Plymouth Industrial REIT(US:PLYM)2025-11-10 21:16Portfolio Overview - As of September 30, 2025, the company wholly owned 148 industrial properties comprising 226 buildings with an aggregate of approximately 32.1 million square feet[180]. - The company's portfolio was approximately 94.7% occupied as of September 30, 2025, which is influenced by market conditions and tenant financial health[188]. - During the period from October 1, 2025, to December 31, 2027, an aggregate of 40.6% of the annualized base rent leases in the company's portfolio are scheduled to expire, presenting an opportunity to increase rents[190]. - New leases executed in the nine months ended September 30, 2025, showed a 14.6% increase in rent per square foot compared to previous leases[192]. Investment Strategy - The core investment strategy focuses on acquiring industrial properties in primary and secondary markets across the U.S., aiming for attractive initial yields and strong ongoing cash-on-cash returns[185]. - The company is evaluating diversifying its portfolio to include mortgage, bridge, or mezzanine loans, which would be collateralized by properties meeting investment criteria similar to its existing assets[181]. - The company intends to pursue joint venture arrangements with institutional partners to generate management fee income and profit-sharing opportunities[187]. - The company believes that systematic aggregation of properties in less competitive markets will lead to a diversified portfolio and sustainable risk-adjusted returns[186]. Financial Performance - Total revenues for the three months ended September 30, 2025, were $51,162, a decrease of $709 or 1.4% from $51,871 in 2024[204]. - Rental revenue decreased by $368 to $51,064 for the three months ended September 30, 2025, compared to $51,432 for the same period in 2024, primarily due to a net decrease of $1,524 within Acquisitions, Dispositions and Other[204]. - Property expenses decreased by $1,867 to $15,507 for the three months ended September 30, 2025, compared to $17,374 for the same period in 2024, primarily due to a decrease of $1,638 within Acquisitions, Dispositions and Other[205]. - General and administrative expenses increased by $252 to $3,834 for the three months ended September 30, 2025, compared to $3,582 in 2024, primarily due to an increase in non-cash compensation[209]. - Interest expense decreased by approximately $921 to $9,438 for the three months ended September 30, 2025, compared to $10,359 in 2024[210]. - Loss in investment of unconsolidated joint ventures was $7,411 for the three months ended September 30, 2025, with no loss reported for the same period in 2024[211]. - Merger transaction expenses amounted to $2,777 for the three months ended September 30, 2025, with no expenses reported in 2024[212]. - Loss on financing transaction for the three months ended September 30, 2025, was $41,361, compared to a loss of $14,657 in 2024, reflecting significant adjustments to fair market value[214]. - Total revenues decreased by $6,848 to $143,937 for the nine months ended September 30, 2025, compared to $150,785 for the same period in 2024, representing a decline of 4.5%[216]. - Rental revenue decreased by $6,731 to $143,540 for the nine months ended September 30, 2025, primarily due to a net decrease of $10,477 from Acquisitions, Dispositions and Other[216]. - Property expenses decreased by $3,634 to $43,951 for the nine months ended September 30, 2025, a reduction of 7.6% compared to $47,585 for the same period in 2024[217]. - General and administrative expenses increased by $2,002 to $12,828 for the nine months ended September 30, 2025, reflecting an increase of 18.5% compared to $10,826 for the same period in 2024[219]. - Interest expense decreased by $5,627 to $23,741 for the nine months ended September 30, 2025, a decline of 19.2% compared to $29,368 for the same period in 2024[220]. - Loss in investment of unconsolidated joint ventures amounted to $22,681 for the nine months ended September 30, 2025, with no loss reported for the same period in 2024[222]. - Gain on sale of real estate was $301 for the nine months ended September 30, 2025, compared to a net gain of $7,796 for the same period in 2024[224]. - Loss on financing transaction for the nine months ended September 30, 2025, was $26,449, compared to an initial loss of $18,746 for the same period in 2024[225]. - Net loss increased to $49,984 for the nine months ended September 30, 2025, compared to a net loss of $7,731 for the same period in 2024, representing a significant increase of 546.5%[216]. - For the three months ended September 30, 2025, the net loss was $52,455,000 compared to a net loss of $15,345,000 for the same period in 2024[230]. - EBITDAre for the three months ended September 30, 2025, was $34,010,000, an increase from $30,915,000 in 2024[230]. - Funds from operations (FFO) for the three months ended September 30, 2025, was $(20,389,000), compared to $5,899,000 in 2024[233]. - Core FFO for the three months ended September 30, 2025, was $21,129,000, slightly up from $20,130,000 in 2024[237]. - Adjusted funds from operations (AFFO) for the three months ended September 30, 2025, was $17,109,000, down from $18,473,000 in 2024[237]. Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2025, was $58,972,000, an increase of approximately $4,927,000 compared to 2024[238]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $(287,151,000), an increase of approximately $198,950,000 compared to 2024[239]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $226,524,000, an increase of $185,016,000 compared to 2024[240]. - As of September 30, 2025, the company had available liquidity of approximately $295.9 million, including $17.8 million in cash and cash equivalents[244]. - The company intends to satisfy its long-term liquidity needs through cash flow from operations, long-term borrowings, and future issuances of equity and debt securities[243]. Debt and Financing - As of September 30, 2025, the total secured debt amounts to $173,977,000 with an average interest rate of 3.57%[245]. - The total unsecured debt is $450,000,000, with the KeyBank Term Loans having interest rates ranging from 3.00% to 4.40%[245]. - The Company has $750,000,000 available for issuance under the 2024 $750 Million S-3 Filing[248]. - The Company has approximately $200,000,000 available for issuance under the 2024 $200 Million ATM Program, but did not issue any shares under this program for the nine months ended September 30, 2025[251]. - The Company has a 35% ownership in an unconsolidated joint venture with a non-recourse debt of approximately $174,054,000, of which the Company's share is about $60,919,000[252]. - As of September 30, 2025, the Company had $671,900,000 of outstanding variable rate debt, with $221,900,000 under the KeyBank unsecured line of credit at a weighted average interest rate of 5.70%[261]. - The Company estimates that an additional $7,082,000 will be reclassified as a decrease to interest expense over the next twelve months[260]. - The fair value of five interest rate swaps was approximately $8.2 million in an asset position, while three were in a liability position of about $0.1 million[258]. - The Company is in compliance with its financial covenants as of September 30, 2025, and anticipates continued compliance for the next twelve months[247]. Economic Outlook - Inflation is expected to remain elevated, but the Company believes that contractual rent increases may offset inflationary impacts[255].