SECOND 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 August 1, 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 August 8, 2024 by dialing (877) 344-7529 and entering the replay access code, 6504762.

Highlights

As of June 30, 2024

Acquisition Activity

Acquisitions ($ in Thousands)

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

1       Represents total direct consideration paid rather than GAAP cost basis.

2       Weighted based on Purchase Price.

3       Calculated as Purchase Price divided by square footage.

Development Projects

As of June 30, 2024

Q2 2024 Supplemental | 7

 

Value Creation Examples

 

 

 

INDIANAPOLIS: Lease-up / Building Refurbishment		JACKSONVILLE: New Industrial Development		MEMPHIS: New Acquisition
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 the 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 approximately 42,667 square feet.		Purchased 1,621,241 square-foot, 14-building industrial portfolio in Memphis, TN for $100.5 MM for initial NOI yield of 8.0%. At acquisition, portfolio was 94% leased to 46 tenants with weighted average remaining lease term of 3.4 years. In-place rents are consistent with our portfolio average mark-to-market of 18% to 20%. In addition to significant mark-to-market opportunity, additional value add opportunities include excess land capable of supporting 115,000 square feet of new development and potential user sales.

 

Guidance

As of July 29, 2024

Unaudited (in thousands, except per-share amounts)

Plymouth tightened its full year 2024 guidance ranges for net income and Core FFO per weighted average common share and units and adjusted its accompanying assumptions, which can be found in the tables below:

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 June 30, 2024

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

Capitalization

As of June 30, 2024

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

Capital Markets Activity

Net Asset Value Components

As of June 30, 2024

Unaudited ($ in thousands)

Operational & Portfolio Information

Leasing Activity

As of June 30, 2024

Unaudited

Lease Renewals and New Leases

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

1 Shown as per dollar, per square foot, per year.

2 Executed leases scheduled to commence during 2024, which includes the second quarter activity, total an aggregate of 3,199,916 square feet, all of which are associated with terms of at least six months. The Company will experience a 18.2% increase in rental rates on a cash basis from these leases.

Leasing Activity (continued)

As of June 30, 2024

Unaudited

1

Annualized base rent is calculated as monthly contracted base rent as of June 30, 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 June 30, 2024.

 

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Leased Square Feet and Annualized Base Rent by Tenant Industry

As of June 30, 2024

Unaudited

 

Industry	Total Leased Square Feet	# of Leases	% Rentable Square Feet	ABR1	% ABR	ABR Per Square Foot
Logistics & Transportation	9,548,501	82	29.2%	$       40,145,791	26.4%	$         4.20
Wholesale/Retail	2,405,186	29	7.3%	12,038,020	7.9%	5.01
Automotive	2,272,880	27	6.9%	10,853,337	7.1%	4.78
Printing & Paper	1,935,478	15	5.9%	7,449,722	4.9%	3.85
Home & Garden	1,914,586	18	5.8%	6,761,000	4.4%	3.53
Construction	1,475,320	38	4.5%	7,299,125	4.8%	4.95
Cardboard and Packaging	1,294,442	17	3.9%	5,875,797	3.9%	4.54
Food & Beverage	1,648,993	23	5.0%	8,735,436	5.7%	5.30
Light Manufacturing	1,267,572	12	3.9%	4,704,389	3.1%	3.71
Healthcare	1,035,414	38	3.2%	6,330,027	4.2%	6.11
Plastics	991,933	13	3.0%	4,787,581	3.1%	4.83
Education	925,840	8	2.8%	4,554,083	3.0%	4.92
Industrial Equipment Components	835,839	23	2.6%	4,061,607	2.7%	4.86
Other Industries2	5,225,196	153	16.0%	28,750,072	18.8%	5.50
Total	32,777,180	496	100.0%	$     152,345,987	100.0%	$         4.65

 

1

Annualized base rent is calculated as monthly contracted base rent as of June 30, 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.

 

Q2 2024 Supplemental | 22

 

Leased Square Feet and Annualized Base Rent by Type

As of June 30, 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	27,106,571	394	82.7%	$    122,858,026	80.6%	$     4.53
Modified Net	3,653,110	60	11.1%	19,009,725	12.5%	5.20
Gross	2,017,499	42	6.2%	10,478,236	6.9%	5.19
Total	32,777,180	496	100.0%	$    152,345,987	100.0%	$     4.65
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	15,961,393	390	48.7%	$      81,389,697	53.4%	$     5.10
Single-Tenant	16,815,787	106	51.3%	70,956,290	46.6%	4.22
Total	32,777,180	496	100.0%	$    152,345,987	100.0%	$     4.65
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	21,186,193	118	64.6%	$      86,460,202	56.8%	$     4.08
Warehouse/Light Manufacturing	8,215,681	40	25.1%	39,319,103	25.8%	4.79
Small Bay Industrial2	3,375,306	52	10.3%	26,566,682	17.4%	7.87
Total	32,777,180	210	100.0%	$    152,345,987	100.0%	$     4.65

 

1

Annualized base rent is calculated as monthly contracted base rent as of June 30, 2024, multiplied by 12. Excludes rent abatements.

2

Small bay industrial is inclusive of flex space totaling 586,267 leased square feet and annualized base rent of $6,999,900. Small bay industrial is multipurpose space; flex space includes office space that accounts for greater than 50% of the total rentable area.

 

Q2 2024 Supplemental | 23

 

Top 10 Tenants by Annualized Base Rent

As of June 30, 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	7/31/2024	$         4.60	$        3,539,875	2.3%
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	12/31/2026	4.89	2,549,829	1.7%
Houghton Mifflin Harcourt Company	Chicago	Education	1	513,512	3/31/2029	4.63	2,377,561	1.6%
Archway Marketing Holdings, Inc.	Chicago	Logistics & Transportation	3	503,000	3/31/2026	4.61	2,319,990	1.5%
ODW Logistics, Inc.	Columbus	Logistics & Transportation	1	772,450	6/30/2025	2.99	2,312,163	1.5%
ASW Supply Chain Services, LLC	Cleveland	Logistics & Transportation	5	577,237	11/30/2027	3.65	2,104,933	1.4%
Balta US, Inc.	Jacksonville	Home & Garden	2	629,084	10/31/2029	3.19	2,004,036	1.3%
Communications Test Design, Inc.	Memphis	Logistics & Transportation	2	566,281	12/31/2024	3.41	1,930,826	1.3%
Winston Products, LLC	Cleveland	Wholesale/Retail	2	266,803	4/30/2032	7.08	1,888,831	1.2%
Total Largest Tenants by Annualized Rent			19	5,743,197		$         4.13	$      23,747,037	15.6%
All Other Tenants			477	27,033,983		$         4.76	$    128,598,950	84.4%
Total Company Portfolio			496	32,777,180		$         4.65	$    152,345,987	100.0%

 

1

Annualized base rent is calculated as monthly contracted base rent as of June 30, 2024, multiplied by 12. Excludes rent abatements.

 

Q2 2024 Supplemental | 24

 

Lease Segmentation by Size

As of June 30, 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	57	163,336	227,142	71.9%	73.8%	$        1,722,170	$        1,919,170	1.3%	$            11.75
5,000 - 9,999	68	482,663	590,546	81.7%	82.5%	4,267,369	4,374,829	2.9%	9.06
10,000 - 24,999	112	1,914,489	1,951,440	98.1%	98.1%	14,625,497	14,625,497	9.6%	7.64
25,000 - 49,999	88	3,098,090	3,290,562	94.2%	94.2%	18,577,104	18,577,104	12.1%	6.00
50,000 - 99,999	79	5,530,203	5,583,555	99.0%	99.0%	26,087,136	26,087,136	17.0%	4.72
100,000 - 249,999	63	10,184,963	10,442,527	97.5%	98.9%	45,138,483	45,512,883	29.7%	4.47
> 250,000	29	11,403,436	11,717,418	97.3%	100.0%	41,928,228	41,928,228	27.4%	3.68
Total/Weighted Avg.	496	32,777,180	33,803,190	97.0%	98.3%	$    152,345,987	$    153,024,847	100.0%	$               4.67

 

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 June 30, 2024, multiplied by 12. Excludes rent abatements.

3

In-Place + Uncommenced ABR calculated as in-place current annualized base rent as of June 30, 2024 plus annualized base rent for leases signed but not commenced as of June 30, 2024.

4

In-Place + Uncommenced ABR per SF is calculated as in-place current rent annualized base rent as of June 30, 2024 plus annualized base rent for leases signed but not commenced as of June 30, 2024, divided by leased square feet plus uncommenced leased square feet.

 

Q2 2024 Supplemental | 25

 

Capital Expenditures

Unaudited ($ in thousands)

 

	June 30, 2024	March 31, 2024	December 31, 2023	September 30, 2023	June 30, 2023
Tenant improvements	$         480	$        320	$            375	$         290	$    361
Lease commissions	$         927	$        674	$            505	$      1,675	$    731
Total Recurring Capital Expenditures	$      1,407	$        994	$            880	$      1,965	$ 1,092
Capital expenditures	$      3,695	$        664	$         5,074	$      5,638	$ 4,217
Development	$      2,058	$     2,336	$         1,107	$      2,494	$ 3,423
Total Non-recurring Capital Expenditures	$      5,753	$     3,000	$         6,181	$      8,132	$ 7,640
Total Capital Expenditures	$      7,160	$     3,994	$         7,061	$    10,097	$ 8,732

 

Q2 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): FFO is a non-GAAP financial measure that is widely recognized as a measure of a 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 (Loss) (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 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 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 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 (5 buildings representing approximately 1,553,000 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.