Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you identify any known move-outs as we look out to the next few years, especially with the lease expirations in 2026 and 2027? A: It's too early to tell for 2026 and 2027, but we like our tenant base and expect successful renewals. For 2025, we are excited about marking properties to market, which should drive rent growth regardless of tenant retention outcomes. - James Dudley, Executive Vice President, Director - Asset Management
Q: What do yields and rents look like for the three large boxes? Has there been any market change? A: We haven't seen significant changes in market rents, though tenant improvement costs have increased slightly. We're maintaining our prior guidance for stabilization yields around 6%. - James Dudley, Executive Vice President, Director - Asset Management and Brendan Mullinix, Executive Vice President, Chief Investment Officer
Q: Are there any plans for further dispositions this year? A: Not at the moment. We've paused disposition activity due to the current tariff policy uncertainty, but we have a strategic objective to concentrate on our 12 target markets. - T. Wilson Eglin, Executive Vice President, Chief Operating Officer
Q: Is the redevelopment announced today a change in strategy, and how will it impact guidance? A: The redevelopment was always part of the plan and is excluded from our same-store NOI growth guidance. The project is expected to yield a mid-10s return on capital investment. - James Dudley, Executive Vice President, Director - Asset Management and Nathan Brunner, Executive Vice President, Chief Financial Officer, and Treasurer
Q: Are there any markets where you're particularly excited about leasing spreads? A: We are optimistic about the Sun Belt markets, especially Phoenix and Dallas, where we expect significant mark-to-market opportunities. - James Dudley, Executive Vice President, Director - Asset Management
Q: How are tariffs affecting tenant behavior and demand? A: Tenants are responding differently; some continue with their plans, others accelerate demand, and some pause to reassess. Solar panels are one area seeing increased demand. - James Dudley, Executive Vice President, Director - Asset Management
Q: What is the status of the two big lease expirations with Nissan in 2027? A: Nissan's US market is critical, and they have reaffirmed their commitment to US plants. Our facilities are integral to their operations, and we expect a high probability of renewal. - Nathan Brunner, Executive Vice President, Chief Financial Officer, and Treasurer and James Dudley, Executive Vice President, Director - Asset Management
Q: Are large e-commerce players like Amazon showing interest in your developments? A: Yes, we've seen increased activity from major e-commerce players and retailers, which could benefit our recent developments. - James Dudley, Executive Vice President, Director - Asset Management
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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