INDUS Realty Trust, Inc. (Nasdaq: INDT) (“INDUS” or the
“Company”), a U.S. based industrial/logistics REIT, announced
the following leasing, acquisition, development and business
updates for the three months ended September 30, 20221:
Highlights
- Executed 5 leases totaling approximately 418,000 square feet
across the Company’s portfolio.
- Completed and placed into service two development projects in
the Hartford, Connecticut and Orlando, Florida markets totaling
approximately 430,000 square feet.
- Completed the acquisition, for a purchase price of $6.5
million, of an approximately 7.6 acre parcel of land in Allentown,
Pennsylvania which can support the construction of an approximately
91,000 square foot building.
- As of September 30, 2022, the stabilized2 portfolio was 100.0%
leased and total in-service portfolio was 97.6% leased.
- Repaid a $26.3 million construction loan with cash on
hand.
- Subsequent to quarter end, an approximately 63,000 square foot
lease was signed at the two-building forward acquisition in the
Nashville, Tennessee market, bringing the project to 77.2%
pre-leased.
Leasing Activity
During the 2022 third quarter, INDUS executed 5 leases totaling
approximately 418,000 across its portfolio:
- 217,000 square foot full building lease in the Charlotte, North
Carolina market with an investment grade rated national retailer.
This lease commenced at the end of the 2022 third quarter and fills
the vacancy created when the original short-term tenant vacated the
building at the end of July 2022.
- 143,000 square feet of renewals across two leases in the
Hartford, Connecticut market. The larger of the renewals is for a
12 month term which will commence upon the lease’s expiration at
the end of the 2023 first quarter. The other renewal is for a 36
month term which will commence upon the lease’s expiration at the
beginning of the 2023 second quarter.
- 34,500 square foot first generation lease at the recently
delivered 102,250 square foot development in the Lehigh Valley,
Pennsylvania market which brought this building to 100% leased. The
building was completed in the 2022 second quarter and this lease
commenced during the 2022 third quarter.
- 24,000 square foot first generation lease at the approximately
196,000 square foot, two-building development project in the
Orlando, Florida market (“Landstar Logistics”). With this lease,
which is expected to commence during the 2023 second quarter, the
project is now 24.7% leased.
Additionally, subsequent to the end of the 2022 third quarter, a
63,000 square foot first generation lease was signed at the
two-building Nashville, Tennessee forward acquisition in the
Company’s pipeline. With this lease, the to-be-acquired Nashville
portfolio is now 77.2% pre-leased (see below section on
“Acquisition Pipeline”).
As of September 30, 2022, INDUS’ 42 buildings aggregated
approximately 6.1 million square feet. INDUS’ portfolio percentage
leased and percentage leased of stabilized properties were as
follows:
Sept. 30,
2022
June 30,
2022
Mar. 31,
2022
Dec. 31,
2021
Percentage Leased
97.6%
99.4%
100.0%
98.4%
Percentage Leased – Stabilized
Properties
100.0%
100.0%
100.0%
100.0%
As of September 30, 2022, INDUS’ only vacancy reflects
approximately 147,000 square feet in the recently delivered
Landstar Logistics development project.
Acquisition Pipeline
The following is a summary of INDUS’ pipeline of acquisitions
under contract as of September 30, 20223:
Market
Building Count
Building Size (SF)
Type
Purchase Price
(in millions)
Expected Closing
Nashville
2
184,000
Forward (77.2% pre-leased)3
$31.5
Q4 2022
Charleston
1
263,000
Forward
$28.0
Q1 2023
Greenville-Spartanburg
1
280,000
Forward
$28.5
Q2 2023
Charlotte
1
231,000
Forward
$21.2
Q3 2023
Total Acquisition Pipeline
5
958,000
$109.2
The acquisitions in INDUS’ pipeline are each subject to certain
remaining contingencies. There can be no guarantee that these
transactions will be completed under their current terms,
anticipated timelines, or at all.
Development Pipeline
During the 2022 third quarter, INDUS completed and placed into
service its approximately 234,000 square foot building in the
Hartford, Connecticut market (“110 Tradeport”). 110 Tradeport was
100% pre-leased to a tenant within INDUS’ portfolio that relocated
and expanded into the space.
Also during the 2022 third quarter, INDUS completed and placed
into service its approximately 196,000 square foot, two-building
development project in the Orlando, Florida market. Landstar
Logistics is 24.7% leased to two tenants (see above section on
“Leasing Activity”).
The following is a summary of INDUS’ development pipeline as of
September 30, 2022:
Project
Market
Building Size (SF)
Type
Estimated Total Budget (in
millions)
Expected Delivery
American Parkway (one building)
Lehigh Valley
206,000
Speculative
$28.3
Q2 2023
Additionally, the following is a summary of INDUS’ land for
future expected development that is owned or under contract as of
September 30, 2022:
Project
Market
Building Size (SF)
Acreage
Purchase Price of Land (in
millions)
Expected Land Closing
Windsor Land (one building)
Lehigh Valley
91,000
8
$6.5
Completed
Lehigh Valley Land (one building)
Lehigh Valley
90,000
11
$2.3
Q1 2023
Charlotte Land (four buildings)
Charlotte
597,000
231
$4.8
Q4 2023
Closing on the purchase of the land parcels under contract and
the commencement, completion and/or stabilization of the projects
in the development pipeline and on the land for expected future
development are each subject to a number of contingencies. There
can be no guarantee that these transactions and developments will
be completed under their current terms, anticipated timelines, at
the Company’s estimated underwritten yields, or at all.
Corporate Updates
During the 2022 third quarter, INDUS repaid its $26.3 million
construction loan using cash on hand. As a result of the paydown,
INDUS has no floating rate debt outstanding and no debt maturities
prior to 2027. Additionally, the property located at 9817 Old
Statesville Road in Charlotte, North Carolina, which was previously
encumbered by the loan, has become an unencumbered asset of the
Company.
Also during the 2022 third quarter, INDUS announced that its
Board of Directors declared a cash dividend of $0.16 per share of
common stock, which will be payable on October 14, 2022 to
stockholders of record on September 30, 2022.
INDUS’ existing portfolio in Florida and the Carolinas did not
sustain any material damage from Hurricane Ian.
2022 Third Quarter Earnings
Call
INDUS will release its financial results for the 2022 third
quarter after the market closes on Monday, November 7, 2022. The
Company will hold a conference call on Tuesday, November 8, 2022,
at 10:00 am Eastern Time to discuss its results and provide a
business update, followed by a live question and answer session.
The Company’s press release and supplemental materials containing
additional financial and operating information will be available on
INDUS’ website under the Investors section in advance of the
call.
INDUS encourages participants to pre-register for the conference
call using the following link:
https://dpregister.com/sreg/10171578/f4974caaa6
A listen-only webcast of the call will also be made available at
the following link:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=Yo0KCmuT
Those without internet access or those unable to pre-register
may dial in at 10:00 am Eastern Time on Tuesday, November 8, 2022,
by calling:
PARTICIPANT DIAL IN (TOLL FREE): 1-833-630-0580 PARTICIPANT
INTERNATIONAL DIAL IN: 1-412-317-1813
An archived recording of the webcast will be available for three
months under the Investors section of INDUS’ website at
www.indusrt.com.
About INDUS
INDUS is a real estate business principally engaged in
developing, acquiring, managing and leasing industrial/logistics
properties. INDUS owns 42 buildings totaling approximately 6.1
million square feet in Connecticut, Pennsylvania, North Carolina,
South Carolina and Florida.
Forward-Looking Statements:
This Press Release includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements include INDUS’ beliefs
and expectations regarding future events or conditions including,
without limitation, statements regarding the completion of
acquisitions under agreements, pre-leasing agreements, construction
and development plans and timelines, and the expected total
development and stabilization costs of developments in INDUS’
pipeline. Although INDUS believes that its plans, intentions and
expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such plans, intentions or
expectations will be achieved. The projected information disclosed
herein is based on assumptions and estimates that, while considered
reasonable by INDUS as of the date hereof, are inherently subject
to significant business, economic, competitive and regulatory
uncertainties and contingencies, many of which are beyond the
control of INDUS, and which could cause actual results and events
to differ materially from those expressed or implied in the
forward-looking statements. Other important factors that could
affect the outcome of the events set forth in these statements are
described in INDUS’ Securities and Exchange Commission (“SEC”)
filings, including the “Business,” “Risk Factors” and
“Forward-Looking Statements” sections in INDUS’ Annual Report on
Form 10-K for the year ended December 31, 2021, filed with the SEC
on March 11, 2022, as updated by other filings with the SEC. INDUS
disclaims any obligation to update any forward-looking statements
as a result of developments occurring after the date of this press
release except as required by law.
____________________ 1 Portfolio information and statistics are
comprised solely of the Company’s industrial/logistics buildings
and does not reflect any properties classified in discontinued
operations. 2 Stabilized properties reflect buildings that have
reached 90% leased or have been in service for at least one year
since development completion or acquisition date, whichever is
earlier. 3 As of September 30, 2022, the Nashville Portfolio was
42.9% pre-leased. Subsequent to the end of the 2022 third quarter,
an additional lease totaling approximately 63,000 square feet was
signed, bringing the portfolio to 77.2% pre-leased.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221011005121/en/
Ashley Pizzo Vice President, Capital Markets &
Investor Relations (212) 218-7914 apizzo@indusrt.com Jon Clark
Executive Vice President, Chief Financial Officer (860)
286-2419 jclark@indusrt.com
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