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Item 2.02
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Results of Operations and Financial Condition
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The information set forth in Item 7.01 below is incorporated by reference into this Item 2.02.
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Item 7.01
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Regulation FD Disclosure
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On April 13, 2021, INDUS Realty Trust, Inc. (“INDUS” or the “Company”) issued a press release announcing the following updates on leasing, its acquisition and development pipeline, its potential dispositions and the impact of the COVID-19 pandemic on rent collections.
Leasing Activity
During the three months ended March 31, 2021 (the “2021 first quarter”), INDUS executed four first generation leases totaling approximately 202,000 square feet at 160 and 180 International Drive in the Charlotte market and 170 Sunport Lane in the Orlando, Florida market. These new leases had a weighted average lease term of 6.5 years and a weighted average lease cost per square foot per year of $1.19.1
As a result of the lease executions mentioned above, both 160 and 180 International Drive in the Charlotte market are now fully leased. These two buildings aggregating approximately 283,000 square feet were speculative industrial/logistics developments delivered together in the fourth quarter of fiscal 2019. Additionally, including a lease signed subsequent to the 2021 first quarter, the Company’s most recent value-add acquisition, 170 Sunport Lane in the Orlando market, is over 60% leased with only approximately 27,000 square feet of vacancy remaining.
Additionally, during the 2021 first quarter, INDUS executed two first generation leases totaling approximately 297,000 square feet for projects currently in its development pipeline (see below section on “Acquisition & Development Pipeline”). One of these first generation leases is a fifteen-year lease agreement and development agreement with Amazon for a build-to-suit development (the “Charlotte Build-to-Suit”) on the Company’s 44 acre land parcel located on Old Statesville Road in Charlotte (the “Charlotte Land”). Under these agreements, INDUS has agreed to develop a last-mile approximately 141,000 square foot industrial/logistics facility for use by Amazon. The facility would utilize all of the development potential of the Charlotte Land and is expected to be completed in the 2021 third quarter.
The other of these first generation leases is a seven-year agreement with a leading global shipping and logistics company for a portion of a to-be-constructed approximately 234,000 square foot industrial/logistics building on the Company’s 16 acre land parcel at 110 Tradeport Drive (the “110 Tradeport Development”) in New England Tradeport (“NE Tradeport”), the Company’s industrial park in Windsor and East Granby, Connecticut. Under the terms of the agreement, the tenant will relocate from its existing approximately 74,000 square foot space in one of the Company’s existing NE Tradeport industrial/logistics buildings into approximately 156,000 square feet in the 110 Tradeport Development upon its completion, which is expected by March 31, 2022. INDUS intends to market the remaining approximately 78,000 square feet in the 110 Tradeport Development for lease.
In connection with its anticipated election to become a real estate investment trust for the year ending December 31, 2021, the Company changed its fiscal year from November 30 to December 31 effective with the 2021 fiscal year that began on January 1, 2021. As a result of this change, the Company
1 Weighted average lease cost per square foot per year reflects total lease costs (tenant improvements, leasing commissions and legal costs) per square foot per year of the lease term.