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Section 1: 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

November 13, 2018

Date of Report (Date of earliest event reported)

 

PLYMOUTH INDUSTRIAL REIT, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

 

         
MARYLAND   001-38106   27-5466153

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

   

260 Franklin Street, 7th Floor

Boston, MA 02110

(Address of Principal Executive Offices) (Zip Code)

(617) 340-3814

(Registrant’s Telephone Number, Including Area Code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company   ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ¨

 

 

 
Item 2.02Results of Operations and Financial Condition

On November 13, 2018, Plymouth Industrial REIT, Inc. (the “Company”) issued a press release (the “Earnings Release”) announcing, among other things, earnings for the quarter ended September 30, 2018. The text of the Earnings Release is included as Exhibit 99.1 to this Current Report.

 

The Earnings Release is furnished pursuant to Item 2.02 and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

Item 7.01Regulation FD Disclosure.

 

On November 13, 2018, the Company disclosed a supplemental analyst package in connection with its earnings conference call for the quarter ended September 30, 2018 which will take place on November 13, 2018. A copy of the supplemental analyst package is attached hereto as Exhibit 99.2.

 

The supplemental analyst package is furnished pursuant to Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01Financial Statements and Exhibits.

 

(d) Exhibits:

 

  Exhibit No.   Description
       
  99.1  

Press Release dated November 13, 2018

 

  99.2   Supplemental Analyst Package – Third Quarter 2018

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

        PLYMOUTH INDUSTRIAL REIT, INC.
       
Date: November 13, 2018       By:  

/s/ Jeffrey E. Witherell

            Jeffrey E. Witherell
            Chief Executive Officer

 

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Section 2: EX-99 (EARNINGS RELEASE)

Exhibit 99.1

 

 

Contact:

Tripp Sullivan

SCR Partners

(615) 760-1104

TSullivan@scr-ir.com

 

PLYMOUTH INDUSTRIAL REIT REPORTS THIRD QUARTER RESULTS AND INCREASES 2018 GUIDANCE

 

BOSTON, November 13, 2018 – Plymouth Industrial REIT, Inc. (NYSE America: PLYM) (the “Company”) today announced its consolidated financial results for the quarter ended September 30, 2018 and other recent developments. A comparison of the reported amounts per share for the third quarter of 2018 to prior-year periods has been affected by an increase in the common stock outstanding resulting from the completion of, and the use of proceeds from, the Company’s initial listed public offering (the “IPO") in June 2017, its preferred stock offering in October 2017 and a follow-on common stock offering in July 2018, as discussed below.

 

Third Quarter and Subsequent Highlights

·Reported results for the third quarter of 2018 reflect a net loss attributable to common stockholders of $5.3 million, or $(1.22) per weighted average common share, including a loss on extinguishment of debt of $0.8 million; net operating income (“NOI”) of $7.3 million; Funds from Operations (“FFO”) of $2.3 million; FFO attributable to common stockholders and unit holders of $0.28 per weighted average common share and units; and Adjusted FFO (“AFFO”) of $0.16 per weighted average common share and units.
·For the third quarter of 2018, declared a regular quarterly cash dividend of $0.375 for the common stock and a regular quarterly cash dividend of $0.46875 per share for the 7.50% Series A Cumulative Redeemable Preferred Stock (“the “Preferred Stock”).
·During the quarter, completed an underwritten public offering of approximately 1.3 million shares of common stock, including exercise of the underwriters’ overallotment option, at $15.60 per share that raised approximately $19.7 million.
·Increased 2018 guidance to revenues of $47.4 million to $47.6 million and net operating income of $30.3 million to $30.5 million.

 

Jeff Witherell, Chairman and Chief Executive Officer of Plymouth Industrial REIT, noted, “We have been very active throughout the quarter on all of our key objectives to grow the company and drive revenues, net operating income and cash flows. Our ability to successfully lease existing properties in the portfolio, as well as execute on recent acquisitions, demonstrates that we have the experience to actively pursue the right opportunities that play to our strengths as a company. With our capital markets activity, we have taken the necessary steps to position us to access capital when the market begins to appropriately value our enterprise and the platform we have created for future growth. As we look forward to 2019, while there will be quarterly variability due to the timing of capital expenditures, we expect a meaningful increase in FFO and AFFO. We have likewise made tremendous progress in improving our balance sheet in the past year, and those efforts remain a top priority.”

 

Financial Results for the Third Quarter of 2018

The completion of the IPO in June 2017, a preferred stock offering in October 2017, and a follow-on common stock offering in July 2018 provided the Company with a meaningfully different capital structure compared to the prior-year period. The Company believes the use of IPO proceeds and related higher share count, makes year-over-year comparisons less meaningful, particularly on a per share basis.

 

Net loss attributable to common stockholders for the quarter ended September 30, 2018 was $5.3 million, or $(1.22) per weighted average common share outstanding, compared with net loss attributable to common stockholders of $2.7 million, or $(0.74) per weighted average common share, for the same period in 2017. The increase in net loss for the third quarter of 2018 was primarily due to an increase in depreciation and amortization expense of $2.8 million, increased property expenses of $2.2 million, a loss on extinguishment of debt of $0.8 million related to the payoff of the MWG Portfolio Loan and increased interest expense of $1.0 million. This was offset by increased revenues of $5.0 million primarily driven by the acquisition activity during the second half of 2017 and 2018.

 

 
 

 

Consolidated total revenues for the quarter ended September 30, 2018 were $11.7 million, compared with $6.7 million for the same period in 2017.

 

NOI for the quarter ended September 30, 2018 was $7.3 million compared with NOI of $4.3 million for the same period in 2017.

 

EBITDA for the quarter ended September 30, 2018 was $5.9 million compared with $3.3 million for the same period in 2017.

 

FFO for the quarter ended September 30, 2018 was $2.3 million compared with $436,000 for the same period in 2017, primarily as a result of significantly higher NOI, the adjustment for loss on extinguishment of debt and the increase in weighted average shares following the public offering completed in July 2018. FFO attributable to common stockholders and unit holders for the quarter ended September 30, 2018 was $1.4 million, or $0.28 per weighted average common share and unit, compared with $436,000, or $0.11 per weighted average common share, for the same period in 2017. The increase was due to the reasons noted above for FFO, offset by $1.0 million of preferred stock dividends.

 

AFFO for the quarter ended September 30, 2018 was $803,000, or $0.16 per weighted average common share and unit, compared with $1.4 million, or $0.34 per weighted average common share, for the same period in 2017, primarily driven by the change in FFO, a net decrease in deferred finance fees and non-cash interest of $722,000, increased straight line rent and above/below market rent adjustments, recurring capital expenditures and lease commissions of approximately $599,000 incurred in the quarter and the increase in weighted average shares following the public offering completed in July 2018.

 

Investment Activity

As of September 30, 2018, the Company had real estate investments comprised of 52 industrial properties totaling 9.9 million square feet with occupancy of 94.4%. On September 27, 2018, the Company completed the purchase of a 400,000-square foot multi-tenant Class A industrial building in Cleveland, Ohio for $27.0 million in cash, which was funded with borrowings under the Company’s secured credit facility. The building is 100% leased and is projected to provide an initial yield of 7.6%.

 

On October 15, 2018, the Company completed the acquisition of a 1.1 million-square-foot multi-tenant Class B industrial property in the greater Cincinnati, Ohio market for total consideration of $24.8 million. The building is 92% leased and projected to provide an initial yield of 8.5%. The acquisition was funded with the issuance of 626,011 operating partnership units valued at approximately $10.6 million, or $17.00 per unit, the assumption of $13.9 million of existing mortgage debt secured by the property and $251,000 in cash.

 

Leasing Activity

Leases commencing during the third quarter of 2018 totaled an aggregate of 216,000 square feet, all of which were for leases of at least six months. These leases included 101,000 square feet of renewal leases and 115,000 square feet of new leases. The Company will experience a 2.1% decrease in rental rates on a cash basis from these leases. The leasing activity for the quarter was heavily influenced by a 40,000-square-foot lease with the Federal Aviation Administration (FAA) where the prior lease had significant improvements amortized into the expiring rent.  The new lease was put into place with no tenant improvements provided. Absent the FAA lease, the Company would have reported a 14.4% increase in rental rates on a cash basis from these leases.

 

For the nine months ended September 30, 2018, leases executed totaled 1,518,000 square feet, of which 1,336,000 square feet was for leases of at least six months. The leases six months or longer included 395,000 square feet of renewal leases and 941,000 square feet of new leases. The Company will experience a 5.0% increase in rental rates, on a cash basis, from all of the leases executed in the first nine months of 2018 with a lease term of at least six months.  The weighted average term for these leases is 3.3 years.

 

Capital Markets Activity

On July 10, 2018, the Company closed on a new 10-year $78.0 million loan with a fixed interest rate of 4.35% and secured by 18 Chicago area properties. The proceeds, together with additional working capital, were used to repay in full the Company’s MWG Portfolio loan, a $79.8 million variable rate secured term loan that was scheduled to mature in December 2019 and had a floating interest rate of 310 basis points over LIBOR.

 

 
 

 

During the third quarter of 2018, the Company completed a common stock offering of 1,262,833 shares, including exercise of the underwriters’ overallotment option, at $15.60 per share that raised approximately $19.7 million. The offering provided net proceeds of approximately $17.9 million to fund future acquisitions and primarily positioned the Company to become shelf-eligible.

 

On August 24, 2018, the Company established an at-the-market (“ATM”) equity program under which it may sell common stock with an aggregate offering price of up to $50 million from time to time pursuant to a distribution agreement with D.A. Davidson & Co., KeyBanc Capital Markets Inc. and National Securities Corporation as sales agents and/or principals. To date, the Company has not sold any shares under the ATM program, and does not anticipate utilizing the ATM until the market begins to appropriately value the Company’s portfolio and the foundation for growth that has been created.

 

Quarterly Distributions to Stockholders

On August 31, 2018, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.46875 per share for the Preferred Stock for the third quarter of 2018. The dividend was paid on October 1, 2018 to stockholders of record on September 14, 2018.

 

On September 14, 2018, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.375 per share for Company’s common stock for the third quarter of 2018. The dividend was payable on October 31, 2018, to stockholders of record on September 28, 2018.

 

2018 Outlook

The Company increased its 2018 guidance for revenues and NOI to account for its recent investment and capital markets activity. The information provided contains estimates based on the Company’s anticipated results of operations for 2018. All estimates exclude any potential impact from additional acquisitions:

 

·Total revenues of $47.4 million to $47.6 million (compared with $44.8 million to $45.6 million previously)
·Net operating income of $30.3 million to $30.5 million (compared with $28.9 million to $29.8 million previously)
·General and administrative expenses of $5.6 million to $5.8 million, including non-cash expenses of $0.8 million to $1.0 million
·5.9 million common shares and operating partnership units outstanding

 

Earnings Conference Call and Webcast

The Company will host a conference call and live audio webcast, both open for the general public to hear, later today at 2:00 p.m. Eastern Time. The number to call for this interactive teleconference is (412) 717-9587. A replay of the call will be available through November 20, 2018, by dialing (412) 317-0088 and entering the replay access code, 10125656.

 

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. is a vertically integrated and self-managed real estate investment trust focused on the acquisition and operation of single and multi-tenant industrial properties located in secondary and select primary markets across the United States. The Company seeks to acquire properties that provide income and growth that enable the Company to leverage its real estate operating expertise to enhance shareholder value through active asset management, prudent property re-positioning and disciplined capital deployment.

 

Forward-Looking Statements

This press release includes “forward-looking statements” that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release, which are not strictly historical statements, including, without limitation, statements regarding management's plans, objectives and strategies, constitute forward-looking statements. Such forward-looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statement, many of which may be beyond our control. 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)

 

   September 30,   December 31, 
   2018   2017 
Assets          
Real estate properties  $347,065   $303,402 
   Less accumulated depreciation   (36,830)   (25,013)
   Real estate properties, net   310,235    278,389 
           
Cash   5,966    12,915 
Cash held in escrow   3,875    5,074 
Restricted cash   1,716    1,174 
Deferred lease intangibles, net   25,057    27,619 
Other assets   6,409    4,782 
Total assets  $353,258   $329,953 
           
Liabilities, Series A Preferred Stock and Equity          
Liabilities:          
Secured debt, net   245,627    195,431 
Mezzanine debt, net       29,364 
Borrowings under line of credit, net   35,133    20,837 
Deferred interest       1,357 
Accounts payable, accrued expenses and other liabilities   17,101    16,015 
Deferred lease intangibles, net   6,439    6,807 
    Total  Liabilities   304,300    269,811 
           
           
Preferred stock, Series A; $0.01 par value, 100,000,000 shares authorized; 2,040,000 shares issued and outstanding (aggregate liquidation preference of $51,000)   48,868    48,931 
           
Equity (Deficit):          
Common stock, $0.01 par value: 900,000,000 shares authorized; 4,821,876 and 3,819,201 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively   49    39 
Additional paid in capital   129,392    123,270 
Accumulated deficit   (134,283)   (119,213)
Total stockholders' equity (deficit)   (4,842)   4,096 
Non-controlling interest   4,932    7,115 
Total equity (deficit)   90    11,211 
Total liabilities, Series A preferred stock and equity  $353,258   $329,953 

 

 
 

 

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, 
   2018   2017   2018   2017 
                 
Rental revenue  $8,742   $4,698   $26,245   $11,994 
Tenant recoveries   2,906    1,744    8,809    4,413 
Other revenue   5    224    526    226 
Total revenues   11,653    6,666    35,580    16,633 
                     
Operating expenses:                    
Property   4,349    2,159    12,589    5,084 
Depreciation and amortization   6,249    3,499    19,235    9,056 
General and administrative   1,394    1,224    4,299    3,159 
Acquisition costs       4        86 
Total operating expenses   11,992    6,886    36,123    17,385 
                     
Operating income/(loss)   (339)   (220)   (543)   (752)
                     
Other expense:                    
Interest expense   (3,575)   (2,619)   (11,777)   (8,362)
Loss on debt extinguishment   (804)       (4,405)    
Total other expense   (4,379)   (2,619)   (16,182)   (8,362)
                     
Net loss  $(4,718)  $(2,839)  $(16,725)  $(9,114)
                     
Net loss attributable to non-controlling interest  $(417)  $(157)  $(1,709)  $(4,831)
                     
Net loss attributable to Plymouth Industrial REIT, Inc.  $(4,301)  $(2,682)  $(15,016)  $(4,283)
                     
Less: Series A preferred stock dividends   956        2,868     
Less: amount allocated to participating securities   48        155     
                     
Net loss attributable to common shareholders  $(5,305)  $(2,682)  $(18,039)  $(4,283)
                     
Net loss per share attributable to Plymouth Industrial REIT, Inc.                    
common stockholders  $(1.22)  $(0.74)  $(4.74)  $(2.61)
                     
Weighted-average common shares outstanding basic and diluted   4,350,687    3,636,023    3,801,900    1,642,394 

 

 
 

 

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 because it helps both investors and management understand the core operations of our properties. We define NOI as total revenue (including rental revenue, tenant reimbursements, management, leasing and development services revenue and other income) less property-level operating expenses including allocated overhead. NOI excludes depreciation and amortization, general and administrative expenses, impairments, gain/loss on sale of real estate, interest expense, and other non-operating items.

EBITDA: We believe that earnings before interest, taxes, depreciation and amortization, or EBITDA, is helpful to investors as a supplemental measure of our operating performance as a real estate company because it is a direct measure of the actual operating results of our industrial properties. We also use this measure in ratios to compare our performance to that of our industry peers. EBITDA as presented herein is equal to EBITDAre as defined by NAREIT.

Funds From Operations attributable to common stockholders (“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. We define FFO, consistent with the National Association of Real Estate Investment Trusts, or NAREIT, definition, as net income, computed in accordance with GAAP, excluding: gains (or losses) from sales of property, depreciation and amortization of real estate assets, impairment losses, losses on extinguishment of debt and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect FFO on the same basis. Other equity REITs may not calculate FFO (in accordance with the NAREIT definition) 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.

Adjusted Funds From Operations attributable to common stockholders (“AFFO”): Adjusted funds from operation, or AFFO, is presented in addition to FFO. AFFO is defined as FFO, excluding certain non-cash operating revenues and expenses, acquisition and transaction related costs for transactions not completed and recurring capitalized expenditures. Recurring capitalized expenditures includes expenditures required to maintain and re-tenant our properties, tenant improvements and leasing commissions. AFFO further adjusts 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, impairment losses, 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 FFO, our reported AFFO may not be comparable to other REITs’ AFFO, should not be used as a measure of our liquidity, and is not indicative of our funds available for our cash needs, including our ability to pay dividends.

 

 
 

 

PLYMOUTH INDUSTRIAL REIT, INC.

SUPPLEMENTAL RECONCILIATION OF NON-GAAP DISCLOSURES

UNAUDITED

(In thousands, except share and per share amounts)

 

   For the Three Months   For the Nine Months 
   Ended September 30,   Ended September 30, 
NOI:  2018   2017   2018   2017 
Net loss  $(4,718)  $(2,839)  $(16,725)  $(9,114)
General and administrative   1,394    1,224    4,299    3,159 
Acquisition costs       4        86 
Depreciation and amortization   6,249    3,499    19,235    9,056 
Interest expense   3,575    2,619    11,777    8,362 
Loss on debt extinguishment   804        4,405     
Other expense (income)   (5)   (224)   (526)   (226)
NOI  $7,299   $4,283   $22,465   $11,323 

 

   For the Three Months   For the Nine Months 
   Ended September 30,   Ended September 30, 
EBITDA:  2018   2017   2018   2017 
Net loss  $(4,718)  $(2,839)  $(16,725)  $(9,114)
Depreciation and amortization   6,249    3,499    19,235    9,056 
Interest expense   3,575    2,619    11,777    8,362 
Loss on debt extinguishment   804        4,405     
EBITDA  $5,910   $3,279   $18,692   $8,304 

 

   For the Three Months   For the Nine Months 
   Ended September 30,   Ended September 30, 
FFO:  2018   2017   2018   2017 
Net loss  $(4,718)  $(2,839)  $(16,725)  $(9,114)
Depreciation and amortization   6,249    3,499    19,235    9,056 
Loss on extinguishment of debt   804        4,405     
Gain on disposition of equity investment       (224)       (224)
FFO:  $2,335   $436   $6,915   $(282)
Preferred stock dividends   (956)       (2,868)    
FFO attributable to common stockholders and unit holders  $1,379   $436   $4,047   $(282)
                     
Weighted average common shares and units outstanding   4,898    4,027    4,371    1,784 
FFO attributable to common stockholders and unit holders per share  $0.28   $0.11   $0.93   $(0.16)

 

   For the Three Months   For the Nine Months 
   Ended September 30,   Ended September 30, 
AFFO:  2018   2017   2018   2017 
FFO attributable to common stockholders and unit holders  $1,379   $436   $4,047   $(282)
Deferred finance fee amortization   338    202    1,192    609 
Non-cash interest expense   (164)   694    642    631 
Acquisition costs       4        86 
Stock compensation   203    207    602    243 
Straight line rent   (107)   (32)   (925)   (108)
Above/below market lease rents   (247)   (89)   (964)   (256)
Recurring capital expenditure (1)   (599)   (63)   (1,941)   (295)
AFFO:  $803   $1,359   $2,653   $628 
                     
Weighted average common shares and units outstanding   4,898    4,027    4,371    1,784 
AFFO per share  $0.16   $0.34   $0.61   $0.35 

 

(1) Excludes non-recurring capital expenditures of $576 and $440 for the three months ended September 30, 2018 and 2017, respectively, and $1,823 and $453 for the nine months ended September 30, 2018 and 2017, respectively.

 

 

 

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Section 3: EX-99 (SUPPLEMENTAL ANALYST PACKAGE -- THIRD QUARTER 2018)

 

 

 

Third Quarter 2018

Supplemental

 

 

 

 

Plymouth Industrial REIT, Inc.
Table of Contents

 

Introduction      
Management, Board of Directors & Investor Contacts     2
Executive Summary     3
Transaction Activity Since IPO     4
Capitalization Analysis     5
Financial Information      
Consolidated Balance Sheets (unaudited)     6
Consolidated Statements of Operations - GAAP (unaudited)     7
Same Store Net Operating Income (NOI)     8
NOI     9
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)     10
Funds from Operations (FFO) & Adjusted Funds from Operations (AFFO)     11
Debt Overview     12
Operational & Portfolio Information      
Property Overview - Square Feet & Occupancy     13
Market Summary     14
Leasing Activity     15
Lease Expiration Schedule     16
Appendix      
Glossary     17

 

Forward looking statements:  This supplemental package contains forward-looking statements within the meaning of the U.S. federal securities laws. We make statements in this supplemental package that are forward-looking statements, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions. Our forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by our forward-looking statements are reasonable, we can give no assurance that our plans, intentions, expectations, strategies or prospects will be attained or achieved and you should not place undue reliance on these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and may be affected by a variety of risks and factors. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict those events or how they may affect us. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Definitions and reconciliations:  For definitions of certain terms used throughout this supplemental, including certain non-GAAP financial measures, see the Glossary on pages 17. For reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures, see pages 9-11.

 

3Q 2018 Supplemental

1 

 

 

Plymouth Industrial REIT, Inc.
Management, Board of Directors & Investor Contacts

 

Corporate      
         
260 Franklin Street, Suite 700    
Boston, Massachusetts 02110    
617.340.3814    
www.plymouthreit.com    
         
Executive and Senior Management    
         
Jeffrey E. Witherell   Pendleton P. White, Jr. Daniel C. Wright  
Chief Executive Officer   President and Chief Investment Executive Vice President  
and Chairman   Officer and Chief Financial Officer  
         
         
Board of Directors      
         
Martin Barber Philip S. Cottone Richard J. DeAgazio  
Independent Director Independent Director Independent Director  
         
David G. Gaw Pendleton P. White, Jr. Jeffery E. Witherell  
Independent Director   President and Chief Investment Chief Executive Officer  
    Officer and Chairman  
         
Transfer Agent      
         
Continental Stock Transfer & Trust Company    
1 State Street, 30th Floor      
New York, New York 10004      
212.509.4000      
         
Investor Relations      
         
Tripp Sullivan        
SCR Partners        
615.760.1104        
TSullivan@scr-ir.com        

 

3Q 2018 Supplemental

2 

 

 

Plymouth Industrial REIT, Inc.
Executive Summary

 

Company overview: Plymouth Industrial REIT, Inc. (NYSE American: PLYM) is a vertically integrated and self-managed real estate investment trust focused on the acquisition and operation of single and multi-tenant industrial properties located in secondary and select primary markets across the United States. The Company seeks to acquire properties that provide income and growth that enable the Company to leverage its real estate operating expertise to enhance shareholder value through active asset management, prudent property re-positioning and disciplined capital deployment.
       
Unaudited    
      As of 09/30/18
Select Portfolio Statistics    
       
Number of Properties   52
Square Footage   9,884,301
Occupancy   94.4%
Weighted Average Lease Term Remaining   3.25
       
Balance Sheet ($ in thousands)    
       
Cash    $               11,557
Gross Assets    $            408,150
Total Debt    $            286,220
Net Debt (Total Debt less Cash)    $            274,663
Net Debt / Gross Assets   67.3%
       
       
  For the three months ended September 30,
Operating results ($ in thousands) 2018 2017
       
Total revenue  $               11,653  $                 6,666
Net operating income  $                 7,299  $                 4,283
       
       
2018 Capital Activity ($ in thousands)    
       
Increased secured line of credit agreement with KeyBank National 3/8/2018  $               45,000
Secured 10 year term loan with Minnesota Insurance 4/30/2018  $               21,500
Secured term loan with KeyBank 5/23/2018  $               35,700
Repaid Torchlight Mezzanine Loan 5/24/2018  $             (35,000)
Secured 10 year term loan with Transamerica Life Insurance Company 7/10/2018  $               78,000
Repaid MWG Portfolio Loan 7/10/2018  $             (79,800)
Issued 1,102,464 common shares @ $15.60 per share 7/23/2018  $               16,253
Paid down KeyBank Term Loan 7/25/2018  $               (4,064)
Issued 160,369 overallotment of common shares @ $15.60 per share 8/17/2018  $                 2,502

 

3Q 2018 Supplemental

3 

 

 

Plymouth Industrial REIT, Inc.
Transaction Activity Since IPO

 

Unaudited ($ in thousands) (at 9/30/2018)        
           
 Acquisitions          
Location Acquisition Date # of Properties Purchase
Price (1)
Square
Footage
Projected
Initial Yield
Cleveland, OH 9/27/2018 1 $       27,000 400,184 7.6%
Elgin/Arlington Heights, IL 4/9/2018 2 15,675 269,999 8.0%
Elgin, IL 12/22/2017 1 4,050 75,000 9.7%
Atlanta. GA 12/21/2017 3 11,425 330,361 8.3%
Multiple 11/30/2017 15 99,750 3,027,987 8.1%
Memphis, TN 9/8/2017 1 3,700 131,904 8.6%
Memphis, TN 8/16/2017 1 7,825 235,000 10.5%
Columbus, OH 8/16/2017 1 3,700 121,440 9.0%
Indianapolis, IN 8/11/2017 2 16,875 606,871 8.5%
Southbend, IN 7/20/2017 5 26,000 667,000 8.5%
           
 Total - Acquisitions   32 $    216,000 5,865,746  
           
Subsequent Acquisitions        
Location Acquisition Date # of Properties Purchase
Price (1)
Square
Footage
Projected
Initial Yield
Cincinnati, OH 10/16/2018 1  $     24,800 1,100,000 8.5%

 

(1) Represents total consideration paid rather than GAAP cost basis.

 

3Q 2018 Supplemental

4 

 

 

Plymouth Industrial REIT, Inc.
Capitalization Analysis

 

Unaudited (in thousands except for per-share data and percentages)
               
        Three Months Ended
        9/30/2018 6/30/2018 3/31/2018 12/31/2017
               
Common Stock Data            
               
  Weighted-Average Shares Outstanding - Basic     4,351 3,400 3,647 3,656
  Weighted-Average Shares Outstanding - Diluted     4,351 3,400 3,647 3,656
  High Closing Price      $                16.41  $                17.91  $                18.52  $                18.98
  Low Closing Price      $                14.63  $                15.09  $                16.25  $                17.22
  Average Closing Price      $                15.72  $                16.99  $                17.46  $                18.15
  Closing Price (as of period end)      $                15.50  $                16.00  $                17.18  $                18.48
  Dividends / Share (annualized) (1)      $                   1.50  $                   1.50  $                   1.50  $                   1.50
  Dividend Yield (annualized) (2)     9.7% 9.4% 8.7% 8.1%
  Common Shares Outstanding (2)     4,822 3,556 3,556 3,819
  Market Value of Common Shares (2)      $              74,739  $              56,896  $              61,092  $              70,579
  Total Market Capitalization (2) (3)      $            360,959  $            333,046  $            314,217  $            321,704

 

Equity Research Coverage (4)            
               
D.A. Davidson & Co.            
Barry Oxford            
646.885.5423            
               
               
Investor Conference Call and Webcast:
The Company will hold a conference call and live audio webcast, both open for the general public to hear, on November 13, 2018 at 2:00 p.m. Eastern Time. The number to call for this interactive teleconference is (412) 717-9587. A replay of the call will be available through August 16, 2018 by dialing (412) 317-0088 and entering the replay access code, 10125656.

 

(1) Based on annualized dividend declared for the quarter.
(2) Based on closing price and ending shares for the last trading day of the quarter.
(3) Market value of shares plus total debt as of quarter end.
(4) 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.

 

3Q 2018 Supplemental

5 

 

 

Plymouth Industrial REIT, Inc.
Consolidated Balance Sheets (unaudited)

 

(in thousands)
           
           
    9/30/2018 6/30/2018 3/31/2018 12/31/2017 (1)
Assets:        
Real estate properties:        
Land  $                  66,563  $                  63,688  $                  59,799  $                  59,797
Building and improvements                    280,502                    257,175                    244,428                    243,605
Less accumulated depreciation                     (36,830)                     (32,809)                     (28,828)                     (25,013)
           
Total real estate properties, net  $                310,235  $                288,054  $                275,399  $                278,389
           
           
Cash and cash equivalents                       11,557                       12,128                       13,097                       19,163
Deferred lease intangibles, net                       25,057                       25,020                       25,297                       27,619
Other assets                         6,409                         7,430                         5,284                         4,782
           
Total assets  $                353,258  $                332,632  $                319,077  $                329,953
           
Liabilities:        
Debt, net  $                280,760  $                270,597  $                247,753  $                245,632
Deferred interest                               -                                  -                            1,575                         1,357
Accounts payable, accrued expenses and other liabilities                       17,101                       16,864                       15,174                       16,015
Deferred lease intangibles, net                         6,439                         6,657                         6,261                         6,807
           
Total liabilities  $                304,300  $                294,118  $                270,763  $                269,811
           
Preferred Stock - Series A  $                  48,868  $                  48,868  $                  48,878  $                  48,931
           
Equity:        
Common stock  $                          49  $                          36  $                          36  $                          39
Additional paid in capital                    129,392                    114,085                    116,183                    123,270
Accumulated deficit                   (134,283)                   (129,982)                   (123,277)                   (119,213)
Total Plymouth Industrial REIT, Inc. stockholders' equity                       (4,842)                     (15,861)                       (7,058)                         4,096
Noncontrolling interest                         4,932                         5,507                         6,494                         7,115
           
Total equity  $                          90  $                (10,354)  $                      (564)  $                  11,211
           
Total liabilities, Series A preferred stock and equity  $                353,258  $                332,632  $                319,077  $                329,953

 

(1) Audited consolidated financial statements and notes for the year ended December 31, 2017 are available within our 2017 Annual Report on Form 10-K.

 

3Q 2018 Supplemental

6 

 

 

Plymouth Industrial REIT, Inc.
Consolidated Statements of Operations - GAAP (unaudited)
 
(in thousands, except per-share amounts) 

 

      Three Months Ended
      9/30/2018   6/30/2018   3/31/2018   12/31/2017 (1)  
Revenues:                  
Rental income    $                     8,742    $                     9,019    $                     8,483    $                     6,379  
Tenant recoveries                           2,906                           2,957                           2,946                           2,031  
Other revenue                                   5                                 71                               450                                   1  
                     
Total revenues    $                   11,653    $                   12,047    $                   11,879    $                     8,411  
                     
Operating expenses:                  
Property related                           4,349                           3,787                           4,452                           3,122  
Depreciation and amortization                           6,249                           6,444                           6,542                           4,943  
General and administrative                           1,394                           1,533                           1,373                           2,031  
Acquisition costs                                    -                                    -                                    -                                 17  
                     
Total operating expenses    $                   11,992    $                   11,764    $                   12,367    $                   10,113  
                     
Operating income    $                      (339)    $                        283    $                      (488)    $                   (1,702)  
                     
Other income (expense):                  
Gain on disposition of equity investment                                    -                                    -                                    -                                   8  
Interest expense                          (3,575)                          (4,216)                          (3,985)                          (3,219)  
Loss on debt extinguishment                             (804)                          (3,601)                                    -                                    -  
                     
Total other income (expense)    $                   (4,379)    $                   (7,817)    $                   (3,985)    $                   (3,211)  
                     
Net loss    $                   (4,718)    $                   (7,534)    $                   (4,473)    $                   (4,913)  
                     
Less: Net income attributable to noncontrolling interest                             (417)                             (829)                             (463)                             (489)  
                     
Net loss attributable to Plymouth Industrial REIT, Inc.    $                   (4,301)    $                   (6,705)    $                   (4,010)    $                   (4,424)  
                     
Less: Series A preferred stock dividends                               956                               956                               956                               723 (2)
Less: Amount allocated to participating securities                                 48                                 46                                 61                               128  
                     
Net income (loss) attributable to common stockholders    $                   (5,305)    $                   (7,707)    $                   (5,027)    $                   (5,275)  
                     
Net income (loss) attributable to common stockholders per share - basic and diluted    $                     (1.22)    $                     (2.27)    $                     (1.38)    $                     (1.44)  
                     
Weighted-average shares outstanding - basic   4,351   3,400   3,647   3,656  
Weighted-average shares outstanding - diluted   4,351   3,400   3,647   3,656  
                     

 

(1) Audited consolidated financial statements and notes for the year ended December 31, 2017 are available within our 2017 Annual Report on Form 10-K.

(2) Preferred stock dividend for the fourth quarter of 2017 of $0.46875, which was pro-rated to $0.3542 per share to reflect the period commencing October 25, 2017 (original issue date) and ending December 31, 2017, was declared in December 2017 and paid in January 2018.

 

3Q 2018 Supplemental

7 

 

 

Plymouth Industrial REIT, Inc.
Same Store Net Operating Income (NOI)

 

Unaudited (in thousands)
                 
Trailing four quarter same store NOI Three Months Ended
    9/30/2018   6/30/2018   3/31/2018   12/31/2017
Same store properties   20   20   20   20
                 
Revenues:              
Rental income  $                3,317    $                     3,423    $                     3,455    $                     3,626
Tenant recoveries                      1,291                           1,425                           1,382                           1,334
Total operating revenues  $                4,608    $                     4,848    $                     4,837    $                     4,960
                 
Property expenses  $                1,707    $                     1,388    $                     1,815    $                     2,031
                 
Same store net operating income  $                2,901    $                     3,460    $                     3,022    $                     2,929

 

Trailing two quarter same store NOI Three Months Ended  
    9/30/2018   6/30/2018  
Same store properties   49   49  
           
Revenues:        
Rental income  $                8,329    $                     8,657  
Tenant recoveries                      2,886                           2,945  
Total operating revenues  $              11,215    $                   11,602  
           
Property expenses  $                4,285    $                     3,707  
           
Same store net operating income  $                6,930    $                     7,895  

 

3Q 2018 Supplemental

8 

 

 

Plymouth Industrial REIT, Inc.
NOI

 

Unaudited (in thousands)
           
    Three Months Ended
    9/30/2018 6/30/2018 3/31/2018 12/31/2017
           
Net loss  $              (4,718)  $                   (7,534)  $                   (4,473)  $                   (4,913)
           
General and administrative                    1,394                         1,533                         1,373                         2,031
Acquisition costs                             -                                  -                                  -                               17
Depreciation and amortization                    6,249                         6,444                         6,542                         4,943
Interest expense                    3,575                         4,216                         3,985                         3,219
Loss on debt extinguishment                        804                         3,601                                  -                                  -
Other income                           (5)                             (71)                           (450)                                (9)
           
Net Operating Income  $                7,299  $                     8,189  $                     6,977  $                     5,288

 

3Q 2018 Supplemental

9 

 

 

Plymouth Industrial REIT, Inc.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)

 

Unaudited (in thousands)
           
    Three Months Ended
    9/30/2018 6/30/2018 3/31/2018 12/31/2017
           
Net loss  $              (4,718)  $                   (7,534)  $                   (4,473)  $                   (4,913)
           
Depreciation and amortization                    6,249                         6,444                         6,542                         4,943
Interest expense                    3,575                         4,216                         3,985                         3,219
Loss on debt extinguishment                        804                         3,601                                  -                                  -
           
EBITDA  $                5,910  $                     6,727  $                     6,054  $                     3,249

 

3Q 2018 Supplemental

10 

 

 

Plymouth Industrial REIT, Inc.
Funds from Operations (FFO) & Adjusted Funds from Operations (AFFO)

 

Unaudited (in thousands, except per-share amounts)
           
    Three Months Ended
    9/30/2018 6/30/2018 3/31/2018 12/31/2017
           
Net loss  $                (4,718)  $                   (7,534)  $                   (4,473)  $                   (4,913)
           
Depreciation and amortization                       6,249                         6,444                         6,542                         4,943
Loss on debt extinguishment                          804                         3,601                                  -                                  -
Gain on disposition of equity investment                               -                                  -                                  -                                (8)
           
FFO  $                  2,335  $                     2,511  $                     2,069  $                           22
           
Preferred stock dividend                        (956)                           (956)                           (956)                           (723)
FFO attributable to common stockholders and unit holders  $                  1,379  $                     1,555  $                     1,113  $                      (701)
           
Deferred finance fee amortization                          338                             466                             387                             259
Non-cash interest expense                        (164)                             560                             247                             900
Acquisition costs                             -                                   -                                   -                                  17
Stock compensation                          203                             200                             200                             192
Straight line rent                        (107)                           (461)                           (357)                             (82)
Above/below market lease rents                        (247)                           (306)                           (411)                           (168)
Recurring capital expenditures (1)                        (599)                           (350)                           (992)                           (227)
AFFO  $                      803  $                     1,664  $                        187  $                        190
           
Weighted average common shares and units outstanding                       4,898                         3,977                         4,232                         4,234
           
FFO attributable to common stockholders and unit holders per share  $                    0.28  $                       0.39  $                       0.26  $                     (0.17)
           
AFFO attributable to common stockholders and unit holders per share  $                    0.16  $                       0.42  $                       0.04  $                       0.04

 

(1) Excludes non-recurring capital expenditures of $576, $874, $373 and $819 for the three months ending September 30, June 30 and, March 31, 2018, and December 31, respectively.

 

3Q 2018 Supplemental

11 

 

 

Plymouth Industrial REIT, Inc.
Debt Overview

 

Unaudited ($ in thousands) at 9/30/2018
 Debt Instrument - Secured Facility Maturity Rate Rate Type Properties Encumbered Balance % of Total Debt
$45.0 million line of credit   August-21  4.86%(1) Floating                                 8  $                   35,550 12.4%
$35.7 million KeyBank Term Loan (3)   August-21 9.07% (2) Floating                                  -  $                   31,170 10.9%
$120.0 million AIG Loan   October-23 4.08% Fixed                               20  $                 120,000 41.9%
$21.5 million Minnesota Life Loan   May-28 3.78% Fixed                                 6  $                   21,500 7.5%
$78.0 million Transamerica Secured Term Loan   August-28 4.35% Fixed                               18  $                   78,000 27.3%
                                        52  $                286,220 100.0%

 

Balance Sheet ($ in thousands) at 9/30/2018      
Cash      $                   11,557
Gross Assets (5)      $                 408,150
Total Debt      $                 286,220
Net Debt      $                 274,663

 

(1) Interest rate paid for the month of September 30, 2018. Borrowings under the Line of Credit Agreement bear interest at either (1) the base rate (determined from the highest of (a) KeyBank’s prime rate, (b) the federal funds rate plus 0.50% and (c) the one month LIBOR rate plus 1.0%) or (2) LIBOR, plus, in either case, a spread between 250 and 300 basis points depending on our total leverage ratio.
(2) Interest rate for the month of September 30, 2018. Borrowings under the KeyBank Term Loan bear interest at either (1) LIBOR plus 7% or (2) KeyBank’s base rate plus 6%.
(3) The KeyBank Term Loan is secured by Plymouth Industrial REIT's equity interest within the Plymouth 20 and each of its property owning subsidiaries.
(5) The carrying amount of total assets plus accumulated depreciation and amortization, as reported in the Company's consolidated financial statements.

 

3Q 2018 Supplemental

12 

 

 

Plymouth Industrial REIT, Inc.
Property Overview - Square Feet & Occupancy
 
Unaudited ($ in thousands) at 9/30/18

 

         
 Property Market Rentable
Square Feet
Leased
Square Feet
Occupancy
  32 Dart Road Atlanta 194,800 194,800 100.0%
  1665 Dogwood Drive SW Atlanta 198,000 198,000 100.0%
  1715 Dogwood Drive Atlanta 100,000 100,000 100.0%
  11236 Harland Drive Atlanta 32,361 32,361 100.0%
Subtotal - Atlanta   525,161 525,161 100.0%
  11351 W 183rd Street Chicago 18,768 18,768 100.0%
  11601 Central Avenue Chicago 260,000 260,000 100.0%
  13040 South Pulaski Avenue Chicago 395,466 395,466 100.0%
  1355 Holmes Road Chicago 82,456 82,456 100.0%
  13970 West Laurel Drive Chicago 70,196 70,196 100.0%
  1455-1645 Greenleaf Avenue Chicago 150,000 150,000 100.0%
  1600 Fleetwood Drive Chicago 247,000 247,000 100.0%
  1750 South Lincoln Drive Chicago 499,200 499,200 100.0%
  1796 Sherwin Avenue Chicago 98,879 98,879 100.0%
  1875 Holmes Road Chicago 134,415 134,415 100.0%
  189 Seegers Road Chicago 25,000 25,000 100.0%
  2401 Commerce Drive Chicago 78,574 78,574 100.0%
  28160 North Keith Drive Chicago 77,924 77,924 100.0%
  3 West College Drive Chicago 33,263 33,263 100.0%
  3841-3865 Swanson Court Chicago 99,625 99,625 100.0%
  3940 Stern Avenue Chicago 146,798 146,798 100.0%
  440 South McLean Chicago 74,613 74,613 100.0%
  6000 West 73rd Street Chicago 148,091 148,091 100.0%
  6510 West 73rd Street Chicago 306,552 306,552 100.0%
  6558 West 73rd Street Chicago 301,000 301,000 100.0%
  6751 Sayre Avenue Chicago 242,690 242,690 100.0%
  7200 Mason Ave Chicago 207,345 207,345 100.0%
  5110 South 6th Street Milwaukee 58,500 58,500 100.0%
  525 West Marquette Avenue Milwaukee 112,144 60,000 53.5%
Subtotal - Chicago   3,868,499 3,816,355 98.7%
  Mosteller Distribution Center Cincinnati 358,386 358,386 100.0%
  4115 Thunderbird Lane Cincinnati 70,000 70,000 100.0%
Subtotal - Cincinnati   428,386 428,386 100.0%
  1755 Enterprise Parkway Cleveland 255,570 255,570 100.0%
  30339 Diamond Parkway Cleveland 400,184 400,184 100.0%
Subtotal - Cleveland   655,754 655,754 100.0%
  3500 Southwest Boulevard Columbus 527,127 527,127 100.0%
  3100 Creekside Parkway Columbus 340,000 - 0.0%
  8288 Green Meadows Dr. Columbus 300,000 300,000 100.0%
  8273 Green Meadows Dr. Columbus 77,271 77,271 100.0%
  7001 American Pkwy Columbus 54,100 54,100 100.0%
  2120 - 2138 New World Drive Columbus 121,200 121,200 100.0%
Subtotal - Columbus   1,419,698 1,079,698 76.1%
  3035 North Shadeland Ave Indianapolis 562,497 537,497 95.6%
  3169 North Shadeland Ave Indianapolis 44,374 41,960 94.6%
  5861 W Cleveland Road South Bend 62,550 62,550 100.0%
  West Brick Road South Bend 101,450 101,450 100.0%
  4491 N Mayflower Road South Bend 77,000 77,000 100.0%
  5855 West Carbonmill Road South Bend 198,000 198,000 100.0%
  4955 Ameritech Drive South Bend 228,000 228,000 100.0%
Subtotal - Indianapolis/South Bend   1,273,871 1,246,457 97.8%
  6005, 6045 & 6075 Shelby Dr. Memphis 202,303 194,398 96.1%
  210 American Dr. Jackson 638,400 638,400 100.0%
  3635 Knight Road Memphis 131,904 131,904 100.0%
  Business Park Drive Memphis 235,006 134,457 57.2%
Subtotal - Memphis/Jackson   1,207,613 1,099,159 91.0%
  7585 Empire Drive Florence, KY 148,415 148,415 100.0%
  56 Milliken Road Portland, ME 200,625 200,625 100.0%
  4 East Stow Road Marlton, NJ 156,279 134,959 86.4%
Subtotal - Others   505,319 483,999 95.8%
 Total - All Properties   9,884,301 9,334,969 94.4%

 

3Q 2018 Supplemental

13 

 

 

Plymouth Industrial REIT, Inc.
Market Summary
 
Unaudited (SF and $ in thousands) (at 9/30/2018)

 

Geography  State  Properties  Total Acquisition Cost (1)  Gross Real Estate Assets (2)  % Gross Real Estate Assets
 Atlanta   GA 4  $                                  17,045  $                15,765 4.5%
 Chicago   IL, WI 24                                    154,140                  143,266 41.3%
 Cincinnati   OH 2                                      14,900                    13,349 3.8%
 Cleveland   OH 2                                      42,000                    39,658 11.4%
 Columbus   OH 6                                      50,982                    48,653 14.0%
 Indianapolis/South Bend   IN 7                                      43,450                    38,489 11.1%
 Memphis/Jackson   TN 4                                      31,608                    26,438 7.6%
 Other   Various 3                                      24,000                    21,120 6.1%
 Total   52  $                                378,125  $              346,738 100%

 

 

 

(1) Total acquisition cost prior to allocations per US GAAP.
(2) The gross book value of real estate assets as of September 30, 2018 excluding $327 in leasehold improvements related to our Corporate office. Gross book value of real estate assets excludes depreciation and the allocation of the acquisition cost towards intangible asset and liabilities required by US GAAP.

 

3Q 2018 Supplemental

14 

 

 

Plymouth Industrial REIT, Inc.
Leasing Activity
 
 

 

Year Type Square Footage Percent  Expiring Rent New Rent % Change Tenant Improvements $/SF/YR  Lease Commissions $/SF/YR
                 
2017 Renewals 234,679 84.1%  $        4.25  $         4.51 6.2%  $              0.07  $                 0.13
  New Leases 44,268 15.9%  $        2.16  $         3.00 38.7%  $              0.41  $                 0.27
  Total 278,947 100%  $        3.92  $         4.27 9.1%  $              0.13  $                 0.15
                 
Q1 2018 Renewals 146,798 47.5%  $        4.25  $         4.30 1.2%  $                   -     $                 0.11
  New Leases 162,119 52.5%  $        3.17  $         3.99 26.0%  $              0.09  $                 0.04
  Total 308,917 100%  $        3.68  $         4.07 10.7%  $              0.05  $                 0.07
                 
Q2 2018 Renewals 146,874 18.1%  $        4.83  $         5.00 3.6%  $              0.14  $                 0.13
  New Leases 664,828 81.9%  $        2.80  $         2.99 6.8%  $              0.42  $                 0.25
  Total 811,702 100%  $        3.17  $         3.36 6.0%  $              0.37  $                 0.23
                 
Q3 2018 Renewals 101,287 46.9%  $      11.75  $         9.94 -15.4%  $              0.76  $                 0.26
  New Leases 114,580 53.1%  $        2.83  $         4.15 46.9%  $              0.63  $                 0.27
  Total 215,867 100%  $        7.01  $         6.87 -2.1%  $              0.69  $                 0.26
                 
2018 Renewals 394,959 29.6%  $        6.39  $         6.01 -6.0%  $              0.25  $                 0.15
  New Leases 941,527 70.4%  $        2.87  $         3.31 15.3%  $              0.39  $                 0.22
  Total 1,336,486 100%  $        3.91  $         4.10 5.0%  $              0.35  $                 0.20
                 
Total Renewals 629,638 39.0%  $        5.59  $         5.45 -2.5%  $              0.18  $                 0.14
  New Leases 985,795 61.0%  $        2.84  $         3.29 15.8%  $              0.39  $                 0.22
  Total 1,615,433 100%  $        3.91  $         4.13 5.6%  $              0.31  $                 0.19

 

3Q 2018 Supplemental

15 

 

 

Plymouth Industrial REIT, Inc.
Lease Expiration Schedule
 
Unaudited ($ in thousands) (at 9/30/2018)

 

Year Square
Footage
 Annualized
Base Rent (ABR) (1)
% of ABR Expiring (2)
Available 549,331 $                 - -
2018 - - 0.0%
2019 1,767,092 6,165 17.2%
2020 1,829,575 6,517 18.1%
2021 2,227,054 8,443 23.5%
2022 920,793 4,344 12.1%
Thereafter 2,590,456 10,473 29.1%
Total 9,884,301 $      35,942 100.0%

 

 

 

(1) Annualized base rent is calculated as monthly contracted base rent per the terms of such lease, as of September 30, 2018, multiplied by 12. Excludes billboard and antenna revenue and rent abatements.
(2) Calculated as annualized base rent set forth in this table divided by total annualized base rent for the Company Portfolio as of September 30, 2018.

 

3Q 2018 Supplemental

16 

 

 

Plymouth Industrial REIT, Inc.
Glossary

 

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 because it helps both investors and management understand the core operations of our properties. We define NOI as total revenue (including rental revenue, tenant reimbursements, management, leasing and development services revenue and other income) less property-level operating expenses including allocated overhead. NOI excludes depreciation and amortization, general and administrative expenses, impairments, gain/loss on sale of real estate, interest expense, and other non-operating items.
EBITDA: We believe that earnings before interest, taxes, depreciation and amortization, or EBITDA, is helpful to investors as a supplemental measure of our operating performance as a real estate company because it is a direct measure of the actual operating results of our industrial properties. We also use this measure in ratios to compare our performance to that of our industry peers. EBITDA as presented herein is equal to EBITDAre as defined by NAREIT.
Funds From Operations attributable to common stockholders (“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. We define FFO, consistent with the National Association of Real Estate Investment Trusts, or NAREIT, definition, as net income, computed in accordance with GAAP, excluding gains (or losses) from sales of property, depreciation and amortization of real estate assets, impairment losses, loss on extinguishment of debt and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect FFO on the same basis. Other equity REITs may not calculate FFO (in accordance with the NAREIT definition) 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.
Adjusted Funds From Operations attributable to common stockholders (“AFFO”):  Adjusted funds from operation, or AFFO, is presented in addition to FFO. AFFO is defined as FFO, excluding certain non-cash operating revenues and expenses, acquisition and transaction related costs for transactions not completed and recurring capitalized expenditures. Recurring capitalized expenditures includes expenditures required to maintain and re-tenant our properties, tenant improvements and leasing commissions. AFFO further adjusts 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, impairment losses, 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 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.
Other Definitions:
GAAP: U.S generally accepted accounting principles.
Gross Assets: the carrying amount of total assets plus accumulated depreciation and amortization, as reported in the Company’s consolidated financial statements. For gross assets as of September 30, 2018 the calculation is as follows:

 

  9/30/2018
Total Assets $353,258
Add back depreciation expense      36,830
Add back intangible asset amortization      18,062
Gross assets $408,150

 
Non-Recurring Capital Expenditures: Non-recurring capital expenditures include capital expenditures of long lived improvements required to upgrade/replace existing systems or items that previously did not exist.
Occupancy: We define occupany as the percentage of total leasable square footage in which either the sooner of lease term commencement or revenue recognition in accordance to GAAP has commenced as of the close of the reporting period.
Recurring Capital Expenditures: Recurring capitalized expenditures includes capital expenditures required to maintain and re-tenant our properties, tenant improvements and leasing commissions.
Same Store Portfolio: Our Same Property Portfolio is a subset of our consolidated portfolio and includes properties that were wholly-owned by us for the entire period presented. The trailing 4 quarters same store portfolio includes properties owned as of July 1, 2017, and still owned by us as of September 30, 2018. Therefore, we excluded from our Same Store Portfolio any properties that were acquired or sold during the period from July 1, 2017 through September 30, 2018. The trailing 2 quarters same store  portfolio includes properties owned as of April 1, 2018, and still owned by us as of September 30, 2018. Therefore, we excluded from our Same Store Portfolio any properties that were acquired or sold during the period from April 1, 2018 through September 30, 2018. The Company's computation of same store NOI may not be comparable to other REITs.
Weighted average lease term remaining: The average contractual lease term remaining as of the close of the reporting period (in years) weighted by square footage.

 

 

 

 

 

3Q 2018 Supplemental

17 

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