Plymouth Industrial REIT Reports Second Quarter Results
- Same store NOI increased 3.5% on a GAAP basis and 6.0% on a cash basis in Q2 2023.
- The company issued 1.2 million common shares, raising $27.1 million in net proceeds.
- Plymouth Industrial REIT announced the redemption of all outstanding shares of the 7.50% Series A Cumulative Redeemable Preferred Stock for $48.8 million.
- None.
BOSTON, Aug. 03, 2023 (GLOBE NEWSWIRE) -- Plymouth Industrial REIT, Inc. (NYSE: PLYM) (the “Company”) today announced its financial results for the second quarter ended June 30, 2023 and other recent developments.
Second Quarter and Subsequent Highlights
- Reported results for the second quarter of 2023 reflect a net loss attributable to common stockholders of
$(0.08) per weighted average common share; Core Funds from Operations attributable to common stockholders and unit holders (“Core FFO”) of$0.46 per weighted average common share and units; and Adjusted FFO (“AFFO”) of$0.42 per weighted average common share and units. - Same store NOI (“SS NOI”) increased
3.5% on a GAAP basis excluding early termination income for the second quarter compared with the same period in 2022; increased6.0% on a cash basis excluding early termination income. SS NOI increased3.6% on a GAAP basis excluding early termination income for the first six months of 2023 compared with the same period in 2022; increased7.5% on a cash basis excluding early termination income. - Commenced leases during the second quarter experienced a
19.3% increase in rental rates on a cash basis from leases greater than six months with new leases experiencing a36.0% increase on a cash basis and renewal leases experiencing an11.2% increase on a cash basis. Through July 31, 2023, executed leases scheduled to commence during the second half of 2023 total an aggregate of 2,310,149 square feet, all of which are associated with terms of at least six months. The Company will experience a23.1% increase in rental rates on a cash basis from these leases. - Issued approximately 1.2 million common shares through its ATM program at an average price of
$23.05 per share, raising approximately$27.1 million in net proceeds. - Announced the redemption of all outstanding shares of the
7.50% Series A Cumulative Redeemable Preferred Stock on September 6, 2023 for a total redemption payment of$48.8 million . - Paid a regular quarterly cash dividend for the second quarter of 2023 of
$0.22 5 per share for the common stock and a regularly quarter cash dividend of$0.46 875 per share for the Preferred Stock. - Affirmed the full year 2023 guidance range for Core FFO of
$1.84 t o$1.86 per weighted average common share and units previously issued on February 23, 2023 and adjusted the range of net loss of$(0.17) t o$(0.15) per weighted average common share and units as well as several of its accompanying guidance assumptions.
Jeff Witherell, Chairman and Chief Executive Officer of Plymouth Industrial REIT, noted, “We are making great progress on our objectives with over
Financial Results for the Second Quarter of 2023
Net loss attributable to common stockholders for the quarter ended June 30, 2023 was
Consolidated total revenues for the quarter ended June 30, 2023 were
NOI for the quarter ended June 30, 2023 was
EBITDAre for the quarter ended June 30, 2023 was
Core FFO for the quarter ended June 30, 2023 was
AFFO for the quarter ended June 30, 2023 was
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.
Liquidity and Capital Markets Activity
As of July 31, 2023, the Company’s current cash balance was approximately
During the second quarter and to date in the third quarter, the Company issued approximately 1.2 million common shares through its ATM program at an average price of
On August 2, 2023, the Company announced that on September 6, 2023 it will redeem all of its outstanding
Investment Activity
As of June 30, 2023, the Company had real estate investments comprised of 210 industrial buildings totaling 34.2 million square feet.
Plymouth has three projects totaling 260,322 square feet remaining in the current phase of its development program with approximately
Leasing Activity
Leases commencing during the second quarter ended June 30, 2023 totaled an aggregate of 2,103,095 square feet, all of which are associated with terms of at least six months. The Company will experience a
Through July 31, 2023, executed leases scheduled to commence in the second half of 2023 total an aggregate of 2,310,149 square feet, all of which are associated with terms of at least six months. The Company will experience a
The Company has already leased 1,717,325 square feet of space that will commence during 2024, all of which are associated with terms of at least six months. The Company will experience a
Quarterly Distributions to Stockholders
On July 31, 2023, the Company paid a regular quarterly common stock dividend of
On June 30, 2023, the Company paid a regular quarterly cash dividend of
Guidance for 2023
Plymouth affirmed its full year 2023 guidance ranges for Core FFO per weighted average common share and units previously issued on February 23, 2023 and adjusted its ranges for net loss per weighted average common share and units as well as several of its accompanying guidance assumptions, which can be found in the tables below.
(Dollars, shares and units in thousands) | Full Year 2023 Range1 | |||||||||
Low | High | |||||||||
Core FFO attributable to common stockholders and unit holder per share | $ | 1.84 | $ | 1.86 | ||||||
Same Store Portfolio NOI growth – cash basis2 | 7.25 | % | 7.75 | % | ||||||
Average Same Store Portfolio occupancy – full year | 98.4 | % | 98.8 | % | ||||||
General and administrative expenses3 | $ | 15,900 | $ | 15,500 | ||||||
Interest expense, net | $ | 39,600 | $ | 39,000 | ||||||
Weighted average common shares and units outstanding4 | 44,046 | 44,046 |
Reconciliation of net loss attributable to common stockholders and unit holders per share to Core FFO guidance: | ||||||||||
Full Year 2023 Range1 | ||||||||||
Low | High | |||||||||
Net loss | $ | (0.17 | ) | $ | (0.15 | ) | ||||
Add: Real estate depreciation & amortization | 2.07 | 2.07 | ||||||||
Less: Preferred stock dividends | (0.06 | ) | (0.06 | ) | ||||||
Core FFO | $ | 1.84 | $ | 1.86 | ||||||
1) | Our 2023 guidance refers to the Company's in-place portfolio as of July 31, 2023, the redemption of the Series A Cumulative Redeemable Preferred Stock and an anticipated property disposition at the end of the third quarter of 2023 representing a total contract price of approximately |
2) | The Same Store Portfolio consists of 183 buildings aggregating 30,989,249 rentable square feet, representing approximately |
3) | Includes non-cash stock compensation of |
4) | As of July 31, 2023, the Company has 44,744,983 common shares and units outstanding. |
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 9:00 a.m. Eastern Time. The number to call for this interactive teleconference is (844) 784-1727 (international callers: (412) 717-9587). A replay of the call will be available through August 10, 2023, by dialing (877) 344-7529 and entering the replay access code, 1402326.
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
Plymouth Industrial REIT, Inc. (NYSE: PLYM) is a full service, vertically integrated real estate investment company focused on the acquisition, ownership and management of single and multi-tenant industrial properties. Our mission is to provide tenants with cost effective space that is functional, flexible and safe.
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 Securities and Exchange Commission. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
PLYMOUTH INDUSTRIAL REIT, INC. | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
UNAUDITED | |||||||||
(In thousands, except share and per share amounts) | |||||||||
June 30, | December 31, | ||||||||
2023 | 2022 | ||||||||
Assets | |||||||||
Real estate properties | $ | 1,571,334 | $ | 1,555,846 | |||||
Less accumulated depreciation | (239,306 | ) | (205,629 | ) | |||||
Real estate properties, net | 1,332,028 | 1,350,217 | |||||||
Cash | 19,010 | 11,003 | |||||||
Cash held in escrow | 12,498 | 13,376 | |||||||
Restricted cash | 7,009 | 6,834 | |||||||
Deferred lease intangibles, net | 60,304 | 70,718 | |||||||
Interest rate swaps | 31,180 | 30,115 | |||||||
Other assets | 38,631 | 39,055 | |||||||
Total assets | $ | 1,500,660 | $ | 1,521,318 | |||||
Liabilities, Preferred Stock and Equity | |||||||||
Liabilities: | |||||||||
Secured debt, net | 386,191 | 389,531 | |||||||
Unsecured debt, net | 447,655 | 447,345 | |||||||
Borrowings under line of credit | 87,500 | 77,500 | |||||||
Accounts payable, accrued expenses and other liabilities | 70,492 | 72,551 | |||||||
Deferred lease intangibles, net | 7,179 | 8,918 | |||||||
Financing lease liability | 2,260 | 2,248 | |||||||
Total Liabilities | 1,001,277 | 998,093 | |||||||
Preferred stock, par value | |||||||||
Series A; 1,953,783 and 1,955,513 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively (aggregate liquidation preference of | 46,803 | 46,844 | |||||||
Equity: | |||||||||
Common stock, | 431 | 428 | |||||||
Additional paid in capital | 616,414 | 635,068 | |||||||
Accumulated deficit | (200,147 | ) | (194,243 | ) | |||||
Accumulated other comprehensive income | 30,792 | 29,739 | |||||||
Total stockholders' equity | 447,490 | 470,992 | |||||||
Non-controlling interest | 5,090 | 5,389 | |||||||
Total equity | 452,580 | 476,381 | |||||||
Total liabilities, preferred stock and equity | $ | 1,500,660 | $ | 1,521,318 | |||||
PLYMOUTH INDUSTRIAL REIT, INC. | ||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
UNAUDITED | ||||||||||||||||||
(In thousands, except share and per share amounts) | ||||||||||||||||||
For the Three Months | For the Six Months | |||||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||
Rental revenue | $ | 49,899 | $ | 45,612 | $ | 99,270 | $ | 88,332 | ||||||||||
Management fee revenue and other income | - | 2 | 29 | 88 | ||||||||||||||
Total revenues | 49,899 | 45,614 | 99,299 | 88,420 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Property | 15,690 | 13,799 | 31,644 | 27,874 | ||||||||||||||
Depreciation and amortization | 23,417 | 24,208 | 47,217 | 46,899 | ||||||||||||||
General and administrative | 3,842 | 4,146 | 7,289 | 7,698 | ||||||||||||||
Total operating expenses | 42,949 | 42,153 | 86,150 | 82,471 | ||||||||||||||
Other income (expense): | ||||||||||||||||||
Interest expense | (9,584 | ) | (7,925 | ) | (19,119 | ) | (14,320 | ) | ||||||||||
Earnings (loss) in investment of unconsolidated joint venture | - | - | - | (147 | ) | |||||||||||||
Loss on extinguishment of debt | - | - | - | (2,176 | ) | |||||||||||||
(Appreciation) depreciation of warrants | - | - | - | 1,760 | ||||||||||||||
Total other income (expense) | (9,584 | ) | (7,925 | ) | (19,119 | ) | (14,883 | ) | ||||||||||
Net loss | $ | (2,634 | ) | $ | (4,464 | ) | $ | (5,970 | ) | $ | (8,934 | ) | ||||||
Less: Net loss attributable to non-controlling interest | $ | (30 | ) | $ | (55 | ) | $ | (68 | ) | $ | (115 | ) | ||||||
Net loss attributable to Plymouth Industrial REIT, Inc. | $ | (2,604 | ) | $ | (4,409 | ) | $ | (5,902 | ) | $ | (8,819 | ) | ||||||
Less: Preferred Stock dividends | 916 | 1,320 | 1,832 | 3,019 | ||||||||||||||
Less: Series B Preferred Stock accretion to redemption value | - | 750 | - | 2,250 | ||||||||||||||
Less: Loss on extinguishment of Series A Preferred Stock | - | 24 | 2 | 24 | ||||||||||||||
Less: Amount allocated to participating securities | 82 | 65 | 170 | 132 | ||||||||||||||
Net loss attributable to common stockholders | $ | (3,602 | ) | $ | (6,568 | ) | $ | (7,906 | ) | $ | (14,244 | ) | ||||||
Net loss per share attributable to common stockholders | $ | (0.08 | ) | $ | (0.17 | ) | $ | (0.19 | ) | $ | (0.38 | ) | ||||||
Weighted-average common shares outstanding basic and diluted | 42,646,535 | 39,106,576 | 42,625,768 | 37,675,032 | ||||||||||||||
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 National Association of Real Estate Investment Trusts (“NAREIT”). EBITDAre represents net income (loss), computed in accordance with GAAP, before interest expense, tax, depreciation and amortization, gains or losses on the sale of rental property, appreciation (depreciation) of warrants, loss on impairments, and loss on extinguishment of debt. We believe that EBITDAre is helpful to investors as a supplemental measure of our operating performance as a real estate company as it is a direct measure of the actual operating results of our industrial properties.
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 December 2018, NAREIT issued a white paper restating the definition of FFO. The purpose of the restatement was not to change the fundamental definition of FFO, but to clarify existing NAREIT guidance. The restated definition of FFO is as follows: Net Income (calculated in accordance with GAAP), excluding: (i) Depreciation and amortization related to real estate, (ii) Gains and losses from the sale of certain real estate assets, (iii) Gain and losses from change in control, and (iv) Impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.
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, acquisition and transaction related expenses for transactions not completed, and certain non-cash operating expenses such as impairment on real estate lease, 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, capitalized interest 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.
PLYMOUTH INDUSTRIAL REIT, INC. | ||||||||||||||||||
SUPPLEMENTAL RECONCILIATION OF NON-GAAP DISCLOSURES | ||||||||||||||||||
UNAUDITED | ||||||||||||||||||
(In thousands, except share and per share amounts) | ||||||||||||||||||
For the Three Months | For the Six Months | |||||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||||
NOI: | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Net loss | $ | (2,634 | ) | $ | (4,464 | ) | $ | (5,970 | ) | $ | (8,934 | ) | ||||||
General and administrative | 3,842 | 4,146 | 7,289 | 7,698 | ||||||||||||||
Depreciation and amortization | 23,417 | 24,208 | 47,217 | 46,899 | ||||||||||||||
Interest expense | 9,584 | 7,925 | 19,119 | 14,320 | ||||||||||||||
(Earnings) loss in investment of unconsolidated joint venture | - | - | - | 147 | ||||||||||||||
Loss on extinguishment of debt | - | - | - | 2,176 | ||||||||||||||
Appreciation (depreciation) of warrants | - | - | - | (1,760 | ) | |||||||||||||
Management fee revenue and other income | - | (2 | ) | (29 | ) | (88 | ) | |||||||||||
NOI | $ | 34,209 | $ | 31,813 | $ | 67,626 | $ | 60,458 | ||||||||||
For the Three Months | For the Six Months | |||||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||||
EBITDAre: | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Net loss | $ | (2,634 | ) | $ | (4,464 | ) | $ | (5,970 | ) | $ | (8,934 | ) | ||||||
Depreciation and amortization | 23,417 | 24,208 | 47,217 | 46,899 | ||||||||||||||
Interest expense | 9,584 | 7,925 | 19,119 | 14,320 | ||||||||||||||
Loss on extinguishment of debt | - | - | - | 2,176 | ||||||||||||||
Appreciation (depreciation) of warrants | - | - | - | (1,760 | ) | |||||||||||||
EBITDAre | $ | 30,367 | $ | 27,669 | $ | 60,366 | $ | 52,701 | ||||||||||
For the Three Months | For the Six Months | |||||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||||
FFO: | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Net loss | $ | (2,634 | ) | $ | (4,464 | ) | $ | (5,970 | ) | $ | (8,934 | ) | ||||||
Depreciation and amortization | 23,417 | 24,208 | 47,217 | 46,899 | ||||||||||||||
Depreciation and amortization from unconsolidated joint ventures | - | - | - | 268 | ||||||||||||||
FFO: | $ | 20,783 | $ | 19,744 | $ | 41,247 | $ | 38,233 | ||||||||||
Preferred stock dividends | (916 | ) | (1,320 | ) | (1,832 | ) | (3,019 | ) | ||||||||||
Acquisition expenses | 4 | 150 | 85 | 150 | ||||||||||||||
Appreciation (depreciation) of warrants | - | - | - | (1,760 | ) | |||||||||||||
Loss on extinguishment of debt | - | - | - | 2,176 | ||||||||||||||
Core FFO | $ | 19,871 | $ | 18,574 | $ | 39,500 | $ | 35,780 | ||||||||||
Weighted average common shares and units outstanding | 43,526 | 39,897 | 43,479 | 38,449 | ||||||||||||||
Core FFO per share | $ | 0.46 | $ | 0.47 | $ | 0.91 | $ | 0.93 | ||||||||||
For the Three Months | For the Six Months | |||||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||||
AFFO: | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Core FFO | $ | 19,871 | $ | 18,574 | $ | 39,500 | $ | 35,780 | ||||||||||
Amortization of debt related costs | 570 | 527 | 1,138 | 1,032 | ||||||||||||||
Non-cash interest expense | 158 | 262 | 452 | 906 | ||||||||||||||
Stock compensation | 716 | 538 | 1,301 | 980 | ||||||||||||||
Capitalized interest | (351 | ) | (142 | ) | (686 | ) | (206 | ) | ||||||||||
Straight line rent | (705 | ) | (904 | ) | (1,617 | ) | (1,726 | ) | ||||||||||
Above/below market lease rents | (669 | ) | (545 | ) | (1,403 | ) | (2,091 | ) | ||||||||||
Recurring capital expenditures (1) | (1,092 | ) | (1,782 | ) | (2,898 | ) | (3,455 | ) | ||||||||||
AFFO: | $ | 18,498 | $ | 16,528 | $ | 35,787 | $ | 31,220 | ||||||||||
Weighted average common shares and units outstanding | 43,526 | 39,897 | 43,479 | 38,449 | ||||||||||||||
AFFO per share | $ | 0.42 | $ | 0.41 | $ | 0.82 | $ | 0.81 | ||||||||||
(1) Excludes non-recurring capital expenditures of | ||||||||||||||||||
Contact:
Tripp Sullivan
SCR Partners
(615) 942-7077
IR@plymouthreit.com
FAQ
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