Industrial Portfolio Growth
Industrial assets now generate 60% of the company's ABR. The strategic transformation into an industrial-only REIT focused on growth in the industrial outdoor storage (IOS) sector continues to advance.
Successful Office Dispositions
As of October 31, 12 office properties were sold for approximately $363 million, reducing the portfolio to 12 remaining office properties. The company expects to complete the sale of a majority of these properties by the end of the year.
Strong Leasing Performance
The IOS operating portfolio reached 100% occupancy with weighted average re-leasing spreads of 116% on a cash basis and 120% on a GAAP basis. Notable transactions included an 8-year lease in Philadelphia and a 5.1-year lease in Houston.
Improved Financial Metrics
Total revenue from continuing operations was $25.8 million, net income attributable to common shareholders was $3.5 million or $0.09 per share, and same-store cash NOI increased by 3.7% compared to the same quarter last year.
Debt Reduction
Debt was reduced by approximately $450 million, improving total leverage to 5.4x on a pro forma basis. Subsequent to quarter end, an additional $240 million was paid down on the unsecured credit facility.