Core Viewpoint - Plymouth Industrial REIT, Inc. reported strong performance in Q4 2024, highlighted by significant cash rental rate increases and strategic acquisitions, indicating a positive outlook for the company [2][5]. Leasing Activity - In Q4 2024, leases totaling 1,467,245 square feet were executed, including 1,042,732 square feet of renewals and 424,513 square feet of new leases, with rental rates reflecting a 19.5% increase on a cash basis [2]. - Renewal leases showed a 12.4% increase, while new leases experienced a 33.0% increase on a cash basis [2]. - Same store occupancy was reported at 95.7%, with total portfolio occupancy at 92.5%, affected by various factors including tenancy issues in Cleveland [2]. Annual Leasing Summary - For the entire year of 2024, executed leases totaled 5,827,136 square feet, representing 71.4% of total expirations [3]. - Renewal leases accounted for 4,180,593 square feet, with a 12.8% increase in rental rates, while new leases totaled 1,646,543 square feet with a 28.2% increase [3]. Acquisition Activity - Plymouth acquired a portfolio of small bay industrial properties in Cincinnati for $20.1 million, with an anticipated initial NOI yield of 6.8% [5]. - A second tranche of this portfolio is under contract for $17.9 million, expected to close in Q1 2025, with an anticipated initial yield of 7.3% [5]. Joint Venture - On November 13, 2024, Plymouth completed the contribution of its equity interests in 34 properties in the Chicago MSA to the Sixth Street Joint Venture for a total purchase price of $356.6 million [6]. Upcoming Earnings Call - The company plans to release its earnings on February 26, 2025, followed by a conference call on February 27, 2025, at 9:00 a.m. Eastern Time [7].

Group 1: Overview of Industrial REITs - Industrial real estate investment trusts (REITs) are currently offering enticing dividend yields and discounted adjusted funds from operations (AFFO) multiples compared to the broader industrial sector [1][2] - The low AFFO multiples are appealing to value investors, but sustainable business models are necessary for long-term earnings growth [2] Group 2: Tenant Issues and Company Performance - Innovative Industrial Properties, Inc. (IIPR) and Plymouth Industrial REIT, Inc. (PLYM) have faced tenant difficulties, highlighting a significant quality gap between discounted industrial REITs [3][9] - IIPR's largest tenant, PharmaCann, defaulted on its leases, which accounted for 17% of its rental income, leading to concerns about revenue replacement [5][12] - IIPR has been utilizing security deposits to cover rent payments, indicating ongoing struggles with rent collection [14][18] Group 3: Financial Metrics and Comparisons - IIPR's annual base rent (ABR) is reported at $310.8 million, with a rent per foot of $36.53, which is considered excessively high for industrial properties [20][37] - In contrast, PLYM's rent per foot is significantly lower at $4.79, suggesting that its properties are below market rent, which could be advantageous when replacing defaulted tenants [60][62] - PLYM has successfully replaced defaulted tenants with new ones at higher rents, demonstrating a more resilient business model compared to IIPR [52][63] Group 4: Market Valuation and Investment Outlook - PLYM is trading at a discounted AFFO multiple of 9.7X, while IIPR's stock is viewed as cheap for a reason, reflecting underlying business model weaknesses [45][64] - The market perceives PLYM's tenant issues differently due to its focus on real estate investment rather than tenant financing, which has resulted in a more stable revenue outlook [58][62]

In an effort to expand its presence in the Cincinnati market, Plymouth Industrial REIT (PLYM) has shelled out $20.1 million for the acquisition of a portfolio of mainly small-bay industrial properties. It comprises nine buildings and aggregates 258,082 square feet of space.With the purchase price equating to an anticipated initial NOI yield of 6.8%, this acquisition marks a solid addition to the company’s already strong presence in the Cincinnati market that will now aggregate more than 3 million square fee ...

BOSTON, Dec. 20, 2024 (GLOBE NEWSWIRE) -- Plymouth Industrial REIT, Inc. (NYSE:PLYM) (the "Company") today announced it has acquired a portfolio of primarily small bay industrial properties in Cincinnati, Ohio for $20.1 million, which equates to an anticipated initial NOI yield of 6.8%. The portfolio consists of nine buildings totaling 258,082 square feet that are currently 96.9% leased to 23 tenants with a weighted average lease term of approximately 2.75 years. The Company has a second tranche of this por ...

BOSTON, Dec. 13, 2024 (GLOBE NEWSWIRE) -- Plymouth Industrial REIT, Inc. (NYSE: PLYM) (the “Company”) today announced that its board of directors has declared a regular quarterly cash dividend of $0.24 per share of common stock for the fourth quarter of 2024. The dividend, which equates to an annualized rate of $0.96 per common share, is payable on January 31, 2025, to stockholders of record as of the close of business on December 31, 2024. About Plymouth Plymouth Industrial REIT, Inc. (NYSE: PLYM) is a fu ...

I rate Plymouth Industrial REIT (NYSE: PLYM ) as a Sell, for income-seeking investors who are looking for long-term buy and hold investments. The most important factors that influence my opinion of the stock are a Q3 Earnings miss that ledDavid A. Johnson is founder and principal of Endurance Capital Management, a New Jersey Limited Liability Company. As an investor entrepreneur, David invests in stocks, bonds, options, ETFs, REITs, real estate, closed end funds and alternative investment funds such as hedg ...

Portfolio and Leasing - The company owns 158 industrial properties comprising 223 buildings with an aggregate of approximately 34.9 million square feet as of September 30, 2024[104] - The company's portfolio was approximately 94.2% occupied as of September 30, 2024[108] - 37.0% of the annualized base rent leases in the company's portfolio are scheduled to expire between October 1, 2024, and December 31, 2026[109] - Renewals accounted for 73.1% of total square footage with a 13.0% increase in rent, while new leases accounted for 26.9% with a 27.3% increase in rent during the nine months ended September 30, 2024[110] - The company's rental revenue depends on occupancy levels, lease rates, and the ability to lease available space, with property expenses partially controlled by triple net or modified gross lease expense reimbursement provisions[112] Investment Strategy and Diversification - The company is evaluating diversifying its portfolio to include mortgage, bridge, or mezzanine loans collateralized by properties that meet investment criteria similar to its existing real estate portfolio[105] - The company's core investment strategy focuses on acquiring industrial properties in primary and secondary markets across the U.S., aiming for attractive initial yields and strong cash-on-cash returns[106] - The company intends to pursue joint venture arrangements with institutional partners, which could provide management fee income, residual profit-sharing income, and the ability to purchase properties out of the joint venture over time[107] Financial Performance and Metrics - Net income for the three months ended September 30, 2024, was a loss of $15,345, compared to a gain of $10,400 in the same period in 2023, representing a 247.5% decrease[118] - Rental revenue increased by $1,696 to $51,432 for the three months ended September 30, 2024, compared to $49,736 in 2023, driven by a $787 increase in the Same Store Portfolio and a $909 increase in Acquisitions, Dispositions, and Other[118] - Property expenses increased by $1,620 to $17,374 for the three months ended September 30, 2024, compared to $15,754 in 2023, primarily due to a $1,235 increase in the Same Store Portfolio[118] - Depreciation and amortization expense decreased by $1,871 to $21,010 for the three months ended September 30, 2024, compared to $22,881 in 2023, mainly due to a $2,332 decrease in the Same Store Portfolio[118] - Total revenues for the nine months ended September 30, 2024, increased by $1,721 to $150,785, compared to $149,064 in 2023, with a 1.7% increase in the Same Store Portfolio[122] - Property expenses for the nine months ended September 30, 2024, decreased by $187 to $47,585, compared to $47,398 in 2023, with a $980 increase in the Same Store Portfolio offset by a $793 decrease in Acquisitions, Dispositions, and Other[122] - Net income for the nine months ended September 30, 2024, was a loss of $7,731, compared to a gain of $4,430 in 2023, representing a 274.5% decrease[122] - Interest expense increased by $776 to $29,368 for the nine months ended September 30, 2024, compared to $28,592 in 2023[122] - Loss on financing transaction for the nine months ended September 30, 2024, was $14,657, compared to no loss in 2023[122] - Gain on sale of real estate decreased by $3,467 to $8,645 for the nine months ended September 30, 2024, compared to $12,112 in 2023[122] - Depreciation and amortization expense decreased by $5,373 to $64,725 for the nine months ended September 30, 2024, compared to $70,098 for the same period in 2023, primarily due to a net decrease of $5,251 for the Same Store Portfolio and $122 within Acquisitions, Dispositions, and Other[123] - General and administrative expenses increased by $240 to $10,826 for the nine months ended September 30, 2024, compared to $10,586 for the same period in 2023, primarily due to an increase in professional fees of $213[123] - Gain on sale of real estate was $8,645 for the nine months ended September 30, 2024, including a net gain of $7,796 from a tenant's purchase option and $849 from the sale of a 221,911 square foot property in Kansas City, MO[124] - Loss on financing transaction for the nine months ended September 30, 2024, was $18,746, partially offset by a net unrealized gain of $15,437 due to changes in the fair market value of Warrants and Forward contract assets[124] - Net operating income (NOI) for the nine months ended September 30, 2024, was $102,686, compared to $101,608 for the same period in 2023[127] - EBITDAre for the nine months ended September 30, 2024, was $92,374, compared to $91,080 for the same period in 2023[129] - Funds from operations (FFO) is a non-GAAP measure used to evaluate the operating performance of the company's property portfolio, excluding non-cash items such as depreciation[129] - Core FFO adjusts FFO for items such as dividends paid to preferred stockholders, acquisition-related expenses, and non-cash operating expenses, providing a more consistent comparison of operating performance[131] - Net income (loss) for the three months ended September 30, 2024 was $(15.345 million), compared to $10.4 million in the same period in 2023[132] - FFO (Funds From Operations) for the nine months ended September 30, 2024 was $48.349 million, compared to $62.416 million in the same period in 2023[132] - Core FFO for the nine months ended September 30, 2024 was $62.58 million, compared to $60.064 million in the same period in 2023[132] - AFFO (Adjusted Funds From Operations) for the nine months ended September 30, 2024 was $61.242 million, compared to $54.818 million in the same period in 2023[133] - Net cash provided by operating activities for the nine months ended September 30, 2024 decreased by $9.214 million to $54.045 million, compared to $63.259 million in the same period in 2023[135] - Net cash used in investing activities for the nine months ended September 30, 2024 increased by $79.89 million to $(88.201 million), primarily due to an increase in real estate acquisitions of $101.387 million[135] Liquidity and Debt - As of September 30, 2024, the company had available liquidity of approximately $179.8 million, including $26.2 million in cash and $153.6 million in borrowing capacity[136] - Total secured debt as of September 30, 2024 was $243.668 million, with interest rates ranging from 2.97% to 4.35%[138] - Total unsecured debt as of September 30, 2024 was $448.465 million, with interest rates ranging from 3.00% to 4.40%[138] - The company has $750 million available for issuance under the 2024 $750 Million S-3 Filing and $200 million available under the 2024 $200 Million ATM Program[139][140] - The company has $646,400 thousand of outstanding variable rate debt as of September 30, 2024, with all but $96,400 thousand fixed through interest rate swaps[144] - The fair value of five interest rate swaps is approximately $13.2 million in an asset position, while three swaps are in a liability position of approximately $1.1 million as of September 30, 2024[144] - The company estimates an additional $10,653 thousand will be reclassified as a decrease to interest expense over the next twelve months[144] - The KeyBank unsecured line of credit had a weighted average interest rate of 6.85% during the nine months ended September 30, 2024, with $100,000 thousand of its $196,400 thousand balance fixed through interest rate swaps[144] - A 25 basis point increase in the average interest rate on weighted average borrowings would have increased the company's interest expense by approximately $76 thousand for the nine months ended September 30, 2024[144] - The company has entered into eight interest rate swap agreements as of September 30, 2024, with notional values ranging from $25,000 thousand to $200,000 thousand[143][144] - Derivative valuations are classified in Level 2 of the fair value hierarchy, with credit valuation adjustments utilizing Level 3 inputs but deemed insignificant to overall valuation[144] - The company uses interest rate swap agreements to manage interest rate risk, with changes in fair value either offset against hedged items or recognized in other comprehensive income[143] - The ineffective portion of a derivative's change in fair value is immediately recognized in earnings[143] - Market risk, particularly interest rate risk, is the primary market risk the company is exposed to, managed through derivative financial instruments like interest rate swaps[145] Accounting and Valuation - The company's critical accounting estimates include the valuation of warrant liability using a Monte Carlo model, with changes in fair value recorded in the condensed consolidated statement of operations each reporting period[114] - The company classifies conditionally redeemable preferred units as mezzanine equity and adjusts the carrying value to the redemption value if redemption is probable[116]

Financial Data and Key Metrics Changes - The company announced a refinancing and upsizing of its unsecured credit facilities to $1.5 billion, enhancing its borrowing capacity [9] - The company faced tenant challenges during the quarter, impacting leasing but expects to resolve these issues and improve leasing momentum [10][11] Business Line Data and Key Metrics Changes - The company completed the acquisition of the Memphis portfolio during the quarter and has another portfolio under contract in Cincinnati, indicating active expansion efforts [11][21] - The pursuit pipeline is over 11 million square feet and valued at over $1 billion, primarily in existing markets [12][22] Market Data and Key Metrics Changes - The national vacancy rate is reported at 6.4%, with a long-term average of 7%, indicating a relatively stable market environment [33] - The company noted a significant reduction in construction activity, with only 300 million square feet delivered this year, the lowest since 2018 [34] Company Strategy and Development Direction - The company is focused on leasing opportunities and capital deployment for the remainder of 2024 and throughout 2025 [10] - The strategic partnership with Sixth Street is viewed as transformative, providing capital for acquisitions and enhancing the company's growth potential [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming tenant challenges and achieving strong growth in 2025, with a focus on leasing up properties in Cleveland and St. Louis [10][35] - The company anticipates a positive outlook for the industrial sector, with expectations of increased leasing activity post-election [54][56] Other Important Information - The company is actively pursuing legal action against former tenants in Cleveland to recover unpaid rent and is working on backfilling vacancies [14][17] - Management highlighted the importance of tenant health monitoring and swift action in response to tenant issues [20][30] Q&A Session Summary Question: Can you elaborate on the tenant issues in Cleveland? - Management detailed two tenant issues in Cleveland, including an eviction due to non-payment and a new tenant identified for one of the properties [14][15] Question: What lessons have been learned regarding tenant credit monitoring? - Management acknowledged the need for more rigorous credit monitoring, especially for newer industries, and indicated a shift in strategy for future transactions [26] Question: What is the expected growth for next year? - Management is optimistic about significant growth in 2025, citing ongoing leasing efforts and a strong pipeline of opportunities [35][36] Question: Can you provide updates on the Memphis acquisition and tenant retention? - Management confirmed that the vacated space by Accredo Health was known and is being converted back to industrial space [38] Question: How is the leasing activity expected to change post-election? - Management noted a slowdown in leasing activity leading up to the election but anticipates a pickup in interest and decisions from potential tenants [54][56]

Plymouth Industrial (PLYM) came out with quarterly funds from operations (FFO) of $0.44 per share, missing the Zacks Consensus Estimate of $0.48 per share. This compares to FFO of $0.46 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of -8.33%. A quarter ago, it was expected that this company would post FFO of $0.47 per share when it actually produced FFO of $0.48, delivering a surprise of 2.13%.Over the last four quarters, the compan ...

THIRD QUARTER 2024 Plymouth REIT Supplemental Information Q3 2024 Supplemental | 1 Table of Contents LYMOUTH REIT | --- | --- | |----------------------------------------------------------------------------------------------------|-------| | Table of Contents | | | Executive Summary | 4 | | Company Overview, Management, Board of Directors, and Investor Relations | 4 | | Portfolio Snapshot | 5 | | Total Acquisition and Replacement Cost by Market | 5 | | Acquisition Activity | 6 | | Development Projects | 7 | ...