Plymouth Industrial REIT (PLYM) Q3 2024 earnings summary

Executive summary

• Secured a transformative strategic partnership with Sixth Street, providing up to $500 million for acquisitions and recapitalizing the Chicago JV portfolio.

• Owns 158 industrial properties (223 buildings, 34.9M sq ft) with 94.2% occupancy as of September 30, 2024.

• Upsized and refinanced unsecured credit facilities to $1.5 billion, extending maturities and enhancing borrowing capacity.

• Focus remains on leasing opportunities, capital deployment, and expanding into real estate-related loans.

• Tenant challenges in Cleveland and St. Louis impacted Q3 vacancy, but active backfilling and legal actions are underway.

Financial highlights

• Q3 2024 rental revenue rose 3.4% year-over-year to $51.4M; total revenue up 4.2% to $51.9M, driven by the Memphis acquisition and higher base rents.

• Net loss attributable to common stockholders was $(15.7)M in Q3 2024 vs. $7.5M net income in Q3 2023, primarily due to non-recurring items and higher interest expense.

• Core FFO for Q3 2024 was $20.1M ($0.44/share and units), AFFO was $18.5M ($0.40/share and units).

• NOI for Q3 2024 was $34.1M; EBITDAre was $30.9M.

• Paid a quarterly dividend of $0.24 per share, annualized at $0.96.

Outlook and guidance

• Confident in achieving strong leasing momentum and growth into 2025, with prospects for St. Louis and Cleveland properties.

• 70% of transitory vacancy (487,000 sq ft) has executed leases that will commence and contribute to earnings in early Q1 2025.

• Average same store portfolio occupancy expected between 97.0% and 97.5% for 2024; same store NOI growth (cash basis) projected at 5.0% to 5.25%.

• 37% of annualized base rent leases expire between Q4 2024 and 2026, offering potential for rent increases.

• Company anticipates sufficient liquidity and capital resources to meet current obligations and scheduled debt maturities.