Form 8-K Plymouth Industrial REIT For: Mar 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
March 8, 2019
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 March 8, 2019, Plymouth Industrial REIT, Inc. (the “Company”) issued a press release (the “Earnings Release”) announcing, among other things, earnings for the three months and year ended December 31, 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, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 7.01 | Regulation FD Disclosure. |
On March 8, 2019, the Company disclosed a supplemental analyst package in connection with its earnings conference call for the three months and year ended December 31, 2018 which took place on March 8, 2019. 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 of 1933, as amended, 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 | |||
99.2 |
Supplemental Analyst Package – Fourth 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: March 8, 2019 | 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 FOURTH QUARTER RESULTS AND ISSUES 2019 GUIDANCE
BOSTON, March 8, 2019 – Plymouth Industrial REIT, Inc. (NYSE America: PLYM) (the “Company”) today announced its consolidated financial results for the quarter ended December 31, 2018 and other recent developments. A comparison of the reported amounts per share for the fourth 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 listed public offering (the “IPO") in June 2017, its preferred stock offering in October 2017, a follow-on common stock offering in July 2018 and a private placement of preferred stock in December 2018, as discussed below.
Fourth Quarter and Subsequent Highlights
· Reported results for the fourth quarter of 2018 reflect a net loss attributable to common stockholders of $5.2 million, or $(1.10) per weighted average common share, including a loss on extinguishment of debt of $1 million and a gain on sale of real estate of $1 million; net operating income (“NOI”) of $8.8 million; Funds from operations attributable to common stockholders and unit holders (“FFO”) of $0.35 per weighted average common share and units; and Adjusted FFO (“AFFO”) of $0.23 per weighted average common share and units.
· For the fourth 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”).
· Issued initial 2019 guidance of a net loss of $(1.87) to $(1.77) per share; Nareit FFO attributable to common stockholders and unit holders of $2.50 to $2.60 per diluted share; and AFFO of $1.90 to $2.00 per diluted share.
Jeff Witherell, Chairman and Chief Executive Officer of Plymouth Industrial REIT, noted, “2018 has been a transformational year for us, and the previous investments we made in our people, infrastructure and processes enabled us to accelerate our pace of acquisition and capital markets activity during the second half of the year with minimal incremental overhead. With over 2 million square feet added to the portfolio in the fourth quarter alone, we were able to exceed our expectations for the year on every key metric and position us for a period of earnings and cash flow growth that is more indicative of the value we have created in our portfolio. At the same time, the strategic investment from Madison brings in a valuable and well-respected partner that has enabled us to maintain a disciplined approach to capital allocation and a much clearer path to improving our capital structure.”
Financial Results for the Fourth Quarter of 2018
The completion of the IPO in June 2017, a preferred stock offering in October 2017, a follow-on common stock offering in July 2018 and the strategic investment by Madison in December 2018 provided the Company with a meaningfully different capital structure for the fourth quarter of 2018 compared to the fourth quarter of 2017. The Company believes the use of the respective 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 December 31, 2018 was $5.2 million, or $(1.10) per weighted average common share outstanding, compared with net loss attributable to common stockholders of $5.3 million, or $(1.44) per weighted average common share, for the same period in 2017. The decrease in net loss for the fourth quarter of 2018 was primarily due to a decrease in operating loss of $1.2m primarily driven by the acquisition activity in 2018, gain on sale of real estate realized in the fourth quarter 2018 of $1 million, offset by an increases in interest expense of $0.7 million, loss on debt extinguishment of $1 million and preferred dividends $0.35 million, Weighted average common shares outstanding for the fourth quarters ending 2018 and 2017 were 4.7 million and 3.7 million, respectively.
Consolidated total revenues for the quarter ended December 31, 2018 were $13.6 million, compared with $8.4 million for the same period in 2017.
NOI for the quarter ended December 31, 2018 was $8.8 million compared with NOI of $5.3 million for the same period in 2017.
EBITDA for the quarter ended December 31, 2018 was $7.0 million compared with $3.2 million for the same period in 2017.
FFO attributable to common stockholders and unit holders for the quarter ended December 31, 2018 was $2.0 million, or $0.35 per weighted average common share and unit, compared with $(0.7) million, or $(0.17) per weighted average common share and unit for the same period in 2017, primarily as a result of increased depreciation and amortization driven by acquisition activity, the loss on extinguishment of debt of $1 million and the increase in weighted average shares following the public offering completed in July 2018, offset by an increase in preferred stock dividends of $0.35 million and the gain on sale of real estate of $1 million.
AFFO for the quarter ended December 31, 2018 was $1.3 million, or $0.23 per weighted average common share and unit, compared with $190,000, or $0.05 per weighted average common share, for the same period in 2017, primarily driven by the change in FFO attributable to common stockholders and unit holders, a net decrease in deferred finance fees and non-cash interest of $855,000, increased straight line rent and above/below market rent adjustments of $161,000, increased recurring capital expenditures and lease commissions of approximately $540,000 incurred in the quarter and the increase in weighted average shares following the public offering completed in July 2018.
See “Non-GAAP Financial Measures” for complete definitions of NOI, EBITDA, FFO and AFFO and the financial tables accompanying this press release for reconciliations of net income to NOI, EBITDA, FFO and AFFO.
Investment Activity
As of December 31, 2018, the Company had real estate investments comprised of 55 industrial properties totaling 12.0 million square feet with occupancy of 95.0%.
On October 15, 2018, the Company completed the acquisition of a 1.1 million-square-foot multi-tenant Class B industrial property in the greater Cincinnati, Ohio market for total consideration of $24.8 million. The building is 92% leased and projected to provide an initial yield of 8.5%. The acquisition was funded with the issuance of 626,011 operating partnership units valued at approximately $10.6 million, or $17.00 per unit, the assumption of $13.9 million of existing mortgage debt secured by the property and $0.25 million in cash.
On December 14, 2018, the Company completed the transformational acquisition of a 20-building, 1.1 million-square-foot light industrial and flex portfolio in Jacksonville, Florida for $97.1 million. The portfolio is 96% leased and projected to provide an initial yield of 8.4%. The acquisition was funded with approximately $34 million in proceeds from the Madison International Realty investment described below and a $63 million short-term loan that the Company expects to refinance during the first quarter of 2019 with long-term secured financing with a life insurance company.
On December 19, 2018, the Company sold 525 West Marquette, a 112,144-square-foot industrial building in Milwaukee, Wisconsin, for $5.3 million, resulting in a one-time gain of $1 million on the sale in the fourth quarter of 2018. Proceeds from the sale were used to pay down $3.4 million of debt on the Company’s $78 million loan with Transamerica Life Insurance Company and for general corporate purposes.
On January 4, 2019, the Company completed the acquisition of a 73,875-square-foot, multi-tenant Class B industrial building in the Chicago area for $5.4 million in cash. The acquisition was funded with borrowings on the Company’s credit facility and is projected to provide an initial yield of 8.9%.
Leasing Activity
Leases commencing during the fourth quarter of 2018 totaled an aggregate of 115,000 square feet, all of which were for leases of at least six months. These leases included 87,000 square feet of renewal leases and 28,000 square feet of new leases. The Company will experience a 17.6% increase in rental rates on a cash basis from these leases.
For the twelve months ended December 31, 2018, leases executed totaled 1,546,000 square feet, of which 1,451,000 square feet was for leases of at least six months. The leases six months or longer included 482,000 square feet of renewal leases and 969,000 square feet of new leases. The Company will experience a 5.8% increase in rental rates, on a cash basis, from all of the leases executed in 2018 with a lease term of at least six months. The weighted average term for these leases is 4.3 years. Absent a previously disclosed 40,000-square-foot lease in the third quarter with the Federal Aviation Administration, the Company would have reported a 9.6% increase in rental rates on a cash basis from these leases for the full year 2018.
Capital Markets Activity
On December 14, 2018, the Company issued to Madison International Realty 4,411,764 shares of the Company’s Series B Convertible Redeemable Preferred Stock at a price of $17.00 per share, or $75.0 million aggregate consideration, in a private placement. The shares of Series B Convertible Redeemable Preferred Stock are convertible into shares of the Company’s common stock, at the option of the holders, commencing on January 1, 2022. Prior to the receipt of stockholder approval, such conversion into shares of common stock is limited to the aggregate of the 19.99% limit under applicable NYSE American rules.
The annual cash dividend on each share of Series B Convertible Redeemable Preferred Stock is 3.25%, or $0.5525 per share, for the period from the closing of the private placement through December 31, 2019, and is payable when, as and if declared by the Company’s Board of Directors, quarterly in cash on January 15, April 15, July 15 and October 15 of each year, commencing on January 15, 2019. The annual cash rate increases to 3.50% in year two; 3.75% in year three; 4.00% in year four; 6.50% in year five; and 12.00% in year six. As noted below, the liquidation preference of Series B Convertible Redeemable Preferred Stock accretes at a higher annual internal rate or return.
The shares of Series B Convertible Redeemable Preferred Stock have a liquidation preference in an amount per share equal to the greater of (i) an amount necessary for the holders to receive a 12% annual internal rate of return on the issue price of $17.00 and (ii) $21.89, subject to adjustment, plus accrued and unpaid dividends. Concurrently with the closing of the private placement, the Company and Madison entered into an agreement requiring the Company to file a registration statement with the Securities and Exchange Commission to register for resale the shares of the Company’s common stock issuable upon the conversion of the Series B Convertible Redeemable Preferred Stock on or before the date that is 60 days prior to the third anniversary of the closing of the private placement.
$5.0 Million Stock Repurchase Authorization
On December 14, 2018, the Company’s Board of Directors authorized a stock repurchase plan providing for the purchase in the aggregate of up to $5 million of the Company’s common stock. No stock repurchases were made during the fourth quarter of 2018.
Quarterly Distributions to Stockholders
On November 29, 2018, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.46875 per share for the Preferred Stock for the fourth quarter of 2018. The dividend was paid on December 31, 2018 to stockholders of record on December 14, 2018.
On December 13, 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 fourth quarter of 2018. The dividend was payable on January 31, 2019, to stockholders of record on December 28, 2018.
Guidance for 2019
For the year ending December 31, 2019, the Company issued its guidance for net loss of $(1.87) to $(1.77) per weighted average common share and operating unit outstanding, Nareit FFO attributable to common stockholders and unit holders of $2.50 to $2.60 per weighted average common share and unit and AFFO of $1.90 to $2.00 per weighted average common share and unit.
See “Non-GAAP Financial Measures” for a complete definition of FFO and AFFO and the financial table accompanying this press release for reconciliations of net income to FFO and AFFO.
Commenting on the 2019 guidance, Mr. Witherell added, “Our initial outlook for the year reflects the significant work we accomplished in 2018 that added embedded growth to our portfolio through acquisition activity and strong new and renewal leasing as well as the sourcing of attractive capital through the strategic investment with Madison International Realty. These expected results at the midpoint of our range would represent strong dividend coverage with Nareit FFO and AFFO per share nearly double what we achieved in 2018.”
A reconciliation of projected net loss per weighted average common share and unit outstanding to projected Nareit FFO attributable to common stockholders and unit holders per weighted average common share and unit and AFFO per weighted average common share and unit is provided as follows:
Full Year | ||||||||
2019 Range | ||||||||
Low | High | |||||||
Net loss | $ | (1.87 | ) | $ | (1.77 | ) | ||
Add: Real estate depreciation & amortization | 5.43 | 5.43 | ||||||
Less: Preferred stock dividends | (1.06 | ) | (1.06 | ) | ||||
FFO attributable to common stockholders and unit holders | 2.50 | 2.60 | ||||||
Deferred finance fee amortization | 0.19 | 0.19 | ||||||
Stock compensation | 0.16 | 0.16 | ||||||
Straight-line rent | (0.08 | ) | (0.09 | ) | ||||
Above/below market lease rents | (0.21 | ) | (0.23 | ) | ||||
Recurring capital expenditures | (0.66 | ) | (0.63 | ) | ||||
AFFO attributable to common stockholders and unit holders | $ | 1.90 | $ | 2.00 |
The Company’s guidance for net loss, FFO attributable to common stockholders and unit holders and AFFO attributable to common stockholders and unit holders for 2019 is based on the following assumptions and does not include the potential impact of future acquisitions or dispositions, if completed:
• | Total revenues of $65.4 million to $66.0 million |
• | Net operating income of $43.2 million to $43.6 million |
• | EBITDA of $35.9 million to $36.5 million |
• | General and administrative expenses of $7.0 to $7.3 million, including non-cash expenses of $1.0 million |
• | Same-store portfolio occupancy of 95% to 96% |
• | Recurring capital expenditures of $3.2 million to $3.7 million |
• | 5.9 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, later today at 1:00 p.m. Eastern Time. The number to call for this interactive teleconference is (412) 717-9587. A replay of the call will be available through March 15, 2019, by dialing (412) 317-0088 and entering the replay access code, 10128919.
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 ir.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. | ||||
CONSOLIDATED BALANCE SHEETS | ||||
UNAUDITED | ||||
(In thousands, except share and per share amounts) |
December 31, | December 31, | ||||||||
2018 | 2017 | ||||||||
Assets | |||||||||
Real estate properties | $ | 452,610 | $ | 303,402 | |||||
Less accumulated depreciation | (41,279 | ) | (25,013 | ) | |||||
Real estate properties, net | 411,331 | 278,389 | |||||||
Cash | 5,394 | 12,915 | |||||||
Cash held in escrow | 7,808 | 5,074 | |||||||
Restricted cash | 1,759 | 1,174 | |||||||
Deferred lease intangibles, net | 37,940 | 27,619 | |||||||
Other assets | 5,931 | 4,782 | |||||||
Total assets | $ | 470,163 | $ | 329,953 | |||||
Liabilities, Preferred Stock and Equity | |||||||||
Liabilities: | |||||||||
Secured mortgage debt, net | 288,993 | 195,431 | |||||||
Mezzanine debt to investor, net | — | 29,364 | |||||||
Borrowings under line of credit, net | 28,187 | 20,837 | |||||||
Deferred interest | — | 1,357 | |||||||
Accounts payable, accrued expenses and other liabilities | 21,996 | 16,015 | |||||||
Deferred lease intangibles, net | 7,067 | 6,807 | |||||||
Total Liabilities | 346,243 | 269,811 | |||||||
Preferred stock, par value $0.01 per share, 100,000,000 shares authorized, | |||||||||
Series A; 2,040,000 shares issued and outstanding at December 31, 2018 and 2017 (aggregate liquidation preference of $51,000 at December 31, 2018 and 2017) | 48,868 | 48,931 | |||||||
Series B; 4,411,764 and no shares issued and outstandng at December 31, 2018 and 2017, respectively (aggregate liquidation preference of $75,000 at December 31, 2018) | 72,192 | — | |||||||
Equity (Deficit): | |||||||||
Common stock, $0.01 par value: 900,000,000 shares authorized; 4,821,876 and 3,819,201 shares issued and outstanding at December 31, 2018 and December 31, 2017, respectively | 49 | 39 | |||||||
Additional paid in capital | 126,327 | 123,270 | |||||||
Accumulated deficit | (137,983 | ) | (119,213 | ) | |||||
Total stockholders' equity (deficit) | (11,607 | ) | 4,096 | ||||||
Non-controlling interest | 14,467 | 7,115 | |||||||
Total equity (deficit) | 2,860 | 11,211 | |||||||
Total liabilities, preferred stock and equity | $ | 470,163 | $ | 329,953 |
PLYMOUTH INDUSTRIAL REIT, INC. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
UNAUDITED |
(In thousands, except share and per share amounts) |
For the Three Months | For the Year | ||||||||||||||||
Ended December 31, | Ended December 31, | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||
Rental revenue | $ | 10,387 | $ | 6,379 | $ | 36,632 | $ | 18,372 | |||||||||
Tenant recoveries | 3,242 | 2,031 | 12,051 | 6,443 | |||||||||||||
Other revenue | 8 | 1 | 534 | 3 | |||||||||||||
Total revenues | 13,637 | 8,411 | 49,217 | 24,818 | |||||||||||||
Operating expenses: | |||||||||||||||||
Property | 4,860 | 3,122 | 17,449 | 8,205 | |||||||||||||
Depreciation and amortization | 7,553 | 4,943 | 26,788 | 13,998 | |||||||||||||
General and administrative | 1,733 | 2,031 | 6,032 | 5,189 | |||||||||||||
Acquisition costs | — | 17 | — | 103 | |||||||||||||
Total operating expenses | 14,146 | 10,113 | 50,269 | 27,495 | |||||||||||||
Operating loss | (509 | ) | (1,702 | ) | (1,052 | ) | (2,677 | ) | |||||||||
Other income (expense): | |||||||||||||||||
Interest expense | (3,957 | ) | (3,219 | ) | (15,734 | ) | (11,581 | ) | |||||||||
Loss on debt extinguishment | (988 | ) | — | (5,393 | ) | — | |||||||||||
Gain on sale of real estate | 1,004 | — | 1,004 | — | |||||||||||||
Gain on disposition of equity investment | — | 8 | — | 231 | |||||||||||||
Total other expense | (3,941 | ) | (3,211 | ) | (20,123 | ) | (11,350 | ) | |||||||||
Net loss | $ | (4,450 | ) | $ | (4,913 | ) | $ | (21,175 | ) | $ | (14,027 | ) | |||||
Net loss attributable to non-controlling interest | $ | (750 | ) | $ | (489 | ) | $ | (2,459 | ) | $ | (5,320 | ) | |||||
Net loss attributable to Plymouth Industrial REIT, Inc. | $ | (3,700 | ) | $ | (4,424 | ) | $ | (18,716 | ) | $ | (8,707 | ) | |||||
Less: Preferred stock dividends | 1072 | 723 | 3,940 | 723 | |||||||||||||
Less: Series B preferred stock accretion to redemption value | 359 | — | 359 | — | |||||||||||||
Less: amount allocated to participating securities | 46 | 128 | 201 | 128 | |||||||||||||
Net loss attributable to common shareholders | $ | (5,177 | ) | $ | (5,275 | ) | $ | (23,216 | ) | $ | (9,558 | ) | |||||
Net loss per share attributable to Plymouth Industrial REIT, Inc. | |||||||||||||||||
common stockholders | $ | (1.10 | ) | $ | (1.44 | ) | $ | (5.76 | ) | $ | (4.45 | ) | |||||
Weighted-average common shares outstanding basic and diluted | 4,696,264 | 3,656,044 | 4,027,329 | 2,149,977 |
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.
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 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.
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 a 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. This restated definition does not give reference to the add back of loss on extinguishment of debt. Commencing on January 1, 2019, we will adopt the restated definition of NAREIT FFO on a prospective basis and will exclude the add back of loss on debt extinguishment.
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 Year | ||||||||||||||||
Ended December 31, | Ended December 31, | ||||||||||||||||
NOI: | 2018 | 2017 | 2018 | 2017 | |||||||||||||
Net loss | $ | (4,450 | ) | $ | (4,913 | ) | $ | (21,175 | ) | $ | (14,027 | ) | |||||
General and administrative | 1,733 | 2,031 | 6,032 | 5,189 | |||||||||||||
Acquisition costs | — | 17 | — | 103 | |||||||||||||
Depreciation and amortization | 7,553 | 4,943 | 26,788 | 13,998 | |||||||||||||
Interest expense | 3,957 | 3,219 | 15,734 | 11,581 | |||||||||||||
Loss on debt extinguishment | 988 | — | 5,393 | — | |||||||||||||
Gain on sale of real estate | (1,004 | ) | — | (1,004 | ) | — | |||||||||||
Other expense (income) | (8 | ) | (9 | ) | (534 | ) | (234 | ) | |||||||||
NOI | $ | 8,769 | $ | 5,288 | $ | 31,234 | $ | 16,610 | |||||||||
For the Three Months | For the Year | ||||||||||||||||
Ended December 31, | Ended December 31, | ||||||||||||||||
EBITDA: | 2018 | 2017 | 2018 | 2017 | |||||||||||||
Net loss | $ | (4,450 | ) | $ | (4,913 | ) | $ | (21,175 | ) | $ | (14,027 | ) | |||||
Depreciation and amortization | 7,553 | 4,943 | 26,788 | 13,998 | |||||||||||||
Interest expense | 3,957 | 3,219 | 15,734 | 11,581 | |||||||||||||
Loss on debt extinguishment | 988 | — | 5,393 | — | |||||||||||||
Gain on sale of real estate | (1,004 | ) | — | (1,004 | ) | — | |||||||||||
EBITDA | $ | 7,044 | $ | 3,249 | $ | 25,736 | $ | 11,552 | |||||||||
For the Three Months | For the Year | ||||||||||||||||
Ended December 31, | Ended December 31, | ||||||||||||||||
FFO: | 2018 | 2017 | 2018 | 2017 | |||||||||||||
Net loss | $ | (4,450 | ) | $ | (4,913 | ) | $ | (21,175 | ) | $ | (14,027 | ) | |||||
Depreciation and amortization | 7,553 | 4,943 | 26,788 | 13,998 | |||||||||||||
Loss on extinguishment of debt | 988 | — | 5,393 | — | |||||||||||||
Gain on sale of real estate | (1,004 | ) | — | (1,004 | ) | — | |||||||||||
Gain on disposition of equity investment | — | (8 | ) | — | (231 | ) | |||||||||||
FFO: | $ | 3,087 | $ | 22 | $ | 10,002 | $ | (260 | ) | ||||||||
Preferred stock dividends | (1,072 | ) | (723 | ) | (3,940 | ) | (723 | ) | |||||||||
FFO attributable to common stockholders and unit holders | $ | 2,015 | $ | (701 | ) | $ | 6,062 | $ | (983 | ) | |||||||
Weighted average common shares and units outstanding | 5,774 | 4,027 | 4,723 | 1,784 | |||||||||||||
FFO attributable to common stockholders and unit holders per share | $ | 0.35 | $ | (0.17 | ) | $ | 1.28 | $ | (0.55 | ) | |||||||
For the Three Months | For the Year | ||||||||||||||||
Ended December 31, | Ended December 31, | ||||||||||||||||
AFFO: | 2018 | 2017 | 2018 | 2017 | |||||||||||||
FFO attributable to common stockholders and unit holders | $ | 2,015 | $ | (701 | ) | $ | 6,062 | $ | (983 | ) | |||||||
Deferred finance fee amortization | 290 | 259 | 1,482 | 868 | |||||||||||||
Non-cash interest expense | 14 | 900 | 656 | 1,531 | |||||||||||||
Acquisition costs | — | 17 | — | 103 | |||||||||||||
Stock compensation | 203 | 192 | 805 | 435 | |||||||||||||
Straight line rent | (71 | ) | (82 | ) | (996 | ) | (191 | ) | |||||||||
Above/below market lease rents | (340 | ) | (168 | ) | (1,304 | ) | (423 | ) | |||||||||
Recurring capital expenditure (1) | (767 | ) | (227 | ) | (2,695 | ) | (522 | ) | |||||||||
AFFO: | $ | 1,344 | $ | 190 | $ | 4,010 | $ | 818 | |||||||||
Weighted average common shares and units outstanding | 5,774 | 4,027 | 4,723 | 1,784 | |||||||||||||
AFFO per share | $ | 0.23 | $ | 0.05 | $ | 0.85 | $ | 0.46 |
(1) Excludes non-recurring capital expenditures of $777 and $818 for the three months ended December 31, 2018 and 2017, respectively, and $2,601 and $1,272 for the year ended December 31, 2018 and 2017, respectively.
Fourth 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 | |
2019 Guidance | 6 | |
Financial Information | ||
Consolidated Balance Sheets (unaudited) | 7 | |
Consolidated Statements of Operations - GAAP (unaudited) | 8 | |
Same Store Net Operating Income (NOI) | 9 | |
NOI | 10 | |
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) | 11 | |
Funds from Operations (FFO) & Adjusted Funds from Operations (AFFO) | 12 | |
Debt Overview | 13 | |
Operational & Portfolio Information | ||
Property Overview - Square Feet & Occupancy | 14 | |
Market Summary | 15 | |
Leasing Activity | 16 | |
Lease Expiration Schedule | 17 | |
Appendix | ||
Glossary | 18 |
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 18. For reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures, see pages 10-12. |
4Q 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] |
4Q 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 December 31, 2018 | ||||||
Select Portfolio Statistics | ||||||
Number of Properties | 55 | |||||
Square Footage | 11,977,273 | |||||
Occupancy | 95.0% | |||||
Weighted Average Lease Term Remaining - years | 3.2 | |||||
Balance Sheet ($ in thousands) | ||||||
Cash | $ 14,961 | |||||
Gross Assets | $ 532,507 | |||||
Total Debt | $ 321,658 | |||||
Net Debt (Total Debt less Cash) | $ 306,697 | |||||
Net Debt / Gross Assets | 57.6% |
For the year ended December 31, |
For the three months ended December 31, | |||||
Operating results ($ in thousands) | 2018 | 2017 | 2018 | 2017 | ||
Total Revenue | $ 49,217 | $ 24,818 | $ 13,637 | $ 8,410 | ||
Net Operating Income | $ 31,234 | $ 16,610 | $ 8,769 | $ 5,288 |
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) | |
Secured 10 year term loan with Transamerica Life Insurance Company | 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) | |
Issued 160,369 overalotment of common shares @ $15.60 per share | 8/17/2018 | $ 2,502 | |
Paid down KeyBank Term Loan | 8/17/2018 | $ (466) | |
Issued 626,011 of operating units as part of the Fisher Park acquisition | 10/15/2018 | $ 10,642 | |
Issued 4,411,764 shares of Series B Preferred Stock | 12/14/2018 | $ 75,000 | |
Repaid remainder of KeyBank Term Loan | 12/14/2018 | $ (31,170) | |
Paid down Transamerica Term Loan as part of disposition of 525 Marquette | 12/19/2018 | $ (3,380) |
4Q 2018 Supplemental
3
Plymouth Industrial REIT, Inc. |
Transaction Activity Since IPO |
Unaudited ($ in thousands) (at 12/31/2018) |
Acquisitions | |||||
Location | Acquisition Date | # of Properties | Purchase Price (1) | Square Footage | Projected Initial Yield |
Jacksonville, FL | 12/14/2018 | 3 | $ 97,100 | 1,133,516 | 8.4% |
Cincinnati, OH | 10/15/2018 | 1 | 24,800 | 1,100,000 | 8.5% |
Cleveland, OH | 9/27/2018 | 1 | 27,000 | 400,184 | 7.6% |
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 | 32 | $ 216,000 | 5,865,746 |
Subsequent Acquisitions | |||||
Location | Acquisition Date | # of Properties | Purchase Price (1) | Square Footage | Projected Initial Yield |
Chicago, IL | 1/5/2019 | 1 | $ 5,425 | 73,785 | 8.9% |
Dispositions | |||||
Location | Disposition Date | # of Properties | Sale Price | Square Footage | Yield |
Milwaukee, WI | 12/19/2018 | 1 | $ 5,300 | 112,144 | 6.5% |
(1) Represents total direct consideration paid rather than GAAP cost basis.
4Q 2018 Supplemental
4
Plymouth Industrial REIT, Inc. |
Capitalization Analysis |
Unaudited (in thousands except for per-share data and percentages) |
Three Months Ended | |||||||
12/31/2018 | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | |||
Common Stock Data | |||||||
Weighted-Average Shares Outstanding - Basic | 4,696 | 4,351 | 3,400 | 3,647 | 3,656 | ||
Weighted-Average Shares Outstanding - Diluted | 4,696 | 4,351 | 3,400 | 3,647 | 3,656 | ||
High Closing Price | $ 15.59 | $ 16.41 | $ 17.91 | $ 18.52 | $ 18.98 | ||
Low Closing Price | $ 11.45 | $ 14.63 | $ 15.09 | $ 16.25 | $ 17.22 | ||
Average Closing Price | $ 13.25 | $ 15.72 | $ 16.99 | $ 17.46 | $ 18.15 | ||
Closing Price (as of period end) | $ 12.61 | $ 15.50 | $ 16.00 | $ 17.18 | $ 18.48 | ||
Dividends / Share (annualized) (1) | $ 1.50 | $ 1.50 | $ 1.50 | $ 1.50 | $ 1.50 | ||
Dividend Yield (annualized) (2) | 11.9% | 9.7% | 9.4% | 8.7% | 8.1% | ||
Common Shares Outstanding (2) | 4,822 | 4,822 | 3,556 | 3,556 | 3,819 | ||
Market Value of Common Shares (2) | $ 60,804 | $ 74,739 | $ 56,896 | $ 61,092 | $ 70,579 | ||
Total Market Capitalization (2) (3) | $ 382,462 | $ 360,959 | $ 333,046 | $ 314,217 | $ 321,704 |
Equity Research Coverage (4) | ||||
D.A. Davidson & Co. | Sandler O'Neill + Partners | Wedbush Securities | ||
Barry Oxford | Alexander Goldfarb | Henry Coffey | ||
646.885.5423 | 212.466.7937 | 212.833.1382 |
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 March 8, 2019 at 1:00
p.m. Eastern Time. The number to call for this interactive teleconference is (412) 717-9587. A replay of the call will be available
through March 15, 2019 by dialing (412) 317-0088 and entering the replay access code, 10128919.
(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.
4Q 2018 Supplemental
5
Plymouth Industrial REIT, Inc. |
2019 Guidance |
Unaudited (in thousands, except per-share amounts) |
Full Year 2019 Range | |||
Low | High | ||
Net loss | $ (1.87) | $ (1.77) | |
Depreciation and amortization | 5.43 | 5.43 | |
Preferred stock dividend | (1.06) | (1.06) | |
FFO attributable to common stockholders and unit holders | $ 2.50 | $ 2.60 | |
Deferred finance fee amortization | 0.19 | 0.19 | |
Stock compensation | 0.16 | 0.16 | |
Straight line rent | (0.08) | (0.09) | |
Above/below market lease rents | (0.21) | (0.23) | |
Recurring capital expenditures (1) | (0.66) | (0.63) | |
AFFO attributable to common stockholders and unit holders | $ 1.90 | $ 2.00 | |
Weighted average common shares and units outstanding | 5,900 | 5,900 | |
2019 Guidance Assumptions | Low | High | |
Total Revenue | $ 65,400 | $ 66,000 | |
NOI | $ 43,200 | $ 43,600 | |
EBITDA | $ 35,900 | $ 36,500 | |
G&A | $ 7,300 | $ 7,000 | |
Recurring CAPEX | $ 3,700 | $ 3,200 | |
Same store occupancy | 95% | 96% |
4Q 2018 Supplemental
6
Plymouth Industrial REIT, Inc. |
Consolidated Balance Sheets (unaudited) |
(in thousands) |
12/31/18 (1) | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/17 (1) | ||
Assets: | ||||||
Real estate properties: | ||||||
Land | $ 92,628 | $ 66,563 | $ 63,688 | $ 59,799 | $ 59,797 | |
Building and improvements | 359,982 | 280,502 | 257,175 | 244,428 | 243,605 | |
Less accumulated depreciation | (41,279) | (36,830) | (32,809) | (28,828) | (25,013) | |
Total real estate properties, net | $ 411,331 | $ 310,235 | $ 288,054 | $ 275,399 | $ 278,389 | |
Cash, cash held in escrow and restricted cash | 14,961 | 11,557 | 12,128 | 13,097 | 19,163 | |
Deferred lease intangibles, net | 37,940 | 25,057 | 25,020 | 25,297 | 27,619 | |
Other assets | 5,931 | 6,409 | 7,430 | 5,284 | 4,782 | |
Total assets | $ 470,163 | $ 353,258 | $ 332,632 | $ 319,077 | $ 329,953 | |
Liabilities: | ||||||
Debt, net | $ 317,180 | $ 280,760 | $ 270,597 | $ 247,753 | $ 245,632 | |
Deferred interest | - | - | - | 1,575 | 1,357 | |
Accounts payable, accrued expenses and other liabilities | 21,996 | 17,101 | 16,864 | 15,174 | 16,015 | |
Deferred lease intangibles, net | 7,067 | 6,439 | 6,657 | 6,261 | 6,807 | |
Total liabilities | $ 346,243 | $ 304,300 | $ 294,118 | $ 270,763 | $ 269,811 | |
Preferred Stock - Series A | $ 48,868 | $ 48,868 | $ 48,868 | $ 48,878 | $ 48,931 | |
Preferred Stock - Series B | $ 72,192 | $ - | $ - | $ - | $ - | |
Equity: | ||||||
Common stock | $ 49 | $ 49 | $ 36 | $ 36 | $ 39 | |
Additional paid in capital | 126,327 | 129,392 | 114,085 | 116,183 | 123,270 | |
Accumulated deficit | (137,983) | (134,283) | (129,982) | (123,277) | (119,213) | |
Total Plymouth Industrial REIT, Inc. stockholders' equity | (11,607) | (4,842) | (15,861) | (7,058) | 4,096 | |
Noncontrolling interest | 14,467 | 4,932 | 5,507 | 6,494 | 7,115 | |
Total equity | $ 2,860 | $ 90 | $ (10,354) | $ (564) | $ 11,211 | |
Total liabilities, preferred stock and equity | $ 470,163 | $ 353,258 | $ 332,632 | $ 319,077 | $ 329,953 |
(1) Audited consolidated financial statements and notes for the years ended December 31, 2018 and 2017 are available within our 2018 Annual Report on Form 10-K.
4Q 2018 Supplemental
7
Plymouth Industrial REIT, Inc. |
Consolidated Statements of Operations - GAAP (unaudited) |
(in thousands, except per-share amounts) |
Three Months Ended | |||||||
12/31/18 (1) | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/17 (1) | |||
Revenues: | |||||||
Rental income | $ 10,387 | $ 8,742 | $ 9,019 | $ 8,483 | $ 6,379 | ||
Tenant recoveries | 3,242 | 2,906 | 2,957 | 2,946 | 2,031 | ||
Other revenue | 8 | 5 | 71 | 450 | 1 | ||
Total revenues | $ 13,637 | $ 11,653 | $ 12,047 | $ 11,879 | $ 8,411 | ||
Operating expenses: | |||||||
Property related | 4,860 | 4,349 | 3,787 | 4,452 | 3,122 | ||
Depreciation and amortization | 7,553 | 6,249 | 6,444 | 6,542 | 4,943 | ||
General and administrative | 1,733 | 1,394 | 1,533 | 1,373 | 2,031 | ||
Acquisition costs | - | - | - | - | 17 | ||
Total operating expenses | $ 14,146 | $ 11,992 | $ 11,764 | $ 12,367 | $ 10,113 | ||
Operating income | $ (509) | $ (339) | $ 283 | $ (488) | $ (1,702) | ||
Other income (expense): | |||||||
Gain on sale of real estate | 1,004 | - | - | - | - | ||
Gain on disposition of equity investment | - | - | - | - | 8 | ||
Interest expense | (3,957) | (3,575) | (4,216) | (3,985) | (3,219) | ||
Loss on debt extinguishment | (988) | (804) | (3,601) | - | - | ||
Total other income (expense) | $ (3,941) | $ (4,379) | $ (7,817) | $ (3,985) | $ (3,211) | ||
Net loss | $ (4,450) | $ (4,718) | $ (7,534) | $ (4,473) | $ (4,913) | ||
Less: Net income attributable to noncontrolling interest | (750) | (417) | (829) | (463) | (489) | ||
Net loss attributable to Plymouth Industrial REIT, Inc. | $ (3,700) | $ (4,301) | $ (6,705) | $ (4,010) | $ (4,424) | ||
Less: Series A preferred stock dividends | 1,072 | 956 | 956 | 956 | 723 | (2) | |
Less: Series B accretion to redemption value | 359 | - | - | - | - | ||
Less: Amount allocated to participating securities | 46 | 48 | 46 | 61 | 128 | ||
Net income (loss) attributable to common stockholders | $ (5,177) | $ (5,305) | $ (7,707) | $ (5,027) | $ (5,275) | ||
Net income (loss) attributable to common stockholders per share - basic and diluted | $ (1.10) | $ (1.22) | $ (2.27) | $ (1.38) | $ (1.44) | ||
Weighted-average shares outstanding - basic & diluted | 4,696 | 4,351 | 3,400 | 3,647 | 3,656 | ||
(1) Audited consolidated financial statements and notes for the years ended December 31, 2018 and 2017 are available within our 2018 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.
4Q 2018 Supplemental
8
Plymouth Industrial REIT, Inc. |
Same Store Net Operating Income (NOI) |
Unaudited (in thousands) |
Trailing five quarter same store NOI | Three Months Ended | ||||
12/31/2018 | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | |
Same store properties | 30 | 30 | 30 | 30 | 30 |
Revenues: | |||||
Rental income | $ 5,066 | $ 5,065 | $ 5,154 | $ 5,166 | $ 5,324 |
Tenant recoveries | 1,849 | 1,745 | 1,872 | 1,846 | 1,740 |
Total operating revenues | $ 6,915 | $ 6,810 | $ 7,026 | $ 7,012 | $ 7,064 |
Property expenses | $ 2,730 | $ 2,600 | $ 2,135 | $ 2,737 | $ 2,758 |
Same store net operating income | $ 4,185 | $ 4,210 | $ 4,891 | $ 4,275 | $ 4,306 |
Trailing two quarter same store NOI | Three Months Ended | |
12/31/2018 | 9/30/2018 | |
Same store properties | 50 | 50 |
Revenues: | ||
Rental income | $ 8,683 | $ 8,651 |
Tenant recoveries | 2,920 | 2,897 |
Total operating revenues | $ 11,603 | $ 11,548 |
Property expenses | $ 4,441 | $ 4,227 |
Same store net operating income | $ 7,162 | $ 7,321 |
4Q 2018 Supplemental
9
Plymouth Industrial REIT, Inc. |
NOI |
Unaudited (in thousands) |
Three Months Ended | |||||
12/31/2018 | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | |
Net loss | $ (4,450) | $ (4,718) | $ (7,534) | $ (4,473) | $ (4,913) |
General and administrative | 1,733 | 1,394 | 1,533 | 1,373 | 2,031 |
Acquisition costs | - | - | - | - | 17 |
Depreciation and amortization | 7,553 | 6,249 | 6,444 | 6,542 | 4,943 |
Interest expense | 3,957 | 3,575 | 4,216 | 3,985 | 3,219 |
Loss on debt extinguishment | 988 | 804 | 3,601 | - | - |
Gain on sale of real estate | (1,004) | - | - | - | - |
Other income | (8) | (5) | (71) | (450) | (9) |
Net Operating Income | $ 8,769 | $ 7,299 | $ 8,189 | $ 6,977 | $ 5,288 |
4Q 2018 Supplemental
10
Plymouth Industrial REIT, Inc. |
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) |
Unaudited (in thousands) |
Three Months Ended | |||||
12/31/2018 | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | |
Net loss | $ (4,450) | $ (4,718) | $ (7,534) | $ (4,473) | $ (4,913) |
Depreciation and amortization | 7,553 | 6,249 | 6,444 | 6,542 | 4,943 |
Interest expense | 3,957 | 3,575 | 4,216 | 3,985 | 3,219 |
Gain on sale of real estate | (1,004) | - | - | - | - |
Loss on debt extinguishment | 988 | 804 | 3,601 | - | - |
EBITDA | $ 7,044 | $ 5,910 | $ 6,727 | $ 6,054 | $ 3,249 |
4Q 2018 Supplemental
11
Plymouth Industrial REIT, Inc. |
Funds from Operations (FFO) & Adjusted Funds from Operations (AFFO) |
Unaudited (in thousands, except per-share amounts) |
Three Months Ended | |||||
12/31/2018 | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | |
Net loss | $ (4,450) | $ (4,718) | $ (7,534) | $ (4,473) | $ (4,913) |
Depreciation and amortization | 7,553 | 6,249 | 6,444 | 6,542 | 4,943 |
Loss on debt extinguishment | 988 | 804 | 3,601 | - | - |
Gain on sale of real estate | (1,004) | - | - | - | - |
Gain on disposition of equity investment | - | - | - | - | (8) |
FFO | $ 3,087 | $ 2,335 | $ 2,511 | $ 2,069 | $ 22 |
Preferred stock dividend | (1,072) | (956) | (956) | (956) | (723) |
FFO attributable to common stockholders and unit holders | $ 2,015 | $ 1,379 | $ 1,555 | $ 1,113 | $ (701) |
Deferred finance fee amortization | 290 | 338 | 466 | 387 | 259 |
Non-cash interest expense | 14 | (164) | 560 | 247 | 900 |
Acquisition costs | - | - | - | - | 17 |
Stock compensation | 203 | 203 | 200 | 200 | 192 |
Straight line rent | (71) | (107) | (461) | (357) | (82) |
Above/below market lease rents | (340) | (247) | (306) | (411) | (168) |
Recurring capital expenditures (1) | (767) | (598) | (349) | (982) | (227) |
AFFO | $ 1,344 | $ 804 | $ 1,665 | $ 197 | $ 190 |
Weighted average common shares and units outstanding | 5,774 | 4,898 | 3,977 | 4,232 | 4,234 |
FFO attributable to common stockholders and unit holders per share | $ 0.35 | $ 0.28 | $ 0.39 | $ 0.26 | $ (0.17) |
AFFO attributable to common stockholders and unit holders per share | $ 0.23 | $ 0.16 | $ 0.42 | $ 0.05 | $ 0.04 |
(1) Excludes non-recurring capital expenditures of $777, $576, $874, $373 and $819 for the three months ending December 31, September 30, June 30, March 31, 2018 and December 31, 2017, respectively.
4Q 2018 Supplemental
12
Plymouth Industrial REIT, Inc. |
Debt Overview |
Unaudited ($ in thousands) at 12/31/2018 |
Debt Instrument - Secured Facility | Maturity | Rate | Rate Type | Properties Encumbered | Balance | % of Total Debt | |
$45.0 million line of credit | August-20 | 5.4%(1) | Floating | 8 | $ 28,550 | 8.9% | |
$63.1 million KeyBank Term Loan | March-19 | 4.44% (2) | Floating | 3 | $ 63,115 | 19.6% | |
$120.0 million AIG Loan | October-23 | 4.08% | Fixed | 20 | $ 120,000 | 37.3% | |
$21.5 million Minnesota Life Loan | May-28 | 3.78% | Fixed | 6 | $ 21,500 | 6.7% | |
$78.0 million Transamerica Secured Term Loan | August-28 | 4.35% | Fixed | 17 | $ 74,620 | 23.2% | |
$13.9 million PNC Mortgage | January-27 | 5.23% | Fixed | 1 | $ 13,873 | 4.3% | |
55 | $ 321,658 | 100.0% |
Fixed Debt ($ in thousands) at 12/31/2018 | |||
Total fixed debt | $ 229,993 | ||
Weighted average interest rate of fixed debt | 4.21% |
Balance Sheet ($ in thousands) at 12/31/2018 | |||
Cash | $ 14,961 | ||
Gross Assets (3) | $ 532,507 | ||
Total Debt | $ 321,658 | ||
Net Debt | $ 306,697 |
(1) Interest rate paid for the month of December 31, 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 for the month of December 31, 2018. Borrowings under the KeyBank Bridge Loan bear interest at either (1) LIBOR plus 2% or (2) KeyBank’s base rate plus 1%.
(3) The carrying amount of total assets plus accumulated depreciation and amortization, as reported in the Company's consolidated financial statements.
4Q 2018 Supplemental
13
Plymouth Industrial REIT, Inc. |
Property Overview - Square Feet & Occupancy |
Unaudited ($ in thousands) at 12/31/18 |
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% | |
Subtotal - Chicago | 3,756,355 | 3,756,355 | 100.0% | ||
Mosteller Distribution Center | Cincinnati | 358,386 | 358,386 | 100.0% | |
4115 Thunderbird Lane | Cincinnati | 70,000 | 70,000 | 100.0% | |
Fisher Industrial Park | Cincinnati | 1,071,600 | 995,686 | 92.9% | |
Subtotal - Cincinnati | 1,499,986 | 1,424,072 | 94.9% | ||
1755 Enterprise Parkway | Cleveland | 255,570 | 255,570 | 100.0% | |
30339 Diamond Parkway | Cleveland | 400,184 | 400,184 | 100.0% | |
Subtotal - Cleveland | 655,754 | 655,754 | 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 | 228,001 | 100.0% | |
Subtotal - Indianapolis/South Bend | 1,273,871 | 1,246,458 | 97.8% | ||
Center Point Business Park | Jacksonville | 537,800 | 504,882 | 93.9% | |
Liberty Business Park | Jacksonville | 426,916 | 426,916 | 100.0% | |
Salisbury Business Park | Jacksonville | 168,800 | 168,890 | 100.1% | |
Subtotal - Jacksonville | 1,133,516 | 1,100,688 | 97.1% | ||
6005, 6045 & 6075 Shelby Dr. | Memphis | 202,303 | 202,303 | 100.0% | |
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 | 134,457 | 57.2% | |
Subtotal - Memphis/Jackson | 1,207,613 | 1,107,064 | 91.7% | ||
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 | 139,959 | 89.6% | |
Subtotal - Others | 505,319 | 488,999 | 96.8% | ||
Total - All Properties | 11,977,273 | 11,384,249 | 95.0% | ||
4Q 2018 Supplemental
14
Plymouth Industrial REIT, Inc. |
Market Summary |
Unaudited (SF and $ in thousands) (at 12/31/2018) |
Geography | State | Properties | Total Acquisition Cost (1) |
Gross Real Estate Assets (2) |
% Gross Real Estate Assets | |
Atlanta | GA | 4 | $ 17,045 | $ 15,839 | 3.5% | |
Chicago | IL, WI | 23 | 149,910 | 139,588 | 30.9% | |
Cincinnati | OH | 3 | 39,700 | 35,653 | 7.9% | |
Cleveland | OH | 2 | 42,000 | 40,081 | 8.9% | |
Columbus | OH | 6 | 50,982 | 48,841 | 10.8% | |
Indianapolis/South Bend | IN | 7 | 43,450 | 38,553 | 8.5% | |
Jacksonville | FL | 3 | 97,100 | 85,987 | 19.0% | |
Memphis/Jackson | TN | 4 | 31,608 | 26,556 | 5.9% | |
Other | Various | 3 | 24,000 | 21,186 | 4.7% | |
Total | 55 | $ 495,795 | $ 452,284 | 100% |
(1) Total acquisition cost prior to allocations per US GAAP.
(2) The gross book value of real estate assets as of December 31, 2018 excluding $326 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.
4Q 2018 Supplemental
15
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% | $ 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 | 26.0% | $ 0.09 | $ 0.04 | |
Total | 308,917 | 100% | $ 3.68 | $ 4.07 | 10.7% | $ 0.05 | $ 0.07 | |
Q2 2018 | Renewals | 146,874 | 18.1% | $ 4.83 | $ 5.00 | 3.6% | $ 0.14 | $ 0.13 |
New Leases | 664,828 | 81.9% | $ 2.80 | $ 2.99 | 6.8% | $ 0.42 | $ 0.25 | |
Total | 811,702 | 100% | $ 3.17 | $ 3.36 | 6.0% | $ 0.37 | $ 0.23 | |
Q3 2018 | Renewals | 101,287 | 46.9% | $ 11.75 | $ 9.94 | -15.4% | $ 0.76 | $ 0.26 |
New Leases | 114,580 | 53.1% | $ 2.83 | $ 4.15 | 46.9% | $ 0.63 | $ 0.27 | |
Total | 215,867 | 100% | $ 7.01 | $ 6.87 | -2.1% | $ 0.69 | $ 0.26 | |
Q4 2018 | Renewals | 87,108 | 75.9% | $ 3.35 | $ 3.60 | 7.7% | $ 0.19 | $ 0.03 |
New Leases | 27,680 | 24.1% | $ 2.16 | $ 3.58 | 65.5% | $ 0.32 | $ 0.08 | |
Total | 114,788 | 100% | $ 3.06 | $ 3.60 | 17.6% | $ 0.22 | $ 0.04 | |
2018 | Renewals | 482,067 | 33.2% | $ 5.84 | $ 5.57 | -4.6% | $ 0.24 | $ 0.13 |
New Leases | 969,207 | 66.8% | $ 2.85 | $ 3.31 | 16.4% | $ 0.39 | $ 0.21 | |
Total | 1,451,274 | 100% | $ 3.84 | $ 4.06 | 5.8% | $ 0.34 | $ 0.18 | |
4Q 2018 Supplemental
16
Plymouth Industrial REIT, Inc. |
Lease Expiration Schedule |
Unaudited ($ in thousands) (at 12/31/2018) |
Year | Square Footage | Annualized Base Rent (ABR) (1) |
% of ABR Expiring (2) |
Available | 593,022 | $ - | - |
2019 | 1,193,336 | 5,030 | 10.7% |
2020 | 1,931,510 | 7,601 | 16.2% |
2021 | 3,031,441 | 12,702 | 27.1% |
2022 | 1,117,343 | 5,498 | 11.7% |
2023 | 1,140,818 | 4,172 | 8.9% |
Thereafter | 2,969,803 | 11,898 | 25.4% |
Total | 11,977,273 | $ 46,901 | 100.0% |
(1) Annualized base rent is calculated as monthly contracted base rent per the terms of such lease, as of December 31, 2018, multiplied by 12. Excludes 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 December 31, 2018.
4Q 2018 Supplemental
17
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.
Funds From Operations attributable to common stockholders and unit holders (“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 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.
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 a 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. This restated definition does not give reference to the add back of loss on extinguishment of debt. Commencing on January 1, 2019, we will adopt the restated definition of NAREIT FFO on a prospective basis and will exclude the add back of loss on debt extinguishment.
Adjusted Funds From Operations attributable to common stockholders and unit holders (“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 September 30, 2018 the calculation is as follows:
12/31/2018 | |
Total Assets | $470,163 |
Add back accumulated depreciation | 41,279 |
Add back intangible asset amortization | 21,065 |
Gross assets | $532,507 |
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 5 quarters same store portfolio includes properties owned as of October 1, 2017, and still owned by us as of December 31, 2018. Therefore, we excluded from our Same Store Portfolio any properties that were acquired or sold during the period from January 1, 2018 through December 31, 2018. The trailing 2 quarters same store portfolio includes properties owned as of July 1, 2018, and still owned by us as of December 31, 2018. Therefore, we excluded from our Same Store Portfolio any properties that were acquired or sold during the period from July 1, 2018 through December 31, 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.
4Q 2018 Supplemental
18