Transformative Sale of Development Projects
The sale of two vacant development projects in Central Florida and Indianapolis for $175 million, representing a 20% premium to the gross book value, significantly reduced leverage to 5.2x net debt to adjusted EBITDA and increased portfolio occupancy by 370 basis points.
Strong Market Fundamentals
The company's 12 target markets experienced robust net absorption, with Dallas, Houston, Phoenix, and Indianapolis showing 4-8 million square feet absorption each. The portfolio's vacancy held steady around 7% due to positive demand and a decline in new completions.
Dividend Increase
The Board authorized an annualized dividend increase of $0.02 per share to an annualized rate of $0.56 per share, representing a 3.7% increase.
Lease Renewal and Rent Increases
A 380,000 square foot facility in Indianapolis was leased to a new tenant with a 34% rent increase. Overall, average annual rent escalators increased to 2.9%.