Core Insights - The focus is on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - There is potential value in overlooked stocks that are trading at attractive prices while offering high yields, emphasizing a value-driven investment approach rather than popularity [2] Group 1 - The investment strategy prioritizes defensive stocks with a medium- to long-term horizon [2] - The service offers a free two-week trial to explore exclusive income-focused portfolios [1] Group 2 - The article expresses the author's personal opinions and does not involve compensation from any mentioned companies [3] - It is stated that the article is for informational purposes and does not constitute financial advice [4]

Financial Data and Key Metrics Changes - The company announced a strategic transaction with Sixth Street, enhancing borrowing capacity and securing up to $500 million for acquisitions [6][7] - The same store portfolio has been reset to 168 buildings, representing 89% of the total in-place portfolio, with Q4 2024 occupancy at approximately 92% [20][48] - The company anticipates a 380 basis points occupancy improvement, equating to over 1 million square feet lease-up [20] Business Line Data and Key Metrics Changes - The Cincinnati acquisitions totaled approximately 762,000 square feet for $61.3 million, contributing to capital deployment efforts [10] - The company has a pipeline exceeding 11 million square feet and $1 billion in potential acquisitions, primarily in existing markets [11] Market Data and Key Metrics Changes - Market conditions remain favorable for buildings under 250,000 square feet, with over 95% of leases concentrated in this segment [9] - The rental growth rate in the company's markets is normalized between 3% and 4%, with mid-teens to low 20% growth expected on rent spreads for smaller spaces [32] Company Strategy and Development Direction - The focus for 2025 will be on leasing opportunities and capital deployment, with a strategic emphasis on expanding scale [8][11] - The company is positioned to execute on leasing and capital deployment strategies, leveraging the capital secured from the Sixth Street transaction [11][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating tenant challenges and leasing remaining spaces, with strong momentum anticipated for 2025 [9][10] - The company is optimistic about the leasing environment, with significant leasing activity noted towards the end of January and February [27] Other Important Information - The company has made solid progress on capital deployment and is strategically positioned to expand its scale in the market [11] - Management highlighted the importance of value-add acquisitions and the capabilities to handle multiple projects simultaneously [78] Q&A Session Summary Question: What is the potential for balance sheet acquisitions versus JV? - Management indicated that about half of the $1 billion potential acquisitions could be on balance sheet, with a $150 million portfolio likely being JV material [14][15] Question: What is the timing of the 740,000 square feet of leases signed? - All leases signed have already commenced, with occupancy increasing from 92.5% to 94.3% this year [26][27] Question: Can you provide details on remaining 2025 expirations? - Management noted that rental growth is expected to be strong, particularly for small to midsize spaces, and expressed confidence in leasing up remaining vacancies [32][34] Question: What is the outlook for the St. Louis lease? - Management is optimistic about the tenant's interest in expanding and continuing the lease, despite a reduction in square footage [38] Question: How does the company view the Sixth Street transaction? - Management believes the transaction is transformative and will provide ample capital for future growth, emphasizing patience in executing their strategy [56][67] Question: What are the pricing trends in the market? - Management noted that while there is negative leverage in the marketplace, they are still seeing strong demand for industrial properties [69][74] Question: Is there any impact from tariffs or reshoring initiatives? - Management reported a significant increase in demand for bulk storage requirements due to tariffs, indicating a rush to get products into warehouses [90][91]

Plymouth Industrial REIT, Inc. (NYSE:PLYM) Q4 2024 Earnings Conference Call February 27, 2025 9:00 AM ET Company Participants John Wilfong - IR Jeff Witherell - Chairman & CEO Anthony Saladino - EVP & CFO Conference Call Participants Eric Borden - BMO Capital Markets Todd Thomas - KeyBanc Capital Markets Rich Anderson - Wedbush Nick Thielman - Baird Mitch Germain - Citizens JMP Brendan Lynch - Barclays Michael Mueller - JPMorgan Operator Good morning, and welcome to the Plymouth Industrial REIT Conference C ...

Group 1 - Plymouth Industrial reported $47.57 million in revenue for Q4 2024, a year-over-year decline of 6.3% [1] - The company's EPS for the same period was $0.46, compared to $0.20 a year ago, indicating an improvement [1] - The reported revenue was a surprise of -6.60% compared to the Zacks Consensus Estimate of $50.93 million [1] Group 2 - Key metrics indicate that Plymouth Industrial's management fee revenue and other income was $0.28 million, exceeding the average estimate of $0.13 million, representing a year-over-year change of +826.7% [4] - Rental revenue was reported at $47.29 million, below the average estimate of $50.99 million, reflecting a year-over-year decline of 6.8% [4] - The diluted EPS was reported at $3.24, significantly higher than the estimated $0.06 [4] Group 3 - Over the past month, shares of Plymouth Industrial returned -2.6%, compared to the Zacks S&P 500 composite's -2.3% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Group 1: Financial Performance - Plymouth Industrial reported quarterly funds from operations (FFO) of $0.46 per share, matching the Zacks Consensus Estimate, but down from $0.47 per share a year ago [1] - The company posted revenues of $47.57 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 6.60% and down from $50.78 million year-over-year [2] - Over the last four quarters, Plymouth Industrial has surpassed consensus FFO estimates only once and has topped consensus revenue estimates just once [1][2] Group 2: Stock Performance and Outlook - Plymouth Industrial shares have declined approximately 7.6% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The company's FFO outlook is crucial for assessing future stock performance, with current consensus FFO expectations for the coming quarter at $0.46 on revenues of $51.94 million, and $1.95 on revenues of $216.26 million for the current fiscal year [4][7] - The estimate revisions trend for Plymouth Industrial is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Group 3: Industry Context - The REIT and Equity Trust - Other industry, to which Plymouth Industrial belongs, is currently ranked in the bottom 46% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in estimate revisions, which can impact investor decisions [5]

Financial Performance - For Q4 2024, net income attributable to common stockholders was $146.2 million, or $3.25 per weighted average common share, compared to $9.2 million, or $0.20 per share in Q4 2023, primarily due to a $136.8 million net gain on the sale of real estate related to the Chicago Portfolio [7][5][39] - Core Funds from Operations (Core FFO) for Q4 2024 was $21.1 million, or $0.46 per share, compared to $21.6 million, or $0.47 per share in Q4 2023 [11][5] - Adjusted Funds from Operations (AFFO) for Q4 2024 was $18.6 million, or $0.40 per share, down from $22.0 million, or $0.48 per share in Q4 2023 [12][5] Leasing Activity - In Q4 2024, rental rates for commenced leases increased by 19.4% on a cash basis, with renewal leases reflecting a 12.6% increase and new leases reflecting a 30.2% increase [22][24] - For the full year 2024, rental rates under executed leases increased by 17.1% on a cash basis, with renewal leases up 12.9% and new leases up 28.2% [23][24] - As of February 24, 2025, the company has executed leases totaling 4,276,832 square feet scheduled to commence in 2025, with an expected 12.7% increase in rental rates on a cash basis [5][26] Portfolio and Acquisitions - The company completed the contribution of 34 properties in the Chicago MSA to a joint venture with Sixth Street Partners for $356.6 million, which will be accounted for as an equity method investment [4][20] - The company acquired a portfolio of small bay industrial properties in Cincinnati for $20.1 million, with an anticipated initial NOI yield of 6.8% [19][5] - As of December 31, 2024, the company owned 129 industrial properties across 11 states, totaling approximately 29.3 million rentable square feet [18][5] Capital Structure and Guidance - The company entered into a $600 million amended and restated unsecured credit facility, expanding borrowing capacity and extending maturities [15][16] - The board authorized a share repurchase program for up to $90 million of the company's outstanding common stock [5] - For full year 2025, the company provided guidance for Core FFO per share in the range of $1.85 to $1.89 and expects same store portfolio NOI growth of 6.00% to 6.50% [28][29]

Portfolio Overview - As of September 30, 2024, Plymouth Industrial REIT's portfolio consists of 129 properties with a total square footage of 29,250,971 and an overall occupancy rate of 92.3%[11] - The company reported a same-store occupancy rate of 95.2% and a weighted average lease term remaining of 3.2 years[11] - Total acquisition cost for the portfolio is approximately $1.45 billion, with a replacement cost of about $2.60 billion[12] - The Same Store Portfolio consists of 168 buildings totaling 26,107,300 rentable square feet, representing approximately 89.3% of the total in-place portfolio[27] - The total number of properties in the Same Store portfolio was 146, with 200 buildings contributing to 88.7% of total portfolio square footage[40] Financial Performance - For Q4 2024, total revenues were $47,570,000, down from $50,784,000 in Q4 2023, with rental revenue decreasing to $35,732,000 from $38,642,000[34] - The company reported a net income attributable to common stockholders of $146,212,000 for Q4 2024, compared to $9,192,000 in Q4 2023[34] - Net income for Q4 2024 was $150,098,000, a significant increase from $9,377,000 in Q4 2023, representing a growth of 1,502%[36] - Funds from Operations (FFO) for Q4 2024 reached $40,177,000, up 85.5% from $21,636,000 in Q4 2023[38] - Same Store Net Operating Income (NOI) for the year ended December 31, 2024, was $128,014,000, reflecting a 1.3% increase from $126,330,000 in 2023[41] - Same Store rental revenue for Q4 2024 was $47,398,000, a 2.9% increase compared to $46,072,000 in Q4 2023[41] - Adjusted EBITDA for the year ended December 31, 2024, was $126,848,000, slightly down from $127,188,000 in 2023[38] - Core FFO attributable to common stockholders per share for Q4 2024 was $0.46, compared to $0.47 in Q4 2023[38] Acquisition and Development Activities - In Q4 2024, Plymouth completed developments with a total investment of approximately $70 million, achieving an initial cash NOI yield of 7.5%[17] - The company is constructing a new 41,958-square-foot building in Jacksonville, FL, with an estimated investment of $5.7 million, targeted for completion by the end of 2025[17] - Plymouth's acquisition activity includes a recent purchase in Cincinnati, OH, for $23.3 million, with a projected initial yield of 6.7%[15] - The company acquired a 258,082-square-foot industrial portfolio in Cincinnati, OH for $20.1 million, achieving a going-in NOI yield of 6.8%[25] - The company anticipates acquisition volume for 2025 to range from $270,000,000 to $450,000,000[26] Occupancy and Leasing - The occupancy rate at the end of the reporting period was 95.7% for the Same Store portfolio, indicating strong demand[40] - Same store occupancy at the end of Q4 2024 was 95.2%, down from 97.2% in the previous quarter[44] - The leasing activity for 2024 included 5,827,136 square feet, with a total rent increase of 17.1% compared to previous leases[68] - The primary markets show a total occupancy of 91.5% across 116 properties, contributing to 84.3% of the total ABR[63] Debt and Liabilities - As of December 31, 2024, total assets amounted to $1,368,418,000, a decrease from $1,496,411,000 as of September 30, 2024[32] - The company’s total liabilities as of December 31, 2024, were $781,299,000, a decrease from $1,054,766,000 as of September 30, 2024[32] - Total Debt as of December 31, 2024, decreased to $705,790,000 from $890,998,000 in the previous quarter[49] - Net Debt as of December 31, 2024, was $662,163,000, down from $857,442,000 in the prior quarter[49] - The Company had a net debt-to-annualized adjusted EBITDA ratio of 5.4x as of December 31, 2024, compared to 6.6x in the previous quarter[49] Joint Ventures and Partnerships - The Company contributed 34 properties to a joint venture for a total purchase price of approximately $356.6 million at a 6.2% capitalization rate[60] - The joint venture portfolio consists of 34 properties with a total square footage of 5,957,335 and an occupancy rate of 93.1%[61] - The company reported a funds from operations (FFO) of $1,946,000 for the joint venture, with a distribution structure ensuring a 13.5% internal rate of return (IRR) for both partners[61] Capital Expenditures and Dividends - Total capital expenditures for the quarter ending December 31, 2024, amount to $6,797,000, down from $11,082,000 in the previous quarter[86] - The annualized dividend per share remained stable at $0.96, with a dividend yield of 5.4% as of December 31, 2024[49] Industry and Market Trends - The logistics & transportation industry accounts for 30.2% of total leased square feet and 25.9% of total ABR, totaling 8,160,867 square feet and $33,911,975 in ABR[72] - The healthcare industry represents 4.8% of total leased square feet and 7.2% of total ABR, totaling 1,297,715 square feet and $9,448,831 in ABR[72] - Triple net leases represent 84.6% of total leased square feet, with an ABR of $109,474,056, averaging $4.79 per square foot[75] - Multi-tenant properties comprise 50.3% of total leased square feet, generating an ABR of $72,665,593, averaging $5.35 per square foot[76] - The warehouse/distribution building type accounts for 68.1% of total leased square feet, with an ABR of $78,014,224, averaging $4.24 per square foot[77] Definitions and Metrics - The company defines Net Operating Income (NOI) as total revenue minus property-level operating expenses, excluding various non-operating items[91] - Cash NOI is calculated by excluding straight-line rent adjustments and amortization of above and below market leases from NOI[92] - EBITDAre is defined as net income before interest, taxes, depreciation, and amortization, providing a direct measure of operating results for industrial properties[93] - Adjusted EBITDA includes adjustments for non-cash stock compensation, acquisition expenses, and other non-cash impairments, offering a clearer view of operating performance[94] - Funds From Operations (FFO) is a widely recognized measure of a REIT's operating performance, excluding non-cash items like depreciation[95] - Core Funds from Operations (Core FFO) adjusts FFO for preferred stock dividends and certain non-cash operating expenses, providing a more consistent comparison of operating performance[97] - Adjusted Funds from Operations (AFFO) further adjusts Core FFO for non-cash items and recurring capital expenditures, offering a comprehensive view of operating performance[98]

Company Announcement - Plymouth Industrial REIT, Inc. has promoted Anthony Saladino to President and Chief Financial Officer, effective immediately [1] - Saladino has been with the company since October 2020 and previously served as Executive Vice President and Chief Financial Officer since February 2022 [2] Leadership Background - Anthony Saladino has extensive experience in finance and accounting, having held senior roles in publicly traded companies and private real estate portfolio companies [2] - His previous positions include Chief Accounting Officer for AFIN (now GNL) and NYC REIT, and Vice President of Finance for The Ryland Group (now Lennar) [2] Strategic Contributions - Jeff Witherell, Chairman and CEO, highlighted Saladino's contributions in enhancing the company's balance sheet, lowering borrowing costs, and improving borrowing capacity [3] - Saladino has also driven improvements in financial and accounting processes and strengthened engagement with the investment community [3] Company Overview - Plymouth Industrial REIT, Inc. is a vertically integrated real estate investment company focused on acquiring, owning, and managing industrial properties [4] - The company's mission is to provide tenants with cost-effective, functional, flexible, and safe spaces [4]

Core Insights - Plymouth Industrial REIT, Inc. has sold a 33,688-square-foot flex building in Memphis, TN for $2.4 million, which was part of a larger portfolio acquired for $100.5 million in July 2024 [1][2] Company Strategy - The building was identified for divestiture as a non-core asset, with a short-term lease to a tenant expected to vacate by December 2024 [2] - Proceeds from the sale will be reinvested into the portfolio to support leasing activities and the conversion of a 100,000-square-foot call center back to a warehouse format for multiple industrial users [2][3] Market Position - Plymouth's CEO highlighted the sale as part of the company's value-add initiatives aimed at aligning the portfolio with market demands and driving growth [3] - The company owns a total of 6.4 million square feet in the Memphis market and is evaluating the development of an additional 106,000-square-foot building on excess land [3] Company Overview - Plymouth Industrial REIT, Inc. is a vertically integrated real estate investment company focused on acquiring, owning, and managing industrial properties [4]

Core Insights - Plymouth Industrial REIT, Inc. has signed a two-year lease for 769,500 square feet in St. Louis with a major international manufacturing and logistics provider, indicating strong demand for its high-quality assets [1][2] - The company reported significant leasing activity in Q4, with a total of 1,467,245 square feet leased, including a 19.5% increase in cash rental rates, reflecting robust tenant demand [3] - For 2024, Plymouth executed leases totaling 5.8 million square feet, achieving a 17.3% increase in cash rental rates, driven by a 28.2% rise in new leases [4] Leasing and Portfolio Performance - The recent quarterly update highlighted that renewal leases accounted for 1,042,732 square feet, while new leases totaled 424,513 square feet, showcasing the strength of Plymouth's portfolio [3] - Same-store occupancy was reported at 95.7% as of December 31, 2024, while total portfolio occupancy was at 92.5%, impacted by previous tenancy issues in Cleveland [4] Market Position and Stock Performance - Despite healthy leasing activity, Plymouth's stock has seen a decline of 19.6% over the past three months, compared to an 8.7% decline in the industry, indicating broader market concerns [6] - Analysts have lowered the 2024 funds from operations (FFO) per share estimate to $1.83, reflecting bearish sentiment towards the stock [6] Comparative Analysis - Other REITs such as SL Green Realty and Welltower are currently rated higher, with Zacks Rank 2 (Buy), suggesting potential investment alternatives within the sector [7]