INDUS Realty Trust, Inc.

NasdaqGM:INDT Stock Report

Market Cap: US$683.2m

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

INDUS Realty Trust Management

Management criteria checks 4/4

INDUS Realty Trust's CEO is Mike Gamzon, appointed in May 2012, he has a tenure of 11.17 years. His total yearly compensation is $1.39M , comprised of 34.2% salary and 65.8% bonuses, including company stock and options. He directly owns 0.21% of the company’s shares, worth $1.44M. The average tenure of the management team and the board of directors is 2.6 years and 7.2 years respectively.

Key information

Mike Gamzon

Chief executive officer

US$1.4m

Total compensation

CEO salary percentage34.18%
CEO tenure11.2yrs
CEO ownership0.2%
Management average tenure2.6yrs
Board average tenure7.2yrs

Recent management updates

Analysis Article • Jun 10

This Is Why INDUS Realty Trust, Inc.'s (NASDAQ:INDT) CEO Compensation Looks Appropriate

The performance at INDUS Realty Trust, Inc. ( NASDAQ:INDT ) has been rather lacklustre of late and shareholders may be...

Recent updates

Seeking Alpha • Oct 11

INDUS Realty Trust executes leases totaling ~418K sq. ft. in Q3

Industrial/logistics REIT INDUS Realty Trust (NASDAQ:INDT) said it executed five leases totaling ~418K sq. ft. across the company's portfolio in Q3. The five leases are a 217K sq. ft. full building lease in Charlotte, North Carolina; a 143K sq. ft. of renewals across two leases in Hartford, Connecticut; a 34.5K sq. ft. first generation lease in the Lehigh Valley, Pennsylvania; and a 24K sq. ft. first generation in Orlando, Florida. Two development projects were completed in Hartford, Connecticut, and Orlando, Florida, totaling ~430K sq. ft. Additionally, the real estate investment trust acquired an ~7.6 acre parcel of land in Allentown, Pennsylvania, for $6.5M. The company said a 100% of its stabilized portfolio and a 97.6% of its in-service portfolio was leased as of Sep. 30. INDT repaid a $26.3M construction loan with cash on hand. An ~63K sq. ft. lease was signed at the two-building forward acquisition in Nashville, Tennessee. This lease brings the to-be-acquired Nashville portfolio to 77.2% pre-leased. The company's 42 buildings aggregated ~6.1M sq. ft. as of Sep. 30. Source: Press Release
Seeking Alpha • Sep 09

INDUS Realty Trust: Solid Portfolio And Balance Sheet But Way Overvalued

Summary INDT is an East Coast industrial REIT with an in-house development arm. The portfolio is growing rapidly this year, and both internal and external growth are surging. Management might be overpaid. The stock is very richly valued even after a 25% drop year-to-date. Thesis: Solid Company That's Overpriced INDUS Realty Trust (INDT) is a small-cap (~$610 million market cap) real estate investment trust that owns, operates, and develops a portfolio of industrial and logistics properties. Recently, the REIT's portfolio has experienced a high degree of turnover. Over 10% of INDT's portfolio was added just since the beginning of 2022. There are still a few flex/office properties and parcels of land yet to be disposed, which will result in further turnover. After adding 520,000 square feet of space to the portfolio in the first half of 2022, management says they plan to add another 875,000 square feet in the second half of the year. Though the company itself is firing on all cylinders, the issue with INDT relates to valuation. The stock price roughly doubled in the 2.5 years from mid-2019 to the end of 2021 and has since pulled back by some 25%. INDT data by YCharts Even so, INDT still strikes me as overvalued. My conservative estimate of AFFO per share for 2022 is $1.55, which would put INDT's price to AFFO at about 39.3x as of this writing. Meanwhile, the analysts give a consensus estimate of $1.76 per share in FFO, which puts INDT at a price to FFO of 34.1x. That is far higher than industrial REIT leader Prologis (PLD) with its 25x FFO multiple, despite only slightly lower growth rates from the larger peer. In fact, it is on par with Rexford Industrial Realty (REXR) with its 34.3x FFO multiple, despite REXR enjoying far higher growth rates than INDT (due largely to its trophy locations in Southern California). INDT is trading at an AFFO yield of 2.6% and an FFO yield of 2.9%, which is a significant premium to its average property cap rate of around 4%. Though INDT is a solid company with attractive properties that are underleveraged, the stock is still too expensive. But let's get into the details of the REIT, and perhaps your opinion will differ from mine. Overview of INDUS Realty Though I normally start with a look at a REIT's property portfolio before turning to performance, this time I want to highlight INDT's recent per-share performance - namely, INDT's AFFO per share growth of 12.5% year-over-year in the first half of 2022 and 14.7% in Q2 2022. That is strong growth in profits! It underscores what a strong property type industrial assets have been in recent years. INDT's portfolio consists of 39 buildings averaging 145,000 square feet each. For context, that's a little smaller than the average Walmart supercenter footprint of about 180,000 square feet. INDT Q2 Presentation The portfolio is almost 100% leased, reflecting not just particular strength in INDT's portfolio, but also the low single-digit vacancy rate of industrial properties in most of INDT's markets. The portfolio spans the East Coast, with most properties concentrated in Connecticut and Eastern Pennsylvania. But INDT also has a growing presence in Central Florida and the Carolinas. Like other industrial REITs, INDT's portfolio has plenty of exposure to e-commerce, with Amazon (AMZN) as its largest tenant by revenue and third-party logistics as its largest tenant industry by leased square footage. INDT Q2 Presentation About one-third of tenants by revenue are investment grade rated. But in industrial, building specifications and location matter more than the credit of the tenant, because demand is incredibly high for these mission-critical assets. This demand can be measured by same-property net operating income growth. For INDT, SPNOI rose about 11% in Q2 and ~8.5% for the first half of 2022. INDT Q2 Presentation Though INDT has rent escalations built into its leases that ensure organic rent growth, the primary source of same-property NOI growth has been rent growth on new and renewed leases, which averaged around 30% in Q2. As long as this strong lease-over-lease rent growth continues, INDT's relatively short weighted average remaining lease term of 4.8 years will continue to be a major strength, as leases rolling over should continue to produce big jumps in rental revenue and NOI. Another feature of INDT is that acquisitions are not the only method of inorganic growth available to it. The REIT also develops properties in-house from its fairly sizable land bank. INDT Q2 Presentation While most of these developments are on spec (constructed without a tenant in place yet), demand for space in its chosen markets is so high that there is little doubt the space will be leased. Moreover, the ability to develop is a major advantage at a time when cap rates for stabilized properties is around 4%. This year, INDT has purchased existing properties at cap rates of about 4% to 4.5%, while it has the ability to develop new properties from the ground up at projected cap rates of 6.1% to 6.6%. That two-point spread is tantamount to millions of dollars of value creation. Taking into account ongoing development projects and the pipeline of likely acquisitions, INDT's geographic diversification should expand in the coming quarters. INDT Q2 Presentation In some ways, INDT might be considered the East Coast version of REXR (although far smaller), which is concentrated on the West Coast and specifically Southern California. Balance Sheet Like the portfolio, INDT's balance sheet exudes quality and strength. The REIT is too small to have a credit rating, but the balance sheet certainly exhibits investment grade characteristics. Though debt to Q2 2022's annualized EBITDA looks rather high at 7.6x, that is a function of portfolio turnover resulting in a large cash position that has not yet been reinvested. Cash currently sits at 12.5% of INDT's market cap. Net debt to Q2's annualized EBITDA is much lower at 4.1x. INDT Q2 Presentation Long-term debt to gross real estate assets (at cost) sits at 23%, while debt to enterprise value is a touch lower at 22%. Aside from a short-term construction loan maturing in 2023, INDT has no debt maturities until 2027. And that construction loan, upon stabilization of the property in question with a lease, should easily be replaced with a mortgage or equity issuance. High G&A Costs The biggest red flag I see with INDT is the company's high general & administrative costs, which investors might consider the management fee. G&A as a percentage of total rental revenue was 23% in 1H 2022, falling slightly to 20% in Q2 2022. Compare that to the G&A to revenue percentages for PLD of about 6.5% and REXR of about 10%. Admittedly, PLD and REXR are much larger than INDT and thus enjoy more economies of scale. But look even at Plymouth Industrial REIT (PLYM), which is only a little larger than INDT in market cap (~$815 million). PLYM's G&A to revenue is about 9%. Likewise, LXP Industrial Trust (LXP), with a market cap a little under $3 billion, has a G&A to revenue of about 10.5%.
Seeking Alpha • Jul 07

INDUS Realty Trust reports 100% leased in stabilized properties portfolio

INDUS Realty Trust (NASDAQ:INDT) provided updates on leasing, its acquisition and development pipeline and other corporate matters for Q2. As of June 30, stabilized portfolio was 100.0% leased; total in-service portfolio was 99.4% leased. The firm repaid four existing mortgages covering ten buildings with $60M in proceeds from the Term Loan resulting in no fixed-rate debt maturities until 2027. The company acquired a fully leased, ~205K square foot portfolio of last-mile facilities located in the Orlando and Palm Beach, Florida markets. It has completed two leases of first generation space totaling ~102K square feet and two lease renewals totaling ~256K square feet. It has developed and placed in service a 67% pre-leased, ~102K square foot building in Lehigh Valley, Pennsylvania. The firm has amended and restated the existing $100M credit pact to increase the size to $250M with the addition of a new $150M delayed draw term loan with a term of five years. It has repaid four existing mortgages covering ten buildings with $60M in proceeds from the Term Loan resulting in no fixed-rate debt maturities until 2027.
Analysis Article • Mar 10

INDUS Realty Trust, Inc. Surprised Analysts With A Profit, And Analysts Boosted Their EPS Forecasts

Last week, you might have seen that INDUS Realty Trust, Inc. ( NASDAQ:INDT ) released its annual result to the market...
Analysis Article • Jun 10

This Is Why INDUS Realty Trust, Inc.'s (NASDAQ:INDT) CEO Compensation Looks Appropriate

The performance at INDUS Realty Trust, Inc. ( NASDAQ:INDT ) has been rather lacklustre of late and shareholders may be...
Analysis Article • Feb 14

Should You Buy INDUS Realty Trust, Inc. (NASDAQ:INDT) For Its 0.8% Dividend?

Is INDUS Realty Trust, Inc. ( NASDAQ:INDT ) a good dividend stock? How can we tell? Dividend paying companies with...

CEO Compensation Analysis

How has Mike Gamzon's remuneration changed compared to INDUS Realty Trust's earnings?
DateTotal CompensationSalaryCompany Earnings
Mar 31 2023n/an/a

-US$3m

Dec 31 2022US$1mUS$475k

US$3m

Sep 30 2022n/an/a

US$23m

Jun 30 2022n/an/a

US$19m

Mar 31 2022n/an/a

US$15m

Dec 31 2021US$1mUS$475k

US$14m

Sep 30 2021n/an/a

-US$14m

Jun 30 2021n/an/a

-US$11m

Mar 31 2021n/an/a

-US$11m

Dec 31 2020n/an/a

-US$10m

Nov 30 2020US$786kUS$545k

-US$13m

Aug 31 2020n/an/a

-US$4m

May 31 2020n/an/a

-US$3m

Feb 29 2020n/an/a

US$4m

Nov 30 2019US$688kUS$532k

US$4m

Aug 31 2019n/an/a

US$6m

May 31 2019n/an/a

US$5m

Feb 28 2019n/an/a

-US$516k

Nov 30 2018US$653kUS$519k

-US$2m

Aug 31 2018n/an/a

-US$2m

May 31 2018n/an/a

-US$553k

Feb 28 2018n/an/a

US$4m

Nov 30 2017US$699kUS$509k

US$5m

Aug 31 2017n/an/a

US$6m

May 31 2017n/an/a

US$5m

Feb 28 2017n/an/a

-US$28k

Nov 30 2016US$1mUS$486k

US$576k

Compensation vs Market: Mike's total compensation ($USD1.39M) is below average for companies of similar size in the US market ($USD3.56M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.

CEO

Mike Gamzon (53 yo)

11.2yrs
Tenure
US$1,391,006
Compensation

Mr. Michael S. Gamzon, also known as Mike, has been the Chief Executive Officer and President of INDUS Realty Trust, Inc. since January 1, 2016 and May 17, 2012 respectively and served as its Chief Operati...

Leadership Team

NamePositionTenureCompensationOwnership
Michael Gamzon
CEO, President & Director11.2yrsUS$1.39m0.21%
$ 1.4m
Jon Clark
Executive VP & CFO1.5yrsUS$647.88k0.0098%
$ 67.0k
Thomas Lescalleet
Executive Vice President of INDUS Realty2.7yrsUS$669.26k0.0063%
$ 43.2k
Kelly Poudrette
VP & Chief Accounting Officerless than a yearno datano data
Ashley Pizzo
Vice President of Capital Markets & Investor Relations3yrsno datano data
Thomas Daniells
Senior VP2.3yrsno data0%
$ 0
Scott Bosco
Senior Vice President of Construction & Development - INDUS Realty2.7yrsUS$273.78k0.0027%
$ 18.7k
Andre Ciani
Director of Acquisitions2.5yrsno datano data
Andrew Albeck
Director of Acquisitionsno datano datano data
Randy Gudauskas
Controllerno datano datano data
Christopher Jimenez
Associate-IR & Capital Marketsno datano datano data
2.6yrs
Average Tenure
57yo
Average Age

Experienced Management: INDT's management team is considered experienced (2.6 years average tenure).

Board Members

NamePositionTenureCompensationOwnership
Michael Gamzon
CEO, President & Director7.5yrsUS$1.39m0.21%
$ 1.4m
Gordon DuGan
Chairman of the Board3.3yrsUS$115.00k0.53%
$ 3.6m
Jonathan May
Independent Director10.8yrsUS$116.25k0.014%
$ 92.5k
Frederick Danziger
Director26.3yrsUS$90.00k2.89%
$ 19.7m
David Bechtel
Independent Director7.2yrsUS$113.75k0.011%
$ 74.9k
Albert Small
Independent Director14.5yrsUS$103.75k0.066%
$ 451.3k
Amy Silverman
Independent Director4.2yrsUS$102.50k0.0066%
$ 45.4k
Molly North
Independent Director3.3yrsUS$116.25k0%
$ 0
Michael Simanovsky
Independent Director1.5yrsno datano data
7.2yrs
Average Tenure
56yo
Average Age

Experienced Board: INDT's board of directors are considered experienced (7.2 years average tenure).

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2023/07/01 04:40
End of Day Share Price 2023/06/28 00:00
Earnings2023/03/31
Annual Earnings2022/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

INDUS Realty Trust, Inc. is covered by 9 analysts. 1 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Brian HollendenAegis Capital Corporation
David RodgersBaird
Connor SiverskyBerenberg