Plymouth Industrial REIT (PLYM) Q4 2023 earnings summary

Executive summary

• 2023 delivered cash rental-rate increases of 21.0% on commenced leases, while balance-sheet actions reduced near-term maturities and strengthened liquidity flexibility.

• Management cited a positive outlook in the Golden Triangle over the next two years and targeted strategic liquidity deployment, anticipating a better transaction environment later in 2024 and into 2025.

Financial highlights

• Q4 revenue was $50.8M vs. $47.3M YoY; NOI was $35.6M vs. $33.1M, and EBITDAre was $31.3M vs. $28.9M.

• Q4 net income attributable to common stockholders was $9.2M, or $0.20/share, vs. a $4.5M loss, or $(0.11)/share; improvement included a $10.5M real estate sale gain and higher NOI, partly offset by interest expense.

• FY revenue was $199.8M vs. $183.5M; NOI was $137.2M vs. $126.8M, and net income was $13.8M vs. a $17.1M loss.

Outlook and guidance

• FY 2024 Core FFO guidance is $1.88–$1.92/share and unit; net loss guidance is $(0.12)–$(0.08)/share and unit.

• Assumptions include cash same-store NOI growth of 7.0%–7.5%, average same-store occupancy of 97.5%–98.5%, G&A of $15.15M–$15.65M, and net interest expense of $37.15M–$37.65M.

• Guidance reflects the in-place portfolio as of February 19, 2024 and excludes prospective acquisitions, dispositions, and capitalization activity; the low end assumes a 769,500-square-foot Metro East tenant vacates July 31 and the space remains vacant through year-end.

• The midpoint assumes the Metro East tenant renews or the space is re-leased before July 31, 2024.