On July 31, 2024, Plymouth Industrial REIT Inc (PLYM, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. Plymouth Industrial REIT Inc is a full-service, vertically integrated, self-administered, and self-managed Maryland corporation focused on the acquisition, ownership, and management of single and multi-tenant Class B industrial properties across the United States.
Financial Performance Overview
For the second quarter of 2024, Plymouth Industrial REIT Inc reported net income attributable to common stockholders of $1.2 million, or $0.03 per weighted average common share, surpassing the analyst estimate of -$0.04 per share. This marks a significant improvement from the net loss of $3.6 million, or -$0.08 per share, reported in the same period last year.
However, the company reported consolidated total revenues of $48.7 million, falling short of the estimated $50.90 million and down from $49.9 million in Q2 2023. The decline in revenue was primarily attributed to a one-time write-off and lower average occupancy during the quarter.
Key Metrics and Financial Achievements
Despite the revenue shortfall, Plymouth Industrial REIT Inc achieved several notable financial milestones:
- Net Operating Income (NOI) for Q2 2024 was $35.1 million, up from $34.2 million in Q2 2023.
- Same Store NOI (SS NOI) excluding early termination income on a GAAP basis increased by 3.3% year-over-year to $32.2 million.
- Core Funds from Operations (Core FFO) rose to $21.8 million, or $0.48 per share, compared to $19.9 million, or $0.46 per share, in Q2 2023.
- Adjusted Funds from Operations (AFFO) increased to $22.3 million, or $0.49 per share, from $18.5 million, or $0.42 per share, in the same period last year.
Income Statement and Balance Sheet Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income (Loss) | $1.2 million | $(3.6) million |
| Total Revenues | $48.7 million | $49.9 million |
| NOI | $35.1 million | $34.2 million |
| Core FFO | $21.8 million | $19.9 million |
| AFFO | $22.3 million | $18.5 million |
Investment and Leasing Activity
During the second quarter, Plymouth Industrial REIT Inc made significant strides in its investment and leasing activities:
- Acquired a 1.62 million square foot portfolio of industrial properties in Memphis, Tennessee, for $100.5 million, with an initial NOI yield of 8.0%.
- Completed the disposition of a 221,911 square foot industrial building in Kansas City, Missouri, for $9.2 million, resulting in a net gain of approximately $849,000.
- Leases commencing during Q2 2024 totaled 1.81 million square feet, with an 18.8% increase in rental rates on a cash basis.
Liquidity and Guidance
As of July 29, 2024, Plymouth Industrial REIT Inc had a cash balance of approximately $18.6 million and $101.6 million of capacity under its unsecured line of credit. The company tightened its full-year 2024 guidance ranges for net income and Core FFO per share, projecting Core FFO to be between $1.88 and $1.90 per share.
Jeff Witherell, CEO and Co-Founder, stated, "The second quarter results reflect our continued focus on driving organic growth through leasing and improved property operations. We are confident we will capitalize on the leasing opportunities ahead of us for the balance of the year and in 2025."
For more detailed financial information and reconciliations of non-GAAP measures, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Plymouth Industrial REIT Inc for further details.
