Executive Summary

Q3 2025 delivered steady operating performance with FFO/share of $0.76 (vs. $0.68 a year ago) and GAAP EPS of $0.49 (vs. $0.75 YoY), aided by ~$0.01 from an insurance claim; total revenues were $181.4M (vs. $167.6M YoY) .
The company raised 2025 NAREIT FFO guidance by $0.04 at the midpoint to $2.94–$2.98, on development leasing progress, lower interest expense and the insurance recovery; FY25 SS NOI guidance increased to 7.0%–7.5% (from 6.0%–7.0%) .
Cash SS NOI growth was 6.1% (5.4% ex-insurance) and in‑service occupancy ended at 94.0% (down 20 bps QoQ); cash rent change on commenced leasing was +26.5% in the quarter; signed-to-date 2025 rollovers show +32% cash rent change (37% ex a 1.3 msf fixed-rate renewal) .
Versus S&P Global consensus, Q3 GAAP EPS and FFO/share were above while revenue was modestly below: EPS $0.49 vs. $0.42*, FFO/share $0.76 vs. $0.745*, revenue $181.4M vs. $182.6M*; guidance raise and development leasing wins are the likely stock catalysts near-term . Values with asterisks were retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well
- Strong pricing power: Q3 cash rent change on commenced leasing +26.5% (straight-line +40.6%); 2025 signed-to-date +32% cash (37% ex 1.3 msf fixed renewal); early 2026 signed-to-date +31% cash .
- Development leasing momentum: 501k sf at Camelback 303 (Phoenix) and 56k sf at First Park Miami Bldg 3 leased in Q3; Q4-to-date 159k sf leased at First Harley Knox (Inland Empire) and 57k sf at First Park Miami Bldg 12 .
- Guidance raised: FY25 FFO midpoint +$0.04 to $2.96, with management citing development leasing, lower interest expense and insurance recovery; FY25 cash SS NOI growth raised to 7.0%–7.5% .
- Quote: “Leasing is the lifeblood of our growth and value creation… recent development leases… contributed to the $0.04… increase in the midpoint of our 2025 FFO guidance” .
What Went Wrong
- Occupancy edged lower: In‑service occupancy fell to 94.0% from 94.2% in Q2 and 95.0% a year ago, weighing on SS NOI alongside higher free rent .
- GAAP EPS down YoY: $0.49 vs. $0.75 YoY as prior year benefited from larger gains on sale; Q3 gain on sale was $9.5M vs. $56.8M in Q3’24 .
- Tenant credit watch: One 3PL added to the watch list; rent being collected from a subtenant while resolution is pursued; bad debt expense was $0.245M in Q3, ~$0.75M YTD .

Financial Results

Quarterly Trend (Actuals)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$177.1	$180.2	$181.4
GAAP Diluted EPS ($)	$0.36	$0.42	$0.49
FFO/Share (NAREIT, Diluted) ($)	$0.68	$0.76	$0.76
Adjusted EBITDA ($USD Millions)	$113.7	$126.3	$127.2
Adjusted EBITDA Margin (%)	64.2%	70.1%	70.1%

Notes: EBITDA margin is Adjusted EBITDA divided by total revenues using figures cited above .

Q3 2025: Actual vs Consensus (S&P Global)

Metric	Actual	Consensus*	Surprise
Revenue ($USD Millions)	$181.4	$182.6*	Miss (−$1.2)
GAAP EPS ($)	$0.49	$0.42*	Beat (+$0.07)
FFO/Share (NAREIT, Diluted) ($)	$0.76	$0.745*	Beat (+$0.015)

Values with asterisks were retrieved from S&P Global.

KPIs and Operating Metrics

KPI	Q1 2025	Q2 2025	Q3 2025
In‑Service Occupancy (%)	95.3%	94.2%	94.0%
Cash SS NOI Growth (%)*	10.1%	8.7%	6.1% (5.4% ex‑insurance)
Cash Rent Change on Commenced Leasing (Quarter)	+41.7%	+28.0%	+26.5%
2025 Rollovers Signed‑to‑Date (Cash)	+30%	+33%	+32% (37% ex fixed)
2026 Rollovers Signed‑to‑Date (Cash)	n/a	n/a	+31% (31% of rollovers)
Lease Commencements in Quarter (msf)	n/a	n/a	~2.2 (0.4 new / 0.9 renewals / 0.8 dev & acq)

*SS NOI growth in Q3 includes ~$0.862M insurance claim recovery; ex‑insurance 5.4% .

Segment breakdown: Not applicable (single industrial platform; no reportable revenue segments disclosed in releases) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
NAREIT FFO/Share ($)	FY 2025	$2.88–$2.96	$2.94–$2.98	Raised
Avg Quarter‑End In‑Service Occupancy (%)	FY 2025	95.0%–96.0%	94.4%–94.9%	Lowered
In‑Service Occupancy (%)	4Q 2025 YE	n/a	94.0%–96.0%	New
Cash SS NOI Growth (%)	FY 2025	6.0%–7.0%	7.0%–7.5%	Raised
G&A Expense ($M)	FY 2025	40.5–41.5	40.5–41.5	Maintained
Capitalized Interest (per share)	FY 2025	~$0.09	~$0.09	Maintained
In‑Service Dev Lease‑Up (sf)	12/31/2025	n/a	0.3M (assumed)	New
Common Dividend ($/sh)	Q4 2025	n/a	$0.445 declared, payable 1/20/26	Info

Additional capital markets update: Forward-starting swaps to fix term loans at ~4.13% (on $150M of $300M, effective 12/1/25) and ~4.10% (on $200M, effective 2/2/26), assuming current credit spread .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3 2025)	Trend
Tariffs/Macro and Tenant Decision-Making	Management “looks forward to further clarity on tariffs” to support growth/demand .	Tenant touring up; decisions remain deliberate due to tariff uncertainty; stabilization signs in vacancies; CBRE expects 2025 leasing near record (900 msf) .	Improving demand; decisions still cautious.
Rent Spreads (Cash)	1Q: +41.7%; 2Q: +28.0%; 2025 signed-to-date +30%→+33% .	3Q: +26.5%; 2025 signed-to-date +32% (37% ex fixed); 2026 signed-to-date +31% .	High, consistent pricing power sustained.
Occupancy	1Q: 95.3%; 2Q: 94.2% .	3Q: 94.0%, down 20 bps QoQ .	Slightly declining, stabilizing backdrop.
Development Leasing	2Q: 58k sf leased in Orlando; starts in Dallas/Philadelphia .	Major wins at Camelback 303 (501k) and Miami; Q4-to-date Inland Empire 159k and Miami 57k .	Momentum building into Q4.
Capital Markets	2Q: Fitch upgrade to BBB+ and $450M 5.25% 2031 notes issued .	Term loan swaps to fix ~4.1% rates as prior swaps roll off .	Proactive rate risk management.
Credit/3PL Exposure	Not highlighted previously.	One 3PL added to watch list; collecting rent from subtenant; 3PL demand robust but FR cautious on credit .	Monitoring credit; selective approach.
Lease Escalators	Not specified previously.	Escalators ~3.6% in 2024/2025; 2026 so far also ~3.6% despite pushback .	Durable escalator performance.

Management Commentary

“Our team delivered another solid quarter, highlighted by some key development leasing wins and strong rental rate growth… We have seen increased tenant traffic… as prospective tenants… await additional clarity on tariffs” — Peter E. Baccile, CEO .
“We increased our 2025 NAREIT FFO midpoint by $0.04… primarily due to the development leasing successes, lower interest expense, and… insurance claim recovery” — Scott Musil, CFO .
“Vacancy in Tier 1 U.S. markets was 6.3% at the end of the third quarter… a potential sign that fundamentals nationally are stabilizing” — CEO .
“Build-to-suits… yield spreads ~50–60 bps vs market cap rates; spec yields closer to ~100–125 bps” — CEO on development mix/returns .
“We’re seeing a flight to quality… movement to quality favors us because we’ve built now so much of what we own” — CEO .

Q&A Highlights

Guidance mechanics: Development leasing assumed at 12/31 has no impact on midpoint; upside/downside tied to additional dev lease-up or unexpected credit events .
Development lease-up timing reset: Of the 2.2 msf referenced previously, 0.2 msf signed; 0.3 msf assumed for 12/31; ~1.7 msf pushed into 2026; more detail expected on 4Q call .
Lease escalators: ~3.6% in 2024 and 2025 (including the big fixed-rate renewal) and running ~3.6% so far on 2026 signings despite tenant pushback .
Credit watch list: One 3PL added; company in discussions for subtenant to potentially go direct; bad debt guidance for 4Q ~$0.25M; YTD ~$0.75M .
Transaction and cap rates: Competitive for leased assets; cap rates low-to-mid 5s, sub-5% in select high-growth markets; starts declining across most markets .

Estimates Context

Q3 2025 results vs S&P Global consensus: GAAP EPS $0.49 vs $0.42*, FFO/share $0.76 vs $0.745*, revenue $181.4M vs $182.6M* — EPS and FFO beats; slight revenue miss .
Implications: EPS/FFO beats reflect stronger margin/lease timing and the ~$0.01 insurance benefit; modest top-line miss is unlikely to alter narrative given rent spread strength and guidance raise; FY25 SS NOI uplift and dev leasing progress may drive upward revisions to 4Q/FY25 property-level expectations. Values with asterisks were retrieved from S&P Global.

Key Takeaways for Investors

Pricing power remains robust: Cash rent changes of +26.5% in Q3 and +32% on 2025 rollovers signed-to-date (37% ex fixed) support 2025–2026 cash flow growth despite modest occupancy headwinds .
Guidance momentum: FY25 FFO midpoint raised to $2.96 and SS NOI growth to 7.0%–7.5%; year-end occupancy guide 94%–96% looks achievable given Q4-to-date leasing activity .
Development optionality: Lease-up progress at Camelback 303, Inland Empire, and Miami is a key driver; remaining ~1.7 msf of dev lease-up rephased into 2026 creates a visible growth bridge if executed .
Balance sheet and rates: Swaps lock in ~4.1%–4.13% on term loans as old hedges expire, dampening interest expense variability into 2026 .
Credit prudence: Selective posture toward higher-risk 3PL demand and active watch list management mitigate downside; bad debt tracking with guidance .
Near-term trading setup: The combination of FFO/EPS beats (vs consensus*), raised FY25 FFO/SS NOI guidance, and continued rent spread strength are supportive; investors will watch Q4/Q1 cadence of development lease conversions and occupancy trajectory . Values with asterisks were retrieved from S&P Global.