Item 7.01 Regulation FD Disclosure
On
Industrial/Logistics Leasing Activity
During the three months ended
Also during the 2021 fourth quarter, two full-building tenants totaling
approximately 256,000 square feet exercised their fixed renewal options for
leases expiring in 2022. The buildings were acquired in 2021 with in-place
leases that had near-term expirations. The buildings comprise approximately
128,000 square feet in
As of
Dec. 31, Sept. 30, June 30, Mar. 31, 2021 2021 2021 2021 Percentage Leased 98.4% 95.4% 95.3% 99.2%
Percentage Leased -
As of
Acquisition Pipeline
On
On
During the 2021 fourth quarter, INDUS entered into three separate agreements to
acquire, for a combined purchase price of
The first agreement is for an approximately 217,000 square foot, recently
constructed industrial/logistics building (the "Charlotte Acquisition") for a
? purchase price of
Acquisition has a short-term lease in-place and INDUS expects to close on the
purchase during the first quarter of 2022.
The second agreement is for a to-be-constructed, approximately 231,000 square
foot industrial/logistics building (the "Charlotte Forward Acquisition") which
is being developed on speculation by the seller. The Charlotte Forward
? Acquisition is expected to be delivered vacant upon completion in the first
quarter of 2023. The purchase price for the Charlotte Forward Acquisition is
approximately
acquire the land in 2022, and to fund portions of the building's development
during 2022 and into the first quarter of 2023.
The third agreement is for a to-be-constructed, approximately 263,000 square
foot industrial/logistics building in the
(the "Charleston Forward Acquisition") for a purchase price of
? before transaction costs. The Charleston Forward Acquisition is being developed
on speculation by the seller and the building is expected to be completed in
the 2022 fourth quarter, at which time INDUS expects to complete the
acquisition.
Also during the 2021 fourth quarter, a full building pre-lease was executed for one of the two buildings that comprise the Nashville Acquisition (see below). This lease totals approximately 79,000 square feet and is expected to commence in the 2022 second quarter.
The following is a summary of INDUS's acquisition pipeline for its
industrial/logistics portfolio as of
Building Size Purchase Price Expected Acquisition Market (SF) Type (in millions) Closing Acquisitions Under Contract Nashville Acquisition (two Nashville, TN 184,000 Forward$31.5 Q1 2022 buildings) Charlotte Acquisition (one Charlotte, NC 217,000 Value-Add$23.6 Q1 2022 building) Charleston Forward Acquisition Charleston, SC 263,000 Forward$28.0 Q4 2022 (one building) Charlotte Forward Acquisition Charlotte, NC 231,000 Forward$21.2 Q1 2023 (one building) Total Acquisition Pipeline Under Contract 895,000$104.3
The acquisitions in INDUS's pipeline are each subject to the satisfactory completion of due diligence and other contingencies. There can be no guarantee that these transactions will be completed under their current terms, anticipated timelines, or at all.
Development Pipeline
On
On
On
The following is a summary of INDUS's development pipeline for its
industrial/logistics portfolio as of
Building Expected Name Market Size (SF) Type Delivery Owned Land Chapmans Road (one building) Lehigh Valley, PA 103,000 66% Pre-leased Q2 2022 110 Tradeport Drive (one Hartford, CT 234,000 67% Pre-leased Q3 2022 building) Landstar Logistics (two Orlando, FL 195,000 Speculative Q3 2022 buildings) Allentown Land (one building) Lehigh Valley, PA 206,000 Speculative Q2 2023 Land Under Purchase & Sale Agreement Lehigh Valley Land parcel (one Lehigh Valley, PA 90,000 Speculative Q2 2023 building) Total Development Pipeline 828,000
INDUS expects that the total development and stabilization costs of developments
in its pipeline will total approximately
Actual initial full year stabilized Cash NOI yields may vary from INDUS's estimated underwritten stabilized Cash NOI yield range based on the actual total cost to complete a project or acquire a property and its actual initial full year stabilized Cash NOI.
Closing on the purchase of the Lehigh Valley Land parcel, in addition to the completion and stabilization of the development pipeline, are each subject to a number of contingencies including the satisfactory completion of due diligence by INDUS. There can be no guarantee that these transactions and developments will be completed under their current terms, anticipated timelines, at the Company's estimated underwritten yields, or at all.
Disposition Pipeline
During the 2021 fourth quarter, INDUS completed four separate, previously
announced disposition transactions that generated approximately
? approximately 1,066 acres of undeveloped land in
million in gross proceeds;
? approximately 209,000 square feet across three office/flex properties and 8
acres of land in
approximately 165,000 square feet across one industrial/logistics property and
? 39 acres of land in
and
? approximately 670 acres of undeveloped land in
Also during the 2021 fourth quarter, the buyer under the previously announced
Corporate Updates
On
A copy of the Company's
1.Weighted average rent growth reflects the percentage change of annualized rental rates between the previous leases and the current leases. The rental rate change on a straight-line basis represents average annual base rental payments on a straight-line basis for the term of each lease including free rent periods. Cash basis rent growth represents the change in starting rental rates per the lease agreement on new and renewed leases signed during the period, as compared to the previous ending rental rates for that same space. The cash rent growth calculation excludes free rent periods. 2.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.7700 Palmetto Commerce Parkway , an approximately 197,000 square foot industrial/logistics building inCharleston, South Carolina , which was 57.1% leased as ofDecember 31, 2021 , was acquired onNovember 12, 2021 , and is not included in theStabilized Properties pool for the 2021 fourth quarter. 3.As a part of INDUS's standard development and acquisition underwriting process, INDUS analyzes the targeted initial full year stabilized Cash NOI yield for each development project and acquisition target and establishes a range of initial full year stabilized Cash NOI yields, which it refers to as "underwritten stabilized Cash NOI yields." Underwritten stabilized Cash NOI yields are calculated as a development project's or acquisition's initial full year stabilized Cash NOI as a percentage of its estimated total investment, including costs to stabilize the buildings to 95% occupancy (other than in connection with build-to-suit development projects and single tenant properties). INDUS calculates initial full year stabilized Cash NOI for a development project or acquisition by subtracting its estimate of the development project's or acquisition's initial full year stabilized operating expenses, real estate taxes and non-cash rental revenue, including straight-line rents (before interest, income taxes, if any, and depreciation and amortization), from its estimate of its initial full year stabilized rental revenue. Forward-Looking Statements:
This Current Report on Form 8-K 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's beliefs and expectations regarding future events or conditions including, without limitation, statements regarding the completion of acquisitions under agreements, pre-leasing agreements, construction and development plans and timelines, expected total development and stabilization costs of developments in INDUS's pipeline, the estimated underwritten stabilized Cash NOI yield of the Company's development pipeline, and expected capital availability and liquidity. 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 . . .
Item 9.01 Financial Statements and Exhibits.
99.1 The Company's Press Release dated
within the Inline XBRL document)
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