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 enhancing borrowing capacity to $1.5 billion through refinancing and upsizing unsecured credit facilities.

• Owns 158 industrial properties (223 buildings, 34.9M sq ft) with 94.2% occupancy as of September 30, 2024, focused on primary and secondary U.S. industrial markets.

• Completed a $100.5 million Memphis portfolio acquisition and have a $40 million Cincinnati portfolio under contract, with a pursuit pipeline exceeding 11 million sq ft and $1 billion, primarily in existing markets.

• Portfolio diversification includes joint ventures, potential mortgage/bridge/mezzanine loan origination, and expansion into real estate-related loans.

• Focus remains on leasing opportunities and capital deployment, with confidence in resolving recent tenant challenges and maintaining strong leasing momentum into 2025.

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 per share and units), AFFO was $18.5M ($0.40 per share and units), both down from Q3 2023.

• NOI for Q3 2024 was $34.1M, nearly flat year-over-year; EBITDAre was $30.9M, up slightly from $30.7M in Q3 2023.

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

Outlook and guidance

• Adjusted full year 2024 guidance: net income per share and units of $2.99 to $3.01; Core FFO per share and units of $1.83 to $1.85.

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

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

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

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