Plymouth Industrial REIT Inc (NYSE:PLYM) Q2 2020 Earnings Conference Call - Final Transcript
Aug 06, 2020 • 09:00 am ET
Jeffrey E. Witherell
pipeline of new opportunities with a particular emphasis on the markets that have large pools of skilled blue-collar workers in light industrial product in infill markets. We also improved our liquidity and the greater confidence in our outlook freed us up to pay down some borrowings on our credit facility. I will let the team walk through some highlights from each area of their responsibility, but let me first reiterate our point of emphasis for the balance of the year.
Rent collections were obviously front and center for us and for the entire sector, and we continue to do very well on this front. We collected 94% of our recurring monthly billings in Q2. After factoring in some select rent deferral agreements that accounted for only 1.6% of our annualized base rent being deferred until the end of the year, we have collected 99% for the second quarter. We have already collected 97% for July, which is right on pace with, if not ahead of, where we were a quarter ago.
Our asset and property management team continued to take care of our renewals as well as vacancy in the portfolio. We've addressed 78% of our original 2020 expirations and have only 280,000 square feet left that is scheduled to expire by year-end. We do have some vacancy that has been added this quarter, and Jim will break that down for us a bit later. Most of this was expected and within our original occupancy assumptions, some was unexpected. All things considered with the disruption that has taken place in the economy, we are in very great shape.
Our acquisition activity during the quarter was focused on taking a fresh look at a range of investment opportunities that line up where we believe new demand is coming from, for our industrial space and within our targeted markets. Every other week, it seems there's a new industry report highlighting what we believe for some time. We're entering a historic period of incremental demand for industrial space in this country.
For instance, a few weeks ago, JLL was out with a forecast for a need of 1 billion square feet of industrial space by 2025. The consistent theme across these predictions is that there isn't enough space to currently serve the demand, new supply is likely to be fairly limited or slow in taking up the slab, particularly in infill locations. We also believe that properties in locations such as ours, with access to large pools of skilled blue-collar workers in the main industrial, distribution and logistics quarters of the country can have an outsized benefit from this demand over time, not just from the growth of e-commerce, but from trimming and the alignment of the supply chains around the world.
While we are certainly benefiting from that demand for e-commerce and last mile locations, we believe the themes that I've mentioned before about the protection of intellectual property, the protection of the supply chain and the reduction of the environmental impact