Form 8-K Plymouth Industrial REIT For: Aug 08
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
August 8, 2018
Date of Report (Date of earliest event reported)
PLYMOUTH INDUSTRIAL REIT, INC.
(Exact Name of Registrant as Specified in Its Charter)
| MARYLAND | 001-38106 | 27-5466153 | ||
|
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) | ||
260 Franklin Street, 7th Floor
Boston, MA 02110
(Address of Principal Executive Offices) (Zip Code)
(617) 340-3814
(Registrant’s Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 2.02 | Results of Operations and Financial Condition |
On August 8, 2018, Plymouth Industrial REIT, Inc. (the “Company”) issued a press release (the “Earnings Release”) announcing, among other things, earnings for the quarter ended June 30, 2018. The text of the Earnings Release is included as Exhibit 99.1 to this Current Report.
The Earnings Release is furnished pursuant to Item 2.02 and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
| Item 7.01 | Regulation FD Disclosure. |
On August 8, 2018, the Company disclosed a supplemental analyst package in connection with its earnings conference call for the quarter ended June 30, 2018 which will take place on August 9, 2018. A copy of the supplemental analyst package is attached hereto as Exhibit 99.2.
The supplemental analyst package is furnished pursuant to Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits: |
| Exhibit No. | Description | ||
| 99.1 |
Press Release dated August 8, 2018
| ||
| 99.2 | Supplemental Analyst Package – Second Quarter 2018 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PLYMOUTH INDUSTRIAL REIT, INC. | ||||||
| Date: August 8, 2018 | By: |
/s/ Jeffrey E. Witherell | ||||
| Jeffrey E. Witherell | ||||||
| Chief Executive Officer | ||||||
Exhibit 99.1
Contact:
Tripp Sullivan
SCR Partners
(615) 760-1104
PLYMOUTH INDUSTRIAL REIT REPORTS SECOND QUARTER RESULTS AND AFFIRMS GUIDANCE
BOSTON, August 8, 2018 – Plymouth Industrial REIT, Inc. (NYSE America: PLYM) (the “Company”) today announced its consolidated financial results for the quarter ended June 30, 2018 and other recent developments. A comparison of the reported amounts per share for the second quarter of 2018 to prior-year periods has been affected by an increase in the common stock outstanding resulting from the completion of, and the use of proceeds from, the Company’s initial public offering (the “IPO") in June 2017 and its preferred stock offering in October 2017, as discussed below.
Second Quarter and Subsequent Highlights
| · | Reported results for the second quarter of 2018 reflect a net loss attributable to common stockholders of $7.7 million, or $(2.27) per weighted average common share, including a loss on extinguishment of debt of $3.6 million; net operating income (“NOI”) of $8.2 million; Funds from Operations (“FFO”) of $2.5 million; FFO attributable to common stockholders and unit holders of $0.39 per weighted average common share and units; and Adjusted FFO (“AFFO”) of $0.42 per weighted average common share and units. |
| · | For the second quarter of 2018, declared a regular quarterly cash dividend of $0.375 for the common stock and a regular quarterly cash dividend of $0.46875 per share for the 7.50% Series A Cumulative Redeemable Preferred Stock (“the Preferred Stock”). |
| · | On April 9, 2018, the Company acquired two Class B industrial properties totaling 270,000 square feet in the Chicago area for $15.675 million in cash and a projected initial yield of 8.0%. |
| · | From April to July 2018, the Company completed a series of financings totaling $135 million that eliminated variable rate and higher interest rate debt, resulting in 80% of its total debt at fixed rates maturing over the next 5 to 10 years with a weighted average interest rate of 4.13%. |
| · | On July 23, 2018, the Company completed an underwritten registered public offering of 1.1 million shares of common stock that resulted in net proceeds of approximately $16.0 million. |
Jeff Witherell, Chairman and Chief Executive Officer of Plymouth Industrial REIT, noted, “Our focus continues to be on improving our portfolio through re-leasing, asset management and acquisitions as well as enhancing our capital structure. We made major strides on all fronts as we had over 857,000 square feet of new and renewal leases commencing this quarter, bringing our occupancy to 93.4%. The reconciliation of the balance sheet was substantial as we completed over $135 million of new financings that locked up 80% of our debt with low, long-term fixed rates and eliminated high interest rate mezzanine debt. The recent overnight follow-on offering also raised $16 million in equity while enabling us to achieve shelf registration eligibility, which should improve our future ability to access capital when the market is appropriately rewarding the embedded value we have created in the portfolio.”
Financial Results for the Second Quarter of 2018
The completion of the IPO on June 14, 2017 and a preferred stock offering on October 25, 2017 provided the Company with a meaningfully different capital structure compared to the prior-year period. The Company believes the use of IPO proceeds and related higher share count, makes year-over-year comparisons less meaningful, particularly on a per share basis.
Net loss attributable to common stockholders for the quarter ended June 30, 2018 was $7.7 million, or $(2.27) per weighted average common share outstanding, compared with net loss attributable to common stockholders of $1.2 million, or $(1.26) per weighted average common share, for the same period in 2017. The increase in net loss for the second quarter of 2018 was primarily due to an increase in depreciation and amortization expense of $3.7 million, a Loss on Debt Extinguishment of $3.6 million related to the payoff of the prior mezzanine debt, and, increased general and administrative expense for professional fees related to public company requirements of approximately $160,000.
Consolidated total revenues for the quarter ended June 30, 2018 were $12.0 million, compared with $5.0 million for the same period in 2017.
Net operating income (NOI) for the quarter ended June 30, 2018 was $8.2 million compared with NOI of $3.5 million for the same period in 2017. NOI in the current quarter included a one-time reduction in operating expenses for real estate tax accruals of $520,000.
EBITDA for the quarter ended June 30, 2018 was $6.7 million compared with $2.2 million for the same period in 2017.
FFO for the quarter ended June 30, 2018 was $2.5 million compared with $(583,000) for the same period in 2017, primarily as a result of significantly higher NOI, the adjustment for loss on extinguishment of debt and the increase in weighted average shares following the IPO in June 2017. FFO attributable to common stockholders and unit holders for the quarter ended June 30, 2018 was $1.6 million, or $0.39 per weighted average common share and units, compared with $(583,000), or $(0.63) per weighted average common share, for the same period in 2017. The increase was due to the reasons noted above for FFO, offset by $1.0 million of preferred stock dividends.
AFFO for the quarter ended June 30, 2018 was $1.7 million, or $0.42 per weighted average common share and units, compared with $(399,000), or $(0.43) per weighted average common share, for the same period in 2017, primarily driven by the change in FFO, an increase in deferred finance fees and non-cash interest of $655,000 offset by increased straight line rent and above/below market rent adjustments and recurring capital expenditures and lease commissions of approximately $813,000 incurred in the quarter and the increase in weighted average shares following the IPO in June 2017.
Investment Activity
As of June 30, 2018, the Company had real estate investments comprised of 51 industrial properties totaling 9.5 million square feet with occupancy of 93.4%. On April 9, 2018, the Company completed the acquisition of two single-tenant Class B industrial properties totaling 270,000 square feet in the greater Chicago area for $15.675 million in total consideration. The purchase price is projected to provide an initial yield of 8.0%.
Leasing Activity
Leases commencing during the second quarter totaled an aggregate of 857,000 square feet, of which 812,000 square feet was for leases of at least six months. The leases six months or longer included 147,000 square feet of renewal leases and 665,000 square feet of new leases. The Company will experience an 8.4% increase in rental rates on a cash basis from these leases. The leasing activity for the quarter was heavily influenced by the 527,127-square-foot lease that commenced in April 2018 at the Company’s property at 3500 Southwest Boulevard in Columbus, Ohio.
For the six months ended June 30, 2018, leases executed totaled 1,362,000 square feet, of which 1,121,000 square feet was for leases of at least six months. The leases six months or longer included 294,000 square feet of renewal leases and 827,000 square feet of new leases. The Company will experience a 7.7% increase in rental rates, on a cash basis, from all of the leases executed in the first six months of 2018 with a lease term of at least six months.
Capital Markets Activity
On April 30, 2018, the Company closed on a 10-year, $21.5 million mortgage with a fixed interest rate of 3.78% that is secured by seven industrial properties. Proceeds from the new financing were used to pay down outstanding borrowings on the Company’s senior secured revolving credit facility.
On May 24, 2018, the Company repaid in full its outstanding mezzanine debt, which was scheduled to mature in October 2023 and had an interest rate of 15.0%, with proceeds from a new $35.7 million senior secured term loan that bears interest at LIBOR plus 700 basis points and matures in August 2021.
On July 10, 2018, the Company closed on a new 10-year $78.0 million loan with a fixed interest rate of 4.35% and secured by 18 Chicago area properties. The proceeds, together with additional working capital, were used to repay in full the Company’s $79.8 million variable rate secured term loan that was scheduled to mature in December 2019 and had a floating interest rate of 310 basis points over LIBOR.
On July 23, 2018, the Company closed on an underwritten registered public offering of 1.1 million shares of its common stock, resulting in net proceeds to the Company of approximately $16.2 million.
Quarterly Distributions to Stockholders
On June 1, 2018, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.46875 per share for the Company’s Preferred Stock for the second quarter of 2018. The dividend was paid on July 2, 2018 to stockholders of record on June 15, 2018.
On June 14, 2018, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.375 per share for Company’s common stock for the second quarter of 2018. The dividend was payable on July 31, 2018, to stockholders of record on June 29, 2018.
2018 Outlook
The Company affirmed its 2018 guidance for revenues and NOI previously issued on May 3, 2018. The information provided contains estimates based on the Company’s anticipated results of operations for 2018. All estimates exclude any potential impact from additional acquisitions:
| · | Total revenues of $44.8 million to $45.6 million |
| · | Net operating income of $28.9 million to $29.8 million |
| · | General and administrative expenses of $5.0 million to $5.7 million, including non-cash expenses of $0.8 million to $1.0 million |
| · | 5.1 million common shares and operating partnership units outstanding |
Earnings Conference Call and Webcast
The Company will host a conference call and live audio webcast, both open for the general public to hear, on Thursday, August 9, 2018 at 10:00 a.m. Eastern Time. The number to call for this interactive teleconference is (412) 717-9587. A replay of the call will be available through August 16, 2018, by dialing (412) 317-0088 and entering the replay access code, 10122697.
The live audio webcast of the Company’s quarterly conference call will be available online in the Investor Relations section of the Company’s website at www.plymouthreit.com. The online replay will be available approximately one hour after the end of the call and archived for approximately 90 days.
About Plymouth
Plymouth Industrial REIT, Inc. is a vertically integrated and self-managed real estate investment trust focused on the acquisition and operation of single and multi-tenant industrial properties located in secondary and select primary markets across the United States. The Company seeks to acquire properties that provide income and growth that enable the Company to leverage its real estate operating expertise to enhance shareholder value through active asset management, prudent property re-positioning and disciplined capital deployment.
Forward-Looking Statements
This press release includes “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 release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release, 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. 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 press release, 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.
PLYMOUTH INDUSTRIAL REIT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(In thousands, except share and per share amounts)
| June 30, | December 31, | |||||||
| 2018 | 2017 | |||||||
| Assets | ||||||||
| Real estate properties | $ | 320,863 | $ | 303,402 | ||||
| Less accumulated depreciation | (32,809 | ) | (25,013 | ) | ||||
| Real estate properties, net | 288,054 | 278,389 | ||||||
| Cash | 4,311 | 12,915 | ||||||
| Cash held in escrow | 6,221 | 5,074 | ||||||
| Restricted cash | 1,596 | 1,174 | ||||||
| Deferred lease intangibles, net | 25,020 | 27,619 | ||||||
| Other assets | 7,430 | 4,782 | ||||||
| Total assets | $ | 332,632 | $ | 329,953 | ||||
| Liabilities, Series A Preferred Stock and Equity | ||||||||
| Liabilities: | ||||||||
| Secured debt, net | 251,919 | 195,431 | ||||||
| Mezzanine debt, net | — | 29,364 | ||||||
| Borrowings under line of credit, net | 18,678 | 20,837 | ||||||
| Deferred interest | — | 1,357 | ||||||
| Accounts payable, accrued expenses and other liabilities | 16,864 | 16,015 | ||||||
| Deferred lease intangibles, net | 6,657 | 6,807 | ||||||
| Total Liabilities | 294,118 | 269,811 | ||||||
| Preferred stock, Series A; $0.01 par value, 100,000,000 shares authorized; 2,040,000 shares issued and outstanding (aggregate liquidation preference of $51,000) | 48,868 | 48,931 | ||||||
| Equity (Deficit): | ||||||||
| Common stock, $0.01 par value: 900,000,000 shares authorized; 3,556,043 and 3,819,201 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively | 36 | 39 | ||||||
| Additional paid in capital | 114,085 | 123,270 | ||||||
| Accumulated deficit | (129,982 | ) | (119,213 | ) | ||||
| Total stockholders' equity (deficit) | (15,861 | ) | 4,096 | |||||
| Non-controlling interest | 5,507 | 7,115 | ||||||
| Total equity (deficit) | (10,354 | ) | 11,211 | |||||
| Total liabilities, Series A preferred stock and equity | $ | 332,632 | $ | 329,953 | ||||
PLYMOUTH INDUSTRIAL REIT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(In thousands, except share and per share amounts)
| For the Three Months | For the Six Months | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Rental revenue | $ | 9,019 | $ | 3,650 | $ | 17,503 | $ | 7,295 | ||||||||
| Tenant recoveries | 2,957 | 1,376 | 5,903 | 2,669 | ||||||||||||
| Other revenue | 71 | 1 | 521 | 1 | ||||||||||||
| Total revenues | 12,047 | 5,027 | 23,927 | 9,965 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Property | 3,787 | 1,517 | 8,240 | 2,925 | ||||||||||||
| Depreciation and amortization | 6,444 | 2,785 | 12,986 | 5,557 | ||||||||||||
| General and administrative | 1,533 | 1,209 | 2,905 | 1,933 | ||||||||||||
| Acquisition costs | — | 82 | — | 82 | ||||||||||||
| Total operating expenses | 11,764 | 5,593 | 24,131 | 10,497 | ||||||||||||
| Operating income/(loss) | 283 | (566 | ) | (204 | ) | (532 | ) | |||||||||
| Other expense: | ||||||||||||||||
| Interest expense | (4,216 | ) | (2,802 | ) | (8,202 | ) | (5,743 | ) | ||||||||
| Loss on debt extinguishment | (3,601 | ) | — | (3,601 | ) | — | ||||||||||
| Total other expense | (7,817 | ) | (2,802 | ) | (11,803 | ) | (5,743 | ) | ||||||||
| Net loss | $ | (7,534 | ) | $ | (3,368 | ) | $ | (12,007 | ) | $ | (6,275 | ) | ||||
| Net loss attributable to non-controlling interest | $ | (829 | ) | $ | (2,209 | ) | $ | (1,292 | ) | $ | (4,674 | ) | ||||
| Net loss attributable to Plymouth Industrial REIT, Inc. | $ | (6,705 | ) | $ | (1,159 | ) | $ | (10,715 | ) | $ | (1,601 | ) | ||||
| Less: Series A preferred stock dividends | 956 | — | 1912 | — | ||||||||||||
| Less: amount allocated to participating securities | 46 | — | 107 | — | ||||||||||||
| Net loss attributable to common shareholders | $ | (7,707 | ) | $ | (1,159 | ) | $ | (12,734 | ) | $ | (1,601 | ) | ||||
| Net loss per share attributable to Plymouth Industrial REIT, Inc. common stockholders | $ | (2.27 | ) | $ | (1.26 | ) | $ | (3.61 | ) | $ | (2.55 | ) | ||||
| Weighted-average common shares outstanding basic and diluted | 3,400,012 | 922,885 | 3,522,959 | 629,057 | ||||||||||||
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 because it helps both investors and management understand the core operations of our properties. We define NOI as total revenue (including rental revenue, tenant reimbursements, management, leasing and development services revenue and other income) less property-level operating expenses including allocated overhead. NOI excludes depreciation and amortization, general and administrative expenses, impairments, gain/loss on sale of real estate, interest expense, and other non-operating items.
EBITDA: We believe that earnings before interest, taxes, depreciation and amortization, or EBITDA, is helpful to investors as a supplemental measure of our operating performance as a real estate company because it is a direct measure of the actual operating results of our industrial properties. We also use this measure in ratios to compare our performance to that of our industry peers. EBITDA as presented herein is equal to EBITDAre as defined by NAREIT.
Funds From Operations attributable to common stockholders (“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. We define FFO, consistent with the National Association of Real Estate Investment Trusts, or NAREIT, definition, as net income, computed in accordance with GAAP, excluding: gains (or losses) from sales of property, depreciation and amortization of real estate assets, impairment losses, losses on extinguishment of debt and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect FFO on the same basis. Other equity REITs may not calculate FFO (in accordance with the NAREIT definition) 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.
Adjusted Funds From Operations attributable to common stockholders (“AFFO”): Adjusted funds from operation, or AFFO, is presented in addition to FFO. AFFO is defined as FFO, excluding certain non-cash operating revenues and expenses, acquisition and transaction related costs for transactions not completed and recurring capitalized expenditures. Recurring capitalized expenditures includes expenditures required to maintain and re-tenant our properties, tenant improvements and leasing commissions. AFFO further adjusts 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, impairment losses, 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 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.
PLYMOUTH INDUSTRIAL REIT, INC.
SUPPLEMENTAL RECONCILIATION OF NON-GAAP DISCLOSURES
UNAUDITED
(In thousands, except share and per share amounts)
| For the Three Months | For the Six Months | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| NOI: | 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Net loss | $ | (7,534 | ) | $ | (3,368 | ) | $ | (12,007 | ) | $ | (6,275 | ) | ||||
| General and administrative | 1,533 | 1,209 | 2,905 | 1,933 | ||||||||||||
| Acquisition costs | — | 82 | — | 82 | ||||||||||||
| Depreciation and amortization | 6,444 | 2,785 | 12,986 | 5,557 | ||||||||||||
| Interest expense | 4,216 | 2,802 | 8,202 | 5,743 | ||||||||||||
| Loss on debt extinguishment | 3,601 | — | 3,601 | — | ||||||||||||
| Other expense (income) | (71 | ) | (1 | ) | (521 | ) | (1 | ) | ||||||||
| NOI | $ | 8,189 | $ | 3,509 | $ | 15,166 | $ | 7,039 | ||||||||
| For the Three Months | For the Six Months | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| EBITDA: | 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Net loss | $ | (7,534 | ) | $ | (3,368 | ) | $ | (12,007 | ) | $ | (6,275 | ) | ||||
| Depreciation and amortization | 6,444 | 2,785 | 12,986 | 5,557 | ||||||||||||
| Interest expense | 4,216 | 2,802 | 8,202 | 5,743 | ||||||||||||
| Loss on debt extinguishment | 3,601 | — | 3,601 | — | ||||||||||||
| EBITDA | $ | 6,727 | $ | 2,219 | $ | 12,782 | $ | 5,025 | ||||||||
| For the Three Months | For the Six Months | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| FFO: | 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Net loss | $ | (7,534 | ) | $ | (3,368 | ) | $ | (12,007 | ) | $ | (6,275 | ) | ||||
| Depreciation and amortization | 6,444 | 2,785 | 12,986 | 5,557 | ||||||||||||
| Loss on debt extinguishment | 3,601 | — | 3,601 | — | ||||||||||||
| FFO: | $ | 2,511 | $ | (583 | ) | $ | 4,580 | $ | (718 | ) | ||||||
| Preferred stock dividends | (956 | ) | — | (1,912 | ) | — | ||||||||||
| FFO attributable to common stockholders and unit holders | $ | 1,555 | $ | (583 | ) | $ | 2,668 | $ | (718 | ) | ||||||
| Weighted average common shares and units outstanding | 3,977 | 923 | 4,104 | 629 | ||||||||||||
| FFO attributable to common stockholders and unit holders per share | $ | 0.39 | $ | (0.63 | ) | $ | 0.65 | $ | (1.14 | ) | ||||||
| For the Three Months | For the Six Months | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| AFFO: | 2018 | 2017 | 2018 | 2017 | ||||||||||||
| FFO attributable to common stockholders and unit holders | $ | 1,555 | $ | (583 | ) | $ | 2,668 | $ | (718 | ) | ||||||
| Deferred finance fee amortization | 466 | 171 | 854 | 765 | ||||||||||||
| Non-cash interest expense | 560 | 200 | 806 | 200 | ||||||||||||
| Acquisition costs | — | 82 | — | 82 | ||||||||||||
| Stock compensation | 200 | 35 | 400 | 35 | ||||||||||||
| Straight line rent | (461 | ) | (32 | ) | (818 | ) | (76 | ) | ||||||||
| Above/below market lease rents | (306 | ) | (83 | ) | (717 | ) | (166 | ) | ||||||||
| Recurring capital expenditure (1) | (350 | ) | (189 | ) | (1,342 | ) | (232 | ) | ||||||||
| AFFO: | $ | 1,664 | $ | (399 | ) | $ | 1,851 | $ | (110 | ) | ||||||
| Weighted average common shares and units outstanding | 3,977 | 923 | 4,104 | 629 | ||||||||||||
| AFFO per share | $ | 0.42 | $ | (0.43 | ) | $ | 0.45 | $ | (0.17 | ) | ||||||
(1) Excludes non-recurring capital expenditures of $874 and $13 for the three months ended June 30, 2018 and 2017, respectively, and $1,247 and $13 for the six months ended June 30, 2018 and 2017, respectively.
Second Quarter 2018
Supplemental
| Plymouth Industrial REIT, Inc. |
| Table of Contents |
| Introduction | ||||||||
| Management, Board of Directors & Investor Contacts | 2 | |||||||
| Executive Summary | 3 | |||||||
| Transaction Activity Since IPO | 4 | |||||||
| Capitalization Analysis | 5 | |||||||
| Financial Information | ||||||||
| Consolidated Balance Sheets (unaudited) | 6 | |||||||
| Consolidated Statements of Operations - GAAP (unaudited) | 7 | |||||||
| Same Store Net Operating Income (NOI) | 8 | |||||||
| NOI | 9 | |||||||
| Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) | 10 | |||||||
| Funds from Operations (FFO) & Adjusted Funds from Operations (AFFO) | 11 | |||||||
| Debt Overview | 12 | |||||||
| Operational & Portfolio Information | ||||||||
| Property Overview - Square Feet & Occupancy | 13 | |||||||
| Market Summary | 14 | |||||||
| Leasing Activity | 15 | |||||||
| Lease Expiration Schedule | 16 | |||||||
| Appendix | ||||||||
| Glossary | 17 | |||||||
| Forward looking statements: This supplemental package contains forward-looking statements within the meaning of the U.S. federal securities laws. We make statements in this supplemental package that are forward-looking statements, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions. Our forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by our forward-looking statements are reasonable, we can give no assurance that our plans, intentions, expectations, strategies or prospects will be attained or achieved and you should not place undue reliance on these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and may be affected by a variety of risks and factors. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict those events or how they may affect us. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. | |
| Definitions and reconciliations: For definitions of certain terms used throughout this supplemental, including certain non-GAAP financial measures, see the Glossary on pages 17. For reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures, see pages 9-11. |
2Q 2018 Supplemental
1
| Plymouth Industrial REIT, Inc. |
| Management, Board of Directors & Investor Contacts |
| Corporate | ||||
| 260 Franklin Street, Suite 700 | ||||
| Boston, Massachusetts 02110 | ||||
| 617.340.3814 | ||||
| www.plymouthreit.com | ||||
| Executive and Senior Management | ||||
| Jeffrey E. Witherell | Pendleton P. White, Jr. | Daniel C. Wright | ||
| Chief Executive Officer | President and Chief Investment | Executive Vice President | ||
| and Chairman | Officer | and Chief Financial Officer | ||
| Board of Directors | ||||
| Martin Barber | Philip S. Cottone | Richard J. DeAgazio | ||
| Independent Director | Independent Director | Independent Director | ||
| David G. Gaw | Pendleton P. White, Jr. | Jeffery E. Witherell | ||
| Independent Director | President and Chief Investment | Chief Executive Officer | ||
| Officer | and Chairman | |||
| Transfer Agent | ||||
| Continental Stock Transfer & Trust Company | ||||
| 1 State Street, 30th Floor | ||||
| New York, New York 10004 | ||||
| 212.509.4000 | ||||
| Investor Relations | ||||
| Tripp Sullivan | ||||
| SCR Partners | ||||
| 615.760.1104 | ||||
| [email protected] | ||||
2Q 2018 Supplemental
2
| Plymouth Industrial REIT, Inc. |
| Executive Summary |
| Company overview: Plymouth Industrial REIT, Inc. (NYSE American: PLYM) is a vertically integrated and self-managed real estate investment trust focused on the acquisition and operation of single and multi-tenant industrial properties located in secondary and select primary markets across the United States. The Company seeks to acquire properties that provide income and growth that enable the Company to leverage its real estate operating expertise to enhance shareholder value through active asset management, prudent property re-positioning and disciplined capital deployment. | |||
| Unaudited | |||
| As of 06/30/18 | |||
| Select Portfolio Statistics | |||
| Number of Properties | 51 | ||
| Square Footage | 9,484,117 | ||
| Occupancy | 93.4% | ||
| Weighted Average Lease Term Remaining | 3.29 | ||
| Balance Sheet ($ in thousands) | |||
| Cash | $ 12,128 | ||
| Gross Assets | $ 381,258 | ||
| Total Debt | $ 276,150 | ||
| Net Debt (Total Debt less Cash) | $ 264,022 | ||
| Net Debt / Gross Assets | 69.3% | ||
| For the three months ended June 30, | |||
| Operating results ($ in thousands) | 2018 | 2017 | |
| Total revenue | $ 12,047 | $ 5,027 | |
| Net operating income | $ 8,189 | $ 3,509 | |
| 2018 Capital Activity ($ in thousands) | |||
| Increased secured line of credit agreement with KeyBank National | 3/8/2018 | $ 45,000 | |
| Secured 10 year term loan with Minnesota Insurance | 4/30/2018 | $ 21,500 | |
| Secured term loan with KeyBank | 5/23/2018 | $ 35,700 | |
| Repaid Torchlight Mezzanine Loan | 5/24/2018 | $ (35,000) | |
| Subsequent Capital Activity: | |||
| Secured 10 year term loan with Aegon | 7/10/2018 | $ 78,000 | |
| Repaid MWG Portfolio Loan | 7/10/2018 | $ (79,800) | |
| Issued 1,102,464 common shares @ $15.60 per share | 7/23/2018 | $ 16,253 | |
| Paid down KeyBank Term Loan | 7/25/2018 | $ (4,064) | |
2Q 2018 Supplemental
3
| Plymouth Industrial REIT, Inc. |
| Transaction Activity Since IPO |
| Unaudited ($ in thousands) (at 6/30/2018) | |||||
| Acquisitions | |||||
| Location | Acquisition Date | # of Properties | Purchase Price (1) | Square Footage | Projected Initial Yield |
| Elgin/Arlington Heights, IL | 4/9/2018 | 2 | $ 15,675 | 269,999 | 8.0% |
| Elgin, IL | 12/22/2017 | 1 | 4,050 | 75,000 | 9.7% |
| Atlanta. GA | 12/21/2017 | 3 | 11,425 | 330,361 | 8.3% |
| Multiple | 11/30/2017 | 15 | 99,750 | 3,027,987 | 8.1% |
| Memphis, TN | 9/8/2017 | 1 | 3,700 | 131,904 | 8.6% |
| Memphis, TN | 8/16/2017 | 1 | 7,825 | 235,000 | 10.5% |
| Columbus, OH | 8/16/2017 | 1 | 3,700 | 121,440 | 9.0% |
| Indianapolis, IN | 8/11/2017 | 2 | 16,875 | 606,871 | 8.5% |
| Southbend, IN | 7/20/2017 | 5 | 26,000 | 667,000 | 8.5% |
| Total - Acquisitions | 31 | $ 189,000 | 5,465,562 | ||
| (1) Represents total consideration paid rather than GAAP cost basis. | |||||
2Q 2018 Supplemental
4
| Plymouth Industrial REIT, Inc. |
| Capitalization Analysis |
| Unaudited (in thousands except for per-share data and percentages) | |||||||
| Three Months Ended | |||||||
| 6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | ||||
| Common Stock Data | |||||||
| Weighted-Average Shares Outstanding - Basic | 3,400 | 3,647 | 3,656 | 3,636 | |||
| Weighted-Average Shares Outstanding - Diluted | 3,400 | 3,647 | 3,656 | 3,636 | |||
| High Closing Price | $ 17.91 | $ 18.52 | $ 18.98 | $ 19.00 | |||
| Low Closing Price | $ 15.09 | $ 16.25 | $ 17.22 | $ 16.50 | |||
| Average Closing Price | $ 16.99 | $ 17.46 | $ 18.15 | $ 17.90 | |||
| Closing Price (as of period end) | $ 16.00 | $ 17.18 | $ 18.48 | $ 18.21 | |||
| Dividends / Share (annualized) (1) | $ 1.50 | $ 1.50 | $ 1.50 | $ 1.50 | |||
| Dividend Yield (annualized) (2) | 9.4% | 8.7% | 8.1% | 8.2% | |||
| Common Shares Outstanding (2) | 3,556 | 3,556 | 3,819 | 3,813 | |||
| Market Value of Common Shares (2) | $ 56,896 | $ 61,092 | $ 70,579 | $ 69,433 | |||
| Total Market Capitalization (2) (3) | $ 333,046 | $ 314,217 | $ 321,704 | $ 243,258 | |||
| Equity Research Coverage (4) | |||||||
| D.A. Davidson & Co. | National Securities Corporation | ||||||
| Barry Oxford | John Benda | ||||||
| 646.885.5423 | 212.417.8127 | ||||||
| Investor Conference Call and Webcast: The Company will hold a conference call and live audio webcast, both open for the general public to hear, on August 9, 2018 at 10:00 a.m. Eastern Time. The number to call for this interactive teleconference is (412) 717-9587. A replay of the call will be available through August 16, 2018 by dialing (412) 317-0088 and entering the replay access code, 10122697. | |||||||
| (1) Based on annualized dividend declared for the quarter. |
| (2) Based on closing price and ending shares for the last trading day of the quarter. |
| (3) Market value of shares plus total debt as of quarter end. |
| (4) 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. |
2Q 2018 Supplemental
5
| Plymouth Industrial REIT, Inc. | ||||
| Consolidated Balance Sheets (unaudited) | ||||
| (in thousands) | |||||
| 6/30/2018 | 3/31/2018 | 12/31/2017 (1) | 9/30/2017 | ||
| Assets: | |||||
| Real estate properties: | |||||
| Land | $ 63,688 | $ 59,799 | $ 59,797 | $ 25,069 | |
| Building and improvements | 257,175 | 244,428 | 243,605 | 165,066 | |
| Less accumulated depreciation | (32,809) | (28,828) | (25,013) | (22,094) | |
| Total real estate properties, net | $ 288,054 | $ 275,399 | $ 278,389 | $ 168,041 | |
| Cash and cash equivalents | 12,128 | 13,097 | 19,163 | 10,818 | |
| Deferred lease intangibles, net | 25,020 | 25,297 | 27,619 | 16,446 | |
| Other assets | 7,430 | 5,284 | 4,782 | 2,286 | |
| Total assets | $ 332,632 | $ 319,077 | $ 329,953 | $ 197,591 | |
| Liabilities: | |||||
| Debt, net | $ 270,597 | $ 247,753 | $ 245,632 | $ 169,196 | |
| Deferred interest | - | 1,575 | 1,357 | 765 | |
| Accounts payable, accrued expenses and other liabilities | 16,864 | 15,174 | 16,015 | 7,476 | |
| Deferred lease intangibles, net | 6,657 | 6,261 | 6,807 | 1,911 | |
| Total liabilities | $ 294,118 | $ 270,763 | $ 269,811 | $ 179,348 | |
| Preferred Stock - Series A | $ 48,868 | $ 48,878 | $ 48,931 | $ - | |
| Equity: | |||||
| Common stock | $ 36 | $ 36 | $ 39 | $ 39 | |
| Additional paid in capital | 114,085 | 116,183 | 123,270 | 125,231 | |
| Accumulated deficit | (129,982) | (123,277) | (119,213) | (114,789) | |
| Total Plymouth Industrial REIT, Inc. stockholders' equity | (15,861) | (7,058) | 4,096 | 10,481 | |
| Noncontrolling interest | 5,507 | 6,494 | 7,115 | 7,762 | |
| Total equity | $ (10,354) | $ (564) | $ 11,211 | $ 18,243 | |
| Total liabilities, Series A preferred stock and equity | $ 332,632 | $ 319,077 | $ 329,953 | $ 197,591 | |
| (1) Audited consolidated financial statements and notes for the year ended December 31, 2017 are available within our 2017 Annual Report on Form 10-K. | |||||
2Q 2018 Supplemental
6
| Plymouth Industrial REIT, Inc. | |
| Consolidated Statements of Operations - GAAP (unaudited) | |
| (in thousands, except per-share amounts) | |||||||||||
| Three Months Ended | |||||||||||
| 6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | ||||||||
| Revenues: | |||||||||||
| Rental income | $ 9,019 | $ 8,483 | $ 6,379 | $ 4,699 | |||||||
| Tenant recoveries | 2,957 | 2,946 | 2,031 | 1,743 | |||||||
| Other revenue | 71 | 450 | 1 | 1 | |||||||
| Total revenues | $ 12,047 | $ 11,879 | $ 8,411 | $ 6,443 | |||||||
| Operating expenses: | |||||||||||
| Property related | 3,787 | 4,452 | 3,122 | 2,159 | |||||||
| Depreciation and amortization | 6,444 | 6,542 | 4,943 | 3,499 | |||||||
| General and administrative | 1,533 | 1,373 | 2,031 | 1,224 | |||||||
| Acquisition costs | - | - | 17 | 4 | |||||||
| Total operating expenses | $ 11,764 | $ 12,367 | $ 10,113 | $ 6,886 | |||||||
| Operating income | $ 283 | $ (488) | $ (1,702) | $ (443) | |||||||
| Other income (expense): | |||||||||||
| Gain on disposition of equity investment | - | - | 8 | 223 | |||||||
| Interest expense | (4,216) | (3,985) | (3,219) | (2,619) | |||||||
| Loss on debt extinguishment | (3,601) | - | - | - | |||||||
| Total other income (expense) | $ (7,817) | $ (3,985) | $ (3,211) | $ (2,396) | |||||||
| Net loss | $ (7,534) | $ (4,473) | $ (4,913) | $ (2,839) | |||||||
| Less: Net income attributable to noncontrolling interest | (829) | (463) | (489) | (157) | |||||||
| Net loss attributable to Plymouth Industrial REIT, Inc. | $ (6,705) | $ (4,010) | $ (4,424) | $ (2,682) | |||||||
| Less: Series A preferred stock dividends (2) | 956 | 956 | 723 | - | |||||||
| Less: Amount allocated to participating securities | 46 | 61 | 128 | - | |||||||
| Net income (loss) attributable to common stockholders | $ (7,707) | $ (5,027) | $ (5,275) | $ (2,682) | |||||||
| Net income (loss) attributable to common stockholders per share - basic and diluted | $ (2.27) | $ (1.38) | $ (1.44) | $ (0.74) | |||||||
| Weighted-average shares outstanding - basic | 3,400 | 3,647 | 3,656 | 3,636 | |||||||
| Weighted-average shares outstanding - diluted | 3,400 | 3,647 | 3,656 | 3,636 | |||||||
| (1) Audited consolidated financial statements and notes for the year ended December 31, 2017 are available within our 2017 Annual Report on Form 10-K. |
| (2) Preferred stock dividend for the fourth quarter of 2017 of $0.46875, which was pro-rated to $0.3542 per share to reflect the period commencing October 25, 2017 (original issue date) and ending December 31, 2017, was declared in December 2017 and paid in January 2018. |
2Q 2018 Supplemental
7
| Plymouth Industrial REIT, Inc. |
| Same Store Net Operating Income (NOI) |
| Unaudited (in thousands) | ||||||||
| Trailing four quarter same store NOI | Three Months Ended | |||||||
| 6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | |||||
| Same store properties | 20 | 20 | 20 | 20 | ||||
| Revenues: | ||||||||
| Rental income | $ 3,423 | $ 3,455 | $ 3,626 | $ 3,644 | ||||
| Tenant recoveries | 1,425 | 1,382 | 1,334 | 1,392 | ||||
| Total operating revenues | $ 4,848 | $ 4,837 | $ 4,960 | $ 5,036 | ||||
| Property expenses | $ 1,388 | $ 1,815 | $ 2,031 | $ 1,606 | ||||
| Same store net operating income | $ 3,460 | $ 3,022 | $ 2,929 | $ 3,430 | ||||
| Trailing two quarter same store NOI | Three Months Ended | ||||
| 6/30/2018 | 3/31/2018 | ||||
| Same store properties | 49 | 49 | |||
| Revenues: | |||||
| Rental income | $ 8,657 | $ 8,483 | |||
| Tenant recoveries | 2,945 | 2,946 | |||
| Total operating revenues | $ 11,602 | $ 11,429 | |||
| Property expenses | $ 3,707 | $ 4,452 | |||
| Same store net operating income | $ 7,895 | $ 6,977 | |||
2Q 2018 Supplemental
8
| Plymouth Industrial REIT, Inc. |
| NOI |
| Unaudited (in thousands) | ||||||
| Three Months Ended | ||||||
| 6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | |||
| Net loss | $ (7,534) | $ (4,473) | $ (4,913) | $ (2,839) | ||
| General and administrative | 1,533 | 1,373 | 2,031 | 1,224 | ||
| Acquisition expense | - | - | 17 | 4 | ||
| Interest expense | 4,216 | 3,985 | 3,219 | 2,619 | ||
| Depreciation and amortization | 6,444 | 6,542 | 4,943 | 3,499 | ||
| Loss on debt extinguishment | 3,601 | - | - | - | ||
| Other income | (71) | (450) | (9) | (224) | ||
| Net Operating Income | $ 8,189 | $ 6,977 | $ 5,288 | $ 4,283 | ||
2Q 2018 Supplemental
9
| Plymouth Industrial REIT, Inc. |
| Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) |
| Unaudited (in thousands) | ||||||
| Three Months Ended | ||||||
| 6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | |||
| Net loss | $ (7,534) | $ (4,473) | $ (4,913) | $ (2,839) | ||
| Depreciation and amortization | 6,444 | 6,542 | 4,943 | 3,499 | ||
| Interest expense | 4,216 | 3,985 | 3,219 | 2,619 | ||
| Loss on debt extinguishment | 3,601 | - | - | - | ||
| EBITDA | $ 6,727 | $ 6,054 | $ 3,249 | $ 3,279 | ||
2Q 2018 Supplemental
10
| Plymouth Industrial REIT, Inc. |
| Funds from Operations (FFO) & Adjusted Funds from Operations (AFFO) |
| Unaudited (in thousands, except per-share amounts) | ||||||
| Three Months Ended | ||||||
| 6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | |||
| Net loss | $ (7,534) | $ (4,473) | $ (4,913) | $ (2,839) | ||
| Depreciation and amortization | 6,444 | 6,542 | 4,943 | 3,499 | ||
| Loss on debt extinguishment | 3,601 | - | - | - | ||
| Gain on disposition of equity investment | - | - | (8) | (223) | ||
| FFO | $ 2,511 | $ 2,069 | $ 22 | $ 437 | ||
| Preferred stock dividend | (956) | (956) | (723) | - | ||
| FFO attributable to common stockholders and unit holders | $ 1,555 | $ 1,113 | $ (701) | $ 437 | ||
| Deferred finance fee amortization | 466 | 387 | 259 | 202 | ||
| Acquisition costs | - | - | 17 | 4 | ||
| Non-cash interest expense | 560 | 247 | 900 | 565 | ||
| Stock compensation | 200 | 200 | 192 | 208 | ||
| Straight line rent | (461) | (357) | (82) | (32) | ||
| Above/below market lease rents | (306) | (411) | (168) | (89) | ||
| Recurring capital expenditures (1) | (350) | (992) | (227) | (63) | ||
| AFFO | $ 1,664 | $ 187 | $ 190 | $ 1,232 | ||
| Weighted average common shares and units outstanding | 3,977 | 4,232 | 4,234 | 3,913 | ||
| FFO attributable to common stockholders and unit holders per share | $ 0.39 | $ 0.26 | $ (0.17) | $ 0.11 | ||
| AFFO attributable to common stockholders and unit holders per share | $ 0.42 | $ 0.04 | $ 0.04 | $ 0.31 | ||
(1) Excludes non-recurring capital expenditures of $874, $373, $819 and $440 for the three months ending June 30, March 31, 2018, December 31, and September 30, 2017, respectively.
2Q 2018 Supplemental
11
| Plymouth Industrial REIT, Inc. |
| Debt Overview |
| Unaudited ($ in thousands) at 6/30/2018 | |||||||
| Debt Instrument - Secured Facility | Maturity | Rate | Rate Type | Properties Encumbered | Balance | % of Total Debt | |
| $45 million line of credit | August-21 | 4.75%(1) | Floating | 9 | $ 19,150 | 6.9% | |
| $120 million AIG Loan | October-23 | 4.08% | Fixed | 20 | $ 120,000 | 43.5% | |
| $79.8 million MWG Loan | November-19 | 5.08% (2) | Floating | 15 | $ 79,800 | 28.9% | |
| $35.7 million KeyBank Term Loan (4) | August-21 | 9.09% (3) | Floating | - | $ 35,700 | 12.9% | |
| $21.5 million Minnesota Life Loan | May-28 | 3.78% | Fixed | 6 | $ 21,500 | 7.8% | |
| 50 | $ 276,150 | 100.0% | |||||
| Balance Sheet ($ in thousands) at 6/30/2018 | ||||
| Cash | $ 12,128 | |||
| Gross Assets (5) | $ 381,258 | |||
| Total Debt | $ 276,150 | |||
| Net Debt | $ 264,022 | |||
| Subsquent Event | |
| On July 10, 2018, we entered into a secured loan agreement with Aegon USA Realty Advisors, as agent for one of its affiliated life insurance companies, or the Aegon Lender, in the original principal amount of $78,000. The Aegon Secured Term Loan bears interest at 4.35% per annum and has a ten-year term, maturing on August 1, 2028. The Aegon Secured Term Loan provides for monthly payments of interest only for the first year of the term and thereafter monthly principal and interest payments based on a 30-year amortization period. The borrowings under the Aegon Secured Term Loan are secured by first lien mortgages on eighteen of the Company’s properties. Proceeds from the Aegon Secured Term Loan were used to retire the outstanding borrowings under the MWG Portfolio Secured Loan. | |
| (1) Interest rate paid for the month of June 30, 2018. Borrowings under the Line of Credit Agreement bear interest at either (1) the base rate (determined from the highest of (a) KeyBank’s prime rate, (b) the federal funds rate plus 0.50% and (c) the one month LIBOR rate plus 1.0%) or (2) LIBOR, plus, in either case, a spread between 250 and 300 basis points depending on our total leverage ratio. | |
| (2) Interest rate paid for the month of June 30, 2018. Interest for the first year at a rate per annum equal to LIBOR plus 3.10% and for the second year at a rate per annum equal to LIBOR plus 3.35%. | |
| (3) Interest rate for the month of June 30, 2018. Borrowings under the KeyBank Term Loan bear interest at either (1) LIBOR plus 7% or (2) KeyBank’s base rate plus 6%. | |
| (4) The KeyBank Term Loan is secured by Plymouth Industrial REIT's equity interest within the Plymouth 20 and each of its property owning subsidiaries. | |
| (5) The carrying amount of total assets plus accumulated depreciation and amortization, as reported in the Company's consolidated financial statements. | |
2Q 2018 Supplemental
12
| Plymouth Industrial REIT, Inc. |
| Property Overview - Square Feet & Occupancy |
| Unaudited ($ in thousands) at 6/30/18 | |||||
| Property | Market | Rentable Square Feet |
Leased Square Feet |
Occupancy | |
| 32 Dart Road | Atlanta | 194,800 | 194,800 | 100.0% | |
| 1665 Dogwood Drive SW | Atlanta | 198,000 | 198,000 | 100.0% | |
| 1715 Dogwood Drive | Atlanta | 100,000 | 100,000 | 100.0% | |
| 11236 Harland Drive | Atlanta | 32,361 | 32,361 | 100.0% | |
| Subtotal - Atlanta | 525,161 | 525,161 | 100.0% | ||
| 11351 W 183rd Street | Chicago | 18,768 | 18,768 | 100.0% | |
| 11601 Central Avenue | Chicago | 260,000 | 260,000 | 100.0% | |
| 13040 South Pulaski Avenue | Chicago | 395,466 | 395,466 | 100.0% | |
| 1355 Holmes Road | Chicago | 82,456 | 82,456 | 100.0% | |
| 13970 West Laurel Drive | Chicago | 70,196 | 70,196 | 100.0% | |
| 1455-1645 Greenleaf Avenue | Chicago | 150,000 | 150,000 | 100.0% | |
| 1600 Fleetwood Drive | Chicago | 247,000 | 247,000 | 100.0% | |
| 1750 South Lincoln Drive | Chicago | 499,200 | 499,200 | 100.0% | |
| 1796 Sherwin Avenue | Chicago | 98,879 | 98,879 | 100.0% | |
| 1875 Holmes Road | Chicago | 134,415 | 134,415 | 100.0% | |
| 189 Seegers Road | Chicago | 25,000 | 25,000 | 100.0% | |
| 2401 Commerce Drive | Chicago | 78,574 | 78,574 | 100.0% | |
| 28160 North Keith Drive | Chicago | 77,924 | 77,924 | 100.0% | |
| 3 West College Drive | Chicago | 33,263 | 33,263 | 100.0% | |
| 3841-3865 Swanson Court | Chicago | 99,625 | 99,625 | 100.0% | |
| 3940 Stern Avenue | Chicago | 146,798 | 146,798 | 100.0% | |
| 440 South McLean | Chicago | 74,613 | 74,613 | 100.0% | |
| 6000 West 73rd Street | Chicago | 148,091 | 148,091 | 100.0% | |
| 6510 West 73rd Street | Chicago | 306,552 | 306,552 | 100.0% | |
| 6558 West 73rd Street | Chicago | 301,000 | 301,000 | 100.0% | |
| 6751 Sayre Avenue | Chicago | 242,690 | 242,690 | 100.0% | |
| 7200 Mason Ave | Chicago | 207,345 | 207,345 | 100.0% | |
| 5110 South 6th Street | Milwaukee | 58,500 | 58,500 | 100.0% | |
| 525 West Marquette Avenue | Milwaukee | 112,144 | 40,000 | 35.7% | |
| Subtotal - Chicago | 3,868,499 | 3,796,355 | 98.1% | ||
| Mosteller Distribution Center | Cincinnati | 358,386 | 358,386 | 100.0% | |
| 4115 Thunderbird Lane | Cincinnati | 70,000 | 70,000 | 100.0% | |
| Subtotal - Cincinnati | 428,386 | 428,386 | 100.0% | ||
| 3500 Southwest Boulevard | Columbus | 527,127 | 527,127 | 100.0% | |
| 3100 Creekside Parkway | Columbus | 340,000 | - | 0.0% | |
| 8288 Green Meadows Dr. | Columbus | 300,000 | 300,000 | 100.0% | |
| 8273 Green Meadows Dr. | Columbus | 77,271 | 77,271 | 100.0% | |
| 7001 American Pkwy | Columbus | 54,100 | 54,100 | 100.0% | |
| 2120 - 2138 New World Drive | Columbus | 121,200 | 121,200 | 100.0% | |
| Subtotal - Columbus | 1,419,698 | 1,079,698 | 76.1% | ||
| 3035 North Shadeland Ave | Indianapolis | 562,497 | 537,497 | 95.6% | |
| 3169 North Shadeland Ave | Indianapolis | 44,374 | 41,960 | 94.6% | |
| 5861 W Cleveland Road | South Bend | 62,550 | 62,550 | 100.0% | |
| West Brick Road | South Bend | 101,450 | 101,450 | 100.0% | |
| 4491 N Mayflower Road | South Bend | 77,000 | 77,000 | 100.0% | |
| 5855 West Carbonmill Road | South Bend | 198,000 | 198,000 | 100.0% | |
| 4955 Ameritech Drive | South Bend | 228,000 | 228,000 | 100.0% | |
| Subtotal - Indianapolis/South Bend | 1,273,871 | 1,246,457 | 97.8% | ||
| 6005, 6045 & 6075 Shelby Dr. | Memphis | 202,303 | 167,018 | 82.6% | |
| 210 American Dr. | Jackson | 638,400 | 638,400 | 100.0% | |
| 3635 Knight Road | Memphis | 131,904 | 131,904 | 100.0% | |
| Business Park Drive | Memphis | 235,006 | 128,457 | 54.7% | |
| Subtotal - Memphis/Jackson | 1,207,613 | 1,065,779 | 88.3% | ||
| 7585 Empire Drive | Florence, KY | 148,415 | 148,415 | 100.0% | |
| 56 Milliken Road | Portland, ME | 200,625 | 200,625 | 100.0% | |
| 4 East Stow Road | Marlton, NJ | 156,279 | 134,959 | 86.4% | |
| 1755 Enterprise Parkway | Cleveland, OH | 255,570 | 234,370 | 91.7% | |
| Subtotal - Others | 760,889 | 718,369 | 94.4% | ||
| Total - All Properties | 9,484,117 | 8,860,205 | 93.4% | ||
2Q 2018 Supplemental
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| Plymouth Industrial REIT, Inc. |
| Market Summary |
| Unaudited (SF and $ in thousands) (at 6/30/2018) | ||||||
| Geography | State | Properties | Total Acquisition Cost (1) |
Gross Real Estate Assets (2) |
% Gross Real Estate Assets | |
| Atlanta | GA | 4 | $ 17,045 | $ 15,765 | 4.9% | |
| Chicago | IL, WI | 24 | 154,140 | 143,179 | 44.6% | |
| Cincinnati | OH | 2 | 14,900 | 13,349 | 4.2% | |
| Columbus | OH | 6 | 50,982 | 48,427 | 15.1% | |
| Indianapolis/South Bend | IN | 7 | 43,450 | 38,358 | 12.0% | |
| Memphis/Jackson | TN | 4 | 31,608 | 26,345 | 8.2% | |
| Other | Various | 4 | 39,000 | 35,163 | 11.0% | |
| Total | 51 | $ 351,125 | $ 320,586 | 100% | ||
| (1) Total acquisition cost prior to allocations per US GAAP. |
| (2) The gross book value of real estate assets as of June 30, 2018 excluding $277 in leasehold improvements related to our Corporate office. Gross book value of real estate assets excludes depreciation and the allocation of the acquisition cost towards intangible asset and liabilities required by US GAAP. |
2Q 2018 Supplemental
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| Plymouth Industrial REIT, Inc. |
| Leasing Activity |
| Year | Type | Square Footage |
Percent | Expiring Rent |
New Rent | % Change | Tenant Improvements $/SF/YR | Lease Commissions $/SF/YR |
| 2017 | Renewals | 234,679 | 84.1% | $ 4.25 | $ 4.51 | 6.2% | $ 0.07 | $ 0.13 |
| New Leases | 44,268 | 15.9% | $ 2.16 | $ 3.00 | 38.7% | $ 0.41 | $ 0.27 | |
| Total | 278,947 | 100.0% | $ 3.92 | $ 4.27 | 9.1% | $ 0.13 | $ 0.15 | |
| Q1 2018 | Renewals | 146,798 | 47.5% | $ 4.25 | $ 4.30 | 1.2% | $ - | $ 0.11 |
| New Leases | 162,119 | 52.5% | $ 3.17 | $ 3.99 | 26.1% | $ 0.09 | $ 0.04 | |
| Total | 308,917 | 100.0% | $ 3.68 | $ 4.07 | 10.6% | $ 0.05 | $ 0.07 | |
| Q2 2018 | Renewals | 146,874 | 13.1% | $ 4.83 | $ 5.00 | 3.6% | $ 0.14 | $ 0.13 |
| New Leases | 664,828 | 59.3% | $ 3.67 | $ 3.92 | 6.9% | $ 0.42 | $ 0.25 | |
| Total | 811,702 | 100.0% | $ 3.88 | $ 4.21 | 8.4% | $ 0.37 | $ 0.23 | |
| 2018 | Renewals | 293,672 | 26.2% | $ 4.54 | $ 4.65 | 2.4% | $ 0.07 | $ 0.11 |
| New Leases | 826,947 | 73.8% | $ 3.58 | $ 3.94 | 10.0% | $ 0.35 | $ 0.21 | |
| Total | 1,120,619 | 100.0% | $ 3.83 | $ 4.13 | 7.7% | $ 0.28 | $ 0.18 | |
| Total | Renewals | 528,351 | 37.8% | $ 4.41 | $ 4.59 | 4.1% | $ 0.07 | $ 0.12 |
| New Leases | 871,215 | 62.2% | $ 3.51 | $ 3.89 | 10.9% | $ 0.36 | $ 0.22 | |
| Total | 1,399,566 | 100% | $ 3.85 | $ 4.16 | 8.0% | $ 0.25 | $ 0.18 |
2Q 2018 Supplemental
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| Plymouth Industrial REIT, Inc. |
| Lease Expiration Schedule |
| Unaudited ($ in thousands) (at 6/30/2018) |
| Year | Square Footage |
Annualized Base Rent (ABR) (1) |
% of ABR Expiring (2) |
| Available | 623,911 | $ - | - |
| 2018 | 439,676 | 2,345 | 7.0% |
| 2019 | 1,480,835 | 4,897 | 14.6% |
| 2020 | 1,613,610 | 5,596 | 16.7% |
| 2021 | 2,173,308 | 8,190 | 24.4% |
| 2022 | 963,685 | 4,510 | 13.5% |
| Thereafter | 2,189,092 | 7,996 | 23.8% |
| Total | 9,484,117 | $ 33,534 | 100.0% |
| (1) Annualized base rent is calculated as monthly contracted base rent per the terms of such lease, as of June 30, 2018, multiplied by 12. Excludes billboard and antenna revenue and rent abatements. |
| (2) Calculated as annualized base rent set forth in this table divided by total annualized base rent for the Company Portfolio as of June 30, 2018. |
2Q 2018 Supplemental
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| Plymouth Industrial REIT, Inc. |
| Glossary |
| 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 because it helps both investors and management understand the core operations of our properties. We define NOI as total revenue (including rental revenue, tenant reimbursements, management, leasing and development services revenue and other income) less property-level operating expenses including allocated overhead. NOI excludes depreciation and amortization, general and administrative expenses, impairments, gain/loss on sale of real estate, interest expense, and other non-operating items. |
| EBITDA: We believe that earnings before interest, taxes, depreciation and amortization, or EBITDA, is helpful to investors as a supplemental measure of our operating performance as a real estate company because it is a direct measure of the actual operating results of our industrial properties. We also use this measure in ratios to compare our performance to that of our industry peers. EBITDA as presented herein is equal to EBITDAre as defined by NAREIT. |
| Funds From Operations attributable to common stockholders (“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. We define FFO, consistent with the National Association of Real Estate Investment Trusts, or NAREIT, definition, as net income, computed in accordance with GAAP, excluding gains (or losses) from sales of property, depreciation and amortization of real estate assets, impairment losses, loss on extinguishment of debt and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect FFO on the same basis. Other equity REITs may not calculate FFO (in accordance with the NAREIT definition) 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. |
| Adjusted Funds From Operations attributable to common stockholders (“AFFO”): Adjusted funds from operation, or AFFO, is presented in addition to FFO. AFFO is defined as FFO, excluding certain non-cash operating revenues and expenses, acquisition and transaction related costs for transactions not completed and recurring capitalized expenditures. Recurring capitalized expenditures includes expenditures required to maintain and re-tenant our properties, tenant improvements and leasing commissions. AFFO further adjusts 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, impairment losses, 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 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. |
| Other Definitions: |
| GAAP: U.S generally accepted accounting principles. |
Gross Assets: the carrying amount of total assets plus accumulated depreciation and amortization, as reported in the Company’s consolidated financial statements. For gross assets as of June 30, 2018 and December 31, 2017, the calculation is as follows:
| 6/30/2018 | |
| Total Assets | $332,632 |
| Add back depreciation expense | 32,809 |
| Add back intangible asset amortization | 15,817 |
| Gross assets | $381,258 |
| 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. |
| Occupancy: We define occupany as the percentage of total leasable square footage in which either the sooner of lease term commencement or revenue recognition in accordance to GAAP has commenced as of the close of the reporting period. |
| Recurring Capital Expenditures: Recurring capitalized expenditures includes capital expenditures required to maintain and re-tenant our properties, tenant improvements and leasing commissions. |
| Same Store Portfolio: Our Same Property Portfolio is a subset of our consolidated portfolio and includes properties that were wholly-owned by us for the entire period presented. The trailing 4 quarters same store portfolio includes properties owned as of April 1, 2017, and still owned by us as of June 30, 2018. Therefore, we excluded from our Same Store Portfolio any properties that were acquired or sold during the period from April 1, 2017 through June 30, 2018. The trailing 2 quarters same store portfolio includes properties owned as of January 1, 2018, and still owned by us as of June 30, 2018. Therefore, we excluded from our Same Store Portfolio any properties that were acquired or sold during the period from January 1, 2018 through June 30, 2018. The Company's 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. |
2Q 2018 Supplemental
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