First Quarter and Subsequent Highlights
- Reported results for the first quarter of 2024 reflect net income attributable to common stockholders of
$0.14 per weighted average common share; Core Funds from Operations attributable to common stockholders and unit holders (“Core FFO”) of$0.45 per weighted average common share and units; and Adjusted FFO (“AFFO”) of$0.45 per weighted average common share and units. - Same store NOI (“SS NOI”) increased 2.9% on a GAAP basis excluding early termination income for the first quarter compared with the same period in 2023; increased 7.0% on a cash basis excluding early termination income.
- Commenced leases during the first quarter experienced a 17.1% increase in rental rates on a cash basis from leases greater than six months with new leases experiencing a 48.4% increase on a cash basis and renewal leases experiencing an 5.9% increase on a cash basis. Through
April 29, 2024 , executed leases scheduled to commence during 2024, which includes the first quarter activity, total an aggregate of 4,148,844 square feet, all of which are associated with terms of at least six months. The Company will experience a 16.5% increase in rental rates on a cash basis from these leases. - Completed 54,008 square feet of development leasing through the first quarter, bringing the total 772,622-square-foot development program to 93% leased.
- Recorded an approximate
$8.0 million net gain on sale of real estate related to a tenant’s notice of intent to exercise a fixed purchase option for$21.5 million for a property located inColumbus, OH . - Increased the regular quarterly cash dividend for the first quarter of 2024 by 6.7% to
$0.240 per share for the common stock, or an annualized rate of$0.96 per share. - Affirmed the full year 2024 guidance range for Core FFO per weighted average common share and units previously issued on
February 21, 2024 , and updated its range for net income per weighted average common share and units and accompanying assumptions.
Financial Results for the First Quarter of 2024
Net income 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.
Liquidity
As of
Investment Activity
As of
The final project in the first phase of Plymouth’s development program, a 52,920-square-foot, fully leased building in
During the three months ended
Leasing Activity
Leases commencing during the first quarter ended
Executed leases scheduled to commence during 2024, which includes the first quarter activity, total an aggregate of 3,310,261 square feet, all of which are associated with terms of at least six months. The Company will experience a 16.5% increase in rental rates on a cash basis from these leases. These leases, which represent 58% of its total 2024 expirations, included 3,310,261 square feet of renewal leases (25.8% of these leases were associated with contractual renewals) and 838,583 square feet of new leases, of which 15,200 square feet was vacant at the start of 2024.
Quarterly Distributions to Stockholders
On
Guidance for 2024
Plymouth affirmed its full year 2024 guidance range for Core FFO per weighted average common share and units previously issued on
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 | $ | 0.08 | $ | 0.12 | ||||
Gain on sale of real estate | (0.18 | ) | (0.18 | ) | ||||
Real estate depreciation & amortization | 1.98 | 1.98 | ||||||
Core FFO | $ | 1.88 | $ | 1.92 | ||||
1) Our 2024 guidance refers to the Company's in-place portfolio as of
2) Includes non-cash stock compensation of
3) As of
Earnings Conference Call and Webcast
The Company will host a conference call and live audio webcast, both open for the general public to hear, on
The Company has posted supplemental financial information on the first 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
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 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:
IR@plymouthreit.com
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
UNAUDITED | ||||||||
(In thousands, except share and per share amounts) | ||||||||
2024 | 2023 | |||||||
Assets | ||||||||
Real estate properties | $ | 1,551,254 | $ | 1,567,866 | ||||
Net investment in sales-type lease | 21,459 | - | ||||||
Less accumulated depreciation | (277,253 | ) | (268,046 | ) | ||||
Real estate properties, net | 1,295,460 | 1,299,820 | ||||||
Cash | 16,812 | 14,493 | ||||||
Cash held in escrow | 3,222 | 4,716 | ||||||
Restricted cash | 7,203 | 6,995 | ||||||
Deferred lease intangibles, net | 46,396 | 51,474 | ||||||
Other assets | 39,670 | 42,734 | ||||||
Interest rate swaps | 26,382 | 21,667 | ||||||
Total assets | $ | 1,435,145 | $ | 1,441,899 | ||||
Liabilities and Equity | ||||||||
Liabilities: | ||||||||
Secured debt, net | 265,619 | 266,887 | ||||||
Unsecured debt, net | 448,158 | 447,990 | ||||||
Borrowings under line of credit | 155,400 | 155,400 | ||||||
Accounts payable, accrued expenses and other liabilities | 68,049 | 73,904 | ||||||
Deferred lease intangibles, net | 5,590 | 6,044 | ||||||
Financing lease liability | 2,278 | 2,271 | ||||||
Interest rate swaps | 189 | 1,161 | ||||||
Total liabilities | 945,283 | 953,657 | ||||||
Equity: | ||||||||
Common stock, | 453 | 452 | ||||||
Additional paid in capital | 634,651 | 644,938 | ||||||
Accumulated deficit | (176,388 | ) | (182,606 | ) | ||||
Accumulated other comprehensive income | 25,859 | 20,233 | ||||||
Total stockholders' equity | 484,575 | 483,017 | ||||||
Non-controlling interest | 5,287 | 5,225 | ||||||
Total equity | 489,862 | 488,242 | ||||||
Total liabilities and equity | $ | 1,435,145 | $ | 1,441,899 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
UNAUDITED | |||||||||
(In thousands, except share and per share amounts) | |||||||||
For the Three Months | |||||||||
Ended | |||||||||
2024 | 2023 | ||||||||
Rental revenue | $ | 50,190 | $ | 49,371 | |||||
Management fee revenue and other income | 38 | 29 | |||||||
Total revenues | 50,228 | 49,400 | |||||||
Operating expenses: | |||||||||
Property | 16,642 | 15,954 | |||||||
Depreciation and amortization | 22,368 | 23,800 | |||||||
General and administrative | 3,364 | 3,447 | |||||||
Total operating expenses | 42,374 | 43,201 | |||||||
Other income (expense): | |||||||||
Interest expense | (9,598 | ) | (9,535 | ) | |||||
Gain on sale of real estate | 8,030 | - | |||||||
Total other income (expense) | (1,568 | ) | (9,535 | ) | |||||
Net income (loss) | 6,286 | (3,336 | ) | ||||||
Less: Net income (loss) attributable to non-controlling interest | 68 | (38 | ) | ||||||
Net income (loss) attributable to | 6,218 | (3,298 | ) | ||||||
Less: Preferred Stock dividends | - | 916 | |||||||
Less: Loss on extinguishment/redemption of Series A Preferred Stock | - | 2 | |||||||
Less: Amount allocated to participating securities | 94 | 88 | |||||||
Net income (loss) attributable to common stockholders | $ | 6,124 | $ | (4,304 | ) | ||||
Net income (loss) per share attributable to common stockholders - basic | $ | 0.14 | $ | (0.10 | ) | ||||
Net income (loss) per share attributable to common stockholders - diluted | $ | 0.14 | $ | (0.10 | ) | ||||
Weighted-average common shares outstanding - basic | 44,936,597 | 42,604,770 | |||||||
Weighted-average common shares outstanding - diluted | 44,970,884 | 42,604,770 | |||||||
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 an 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
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, appreciation/(depreciation) of warrants 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 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.
SUPPLEMENTAL RECONCILIATION OF NON-GAAP DISCLOSURES | |||||||||
UNAUDITED | |||||||||
(In thousands, except share and per share amounts) | |||||||||
For the Three Months | |||||||||
Ended | |||||||||
NOI: | 2024 | 2023 | |||||||
Net income (loss) | $ | 6,286 | $ | (3,336 | ) | ||||
General and administrative | 3,364 | 3,447 | |||||||
Depreciation and amortization | 22,368 | 23,800 | |||||||
Interest expense | 9,598 | 9,535 | |||||||
Gain on sale of real estate | (8,030 | ) | - | ||||||
Management fee revenue and other income | (38 | ) | (29 | ) | |||||
NOI | $ | 33,548 | $ | 33,417 | |||||
For the Three Months | |||||||||
Ended | |||||||||
EBITDAre: | 2024 | 2023 | |||||||
Net income (loss) | $ | 6,286 | $ | (3,336 | ) | ||||
Depreciation and amortization | 22,368 | 23,800 | |||||||
Interest expense | 9,598 | 9,535 | |||||||
Gain on sale of real estate | (8,030 | ) | - | ||||||
EBITDAre | $ | 30,222 | $ | 29,999 | |||||
For the Three Months | |||||||||
Ended | |||||||||
FFO: | 2024 | 2023 | |||||||
Net income (loss) | $ | 6,286 | $ | (3,336 | ) | ||||
Gain on sale of real estate | (8,030 | ) | - | ||||||
Depreciation and amortization | 22,368 | 23,800 | |||||||
FFO: | $ | 20,624 | $ | 20,464 | |||||
Preferred stock dividends | - | (916 | ) | ||||||
Acquisition expenses | - | 81 | |||||||
Core FFO | $ | 20,624 | $ | 19,629 | |||||
Weighted average common shares and units outstanding | 45,809 | 43,432 | |||||||
Core FFO per share | $ | 0.45 | $ | 0.45 | |||||
For the Three Months | |||||||||
Ended | |||||||||
AFFO: | 2024 | 2023 | |||||||
Core FFO | $ | 20,624 | $ | 19,629 | |||||
Amortization of debt related costs | 438 | 568 | |||||||
Non-cash interest expense | (102 | ) | 294 | ||||||
Stock compensation | 914 | 585 | |||||||
Capitalized interest | (75 | ) | (335 | ) | |||||
Straight line rent | (15 | ) | (912 | ) | |||||
Above/below market lease rents | (318 | ) | (734 | ) | |||||
Recurring capital expenditures(1) | (994 | ) | (1,806 | ) | |||||
AFFO | $ | 20,472 | $ | 17,289 | |||||
Weighted average common shares and units outstanding | 45,809 | 43,432 | |||||||
AFFO per share | $ | 0.45 | $ | 0.40 | |||||
(1) Excludes non-recurring capital expenditures of | |||||||||
Source:
2024 GlobeNewswire, Inc., source