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 December 31, 2022:
Highlights
- Executed six leases totaling 543,000 square feet across the
Company’s portfolio and acquisition pipeline. The Company’s
acquisitions under contract in the Nashville and Charleston markets
are now 100.0% pre-leased.
- Completed the sale of the Company’s office/flex portfolio for a
sale price of $11.0 million.
- Entered into an agreement to purchase approximately 75 acres of
fully entitled land in the Orlando, Florida market which can
support the construction of three buildings totaling approximately
575,000 square feet, for a purchase price of $18.0 million.
- Entered into an agreement to sell approximately 11.5 acres of
undeveloped land in Windsor, Connecticut for $1.8 million.
- Announced a quarterly cash dividend of $0.18 per share of
common stock for the fourth quarter of 2022 which represents a
12.5% increase over the prior quarter.
- As of December 31, 2022, the stabilized1 portfolio was 98.8%
leased and the total in-service portfolio was 97.2% leased.
Leasing Activity
During the 2022 fourth quarter, INDUS executed six leases
totaling 543,000 square feet across its portfolio and acquisition
pipeline:
- 127,000 square foot lease extension in the Hartford,
Connecticut market that is expected to commence in 2024. This early
extension is for an additional two years at a starting cash rent
that is 15.9% above the recently executed renewal rate.
- 48,000 square feet across two first generation leases at the
Company’s recently delivered two-building development project in
the Orlando, Florida market (“Landstar Logistics”). With the
addition of these leases, Landstar Logistics is now 49.3%
leased.
- 105,000 square feet across two first generation leases at the
Company’s planned acquisition in the Nashville, Tennessee market,
bringing the project to 100.0% pre-leased prior to closing.
- 263,000 square foot first generation lease at the Company’s
planned acquisition in the Charleston, South Carolina market,
bringing the building to 100.0% pre-leased prior to closing.
As of December 31, 2022, INDUS’ 42 buildings aggregated 6.1
million square feet. INDUS’ portfolio percentage leased and
percentage leased of stabilized properties were as follows:
Dec. 31, 2022
Sept. 30, 2022
June 30, 2022
Mar. 31, 2022
Percentage Leased
97.2%
97.6%
99.4%
100.0%
Percentage Leased – Stabilized
Properties
98.8%
100.0%
100.0%
100.0%
Acquisition Pipeline
The following is a summary of INDUS’ pipeline of acquisitions
under contract as of December 31, 2022:
Market
Building Count
Building Size (SF)
Type
Purchase Price (in
millions)
Expected Closing
Charleston
1
263,000
Forward (100% pre-leased)
$28.0
Q1 2023
Nashville2
2
184,000
Forward (100% pre-leased)
$28.4
Q2 2023
Greenville- partanburg
1
280,000
Forward
$28.5
Q2 2023
Charlotte
1
231,000
Forward
$21.2
Q3 2023
Total Acquisition Pipeline
5
958,000
$106.1
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
The following is a summary of INDUS’ development pipeline as of
December 31, 2022:
Project
Market
Building Size (SF)
Type
Estimated Total Budget (in
millions)
Expected Delivery
American Parkway (one building)
Lehigh Valley
206,000
Speculative
$28.1
Q3 2023
Additionally, the following is a summary of INDUS’ land for
future expected development that is owned or under contract as of
December 31, 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
Orlando Land (three buildings)
Orlando
575,000
75
$18.0
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, or
at all.
Corporate Updates
During the 2022 fourth quarter, the Company completed the sale
of its office/flex portfolio, including a small storage building
used in the operations of the portfolio (the “Office/Flex
Portfolio”), for a sale price of $11.0 million. The Office/Flex
Portfolio was comprised of eight buildings totaling 193,000 square
feet located in Bloomfield, Connecticut. With the disposition of
the Office/Flex Portfolio, INDUS is now a pure-play
industrial/logistics real estate business with a modern portfolio
located in select high-growth markets.
Additionally, INDUS entered into an agreement to sell
approximately 11.5 acres in Windsor, Connecticut (“825 Prospect
Hill”) for $1.8 million. Including 825 Prospect Hill, the Company
has several agreements in place to sell undeveloped land parcels in
Connecticut for total proceeds of approximately $26.7 million.
These land sales, which are anticipated to close over the course of
2023, are subject to a number of contingencies including the
completion of due diligence and/or receipt of regulatory approvals
by the purchasers. There can be no guarantee that these
transactions will be completed under their current terms,
anticipated timelines, or at all.
In November, the Company completed the second draw totaling
$30.0 million under its Delayed Draw Term Loan facility (the
“DDTL”). As of December 31, 2022, the Company has drawn $90.0
million under the $150.0 million DDTL facility. The Company expects
to draw the remaining $60.0 million available by the end of April
2023.
During the 2022 fourth quarter, INDUS announced that its Board
of Directors declared a cash dividend of $0.18 per share of common
stock, which will be payable on January 17, 2023 to stockholders of
record on December 30, 2022.
As previously disclosed, on November 27, 2022 the Company
received an unsolicited, non-binding proposal for an acquisition of
the Company’s outstanding common stock. The Company’s Board of
Directors is actively evaluating the best path forward for the
Company to maximize shareholder value. The Company undertakes no
duty to provide updates as to the Company’s evaluation process.
About INDUS
INDUS is a real estate business principally engaged in
developing, acquiring, managing and leasing industrial/logistics
properties. INDUS owns 42 buildings totaling 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 and dispositions under agreements, pre-leasing
agreements, construction and development plans and timelines, the
expected total development and stabilization costs of developments
in INDUS’ pipeline and the non-binding proposal to acquire the
Company and the Company’s related evaluation. 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 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. 2 In December 2022, INDUS and the seller of the
two-building Nashville forward portfolio executed an amendment to
the Purchase and Sale Agreement which lowered the purchase price on
the portfolio from $31.5 million to $28.4 million.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230109005901/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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