Exhibit 99.2 

 

 

THIRD 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 November 2, 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 November 9, 2023 by dialing (877) 344-7529 and entering the replay access code, 1910241.
 
 
 
 
   
   
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 9/30/2023

 

Portfolio Snapshot       Portfolio Growth ($ in millions)7
                     
Number of Properties   156    
Number of Buildings   211  
Square Footage   34,142  
Occupancy   97.6%  
WA Lease Term Remaining (yrs.)1   3.5  
Total Annualized Base Rent (ABR)2   $149,404  
Rental Rate Increase - Cash Basis3   24.1%  
Q3 Rent Collections   99.0%  
                           
                           

 

Acquisition Activity
 
Acquisitions

 

Location   Acquisition Date   # of Buildings   Purchase Price4   Square
Footage
  Projected
 Initial Yield5
  Cost per
Square Foot6
                           
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 September 30, 2023, multiplied by 12. Excludes rent abatements.
3)Based on approximately 1.8 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   Disposition / Value Realized
         
Memphis   Atlanta   Chicago
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.   Sold a 306,552 square-foot industrial building at 6510 West 73rd Street in Chicago.
         
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 delivered in Q3 2023 at a cost of ~$12.0M.   Net proceeds after the payoff of a $6.7 million mortage, return of lender escrow reserves, and other adjustments were $14.0 million.
         
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 - the 180,000 SF building is 40% leased.   The disposition yielded a 4.9% cap rate on in-place NOI and an IRR of 31.1% over a six-year hold period.

 

Plymouth is partnering with the Green Building Initiative to align our environmental objectives with the execution of all new development and portfolio enhancement activities. Thus far Plymouth has achieved a Three Green Globe certification on our Cincinnati development and a Two Green Globe certification on both the Boston and first Atlanta developments.1  
   
Development Projects (as of 09/30/2023)  
   
The Company has identified over 1.7 million SF of developable GLA with 92,670 SF currently under construction and 679,952 SF recently completed. The total investment in development under construction is approximately $6.3 million as of 9/30/2023 against a budget of approximately $13.1 million. The total investment in completed developments is approximately $55.4 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
  Jacksonville - Liberty I   1   39,750   100%   90%    Q4 2023
  Jacksonville - Liberty II   1   52,920   100%   15%    Mid-2024
      2   92,670            
                       
          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   31%   100%    Q1 2023
  Atlanta - New Calhoun II   1   180,000   40%   100%    Q3 2023
  Jacksonville - Salisbury   1   40,572   100%   100%    Q3 2023
      5   679,952            
                       

 

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 September 30, 2023.

 

Page 4 

 
Plymouth Industrial REIT, Inc.
Guidance
 
Unaudited (in thousands, except per-share amounts)
 
Plymouth affirms its full year 2023 guidance range for Core FFO of $1.84 to $1.86 per weighted average common share and units previously issued on August 3, 2023, increases its range of net income to $0.32 to $0.34 per weighted average common share and units and adjusts the accompanying 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     $         14,600   $         14,200
Interest expense, net     $         39,600   $         39,000
Weighted average common shares and units outstanding4     44,411   44,411

 

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

 

      Full Year 2023 Range1
      Low   High
Net income/(loss)     $             0.32   $             0.34
Depreciation and amortization     2.09   2.09
Gain on sale of real estate     (0.51)   (0.51)
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 November 1, 2023 and an anticipated property disposition at the end of Q4 2023 representing a total contract price of $16.8 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 182 buildings aggregating 30,832,615 rentable square feet, representing approximately 90% 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 November 1, 2023, the Company has 45,740,483 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 30,833   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 137  
Number of buildings 182  
Percentage of total portfolio square footage 90.3%   Excludes2: wholly owned properties classified as repositioning, lease-up during 2022 or 2023 (8 buildings representing approximately 935,000 of rentable square feet) and under contract for sale.
Occupancy at period end 98.6%  
     

 

Same Store NOI - GAAP Basis

 

   Three Months Ended September 30, 
   2023   2022   $ Change   % Change 
                 
Rental revenue  $44,217   $42,886   $1,331    3.1% 
Property expenses   14,030    12,949    1,081    8.3% 
Same Store NOI - GAAP Basis  $30,187   $29,937   $250    0.8% 
                     
Same Store NOI excluding early termination income - GAAP Basis  $30,112   $29,879   $233    0.8% 

 

   Nine Months Ended September 30, 
   2023   2022   $ Change   % Change 
                 
Rental revenue  $132,530   $127,378   $5,152    4.0% 
Property expenses   41,903    39,251    2,652    6.8% 
Same Store NOI - GAAP Basis  $90,627   $88,127   $2,500    2.8% 
                     
Same Store NOI excluding early termination income - GAAP Basis  $90,334   $87,986   $2,349    2.7% 

 

Same Store NOI - Cash Basis

 

   Three Months Ended September 30, 
   2023   2022   $ Change   % Change 
                 
Rental revenue  $43,912   $41,293   $2,619    6.3% 
Property expenses   14,030    12,949    1,081    8.3% 
Same Store NOI - Cash Basis  $29,882   $28,344   $1,538    5.4% 
                     
Same Store NOI excluding early termination income - Cash Basis  $29,807   $28,286   $1,521    5.4% 

 

   Nine Months Ended September 30, 
   2023   2022   $ Change   % Change 
                 
Rental revenue  $130,622   $122,186   $8,436    6.9% 
Property expenses   41,903    39,251    2,652    6.8% 
Same Store NOI - Cash Basis  $88,719   $82,935   $5,784    7.0% 
                     
Same Store NOI excluding early termination income - Cash Basis  $88,426   $82,794   $5,633    6.8% 
                     

 

1)For the three and nine months ended September 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.
2)Sold a 306,552 square-foot building, 0.9% of Plymouth REIT's portfolio, at 6510 West 73rd Street in Chicago to an owner operator for net proceeds of $14.0 million. Refer to the 2023 Quarterly Report on Form 10-Q for additional information. Additionally, a 156,634 square-foot building has been removed from the same store portfolio as it is currently under contract for disposition in Q4 2023.

 

Page 6 

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

 

   For the Three Months Ended September 30,   For the Nine Months Ended September 30, 
   2023   2022   2023   2022 
                 
Revenues:                    
Rental revenue  $37,416   $36,746   $112,816   $104,509 
Tenant recoveries   12,320    11,042    36,190    31,611 
Management fee revenue and other income   29    2    58    90 
Total revenues  $49,765   $47,790   $149,064   $136,210 
                     
Operating expenses:                    
Property   15,754    14,495    47,398    42,369 
Depreciation and amortization   22,881    24,860    70,098    71,759 
General and administrative   3,297    4,078    10,586    11,776 
Total operating expenses  $41,932   $43,433   $128,082   $125,904 
                     
Other income (expense):                    
Interest expense   (9,473)   (8,983)   (28,592)   (23,303)
Earnings (loss) in investment of unconsolidated joint venture1               (147)
Loss on extinguishment of debt   (72)       (72)   (2,176)
Gain on sale of real estate2   12,112        12,112     
(Appreciation) depreciation of warrants3               1,760 
Total other income (expense)  $2,567   $(8,983)  $(16,552)  $(23,866)
                     
Net income (loss)  $10,400   $(4,626)  $4,430   $(13,560)
                     
Less: Net income (loss) attributable to non-controlling interest   114    (55)   46    (170)
                     
Net income (loss) attributable to Plymouth Industrial REIT, Inc.  $10,286   $(4,571)  $4,384   $(13,390)
                     
Less: Preferred Stock dividends   677    930    2,509    3,949 
Less: Series B Preferred Stock accretion to redemption value       2,371        4,621 
Less: Loss on extinguishment/redemption of Series A Preferred Stock   2,021    56    2,023    80 
Less: Amount allocated to participating securities   83    62    253    194 
                     
Net income (loss) attributable to common stockholders  $7,505   $(7,990)  $(401)  $(22,234)
                     
Net income (loss) per share attributable to common stockholders - basic4  $0.17   $(0.19)  $(0.01)  $(0.57)
                     
Net income (loss) per share attributable to common stockholders - diluted4  $0.17   $(0.19)  $(0.01)  $(0.57)
                     
Weighted-average common shares outstanding - basic   44,057    41,128    43,108    38,839 
Weighted-average common shares outstanding - diluted   44,140    41,128    43,108    38,839 
                     

 

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)For the nine months ended September 30, 2023, the Company sold one property totaling 306,552 square feet, recognizing a net gain of $12,112.
3)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.
4)Refer to Note 11 in the Q3 2023 Quarterly Report on Form 10-Q for additional information.

 

Page 7 

 

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

 

   For the Three Months Ended September 30,   For the Nine Months Ended September 30, 
   2023   2022   2023   2022 
                 
Net income (loss)  $10,400   $(4,626)  $4,430   $(13,560)
General and administrative   3,297    4,078    10,586    11,776 
Depreciation and amortization   22,881    24,860    70,098    71,759 
Interest expense   9,473    8,983    28,592    23,303 
(Earnings) loss in investment of unconsolidated joint venture1               147 
Loss on extinguishment of debt   72        72    2,176 
Gain on sale of real estate   (12,112)       (12,112)    
Appreciation (depreciation) of warrants2               (1,760)
Management fee revenue and other income   (29)   (2)   (58)   (90)
Net Operating Income  $33,982   $33,293   $101,608   $93,751 

 

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

 

Net income (loss)  $10,400   $(4,626)  $4,430   $(13,560)
Depreciation and amortization   22,881    24,860    70,098    71,759 
Interest expense   9,473    8,983    28,592    23,303 
Loss on extinguishment of debt   72        72    2,176 
Gain on sale of real estate   (12,112)       (12,112)    
Appreciation (depreciation) of warrants2               (1,760)
EBITDAre  $30,714   $29,217   $91,080   $81,918 
Stock compensation   827    518    2,128    1,498 
Acquisition expenses       51    85    201 
Pro forma effect of acquisitions/developments3   542    2    1,303    2,349 
Adjusted EBITDA  $32,083   $29,788   $94,596   $85,966 

 

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

 

Net income (loss)  $10,400   $(4,626)  $4,430   $(13,560)
Gain on sale of real estate   (12,112)        (12,112)     
Depreciation and amortization   22,881    24,860    70,098    71,759 
Depreciation and amortization from unconsolidated joint venture               268 
FFO  $21,169   $20,234   $62,416   $58,467 
Preferred stock dividends   (677)   (930)   (2,509)   (3,949)
Acquisition expenses       51    85    201 
Appreciation (depreciation) of warrants2               (1,760)
Loss on extinguishment of debt   72        72    2,176 
Core FFO  $20,564   $19,355   $60,064   $55,135 
Amortization of debt related costs   570    565    1,708    1,597 
Non-cash interest expense   (50)   676    402    1,582 
Stock compensation   827    518    2,128    1,498 
Capitalized interest   (282)   (315)   (968)   (521)
Straight line rent   (216)   (1,319)   (1,833)   (3,045)
Above/below market lease rents   (417)   (541)   (1,820)   (2,632)
Recurring capital expenditures4   (1,965)   (1,985)   (4,863)   (5,440)
AFFO  $19,031   $16,954   $54,818   $48,174 
                     
Weighted-average common shares and units outstanding5   44,922    41,906    43,966    39,614 
                     
Core FFO attributable to common stockholders and unit holders per share  $0.46   $0.46   $1.37   $1.39 
AFFO attributable to common stockholders and unit holders per share  $0.42   $0.40   $1.25   $1.22 
                     

 

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 $8,132 and $20,517 for the three months ended September 30, 2023 and 2022, respectively, and $24,185 and $42,960 for the nine months ended September 30 2023 and 2022, respectively.
5)Weighted-average common shares and units outstanding includes common stock, OP units, and restricted stock units as of September 30, 2023 and excludes 51,410 performance stock units as they are deemed to be non-participatory.

 

Page 8 

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

 

   September 30, 2023   December 31, 2022 
ASSETS          
Real estate properties:          
Land  $227,599   $231,829 
Building and improvements   1,343,025    1,324,017 
Less accumulated depreciation   (254,402)   (205,629)
Total real estate properties, net  $1,316,222   $1,350,217 
           
Cash, cash held in escrow and restricted cash   30,272    31,213 
Deferred lease intangibles, net   56,316    70,718 
Interest rate swaps1   34,115    30,115 
Other assets   39,585    39,055 
Total assets  $1,476,510   $1,521,318 
           
LIABILITIES, PREFERRED STOCK AND EQUITY          
Secured debt, net  $377,714   $389,531 
Unsecured debt, net2   512,823    524,845 
Accounts payable, accrued expenses and other liabilities   75,112    72,551 
Deferred lease intangibles, net   6,604    8,918 
Financing lease liability3   2,265    2,248 
           
           
Total liabilities  $974,518   $998,093 
           
Preferred stock - Series A  $   $46,844 
           
Equity:          
Common stock  $452   $428 
Additional paid in capital   654,346    635,068 
Accumulated deficit   (191,882)   (194,243)
Accumulated other comprehensive income   33,695    29,739 
Total stockholders' equity   496,611    470,992 
Non-controlling interest   5,381    5,389 
Total equity  $501,992   $476,381 
           
Total liabilities, preferred stock and equity  $1,476,510   $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 September 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 32 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 9/30/2023
 
Debt Summary

 

Secured Debt:  Maturity Date  Interest Rate  Commitment   Principal Balance 
AIG Loan  November-23  4.08%  $120,000   $109,646 
Ohio National Life Mortgage1  August-24  4.14%   21,000    18,572 
Allianz Loan  April-26  4.07%   63,115    61,546 
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    55,244 
Midland National Life Insurance Mortgage1  March-28  3.50%   10,820    10,717 
Minnesota Life Loan  May-28  3.78%   21,500    19,683 
Transamerica Loan  August-28  4.35%   78,000    59,669 
Total / Weighted Average Secured Debt     3.86%  $414,235   $378,877 
                 
Unsecured Debt:                
KeyBank Line of Credit  August-25   6.98%2  $350,000   $65,000 
$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     4.01%  $800,000   $515,000 

 

   September 30,   June 30,   March 31,   December 31,   September 30, 
Net Debt:  2023   2023   2023   2022   2022 
Total Debt4  $893,877   $925,033   $926,959   $918,728   $910,293 
Less: Cash   30,272    38,517    38,432    31,213    36,253 
Net Debt  $863,605   $886,516   $888,527   $887,515   $874,040 

 

 

Capitalization    

 

   September 30,   June 30,   March 31,   December 31,   September 30, 
   2023   2023   2023   2022   2022 
Common Shares and Units Outstanding5   45,740    43,591    43,521    43,339    43,339 
Closing Price (as of period end)  $20.95   $23.02   $21.01   $19.18   $16.81 
Market Value of Common Shares6  $958,253   $1,003,465   $914,376   $831,242   $728,529 
Preferred Stock - Series A (at liquidation preference)8       48,845    48,845    48,888    49,311 
Total Market Capitalization6,7  $1,852,130   $1,977,343   $1,890,180   $1,798,858   $1,688,133 
                          
Dividend / Share (annualized)  $0.90   $0.90   $0.90   $0.88   $0.88 
Dividend Yield (annualized)   4.3%    3.9%    4.3%    4.6%    5.2% 
Total Debt-to-Total Market Capitalization   48.3%    46.8%    49.0%    51.1%    53.9% 
Secured Debt as a % of Total Debt   42.4%    41.9%    42.0%    42.6%    43.2% 
Unsecured Debt as a % of Total Debt   57.6%    58.1%    58.0%    57.4%    56.8% 
Net Debt-to-Annualized Adjusted EBITDA (quarter annualized)   6.7x   7.1x   7.1x   7.3x   7.3x
Net Debt plus Preferred-to-Annualized Adjusted EBITDA (quarter annualized)   6.7x   7.4x   7.5x   7.7x   7.7x
Weighted Average Maturity of Total Debt (years)   3.0    3.2    3.4    3.7    4.0 

 

Capital Markets Activity
         
Common Shares Avg. Price Offering Period Net Proceeds
- $                          - N/A Q1 2023 $                            - 
70,000 $                  23.16 ATM Q2 2023 $                  1,385
2,130,600 $                  23.04 ATM Q3 2023 $                48,133

 

 
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 September 2023, the one-month term SOFR for our unsecured debt and borrowings under line of credit was 5.327%. 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 September 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.
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 45,250 and 490 as of September 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 September 6, 2023 ("Redemption Date"), the Company redeemed all outstanding Series A Preferred Stock in cash at a redemption price equal to $25.00 per share. As of the Redemption Date and through September 30, 2023, the shares of Series A Preferred Stock were no longer outstanding.

 

Page 10 

 
Plymouth Industrial REIT, Inc.
Net Asset Value Components
 
Unaudited ($ in thousands) as of 9/30/2023

 

Net Operating Income       Developable Land        
                     
      Three Months Ended     Owned Developable Under Est. Investment / Under
       September 30, 2023   Market Land (acres)4 GLA (SF)4 Construction (SF)5 Est. Completion Development (SF)5
  Pro Forma Net Operating Income (NOI)       Atlanta 9 200,000      
  Total Operating NOI   $                 33,982   Chicago 11 220,000      
  Pro Forma Effect of New Lease Activity1   838   Cincinnati 18 285,308     285,308
  Pro Forma Effect of Acquisitions2   -   Jacksonville 12 135,337 92,670 $5.7M/Q4 '23 42,667
  Pro Forma Effect of Repositioning / Development3   896           $7.4M/Mid-'24  
  Pro Forma NOI   $                 35,716   Memphis 23 475,000      
          St. Louis 31 300,000      
  Amortization of above / below market lease intangibles, net   (417)   Charlotte 6 100,000      
  Straight-line rental revenue adjustment   (216)     110 1,715,645 92,670   327,975
  Pro Forma Cash NOI   $                 35,083              

 

Other Assets and Liabilities    
       
  Cash, cash held in escrow and restricted cash    $                30,272
  Other assets    $                39,585
  CIP related to development properties    $                   8,442
  Accounts payable, accrued expenses and other liabilities    $                 75,112
       
Debt and Preferred Stock    
       
  Secured Debt    $               378,877
  Unsecured Debt    $              515,000
  Common shares and units outstanding6                      45,740
       

 

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)Common shares and units outstanding were 45,250 and 490, respectively, as of September 30, 2023.

 

Page 11 

 
Plymouth Industrial REIT, Inc.
Leasing Activity and Expirations
 
Unaudited as of 9/30/2023
 
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
                   
  Q3 2023 Renewals 1,194,817 67.8%  $                    3.65  $                    4.51 23.6%  $                     0.12  $                     0.18
    New Leases 566,898 32.2%  $                    3.75  $                    4.72 25.9%  $                     0.43  $                     0.37
    Total 1,761,715 100%  $                    3.69  $                    4.58 24.1%  $                     0.25  $                     0.26
                   
  YTD 20232 Renewals 3,280,867 70.8%  $                    3.76  $                    4.35 15.7%  $                     0.11  $                     0.14
    New Leases 1,352,909 29.2%  $                    3.76  $                    4.96 31.9%  $                     0.34  $                     0.36
    Total 4,633,776 100%  $                    3.76  $                    4.53 20.5%  $                     0.18  $                     0.20

 

Lease Expiration Schedule
                   
  Year Square Footage ABR3 % of ABR Expiring4    
  Available 831,603 $              - -  
  2023 113,600 926,567 0.6%  
  2024 5,160,784 22,403,836 15.0%  
  2025 7,902,301 34,639,740 23.2%  
  2026 5,147,740 24,450,241 16.4%  
  2027 4,340,088 20,027,668 13.4%  
  Thereafter 10,645,869 46,956,363 31.4%  
  Total 34,141,985  $      149,404,415 100%  
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
                   

 

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 third quarter activity, total an aggregate of 5,396,550 square feet, all of which are associated with terms of at least six months. The Company will experience a 20.5% increase in rental rates on a cash basis from these leases.
3)Annualized base rent is calculated as monthly contracted base rent as of September 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 September 30, 2023.

 

Page 12 

 
Plymouth Industrial REIT, Inc.
Leased Square Feet and Annualized Base Rent by Tenant Industry
 
Unaudited as of 9/30/2023

 

Industry Total Leased
Square Feet
# of Leases % Rentable
Square Feet
ABR1 % ABR ABR Per
Square Foot
Logistics & Transportation              9,898,429                            86 29.7%                 40,376,041 27.0%  $                    4.08
Wholesale/Retail              2,297,588                            29 6.9%                 11,520,930 7.7%                        5.01
Automotive              2,197,139                            27 6.6%                 10,270,804 6.9%                        4.67
Printing & Paper              1,976,631                            17 5.9%                    7,576,158 5.1%                        3.83
Home & Garden              1,841,386                            19 5.5%                    6,261,361 4.2%                        3.40
Construction              1,765,118                            41 5.3%                    7,951,324 5.3%                        4.50
Cardboard and Packaging              1,630,027                            20 4.9%                    6,677,465 4.5%                        4.10
Food & Beverage              1,487,131                            22 4.5%                    7,377,658 4.9%                        4.96
Light Manufacturing              1,234,493                            12 3.7%                    4,463,287 3.0%                        3.62
Healthcare              1,017,495                            39 3.1%                    6,106,967 4.1%                        6.00
Other Industries*              7,964,945                          202 23.9%                 40,822,420 27.3%                        5.13
Total           33,310,382                          514 100.0%  $           149,404,415 100.0%  $                    4.49
             
             
*Other Industries Total Leased
Square Feet
# of Leases % Rentable
Square Feet
ABR1 % ABR ABR Per
Square Foot
Plastics                 939,728                            13 2.8%                    4,417,625 3.0%  $                    4.70
Education                 925,840                              8 2.8%                    4,464,571 2.9%                        4.82
Industrial Equipment Components                 791,180                            21 2.4%                    3,457,339 2.3%                        4.37
Metal Fabrication/Finishing                 639,114                            10 1.9%                    3,118,936 2.1%                        4.88
Technology & Electronics                 579,761                            22 1.7%                    3,713,363 2.5%                        6.40
Chemical                 527,632                              9 1.6%                    2,084,581 1.4%                        3.95
Storage                 520,540                            10 1.6%                    2,895,065 1.9%                        5.56
Aero Space                 455,605                              3 1.4%                    1,442,410 1.0%                        3.17
Business Services                 432,385                            24 1.3%                    3,386,180 2.3%                        7.83
Plumbing Equipment/Services                 404,712                              7 1.2%                    1,578,014 1.1%                        3.90
Other2              1,748,448                            75 5.2%                 10,264,336 6.8%                        5.87
Total              7,964,945                          202 23.9%  $             40,822,420 27.3%  $                    5.13
             
             

 

1)Annualized base rent is calculated as monthly contracted base rent as of September 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 9/30/2023

  

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     27,778,343 406 83.4%  $          121,660,724 81.5%  $            4.38
Modified Net   3,570,144 61 10.7%                 18,138,908 12.1%                5.08
Gross   1,961,895 47 5.9%                   9,604,783 6.4%                4.90
          Total   33,310,382 514 100.0%  $          149,404,415 100.0%  $            4.49
                 
                 
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   16,807,117 408 50.5%  $            81,573,176 54.6%  $            4.85
Single-Tenant   16,503,265 106 49.5%                 67,831,239 45.4%                4.11
          Total   33,310,382 514 100.0%  $          149,404,415 100.0%  $            4.49
                 
                 
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     21,266,014 119 63.9%  $            84,552,867 56.6%  $            3.98
Warehouse/Light Manufacturing   8,731,275 41 26.2%                 39,710,476 26.6%                4.55
Small Bay Industrial2   3,313,093 51 9.9%                 25,141,072 16.8%                7.59
          Total   33,310,382 211 100.0%  $          149,404,415 100.0%  $            4.49
                 
                 

 

1)Annualized base rent is calculated as monthly contracted base rent as of September 30, 2023, multiplied by 12. Excludes rent abatements.
2)Small bay industrial is inclusive of flex space totaling 528,493 leased square feet and annualized base rent of $6,315,302. 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 9/30/2023

 

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 $                4.60 $        3,539,875 2.4%
 Geodis Logistics, LLC St. Louis Logistics & Transportation 1 624,159 8/31/2025 4.36 2,718,993 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%
 ODW Logistics, Inc. Columbus Logistics & Transportation 1 772,450 6/30/2025 2.99 2,312,163 1.5%
 Archway Marketing Holdings, Inc. Chicago Logistics & Transportation 3 503,000 3/31/2026 4.51 2,268,180 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 10/31/2029 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 Wholesale/Retail 2 266,803 4/30/2032 6.94 1,852,295 1.2%
 Total Largest Tenants by Annualized Rent     19 5,743,197   $                4.08 $     23,435,411 15.7%
 All Other Tenants     495 27,567,185   $                4.57 $   125,969,004 84.3%
Total Company Portfolio     514 33,310,382   $                4.49 $   149,404,415 100.0%

 

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 63 179,763 240,066 74.9% 76.8% $         1,761,316 $       1,761,316 1.2% $           9.80
 5,000 - 9,999 76 542,551 644,346 84.3% 84.3% 4,598,708 4,598,708 3.1% 8.48
 10,000 - 24,999 110 1,881,750 1,944,820 96.8% 97.3% 13,709,146 13,709,146 9.1% 7.29
 25,000 - 49,999 96 3,416,168 3,525,285 96.9% 96.9% 19,814,938 19,814,938 13.2% 5.80
 50,000 - 99,999 76 5,310,160 5,442,106 97.6% 97.6% 23,939,139 23,939,139 16.0% 4.51
 100,000 - 249,999 63 10,262,572 10,627,944 96.5% 96.5% 43,141,773 43,779,273 29.2% 4.20
 > 250,000 30 11,717,418 11,717,418 100.0% 100.0% 42,439,395 42,439,395 28.2% 3.62
 Total / Weighted Average 514 33,310,382 34,141,985 97.6% 97.6% $    149,404,415 $  150,041,915 100.0% $           4.49
                   
                   

 

1)Annualized base rent is calculated as monthly contracted base rent as of September 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 September 30, 2023 plus annualized base rent for leases signed but not commenced as of September 30, 2023.
4)In-Place + Uncommenced ABR per SF is calculated as in-place current rent annualized base rent as of September 30, 2023 plus annualized base rent for leases signed but not commenced as of September 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
  Atlanta3 10 13 87.6% 2,086,835 6.1%  $                       8,440 5.6%
  Chicago 39 40 99.6% 6,624,335 19.4%                         30,163 20.3%

 

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%                           1,229 0.8%
  Cincinnati3 10 12 95.0% 2,710,964 7.9%                         10,606 7.1%
  Cleveland 16 19 98.6% 3,979,209 11.7%                         18,383 12.4%
  Columbus 15 15 100.0% 3,757,614 11.0%                         13,485 9.0%
  Indianapolis 17 17 98.3% 4,085,169 12.0%                         15,455 10.3%
  Jacksonville3 8 27 99.6% 2,092,646 6.1%                         14,992 10.0%
  Kansas City 1 1 100.0% 221,911 0.6%                               837 0.6%
  Memphis 25 49 94.7% 4,783,046 14.0%                         17,509 11.7%
  Philadelphia 1 1 99.8% 156,634 0.5%                           1,061 0.7%
  St. Louis 12 14 99.4% 3,219,689 9.4%                         15,135 10.1%
  Total 156 211 97.6% 34,141,985 100.0%  $                   149,404 100.0%

 

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 13  $           111,988,423  $                   106,970 6.9%  $                   154,583
  Chicago IL, IN, WI 40               279,749,706                       275,245 17.6%                       710,499
  Boston ME 2                  19,023,122                         19,222 1.2%                         40,729
  Charlotte NC 1                  20,400,000                         18,999 1.2%                         20,821
  Cincinnati OH, KY 12               106,705,354                       109,037 7.0%                       190,851
  Cleveland OH 19               201,550,000                       190,629 12.3%                       362,436
  Columbus OH 15               157,624,379                       148,529 9.6%                       293,943
  Indianapolis IN 17               149,251,426                       141,881 9.1%                       356,416
  Jacksonville FL, GA 27               153,931,164                       142,649 9.2%                       207,038
  Kansas City MO 1                    8,600,000                           9,057 0.6%                         20,451
  Memphis MS, TN 49               185,406,993                       181,828 11.7%                       349,852
  Philadelphia NJ 1                    9,700,000                           8,786 0.6%                         14,912
  St. Louis IL, MO 14               213,787,000                       201,319 13.0%                       325,818
  Total   211  $       1,617,717,567  $               1,554,151 100.0%  $               3,048,349
               
               

 

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 September 30, 2023, multiplied by 12. Excludes rent abatements.
3)During Q1 2023, the 154,692 square feet development property in Cincinnati was placed in-service. During Q3 2023, the 40,572 and 180,000 square feet development properties in Jacksonville and Atlanta, respectively, were 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 September 30, 2023 excludes development projects of $8,672, $2,454 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 $852 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.

 

Page 16 

 
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.
       

 

 

Page 17 

 
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: 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 are classified as repositioning, lease-up during 2022 or 2023 (8 buildings representing approximately 935,000 of rentable square feet) or under contract for sale. For 2023, the Same Store Portfolio consists of 137 properties aggregating 30.8 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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