.
Speaker #8: Got it. Excellent. Thank you.
The thing about share repurchases that they take time.
Speaker #1: And as a final reminder, if you'd like to ask a estion, please press star then one. The next question is from Brendan Lynch from Barclays.
You can only buy so much of the average daily volume so.
What we're trying to do is look at acquisitions.
Speaker #1: Please please go ahead.
Look at look at the volume of share repurchases and I think we've done a pretty good job of basically blending that as we go but we will.
Speaker #9: Good morning. Thanks for taking my estion. Jeff, can you talk a little bit about your capital allocation priorities over the next couple of quarters?
Speaker #9: obviously, you've been very tive on the acquisition front, recycling some capital, but there's also been an uptick in share repurchases and kind of where that fits in in in your, list of priorities.
By the end of the year, we will deploy that $90 million I can't say, what the mix is going to be but it will be.
Similar to what you've seen in the past.
Those are the two priorities right there.
Speaker #7: Sure, Brendan. I think as we mentioned, we have about $90 million left to deploy. you know, whether that's across acquisitions or share repurchases. the thing about share repurchases is that they take time.
In terms of the acquisitions.
How much left do you have in terms of 10 31 exchange capital.
Well not 10 31, exactly but the essentially deployment of this strategic capacity created by the sixth Street transaction, there's about as Jeff said about $91 million left to deploy of the $500 million that we announced.
Speaker #7: you know, you can only buy so much, of the average daily volume. So, what 're trying to do is look at acquisitions, look at look at the volume of of the share repurchases, and, I think we've done a pretty good ob of of basically blending that as we go.
At the time of the deal.
Speaker #7: But we will, you know, by the end of the year, we will deploy that $90 million dollars. I can't say what the what what the, mix is going to be, but it'll be, similar to what you've en in the past.
Okay. Thank you and then.
Any update on the potential build to suit opportunities in Cincinnati or Memphis.
Yeah.
Speaker #7: So those are the two priorities right there.
Yes, so we have.
Two we've got more than that Brandon as you know.
Speaker #9: And in s of the acquisitions, how much left do you have in terms of 1031 exchange capital? Well, not 1031, exactly, but the essentially deployment of this strategic capacity created by the 6th Street transaction.
The other pieces of land, some in Charlotte and Atlanta, but all of our parcels.
With our brokers, we have built to suit packages out there.
As of today, there has been very limited activity.
Speaker #9: There's about, as Jeff said, about $91 million left to deploy of the 500 million that we announced, at the time of the deal. Okay.
You can imagine on new construction, but we.
We continue.
To market it.
Continues to be some interest.
Is this absorption.
Speaker #9: Thank you. And then, any update on the potential build-to-suit opportunities in Cincinnati or Memphis? Yeah. So we have, you know, two... well, we got more than that, Brendan, as you know.
Starts to.
It really picks up here as we get into next year.
We felt we will feel confident that we're going to find someone.
These are infill locations in Memphis. These are infill locations in Cincinnati.
Cincinnati is 200000 square feet, it's ready to go it's got high speed rail it's owned heavy industry. So we think that space will go kind of as soon as soon as.
Speaker #9: because several other pieces of land, some in, in Charlotte, in Atlanta. But all all of our parcels, you ow, with our brokers, we have built-to-suit packages out there.
Some of the bigger box absorption happen.
Speaker #9: you know, as of today, there's been very limited activity, as you can imagine, on, you ow, on new construction. But, we we continue to market it.
Okay, great. Thanks for the color.
Thank you.
And ladies and gentlemen. This concludes today's question and answer session and thus concludes today's call. We thank you for joining Plymouth industrial REIT second quarter earnings call. You may now disconnect your lines.
Speaker #9: It continues to be some interest. and I think as this absorption starts , you know, really pick up here as we get into next year, you know, we feel we'll feel confident that we're going to find someone that's, ou know, and these are infill locations.
Speaker #9: In Memphis, these are infill locations in Cincinnati. I mean, the Cincinnati is 200,000 square feet. It's ready to go. It's got high-speed rail. It's owned, heavy industry.
Speaker #9: So we we think that that space will will will go, you know, kind of as soon as on as, some of this bigger box absorption happens.
Speaker #9: Okay. Great. Thanks for the color.
Speaker #7: Thank you.
Speaker #1: And ladies and gentlemen, this concludes today's question and answer session. And thus concludes today's call. We thank you for joining Plymouth Industrial REIT's second quarter earnings call.