Exhibit 99.2 

 

 

SECOND QUARTER 2023 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
Value Creation   4
Development Projects   4
Guidance   5
Financial Information    
Same Store Net Operating Income (NOI)   6
Consolidated Statements of Operations   7
Consolidated NOI   8
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre)   8
Funds from Operations (FFO), Core FFO & Adjusted Funds from Operations (AFFO)   8
Consolidated Balance Sheets   9
Capital Structure and Debt Summary   10
Capital Markets Activity   10
Net Asset Value Components   11
Operational & Portfolio Information    
Leasing Activity   12
Lease Expiration Schedule   12
Leased Square Feet and Annualized Base Rent by Tenant Industry   13
Leased Square Feet and Annualized Base Rent by Type   14
Top 10 Tenants by Annualized Base Rent   15
Lease Segmentation by Size   15
Rentable Square Feet and Annualized Base Rent by Market   16
Total Acquisition and Replacement Cost by Market   16
Appendix    
Glossary   17
     

 

Forward-Looking Statements: This Supplemental Information contains forward-looking statements that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this Supplemental Information do not constitute guarantees of future performance. Investors are cautioned that statements in this Supplemental Information, which are not strictly historical statements, including, without limitation, statements regarding management's plans, objectives and strategies, constitute forward-looking statements. Such forward-looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statement, many of which may be beyond our control, including, without limitation, those factors described under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Any forward-looking information presented herein is made only as of the date of this Supplemental Information, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

 

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 17-18. For reconciliations of the non-GAAP financial measures to the most directly comparable U.S. GAAP measures, refer to page 8.

 

 
Plymouth Industrial REIT, Inc.
Executive Summary

 

Company overview: Plymouth Industrial REIT, Inc. (NYSE: PLYM) is a full service, vertically integrated real estate investment trust company focused on the acquisition, ownership, and management of single and multi-tenant industrial properties. Our mission is to provide tenants with cost effective space that is functional, flexible and safe.
                 
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   Anthony J. Saladino   James M. Connolly   Lyndon J. Blakesley  
Chief Executive Officer   Executive Vice President   Executive Vice President   Senior Vice President  
and Chairman   and Chief Financial Officer   Asset Management   and Chief Accounting Officer  
               
Benjamin P. Coues   Anne A. Hayward   Daniel Hefferman   Scott L. Robinson  
Senior Vice President   Senior Vice President   Senior Vice President   Senior Vice President  
and Head of Acquisitions   and General Counsel   Asset Management   Corporate Development  
               
               
Board of Directors
               
Philip S. Cottone   Richard J. DeAgazio   David G. Gaw   John W. Guinee  
Independent Director Independent Director   Lead Independent Director   Independent Director  
               
Caitlin Murphy   Pendleton P. White, Jr.   Jeffrey E. Witherell      
Independent Director Director   Chief Executive Officer      
        and Chairman      
               
Equity Research Coverage1
               
Baird BNP Paribas Exane   Colliers Securities   KeyBanc Capital Markets  
Nicholas Thillman   Nate Crossett   Barry Oxford   Todd Thomas  
414.298.5053   646.725.3716   203.961.6573   917.368.2375  
               
BMO Capital Markets   B Riley Securities   JMP Securities   J.P. Morgan  
John Kim   Bryan Maher   Mitch Germain   Mike Mueller  
212.885.4115   646.885.5423   212.906.3537   212.622.6689  
               
            Truist Securities  
            Anthony Hau  
            212.303.4176  

 

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 August 3, 2023 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 August 10, 2023 by dialing (877) 344-7529 and entering the replay access code, 1402326.
 

 

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 6/30/2023

 

Portfolio Snapshot   Portfolio Growth ($ in millions)
                     
Number of Properties   157    
Number of Buildings   210  
Square Footage   34,228  
Occupancy   98.0%  
WA Lease Term Remaining (yrs.)1   3.5  
Total Annualized Base Rent (ABR)2   $147,994  
Rental Rate Increase - Cash Basis3   19.3%  
Q2 Rent Collections   99.6%  

 

Acquisition Activity

 

Acquisitions                        

 

Location  Acquisition
Date
  # of
Buildings
  Purchase
Price4
   Square Footage  Projected
Initial Yield5
  Cost per
Square Foot6
                    
   YTD 2023    $       $
                      
Multiple  Full Year 2022  44  $253,655   4,164,864  6.1%  $71.54
                      
Multiple  Full Year 2021  24  $370,977   6,380,302  6.7%  $63.15
                      
Multiple  Full Year 2020  27  $243,568   5,473,596  7.8%  $46.99
                      
Multiple  Full Year 2019  32  $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  187  $1,426,215   29,894,952  7.4%  $55.94
                      

 

Portfolio statistics and acquisitions include wholly owned industrial properties only; excludes our property management office located in Columbus, Ohio.

 

1)The average contractual lease term remaining as of the close of the reporting period (in years) weighted by square footage.
2)Annualized base rent is calculated as monthly contracted base rent as of June 30, 2023, multiplied by 12. Excludes rent abatements.
3)Based on approximately 2.1 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.
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.
7)Acquisitions include capitalized costs in accordance to GAAP for development properties placed in-service.

 

Page 3 

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

 

Lease-up / Building Refurbishment   New Industrial Development   Re-leasing / No downtime
   
Memphis   Atlanta   Atlanta
Executed a 312,000 SF 5-year lease with annual escalators of 3.0% at a rental rate increase of 56% over prior rents.   Acquired single-tenant industrial building in January 2020 with ~ 65 acres of developable land.   Executed an early 7-year renewal for a 194,800 SF tenant effective upon the substantial completion of capital improvements to the property.
         
Tenant move-out was addressed expeditiously. The building will undergo roof and fire suppression upgrades as a part of the new lease transaction.   Broke ground on new 237,000 SF building during Q2 2021 and completed development in Q1 2023 at a cost of ~$13.8M, an add'l 180,000 SF building is projected for Q3 2023 at a cost of ~$12.0M.   The estimated $1.6 million capital improvements include remodeling of restrooms, roof replacement, dock door restorations, and parking lot repairs.
         
The property was acquired at a going-in yield of 8.0%, which now has increased to a stabilized yield of over 11.0%.   Flexible design planned for both buildings to allow for demising. The 237,000 SF building is 100% leased.   Tenant is in place during capital improvements resulting in no downtime. Renewal rent will be a 53% net increase over the prior rental rate.

 

Plymouth is partnering with the Green Building Initiative to align our environmental objectives with the execution of all new development and portfolio enhancement activities.1

 

Development Projects (as of 06/30/2023)  
   
The Company has identified over 1.9 million SF of developable GLA with 260,322 SF currently under construction and 459,380 SF recently completed. The total investment in development under construction is approximately $20.9 million as of 6/30/2023 against a budget of approximately $23.9 million. The total investment in completed developments is approximately $37.2 million. The proforma stabilized cash NOI yields on development projects under construction and completed range between 7.0% - 9.0%.  
 
 

 

          Total Rentable           Estimated
  Under Construction2   # of Buildings   Square Feet (RSF)   % Leased   % Funded   Completion
  Atlanta - New Calhoun II   1   180,000   Multiple prospects   99%    Q3 2023
  Jacksonville - Liberty   2   80,322   100%   76%    Q3/Q4 2023
      3   260,322            
                       
          Total Rentable            
  Completed 3   # of Buildings   Square Feet (RSF)   % Leased   % Funded   Completed
  Boston - Milliken Road   1   68,088   100%   100%    Q4 2022
  Atlanta - New Calhoun I   1   236,600   100%   100%    Q1 2023
  Cincinnati - Fisher Park I   1   154,692   Multiple prospects   100%    Q1 2023
      3   459,380            
                       

 

1)The Company is a member organization of the Green Building Initiative (GBI), a nonprofit organization and American National Standards Institute (ANSI) Accredited Standards Developer dedicated to reducing climate impacts by improving the built environment. Founded in 2004, the organization is the global provider of the Green Globes and federal Guiding Principles Compliance certification and assessment programs.
2)Under construction represents projects for which vertical construction has commenced. Refer to the Developable Land section of the Net Asset Components on page 11 of this Supplemental Information for additional details on the Company's development activities.
3)Completed buildings are included within portfolio occupancy and square footage metrics as of June 30, 2023.

 

Page 4 

 
Plymouth Industrial REIT, Inc.
Guidance
 
Unaudited (in thousands, except per-share amounts)
 
PLYM affirmed its full year 2023 guidance ranges for Core FFO per weighted average common share and units previously issued on February 23, 2023 and adjusted its ranges for net loss per weighted average common share and units as well as several of its accompanying guidance assumptions, which can be found in the tables below.

 

   Full Year 2023 Range1 
   Low   High 
         
Core FFO attributable to common stockholders and unit holders per share  $1.84   $1.86 
Same Store Portfolio NOI growth - cash basis2   7.25%    7.75% 
Average Same Store Portfolio occupancy - full year   98.4%    98.8% 
General and administrative expenses3  $15,900   $15,500 
Interest expense, net  $39,600   $39,000 
Weighted average common shares and units outstanding4   44,046    44,046 

 

Reconciliation of net loss attributable to common stockholders and unit holders per share to Core FFO guidance:

 

   Low   High 
Net loss  $(0.17)  $(0.15)
Depreciation and amortization   2.07    2.07 
Preferred stock dividends   (0.06)   (0.06)
   $1.84   $1.86 
           
           

 

1)Our 2023 guidance refers to the Company's in-place portfolio as of July 31, 2023, the redemption of the Series A Cumulative Redeemable Preferred Stock and an anticipated property disposition at the end of the third quarter of 2023 representing a total contract price of approximately $19.9 million. The disposition is subject to customary closing conditions. As such, there can be no assurance that we will complete the disposition. Our 2023 guidance does not include prospective acquisitions, additional dispositions, or additional capitalization activities that have not closed.
2)The Same Store Portfolio consists of 183 buildings aggregating 30,989,249 rentable square feet, representing approximately 91% of total in-place portfolio square footage. The Same Store projected performance reflects an annual NOI on a cash basis, excluding termination income.
3)Includes non-cash stock compensation of $3.0 million for 2023.
4)As of July 31, 2023, the Company has 44,744,983 common shares and units outstanding.

 

Page 5 

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

 

Same Store Portfolio Statistics                  

 

Square footage 30,989   Includes1: wholly owned properties as of December 31, 2021; determined and set once per year for the following twelve months (refer to Glossary for Same Store definition)
Number of properties 138  
Number of buildings 183  
Percentage of total portfolio square footage 90.5%   Excludes: wholly owned properties classified as repositioning or lease-up during 2022 or 2023 (8 buildings representing approximately 935,000 of rentable square feet)
Occupancy at period end 98.9%  
       
         

 

Same Store NOI - GAAP Basis  

 

   Three Months Ended June 30, 
   2023   2022   $ Change   % Change 
                 
Rental revenue  $44,404   $42,028   $2,376    5.7% 
Property expenses   13,856    12,543    1,313    10.5% 
Same Store NOI - GAAP Basis  $30,548   $29,485   $1,063    3.6% 
                     
Same Store NOI excluding early termination income - GAAP Basis  $30,490   $29,458   $1,032    3.5% 

 

   Six Months Ended June 30, 
   2023   2022   $ Change   % Change 
                 
Rental revenue  $89,059   $85,273   $3,786    4.4% 
Property expenses   28,128    26,565    1,563    5.9% 
Same Store NOI - GAAP Basis  $60,931   $58,708   $2,223    3.8% 
                     
Same Store NOI excluding early termination income - GAAP Basis  $60,713   $58,625   $2,088    3.6% 

 

Same Store NOI - Cash Basis  

 

   Three Months Ended June 30, 
   2023   2022   $ Change   % Change 
                 
Rental revenue  $43,755   $40,731   $3,024    7.4% 
Property expenses   13,856    12,543    1,313    10.5% 
Same Store NOI - Cash Basis  $29,899   $28,188   $1,711    6.1% 
                     
Same Store NOI excluding early termination income - Cash Basis  $29,841   $28,161   $1,680    6.0% 

 

   Six Months Ended June 30, 
   2023   2022   $ Change   % Change 
                 
Rental revenue  $87,486   $81,654   $5,832    7.1% 
Property expenses   28,128    26,565    1,563    5.9% 
Same Store NOI - Cash Basis  $59,358   $55,089   $4,269    7.7% 
                     
Same Store NOI excluding early termination income - Cash Basis  $59,140   $55,006   $4,134    7.5% 
                     

 

1)For the three and six months ended June 30, 2023 and 2022, our Same Store Portfolio includes the 28-building Memphis Industrial Portfolio which we acquired the remaining 80% interest in our former unconsolidated JV on March 11, 2022.

 

Page 6 

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

 

   For the Three Months Ended June 30,   For the Six Months Ended June 30, 
   2023   2022   2023   2022 
                 
Revenues:                    
Rental revenue  $37,814   $34,811   $75,400   $67,764 
Tenant recoveries   12,085    10,801    23,870    20,568 
Management fee revenue and other income       2    29    88 
Total revenues  $49,899   $45,614   $99,299   $88,420 
                     
Operating expenses:                    
Property   15,690    13,799    31,644    27,874 
Depreciation and amortization   23,417    24,208    47,217    46,899 
General and administrative   3,842    4,146    7,289    7,698 
Total operating expenses  $42,949   $42,153   $86,150   $82,471 
                     
Other income (expense):                    
Interest expense   (9,584)   (7,925)   (19,119)   (14,320)
Earnings (loss) in investment of unconsolidated joint venture1               (147)
Loss on extinguishment of debt               (2,176)
(Appreciation) depreciation of warrants2               1,760 
Total other income (expense)  $(9,584)  $(7,925)  $(19,119)  $(14,883)
                     
Net loss  $(2,634)  $(4,464)  $(5,970)  $(8,934)
                     
Less: Net loss attributable to non-controlling interest   (30)   (55)   (68)   (115)
                     
Net loss attributable to Plymouth Industrial REIT, Inc.  $(2,604)  $(4,409)  $(5,902)  $(8,819)
                     
Less: Preferred Stock dividends   916    1,320    1,832    3,019 
Less: Series B Preferred Stock accretion to redemption value       750        2,250 
Less: Loss on extinguishment of Series A Preferred Stock       24    2    24 
Less: Amount allocated to participating securities   82    65    170    132 
                     
Net loss attributable to common stockholders  $(3,602)  $(6,568)  $(7,906)  $(14,244)
                     
Net loss basic and diluted per share attributable to common stockholders  $(0.08)  $(0.17)  $(0.19)  $(0.38)
                     
Weighted-average common shares outstanding basic and diluted   42,647    39,107    42,626    37,675 
                     
                     

 

1)Represents our share of earnings (losses) related to our investment in an unconsolidated joint venture. The Company acquired the remaining 80% interest in our unconsolidated JV in March 2022.
2)Represents the change in the fair market value of our common stock warrants. On March 23, 2022, the common stock warrants were exercised in full and converted on a cashless basis, resulting in 139,940 shares of common stock.

 

Page 7 

 

 
Plymouth Industrial REIT, Inc.
Non-GAAP Measurements
           
Unaudited ($ in thousands, except per-share amounts)          
           
Consolidated NOI          

 

   For the Three Months Ended June 30,   For the Six Months Ended June 30, 
   2023   2022   2023   2022 
                 
Net loss  $(2,634)  $(4,464)  $(5,970)  $(8,934)
General and administrative   3,842    4,146    7,289    7,698 
Depreciation and amortization   23,417    24,208    47,217    46,899 
Interest expense   9,584    7,925    19,119    14,320 
(Earnings) loss in investment of unconsolidated joint venture1               147 
Loss on extinguishment of debt               2,176 
Appreciation (depreciation) of warrants2               (1,760)
Management fee revenue and other income       (2)   (29)   (88)
Net Operating Income  $34,209   $31,813   $67,626   $60,458 

 

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre)                

 

Net loss  $(2,634)  $(4,464)  $(5,970)  $(8,934)
Depreciation and amortization   23,417    24,208    47,217    46,899 
Interest expense   9,584    7,925    19,119    14,320 
Loss on extinguishment of debt               2,176 
Appreciation (depreciation) of warrants2               (1,760)
EBITDAre  $30,367   $27,669   $60,366   $52,701 
Stock compensation   716    538    1,301    980 
Acquisition expenses   4    150    85    150 
Pro forma effect of acquisitions/developments3   308    290    761    2,347 
Adjusted EBITDA  $31,395   $28,647   $62,513   $56,178 

 

Funds from Operations (FFO), Core FFO & Adjusted Funds from Operations (AFFO)                

 

Net loss  $(2,634)  $(4,464)  $(5,970)  $(8,934)
Depreciation and amortization   23,417    24,208    47,217    46,899 
Depreciation and amortization from unconsolidated joint venture               268 
FFO  $20,783   $19,744   $41,247   $38,233 
Preferred stock dividends   (916)   (1,320)   (1,832)   (3,019)
Acquisition expenses   4    150    85    150 
Appreciation (depreciation) of warrants2               (1,760)
Loss on extinguishment of debt               2,176 
Core FFO  $19,871   $18,574   $39,500   $35,780 
Amortization of debt related costs   570    527    1,138    1,032 
Non-cash interest expense   158    262    452    906 
Stock compensation   716    538    1,301    980 
Capitalized interest   (351)   (142)   (686)   (206)
Straight line rent   (705)   (904)   (1,617)   (1,726)
Above/below market lease rents   (669)   (545)   (1,403)   (2,091)
Recurring capital expenditures4   (1,092)   (1,782)   (2,898)   (3,455)
AFFO  $18,498   $16,528   $35,787   $31,220 
                     
Weighted-average common shares and units outstanding   43,526    39,897    43,479    38,449 
                     
Core FFO attributable to common stockholders and unit holders per share  $0.46   $0.47   $0.91   $0.93 
AFFO attributable to common stockholders and unit holders per share  $0.42   $0.41   $0.82   $0.81 
                     

 

1)Represents our share of (earnings) losses related to our investment in an unconsolidated joint venture.
2)Represents the change in the fair market value of our common stock warrants. On March 23, 2022, the common stock warrants were exercised in full and converted on a cashless basis, resulting in 139,940 shares of common stock.
3)Represents the estimated impact of wholly owned acquisitions and development properties as if they had been acquired or stabilized on the first day of each respective quarter in which the acquisitions occurred or developments were placed in-service. 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 and/or placed the development properties in-service as of the beginning of the respective periods.
4)Excludes non-recurring capital expenditures of $7,640 and $14,515 for the three months ended June 30, 2023 and 2022, respectively, and $16,053 and $22,804 for the six months ended June 30 2023 and 2022 respectively.

 

Page 8 

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

 

   June 30, 2023   December 31, 2022 
ASSETS          
Real estate properties:          
Land  $231,829   $231,829 
Building and improvements   1,339,505    1,324,017 
Less accumulated depreciation   (239,306)   (205,629)
Total real estate properties, net  $1,332,028   $1,350,217 
           
Cash, cash held in escrow and restricted cash   38,517    31,213 
Deferred lease intangibles, net   60,304    70,718 
Interest rate swaps1   31,180    30,115 
Other assets   38,631    39,055 
Total assets  $1,500,660   $1,521,318 
           
LIABILITIES, PREFERRED STOCK AND EQUITY          
Secured debt, net  $386,191   $389,531 
Unsecured debt, net2   535,155    524,845 
Accounts payable, accrued expenses and other liabilities   70,492    72,551 
Deferred lease intangibles, net   7,179    8,918 
Financing lease liability3   2,260    2,248 
           
Total liabilities  $1,001,277   $998,093 
           
Preferred stock - Series A  $46,803   $46,844 
           
Equity:          
Common stock  $431   $428 
Additional paid in capital   616,414    635,068 
Accumulated deficit   (200,147)   (194,243)
Accumulated other comprehensive income   30,792    29,739 
Total stockholders' equity   447,490    470,992 
Non-controlling interest   5,090    5,389 
Total equity  $452,580   $476,381 
           
Total liabilities, preferred stock and equity  $1,500,660   $1,521,318 
           
           

 

1)Represents the fair value of the Company's interest rate swaps. A summary of the Company's interest rate swaps and accounting are detailed in Note 6 of our most recent Quarterly Report on Form 10-Q.
2)Includes borrowings under line of credit and term loans. Refer to Debt Summary in this Supplemental Information for additional details.
3)As of June 30, 2023, we have a single finance lease in which we are the sublessee for a ground lease with a remaining lease term of approximately 33 years. Refer to our 2023 Quarterly Report on Form 10-Q for expanded disclosure.

 

Page 9 

 
Plymouth Industrial REIT, Inc.
Capital Structure and Debt Summary
 
Unaudited ($ in thousands, except per-share amounts) as of 6/30/2023
 
Debt Summary

 

  Secured Debt:   Maturity Date Interest Rate Commitment Principal Balance
  AIG Loan   November-23 4.08% $         120,000 $         110,357
  Ohio National Life Mortgage1   August-24 4.14% 21,000 18,732
  Allianz Loan   April-26 4.07% 63,115 61,830
  Nationwide Loan   October-27 2.97% 15,000 15,000
  Lincoln Life Gateway Mortgage1   January-28 3.43% 28,800 28,800
  Minnesota Life Memphis Industrial Loan1   January-28 3.15% 56,000 55,529
  Midland National Life Insurance Mortgage1   March-28 3.50% 10,820 10,769
  Minnesota Life Loan   May-28 3.78% 21,500 19,796
  Transamerica Loan   August-28 4.35% 78,000 66,720
  Total / Weighted Average Secured Debt     3.87% $         414,235 $         387,533
             
  Unsecured Debt:          
  KeyBank Line of Credit   August-25  6.82%2 $         350,000 $           87,500
  $100m KeyBank Term Loan   August-26  3.10%2,3 100,000 100,000
  $200m KeyBank Term Loan   February-27  3.13%2,3 200,000 200,000
  $150m KeyBank Term Loan   May-27  4.50%2,3 150,000 150,000
  Total / Weighted Average Unsecured Debt     4.11% $         800,000 $         537,500

 

 

      June 30, March 31, December 31, September 30, June 30,
  Net Debt:   2023 2023 2022 2022 2022
  Total Debt4   $         925,033 $         926,959 $         918,728 $         910,293 $         884,841
  Less: Cash   38,517 38,432 31,213 36,253 36,066
  Net Debt   $         886,516 $         888,527 $         887,515 $         874,040 $         848,775

 

Capitalization    

 

      June 30, March 31, December 31, September 30, June 30,
      2023 2023 2022 2022 2022
  Common Shares and Units Outstanding5   43,591 43,521 43,339 43,339 40,623
  Closing Price (as of period end)   $              23.02 $              21.01 $              19.18 $              16.81 $              17.54
  Market Value of Common Shares6   $     1,003,465 $         914,376 $         831,242 $         728,529 $         712,527
  Preferred Stock - Series A (at liquidation preference)   48,845 48,845 48,888 49,311 50,179
  Preferred Stock - Series B (at liquidation preference)8   - - - - 50,765
  Total Market Capitalization6,7   $     1,977,343 $     1,890,180 $     1,798,858 $     1,688,133 $     1,698,312
               
  Dividend / Share (annualized)   $                0.90 $                0.90 $                0.88 $                0.88 $                0.88
  Dividend Yield (annualized)   3.9% 4.3% 4.6% 5.2% 5.0%
  Total Debt-to-Total Market Capitalization   46.8% 49.0% 51.1% 53.9% 52.1%
  Secured Debt as a % of Total Debt   41.9% 42.0% 42.6% 43.2% 44.6%
  Unsecured Debt as a % of Total Debt   58.1% 58.0% 57.4% 56.8% 55.4%
  Net Debt-to-Annualized Adjusted EBITDA (quarter annualized)   7.1x 7.1x 7.3x 7.3x 7.4x
  Net Debt plus Preferred-to-Annualized Adjusted EBITDA (quarter annualized)   7.4x 7.5x 7.7x 7.7x 8.3x
  Weighted Average Maturity of Total Debt (years)   3.2 3.4 3.7 4.0 4.2

 

Capital Markets Activity
         
Common Shares Avg. Price Offering Period Net Proceeds
$                       - N/A Q1 2023 $                        —
70,000 $              23.16 ATM Q2 2023 $                 1,385
1,140,600 $              23.05 ATM Q3 2023 $               25,682

 

 
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.
2)For the month of June 2023, the one-month term SOFR for our unsecured debt and borrowings under line of credit was 5.172%. The spread over the applicable rate for the $100m, $150m, and $200m KeyBank Term Loans and KeyBank unsecured line of credit is based on the Company’s total leverage ratio plus the 0.1% SOFR index adjustment.
3)As of June 30, 2023, the one-month term SOFR for the $100m, $150m and $200m KeyBank Term Loans was swapped to a fixed rate of 1.504%, 2.904%, and 1.527%, respectively. See Notes 5 and 6 of our most recent Quarterly Report on Form 10-Q for additional disclosure.
4)Total Debt is not adjusted for the amortization of debt issuance costs or fair market premiums or discounts.
5)Common shares and units outstanding were 43,101 and 490 as of June 30, 2023, respectively, and 36,111 and 490 for the year ended December 31, 2022, 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.
8)On April 29, 2022, 2,205,882 shares of the Company’s Series B Convertible Redeemable Preferred Stock were converted to our common stock on a one-to-one basis. On August 12, 2022, the holder of the Company's Series B Convertible Redeemable Preferred Stock informed the Company that it had elected to convert the remaining 2,205,882 shares of Series B Convertible Redeemable Preferred Stock into the Company's common stock.

 

 

 

Page 10 

 
Plymouth Industrial REIT, Inc.
Net Asset Value Components
 
Unaudited ($ in thousands) as of 6/30/2023

 

Net Operating Income       Developable Land        
                     
      Three Months Ended     Owned Developable Under Est. Investment / Under
       June 30, 2023   Market Land (acres)4 GLA (SF)4 Construction (SF)5 Est. Completion Development (SF)5
  Pro Forma Net Operating Income (NOI)       Atlanta 52 380,400 180,000  $12.0M/Q3 '23 -
  Total Operating NOI   $          34,209   Chicago 11 220,000 -   -
  Pro Forma Effect of New Lease Activity1   620   Cincinnati 18 285,308 -   285,308
  Pro Forma Effect of Acquisitions2   -   Jacksonville 15 176,000 80,322 $11.9M/Q4 '23 95,678
  Pro Forma Effect of Repositioning / Development3   956   Memphis 23 475,000 -   -
  Pro Forma NOI   $          35,785   St. Louis 31 300,000 -   -
          Charlotte 6 100,000 -   -
  Amortization of above / below market lease intangibles, net   (669)     156 1,936,708 260,322   380,986
  Straight-line rental revenue adjustment   (705)              
  Pro Forma Cash NOI   $          34,411              

 

Other Assets and Liabilities      
       
  Cash, cash held in escrow and restricted cash    $         38,517              
  Other assets    $         38,631
  CIP related to development properties    $         25,271
  Accounts payable, accrued expenses and other liabilities    $         70,492
       
Debt and Preferred Stock      
       
  Secured Debt    $       387,533
  Unsecured Debt    $       537,500
  Preferred Stock - Series A6    $         48,845
       
  Common shares and units outstanding7        43,591

 

 
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 uncommenced 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 and development properties placed in-service as if the properties were 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)Preferred Stock is calculated at its liquidation preference as of the end of the period.
7)Common shares and units outstanding were 43,101 and 490, respectively, as of June 30, 2023.

 

Page 11 

 
Plymouth Industrial REIT, Inc.
Leasing Activity and Expirations
 
Unaudited as of 6/30/2023
 
Lease Renewals and New Leases1

 

  Year Type Square Footage Percent  Expiring Rent New Rent % Change Tenant Improvements $/SF/YR  Lease Commissions $/SF/YR
                   
  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
                   
  2021 Renewals 2,487,589 49.3%  $        4.25  $        4.50 5.9%  $            0.19  $            0.10
    New Leases 2,557,312 50.7%  $        3.76  $        4.40 17.0%  $            0.23  $            0.22
    Total 5,044,901 100%  $        4.00  $        4.45 11.1%  $            0.21  $            0.16
                   
  2022 Renewals 4,602,355 60.2%  $        4.31  $        4.87 13.1%  $            0.15  $            0.16
    New Leases 3,041,526 39.8%  $        3.51  $        4.51 28.6%  $            0.40  $            0.23
    Total 7,643,881 100%  $        3.99  $        4.73 18.5%  $            0.25  $            0.19
                   
  Q1 2023 Renewals 645,885 84.0%  $        4.62  $        5.16 11.7%  $            0.14  $            0.15
    New Leases 123,081 16.0%  $        4.56  $        6.29 37.9%  $            0.69  $            0.27
    Total 768,966 100%  $        4.61  $        5.34 15.9%  $            0.23  $            0.17
                   
  Q2 2023 Renewals 1,440,165 68.5%  $        3.47  $        3.86 11.2%  $            0.09  $            0.10
    New Leases 662,930 31.5%  $        3.61  $        4.92 36.0%  $            0.19  $            0.37
    Total 2,103,095 100%  $        3.52  $        4.20 19.3%  $            0.12  $            0.17
                   
  YTD 20232 Renewals 2,086,050 72.6%  $        3.83  $        4.27 11.5%  $            0.10  $            0.11
    New Leases 786,011 27.4%  $        3.76  $        5.13 36.4%  $            0.27  $            0.35
    Total 2,872,061 100%  $        3.81  $        4.50 18.1%  $            0.16  $            0.17

 

Lease Expiration Schedule            
                     
  Year Square Footage ABR3 % of ABR Expiring4    
  Available 679,335 $                   - -    
  2023 899,954 4,304,077 2.9%    
  2024 6,015,144 26,059,172 17.6%    
  2025 7,563,951 32,864,122 22.2%    
  2026 4,940,910 23,398,434 15.8%    
  2027 4,266,208 19,465,835 13.2%    
  Thereafter 9,862,463 41,902,382 28.3%    
  Total 34,227,965 $  147,994,022 100%    
             
             
             
             
             
             
             
             
             
             
             
             
             
             
                     
                     

 

1)Lease renewals and new lease activity excludes leases with terms less than six months.
2)Executed leases scheduled to commence during 2023, which includes the second quarter activity, total an aggregate of 4,719,317 square feet, all of which are associated with terms of at least six months. The Company will experience a 19.9% increase in rental rates on a cash basis from these leases.
3)Annualized base rent is calculated as monthly contracted base rent as of June 30, 2023, multiplied by 12. Excludes rent abatements.
4)Calculated as annualized base rent set forth in this table divided by total annualized base rent as of June 30, 2023.

 

Page 12 

 
Plymouth Industrial REIT, Inc.
Leased Square Feet and Annualized Base Rent by Tenant Industry
 
Unaudited as of 6/30/2023

 

Industry Total Leased
Square Feet
# of Leases % Rentable
Square Feet
ABR1 % ABR ABR Per
Square Foot
Logistics & Transportation 9,929,780 89 29.5% 39,899,128 27.0% $        4.02
Automotive 2,515,942 30 7.5% 11,794,541 8.0% 4.69
Wholesale/Retail 2,266,647 29 6.8% 10,395,912 7.0% 4.59
Food & Beverage 1,872,092 16 5.6% 7,219,512 4.9% 3.86
Printing & Paper 1,841,386 18 5.5% 6,264,031 4.2% 3.40
Home & Garden 1,763,027 19 5.3% 7,177,406 4.8% 4.07
Construction 1,747,418 41 5.2% 7,730,028 5.2% 4.42
Cardboard and Packaging 1,592,044 24 4.7% 7,674,786 5.2% 4.82
Light Manufacturing 1,234,493 12 3.7% 4,431,214 3.0% 3.59
Education 925,840 8 2.8% 4,464,571 3.0% 4.82
Other Industries* 7,859,961 230 23.4% 40,942,893 27.7% 5.21
     Total 33,548,630 516 100.0% $     147,994,022 100.0% $        4.41

 

*Other Industries Total Leased
Square Feet
# of Leases % Rentable
Square Feet
ABR1 % ABR ABR Per
Square Foot
Healthcare 914,561 38 2.7% 5,381,671 3.6% $        5.88
Plastics 892,408 12 2.6% 4,102,827 2.8% 4.60
Industrial Equipment Components 799,223 22 2.4% 3,463,194 2.3% 4.33
Metal Fabrication/Finishing 639,114 10 1.9% 3,070,019 2.1% 4.80
Technology & Electronics 563,949 22 1.7% 3,554,401 2.4% 6.30
Chemical 527,632 9 1.6% 2,091,723 1.4% 3.96
Storage 520,540 10 1.6% 2,887,481 2.0% 5.55
Aero Space 455,605 3 1.4% 1,429,391 1.0% 3.14
Business Services 441,385 25 1.3% 3,501,044 2.4% 7.93
Plumbing Equipment/Services 404,712 7 1.2% 1,555,110 1.1% 3.84
Other2 1,700,832 72 5.0% 9,906,032 6.6% 5.82
     Total 7,859,961 230 23.4% $    40,942,893 27.7% $        5.21
             

 

1)Annualized base rent is calculated as monthly contracted base rent as of June 30, 2023, 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 13 

 
Plymouth Industrial REIT, Inc.
Leased Square Feet and Annualized Base Rent by Type
 
Unaudited as of 6/30/2023

 

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   27,618,584 408 82.3% $          118,554,927 80.1% $            4.29
Modified Net   2,923,181 51 8.7% $            14,518,213 9.8% 4.97
Gross   3,006,865 57 9.0% $            14,920,882 10.1% 4.96
     Total   33,548,630 516 100.0% $          147,994,022 100.0% $            4.41

 

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   16,870,885 412 50.3% $            81,089,228 54.8% $            4.81
Single-Tenant   16,677,745 104 49.7% 66,904,794 45.2% 4.01
     Total   33,548,630 516 100.0% $          147,994,022 100.0% $            4.41

 

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   21,629,965 119 64.4% $            85,057,707 57.4% $            3.93
Warehouse/Light Manufacturing   8,646,755 41 25.8% 38,562,855 26.1% 4.46
Small Bay Industrial2   3,271,910 50 9.8% 24,373,460 16.5% 7.45
     Total   33,548,630 210 100.0% $          147,994,022 100.0% $            4.41
               

 

1)Annualized base rent is calculated as monthly contracted base rent as of June 30, 2023, multiplied by 12. Excludes rent abatements.
2)Small bay industrial is inclusive of flex space totaling 529,693 leased square feet and annualized base rent of $6,360,062. Small bay industrial is multipurpose space; flex space includes office space that accounts for greater than 50% of the total rentable area.

 

 

Page 14 

 
Plymouth Industrial REIT, Inc.
Top 10 Tenants by Annualized Base Rent
 
Unaudited as of 6/30/2023

 

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 7/31/2024 $                4.50 $        3,461,981 2.3%
Geodis Logistics, LLC St. Louis Logistics & Transportation 1 624,159 8/31/2025 4.25 2,652,676 1.8%
Royal Canin U.S.A, Inc. St. Louis Wholesale/Retail 1 521,171 5/31/2025 4.75 2,475,562 1.7%
Houghton Mifflin Harcourt Company Chicago Education 1 513,512 3/31/2026 4.56 2,341,615 1.6%
Archway Marketing Holdings, Inc. Chicago Logistics & Transportation 3 503,000 3/31/2026 4.51 2,268,180 1.5%
ODW Logistics, Inc. Columbus Logistics & Transportation 1 772,450 6/30/2025 2.93 2,261,284 1.5%
ASW Supply Chain Services, LLC5 Cleveland Logistics & Transportation 5 577,237 11/30/2027 3.58 2,065,130 1.4%
Balta US, Inc. Jacksonville Home & Garden 2 629,084 12/31/2028 3.13 1,968,631 1.3%
Communications Test Design, Inc. Memphis Logistics & Transportation 2 566,281 12/31/2024 3.34 1,892,967 1.3%
Winston Products, LLC Cleveland Automotive 2 266,803 4/30/2032 6.94 1,852,295 1.3%
 Total Largest Tenants by Annualized Rent   19 5,743,197   $                4.05 $     23,240,321 15.7%
 All Other Tenants     497 27,805,433   $                4.49 $   124,753,701 84.3%
Total Company Portfolio     516 33,548,630   $                4.41 $   147,994,022 100.0%

 

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 65 180,137 240,066 75.0% 76.9% $         1,738,933 $       1,738,933 1.2% $           9.65
 5,000 - 9,999 76 541,468 616,330 87.9% 89.5% 4,581,577 4,679,077 3.2% 8.52
 10,000 - 24,999 111 1,876,783 1,994,020 94.1% 95.7% 13,466,676 13,466,676 9.1% 7.09
 25,000 - 49,999 93 3,269,922 3,379,039 96.8% 96.7% 18,683,731 18,683,731 12.6% 5.71
 50,000 - 99,999 75 5,227,730 5,289,676 98.8% 98.8% 23,325,913 23,325,913 15.8% 4.46
 100,000 - 249,999 66 10,735,172 10,991,416 97.7% 98.5% 44,317,121 44,317,122 29.8% 4.13
 > 250,000 30 11,717,418 11,717,418 100.0% 100.0% 41,880,071 41,880,071 28.3% 3.57
 Total / Weighted Average 516 33,548,630 34,227,965 98.0% 98.4% $    147,994,022 $  148,091,523 100.0% $           4.41
                   

 

1)Annualized base rent is calculated as monthly contracted base rent as of June 30, 2023, 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 June 30, 2023 plus annualized base rent for leases signed but not commenced as of June 30, 2023.
4)In-Place + Uncommenced ABR per SF is calculated as in-place current rent annualized base rent as of June 30, 2023 plus annualized base rent for leases signed but not commenced as of June 30, 2023, divided by leased square feet plus uncommenced leased square feet.
5)Inclusive of a single 44,800 square feet lease set to expire on December 31, 2023. The remaining balance of the square footage has an expiration date of November 30, 2027.

 

Page 15 

 
Plymouth Industrial REIT, Inc.
Rentable Square Feet and Annualized Base Rent by Market
 
Unaudited ($ in thousands) as of 6/30/2023

 

Primary Markets1  

 

          Total Rentable % Rentable    
    # of Properties # of Buildings Occupancy Square Feet Square Feet ABR2 % ABR
  Atlanta 10 12 99.9% 1,906,835 5.6% $             8,343 5.6%
  Chicago 40 41 97.9% 6,930,887 20.2% 30,600 20.7%

 

Secondary Markets1  

 

          Total Rentable % Rentable    
    # of Properties # of Buildings Occupancy Square Feet Square Feet ABR2 % ABR
  Boston 1 2 100.0% 268,713 0.8% $             2,109 1.4%
  Charlotte 1 1 100.0% 155,220 0.5% 1,184 0.8%
  Cincinnati3 10 12 92.7% 2,710,964 7.9% 10,161 6.9%
  Cleveland 16 19 98.8% 3,979,209 11.6% 18,418 12.4%
  Columbus 15 15 99.5% 3,757,614 11.0% 13,260 9.0%
  Indianapolis 17 17 98.3% 4,085,169 11.9% 15,290 10.3%
  Jacksonville 8 26 98.5% 2,052,074 6.0% 14,220 9.6%
  Kansas City 1 1 100.0% 221,911 0.6% 833 0.6%
  Memphis 25 49 97.0% 4,783,046 14.0% 17,567 11.9%
  Philadelphia 1 1 99.8% 156,634 0.5% 1,051 0.7%
  St. Louis 12 14 99.4% 3,219,689 9.4% 14,958 10.1%
  Total 157 210 98.0% 34,227,965 100.0% $         147,994 100.0%

 

Total Acquisition and Replacement Cost by Market

 

  Market  State  # of
Buildings
Total
Acquisition Cost4
Gross Real
Estate Assets5
 % Gross
Real Estate
Assets
Replacement
Cost6
  Atlanta GA 12 $           99,498 $           94,117 6.1% $         154,583
  Chicago IL, IN, WI 41 290,026 283,156 18.4% 748,811
  Boston ME 2 19,023 19,054 1.2% 40,729
  Charlotte NC 1 20,400 18,999 1.2% 20,821
  Cincinnati OH, KY 12 106,705 108,617 7.1% 190,851
  Cleveland OH 19 201,550 190,490 12.4% 362,436
  Columbus OH 15 157,624 148,519 9.7% 293,943
  Indianapolis IN 17 149,251 141,409 9.2% 356,416
  Jacksonville FL, GA 26 147,950 136,016 8.8% 207,038
  Kansas City MO 1 8,600 9,052 0.6% 20,451
  Memphis MS, TN 49 185,407 178,968 11.6% 349,852
  Philadelphia NJ 1 9,700 8,729 0.6% 14,912
  St. Louis IL, MO 14 213,787 201,261 13.1% 325,818
  Total   210 $     1,609,521 $     1,538,387 100.0% $     3,086,661
               

 

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, Charlotte, 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 June 30, 2023, multiplied by 12. Excludes rent abatements.
3)During Q1 2023, the 154,692 square feet development property was placed in-service.
4)Represents total direct consideration paid prior to the allocations per U.S. GAAP and the allocated costs in accordance to GAAP of development properties placed in-service.
5)The gross book value of real estate assets as of June 30, 2023 excludes development projects of $25,167, $2,427 in leasehold improvements and assets related to corporate activities, our regional property management office in Columbus of $4,495, and the finance lease right-of-use asset of $858 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.
6)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.

 

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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, appreciation/(depreciation) of warrants, loss on impairments, and loss on extinguishment of debt. 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, dispositions and developments 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, acquisition and transaction related costs for transactions not completed, and excludes certain non-cash operating expenses such as impairment on real estate lease, 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, capitalized interest, 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.
       

 

 

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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.                  
                           
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.
                           
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, 2021. 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 2022 and 2023. For 2023, the Same Store Portfolio consists of 138 properties aggregating 31.0 million 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.
                           
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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