Plymouth Industrial REIT (NYSE: PLYM) reported Q1 EPS of ($0.53), $0.10 worse than the analyst estimate of ($0.43). Revenue for the quarter came in at $26.23 million versus the consensus estimate of $18.25 million.

First Quarter and Subsequent Highlights

• Reported results for the first quarter of 2020 reflect a net loss attributable to common stockholders of $4.0 million, or $(0.53) per weighted average common share; net operating income (“NOI”) of $17.2 million; Funds from Operations attributable to common stockholders and unit holders (“FFO”) of $0.53 per weighted average common share and units; and Adjusted FFO (“AFFO”) of $0.45 per weighted average common share and units.
• Collected approximately 99% of its rent for the first quarter; 99% in March 2020; and 93% in April 2020.
• Same store NOI (“SS NOI”) increased 10.6% on a cash basis for the first quarter compared with the same period in 2019; increased 7.5% on a cash basis excluding early termination income.
• Acquired 11 buildings totaling 2.2 million square feet representing total consideration of approximately $88.0 million.
• Commenced leases totaling 426,000 square feet with a 19.6% increase in rental rates on a cash basis from leases greater than six months.
• Declared a regular quarterly cash dividend for the first quarter of 2020 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”).
• The Board of Directors anticipates revising the common stock dividend policy to adjust the quarterly dividend, if declared, to $0.20 per diluted share, or an annualized rate of $0.80 per diluted share, effective with the second quarter dividend expected to be declared in June 2020.
• Due to the uncertainty regarding the ultimate impact of the COVID-19 pandemic on its future operating results, Plymouth withdrew its full-year guidance for 2020.

Jeff Witherell, Chairman and Chief Executive Officer of Plymouth Industrial REIT, noted, “The sound fundamentals of our properties and markets that have propelled us to strong leasing, financial and acquisition results since inception have been an invaluable asset for us during this historic disruption caused by COVID-19. As our first quarter performance attests, we were on track with our previous expectations for 2020. Since mid-March, however, our focus has been working closely with our tenants and taking precautionary measures to preserve our liquidity. Rent collections were strong in March and April with payment trends consistent with past quarters, and leasing activity has continued at a solid pace throughout the past several weeks. While we are encouraged by recent economic stimulus efforts, we are only a few days into our collections cycle for May, which is too early to make any accurate predictions on how much of a trend we are currently experiencing.

“Our conviction on the attractiveness of the industrial sector in general and our types and location of properties in particular is stronger than ever. Over the next three to five years, we expect that the shrinking of global supply chains, the increasing share of e-commerce, the desire to increase onshoring of production and the critical need to access large pools of skilled blue-collar labor will play to the strengths of our portfolio. We have much to overcome in the interim as we await a reopening of the economy, but we are taking the steps necessary to position Plymouth to benefit from these secular demand dynamics.”

For earnings history and earnings-related data on Plymouth Industrial REIT (PLYM) click here.