Plymouth Industrial REIT (PLYM) Q4 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.

• Reported Q4 2024 net income attributable to common stockholders of $3.25 per share; full year 2024 net income of $3.06 per share.

• Core FFO for Q4 2024 was $0.46 per share and units; AFFO was $0.40 per share and units.

• Completed $356.6M Chicago portfolio joint venture, acquired Cincinnati properties for $20.1M, and authorized a $90M share repurchase program.

• Focus for 2025 is on leasing and capital deployment, with confidence in navigating tenant challenges and maintaining high occupancy.

Financial highlights

• Cincinnati acquisitions totaled 762,000 sq ft for $61.3 million.

• Q4 2024 net income attributable to common stockholders was $146.2M ($3.25/share), up from $9.2M ($0.20/share) in Q4 2023, mainly due to a $136.8M net gain on sale of real estate.

• Q4 2024 total revenues were $47.6M, down from $50.8M in Q4 2023, reflecting the deconsolidation of the Chicago Portfolio.

• At guidance midpoint, $360 million in acquisitions assumed for 2025, with $70 million already completed and the rest to be deployed evenly over the year.

• Initial cap rates for acquisitions estimated at 6.75%, with potential tightening.

Outlook and guidance

• 2025 guidance: net loss per share of $(0.26) to $(0.23); Core FFO per share and units of $1.85 to $1.89.

• Projected same store NOI growth (cash basis) of 6.0% to 6.5% and average same store occupancy of 95.0% to 97.0%.

• 2025 guidance assumes 380 basis points of occupancy improvement in the same store portfolio, equating to over 1 million sq ft of lease-up.

• Acquisition volume expected between $270M and $450M for 2025.

• Upside to guidance possible with accelerated deployment or faster lease-up; downside if deployment or leasing lags.