FIRST QUARTER 2024 Plymouth REIT Supplemental Information

Table of Contents

Disclaimers

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 28-30. For reconciliations of the non-GAAP financial measures to the most directly comparable U.S. GAAP measures, refer to page 13.

Executive Summary

Company Overview 

Plymouth Industrial REIT, Inc. (NYSE: PLYM) is a full service, vertically integrated real estate investment 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 RESEARCH Coverage

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 May 2, 2024 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 May 9, 2024 by dialing (877) 344-7529 and entering the replay access code, 6841649.

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.

Highlights

For Three Months Ended March 31, 2024

Acquisition Activity

As of March 31, 2024

Acquisitions ($ in Thousands)

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

Development Projects

As of March 31, 2024

1Q 2024 Supplemental | 7

 

Value Creation Examples

 

 

 

INDIANAPOLIS: Lease-up / Building Refurbishment		JACKSONVILLE: New Industrial Development		CHICAGO: Disposition / Value Realized
Expanded existing tenant in the building by an additional 42,910 square feet and extended term for 15 years at a rental rate increase of 18% over expiring rents. Expanded other existing tenant by an additional 147,310 square feet for 4 years without any downtime. The property was acquired at a going-in yield of 6.9%. Stabilized yield is now 8.0% with annual lease escalations averaging 3.75%.		Delivered two buildings in 2023 totaling 80,322 square feet, both of which are fully leased. Commenced construction on a third, 100% pre-leased building at Liberty Business Park which will comprise 52,920 square feet. The anticipated delivery is Q4 2024. Marketing an additional fully designed and permit-ready site at Liberty Business Park that can provide 41,958 square feet.		Sold a 306,552 square-foot industrial building at 6510 West 73rd Street in Chicago. Net proceeds after the payoff of a $6.7 million mortgage, return of lender escrow reserves, and other adjustments were $14.0 million. The disposition yielded a 4.9% cap rate on in-place NOI and an IRR of 31.1% over a six-year hold period.

 

Guidance

As of March 31, 2024

Unaudited (in thousands, except per-share amounts)

PLYM affirmed its full year 2024 guidance range for Core FFO per weighted average common share and units previously issued on February 21, 2024, and updated its range for net income per weighted average common share and units and accompanying assumptions.

Financial Information

Consolidated Balance Sheets

Unaudited ($ in thousands)

Consolidated Statements of Operations

Unaudited ($ in thousands, except per-share amounts)

Non-GAAP Measurements

Unaudited ($ in thousands, except per-share amounts)

Same Store Net Operating Income (NOI)

Unaudited ($ and SF in thousands)

Debt Summary

As of March 31, 2024

Unaudited ($ in thousands, except per-share amounts)

Capitalization

As of March 31, 2024

Unaudited ($ in thousands, except per-share amounts)

Net Asset Value Components

As of March 31, 2024

Unaudited ($ in thousands)

Operational & Portfolio Information

Leasing Activity

As of March 31, 2024

Unaudited

Note: Lease renewals and new lease activity excludes leases with terms less than six months, and leases associated with construction.

Leasing Activity (continued)

As of March 31, 2024

Unaudited

1

Annualized base rent is calculated as monthly contracted base rent as of March 31, 2024, multiplied by 12. Excludes rent abatements.

2

Calculated as annualized base rent set forth in this table divided by total annualized base rent as of March 31, 2024.

 

 

1Q 2024 Supplemental | 21

 

Leased Square Feet and Annualized Base Rent by Tenant Industry

As of March 31, 2024

Unaudited

 

Industry	Total Leased   Square Feet	# of Leases	% Rentable   Square Feet	ABR1		% ABR	ABR Per Square Foot
Logistics & Transportation	9,780,990	84	29.7%	$	40,761,535	27.0%	$	$ 4.17
Wholesale/Retail	2,397,143	28	7.3%		11,939,672	7.9%		4.98
Automotive	2,258,860	26	6.9%		10,573,834	7.0%		4.68
Printing & Paper	1,942,978	16	5.9%		7,436,389	4.9%		3.83
Home & Garden	1,914,586	18	5.8%		6,585,525	4.4%		3.44
Construction	1,527,936	41	4.6%		7,293,813	4.8%		4.77
Cardboard and Packaging	1,294,442	17	3.9%		5,689,437	3.8%		4.40
Food & Beverage	1,663,050	24	5.0%		8,675,750	5.7%		5.22
Light Manufacturing	1,227,572	11	3.7%		4,445,727	2.9%		3.62
Healthcare	1,024,416	39	3.1%		6,234,416	4.1%		6.09
Plastics	955,728	13	2.9%		4,578,064	3.0%		4.79
Education	925,840	8	2.8%		4,515,840	3.0%		4.88
Industrial Equipment Components	852,039	24	2.6%		4,140,649	2.7%		4.86
Other Industries2	5,197,996	154	15.8%		28,352,961	18.8%		5.45
Total	32,963,576	503	100.0%	$	151,223,612	100.0%	$	4.59

 

1

Annualized base rent is calculated as monthly contracted base rent as of March 31, 2024, multiplied by 12. Excludes rent abatements.

2

Includes over 20 tenant industries for which the total leased square feet aggregates to less than 250,000 square feet or 3% of ABR.

 

1Q 2024 Supplemental | 22

 

Leased Square Feet and Annualized Base Rent by Type

As of March 31, 2024

Unaudited

 

Leased Square Feet and Annualized Base Rent by Lease Type
Lease Type	Total Leased Square Feet	# of Leases	% Leased Square Feet	Annualized Base Rent1		% ABR	ABR Per Square Foot
Triple Net	27,247,340	397	82.7%	$	121,805,248	80.5%	$	4.47
Modified Net	3,694,231	62	11.2%		19,017,017	12.6%		5.15
Gross	2,022,005	44	6.1%		10,401,347	6.9%		5.14
Total	32,963,576	503	100.0%	$	151,223,612	100.0%	$	4.59
Leased Square Feet and Annualized Base Rent by Tenant Type
Tenant Type	Total Leased Square Feet	# of Leases	% Leased Square Feet	Annualized Base Rent1		% ABR	ABR Per Square Foot
Multi-Tenant	16,426,039	398	49.8%	$	82,047,826	54.3%	$	4.99
Single-Tenant	16,537,537	105	50.2%		69,175,786	45.7%		4.18
Total	32,963,576	503	100.0%	$	151,223,612	100.0%	$	4.59
Leased Square Feet and Annualized Base Rent by Building Type
Building Type	Total Leased Square Feet	# of Buildings	% Leased Square Feet	Annualized Base Rent1		% ABR	ABR Per Square Foot
Warehouse/Distribution	21,228,496	118	64.4%	$	85,703,511	56.7%	$	4.04
Warehouse/Light Manufacturing	8,349,976	41	25.3%		39,190,300	25.9%		4.69
Small Bay Industrial2	3,385,104	52	10.3%		26,329,801	17.4%		7.78
Total	32,963,576	211	100.0%	$	151,223,612	100.0%		4.59

 

1

Annualized base rent is calculated as monthly contracted base rent as of March 31, 2024, multiplied by 12. Excludes rent abatements.

2

Small bay industrial is inclusive of flex space totaling 606,799 leased square feet and annualized base rent of $6,988,186. Small bay industrial is multipurpose space; flex space includes office space that accounts for greater than 50% of the total rentable area.

 

1Q 2024 Supplemental | 23

 

Top 10 Tenants by Annualized Base Rent

As of March 31, 2024

Unaudited

 

Tenant	Market	Industry	# of Leases	Total Leased Square Feet	Expiration	ABR Per Square Foot		Annualized Base Rent1		% Total ABR
FedEx Supply Chain, Inc.	St. Louis	Logistics & Transportation	1	769,500	7/31/24	$	4.60	$	3,539,875	2.3%
Geodis Logistics, LLC	St. Louis	Logistics & Transportation	1	624,159	8/31/25		4.36		2,718,993	1.8%
Royal Canin U.S.A, Inc.	St. Louis	Wholesale/Retail	1	521,171	12/31/25		4.89		2,549,829	1.7%
Houghton Mifflin Harcourt Company	Chicago	Education	1	513,512	3/31/26		4.56		2,341,615	1.5%
ODW Logistics, Inc.	Columbus	Logistics & Transportation	1	772,450	6/30/25		2.99		2,312,163	1.5%
Archway Marketing Holdings, Inc.	Chicago	Logistics & Transportation	3	503,000	3/31/26		4.51		2,268,180	1.5%
ASW Supply Chain Services, LLC	Cleveland	Logistics & Transportation	5	577,237	11/30/27		3.65		2,104,932	1.4%
Balta US, Inc.	Jacksonville	Home & Garden	2	629,084	10/31/29		3.16		1,988,036	1.3%
Communications Test Design, Inc.	Memphis	Logistics & Transportation	2	566,281	12/31/24		3.41		1,930,826	1.3%
Winston Products, LLC	Cleveland	Wholesale/Retail	2	266,803	4/30/32		6.94		1,852,295	1.2%
Total Largest Tenants by Annualized Rent			19	5,743,197		$	4.11	$	23,606,744	15.5%
All Other Tenants			484	27,220,379		$	4.69	$	127,616,868	84.5%
Total Company Portfolio			503	32,963,576		$	4.59	$	151,223,612	100.0%

 

1

Annualized base rent is calculated as monthly contracted base rent as of March 31, 2024, multiplied by 12. Excludes rent abatements.

 

1Q 2024 Supplemental | 24

 

Lease Segmentation by Size

As of March 31, 2024

Unaudited

 

Square Feet	# of Leases	Total Leased Square Feet	Total Rentable Square Feet	Total Leased %	Total Leased % Excluding Repositioning1	Annualized Base Rent2		In-Place + Uncommenced ABR3		% of Total In-Place + Uncommenced ABR	In-Place + Uncommenced ABR Per SF4
< 4,999	60	171,905	234,511	73.3%	75.2%	$	1,701,656	$	1,701,656	1.1%	$ 9.90
5,000 - 9,999	71	500,626	592,362	84.5%	85.3%		4,451,389		4,591,349	3.0%	8.92
10,000 - 24,999	111	1,891,624	1,942,255	97.4%	97.4%		14,185,137		14,185,137	9.3%	7.50
25,000 - 49,999	90	3,192,194	3,301,311	96.7%	96.7%		18,829,017		18,829,017	12.4%	5.90
50,000 - 99,999	79	5,535,583	5,711,472	96.9%	98.0%		25,669,202		26,039,650	17.2%	4.66
100,000 - 249,999	63	10,268,208	10,525,772	97.6%	98.9%		44,633,924		44,633,924	29.4%	4.35
> 250,000	29	11,403,436	11,717,418	97.3%	100.0%		41,753,287		41,753,287	27.6%	3.66
Total/Weighted Avg.	503	32,963,576	34,025,101	96.9%	98.4%	$	151,223,612	$	151,734,020	100.0%	$ 4.59

 

1

Total Leased % Excluding Repositioning excludes vacant square footage being refurbished or repositioned.

2

Annualized base rent is calculated as monthly contracted base rent as of March 31, 2024, multiplied by 12. Excludes rent abatements.

3

In-Place + Uncommenced ABR calculated as in-place current annualized base rent as of March 31, 2024 plus annualized base rent for leases signed but not commenced as of March 31, 2024.

4

In-Place + Uncommenced ABR per SF is calculated as in-place current rent annualized base rent as of March 31, 2024 plus annualized base rent for leases signed but not commenced as of March 31, 2024, divided by leased square feet plus uncommenced leased square feet.

 

1Q 2024 Supplemental | 25

 

Capital Expenditures

Unaudited ($ in thousands)

 

	March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
Tenant improvements	$	320	$	375	$	290	$	361	$	425
Lease commissions	$	674	$	505	$	1,675	$	731	$	1,381
Total Recurring Capital Expenditures	$	994	$	880	$	1,965	$	1,092	$	1,806
Capital expenditures	$	664	$	5,074	$	5,638	$	4,217	$	2,593
Development	$	2,336	$	1,107	$	2,494	$	3,423	$	5,820
Total Non-recurring Capital Expenditures	$	3,000	$	6,181	$	8,132	$	7,640	$	8,413
Total Capital Expenditures	$	3,994	$	7,061	$	10,097	$	8,732	$	10,219

 

1Q 2024 Supplemental | 26

 

 

Appendix

 

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) 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 an REIT’s operating performance, thereby, providing investors the potential to compare our operating performance with that of other REITs. 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.

Glossary (continued)

Non-GAAP Financial Measures Definitions (continued):

Core Funds from Operations (“Core FFO”): We calculate Core FFO by adjusting FFO for non-comparable items such as dividends paid (or declared) to holders of our preferred stock, acquisition and transaction related expenses for transactions not completed, and certain non-cash operating expenses such as impairment on real estate lease, appreciation/(depreciation) of warrants and loss on extinguishment of debt. We believe that Core FFO is a useful supplemental measure in addition to FFO by adjusting for items that are not considered by us to be part of the period over period operating performance of our property portfolio, thereby, providing a more meaningful and consistent comparison of our operating and financial performance during the periods presented. 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 FFOfor 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 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.

Glossary (continued)

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, 2022. 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 2023 or 2024 (6 buildings representing approximately 1,755,000 of rentable square feet placed into service during 2023 or 2024) or under contract for sale. For 2024, the Same Store Portfolio consists of 146 properties aggregating 31.2 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.