PLYM Plymouth Industrial REIT Inc

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

November 6, 2024

Date of Report (Date of earliest event reported)

PLYMOUTH INDUSTRIAL REIT, INC.

(Exact Name of Registrant as Specified in Its Charter)

Maryland		001-38106		27-5466153
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

20 Custom House Street, 11th Floor

Boston, MA 2110

(Address of Principal Executive Offices) (Zip Code)

(617) 340-3814

(Registrant’s Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share	PLYM	New York Stock Exchange

Item 2.02

Results of Operations and Financial Condition.

 

On November 6, 2024, Plymouth Industrial REIT, Inc. (the “Company”) issued a press release (the “Earnings Release”) announcing, among other things, earnings for the period ended September 30, 2024. The text of the Earnings Release is included as Exhibit 99.1 to this Current Report on Form 8-K.

 

The information presented in Item 2.02 and Exhibit 99.1 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information presented in this Current Report on Form 8-K shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

Item 7.01

Regulation FD Disclosure.

 

On November 6, 2024, the Company disclosed a supplemental analyst package (the “Supplemental Analyst Package”) and prepared commentary (the “Prepared Commentary”) in connection with its earnings conference call for the period ended September 30, 2024, which is scheduled to take place on November 7, 2024. Copies of the Supplemental Analyst Package and the Prepared Commentary are attached hereto as Exhibits 99.2 and 99.3 to this Current Report on Form 8-K.

 

The information presented in Item 7.01, and Exhibits 99.2 and 99.3 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section. The information presented in this Current Report on Form 8-K shall not be incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01

Financial Statements and Exhibits.

 

(d)

Exhibits:

 

	Exhibit No.		Description
	99.1		Press Release dated November 6, 2024 (furnished only)
	99.2		Supplemental Analyst Package – Third Quarter 2024
	99.3		Third Quarter 2024 Prepared Commentary
	104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

				PLYMOUTH INDUSTRIAL REIT, INC.
Date: November 6, 2024				By:		/s/ Jeffrey E. Witherell
						Jeffrey E. Witherell
						Chief Executive Officer

 

Exhibit 99.1

 

 

 

PLYMOUTH INDUSTRIAL REIT REPORTS THIRD QUARTER 2024 RESULTS

BOSTON, November 6, 2024 – Plymouth Industrial REIT, Inc. (NYSE: PLYM) (the “Company”) today announced its financial results for the third quarter ended September 30, 2024, and other recent developments.

Third Quarter and Subsequent Highlights

·

Reported results for the third quarter of 2024 reflect net loss attributable to common stockholders of $(0.35) per weighted average common share; Core Funds from Operations attributable to common stockholders and unit holders (“Core FFO”) of $0.44 per weighted average common share and units; and Adjusted FFO (“AFFO”) of $0.40 per weighted average common share and units.

·

Same store NOI (“SS NOI”) decreased 1.2% on a GAAP basis excluding early termination income for the third quarter compared with the same period in 2023; increased 0.6% on a cash basis excluding early termination income.

·

Through November 4, 2024, executed leases scheduled to commence during 2024, which includes the third quarter activity, total an aggregate of 5,783,332 square feet, all of which are associated with terms of at least six months. The Company will experience a 17.2% increase in rental rates on a cash basis from these leases.

·

Brought the 772,622-square-foot development program to 100% leased.

·

Announced a strategic transaction with Sixth Street Partners, LLC (“Sixth Street”) to provide approximately $500 million of capital to pursue acquisitions.

·

Acquired a 14-building portfolio of industrial properties totaling 1.6 million square feet in Memphis for $100.5 million with an initial NOI yield of 8.0%.

·

Refinanced and upsized unsecured aggregate borrowing capacity to $1.5 billion with the refinance of the unsecured revolving credit facility to $500 million and the recast of the $100 million 2026 term loan.

·

Paid the regular quarterly cash dividend for the third quarter of 2024 of $0.24 per share for the common stock, or an annualized rate of $0.96 per share.

·

Adjusted the full year 2024 guidance range for net income per weighted average common share and units to $2.99 to $3.01 and Core FFO per weighted average common share and units to $1.83 to $1.85 as well as its range and accompanying assumptions.

 

Jeff Witherell, Chief Executive Officer and Co-Founder of Plymouth, noted, “We are very focused on our remaining leasing opportunities for 2024 and ensuring that we deliver on organic growth in 2025. The one-time impact from two tenants we were forced to evict weighed heavily on same-store NOI, occupancy and earnings this quarter. With remediation and leasing plans in place on these assets, along with 76% of our 2024 lease expirations and 43% of our 2025 expirations already addressed, we expect to exit 2024 with the right velocity.”

 

"The Memphis portfolio acquisition in July and the completion later this month of our development program at 100% leased have added new sources of growth for 2025. The recent Sixth Street transaction aligned us with a strategic partner that recognizes the attractive opportunity in our markets and provided up to $500 million of additional capital to deploy into our robust investment pipeline.”

 

Financial Results for the Third Quarter of 2024

 

Net loss attributable to common stockholders for the quarter ended September 30, 2024, was $15.7 million, or $(0.35) per weighted average common share outstanding, compared with net income attributable to common stockholders of $7.5 million, or $0.17 per weighted average common share outstanding, for the same period in 2023. Net income declined year-over-year primarily due to non-recurring items including the gain on sale of real estate recognized during the third quarter of 2023 of $12.1 million, loss on financing transaction associated with the Sixth Street transaction of $14.7 million, the impact of the previously announced St. Louis and Cleveland vacancies of $1.4 million, increased interest expense primarily due to additional line of credit draws for the Memphis acquisition completed in July 2024 of $0.9 million, a reduction in GAAP rent adjustments primarily due to reduced free rent abatements, coupled with the continued burn off of below market rent amortization of $0.6 million, partially offset by NOI contribution from the Memphis acquisition of $1.8 million and decrease in depreciation and amortization expense of $1.9 million. Weighted average common shares outstanding for the third quarters ended September 30, 2024, and 2023 were 45.0 million and 44.1 million, respectively.

 

Consolidated total revenues for the quarter ended September 30, 2024, were $51.9 million, compared with $49.8 million for the same period in 2023, primarily due to the contribution from the Memphis acquisition of $2.8 million and a net increase in base rents of $0.9 million, partially offset by the impact of the previously announced St. Louis and Cleveland vacancies of $1.4 million, a reduction in GAAP rent adjustments primarily due to reduced free rent abatements, coupled with the continued burn off of below market rent amortization of $0.6 million.

 

NOI for the quarter ended September 30, 2024, was $34.1 million compared with $34.0 million for the same period in 2023. SS NOI excluding early termination income – GAAP basis for the quarter ended September 30, 2024, was $30.8 million compared with $31.2 million for the same period in 2023, a decrease of 1.2%. SS NOI excluding early termination income – Cash basis for the quarter ended September 30, 2024, was $30.8 million compared with $30.6 million for the same period in 2023, an increase of 0.6%. SS NOI for the third quarter was negatively impacted by the previously announced Cleveland vacancies of $0.7 million, a reduction in GAAP rent adjustments primarily due to reduced free rent abatements, coupled with the continued burn off of below market rent amortization of $0.6 million and an increase in operating expenses of $1.2 million, partially offset by increased tenant recoveries of $0.7 million and scheduled rent increases of $1.4 million. The same store portfolio is comprised of 200 buildings totaling 31.2 million square feet, or 89.5% of the Company’s total portfolio and was 97.5% occupied as of September 30, 2024.

 

EBITDAre for the quarter ended September 30, 2024, was $30.9 million compared with $30.7 million for the same period in 2023.

 

Core FFO for the quarter ended September 30, 2024, was $20.1 million compared with $20.6 million for the same period in 2023, primarily due to increased interest expense of $0.9 million, the impact of the previously announced St. Louis and Cleveland vacancies of $1.4 million, a reduction in GAAP rent adjustments primarily due to reduced free rent abatements, coupled with the continued burn off of below market rent amortization of $0.6 million, partially offset by NOI contribution from the Memphis acquisition of $1.8 million and net reduced dividends on preferred stock of $0.3 million. The Company reported Core FFO for the quarter ended September 30, 2024, of $0.44 per weighted average common share and unit compared with $0.46 per weighted average common share and unit for the same period in 2023. Weighted average common shares and units outstanding for the third quarters ended September 30, 2024, and 2023 were 45.9 million and 44.9 million, respectively.

 

AFFO for the quarter ended September 30, 2024, was $18.5 million, or $0.40 per weighted average common share and unit, compared with $19.0 million, or $0.42 per weighted average common share and unit, for the same period in 2023. The results reflected the aforementioned changes in Core FFO and an increase in recurring capital expenditures related to leasing activity executed during the quarter.

 

See “Non-GAAP Financial Measures” for complete definitions of NOI, EBITDAre, Core FFO and AFFO and the financial tables accompanying this press release for reconciliations of net income to NOI, EBITDAre, Core FFO and AFFO.

 

Liquidity

As of November 4, 2024, the Company’s current cash balance was approximately $12.9 million, excluding operating expense escrows of approximately $5.1 million, and it has approximately $153.6 million of capacity under the existing unsecured line of credit.

 

The Company refinanced and upsized its unsecured credit facility borrowing capacity from $1.0 billion to $1.5 billion. The refinanced revolver was increased from $350.0 to $500.0 million, and the $100.0 million 2026 term loan was recast. The maturity was extended on the revolver to November 2028, and the 2026 term loan to November 2028, both with one-year extensions, subject to certain conditions. The other two term loans under the facility, which aggregate to $350.0 million and are scheduled to mature in 2027, remain unchanged.

 

Investment Activity

As of September 30, 2024, the Company had real estate investments comprised of 223 industrial buildings totaling 34.9 million square feet.

 

The final project in the first phase of Plymouth’s development program, a 52,920-square-foot, fully leased building in Jacksonville, came online October 31, 2024 and cash rents will commence December 1, 2024. During the quarter, the Company signed a 10-year lease for 53,352 square feet at its 154,692-square-foot industrial building in Cincinnati. The lease, which will commence in April 2025 with economic occupancy that began in September 2024, brought the entire development program to 100% leased.

During the quarter, Plymouth acquired a 1,621,241-square-foot portfolio of industrial properties located across the Southeast and Northeast submarkets of Memphis, Tennessee. The purchase price of $100.5 million equates to an initial NOI yield of 8.0%. The portfolio consists of 14 buildings that are currently 94.0% leased to 46 tenants with a weighted average remaining lease term of approximately 3.4 years.

During the quarter, Plymouth completed the previously announced sale of its 527,127-square-foot industrial property in Columbus, Ohio, to the tenant for approximately $21.1 million in net proceeds.

 

Sixth Street Chicago Joint Venture and Related Transactions

During the quarter, Plymouth entered into a transaction that includes a $256.0 million investment from Sixth Street in the form of a recapitalization joint venture relating to 34 of the Company’s wholly-owned properties in the Chicago area (the “Chicago JV”). The Sixth Street proceeds include approximately $116.0 million in gross proceeds for a 65% interest in the Chicago JV and $140.0 million in gross proceeds from the issuance of non-convertible Series C Cumulative Preferred Units (the “Preferred”) at a rate of 7%, of which approximately $61.0 million was drawn at closing in August 2024.

 

As previously disclosed, the Chicago JV with Sixth Street is expected to close in November upon obtaining new financing and the refinancing of approximately $57.0 million of existing debt held by the Company outstanding with Transamerica Life Insurance Company and secured by certain Chicago properties. There is an additional approximately $10.5 million of indebtedness secured by a single Chicago property that will be paid in full by the Company upon the closing of the Chicago JV.

 

As of September 30, 2024, the Company reclassified the carrying amount of the Chicago assets that will be contributed to the Chicago JV as real estate assets held for sale, net on the balance sheets and ceased recognizing depreciation on those same assets. Separately, the Company reclassified the net liabilities that will be assumed by the Chicago JV, namely secured debt, as real estate liabilities held for sale, net on the balance sheets. The Company will recognize a gain on sale of real estate in connection with the Chicago JV during the fourth quarter and will recognize its share of earnings (losses) related to its 35% interest in the Chicago JV prospectively in the statements of operations.

 

Simultaneously with the issuance of the Preferred, detached warrants were issued to Sixth Street. As of September 30, 2024, the Company has drawn approximately $61.0 million of the $140.0 million Preferred; no warrants have been exercised. The remaining draw on the Preferred is represented on the balance sheets as a forward contract asset. This asset represents the fair market value (FMV) of the Company’s contractual obligation to draw the remaining approximately $79.0 million of the Preferred. The warrants are reflected at FMV in liabilities on the balance sheets and will be marked to market each reporting period. The warrants, upon exercise, can be net settled in cash or shares of the Company’s common stock at the Company’s sole election.

 

Upon closing in August 2024, the gross proceeds of approximately $61.0 million (the first of two draws on the Preferred) were first allocated to the FMV of the component instruments - the warrants and the forward contract - resulting in the Company recognizing a book loss and recording the Preferred at a nominal amount of $0.01. As of September 30, 2024, the outstanding principal amount associated with the Preferred is $61.0 million plus unpaid cash and accrued dividends of $0.4 million. When filed, the Form 10-Q for the period ended September 30, 2024 will provide additional disclosure on the Chicago JV, Preferred and warrants.

 

Leasing Activity

Leases commencing during the third quarter ended September 30, 2024, totaled an aggregate of 1,095,115 square feet, all of which have terms of at least six months. These leases included 598,858 square feet of renewal leases and 496,257 square feet of new leases. Rental rates under these leases reflect a 12.2% increase on a cash basis with renewal leases reflecting a 9.1% increase on a cash basis and new leases reflecting a 15.7% increase on a cash basis. Total portfolio occupancy at September 30, 2024 was 94.2% and reflects a 230-basis-point impact from the previously announced St. Louis vacancy, a 20-basis-point impact from the inclusion of the recently acquired Memphis value-add portfolio, and a 30-basis-point impact from net leasing activity in the quarter.

Executed leases scheduled to commence during 2024, which includes activity through November 4, 2024, all have terms of at least six months and represent an aggregate of 5,783,332 square feet. These leases, which represent 75.5% of total 2024 expirations, include 4,180,593 square feet of renewal leases (21.1% of these renewal leases were associated with contractual renewals; there are no remaining 2024 contractual renewals) and 1,602,739 square feet of new leases, of which 138,924 square feet was vacant at the start of 2024. The total square footage of new leases commenced excludes 160,292 square feet of development leasing completed in 2024. Rental rates under these leases reflect a 17.2% increase on a cash basis with renewal leases reflecting a 12.8% increase in rental rates on a cash basis and new leases reflecting a 28.3% increase on a cash basis.

 

Other notable leasing activity during the third quarter among Plymouth’s top tenants include a one-year extension executed for 566,281 square feet in Memphis to December 31, 2025, that will commence in the first quarter of 2025 and a five-year extension executed for 327,194 square feet in Chicago to October 31, 2029, that will commence in the fourth quarter of 2024.

Quarterly Distributions to Stockholders

On September 13, 2024, the Board of Directors declared a regular quarterly common stock dividend of $0.24 per share for the third quarter of 2024. The dividend, which equates to an annualized rate of $0.96 per common share, was paid on October 31, 2024, to stockholders of record as of the close of business on September 30, 2024.

 

Guidance for 2024

Plymouth adjusted its full year 2024 guidance ranges for net income and Core FFO per weighted average common share and units and adjusted its accompanying assumptions, which can be found in the tables below. The adjustment to the full year 2024 ranges is primarily attributed to delayed lease commencements, namely with respect to the previously disclosed buildings in Chicago and Cleveland (and non-recoverable charges associated with the vacancy of one of these buildings), the remaining development space in Cincinnati, coupled with transitory vacancy in five buildings across three markets, and the projected impact from the Sixth Street transaction.

 

 

(Dollars, shares and units in thousands, except per-share amounts)		Full Year 2024 Range1
		Low				High
Core FFO attributable to common stockholders and unit holder per share		$	1.83			$	1.85
Same Store Portfolio NOI growth – cash basis2			5.00%				5.25%
Average Same Store Portfolio occupancy – full year			97.0%				97.5%
General and administrative expenses3		$	15,000			$	14,600
Interest expense, net		$	38,250			$	37,750
Weighted average common shares and units outstanding4			45,880				45,880

 

 

Reconciliation of net income attributable to common stockholders and unit holders per share to Core FFO guidance:

 

		Full Year 2024 Range1,2,3
		Low				High
Net income		$	2.99			$	3.01
Gain on sale of real estate5			(3.22	)			(3.22	)
Preferred dividend6			(0.03	)			(0.03	)
Loss on financing transaction7			0.32				0.32
Real estate depreciation & amortization			1.77				1.77
Core FFO		$	1.83			$	1.85

 

1)

Our 2024 guidance refers to the Company's in-place portfolio as of November 4, 2024, inclusive of the Chicago JV portfolio sale scheduled to close in November 2024 and does not include the impact from prospective acquisitions, dispositions, or capitalization activities.

 

2)

The Same Store Portfolio consists of 200 buildings aggregating 31,245,756 rentable square feet, representing approximately 88.2% of the total in-place portfolio square footage as of November 4, 2024. The Same Store projected performance reflects an annual NOI on a cash basis, excluding termination income. The Same Store Portfolio is a subset of the consolidated portfolio and includes properties that are wholly owned by the Company as of December 31, 2022. The Same Store Portfolio excludes properties that are classified as repositioning, lease-up during 2023 or 2024 (five buildings representing approximately 1,533,000 square feet), acquired or developments placed into service during 2023 and 2024, or under contract for sale. The Same Store Portfolio stats reflected in Guidance do not account for the deconsolidation of the Chicago JV portfolio.

3)

Includes non-cash stock compensation of $4.3 million for 2024.

4)

As of November 4, 2024, the Company has 45,879,485 common shares and units outstanding.

5)

Gain on sale of real estate includes year-to-date realized gains plus an estimated gross book gain on the disposition of the Chicago JV portfolio in connection with the Sixth Street transaction, excluding closing costs and prorations.

6)

Preferred dividend includes cash and accrued (PIK) dividends at an annualized rate of 7.0%.

7)

Loss on financing transaction includes the net impact of the initial accounting treatment loss and corresponding issuance costs realized upon the issuance of the Preferred Series C Units and warrants issued in August 2024, partially offset by a net unrealized gain due to the change of the respective fair market value of the instruments between the date of issuance and the end of the reporting period.

 

Plymouth will host a conference call and live audio webcast, both open for the general public to hear, on Thursday, November 7, 2024, at 9:00 a.m. Eastern Time. The number to call for this interactive teleconference is (844) 784-1727 (international callers: (412) 717-9587). A replay of the call will be available through November 14, 2024, by dialing (877) 344-7529 and entering the replay access code, 6027952.

The Company has posted supplemental financial information on the third quarter results and prepared commentary that it will reference during the conference call. The supplemental information can be found under Financial Results on the Company’s Investor Relations page. The live audio webcast of the Company’s quarterly conference call will be available online in the Investor Relations section of the Company’s website at ir.plymouthreit.com. The online replay will be available approximately one hour after the end of the call and archived for one year.

 

About Plymouth

Plymouth Industrial REIT, Inc. (NYSE: PLYM) is a full service, vertically integrated real estate investment company focused on the acquisition, ownership and management of single and multi-tenant industrial properties. Our mission is to provide tenants with cost effective space that is functional, flexible and safe.

 

Forward-Looking Statements

This press release includes “forward-looking statements” that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, statements regarding future leasing activity and expectations for the timing of the closing of the Chicago Joint Venture. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release, which are not strictly historical statements, including, without limitation, statements regarding management's plans, objectives and strategies, constitute forward-looking statements. Such forward-looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statements, many of which may be beyond our control. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

###

 

Contact:
Tripp Sullivan
SCR Partners
IR@plymouthreit.com

 

PLYMOUTH INDUSTRIAL REIT, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

UNAUDITED

(In thousands, except share and per share amounts)

 

 

		September 30,				December 31,
		2024				2023
Assets
Real estate properties		$	1,393,892			$	1,567,866
Less: accumulated depreciation			(246,652	)			(268,046	)
Real estate properties, net			1,147,240				1,299,820
Real estate assets held for sale, net			199,548				—
Cash			21,383				14,493
Cash held in escrow			4,780				4,716
Restricted cash			7,393				6,995
Deferred lease intangibles, net			44,458				51,474
Other assets			49,256				42,734
Interest rate swaps			13,237				21,667
Forward contract asset			9,116				—
Total assets		$	1,496,411			$	1,441,899
Liabilities, Redeemable Non-controlling Interest and Equity
Liabilities:
Secured debt, net			176,717				266,887
Unsecured debt, net			448,465				447,990
Borrowings under line of credit			196,400				155,400
Accounts payable, accrued expenses and other liabilities			83,397				73,904
Real estate liabilities held for sale, net			67,982				—
Warrant liability			73,335				—
Deferred lease intangibles, net			5,095				6,044
Financing lease liability			2,290				2,271
Interest rate swaps			1,085				1,161
Total liabilities			1,054,766				953,657
Redeemable non-controlling interest - Series C Preferred Units		$	426			$	—
Equity:
Common stock, $0.01 par value: 900,000,000 shares authorized; 45,390,436 and 45,250,184  shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively.			454				452
Additional paid in capital			614,716				644,938
Accumulated deficit			(190,675	)			(182,606	)
Accumulated other comprehensive income			11,969				20,233
Total stockholders' equity			436,464				483,017
Non-controlling interest			4,755				5,225
Total equity			441,219				488,242
Total liabilities, redeemable non-controlling interest and equity		$	1,496,411			$	1,441,899

 

PLYMOUTH INDUSTRIAL REIT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

UNAUDITED

(In thousands, except share and per share amounts)

 

		For the Three Months								For the Nine Months
		Ended September 30,								Ended September 30,
		2024				2023				2024				2023
Rental revenue		$	51,432			$	49,736			$	150,271			$	149,006
Management fee revenue and other income			439				29				514				58
Total revenues			51,871				49,765				150,785				149,064
Operating expenses:
Property			17,374				15,754				47,585				47,398
Depreciation and amortization			21,010				22,881				64,725				70,098
General and administrative			3,582				3,297				10,826				10,586
Total operating expenses			41,966				41,932				123,136				128,082
Other income (expense):
Interest expense			(10,359	)			(9,473	)			(29,368	)			(28,592	)
Loss on extinguishment of debt			—				(72	)			—				(72	)
Gain (loss) on sale of real estate			(234	)			12,112				8,645				12,112
Loss on financing transaction			(14,657	)			—				(14,657	)			—
Total other income (expense)			(25,250	)			2,567				(35,380	)			(16,552	)
Net income (loss)			(15,345	)			10,400				(7,731	)			4,430
Less: Net income (loss) attributable to non-controlling interest			(170	)			114				(88	)			46
Less: Net income (loss) attributable to redeemable non-controlling interest - Series C Preferred Units			426				—				426				—
Net income (loss) attributable to Plymouth Industrial REIT, Inc.			(15,601	)			10,286				(8,069	)			4,384
Less: Preferred Stock dividends			—				677				—				2,509
Less: Loss on extinguishment/redemption of Series A Preferred Stock			—				2,021				—				2,023
Less: Amount allocated to participating securities			89				83				277				253
Net income (loss) attributable to common stockholders		$	(15,690	)		$	7,505			$	(8,346	)		$	(401	)
Net income (loss) per share attributable to common stockholders - basic		$	(0.35	)		$	0.17			$	(0.19	)		$	(0.01	)
Net income (loss) per share attributable to common stockholders - diluted		$	(0.35	)		$	0.17			$	(0.19	)		$	(0.01	)
Weighted-average common shares outstanding - basic			45,009,273				44,056,855				44,979,140				43,108,039
Weighted-average common shares outstanding - diluted			45,009,273				44,139,603				44,979,140				43,108,039

 

 

Non-GAAP Financial Measures Definitions

 

Net Operating Income (NOI): We consider net operating income, or NOI, to be an appropriate supplemental measure to net income in that it helps both investors and management understand the core operations of our properties. We define NOI as total revenue (including rental revenue and tenant reimbursements) less property-level operating expenses. NOI excludes depreciation and amortization, general and administrative expenses, impairments, gain/loss on sale of real estate, interest expense, loss on financing transaction, and other non-operating items.

 

EBITDAre: We define earnings before interest, taxes, depreciation and amortization for real estate in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”). EBITDAre represents net income (loss), computed in accordance with GAAP, before interest expense, tax, depreciation and amortization, gains or losses on the sale of rental property, appreciation (depreciation) of warrants, loss on impairments, loss on financing transaction, and loss on extinguishment of debt. We believe that EBITDAre is helpful to investors as a supplemental measure of our operating performance as a real estate company as it is a direct measure of the actual operating results of our industrial properties.

 

Funds from Operations (“FFO”): Funds from operations, or FFO, is a non-GAAP financial measure that is widely recognized as a measure of a REIT’s operating performance, thereby, providing investors the potential to compare our operating performance with that of other REITs. We consider FFO to be an appropriate supplemental measure of our operating performance as it is based on a net income analysis of property portfolio performance that excludes non-cash items such as depreciation. The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time. Since real estate values rise and fall with market conditions, presentations of operating results for a REIT, using historical accounting for depreciation, could be less informative. In December 2018, NAREIT issued a white paper restating the definition of FFO. The purpose of the restatement was not to change the fundamental definition of FFO, but to clarify existing NAREIT guidance. The restated definition of FFO is as follows: Net Income (Loss) (calculated in accordance with GAAP), excluding: (i) Depreciation and amortization related to real estate, (ii) Gains and losses from the sale of certain real estate assets, (iii) Gain and losses from change in control, and (iv) Impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.

We define FFO consistent with the NAREIT definition. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect FFO on the same basis. Other equity REITs may not calculate FFO as we do, and, accordingly, our FFO may not be comparable to such other REITs’ FFO. FFO should not be used as a measure of our liquidity, and is not indicative of funds available for our cash needs, including our ability to pay dividends.

 

Core Funds from Operations (“Core FFO”): We calculate Core FFO by adjusting FFO for non-comparable items such as dividends paid (or declared) to holders of our preferred stock, acquisition and transaction related expenses for transactions not completed, and certain non-cash operating expenses such as impairment on real estate lease, unrealized loss/(gain) on financing instruments, and loss on extinguishment of debt. We believe that Core FFO is a useful supplemental measure in addition to FFO by adjusting for items that are not considered by us to be part of the period-over-period operating performance of our property portfolio, thereby, providing a more meaningful and consistent comparison of our operating and financial performance during the periods presented. As with FFO, our reported Core FFO may not be comparable to other REITs’ Core FFO, should not be used as a measure of our liquidity, and is not indicative of funds available for our cash needs, including our ability to pay dividends.

 

Adjusted Funds from Operations (“AFFO”): Adjusted funds from operations, or AFFO, is presented in addition to Core FFO. AFFO is defined as Core FFO, excluding certain non-cash operating revenues and expenses, capitalized interest and recurring capitalized expenditures. Recurring capitalized expenditures include expenditures required to maintain and re-tenant our properties, tenant improvements and leasing commissions. AFFO further adjusts Core FFO for certain other non-cash items, including the amortization or accretion of above or below market rents included in revenues, straight line rent adjustments, non-cash equity compensation and non-cash interest expense.

 

We believe AFFO provides a useful supplemental measure of our operating performance because it provides a consistent comparison of our operating performance across time periods that is comparable for each type of real estate investment and is consistent with management’s analysis of the operating performance of our properties. As a result, we believe that the use of AFFO, together with the required GAAP presentations, provide a more complete understanding of our operating performance. As with Core FFO, our reported AFFO may not be comparable to other REITs’ AFFO, should not be used as a measure of our liquidity, and is not indicative of funds available for our cash needs, including our ability to pay dividends.

 

 

PLYMOUTH INDUSTRIAL REIT, INC.

SUPPLEMENTAL RECONCILIATION OF NON-GAAP DISCLOSURES

UNAUDITED

(In thousands, except share and per share amounts)

 

		For the Three Months								For the Nine Months
		Ended September 30,								Ended September 30,
NOI:		2024				2023				2024				2023
Net income (loss)		$	(15,345	)		$	10,400			$	(7,731	)		$	4,430
General and administrative			3,582				3,297				10,826				10,586
Depreciation and amortization			21,010				22,881				64,725				70,098
Interest expense			10,359				9,473				29,368				28,592
Loss on extinguishment of debt			—				72				—				72
(Gain) loss on sale of real estate			234				(12,112	)			(8,645	)			(12,112	)
Loss on financing transaction			14,657				—				14,657				—
Management fee revenue and other income			(439	)			(29	)			(514	)			(58	)
NOI		$	34,058			$	33,982			$	102,686			$	101,608
			For the Three Months								For the Nine Months
			Ended September 30,								Ended September 30,
EBITDAre:			2024				2023				2024				2023
Net income (loss)		$	(15,345	)		$	10,400			$	(7,731	)		$	4,430
Depreciation and amortization			21,010				22,881				64,725				70,098
Interest expense			10,359				9,473				29,368				28,592
Loss on extinguishment of debt			—				72				—				72
(Gain) loss on sale of real estate			234				(12,112	)			(8,645	)			(12,112	)
Loss on financing transaction			14,657				—				14,657				—
EBITDAre		$	30,915			$	30,714			$	92,374			$	91,080
			For the Three Months								For the Nine Months
			Ended September 30,								Ended September 30,
FFO:			2024				2023				2024				2023
Net income (loss)		$	(15,345	)		$	10,400			$	(7,731	)		$	4,430
(Gain) loss on sale of real estate			234				(12,112	)			(8,645	)			(12,112	)
Depreciation and amortization			21,010				22,881				64,725				70,098
FFO:		$	5,899			$	21,169			$	48,349			$	62,416
Preferred Stock dividends			—				(677	)			—				(2,509	)
Redeemable non-controlling interest - Series C Preferred Unit dividends			(426	)			—				(426	)			—
Acquisition expenses			—				—				—				85
Loss on extinguishment of debt			—				72				—				72
Loss on financing transaction			14,657				—				14,657				—
Core FFO		$	20,130			$	20,564			$	62,580			$	60,064
Weighted average common shares and units outstanding			45,883				44,922				45,855				43,966
Core FFO per share		$	0.44			$	0.46			$	1.36			$	1.37
			For the Three Months								For the Nine Months
			Ended September 30,								Ended September 30,
AFFO:			2024				2023				2024				2023
Core FFO		$	20,130			$	20,564			$	62,580			$	60,064
Amortization of debt related costs			470				570				1,346				1,708
Non-cash interest expense			89				(50	)			(329	)			402
Stock compensation			1,093				827				3,118				2,128
Capitalized interest			(140	)			(282	)			(321	)			(968	)
Straight line rent			(17	)			(216	)			1,012				(1,833	)
Above/below market lease rents			(299	)			(417	)			(910	)			(1,820	)
Recurring capital expenditures(1)			(2,853	)			(1,965	)			(5,254	)			(4,863	)
AFFO		$	18,473			$	19,031			$	61,242			$	54,818
Weighted average common shares and units outstanding			45,883				44,922				45,855				43,966
AFFO per share		$	0.40			$	0.42			$	1.34			$	1.25
(1) Excludes non-recurring capital expenditures of $8,229 and $8,132 for the three months ended September 30, 2024 and 2023, respectively and $16,982 and $24,185 for the nine months ended September 30, 2024 and 2023, respectively.

THIRD QUARTER 2024 Plymouth REIT Supplemental Information

 

 

Table of Contents

 

 

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
Value Creation Examples	8
Guidance	9
Financial Information
Consolidated Balance Sheets	11
Consolidated Statements of Operations	12
Non-GAAP Measurements	13
Same Store Net Operating Income (NOI)	14
Debt Summary	15
Capitalization and Capital Markets Activity	16
Net Asset Value Components	17
Rentable Square Feet and Annualized Base Rent by Market	18
Operational & Portfolio Information
Leasing Activity: Lease Renewals and New Leases	20
Leasing Activity: Lease Expiration Schedule & % of Annual Base Rent Expiring	21
Leased Square Feet and Annualized Base Rent by Tenant Industry	22
Leased Square Feet and Annualized Base Rent by Type	23
Top 10 Tenants by Annualized Base Rent	24
Lease Segmentation by Size	25
Capital Expenditures	26
Appendix
Glossary	28

Disclaimers

References herein to “we,” “us,” and “our” refer to Plymouth Industrial REIT. Inc. (“Plymouth” or the “Company”)

 

Forward-Looking Statements

This Supplemental Information contains forward-looking statements that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this Supplemental Information do not constitute guarantees of future performance. Investors are cautioned that statements in this Supplemental Information, which are not strictly historical statements and include, without limitation, statements regarding management's plans, objectives and strategies, constitute forward-looking statements. Such forward-looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statement, many of which may be beyond our control, including, without limitation, those factors described under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Any forward-looking information presented herein is made only as of the date of this Supplemental Information, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

 

Definitions and Reconciliations

For definitions of certain terms used throughout this Supplemental Information, including certain non-GAAP financial measures, refer to the Glossary on pages 28-33. For reconciliations of the non-GAAP financial measures to the most directly comparable U.S. GAAP measures, refer to page 13. 

 

Executive Summary

 

 

Company Overview 

Plymouth Industrial REIT, Inc. (NYSE: PLYM) is a full service, vertically integrated real estate investment company focused on the acquisition, ownership, and management of single and multi-tenant industrial properties. Our mission is to provide tenants with cost effective space that is functional, flexible and safe.

Management, Board of Directors, Investor Relations, and Equity RESEARCH Coverage

 

Corporate 20 Custom House Street 11th Floor Boston, Massachusetts 02110 617.340.3814 www.plymouthreit.com Investor Relations Tripp Sullivan SCR Partners IR@plymouthreit.com Continental Stock Transfer & Trust Company 1 State Street, 30th Floor New York, NY 10004 212.509.4000

Executive Management Jeffrey E. Witherell Chief Executive Officer and Chairman Anthony J. Saladino Executive Vice President and Chief Financial Officer James M. Connolly Executive Vice President Asset Management Lyndon J. Blakesley Senior Vice President and Chief Accounting Officer

Benjamin P. Coues Senior Vice President and Head of Acquisitions Anne A. Hayward, ESQ. Senior Vice President and General Counsel Daniel R. Heffernan Senior Vice President Asset Management Scott L. Robinson Senior Vice President Corporate Development

Board of Directors Phillip S. Cottone Independent Director Richard DeAgazio Independent Director David G. Gaw Lead Independent Director John W. Guinee Independent Director Caitlin Murphy Independent Director Pendleton P. White, Jr. Director Jeffrey E. Witherell Chief Executive Officer and Chairman

Equity Research Coverage1 Baird Nicholas Thillman 414.298.5053 Barclays Brendan Lynch 212.526.9428 BMO Capital Markets John Kim 212.885.4115 BNP Paribas Exane Nate Crossett 646.725.3716 B Riley Securities Bryan Maher 646.885.5423

Colliers Securities Barry Oxford 203.961.6573 JMP Securities Mitch Germain 212.906.3537 J.P. Morgan Mike Mueller 212.622.6689 KeyBanc Capital Markets Todd Thomas 917.368.2375 Truist Securities Anthony Hau 212.303.4176

Wedbush Securities Richard Anderson 212.931.7001

Investor Conference Call and Webcast

The Company will host a conference call and live audio webcast, both open for the general public to hear, on November 7, 2024 at 9:00 a.m. Eastern Time. The number to call for this interactive teleconference is (844) 784-1727 (international callers: (412) 717-9587). A replay of the call will be available through November 14, 2024 by dialing (877) 344-7529 and entering the replay access code, 6027952.

 

1

The analysts listed provide research coverage on the Company. Any opinions, estimates or forecasts regarding the Company's performance made by these analysts are theirs alone and do not represent opinions, estimates or forecasts by the Company or its management. The Company does not by reference above imply its endorsement of or concurrence with such information, conclusions or recommendations.

 

Highlights

As of September 30, 2024

 

Acquisition Activity

 

Acquisitions ($ in Thousands)

 

Location	Acquisition Date	# of Buildings	Purchase Price1	Square Footage	Projected Initial Yield2	Cost per Square Foot3
Memphis, TN	7/18/2024	14	$           100,500	1,621,241	8.0%	$   61.99
Multiple	Full Year 2022	44	$           253,655	4,164,864	6.1%	$   71.54
Multiple	Full Year 2021	24	$           370,977	6,380,302	6.7%	$   63.15
Multiple	Full Year 2020	27	$           243,568	5,473,596	7.8%	$   46.99
Multiple	Full Year 2019	32	$           220,115	5,776,928	8.4%	$   42.21
Multiple	Full Year 2018	24	$           164,575	2,903,699	8.2%	$   70.54
Multiple	2017 (since IPO)	36	$           173,325	5,195,563	8.4%	$   33.81
Total Acquisitions Post-IPO		201	$        1,526,715	31,516,193	7.6%	$   48.44

 

Note: Portfolio statistics and acquisitions include wholly owned industrial properties only; excludes our property management office located in Columbus, Ohio.

1

Represents total direct consideration paid rather than GAAP cost basis.

2

We define projected initial yield as calculated as dividing the company’s estimate of year 1 cash net operating income from the applicable property’s operations by the purchase price. Total projected initial yield is weighted based on Purchase Price.

3

Calculated as Purchase Price divided by square footage.

 

Development Projects

As of September 30, 2024

 

The total investment in completed developments is approximately $61.1 million. The estimated stabilized cash NOI yields on development projects under construction and completed range between 7.0% - 9.0%. Plymouth is partnering with the Green Building Initiative to align our environmental objectives with the execution of all new development and portfolio enhancement activities. Thus far, Plymouth has achieved a Three Green Globe certification on our Cincinnati development and a Two Green Globe certification on our completed developments in Boston, Jacksonville (2) and Atlanta (2) 1.

 

Under Construction2	# of Buildings	Total Rentable Square Feet (RSF)	% Leased	Investment ($ in millions)	% Funded	Estimated Completion
Jacksonville - Liberty II	1	52,920	100%	$               8.6	96%	Q4 2024
Total	1	52,920		$               8.6
Completed3	# of Buildings	Total Rentable Square Feet (RSF)	% Leased	Investment ($ in millions)	% Funded	Completed
Boston - Milliken Road	1	68,088	100%	$               9.3	100%	Q4 2022
Atlanta - New Calhoun I	1	236,600	100%	13.8	100%	Q1 2023
Cincinnati - Fisher Park I	1	154,692	100%	14.0	100%	Q1 2023
Atlanta - New Calhoun II	1	180,000	100%	12.1	100%	Q3 2023
Jacksonville – Salisbury	1	40,572	100%	6.2	100%	Q3 2023
Jacksonville – Liberty I	1	39,750	100%	5.7	100%	Q4 2023
Total	6	719,702	100%	$             61.1	100%

 

1

The Company is a member organization of the Green Building Initiative (GBI), a nonprofit organization and American National Standards Institute (ANSI) Accredited Standards Developer dedicated to reducing climate impacts by improving the built environment. Founded in 2004, the organization is the global provider of the Green Globes and federal Guiding Principles Compliance certification and assessment programs.

2

Under construction represents projects for which vertical construction has commenced. Refer to the Developable Land section of the Net Asset Value Components on page 17 of this Supplemental Information for additional details on the Company's development activities.

3

Completed buildings are included within portfolio occupancy and square footage metrics as of September 30, 2024.

 

Guidance

As of November 4, 2024

Unaudited (in thousands, except per-share amounts)

 

Plymouth adjusts its full year 2024 guidance ranges for net income and Core FFO per weighted average common share and units and adjusted its accompanying assumptions, which can be found in the tables below:

 

	Full Year 2024 Range1
	Low		High
Core FFO attributable to common stockholders and unit holders per share	$1.83		$1.85
Same Store Portfolio NOI growth - cash basis2	5.00%		5.25%
Average Same Store Portfolio occupancy - full year	97.0%		97.5%
General and administrative expenses3	$15,000		$14,600
Interest expense, net	$38,250		$37,750
Weighted average common shares and units outstanding4	45,880		45,880

 

Reconciliation of net loss attributable to common stockholders and unit holders per share to Core FFO guidance:
	Full Year 2024 Range1,2,3
	Low		High
Net income/(loss)	$2.99		$3.01
Gain on sale of real estate5	(3.22)		(3.22)
Preferred dividend6	(0.03)		(0.03)
Loss on financing transaction7	0.32		0.32
Real estate depreciation and amortization	1.77		1.77
	$1.83		$1.85

 

1

Our 2024 guidance refers to the Company's in-place portfolio as of November 4, 2024, inclusive of the Chicago JV portfolio sale scheduled to close in November 2024 and does not include the impact from prospective acquisitions, dispositions, or capitalization activities.

2

The Same Store Portfolio consists of 200 buildings aggregating 31,245,756 rentable square feet, representing approximately 89.5% of the total in-place portfolio square footage as of November 4, 2024. The Same Store projected performance reflects an annual NOI on a cash basis, excluding termination income. The Same Store Portfolio is a subset of the consolidated portfolio and includes properties that are wholly owned by the Company as of December 31, 2022. The Same Store Portfolio excludes properties that are classified as repositioning, lease-up during 2023 or 2024 (five buildings representing approximately 1,533,000 square feet), acquired or developments placed into service during 2023 and 2024, or under contract for sale. The Same Store Portfolio stats reflected in Guidance do not account for the deconsolidation of the Chicago JV portfolio.

3

Includes non-cash stock compensation of $4.3 million for 2024.

4

As of November 4, 2024, the Company has 45,879,485 common shares and units outstanding.

5

Gain on sale of real estate includes year-to-date realized gains plus an estimated gross book gain on the disposition of the Chicago JV portfolio in connection with the Sixth Street transaction, excluding closing costs and prorations

6

Preferred dividend includes cash and accrued (PIK) dividends at an annualized rate of 7.0%.

7

Loss on financing transaction includes the net impact of the initial accounting treatment loss and corresponding issuance costs realized upon the issuance of the Preferred Series C Units and warrants issued in August 2024, partially offset by a net unrealized gain due to the change of the respective fair market value of the instruments between the date of issuance and the end of the reporting period.

 

Financial Information

 

Consolidated Balance Sheets

Unaudited ($ in thousands)

 

	September 30, 2024	June 30, 2024	March 31, 2024	December 31, 2023	September 30, 2023
ASSETS
Real estate properties:
Land	$               237,514	$               223,049	$               224,532	$               226,020	$               227,599
Building and improvements	1,156,378	1,325,468	1,326,722	1,341,846	1,343,025
Net investment in sales-type lease1	-	21,396	$                 21,459	-	-
Less: accumulated depreciation	(246,652)	(292,454)	(277,253)	(268,046)	(254,402)
Total real estate properties, net	$            1,147,240	$            1,277,459	$            1,295,460	$            1,299,820	$            1,316,222
Real estate assets held for sale, net 1	199,548	-	-	-	-
Cash, cash held in escrow and restricted cash	33,556	36,129	27,237	26,204	30,272
Deferred lease intangibles, net	44,458	42,434	46,396	51,474	56,316
Interest rate swaps1	13,237	25,328	26,382	21,667	34,115
Other assets	49,256	40,445	39,670	42,734	39,585
Forward contract asset 1	9,116	-	-	-	-
Total assets	$            1,496,411	$            1,421,795	$            1,435,145	$            1,441,899	$            1,476,510
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY
Secured debt, net	$               176,717	$               262,834	$               265,619	$               266,887	$               377,714
Unsecured debt, net1	644,865	603,726	603,558	603,390	512,823
Interest rate swaps1	1,085	5	189	1,161	-
Accounts payable, accrued expenses and other liabilities	83,397	67,492	68,049	73,904	75,112
Real estate liabilities held for sale, net 1	67,982	-	-	-	-
Warrant liability1	73,335	-	-	-	-
Deferred lease intangibles, net	5,095	5,134	5,590	6,044	6,604
Financing lease liability1	2,290	2,284	2,278	2,271	2,265
Total liabilities	$            1,054,766	$               941,475	$               945,283	$               953,657	$               974,518
Redeemable non-controlling interest - Series C Preferred Unit 1	$                      426	$                          -	$                          -	$                          -	$                          -
Equity:
Common stock	$                      454	$                      454	$                      453	$                      452	$                      452
Additional paid in capital	614,716	624,810	634,651	644,938	654,346
Accumulated deficit	(190,675)	(175,074)	(176,388)	(182,606)	(191,882)
Accumulated other comprehensive income	11,969	24,998	25,859	20,233	33,695
Total stockholders' equity	$               436,464	$               475,188	$               484,575	$               483,017	$               496,611
Non-controlling interest	4,755	5,132	5,287	5,225	5,381
Total equity	$               441,219	$               480,320	$               489,862	$               488,242	$               501,992
Total liabilities, redeemable non-controlling interest and equity	$            1,496,411	$            1,421,795	$            1,435,145	$            1,441,899	$            1,476,510

 

1

See Glossary, page 31-32 for further information.

 

Consolidated Statements of Operations

Unaudited ($ in thousands, except per-share amounts)

 

	For the Three Months Ended September 30,			For the Nine Months Ended September 30,
	2024	2023		2024	2023
Revenues:
Rental revenue	$          38,328	$          37,416		$      112,549	$      112,816
Tenant recoveries	13,104	12,320		37,722	36,190
Management fee revenue and other income	439	29		514	58
Total revenues	$          51,871	$          49,765		$      150,785	$      149,064
Operating expenses:
Property	17,374	15,754		47,585	47,398
Depreciation and amortization	21,010	22,881		64,725	70,098
General and administrative	3,582	3,297		10,826	10,586
Total operating expenses	$          41,966	$          41,932		$      123,136	$      128,082
Other income (expense):
Interest expense	(10,359)	(9,473)		(29,368)	(28,592)
Loss on extinguishment/redemption of debt	-	(72)		-	(72)
Gain (loss) on sale of real estate1	(234)	12,112		8,645	12,112
Loss on financing transaction1	(14,657)	-		(14,657)	-
Total other income (expense)	$         (25,250)	$            2,567		$      (35,380)	$      (16,552)
Net income (loss)	$         (15,345)	$          10,400		$        (7,731)	$          4,430
Less: Net income (loss) attributable to non-controlling interest	(170)	114		(88)	46
Less: Net income (loss) attributable to redeemable non-controlling interest - Series C Preferred Units	426	-		426	-
Net income (loss) attributable to Plymouth Industrial REIT, Inc.	$         (15,601)	$          10,286		$        (8,069)	$          4,384
Less: Preferred Stock dividends	-	677		-	2,509
Less: Loss on extinguishment/redemption of Series A Preferred Stock	-	2,021		-	2,023
Less: Amount allocated to participating securities	89	83		277	253
Net income (loss) attributable to common stockholders	$         (15,690)	$            7,505		$        (8,346)	$           (401)
Net income (loss) per share attributable to common stockholders – basic1	$             (0.35)	$              0.17		$          (0.19)	$          (0.01)
Net income (loss) per share attributable to common stockholders – diluted1	$             (0.35)	$              0.17		$          (0.19)	$          (0.01)
Weighted-average common shares outstanding - basic	45,009	44,057		44,979	43,108
Weighted-average common shares outstanding - diluted	45,009	44,140		44,979	43,108

 

1

See Glossary, page 33 for further information.

 

Non-GAAP Measurements

Unaudited ($ in thousands, except per-share amounts)

 

		For the Three Months Ended September 30,			For the Nine Months Ended September 30,
		2024	2023		2024	2023
Consolidated NOI
Net income (loss)		$            (15,345)	$             10,400		$             (7,731)	$              4,430
General and administrative		3,582	3,297		10,826	10,586
Depreciation and amortization		21,010	22,881		64,725	70,098
Interest expense		10,359	9,473		29,368	28,592
Loss on extinguishment of debt		-	72		-	72
(Gain) loss on sale of real estate1		234	(12,112)		(8,645)	(12,112)
Loss on financing transaction1		14,657	-		14,657	-
Management fee revenue and other income		(439)	(29)		(514)	(58)
Net Operating Income		$             34,058	$             33,982		$          102,686	$          101,608
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre)
Net income (loss)		$            (15,345)	$             10,400		$             (7,731)	$              4,430
Depreciation and amortization		21,010	22,881		64,725	70,098
Interest expense		10,359	9,473		29,368	28,592
Loss on extinguishment of debt		-	72		-	72
(Gain) loss on sale of real estate1		234	(12,112)		(8,645)	(12,112)
Loss on financing transaction1		14,657	-		14,657	-
EBITDAre		$             30,915	$             30,714		$            92,374	$            91,080
Stock compensation		1,093	827		3,118	2,128
Acquisition expenses		-	-		-	85
Pro forma effect of acquisitions/developments1		488	542		925	1,303
Adjusted EBITDA		$             32,496	$             32,083		$            96,417	$            94,596
Funds from Operations (FFO), Core FFO & Adjusted Funds from Operations (AFFO)
Net income (loss)		$            (15,345)	$             10,400		$             (7,731)	$              4,430
(Gain) loss on sale of real estate1		234	(12,112)		(8,645)	(12,112)
Depreciation and amortization		21,010	22,881		64,725	70,098
FFO		$               5,899	$             21,169		$            48,349	$            62,416
Preferred Stock dividends		-	(677)		-	(2,509)
Redeemable non-controlling interest - Series C Preferred Unit dividends1		(426)	-		(426)	-
Loss on financing transaction1		14,657	-		14,657	-
Acquisition expenses		-	-		-	85
Loss on extinguishment of debt		-	72		-	72
Core FFO		$             20,130	$             20,564		$            62,580	$            60,064
Amortization of debt related costs		470	570		1,346	1,708
Non-cash interest expense		89	(50)		(329)	402
Stock compensation		1,093	827		3,118	2,128
Capitalized interest		(140)	(282)		(321)	(968)
Straight line rent		(17)	(216)		1,012	(1,833)
Above/below market lease rents		(299)	(417)		(910)	(1,820)
Recurring capital expenditures1		(2,853)	(1,965)		(5,254)	(4,863)
AFFO		$             18,473	$             19,031		$            61,242	$            54,818
Weighted-average common shares and units outstanding1		45,883	44,922		45,855	43,966
Core FFO attributable to common stockholders and unit holders per share		$                 0.44	$                 0.46		$                1.36	$                1.37
AFFO attributable to common stockholders and unit holders per share		$                 0.40	$                 0.42		$                1.34	$                1.25

 

1

See Glossary, page 33 for further information.

 

Same Store Net Operating Income (NOI)

Unaudited ($ and SF in thousands)

 

Same Store Portfolio Statistics
Square footage	31,246	Includes: wholly owned properties as of December 31, 2022; determined and set once per year for the following twelve months (refer to Glossary for Same Store definition)   Excludes: wholly owned properties classified as repositioning, lease-up during 2023 or 2024 (5 buildings representing approximately 1,553,000 of rentable square feet), placed into service 2023 and 2024, and under contract for sale.
Number of properties	146
Number of buildings	200
Percentage of total portfolio square footage	89.5%
Occupancy at period end	97.5%

 

Same Store NOI
		September 30, 2024	June 30, 2024	March 31, 2024	December 31, 2023	September 30, 2023
Same Store NOI - GAAP Basis
Rental revenue		$          46,397	$           45,657	$             46,930	$            46,072	$                45,609
Property expenses		15,579	13,294	15,213	13,296	14,343
Same Store NOI - GAAP Basis		$          30,818	$           32,363	$             31,717	$            32,776	$                31,266
Early termination revenue		-	150	23	6	75
Same Store NOI - GAAP Basis excluding early termination revenue		$          30,818	$           32,213	$             31,694	$            32,770	$                31,191
Same Store NOI - Cash Basis
Same Store Adjustments:
Straight line rent and above (below) market lease		(1)	(717)	136	411	550
Same Store NOI - Cash Basis		$          30,819	$           33,080	$             31,581	$            32,365	$                30,716
Early termination revenue		-	150	23	6	75
Same Store NOI - Cash Basis excluding early termination revenue		$          30,819	$           32,930	$             31,558	$            32,359	$                30,641
Same store occupancy at period end		97.5%	98.2%	98.3%	98.1%	97.7%
Percentage of total portfolio square footage		89.5%	92.2%	91.6%	91.6%	91.3%
Same Store NOI - GAAP Basis percent change1		-1.2%
Same Store NOI - Cash Basis percent change1		0.6%

 

1

Represents the year-over-year change between the three months ended September 30, 2024 and three months ended September 30, 2023.

 

Debt Summary

As of September 30, 2024

Unaudited ($ in thousands, except per-share amounts)

 

		Maturity Date	Interest Rate	Commitment	Principal Balance
Unsecured Debt:
KeyBank Line of Credit		August-25	6.41%1,2	$     350,000	$         196,400
$100m KeyBank Term Loan		August-26	3.00%1,2	100,000	100,000
$200m KeyBank Term Loan		February-27	3.03%1,2	200,000	200,000
$150m KeyBank Term Loan		May-27	4.40%1,2	150,000	150,000
Total / Weighted Average Unsecured Debt			4.37%	$     800,000	$         646,400
	Market	Maturity Date	Interest Rate	# of Buildings	Principal Balance
Secured Debt:
Allianz Loan	Jacksonville	April-26	4.07%	22	$           60,383
Nationwide Loan	St. Louis	October-27	2.97%	2	14,712
Lincoln Life Gateway Mortgage3	St. Louis	January-28	3.43%	2	28,800
Minnesota Life Memphis Industrial Loan3	Memphis	January-28	3.15%	28	54,079
Midland National Life Insurance Mortgage3,4	Chicago	March-28	3.50%	1	10,506
Minnesota Life Loan	Multiple	May-28	3.78%	7	19,220
Transamerica Loan4	Chicago	August-28	4.35%	14	56,898
Total / Weighted Average Secured Debt			3.74%	76	$         244,598
Total / Weighted Average Debt			4.20%		$         890,998

 

1

For the month of September 2024, the one-month term SOFR for our unsecured debt was 5.195% and the one-month term SOFR for our borrowings under line of credit was at a weighted average of 4.980%. The spread over the applicable rate for the $100m, $150m, and $200m KeyBank Term Loans and KeyBank unsecured line of credit is based on the Company’s total leverage ratio plus the 0.1% SOFR index adjustment.

2

The one-month term SOFR for the $100m, $150m and $200m KeyBank Term Loans was swapped to a fixed rate of 1.504%, 2.904%, and 1.527%, respectively. A $100 million of the outstanding borrowings under the KeyBank unsecured line of credit was swapped to a fixed USD-SOFR rate at a weighted average of 4.754%.

3

Debt assumed at acquisition.

4

As of September 30, 2024, the Midland National Life Insurance Mortgage and the Transamerica Loan were reclassified to Real estate liabilities held for sale, net on our condensed consolidated balance sheet

 

Capitalization

As of September 30, 2024

Unaudited ($ in thousands, except per-share amounts)

 

	September 30, 2024	June 30, 2024	March 31, 2024	December 31, 2023	September 30, 2023
Net Debt:
Total Debt1	$        890,998	$    869,235	$          872,059	$            873,364	$            893,877
Less: Cash	33,556	36,129	27,237	26,204	30,272
Net Debt	$        857,442	$    833,106	$          844,822	$            847,160	$            863,605
Common Shares and Units Outstanding2	45,881	45,887	45,872	45,740	45,740
Closing Price (as of period end)	$            22.60	$        21.38	$              22.50	$                24.07	$                20.95
Market Value of Common Shares3	$     1,036,911	$    981,064	$       1,032,120	$         1,100,962	$            958,253
Preferred Units - Series C (outstanding borrowing + unpaid dividends)4	61,336	-	-	-	-
Total Market Capitalization3,5	$     1,927,909	$ 1,850,299	$       1,904,179	$         1,974,326	$         1,852,130
Dividend / Share (annualized)	$              0.96	$          0.96	$                0.96	$                  0.90	$                  0.90
Dividend Yield (annualized)	4.2%	4.5%	4.3%	3.7%	4.3%
Total Debt-to-Total Market Capitalization	46.2%	47.0%	45.8%	44.2%	48.3%
Secured Debt as a % of Total Debt	27.5%	30.4%	30.6%	30.7%	42.4%
Unsecured Debt as a % of Total Debt	72.5%	69.6%	69.4%	69.3%	57.6%
Net Debt-to-Annualized Adjusted EBITDA (quarter annualized)	6.6x	6.4x	6.7x	6.5x	6.7x
Net Debt plus Preferred-to-Annualized Adjusted EBITDA (quarter annualized)	7.1x	6.4x	6.7x	6.5x	6.7x
Weighted Average Maturity of Total Debt (years)	2.2	2.7	2.7	3.0	3.0

 

1

Total Debt is not adjusted for the amortization of debt issuance costs or fair market premiums or discounts.

2

Common shares and units outstanding include 490 units outstanding at the end of each of the quarters presented.

3

Based on closing price as of last trading day of the quarter and common shares and units as of the period ended.

4

As of September 30, 2024, our outstanding principal amount associated with drawn principal is $60,910 plus unpaid cash and PIK dividends of $426.

5

Market value of shares and units plus total debt and preferred stock as of period end.

 

Net Asset Value Components

As of September 30, 2024

Unaudited ($ in thousands)

 

 

Operational & Portfolio Information

 

Leasing Activity

As of September 30, 2024

Unaudited

Lease Renewals and New Leases

Year	Type	Square Footage	Percent	Expiring Rent	New Rent	% Change	Tenant Improvements1	Lease Commissions1
2021	Renewals	2,487,589	49.3%	$         4.25	$       4.50	5.9%	$         0.19	$    0.10
	New Leases	2,557,312	50.7%	$         3.76	$       4.40	17.0%	$         0.23	$    0.22
	Total	5,044,901	100.0%	$         4.00	$       4.45	11.1%	$         0.21	$    0.16
2022	Renewals	4,602,355	60.2%	$         4.31	$       4.87	13.1%	$         0.15	$    0.16
	New Leases	3,041,526	39.8%	$         3.51	$       4.51	28.6%	$         0.40	$    0.23
	Total	7,643,881	100.0%	$         3.99	$       4.73	18.5%	$         0.25	$    0.19
2023	Renewals	3,945,024	70.4%	$         3.75	$       4.36	16.3%	$         0.14	$    0.15
	New Leases	1,654,919	29.6%	$         3.82	$       5.03	31.7%	$         0.35	$    0.35
	Total	5,599,943	100.0%	$         3.77	$       4.56	21.0%	$         0.21	$    0.21
Q1 2024	Renewals	928,217	66.9%	$         4.71	$       4.99	5.9%	$         0.17	$    0.12
	New Leases	459,760	33.1%	$         3.41	$       5.06	48.4%	$         0.12	$    0.20
	Total	1,387,977	100.0%	$         4.28	$       5.01	17.1%	$         0.15	$    0.14
Q2 2024	Renewals	1,610,786	88.9%	$         4.09	$       4.86	18.8%	$         0.07	$    0.10
	New Leases	201,153	11.1%	$         5.97	$       7.13	19.5%	$         0.73	$    0.54
	Total	1,811,939	100.0%	$         4.30	$       5.11	18.8%	$         0.14	$    0.15
Q3 2024	Renewals	598,858	54.7%	$         3.83	$       4.18	9.1%	$         0.10	$    0.13
	New Leases	496,257	45.3%	$         4.07	$       4.71	15.7%	$         0.38	$    0.25
	Total	1,095,115	100.0%	$         3.94	$       4.42	12.2%	$         0.23	$    0.18
YTD 20242	Renewals	3,137,861	73.1%	$         4.22	$       4.77	13.0%	$         0.11	$    0.11
	New Leases	1,157,170	26.9%	$         4.14	$       5.27	27.3%	$         0.36	$    0.29
	Total	4,295,031	100.0%	$         4.20	$       4.90	16.7%	$         0.19	$    0.17

 

Note: Lease renewals and new lease activity excludes leases with terms less than six months, and leases associated with construction.

1

Shown as per dollar, per square foot, per year.

2

Executed leases scheduled to commence during 2024, which includes the third quarter activity, total an aggregate of 4,295,031 square feet, all of which are associated with terms of at least six months. The Company will experience a 16.7% increase in rental rates on a cash basis from these leases.

 

Leasing Activity (continued)

As of September 30, 2024

Unaudited

 

Glossary

 

This glossary contains additional details for sections throughout this Supplemental Information, including explanations and reconciliations of certain non-GAAP financial measures, and the reasons why we use these supplemental measures of performance and believe they provide useful information to investors. Additional detail can be found in our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, as well as other documents filed with or furnished to the SEC from time to time.

Non-GAAP Financial Measures Definitions:

Net Operating Income (NOI): We consider net operating income, or NOI, to be an appropriate supplemental measure to net income in that it helps both investors and management understand the core operations of our properties. We define NOI as total revenue (including rental revenue and tenant reimbursements) less property-level operating expenses. NOI excludes depreciation and amortization, general and administrative expenses, impairments, gain/loss on sale of real estate, interest expense, and other non-operating items.

Cash Net Operating Income (Cash NOI): We define Cash NOI as NOI excluding straight-line rent adjustments and amortization of above and below market leases.

EBITDAre and Adjusted EBITDA: We define earnings before interest, taxes, depreciation and amortization for real estate in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”). EBITDAre represents net income (loss), computed in accordance with GAAP, before interest expense, tax, depreciation and amortization, gains or losses on the sale of rental property, appreciation/(depreciation) of warrants, loss on impairments, and loss on extinguishment of debt. We calculate Adjusted EBITDA by adding or subtracting from EBITDAre the following items: (i) non-cash stock compensation, (ii) loss on extinguishment of debt, (iii) acquisition expenses (iv) the proforma impacts of acquisition, dispositions and developments and (v) non-cash impairments on real estate lease. We believe that EBITDAre and Adjusted EBITDA are helpful to investors as supplemental measures of our operating performance as a real estate company as they are direct measures of the actual operating results of our industrial properties. EBITDAre and Adjusted EBITDA should not be used as measures of our liquidity and may not be comparable to how other REITs calculate EBITDAre and Adjusted EBITDA.

Funds From Operations (FFO): Funds from operations, or FFO, is a non-GAAP financial measure that is widely recognized as a measure of a REIT’s operating performance, thereby, providing investors the potential to compare our operating performance with that of other REITs. We consider FFO to be an appropriate supplemental measure of our operating performance as it is based on a net income analysis of property portfolio performance that excludes non-cash items such as depreciation. The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time. Since real estate values rise and fall with market conditions, presentations of operating results for a REIT, using historical accounting for depreciation, could be less informative. In December 2018, NAREIT issued a white paper restating the definition of FFO. The purpose of the restatement was not to change the fundamental definition of FFO, but to clarify existing NAREIT guidance. The restated definition of FFO is as follows: Net Income (Loss) (calculated in accordance with GAAP), excluding: (i) Depreciation and amortization related to real estate, (ii) Gains and losses from the sale of certain real estate assets, (iii) Gain and losses from change in control, and (iv) Impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. We define FFO, consistent with the NAREIT definition. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect FFO on the same basis. Other equity REITs may not calculate FFO as we do, and, accordingly, our FFO may not be comparable to such other REITs’ FFO. FFO should not be used as a measure of our liquidity and is not indicative of funds available for our cash needs, including our ability to pay dividends.

 

Glossary (continued)

 

Non-GAAP Financial Measures Definitions (continued):

Core Funds from Operations (Core FFO): We calculate Core FFO by adjusting FFO for items such as dividends paid (or declared) to holders of our preferred stock and redeemable non-controlling interest, acquisition and transaction related expenses for transactions not completed, loss on financing transaction, and certain non-cash operating expenses such as impairment on real estate lease, unrealized loss/(gain) on financing instruments, and loss on extinguishment of debt. We believe that Core FFO is a useful supplemental measure in addition to FFO by adjusting for items that are not considered by us to be part of the period-over-period operating performance of our property portfolio, thereby, providing a more meaningful and consistent comparison of our operating and financial performance during the periods presented below. As with FFO, our reported Core FFO may not be comparable to other REITs’ Core FFO, should not be used as a measure of our liquidity, and is not indicative of funds available for our cash needs, including our ability to pay dividends.

Adjusted Funds from Operations attributable to common stockholders (AFFO): Adjusted funds from operations, or AFFO, is presented in addition to Core FFO. AFFO is defined as Core FFO, excluding certain non-cash operating revenues and expenses, capitalized interest and recurring capitalized expenditures. Recurring capitalized expenditures include expenditures required to maintain and re-tenant our properties, tenant improvements and leasing commissions. AFFO further adjusts Core FFO for certain other non-cash items, including the amortization or accretion of above or below market rents included in revenues, straight line rent adjustments, non-cash equity compensation and non-cash interest expense.

We believe AFFO provides a useful supplemental measure of our operating performance because it provides a consistent comparison of our operating performance across time periods that is comparable for each type of real estate investment and is consistent with management's analysis of the operating performance of our properties. As a result, we believe that the use of AFFO, together with the required GAAP presentations, provide a more complete understanding of our operating performance.

As with Core FFO, our reported AFFO may not be comparable to other REITs’ AFFO, should not be used as a measure of our liquidity, and is not indicative of funds available for our cash needs, including our ability to pay dividends.

Net Debt and Preferred Stock to Adjusted EBITDA: Net debt and preferred stock (inclusive of preferred stock and redeemable non-controlling interest) to Adjusted EBITDA is a non-GAAP financial measure that we believe is useful to investors as a supplemental measure in evaluating balance sheet leverage. Net debt and preferred stock is equal to the sum of total consolidated and our pro rata share of unconsolidated joint venture debt less cash, cash equivalents, and restricted cash, plus preferred stock calculated at its liquidation preference as of the end of the period.

Glossary (continued)

 

Other Definitions:

GAAP: U.S. generally accepted accounting principles.

Lease Type: We define our triple net leases in that the tenant is responsible for all aspects of and costs related to the property and its operation during the lease term. We define our modified net leases in that the landlord is responsible for some property related expenses during the lease term, but the cost of most of the expenses is passed through to the tenant. We define our gross leases in that the landlord is responsible for all aspects of and costs related to the property and its operation during the lease term.

Non-Recurring Capital Expenditures: Non-recurring capital expenditures include capital expenditures of long-lived improvements required to upgrade/replace existing systems or items that previously did not exist. Non-recurring capital expenditures also include costs associated with repositioning a property, redevelopment/development and capital improvements known at the time of acquisition.

Occupancy: We define occupancy as the percentage of total leasable square footage as the earlier of lease term commencement or revenue recognition in accordance to GAAP as of the close of the reporting period.

Recurring Capital Expenditures: Recurring capitalized expenditures includes capital expenditures required to maintain and re-tenant our buildings, tenant improvements and leasing commissions.

Replacement Cost: is based on the Marshall & Swift valuation methodology for the determination of building costs. The Marshall & Swift building cost data and analysis is widely recognized within the U.S. legal system and has been written into in law in over 30 U.S. states and recognized in the U.S. Treasury Department Internal Revenue Service Publication. Replacement cost includes land reflected at the allocated cost in accordance with Financial Accounting Standards Board ("FASB") ASC 805.

Same Store Portfolio: The Same Store Portfolio is a subset of the consolidated portfolio and includes properties that are wholly owned by the Company as of December 31, 2022. The Same Store Portfolio is evaluated and defined on an annual basis based on the growth and size of the consolidated portfolio. The Same Store Portfolio excludes properties that are classified as repositioning, lease-up during 2023 or 2024 (5 buildings representing approximately 1,553,000 of rentable square feet placed into service during 2023 or 2024) or under contract for sale. For 2024, the Same Store Portfolio consists of 146 properties aggregating 31.2 million rentable square feet. Properties that are being repositioned generally are defined as those properties where a significant amount of space is held vacant in order to implement capital improvements that enhance the functionality, rental cash flows, and value of that property. We define a significant amount of space at a property using both the size of the space and its proportion to the properties total square footage as a determinate. Our computation of same store NOI may not be comparable to other REITs.

Weighted Average Lease Term Remaining: The average contractual lease term remaining as of the close of the reporting period (in years) weighted by square footage.

 

Glossary (Financials)

 

Balance Sheet:

Financing lease liability: As of September 30, 2024, we have a single finance lease in which we are the sublessee for a ground lease with a remaining lease term of approximately 31 years. Refer to our most recent Quarterly Report on Form 10-Q for expanded disclosure.

Forward contract asset: Represents the FMV of the Company’s contractual obligation to draw the undrawn $79.1 million of the Redeemable Non-controlling Series C Preferred Units as of the end of the period.

Interest rate swaps: Represents the fair value of the Company's interest rate swaps. We minimize the credit risk in our derivative financial instruments by transacting with various high-quality counterparties. Our exposure to credit risk at any point is generally limited to amounts recorded as assets on the accompanying consolidated balance sheets. A summary of the Company's interest rate swaps and accounting are detailed in Note 6 of our most recent Quarterly Report on Form 10-Q.

Net investment in sales-type lease: During Q1 2024, the tenant occupying a single tenant industrial property located in Columbus, Ohio, provided notice of its intention to exercise its option to purchase the property at a fixed price of $21,480. As a result, we reclassified the respective real estate property to net investment in sales-type lease totaling $21,480 on our condensed consolidated balance sheets, effective as of the date of tenant notice, in the following amounts: (i) $19,605 from Real estate properties, (ii) $8,094 from Accumulated depreciation, (iii) $877 from net Deferred lease intangible assets, and (iv) $1,062 from Other assets. Further, we recognized a Gain on sale of real estate of $8,030 related to this transaction. On August 30, 2024, we completed the sale of the property and recognized selling costs of $234.Earnings from our Net investment in sales-type lease are included in Rental revenue in the condensed consolidated statements of operations and totaled $213 and $0 for the three months ended September 30, 2024 and 2023, respectively, and $640 and $0 for the nine months ended September 30, 2024 and 2023, respectively. Prior to this reclassification to Net investment in sales-type lease, earnings from this lease were recognized in Rental revenue in the condensed consolidated statements of operations. Net investment in sales-type leases are assessed for credit loss allowances. No such allowances were recorded as of September 30, 2024 or December 31, 2023.

Real estate assets/liabilities held for sale, net: On Augst 26, 2024, the Operating Partnership (the “OP”) entered into a Contribution Agreement with an affiliate of Six Street Partners, LLC (the “Investor”), in which the Operating Partnership will contribute 34 wholly-owned properties located in and around Chicago (the “Chicago Properties”) into a joint venture with the Investor in which will be owned 35% by a wholly-owned subsidiary of the Operating Partnership and 65% by the Investor. The contribution and closing conditions of the joint venture is expected to occur during the fourth quarter of 2024. The aggregate purchase price for the Chicago Properties is $356,000, which includes the assumption by the joint venture of $56,898 of debt held by the OP that is currently outstanding with Transamerica Life Insurance Company and secured by certain Chicago Properties. An additional $10,506 of debt held by the OP outstanding with Midland Nation Life Insurance and secured by a single Chicago Property.

Upon execution of the Contribution Agreement, the carrying amount of the Chicago Properties were classified as "Real estate assets held for sale, net" and the corresponding carrying amount of the secured mortgages (the Transamerica Loan and the Midland National Life Insurance Mortgage) were classified "Real estate liabilities held for sale, net" on the condensed consolidated balance sheets. Upon classifying the Chicago Properties as being held for sale, the Company ceased recognizing depreciation on the Chicago Properties.

Unsecured debt, net: Includes borrowings under line of credit and term loans. Refer to Debt Summary in this Supplemental Information for additional details.

Glossary (Financials)

 

Redeemable Non-controlling interest - Series C Preferred Units: On August 26, 2024, the Company, through its Operating Partnership (“OP”), issued 60,910 Non-Convertible Series C Preferred Units (“Series C Preferred Units”) at a price of $1,000 per Series C Preferred Unit, for gross proceeds of $60,910, to the Investor. Bundled with the issuance of the 60,910 Series C Units, the Operating Partnership also issued (i) a forward contract in which the OP will sell an addition 79,090 Series C Preferred Units at a price of $1,000 per unit for gross proceeds of $79,090 before May 23^rd, 2025, and (ii) warrants that are exercisable into OP Partnership Units (see “Warrant Liability”). The gross proceeds at issuance were first allocated to the Warrants, resulting in the Company recognizing a book loss of $21 million and recording the Series C Preferred Units for a nominal amount of $0.01.

Holders are entitled to receive, on a cumulative basis, (i) distributions in the form of fully paid Series C Preferred Units known as “PIK Distributions” which will be payable at the “PIK Distribution Rate” and (ii) distributions in the form of cash known as “Cash Distributions” which will be payable at the “Cash Distribution Rate.”

The Cash Distribution Rate is a rate per annum equal to (a) 4.0% within the first 5 years after August 26, 2024 (the “Original Issue Date”), (b) 8.0% in the 6th and 7th years after the Original Issue Date, and (c) 12.0% starting from the 8th year after the Original Issue Date and each subsequent year thereafter. The PIK Distribution Rate is a rate per annum equal to (a) within the first 5 years after the Original Issue Date, 7.0% less the applicable Cash Distribution Rate, (b) in the 6th and 7th years after the Original Issue Date, the greater of: (i) 12.0% or (ii) SOFR plus 650 basis points less the applicable Cash Distribution Rate, and (c) from the 8th year after the Original Issue Date and each subsequent year thereafter, the greater of (i) 16.0% or (ii) SOFR plus 1,050 basis points, less the applicable Cash Distribution Rate. Both PIK and Cash Distributions are recognized within Net income (loss) attributable to non-controlling interest within our condensed consolidated statements of operation and are recognized as a deduction to FFO to derive Core FFO.

Warrant liability: Represents the FMV of the warrants issued by the OP on August 26, 2024, to issue and sell to the holder the right to purchase Operating Partnership Units (“OP Units”) as of the end of the respective period. As of September 30, 2024, the associated strike price and amount of units outstanding for each tranche of warrants are as follows:

-

The first tranche is for 4,456,832 OP Units with an initial strike price of $24.98 per unit

-

The second tranche is for 2,971,221 OP Units with an initial strike price of $25.97 per unit

-

The third tranche is for 4,456,832 OP Units with an initial strike price of $26.96 per unit

The warrants provide antidilution adjustments, as well as adjustments in the strike price of the warrants to an amount equal to the issuance price per common share or OP Unit if the Company or the OP issues (or otherwise sells) any shares/units of common stock, OP Units, or equity-linked securities and if the Company or the OP reprices or amends any of its existing equity-linked securities. Such adjustments include the occurrence of stock dividends, splits or combinations, the distribution of rights, options or warrants of the Company’s common stock, distribution if shares of capital stock or other property, cash dividends and distributions, tender or exchange offers made by the Company or the Parent for shares of common stock and degressive issuances.

Holders of the warrants will have the right to submit all, or any whole number of warrants that is less than all of their warrants for exercise at any time during the first 5 years after the date of issuance of the warrants. This can be extended to 7 years if the volume-weighted average price of the Common Stock for the 90 consecutive trading days ending on the 5^th anniversary of the issuance date is equal to or less than the Strike Price of the warrants.

Upon the exercise of any warrant, the Company at its election will settle such exercise by paying or delivering OP Units according to either a physical or cashless settlement. In the event the Company elects to deliver OP units upon settlement, the holder can elect to exchange the OP Units into common shares of the Company on a one-to-one basis, however, the Company can elect to settle these OP Units for either cash or shares of the Company’s common stock.

 

Glossary (Financials)

 

Consolidated Statements of Operations:

Gain on sale of real estate: During Q1 2024, the tenant occupying an industrial property located in Columbus, Ohio, provided notice of its intention to exercise its option to purchase the property. We re-evaluated the lease classification of the lease in accordance to ASC 842, Leases, concluding that the lease had transitioned to a sales-type lease, thereby recognizing a $8,030 gain on sale of real estate during Q1 2024. On August 30, 2024, we completed the sale of the property and recognized selling costs of $234. During Q2, 2024, the Company sold one 221,911 square foot property in Kansas City, MO, recognizing a net gain of $849.

Loss on financing transaction: Loss on financing transaction incurred during the three and nine months ended September 30, 2024, is comprised by the initial loss of on the issuance of the Redeemable Non-controlling interest - Series C Preferred Units, the forward contract asset, and the warrants issued August 26, 2024, origination and transactions costs incurred as part of the financing transaction and the change in the respective fair market value of the future contract asset and warrants between the issuance date and September 30, 2024. Such costs are added back to our FFO to derive Core FFO as they are not considered by us to be part of the period-over-period operating performance of our property portfolio.

Net income (loss) per share attributable to common stockholders – Basic and Diluted: Refer to the Q3 2024 Quarterly Report on Form 10-Q for additional information.

 

Non-GAAP Measurements:

Gain on sale of real estate: See definition above in the Consolidated Statements of Operations section.

Loss on financing transaction: See definition above in the Consolidated Statements of Operations section.

Pro forma effect of acquisitions/developments: Represents the estimated impact of wholly owned acquisitions and development properties as if they had been acquired or stabilized on the first day of each respective quarter in which the acquisitions occurred or developments were placed in-service. We have made a number of assumptions in such estimates and there can be no assurance that we would have generated the projected levels of EBITDA had we owned the acquired properties and/or placed the development properties in-service as of the beginning of the respective periods.

Recurring capital expenditures: Excludes non-recurring capital expenditures of $8,229 and $8,132 for the three months ended September 30, 2024 and 2023, respectively and $16,982 and $24,185 for the nine months ended September 30, 2024 and 2023, respectively.

Redeemable Non-controlling interest - Series C Preferred Units: See definition on page 32 in the Balance Sheet section.

Weighted-average common shares and units outstanding: Weighted-average common shares and units outstanding includes common stock, OP units, and restricted stock units as of September 30, 2024 and excludes 36,712 performance stock units as they are deemed to be non-participatory.

 

Exhibit 99.3

 

 

 

THIRD QUARTER 2024 PREPARED COMMENTARY

NOVEMBER 6, 2024

 

This prepared commentary should be read in conjunction with the earnings press release, quarterly supplemental financial information and the Form 10-Q. All this information can be found on our Investor Relations page at ir.plymouthreit.com.

 

Before we get into the relevant detail from each area of the Company, we’d like to call out some of the important takeaways from the quarter:

·

The results were heavily influenced by the two tenants in Cleveland that led to unexpected loss of rental revenue and higher expenses to make the spaces ready for leasing and the previously announced vacate within the 769,500-square-foot building in St. Louis.

·

SSNOI growth, excluding early termination fees, of 0.6% on a cash basis which was negatively impacted by the two tenant issues in Cleveland and unanticipated removal costs related to one of the two tenant vacates.

·

We have addressed 75.5% of our 2024 expirations and 43.0% of our 2025 expirations.

·

We expanded our presence in Memphis with the acquisition of a 1.6 million-square-foot portfolio of industrial buildings for a purchase price of $100.5 million and an initial NOI yield of 8.0%.

·

The development program is now 100% leased with our last project coming online on October 31.

·

We announced a strategic transaction with Sixth Street that provides up to $500 million of capital to pursue acquisitions.

·

Net debt to Adjusted EBITDA was up sequentially from 6.4X at June 30 to 6.6X at September 30 and net debt plus preferred to Adjusted EBITDA was 7.1X.

·

Upsized aggregate borrowing capacity to $1.5 billion with a new $600 million unsecured credit facility.

·

We lowered our 2024 guidance range for net income and Core FFO based on delayed lease commencements, namely the previously disclosed buildings in Chicago and Cleveland (and non-recoverable charges associated with the vacancy of one of these buildings), the remaining development space in Cincinnati, coupled with transitory vacancy in five buildings across three markets, and the projected impact from the Sixth Street transaction.

 

Development Program Update

The last project in the first phase of our 772,622-square-foot development program, the 52,920-square-foot fully leased industrial building in Jacksonville, was delivered on October 31 with cash rents commencing on December 1. Having completed a 10-year lease for 53,352 square feet during the quarter for our last remaining space at Fisher Industrial Park in Cincinnati, we are now 100% leased in our development program.

 

Leasing Update

Leasing activity at our properties remains strong with 1.1 million square feet of leases commencing during Q3 at a rate 12.2% higher than expiring rents on a cash basis. Consistent with our expectations, these results are tempered by fixed rate renewals that kicked in during the quarter; there will be no further fixed rate renewals impacting 2024 rate increases. The leasing results for Q3 are broken down as follows for leases commencing during these periods (calculated on a cash basis and excluding development program leases):

·

Third quarter

o

598,858 square feet of renewal leases commenced at an 9.1% increase

o

Renewal rate was 54.7%

o

11.9% of these renewals were contractual, which are typically at lower rental rate increases and are frequently exercised earlier in the year

o

496,257 square feet of new leases commenced at a 15.7% increase

o

Blended increase of 12.2% on a cash basis

 

With additional activity performed through November 4, we now have addressed 5,783,332 square feet, or over 75.5% of the 2024 expirations. With a blended rental rate increase of 17.2% achieved to date, in addition to the deals we are working on for the leases yet to expire, we expect to be slightly below the mark-to-market (MTM) range of 18% to 20% we’ve previously targeted.

·

Full year 2024 (executed through November 4, 2024)

o

4,180,593 SF of renewal leases signed at a 12.8% increase

o

Renewal rate so far of 72.3%

o

21.1% of these renewals were contractual

o

1,602,739 SF of new leases signed at a 28.3% increase

o

Blended increase of 17.2%

 

During 2025, there will be an additional 1,035,221 square feet of potential fixed rate renewals associated with 16 leases, which represents 11.5% of all the 2025 leases expiring.  The amount declines to 806,966 square feet in 2026 associated with 21 leases, which represents 12.8% of all the leases expiring. If we add in annual lease escalators that are now approximately 3% across the portfolio, we have a significant opportunity to drive organic growth through our leasing activities.

 

Accredo Health came into our top 10 tenant list by way of the recent Memphis acquisition. They have 158,000 square feet out of a total of 251,000 square feet that is set to expire at year end. There are no other top 10 tenants with 2024 expirations. Communication Test Design, Inc. in Memphis extended for one year through the end of 2025 and is expected to extend longer term going forward. We are in renewal discussions with Geodis and ODW, two other top 10 tenants, who have 2025 expirations.

 

As previously highlighted in our Q2 report and reported in our Q3 leasing activity release, overall occupancy declined to 94.2% in the third quarter from 97.0% in the second quarter. This was due to a 230-basis-point impact from the expiration of the St. Louis lease detailed below, a 20-basis-point impact from the inclusion of the recently acquired Memphis value-add portfolio, and a 30-basis-point impact from net leasing activity in the quarter. Same store occupancy was down to 97.5% at the end of Q3, a 70-basis-point reduction from Q2 due to a net 225,756 square feet expiring (157,000 square feet in Indianapolis and 61,000 square feet in Memphis where we have prospects identified that we expect to lease quickly).

 

We continue to actively market our vacant 769,500-square-foot Class A industrial building in the Metro East submarket of St. Louis to users across the country. We have had steady interest, and as our prospects continue to work on their business plans, we expect to refine our lease proposals to meet their requirements. We are confident we will be able to get this building leased given its location and recent build.

 

Excluding the vacancies in Chicago and St. Louis, there was an additional 942,866 square feet that was vacant at the end of Q3 representing 2.7% of our portfolio. This amount includes 487,000 square feet of transitory vacancy within five buildings with anticipated lease start dates crossing over into 2025. We are expecting leases on 70% of that space to be executed this year. We have prospects on the remaining 455,866 square feet that we hope to turn into tenants in early 2025 as well.

 

Looking ahead to the remainder of the year, through November 4, we have already leased 238,910 square feet of the 370,995 square feet that’s shown in our Q3 supplemental scheduled to expire. We are in the process of closing on 46,000 square feet with the remaining balance being marketed.

 

For 2025, we have already addressed 43.0%, or 3,825,070 square feet of the 8,965,319 square feet originally projected to expire during the year. These leases are at a blended 13.4% increase over expiring cash rent. The executed leases include 883,023 square feet of contractual renewals, equating to 23.1% of the leases addressed.

 

 

Disposition Update

As previously disclosed, the tenant occupying 3500 Southwest Boulevard in Columbus acquired the property for approximately $21.5 million in August. The proceeds from this sale were used to pay down outstanding debt on the credit facility from the Memphis portfolio acquisition.

 

Acquisition Update

During the quarter, we closed on a portfolio in Memphis that is what we would describe as the classic PLYM portfolio. We acquired a 1,621,241-square-foot industrial portfolio for $100.5 million in cash with an initial NOI return of 8.0%. This portfolio is located in the Memphis Southeast and Northeast submarkets and consists of 14 buildings that are 94% leased as of September 30 to 46 tenants with a WALT of 3.4 years. We expect to capitalize on organic rent growth through rollovers given all the in-place leases either have market rate options or no options at all. All in-place leases are triple net leases. In addition to the existing buildings, the portfolio has one, seven-acre parcel of excess land capable of supporting approximately 115,000 square feet of new industrial space in the Northeast submarket.

 

Sixth Street Update

As previously disclosed, the Sixth Street investment in the Company is facilitated through two principal components: (i) $116 million, or 65% of the required equity in a joint venture wherein the Company will contribute its Chicago portfolio of 34 wholly-owned properties comprising approximately 5.9 million square feet, and (ii) $140 million of non-convertible Series C Cumulative Preferred Units (“Series C”).

 

The Chicago portfolio will be contributed at a 6.20% cap rate based on approximately $22 million in net operating income, equivalent to approximately $356 million of gross asset value. The portfolio will be financed at closing with approximately $178 million (50% LTV) of secured mortgages. The joint venture will generate approximately $294 million of gross proceeds to the Company, which results in approximately $212 million of deployable proceeds after the mortgage assumption, transaction costs and capital expenditure escrows.

 

The Series C, which can be redeemed at any time following the initial closing, had an initial closing of $61.0 million on August 26, 2024, and has an additional $79.0 million to be provided no later than nine months after the initial closing. Sixth Street is paid a return of 7.0% per year (4.0% cash pay portion with a 3.0% PIK), which increases after years five and seven. We have included the full 7% of the Series C dividend in our Core FFO and AFFO calculations. Sixth Street is entitled to the greater of its $140 million investment plus accrued but unpaid distributions or a preferred multiple of 1.35x the total closing amount of $140 million less any previously paid cash distributions.

 

In addition, Sixth Street was issued 11.76 million detachable warrants (“Warrants”) to purchase OP common units at various strike prices. The term of the Warrants is five years with a two-year extension option based on certain conditions. Plymouth has the option of net settlement of these Warrants at exercise either through cash or shares.

 

Balance Sheet Update

There are a number of items to discuss regarding the balance sheet, namely the deal components of the Sixth Street transaction and their respective presentation and impacts on the financial statements.

 

To start, in connection with the pending closing of the joint venture with Sixth Street, we have classified the carrying amount of the Chicago properties as “Real estate assets held for sale, net” and “Real estate liabilities held for sale, net” and ceased recognizing depreciation on those same properties. The real estate assets held for sale, net consisting of land, building and improvements, site improvements, CIP, accumulated depreciation and deferred lease intangibles sum to $199.5 million. The liabilities held for sale, net consisting of secured debt to be assumed or extinguished and deferred lease intangibles sum to $68.0 million.

 

Upon the closing of the joint venture, the Chicago properties will be deconsolidated and our initial investment in the unconsolidated joint venture will be recorded on the balance sheet and our share of net income or loss from the joint venture will be included within the statement of operations. We will include our share of the results of the unconsolidated joint venture for the purpose of calculating the non-GAAP measures of FFO, Adjusted EBITDA, and Net Debt metrics.

 

With respect to the issuance of the initial Sixth Street equity bundle – Series C and Warrants - the gross proceeds received of approximately $61.0 million (the first of two draws on the Series C) were first allocated to the fair market value (“FMV”) of the warrant liability, then the forward contract asset, resulting in the recognition of a book loss and the recording of the Series C at a nominal amount of $0.01. The forward contract asset represents our contractual obligation to draw the remaining approximately $79.0 million from the Series C. We have until May 2025 to draw the remaining amount and once drawn the forward contract asset will be relieved and the additional closings will be reflected as mezzanine equity on our balance sheet. The dividends associated with the Series C, 4% cash pay and 3% accrued, will be reported in our statement of operations as a below the line adjustment to net income (loss) and shown as an adjustment to arrive at Core FFO. As of September 30, 2024, the outstanding principal amount associated with the Series C is $61.0 million plus unpaid cash and accrued dividends of $0.4 million.

 

The Warrants are reflected at FMV in liabilities on the balance sheets and will be marked to market each reporting period as an unrealized gain (loss) in the statement of operations.

 

Beyond the Sixth Street transaction, our sale of a single-tenant industrial property located in Columbus, Ohio was fully consummated in August 2024. During Q1 2024, this property was classified as a net investment in sales-type lease upon the tenant exercise of a purchase option, and we recognized a gain of $8.0 million.

 

In terms of leverage, there were incremental draws on the line of credit to address the Memphis acquisition and an $18.1 million mortgage maturity, partially offset by proceeds from the Columbus, Ohio disposition and net proceeds from the Series C, representing a quarter-over-quarter increase in outstanding principal of $41.0 million. We will continue to operate in the 6X range for Net debt plus Series C to Adjusted EBITDA as we deploy the Sixth Street capital. At quarter end we saw Net debt plus Series C to Adjusted EBITDA at 7.1X due to the timing of the Chicago joint venture closing (expected to close in November 2024).

 

Leverage highlights as of September 30, 2024 are as follows (see pages 15-16 of the supplemental):

·

Net debt to Adjusted EBITDA of 6.6X; net debt plus Series C to Adjusted EBITDA of 7.1X

·

72.5% of our total debt is unsecured

·

89.2% of our debt is fixed, including with the use of interest rate swaps with a total weighted average cost of 3.93%

·

$153.6 million of capacity on our unsecured credit facility

 

We will expand our unsecured borrowing capacity and extend maturities with our new $600 million amended and restated unsecured credit facility. The new credit facility is comprised of:

·

A revolving credit facility that expanded from $350 million to $500 million, maturing in November 2028 (compared with August 2025 previously) and has one, one-year extension option, subject to certain conditions; and

·

A $100 million term loan that that now matures in November 2028 (compared with August 2026 previously) and has one, one-year extension option, subject to certain conditions.

 

The facility complements our existing $200 million term loan that matures in February 2027 and has a fixed rate swap of SOFR at 1.527% and an existing $150 million term loan that matures in May 2027 and has a fixed rate swap of SOFR at 2.904%. Our aggregate unsecured borrowing capacity is now $1.5 billion, providing us with ample liquidity to execute our growth plans.

 

Discussion of Third Quarter of 2024

Q3 Core FFO was $0.44 per share primarily due to carryover effects and non-recoverable costs associated with the previously announced vacancies and month-to-month occupancy that did not materialize which equated to a $0.03 impact. Additionally, we saw an increase in interest expense due to incremental draws on the line of credit to takedown the Memphis acquisition of $0.02 and a reduction in GAAP rent adjustments due to reduced free rent abatements, coupled with the continued burn off of below market rent amortization of $0.02. These impacts were partially offset by NOI contribution from the Memphis acquisition of $0.04.

 

 

Same store NOI, excluding early termination fees, increased 0.6% on a cash basis during the quarter which was well below what we had anticipated in the full year guidance we confirmed as recently as late August when we announced the Sixth Street transaction. Given the magnitude of the miss this quarter and the resulting change in full year guidance, it is worth walking through the components of this quarter’s performance.

 

The performance of the same store was primarily weighted by the aforementioned vacancies in Cleveland and unanticipated removal costs related to one of the two tenant vacates, which had an outsized effect in the quarter of approximately $1.2 million, or 370 basis points when looking back at the comparable period.

 

G&A for the quarter was slightly elevated compared with Q3 2023 results primarily due to timing of professional fees.

 

Interest expense during the third quarter was higher than the prior quarter due to the funding of the Memphis acquisition. As of September 30, 2024, our variable rate exposure was $96.4 million, which is the only outstanding balance on the line of credit that has not been fixed via interest rate swaps.

 

Discussion of 2024 Guidance and Assumptions

We adjusted our full year 2024 guidance ranges to account for the delayed lease commencements, namely the previously disclosed buildings in Chicago and Cleveland (and nonrecoverable charges associated with the vacancy of one of these buildings), the remaining development space in Cincinnati, in addition to the transitory vacancy in five buildings across three markets, and the projected impact from the Sixth Street transaction.

 

The bridge from the full year guidance provided in Q2 on a weighted average common shares and unit basis is as follows:

·

$1.89 at the mid-point of the guidance at Q2

·

(0.03) Q3 NOI shortfall

·

(0.01) 2 building Q4 vacancy in Cleveland

·

(0.01) delays on commencing leases and new leasing shifted to 2025

·

(0.01) impacts associated with the Sixth Street transaction

·

$1.83 at lower bound of updated guidance

 

The $1.84 midpoint of the updated guidance would include a favorable $0.01 per share impact from earlier-than-anticipated leasing commencements.

We lowered the SS NOI range of 5.00% to 5.25% for the impacts associated with the revised timing of the Cleveland lease-up and transitory vacancy limited to a handful of buildings.

 

All of this modifies the quarterly cadence we had initially forecasted for the second half of the year, offsetting the contribution from the stabilization of our phase 1 developments, execution and commencement on the 2024 lease expirations and improved flow through on tenant recoveries as a percentage of operating expenses.

 

Additionally, similar to what we’ve experienced year-to-date, we expect GAAP rent adjustments to remain subdued (meaning that there are less straight line rent adjustments included within Core FFO to report and therefore to project in guidance or modeling) as market rent adjustments recorded upon prior acquisitions continue to burn off, coupled with a decline in free rent concessions and other lease incentives during recent lease executions and negotiations.

 

We also adjusted the net income per share range to account for our estimated gain on the disposition of the Chicago JV portfolio, the reduction in anticipated depreciation and amortization expense and the aforementioned leasing impacts.

 

Conclusion

We believe the combination of the Sixth Street transaction that enables us to purchase up to $500 million in acquisitions and the increase in our unsecured borrowing capacity solves our current capital needs. We have always done a great job of keeping our buildings well-leased and expect that we will have a greater exit velocity and momentum wrapping up 2024. With a pursuit pipeline that is comprised of over 11 million square feet and over $1 billion in size, we believe we have the capital to expand our scale. Solid leasing and acquisition execution can set us up for a strong 2025.

 

Thank you for your continued interest and investment in Plymouth.

 

Jeff Witherell, Chairman and CEO

 

 

Disclaimers

 

References herein to “we”, “us”, and “our” refer to Plymouth Industrial REIT, Inc. (“Plymouth” or the “Company”)

 

 

 

 

Forward-Looking Statements

This commentary includes “forward-looking statements” that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, statements regarding future leasing activity and expectations for the timing of the closing of the Chicago Joint Venture. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release, which are not strictly historical statements, including, without limitation, statements regarding management's plans, objectives and strategies, constitute forward-looking statements. Such forward-looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statements, many of which may be beyond our control. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

 

 

 

v3.24.3

Cover	Nov. 06, 2024
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 06, 2024
Entity File Number	001-38106
Entity Registrant Name	PLYMOUTH INDUSTRIAL REIT, INC.
Entity Central Index Key	0001515816
Entity Tax Identification Number	27-5466153
Entity Incorporation, State or Country Code	MD
Entity Address, Address Line One	20 Custom House Street
Entity Address, Address Line Two	11th Floor
Entity Address, City or Town	Boston
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	2110
City Area Code	(617)
Local Phone Number	340-3814
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Stock, par value $0.01 per share
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	PLYM
Security Exchange Name	NYSE

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