Total Revenues

+9% (from $162,272K in Q1 2024 to $177,074K in Q1 2025)

Total Revenues increased due to improved lease performance and tenant recoveries, continuing the trends from FY2024 where higher occupancy and rental rate improvements fueled revenue growth. This incremental growth builds on the previous period’s strong lease and property income results. " "

Net Income

-17% (from $70,498K in Q1 2024 to $52,884K in Q1 2025)

Net Income declined significantly, primarily due to a steep drop in the gain on sale of real estate (from $30,852K in Q1 2024 to $6,844K in Q1 2025), combined with increased general and administrative expenses (rising from $11,781K to $15,897K) and a noteworthy jump in income tax provision (from $1,179K to $5,900K). " "

Net Income Available to Common Stockholders

-30% (from $68,452K in Q1 2024 to $48,103K in Q1 2025)

The decline in Net Income Available to Common Stockholders mirrors the overall net income drop, driven by lower gains in real estate transactions and higher expense and tax levels. This continues the downward pressure seen in Q1 2025 relative to the higher previously reported profitability in Q1 2024. " "

Income from Operations (before JV income and taxes)

-21% (from $70,275K in Q1 2024 to $55,307K in Q1 2025)

Income from Operations diminished as the strong operating performance in Q1 2024—bolstered by robust lease revenues and gains on property sales—was offset in Q1 2025 by a dramatic reduction in real estate sale gains and rising operating expenditures, dampening overall operational profitability. " "

Total Liabilities

+7% (from $2,527,113K in Q1 2024 to $2,704,832K in Q1 2025)

Total Liabilities increased largely due to debt levels rising by $171,251K, contributing significantly to the overall 7% jump. While other liability categories may have also shifted, the marked increase in borrowings relative to the previous period was the primary factor driving the change. " "

NAREIT FFO Guidance

FY 2025

no prior guidance

$2.87 to $2.97 per share "

no prior guidance

Average Quarter-End In-Service Occupancy

FY 2025

no prior guidance

95% to 96% "

no prior guidance

Cash Same-Store NOI Growth

FY 2025

no prior guidance

6% to 7% "

no prior guidance

Interest Capitalization

FY 2025

no prior guidance

$0.09 per share "

no prior guidance

General and Administrative Expense

FY 2025

$40.5 million to $41.5 million "

$40.5 million to $41.5 million "

no change

Tenant Demand

Broad-based and robust. In Q4 2024, tenant demand was described as broad‐based with strong activity in the smaller and midsized segments. " " Q3 2024 noted “lumpy” but overall pent‐up demand despite macroeconomic uncertainty. " Q2 2024 emphasized consistent demand despite supply constraints. "

Continues to be robust. In Q1 2025, tenant demand remains broad‐based with smaller spaces re-leasing quickly despite some pauses in conversations due to tariff uncertainties. " "

Stable with minor caution. The consistent active demand persists, although tariff-related uncertainties introduce modest pauses in tenant decision-making.

Occupancy

Very high levels. Prior periods showed in-service occupancy around 95%–97% (Q4 2024 at 96.2% " , Q3 2024 guidance between 95% and 97% " , and Q2 2024 at 95.3% " ).

Steady performance. Q1 2025 reported in-service occupancy at 95.3% with forecasted average quarter-end occupancy between 95% and 96%. " "

Steady with slight adjustments. Occupancy levels remain robust, with minor decreases offset by anticipated development leasing improvements.

Retention

Very high retention. Q4 2024 reported a 77% retention rate " , Q3 2024 highlighted strong renewal leasing activity including significant rate increases " " , and Q2 2024 stressed high renewal rates, particularly in Southern California. " "

Maintained consistency. In Q1 2025, retention for 2025 is expected to be 70%–75%, matching historical averages. "

Consistent. Tenant retention remains solid with rates similar to past periods.

Development Leasing/Leasing Pipeline

Robust pipeline execution. Q4 2024 reported 1.6 million sq ft of development lease-up and multiple new projects across key markets. " " Q3 2024 showed strong leasing wins, acquisitions, and significant development deals. " " Q2 2024 highlighted notable speculative leasing and multiple new development projects. " "

Strong and strategic. Q1 2025 features continued robust development leasing with targets of 1.5 million sq ft in Q4 2025, new construction starts in Dallas and Philadelphia, and overall adaptability in project design. " " "

Sustained positive momentum. The leasing pipeline remains healthy with strategic investments and flexible development approaches despite external uncertainties.

Macroeconomic and External Uncertainties

Recurring concerns. Q4 2024 noted uncertainty due to tariffs with little observed tenant reaction. " Q3 2024 expanded the discussion to include geopolitical, election-related, and weather-related uncertainties. " " " Q2 2024 mentioned tariffs with discussion of nearshoring factors. " "

Persistent uncertainty. In Q1 2025, tariffs and geopolitical factors remain prominent, causing some pauses in tenant decision-making though most tenants continue moving forward. " " " "

Consistently cautious. External uncertainties continue to affect decision-making, maintaining a moderately bearish tone even as most fundamentals remain strong.

Regulatory and Market Trends

Addressed selectively. Q3 2024 discussed AB 98 benefits as a tailwind by limiting new industrial developments. " Q2 2024 mentioned nearshoring as a demand tailwind in key markets. " Q4 2024 focused on tariffs without specific discussions of AB 98 or nearshoring. "

Not mentioned. Q1 2025 did not include any discussion of AB 98 benefits or nearshoring effects.

De-emphasized. Previously addressed regulatory and market trends have now been absent from the conversation, suggesting a shift in emphasis in the current period.

Tenant Vacancies and Large Tenant Exits

Active management. Q4 2024 noted a significant exit of a 700,000 sq ft tenant in Central PA. " Q3 2024 detailed the Boohoo exit and active re-leasing of large spaces. " " Q2 2024 discussed vacancies with Federal Mogul’s upcoming exit. " "

Well managed. In Q1 2025, tenant vacancies are actively monitored—with improvements in occupancy and detailed tracking of rollover spaces—and large exits are expected to be minimal, with minor sensitivity analyses indicating limited impact. " " "

Stable and proactively managed. The company continues to manage vacancies and large exits effectively, minimizing any significant negative impact on performance.

Capital Structure and Debt Management

Strong and flexible. Q3 2024 emphasized a robust balance sheet with no maturities until 2026. " " Q2 2024 reinforced stability with no debt maturities until 2026. " Q4 2024 did not focus on this topic. "

Re-emerging emphasis. Q1 2025 provided detailed discussion on renewing and upsizing credit facilities and extending term loans, thus re-emphasizing proactive debt management. "

Re-focused. After a lower profile in Q4, capital structure has been re-emphasized in Q1 2025, highlighting renewed focus on debt maturity management and credit facility improvements.

Rising Rental Rate Increases

Exceptionally strong. Q4 2024 reported a 51% cash rental rate increase and robust increases for 2025 leases. " Q3 2024 mentioned similarly high increases (51% for 2024 expirations and 33% for 2025). " " Q2 2024 highlighted rate increases of 45% with upper guidance of 40%–52%. "

Continued growth. Q1 2025 reported overall cash rental rate increases around 30% (or 36% excluding a fixed-rate renewal) with guidance for 2025 expecting 30%–40% growth overall. "

Sustained strong upward momentum. Although the percentage increases in Q1 appear slightly lower than some past highs, the trend of robust, rising rental rates continues to underpin the company’s revenue growth prospects.

Declining Build-to-Suit Demand

Mixed signals. Q4 2024 indicated less active build-to-suit demand as tenants had ample existing inventory choices. " Q3 and Q2 2024 did not explicitly discuss this topic.

No decline observed. Q1 2025 did not mention declining build-to-suit demand; instead, executives reiterated openness and flexibility to pursue build-to-suit opportunities. "

Shift away from negative sentiment. While concerns about lower build-to-suit demand were noted in Q4 2024, the current period shifts the focus to a flexible and opportunistic approach, suggesting little to no decline in practical demand.

Land Price Pressures and Development Yield Challenges

Ongoing challenges. Q2 2024 and Q3 2024 discussed persistent high land prices even as rents fell, with bid-ask spreads and yield challenges (target yields varying from 5% to 7% or 8%). " " " " Q4 2024 noted construction cost trends and modest yield improvements in some areas. " "

Persisting pressures. Q1 2025 highlighted land price pressures with an example of a Philadelphia parcel doubling in value, alongside yield challenges with recent projects targeting 6%–7% and some Q2 2025 starts aiming for around 8%. " " " "

Continued pressure with strategic management. Land price pressures and yield challenges remain a key concern; however, the company is actively managing these issues through strategic acquisitions and carefully targeted developments to achieve risk-adjusted returns.

Leasing Execution Sensitivity Impacting FFO

Variable impact noted. Q2 2024 discussed that execution of 1.2 million sq ft of leasing could add about $0.10 per share to FFO, with broader sensitivity due to lease timing. " " " Q3 2024 indirectly referenced tenant-specific issues (e.g. Boohoo) affecting FFO by $0.01 per share. " Q4 2024 noted robust leasing execution positively influencing FFO growth. " "

Minor impact confirmed. Q1 2025 provided sensitivity analysis showing that if key leasing assumptions are missed, FFO could be impacted by roughly $0.02 per share. Despite this, management remains confident in achieving the low end of the FFO guidance. " "

Consistently acknowledged. FFO remains sensitive to leasing execution, but current measures and strong leasing activity have allowed potential shortfalls to be minimized, sustaining confidence in overall FFO guidance.