PLYMOUTH INDUSTRIAL REIT, INC. S E C O N D Q U A R T E R 2 0 2 3 S U P P L E M E N T A L
Plymouth Industrial REIT, Inc.
Table of Contents
Introduction
Executive Summary | 2 |
Management, Board of Directors, Investor Relations, and Equity Coverage | 2 |
Portfolio Statistics | 3 |
Acquisition Activity | 3 |
Value Creation | 4 |
Development Projects | 4 |
Guidance | 5 |
Financial Information | |
Same Store Net Operating Income (NOI) | 6 |
Consolidated Statements of Operations | 7 |
Consolidated NOI | 8 |
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre ) | 8 |
Funds from Operations (FFO), Core FFO & Adjusted Funds from Operations (AFFO) | 8 |
Consolidated Balance Sheets | 9 |
Capital Structure and Debt Summary | 10 |
Capital Markets Activity | 10 |
Net Asset Value Components | 11 |
Operational & Portfolio Information | |
Leasing Activity | 12 |
Lease Expiration Schedule | 12 |
Leased Square Feet and Annualized Base Rent by Tenant Industry | 13 |
Leased Square Feet and Annualized Base Rent by Type | 14 |
Top 10 Tenants by Annualized Base Rent | 15 |
Lease Segmentation by Size | 15 |
Rentable Square Feet and Annualized Base Rent by Market | 16 |
Total Acquisition and Replacement Cost by Market | 16 |
Appendix | |
Glossary | 17 |
Forward-LookingStatements: This Supplemental Information contains 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 Supplemental Information do not constitute guarantees of future performance. Investors are cautioned that statements in this Supplemental Information, 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 Supplemental Information, 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.
Definitions and Reconciliations: For definitions of certain terms used throughout this Supplemental Information, including certain non-GAAP financial measures, refer to the Glossary on pages 17-18. For reconciliations of the non-GAAP financial measures to the most directly comparable U.S. GAAP measures, refer to page 8.
Plymouth Industrial REIT, Inc.
Executive Summary
Company overview: Plymouth Industrial REIT, Inc. (NYSE: PLYM) is a full service, vertically integrated real estate investment trust 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.
Management, Board of Directors, Investor Relations, and Equity Coverage
Corporate | Investor Relations | Transfer Agent | |
20 Custom House Street, 11th Floor | Tripp Sullivan | Continental Stock Transfer & Trust Company | |
Boston, Massachusetts 02110 | SCR Partners | 1 State Street, 30th Floor | |
617.340.3814 | 615.942.7077 | New York, NY 10004 | |
www.plymouthreit.com | IR@plymouthreit.com | 212.509.4000 | |
Executive Management | |||
Jeffrey E. Witherell | Anthony J. Saladino | James M. Connolly | Lyndon J. Blakesley |
Chief Executive Officer | Executive Vice President | Executive Vice President | Senior Vice President |
and Chairman | and Chief Financial Officer | Asset Management | and Chief Accounting Officer |
Benjamin P. Coues | Anne A. Hayward | Daniel Hefferman | Scott L. Robinson |
Senior Vice President | Senior Vice President | Senior Vice President | Senior Vice President |
and Head of Acquisitions | and General Counsel | Asset Management | Corporate Development |
Board of Directors | |||
Philip S. Cottone | Richard J. DeAgazio | David G. Gaw | John W. Guinee |
Independent Director | Independent Director | Lead Independent Director | Independent Director |
Caitlin Murphy | Pendleton P. White, Jr. | Jeffrey E. Witherell | |
Independent Director | Director | Chief Executive Officer | |
and Chairman | |||
Equity Research Coverage1 | |||
Baird | BNP Paribas Exane | Colliers Securities | KeyBanc Capital Markets |
Nicholas Thillman | Nate Crossett | Barry Oxford | Todd Thomas |
414.298.5053 | 646.725.3716 | 203.961.6573 | 917.368.2375 |
BMO Capital Markets | B Riley Securities | JMP Securities | J.P. Morgan |
John Kim | Bryan Maher | Mitch Germain | Mike Mueller |
212.885.4115 | 646.885.5423 | 212.906.3537 | 212.622.6689 |
Truist Securities Anthony Hau 212.303.4176
Investor Conference Call and Webcast:
The Company will host a conference call and live audio webcast, both open for the general public to hear, on August 3, 2023 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 analysts listed provide research coverage on the Company. Any opinions, estimates or forecasts regarding the Company's performance made by these analysts are theirs alone and do not represent opinions, estimates or forecasts by the Company or its management. The Company does not by reference above imply its endorsement of or concurrence with such information, conclusions or recommendations.
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Plymouth Industrial REIT, Inc.
Portfolio Statistics
Unaudited ($ in thousands, except Cost/SF) as of 6/30/2023
Portfolio Snapshot | Portfolio Growth ($ in millions) | |||||
Number of Properties | 157 | |||||
Number of Buildings | 210 | |||||
Square Footage | 34,228 | |||||
Occupancy | 98.0% | |||||
WA Lease Term Remaining (yrs.)1 | 3.5 | |||||
Total Annualized Base Rent (ABR)2 | $147,994 | |||||
Rental Rate Increase - Cash Basis3 | 19.3% | |||||
Q2 Rent Collections | 99.6% | |||||
7 | ||||||
Acquisition Activity
Acquisitions
Location | Acquisition Date | # of Buildings | Purchase Price4 | Square Footage | Projected Initial Yield5 | Cost per Square Foot6 | ||
YTD 2023 | - | $ | - | - | - | $ | - | |
Multiple | Full Year 2022 | 44 | $ | 253,655 | 4,164,864 | 6.1% | $ | 71.54 |
Multiple | Full Year 2021 | 24 | $ | 370,977 | 6,380,302 | 6.7% | $ | 63.15 |
Multiple | Full Year 2020 | 27 | $ | 243,568 | 5,473,596 | 7.8% | $ | 46.99 |
Multiple | Full Year 2019 | 32 | $ | 220,115 | 5,776,928 | 8.4% | $ | 42.21 |
Multiple | Full Year 2018 | 24 | $ | 164,575 | 2,903,699 | 8.2% | $ | 70.54 |
Multiple | 2017 (since IPO) | 36 | $ | 173,325 | 5,195,563 | 8.4% | $ | 33.81 |
Total Acquisitions Post-IPO | ||||||||
187 | $ | 1,426,215 | 29,894,952 | 7.4% | $ | 55.94 |
Portfolio statistics and acquisitions include wholly owned industrial properties only; excludes our property management office located in Columbus, Ohio.
- The average contractual lease term remaining as of the close of the reporting period (in years) weighted by square footage.
- Annualized base rent is calculated as monthly contracted base rent as of June 30, 2023, multiplied by 12. Excludes rent abatements.
- Based on approximately 2.1 million square feet of new and renewal leases greater than six months in term. Refer to Leasing Activity in this Supplemental Information for additional details.
- Represents total direct consideration paid rather than GAAP cost basis.
- Weighted based on Purchase Price.
- Calculated as Purchase Price divided by square footage.
- Acquisitions include capitalized costs in accordance to GAAP for development properties placed in-service.
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Plymouth Industrial REIT, Inc.
Value Creation
Unaudited ($ in thousands, except RSF)
Examples of Value Creation
Lease-up / Building Refurbishment | New Industrial Development | Re-leasing / No downtime |
Memphis | Atlanta | Atlanta |
Executed a 312,000 SF 5-year lease with annual escalators of 3.0% at a rental rate increase of 56% over prior rents.
Tenant move-out was addressed expeditiously. The building will undergo roof and fire suppression upgrades as a part of the new lease transaction.
The property was acquired at a going-in yield of 8.0%, which now has increased to a stabilized yield of over 11.0%.
Acquired single-tenant industrial building in January 2020 with ~ 65 acres of developable land.
Broke ground on new 237,000 SF building during Q2 2021 and completed development in Q1 2023 at a cost of ~$13.8M, an add'l 180,000 SF building is projected for Q3 2023 at a cost of ~$12.0M.
Flexible design planned for both buildings to allow for demising. The 237,000 SF building is 100% leased.
Executed an early 7-year renewal for a 194,800 SF tenant effective upon the substantial completion of capital improvements to the property.
The estimated $1.6 million capital improvements include remodeling of restrooms, roof replacement, dock door restorations, and parking lot repairs.
Tenant is in place during capital improvements resulting in no downtime. Renewal rent will be a 53% net increase over the prior rental rate.
Plymouth is partnering with the Green Building Initiative to align our environmental objectives with the execution of all new development and portfolio enhancement activities. Thus far
Plymouth has achieved a Three Green Globe certification on our Cincinnati development and a Two Green Globe certification on both the Boston and first Atlanta developments.1
Development Projects (as of 06/30/2023)
The Company has identified over 1.9 million SF of developable GLA with 260,322 SF currently under construction and 459,380 SF recently completed. The total investment in development under construction is approximately $20.9 million as of 6/30/2023 against a budget of approximately $23.9 million. The total investment in completed developments is approximately $37.2 million. The proforma stabilized cash NOI yields on development projects under construction and completed range between 7.0% - 9.0%.
Under Construction2 | Total Rentable | Estimated | |||
# of Buildings | Square Feet (RSF) | % Leased | % Funded | Completion | |
Atlanta - New Calhoun II | 1 | 180,000 | Multiple prospects | 99% | Q3 2023 |
Jacksonville - Liberty | 2 | 80,322 | 100% | 76% | Q3/Q4 2023 |
3 | 260,322 |
Completed 3 | Total Rentable | ||||
# of Buildings | Square Feet (RSF) | % Leased | % Funded | Completed | |
Boston - Milliken Road | 1 | 68,088 | 100% | 100% | Q4 2022 |
Atlanta - New Calhoun I | 1 | 236,600 | 100% | 100% | Q1 2023 |
Cincinnati - Fisher Park I | 1 | 154,692 | Multiple prospects | 100% | Q1 2023 |
3 | 459,380 |
- The Company is a member organization of the Green Building Initiative (GBI), a nonprofit organization and American National Standards Institute (ANSI) Accredited Standards Developer dedicated to reducing climate impacts by improving the built environment. Founded in 2004, the organization is the global provider of the Green Globes and federal Guiding Principles Compliance certification and assessment programs.
- Under construction represents projects for which vertical construction has commenced. Refer to the Developable Land section of the Net Asset Components on page 11 of this Supplemental Information for additional details on the Company's development activities.
- Completed buildings are included within portfolio occupancy and square footage metrics as of June 30, 2023.
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Disclaimer
Plymouth Industrial REIT Inc. published this content on 03 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2023 11:13:16 UTC.
