BOSTON--(BUSINESS WIRE)--Plymouth Industrial REIT, Inc. (NYSE: PLYM) today announced its consolidated financial results for the second quarter ended June 30, 2020 and other recent developments.

Second Quarter and Subsequent Highlights

• Reported results for the second quarter of 2020 reflect a net loss attributable to common stockholders of $7.2 million, or $(0.49) per weighted average common share; net operating income (“NOI”) of $17.1 million; Funds from Operations attributable to common stockholders and unit holders (“FFO”) of $0.51 per weighted average common share and units; and Adjusted FFO (“AFFO”) of $0.45 per weighted average common share and units.
• Collected approximately 94% of its rent for the second quarter and 96% in July 2020, which excludes any rent deferment measures granted to tenants. Factoring in rent deferment, Plymouth collected approximately 99% of its expected rent for the second quarter and 97% in July.
• Same store NOI (“SS NOI”) was flat on a cash basis for the second quarter compared with the same period in 2019; decreased 0.2% on a cash basis excluding early termination income.
• Commenced leases totaling 1.35 million square feet with a 9.0% increase in rental rates on a cash basis from leases greater than six months, including a renewal of the Company’s largest 2020 lease expiration.
• Declared a regular quarterly cash dividend for the second 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”).

Jeff Witherell, Chairman and Chief Executive Officer of Plymouth Industrial REIT, noted, “The significant challenges brought forth by the global pandemic have given us an opportunity to demonstrate the benefits of a heritage of being strong real estate operators. I am proud of how well our team has been able to lease our properties, collect rent, service our tenants, diligence new acquisition opportunities and collaborate throughout these unprecedented times. Since late April, we have seen leasing activity and rent collections return to a regular pace and the emphasis on preserving liquidity has enabled us to pay down some outstanding borrowings on our credit facility. We are encouraged by the recent trends in our portfolio and the early indications that this performance could be sustained through the second half of the year.

“We are bullish on the long-term fundamentals of the industrial sector and the expected demand created by changes to global supply chains, e-commerce and an emphasis on manufacturing in the United States. While the increasing amount of industry and real estate research points to a rising tide for the entire sector, we believe there will be an historic opportunity to invest in industrial properties in our targeted markets with tenants that will increasingly require access to the skilled blue-collar labor pools in our markets. We have been successful in the past with our approach to capturing these opportunities with disciplined access to capital. That commitment is as strong and relevant today as it was pre-COVID.”

Financial Results for the Second Quarter of 2020

Net loss attributable to common stockholders for the quarter ended June 30, 2020 was $7.2 million, or $(0.49) per weighted average common share outstanding, compared with net loss attributable to common stockholders of $6.0 million, or $(0.88) per weighted average common share, for the same period in 2019. The decrease in net loss per weighted average common share was primarily due to an increase in net operating income, mostly offset by increased interest and depreciation expense associated with acquisitions activity. Weighted average common shares outstanding for the quarters ended June 30, 2020 and 2019 were 14.6 million and 6.8 million, respectively. The year-over-year increase in weighted average common shares reflects the impact of the issuance of 7.1 million shares in 2019 and the first half of 2020.

Consolidated total revenues for the quarter ended June 30, 2020 were $26.1 million, compared with $17.0 million for the same period in 2019.

NOI for the quarter ended June 30, 2020 was $17.1 million compared with $11.0 million for the same period in 2019. Same store NOI (“SS NOI”) – Cash basis for the quarter ended June 30, 2020 was $10.3 million excluding early termination income compared with $10.3 million for the same period in 2019. SS NOI – GAAP basis excluding early termination income for the quarter ended June 30, 2020 was $10.7 million compared with $10.9 million for the same period in 2019, a decrease of 1.9%. The year-over-year decline in SS NOI – GAAP basis was due to both expected and unanticipated vacancies at three properties, offset by new leasing completed. During the first quarter of 2020, the Company received a $336,000 lease termination fee related to one of these moveouts.

EBITDAre for the quarter ended June 30, 2020 was $14.5 million compared with $9.2 million for the same period in 2019.

FFO attributable to common stockholders and unit holders for the quarter ended June 30, 2020 was $8.0 million compared with $4.1 million for the same period in 2019, primarily as a result of the contribution from acquisitions. The Company reported FFO for the quarter ended June 30, 2020 of $0.51 per weighted average common share and unit compared with $0.50 per weighted average common share and unit for the same period in 2019. The increase in weighted average share count was virtually offset by the contribution of acquisitions in addition to same store operations. Weighted average common shares and units outstanding for the second quarters ended June 30, 2020 and 2019 were 15.7 million and 8.0 million, respectively. As of June 30, 2020, the Company had a total of 16.7 million common shares and units outstanding.

AFFO for the quarter ended June 30, 2020 was $7.0 million, or $0.45 per weighted average common share and unit, compared with $3.4 million, or $0.43 per weighted average common share and unit, for the same period in 2019, primarily driven by the change in FFO attributable to common stockholders and unit holders.

See “Non-GAAP Financial Measures” for complete definitions of NOI, EBITDAre, FFO and AFFO and the financial tables accompanying this press release for reconciliations of net income to NOI, EBITDAre, FFO and AFFO.

Capital Markets Activity and Liquidity

During the second quarter of 2020, the Company issued approximately 1.1 million common shares through its ATM program at an average price of $12.03 per share, raising approximately $12.5 million in net proceeds.

As of August 5, 2020, the Company’s current cash balance was approximately $4.5 million, excluding operating expense escrows of approximately $9.1 million, and it has approximately $29.9 million of availability under the secured line of credit. Plymouth is currently in active discussions with KeyBank on refinancing its $100 million term loan that matures in October 2020, the Company’s only material debt maturity until 2023.

Leasing Activity

Leases commencing during the second quarter of 2020 totaled an aggregate of 1.40 million square feet, of which 1.35 million square feet was associated with leases of at least six months. The leases greater than six months included 1.29 million square feet of renewal leases and 62,000 square feet of new leases, and the Company will experience a 9.0% increase in rental rates on a cash basis from these leases.

At the beginning of 2019, between its existing portfolio and additional acquisitions completed in 2019, Plymouth initially had 2.8 million square feet that was scheduled to expire in 2020. Expirations during 2020 increased 100,000 square feet due to early terminations bring the total space scheduled to expire in 2020 up to 2.9 million square feet, representing approximately 14.5% of the Company’s total portfolio. Prior to the end of 2019, approximately 1.4 million square feet of such leases were either renewed or leased to new tenants. Through Q2 2020, the Company had renewed or leased to new tenants an additional 850,000 square feet, bringing the total of executed new or renewal leases that were scheduled to expire in 2020 up to 2.25 million square feet, representing approximately 78% of the initial 2020 expirations, plus the Company had leased an additional 100,000 square feet that was previously vacant.

As of June 30, 2020, the Company had real estate investments comprised of 125 industrial buildings totaling 20.0 million square feet with occupancy of 95.1%. The Company has entered into a small number of rent deferral concessions representing approximately 1.6%, or $1.25 million, of annualized base rent, which is defined as the annualized monthly contractual base rent per the leases, excluding any rent abatements, as of June 30, 2020.

Quarterly Distributions to Stockholders

On June 1, 2020, the Company announced the Board of Directors declared a regular quarterly cash dividend of $0.46875 per share for the Preferred Stock for the second quarter of 2020. The dividend was paid on June 30, 2020 to stockholders of record on June 15, 2020.

On June 12, 2020, the Company announced the Board of Directors declared a regular quarterly cash dividend of $0.20 per share for the Company’s common stock for the second quarter of 2020. The dividend was paid on July 31, 2020, to stockholders of record on June 30, 2020.

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.