Sealy Industrial Partners IV Doubles Revenue in Q2

The firm completed $41.7 million in new acquisitions and its first property sale, boosting operating scale and returns.

August 06, 2025

Portfolio Growth and Revenue Acceleration

Sealy Industrial Partners IV, LP continued to build momentum in the second quarter of 2025, scaling up its portfolio, accelerating revenue growth, and redeploying capital with precision. The company closed the quarter with 20 industrial properties across eight states, totaling roughly 4.7 million square feet.

Revenue reached $9.4 million for the quarter—more than twice what it posted a year earlier. That growth was powered by newly acquired assets in El Paso and Saint Louis, adding 466,000 square feet for a combined $41.7 million. The El Paso deal also included a ground lease, with Sealy capitalizing a $2.3 million right-of-use asset and associated lease liability.

On the capital recycling front, the company sold its Sulphur, Louisiana property for $8.3 million, recognizing a $1.2 million gain. The sale proceeds helped fund the Missouri acquisition that closed at the end of the quarter. These moves reflect Sealy’s approach to continuously optimizing its portfolio.

Operational and Financing Metrics

Operating income landed at $312,000 —up from a loss of $222,000 in the same quarter last year. But higher borrowing costs weighed on the bottom line. Interest expense rose to $1.6 million, up from just $147,000, driven by increased use of the KeyBank credit facility. The outstanding balance reached $91.5 million by June 30, with $8.5 million still available.

Capital Raising and Portfolio Performance

Sealy kept up the pace on fundraising, issuing 215,883 units in Q2 and raising $19.5 million through its private offering. Its DRIP program contributed another $1.3 million in reinvested proceeds.

By quarter-end, the portfolio was fully leased to 37 tenants, with an average lease term of 4.4 years. Cash and cash equivalents stood at $9.9 million, and total partners' capital increased to $308.9 million.

Outlook and Market Environment

Looking forward, Sealy expects continued growth through acquisitions and ongoing capital raises. At the same time, the firm is monitoring market headwinds closely. High interest rates and inflation—especially in insurance and property tax costs—remain key risks for both financing and tenant operations. Still, management believes current conditions could lead to attractive acquisition opportunities for well-capitalized platforms.

With a focus on disciplined growth and operational scale, Sealy is staying on track to expand its national industrial footprint while maintaining full occupancy and delivering steady income across its portfolio.