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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

August 8, 2019

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 August 8, 2019, Plymouth Industrial REIT, Inc. (the “Company”) issued a press release (the “Earnings Release”) announcing, among other things, earnings for the quarter ended June 30, 2019. 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 August 8, 2019, the Company disclosed a supplemental analyst package in connection with its earnings conference call for the quarter ended June 30, 2019 which took place on August 8, 2019. 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 August 8, 2019

 

  99.2   Supplemental Analyst Package – Second Quarter 2019

 

 

 

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: August 8, 2019       By:  

/s/ Jeffrey E. Witherell

            Jeffrey E. Witherell
            Chief Executive Officer

 

(Back To Top)

Section 2: EX-99 (PRESS RELEASE)

 Exhibit 99.1

 

Contact:

Tripp Sullivan

SCR Partners

(615) 760-1104

[email protected]

 

PLYMOUTH INDUSTRIAL REIT REPORTS SECOND QUARTER RESULTS


Adjusts 2019 Guidance for Recent Acquisitions and Capital Markets Activity

 

BOSTON, August 8, 2019 – Plymouth Industrial REIT, Inc. (NYSE America: PLYM) (the “Company”) today announced its consolidated financial results for the second quarter ended June 30, 2019 and other recent developments.

 

Second Quarter and Subsequent Highlights

·         Reported results for the second quarter of 2019 reflect a net loss attributable to common stockholders of $6.0 million, or $(0.88) per weighted average common share; net operating income (“NOI”) of $11.0 million; Funds from Operations attributable to common stockholders and unit holders (“FFO”) of $0.50 per weighted average common share and units; and Adjusted FFO (“AFFO”) of $0.43 per weighted average common share and units. FFO and AFFO per weighted average common share and units reflect approximately 3.85 million common shares issued during the first half of 2019 through a follow-on common stock offering and the Company’s at-the-market equity (“ATM”) program.

·         For the second quarter of 2019, 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”).

·         Capital markets activity significantly improved the Company’s balance sheet with a total of 3.6 million shares issued during the second quarter, raising net proceeds of $58.3 million, and a new $100 million secured credit facility completed in August 2019 with expanded capacity, lower borrowing costs and greater flexibility.

·         During the second quarter of 2019 and to date in the third quarter of 2019, the Company acquired, or agreed to acquire, 16 properties totaling 2.8 million square feet in one-off and portfolio transactions representing total consideration of approximately $113 million.

·         To reflect the impact from a follow-on common stock offering and recent acquisition activity noted above, adjusted the 2019 full year expected results to a net loss of $(1.33) to $(1.30) per share; Nareit FFO attributable to common stockholders and unit holders of $2.10 to $2.13 per diluted share; and AFFO of $1.73 to $1.76 per diluted share.

 

Jeff Witherell, Chairman and Chief Executive Officer of Plymouth Industrial REIT, noted, “Our second quarter results were in line with our short-term expectations and our outlook for the year. We executed on the main priorities of leasing the portfolio, sourcing new acquisition opportunities and improving our capital structure. The increase in portfolio occupancy is expected to continue during the second half of the year as we maintain leasing momentum on renewals and current vacancy. The pace of acquisitions has accelerated to date in the third quarter, and we continue to work on new opportunities from our pipeline. This activity is possible due to the improvements we made to our balance sheet with a successful equity offering and ATM activity during the second quarter along with a significantly expanded credit facility with lower borrowing costs.”

 

Financial Results for the Second Quarter of 2019

The completion of a follow-on common stock offering in July 2018, a follow-on common stock offering in May 2019 and the strategic investment by Madison International Realty in December 2018 provided the Company with a meaningfully different capital structure for the second quarter of 2019 compared to the second quarter of 2018. The Company believes the use of the respective 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 June 30, 2019 was $6.0 million, or $(0.88) per weighted average common share outstanding, compared with net loss attributable to common stockholders of $7.7 million, or $(2.27) per weighted average common share, for the same period in 2018. The decrease in net loss was primarily due to an increase in net operating income partially offset by redemption value per the terms of the Series B Preferred Stock agreement. Weighted average common shares outstanding for the second quarters ended June 30, 2019 and 2018 were 6.8 million and 3.4 million, respectively. The year-over-year increase in weighted average common shares was related to the Company’s issuance of 425,000 shares of common stock on its ATM in the first and second quarters of 2019 and a follow-on offering of 3,425,000 shares of common stock in the second quarter of 2019.

 

Consolidated total revenues for the quarter ended June 30, 2019 were $17.0 million, compared with $12.0 million for the same period in 2018.

 

NOI for the quarter ended June 30, 2019 was $11.0 million compared with $8.2 million for the same period in 2018.

 

EBITDA for the quarter ended June 30, 2019 was $9.2 million compared with $6.7 million for the same period in 2018.

 

FFO attributable to common stockholders and unit holders for the quarter ended June 30, 2019 was $4.1 million, or $0.50 per weighted average common share and unit, compared with $1.6 million, or $0.39 per weighted average common share and unit for the same period in 2018, primarily as a result of the contribution from acquisitions. Weighted average common shares and units outstanding for the second quarters ended June 30, 2019 and 2018 were 8.0 million and 4.0 million, respectively. The year-over-year increase in weighted average common shares and units was related to the Company’s activity on its ATM in the first and second quarters of 2019 and the follow-on offering of common stock in the second quarter of 2019.

 

AFFO for the quarter ended June 30, 2019 was $3.4 million, or $0.43 per weighted average common share and unit, compared with $1.7 million, or $0.42 per weighted average common share and unit, for the same period in 2018, primarily driven by the change in FFO attributable to common stockholders and unit holders.

 

See “Non-GAAP Financial Measures” for complete definitions of NOI, EBITDA, FFO and AFFO and the financial tables accompanying this press release for reconciliations of net income to NOI, EBITDA, FFO and AFFO.

 

Capital Markets Activity

During April 2019, the Company issued approximately 147,000 common shares through its ATM program at an average price of $16.79 per share, raising approximately $2.4 million in net proceeds.

 

The Company also issued an aggregate of 3,425,000 shares of common stock in May 2019 in a follow-on offering at a public offering price of $17.50 per share, resulting in net proceeds to the Company of approximately $55.9 million. Proceeds from the offering were used to repay outstanding borrowings on the Company’s secured credit facility and fund acquisition activity during the second quarter and to date in the third quarter.

 

On August 7, 2019, the Company closed on a new $100 million secured credit facility led by KeyBank National Association, Barclays and Capital One. The new facility, which matures in August 2023, provides incremental borrowing capability along with a $100 million accordion feature and a 50-basis-point reduction in borrowing costs with interest at LIBOR plus a margin between 200 to 250 basis points, depending on the Company’s leverage.

 

Investment Activity

As of June 30, 2019, the Company had real estate investments comprised of 57 industrial properties totaling 12.5 million square feet with occupancy of 96.1%. During the second quarter of 2019 and to date in the third quarter of 2019, the Company acquired, or agreed to acquire, 16 properties totaling 2.8 million square feet in one-off and portfolio transactions representing total consideration of approximately $113 million. The acquisitions are expected to be funded with proceeds from the Company’s capital markets activity, borrowings on its secured credit facility and assumed financing.

 

On June 10, 2019, the Company completed the acquisition of a 485,000-square-foot, two-tenant Class B industrial building in Indianapolis, Indiana that is 100% leased for $17.1 million in cash. The acquisition is projected to provide an initial yield of 7.7%.

 

On July 29, 2019, the Company acquired a 129,000-square-foot multi-tenant Class B industrial building in St. Louis, Missouri for $5.4 million in cash. The acquisition is projected to provide an initial yield of 8.6%.

 

 

The Company signed a definitive agreement to acquire two industrial buildings in Memphis, Tennessee totaling 566,281 square feet for total consideration of $22.05 million. The acquisition is projected to provide an initial yield of 8.1% and is expected to close by September 30, 2019, subject to customary closing conditions.

 

The Company signed a definitive agreement to acquire a six-building light industrial and flex portfolio in Cincinnati and Columbus, Ohio totaling 591,695 square feet for total consideration of $36.2 million. The acquisition is projected to provide an initial yield of 8.4% and is expected to close by mid-August 2019, subject to customary closing conditions.

 

The Company is finalizing an agreement to acquire a seven-building Class B industrial portfolio in Chicago, Illinois totaling 1,071,129 square feet for $32.25 million in cash. The acquisition is projected to provide an initial yield of 8.25% and is expected to close by September 1, 2019, subject to customary closing conditions.

 

Leasing Activity

Leases commencing during the second quarter of 2019 totaled an aggregate of 714,000 square feet, 573,000 of which were leases of at least six months. The leases greater than six months included 253,000 square feet of renewal leases and 320,000 square feet of new leases, and the Company will experience an 8.3% increase in rental rates on a cash basis from these leases.

 

Quarterly Distributions to Stockholders

On May 31, 2019, the Company announced the Board of Directors declared a regular quarterly cash dividend of $0.46875 per share for the Preferred Stock for the second quarter of 2019. The dividend was paid on July 1, 2019 to stockholders of record on June 14, 2019.

 

On June 14, 2019, the Company announced the Board of Directors declared a regular quarterly cash dividend of $0.375 per share for the Company’s common stock for the second quarter of 2019. The dividend was payable on July 31, 2019, to stockholders of record on June 28, 2019.

 

Guidance for 2019

The Company adjusted its guidance for the year ending December 31, 2019 to reflect the impact from an equity offering and ATM activity during the quarter and recent acquisition activity. The Company now expects it results for 2019 to be in a range of a net loss of $(1.33) to $(1.30) per weighted average common share and operating unit outstanding, Nareit FFO attributable to common stockholders and unit holders of $2.10 to $2.13 per weighted average common share and unit and AFFO of $1.73 to $1.76 per weighted average common share and unit.

See “Non-GAAP Financial Measures” for a complete definition of FFO and AFFO and the financial table accompanying this press release for reconciliations of net income to FFO and AFFO.

 

A reconciliation of projected net loss per weighted average common share and unit outstanding to projected Nareit FFO attributable to common stockholders and unit holders per weighted average common share and unit and AFFO per weighted average common share and unit is provided as follows:

   Full Year 
   2019 Range 
   Low   High 
Net loss  $(1.33)  $(1.30)
Add: Real estate depreciation & amortization   4.18    4.18 
Less: Preferred stock dividends   (0.75)   (0.75)
FFO attributable to common stockholders and unit holders   2.10    2.13 
Deferred finance fee amortization   0.13    0.13 
Non-cash interest and dividends   (0.01)   (0.01)
Stock compensation   0.14    0.14 
Change in fair value of warrant derivative   0.01    0.02 
Straight-line rent   (0.06)   (0.07)
Above/below market lease rents   (0.14)   (0.16)
Recurring capital expenditures   (0.44)   (0.42)
AFFO attributable to common stockholders and unit holders  $1.73   $1.76 

 

The Company’s guidance for net loss, FFO attributable to common stockholders and unit holders and AFFO attributable to common stockholders and unit holders for 2019 is based on the following assumptions. Other than noted below, this guidance excludes the potential impact of additional acquisitions or dispositions, if completed:

Total revenues of $71.6 million to $72.0 million
Net operating income of $46.85 million to $47.15 million
EBITDA of $39.4 million to $39.8 million
General and administrative expenses of $7.1 to $7.5 million, including non-cash expenses of $1.2 million
Same-store portfolio occupancy of 95% to 96%
Recurring capital expenditures of $3.5 million to $3.7 million
8.4 million weighted average common shares and operating partnership units outstanding for the year (9.8 million common shares and operating partnership units currently outstanding)
The completion of approximately $90.5 million in acquisitions currently under agreement between mid-August 2019 and September 30, 2019

 

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 1:00 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 15, 2019, by dialing (412) 317-0088 and entering the replay access code, 10133773.

 

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)

   June 30,   December 31, 
   2019   2018 
Assets        
Real estate properties  $474,734   $452,610 
   Less accumulated depreciation   (51,676)   (41,279)
   Real estate properties, net   423,058    411,331 
           
Cash   13,044    5,394 
Cash held in escrow   8,775    7,808 
Restricted cash   2,375    1,759 
Deferred lease intangibles, net   34,931    37,940 
Other assets   10,525    5,931 
Total assets  $492,708   $470,163 
           
Liabilities, preferred stock and equity (deficit)          
Liabilities:          
Secured debt, net   287,990    288,993 
Borrowings under line of credit, net       28,187 
Accounts payable, accrued expenses and other liabilities   26,577    21,996 
Deferred lease intangibles, net   6,393    7,067 
Total  liabilities   320,960    346,243 
           
           
Preferred stock, par value $0.01 per share, 100,000,000 shares authorized,          
Series A; 2,040,000 shares issued and outstanding at June 30, 2019 and December 31, 2018 (aggregate liquidation preference of $51,000 at June 30, 2019 and December 31, 2018)   48,868    48,868 
Series B; 4,411,764 shares issued and outstanding at June 30, 2019 and December 31, 2018, (aggregate liquidation preference of $97,183 and $96,689 at June 30, 2019 and December 31, 2018, respectively)   75,993    72,192 
           
Equity (deficit):          
Common stock, $0.01 par value: 900,000,000 shares authorized; 8,754,782 and 4,821,876 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively   88    49 
           
Additional paid in capital   177,557    126,327 
Accumulated deficit   (143,406)   (137,983)
Total stockholders' equity (deficit)   34,239    (11,607)
Non-controlling interest   12,648    14,467 
Total equity   46,887    2,860 
Total liabilities, preferred stock and equity  $492,708   $470,163 

 

 

 

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, 
   2019   2018   2019   2018 
                 
Rental revenue  $17,022   $11,976   $33,684   $23,406 
Other revenue       71        521 
Total revenues   17,022    12,047    33,684    23,927 
                     
Operating expenses:                    
Property   6,034    3,787    12,296    8,240 
Depreciation and amortization   8,476    6,444    16,908    12,986 
General and administrative   1,691    1,533    3,337    2,953 
Total operating expenses   16,201    11,764    32,541    24,179 
                     
Other expense:                    
Interest expense   (3,576)   (4,216)   (7,418)   (8,202)
Loss on extinguishment of debt       (3,601)       (3,601)
Change in fair value of warrant derivative   (102)       (181)   48 
Total other expense   (3,678)   (7,817)   (7,599)   (11,755)
                     
Net loss  $(2,857)  $(7,534)  $(6,456)  $(12,007)
                     
Less: loss attributable to non-controlling interest  $(380)  $(829)  $(1,033)  $(1,292)
                     
Net loss attributable to Plymouth Industrial REIT, Inc.  $(2,477)  $(6,705)  $(5,423)  $(10,715)
                     
Less: Preferred stock dividends   1,566    956    3,132    1,912 
Less: Series B preferred stock accretion to redemption value   1,901        3,801     
Less: amount allocated to participating securities   58    46    115    107 
Net loss attributable to common stockholders  $(6,002)  $(7,707)  $(12,471)  $(12,734)
                     
Net loss per share attributable to common stockholders  $(0.88)  $(2.27)  $(2.15)  $(3.61)
                     
Weighted-average common shares outstanding basic and diluted   6,835,878    3,400,012    5,787,600    3,522,959 

 

 

 

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.

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 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. FFO attributable to common stockholders and unit holders represents FFO reduced by dividends paid (or declared) to holders of our preferred stock.

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 a 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. This restated definition does not give reference to the add back of loss on extinguishment of debt. Commencing on January 1, 2019, we will adopt the restated definition of NAREIT FFO on a prospective basis and will exclude the add back of loss on debt extinguishment.

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 Six Months 
   Ended June 30,   Ended June 30, 
NOI:  2019   2018   2019   2018 
Net loss  $(2,857)  $(7,534)  $(6,456)  $(12,007)
General and administrative   1,691    1,533    3,337    2,953 
Depreciation and amortization   8,476    6,444    16,908    12,986 
Interest expense   3,576    4,216    7,418    8,202 
Loss on extinguishment of debt       3,601        3,601 
Change in fair value of warrant derivative   102        181    (48)
Other expense (income)       (71)       (521)
NOI  $10,988   $8,189   $21,388   $15,166 
                     
                     
   For the Three Months   For the Six Months 
   Ended June 30,   Ended June 30, 
EBITDA:  2019   2018   2019   2018 
Net loss  $(2,857)  $(7,534)  $(6,456)  $(12,007)
Depreciation and amortization   8,476    6,444    16,908    12,986 
Interest expense   3,576    4,216    7,418    8,202 
Loss on extinguishment of debt       3,601        3,601 
EBITDA  $9,195   $6,727   $17,870   $12,782 
                     
                     
   For the Three Months   For the Six Months 
   Ended June 30,   Ended June 30, 
FFO:  2019   2018   2019   2018 
Net loss  $(2,857)  $(7,534)  $(6,456)  $(12,007)
Depreciation and amortization   8,476    6,444    16,908    12,986 
Loss on extinguishment of debt       3,601        3,601 
FFO:  $5,619   $2,511   $10,452   $4,580 
Preferred stock dividends   (1,566)   (956)   (3,132)   (1,912)
FFO attributable to common stockholders and unit holders  $4,053   $1,555   $7,320   $2,668 
                     
Weighted average common shares and units outstanding   8,037    3,977    6,983    4,104 
FFO attributable to common stockholders and unit holders per share  $0.50   $0.39   $1.05   $0.65 
                     
                     
   For the Three Months   For the Six Months 
   Ended June 30,   Ended June 30, 
AFFO:   2019    2018    2019    2018 
FFO attributable to common stockholders and unit holders  $4,053   $1,555   $7,320   $2,668 
Deferred finance fee amortization   273    466    508    854 
Non-cash interest expense   (62)   560    (93)   806 
Stock compensation   305    200    593    400 
Change in fair value of warrant derivative   102        181     
Straight line rent   (223)   (461)   (481)   (818)
Above/below market lease rents   (344)   (306)   (685)   (717)
Recurring capital expenditure (1)   (687)   (350)   (1,246)   (1,342)
AFFO:  $3,417   $1,664   $6,097   $1,851 
                     
Weighted average common shares and units outstanding   8,037    3,977    6,983    4,104 
AFFO per share  $0.43   $0.42   $0.87   $0.45 
                     

 

(1) Excludes non-recurring capital expenditures of $635 and $874 for the three months ended June 30, 2019 and 2018, respectively, and $1,688 and $1,247 for the six months ended June 30, 2019 and 2018, respectively.

(Back To Top)

Section 3: EX-99.2 (SECOND QUARTER 2019 SUPPLEMENTAL)

Exhibit 99.2

 

 

Second Quarter 2019

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
2019 Guidance             6
Financial Information                  
Consolidated Balance Sheets (unaudited)             7
Consolidated Statements of Operations - GAAP (unaudited)           8
Same Store Net Operating Income (NOI)             9
NOI             10
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)         11
Funds from Operations (FFO) & Adjusted Funds from Operations (AFFO)         12
Debt Overview             13
Operational & Portfolio Information                
Property Overview - Square Feet & Occupancy             14
Market Summary             16
Leasing Activity             17
Lease Expiration Schedule             18
Appendix                    
Glossary             19

 

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 page 19. For reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures, see pages 10-12.

2Q 2019 Supplemental

 

 

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        
[email protected]        

 

2Q 2019 Supplemental

 

 

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 June 30, 2019
Select Portfolio Statistics          
Number of Properties         57
Square Footage         12,535,937
Occupancy         96.1%
Weighted Average Lease Term Remaining - years         3.5
           
Balance Sheet ($ in thousands)          
Cash          $            24,194
Gross Assets          $          572,173
Total Debt          $          292,919
Net Debt (Total Debt less Cash)          $          268,725
Net Debt / Gross Assets         47.0%

 

  Three months ended June 30,   Year ended December 31,
Operating results ($ in thousands) 2019 2018   2018 2017
Total Revenue  $            17,022  $            12,047    $            49,217  $            24,818
Net Operating Income  $            10,988  $              8,189    $            31,234  $            16,610
           
           
2018 & YTD 2019 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 1,262,833 common shares @ $15.60 per share       Q3 2018  $            19,700
Paid down KeyBank Term Loan       Q3 2018  $             (4,530)
Issued 626,011 of operating units as part of the Fisher Park acquisition       10/15/2018  $            10,642
Assumption of mortgage debt as part of the Fisher Park acquisition       10/15/2018  $            13,907
Issued 4,411,764 shares of Series B Preferred Stock       12/14/2018  $            75,000
Repaid balance of KeyBank Term Loan        12/14/2018  $           (31,170)
Secured KeyBank Bridge Loan - Jacksonville acquisition       12/14/2018  $            63,115
Partial pay down Transamerica Term Loan - disposition of 525 Marquette       12/19/2018  $             (3,380)
Secured 7 year term loan with Allianz Life Insurance Company        3/21/2019  $            63,115
Repaid KeyBank Bridge Loan       3/21/2019  $           (63,115)
Issued 278,302 shares of common shares @ average of $16.63 per share       Q1 2019  $              4,628
Issued 147,017 shares of common shares @ average of $16.79 per share       Q2 2019  $              2,469
Issued 3,425,000 common shares @ $17.50 per share       Q2 2019  $            59,938

 

2Q 2019 Supplemental

 

Plymouth Industrial REIT, Inc.
Transaction Activity Since IPO
 
Unaudited ($ in thousands) (at 6/30/2019)

 

Acquisitions          
Location Acquisition Date # of Properties Purchase Price (1) Square Footage Projected Initial Yield
Indianapolis, IN 6/10/2019 1  $                 17,100              484,879 7.7%
Chicago, IL 1/5/2019 1                       5,425                73,785 8.9%
Jacksonville, FL 12/14/2018 3                     97,100           1,133,516 8.4%
Cincinnati, OH 10/15/2018 1                     24,800           1,100,000 8.5%
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   38  $              360,425          8,657,926  

 

Subsequent Acquisitions        
Location Acquisition Date # of Properties Purchase Price (1) Square Footage Projected Initial Yield
St. Louis, MO 7/30/2019 1  $                   5,400 129,000 8.6%
Multiple, OH 8/15/2019E (2) 6  $                 36,200 591,695 8.4%
Chicago, IL 9/1/19E (3) 7  $                 32,250 1,071,129 8.25%
Memphis, TN 9/30/19E (4) 1  $                 22,050 566,000 8.1%
           
 Total - Subsequent Acquisitions 15  $                 95,900          2,357,824  

 

Dispositions          
Location Disposition Date # of Properties Sale Price Square Footage Yield
Milwaukee, WI 12/19/2018 1  $                   5,300 112,144 6.5%

 

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

(2) On July 8, 2019, the Company entered into a purchase and sale agreement to acquire a six-property portfolio in Columbus and Cincinnati, OH. The acquisition is expected to close in mid-August, subject to customary closing conditions.

(3) The Company is finalzing an agreement to acquire a seven-building portfolio in Chicago, IL. The acquisition is expected to close by September 1, 2019, subject to customary closing conditions.

(4) On July 18, 2019, the Company entered into a purchase and sale agreement to acquire a single property in Memphis, TN. The acquisition is expected to close by September 30, 2019, subject to customary closing conditions.

 

 

2Q 2019 Supplemental

 

Plymouth Industrial REIT, Inc.
Capitalization Analysis
   
Unaudited (in thousands except for per-share data and percentages)  

 

        Three Months Ended
        6/30/2019 3/31/2019 12/31/2018 9/30/2018 6/30/2018
                 
Common Stock Data              
  Weighted-Average Shares Outstanding - Basic   6,836 4,728 4,696 4,351 3,400
  Weighted-Average Shares Outstanding - Diluted   6,836 4,728 4,696 4,351 3,400
  High Closing Price      $                19.48  $                16.98  $                15.59  $                16.41  $                17.91
  Low Closing Price      $                16.55  $                13.16  $                11.45  $                14.63  $                15.09
  Average Closing Price      $                17.77  $                15.58  $                13.25  $                15.72  $                16.99
  Closing Price (as of period end)      $                18.94  $                16.82  $                12.61  $                15.50  $                16.00
  Dividends / Share (annualized) (1)      $                   1.50  $                   1.50  $                   1.50  $                   1.50  $                   1.50
  Dividend Yield (annualized) (2)     7.9% 8.9% 11.9% 9.7% 9.4%
  Common Shares Outstanding (2)     8,755 5,129 4,822 4,822 3,556
  Market Value of Common Shares (2)      $            165,816  $              86,270  $              60,804  $              74,739  $              56,896
  Total Market Capitalization (2) (3)      $            458,735  $            412,396  $            382,462  $            360,959  $            333,046
                 
Equity Research Coverage (4)              

 

D.A. Davidson & Co. National Securities Corp   Sandler O'Neill & Partners   Wedbush Securities
Barry Oxford Guarav Mehta   Alexander Goldfarb   Henry Coffey
646.885.5423 212.417.8008   212.466.7937   212.833.1382

 

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 August 8, 2019 at 1:00 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 15, 2019 by dialing (412) 317-0088 and entering the replay access code, 10133773.

 

(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.

 

2Q 2019 Supplemental

 

Plymouth Industrial REIT, Inc.
2019 Guidance
       
Unaudited (in thousands, except per-share amounts)    

 

    Full Year 2019 Range
    Low High
       
Net loss  $                     (1.33)  $                     (1.30)
       
Depreciation and amortization                           4.18                           4.18
Preferred stock dividend                          (0.75)                          (0.75)
FFO attributable to common stockholders and unit holders  $                       2.10  $                       2.13
       
Deferred finance fee amortization                           0.13                           0.13
Non-cash interest & dividends                          (0.01)                          (0.01)
Stock compensation                           0.14                           0.14
Change in fair value of warrant derivative                           0.01                           0.02
Straight line rent                          (0.06)                          (0.07)
Above/below market lease rents                          (0.14)                          (0.16)
Recurring capital expenditures                          (0.44)                          (0.42)
AFFO  attributable to common stockholders and unit holders  $                       1.73  $                       1.76
       
Weighted average common shares and units outstanding                         8,400                         8,400
       
2019 Guidance Assumptions Low High
       
Total Revenue  $                   71,600  $                   72,000
NOI  $                   46,850  $                   47,150
EBITDA  $                   39,400  $                   39,800
G&A  $                     7,500  $                     7,100
Recurring CAPEX  $                     3,700  $                     3,500
Same store occupancy 95% 96%

 

Assumes the completion of approximately $90.5 million in acquisitions currently under agreement between mid-August 2019 and September 30, 2019 .

 

2Q 2019 Supplemental

 

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

 

           
  6/30/2019 3/31/19 12/31/18 (1) 9/30/2018 6/30/2018
Assets:          
Real estate properties:          
Land  $                   96,139  $                   93,495  $                   92,628  $                   66,563  $                   63,688
Building and improvements                     378,595                     365,438                     359,982                     280,502                     257,175
Less accumulated depreciation                     (51,676)                     (46,438)                     (41,279)                     (36,830)                     (32,809)
           
Total real estate properties, net  $                 423,058  $                 412,495  $                 411,331  $                 310,235  $                 288,054
           
           
Cash, cash held in escrow and restricted cash                       24,194                       14,121                       14,961                       11,557                       12,128
Deferred lease intangibles, net                       34,931                       35,339                       37,940                       25,057                       25,020
Other assets                       10,525                       11,551                          5,931                          6,409                          7,430
           
Total assets  $                 492,708  $                 473,506  $                 470,163  $                 353,258  $                 332,632
           
Liabilities:          
Debt, net  $                 287,990  $                 320,799  $                 317,180  $                 280,760  $                 270,597
Accounts payable, accrued expenses and other liabilities                       26,577                       24,870                       21,996                       17,101                       16,864
Deferred lease intangibles, net                          6,393                          6,595                          7,067                          6,439                          6,657
           
Total liabilities  $                 320,960  $                 352,264  $                 346,243  $                 304,300  $                 294,118
           
Preferred Stock - Series A  $                   48,868  $                   48,868  $                   48,868  $                   48,868  $                   48,868
Preferred Stock - Series B  $                   75,993  $                   74,092  $                   72,192  $                              -  $                              -
           
Equity:          
Common stock  $                           88  $                           51  $                           49  $                           49  $                           36
Additional paid in capital                     177,557                     125,739                     126,327                     129,392                     114,085
Accumulated deficit                   (143,406)                   (140,929)                   (137,983)                   (134,283)                   (129,982)
Total stockholders' equity                       34,239                     (15,139)                     (11,607)                       (4,842)                     (15,861)
Non-controlling interest                       12,648                       13,421                       14,467                          4,932                          5,507
           
Total equity (deficit)  $                   46,887  $                   (1,718)  $                     2,860  $                           90  $                 (10,354)
           
Total liabilities, preferred stock and equity (deficit)  $                 492,708  $                 473,506  $                 470,163  $                 353,258  $                 332,632
           

 

(1) Audited consolidated financial statements and notes for the year ended December 31, 2018 is available within our 2018 Annual Report on Form 10-K.

 

2Q 2019 Supplemental

 

 

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

 

      Three Months Ended
      6/30/2019 3/31/19 12/31/18 (1) 9/30/2018 6/30/2018  
Revenues:              
Rental revenue    $                    12,906  $                    12,729  $                    10,387  $                      8,742  $                      9,019  
Tenant recoveries                            4,116                          3,933                          3,242                          2,906                          2,957  
Other revenue                                     -                                   -                                   8                                   5                                71  
                 
Total revenues    $                    17,022  $                    16,662  $                    13,637  $                    11,653  $                    12,047  
                 
Operating expenses:              
Property                            6,034                          6,262                          4,860                          4,349                          3,787  
Depreciation and amortization                            8,476                          8,432                          7,553                          6,249                          6,444  
General and administrative                            1,691                          1,646                          1,733                          1,394                          1,533  
                 
Total operating expenses    $                    16,201  $                    16,340  $                    14,146  $                    11,992  $                    11,764  
                 
                 
Other income (expense):              
Gain on sale of real estate                                     -                                   -                          1,004                                   -                                   -  
Interest expense                          (3,576)                        (3,842)                        (3,957)                        (3,575)                        (4,216)  
Loss on extinguishment of debt                                     -                                   -                            (988)                            (804)                        (3,601)  
Change in fair value of warrant derivative                              (102)                              (79)                                   -                                   -                                   -  
                 
Total other income (expense)    $                    (3,678)  $                    (3,921)  $                    (3,941)  $                    (4,379)  $                    (7,817)  
                 
Net loss    $                    (2,857)  $                    (3,599)  $                    (4,450)  $                    (4,718)  $                    (7,534)  
                 
Less: Loss attributable to noncontrolling interest                              (380)                            (653)                            (750)                            (417)                            (829)  
                 
Net loss attributable to Plymouth Industrial REIT, Inc.    $                    (2,477)  $                    (2,946)  $                    (3,700)  $                    (4,301)  $                    (6,705)  
                 
Less: Preferred stock dividends                            1,566                          1,566                          1,072                              956                              956  
Less: Series B preferred stock accretion to redemption value                            1,901                          1,900                              359                                   -                                   -  
Less: Amount allocated to participating securities                                  58                                57                                46                                48                                46  
                 
Net loss attributable to common stockholders    $                    (6,002)  $                    (6,469)  $                    (5,177)  $                    (5,305)  $                    (7,707)  
                 
Net loss per share attributable to common stockholders  $                      (0.88)  $                      (1.37)  $                      (1.10)  $                      (1.22)  $                      (2.27)  
                 
Weighted-average common shares outstanding basic & diluted   6,836 4,728 4,696 4,351 3,400  
                 

 

(1) Audited consolidated financial statements and notes for the year ended December 31, 2018 is available within our 2018 Annual Report on Form 10-K.

 

2Q 2019 Supplemental

 

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

 

Trailing five quarter same store NOI Three Months Ended
    6/30/2019 3/31/2019 12/31/2018 9/30/2018 6/30/2018
Same store properties 48 48 48 48 48
             
Revenues:          
Rental income  $                 8,750  $                 8,589  $                      8,286  $                      8,255  $                      8,579
Tenant recoveries                       3,026                     2,836                          2,878                          2,880                          2,935
Total operating revenues  $              11,776  $              11,425  $                    11,164  $                    11,135  $                    11,514
             
Property expenses  $                 4,636  $                 4,664  $                      4,342  $                      4,165  $                      3,591
             
Same store net operating income  $                 7,140  $                 6,761  $                      6,822  $                      6,970  $                      7,923

 

Trailing two quarter same store NOI Three Months Ended
    6/30/2019 3/31/2019
Same store properties 55 55
       
Revenues:    
Rental income  $              12,705  $              12,613
Tenant recoveries                     4,065                     3,906
Total operating revenues  $              16,770  $              16,519
       
Property expenses  $                 5,997  $                 6,210
       
Same store net operating income  $              10,773  $              10,309

 

2Q 2019 Supplemental

 

Plymouth Industrial REIT, Inc.
NOI
 
Unaudited (in thousands)

 

    Three Months Ended
    6/30/2019 3/31/2019 12/31/2018 9/30/2018 6/30/2018
             
Net loss  $              (2,857)  $              (3,599)  $                    (4,450)  $                    (4,718)  $                    (7,534)
             
General and administrative                     1,691                     1,646                          1,733                          1,394                          1,533
Depreciation and amortization                     8,476                     8,432                          7,553                          6,249                          6,444
Interest expense                     3,576                     3,842                          3,957                          3,575                          4,216
Loss on extinguishment of debt                              -                              -                              988                              804                          3,601
Change in fair value of warrant derivative                         102                           79                                   -                                   -                                   -
Gain on sale of real estate                              -                              -                        (1,004)                                   -                                   -
Other expense (income)                              -                              -                                (8)                                (5)                              (71)
             
Net Operating Income  $              10,988  $              10,400  $                      8,769  $                      7,299  $                      8,189

 

2Q 2019 Supplemental

10 

 

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

 

    Three Months Ended
    6/30/2019 3/31/2019 12/31/2018 9/30/2018 6/30/2018
             
Net loss  $              (2,857)  $              (3,599)  $                    (4,450)  $                    (4,718)  $                    (7,534)
             
Depreciation and amortization                     8,476                     8,432                          7,553                          6,249                          6,444
Interest expense                     3,576                     3,842                          3,957                          3,575                          4,216
Gain on sale of real estate                              -                              -                        (1,004)                                   -                                   -
Loss on extinguishment of debt                              -                              -                              988                              804                          3,601
             
EBITDA  $                 9,195  $                 8,675  $                      7,044  $                      5,910  $                      6,727

 

2Q 2019 Supplemental

11 

 

Plymouth Industrial REIT, Inc.
Funds from Operations (FFO) & Adjusted Funds from Operations (AFFO)
 
Unaudited (in thousands, except per-share amounts)

 

    Three Months Ended
    6/30/2019 3/31/2019 12/31/2018 9/30/2018 6/30/2018
             
Net loss  $                 (2,857)  $                 (3,599)  $                    (4,450)  $                    (4,718)  $                    (7,534)
             
Depreciation and amortization                       8,476                       8,432                          7,553                          6,249                          6,444
Loss on extinguishment of debt                                -                                -                              988                              804                          3,601
Gain on sale of real estate                                -                                -                        (1,004)                                   -                                   -
             
FFO  $                   5,619  $                   4,833  $                      3,087  $                      2,335  $                      2,511
             
Preferred stock dividends                     (1,566)                     (1,566)                        (1,072)                            (956)                            (956)
FFO attributable to common stockholders and unit holders  $                   4,053  $                   3,267  $                      2,015  $                      1,379  $                      1,555
             
Deferred finance fee amortization                           273                           235                              290                              338                              466
Non-cash interest expense                           (62)                           (31)                                14                            (164)                              560
Stock compensation                           305                           288                              203                              203                              200
Change in fair value of warrant derivative                           102                             79                                 -                                    -                                    -   
Straight line rent                         (223)                         (258)                              (71)                            (107)                            (461)
Above/below market lease rents                         (344)                         (341)                            (340)                            (247)                            (306)
Recurring capital expenditures (1)                         (687)                         (559)                            (767)                            (598)                            (350)
AFFO  $                   3,417  $                   2,680  $                      1,344  $                          804  $                      1,664
             
Weighted average common shares and units outstanding                       8,037                       5,917                          5,774                          4,898                          3,977
             
FFO attributable to common stockholders and unit holders per share  $                     0.50  $                     0.55  $                        0.35  $                        0.28  $                        0.39
             
AFFO attributable to common stockholders and unit holders per share  $                     0.43  $                     0.45  $                        0.23  $                        0.16  $                        0.42

 

(1) Excludes non-recurring capital expenditures of $635, $1,053, $777, $576 and $874 for the three months ending June 30, March 31, 2019, December 31, September 30 and June 30, 2018, respectively.

 

 

2Q 2019 Supplemental

12 

 

Plymouth Industrial REIT, Inc.
Debt Overview
   
Unaudited ($ in thousands) at 6/30/2019  

 

Debt Instrument - Secured Facility Maturity Rate Rate Type Properties Encumbered Balance % of Total Debt
$45.0 million line of credit (3)   August-20  5.4%(1) Floating                                   9  $                             -    0.0%
$120.0 million AIG Loan   October-23 4.08% Fixed                                20  $                 120,000 41.0%
$21.5 million Minnesota Life Loan   May-28 3.78% Fixed                                   7  $                    21,435 7.3%
$78.0 million Transamerica Loan   August-28 4.35% Fixed                                17  $                    74,620 25.5%
$13.9 million Fisher Park Mortgage   January-27 5.23% Fixed                                   1  $                    13,749 4.7%
$63.1 million Allianz Loan   April-26 4.07% Fixed                                   3  $                    63,115 21.5%
                                         57  $                 292,919 100.0%

 

Fixed Debt ($ in thousands) at 6/30/2019      
 Total fixed debt      $                 292,919
Weighted average interest rate of fixed debt     4.18%     
         
         
 Balance Sheet ($ in thousands) at 6/30/2019      
 Cash      $                    24,194
 Gross Assets (2)      $                 572,173
 Total Debt      $                 292,919
 Net Debt      $                 268,725

 

(1) Interest rate applicable at June 30, 2019. 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) The carrying amount of total assets plus accumulated depreciation and amortization, as reported in the Company's consolidated financial statements.

(3) On August 7, 2019, the Company entered in an amended and restated credit agreement to our Line of Credit Agreement with KeyBank National Association to increase our revolving credit facility to $100,000 with the ability to increase up to $200,000, subject to certain conditions. The amended and restated credit agreement extends the term of the Line of Credit Agreement to August 2023 with an optional extension through August 2024. The amended and restated 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 200 and 250 basis points depending on our total leverage ratio.

 

2Q 2019 Supplemental

13 

 

Plymouth Industrial REIT, Inc.
Property Overview - Square Feet & Occupancy
 
Unaudited ($ in thousands) at 6/30/19

 

         
 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%
  144 Tower Road Chicago                       73,785                       71,709 97.2%
  5110 South 6th Street Milwaukee                       58,500                       58,500 100.0%
Subtotal - Chicago                   3,830,140                 3,828,064 99.9%
  Mosteller Distribution Center Cincinnati                     358,386                     358,386 100.0%
  4115 Thunderbird Lane Cincinnati                       70,000                       70,000 100.0%
  Fisher Industrial Park Cincinnati                 1,071,600                 1,003,084 93.6%
Subtotal - Cincinnati                   1,499,986                 1,431,470 95.4%
  1755 Enterprise Parkway Cleveland                     255,570                     235,370 92.1%
  30339 Diamond Parkway Cleveland                     400,184                     400,184 100.0%
Subtotal - Cleveland                       655,754                     635,554 96.9%
           

 

2Q 2019 Supplemental

14 

 

Plymouth Industrial REIT, Inc.
Property Overview - Square Feet & Occupancy
 
Unaudited ($ in thousands) at 6/30/19

 

         
 Property  Market  Rentable Square Feet  Leased Square Feet  Occupancy

 

  3500 Southwest Boulevard Columbus                     527,127                     527,127 100.0%
  3100 Creekside Parkway Columbus                     340,000                     141,000 41.5%
  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                 1,220,698 86.0%
  3035 North Shadeland Ave Indianapolis                     562,497                     510,454 90.7%
  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                     228,001 100.0%
  4430 Sam Jones Expressway Indianapolis                     484,879                     484,879 100.0%
Subtotal - Indianapolis/South Bend                   1,758,750                 1,704,294 96.9%
  Center Point Business Park Jacksonville                     537,800                     502,000 93.3%
  Liberty Business Park Jacksonville                     426,916                     426,918 100.0%
  Salisbury Business Park Jacksonville                     168,800                     168,800 100.0%
Subtotal - Jacksonville                   1,133,516                 1,097,718 96.8%
  6005, 6045 & 6075 Shelby Dr. Memphis                     202,303                     202,303 100.0%
  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                     130,837 55.7%
Subtotal - Memphis/Jackson                   1,207,613                 1,103,444 91.4%
  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                     156,280 100.0%
Subtotal - Others                       505,319                     505,320 100.0%
 Total - All Properties                 12,535,937               12,051,723 96.1%

 

2Q 2019 Supplemental

15 

 

Plymouth Industrial REIT, Inc.
Market Summary
 
Unaudited (SF and $ in thousands) (at 6/30/2019)

 

Geography  State  Properties  Total Acquisition Cost (1)  Gross Real Estate Assets (2)  % Gross Real Estate Assets
 Atlanta   GA 4  $                                   17,045  $                 15,891 3.4%
 Chicago   IL, WI 24                                     155,335                   145,364 30.6%
 Cincinnati   OH 3                                        39,700                     35,675 7.5%
 Cleveland   OH 2                                        42,000                     40,220 8.5%
 Columbus   OH 6                                        50,982                     48,930 10.3%
 Indianapolis/South Bend   IN 8                                        60,550                     53,766 11.3%
 Jacksonville   FL 3                                        97,100                     86,398 18.2%
 Memphis/Jackson   TN 4                                        31,608                     26,872 5.7%
 Other   Various 3                                        24,000                     21,122 4.5%
 Total   57  $                                 518,320  $              474,238 100%

 

 

 

(1) Represents total direct consideration paid prior to the allocations per US GAAP.

(2) The gross book value of real estate assets as of June 30, 2019 excluding $496 in leasehold improvements and assets related to Corporate. 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.

 

2Q 2019 Supplemental

16 

 

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
                 
2018 Renewals 482,067 33.2%  $         5.84  $          5.57 -4.6%  $               0.24  $                  0.13
  New Leases 969,207 66.8%  $         2.85  $          3.31 16.4%  $               0.39  $                  0.21
  Total 1,451,274 100%  $         3.84  $          4.06 5.7%  $               0.34  $                  0.18
                 
Q1 2019 Renewals 545,684 98.6%  $         3.18  $          3.63 14.2%  $               0.16  $                  0.11
  New Leases 8,000 1.4%  $         6.30  $          6.50 3.2%  $                    -     $                  0.40
  Total 553,684 100%  $         3.22  $          3.67 14.0%  $               0.16  $                  0.11
                 
Q2 2019 Renewals 252,826 44.1%  $         4.87  $          4.95 1.6%  $               0.30  $                  0.11
  New Leases 320,232 55.9%  $         2.64  $          3.11 17.8%  $               0.27  $                  0.17
  Total 573,058 100%  $         3.62  $          3.92 8.3%  $               0.28  $                  0.14
                 

 

2Q 2019 Supplemental

17 

 

Plymouth Industrial REIT, Inc.
Lease Expiration Schedule
 
Unaudited ($ in thousands) (at 6/30/2019)

 

Year Square Footage  Annualized Base Rent (ABR) (1) % of Annual Base Rent Expiring (2)
Available                                    484,214  $                                              -    -
2019                                    955,745                                            4,024 8.2%
2020                                 1,287,452                                            6,285 12.8%
2021                                 2,939,139                                         12,421 25.3%
2022                                 1,433,719                                            6,762 13.8%
2023                                 1,130,618                                            4,152 8.5%
Thereafter                                 4,305,050                                         15,468 31.4%
Total                              12,535,937  $                                     49,112 100%

 

 

 

(1) Annualized base rent is calculated as monthly contracted base rent per the terms of such lease, as of June 30, 2019, multiplied by 12. Excludes 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 June 30, 2019.

 

2Q 2019 Supplemental

18 

 

 

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.

 

Funds From Operations attributable to common stockholders and unit holders (“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 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. FFO attributable to common stockholders and unit holders represents FFO reduced by dividends paid (or declared) to holders of our preferred stock.

 

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 a 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. This restated definition does not give reference to the add back of loss on extinguishment of debt. Commencing on January 1, 2019, we adopted the restated definition of NAREIT FFO on a prospective basis and will exclude the add back of loss on debt extinguishment.

 

Adjusted Funds From Operations attributable to common stockholders and unit holders (“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 June 30, 2019 the calculation is as follows:

 

  6/30/2019
Total Assets $492,708
Add back accumulated depreciation 51,676
Add back intangible asset amortization 27,789
Gross assets $572,173

 

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 occupancy 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 5 quarters same store portfolio includes properties owned as of April 1, 2018, and still owned by us as of June 30, 2019. Therefore, we excluded from our Same Store Portfolio any properties that were acquired or sold during the period from April 1, 2018 through June 30, 2019. The trailing 2 quarters same store portfolio includes properties owned as of January 1, 2019, and still owned by us as of June 30, 2019. Therefore, we excluded from our Same Store Portfolio any properties that were acquired or sold during the period from January 1, 2019 through June 30, 2019. 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.

 

2Q 2019 Supplemental

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