Plymouth Industrial REIT Reports Third Quarter 2024 Results
Plymouth Industrial REIT reported Q3 2024 financial results with a net loss of $(0.35) per share, Core FFO of $0.44 per share, and AFFO of $0.40 per share. Same-store NOI decreased 1.2% on a GAAP basis but increased 0.6% on a cash basis. The company executed leases for 5.8M square feet with a 17.2% increase in rental rates. Key developments include a strategic partnership with Sixth Street Partners providing $500M in capital, acquisition of a 1.6M square-foot Memphis portfolio for $100.5M, and refinancing of credit facilities to $1.5B. The company adjusted its 2024 guidance for Core FFO to $1.83-$1.85 per share.
Plymouth Industrial REIT ha riportato i risultati finanziari per il terzo trimestre del 2024 con una perdita netta di $(0.35) per azione, un Core FFO di $0.44 per azione e un AFFO di $0.40 per azione. L'NOI delle stesse strutture è diminuito dell'1.2% su base GAAP, ma è aumentato dello 0.6% su base di cassa. L'azienda ha stipulato contratti per 5.8 milioni di piedi quadrati con un aumento del 17.2% nei tassi di affitto. Sviluppi chiave includono una partnership strategica con Sixth Street Partners che fornisce $500 milioni in capitale, l'acquisizione di un portafoglio a Memphis di 1.6 milioni di piedi quadrati per $100.5 milioni e il rifinanziamento delle linee di credito a $1.5 miliardi. L'azienda ha aggiornato le previsioni per il 2024 per il Core FFO a $1.83-$1.85 per azione.
Plymouth Industrial REIT reportó los resultados financieros del tercer trimestre de 2024 con una pérdida neta de $(0.35) por acción, un Core FFO de $0.44 por acción y un AFFO de $0.40 por acción. El NOI de las mismas propiedades disminuyó un 1.2% en base GAAP, pero aumentó un 0.6% en base de efectivo. La empresa firmó contratos por 5.8 millones de pies cuadrados con un aumento del 17.2% en las tarifas de alquiler. Los desarrollos clave incluyen una asociación estratégica con Sixth Street Partners que proporciona $500 millones en capital, la adquisición de un portafolio de Memphis de 1.6 millones de pies cuadrados por $100.5 millones y el refinanciamiento de las líneas de crédito a $1.5 mil millones. La empresa ajustó su guía para 2024 para el Core FFO a $1.83-$1.85 por acción.
Plymouth Industrial REIT는 2024년 3분기 재무 결과를 발표하며 주당 순손실 $(0.35)을 기록했고, 주요 FFO는 주당 $0.44, AFFO는 주당 $0.40을 보고했습니다. 매장별 NOI는 GAAP 기준에서 1.2% 감소했지만, 현금 기준에서는 0.6% 증가했습니다. 회사는 임대료가 17.2% 증가한 580만 평방 피트에 대한 임대 계약을 체결했습니다. 주요 개발 사항으로는 Sixth Street Partners와의 전략적 파트너십이 $5억의 자본을 제공하는 것, $1억 5백만에 160만 평방 피트의 멤피스 포트폴리오를 인수하는 것, 그리고 신용 시설을 $15억으로 재융자하는 것이 포함됩니다. 이 회사는 2024년 Core FFO 전망을 주당 $1.83-$1.85로 수정했습니다.
Plymouth Industrial REIT a rapporté les résultats financiers du troisième trimestre 2024 avec une perte nette de $(0.35) par action, un Core FFO de $0.44 par action et un AFFO de $0.40 par action. Le NOI des mêmes propriétés a diminué de 1,2 % selon les normes GAAP, mais a augmenté de 0,6 % sur une base de cash. L'entreprise a exécuté des baux pour 5,8 millions de pieds carrés avec une augmentation de 17,2 % des loyers. Les développements clés incluent un partenariat stratégique avec Sixth Street Partners fournissant $500 millions de capital, l'acquisition d'un portefeuille de Memphis de 1,6 million de pieds carrés pour $100,5 millions, et le refinancement des lignes de crédit à $1,5 milliard. L'entreprise a ajusté ses prévisions pour 2024 pour le Core FFO à $1.83-$1.85 par action.
Plymouth Industrial REIT meldete die finanziellen Ergebnisse für das dritte Quartal 2024 mit einem Nettoverlust von $(0.35) pro Aktie, einem Core FFO von $0.44 pro Aktie und einem AFFO von $0.40 pro Aktie. Das NOI der gleichen Immobilien sank um 1,2 % nach GAAP, stieg jedoch um 0,6 % nach Cash. Das Unternehmen führte Mietverträge über 5,8 Millionen Quadratfuß mit einer Erhöhung der Mietpreise um 17,2 % aus. Zu den wichtigsten Entwicklungen gehört eine strategische Partnerschaft mit Sixth Street Partners, die $500 Millionen Kapital bereitstellt, der Erwerb eines Memphis-Portfolios mit 1,6 Millionen Quadratfuß für $100,5 Millionen und die Refinanzierung der Kreditfazilitäten auf $1,5 Milliarden. Das Unternehmen passte seine Prognose für 2024 für Core FFO auf $1,83-$1,85 pro Aktie an.
- Executed leases show 17.2% increase in rental rates on a cash basis
- Secured $500M capital partnership with Sixth Street Partners
- Acquired Memphis portfolio with 8.0% initial NOI yield
- Increased credit facility capacity to $1.5B
- Development program reached 100% occupancy
- Net loss of $(0.35) per share compared to $0.17 profit in prior year
- Same-store NOI decreased 1.2% on GAAP basis
- Portfolio occupancy declined to 94.2%
- Core FFO decreased to $0.44 from $0.46 per share year-over-year
- Loss of $14.7M on Sixth Street financing transaction
Insights
The Q3 2024 results show mixed performance with concerning trends. The
However, there are positive developments: The
The guidance adjustment suggests near-term headwinds from delayed lease commencements and vacancies, but the
The strategic positioning remains solid despite operational challenges. The expansion of unsecured borrowing capacity to
The leasing spread of
BOSTON, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Plymouth Industrial REIT, Inc. (NYSE: PLYM) (the “Company”) today announced its financial results for the third quarter ended September 30, 2024, and other recent developments.
Third Quarter and Subsequent Highlights
- Reported results for the third quarter of 2024 reflect net loss attributable to common stockholders of
$(0.35) per weighted average common share; Core Funds from Operations attributable to common stockholders and unit holders (“Core FFO”) of$0.44 per weighted average common share and units; and Adjusted FFO (“AFFO”) of$0.40 per weighted average common share and units. - Same store NOI (“SS NOI”) decreased
1.2% on a GAAP basis excluding early termination income for the third quarter compared with the same period in 2023; increased0.6% on a cash basis excluding early termination income. - Through November 4, 2024, executed leases scheduled to commence during 2024, which includes the third quarter activity, total an aggregate of 5,783,332 square feet, all of which are associated with terms of at least six months. The Company will experience a
17.2% increase in rental rates on a cash basis from these leases. - Brought the 772,622-square-foot development program to
100% leased. - Announced a strategic transaction with Sixth Street Partners, LLC (“Sixth Street”) to provide approximately
$500 million of capital to pursue acquisitions. - Acquired a 14-building portfolio of industrial properties totaling 1.6 million square feet in Memphis for
$100.5 million with an initial NOI yield of8.0% . - Refinanced and upsized unsecured aggregate borrowing capacity to
$1.5 billion with the refinance of the unsecured revolving credit facility to$500 million and the recast of the$100 million 2026 term loan. - Paid the regular quarterly cash dividend for the third quarter of 2024 of
$0.24 per share for the common stock, or an annualized rate of$0.96 per share. - Adjusted the full year 2024 guidance range for net income per weighted average common share and units to
$2.99 t o$3.01 and Core FFO per weighted average common share and units to$1.83 t o$1.85 as well as its range and accompanying assumptions.
Jeff Witherell, Chief Executive Officer and Co-Founder of Plymouth, noted, “We are very focused on our remaining leasing opportunities for 2024 and ensuring that we deliver on organic growth in 2025. The one-time impact from two tenants we were forced to evict weighed heavily on same-store NOI, occupancy and earnings this quarter. With remediation and leasing plans in place on these assets, along with
"The Memphis portfolio acquisition in July and the completion later this month of our development program at
Financial Results for the Third Quarter of 2024
Net loss attributable to common stockholders for the quarter ended September 30, 2024, was
Consolidated total revenues for the quarter ended September 30, 2024, were
NOI for the quarter ended September 30, 2024, was
EBITDAre for the quarter ended September 30, 2024, was
Core FFO for the quarter ended September 30, 2024, was
AFFO for the quarter ended September 30, 2024, 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
As of November 4, 2024, the Company’s current cash balance was approximately
The Company refinanced and upsized its unsecured credit facility borrowing capacity from
Investment Activity
As of September 30, 2024, the Company had real estate investments comprised of 223 industrial buildings totaling 34.9 million square feet.
The final project in the first phase of Plymouth’s development program, a 52,920-square-foot, fully leased building in Jacksonville, came online October 31, 2024 and cash rents will commence December 1, 2024. During the quarter, the Company signed a 10-year lease for 53,352 square feet at its 154,692-square-foot industrial building in Cincinnati. The lease, which will commence in April 2025 with economic occupancy that began in September 2024, brought the entire development program to
During the quarter, Plymouth acquired a 1,621,241-square-foot portfolio of industrial properties located across the Southeast and Northeast submarkets of Memphis, Tennessee. The purchase price of
During the quarter, Plymouth completed the previously announced sale of its 527,127-square-foot industrial property in Columbus, Ohio, to the tenant for approximately
Sixth Street Chicago Joint Venture and Related Transactions
During the quarter, Plymouth entered into a transaction that includes a
As previously disclosed, the Chicago JV with Sixth Street is expected to close in November upon obtaining new financing and the refinancing of approximately
As of September 30, 2024, the Company reclassified the carrying amount of the Chicago assets that will be contributed to the Chicago JV as real estate assets held for sale, net on the balance sheets and ceased recognizing depreciation on those same assets. Separately, the Company reclassified the net liabilities that will be assumed by the Chicago JV, namely secured debt, as real estate liabilities held for sale, net on the balance sheets. The Company will recognize a gain on sale of real estate in connection with the Chicago JV during the fourth quarter and will recognize its share of earnings (losses) related to its
Simultaneously with the issuance of the Preferred, detached warrants were issued to Sixth Street. As of September 30, 2024, the Company has drawn approximately
Upon closing in August 2024, the gross proceeds of approximately
Leasing Activity
Leases commencing during the third quarter ended September 30, 2024, totaled an aggregate of 1,095,115 square feet, all of which have terms of at least six months. These leases included 598,858 square feet of renewal leases and 496,257 square feet of new leases. Rental rates under these leases reflect a
Executed leases scheduled to commence during 2024, which includes activity through November 4, 2024, all have terms of at least six months and represent an aggregate of 5,783,332 square feet. These leases, which represent
Other notable leasing activity during the third quarter among Plymouth’s top tenants include a one-year extension executed for 566,281 square feet in Memphis to December 31, 2025, that will commence in the first quarter of 2025 and a five-year extension executed for 327,194 square feet in Chicago to October 31, 2029, that will commence in the fourth quarter of 2024.
Quarterly Distributions to Stockholders
On September 13, 2024, the Board of Directors declared a regular quarterly common stock dividend of
Guidance for 2024
Plymouth adjusted its full year 2024 guidance ranges for net income and Core FFO per weighted average common share and units and adjusted its accompanying assumptions, which can be found in the tables below. The adjustment to the full year 2024 ranges is primarily attributed to delayed lease commencements, namely with respect to the previously disclosed buildings in Chicago and Cleveland (and non-recoverable charges associated with the vacancy of one of these buildings), the remaining development space in Cincinnati, coupled with transitory vacancy in five buildings across three markets, and the projected impact from the Sixth Street transaction.
| (Dollars, shares and units in thousands, except per-share amounts) | Full Year 2024 Range1 | |||||||
| Low | High | |||||||
| Core FFO attributable to common stockholders and unit holder per share | $ | 1.83 | $ | 1.85 | ||||
| Same Store Portfolio NOI growth – cash basis2 | 5.00 | % | 5.25 | % | ||||
| Average Same Store Portfolio occupancy – full year | 97.0 | % | 97.5 | % | ||||
| General and administrative expenses3 | $ | 15,000 | $ | 14,600 | ||||
| Interest expense, net | $ | 38,250 | $ | 37,750 | ||||
| Weighted average common shares and units outstanding4 | 45,880 | 45,880 | ||||||
| Reconciliation of net income attributable to common stockholders and unit holders per share to Core FFO guidance: | ||||||||
| Full Year 2024 Range1,2,3 | ||||||||
| Low | High | |||||||
| Net income | $ | 2.99 | $ | 3.01 | ||||
| Gain on sale of real estate5 | (3.22 | ) | (3.22 | ) | ||||
| Preferred dividend6 | (0.03 | ) | (0.03 | ) | ||||
| Loss on financing transaction7 | 0.32 | 0.32 | ||||||
| Real estate depreciation & amortization | 1.77 | 1.77 | ||||||
| Core FFO | $ | 1.83 | $ | 1.85 | ||||
| 1) | Our 2024 guidance refers to the Company's in-place portfolio as of November 4, 2024, inclusive of the Chicago JV portfolio sale scheduled to close in November 2024 and does not include the impact from prospective acquisitions, dispositions, or capitalization activities. |
| 2) | The Same Store Portfolio consists of 200 buildings aggregating 31,245,756 rentable square feet, representing approximately |
| 3) | Includes non-cash stock compensation of |
| 4) | As of November 4, 2024, the Company has 45,879,485 common shares and units outstanding. |
| 5) | Gain on sale of real estate includes year-to-date realized gains plus an estimated gross book gain on the disposition of the Chicago JV portfolio in connection with the Sixth Street transaction, excluding closing costs and prorations. |
| 6) | Preferred dividend includes cash and accrued (PIK) dividends at an annualized rate of |
| 7) | Loss on financing transaction includes the net impact of the initial accounting treatment loss and corresponding issuance costs realized upon the issuance of the Preferred Series C Units and warrants issued in August 2024, partially offset by a net unrealized gain due to the change of the respective fair market value of the instruments between the date of issuance and the end of the reporting period. |
Plymouth will host a conference call and live audio webcast, both open for the general public to hear, on Thursday, November 7, 2024, 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 November 14, 2024, by dialing (877) 344-7529 and entering the replay access code, 6027952.
The Company has posted supplemental financial information on the third quarter results and prepared commentary that it will reference during the conference call. The supplemental information can be found under Financial Results on the Company’s Investor Relations page. 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 one year.
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. Such forward-looking statements include, but are not limited to, statements regarding future leasing activity and expectations for the timing of the closing of the Chicago Joint Venture. 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 statements, many of which may be beyond our control. 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.
Contact:
Tripp Sullivan
SCR Partners
IR@plymouthreit.com
| PLYMOUTH INDUSTRIAL REIT, INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| UNAUDITED | ||||||||
| (In thousands, except share and per share amounts) | ||||||||
| September 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Real estate properties | $ | 1,393,892 | $ | 1,567,866 | ||||
| Less: accumulated depreciation | (246,652 | ) | (268,046 | ) | ||||
| Real estate properties, net | 1,147,240 | 1,299,820 | ||||||
| Real estate assets held for sale, net | 199,548 | - | ||||||
| Cash | 21,383 | 14,493 | ||||||
| Cash held in escrow | 4,780 | 4,716 | ||||||
| Restricted cash | 7,393 | 6,995 | ||||||
| Deferred lease intangibles, net | 44,458 | 51,474 | ||||||
| Other assets | 49,256 | 42,734 | ||||||
| Interest rate swaps | 13,237 | 21,667 | ||||||
| Forward contract asset | 9,116 | - | ||||||
| Total assets | $ | 1,496,411 | $ | 1,441,899 | ||||
| Liabilities, Redeemable Non-controlling Interest and Equity | ||||||||
| Liabilities: | ||||||||
| Secured debt, net | 176,717 | 266,887 | ||||||
| Unsecured debt, net | 448,465 | 447,990 | ||||||
| Borrowings under line of credit | 196,400 | 155,400 | ||||||
| Accounts payable, accrued expenses and other liabilities | 83,397 | 73,904 | ||||||
| Real estate liabilities held for sale, net | 67,982 | - | ||||||
| Warrant liability | 73,335 | - | ||||||
| Deferred lease intangibles, net | 5,095 | 6,044 | ||||||
| Financing lease liability | 2,290 | 2,271 | ||||||
| Interest rate swaps | 1,085 | 1,161 | ||||||
| Total liabilities | 1,054,766 | 953,657 | ||||||
| Redeemable non-controlling interest - Series C Preferred Units | $ | 426 | $ | - | ||||
| Equity: | ||||||||
| Common stock, | 454 | 452 | ||||||
| Additional paid in capital | 614,716 | 644,938 | ||||||
| Accumulated deficit | (190,675 | ) | (182,606 | ) | ||||
| Accumulated other comprehensive income | 11,969 | 20,233 | ||||||
| Total stockholders' equity | 436,464 | 483,017 | ||||||
| Non-controlling interest | 4,755 | 5,225 | ||||||
| Total equity | 441,219 | 488,242 | ||||||
| Total liabilities, redeemable non-controlling interest and equity | $ | 1,496,411 | $ | 1,441,899 | ||||
| PLYMOUTH INDUSTRIAL REIT, INC. | |||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| UNAUDITED | |||||||||||||||||
| (In thousands, except share and per share amounts) | |||||||||||||||||
| For the Three Months | For the Nine Months | ||||||||||||||||
| Ended September 30, | Ended September 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Rental revenue | $ | 51,432 | $ | 49,736 | $ | 150,271 | $ | 149,006 | |||||||||
| Management fee revenue and other income | 439 | 29 | 514 | 58 | |||||||||||||
| Total revenues | 51,871 | 49,765 | 150,785 | 149,064 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Property | 17,374 | 15,754 | 47,585 | 47,398 | |||||||||||||
| Depreciation and amortization | 21,010 | 22,881 | 64,725 | 70,098 | |||||||||||||
| General and administrative | 3,582 | 3,297 | 10,826 | 10,586 | |||||||||||||
| Total operating expenses | 41,966 | 41,932 | 123,136 | 128,082 | |||||||||||||
| Other income (expense): | |||||||||||||||||
| Interest expense | (10,359 | ) | (9,473 | ) | (29,368 | ) | (28,592 | ) | |||||||||
| Loss on extinguishment of debt | - | (72 | ) | - | (72 | ) | |||||||||||
| Gain (loss) on sale of real estate | (234 | ) | 12,112 | 8,645 | 12,112 | ||||||||||||
| Loss on financing transaction | (14,657 | ) | - | (14,657 | ) | - | |||||||||||
| Total other income (expense) | (25,250 | ) | 2,567 | (35,380 | ) | (16,552 | ) | ||||||||||
| Net income (loss) | (15,345 | ) | 10,400 | (7,731 | ) | 4,430 | |||||||||||
| Less: Net income (loss) attributable to non-controlling interest | (170 | ) | 114 | (88 | ) | 46 | |||||||||||
| Less: Net income (loss) attributable to redeemable non-controlling interest - Series C Preferred Units | 426 | - | 426 | - | |||||||||||||
| Net income (loss) attributable to Plymouth Industrial REIT, Inc. | (15,601 | ) | 10,286 | (8,069 | ) | 4,384 | |||||||||||
| Less: Preferred Stock dividends | - | 677 | - | 2,509 | |||||||||||||
| Less: Loss on extinguishment/redemption of Series A Preferred Stock | - | 2,021 | - | 2,023 | |||||||||||||
| Less: Amount allocated to participating securities | 89 | 83 | 277 | 253 | |||||||||||||
| Net income (loss) attributable to common stockholders | $ | (15,690 | ) | $ | 7,505 | $ | (8,346 | ) | $ | (401 | ) | ||||||
| Net income (loss) per share attributable to common stockholders - basic | $ | (0.35 | ) | $ | 0.17 | $ | (0.19 | ) | $ | (0.01 | ) | ||||||
| Net income (loss) per share attributable to common stockholders - diluted | $ | (0.35 | ) | $ | 0.17 | $ | (0.19 | ) | $ | (0.01 | ) | ||||||
| Weighted-average common shares outstanding - basic | 45,009,273 | 44,056,855 | 44,979,140 | 43,108,039 | |||||||||||||
| Weighted-average common shares outstanding - diluted | 45,009,273 | 44,139,603 | 44,979,140 | 43,108,039 | |||||||||||||
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, loss on financing transaction, 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, loss on financing transaction, 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 a REIT’s operating performance, thereby, providing investors the potential to compare our operating performance with that of other REITs. 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 (Loss) (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”): We calculate Core FFO by adjusting FFO for non-comparable items such as 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, unrealized loss/(gain) on financing instruments, and loss on extinguishment of debt. We believe that Core FFO is a useful supplemental measure in addition to FFO by adjusting for items that are not considered by us to be part of the period-over-period operating performance of our property portfolio, thereby, providing a more meaningful and consistent comparison of our operating and financial performance during the periods presented. 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 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 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 Nine Months | ||||||||||||||||
| Ended September 30, | Ended September 30, | ||||||||||||||||
| NOI: | 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income (loss) | $ | (15,345 | ) | $ | 10,400 | $ | (7,731 | ) | $ | 4,430 | |||||||
| General and administrative | 3,582 | 3,297 | 10,826 | 10,586 | |||||||||||||
| Depreciation and amortization | 21,010 | 22,881 | 64,725 | 70,098 | |||||||||||||
| Interest expense | 10,359 | 9,473 | 29,368 | 28,592 | |||||||||||||
| Loss on extinguishment of debt | - | 72 | - | 72 | |||||||||||||
| (Gain) loss on sale of real estate | 234 | (12,112 | ) | (8,645 | ) | (12,112 | ) | ||||||||||
| Loss on financing transaction | 14,657 | - | 14,657 | - | |||||||||||||
| Management fee revenue and other income | (439 | ) | (29 | ) | (514 | ) | (58 | ) | |||||||||
| NOI | $ | 34,058 | $ | 33,982 | $ | 102,686 | $ | 101,608 | |||||||||
| For the Three Months | For the Nine Months | ||||||||||||||||
| Ended September 30, | Ended September 30, | ||||||||||||||||
| EBITDAre: | 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income (loss) | $ | (15,345 | ) | $ | 10,400 | $ | (7,731 | ) | $ | 4,430 | |||||||
| Depreciation and amortization | 21,010 | 22,881 | 64,725 | 70,098 | |||||||||||||
| Interest expense | 10,359 | 9,473 | 29,368 | 28,592 | |||||||||||||
| Loss on extinguishment of debt | - | 72 | - | 72 | |||||||||||||
| (Gain) loss on sale of real estate | 234 | (12,112 | ) | (8,645 | ) | (12,112 | ) | ||||||||||
| Loss on financing transaction | 14,657 | - | 14,657 | - | |||||||||||||
| EBITDAre | $ | 30,915 | $ | 30,714 | $ | 92,374 | $ | 91,080 | |||||||||
| For the Three Months | For the Nine Months | ||||||||||||||||
| Ended September 30, | Ended September 30, | ||||||||||||||||
| FFO: | 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income (loss) | $ | (15,345 | ) | $ | 10,400 | $ | (7,731 | ) | $ | 4,430 | |||||||
| (Gain) loss on sale of real estate | 234 | (12,112 | ) | (8,645 | ) | (12,112 | ) | ||||||||||
| Depreciation and amortization | 21,010 | 22,881 | 64,725 | 70,098 | |||||||||||||
| FFO: | $ | 5,899 | $ | 21,169 | $ | 48,349 | $ | 62,416 | |||||||||
| Preferred Stock dividends | - | (677 | ) | - | (2,509 | ) | |||||||||||
| Redeemable non-controlling interest - Series C Preferred Unit dividends | (426 | ) | - | (426 | ) | - | |||||||||||
| Acquisition expenses | - | - | - | 85 | |||||||||||||
| Loss on extinguishment of debt | - | 72 | - | 72 | |||||||||||||
| Loss on financing transaction | 14,657 | - | 14,657 | - | |||||||||||||
| Core FFO | $ | 20,130 | $ | 20,564 | $ | 62,580 | $ | 60,064 | |||||||||
| Weighted average common shares and units outstanding | 45,883 | 44,922 | 45,855 | 43,966 | |||||||||||||
| Core FFO per share | $ | 0.44 | $ | 0.46 | $ | 1.36 | $ | 1.37 | |||||||||
| For the Three Months | For the Nine Months | ||||||||||||||||
| Ended September 30, | Ended September 30, | ||||||||||||||||
| AFFO: | 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Core FFO | $ | 20,130 | $ | 20,564 | $ | 62,580 | $ | 60,064 | |||||||||
| Amortization of debt related costs | 470 | 570 | 1,346 | 1,708 | |||||||||||||
| Non-cash interest expense | 89 | (50 | ) | (329 | ) | 402 | |||||||||||
| Stock compensation | 1,093 | 827 | 3,118 | 2,128 | |||||||||||||
| Capitalized interest | (140 | ) | (282 | ) | (321 | ) | (968 | ) | |||||||||
| Straight line rent | (17 | ) | (216 | ) | 1,012 | (1,833 | ) | ||||||||||
| Above/below market lease rents | (299 | ) | (417 | ) | (910 | ) | (1,820 | ) | |||||||||
| Recurring capital expenditures(1) | (2,853 | ) | (1,965 | ) | (5,254 | ) | (4,863 | ) | |||||||||
| AFFO | $ | 18,473 | $ | 19,031 | $ | 61,242 | $ | 54,818 | |||||||||
| Weighted average common shares and units outstanding | 45,883 | 44,922 | 45,855 | 43,966 | |||||||||||||
| AFFO per share | $ | 0.40 | $ | 0.42 | $ | 1.34 | $ | 1.25 | |||||||||
| (1) Excludes non-recurring capital expenditures of | |||||||||||||||||
FAQ
What was Plymouth Industrial REIT's (PLYM) Q3 2024 Core FFO per share?
How much did PLYM's same-store NOI change in Q3 2024?
What was the size of PLYM's Memphis portfolio acquisition in Q3 2024?
What is PLYM's updated Core FFO guidance for full-year 2024?
