Exhibit 99.2
PLYMOUTH INDUSTRIAL REIT INC.
Overview to Unaudited Pro Forma Condensed Consolidated Financial Statements
The accompanying unaudited pro forma condensed consolidated financial statements have been derived from the historical condensed consolidated financial statements of the Company. The unaudited pro forma condensed consolidated balance sheet as of September 30, 2018 is presented to reflect adjustments to the Company’s historical balance sheet as if the Company’s Jacksonville Portfolio acquisition and the Series B Preferred Stock offering were completed on September 30, 2018. The unaudited pro forma condensed consolidated statements of operations for the nine months ended September 30, 2018 and for the year ended December 31, 2017 are presented as if the Jacksonville Portfolio acquisition and the Series B Preferred Stock offering were completed on the first day of the period presented.
The following unaudited pro forma condensed consolidated financial statements should be read in conjunction with (i) our historical unaudited condensed consolidated financial statements as of September 30, 2018 and for the nine months ended September 30, 2018 and (ii) our condensed consolidated financial statements for the twelve months ended December 31, 2017 in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2018.
The Company has based the unaudited pro forma adjustments on available information and assumptions that it believes are reasonable. The following unaudited pro forma condensed consolidated financial statements are presented for informational purposes only and are not necessarily indicative of what the Company’s actual financial position would have been as of September 30, 2018 assuming the Jacksonville Portfolio acquisition had been completed on September 30, 2018, what actual results of operations would have been for the nine months ended September 30, 2018 and the year ended December 31, 2017 assuming the Jacksonville Portfolio acquisition was completed on the first day of the period presented, and are not indicative of future results of operations or financial condition and should not be viewed as indicative of future results of operations or financial condition.
Pro Forma Condensed Consolidated Balance Sheet
As of September 30, 2018
(Unaudited and in thousands except for share and per share amounts)
| Plymouth | Proceeds | Proceeds from | ||||||||||||||||||
| Industrial | from | Jacksonville | Jacksonville | Company | ||||||||||||||||
| REIT, Inc. | offering | Portfolio Loan | Portfolio | Pro Forma | ||||||||||||||||
| (A) | (B) | (C) | (D) | |||||||||||||||||
| Assets | ||||||||||||||||||||
| Real estate properties | $ | 347,065 | $ | — | — | $ | 97,393 | $ | 444,458 | |||||||||||
| Less accumulated depreciation | (36,830 | ) | — | — | — | (36,830 | ) | |||||||||||||
| Real estate properties, net | 310,235 | — | — | 97,393 | 407,628 | |||||||||||||||
| Cash | 5,966 | 40,663 | 63,115 | (97,393 | ) | 12,351 | ||||||||||||||
| Cash held in escrow | 3,875 | — | — | — | 3,875 | |||||||||||||||
| Restricted cash | 1,716 | — | — | 1,716 | ||||||||||||||||
| Deferred leasing intangibles, net | 25,057 | — | — | — | 25,057 | |||||||||||||||
| Other assets | 6,409 | — | — | — | 6,409 | |||||||||||||||
| Total assets | $ | 353,258 | $ | 40,663 | $ | 63,115 | $ | — | $ | 457,036 | ||||||||||
| Liabilities, Series A preferred stock and equity (deficit) | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Secured debt, net | $ | 245,627 | $ | (31,170 | ) | $ | 63,115 | $ | 0 | $ | 277,572 | |||||||||
| Borrowings under line of credit, net | 35,133 | — | — | — | 35,133 | |||||||||||||||
| Accounts payable, accrued expenses and other liabilities | 17,101 | — | — | — | 17,101 | |||||||||||||||
| Deferred lease intangibles, net | 6,439 | — | — | — | 6,439 | |||||||||||||||
| Total liabilities | 304,300 | (31,170 | ) | 63,115 | — | 336,245 | ||||||||||||||
| Preferred stock Series A | 48,868 | — | — | — | 48,868 | |||||||||||||||
| Preferred stock Series B | — | 71,833 | — | — | 71,833 | |||||||||||||||
| Equity | ||||||||||||||||||||
| Common stock | 49 | — | — | — | 49 | |||||||||||||||
| Additional paid in capital | 129,392 | — | — | 129,392 | ||||||||||||||||
| Accumulated deficit | (134,283 | ) | — | — | — | (134,283 | ) | |||||||||||||
| Total Plymouth Industrial REIT, Inc. stockholders' equity | (4,842 | ) | — | — | — | (4,842 | ) | |||||||||||||
| Non-controlling Interest | 4,932 | — | — | — | 4,932 | |||||||||||||||
| Total equity | 90 | — | — | — | 90 | |||||||||||||||
| Total liabilities, Series A preferred stock, Series B preferred stock and equity | $ | 353,258 | $ | 40,663 | $ | 63,115 | $ | — | $ | 457,036 | ||||||||||
Pro Forma Condensed Consolidated Statement of Operations
For the Nine Months Ended September 30, 2018
(Unaudited and in thousands except for share and per share amounts)
| Plymouth | Company | |||||||||||||||
| Industrial | Pro Forma | Jacksonville | Company | |||||||||||||
| REIT, Inc. | Adjustments | Portfolio | Pro Forma | |||||||||||||
| (A) | (B) | (C) | ||||||||||||||
| Revenues: | ||||||||||||||||
| Rental revenue | $ | 26,245 | $ | — | $ | 6,312 | $ | 32,557 | ||||||||
| Tenant recoveries | 8,809 | — | 2,538 | 11,347 | ||||||||||||
| Other income | 526 | — | — | 526 | ||||||||||||
| Total revenues | 35,580 | — | 8,850 | 44,430 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Property expenses | 12,589 | — | 2,671 | 15,260 | ||||||||||||
| General and administrative | 4,299 | — | — | 4,299 | ||||||||||||
| Depreciation and amortization | 19,235 | — | 4,328 | 23,563 | ||||||||||||
| Total Operating expenses | 36,123 | — | 6,999 | 43,122 | ||||||||||||
| Operating income (loss) | (543 | ) | — | 1,851 | 1,308 | |||||||||||
| Other expense: | ||||||||||||||||
| Interest expense | 11,777 | — | 2,127 | 13,904 | ||||||||||||
| Loss on extinguishment of debt | 4,405 | — | — | 4,405 | ||||||||||||
| Total other expense | 16,182 | — | 2,127 | 18,309 | ||||||||||||
| Net loss | (16,725 | ) | — | (276 | ) | (17,001 | ) | |||||||||
| Net Loss Attributable to non-controlling interest after preferred stock dividends | (1,709 | ) | — | (28 | ) | (1,737 | ) | |||||||||
| Net loss attributable to Plymouth Industrial REIT, Inc. | (15,016 | ) | — | (248 | ) | (15,264 | ) | |||||||||
| Less Series A preferred stock dividends | (2,868 | ) | — | — | (2,868 | ) | ||||||||||
| Less Series B preferred stock dividends | — | (1,828 | ) | — | (1,828 | ) | ||||||||||
| Less amount attributable to participating securities | (155 | ) | — | — | (155 | ) | ||||||||||
| Net Loss Attributable to common stockholders | (18,039 | ) | (1,828 | ) | (248 | ) | (20,115 | ) | ||||||||
| Loss Per Share | $ | (4.74 | ) | $ | (5.29 | ) | ||||||||||
| Weighted Average Shares Outstanding | 3,801,900 | 3,801,900 | ||||||||||||||
Pro Forma Condensed Consolidated Statement of Operations
For the Year Ended December 31, 2017
(Unaudited and in thousands except for share and per share amounts)
| Plymouth | Company | |||||||||||||||
| Industrial | Pro Forma | Jacksonville | Company | |||||||||||||
| REIT, Inc. | Adjustments | Portfolio | Pro Forma | |||||||||||||
| (A) | (B) | (C) | ||||||||||||||
| Revenues: | ||||||||||||||||
| Rental revenue | $ | 18,372 | $ | — | $ | 7,747 | $ | 26,119 | ||||||||
| Tenant recoveries | 6,443 | — | 3,047 | 9,490 | ||||||||||||
| Other income | 3 | — | — | 3 | ||||||||||||
| Total revenues | 24,818 | — | 10,794 | 35,612 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Property expenses | 8,205 | — | 3,441 | 11,646 | ||||||||||||
| General and administrative | 5,292 | — | — | 5,292 | ||||||||||||
| Depreciation and amortization | 13,998 | — | 5,770 | 19,768 | ||||||||||||
| Total Operating expenses | 27,495 | — | 9,211 | 36,706 | ||||||||||||
| Operating income (loss) | (2,677 | ) | — | 1,583 | (1,094 | ) | ||||||||||
| Other income (expense): | ||||||||||||||||
| Gain on disposition of equity investment | 231 | — | — | 231 | ||||||||||||
| Interest expense | (11,581 | ) | — | (2,838 | ) | (14,419 | ) | |||||||||
| Total other income (expense) | (11,350 | ) | — | (2,838 | ) | (14,188 | ) | |||||||||
| Net loss | (14,027 | ) | — | (1,255 | ) | (15,282 | ) | |||||||||
| Net Loss Attributable to non-controlling interest | (5,320 | ) | — | (49 | ) | (5,369 | ) | |||||||||
| Net loss attributable to Plymouth Industrial REIT, Inc. | (8,707 | ) | — | (1,206 | ) | (9,913 | ) | |||||||||
| Less Series A preferred stock dividends | (723 | ) | — | — | (723 | ) | ||||||||||
| Less Series B preferred stock dividends | — | (2,438 | ) | — | (2,438 | ) | ||||||||||
| Less Amount allocated to participating securities | (128 | ) | — | — | (128 | ) | ||||||||||
| Net Loss Attributable to common stockholders | (9,558 | ) | (2,438 | ) | (1,206 | ) | (13,202 | ) | ||||||||
| Loss Per Share | $ | (4.45 | ) | $ | (6.14 | ) | ||||||||||
| Weighted Average Shares Outstanding | 2,149,977 | 2,149,977 | ||||||||||||||
Plymouth Industrial REIT, Inc.
Notes to Unaudited Pro Forma
Condensed Consolidated Financial Statements
(dollars in thousands)
1. Notes to the Unaudited Pro Forma Condensed Consolidated Balance Sheet as of September 30, 2018
(A) Reflects the historical Condensed Consolidated Balance Sheet of Plymouth Industrial REIT, Inc. as of September 30, 2018
(B) Reflects the net proceeds of $71,833 from the sale of 4,411,764 shares of Series B preferred stock. It also reflects the use of proceeds from the Series B preferred stock to pay off the outstanding KeyBank Term Loan of $31,170.
(C) Reflects proceeds from the $63,115 Key Bank Bridge Loan used in the acquisition of the Jacksonville Portfolio.
(D) Reflects the $97,393 acquisition of the Jacksonville Portfolio as reflected in the Statements of Revenue and Certain Expenses included herein. The pro forma adjustments do not include an allocation of the purchase price to reflect the intangible components of the acquisition as this evaluation is in process and will be reflected in future filings of actual results.
2. Notes to the Unaudited Pro Forma Condensed Consolidated Statement of Operations for the nine months ended September 30, 2018
(A) Reflects the historical Condensed Consolidated Statement of Operations of Plymouth Industrial REIT, Inc. for the nine months ended September 30, 2018.
(B) Reflects the 3.25% stated annual dividend on the 4,411,764 shares of Series B preferred stock
(C) Reflects the results of operations and depreciation and interest expense related to the acquisition of the Jacksonville Portfolio as reflected in the Statements of Revenues and Certain Expenses included herein.
3. Notes to the Unaudited Pro Forma Condensed Consolidated Statement of Operations for the year ended December 31, 2017
(A) Reflects the historical Condensed Consolidated Statement of Operations of Plymouth Industrial REIT, Inc. for the year ended December 31, 2017.
(B) Reflects the 3.25% stated annual dividend on the 4,411,764 shares of Series B preferred stock
(C) Reflects the results of operations and depreciation and interest expense related to the acquisition of the Jacksonville Portfolio as reflected in the Statements of Revenues and Certain Expenses included herein.