Exhibit 99.2

 

 

 

Third Quarter 2021

Supplemental

 

 

 

 

 

 

 

 

 
Plymouth Industrial REIT, Inc.
Table of Contents
                         
Introduction    
Executive Summary   2
Management, Board of Directors, Investor Relations, and Equity Coverage   2
Portfolio Statistics   3
Acquisition Activity   3
Select Recent Acquisitions   4
Value Creation   5
Replacement Cost Analysis   5
Rent Collections and Deferrals   6
Guidance   7
Financial Information    
Same Store Net Operating Income (NOI)   8
Consolidated Statements of Operations   9
Consolidated NOI   10
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre)   10
Funds from Operations (FFO), Core FFO & Adjusted Funds from Operations (AFFO)   10
Consolidated Balance Sheets   11
Capital Structure and Debt Summary   12
Capital Markets Activity   12
Unconsolidated Joint Venture   13
Net Asset Value Components   14
Operational & Portfolio Information    
Leasing Activity   15
Lease Expiration Schedule   15
Leased Square Feet and Annualized Base Rent by Tenant Industry   16
Leased Square Feet and Annualized Base Rent by Type   17
Top 10 Tenants by Annualized Base Rent   18
Lease Segmentation by Size   18
Rentable Square Feet and Annualized Base Rent by Market   19
Total Acquisition Cost by Market   19
Appendix    
Glossary   20
     

 

Forward-Looking Statements: This Supplemental Information contains forward-looking statements within the meaning of the U.S. federal securities laws. We make statements in this Supplemental Information 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. Additionally, unforeseen factors emerge from time to time, and we cannot predict which factors will arise or their ultimate impact on our business or the extent to which any such factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. One of these factors is the outbreak of the novel coronavirus (COVID-19), the impact of which is difficult to fully assess at this time due to, among other factors, uncertainty regarding the severity and duration of the outbreak domestically and internationally and the effectiveness of efforts to contain the spread of the virus and its resulting direct and indirect impact on the U.S. economy and economic activity. 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 Information, including certain non-GAAP financial measures, refer to the Glossary on pages 20-21. For reconciliations of the non-GAAP financial measures to the most directly comparable U.S. GAAP measures, refer to page 10.

 

 

 
Plymouth Industrial REIT, Inc.
Executive Summary
 
Company overview: Plymouth Industrial REIT, Inc. (NYSE: PLYM) is a real estate investment trust focused on the acquisition, ownership, and management of single and multi-tenant industrial properties, including distribution centers, warehouses, light industrial and small bay industrial properties, located in primary and secondary markets within the main industrial, distribution and logistics corridors of the United States.
 
Management, Board of Directors, Investor Relations, and Equity Coverage

 

Corporate   Investor Relations   Transfer Agent      
                 
20 Custom House Street, 11th Floor   Tripp Sullivan   Continental Stock Transfer & Trust Company  
Boston, Massachusetts 02110     SCR Partners   1 State Street, 30th Floor      
617.340.3814     615.942.7077   New York, NY 10004      
www.plymouthreit.com     IR@plymouthreit.com   212.509.4000      
                 
Executive Management
                 
Jeffrey E. Witherell     Pendleton P. White, Jr.   Daniel C. Wright   James M. Connolly  
Chief Executive Officer     President and Chief Investment   Executive Vice President   Executive Vice President  
and Chairman     Officer   and Chief Financial Officer   Asset Management  
                 
Board of Directors
                 
Martin Barber   Philip S. Cottone   Richard J. DeAgazio   David G. Gaw  
Independent Director   Independent Director   Independent Director   Lead Independent Director  
                 
John W. Guinee   Caitlin Murphy   Pendleton P. White, Jr.   Jeffrey E. Witherell  
Independent Director     Independent Director   President and Chief Investment   Chief Executive Officer  
          Officer   and Chairman  
                 
Equity Research Coverage1
                 
Baird   Colliers Securities   Wedbush Securities      
Dave Rodgers     Barry Oxford   Henry Coffey      
216.737.7341     203.961.6573   212.833.1382      
                 
Berenberg Capital Markets     JMP Securities          
Connor Siversky     Aaron Hecht          
646.949.9037     415.835.3963          
                 
B. Riley Securities   KeyBanc Capital Markets          
Guarav Mehta     Craig Mailman          
212.417.8008     917.368.2316          

 

Investor Conference Call and Webcast:
The Company will host a conference call and live audio webcast, both open for the general public to hear, on November 5, 2021 at 9:00 a.m. Eastern Time. The number to call for this interactive teleconference is (844) 784-1727 (international callers: (412) 717-9587). A replay of the call will be available through November 12, 2021 by dialing (412) 317-0088 and entering the replay access code, 10158282.		  
 
 
 
   
   
   

 

1) 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.  
 
 

 

Page 2 

 
Plymouth Industrial REIT, Inc.
Portfolio Statistics
 
Unaudited ($ in thousands, except Cost/SF) as of 09/30/2021

 

Portfolio Snapshot       Portfolio Growth ($ in millions)

 

Number of Properties   117    
       
Number of Buildings   152  
       
Square Footage   26,595  
       
Occupancy   96.3%  
       
WA Lease Term Remaining (yrs.)   3.8  
       
Total Annualized Base Rent (ABR)1   $106,670  
       
Rental Rate Increase - Cash basis2   10.8%  

 

Acquisition Activity                      

 

Transaction Summary (YTD Q3 2021)       Investment Highlights
     
Purchase Price4   $      176,527 ● Since the Company's initial public offering in June 2017, the Company has acquired $978 million of wholly owned warehouse, distribution, light manufacturing, and small bay industrial properties totaling approximately 22.8 million square feet
Cost Per Square Foot   $          54.73  
Replacement Cost/SF3 - YTD 2021   $          88.71  
Square Footage Acquired   3,449,395 ● YTD 2021, the Company has acquired industrial properties in the markets of Chicago, Cleveland, Columbus Indianapolis, Kansas City, Memphis, and St. Louis at a significant discount to replacement cost
WA Occupancy at Acquisition   99.3%  
WA Lease Term Remaining (yrs.)   3.9  

 

Acquisitions                        
                         
Location   Acquisition
Date		   # of
Buildings		   Purchase
Price4		   Square
Footage		   Projected
Initial Yield5		   Cost per Square Foot6
Memphis, TN   7/9/2021   1   $                      9,900   233,000   7.7%    $                      42.49
Memphis, TN   7/30/2021   2   6,277   316,935   8.0%                      19.81
Chicago, IL   8/12/2021   1   30,100   513,512   7.8%                      58.62
St. Louis, MO   8/24/2021   1   55,200   769,500   6.7%                      71.73
Total Third Quarter 2021 Acquisitions   5   $                  101,477   1,832,947   7.2%    $                      61.78
                         
Multiple   Q2 2021   2   $                    14,050   230,099   6.8%    $                      61.73
                         
Multiple   Q1 2021   5   $                    61,000   1,386,349   7.7%    $                      46.87
                         
Multiple   Full Year 2020   27   $                  243,568   5,473,596   7.8%    $                      46.99
                         
Multiple   Full Year 2019   31   $                  220,115   5,776,928   8.4%    $                      42.21
                         
Multiple   Full Year 2018   24   $                  164,575   2,903,699   8.2%    $                      70.54
                         
Multiple   2017 (since IPO)   36   $                  173,325   5,195,563   8.4%    $                      33.81
                         
Total Acquisitions Post-IPO       130   $                  978,110   22,799,181   8.0%    $                      49.28

 

QTD Q4 2021 Acquisitions                        
                         
Location   Acquisition
Date		   # of
Buildings		   Purchase
Price4		   Square
Footage		   Projected
Initial Yield5		   Cost per Square Foot6
St. Louis, MO   10/5/2021   1   $                    11,100   100,021   6.9%    $                    110.98
St. Louis, MO   10/5/2021   1   7,700   76,042   6.2%                    101.26
St. Louis, MO   10/7/2021   2   75,100   1,145,330   5.8%                      65.57
Indianapolis, IN   10/26/2021   1   23,100   294,730   6.9%                      78.38
        5   $                  117,000   1,616,123   6.1%    $                      74.76

 

 

                        
Portfolio statistics and acquisitions include wholly owned properties only.                

 

1) Annualized base rent is calculated as monthly contracted base rent as of September 30, 2021, multiplied by 12. Excludes rent abatements.
2) Based on approximately 1.4 million square feet of new and renewal leases greater than six months in term. Refer to Leasing Activity in this Supplemental Information for additional details.
3) Replacement cost is based on the Marshall & Swift valuation methodology for the determination of building costs. Replacement cost includes land reflected at the allocated cost in accordance with GAAP.
4) Represents total direct consideration paid rather than GAAP cost basis.
5) Weighted based on Purchase Price.
6) Calculated as Purchase Price divided by square footage.

 

Page 3 

 
Plymouth Industrial REIT, Inc.
Select Recent Acquisitions
 
During the first three quarters of 2021 and to date in the fourth quarter, the Company closed on the acquisition of seventeen industrial buildings totaling approximately 5.1 million square feet for a total of $294 million, a weighted average price of $64 per square foot, and a weighted average initial yield of 6.9%
 
Unaudited ($ in thousands, except Cost/SF)

 

Lakeview Drive      
       
    Location St. Louis
  Acquisition Date August-21
  # of Buildings 1
  Purchase Price1 $55,200
  Square Footage 769,500
  Occupancy 100.0%
  WA Lease Term Remaining 2.7 years
  Projected Initial Yield 6.7%
  Purchase Price/SF2 $71.73
  Replacement Cost/SF2 $91.00
  Multi-Tenant % 0%
  Single-Tenant % 100%
     
 

Location Characteristics: St. Louis is located within 500 miles of one-third of the U.S. population and within 1,500 hundred miles of 90% of North America's population by way of its four interstates with national access. Additionally, the region is home to two international cargo airports, and the third-largest rail hub and second-largest inland port in the U.S.

     
 

Market Insight: Supply continues to contract; growth shows no signs of slowing down as more firms look to Midwest markets for distribution hubs (source: JLL)

   
    Portfolio Fit: Brings Company's scale in the St. Louis market to nearly 2.0 million square feet and complements the existing tenant / industry base with the addition of a leading 3PL company to the roster
 

 

ODW Logistics Distribution Center      
       
    Location Columbus
  Acquisition Date March-21
  # of Buildings 1
  Purchase Price1 $29,000
  Square Footage 772,450
  Occupancy 100.0%
  WA Lease Term Remaining 4.3 years
  Projected Initial Yield 7.5%
  Purchase Price/SF2 $37.54
  Replacement Cost/SF2 $69.36
  Multi-Tenant % 0%
  Single-Tenant % 100%
     
  Location Characteristics: Columbus is one of the preeminent distribution corridors in the world; centrally positioned to the entire eastern half of the U.S., enabling same-day / next-day delivery to all population centers in the Northeast, Mid-Atlantic, Southeast, and Midwest (source: CBRE)
     
  Market Insight: Low vacancy rates; positive supply and demand fundamentals supporting rent growth; robust development pipeline
     
   

Portfolio Fit: Brings Company's scale in the Columbus metro area to nearly 3.0 million square feet and enlarges tenant / industry diversification

   

 

1) Represents total direct consideration paid rather than GAAP cost basis.
2) Replacement cost is based on the Marshall & Swift valuation methodology for the determination of building costs. Replacement cost includes land reflected at the allocated cost in accordance with GAAP.

Page 4 

 
Plymouth Industrial REIT, Inc.
Value Creation
 
Unaudited ($ in thousands, except RSF)

 

Examples of Value Creation

 

Lease Extension / Redevelopment   Early Termination and New Lease   New Development
     
Cincinnati, OH   Canton, OH   Portland, ME
Acquired multi-tenant industrial building in October 2018 with over 1.1 million SF of rentable square feet and 30+ acres available for future development   Acquired single-tenant ~275,000 square foot building in November 2020 as part of a 10-building portfolio, with a known vacancy   Acquired multi-tenant industrial building in November 2014 with ~8 acres of developable land
Renewed nearly 0.5 million SF at higher rental rents with average annual rent escalations of 3.3% and terms greater than 4 years   Negotiated an early lease termination and executed a new 10.5-year lease commencing Q3 2021 at market rents with no downtime   Broke ground on new ~70,000 square foot industrial building during Q2 2021 with an estimated shell completion in December 2021 at a cost of ~$7.3 million
Installing floors over open crane pit areas to create an additional ~150,000 SF of new leasable space, approximately 40% of which has been leased   Exit capitalization rate ~200bps below allocated acquisition capitalization rate1   Flexible design features will allow the building to be efficiently utilized for both single- and multi-tenant occupancy
       

 

Replacement Cost Analysis (as of 9/30/2021)

 

              Total Rentable   Purchase   Replacement
Market   Market Type2     # of Buildings   Square Feet (RSF)   Price3   Cost4
Atlanta   Primary     9   1,318,002   $           62,931   $           81,124
Chicago   Primary     39   6,592,226   232,676   559,828
Boston   Secondary     1   200,625   10,500   20,161
Cincinnati   Secondary     8   2,045,910   68,457   131,968
Cleveland   Secondary     17   3,681,390   176,250   307,536
Columbus   Secondary     10   2,724,173   101,643   183,766
Indianapolis   Secondary     14   3,468,401   104,740   245,919
Jacksonville   Secondary     24   1,966,154   135,650   172,492
Kansas City   Secondary     1   221,911   8,600   20,451
Memphis   Secondary     19   2,397,934   74,902   150,011
Philadelphia   Secondary     1   156,634   9,700   10,569
St. Louis   Secondary     9   1,821,761   111,437   150,894
Total         152   26,595,121   $      1,127,586   $      2,034,719
                       

 

1) Based on acquisition yield and third-party real estate market estimate of current exit capitalization rate.
2) Primary markets means the following two metropolitan areas in the U.S., each generally consisting of more than 300 million square feet of industrial space: Chicago and Atlanta. Secondary markets means non-primary markets, each generally consisting of between 100 million and 300 million square feet of industrial space, including the following metropolitan areas in the U.S.: Boston, Cincinnati, Cleveland, Columbus, Indianapolis, Jacksonville, Kansas City, Memphis, Milwaukee, Philadelphia, South Florida, and St. Louis. Our definitions of primary and secondary markets may vary from the definitions of these terms used by investors, analysts, or other industrial REITs.
3) Represents total direct consideration paid rather than GAAP cost basis.
4) Replacement cost is based on the Marshall & Swift valuation methodology for the determination of building costs. Replacement cost includes land reflected at the allocated cost in accordance with GAAP.

 

Page 5 

 
Plymouth Industrial REIT, Inc.
Rent Collections and Deferrals
 
The Company continues to experience substantial rent collection throughout the COVID-19 pandemic. Collection of original contracted rents, including those deferred, as of the current quarter ended was over 99%.
 
Unaudited ($ in thousands)

 

      % of Tenant   % of Tenant   Total Revised
      Contractual Base   Contractual Base   Contractual Base
Rent Collections   Rent Collected   Rent Deferred   Rent Collected
               
 First Quarter 2020   99.9%   0.0%   99.9%
 Second Quarter 2020   95.2%   4.7%   99.9%
 Third Quarter 2020   99.5%   0.4%   99.9%
 Fourth Quarter 2020   99.9%   0.0%   99.9%
               
 First Quarter 2021   99.7%   0.2%   99.9%
 Second Quarter 2021   99.7%   0.0%   99.7%
 Third Quarter 20211   99.7%   0.0%   99.7% 
               
Rent Deferrals2   Granted   Collected   Outstanding
               
 Full Year 20203    $                    1,250    $                    1,250    $                         —   
               
 YTD 20214    $                         54    $                         27       $                         27
               

 

1) Cash receipts based on contractual base rent receivables through October 25, 2021.
2) Rent deferrals require full repayment of rent amounts within twelve months from the date of the deferment.
3) The total outstanding rental deferral amounts as of the year ended December 31, 2020 have been paid consistent with the deferral terms and fully collected. 
4) For the nine months ended September 30, 2021, a single rent deferment agreement was executed that stipulates the repayment of deferred rents to be fully repaid by year-end 2021.

 

Page 6 

 
Plymouth Industrial REIT, Inc.
Guidance
 
The Company affirmed the full year 2021 guidance ranges for Net loss, Core FFO and AFFO attributable to common stockholders and unit holders noted below. In addition, the Company updated the 2021 guidance assumptions accompanying the full year range herein.
 
Unaudited (in thousands, except per-share amounts)

 

      Full Year 2021 Range1  
      Low   High  
             
Net loss    $                               (0.40)    $                               (0.37)  
             
Depreciation and amortization                                       2.22                                       2.23  
Depreciation and amortization from unconsolidated joint venture                                       0.05                                       0.05  
Gain on sale of real estate                                     (0.02)                                     (0.02)  
Unrealized appreciation of warrants                                       0.06                                       0.06  
Preferred stock dividend                                     (0.21)                                     (0.21)  
Core FFO    $                                1.70    $                                1.74  
             
Amortization of debt related costs                                       0.05                                       0.05  
Stock compensation                                       0.05                                       0.05  
Straight-line rent                                     (0.10)                                     (0.10)  
Above/below market lease rents                                     (0.06)                                     (0.06)  
Recurring capital expenditures                                     (0.28)                                     (0.27)  
AFFO attributable to common stockholders and unit holders    $                                1.36    $                                1.41  
             
Weighted-average common shares and units outstanding                                  31,598                                  31,598  
             
             
2021 Guidance Assumptions   Low   High  
             
Total Revenue    $                          138,150    $                          138,750  
NOI    $                            92,650    $                            93,250  
EBITDAre    $                            79,400    $                            79,750  
General & Administrative2    $                            12,600    $                            12,300  
Recurring Capital Expenditures    $                              8,700    $                              8,400  
Same Store Cash NOI3    $                            59,000    $                            59,250  
Same Store Occupancy3   95.5%   97.0%  
             
             
             

 

1)Assumes the completion of approximately $347 million of acquisitions ($293 million of which have been completed to date, with the balance projected to occur prior to year-end). There can be no assurance that we will complete the projected acquisitions within the forecasted timeframes.
2)Includes non-cash stock compensation of $1.6 million for the full year 2021.
3)The Same Store Portfolio consists of 108 buildings aggregating 17,093,547 rentable square feet. The Same Store projected performance reflects an annual NOI cash basis, excluding termination income and free rent associated with lease-up, increase of 2.5%-3.0%.

 

Page 7 

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

 

Same Store Portfolio Statistics
       
Square footage 17,093,547   Includes: wholly owned properties as of December 31, 2019; determined and set once per year for the following twelve months (refer to Glossary for Same Store definition)
Number of properties 81  
Number of buildings 108  
Percentage of total portfolio square footage 64.3%   Excludes: wholly owned properties classified as repositioning or lease-up during 2020 or 2021 (5 properties representing approximately 607,000 of rentable square feet) and unconsolidated joint venture properties
Occupancy at period end 97.8%  

 

Same Store NOI - GAAP Basis                

 

   Three Months Ended September 30,         
   2021   2020   $ Change   % Change 
                 
Rental revenue  $24,779   $23,986   $793    3.3% 
Property expenses   9,349    8,968    381    4.2% 
Same Store NOI - GAAP Basis  $15,430   $15,018   $412    2.7% 
                     
Same Store NOI excluding early termination income - GAAP Basis  $15,430   $14,871   $559    3.8% 
                     
    Nine Months Ended September 30,           
    2021    2020    $ Change    % Change 
                     
Rental revenue  $73,100   $71,048   $2,052    2.9% 
Property expenses   27,431    25,409    2,022    8.0% 
Same Store NOI - GAAP Basis  $45,669   $45,639   $30    0.1% 
                     
Same Store NOI excluding early termination income - GAAP Basis  $45,595   $45,369   $226    0.5% 

 

Same Store NOI - Cash Basis                

 

   Three Months Ended September 30,         
   2021   2020   $ Change   % Change 
                 
Rental revenue  $24,031   $23,235   $796    3.4% 
Free rents1   314    —    314    — 
Property expenses   9,349    8,968    381    4.2% 
Same Store NOI - Cash Basis  $14,996   $14,267   $729    5.1% 
                     
Same Store NOI excluding early termination income - Cash Basis  $14,996   $14,120   $876    6.2% 
                     
                     
                     
    Nine Months Ended September 30,           
    2021    2020    $ Change    % Change 
                     
Rental revenue  $70,299   $68,617   $1,682    2.5% 
Free rents1   683    —    683    — 
Property expenses   27,431    25,409    2,022    8.0% 
Same Store NOI - Cash Basis  $43,551   $43,208   $343    0.8% 
                     
Same Store NOI excluding early termination income - Cash Basis  $43,478   $42,938   $540    1.3% 
                     

 

   
1) Free rent associated with early terminations and lease-up periods for approximately 900,000 rentable square feet of space across three (3) buildings within the Same Store Portfolio for which new leases commenced during the three and nine months ended September 2021. The lease durations associated with these leases range in term from 5 to 10 years with an average of three (3) months of free rent.

 

Page 8 

 

 

Plymouth Industrial REIT, Inc.
Consolidated Statements of Operations
 
Unaudited ($ thousands, except per-share amounts)
   For the Three Months Ended
September 30,		   For the Nine Months Ended
September 30,		 
   2021   2020   2021   2020 
                 
Revenues:                    
Rental revenue  $27,454   $21,131   $77,635   $61,855 
Tenant recoveries   8,423    6,387    22,833    18,029 
Management fee revenue1   85    —    265    — 
Total revenues  $35,962   $27,518   $100,733   $79,884 
                     
Operating expenses:                    
Property   12,032    10,064    34,398    28,101 
Depreciation and amortization   18,305    13,985    50,984    41,602 
General and administrative   3,264    2,280    9,582    7,378 
Total operating expenses  $33,601   $26,329   $94,964   $77,081 
                     
Other income (expense):                    
Interest expense   (4,906)   (4,538)   (14,489)   (14,309)
Impairment on real estate lease   —    (311)   —    (311)
Earnings (loss) in investment of unconsolidated joint venture2   (178)   —    (675)   — 
Gain on sale of real estate4   —    —    590    — 
Unrealized (appreciation) depreciation of warrants3   (926)   (103)   (1,809)   (103)
Total other income (expense)  $(6,010)  $(4,952)  $(16,383)  $(14,723)
                     
Net loss  $(3,649)  $(3,763)  $(10,614)  $(11,920)
                     
Less: Loss attributable to non-controlling interest   (57)   (130)   (193)   (584)
                     
Net loss attributable to Plymouth Industrial REIT, Inc.  $(3,592)  $(3,633)  $(10,421)  $(11,336)
                     
Less: Preferred stock dividends   1,652    1,613    4,956    4,839 
Less: Series B preferred stock accretion to redemption value   1,807    1,854    5,421    5,562 
Less: Amount allocated to participating securities   48    38    153    144 
                     
Net loss attributable to common stockholders  $(7,099)  $(7,138)  $(20,951)  $(21,881)
                     
Net loss basic and diluted per share attributable to common stockholders  $(0.22)  $(0.36)  $(0.71)  $(1.35)
                     
Weighted-average common shares outstanding basic & diluted   32,302    19,631    29,637    16,232 

 

               
               
1) Represents management fee revenue earned from the unconsolidated joint venture.      
2) Represents our share of earnings (losses) related to our investment in an unconsolidated joint venture. Refer to Unconsolidated Joint Venture in this Supplement Information for additional details.
3) Represents the change in the fair market value of our common stock warrants.  
4) During the first quarter of 2021, the Company sold a single, 98,340 SF property for approximately $2,037, recognizing a net gain of $590.
               

Page 9 

 
Plymouth Industrial REIT, Inc.
Non-GAAP Measurements
 
Unaudited ($ in thousands)

 

Consolidated NOI                
                 
    Three Months Ended September 30,   Nine Months Ended September 30,
    2021   2020   2021   2020
                 
Net loss    $              (3,649)    $              (3,763)    $            (10,614)    $            (11,920)
General and administrative                    3,264                    2,280                    9,582                    7,378
Depreciation and amortization                  18,305                  13,985                  50,984                  41,602
Interest expense                    4,906                    4,538                  14,489                  14,309
Impairment on real estate lease                        -                     311                        -                     311
Gain on sale of real estate                        -                        -                   (590)                        -
Unrealized appreciation (depreciation) of warrants1                     926                     103                    1,809                     103
(Earnings) loss in investment of unconsolidated joint venture2                     178                        -                     675                        -
Other Income3                     (85)                        -                   (265)                        -
Net Operating Income    $              23,845    $              17,454    $              66,070    $              51,783

 

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre)    
                 
Net loss    $              (3,649)    $              (3,763)    $            (10,614)    $            (11,920)
Depreciation and amortization                  18,305                  13,985                  50,984                  41,602
Interest expense                    4,906                    4,538                  14,489                  14,309
Unrealized appreciation (depreciation) of warrants1                     926                     103                    1,809                     103
Gain on sale of real estate                        -                        -                   (590)                        -
EBITDAre    $              20,488    $              14,863    $              56,078    $              44,094
Stock compensation                     340                     324                    1,219                    1,056
Pro forma effect of acquisitions4                     874                     713                    2,140                    1,297
EBITDA adjustments attributable to unconsolidated joint venture5                     466                        -                    1,453                        -
Adjusted EBITDA    $              22,168    $              15,900    $              60,890    $              46,447

 

Funds from Operations (FFO), Core FFO & Adjusted Funds from Operations (AFFO)        
                 
Net loss    $              (3,649)    $              (3,763)    $            (10,614)    $            (11,920)
Gain on sale of real estate                        -                        -                   (590)                        -
Depreciation and amortization                  18,305                  13,985                  50,984                  41,602
Depreciation and amortization from unconsolidated joint venture                     374                        -                    1,176                        -
FFO    $              15,030    $              10,222    $              40,956    $              29,682
Preferred stock dividends                  (1,652)                  (1,613)                  (4,956)                  (4,839)
Unrealized appreciation (depreciation) of warrants1                     926                     103                    1,809                     103
Core FFO    $              14,304    $              8,712    $              37,809    $              24,946
Amortization of debt related costs                     424                     386                    1,163                    1,051
Non-cash interest expense                     41                   (169)                     (31)                     (79)
Stock compensation                     340                     324                    1,219                    1,056
Impairment of real estate lease                        -                     311                        -                     311
Straight line rent                   (966)                   (492)                  (2,726)                  (1,453)
Above/below market lease rents                   (480)                   (449)                  (1,589)                  (1,435)
Recurring capital expenditures6                  (3,312)                   (749)                  (6,727)                  (2,504)
AFFO    $              10,351    $              7,874    $              29,118    $              21,893
                 
Weighted-average common shares and units outstanding   33,046   20,488   30,436   17,217
                 
Core FFO attributable to common stockholders and unit holders per share    $                0.43    $                0.43    $                1.24    $                1.45
AFFO attributable to common stockholders and unit holders per share    $                0.31    $                0.38    $                0.96    $                1.27

 

 
 

 

1)Represents the change in the fair market value of our common stock warrants.
2)Represents our share of (earnings) losses related to our investment in an unconsolidated joint venture. Refer to Unconsolidated Joint Venture in this Supplemental Information for additional details.
3)Represents management fee revenue earned from the unconsolidated joint venture.
4)Represents the estimated impact of wholly owned and joint venture acquisitions as if they had been acquired on the first day of each respective quarter in which the acquisitions occurred. We have made a number of assumptions in such estimates and there can be no assurance that we would have generated the projected levels of EBITDA had we owned the acquired properties as of the beginning of the respective periods.
5)Represents depreciation and amortization, and interest expense from the Company's unconsolidated joint venture.
6)Excludes non-recurring capital expenditures of $8,524 and $1,327 for the three months ended September 30, 2021 and 2020, respectively, and $16,109 and $3,478 for the nine months ended September 30, 2021 and 2020, respectively.

 

Page 10 

 
Plymouth Industrial REIT, Inc.
Consolidated Balance Sheets
 
Unaudited ($ in thousands)
   September 30, 2021   December 31, 2020 
ASSETS          
Real estate properties:          
Land  $183,852   $159,681 
Building and improvements   878,896    727,000 
Less accumulated depreciation   (129,910)   (98,283)
Total real estate properties, net  $932,838   $788,398 
           
Cash, cash held in escrow and restricted cash   78,943    32,054 
Deferred lease intangibles, net   68,703    66,116 
Investment in unconsolidated joint venture1   6,008    6,683 
Other assets   35,948    27,019 
Total assets  $1,122,440   $920,270 
           
LIABILITIES, PREFERRED STOCK AND EQUITY          
Secured debt, net  $336,225   $328,908 
Unsecured debt, net2   247,729    189,254 
Accounts payable, accrued expenses and other liabilities   61,074    49,335 
Deferred lease intangibles, net   9,679    11,350 
Financing lease liability3   2,221    2,207 
           
Total liabilities  $656,928   $581,054 
           
Preferred stock - Series A  $48,473   $48,485 
Preferred stock - Series B4  $92,630   $87,209 
           
Equity:          
Common stock  $343   $253 
Additional paid in capital   492,003    360,752 
Accumulated deficit   (172,671)   (162,250)
Total stockholders' equity   319,675    198,755 
Non-controlling interest   4,734    4,767 
Total equity  $324,409   $203,522 
           
Total liabilities, preferred stock and equity  $1,122,440   $920,270 
           
                   
                   
1) Represents a noncontrolling equity interest in a single joint venture we entered into during October 2020. Our investment in the joint venture is accounted for under the equity method of accounting. Refer to Investment in Unconsolidated Joint Venture in this Supplemental Information for additional details.
2) Includes borrowings under revolving credit facility and term loan. Refer to Debt Summary in this Supplemental Information for additional details.
3) As of September 30, 2021, we have a single finance lease in which we are the sublessee for a ground lease with a remaining lease term of approximately 34.3 years. Refer to our 2021 Quarterly Report on Form 10-Q for expanded disclosure.
4) Refer to Glossary in this Supplemental Information for relevant features of the Preferred stock - Series B.  

Page 11 

 
Plymouth Industrial REIT, Inc.
Capital Structure and Debt Summary
 
Unaudited ($ in thousands) as of 09/30/2021

 

Debt Summary            
Secured Debt:  Maturity Date   Interest Rate   Commitment   Principal Balance 
Lincoln Life Mortgage1   January-22    3.41%   $9,600   $9,121 
AIG Loan   November-23    4.08%    120,000    115,139 
Ohio National Life Mortgage1   August-24    4.14%    21,000    19,810 
Allianz Loan   April-26    4.07%    63,115    63,115 
JPMorgan Chase Loan1   January-27    5.23%    13,900    13,266 
Nationwide Loan   October-27    2.97%    15,000    15,000 
Midland National Life Insurance Mortgage   March-28    3.50%    10,820    10,820 
Minnesota Life Loan   May-28    3.78%    21,500    20,558 
Transamerica Loan   August-28    4.35%    78,000    71,983 
Total / Weighted Average Secured Debt        4.08%   $352,935   $338,812 
                     
Unsecured Debt2:                    
KeyBank Unsecured Line of Credit   August-25    1.63%3  $200,000   $— 
$100m KeyBank Unsecured Term Loan   August-26    1.58%3   100,000    100,000 
$200m KeyBank Unsecured Term Loan   February-27    1.58%3   200,000    150,000 
Total / Weighted Average Unsecured Debt        1.60%   $500,000   $250,000 
                     
Net Debt:   September 30, 2021    June 30, 2021    March 31, 2021    December 31, 2020 
Total Debt4  $600,012   $508,544   $539,883   $533,211 
Less: Cash   78,943    29,314    28,163    32,054 
Net Debt  $521,069   $479,230   $511,720   $501,157 

 

Capitalization            
   September 30, 2021   June 30, 2021   March 31, 2021   December 31, 2020 
  Common Shares and Units Outstanding5   34,781    31,596    28,945    25,951 
  Closing Price (as of period end)  $22.75   $19.90   $16.85   $15.00 
  Market Value of Common Shares6  $791,268   $628,760   $487,723   $389,265 
  Preferred Stock - Series A (at liquidation preference)   50,589    50,589    50,589    50,600 
  Preferred Stock - Series B (at liquidation preference)   97,277    97,277    97,277    97,230 
  Total Market Capitalization6,7  $1,539,146   $1,285,170   $1,175,472   $1,070,306 
                     
  Dividend / Share (annualized)  $0.84   $0.84   $0.80   $0.80 
  Dividend Yield (annualized)   3.7%    4.2%    4.7%    5.3% 
  Total Debt-to-Total Market Capitalization   39.0%    39.6%    45.9%    49.8% 
  Secured Debt as a % of Total Debt   58.3%    67.0%    63.3%    62.3% 
  Unsecured Debt as a % of Total Debt   41.7%    33.0%    36.7%    37.7% 
  Net Debt-to-Annualized Adjusted EBITDA (quarter annualized)   5.9x   6.2x   6.7x   6.7x
  Net Debt plus Preferred-to-Annualized Adjusted EBITDA (quarter annualized)   7.5x   8.1x   8.6x   8.7x
  Weighted Average Maturity of Total Debt (years)   4.7    4.3    4.7    4.9 

 

Capital Markets Activity - YTD

 

                  
Common Shares   Avg. Price   Offering   Period   Net Proceeds 
2,883,794   $15.00   ATM   Q1 2021   $42,510 
2,646,854   $18.86   ATM   Q2 2021   $48,584 
3,173,883   $22.32   ATM   Q3 2021   $69,292 
315,000   $23.70   ATM   Q4 2021   $7,316 

  

               
Refer to Glossary in this Supplemental Information for definitions of non-GAAP financial measures, including Net debt and Net debt plus preferred-to-Adjusted EBITDA.  

 

1)Debt assumed at acquisition. On October 12, 2021, the Company, repaid in full, the outstanding principal and interest balance on the Lincoln Life Mortgage.
2)On August 11, 2021, the Company entered into a combined $500 million unsecured credit facility, which is comprised on an amended $200 million revolving credit facility, an amended $100 million term loan, and a new $200 million term loan.
3)The 1-month LIBOR rate as of September 30, 2021 was 0.08%. The spread over the applicable rate for the KeyBank Term Loan and the revolving line of credit with KeyBank is based on the Company’s total leverage ratio.
4)Total Debt is not adjusted for the amortization of debt issuance costs or fair market premiums or discounts. Total Debt includes the Company's pro rata share of unconsolidated joint venture debt in the amount of $11.2 million.
5)Common shares and units outstanding were 34,274 and 507 as of September 30, 2021, respectively, and 25,344 and 607 for the year ended 2020, respectively.
6)Based on closing price as of last trading day of the quarter and common shares and units as of the period ended.
7)Market value of shares and units plus total debt and preferred stock as of period end.

 

Page 12 

 
Plymouth Industrial REIT, Inc.
Unconsolidated Joint Venture
 
In October 2020, the Company announced the formation of a $150 million equity joint venture with Madison International Realty to pursue the acquisition of value-add and opportunistic industrial properties in key markets. The joint venture's first acquisition on December 17, 2020 was a portfolio of infill industrial buildings in metropolitan Memphis for $86 million. The acquisition is projected to provide an initial yield of approximately 7.7%.
 
Unaudited ($ in thousands) as of 09/30/2021

 

Unconsolidated Joint Venture Portfolio Statistics   Madison International Realty Joint Venture1

 

Number of Properties   16       Partnership   Total Equity
Number of Buildings   28     Joint Venture Members  Interests   Commitment
Square Footage   2,320,773     Plymouth (Managing Member) 20%   $          30,000
Occupancy   93.7%     Madison 80%   120,000
Weighted Average Lease Term Remaining (in years)   2.5           $        150,000
Multi-Tenant %   37%     Partner Equity Deployed     $          33,328
Single-Tenant %   63%     Annualized Asset Mgmt. Fee to PLYM     $               333
                 

 

          Targeted
Leverage 		Total Potential
Investment		 Remaining Potential
Investment
          60%  $        375,000  $        289,000
          65%  $        428,000  $        342,000

 

Balance Sheet Information2   Selected Quarter-to-Date and Year-to-Date Financial Information3

 

    September 30,       Three Months
Ended		   Nine Months
Ended
ASSETS   2021       September 30,   September 30,
   Real estate properties, net   $          76,385     Plymouth's Share 2021   2021
   Cash, cash held in escrow and restricted cash   3,875     Revenues  $               481    $             1,426
   Other assets   7,689     Net Operating Income  $               312    $               916
Total assets   $          87,949     Interest Expense  $                 92    $               277
          EBITDA  $               289    $               849
LIABILITIES AND EQUITY         Joint Venture Assets  $         17,590    $         17,590
   Secured debt, net2   $          55,435     Joint Venture Debt  $         11,200    $         11,200
   Other liabilities   2,877            
   Equity   29,637            
Total liabilities and equity   $          87,949            

 

Joint Venture Key Terms  
 
● We are the Managing Member of the joint venture and receive an annual 1% asset management fee on the total equity investment
● Distribution of cash flows: first to Members pro rata until Madison achieves a 12% return; second 10% to Managing Member and 90% to Members pro-rata until Madison achieves a 15% return, thereafter 20% to Managing Member and 80% to Members pro rata
     

 

 
Additional details on the unconsolidated joint venture can be found in documents filed with or furnished to the SEC.

 

1) For illustrative purposes only.                
2) Balance sheet and portfolio information is presented at 100% of the joint venture.  Selected financial information is presented at our pro rata share.
3) A $56 million mortgage secured by the joint venture properties from Minnesota Life that carries a seven-year term at a fixed interest rate of 3.15%.

Page 13 

 
Plymouth Industrial REIT, Inc.
Net Asset Value Components
 
Unaudited ($ in thousands) as of 09/30/2021

 

Net Operating Income       YTD Q3 2021 Acquisitions        
                   
    Three Months Ended September 30,     Acquisition # of Square Purchase Projected
    2021   Market Date Buildings Footage Price Initial Yield
Pro Forma Net Operating Income (NOI)       Kansas City 2/12/2021 1 221,911 $          8,600 8.8%
Total Operating NOI   $                23,845   St. Louis 3/23/2021 1 142,364 7,800 7.6%
Share of Joint Venture NOI   312   Chicago 3/25/2021 1 149,474 7,900 7.3%
Pro Forma Effect of New Lease Activity1   871   Cleveland 3/29/2021 1 100,150 7,700 7.6%
Pro Forma Effect of Acquisitions2   874   Columbus 3/29/2021 1 772,450 29,000 7.5%
Pro Forma Effect of Repositioning / Development3   984   Memphis 6/29/2021 1 74,665 5,250 7.0%
Pro Forma NOI   $                26,886   St. Louis 6/30/2021 1 155,434 8,800 6.7%
        Memphis 7/9/2021 1 233,000 9,900 7.7%
Amortization of above / below market lease intangibles, net   (489)   Memphis 7/30/2021 2 316,935 6,277 8.0%
Straight-line rental revenue adjustment   (967)   Chicago 8/12/2021 1 513,512 30,100 7.8%
Pro Forma Cash NOI   $                25,430   St. Louis 8/24/2021 1 769,500 55,200 6.7%
            12 3,449,395 $      176,527 6.9%

 

Other Assets and Liabilities       Developable Land      
                 
Cash, cash held in escrow and restricted cash    $               78,943     Owned Developable Under Under
Other assets    $               35,948   Market Land (acres)4 GLA (SF)4 Construction (SF)5 Development (SF)5
Accounts payable, accrued expenses and other liabilities    $               61,074   Atlanta 65 420,000 240,000 180,000
        Chicago 11 220,000 - -
Debt and Preferred Stock       Boston 8 70,000 70,000 -
        Cincinnati 30 500,000 - 500,000
Secured Debt, net    $             338,812   Jacksonville 15 178,000 - 178,000
Unsecured Debt, net    $             250,000   Memphis 23 475,000 - -
Share of Joint Venture Debt6    $               11,200     152 1,863,000 310,000 858,000
Preferred Stock - Series A7    $               50,589            
Preferred Stock - Series B7    $               97,277            
                 
Common shares and units outstanding8              34,781            

 

 
We have made a number of assumptions with respect to the pro forma effects and there can be no assurance that we would have generated the projected levels of NOI had we actually owned the acquired properties and / or fully stabilized the repositioning / development properties as of the beginning of the period. Refer to Glossary in this Supplemental Information for a definition and discussion of non-GAAP financial measures.

 

1)Represents the estimated incremental base rents from uncommented new leases as if rent commencement had occurred as of the beginning of the period.
2)Represents the estimated impact of acquisitions as if they had been acquired at the beginning of the period.
3)Represents the estimated impact of properties that are undergoing repositioning or lease-up as if the properties were fully stabilized and rents had commenced as of the beginning of the period.
4)Developable land represents acreage currently owned by us and identified for potential development. The developable gross leasable area (GLA) is based on the developable land area and a land to building ratio. Developable land and GLA are estimated and can change periodically due to changes in site design, road and storm water requirements, parking requirements and other factors. We have made a number of assumptions in such estimates and there can be no assurance that we will develop land that we own.
5)Under construction represents projects for which vertical construction has commenced. Under development represents projects in the pre-construction phase.
6)Our ownership interest is 20%.
7)Preferred Stock is calculated at its liquidation preference as of the end of the period.
8)Common shares and units outstanding were 34,274 and 507 as of September 30, 2021.

 

Page 14 

 
Plymouth Industrial REIT, Inc.
Leasing Activity and Expirations
 
Unaudited as of 09/30/2021

 

Lease Renewals and New Leases1

 

Year Type Square
Footage		 Percent  Expiring
Rent 		New Rent % Change Tenant Improvements $/SF/YR Lease Commissions $/SF/YR
                 
2019 Renewals 1,380,839 58.4%  $           4.17  $           4.51 7.9%  $            0.19  $            0.14
  New Leases 982,116 41.6%  $           2.88  $           3.43 19.1%  $            0.27  $            0.23
  Total 2,362,955 100%  $           3.64  $           4.06 11.6%  $            0.22  $            0.17
                 
                 
2020 Renewals 1,881,346 71.1%  $           3.75  $           3.93 4.8%  $            0.13  $            0.08
  New Leases 764,314 28.9%  $           4.31  $           5.07 17.6%  $            0.24  $            0.19
  Total 2,645,660 100%  $           3.92  $           4.26 8.7%  $            0.16  $            0.11
                 
                 
Q1 2021 Renewals 892,358 77.3%  $           3.99  $           4.38 9.8%  $            0.23  $            0.07
  New Leases 261,495 22.7%  $           3.82  $           4.61 20.5%  $            0.15  $            0.14
  Total 1,153,853 100%  $           3.95  $           4.43 12.2%  $            0.21  $            0.08
                 
                 
Q2 2021 Renewals 937,191 50.1%  $           4.04  $           4.17 3.2%  $            0.16  $            0.10
  New Leases 934,931 49.9%  $           3.49  $           3.89 11.4%  $            0.23  $            0.23
  Total 1,872,122 100%  $           3.77  $           4.03 7.0%  $            0.19  $            0.16
                 
                 
Q3 2021 Renewals 455,146 31.9%  $           4.49  $           4.72 5.1%  $            0.16  $            0.14
  New Leases 972,922 68.1%  $           4.16  $           4.74 13.8%  $            0.22  $            0.25
  Total 1,428,068 100%  $           4.27  $           4.73 10.8%  $            0.20  $            0.22
                 

 

Lease Expiration Schedule

 

  Year Square
Footage		 ABR2 % of ABR
Expiring3		  
  Available 982,381 $                   - -  
  2021 215,716 1,514,747 1.4%  
  2022 3,639,621 15,677,829 14.7%  
  2023 2,987,924 11,886,574 11.1%  
  2024 5,074,431 20,474,380 19.2%  
  2025 4,572,543 18,299,142 17.2%  
  Thereafter 9,122,505 38,817,591 36.4%  
  Total 26,595,121 $106,670,263 100.0%  
           
           
           
           
           
           
           
           
           
           
           
           

 

 

 

 

 

1) Lease renewals and new lease activity excludes leases with terms less than six months.
2) Annualized base rent is calculated as monthly contracted base rent as of September 30, 2021, multiplied by 12. Excludes rent abatements..
3) Calculated as annualized base rent set forth in this table divided by total annualized base rent as of September 30, 2021.

 

Page 15 

 
Plymouth Industrial REIT, Inc.
Leased Square Feet and Annualized Base Rent by Tenant Industry
 
Unaudited as of 09/30/2021

 

                         
Industry  Total Leased
Square Feet		   # of Tenants   % Rentable
Square Feet		   ABR1   % ABR   ABR Per
Square Foot		 
 Logistics & Transportation   6,924,539    70    27.1%   $26,559,744    24.8%   $3.84 
 Home & Garden   1,607,780    15    6.3%    5,219,842    4.9%    3.25 
 Food & Beverage   1,398,717    20    5.5%    6,369,212    6.0%    4.55 
 Cardboard and Packaging   1,338,266    14    5.2%    4,959,945    4.6%    3.71 
 Construction   1,324,009    31    5.2%    5,514,888    5.2%    4.17 
 Printing   1,288,178    9    5.0%    4,257,192    4.0%    3.30 
 Automotive   1,215,163    19    4.7%    5,206,875    4.9%    4.28 
 Wholesale/Retail   1,154,080    21    4.5%    4,661,491    4.4%    4.04 
 Light Manufacturing   1,081,362    10    4.2%    3,599,699    3.4%    3.33 
 Education   918,356    9    3.6%    4,335,848    4.1%    4.72 
 Other Industries*   7,362,290    196    28.7%    35,985,527    33.7%    4.89 
       Total   25,612,740    414    100.0%   $106,670,263    100.0%   $4.16 
                               
                               
*Other Industries   Total Leased
Square Feet		    # of Tenants    % Rentable
Square Feet		    ABR1    % ABR    ABR Per
Square Foot		 
 Healthcare   806,391    24    3.1%   $3,996,176    3.7%   $4.96 
 Plastics   771,234    10    3.0%    3,171,461    3.0%    4.11 
 Storage   717,260    11    2.8%    3,212,415    3.0%    4.48 
 Industrial Equipment Components   708,839    18    2.8%    2,723,675    2.6%    3.84 
 Metal Fabrication/Finishing   487,566    10    1.9%    2,316,104    2.2%    4.75 
 Technology & Electronics   460,070    14    1.8%    2,429,022    2.3%    5.28 
 Business Services   417,342    22    1.6%    3,344,297    3.1%    8.01 
 Chemical   371,672    5    1.5%    1,366,019    1.3%    3.68 
 Plumbing Equipment/Services   361,374    6    1.4%    1,272,813    1.2%    3.52 
 Appliances   335,415    2    1.3%    1,450,098    1.4%    4.32 
 Other2   1,925,127    74    7.5%    10,703,447    9.9%    5.56 
       Total   7,362,290    196    28.7%   $35,985,527    33.7%   $4.89 
                               

               
               

 

1) Annualized base rent is calculated as monthly contracted base rent as of September 30, 2021, multiplied by 12. Excludes rent abatements.
2) Includes tenant industries for which the total leased square feet aggregates to less than 300,000 square feet.  

 

Page 16 

 
Plymouth Industrial REIT, Inc.
Leased Square Feet and Annualized Base Rent by Type
 
Unaudited as of 09/30/2021

 

Leased Square Feet and Annualized Base Rent by Lease Type          
Lease Type     Total Leased Square Feet # of Leases % Leased Square Feet ABR1 % ABR ABR Per
Square Foot
 Triple Net     19,458,177 306 76.0%  $      79,354,719 74.4%  $         4.08
 Modified Net   3,205,210 50 12.5%          13,894,792 13.0%             4.34
 Gross   2,949,353 58 11.5%          13,420,752 12.6%             4.55
      Total     25,612,740 414 100.0%  $    106,670,263 100.0%  $         4.16
                 

 

Leased Square Feet and Annualized Base Rent by Tenant Type          
Tenant Type     Total Leased Square Feet # of Leases % Leased Square Feet ABR1 % ABR ABR Per
Square Foot
 Multi-Tenant   14,577,879 349 56.9%  $      65,561,022 61.5%  $         4.50
 Single-Tenant   11,034,861 65 43.1%          41,109,241 38.5%             3.73
      Total     25,612,740 414 100.0%  $    106,670,263 100.0%  $         4.16
                 

Leased Square Feet and Annualized Base Rent by Building Type          

 

Building Type   Total Leased Square Feet # of Buildings % Leased Square Feet ABR1 % ABR ABR Per
Square Foot
 Warehouse/Distribution     16,702,289 78 65.2%  $      60,830,706 57.1%  $         3.64
 Warehouse/Light Manufacturing   6,110,678 29 23.9%          24,889,263 23.3%             4.07
 Small Bay Industrial2   2,799,773 45 10.9%          20,950,294 19.6%             7.48
      Total     25,612,740 152 100.0%  $    106,670,263 100.0%  $         4.16
                 

                 
                 

 

1) Annualized base rent is calculated as monthly contracted base rent as of September 30, 2021, multiplied by 12. Excludes rent abatements.
2) Small bay industrial is inclusive of flex space totaling 366,431 leased square feet and annualized base rent of $5,034,750. Small bay industrial is multipurpose space; flex space includes office space that accounts for greater than 50% of the total rentable area.

 

Page 17 

 
Plymouth Industrial REIT, Inc.
Top 10 Tenants by Annualized Base Rent
 
Unaudited as of 09/30/2021 

 

Tenant Market Industry # of Leases Total Leased
Square Feet		 Expiration ABR Per
Square Foot		 ABR1 % Total ABR
FedEx Supply Chain, Inc. St. Louis Logistics & Transportation 1 769,500 6/30/2024 $             4.40 $      3,385,800 3.2%
Houghton Mifflin Harcourt Company Chicago Education 1 513,512 3/31/2026 4.42 2,269,723 2.1%
ODW Logistics, Inc. Columbus Logistics & Transportation 1 772,450 6/30/2025 2.86 2,211,524 2.1%
Archway Marketing Holdings, Inc. Chicago Logistics & Transportation 3 503,000 3/31/2026 4.30 2,164,500 2.0%
Balta US, Inc. Jacksonville Home & Garden 2 629,084 12/31/2028 3.02 1,898,956 1.8%
Communications Test Design, Inc. Memphis Logistics & Transportation 2 566,281 12/31/2024 3.21 1,819,461 1.7%
Pactiv Corporation Chicago Food & Beverage 3 439,631 8/31/2023 3.95 1,737,484 1.6%
ASW Supply Chain Services, LLC Cleveland Logistics & Transportation 4 532,437 11/30/2027 3.10 1,650,555 1.5%
First Logistics Chicago Logistics & Transportation 1 327,194 10/31/2024 4.95 1,619,610 1.5%
JobsOhio Beverage System Cleveland Food & Beverage 1 350,000 3/31/2024 4.26 1,491,000 1.4%
Total Largest Tenants by Annualized Rent   19 5,403,089   $             3.75 $    20,248,613 18.9%
All Other Tenants     395 20,209,651   $             4.28 $    86,421,650 81.1%
Total Company Portfolio     414 25,612,740   $             4.16 $  106,670,263 100.0%

 

Lease Segmentation by Size

 

Square Feet # of Leases Total Leased Square Feet Total Rentable Square Feet Total Leased % Total Leased % Excluding Repositioning2 ABR1 In-Place +
Uncommenced
ABR3		 % of Total
In-Place + Uncommenced
ABR		 In-Place +
Uncommenced
ABR Per SF4
 < 4,999 64 155,596 208,267 74.7% 79.9% $      1,699,384 $      1,736,850 1.6% $            10.75
 5,000 - 9,999 59 424,945 516,445 82.3% 86.7% 3,444,312 3,498,869 3.3% 8.06
 10,000 - 24,999 88 1,476,563 1,635,960 90.3% 90.9% 10,011,384 10,081,464 9.4% 6.74
 25,000 - 49,999 78 2,722,971 2,806,055 97.0% 99.4% 15,149,447 15,149,447 14.1% 5.56
 50,000 - 99,999 57 3,891,324 4,180,501 93.1% 97.9% 17,656,813 17,990,268 16.8% 4.53
 100,000 - 249,999 42 7,261,544 7,261,544 100.0% 100.0% 26,648,980 26,648,980 24.9% 3.67
 > 250,000 26 9,679,797 9,986,349 96.9% 100.0% 32,059,944 32,059,944 29.9% 3.31
 Total / Weighted Average 414 25,612,740 26,595,121 96.3% 98.7% $    106,670,263 $    107,165,821 100.0%  $               4.17

 

   
   

 

1)Annualized base rent is calculated as monthly contracted base rent as of September 30, 2021, multiplied by 12. Excludes rent abatements.
2)Total Leased % Excluding Repositioning excludes vacant square footage being refurbished or repositioned.
3)In-Place + Uncommenced ABR calculated as in-place current annualized base rent as of September 30, 2021 plus annualized base rent for leases signed but not commenced as of September 30, 2021.
4)In-Place + Uncommenced ABR per SF is calculated as in-place current rent annualized base rent as of September 30, 2021 plus annualized base rent for leases signed but not commenced as of September 30, 2021, divided by leased square feet plus uncommenced leased square feet.

 

Page 18 

 
Plymouth Industrial REIT, Inc.
Rentable Square Feet and Annualized Base Rent by Market
 
Unaudited ($ in thousands) as of 09/30/2021

 

Primary Markets1      

 

        Total Rentable % Rentable    
  # of Properties # of Buildings Occupancy Square Feet Square Feet ABR2 % ABR
Atlanta 8 9 98.6% 1,318,002 5.0% $                 5,318 5.0%
Chicago 38 39 92.6% 6,592,226 24.9%         26,364 24.7%

 

Secondary Markets1      

 

        Total Rentable % Rentable    
  # of Properties # of Buildings Occupancy Square Feet Square Feet ABR2 % ABR
Boston 1 1 100.0% 200,625 0.8% $                 1,141 1.1%
Cincinnati 8 8 95.1% 2,045,910 7.7%                   7,326 6.9%
Cleveland 14 17 98.6% 3,681,390 13.8%               15,313 14.4%
Columbus 10 10 96.3% 2,724,173 10.2%              8,657 8.1%
Indianapolis 14 14 98.0% 3,468,401 13.0%               11,976 11.2%
Jacksonville 7 24 99.7% 1,966,154 7.4%              12,984 12.2%
Kansas City 1 1 100.0% 221,911 0.8%                  790 0.6%
Memphis 8 19 94.1% 2,397,934 9.0%              8,097 7.6%
Philadelphia 1 1 99.8% 156,634 0.6%                952 0.9%
St. Louis 7 9 99.8% 1,821,761 6.8%              7,752 7.3%
Total 117 152 96.3% 26,595,121 100.0% $              106,670 100.0%

 

Total Acquisition Cost by Market            

 

Market  State  # of Buildings Total Acquisition Cost3 Gross Real Estate Assets4  % Gross Real Estate Assets    
Atlanta GA 9 $            62,931 $              55,358 5.3%    
Chicago IL, IN, WI 39          262,776            253,027 24.0%    
Boston MA, ME 1              10,500                 9,258 0.9%    
Cincinnati OH, KY 8               68,457              63,428 6.0%    
Cleveland OH 17           176,250              165,330 15.7%    
Columbus OH 10            101,643                 98,764 9.4%    
Indianapolis IN 14            104,740                 94,137 9.0%    
Jacksonville FL, GA 24          135,650              123,540 11.8%    
Kansas City MO 1                8,600                   8,114 0.8%    
Memphis TN 19              74,902                 69,076 6.6%    
Philadelphia PA, NJ 1              9,700                   8,679 0.8%    
St. Louis MO 9           111,437           102,087 9.7%    
Total   152 $        1,127,586 $         1,050,798 100.0%    
 
 

 

1)Primary markets means the following two metropolitan areas in the U.S., each generally consisting of more than 300 million square feet of industrial space: Chicago and Atlanta. Secondary markets means non-primary markets, each generally consisting of between 100 million and 300 million square feet of industrial space, including the following metropolitan areas in the U.S.: Boston, Cincinnati, Cleveland, Columbus, Indianapolis, Jacksonville, Kansas City, Memphis, Milwaukee, Philadelphia, South Florida, and St. Louis. Our definitions of primary and secondary markets may vary from the definitions of these terms used by investors, analysts, or other industrial REITs.
2)Annualized base rent is calculated as monthly contracted base rent as of September 30, 2021, multiplied by 12. Excludes rent abatements.
3)Represents total direct consideration paid prior to the allocations per U.S. GAAP.
4)The gross book value of real estate assets as of September 30, 2021 excluding $11,046 in leasehold improvements and assets related to corporate activities and the finance lease right-of-use asset of $904 related to the ground sublease at 2100 International Parkway. Gross book value of real estate assets excludes depreciation and the allocation of the acquisition cost related to intangible assets and liabilities required by U.S. GAAP.

 

Page 19 

 
Plymouth Industrial REIT, Inc.
Glossary
 
This glossary contains additional details for sections throughout this Supplemental Information, including explanations and reconciliations of certain non-GAAP financial measures, and the reasons why we use these supplemental measures of performance and believe they provide useful information to investors. Additional detail can be found in our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, as well as other documents filed with or furnished to the SEC from time to time.
 

 

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 in that it helps both investors and management understand the core operations of our properties. We define NOI as total revenue (including rental revenue and tenant reimbursements) less property-level operating expenses. NOI excludes depreciation and amortization, general and administrative expenses, impairments, gain/loss on sale of real estate, interest expense, and other non-operating items.
 
Cash Net Operating Income - (Cash NOI): We define Cash NOI as NOI excluding straight-line rent adjustments and amortization of above and below market leases.
 
EBITDAre and Adjusted EBITDA: 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 calculate Adjusted EBITDA by adding or subtracting from EBITDAre the following items: (i) non-cash stock compensation, (ii) gain (loss) on extinguishment of debt, (iii) acquisition expenses (iv) the proforma impacts of acquisition and dispositions and (v) non-cash impairments on real estate lease. We believe that EBITDAre and Adjusted EBITDA are helpful to investors as supplemental measures of our operating performance as a real estate company as they are direct measures of the actual operating results of our industrial properties. EBITDAre and Adjusted EBITDA should not be used as measures of our liquidity and may not be comparable to how other REITs' calculate EBITDAre and Adjusted EBITDA.
 
Funds From Operations ("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 as 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.
          We define FFO consistent with the NAREIT definition. 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.
 
Core Funds from Operations (“Core FFO”): Core FFO represents FFO reduced by dividends paid (or declared) to holders of our preferred stock and excludes certain non-cash operating expenses such as impairment on real estate lease, unrealized appreciation/(depreciation) of warrants and loss on extinguishment of debt. As with FFO, our reported Core FFO may not be comparable to other REITs’ Core FFO, 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.
 
Adjusted Funds from Operations attributable to common stockholders (“AFFO”):  Adjusted funds from operations, or AFFO, is presented in addition to Core FFO. AFFO is defined as Core 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 include expenditures required to maintain and re-tenant our properties, tenant improvements and leasing commissions. AFFO further adjusts Core 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, 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 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 Core 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.
 
Net Debt and Preferred stock to Adjusted EBITDA: Net debt and preferred stock to Adjusted EBITDA is a non-GAAP financial measure that we believe is useful to investors as a supplemental measure in evaluating balance sheet leverage. Net debt and preferred stock is equal to the sum of total consolidated and our pro rata share of unconsolidated joint venture debt less cash, cash equivalents, and restricted cash, plus preferred stock calculated at its liquidation preference as of the end of the period.
 
 

 

 

 

Page 20 

 
Plymouth Industrial REIT, Inc.
Glossary
 
This glossary contains additional details for sections throughout this Supplemental Information, including explanations and reconciliations of certain non-GAAP financial measures, and the reasons why we use these supplemental measures of performance and believe they provide useful information to investors. Additional detail can be found in our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, as well as other documents filed with or furnished to the SEC from time to time.
 

 

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, 2021 the calculation is as follows:

 

Total assets   $    1,122,440
Add back accumulated depreciation   129,910
Add back intangible amortization   65,134
Gross assets   $    1,317,484

 

Joint Venture Financial Information: We present components of balance sheet and operating results information related to our real estate joint venture, which are not presented, or intended to be presented, in accordance with GAAP. We present the proportionate share of certain financial line items by applying our noncontrolling economic interest ownership percentage to each financial item to arrive at the amount of such cumulative noncontrolling interest share of each component presented. In addition, we present components of balance sheet and portfolio information at 100% of the joint venture. We believe this information can help investors estimate the balance sheet and operating results information related to our unconsolidated joint venture. Presenting this information provides a perspective not immediately available from consolidated financial statements and one that can supplement an understanding of the joint venture assets, liabilities, revenues, and expenses included in our consolidated results. Joint venture financial information should not be considered an alternative to our consolidated financial statements, which are prepared in accordance with GAAP.  
 
Lease Type: We define our triple net leases in that the tenant is responsible for all aspects of and costs related to the property and its operation during the lease term. We define our modified net leases in that the landlord is responsible for some property related expenses during the lease term, but the cost of most of the expenses is passed through to the tenant. We define our gross leases in that the landlord is responsible for all aspects of and costs related to the property and its operation during the lease term.
 
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. Non-recurring capital expenditures also include costs associated with repositioning a property, redevelopment/development and capital improvements known at the time of acquisition.  
 
Occupancy: We define occupancy as the percentage of total leasable square footage as the earlier of lease term commencement or revenue recognition in accordance to GAAP as of the close of the reporting period.
 
Preferred Stock - Series B: On December 14, 2018, we completed the offering of 4,411,764 shares of the Company’s Series B Convertible Redeemable Preferred Stock at a purchase price of $17.00 per share for an aggregate consideration of $75,000 or $71,800, net of issuance costs. The relevant features of the Series B Preferred Stock ("Series B") are as follows ($ in thousands):

 

Year   Cash Pay
Rate		   Annual
Cash Dividend		   Liquidation Preference1 Conversion and Redemption Options2
3 - 2021   3.75%    $             2,813    $           97,277  No conversion or redemption options
4 - 2022   4.00%    $            3,000    $           97,277 - Commencing 1/1/2022, holders of the Series B have the right to convert at the liquidation preference;
- Commencing 1/1/2022, Plymouth can elect to convert up to 100% of Series B upon the 20-day VWAP per share of Plymouth's common stock being greater than $26.35;
- Neither option expires
5 - 2023   6.50%    $             4,875    $         105,971   Commencing 1/1/2023, Plymouth can redeem up to 50% of the Series B at the liquidation preference
6 - 20243   12.00%    $             9,000    $         114,028 - Commencing 1/1/2024, Plymouth can redeem up to 100% of the Series B at the liquidation preference;
- Commencing 12/31/2024, any outstanding shares of Series B will automatically covert into common stock, subject to the 19.99% threshold4
                           

 

1) Liquidation Preference is defined as the greater of (a) the amount necessary for the holder to achieve a 12% internal rate of return, taking into account cash dividends paid and (b) $21.89, plus accrued and unpaid dividends.
2) Conversion and Redemption Options grant Plymouth the right to settle the conversion/redemption via: I) Physical Settlement with each share of Series B being converted to a number of common shares equal to the greater of (i) one share of common stock or (ii) the quotient of the liquidation preference divided by the 20-Day VWAP, subject to the 19.99% threshold, or II) Cash Settlement whereby we pay for each share of Series B being converted in cash in an amount equal to the greater of (i) the liquidation preference or (ii) the 20-Day VWAP, or III) Combination Settlement whereby Plymouth shall pay, or deliver, in respect to each share of Series B being converted, a settlement amount equal to either (i) cash equal to the Cash Settlement amount or (ii) number of shares of common stock equal to the Physical Settlement.
3) Effective 1/1/2025, in the event the Series B Preferred Stock has not been settled, the holders obtain certain governance rights, including the option to elect an additional two members to Plymouth's Board of Directors.
4) The 19.99% Threshold requires approval from the shareholders of Plymouth's common stock to approve the conversion of any Series B Preferred Stock into common shares that exceeds 19.99% of the outstanding common shares as of December 14, 2018.

 

Recurring Capital Expenditures: Recurring capitalized expenditures includes capital expenditures required to maintain and re-tenant our buildings, tenant improvements and leasing commissions.
 
Replacement Cost: is based on the Marshall & Swift valuation methodology for the determination of building costs. The Marshall & Swift building cost data and analysis is widely recognized within the U.S. legal system and has been written into in law in over 30 U.S. states and recognized in the U.S. Treasury Department Internal Revenue Service Publication. Replacement cost includes land reflected at the allocated cost in accordance with Financial Accounting Standards Board ("FASB") ASC 805.
 
Same Store Portfolio: The Same Store Portfolio is a subset of the consolidated portfolio and includes properties that are wholly owned by the Company as of December 31, 2019. The Same Store Portfolio is evaluated and defined on an annual basis based on the growth and size of the consolidated portfolio. The Same Store Portfolio excludes properties that were or will be classified as repositioning or lease-up during 2020 and 2021. For 2021, the Same Store Portfolio consists of 81 properties aggregating 17,093,547 rentable square feet. Properties that are being repositioned generally are defined as those properties where a significant amount of space is held vacant in order to implement capital improvements that enhance the functionality, rental cash flows, and value of that property. We define a significant amount of space at a property using both the size of the space and its proportion to the properties total square footage as a determinate. Our computation of same store NOI may not be comparable to other REITs.
 
VWAP: The volume weighted average price of a trading security.
 
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.
 

 

 

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