PART I. FINANCIAL INFORMATION Financial Statements The unaudited condensed consolidated financial statements detail the company's financial position and performance as of and for the periods ended June 30, 2021 Condensed Consolidated Balance Sheets Total assets grew while total liabilities decreased from year-end 2020, resulting in a significant increase in total equity Condensed Consolidated Balance Sheets (in thousands) | | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Total Assets | $969,828 | $920,270 | | Real estate properties, net | $842,097 | $788,398 | | Total Liabilities | $561,343 | $581,054 | | Secured debt, net | $326,585 | $328,908 | | Borrowings under line of credit | $68,000 | $90,000 | | Total Equity | $269,189 | $203,522 | Condensed Consolidated Statements of Operations Total revenues grew significantly for both the second quarter and first half of 2021, though the net loss attributable to common stockholders widened slightly for the quarter Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Q2 2021 | Q2 2020 | Six Months 2021 | Six Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $32,855 | $26,137 | $64,771 | $52,366 | | Net Loss | ($3,981) | ($3,885) | ($6,965) | ($8,157) | | Net Loss Attributable to Common Stockholders | ($7,417) | ($7,173) | ($13,852) | ($14,743) | | Net Loss Per Share (Basic & Diluted) | ($0.25) | ($0.49) | ($0.49) | ($1.02) | Condensed Consolidated Statements of Cash Flows Operating cash flow increased year-over-year, while significant investing and financing activities were driven by property acquisitions and stock issuance Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity (Six Months Ended June 30) | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $26,617 | $20,551 | | Net cash used in investing activities | ($81,537) | ($92,272) | | Net cash provided by financing activities | $52,180 | $78,569 | | Net (decrease) increase in cash | ($2,740) | $6,848 | Notes to Condensed Consolidated Financial Statements Notes detail key activities including property acquisitions, asset sales, and significant capital raising through common stock issuances - As of June 30, 2021, the Company owned 113 industrial properties comprising 147 buildings with an aggregate of approximately 24.8 million square feet19 - During the first six months of 2021, the Company acquired 7 properties totaling 1.6 million square feet for an aggregate purchase price of $75.05 million44 - In H1 2021, the Company issued 5,530,648 shares of common stock under its ATM programs, resulting in net proceeds of approximately $91.1 million66 - Subsequent to the quarter end, the company acquired three industrial properties in Memphis, Tennessee in two separate transactions in July 2021 for a total of $15.5 million88 Management's Discussion and Analysis of Financial Condition and Results of Operations Management's analysis attributes revenue growth to property acquisitions, notes minimal COVID-19 impact, and highlights strong liquidity and growth in non-GAAP measures Overview and Strategy The company's strategy focuses on acquiring and managing industrial properties in primary and secondary U.S. markets, utilizing joint ventures for value-add opportunities - The Company's core investment strategy is to acquire industrial properties located in primary and secondary markets across the U.S., believing these markets offer less volatility and competition9798 - The company intends to continue pursuing joint venture arrangements with institutional partners for opportunistic or value-add investments, which may include development or redevelopment strategies99 Results of Operations Operating results show significant revenue growth for Q2 and H1 2021, driven by both acquisitions and positive performance from the Same Store Portfolio Comparison of Q2 2021 and Q2 2020 | Metric (Q2 2021 vs Q2 2020) | Total Portfolio | Same Store Portfolio | Acquisitions, Dispositions & Other | | :--- | :--- | :--- | :--- | | Total Revenues | +25.7% | +4.5% | +184.5% | | Property Expenses | +21.2% | +10.4% | +105.0% | Comparison of H1 2021 and H1 2020 | Metric (H1 2021 vs H1 2020) | Total Portfolio | Same Store Portfolio | Acquisitions, Dispositions & Other | | :--- | :--- | :--- | :--- | | Total Revenues | +23.7% | +2.7% | +210.1% | | Property Expenses | +24.0% | +11.1% | +156.8% | Supplemental Earnings Measures (Non-GAAP) Key non-GAAP metrics such as NOI, Core FFO, and AFFO all demonstrated substantial year-over-year growth for both the second quarter and first half Non-GAAP Financial Measures (in thousands) | Metric | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | | :--- | :--- | :--- | :--- | :--- | | NOI | $21,818 | $17,111 | $42,225 | $34,329 | | EBITDAre | $18,382 | $14,535 | $35,590 | $29,231 | | Core FFO | $12,313 | $8,022 | $23,504 | $16,234 | | AFFO | $9,798 | $6,997 | $18,766 | $14,019 | Liquidity and Capital Resources The company maintained a strong liquidity position supported by cash reserves, credit availability, and successful capital raising through its ATM programs - As of June 30, 2021, the Company had available liquidity of approximately $156.8 million, comprised of $24.8 million in cash and cash equivalents and $132 million available on its line of credit147 - During H1 2021, the Company issued 5,530,648 shares of common stock under its ATM programs for aggregate net proceeds of approximately $91.1 million153 Quantitative and Qualitative Disclosures about Market Risk The company's primary market risk is interest rate exposure on its variable-rate debt, with a hypothetical 100 basis point increase impacting interest expense - The company is exposed to market risk from changes in interest rates, primarily related to its variable-rate borrowings157 - At June 30, 2021, the company had $168 million of outstanding variable rate debt, and a hypothetical 100 basis point increase in the average interest rate would have increased interest expense by approximately $459,000 for the six months ended June 30, 2021158 Controls and Procedures Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2021161 - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2021, that have materially affected, or were reasonably likely to materially affect, internal controls162 PART II. OTHER INFORMATION This section confirms the absence of material legal proceedings, unregistered equity sales, or defaults, and lists the exhibits filed with the report Legal Proceedings The company is not subject to any material litigation beyond routine matters in the ordinary course of business - Other than routine litigation arising out of the ordinary course of business, the company is not presently subject to any material litigation164 Unregistered Sales of Equity Securities and Use of Proceeds There were no unregistered sales of equity securities during the reporting period - None165 Defaults Upon Senior Securities There were no defaults upon senior securities during the reporting period - None166 Exhibits This section lists filed exhibits, including the Distribution Agreement, CEO/CFO certifications, and Inline XBRL financial data - The report includes exhibits such as the Distribution Agreement dated May 26, 2021, CEO/CFO certifications, and financial information formatted in Inline XBRL169
Plymouth Industrial REIT(PLYM) - 2021 Q2 - Quarterly Report