PART I. FINANCIAL INFORMATION This part provides the unaudited condensed consolidated financial statements and management's discussion and analysis for the reporting period Financial Statements This section presents the unaudited condensed consolidated financial statements for Plymouth Industrial REIT, Inc. as of March 31, 2021, and for the three months ended March 31, 2021 and 2020 Condensed Consolidated Balance Sheets The balance sheet shows an increase in total assets to $961.8 million as of March 31, 2021, from $920.3 million at year-end 2020, primarily driven by growth in real estate properties Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Total Assets | $961,829 | $920,270 | | Real estate properties, net | $832,415 | $788,398 | | Cash, cash held in escrow, and restricted cash | $28,163 | $32,054 | | Total Liabilities | $590,122 | $581,054 | | Secured debt, net | $327,752 | $328,908 | | Borrowings under line of credit | $98,000 | $90,000 | | Total Equity | $234,218 | $203,522 | Condensed Consolidated Statements of Operations For the three months ended March 31, 2021, total revenues increased to $31.9 million from $26.2 million in the prior-year period, with a narrowed net loss Statements of Operations Highlights (in thousands, except per share data) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Total Revenues | $31,916 | $26,229 | | Total Operating Expenses | $30,212 | $25,630 | | Net Loss | $(2,984) | $(4,272) | | Net Loss Attributable to Common Stockholders | $(6,435) | $(7,570) | | Net Loss per Share (basic and diluted) | $(0.24) | $(0.53) | Condensed Consolidated Statements of Cash Flows Net cash provided by operating activities significantly increased to $14.8 million, while investing activities used $61.1 million, and financing provided $42.4 million Cash Flow Summary (in thousands) | Activity | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $14,805 | $6,286 | | Net cash used in investing activities | $(61,071) | $(90,869) | | Net cash provided by financing activities | $42,375 | $103,923 | | Net (decrease) increase in cash | $(3,891) | $19,340 | Notes to Condensed Consolidated Financial Statements These notes detail accounting policies, real estate transactions, debt structure, equity activities, and earnings per share calculations - As of March 31, 2021, the company owned 111 industrial properties comprising 145 buildings with an aggregate of approximately 24.6 million square feet19 - During Q1 2021, the company acquired 5 properties for a total purchase price of $61.0 million and sold one property for approximately $2.0 million, recognizing a net gain of $590,0004345 - In Q1 2021, the company issued 2,883,794 shares of common stock under its ATM program, resulting in net proceeds of approximately $42.5 million65 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's financial condition, operational results, COVID-19 impact, and liquidity, including supplemental earnings measures Overview and COVID-19 Impact The company maintains strong occupancy and rent collection rates, demonstrating operational stability despite the ongoing pandemic - As of March 31, 2021, the company's portfolio consisted of 111 industrial properties with 145 buildings, totaling approximately 24.6 million square feet91 - The company collected approximately 99.0% of recurring base rents and tenant recoveries for Q1 202197 - Only one COVID-19 related rent deferral was in place as of March 31, 2021, representing just 0.05% of annualized base rent. All deferrals from 2020 were fully repaid97 Results of Operations Total revenues increased by 21.7% due to acquisitions, with Same Store Portfolio revenue growing by 2.0%, leading to a narrowed net loss Total Portfolio Results of Operations (in thousands) | Metric | Q1 2021 | Q1 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenues | $31,916 | $26,229 | 21.7% | | Property Expenses | $11,426 | $9,011 | 26.8% | | Depreciation and Amortization | $15,777 | $14,097 | 11.9% | | Net Loss | $(2,984) | $(4,272) | (30.1%) | - The increase in rental revenue was primarily driven by a $5.1 million contribution from acquisitions made since the beginning of 2020109 - Same Store Portfolio rental revenue increased by 2.0% ($468,000) due to scheduled rent steps, leasing activities, and higher tenant reimbursements109 Supplemental Earnings Measures Net Operating Income, Core FFO, and AFFO all showed significant growth, indicating strong underlying operational performance Reconciliation of Net Loss to NOI (in thousands) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net Loss | $(2,984) | $(4,272) | | Adjustments | $23,391 | $21,490 | | NOI | $20,407 | $17,218 | FFO and Core FFO Reconciliation (in thousands) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net Loss | $(2,984) | $(4,272) | | FFO Adjustments | $15,580 | $14,097 | | FFO | $12,596 | $9,825 | | Core FFO Adjustments | $(1,405) | $(1,613) | | Core FFO | $11,191 | $8,212 | AFFO Reconciliation (in thousands) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Core FFO | $11,191 | $8,212 | | AFFO Adjustments | $(2,224) | $(1,190) | | AFFO | $8,967 | $7,022 | Liquidity and Capital Resources The company maintains $125.6 million in available liquidity, sufficient for short-term obligations, with long-term needs funded through various sources - Total available liquidity as of March 31, 2021 was approximately $125.6 million136 Indebtedness as of March 31, 2021 (in thousands) | Debt Type | Outstanding Balance | | :--- | :--- | | Secured debt, net | $327,752 | | Unsecured debt, net | $99,293 | | Borrowings under line of credit | $98,000 | | Total | $525,045 | - The company has approximately $35.5 million available for issuance under its $100 Million ATM program as of March 31, 2021142 Quantitative and Qualitative Disclosures about Market Risk The company's primary market risk exposure is to changes in interest rates, particularly related to its $198.0 million of variable rate debt outstanding as of March 31, 2021 - The company is exposed to market risk from changes in interest rates on its variable rate debt146 - As of March 31, 2021, the company had $198.0 million of outstanding variable rate debt. A 100 basis point increase in the average interest rate would have increased quarterly interest expense by approximately $436,000147 - As of March 31, 2021, the Company has no derivative or hedging contracts148 Controls and Procedures Management concluded that disclosure controls and procedures were effective, with no material changes in internal control over financial reporting - Based on an evaluation as of March 31, 2021, the CEO and CFO concluded that the company's disclosure controls and procedures were effective151 - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2021, that have materially affected, or were reasonably likely to materially affect, internal controls152 PART II. OTHER INFORMATION This section covers legal proceedings and other required disclosures, including equity sales, defaults, and exhibits Legal Proceedings The company is not currently involved in any material legal proceedings beyond routine business litigation - Other than routine litigation arising out of the ordinary course of business, the company is not presently subject to any material litigation153 Other Items (Items 2-6) This section reports no unregistered equity sales, defaults, or mine safety disclosures, and lists the exhibits filed with the report - The company reported "None" for the following items: Unregistered Sales of Equity Securities and Use of Proceeds (Item 2), Defaults Upon Senior Securities (Item 3), Mine Safety Disclosures (Item 4), and Other Information (Item 5)154155156157 - Item 6 lists the exhibits filed with the Form 10-Q, including officer certifications and XBRL data files159162
Plymouth Industrial REIT(PLYM) - 2021 Q1 - Quarterly Report