Plymouth Industrial REIT (PLYM) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $1.3 million ($0.03 per share), reversing a prior-year loss, driven by lower expenses, gains on property sales, and reduced depreciation, partially offset by a one-time tenant write-off.

• Core FFO was $21.8 million ($0.48 per share and unit), up from $19.9 million ($0.46 per share and unit) year-over-year; AFFO was $22.3 million ($0.49 per share and unit), up from $18.5 million ($0.42 per share and unit).

• Returned to a growth posture with an accretive Memphis acquisition (1.6M sq ft, $100.5M, 8.0% initial NOI yield), expanding presence to nearly 7 million sq ft in that market.

• Portfolio occupancy remained strong at 97.0% as of June 30, 2024, with same store occupancy at 98.2%.

• Q2 results exceeded expectations, aided by a one-time favorable real estate tax appeal in Chicago and disciplined expense management.

Financial highlights

• Total revenues for Q2 2024 were $48.7 million, down from $49.9 million in Q2 2023, mainly due to property dispositions, a one-time write-off, and lower occupancy, partially offset by higher rents.

• NOI for Q2 2024 was $35.1 million, up from $34.2 million in Q2 2023; EBITDAre was $31.2 million, up from $30.4 million.

• Cash same-store NOI growth was 9.7% in Q2, but would have been 6.4% excluding the Chicago tax benefit.

• Rental revenue for Q2 2024 was $48.6 million, down 2.5% year-over-year, mainly due to property dispositions and lower average occupancy.

• Net cash provided by operating activities for the six months was $36.5 million, down $3.0 million year-over-year.

Outlook and guidance

• Tightened 2024 Core FFO guidance to $1.88–$1.90 per share and unit; net income guidance $0.10–$0.12 per share and unit.

• Same store portfolio NOI growth (cash basis) expected at 7.0%–7.5% for 2024; average same store occupancy projected at 97.5%–98.0%.

• Full-year guidance range tightened at the top end due to portfolio challenges and timing of lease-ups.

• No additional one-time items anticipated in the second half; outlook incorporates recent credit loss and leasing assumptions.

• Guidance includes the Memphis acquisition and anticipated Columbus, OH property sale; excludes future acquisitions/dispositions.