Plymouth Industrial REIT - Earnings Call - Q4 2024

Executive Summary

• Q4 2024 was operationally stable with Core FFO of $0.46 per share and AFFO of $0.40, supported by stronger blended leasing spreads (19.4%) but offset by deconsolidation of the Chicago JV and transitory Cleveland vacancy; GAAP EPS was $3.24 driven by the $136.8M gain on the Chicago JV contribution.
• Same-store NOI on a cash basis decreased 0.5% YoY in Q4 (ex-early termination), though excluding the deconsolidated Chicago portfolio it rose 1.1% YoY; portfolio occupancy ended Q4 at 92.5% and same-store at 95.2%.
• Balance sheet/liquidity improved with a $600M amended unsecured facility (revolver upsized to $500M, new $100M term loan) and a new $90M share repurchase authorization; net debt/Adjusted EBITDA ended 2024 at 5.4x, down for the eighth straight quarter.
• 2025 guidance initiates Core FFO of $1.85–$1.89, 6.0–6.5% same-store NOI (cash) growth, and $270–$450M of acquisitions at ~6.75% initial yields; management highlighted a >$1B acquisition pipeline and continued leasing progress in St. Louis and Cleveland as key stock catalysts.
• Street estimate comparison was not available at the time of writing due to S&P Global data access limits; no beat/miss assessment provided (see Estimates Context).

What Went Well and What Went Wrong

• What Went Well

  • Strong organic rent mark-to-market: Q4 blended cash leasing spreads +19.4% (renewals +12.6%, new +30.2%); FY24 blended +17.1%.
  • Strategic recapitalization and liquidity: closed the Sixth Street JV (34 Chicago properties) at ~$356.6M (6.2% cap rate) and upsized/extended unsecured credit facility to support growth; net debt/Adj. EBITDA at 5.4x YE24.
  • Management confidence on growth positioning and Golden Triangle footprint: “we believe Plymouth is well‑positioned to take advantage of market opportunities in 2025” – CEO Jeff Witherell.

• What Went Wrong

  • Same-store softness in Q4: cash SS NOI declined 0.5% YoY (ex-early termination), reflecting “transitory vacancy within two of our Cleveland buildings” and portfolio deconsolidation effects.
  • Occupancy pressure: total portfolio occupancy fell to 92.5% exiting Q4 (down from 94.2% in Q3 and 97.0% in Q2), with a 110 bps headwind from Cleveland and 70 bps from net leasing in Q4.
  • AFFO compression: Q4 AFFO per share fell to $0.40 (from $0.48 in Q4 2023), reflecting higher recurring capex tied to leasing and the net impact of the JV.

Transcript

Operator (participant)

Good morning and welcome to the Plymouth Industrial REIT conference call to review the company's results for the fourth quarter of 2024. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to John Willfong of Investor Relations. Please go ahead.

John Callan (Head of Investor Relations)

Thank you. Good morning. Welcome to the Plymouth Industrial REIT conference call to review the company's results for the fourth quarter of 2024. Yesterday afternoon, we issued our earnings release and posted a copy of our prepared commentary and a supplemental deck on the quarterly results section of our Investor Relations page. In addition to these earnings documents, a copy of our 10-K, when filed, can be found on the SEC filings page of the IR site. Our supplemental deck includes our full year 2025 guidance, assumptions, detailed information on our operations, portfolio and balance sheet, and definitions of non-GAAP measures and reconciliations to the most comparable GAAP measures. We will reference this information in our remarks. With me today is Jeff Witherell, Chairman and Chief Executive Officer, Anthony Saladino, President and Chief Financial Officer, Jim Connolly, Executive Vice President of Asset Management, and Anne Hayward, General Counsel.

I would like to point out to everyone to our forward-looking statements on page one of our supplemental presentation and encourage you to read them carefully. They apply to statements made in this call, our press release, our prepared commentary, and in our supplemental financial information. And now I'd like to turn the call over to Jeff.

Jeffrey Witherell (Chairman and CEO)

Thanks, John. Good morning and thank you for joining us today. I'll hit a few highlights first and then we'll go to Q&A. We've made some big announcements this past few months relating to securing capital that can propel our accretive growth. In late August, we announced the strategic transaction with Sixth Street. I view this as transformative for us in several respects. Most notably, we put a valuation marker on our largest portfolio with the Chicago RECAP JV and sourced capital for up to $500 million in acquisitions. We secured a tremendous partner in Sixth Street, who has continued to build out their real estate platform. We also significantly enhanced our borrowing capacity with the refinancing and upsizing of our unsecured credit facilities to $1.5 billion.

With this increase in the revolver and recasting one of the term loans, we've extended our maturities and enhanced the ability to pursue other unsecured debt. The combination of Sixth Street's investment and expanded borrowing capacity fully addresses our current capital needs. Our focus for 2025 will be on leasing, opportunities, and capital deployment, both of which will be key themes in the coming quarters. Our earnings release and prepared commentary also discussed leasing and deployment, as well as some tenant challenges we faced in the prior quarter that we didn't anticipate. However, we are confident in our ability to navigate these challenges and lease the remaining spaces. Market conditions remain favorable, particularly in buildings under 250,000 sq ft, where over 95% of our leases and 67% of our wholly-owned portfolio's rentable square footage is concentrated.

As we address our remaining lease expirations, we expect a tightening supply in this segment to support our mark-to-market leasing efforts. Historically, we've maintained high occupancy across our portfolio, and we anticipate strong momentum as we take care of the balance of 2025 expirations. We've also made solid progress on capital deployment. The Cincinnati acquisitions totaled approximately 762,000 sq ft for $61.3 million, and we continue to unlock value through recycling and value-added activities in our newly acquired Memphis portfolio. Our pipeline now exceeds 11 million sq ft and $1 billion in potential acquisitions, with nearly all of these opportunities located in our existing markets. We know these markets well, and with the capital now in place, we are strategically positioned to expand our scale. I look forward to providing further updates in the coming months as we execute on our leasing and capital deployment strategies.

I would now like to turn it over to the operator for questions.

Operator (participant)

Thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. At this time, we will pause momentarily to assemble our roster. The first question is from Eric Borden from BMO Capital Markets. Please go ahead.

Eric Borden (Analyst)

Hey, good morning, everyone. Jeff, just on the last comment around the $1 billion of potential acquisitions, it sounds like, based on your guidance, up to about half of that could be on balance sheet. Could you talk about the other $500 million or so, whether that would be a potential balance sheet acquisition or would that be under the JV?

Jeffrey Witherell (Chairman and CEO)

Hey, Eric, thanks for the question. I mean, that's just our total pipeline, right? So are we going to be able to execute all billion dollars? Probably not. I mean, we're focused on balance sheet. I will say that there's a $150 million portfolio within that billion dollars that would most likely be JV material. So we're working it. We're in the bid process on it right now. We'll see how that develops. But the majority is on balance sheet. The majority of it is in two or three of our top markets.

Eric Borden (Analyst)

Okay, that's helpful. And then with the acquisitions in guidance, how are you thinking about the timing of acquisitions and the initial cap rates on those?

Jeffrey Witherell (Chairman and CEO)

At the midpoint, Eric, we assume $360 million of acquisitions, of which about $70 million is already banked, with the remainder to be deployed somewhat evenly over the coming quarters. In terms of a going in yield, I would strike that at about 6.75%. It could tighten up a bit as we continue to navigate the bid process. But I think those are good parameters in terms of how to view deployment and initial yields.

Eric Borden (Analyst)

Appreciate that. And then one more, if I may, just on the guidance bridge on page 10 of the prepared remarks. I appreciate all the detail colored there, but I was just hoping that you could talk about the puts and takes to get to the low end of your guidance and to reach the high end of your guidance.

Jeffrey Witherell (Chairman and CEO)

Listen, at the midpoint, we have reset the same store portfolio. It's now 168 buildings, encompassing about 26 million sq ft, which now represents, I think, 89% of the total in-place portfolio as of February. So if we think about the same store driver, we do have to look back to Q4 2024 occupancy, which I believe stood at about 92% for this particular subset of the portfolio. So at the midpoint, we're assuming about 380 basis points of occupancy improvement, which equates to a lease-up of just over a million sq ft. And a lot of that is comprised of the three buildings that we've been talking a lot about, the two in Cleveland and the one in St. Louis.

And so if you think beyond the midpoint, to the extent that we have accelerated deployment or some surprises to the upside on some of the transitory vacancy, we can realize a result better than midpoint to the extent that we don't deploy as anticipated. There could be a little drag. And then to the extent that some of the leasing is a bit more protracted, you'll have a bit of a muting with respect to the outcome.

Eric Borden (Analyst)

All right. Well, thank you very much. I'll leave it there.

Jeffrey Witherell (Chairman and CEO)

Thanks.

Operator (participant)

And the next question is from Todd Thomas from KeyBank Capital Markets. Please go ahead.

Todd Thomas (Analyst)

Hi, thanks. Good morning. I just wanted to follow up on that a little bit as it pertains to sort of the guidance and some of the leasing. And I wanted to ask about the timing specifically of the 740,000 sq ft of leases signed, which includes 600,000 of the former FedEx Logistics site in St. Louis. So that's $0.07 per share impact on the full year FFO. What's the timing like for that? What's commenced versus what is still to commence going forward? And can you talk a little bit about the leasing environment as it pertains to the remaining vacancies and whether there is any speculative leasing for vacant space included in the guidance?

John Callan (Head of Investor Relations)

Yeah. All of that carryover vacant space that has been leased up is all commenced already. So all 700,000 is already commenced. As far as our projections on leasing, we are focused on the vacancy that came in through the year. You'll see that vacancy has gone up from 92.5. I mean, occupancy has gone up from 92.5 up to 94.3 already this year, which shows the space has been leased. We do have a lot of prospects for our existing vacancy. There's been a big pickup in leasing activity towards the end of January and through February. So we expect, including big lease, big bulk leasing space as well.

Todd Thomas (Analyst)

Okay. Is there any additional or any speculative leasing for vacant space included in the guidance at the high end of the range?

Jeffrey Witherell (Chairman and CEO)

Yeah. So of the one million that I just spoke of, to Jim's point, call about 700,000 is already addressed. So there's the balance of that that is speculative.

Todd Thomas (Analyst)

Okay. And then can you provide a little bit more detail on the remaining 25 expirations? Appreciate some of the notes around that, including the other big box, the 625,000 in St. Louis. Sounds like you expect that tenant to renew, but can you provide a little bit more detail there and also discuss the Columbus downsize or vacate that you noted, the timeline and sort of what's embedded around those assumptions within the guidance?

John Callan (Head of Investor Relations)

Sure. A little bit of an overall market analysis for us. So basically, in our markets, as shown in our prepared comments, rental growth rate is normalizing between 3%-4%. But we still expect to see mid- to low-20% growth on rent spreads on our small- to mid-sized space, anything under 150,000 sq ft. And on the larger spaces, we're kind of getting tenants looking to take space as is to keep the rents down, and so no TI. But so from a net effective rent point, they're still pretty high. Now, in St. Louis, that lease, it's fairly short-term, but the tenant has expressed interest in expanding in the rest of the space and continuing that lease on afterwards, as well as exploring vacancy in our other locations as well. In Columbus, the ODW is planning on leaving.

They have expressed some interest in potentially staying on under a contract extension and part of the building. We have two prospects that would fill the entire building that we're working with at the moment, and it would be immediately after ODW left, so we could see little to minimal downtime.

Todd Thomas (Analyst)

Okay. All right. Thank you.

Jeffrey Witherell (Chairman and CEO)

Thanks, Todd.

Operator (participant)

The next question will be from Rich Anderson from Wedbush. Please go ahead.

Richard Anderson (Managing Director and Senior Equity Research Analyst)

All right. Thanks. Good morning. So on the St. Louis lease, I guess I want to understand why you're optimistic if it's going from 600,000 sq ft to 450 the following year. I'm wondering why the tenant has sort of got a funny cadence to it in terms of the space it's taking, even though you have a feeling that it's going to sort of commit longer term. Can you kind of give the backstory there a little bit on that transaction?

John Callan (Head of Investor Relations)

Yeah. So that space, the current configuration of that lease is based off of one contract. This is a large international distributor, headquartered in Europe. And they told us as soon as they signed the lease that we usually stay on. We plan on finding additional contracts and moving them into this building. The feedback so far from the tenant has been that they really like the building, and they're looking for more space to come in.

Richard Anderson (Managing Director and Senior Equity Research Analyst)

Okay. Turning to Cleveland, I don't know if you said this, I apologize, but what's the expectation to putting those situations to bed? And if you can give also the backstory, because I thought a quarter or two or a quarter ago, you kind of thought it would be a faster turnaround than it's turning out to be. Can you sort of give me some color on that as well? Thanks.

John Callan (Head of Investor Relations)

Yeah. We had one potential candidate lined up to take one of the buildings right away, but that has just slowed down a little bit, but Cleveland is a very tight market. I mean, the vacancy rate is 3% or less, and there's really nothing in the market over 100,000 sq ft. So we feel really good about leasing this up. We've already leased up 120,000 of the vacancy, and we expect over the next couple of months to have deals inked on the balance.

Richard Anderson (Managing Director and Senior Equity Research Analyst)

Okay. And then lastly for me, I know the guidance has you at $360 million in terms of acquisitions midpoint. I'm trying to do the math, but would that sort of fully address the redeployment of the entire $500 million from the Sixth Street transaction, or would there still be more meat on the bone to address?

Jeffrey Witherell (Chairman and CEO)

Rich, it gets us close because remember, we deployed 100 when we acquired the Memphis portfolio in mid-year of 2024.

Richard Anderson (Managing Director and Senior Equity Research Analyst)

Okay. Sounds good. Thanks very much.

Jeffrey Witherell (Chairman and CEO)

Thanks, Rich.

Operator (participant)

The next question is from Nick Thelman from Baird. Please go ahead.

Nicholas Thillman (Analyst)

Hey, good morning, guys. Maybe just points of clarification. The 2.2 million sq ft of availability in the core portfolio, that includes the St. Louis and Cleveland. Around over half of that space is kind of spoken for or not spoken for, but in that bucket. And then, Anthony, if you could just elaborate on changes to the same store pool. It sounds like that St. Louis asset that was the former FedEx space is moving into the pool. Just wondering if ODW or Geodis, if any of those are moved in or out of the pool for 2025.

John Callan (Head of Investor Relations)

Right. So yeah, the additional space has been taken off. The space that has been leased up has taken off of the available pool. So just to note, at the end of the year, and this was unusual for us, there was only 71.4% of the 24 expirations were addressed, but that number's already up to over 80%. And if you include the transactions that occurred between the end of the year and February 24th, so we expect that to be 90s% in like a month or two.

Jeffrey Witherell (Chairman and CEO)

With respect to same store, Nick, the composition has changed, as we said and provided for in the materials. To your point, FedEx is in the same store pool, as is Geodis. ODW is not. And the other kind of key driver in that pool is the reintroduction of the Lattie building. It's a 142,000 sq ft building in St. Louis that was previously in the repositioning pool. So that has come into the same store portfolio in 2025, and I believe that's contributing approximately 7 basis points to the year-over-year growth.

Nicholas Thillman (Analyst)

That's helpful. Maybe for Jeff, I mean, I guess, what do you think the disconnect is between your guys' view of the Sixth Street transaction and kind of the market's view? And as the board, you guys obviously announced the buyback, but I guess, how patient are you guys going to be if the stock continues to kind of linger at these levels? Are you going to pursue alternative strategies? Just kind of your views there.

Jeffrey Witherell (Chairman and CEO)

I mean, yeah, I mean, nobody likes complication. I think that's the biggest feedback we have. I think the biggest thing that we look at is our equity in 2023 and 2024. I mean, the street's telling us we're not going to give you any more equity because they're not pricing your stock correctly. So we did what we thought was in the best interest of shareholders, and that's a transformative transaction, plenty of capital. We can get into all the details on Chicago, which we've talked about ad nauseam of why that was a good move to take that entire 6 million sq ft and put it into a JV. I mean, we've been patient for seven years, Nick. I guess we look at where our stock price is versus where we believe the value, where our NAV is.

I think your NAV is around in the mid to high 20s. We're in the market every day bidding on our type property. Property in Columbus, we're bidding right now on a building across the street from our property. It's identical. There's 10 bidders on it, and I can tell you we're not going to be the winning bidder on it. If somebody's using a cap rate to value Plymouth and it's anything north of 6.75%, they're totally off the mark. We're getting outbid in all of our markets, 10, 11, 12 bids. What we need to do is we need to find a good property, the shorter walls, like we did in Cincinnati. We've got some deals that are teed up that are going to work out really well for Plymouth.

We have a lot of patience. And I think the Sixth Street deal is going to work out fantastic. I think everything's priced correctly for us. So we're going to get this money deployed. We did put a buyback in, as you mentioned. I'm glad you brought that up. We'll see how the stock performs over the next few months. But I think if you look at where our stock price is and what we can buy it back at, it's kind of a no-brainer for us to do that. But that's going to be based on whether we can put the capital to work in properties that we believe in. So right now, the pipeline looks good. So we feel good about that. But it's just another option for us.

Nicholas Thillman (Analyst)

That's helpful. Just last one. Anthony, with the new title, Jeff, you could speak to this as well. Is there any additional areas of focus you're kind of looking on as president or areas that are different than your current responsibilities as CFO?

Jeffrey Witherell (Chairman and CEO)

Oh, I'll speak to that. No, it's really just, I mean, Anthony's expertise, obviously, as CFO has proven out over the last couple of years. But beyond that, he's got a handle on acquisitions, processes that go into making the company better overall. So I think it's a great move for us, and it's a great move for him.

Nicholas Thillman (Analyst)

Helpful. That's it for me. Thanks, guys.

Jeffrey Witherell (Chairman and CEO)

Thank you.

Operator (participant)

The next question is from Mitch Germain from Citizens JMP. Please go ahead.

Mitch Germain (Analyst)

Thanks. Maybe, Jeff, since you were just mentioning the Sixth Street relationship, I'm curious, how engaged are they with you to grow their relationship with you guys?

Jeffrey Witherell (Chairman and CEO)

Hey, Mitch. Yeah. So across our platform, different levels are engaged with Sixth Street somewhat on a daily basis. I am engaged with their lead on this, and we talk regularly. So this is supposed to be transformative. It's going to take time. As you know, we've done several JVs that have worked out really well for Plymouth. And so I think we're pretty smart about that. And we are looking at some JVs with them. And I think that's probably the real basis of the relationship is the Sixth Street deal is the JV. They're very focused on us growing the REIT balance sheet because they're going to win on their warrant position, which is why we did the deal. So if the stock moves as they anticipate and we anticipate, they'll make some money, and we'll do well as well.

So outside of that, I can't speculate on it. They're a growing platform. They have announced some core money. $17 billion of core money just came into Sixth Street. So we're talking to them about industrial on a daily basis. And I think that's going to prove out really well for Plymouth shareholders long term.

Mitch Germain (Analyst)

Okay. That's super helpful. I'm curious about some of the pricing trends in the market today. I think you talked about how cap rate's 6.75% or maybe even lower. Obviously, Memphis was acquired, and one of the more recent deals were a little bit higher. So I mean, is it safe to say that we're seeing contraction across the board?

Jeffrey Witherell (Chairman and CEO)

I think that's correct. As we sit here today, we're still seeing negative leverage in the marketplace, which, again, baffles us. I've never been a negative leverage person. I don't know how that works. But we're seeing a lot of capital into industrial. We're starting to see it in our markets. That being said, and I said this before about the Memphis transaction, there were a lot of moving parts on Memphis. And there was a $100 million portfolio, 80-plus tenants. You have an office building that needed to be sold, a small one. We have a call center that our construction team is in the process of converting back to industrial as we speak. And then there's a vacant parcel of land that we can build 120,000 sq ft, let's say, on. So all of those are components that need people that know what they're doing.

We can do all that in-house, which is what we're doing. And we think that's going to add a lot of value to the Memphis portfolio. So that's why there weren't as many bidders. And that's why if you have an office in Memphis with people on the ground, you can attack a portfolio like that and get those changes accomplished very accretively. And I think that's why we were the winning bidder on it. So what I don't want people to take away is, hey, that Memphis is an eight-cap market because that's not the case. There's a special situation. And Cincinnati is the same thing. We have work to do in Cincinnati. We've got some small tenants. We're going to renew them. We'll move some of them out. We'll expand tenants. Again, we have an eight-person office in Ohio.

So for us to do that, it doesn't cost us much time and money to do it. We're equipped to do it. Others aren't. I think that's where you get into it. As I mentioned, in Columbus, there's a building with, it's a one-asset deal, three tenants, but there's ten bidders on it. The pricing's going to get out of whack on that. We have to continue to fight for deals, which are good for Plymouth, and we'll do it. It is, I don't think anybody's going to sit here and think that cap rates are going to continue to rise in the industrial space.

Mitch Germain (Analyst)

That's helpful.

Jeffrey Witherell (Chairman and CEO)

It's tough. But we've proven that we can buy, and we will continue to execute.

Mitch Germain (Analyst)

Thank you for that. One more for me, if I might. There's clearly situations on the leasing front that you guys have discussed. And it just seems, based on that commentary, that there's a preference to do more of these kind of strategic or value-enhancing, value-add type of investments. So talk about maybe, Jeff, if you can just talk about factoring in the weighing the existing situations versus doing more value-add. And do you guys have the capabilities to handle all of that all at once?

Jeffrey Witherell (Chairman and CEO)

Yeah. I mean, look, the acquisition, we didn't put a lot of information out on it yet, but we just closed on a deal in Cincinnati this year, kind of a single-asset deal, 260,000 sq ft. That doesn't need a lot of value-add component work to it. But the portfolio that we bought for $20 million and then the other balance of that's going to close here in the next couple of weeks, there's a lot of small tenants. And I said we will do the Plymouth work on that. So we're built for it. We should do more value-add. I mean, we're real estate people. We have been for 30 years, and we understand how to buy real estate correctly at the right basis. We're not afraid of shortfalls. I don't think we miss too many things when it comes to buying a piece of real estate.

So we should be doing more of it. You got to balance that with FFO, right? We're in the cash flow growth business as a public REIT. But as a real estate group, we should be buying more value-add. So that's the balance that we try to look at on each acquisition. So there's not an easy answer for it. We should be doing more value-add. That's how you create value in real estate. We've said 100 times we're not a net lease REIT. But I think a lot of times we're looked at as you've just got to smooth out your FFO. So there's a balance there.

Mitch Germain (Analyst)

Thank you.

Jeffrey Witherell (Chairman and CEO)

Thank you, Mitch.

Operator (participant)

The next question is from Brendan Lynch from Barclays. Please go ahead.

Brendan Lynch (Analyst)

Great. Thanks for taking my questions. Jeff, you mentioned that there's a lot of capital coming into your markets. Is that specifically for acquisitions, or are you also seeing an increase in development spending?

Jeffrey Witherell (Chairman and CEO)

No. We're seeing it mostly, Brendan, just in acquisitions and it's coming from all sides. Like I said, there'll be 10 bidders, and it's going to run the gamut of who those buyers are. I mean, there's still a lot of money out there. I think they would get into development. But I think that's where we're starting to see a lot of absorption. I mean, I think if you look at a market like Cleveland that we continue to focus on, there's, I think, about 1.2 million sq ft of product under construction, and 90% of it's leased. So I think we're at that point where someone's going to start to go into Cleveland and start to build spec because there's only 100,000 sq ft available of new product. Now, there's places like Dallas, and there's some parts of Columbus that are severely overbuilt.

I mean, if you look at Columbus, Class A is 17% vacancy, and obviously, by definition, a new 32-foot clear building would be designated Class A, but the balance outside of Class A, it's a 5.2% vacancy, so I don't think in Columbus you're going to be building any new product anytime soon, there's just a lot of vacancy, so I think it depends on the market, but I think there's a lot of capital, and I think once in certain markets, I think you start to see some spec development.

Brendan Lynch (Analyst)

That's helpful. Maybe also just talking high level, any impact that you're seeing from the tariffs or potential for tariffs and reshoring initiatives? Obviously, you have more Heartland exposure than a lot of your peers with more coastal exposure. Maybe anything that you're seeing in terms of your customer base and conversations you're having with them?

John Callan (Head of Investor Relations)

Yeah. As we got to tariffs, we're seeing a significant increase from various 3PL companies for bulk storage requirements, both short and midterm. Some of these that we have actively in negotiations. But it seems to be like a rush to get product into the country and in warehouses as soon as possible. So there's definitely built-up demand.

Brendan Lynch (Analyst)

Great. Thank you.

Jeffrey Witherell (Chairman and CEO)

Thank you.

Operator (participant)

Again, if you have a question, please press star, then one. The next question is from Mike Muller from J.P. Morgan. Please go ahead.

Michael Mueller (Analyst)

Yeah. Hi. Apologize if I missed this. But what is the, I guess, Columbus rent on the two new prospects compared to the move-out rent? And what's the timing during the year on that?

John Callan (Head of Investor Relations)

We're talking the move-out is at the end of June. And the timing on the leases would be July or August. And then the other one would be between July and probably September. The actual rents, because we're subdividing the building, they may go to a gross lease versus a triple-net lease. But the net effective rent would be slightly higher.

Michael Mueller (Analyst)

Okay. And then last question. When you're looking at the 26 expirations, are there any similar chunky known move-outs at this point?

John Callan (Head of Investor Relations)

No. 26 seems fine. There's no objections from move-outs at this point.

Michael Mueller (Analyst)

Okay. Thank you.

Jeffrey Witherell (Chairman and CEO)

Thanks.

Operator (participant)

Ladies and gentlemen, this concludes our question-and-answer session and thus concludes today's call. We thank you very much for attending today's presentation. At this time, you may disconnect your lines. Take care.