Exhibit 99.3
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, 2019 is presented to reflect adjustments to the Company’s historical balance sheet as if the Company’s Shadeland Commerce Center Portfolio and 7901 West 21st St. acquisitions were completed on September 30, 2019. The unaudited pro forma condensed consolidated statements of operations for the nine months ended September 30, 2019 and for the year ended December 31, 2018 are presented as if the Shadeland Commerce Center Portfolio and 7901 West 21st St. acquisitions were completed on January 1, 2018.
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, 2019 and for the nine months ended September 30, 2019 and (ii) our condensed consolidated financial statements for the twelve months ended December 31, 2018 in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2019.
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, 2019 assuming the Shadeland Commerce Center Portfolio and 7901 West 21st St. acquisitions had been completed on September 30, 2019, what actual results of operations would have been for the nine months ended September 30, 2019 and the year ended December 31, 2018 assuming the Shadeland Commerce Center Portfolio and 7901 West 21st St. acquisitions were completed on January 1, 2018, 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, 2019
(Unaudited and in thousands)
| Plymouth Industrial REIT, Inc. | Shadeland
Commerce Center | 7901 West St. | Company Pro Forma | |||||||||||||
| (A) | (B) | (C) | ||||||||||||||
| Assets | ||||||||||||||||
| Real estate properties | $ | 565,394 | 50,138 | $ | 12,201 | $ | 627,733 | |||||||||
| Less accumulated depreciation | (57,331 | ) | — | — | (57,331 | ) | ||||||||||
| Real estate properties, net | 508,063 | 50,138 | 12,201 | 570,402 | ||||||||||||
| Cash | 25,720 | (8,038 | ) | (12,201 | ) | 5,481 | ||||||||||
| Cash held in escrow | 8,571 | — | — | 8,571 | ||||||||||||
| Restricted cash | 2,510 | — | 2,510 | |||||||||||||
| Deferred leasing intangibles, net | 45,768 | — | — | 45,768 | ||||||||||||
| Other assets | 11,214 | — | — | 11,214 | ||||||||||||
| Total assets | $ | 601,846 | $ | 42,100 | $ | — | $ | 643,946 | ||||||||
| Liabilities, Series A preferred stock and equity (deficit) | ||||||||||||||||
| Liabilities | ||||||||||||||||
| Secured debt, net | $ | 319,448 | $ | — | $ | — | $ | 319,448 | ||||||||
| Borrowings under line of credit, net | — | 42,100 | — | 42,100 | ||||||||||||
| Accounts payable, accrued expenses and other liabilities | 32,222 | — | — | 32,222 | ||||||||||||
| Deferred lease intangibles, net | 7,579 | — | — | 7,579 | ||||||||||||
| Total liabilities | 359,249 | 42,100 | — | 401,349 | ||||||||||||
| Preferred stock Series A | 48,868 | — | — | 48,868 | ||||||||||||
| Preferred stock Series B | 77,893 | — | — | 77,893 | ||||||||||||
| Equity | ||||||||||||||||
| Common stock | 134 | — | 134 | |||||||||||||
| Additional paid in capital | 249,827 | — | — | 249,827 | ||||||||||||
| Accumulated deficit | (146,072 | ) | — | — | (146,072 | ) | ||||||||||
| Total Plymouth Industrial REIT, Inc. stockholders' equity | 103,889 | — | — | 103,889 | ||||||||||||
| Non-controlling interest | 11,947 | — | — | 11,947 | ||||||||||||
| Total equity | 115,836 | — | — | 115,836 | ||||||||||||
| Total liabilities, preferred stock, and equity | $ | 601,846 | $ | 42,100 | $ | — | $ | 643,946 | ||||||||
Pro Forma Condensed Consolidated Statement of Operations
For the Nine Months Ended September 30, 2019
(Unaudited and in thousands except for share and per share amounts)
| Plymouth Industrial REIT, Inc. | Shadeland
Commerce Center | 7901 West St. | Company Pro Forma Adjustments | Company Pro Forma | ||||||||||||||||
| (A) | (B) | (C) | ||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Rental revenue | $ | 52,807 | $ | 5,137 | $ | 983 | $ | 116 | (D) | $ | 59,043 | |||||||||
| Other revenue | — | — | — | — | — | |||||||||||||||
| Total revenues | 52,807 | 5,137 | 983 | 116 | 59,043 | |||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Property | 19,216 | 1,904 | 266 | — | 21,386 | |||||||||||||||
| Depreciation and amortization | 26,307 | — | — | 4,729 | (E) | 31,036 | ||||||||||||||
| General and administrative | 5,472 | — | — | — | 5,472 | |||||||||||||||
| Total Operating expenses | 50,995 | 1,904 | 266 | 4,729 | 57,894 | |||||||||||||||
| Other income (expense): | ||||||||||||||||||||
| Interest expense | (11,061 | ) | — | — | (1,386 | )(E) | (12,447 | ) | ||||||||||||
| Change in fair value of warrant derivative | (181 | ) | — | — | — | (181 | ) | |||||||||||||
| Total other income (expense) | (11,242 | ) | — | — | (1,386 | ) | (12,628 | ) | ||||||||||||
| Net income (loss) | (9,430 | ) | 3,233 | 717 | (5,999 | ) | (11,479 | ) | ||||||||||||
| Net income (loss) attributable to non-controlling interest | (1,341 | ) | — | — | (285 | )(F) | (1,626 | ) | ||||||||||||
| Net income (loss) attributable to Plymouth Industrial REIT, Inc. | (8,089 | ) | 3,233 | 717 | (5,714 | ) | (9,853 | ) | ||||||||||||
| Less: preferred stock dividends | 4,698 | — | — | — | 4,698 | |||||||||||||||
| Less: series B preferred stock accretion to redemption value | 5,701 | — | — | — | 5,701 | |||||||||||||||
| Less: amount allocated to participating securities | 177 | — | — | — | 177 | |||||||||||||||
| Net income (loss) attributable to common stockholders | (18,665 | ) | 3,233 | 717 | (5,714 | ) | (20,429 | ) | ||||||||||||
| Net income (loss) per share attributable to common stockholders | $ | (2.73 | ) | $ | (2.98 | ) | ||||||||||||||
| Weighted-average common shares outstanding | 6,847,950 | 6,847,950 | ||||||||||||||||||
Pro Forma Condensed Consolidated Statement of Operations
For the Year Ended December 31, 2018
(Unaudited and in thousands except for share and per share amounts)
| Plymouth Industrial REIT, Inc. | Shadeland Commerce Center | 7901 West St. | Company Pro Forma Adjustments | Company Pro Forma | ||||||||||||||||
| (A) | (B) | (C) | ||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Rental revenue | $ | 48,683 | $ | 6,422 | 1,273 | $ | 271 | (D) | $ | 56,649 | ||||||||||
| Other revenue | 534 | — | — | 534 | ||||||||||||||||
| Total revenues | 49,217 | 6,422 | 1,273 | 271 | 57,183 | |||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Property | 17,449 | 2,312 | 354 | — | 20,115 | |||||||||||||||
| Depreciation and amortization | 26,788 | — | 6,305 | (E) | 33,093 | |||||||||||||||
| General and administrative | 6,032 | — | — | 6,032 | ||||||||||||||||
| Total Operating expenses | 50,269 | 2,312 | 354 | 6,305 | 59,240 | |||||||||||||||
| Other income (expense): | ||||||||||||||||||||
| Interest expense | (15,734 | ) | — | — | (2,273 | )(E) | (18,007 | ) | ||||||||||||
| Loss on extinguishment of debt | (5,393 | ) | — | — | — | (5,393 | ) | |||||||||||||
| Gain on sale of real estate | 1,004 | — | — | — | 1,004 | |||||||||||||||
| Total other income (expense) | (20,123 | ) | — | — | (2,273 | ) | (22,396 | ) | ||||||||||||
| Net income (loss) | (21,175 | ) | 4,110 | 919 | (8,307 | ) | (24,453 | ) | ||||||||||||
| Net income (loss) attributable to non-controlling interest | (2,459 | ) | (386 | )(F) | (2,845 | ) | ||||||||||||||
| Net income (loss) attributable to Plymouth Industrial REIT, Inc. | (18,716 | ) | 4,110 | 919 | (7,921 | ) | (21,608 | ) | ||||||||||||
| Less: preferred stock dividends | 3,940 | — | — | — | 3,940 | |||||||||||||||
| Less: series B preferred stock accretion to redemption value | 359 | — | — | — | 359 | |||||||||||||||
| Less: amount allocated to participating securities | 201 | — | — | — | 201 | |||||||||||||||
| Net income (loss) attributable to common stockholders | (23,216 | ) | 4,110 | 919 | (7,921 | ) | (26,108 | ) | ||||||||||||
| Net income (loss) per share attributable to common stockholders | $ | (5.76 | ) | $ | (6.48 | ) | ||||||||||||||
| Weighted-average common shares outstanding | 4,027,329 | 4,027,329 | ||||||||||||||||||
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, 2019
(A) Reflects the historical Condensed Consolidated Balance Sheet of Plymouth Industrial REIT, Inc. as of September 30, 2019
(B) Reflects the $50,138 acquisition of Shadeland Commerce Center 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.
(C) Reflects the $12,201 acquisition of 7901 West 21st St. 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, 2019
(A) Reflects the historical Condensed Consolidated Statement of Operations of Plymouth Industrial REIT, Inc. for the nine months ended September 30, 2019.
(B) Reflects the results of operations related to the acquisition of the Shadeland Commerce Center as reflected in the Statements of Revenues and Certain Operating Expenses included herein.
(C) Reflects the results of operations related to the acquisition of 7901 West 21st St. as reflected in the Statements of Revenues and Certain Operating Expenses included herein.
(D) Represents the effect on rental revenue of the acquisitions described in Notes (B) and (C) for non-cash straight line rent adjustments for the nine months ended September 30, 2019.
(E) Reflects the effect of the acquisitions described in Notes (B) and (C) for depreciation and amortization expense and interest expense for the nine months ended September 30, 2019.
(F) Reflects the effect of the acquisitions described in Notes (B) and (C) for net loss attributable to non-controlling interest for the nine months ended September 30, 2019.
3. Notes to the Unaudited Pro Forma Condensed Consolidated Statement of Operations for the year ended December 31, 2018
(A) Reflects the historical Condensed Consolidated Statement of Operations of Plymouth Industrial REIT, Inc. for the year ended December 31, 2018.
(B) Reflects the results of operations related to the acquisition of the Shadeland Commerce Center as reflected in the Statements of Revenues and Certain Operating Expenses included herein.
(C) Reflects the results of operations related to the acquisition of 7901 West 21st St. as reflected in the Statements of Revenues and Certain Operating Expenses included herein.
(D) Represents the effect on rental revenue of the acquisitions described in Notes (B) and (C) for non-cash straight line rent adjustments for the year ended December 31, 2018.
(E) Reflects the effect of the acquisitions described in Notes (B) and (C) for depreciation and amortization expense and interest expense for the year ended December 31, 2018.
(F) Reflects the effect of the acquisitions described in Notes (B) and (C) for net loss attributable to non-controlling interest for the year ended December 31, 2018.