Plymouth Industrial REIT Inc (NYSE:PLYM) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 01:00 pm ET

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Plymouth Industrial REIT Inc (NYSE:PLYM) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Yes. Yes, thank you. We will now begin the question-and-answer session. [Operator Instructions]. And our question comes from Gaurav Mehta with National Securities.

Analyst
Gaurav Mehta

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

Executive
Jeffrey Witherell

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

Analyst
Gaurav Mehta

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

Executive
Jeffrey Witherell

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

Analyst
Gaurav Mehta

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

Executive
Jeffrey Witherell

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

Analyst
Gaurav Mehta

Okay, thank you.

Executive
Jeffrey Witherell

Thank you.

Operator
Operator

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

Analyst
Barry Oxford

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

Executive
Pendleton White

Hey, Barry, it's Pen here. Our pipeline is full of properties that are in the cap rate range that we have experienced over the last year or so. I don't see really too much change from that standpoint. As you know cap rates when we acquire properties, cap rates only tell a part of the story. So there's more that goes into the acquisitions or NOI's in the acquisition in addition to initial yield. But by and large, for the most part, our, as we look out in the horizon, we do anticipate pursuing acquisitions at cap rates on average, kind of, between 7.5% and 8.5%, in that