Exhibit 99.2
Second Quarter 2019
Supplemental
Plymouth Industrial REIT, Inc. |
Table of Contents |
Introduction | ||||||||||
Management, Board of Directors & Investor Contacts | 2 | |||||||||
Executive Summary | 3 | |||||||||
Transaction Activity Since IPO | 4 | |||||||||
Capitalization Analysis | 5 | |||||||||
2019 Guidance | 6 | |||||||||
Financial Information | ||||||||||
Consolidated Balance Sheets (unaudited) | 7 | |||||||||
Consolidated Statements of Operations - GAAP (unaudited) | 8 | |||||||||
Same Store Net Operating Income (NOI) | 9 | |||||||||
NOI | 10 | |||||||||
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) | 11 | |||||||||
Funds from Operations (FFO) & Adjusted Funds from Operations (AFFO) | 12 | |||||||||
Debt Overview | 13 | |||||||||
Operational & Portfolio Information | ||||||||||
Property Overview - Square Feet & Occupancy | 14 | |||||||||
Market Summary | 16 | |||||||||
Leasing Activity | 17 | |||||||||
Lease Expiration Schedule | 18 | |||||||||
Appendix | ||||||||||
Glossary | 19 |
Forward looking statements: This supplemental package contains forward-looking statements within the meaning of the U.S. federal securities laws. We make statements in this supplemental package that are forward-looking statements, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions. Our forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by our forward-looking statements are reasonable, we can give no assurance that our plans, intentions, expectations, strategies or prospects will be attained or achieved and you should not place undue reliance on these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and may be affected by a variety of risks and factors. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict those events or how they may affect us. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Definitions and reconciliations: For definitions of certain terms used throughout this supplemental, including certain non-GAAP financial measures, see the Glossary on page 19. For reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures, see pages 10-12.
2Q 2019 Supplemental
1
Plymouth Industrial REIT, Inc. |
Management, Board of Directors & Investor Contacts |
Corporate | ||||
260 Franklin Street, Suite 700 | ||||
Boston, Massachusetts 02110 | ||||
617.340.3814 | ||||
www.plymouthreit.com | ||||
Executive and Senior Management | ||||
Jeffrey E. Witherell | Pendleton P. White, Jr. | Daniel C. Wright | ||
Chief Executive Officer | President and Chief Investment | Executive Vice President | ||
and Chairman | Officer | and Chief Financial Officer | ||
Board of Directors | ||||
Martin Barber | Philip S. Cottone | Richard J. DeAgazio | ||
Independent Director | Independent Director | Independent Director | ||
David G. Gaw | Pendleton P. White, Jr. | Jeffery E. Witherell | ||
Independent Director | President and Chief Investment | Chief Executive Officer | ||
Officer | and Chairman | |||
Transfer Agent | ||||
Continental Stock Transfer & Trust Company | ||||
1 State Street, 30th Floor | ||||
New York, New York 10004 | ||||
212.509.4000 | ||||
Investor Relations | ||||
Tripp Sullivan | ||||
SCR Partners | ||||
615.760.1104 | ||||
IR@plymouthREI.com |
2Q 2019 Supplemental
2
Plymouth Industrial REIT, Inc. |
Executive Summary |
Company overview: Plymouth Industrial REIT, Inc. (NYSE American: PLYM) is a vertically integrated and self-managed real estate investment trust focused on the acquisition and operation of single and multi-tenant industrial properties located in secondary and select primary markets across the United States. The Company seeks to acquire properties that provide income and growth that enable the Company to leverage its real estate operating expertise to enhance shareholder value through active asset management, prudent property re-positioning and disciplined capital deployment. |
Unaudited | |||||
As of June 30, 2019 | |||||
Select Portfolio Statistics | |||||
Number of Properties | 57 | ||||
Square Footage | 12,535,937 | ||||
Occupancy | 96.1% | ||||
Weighted Average Lease Term Remaining - years | 3.5 | ||||
Balance Sheet ($ in thousands) | |||||
Cash | $ 24,194 | ||||
Gross Assets | $ 572,173 | ||||
Total Debt | $ 292,919 | ||||
Net Debt (Total Debt less Cash) | $ 268,725 | ||||
Net Debt / Gross Assets | 47.0% |
Three months ended June 30, | Year ended December 31, | ||||
Operating results ($ in thousands) | 2019 | 2018 | 2018 | 2017 | |
Total Revenue | $ 17,022 | $ 12,047 | $ 49,217 | $ 24,818 | |
Net Operating Income | $ 10,988 | $ 8,189 | $ 31,234 | $ 16,610 | |
2018 & YTD 2019 Capital Activity ($ in thousands) | |||||
Increased secured line of credit agreement with KeyBank National | 3/8/2018 | $ 45,000 | |||
Secured 10 year term loan with Minnesota Insurance | 4/30/2018 | $ 21,500 | |||
Secured term loan with KeyBank | 5/23/2018 | $ 35,700 | |||
Repaid Torchlight Mezzanine Loan | 5/24/2018 | $ (35,000) | |||
Secured 10 year term loan with Transamerica Life Insurance Company | 7/10/2018 | $ 78,000 | |||
Repaid MWG Portfolio Loan | 7/10/2018 | $ (79,800) | |||
Issued 1,262,833 common shares @ $15.60 per share | Q3 2018 | $ 19,700 | |||
Paid down KeyBank Term Loan | Q3 2018 | $ (4,530) | |||
Issued 626,011 of operating units as part of the Fisher Park acquisition | 10/15/2018 | $ 10,642 | |||
Assumption of mortgage debt as part of the Fisher Park acquisition | 10/15/2018 | $ 13,907 | |||
Issued 4,411,764 shares of Series B Preferred Stock | 12/14/2018 | $ 75,000 | |||
Repaid balance of KeyBank Term Loan | 12/14/2018 | $ (31,170) | |||
Secured KeyBank Bridge Loan - Jacksonville acquisition | 12/14/2018 | $ 63,115 | |||
Partial pay down Transamerica Term Loan - disposition of 525 Marquette | 12/19/2018 | $ (3,380) | |||
Secured 7 year term loan with Allianz Life Insurance Company | 3/21/2019 | $ 63,115 | |||
Repaid KeyBank Bridge Loan | 3/21/2019 | $ (63,115) | |||
Issued 278,302 shares of common shares @ average of $16.63 per share | Q1 2019 | $ 4,628 | |||
Issued 147,017 shares of common shares @ average of $16.79 per share | Q2 2019 | $ 2,469 | |||
Issued 3,425,000 common shares @ $17.50 per share | Q2 2019 | $ 59,938 |
2Q 2019 Supplemental
3
Plymouth Industrial REIT, Inc. |
Transaction Activity Since IPO |
Unaudited ($ in thousands) (at 6/30/2019) |
Acquisitions | |||||
Location | Acquisition Date | # of Properties | Purchase Price (1) | Square Footage | Projected Initial Yield |
Indianapolis, IN | 6/10/2019 | 1 | $ 17,100 | 484,879 | 7.7% |
Chicago, IL | 1/5/2019 | 1 | 5,425 | 73,785 | 8.9% |
Jacksonville, FL | 12/14/2018 | 3 | 97,100 | 1,133,516 | 8.4% |
Cincinnati, OH | 10/15/2018 | 1 | 24,800 | 1,100,000 | 8.5% |
Cleveland, OH | 9/27/2018 | 1 | 27,000 | 400,184 | 7.6% |
Elgin/Arlington Heights, IL | 4/9/2018 | 2 | 15,675 | 269,999 | 8.0% |
Elgin, IL | 12/22/2017 | 1 | 4,050 | 75,000 | 9.7% |
Atlanta. GA | 12/21/2017 | 3 | 11,425 | 330,361 | 8.3% |
Multiple | 11/30/2017 | 15 | 99,750 | 3,027,987 | 8.1% |
Memphis, TN | 9/8/2017 | 1 | 3,700 | 131,904 | 8.6% |
Memphis, TN | 8/16/2017 | 1 | 7,825 | 235,000 | 10.5% |
Columbus, OH | 8/16/2017 | 1 | 3,700 | 121,440 | 9.0% |
Indianapolis, IN | 8/11/2017 | 2 | 16,875 | 606,871 | 8.5% |
Southbend, IN | 7/20/2017 | 5 | 26,000 | 667,000 | 8.5% |
Total - Acquisitions | 38 | $ 360,425 | 8,657,926 |
Subsequent Acquisitions | |||||
Location | Acquisition Date | # of Properties | Purchase Price (1) | Square Footage | Projected Initial Yield |
St. Louis, MO | 7/30/2019 | 1 | $ 5,400 | 129,000 | 8.6% |
Multiple, OH | 8/15/2019E (2) | 6 | $ 36,200 | 591,695 | 8.4% |
Chicago, IL | 9/1/19E (3) | 7 | $ 32,250 | 1,071,129 | 8.25% |
Memphis, TN | 9/30/19E (4) | 1 | $ 22,050 | 566,000 | 8.1% |
Total - Subsequent Acquisitions | 15 | $ 95,900 | 2,357,824 |
Dispositions | |||||
Location | Disposition Date | # of Properties | Sale Price | Square Footage | Yield |
Milwaukee, WI | 12/19/2018 | 1 | $ 5,300 | 112,144 | 6.5% |
(1) Represents total direct consideration paid rather than GAAP cost basis.
(2) On July 8, 2019, the Company entered into a purchase and sale agreement to acquire a six-property portfolio in Columbus and Cincinnati, OH. The acquisition is expected to close in mid-August, subject to customary closing conditions.
(3) The Company is finalzing an agreement to acquire a seven-building portfolio in Chicago, IL. The acquisition is expected to close by September 1, 2019, subject to customary closing conditions.
(4) On July 18, 2019, the Company entered into a purchase and sale agreement to acquire a single property in Memphis, TN. The acquisition is expected to close by September 30, 2019, subject to customary closing conditions.
2Q 2019 Supplemental
4
Plymouth Industrial REIT, Inc. | |
Capitalization Analysis | |
Unaudited (in thousands except for per-share data and percentages) |
Three Months Ended | ||||||||
6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | ||||
Common Stock Data | ||||||||
Weighted-Average Shares Outstanding - Basic | 6,836 | 4,728 | 4,696 | 4,351 | 3,400 | |||
Weighted-Average Shares Outstanding - Diluted | 6,836 | 4,728 | 4,696 | 4,351 | 3,400 | |||
High Closing Price | $ 19.48 | $ 16.98 | $ 15.59 | $ 16.41 | $ 17.91 | |||
Low Closing Price | $ 16.55 | $ 13.16 | $ 11.45 | $ 14.63 | $ 15.09 | |||
Average Closing Price | $ 17.77 | $ 15.58 | $ 13.25 | $ 15.72 | $ 16.99 | |||
Closing Price (as of period end) | $ 18.94 | $ 16.82 | $ 12.61 | $ 15.50 | $ 16.00 | |||
Dividends / Share (annualized) (1) | $ 1.50 | $ 1.50 | $ 1.50 | $ 1.50 | $ 1.50 | |||
Dividend Yield (annualized) (2) | 7.9% | 8.9% | 11.9% | 9.7% | 9.4% | |||
Common Shares Outstanding (2) | 8,755 | 5,129 | 4,822 | 4,822 | 3,556 | |||
Market Value of Common Shares (2) | $ 165,816 | $ 86,270 | $ 60,804 | $ 74,739 | $ 56,896 | |||
Total Market Capitalization (2) (3) | $ 458,735 | $ 412,396 | $ 382,462 | $ 360,959 | $ 333,046 | |||
Equity Research Coverage (4) |
D.A. Davidson & Co. | National Securities Corp | Sandler O'Neill & Partners | Wedbush Securities | ||
Barry Oxford | Guarav Mehta | Alexander Goldfarb | Henry Coffey | ||
646.885.5423 | 212.417.8008 | 212.466.7937 | 212.833.1382 |
Investor Conference Call and Webcast:
The Company will hold a conference call and live audio webcast, both open for the general public to hear, on August 8, 2019 at
1:00 p.m. Eastern Time. The number to call for this interactive teleconference is (412) 717-9587. A replay of the call will be
available through August 15, 2019 by dialing (412) 317-0088 and entering the replay access code, 10133773.
(1) Based on annualized dividend declared for the quarter.
(2) Based on closing price and ending shares for the last trading day of the quarter.
(3) Market value of shares plus total debt as of quarter end.
(4) The analysts listed provide research coverage on the Company. Any opinions, estimates or forecasts regarding the Company's performance made by these analysts are theirs alone and do not represent opinions, estimates or forecasts by the Company or its management. The Company does not by reference above imply its endorsement of or concurrence with such information, conclusions or recommendations.
2Q 2019 Supplemental
5
Plymouth Industrial REIT, Inc. | |||
2019 Guidance | |||
Unaudited (in thousands, except per-share amounts) |
Full Year 2019 Range | |||
Low | High | ||
Net loss | $ (1.33) | $ (1.30) | |
Depreciation and amortization | 4.18 | 4.18 | |
Preferred stock dividend | (0.75) | (0.75) | |
FFO attributable to common stockholders and unit holders | $ 2.10 | $ 2.13 | |
Deferred finance fee amortization | 0.13 | 0.13 | |
Non-cash interest & dividends | (0.01) | (0.01) | |
Stock compensation | 0.14 | 0.14 | |
Change in fair value of warrant derivative | 0.01 | 0.02 | |
Straight line rent | (0.06) | (0.07) | |
Above/below market lease rents | (0.14) | (0.16) | |
Recurring capital expenditures | (0.44) | (0.42) | |
AFFO attributable to common stockholders and unit holders | $ 1.73 | $ 1.76 | |
Weighted average common shares and units outstanding | 8,400 | 8,400 | |
2019 Guidance Assumptions | Low | High | |
Total Revenue | $ 71,600 | $ 72,000 | |
NOI | $ 46,850 | $ 47,150 | |
EBITDA | $ 39,400 | $ 39,800 | |
G&A | $ 7,500 | $ 7,100 | |
Recurring CAPEX | $ 3,700 | $ 3,500 | |
Same store occupancy | 95% | 96% |
Assumes the completion of approximately $90.5 million in acquisitions currently under agreement between mid-August 2019 and September 30, 2019 .
2Q 2019 Supplemental
6
Plymouth Industrial REIT, Inc. |
Consolidated Balance Sheets (unaudited) |
(in thousands) |
6/30/2019 | 3/31/19 | 12/31/18 (1) | 9/30/2018 | 6/30/2018 | |
Assets: | |||||
Real estate properties: | |||||
Land | $ 96,139 | $ 93,495 | $ 92,628 | $ 66,563 | $ 63,688 |
Building and improvements | 378,595 | 365,438 | 359,982 | 280,502 | 257,175 |
Less accumulated depreciation | (51,676) | (46,438) | (41,279) | (36,830) | (32,809) |
Total real estate properties, net | $ 423,058 | $ 412,495 | $ 411,331 | $ 310,235 | $ 288,054 |
Cash, cash held in escrow and restricted cash | 24,194 | 14,121 | 14,961 | 11,557 | 12,128 |
Deferred lease intangibles, net | 34,931 | 35,339 | 37,940 | 25,057 | 25,020 |
Other assets | 10,525 | 11,551 | 5,931 | 6,409 | 7,430 |
Total assets | $ 492,708 | $ 473,506 | $ 470,163 | $ 353,258 | $ 332,632 |
Liabilities: | |||||
Debt, net | $ 287,990 | $ 320,799 | $ 317,180 | $ 280,760 | $ 270,597 |
Accounts payable, accrued expenses and other liabilities | 26,577 | 24,870 | 21,996 | 17,101 | 16,864 |
Deferred lease intangibles, net | 6,393 | 6,595 | 7,067 | 6,439 | 6,657 |
Total liabilities | $ 320,960 | $ 352,264 | $ 346,243 | $ 304,300 | $ 294,118 |
Preferred Stock - Series A | $ 48,868 | $ 48,868 | $ 48,868 | $ 48,868 | $ 48,868 |
Preferred Stock - Series B | $ 75,993 | $ 74,092 | $ 72,192 | $ - | $ - |
Equity: | |||||
Common stock | $ 88 | $ 51 | $ 49 | $ 49 | $ 36 |
Additional paid in capital | 177,557 | 125,739 | 126,327 | 129,392 | 114,085 |
Accumulated deficit | (143,406) | (140,929) | (137,983) | (134,283) | (129,982) |
Total stockholders' equity | 34,239 | (15,139) | (11,607) | (4,842) | (15,861) |
Non-controlling interest | 12,648 | 13,421 | 14,467 | 4,932 | 5,507 |
Total equity (deficit) | $ 46,887 | $ (1,718) | $ 2,860 | $ 90 | $ (10,354) |
Total liabilities, preferred stock and equity (deficit) | $ 492,708 | $ 473,506 | $ 470,163 | $ 353,258 | $ 332,632 |
(1) Audited consolidated financial statements and notes for the year ended December 31, 2018 is available within our 2018 Annual Report on Form 10-K.
2Q 2019 Supplemental
7
Plymouth Industrial REIT, Inc. |
Consolidated Statements of Operations - GAAP (unaudited) |
(in thousands, except per-share amounts) |
Three Months Ended | ||||||||
6/30/2019 | 3/31/19 | 12/31/18 (1) | 9/30/2018 | 6/30/2018 | ||||
Revenues: | ||||||||
Rental revenue | $ 12,906 | $ 12,729 | $ 10,387 | $ 8,742 | $ 9,019 | |||
Tenant recoveries | 4,116 | 3,933 | 3,242 | 2,906 | 2,957 | |||
Other revenue | - | - | 8 | 5 | 71 | |||
Total revenues | $ 17,022 | $ 16,662 | $ 13,637 | $ 11,653 | $ 12,047 | |||
Operating expenses: | ||||||||
Property | 6,034 | 6,262 | 4,860 | 4,349 | 3,787 | |||
Depreciation and amortization | 8,476 | 8,432 | 7,553 | 6,249 | 6,444 | |||
General and administrative | 1,691 | 1,646 | 1,733 | 1,394 | 1,533 | |||
Total operating expenses | $ 16,201 | $ 16,340 | $ 14,146 | $ 11,992 | $ 11,764 | |||
Other income (expense): | ||||||||
Gain on sale of real estate | - | - | 1,004 | - | - | |||
Interest expense | (3,576) | (3,842) | (3,957) | (3,575) | (4,216) | |||
Loss on extinguishment of debt | - | - | (988) | (804) | (3,601) | |||
Change in fair value of warrant derivative | (102) | (79) | - | - | - | |||
Total other income (expense) | $ (3,678) | $ (3,921) | $ (3,941) | $ (4,379) | $ (7,817) | |||
Net loss | $ (2,857) | $ (3,599) | $ (4,450) | $ (4,718) | $ (7,534) | |||
Less: Loss attributable to noncontrolling interest | (380) | (653) | (750) | (417) | (829) | |||
Net loss attributable to Plymouth Industrial REIT, Inc. | $ (2,477) | $ (2,946) | $ (3,700) | $ (4,301) | $ (6,705) | |||
Less: Preferred stock dividends | 1,566 | 1,566 | 1,072 | 956 | 956 | |||
Less: Series B preferred stock accretion to redemption value | 1,901 | 1,900 | 359 | - | - | |||
Less: Amount allocated to participating securities | 58 | 57 | 46 | 48 | 46 | |||
Net loss attributable to common stockholders | $ (6,002) | $ (6,469) | $ (5,177) | $ (5,305) | $ (7,707) | |||
Net loss per share attributable to common stockholders | $ (0.88) | $ (1.37) | $ (1.10) | $ (1.22) | $ (2.27) | |||
Weighted-average common shares outstanding basic & diluted | 6,836 | 4,728 | 4,696 | 4,351 | 3,400 | |||
(1) Audited consolidated financial statements and notes for the year ended December 31, 2018 is available within our 2018 Annual Report on Form 10-K.
2Q 2019 Supplemental
8
Plymouth Industrial REIT, Inc. |
Same Store Net Operating Income (NOI) |
Unaudited (in thousands) |
Trailing five quarter same store NOI | Three Months Ended | |||||
6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | ||
Same store properties | 48 | 48 | 48 | 48 | 48 | |
Revenues: | ||||||
Rental income | $ 8,750 | $ 8,589 | $ 8,286 | $ 8,255 | $ 8,579 | |
Tenant recoveries | 3,026 | 2,836 | 2,878 | 2,880 | 2,935 | |
Total operating revenues | $ 11,776 | $ 11,425 | $ 11,164 | $ 11,135 | $ 11,514 | |
Property expenses | $ 4,636 | $ 4,664 | $ 4,342 | $ 4,165 | $ 3,591 | |
Same store net operating income | $ 7,140 | $ 6,761 | $ 6,822 | $ 6,970 | $ 7,923 |
Trailing two quarter same store NOI | Three Months Ended | ||
6/30/2019 | 3/31/2019 | ||
Same store properties | 55 | 55 | |
Revenues: | |||
Rental income | $ 12,705 | $ 12,613 | |
Tenant recoveries | 4,065 | 3,906 | |
Total operating revenues | $ 16,770 | $ 16,519 | |
Property expenses | $ 5,997 | $ 6,210 | |
Same store net operating income | $ 10,773 | $ 10,309 |
2Q 2019 Supplemental
9
Plymouth Industrial REIT, Inc. |
NOI |
Unaudited (in thousands) |
Three Months Ended | ||||||
6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | ||
Net loss | $ (2,857) | $ (3,599) | $ (4,450) | $ (4,718) | $ (7,534) | |
General and administrative | 1,691 | 1,646 | 1,733 | 1,394 | 1,533 | |
Depreciation and amortization | 8,476 | 8,432 | 7,553 | 6,249 | 6,444 | |
Interest expense | 3,576 | 3,842 | 3,957 | 3,575 | 4,216 | |
Loss on extinguishment of debt | - | - | 988 | 804 | 3,601 | |
Change in fair value of warrant derivative | 102 | 79 | - | - | - | |
Gain on sale of real estate | - | - | (1,004) | - | - | |
Other expense (income) | - | - | (8) | (5) | (71) | |
Net Operating Income | $ 10,988 | $ 10,400 | $ 8,769 | $ 7,299 | $ 8,189 |
2Q 2019 Supplemental
10
Plymouth Industrial REIT, Inc. |
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) |
Unaudited (in thousands) |
Three Months Ended | ||||||
6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | ||
Net loss | $ (2,857) | $ (3,599) | $ (4,450) | $ (4,718) | $ (7,534) | |
Depreciation and amortization | 8,476 | 8,432 | 7,553 | 6,249 | 6,444 | |
Interest expense | 3,576 | 3,842 | 3,957 | 3,575 | 4,216 | |
Gain on sale of real estate | - | - | (1,004) | - | - | |
Loss on extinguishment of debt | - | - | 988 | 804 | 3,601 | |
EBITDA | $ 9,195 | $ 8,675 | $ 7,044 | $ 5,910 | $ 6,727 |
2Q 2019 Supplemental
11
Plymouth Industrial REIT, Inc. |
Funds from Operations (FFO) & Adjusted Funds from Operations (AFFO) |
Unaudited (in thousands, except per-share amounts) |
Three Months Ended | ||||||
6/30/2019 | 3/31/2019 | 12/31/2018 | 9/30/2018 | 6/30/2018 | ||
Net loss | $ (2,857) | $ (3,599) | $ (4,450) | $ (4,718) | $ (7,534) | |
Depreciation and amortization | 8,476 | 8,432 | 7,553 | 6,249 | 6,444 | |
Loss on extinguishment of debt | - | - | 988 | 804 | 3,601 | |
Gain on sale of real estate | - | - | (1,004) | - | - | |
FFO | $ 5,619 | $ 4,833 | $ 3,087 | $ 2,335 | $ 2,511 | |
Preferred stock dividends | (1,566) | (1,566) | (1,072) | (956) | (956) | |
FFO attributable to common stockholders and unit holders | $ 4,053 | $ 3,267 | $ 2,015 | $ 1,379 | $ 1,555 | |
Deferred finance fee amortization | 273 | 235 | 290 | 338 | 466 | |
Non-cash interest expense | (62) | (31) | 14 | (164) | 560 | |
Stock compensation | 305 | 288 | 203 | 203 | 200 | |
Change in fair value of warrant derivative | 102 | 79 | - | - | - | |
Straight line rent | (223) | (258) | (71) | (107) | (461) | |
Above/below market lease rents | (344) | (341) | (340) | (247) | (306) | |
Recurring capital expenditures (1) | (687) | (559) | (767) | (598) | (350) | |
AFFO | $ 3,417 | $ 2,680 | $ 1,344 | $ 804 | $ 1,664 | |
Weighted average common shares and units outstanding | 8,037 | 5,917 | 5,774 | 4,898 | 3,977 | |
FFO attributable to common stockholders and unit holders per share | $ 0.50 | $ 0.55 | $ 0.35 | $ 0.28 | $ 0.39 | |
AFFO attributable to common stockholders and unit holders per share | $ 0.43 | $ 0.45 | $ 0.23 | $ 0.16 | $ 0.42 |
(1) Excludes non-recurring capital expenditures of $635, $1,053, $777, $576 and $874 for the three months ending June 30, March 31, 2019, December 31, September 30 and June 30, 2018, respectively.
2Q 2019 Supplemental
12
Plymouth Industrial REIT, Inc. | |
Debt Overview | |
Unaudited ($ in thousands) at 6/30/2019 |
Debt Instrument - Secured Facility | Maturity | Rate | Rate Type | Properties Encumbered | Balance | % of Total Debt | |
$45.0 million line of credit (3) | August-20 | 5.4%(1) | Floating | 9 | $ - | 0.0% | |
$120.0 million AIG Loan | October-23 | 4.08% | Fixed | 20 | $ 120,000 | 41.0% | |
$21.5 million Minnesota Life Loan | May-28 | 3.78% | Fixed | 7 | $ 21,435 | 7.3% | |
$78.0 million Transamerica Loan | August-28 | 4.35% | Fixed | 17 | $ 74,620 | 25.5% | |
$13.9 million Fisher Park Mortgage | January-27 | 5.23% | Fixed | 1 | $ 13,749 | 4.7% | |
$63.1 million Allianz Loan | April-26 | 4.07% | Fixed | 3 | $ 63,115 | 21.5% | |
57 | $ 292,919 | 100.0% |
Fixed Debt ($ in thousands) at 6/30/2019 | ||||
Total fixed debt | $ 292,919 | |||
Weighted average interest rate of fixed debt | 4.18% | |||
Balance Sheet ($ in thousands) at 6/30/2019 | ||||
Cash | $ 24,194 | |||
Gross Assets (2) | $ 572,173 | |||
Total Debt | $ 292,919 | |||
Net Debt | $ 268,725 |
(1) Interest rate applicable at June 30, 2019. Borrowings under the Line of Credit Agreement bear interest at either (1) the base rate (determined from the highest of (a) KeyBank’s prime rate, (b) the federal funds rate plus 0.50% and (c) the one month LIBOR rate plus 1.0%) or (2) LIBOR, plus, in either case, a spread between 250 and 300 basis points depending on our total leverage ratio.
(2) The carrying amount of total assets plus accumulated depreciation and amortization, as reported in the Company's consolidated financial statements.
(3) On August 7, 2019, the Company entered in an amended and restated credit agreement to our Line of Credit Agreement with KeyBank National Association to increase our revolving credit facility to $100,000 with the ability to increase up to $200,000, subject to certain conditions. The amended and restated credit agreement extends the term of the Line of Credit Agreement to August 2023 with an optional extension through August 2024. The amended and restated credit agreement bear interest at either (1) the base rate (determined from the highest of (a) KeyBank’s prime rate, (b) the federal funds rate plus 0.50% and (c) the one month LIBOR rate plus 1.0%) or (2) LIBOR, plus, in either case, a spread between 200 and 250 basis points depending on our total leverage ratio.
2Q 2019 Supplemental
13
Plymouth Industrial REIT, Inc. |
Property Overview - Square Feet & Occupancy |
Unaudited ($ in thousands) at 6/30/19 |
Property | Market | Rentable Square Feet | Leased Square Feet | Occupancy | |
32 Dart Road | Atlanta | 194,800 | 194,800 | 100.0% | |
1665 Dogwood Drive SW | Atlanta | 198,000 | 198,000 | 100.0% | |
1715 Dogwood Drive | Atlanta | 100,000 | 100,000 | 100.0% | |
11236 Harland Drive | Atlanta | 32,361 | 32,361 | 100.0% | |
Subtotal - Atlanta | 525,161 | 525,161 | 100.0% | ||
11351 W 183rd Street | Chicago | 18,768 | 18,768 | 100.0% | |
11601 Central Avenue | Chicago | 260,000 | 260,000 | 100.0% | |
13040 South Pulaski Avenue | Chicago | 395,466 | 395,466 | 100.0% | |
1355 Holmes Road | Chicago | 82,456 | 82,456 | 100.0% | |
13970 West Laurel Drive | Chicago | 70,196 | 70,196 | 100.0% | |
1455-1645 Greenleaf Avenue | Chicago | 150,000 | 150,000 | 100.0% | |
1600 Fleetwood Drive | Chicago | 247,000 | 247,000 | 100.0% | |
1750 South Lincoln Drive | Chicago | 499,200 | 499,200 | 100.0% | |
1796 Sherwin Avenue | Chicago | 98,879 | 98,879 | 100.0% | |
1875 Holmes Road | Chicago | 134,415 | 134,415 | 100.0% | |
189 Seegers Road | Chicago | 25,000 | 25,000 | 100.0% | |
2401 Commerce Drive | Chicago | 78,574 | 78,574 | 100.0% | |
28160 North Keith Drive | Chicago | 77,924 | 77,924 | 100.0% | |
3 West College Drive | Chicago | 33,263 | 33,263 | 100.0% | |
3841-3865 Swanson Court | Chicago | 99,625 | 99,625 | 100.0% | |
3940 Stern Avenue | Chicago | 146,798 | 146,798 | 100.0% | |
440 South McLean | Chicago | 74,613 | 74,613 | 100.0% | |
6000 West 73rd Street | Chicago | 148,091 | 148,091 | 100.0% | |
6510 West 73rd Street | Chicago | 306,552 | 306,552 | 100.0% | |
6558 West 73rd Street | Chicago | 301,000 | 301,000 | 100.0% | |
6751 Sayre Avenue | Chicago | 242,690 | 242,690 | 100.0% | |
7200 Mason Ave | Chicago | 207,345 | 207,345 | 100.0% | |
144 Tower Road | Chicago | 73,785 | 71,709 | 97.2% | |
5110 South 6th Street | Milwaukee | 58,500 | 58,500 | 100.0% | |
Subtotal - Chicago | 3,830,140 | 3,828,064 | 99.9% | ||
Mosteller Distribution Center | Cincinnati | 358,386 | 358,386 | 100.0% | |
4115 Thunderbird Lane | Cincinnati | 70,000 | 70,000 | 100.0% | |
Fisher Industrial Park | Cincinnati | 1,071,600 | 1,003,084 | 93.6% | |
Subtotal - Cincinnati | 1,499,986 | 1,431,470 | 95.4% | ||
1755 Enterprise Parkway | Cleveland | 255,570 | 235,370 | 92.1% | |
30339 Diamond Parkway | Cleveland | 400,184 | 400,184 | 100.0% | |
Subtotal - Cleveland | 655,754 | 635,554 | 96.9% | ||
2Q 2019 Supplemental
14
Plymouth Industrial REIT, Inc. |
Property Overview - Square Feet & Occupancy |
Unaudited ($ in thousands) at 6/30/19 |
Property | Market | Rentable Square Feet | Leased Square Feet | Occupancy |
3500 Southwest Boulevard | Columbus | 527,127 | 527,127 | 100.0% | |
3100 Creekside Parkway | Columbus | 340,000 | 141,000 | 41.5% | |
8288 Green Meadows Dr. | Columbus | 300,000 | 300,000 | 100.0% | |
8273 Green Meadows Dr. | Columbus | 77,271 | 77,271 | 100.0% | |
7001 American Pkwy | Columbus | 54,100 | 54,100 | 100.0% | |
2120 - 2138 New World Drive | Columbus | 121,200 | 121,200 | 100.0% | |
Subtotal - Columbus | 1,419,698 | 1,220,698 | 86.0% | ||
3035 North Shadeland Ave | Indianapolis | 562,497 | 510,454 | 90.7% | |
3169 North Shadeland Ave | Indianapolis | 44,374 | 41,960 | 94.6% | |
5861 W Cleveland Road | South Bend | 62,550 | 62,550 | 100.0% | |
West Brick Road | South Bend | 101,450 | 101,450 | 100.0% | |
4491 N Mayflower Road | South Bend | 77,000 | 77,000 | 100.0% | |
5855 West Carbonmill Road | South Bend | 198,000 | 198,000 | 100.0% | |
4955 Ameritech Drive | South Bend | 228,000 | 228,001 | 100.0% | |
4430 Sam Jones Expressway | Indianapolis | 484,879 | 484,879 | 100.0% | |
Subtotal - Indianapolis/South Bend | 1,758,750 | 1,704,294 | 96.9% | ||
Center Point Business Park | Jacksonville | 537,800 | 502,000 | 93.3% | |
Liberty Business Park | Jacksonville | 426,916 | 426,918 | 100.0% | |
Salisbury Business Park | Jacksonville | 168,800 | 168,800 | 100.0% | |
Subtotal - Jacksonville | 1,133,516 | 1,097,718 | 96.8% | ||
6005, 6045 & 6075 Shelby Dr. | Memphis | 202,303 | 202,303 | 100.0% | |
210 American Dr. | Jackson | 638,400 | 638,400 | 100.0% | |
3635 Knight Road | Memphis | 131,904 | 131,904 | 100.0% | |
Business Park Drive | Memphis | 235,006 | 130,837 | 55.7% | |
Subtotal - Memphis/Jackson | 1,207,613 | 1,103,444 | 91.4% | ||
7585 Empire Drive | Florence, KY | 148,415 | 148,415 | 100.0% | |
56 Milliken Road | Portland, ME | 200,625 | 200,625 | 100.0% | |
4 East Stow Road | Marlton, NJ | 156,279 | 156,280 | 100.0% | |
Subtotal - Others | 505,319 | 505,320 | 100.0% | ||
Total - All Properties | 12,535,937 | 12,051,723 | 96.1% |
2Q 2019 Supplemental
15
Plymouth Industrial REIT, Inc. |
Market Summary |
Unaudited (SF and $ in thousands) (at 6/30/2019) |
Geography | State | Properties | Total Acquisition Cost (1) | Gross Real Estate Assets (2) | % Gross Real Estate Assets | |
Atlanta | GA | 4 | $ 17,045 | $ 15,891 | 3.4% | |
Chicago | IL, WI | 24 | 155,335 | 145,364 | 30.6% | |
Cincinnati | OH | 3 | 39,700 | 35,675 | 7.5% | |
Cleveland | OH | 2 | 42,000 | 40,220 | 8.5% | |
Columbus | OH | 6 | 50,982 | 48,930 | 10.3% | |
Indianapolis/South Bend | IN | 8 | 60,550 | 53,766 | 11.3% | |
Jacksonville | FL | 3 | 97,100 | 86,398 | 18.2% | |
Memphis/Jackson | TN | 4 | 31,608 | 26,872 | 5.7% | |
Other | Various | 3 | 24,000 | 21,122 | 4.5% | |
Total | 57 | $ 518,320 | $ 474,238 | 100% |
(1) Represents total direct consideration paid prior to the allocations per US GAAP.
(2) The gross book value of real estate assets as of June 30, 2019 excluding $496 in leasehold improvements and assets related to Corporate. Gross book value of real estate assets excludes depreciation and the allocation of the acquisition cost towards intangible asset and liabilities required by US GAAP.
2Q 2019 Supplemental
16
Plymouth Industrial REIT, Inc. |
Leasing Activity |
Year | Type | Square Footage | Percent | Expiring Rent | New Rent | % Change | Tenant Improvements $/SF/YR | Lease Commissions $/SF/YR |
2017 | Renewals | 234,679 | 84.1% | $ 4.25 | $ 4.51 | 6.2% | $ 0.07 | $ 0.13 |
New Leases | 44,268 | 15.9% | $ 2.16 | $ 3.00 | 38.7% | $ 0.41 | $ 0.27 | |
Total | 278,947 | 100% | $ 3.92 | $ 4.27 | 9.1% | $ 0.13 | $ 0.15 | |
2018 | Renewals | 482,067 | 33.2% | $ 5.84 | $ 5.57 | -4.6% | $ 0.24 | $ 0.13 |
New Leases | 969,207 | 66.8% | $ 2.85 | $ 3.31 | 16.4% | $ 0.39 | $ 0.21 | |
Total | 1,451,274 | 100% | $ 3.84 | $ 4.06 | 5.7% | $ 0.34 | $ 0.18 | |
Q1 2019 | Renewals | 545,684 | 98.6% | $ 3.18 | $ 3.63 | 14.2% | $ 0.16 | $ 0.11 |
New Leases | 8,000 | 1.4% | $ 6.30 | $ 6.50 | 3.2% | $ - | $ 0.40 | |
Total | 553,684 | 100% | $ 3.22 | $ 3.67 | 14.0% | $ 0.16 | $ 0.11 | |
Q2 2019 | Renewals | 252,826 | 44.1% | $ 4.87 | $ 4.95 | 1.6% | $ 0.30 | $ 0.11 |
New Leases | 320,232 | 55.9% | $ 2.64 | $ 3.11 | 17.8% | $ 0.27 | $ 0.17 | |
Total | 573,058 | 100% | $ 3.62 | $ 3.92 | 8.3% | $ 0.28 | $ 0.14 | |
2Q 2019 Supplemental
17
Plymouth Industrial REIT, Inc. |
Lease Expiration Schedule |
Unaudited ($ in thousands) (at 6/30/2019) |
Year | Square Footage | Annualized Base Rent (ABR) (1) | % of Annual Base Rent Expiring (2) |
Available | 484,214 | $ - | - |
2019 | 955,745 | 4,024 | 8.2% |
2020 | 1,287,452 | 6,285 | 12.8% |
2021 | 2,939,139 | 12,421 | 25.3% |
2022 | 1,433,719 | 6,762 | 13.8% |
2023 | 1,130,618 | 4,152 | 8.5% |
Thereafter | 4,305,050 | 15,468 | 31.4% |
Total | 12,535,937 | $ 49,112 | 100% |
(1) Annualized base rent is calculated as monthly contracted base rent per the terms of such lease, as of June 30, 2019, multiplied by 12. Excludes rent abatements.
(2) Calculated as annualized base rent set forth in this table divided by total annualized base rent for the Company Portfolio as of June 30, 2019.
2Q 2019 Supplemental
18
Plymouth Industrial REIT, Inc. |
Glossary |
Non-GAAP Financial Measures Definitions:
Net Operating Income (NOI): We consider net operating income, or NOI, to be an appropriate supplemental measure to net income because it helps both investors and management understand the core operations of our properties. We define NOI as total revenue (including rental revenue, tenant reimbursements, management, leasing and development services revenue and other income) less property-level operating expenses including allocated overhead. NOI excludes depreciation and amortization, general and administrative expenses, impairments, gain/loss on sale of real estate, interest expense, and other non-operating items.
EBITDA: We believe that earnings before interest, taxes, depreciation and amortization, or EBITDA, is helpful to investors as a supplemental measure of our operating performance as a real estate company because it is a direct measure of the actual operating results of our industrial properties. We also use this measure in ratios to compare our performance to that of our industry peers.
Funds From Operations attributable to common stockholders and unit holders (“FFO”): Funds from operations, or FFO, is a non-GAAP financial measure that is widely recognized as a measure of REIT operating performance. We consider FFO to be an appropriate supplemental measure of our operating performance as it is based on a net income analysis of property portfolio performance that excludes non-cash items such as depreciation. The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time. Since real estate values rise and fall with market conditions, presentations of operating results for a REIT, using historical accounting for depreciation, could be less informative. We define FFO, consistent with the National Association of Real Estate Investment Trusts, or NAREIT, definition, as net income, computed in accordance with GAAP, excluding gains (or losses) from sales of property, depreciation and amortization of real estate assets, impairment losses, loss on extinguishment of debt and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect FFO on the same basis. Other equity REITs may not calculate FFO as we do, and, accordingly, our FFO may not be comparable to such other REITs’ FFO. FFO should not be used as a measure of our liquidity, and is not indicative of funds available for our cash needs, including our ability to pay dividends. FFO attributable to common stockholders and unit holders represents FFO reduced by dividends paid (or declared) to holders of our preferred stock.
In December 2018, NAREIT issued a white paper restating the definition of FFO. The purpose of the restatement was not to change the fundamental definition of FFO, but to clarify existing NAREIT guidance. The restated definition of FFO is a follows: Net Income (calculated in accordance with GAAP), excluding: (i) Depreciation and amortization related to real estate, (ii) Gains and losses from the sale of certain real estate assets, (iii) Gain and losses from change in control, and (iv) Impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. This restated definition does not give reference to the add back of loss on extinguishment of debt. Commencing on January 1, 2019, we adopted the restated definition of NAREIT FFO on a prospective basis and will exclude the add back of loss on debt extinguishment.
Adjusted Funds From Operations attributable to common stockholders and unit holders (“AFFO”): Adjusted funds from operation, or AFFO, is presented in addition to FFO. AFFO is defined as FFO, excluding certain non-cash operating revenues and expenses, acquisition and transaction related costs for transactions not completed and recurring capitalized expenditures. Recurring capitalized expenditures includes expenditures required to maintain and re-tenant our properties, tenant improvements and leasing commissions. AFFO further adjusts FFO for certain other non-cash items, including the amortization or accretion of above or below market rents included in revenues, straight line rent adjustments, impairment losses, non-cash equity compensation and non-cash interest expense. We believe AFFO provides a useful supplemental measure of our operating performance because it provides a consistent comparison of our operating performance across time periods that is comparable for each type of real estate investment and is consistent with management’s analysis of the operating performance of our properties. As a result, we believe that the use of AFFO, together with the required GAAP presentations, provide a more complete understanding of our operating performance. As with FFO, our reported AFFO may not be comparable to other REITs’ AFFO, should not be used as a measure of our liquidity, and is not indicative of our funds available for our cash needs, including our ability to pay dividends.
Other Definitions:
GAAP: U.S generally accepted accounting principles.
Gross Assets: the carrying amount of total assets plus accumulated depreciation and amortization, as reported in the Company’s consolidated financial statements. For gross assets as of June 30, 2019 the calculation is as follows:
6/30/2019 | |
Total Assets | $492,708 |
Add back accumulated depreciation | 51,676 |
Add back intangible asset amortization | 27,789 |
Gross assets | $572,173 |
Non-Recurring Capital Expenditures: Non-recurring capital expenditures include capital expenditures of long lived improvements required to upgrade/replace existing systems or items that previously did not exist.
Occupancy: We define occupancy as the percentage of total leasable square footage in which either the sooner of lease term commencement or revenue recognition in accordance to GAAP has commenced as of the close of the reporting period.
Recurring Capital Expenditures: Recurring capitalized expenditures includes capital expenditures required to maintain and re-tenant our properties, tenant improvements and leasing commissions.
Same Store Portfolio: Our Same Property Portfolio is a subset of our consolidated portfolio and includes properties that were wholly-owned by us for the entire period presented. The trailing 5 quarters same store portfolio includes properties owned as of April 1, 2018, and still owned by us as of June 30, 2019. Therefore, we excluded from our Same Store Portfolio any properties that were acquired or sold during the period from April 1, 2018 through June 30, 2019. The trailing 2 quarters same store portfolio includes properties owned as of January 1, 2019, and still owned by us as of June 30, 2019. Therefore, we excluded from our Same Store Portfolio any properties that were acquired or sold during the period from January 1, 2019 through June 30, 2019. The Company's computation of same store NOI may not be comparable to other REITs.
Weighted average lease term remaining: The average contractual lease term remaining as of the close of the reporting period (in years) weighted by square footage.
2Q 2019 Supplemental
19