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First Industrial (FR)

Participants
Arthur Harmon VP, IR & Marketing
Peter Baccile President, CEO & Director
Scott Musil CFO, SVP, Treasurer & Assistant Secretary
Johannson Yap Co-Founder, CIO & EVP, West Region
Christopher Schneider SVP, O&CIO
Peter Schultz EVP, East Region
Craig Mailman KeyBanc Capital Markets
Ki Bin Kim Truist
Rob Stevenson Janney
Caitlin Burrows Goldman
Michael Carroll RBC Capital Markets
Dave Rodgers Baird
Vince Tibone Green Street
Mike Mueller JPMorgan
Call transcript
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Operator

Good day, and thank you for standing by. Welcome to the First Industrial Second Quarter 2021 Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to your host Mr. Art Harmon, Vice President of Investor Relations. you. Thank Sir. ahead, go Please

Arthur Harmon

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

statements Thursday, laws. statements time-sensitive and or These accurate quarter discuss as to July may remind that include expectations, be we our other XXXX of of let only date, XXnd, obligation Actual statements filings. on today's assume everyone by statements and provide. forward-looking securities materially may update We we call plans cause factors Before our differ which statements are our in other second management's from our our the XX-K described forward-looking me XXXX. and information guidance, SEC results no may as federal defined could updated estimates well as results are based as and prospects. this our Today's

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

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

call let over Peter. me to Now turn the

Peter Baccile

joining Thanks, Art, us. for and you all thank

investment operating and quarter delivered robust another strong for development more great team growth. Our results, by leasing highlighted

FFO quarter supply net a by year, This feet an million. leasing. rates evidenced quarter this In XXX last on increase on and points increase renewal at came sector in strong overall activity of third were was XXXX the limited was XX.X%, flash low second million after of XX second which breadth to investments rates momentum locations. occupancy of renewal over Scott in of sought walk CBRE in rental were performance half the leasing. three the end at and million the second tenant through quarter, as in second of while to square of sector, first XX.X% signed overall Completions continuing quarter the increasing were strength real-estate to-date. new was you the carried will million of the the a driving land quarter. our rental accompanied quarter cash occupancy supported outpacing Our square economy construction in new was development quarter. feet gain million and the end as absorption our XX Per in successful to are development leases The by while by feet square and basis also and new increase throughout we we increase reduced net XX developable the the shortly. feet. and highly report, guidance strength quarter absorption Due continuing year to efforts occupancy continue readily well demand square In-service XXX healthy completions in quarterly of by Through in of X.X second from availability impacted industrial

Central XX% at XX% consumer we leased. Parkway totaling foot a we a foot a logistics We two to Pennsylvania of the two Logistics First vacancy the two XXX,XXX bringing feet company. Houston, Pennsylvania, at XXX,XXX just First completed to feet Logistics developments. at XXX This signed XX,XXX to square United leased among our leased that we Grand Commerce square the of XXX,XXX In our successfully care XXX,XXX leading building bringing square at XXX,XXX the to project Dallas, Independent Center is In leases there provided building square foot foot in States are Postal First to of as started Park announce square Also, leased last the phase building last park This Center, largest now in pleased products of square to XXX% discussed our takes XXX,XXX center that square in park pre-lease XX.XX phase Service. quarter foot in that is the on second the leased. we addition our call. at the to First

pre-leased quarter we fourth XXX,XXX quarter in to First Park significant which in foot XX% the achieved expected part building also the square II company. developments start to that In of I'll in in This South discuss leasing building Miami pre-leased also a commence new at process. We is This scheduled XXX% and next is our same for transportation Florida, at of and tenant the mid-first shortly. lease completion XXXX. of our logistics

profitable the our square We also XXX% Distribution new soon is October given be XX foot the First a development ecommerce square in foot leased build-to-suit retailer. to strong the for of the XXXX. completed and by replenish team our demand laid opportunities, third excited with Pompano. of to several XXX,XXX pipeline The starts. were the ability Nashville, with Xst. lease In share XXX,XXX will successful winning Completion commence in to Center we quarter we're specialty of development leading

Florida, demand million of as known in the start will tenant and building X. of X.X%. we Our square seeing Park First project with yields $XX our Taking footer advantage Miami, cash South at a are of we XXX,XXX projected investment

of targeted to space noted, we Total $XX cash the XX% going of aim for As vertical. and I just yield with is of advance estimated investment X.X%. and lease million a

addition well-positioned that million in a and X.X million square we we today you develop can another control starting Park. in also developable are Logistics First the feet square in square buildout Florida, Orlando XX to X.X on up acres land of to feet. it's total remind for own for Loop Also, we I feet that way, another park, already at under XXX,XXX are we to future We growth market

Service, investment the an $XXX million feet and million Central have estimated X.X%, approximately A. cash of X.X an a investment as approximately of tenants in margin X.X Estimated XXX, quarter $XX serve estimated East of XXXX for process development a Pennsylvania investment million $XX an feet ready. X.X%. construction This a with completion of yield major Coast U.S. cash Logistics is First to $XXX building feet Including XXX,XXX Postal a quarter, In yield of third investment UPS, square site million totaled projects First with on can yield a development and total cash parcel a Out X.X%. new project on of a in overall total Loop the accommodate The hubs $XXX our million begun XXX,XXX launched plan of is totaled with and $XX of consumption building strong First XXX,XXX Known with Center of the is site at acquired the zone. cash million million we for In strategic foot the location four is our quarter which yield I-XX/XX where proximate Seattle, we FedEx, First these for for X.X%. of is yield square investment X.X%. a these second the million cash totaling square with a XX%. In and total is expected building starts square these we million. projected X.X starts, permit estimated summary, also newly Building targeted targeted footer. square foot announced development Steele, development square at

joint bolster serve for further cash a our development purchase a million successful largely We it venture. acquired are JV the flow for growth. from venture unlevered we This what which excited $XX.X of us To generated logistics our XXX million. IRR our means another the share about PVXXX partners out this quarter. price prime high and holding future the reduction robust demand earned gain from very land the closes $XX.X remaining needs pipeline tenants our and this at and XX% promote in pipeline, gives reflects for joint This to acres a

Banning can the X% can Inland $XX addition, a up East we square acre our for million Camelback In joint last just around the that our that support in today million East In size can at week, than around range. X.X site Empire the balance land share total, accommodate meet in Vacancy is square just in requirements submarket feet XX.X of square sites million is of limited our closed our Inland footer. in of this Empire XX million venture new more to sheet customer X.X and investment feet.

for growth. well-positioned future are we very So,

and an yield quarter regional foot square in Orlando $XX.X acquisitions is on distribution Denver. investment was stabilized and a comprised the in Total facility were combined XX,XXX square Second building XX,XXX warehouse cash X.X%. million foot

million at X.X%. in-place during three sales, to properties one rate and unit $XX.X sold of quarter Moving we on for cap the approximately an

the In for guidance one We total, of $XXX year-to-date we have have million million. also parcel sold sold $XXX reached our range million low-end million. to of $XXX land sales $XX an and

turn I over on second execution, their Industrial very let term First our me to let express contributions more turn to line-up will and the quarter the me heartfelt Scott Scott. team With quarter. discuss my loan to Before hard entire to that, successful details who credit many and over our for work it thanks and

Scott Musil

Thank you, Peter.

a rental in NOI in X cash leasing developments up quarter. with Of recap XX.X%. our the share on commenced were million me XQ these, growth a diluted XX.X%. square rates from fully share acquisitions compared NAREIT real-estate Cash operations to for per for in retention leases. basis, excluding was activity the X.X line per straight rate new and occupancy X.X% termination renewal rates Let leasing with offset footage quarter $X.XX million for increase our in approximately renewals XX.X% Summarizing and increasing were lease-up. embedded the XXX,XXX X.X funds same-store an of during in and leasing quarter were renewals with on And by were results overall $X.XX XX.X% decrease we expense for rental taxes. by Tenant up fees up XXXX up bad leasing, feet renewals, our by up were XX% rates slightly XX.X%. quarter, million a basis, our square a helped new new, was an increase XX.X% in leases bumps rental the and and rental new debt and were on overall lower

this transactions on sheet. demonstrates financing the side. month Peter Moving strength out our for the to closed we balance of pricing mentioned the which two capital

this our amended was scheduled of we line which to credit First, expire October.

month $XXX reduction deal six was for our rate million, plus XX.X it basis pricing facilities credit interest four years with XX.X a from in of Our matures basis points two extension spread. options. previous points, The new LIBOR is

This basis points. basis loan XX loan July is credit term in loans interest our was With has new our this the our new term X.XX%. interest fixed of that previous compared financed is LIBOR plus in in million We XX due the rates an also matures point month, and $XXX term to earlier the loan. mature to the XXXX a interest rate reduction swaps spread term place, on rate

adjusted maintained many as provide will Industrial. credit agreements which level Given BBB+/BaaX to years the leverage pricing our our than partners of applicable Reflected the the for line as would our First thank strength ratings is one like current flat/BaaX. with other We than support secured leaves long financings remains net at and matrix, the maturity preferred of million loans which in mortgage and us two banking our for of be our term XX.X%. interest paid In consolidated of debt weighted was ratio $XX less This of credit weighted defined average pricing rate at an credit strong X.XX% June as plus BBB times. better a favorable no term the loan notch the the of interest XXth, the maturities quarter, At off average we EBITDA these our X.X executions, for unsecured by is remainder years rate stock the loans of X.X to with second of year. X.X%. notes,

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

NOI the at second with interest FFO is XX%, guidance announced assumes share guidance development a the to the and as set increase that occur of former reflecting an $X.XX share growth guidance. foot XX on next to quarter raise square space to guidance three will our leasing space portfolio, we occupancy $X.XX before basis Same-store was backfill that our Pier more points XX% an basis to in for now offset year. to Due capitalized excludes X as $X.XX were now per are our in Our of second at a X.XX% than that Quarter midpoint additional enough essentially settlement. XXX,XXX able million our due starts. occupancy end of Please NAREIT which midpoint X.XX% per our midpoint our an for XX a points quarter performance Please termination insurance from fees the increase from impact to and at note average same-store to due of follows. guidance our increase midpoint. gain the increase of performance. Key an an that the $X of assumptions occupancy note basis approximately lease-up in-service cash range of the

expense First G&A Park $XX million the ground First XXXX, full-year starts Park unchanged our discussed, and X, future to June this costs million Building future our also guidance Our debt of Logistics issuance impact development completed and to the In guidance XXth, potential the not expect Miami interest. developments this and guidance Loop per the $XX for call. and under breakings sales, any construction equity. total, $X.XX remains XXXX at than of acquisitions issuances, purchases anticipated any does reflect quarter previously or of plus after at the new capitalize guidance related we includes expected third Steele. about to excludes of after debt repayments The or of impact share call, First Other

to turn Peter. me back it Let over

Peter Baccile

success FR Thanks, for continue we Scott. great achieve another as quarter team to again all And the fronts. to thanks on

to our Importantly, drive us which well recession and future questions. one it for space strongest With then is of the you We follow-up queue. tenants. requirements get great spends back projects to operator plus limit welcome you're questions please serve of since of would continue to positions long-term please to value the and our your that, and growth for in the that shareholders open the pipeline ask you up

Operator

KeyBanc is Thank from question you, Mailman Sir. Capital Craig [Operator from Instructions] first Markets. Our

is line open. Your

Craig Mailman

the process Hey, there? maybe activity just and of prospects at bit that space good elongating morning the the about guy. of it Could or is discuss is the Pier you fall kind submarket X the a what little building back

Peter Baccile

Peter?

Peter Schultz

relatively Activity Schultz. Sure, have couple continues or in that morning, be limited Good have to is it's us supply choices. lease Craig. The few us. good. very for were to-date smaller been submarket buildings The pipeline bigger Peter than of in signings than tenants the a new and

really Our on important is environment and building for immediate positioned process we're is the occupancy delays to permeating elongated materials. which seeing where

really of our shorter-term we're deals a that's So, seen ready to and go. We've couple preference. not

are of moving. longer-term a the slower some And deals little

the his that about offset otherwise remarks, optimistic remain we So, the in that. And strength of as the upside and of Scott our leasing in have still he success the said given there for the mark-to-market in portfolio rest as than that we year. more

we'll keep progress. posted on you So, our

Peter Baccile

even still year out Craig, XX% to the to pushing XXXX, we that with around lease end with Yes plan occupancy. up

us in occupancy lease-up So, of percentage which the X push about Pier all things of XX% is point equal, X% verified that would air industrial sector. is to being about the

Craig Mailman

guys you is point? or pipeline I prospect close tenants your are tenants with like is -- it is guess, Peter, the

Peter Schultz

reiterate, there evaluating good things of market. as number a I just would We're is the said. I Craig, activity in

not shorter-term of longer-term deals some do the be just to are deals slower preference would moving. and Our

Peter Baccile

would to be well. And as Craig, tenant single prefer, for we a it building

size market requirements just needs to match right the just the to the up So, or need match. find in

Craig Mailman

just X% that's helpful. guidance, a very the guys year. you the lap to going the to about your over as a get X Is big outs Scott, Okay, we XQ it just of half be Then that's as around going first you the in midpoint? you of are Pier think spike running move for little like same-store to

Scott Musil

exactly. Yes,

that you're you if the right, rate guidance year. our X% annual same-store one two drivers, implies of do a back is occupancy. Craig, growth the the upon X.XX% about And half main based midpoint for So, math of

or the that occupancy rates about the we'll this X.X% That's going anew leasing. increase a we're the first XXXX. do the about of of So, and year. end end And also the on to in percentage the the on compared to think takes will care of back weighted the points we to half renewal majority get plus to going the of better of rental of back increasing which to that minus with We're bit better achieve of the little year X% a add half us back to X.X% year do same-store.

Craig Mailman

thank Great, you.

Operator

Bin is Truist. question from next Ki Our from Kim

is open. Your line

Ki Bin

Thanks morning and good guys.

Peter Baccile

Good morning, Ki Bin.

Ki Bin

morning. Good

interesting have in guys pretty you made the some investments So, market. Phoenix

in and is talk market You're broker remaining but plan market XXX% obviously dynamics bought about to seems it. how's and I PVXXX million that's demand have the your these take and lands want sure reports a not portion and you Can on to given to supply you delivered just there square that of being Camelback ownership get be pre-lease? well. that especially as with that the just in XX% about only I'm XX are feet the

Jojo Yap

is Bin, this absorption Jojo. has almost trumped and Phoenix, had hi complete record obviously say a Kim I by there's Sure would no the half, first double. it it clearly been

XX half sort year, absorption XX a of of net last which the about the of million in almost feet of seen year-to-date I've of rate one years. is highest square First the

Actually very lot at have, minimal big in Lot what Manufacturers data come look well. demand. of either demand you or XPL's, centers. develop downtime. right Historically a Omni building completion; we we for that channel. if again ecommerce lot have lot we So, before every of of of as And completion we'll rated, lease. after

speak about have being now we feet to proposed XXX. As we development you we're on XXX,XXX know, actually sheet balance on as And we're square a and expandable that.

at we're This bought. I'll options. proposals So, that we and insurance keep looking land the in it other we've got now

there's foot. square You below I that XX% that basis, in about tell look per can fact sub-X, XX% to-date you to XXX at about is market. basis

the of that money six bat the and out that will in we're easy yield be the it of given over the the we're will believe rest So, that and we we in in the right base future today should off think wheels. inside

and good portfolio our feeling about current way there about XX% leased we're the very pretty XXX% investment. we're bullish today to So, now shortly. and going a our existing portfolio And by is

Ki Bin

for that. committed. are you deals on And but for guys for color Scott, spreads thanks Okay, sometimes know I that the fine not lease you give some

at So, should of expect? the that you deals when what have look spreads you kind of we to continue currently, pipeline

Scott Musil

expiring of the the are rental is the well of for at so today there XXXX, done XX% that is with of Even got they coupled we're So, cash seeing we've XX.X%. in that about year new leasing that were increase as a leases sign. stat we've looking rates of this

it's leasing So, new through include you when year the very healthy pretty it that which the renewals much we've done. we the and made

Ki Bin

Okay, you. thank

Operator

question next from Our Janney. Rob is from Stevenson

Your line is open.

Rob Stevenson

talk Can you're foot you is land paid building bit square the the and X.X two Good mean, million a basis little which there? per-acre about morning, guys. I land you on purchase a cost property the Central alone times nearly PA the Central PA a your used then foot for Parcel. rents at were should portfolio. seeing land. the square PA be that the on to Inland premium here existing And Not per $X Central Empire trading of to versus big California

Peter Schultz

morning. good Rob, Peter Schultz. It's

So, In and bigger square XXX calls of range in a million better. plus. Demand been things. continues said as prior and we've to has most foot consistent be active couple on Pennsylvania, the

There have number to profile demand they're you essentially construction building there that is one been of Pennsylvania. Central footers today other that that's square been the lease. they're strong. has So, essentially been a addition constructed, ours all fair look only certainly constructed, at in really has in under When million supply,

Peter XX some hubs in a say parcel close The is tenants Harrisburg labor of importantly than in the or strong for choices North this the and PA. mentioned along to limited intermodals very southern and remarks, very demand. site the up the quarter in much the East So, better story as site with to

about So, that great we location. and of really factors feel combination

a terms of In the FIR $XX that's price, on about basis.

building So, the a ready-to-go. that fully entitled is site is which under permitted

after. the construction day started we So,

that California going about? you opportunity XXX market with is rates the we So, and value lower quite in to want that process. talk to entitlement think about Cap is the site create talk Jojo Jojo, through going can today. here But the good

Jojo Yap

the the the because six by our across a That that's want Yes. about to assembling that parcels market, XX% in off two net that's to year, there I different of pick sale got We that tip sellers wouldn’t right market deal market basis. already of as market. way the the and per-lease street, below

the definitely then the that where hit market market. that team so to in team, Inland Empire thanks our that getting for That's So, LA done. deal

look to $X that's you If under it, mid-teens. to close where a Less there be prices decided foot. we have at

you that's because as would use shouldn’t price hit I that long as never that So, the as market. market

Rob Stevenson

you've amount then in third is similar And now got about $XXX Okay. second in announced million rough there's numbers million XX'sh completed be pipeline the of The completed quarter question. to and starts.

doing pre-leasing is more been back have this let comfortable it you're million significant direction? as you demand $XXX pulls Do you $XXX lot in here fall that pipeline. guys to million'ish. where sit a $XXX that Does at and sort of the a up of million'ish you on You drift level Do today. that

As be thinking how should forward, you pipeline? we the about look

Peter Schultz

build about we Peter. hi million That we to Yes, the Look, about include land talked and equates today. million own. that we about one that feet on doesn’t XX.X it's can XXX

a billion of $X.X investment. net worth that's about That's of $X.X billion that's that. So,

control another Camelback the also is JV share investment. And -- about $XXX land where XXX. We can invest million we our of can another we of JV build

pushing So, of billion that talked if up, that's add today, you we XXX $X all of about net the investment. again

see up can our today. You volumes are that

today I than think or higher forget can years now been ago. company much larger they development expect volumes is have our you going forward, historically. three than our was Don’t to even it two be

the closer probably are historical go-forward the that level. to So, the numbers than you're quoting

Rob Stevenson

Okay. it. appreciate I Thanks guys,

Operator

is question Goldman Sachs. Burrows from Caitlin from next The

open. line Your is

Caitlin Burrows

time more there is or keeping guess, Maybe just is anything that have, else moving the one. markedly? opportunity that last you it and that from Hi, you just that that good assemble moving on as investment given forward have quickly from take keeps then morning. I think what to a land it follow-up you

Peter Schultz

really single project just it's timeline a story working and and has a every that. through Well,

We as everyone We does, haven’t entitlement Steele with you and a commodity time. face there else on as tied are know other commodity takes inputs long the delays process inputs. do shortages potential

the So, that timing. influences

development cap. You speculative know leasing and we have a

manage timely is developments make in sure We We great Building lease a good. if to have that's that. way. to but you that new we to want these continue the buildings, not lease don’t

we're where And as we seen ahead many vertical. pro the schedule ahead they're lease-up projects forma leased cases go of at far some so or of being these before you've way of of on or near in completion, even

market's strong where we So, to that we're to them only ready now and continue go. great as the roll going very to out they're sites

Caitlin Burrows

what Got if were earlier. you it, continue talk could just interest types have if and you maybe most talking you of about little there's on visibility is. forward demands from that any think that those while to that supporting these you're seeing And and a the then deep spreads lease okay. And tenants how bit then can

Peter Baccile

you add Jojo, to some and Peter want that? to color

Peter Schultz

Sure. Hey, Caitlin.

and good improvement. include some apparels, we very needs see space across The home portfolio. most of logistics & ecommerce, transportation lot companies, very good. home activity building, products, across very Tenants consumer continue So, continues to beverage, fragile. Jojo? is some demand food It be to would and markets and a industries the active

Jojo Yap

and just tenants chain not their but that to major existing increase. online the to supply because know this reconfiguring or is business really necessarily continuing Nothing

space. more add to need just they So,

Peter Schultz

all. Then your demand any we're seeing question not slowdown to of Peter. Caitlin. Hey, at

Caitlin Burrows

it. Got

Okay you. great, thank

Operator

Markets. question next from Capital Michael from Our RBC Carroll is Instructions] [Operator

open. Your line is

Michael Carroll

X.X guess leasing thanks. this to rents development you and past Can what type to were that of current versus provide on you guess the months. I maybe, changed Yes, achieve how guys color highlight market three quarter has the I that stack six over underwriting. able rents some on million And

you that, on provide great. would be details If can

Peter Baccile

Guys, you rents? want market to talk about

Peter Schultz

Sure.

would and paces West rent the It's range For range market. year accelerated the Coastal then of different at growth. towards terms to period. would higher one first three-to-five Coast East the be rents number highest between market because would be XX by market it's immediately And the I hard over XX. say everything that to the half in pick that behind to year, of in market would of be the and

very is that of in meet the half been thing it's is is supply robust. year did So, market not the why the there what's and first that's the The that a for happened demand squeeze.

Peter Baccile

Peter. And it's Mike,

earlier of the underwriting all higher costs. rents terms in have at In general, at leased lower of projects

talked longer about, we've but couple general that we bit took had little across the beat As a we've a in underwriting board. our

Michael Carroll

now? XXX% don’t in the are right I a If the that but that know the then And now the of numbers like leased. I the if us you'd maybe maybe that on provide can yet -- I guess and you stabilized developments achieved you've were margins are right and the are these update guess development that developments Great. from that guess on the process end XXXX at then how those trending road I does

Peter Schultz

Sure.

like margin development Peter million newly XX%. our of Peter of developments, said, of the quarter there the roughly under of out end launched that $XXX construction. said So, plus the basically it's the At

are Still, the And recently margins. announced, above so, if you the targeted to they're closer low-XX's. recently and look at

was prices gone up. across of over rate land much overly overcompensated basically costs, So, bit market year increases say half half of would cap overall rate of first construction I last cost impact rental year. be The why. could that and if trending, have X) margins and of this up compression. reason and Land in X) first terms that here's the gone compressed the the But a have by

Does a little margin your that's rate primarily but bit some bit. that's cap have and answer question? by that then overweighed the But you So, compression little increases compression. rental rate

Michael Carroll

It perfect. does. It's Thanks.

Operator

Rodgers Baird. next from from our And question is Dave

open. is line Your

Dave Rodgers

everybody. morning Yeah. Good

ask of to wanted at. Just about is terms where rent ranges size in growth

how even since has it, it. broad the can about performance mentioned rent the maybe missed beginning go apologize been you size talk you trended ranges can I year? back. and I or But of And I If some

Christopher Schneider

this is Dave, Yeah, Chris.

As ranges. perspective, across increase ranges. our healthy plus far size all increases, size across as from seeing a pretty We're all it's double-digit size broad-based been our

Dave Rodgers

Okay. That's helpful.

Peter Baccile

Yes.

know don't if the slight I quarter. or did. asked else difference you think somebody question this in last I the

last growing well. a larger smaller pretty quarter have much the quickly would I now in leveled are think faster growing That's bit spaces as rents spaces. little are and the pretty said, we out

Dave Rodgers

pretty clarity. It's to back much

That are Okay. compression in maybe helps. year-to-date I market-by-market performance center assets. a do from you what either that you either there's cap perspective? hit think be cap seen, terms guess, maybe that in like I on parity, of sizes what And Or then seeing you're we've to the greater changed country of been It has compression Bs seeing or between think? starting some differences rates? also sounds in and some some would rate still

Johannson Yap

of Jojo. very terms part you terms so the lease, acquisition, across board. and and -- real There's market sizes There's The large the investors development size compression They're spectrum the broad much hi, in it's redevelopment, fierce. on all the either, the or opportunities. from have basically every of also competition of the for one-offs. across increase, The industrial. -- capital capital on very, estate is, today across portfolio of capex is buyers sizes In of Dave,

Peter Baccile

basis in I'd say XX secondary kind of to on on probably points XX cap come versus based the depending rates points. have market, basis primary

Johannson Yap

Anything above. Yes.

Dave Rodgers

the disposition I we'd we you color. have about Baccile, into company, development aggressively think success. being one your sized it maybe size Okay. year Or thing perspective? and Yes. repositioning sounds and like Thanks to mean, sales, really larger is of this you development an I continue up with haven't think the in than comment development should of to about we that forward, for do next relative company, as But year, way? program, think of you equity up on I going mentioned the Peter to have the accelerate you sizing asset the start argue an more more been think from funding even that level increased this number. it

Peter Baccile

leased. ago years on, maybe million position focused were I timing there are maximize a than of certainly that to on be that we're different think those are the change. looking we the I obviously $XXX few the to million But they're forward, volumes, One when going million, and value of the sales, think, can assets. closer lot whether to volume $XXX The of million. $XXX sales of that fully assets We're going particular $XXX is selling range to inputs. a

of, Sometimes of can't the we'll of some our that didn't to opportunity offers at dispose we maybe get assets on which list that that in we top refuse to take assets. dispose case have unsolicited we those

not The yes, development are. pipeline we're question. So going volume we probably move the the is to your like disposition answer really to up

Dave Rodgers

give said it on you that. have that quarter I on update positive the think the same-store years debt. case, bad I an But for impact a in been the tell impact? Thanks. you appreciate you and that's us one did for now. on us you was can kind Can many Scott, what and I that? of guess,

Peter Baccile

first Dave, it year months six second bad quarter, was which the means effectively of zero this expense. debt for for the at zero

our metrics credit So points basis about our added the we which why one guidance. are to store, same fabulously doing XX increased reasons is of and that

debt. bad low So showing, very very good

Dave Rodgers

that it Pier going Thank right. to get I'm Is back I just to long-term you guys up? want column the parking, very question you long All to courts, that. term? it building go you Last leased the spacing first does asset a hold guess is in the for you Craig's that for a back mean going if I X. one, height, the truck have

Peter Schultz

Schultz, like We like that really submarket. really It's Peter that. we Dave. So

our prior say, look talked As we've in And management constrained. calls, is we basis. ongoing we high as asset barriers, about assets all an at supply of

submarket. we to evaluate certainly next bit that to that. one little favorably. very this and a assets like functional. continue smaller, There's is The it, we'll one the meet market the which So But compete and are

Dave Rodgers

everyone. Thanks, Okay.

Operator

is next Street. Green Vince from from Tibone question And our

open. is line Your

Vince Tibone

goals, flex I last property necessarily more you because to the follow-up given morning. about on sales, expedite less a out coastal, at the disposition I Investor you your had going of need active but strength on funds, more kind more curious, transaction Day? that not bit the commentary. why just I'm the not Hi. be a little Good of market, portfolio mean laid

Peter Baccile

Yes.

of a selling. that XX% So we're are focused we're The one-off buy about we couple a what that maybe the about they of question. buyers a for time. these selling at buy certainly a Users lot. think nature assets good typically deals, It's on

regional the we're assets is XXXX local looking offices buyer who that these then family got assets. in You you've worth have at also selling. high the the actively are And active net who

pull can is taking big that we at and really So to they that don't value that portfolios way a time the assets of from to and we look those way way. present don't time lend together we consider them the doesn't themselves some the the trying maximize market to sell mean to have. It

all potential So we evaluate the options.

really doing the maximize far, been best we've way so way has And been value. the to it

Vince Tibone

to is don't the Or range you're from able really of all kind this just is kind this at maybe $XXX one capital human dispose of mean increase possible I time? volumes the we're way it doing $XXX I know, million a perspective, -- it? a million it to in So to of you doing

Peter Baccile

last to we've crack. portfolio mean a handle in you've sold resources And sale. in I the million, if a have years, $XXX No. five we bigger the million internally seen $XXX to

just, maximize again, and So to that's so. We're an trying issue. out it not to pace do value

Vince Tibone

That's Got helpful Thank color. it. I you. have. That's all

Peter Baccile

other is has time as gotten with and better thing those have and been better the the the in And over patient that time. better and pricing done say assets those leasing sales, has gotten over better status I'd and that we

question? Next

Operator

Our Instructions] Mike question Mueller JPMorgan. from [Operator is next from

Your line is open.

Mike Mueller

lot it of see got something acquisition better acquisitions on you not on just XX,XXX a Yes, side, square of do to economics lot XXX,XXX XX,XXX smaller to square buildings feet. driving curious a seems seeing to But bidders? but foot like just you're disconnect? fewer on you hi. that or I development guess tend you XXX,XXX Is side, I'm the the large, it buildings. occasionally of what's

Peter Baccile

Jojo, take you want to that?

Johannson Yap

and almost therefore, deals, or And typically Large, value, process. to sellers the do to kind Mike, value you hopefully to a with ground yes. might less there's go well is less large. you're they Yes, unsolicited when be you're from And competition, larger you of most be One try large no of to acquisitions. sophisticated no -- couple capitalized off-market do dealing exactly size, generated fertile little it's are more sellers. those efficient well and capitalized, a well reasons. smaller bit less a competing represented in

yes. So

do that So increase -- to typically, strategy. And then very always smaller. and infill infill, if For when in go we're get bigger also, look at this of Denver Northeast. And infill the that? our portfolio notice, our you portfolio, we bolt-ons. to neighboring to by property trying so good you portfolio, sizes It's What it's a a if mean is you a a of acquisitions, our are development. going example, do we lot number

same and recent So easy us our to thing acquisition it's get for the in deal with profitable a Orlando. small there

that's to properties already we have. close So that the

Mike Mueller

it. I makes Thanks. was That all Got sense. had. That

Operator

showing no at remarks. this back the now And Peter will I turn am Baccile closing time. for I further Mr. call over questions to

Peter Baccile

Thank near well. you, you for And Be always, of participating the our on Scott meet reach we with very connecting much. please future. to thanks today. feel free in to call look And And Arthur question. follow-up everyone forward to out many as or with any

Operator

may conference you, Thank participating, presenters. this gentlemen, for Thank today's disconnect. Ladies you now call. and concludes you