INDUS Realty Trust, Inc.
Q4 2020 Earnings Call Transcript
Published:
- Operator:
- Good morning, and welcome to INDUS Realty Trust Fourth Quarter and Fiscal 2020 Earnings Webcast. It's now my pleasure to turn the program over to Ashley Pizzo, Director Investor Relations and Capital Markets at INDUS.
- Ashley Pizzo:
- Thank you, and good morning, everyone. Welcome to our fourth quarter 2020 earnings webcast. In addition to regularly available earnings materials, INDUS has also published a supplemental presentation this quarter, which is available on our website at indusrt.com, under the Investors tab. I would also like to mention that this conference call will contain forward-looking statements under federal securities laws, including the Securities Act of 1933, the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about the market and the industry in which INDUS operates as well as management's beliefs and assumptions.
- Michael Gamzon:
- Thank you, Ashley. Good morning, and thank you all for your continued interest in our company. We recently completed a series of exciting changes, including a corporate rebranding from Griffin Industrial Realty to INDUS Realty Trust and associated ticker symbol change to INDT, and our election to be taxed as a REIT starting this calendar year. I'll touch on some of these later, but before going into more details, I wanted first to thank the team at INDUS, whose efforts have been instrumental in our success over what has been a challenging and demanding year. We host this call nearly 1 year into the COVID-19 pandemic in the United States, and it is not lost on us that there still are many months left to weather. We hope that you and your families remain safe and well, and we will continue our commitment to the safety of our tenants, colleagues and stakeholders. We are fortunate to operate in a sector that has remained resilient thus far, and we have continued to experience strong occupancy and rent collection from our industrial tenants to close out the year. I'll keep the comments on COVID-related rent collection brief on this call, as we have not had any material updates since our last reporting period. To reiterate our previous announcements, we have signed agreements with only 2 tenants seeking rent relief. One was with a small 20,000 square foot tenant in Hartford, Connecticut, who is meeting its deferral obligations. The other agreement was with a subsidiary of a Fortune-500 company, who completed an early 5-year renewal under what you granted 4 months of rent at 50% in lieu of any other incentives we would have otherwise provided as part of a 5-year renewal with strong credit. Combined, these deferrals only accounted for 0.4% of fiscal 2020 revenue. As we move on to highlights from the fourth quarter and the year, I'll initially focus on our development activities.
- Anthony Galici:
- Thanks, Michael. Before I get into the fourth quarter results, I want to take a moment to remind you that along with electing REIT status in 2021, we changed our fiscal year-end from November 30 to December 31. This leaves us with a 1-month stub period in December 2020 for the transition between our 2020 fiscal year-end on November 30, 2020, and the beginning of our new calendar fiscal year, which began on January 1, 2021. The results of the 1-month stub transition period are expected to be reported no later than our quarterly report on Form 10-Q to be filed for the first quarter ending March 31, 2021, for our new fiscal year. An additional change to our disclosures that I will note is that we have renamed leasing NOI and cash leasing NOI to simply NOI and cash NOI beginning this period. This is in part due to a change in how we report asset sales. Historically, we included these revenues and related costs as individual revenue and expense line items in our income statement. Beginning with these year-end statements, we now show asset sales net, as a single item in other income and expenses. I will now provide a bit more detail on our fourth quarter financial results. Our industrial logistics portfolio was 94.3% leased at the end of the fourth quarter, unchanged from the third quarter. In terms of leasing activity in the industrial logistics portfolio this past quarter, we signed 5 renewals and 1 new lease, totaling approximately 498,000 square feet with positive leasing spreads on both a straight-line and cash basis at 13.3% and 0.5%, respectively.
- Ashley Pizzo:
- Thank you, Anthony. For our listeners, we appreciate your time and interest in INDUS Realty Trust. This concludes our fourth quarter and fiscal 2020 earnings call. But as always, we are available for follow-up questions via phone or e-mail at the contact information listed on our website, www.indusrt.com.
- End of Q&A: