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Plymouth Industrial REIT(PLYM) - 2023 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION ITEM 1. Financial Statements This section presents the unaudited condensed consolidated financial statements for Q1 2023, including balance sheets, statements of operations, comprehensive income, equity, cash flows, and detailed notes Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets Summary | Metric | March 31, 2023 (in thousands) | December 31, 2022 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Assets | | | | Real estate properties, net | $1,341,075 | $1,350,217 | | Cash | $20,396 | $11,003 | | Total assets | $1,506,459 | $1,521,318 | | Liabilities, Preferred Stock and Equity | | | | Total liabilities | $1,003,943 | $998,093 | | Total equity | $455,713 | $476,381 | | Total liabilities, preferred stock and equity | $1,506,459 | $1,521,318 | Condensed Consolidated Statements of Operations Condensed Consolidated Statements of Operations Summary | Metric | Three Months Ended March 31, 2023 (in thousands) | Three Months Ended March 31, 2022 (in thousands) | | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Rental revenue | $49,371 | $42,720 | | Total revenues | $49,400 | $42,806 | | Total operating expenses | $43,201 | $40,318 | | Interest expense | $(9,535) | $(6,395) | | Net loss | $(3,336) | $(4,470) | | Net loss attributable to common stockholders | $(4,304) | $(7,676) | | Net loss basic and diluted per share attributable to common stockholders | $(0.10) | $(0.21) | Condensed Consolidated Statements of Comprehensive Income (Loss) Condensed Consolidated Statements of Comprehensive Income (Loss) Summary | Metric | Three Months Ended March 31, 2023 (in thousands) | Three Months Ended March 31, 2022 (in thousands) | | :---------------------------------------------------- | :---------------------------------------------------- | :---------------------------------------------------- | | Net loss | $(3,336) | $(4,470) | | Unrealized gain (loss) on interest rate swaps | $(7,070) | $10,068 | | Comprehensive income (loss) | $(10,406) | $5,598 | | Comprehensive income (loss) attributable to Plymouth Industrial REIT, Inc. | $(10,287) | $5,523 | Condensed Consolidated Statements of Changes in Preferred Stock and Equity - For the three months ended March 31, 2023, total stockholders' equity decreased from $471.0 million to $450.6 million, primarily due to dividends and distributions ($10.60 million) and other comprehensive income adjustments ($6.99 million)17 - The number of common shares issued and outstanding increased from 42,849,489 at December 31, 2022, to 43,030,864 at March 31, 202317 Condensed Consolidated Statements of Cash Flows Condensed Consolidated Statements of Cash Flows Summary | Cash Flow Activity | Three Months Ended March 31, 2023 (in thousands) | Three Months Ended March 31, 2022 (in thousands) | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Net cash provided by operating activities | $18,602 | $14,288 | | Net cash used in investing activities | $(8,968) | $(137,447) | | Net cash provided (used in) by financing activities | $(2,415) | $122,054 | | Net (decrease) increase in cash, cash held in escrow, and restricted cash | $7,219 | $(1,105) | | Cash, cash held in escrow, and restricted cash at end of period | $38,432 | $42,269 | Notes to Condensed Consolidated Financial Statements 1. Nature of the Business and Basis of Presentation - Plymouth Industrial REIT, Inc. operates as an UPREIT, owning and managing 157 industrial properties (210 buildings, 34.2 million square feet) focused on distribution, warehouses, and light industrial in primary and secondary U.S. markets2122 - The Company owned a 98.9% equity interest in its Operating Partnership as of March 31, 2023, and December 31, 202221 2. Summary of Significant Accounting Policies - The financial statements are prepared in accordance with U.S. GAAP, consolidating wholly-owned entities and VIEs where the Company is the primary beneficiary (e.g., the Operating Partnership)232425 - Management makes significant estimates for real estate acquisitions, impairments, and stock-based compensation, which are evaluated continuously27 - Derivative instruments are recorded at fair value on the balance sheet, with changes in fair value accounted for based on hedge designation (fair value or cash flow hedges)32 - The Company has one reportable segment: industrial properties42 3. Real Estate Properties, Net Real Estate Properties Breakdown | Category | March 31, 2023 (in thousands) | December 31, 2022 (in thousands) | | :------------------------ | :----------------------------- | :----------------------------- | | Land | $231,829 | $231,829 | | Buildings and improvements | $1,175,037 | $1,141,832 | | Construction in progress | $24,332 | $49,890 | | Total real estate properties | $1,563,493 | $1,555,846 | | Less: accumulated depreciation | $(222,418) | $(205,629) | | Real estate properties, net | $1,341,075 | $1,350,217 | - Depreciation expense for the three months ended March 31, 2023, was $16.87 million, up from $14.39 million in the prior year period45 - There were no acquisitions of properties during the three months ended March 31, 202346 4. Leases Rental Revenue Components | Rental Revenue Component | Three Months Ended March 31, 2023 (in thousands) | Three Months Ended March 31, 2022 (in thousands) | | :----------------------------- | :------------------------------------------ | :------------------------------------------ | | Income from leases | $35,940 | $30,584 | | Straight-line rent adjustments | $912 | $822 | | Tenant recoveries | $11,785 | $9,768 | | Amortization of below market leases | $904 | $1,712 | | Total Rental Revenue | $49,371 | $42,720 | - As a lessee, the Company has five office space operating leases and a single ground operating sublease, with total operating right of use assets of approximately $5.49 million and lease liabilities of $6.59 million as of March 31, 2023[49](