Plymouth Industrial REIT (NYSE: PLYM) reported Q3 EPS of ($0.36), $0.05 better than the analyst estimate of ($0.41). Revenue for the quarter came in at $27.52 million versus the consensus estimate of $26.02 million.

Third Quarter and Subsequent Highlights

• Reported results for the third quarter of 2020 reflect a net loss attributable to common stockholders of $7.1 million, or $(0.36) per weighted average common share; net operating income (“NOI”) of $17.5 million; Funds from Operations attributable to common stockholders and unit holders (“FFO”) of $0.42 per weighted average common share and units; and Adjusted FFO (“AFFO”) of $0.38 per weighted average common share and units. FFO included the impact from a non-cash impairment charge of $0.02 per weighted average common share and unit related to the primary lease for the Company’s prior headquarters.
• Collected approximately 99.1% of its rent for the third quarter and 97.4% in October 2020, which excludes any rent deferment measures granted to tenants. Factoring in rent deferment, Plymouth collected approximately 99.4% of its expected rent for the third quarter. There were no rent deferments in October.
• Same store NOI (“SS NOI”) increased 0.4% on a cash basis for the third quarter compared with the same period in 2019; SS NOI decreased 1.8% on a cash basis excluding early termination income.
• Commenced leases totaling 342,000 square feet with a 14.0% increase in rental rates on a cash basis from leases greater than six months.
• Completed the acquisition of five industrial buildings in St. Louis, Missouri and Jacksonville, Florida totaling 855,158 square feet for $51.1 million in September.
• Completed the acquisition of a 314,736-square-foot industrial building in Mansfield, Ohio for $10.5 million in October.
• Formed a $150 million equity joint venture with Madison International Realty in October and put its first investment under contract in Memphis, Tennessee for $86.0 million.
• Improved the capital structure with the completion of an equity offering raising $104.5 million in net proceeds and, subsequent to quarter end, closed on a new unsecured credit facility comprised of a four-year $200 million revolving credit facility and a five-year $100 million term loan at lower borrowing costs.
• Declared a regular quarterly cash dividend for the third quarter of 2020 of $0.20 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”).
• Reinstated guidance for 2020 with a range of net loss of $0.72 to $0.70 per weighted average common share and unit, FFO of $1.83 to $1.85 per weighted average common share and unit and AFFO of $1.65 to $1.67 per weighted average common share and unit.

Jeff Witherell, Chairman and Chief Executive Officer of Plymouth Industrial REIT, noted, “Our portfolio is performing well with occupancy and rent collections consistent with our expectations while leasing activity remains strong with double-digit cash leasing spreads and all but a small number of our 2020 expirations already addressed. The resiliency of our properties, tenants and markets, combined with continued execution of our capital markets and acquisition priorities, gives us the visibility and confidence to reinstate guidance for the year.”

Mr. Witherell added, “The recent equity offering has solidified our capital structure by enabling us to reduce debt and operate with a lower leverage profile going forward, and the new unsecured credit facilities have further reduced our borrowing rates, creating more flexibility and efficiency in our balance sheet. We have successfully sourced new acquisitions that expand our presence in existing markets, and the new joint venture with Madison International Realty will complement these efforts as well as provide another capital source to continue our growth.”

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