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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 7, 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.   ¨

Securities registered pursuant to Section 12(b) of the Act:
 
Title of Each Class Trading Symbol Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share PLYM NYSE American
7.50% Series A Cumulative Redeemable Preferred Stock, PLYM-PrA NYSE American
par value $0.01 per share    
 

 

 
Item 2.02Results of Operations and Financial Condition

On November 7, 2019, Plymouth Industrial REIT, Inc. (the “Company”) issued a press release (the “Earnings Release”) announcing, among other things, earnings for the quarter ended September 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 November 7, 2019, the Company disclosed a supplemental analyst package in connection with its earnings conference call for the quarter ended September 30, 2019 which took place on November 7, 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 November 7, 2019

 

  99.2   Supplemental Analyst Package – Third 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: November 7, 2019       By:  

/s/ Jeffrey E. Witherell

            Jeffrey E. Witherell
            Chief Executive Officer

 

(Back To Top)

Section 2: EX-99.1 (EARNINGS RELEASE)

Exhibit 99.1

 

Contact:

Tripp Sullivan

SCR Partners

(615) 760-1104

[email protected]

 

PLYMOUTH INDUSTRIAL REIT REPORTS THIRD QUARTER RESULTS

 

BOSTON, November 7, 2019 – Plymouth Industrial REIT, Inc. (NYSE American: PLYM) (the “Company”) today announced its consolidated financial results for the third quarter ended September 30, 2019 and other recent developments.

 

Third Quarter and Subsequent Highlights

·Reported results for the third quarter of 2019 reflect a net loss attributable to common stockholders of $6.2 million, or $(0.68) per weighted average common share; net operating income (“NOI”) of $12.2 million; Funds from Operations attributable to common stockholders and unit holders (“FFO”) of $0.47 per weighted average common share and units; and Adjusted FFO (“AFFO”) of $0.40 per weighted average common share and units. FFO and AFFO per weighted average common share and units reflect approximately 8.5 million additional common shares issued during 2019 through follow-on common stock offerings and the Company’s at-the-market equity (“ATM”) program.
·For the third 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”).
·During the third quarter of 2019 and to date in the fourth quarter of 2019, the Company acquired 16 properties totaling 2.7 million square feet in one-off and portfolio transactions representing total consideration of approximately $115.3 million.
·Capital markets activity significantly improved the Company’s balance sheet with a total of 4.6 million shares issued during the third quarter, raising net proceeds of $80.5 million.
·To reflect the impact from recent capital markets and acquisition activity noted above, adjusted 2019 full year expected results to a net loss of $(1.22) to $(1.21) per share; Nareit FFO attributable to common stockholders and unit holders of $1.95 to $1.96 per diluted share; and AFFO of $1.62 to $1.63 per diluted share.

 

Jeff Witherell, Chairman and Chief Executive Officer of Plymouth Industrial REIT, noted, “The third quarter continued to demonstrate our ability to source and close attractive acquisitions that strengthen our portfolio. Our capital markets activity in the quarter has provided us with enhanced liquidity, and we expect to complete the acquisition of a number of properties by year-end. Our entire asset management team has done a great job on the existing portfolio with generating NOI growth and strong leasing spreads during the quarter that reflect the value we have created in our properties.”

 

Financial Results for the Third Quarter of 2019

The completion of follow-on common stock offerings since the third quarter of 2018 and the strategic investment by Madison International Realty in December 2018 provided the Company with a meaningfully different capital structure for the third quarter of 2019 compared to the third 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 September 30, 2019 was $6.2 million, or $(0.68) per weighted average common share outstanding, compared with net loss attributable to common stockholders of $5.3 million, or $(1.22) per weighted average common share, for the same period in 2018. The increase 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 third quarters ended September 30, 2019 and 2018 were 9.1 million and 4.4 million, respectively. The year-over-year increase in weighted average common shares reflects the impact of the issuance of 8.5 million shares in 2019.

 

 

 

 

Consolidated total revenues for the quarter ended September 30, 2019 were $19.1 million, compared with $11.7 million for the same period in 2018.

 

NOI for the quarter ended September 30, 2019 was $12.2 million compared with $7.3 million for the same period in 2018.

 

EBITDAre for the quarter ended September 30, 2019 was $10.1 million compared with $5.9 million for the same period in 2018.

 

FFO attributable to common stockholders and unit holders for the quarter ended September 30, 2019 was $4.9 million, or $0.47 per weighted average common share and unit, compared with $1.4 million, or $0.28 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 third quarters ended September 30, 2019 and 2018 were 10.3 million and 4.9 million, respectively.

 

AFFO for the quarter ended September 30, 2019 was $4.1 million, or $0.40 per weighted average common share and unit, compared with $804,000, or $0.16 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, EBITDAre, FFO and AFFO and the financial tables accompanying this press release for reconciliations of net income to NOI, EBITDAre, FFO and AFFO.

 

Capital Markets Activity

On August 7, 2019, the Company closed on a new $100 million secured credit facility led by KeyBank National Association, Barclays, JPMorgan 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.

 

During the third quarter of 2019, the Company issued approximately 1.2 million common shares through its ATM program at an average price of $18.61 per share, raising approximately $21.8 million in net proceeds.

 

In September 2019, the Company issued an aggregate of 3,450,000 shares of common stock in a follow-on offering at a public offering price of $18.00 per share, resulting in net proceeds to the Company of approximately $58.8 million. Proceeds from the offering were used to repay outstanding borrowings on the Company’s secured credit facility and fund acquisition activity during the third quarter and to date in the fourth quarter.

 

Investment Activity

As of September 30, 2019, the Company had real estate investments comprised of 72 industrial properties totaling 14.9 million square feet with occupancy of 96.8%. During the third quarter of 2019 and to date in the fourth quarter, the Company acquired 16 properties totaling 2.7 million square feet in one-off and portfolio transactions representing total consideration of approximately $115.3 million. The acquisitions were funded with proceeds from the Company’s capital markets activity, borrowings on its secured credit facility and assumed financing.

 

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

 

On August 29, 2019, the Company acquired an industrial property 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%.

 

On August 29, 2019, the Company acquired a seven-property Class B industrial portfolio in Chicago, Illinois totaling 1,071,129 square feet for $32.25 million. The acquisition is projected to provide an initial yield of 8.25%.

 

On August 30, 2019, the Company acquired a six-property 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%.

 

On October 30, 2019, the Company acquired a multi-tenant industrial property in the Atlanta suburb of Peachtree City, Georgia totaling 295,693 square feet for $19.4 million. The acquisition is projected to provide an initial yield of 8.4%.

 

 

 

 

Leasing Activity

Leases commencing during the third quarter of 2019 totaled an aggregate of 580,000 square feet, 576,000 of which were leases of at least six months. Of this amount, 258,000 square feet was related to a new lease at 3100 Creekside in Columbus, Ohio, which filled the Company’s largest vacancy in the portfolio. The leases greater than six months included 294,000 square feet of renewal leases and 282,000 square feet of new leases, and the Company will experience a 16.5% increase in rental rates on a cash basis from these leases.

 

Quarterly Distributions to Stockholders

On August 30, 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 third quarter of 2019. The dividend was paid on September 30, 2019 to stockholders of record on September 13, 2019.

 

On September 13, 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 third quarter of 2019. The dividend was payable on October 31, 2019, to stockholders of record on September 30, 2019.

 

Guidance for 2019

The Company adjusted its guidance for the year ending December 31, 2019 to reflect the impact from the September 2019 equity offering, 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 $(1.22) to $(1.21) per weighted average common share and operating unit outstanding, Nareit FFO attributable to common stockholders and unit holders of $1.95 to $1.96 per weighted average common share and unit and AFFO of $1.62 to $1.63 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  $(1.22)  $(1.21)
Add: Real estate depreciation & amortization   3.82    3.82 
Less: Preferred stock dividends   (0.65)   (0.65)
FFO attributable to common stockholders and unit holders   1.95    1.96 
Amortization of debt related costs   0.11    0.11 
Non-cash interest and dividends   0.02    0.02 
Stock compensation   0.12    0.12 
Change in fair value of warrant derivative   0.02    0.02 
Straight-line rent   (0.11)   (0.12)
Above/below market lease rents   (0.14)   (0.15)
Recurring capital expenditures   (0.35)   (0.33)
AFFO attributable to common stockholders and unit holders  $1.62   $1.63 

 

 

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 $73.1 million to $74.4 million
Net operating income of $47.25 million to $47.55 million
EBITDAre of $39.9 million to $40.2 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 $3.2 million to $3.4 million
9.66 million weighted average common shares and operating partnership units outstanding for the year (14.45 million common shares and operating partnership units currently outstanding)
The completion of approximately $82 million in acquisitions currently under agreement before December 31, 2019. These pending acquisitions are subject to customary closing conditions. As such, there can be no assurance that we will complete these acquisitions.

 

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 November 14, 2019, by dialing (412) 317-0088 and entering the replay access code, 10136429.

 

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, 
   2019   2018 
Assets          
Real estate properties  $565,394   $452,610 
   Less accumulated depreciation   (57,331)   (41,279)
   Real estate properties, net   508,063    411,331 
           
Cash   25,720    5,394 
Cash held in escrow   8,571    7,808 
Restricted cash   2,510    1,759 
Deferred lease intangibles, net   45,768    37,940 
Other assets   11,214    5,931 
Total assets  $601,846   $470,163 
           
Liabilities, preferred stock and equity (deficit)          
Liabilities:          
Secured debt, net   319,448    288,993 
Borrowings under line of credit, net       28,187 
Accounts payable, accrued expenses and other liabilities   32,222    21,996 
Deferred lease intangibles, net   7,579    7,067 
Total  liabilities   359,249    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 September 30, 2019 and December 31, 2018 (aggregate liquidation preference of $51,000 at September 30, 2019 and December 31, 2018)   48,868    48,868 
Series B; 4,411,764 shares issued and outstanding at September 30, 2019 and December 31, 2018, (aggregate liquidation preference of $97,183 and $96,689 at September 30, 2019 and December 31, 2018, respectively)   77,893    72,192 
           
Equity:          
Common stock, $0.01 par value: 900,000,000 shares authorized; 13,406,302 and 4,821,876 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively   134    49 
Additional paid in capital   249,827    126,327 
Accumulated deficit   (146,072)   (137,983)
Total stockholders' equity (deficit)   103,889    (11,607)
Non-controlling interest   11,947    14,467 
Total equity   115,836    2,860 
Total liabilities, preferred stock and equity  $601,846   $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 Nine Months 
   Ended September 30,   Ended September 30, 
   2019   2018   2019   2018 
                 
Rental revenue  $19,123   $11,648   $52,807   $35,054 
Other revenue       5        526 
Total revenues   19,123    11,653    52,807    35,580 
                     
Operating expenses:                    
Property   6,920    4,349    19,216    12,589 
Depreciation and amortization   9,399    6,249    26,307    19,235 
General and administrative   2,135    1,394    5,472    4,347 
Total operating expenses   18,454    11,992    50,995    36,171 
                     
Other expense:                    
Interest expense   (3,643)   (3,575)   (11,061)   (11,777)
Loss on extinguishment of debt       (804)       (4,405)
Change in fair value of warrant derivative           (181)   48 
Total other expense   (3,643)   (4,379)   (11,242)   (16,134)
                     
Net loss  $(2,974)  $(4,718)  $(9,430)  $(16,725)
                     
Less: loss attributable to non-controlling interest  $(308)  $(417)  $(1,341)  $(1,709)
                     
Net loss attributable to Plymouth Industrial REIT, Inc.  $(2,666)  $(4,301)  $(8,089)  $(15,016)
                     
Less: Preferred stock dividends   1,566    956    4,698    2,868 
Less: Series B preferred stock accretion to redemption value   1,900        5,701     
Less: amount allocated to participating securities   62    48    177    155 
Net loss attributable to common stockholders  $(6,194)  $(5,305)  $(18,665)  $(18,039)
                     
Net loss per share attributable to common stockholders  $(0.68)  $(1.22)  $(2.73)  $(4.74)
                     
Weighted-average common shares outstanding basic and diluted   9,081,180    4,350,687    6,847,950    3,801,900 

 

 

 

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.

 

EBITDAre: We define earnings before interest, taxes, depreciation and amortization for real estate in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”). EBITDAre represents net income (loss), computed in accordance with GAAP, before interest expense, tax, depreciation and amortization, gains or losses on the sale of rental property, and loss on impairments. We believe that EBITDAre 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.

 

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. 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 exclude the add back of loss on debt extinguishment.

 

We define FFO, consistent with the 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.

 

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, 
   2019   2018   2019   2018 
NOI:                    
Net loss  $(2,974)  $(4,718)  $(9,430)  $(16,725)
General and administrative   2,135    1,394    5,472    4,347 
Depreciation and amortization   9,399    6,249    26,307    19,235 
Interest expense   3,643    3,575    11,061    11,777 
Loss on extinguishment of debt       804        4,405 
Change in fair value of warrant derivative           181    (48)
Other expense (income)       (5)       (526)
NOI  $12,203   $7,299   $33,591   $22,465 

 

   For the Three Months   For the Nine Months 
   Ended September 30,   Ended September 30, 
   2019   2018   2019   2018 
EBITDAre:                    
Net loss  $(2,974)  $(4,718)  $(9,430)  $(16,725)
Depreciation and amortization   9,399    6,249    26,307    19,235 
Interest expense   3,643    3,575    11,061    11,777 
Loss on extinguishment of debt       804        4,405 
EBITDAre  $10,068   $5,910   $27,938   $18,692 

 

   For the Three Months   For the Nine Months 
   Ended September 30,   Ended September 30, 
   2019   2018   2019   2018 
FFO:                    
Net loss  $(2,974)  $(4,718)  $(9,430)  $(16,725)
Depreciation and amortization   9,399    6,249    26,307    19,235 
Loss on extinguishment of debt       804        4,405 
FFO  $6,425   $2,335   $16,877   $6,915 
Preferred stock dividends   (1,566)   (956)   (4,698)   (2,868)
FFO attributable to common stockholders and unit holders  $4,859   $1,379   $12,179   $4,047 
                     
Weighted average common shares and units outstanding   10,287    4,898    8,047    4,371 
FFO attributable to common stockholders and unit holders per share  $0.47   $0.28   $1.51   $0.93 

 

   For the Three Months   For the Nine Months 
   Ended September 30,   Ended September 30, 
   2019   2018   2019   2018 
AFFO:                    
FFO attributable to common stockholders and unit holders  $4,859   $1,379   $12,179   $4,047 
Amortization of debt related costs   274    338    783    1,192 
Non-cash interest expense   325    (164)   232    642 
Stock compensation   282    203    875    602 
Change in fair value of warrant derivative           181     
Straight line rent   (298)   (107)   (778)   (925)
Above/below market lease rents   (373)   (247)   (1,059)   (964)
Recurring capital expenditure (1)   (976)   (599)   (2,222)   (1,941)
AFFO  $4,093   $803   $10,191   $2,653 
                     
Weighted average common shares and units outstanding   10,287    4,898    8,047    4,371 
AFFO per share  $0.40   $0.16   $1.27   $0.61 

 

(1) Excludes non-recurring capital expenditures of $1,542 and $576 for the three months ended September 30, 2019 and 2018, respectively, and $3,230 and $1,823 for the nine months ended September 30, 2019 and 2018, respectively.

 

(Back To Top)

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

Exhibit 99.2

 

 

 

Third 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 for Real Estate (EBITDAre) 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.

 

3Q 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. Jeffrey 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]

 

3Q 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 September 30, 2019  
Select Portfolio Statistics          
             
Number of Properties         72
Square Footage         14,944,773
Occupancy         96.8%
Weighted Average Lease Term Remaining - years         3.8
             
Balance Sheet ($ in thousands)          
             
Cash          $            36,801
Gross Assets          $          689,343
Total Debt          $          323,235
Net Debt (Total Debt less Cash)          $          286,434
Net Debt / Gross Assets         41.6%

 

    Three months ended September 30,   Year ended December 31,
Operating results ($ in thousands) 2019 2018   2018 2017
             
Total Revenue  $            19,123  $            11,653    $            49,217  $            24,818
Net Operating Income  $            12,203  $              7,299    $            31,234  $            16,610

 

YTD 2019 Capital Activity ($ in thousands)      
       
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
Amended secured line of credit agreement with KeyBank National   8/7/2019  $          100,000
Assumption of mortgage debt as part of the South Park Acquisition   8/29/2019  $              9,577
Assumption of mortgage debt as part of the Orange Point Acquisition   8/30/2019  $            21,004
Issued 1,194,032 shares of common shares @ average of $18.61 per share   Q3 2019  $            22,224
Issued 3,450,000 common shares @ $18.00 per share   Q3 2019  $            62,100

 

3Q 2019 Supplemental

 

 

Plymouth Industrial REIT, Inc.    
Transaction Activity Since IPO
       
Unaudited ($ in thousands) (at 9/30/2019)    
       

 

Acquisitions          
Location Acquisition
Date
# of Properties Purchase
Price (1)
Square
Footage
Projected
Initial Yield
Multiple, OH 8/30/2019 6  $                 36,200 591,695 8.4%
Memphis, TN 8/29/2019 1  $                 22,050 566,281 8.1%
Chicago, IL 8/29/2019 7  $                 32,250 1,071,129 8.25%
St. Louis, MO 7/29/2019 1  $                   5,400 129,000 8.6%
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   53  $              456,325        11,016,031  

 

Subsequent Acquisitions        
Location Acquisition
Date
# of Properties Purchase
Price (1)
Square
Footage
Projected
Initial Yield
Atlanta, GA 10/30/2019 1  $                 19,400 295,693 8.4%
           
 Total - Subsequent Acquisitions 1  $                 19,400              295,693  

 

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.

 

3Q 2019 Supplemental

 

 

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

 

      Three Months Ended
      9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018
               
Common Stock Data            
               
Weighted-Average Shares Outstanding - Basic   9,081 6,836 4,728 4,696 4,351
Weighted-Average Shares Outstanding - Diluted   9,081 6,836 4,728 4,696 4,351
High Closing Price    $                19.65  $                19.48  $                16.98  $                15.59  $                16.41
Low Closing Price    $                17.54  $                16.55  $                13.16  $                11.45  $                14.63
Average Closing Price    $                18.60  $                17.77  $                15.58  $                13.25  $                15.72
Closing Price (as of period end)    $                18.32  $                18.94  $                16.82  $                12.61  $                15.50
Dividends / Share (annualized) (1)    $                   1.50  $                   1.50  $                   1.50  $                   1.50  $                   1.50
Dividend Yield (annualized) (2)   8.2% 7.9% 8.9% 11.9% 9.7%
Common Shares Outstanding (2)   13,406 8,755 5,129 4,822 4,822
Market Value of Common Shares (2)    $            245,598  $            165,816  $              86,270  $              60,804  $              74,739
Total Market Capitalization (2) (3)    $            568,833  $            458,735  $            412,396  $            382,462  $            360,959

 

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 November 7, 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 November 14, 2019 by dialing (412) 317-0088 and entering the replay access code, 10136429.

 

(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 2019 Supplemental

 

 

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

 

    Full Year 2019 Range
    Low High
       
Net loss  $                     (1.22)  $                     (1.21)
       
Depreciation and amortization                           3.82                           3.82
Preferred stock dividend                          (0.65)                          (0.65)
FFO attributable to common stockholders and unit holders  $                       1.95  $                       1.96
       
Amortization of debt related costs                           0.11                           0.11
Non-cash interest & dividends                           0.02                           0.02
Stock compensation                           0.12                           0.12
Change in fair value of warrant derivative                           0.02                           0.02
Straight line rent                          (0.11)                          (0.12)
Above/below market lease rents                          (0.14)                          (0.15)
Recurring capital expenditure                          (0.35)                          (0.33)
AFFO  attributable to common stockholders and unit holders  $                       1.62  $                       1.63
       
Weighted average common shares and units outstanding                         9,660                         9,660
       
2019 Guidance Assumptions Low High
       
Total Revenue  $                   73,100  $                   74,400
NOI  $                   47,250  $                   47,550
EBITDAre  $                   39,900  $                   40,200
G&A  $                     7,500  $                     7,100
Recurring Capital Expenditure  $                     3,400  $                     3,200
Same Store Occupancy                            95%                            96%

 

Assumes the completion of approximately $82 million in acquisitions currently under agreement and anticpated to close by December 31, 2019. These pending acquisitions are subject to customary closing conditions. As such, there can be no assurance that we will complete these acquisitions.

 

3Q 2019 Supplemental

 

 

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

 

             
    9/30/2019 6/30/2019 3/31/19 12/31/18 (1) 9/30/2018
Assets:          
Real estate properties:          
Land  $                110,287  $                  96,139  $                  93,495  $                  92,628  $                  66,563
Building and improvements                    455,107                    378,595                    365,438                    359,982                    280,502
Less accumulated depreciation                     (57,331)                     (51,676)                     (46,438)                     (41,279)                     (36,830)
Total real estate properties, net  $                508,063  $                423,058  $                412,495  $                411,331  $                310,235
             
             
Cash, cash held in escrow and restricted cash                       36,801                       24,194                       14,121                       14,961                       11,557
Deferred lease intangibles, net                       45,768                       34,931                       35,339                       37,940                       25,057
Other assets                       11,214                       10,525                       11,551                         5,931                         6,409
Total assets  $                601,846  $                492,708  $                473,506  $                470,163  $                353,258
             
Liabilities:          
Debt, net  $                319,448  $                287,990  $                320,799  $                317,180  $                280,760
Accounts payable, accrued expenses and other liabilities                       32,222                       26,577                       24,870                       21,996                       17,101
Deferred lease intangibles, net                         7,579                         6,393                         6,595                         7,067                         6,439
Total liabilities  $                359,249  $                320,960  $                352,264  $                346,243  $                304,300
             
Preferred Stock - Series A  $                  48,868  $                  48,868  $                  48,868  $                  48,868  $                  48,868
Preferred Stock - Series B  $                  77,893  $                  75,993  $                  74,092  $                  72,192  $                             -
             
Equity:          
Common stock  $                        134  $                          88  $                          51  $                          49  $                          49
Additional paid in capital                    249,827                    177,557                    125,739                    126,327                    129,392
Accumulated deficit                   (146,072)                   (143,406)                   (140,929)                   (137,983)                   (134,283)
Total stockholders' equity                    103,889                       34,239                     (15,139)                     (11,607)                       (4,842)
Non-controlling interest                       11,947                       12,648                       13,421                       14,467                         4,932
Total equity (deficit)  $                115,836  $                  46,887  $                  (1,718)  $                    2,860  $                          90
             
Total liabilities, preferred stock and equity (deficit)  $                601,846  $                492,708  $                473,506  $                470,163  $                353,258

 

(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.

 

3Q 2019 Supplemental

 

 

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

 

      Three Months Ended
      9/30/2019 6/30/2019 3/31/19 12/31/18 (1) 9/30/2018  
Revenues:              
Rental revenue    $                   14,481  $                   12,906  $                   12,729  $                   10,387  $                     8,742  
Tenant recoveries                           4,642                         4,116                         3,933                         3,242                         2,906  
Other revenue                                    -                                  -                                  -                                 8                                 5  
Total revenues    $                   19,123  $                   17,022  $                   16,662  $                   13,637  $                   11,653  
                 
Operating expenses:              
Property                           6,920                         6,034                         6,262                         4,860                         4,349  
Depreciation and amortization                           9,399                         8,476                         8,432                         7,553                         6,249  
General and administrative                           2,135                         1,691                         1,646                         1,733                         1,394  
Total operating expenses    $                   18,454  $                   16,201  $                   16,340  $                   14,146  $                   11,992  
                 
Other income (expense):              
Gain on sale of real estate                                    -                                  -                                  -                         1,004                                  -  
Interest expense                          (3,643)                        (3,576)                        (3,842)                        (3,957)                        (3,575)  
Loss on extinguishment of debt                                    -                                  -                                  -                           (988)                           (804)  
Change in fair value of warrant derivative                                    -                           (102)                             (79)                                  -                                  -  
Total other income (expense)    $                   (3,643)  $                   (3,678)  $                   (3,921)  $                   (3,941)  $                   (4,379)  
                 
Net loss    $                   (2,974)  $                   (2,857)  $                   (3,599)  $                   (4,450)  $                   (4,718)  
                 
Less: Loss attributable to noncontrolling interest                             (308)                           (380)                           (653)                           (750)                           (417)  
Net loss attributable to Plymouth Industrial REIT, Inc.    $                   (2,666)  $                   (2,477)  $                   (2,946)  $                   (3,700)  $                   (4,301)  
                 
Less: Preferred stock dividends                           1,566                         1,566                         1,566                         1,072                             956  
Less: Series B preferred stock accretion to redemption value                           1,900                         1,901                         1,900                             359                                  -  
Less: Amount allocated to participating securities                                 62                               58                               57                               46                               48  
Net loss attributable to common stockholders    $                   (6,194)  $                   (6,002)  $                   (6,469)  $                   (5,177)  $                   (5,305)  
                 
Net loss per share attributable to common stockholders  $                     (0.68)  $                     (0.88)  $                     (1.37)  $                     (1.10)  $                     (1.22)  
                 
Weighted-average common shares outstanding basic & diluted   9,081 6,836 4,728 4,696 4,351  

 

(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.

 

3Q 2019 Supplemental

 

 

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

 

Trailing five quarter same store NOI Three Months Ended
    9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018
Same store properties 50 50 50 50 50
             
Revenues:          
Rental income  $                9,348  $                9,097  $                8,945  $                  8,667  $                  8,624
Tenant recoveries                      3,051                    3,122                    2,912                      2,937                      2,924
Total operating revenues  $              12,399  $              12,219  $              11,857  $                11,604  $                11,548
             
Property expenses  $                4,546  $                4,739  $                4,762  $                  4,441  $                  4,228
             
Same store net operating income  $                7,853  $                7,480  $                7,095  $                  7,163  $                  7,320

 

3Q 2019 Supplemental

 

 

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

 

    Three Months Ended
    9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018
             
Net loss  $              (2,974)  $              (2,857)  $              (3,599)  $                (4,450)  $                   (4,718)
             
General and administrative                    2,135                    1,691                    1,646                      1,733                         1,394
Depreciation and amortization                    9,399                    8,476                    8,432                      7,553                         6,249
Interest expense                    3,643                    3,576                    3,842                      3,957                         3,575
Loss on extinguishment of debt                             -                             -                             -                          988                             804
Change in fair value of warrant derivative                             -                        102                          79                               -                                  -
Gain on sale of real estate                             -                             -                             -                     (1,004)                                  -
Other expense (income)                             -                             -                             -                             (8)                                (5)
             
Net Operating Income  $              12,203  $              10,988  $              10,400  $                  8,769  $                     7,299

 

3Q 2019 Supplemental

10 

 

 

Plymouth Industrial REIT, Inc.
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre)
             

 

    Three Months Ended
    9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018
             
Net loss  $              (2,974)  $              (2,857)  $              (3,599)  $                (4,450)  $                   (4,718)
             
Depreciation and amortization                    9,399                    8,476                    8,432                      7,553                         6,249
Interest expense                    3,643                    3,576                    3,842                      3,957                         3,575
Gain on sale of real estate                             -                             -                             -                     (1,004)                                  -
Loss on extinguishment of debt                             -                             -                             -                          988                             804
             
EBITDAre  $              10,068  $                9,195  $                8,675  $                     7,044  $                     5,910

 

3Q 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
    9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018
             
Net loss  $                (2,974)  $                (2,857)  $                (3,599)  $                   (4,450)  $                   (4,718)
             
Depreciation and amortization                       9,399                       8,476                       8,432                         7,553                         6,249
Loss on extinguishment of debt                               -                               -                               -                             988                             804
Gain on sale of real estate                               -                               -                               -                        (1,004)                                  -
FFO  $                  6,425  $                  5,619  $                  4,833  $                     3,087  $                     2,335
             
Preferred stock dividends                     (1,566)                     (1,566)                     (1,566)                        (1,072)                           (956)
FFO attributable to common stockholders and unit holders  $                  4,859  $                  4,053  $                  3,267  $                     2,015  $                     1,379
             
Amortization of debt related costs                          274                          273                          235                             290                             338
Non-cash interest expense                          325                           (62)                           (31)                               14                           (164)
Stock compensation                          282                          305                          288                             203                             203
Change in fair value of warrant derivative                             -                             102                            79                                -                                   -   
Straight line rent                        (298)                        (223)                        (258)                             (71)                           (107)
Above/below market lease rents                        (373)                        (344)                        (341)                           (340)                           (247)
Recurring capital expenditures (1)                        (976)                        (687)                        (559)                           (767)                           (598)
AFFO  $                  4,093  $                  3,417  $                  2,680  $                     1,344  $                        804
             
Weighted average common shares and units outstanding                    10,287                       8,037                       5,917                         5,774                         4,898
             
FFO attributable to common stockholders and unit holders per share  $                    0.47  $                    0.50  $                    0.55  $                       0.35  $                       0.28
             
AFFO attributable to common stockholders and unit holders per share  $                    0.40  $                    0.43  $                    0.45  $                       0.23  $                       0.16

 

(1) Excludes non-recurring capital expenditures of $1,542, $635, $1,053, $777, and $576 for the three months ending September 30, June 30, March 31, 2019, December 31, and September 30, 2018, respectively.

 

3Q 2019 Supplemental

12 

 

 

Plymouth Industrial REIT, Inc.
Debt Overview
               
Unaudited ($ in thousands) at 9/30/2019          

 

Debt Instrument - Secured Facility Maturity Rate Rate Type Properties Encumbered Balance % of Total Debt
$100.0 million line of credit   August-23  4.39%(1) Floating                        16  $                            -    0.0%
$120.0 million AIG Loan   October-23 4.08% Fixed                        20  $                 120,000 37.1%
$21.5 million Minnesota Life Loan   May-28 3.78% Fixed                          7  $                   21,371 6.6%
$78.0 million Transamerica Loan   August-28 4.35% Fixed                        17  $                   74,519 23.1%
$13.9 million Fisher Park Mortgage   January-27 5.23% Fixed                          1  $                   13,716 4.2%
$63.1 million Allianz Loan   April-26 4.07% Fixed                          3  $                   63,115 19.5%
$9.6 million Lincoln National Loan   January-22 3.41% Fixed                          1  $                     9,560 3.0%
$21.0 million BlueMark Capital Mortgage   August-24 4.14% Fixed                          6  $                   20,954 6.5%
                                 71  $                323,235 100%

 

Fixed Debt ($ in thousands) at 9/30/2019      
 Total fixed debt      $                 323,235
Weighted average interest rate of fixed debt     4.15%

 

Balance Sheet ($ in thousands) at 9/30/2019      
 Cash      $                   36,801
 Gross Assets (2)      $                 689,343
 Total Debt      $                 323,235
 Net Debt      $                 286,434

 

(1) Interest rate applicable at September 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 200 and 250 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.

 

3Q 2019 Supplemental

13 

 

 

Plymouth Industrial REIT, Inc.
Property Overview - Square Feet & Occupancy
 
Unaudited ($ in thousands) at 9/30/19

 

         
 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 Ave Chicago                    260,000                    260,000 100.0%
  11746 Austin Ave Chicago                    162,714                    162,714 100.0%
  13040 South Pulaski Ave 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%
  144 Tower Drive Chicago                       73,785                       71,709 97.2%
  1455-1645 Greenleaf Ave Chicago                    150,000                    150,000 100.0%
  1600 Fleetwood Chicago                    247,000                    247,000 100.0%
  16801 Exchange Ave Chicago                    455,886                    455,886 100.0%
  1750 South Lincoln Drive Chicago                    499,200                    499,200 100.0%
  1796 Sherwin Ave Chicago                       98,879                       98,879 100.0%
  1875 Holmes Road Chicago                    134,415                    134,415 100.0%
  189-191 Seeger Avenue Chicago                       25,000                               -    0.0%
  2401-2441 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%
  330 Armory Drive Chicago                       98,340                       98,340 100.0%
  350 Armory Drive Chicago                       64,310                       56,140 87.3%
  3841-3865 Swanson Court Chicago                       99,625                       99,625 100.0%
  3940 Stern Street Chicago                    146,798                    146,798 100.0%
  440 South McLean Boulevard Chicago                       74,613                       74,613 100.0%
  4915 West 122nd Street Chicago                    153,368                    153,368 100.0%
  6000 W. 73rd Street Chicago                    148,091                    148,091 100.0%
  6510 West 73rd Street Chicago                    306,552                    306,552 100.0%
  6558 W. 73rd Street Chicago                    301,000                    301,000 100.0%
  6751 Sayre Ave Chicago                    242,690                    242,690 100.0%
  7200 South Mason Ave Chicago                    207,345                    207,345 100.0%
  7207 Mason Avenue Chicago                       84,195                       84,195 100.0%
  7420 Meade Ave Chicago                       52,344                       52,344 100.0%
  5110 South 6th Street Milwaukee                       58,500                       58,500 100.0%
Subtotal - Chicago                   4,901,297                 4,866,051 99.3%
  Mosteller Distribution Center Cincinnati                    358,386                    358,386 100.0%
  4115 Thunderbird Lane Cincinnati                       70,000                       70,000 100.0%
  Fisher Industrial Park Cincinnati                 1,123,080                 1,016,084 90.5%
  Cornell Commerce Center Cincinnati                    165,521                    152,138 91.9%

 

3Q 2019 Supplemental

14 

 

 

Plymouth Industrial REIT, Inc.
Property Overview - Square Feet & Occupancy
 
Unaudited ($ in thousands) at 9/30/19

 

           
 Property  Market  Rentable Square Feet  Leased Square Feet  Occupancy  
  Enterprise Business Center 1 Cincinnati                       85,718                       73,016 85.2%
  Enterprise Business Center 2 Cincinnati                       82,832                       68,647 82.9%
  Graphics Way Cincinnati                       73,426                       73,427 100.0%
  Orange Point Cincinnati                    143,863                    143,863 100.0%
Subtotal - Cincinnati                   2,102,826                 1,955,561 93.0%
  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%
  2120-2138 New World Drive Columbus                    121,200                    121,200 100.0%
  3100 Creekside Parkway Columbus                    340,000                    257,962 75.9%
  3500 Southwest Blvd Columbus                    527,127                    527,127 100.0%
  7001 Americana Parkway Columbus                       54,100                       54,100 100.0%
  8273 Green Meadows Drive Columbus                       77,271                       77,271 100.0%
  8288 Green Meadows Drive Columbus                    300,000                    300,000 100.0%
  6900-6918 Fairfiled Business Drive Columbus                       39,558                       39,558 100.0%
Subtotal - Columbus                     1,459,256                        1,377,218 94.4%
  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                    416,861 97.6%
  Salisbury Business Park Jacksonville                    168,800                    168,800 100.0%
Subtotal - Jacksonville                   1,133,516                 1,087,661 96.0%
  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                    141,789 60.3%
  South Park Memphis                    566,281                    566,281 100.0%
Subtotal - Memphis/Jackson                   1,773,894                 1,680,677 94.7%
  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%
  Phantom Drive St Louis, MO                    129,000                    125,318 97.1%
Subtotal - Others                      634,319                    630,638 99.4%
 Total - All Properties                14,944,773              14,462,815 96.8%
               

 

3Q 2019 Supplemental

15 

 

 

Plymouth Industrial REIT, Inc.
Market Summary
             
Unaudited (SF and $ in thousands) (at 9/30/2019)    

 

Geography  State  Properties  Total Acquisition Cost (1)  Gross Real Estate Assets (2)  % Gross Real Estate Assets
 Atlanta   GA 4  $                                  17,045  $                15,891 2.9%
 Chicago   IL, WI 31                                    187,585                  171,608 30.4%
 Cincinnati   OH 8                                      73,400                    71,213 12.6%
 Cleveland   OH 2                                      42,000                    40,220 7.1%
 Columbus   OH 7                                      53,482                    51,233 9.1%
 Indianapolis/South Bend   IN 8                                      60,550                    53,833 9.5%
 Jacksonville   FL 3                                      97,100                    86,584 15.3%
 Memphis/Jackson   TN 5                                      53,658                    48,158 8.5%
 Other   Various 4                                      29,400                    26,131 4.6%
 Total   72  $                                614,220  $              564,871 100%

 

 

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

(2) The gross book value of real estate assets as of September 30, 2019 excluding $523 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.

 

3Q 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
                 
Q3 2019 Renewals 293,806 51.0%  $        5.34  $         5.32 -0.4%  $                  0.22  $                 0.17
  New Leases 281,979 49.0%  $        2.22  $         3.52 58.6%  $                  0.22  $                 0.29
  Total 575,785 100%  $        3.81  $         4.44 16.5%  $                  0.22  $                 0.23
                 
2019 Renewals 1,092,316 64.2%  $        4.15  $         4.39 5.8%  $                  0.21  $                 0.11
  New Leases 610,211 35.8%  $        2.49  $         3.35 34.5%  $                  0.25  $                 0.40
  Total 1,702,527 100%  $        3.56  $         4.01 12.6%  $                  0.22  $                 0.21

 

3Q 2019 Supplemental

17 

 

 

Plymouth Industrial REIT, Inc.
Lease Expiration Schedule
 
Unaudited ($ in thousands) (at 9/30/2019)        

 

Year Square Footage Annualized
Base Rent (ABR) (1)
% of Annual Base Rent Expiring (2)
Available                                    481,958  $                                              -    -
2019                                    507,749                                            2,238 3.6%
2020                                 1,578,974                                            7,741 12.5%
2021                                 3,089,105                                         13,394 21.6%
2022                                 2,042,123                                            9,839 15.9%
2023                                 1,281,417                                            4,877 7.9%
Thereafter                                 5,963,447                                         23,944 38.5%
Total                              14,944,773  $                                     62,033 100%

 

 

 

(1) Annualized base rent is calculated as monthly contracted base rent per the terms of such lease, as of September 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 September 30, 2019.

 

3Q 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.

 

EBITDAre: We define earnings before interest, taxes, depreciation and amortization for real estate in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”). EBITDAre represents net income (loss), computed in accordance with GAAP, before interest expense, tax, depreciation and amortization, gains or losses on the sale of rental property, and loss on impairments. We believe that EBITDAre 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.

 

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. 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 exclude the add back of loss on debt extinguishment.

We define FFO, consistent with the 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.

 

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 September 30, 2019 the calculation is as follows:

 

  9/30/2019  
Total Assets $601,846  
Add back accumulated depreciation 57,331  
Add back intangible asset amortization 30,166  
Gross assets $689,343  

 

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 July 1, 2018, and still owned by us as of September 30, 2019. Therefore, we excluded from our Same Store Portfolio any properties that were acquired or sold during the period from July 1, 2018 through September 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.

 

3Q 2019 Supplemental

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