Plymouth Industrial REIT Reports Fourth Quarter Results
Plymouth Industrial REIT (NYSE: PLYM) reported a net loss of $8.1 million for Q4 2021, or $(0.23) per share, despite a 33% revenue increase to $39.9 million. The company's net operating income (NOI) rose to $26.6 million, with same-store NOI up 4.4% on a GAAP basis. The firm acquired 15 buildings totaling 3.2 million square feet for $216.5 million, realizing a weighted average initial yield of 6.2%. A quarterly cash dividend of $0.21 was declared, with a 4.8% increase planned for Q1 2022. 2022 guidance indicates continued growth potential, despite the current net loss forecast of $(0.41) to $(0.36) per share.
- Revenue increased to $39.9 million, up from $30.0 million year-over-year.
- Net operating income (NOI) rose to $26.6 million, up from $19.9 million in Q4 2020.
- Same-store NOI increased by 4.4% on a GAAP basis.
- Acquired 15 buildings totaling 3.2 million square feet for $216.5 million.
- Cash dividend declared at $0.21 per share, with a planned increase to $0.22 for Q1 2022.
- Reported a net loss of $8.1 million for Q4 2021, an increase from $6.0 million in Q4 2020.
- Increased interest and depreciation expenses related to acquisitions impacted profitability.
Fourth Quarter and Subsequent Highlights
-
Reported results for the fourth quarter of 2021 reflect a net loss attributable to common stockholders of
$8.1 million $(0.23) $26.6 million $0.46 $0.39 -
Collected approximately
99.9% of its rent for the fourth quarter. -
Same store NOI (“SS NOI”) increased
4.4% on a GAAP basis excluding early termination income for the fourth quarter compared with the same period in 2020; increased7.6% on a cash basis excluding early termination income and the impacts of free rent related to three leases aggregating approximately 900,000 square feet. -
During the fourth quarter and to date in the first quarter of 2022, acquired 15 industrial buildings totaling approximately 3.2 million square feet for
$216.5 million $73 6.2% . -
Commenced leases during the fourth quarter totaling 590,858 square feet with a
22.1% increase in rental rates on a cash basis from leases greater than six months; throughmid-February 2022 , approximately43.0% of 2022 lease expirations have already been addressed in addition to 140,000 square feet of vacancy leased to new tenants. -
Issued approximately 2.1 million common shares during the fourth quarter of 2021 and first quarter of 2022 through its ATM program at an average price of
$29.14 $60.9 million -
Declared a regular quarterly cash dividend for the fourth quarter of 2021 of
$0.21 $0.46 8757.50% Series A Cumulative Redeemable Preferred Stock (“the Preferred Stock”). -
Increased the regular quarterly cash dividend for the common stock effective with the first quarter of 2022 by
4.8% to$0.22 $0.88 - Issued full year 2022 guidance ranges for net loss, and Core FFO per weighted average common share and units.
Financial Results for the Fourth Quarter of 2021
Net loss attributable to common stockholders for the quarter ended
Consolidated total revenues for the quarter ended
NOI for the quarter ended
EBITDAre for the quarter ended
Core FFO for the quarter ended
AFFO for the quarter ended
See “Non-GAAP Financial Measures” for complete definitions of NOI, EBITDAre, Core FFO and AFFO and the financial tables accompanying this press release for reconciliations of net income to NOI, EBITDAre, Core FFO and AFFO.
Capital Markets Activity and Liquidity
During the fourth quarter of 2021, the Company issued approximately 1.82 million common shares through its ATM program at an average price of
On
As of
Investment Activity
As of
Subsequent to quarter end, the Company acquired 3 industrial buildings totaling 236,000 square feet for
Leasing Activity
Leases commencing during the fourth quarter of 2021 totaled an aggregate of 666,598 square feet, of which 590,858 square feet is associated with leases with terms of at least six months. The Company will experience a
Disposition Activity
During the fourth quarter of 2021, the Company sold a 74,613-square-foot industrial building in
Quarterly Distributions to Stockholders
On
On
Guidance for 2022
The Company issued its full year 2022 guidance ranges for net loss and Core FFO per weighted average common share and units and its accompanying guidance assumptions:
|
|
Full Year 2022 Range |
||||||||
|
|
Low |
|
High |
||||||
Net loss |
|
$ |
(0.41 |
) |
|
|
$ |
(0.36 |
) |
|
Add: Real estate depreciation & amortization |
|
2.39 |
|
|
|
2.39 |
|
|
||
Less: Preferred stock dividends |
|
(0.18 |
) |
|
|
(0.18 |
) |
|
||
Core FFO |
|
$ |
1.80 |
|
|
|
$ |
1.85 |
|
|
|
|
|
||||||||
-
General and administrative expenses of
$16.5 million $15.8 million $2.0 million -
Interest expense of
$30.3 million $29.8 million -
Same store portfolio NOI growth on a cash basis of
3.25% to4.25% increase for the year -
Same store portfolio occupancy of
96.5% to98.0% for the year - 37.0 million weighted average common shares and operating partnership units outstanding for the year
-
The completion of approximately
$197 million -
Our 2022 guidance does not include dispositions or capital markets activities or prospective acquisitions beyond the
$197 million
Earnings Conference Call and Webcast
The Company will host a conference call and live audio webcast, both open for the general public to hear, later today at
The live audio webcast of the Company’s quarterly conference call will be available online in the Investor Relations section of the Company’s website at ir.plymouthreit.com. The online replay will be available approximately one hour after the end of the call and archived for approximately 90 days.
About Plymouth
Forward-Looking Statements
This press release includes “forward-looking statements” that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release, which are not strictly historical statements, including, without limitation, statements regarding management's plans, objectives and strategies, constitute forward-looking statements. Such forward-looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statement, many of which may be beyond our control, including, without limitation, those factors described under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the
| CONSOLIDATED BALANCE SHEETS | ||||||||
| UNAUDITED | ||||||||
| (In thousands, except share and per share amounts) | ||||||||
|
|
|
||||||
2021 |
|
2020 |
||||||
| Assets | ||||||||
| Real estate properties | $ |
1,254,007 |
|
$ |
886,681 |
|
||
| Less accumulated depreciation |
|
(142,192 |
) |
|
(98,283 |
) |
||
| Real estate properties, net |
|
1,111,815 |
|
|
788,398 |
|
||
|
|
|||||||
| Cash |
|
26,232 |
|
|
15,668 |
|
||
| Cash held in escrow |
|
11,893 |
|
|
11,939 |
|
||
| Restricted cash |
|
5,249 |
|
|
4,447 |
|
||
| Deferred lease intangibles, net |
|
75,864 |
|
|
66,116 |
|
||
| Investment in unconsolidated joint venture |
|
5,833 |
|
|
6,683 |
|
||
| Other assets |
|
33,919 |
|
|
27,019 |
|
||
| Total assets | $ |
1,270,805 |
|
$ |
920,270 |
|
||
| Liabilities, Preferred Stock and Equity | ||||||||
| Liabilities: | ||||||||
| Secured debt, net | $ |
352,075 |
|
$ |
328,908 |
|
||
| Unsecured debt, net |
|
297,840 |
|
|
99,254 |
|
||
| Borrowings under line of credit |
|
38,000 |
|
|
90,000 |
|
||
| Accounts payable, accrued expenses and other liabilities |
|
66,880 |
|
|
49,335 |
|
||
| Deferred lease intangibles, net |
|
10,273 |
|
|
11,350 |
|
||
| Financing lease liability |
|
2,227 |
|
|
2,207 |
|
||
| Total liabilities |
|
767,295 |
|
|
581,054 |
|
||
| Preferred stock, par value |
||||||||
| Series A: 2,023,551 and 2,023,999 shares issued and outstanding at |
|
48,473 |
|
|
48,485 |
|
||
| Series B: 4,411,764 shares issued and outstanding at |
|
94,437 |
|
|
87,209 |
|
||
| Equity: | ||||||||
| Common stock, |
|
361 |
|
|
|
253 |
|
|
| Additional paid in capital |
|
532,666 |
|
|
360,752 |
|
||
| Accumulated deficit |
|
(177,258 |
) |
|
(162,250 |
) |
||
| Total stockholders' equity |
|
355,769 |
|
|
198,755 |
|
||
| Non-controlling interest |
|
4,831 |
|
|
4,767 |
|
||
| Total equity |
|
360,600 |
|
|
203,522 |
|
||
| Total liabilities, preferred stock and equity | $ |
1,270,805 |
|
$ |
920,270 |
|
||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| UNAUDITED | |||||||||||||||||
| (In thousands, except share and per share amounts) | |||||||||||||||||
For the Three Months |
|
For the Year |
|||||||||||||||
Ended |
|
Ended |
|||||||||||||||
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||||
| Rental revenue | $ |
39,802 |
|
$ |
29,952 |
|
$ |
140,270 |
|
$ |
109,836 |
|
|||||
| Management fee revenue and other income |
|
83 |
|
|
15 |
|
|
348 |
|
|
15 |
|
|||||
| Total revenues |
|
39,885 |
|
|
29,967 |
|
|
140,618 |
|
|
109,851 |
|
|||||
| Operating expenses: | |||||||||||||||||
| Property |
|
13,238 |
|
|
10,058 |
|
|
47,636 |
|
|
38,159 |
|
|||||
| Depreciation and amortization |
|
19,658 |
|
|
14,826 |
|
|
70,642 |
|
|
56,428 |
|
|||||
| General and administrative |
|
3,338 |
|
|
2,984 |
|
|
12,920 |
|
|
10,362 |
|
|||||
| Total operating expenses |
|
36,234 |
|
|
27,868 |
|
|
131,198 |
|
|
104,949 |
|
|||||
| Other income (expense): | |||||||||||||||||
| Interest expense |
|
(5,479 |
) |
|
(4,622 |
) |
|
(19,968 |
) |
|
(18,931 |
) |
|||||
| Impairment on real estate lease |
|
- |
|
|
- |
|
|
- |
|
|
(311 |
) |
|||||
| Earnings (loss) in investment of unconsolidated joint venture |
|
(175 |
) |
|
(19 |
) |
|
(850 |
) |
|
(19 |
) |
|||||
| Loss on extinguishment of debt |
|
(523 |
) |
|
- |
|
|
(523 |
) |
|
- |
|
|||||
| Gain on sale of real estate |
|
1,185 |
|
|
- |
|
|
1,775 |
|
|
- |
|
|||||
| Unrealized (appreciation) depreciation of warrants |
|
(3,312 |
) |
|
- |
|
|
(5,121 |
) |
|
(103 |
) |
|||||
| Total other income (expense) |
|
(8,304 |
) |
|
(4,641 |
) |
|
(24,687 |
) |
|
(19,364 |
) |
|||||
| Net loss |
|
(4,653 |
) |
|
(2,542 |
) |
|
(15,267 |
) |
|
(14,462 |
) |
|||||
| Less: Loss attributable to non-controlling interest |
|
(66 |
) |
|
(65 |
) |
|
(259 |
) |
|
(649 |
) |
|||||
| Net loss attributable to |
|
(4,587 |
) |
|
(2,477 |
) |
|
(15,008 |
) |
|
(13,813 |
) |
|||||
| Less: Preferred stock dividends |
|
1,652 |
|
|
1,605 |
|
|
6,608 |
|
|
6,444 |
|
|||||
| Less: Series B preferred stock accretion to redemption value |
|
1,807 |
|
|
1,854 |
|
|
7,228 |
|
|
7,416 |
|
|||||
| Less: Loss on extinguishment of Series A Preferred Stock |
|
- |
|
|
34 |
|
|
- |
|
|
34 |
|
|||||
| Less: Amount allocated to participating securities |
|
48 |
|
|
38 |
|
|
201 |
|
|
182 |
|
|||||
| Net loss attributable to common stockholders | $ |
(8,094 |
) |
$ |
(6,008 |
) |
$ |
(29,045 |
) |
$ |
(27,889 |
) |
|||||
| Net loss basic and diluted per share attributable to common stockholders | $ |
(0.23 |
) |
$ |
(0.24 |
) |
$ |
(0.94 |
) |
$ |
(1.52 |
) |
|||||
| Weighted-average common shares outstanding basic and diluted |
|
34,689,807 |
|
|
24,782,815 |
|
|
30,910,581 |
|
|
18,381,700 |
|
|||||
Non-GAAP Financial Measures Definitions
Net Operating Income (NOI): We consider net operating income, or NOI, to be an appropriate supplemental measure to net income in that it helps both investors and management understand the core operations of our properties. We define NOI as total revenue (including rental revenue and tenant reimbursements) less property-level operating expenses. NOI excludes depreciation and amortization, general and administrative expenses, impairments, gain/loss on sale of real estate, interest expense, and other non-operating items.
EBITDAre: We define earnings before interest, taxes, depreciation and amortization for real estate in accordance with the standards established by the
Funds from Operations (“FFO”): Funds from operations, or FFO, is a non-GAAP financial measure that is widely recognized as a measure of REIT operating performance. We consider FFO to be an appropriate supplemental measure of our operating performance as it is based on a net income analysis of property portfolio performance that excludes non-cash items such as depreciation. The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time. Since real estate values rise and fall with market conditions, presentations of operating results for a REIT, using historical accounting for depreciation, could be less informative. In
We define FFO consistent with the NAREIT definition. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect FFO on the same basis. Other equity REITs may not calculate FFO as we do, and, accordingly, our FFO may not be comparable to such other REITs’ FFO. FFO should not be used as a measure of our liquidity, and is not indicative of funds available for our cash needs, including our ability to pay dividends.
Core Funds from Operations (“Core FFO”): Core FFO represents FFO reduced by dividends paid (or declared) to holders of our preferred stock and excludes certain non-cash operating expenses such as impairment on real estate lease, unrealized appreciation/(depreciation) of warrants and loss on extinguishment of debt. As with FFO, our reported Core FFO may not be comparable to other REITs’ Core FFO, should not be used as a measure of our liquidity, and is not indicative of our funds available for our cash needs, including our ability to pay dividends.
Adjusted Funds from Operations (“AFFO”): Adjusted funds from operations, or AFFO, is presented in addition to Core FFO. AFFO is defined as Core FFO, excluding certain non-cash operating revenues and expenses, acquisition and transaction related costs for transactions not completed and recurring capitalized expenditures. Recurring capitalized expenditures include expenditures required to maintain and re-tenant our properties, tenant improvements and leasing commissions. AFFO further adjusts Core FFO for certain other non-cash items, including the amortization or accretion of above or below market rents included in revenues, straight line rent adjustments, non-cash equity compensation and non-cash interest expense.
We believe AFFO provides a useful supplemental measure of our operating performance because it provides a consistent comparison of our operating performance across time periods that is comparable for each type of real estate investment and is consistent with management’s analysis of the operating performance of our properties. As a result, we believe that the use of AFFO, together with the required GAAP presentations, provide a more complete understanding of our operating performance. As with Core FFO, our reported AFFO may not be comparable to other REITs’ AFFO, should not be used as a measure of our liquidity, and is not indicative of our funds available for our cash needs, including our ability to pay dividends.
| SUPPLEMENTAL RECONCILIATION OF NON-GAAP DISCLOSURES | |||||||||||||||||
| UNAUDITED | |||||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||||
For the Three Months |
|
For the Year |
|||||||||||||||
Ended |
|
Ended |
|||||||||||||||
| NOI: | 2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||
| Net loss | $ |
(4,653 |
) |
$ |
(2,542 |
) |
$ |
(15,267 |
) |
$ |
(14,462 |
) |
|||||
| General and administrative |
|
3,338 |
|
|
2,984 |
|
|
12,920 |
|
|
10,362 |
|
|||||
| Depreciation and amortization |
|
19,658 |
|
|
14,826 |
|
|
70,642 |
|
|
56,428 |
|
|||||
| Interest expense |
|
5,479 |
|
|
4,622 |
|
|
19,968 |
|
|
18,931 |
|
|||||
| Impairment on real estate lease |
|
- |
|
|
- |
|
|
- |
|
|
311 |
|
|||||
| Gain on sale of real estate |
|
(1,185 |
) |
|
- |
|
|
(1,775 |
) |
|
- |
|
|||||
| Unrealized appreciation (depreciation) of warrants |
|
3,312 |
|
|
- |
|
|
5,121 |
|
|
103 |
|
|||||
| Loss on extinguishment of debt |
|
523 |
|
|
- |
|
|
523 |
|
|
- |
|
|||||
| (Earnings) loss in investment of unconsolidated joint venture |
|
175 |
|
|
19 |
|
|
850 |
|
|
19 |
|
|||||
| Management fee revenue and other income |
|
(83 |
) |
|
(15 |
) |
|
(348 |
) |
|
(15 |
) |
|||||
| NOI | $ |
26,564 |
|
$ |
19,894 |
|
$ |
92,634 |
|
$ |
71,677 |
|
|||||
For the Three Months |
|
For the Year |
|||||||||||||||
Ended |
|
Ended |
|||||||||||||||
| EBITDAre: | 2021 |
|
2020 |
|
|
2021 |
|
2020 |
|||||||||
| Net loss | $ |
(4,653 |
) |
$ |
(2,542 |
) |
$ |
(15,267 |
) |
$ |
(14,462 |
) |
|||||
| Depreciation and amortization |
|
19,658 |
|
|
14,826 |
|
|
70,642 |
|
|
56,428 |
|
|||||
| Interest expense |
|
5,479 |
|
|
4,622 |
|
|
19,968 |
|
|
18,931 |
|
|||||
| Unrealized appreciation (depreciation) of warrants |
|
3,312 |
|
|
- |
|
|
5,121 |
|
|
103 |
|
|||||
| Gain on sale of real estate |
|
(1,185 |
) |
|
- |
|
|
(1,775 |
) |
|
- |
|
|||||
| Loss on extinguishment of debt |
|
523 |
|
|
- |
|
|
523 |
|
|
- |
|
|||||
| EBITDAre | $ |
23,134 |
|
$ |
16,906 |
|
$ |
79,212 |
|
$ |
61,000 |
|
|||||
For the Three Months |
|
For the Year |
|||||||||||||||
Ended |
|
Ended |
|||||||||||||||
| FFO: | 2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||
| Net loss | $ |
(4,653 |
) |
$ |
(2,542 |
) |
$ |
(15,267 |
) |
$ |
(14,462 |
) |
|||||
| Gain on sale of real estate |
|
(1,185 |
) |
|
- |
|
|
(1,775 |
) |
|
- |
|
|||||
| Depreciation and amortization |
|
19,658 |
|
|
14,826 |
|
|
70,642 |
|
|
56,428 |
|
|||||
| Depreciation and amortization from unconsolidated joint venture |
|
363 |
|
|
64 |
|
|
1,539 |
|
|
64 |
|
|||||
| FFO | $ |
14,183 |
|
$ |
12,348 |
|
$ |
55,139 |
|
$ |
42,030 |
|
|||||
| Preferred stock dividends |
|
(1,652 |
) |
|
(1,605 |
) |
|
(6,608 |
) |
|
(6,444 |
) |
|||||
| Unrealized appreciation (depreciation) of warrants |
|
3,312 |
|
|
- |
|
|
5,121 |
|
|
103 |
|
|||||
| Loss on extinguishment of debt |
|
523 |
|
|
- |
|
|
523 |
|
|
- |
|
|||||
| Impairment of real estate lease |
|
- |
|
|
- |
|
|
- |
|
|
311 |
|
|||||
| Core FFO | $ |
16,366 |
|
$ |
10,743 |
|
$ |
54,175 |
|
$ |
36,000 |
|
|||||
| Weighted average common shares and units outstanding |
|
35,414 |
|
|
25,627 |
|
|
31,691 |
|
|
19,327 |
|
|||||
| Core FFO per share | $ |
0.46 |
|
$ |
0.42 |
|
$ |
1.71 |
|
$ |
1.86 |
|
|||||
| For the Three Months | For the Year | ||||||||||||||||
| Ended |
Ended |
||||||||||||||||
| AFFO: |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|||||
| Core FFO | $ |
16,366 |
|
$ |
10,743 |
|
$ |
54,175 |
|
$ |
36,000 |
|
|||||
| Amortization of debt related costs |
|
443 |
|
|
416 |
|
|
1,605 |
|
|
1,467 |
|
|||||
| Non-cash interest expense |
|
222 |
|
|
227 |
|
|
191 |
|
|
148 |
|
|||||
| Stock compensation |
|
340 |
|
|
383 |
|
|
1,559 |
|
|
1,439 |
|
|||||
| Straight line rent |
|
(974 |
) |
|
(510 |
) |
|
(3,700 |
) |
|
(1,963 |
) |
|||||
| Above/below market lease rents |
|
(507 |
) |
|
(640 |
) |
|
(2,096 |
) |
|
(2,075 |
) |
|||||
| Recurring capital expenditure (1) |
|
(2,040 |
) |
|
(759 |
) |
|
(8,767 |
) |
|
(3,263 |
) |
|||||
| AFFO | $ |
13,850 |
|
$ |
9,860 |
|
$ |
42,967 |
|
$ |
31,753 |
|
|||||
| Weighted average common shares and units outstanding |
|
35,414 |
|
|
25,627 |
|
|
31,691 |
|
|
19,327 |
|
|||||
| AFFO per share | $ |
0.39 |
|
$ |
0.38 |
|
$ |
1.36 |
|
$ |
1.64 |
|
|||||
| (1) Excludes non-recurring capital expenditures of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220223005196/en/
(615) 942-7077
TSullivan@scr-ir.com
Source:
FAQ
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