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; increased
6.0% on a cash basis excluding early termination income. SS NOI
increased 3.6% on a GAAP basis excluding early termination income
for the first six months of 2023 compared with the same period in
2022; increased 7.5% 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 a 36.0% increase on a cash basis and renewal leases
experiencing an 11.2% 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 a 23.1% 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 $0.225 per share for the
common stock and a regularly quarter cash dividend of $0.46875 per
share for the Preferred Stock.
- Affirmed the full year 2023
guidance range for Core FFO of $1.84 to $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) to $(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 88% of lease expirations
already addressed for 2023, and we are well ahead of expectations
on the 2024 lease expirations. Strategic utilization of our ATM
program and visibility into near-term, one-off dispositions allowed
us to announce the redemption of our remaining preferred stock.
This redemption, along with strong organic growth and contributions
from the development program, improve the balance sheet. With an
estimated rental rate mark-to-market of 18% to 20% across our
portfolio, continued rent growth in our markets, and strong
operating fundamentals, we are well positioned to continue
delivering organic growth.”
Financial Results for the Second Quarter
of 2023 Net loss attributable to common stockholders for
the quarter ended June 30, 2023 was $3.6 million, or $(0.08) per
weighted average common share outstanding, compared with $6.6
million, or $(0.17) per weighted average common share outstanding,
for the same period in 2022. The net loss decreased year-over-year
primarily due to an increase in net operating income, partially
offset by increased interest expense resulting from higher interest
rates and acquisition activity. Weighted average common shares
outstanding for the second quarters ended June 30, 2023 and 2022
were 42.6 million and 39.1 million, respectively.
Consolidated total revenues for the quarter
ended June 30, 2023 were $49.9 million, compared with $45.6 million
for the same period in 2022.
NOI for the quarter ended June 30, 2023 was
$34.2 million compared with $31.8 million for the same period in
2022. Same store NOI (“SS NOI”) excluding early termination income
– GAAP basis for the quarter ended June 30, 2023 was $30.5 million
compared with $29.5 million for the same period in 2022, an
increase of 3.5%. SS NOI excluding early termination income – Cash
basis for the quarter ended June 30, 2023 was $29.8 million
compared with $28.2 million for the same period in 2022, an
increase of 6.0%. SS NOI for the second quarter was positively
impacted by rent escalations and renewal and new leasing spreads.
The same store portfolio is comprised of 183 buildings totaling
31.0 million square feet, or 90.5% of the Company’s total
portfolio, and was 98.9% occupied as of June 30, 2023.
EBITDAre for the quarter ended June 30, 2023 was
$30.4 million compared with $27.7 million for the same period in
2022.
Core FFO for the quarter ended June 30, 2023 was
$19.9 million compared with $18.6 million for the same period in
2022, primarily as a result of the growth in same-store NOI,
contribution from acquisitions and a decrease in preferred stock
dividends resulting from the full conversion of the Series B
Convertible Stock, partially offset by an increase in interest
expense. The Company reported Core FFO for the quarter ended June
30, 2023 of $0.46 per weighted average common share and unit
compared with $0.47 per weighted average common share and unit for
the same period in 2022. Weighted average common shares and units
outstanding for the second quarters ended June 30, 2023, and 2022
were 43.5 million and 39.9 million, respectively.
AFFO for the quarter ended June 30, 2023 was
$18.5 million, or $0.42 per weighted average common share and unit,
compared with $16.5 million, or $0.41 per weighted average common
share and unit, for the same period in 2022. The results reflected
the aforementioned changes in Core FFO and a reduction in recurring
capital expenditures.
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 ActivityAs of
July 31, 2023, the Company’s current cash balance was approximately
$12.4 million, excluding operating expense escrows of approximately
$6.7 million, and it has approximately $287.5 million of capacity
under the existing unsecured line of credit.
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 $23.05 per
share, raising approximately $27.1 million in net proceeds.
On August 2, 2023, the Company announced that on
September 6, 2023 it will redeem all of its outstanding 7.50%
Series A Cumulative Redeemable Preferred Stock for a total
redemption payment of $48.8 million. The Preferred Stock will be
redeemed in cash at a redemption price equal to $25.00 per share.
On September 6, 2023, a dividend in the amount of $0.34647 per
share of Series A Preferred Stock will be paid in cash to holders
of record at the close of business on August 25, 2023. On and after
the redemption date, the shares of Series A Preferred Stock will no
longer be deemed outstanding, and no further dividends will be
declared or payable on them. Upon redemption, the shares of
Preferred Stock will be delisted from trading on the NYSE
American.
Investment ActivityAs 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 87% of the expected $23.9 million in
development costs funded as of June 30, 2023. In Jacksonville,
Florida, two industrial buildings totaling 80,322 square feet are
expected to be completed in the third and fourth quarters of 2023.
These buildings are fully leased. In Atlanta, a 180,000-square-foot
industrial building is expected to be completed in the third
quarter of 2023.
Leasing ActivityLeases 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 19.3% increase in
rental rates on a cash basis from these leases. These leases
included 662,930 square feet of new leases with a 36.0% increase in
rental rates on a cash basis and 1,440,165 square feet of renewal
leases (11.4% of these leases were associated with contractual
renewals) with an 11.2% increase in rental rates on a cash basis.
Consistent with the Company’s full year 2023 forecast, occupancy
was 98.0% and reflects budgeted roll-over that has been largely
addressed as well as recent new developments now in service.
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 23.1% increase in
rental rates on a cash basis from these leases. These leases
included 566,784 square feet of new leases with a 24.5% increase in
rental rates on a cash basis and 1,743,365 square feet of renewal
leases (7.0% of these leases were associated with contractual
renewals) with a 22.6% increase in rental rates on a cash
basis.
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 14.6% increase in rental rates on a cash basis from
these leases. These leases included 346,564 square feet of new
leases with a 43.7% increase in rental rates on a cash basis and
1,370,761 square feet of renewal leases (52.7% of these leases were
associated with contractual renewals) with an 8.7% increase in
rental rates on a cash basis for these leases.
Quarterly Distributions to
Stockholders
On July 31, 2023, the Company paid a regular
quarterly common stock dividend of $0.225 per share for the second
quarter of 2023 to stockholders of record on June 30, 2023.
On June 30, 2023, the Company paid a regular
quarterly cash dividend of $0.46875 per share for the Preferred
Stock for the second quarter of 2023 to stockholders of record on
June 15, 2023.
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 $19.9 million. The disposition is subject to
customary closing conditions. As such, there can be no assurance
that we will complete the disposition. Our 2023 guidance does not
include prospective acquisitions, additional dispositions, or
additional capitalization activities that have not closed. |
2) |
The Same Store Portfolio consists of 183 buildings aggregating
30,989,249 rentable square feet, representing approximately 91% of
total in-place portfolio square footage. The Same Store projected
performance reflects an annual NOI on a cash basis, excluding
termination income. |
3) |
Includes non-cash stock compensation of $3.0 million for 2023. |
4) |
As of July 31, 2023, the Company has 44,744,983 common shares and
units outstanding. |
|
|
Earnings Conference Call and WebcastThe 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 StatementsThis 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 $0.01 per share, 100,000,000 shares
authorized, |
|
|
|
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 $48,845 and $48,888 at June 30, 2023 and
December 31, 2022, respectively) |
|
46,803 |
|
|
|
46,844 |
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
Common stock, $0.01 par value: 900,000,000 shares authorized;
43,100,864 and 42,849,489 shares issued and outstanding at June 30,
2023 and December 31, 2022, respectively |
|
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) |
|
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|
|
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|
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|
|
|
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 |
|
|
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|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 $7,640 and
$14,515 for the three months ended June 30, 2023 and 2022,
respectively, and $16,053 and $22,804 for the six months ended June
30 2023 and 2022 respectively. |
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Contact:Tripp SullivanSCR Partners(615)
942-7077IR@plymouthreit.com
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