Plymouth Industrial REIT, Inc. (NYSE: PLYM) announced its
leasing and acquisition activity for the third quarter of 2022. The
Company also announced details for its third quarter earnings
conference call and webcast to be held on November 3, 2022.
Jeff Witherell, Chief Executive Officer and Co-Founder of
Plymouth, noted, “The fundamentals on the ground in our markets
remain strong with rental rate increases and the level of leasing
velocity exceeding our expectations. We are also making progress on
our new development leasing with multiple proposals for our
unleased space in the first phase of our development program.
Together with the improvements we have made to our balance sheet
with the elimination of the Series B preferred stock and fixing the
rates on 93% of our outstanding debt, we have made great strides on
our strategic priorities.”
Leasing Activity Leases commencing during the third
quarter ended September 30, 2022 totaled an aggregate of 2,552,339
square feet, all of which are associated with terms of at least six
months. These leases included 1,455,328 square feet of renewal
leases and 1,097,011 square feet of new leases. The Company will
experience a 17.6% increase in rental rates on a cash basis from
these leases. As of September 30, 2022, the Company’s total
portfolio was 98.8% occupied.
Plymouth has also signed an additional 2,285,153 square feet of
leases that will commence during the balance of 2022 with an
expected 17.9% increase in rental rates on a cash basis from these
leases. Including all leasing activity to date in 2022, the Company
has signed a total of 7,677,486 square feet in leases commencing in
2022 and will experience a 17.4% increase in rental rates on a cash
basis from these leases.
During the third quarter, Plymouth fully leased its newly
constructed 180,000-square-foot building in the Northwest Atlanta
market. This five-year lease will commence during November 2022.
The Company’s newly constructed 70,000-square-foot building in the
Boston market is 50% leased with the remaining space at this
building expected to be leased in the near term.
Acquisition Activity As previously disclosed, Plymouth
closed on the acquisition of a 197,518-square-foot single-tenant
industrial building in Cleveland, Ohio during the third quarter for
$16.5 million, or $83.54 per square foot at a projected initial
yield of 6.3%.
Capital Markets Activity As previously disclosed, on
August 12, 2022, Madison informed the Company that it had elected
to convert its remaining 2,205,882 shares of Series B Preferred
Stock into common stock. Based on the contractual liquidation
preference and the 20-day VWAP (volume weighted average price) of
$18.84 at the time of conversion, Madison was entitled to receive
2,712,690 shares of common stock. Pursuant to the terms of the
agreement, Plymouth elected a combination settlement comprising
1,915,511 shares of common stock and $15.0 million in cash. The
cash portion was provided by a one-time use of the Company’s ATM
program to transact with one institutional investor, in which
802,547 shares were issued at $21.35 a share raising approximately
$16.9 million in net proceeds.
The Company recently entered into interest rate swap agreements
with JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A. and Capital
One, N.A. for a total notional amount of $150 million to fix the
USD-SOFR floating rate at 2.904%. The spread over the applicable
rate on the $150 million term loan is based on the Company's total
leverage ratio. As of September 30, 2022, the rate on approximately
93% of the Company's outstanding debt is fixed by rate or swap.
Hurricane Ian Update The Company also disclosed that it
sustained no material damage to its buildings from Hurricane Ian in
the affected states, including Florida, Georgia, and North
Carolina.
Third Quarter 2022 Earnings Call The Company plans to
issue its earnings release before the market opens on Thursday,
November 3, 2022, and will host a conference call and live audio
webcast, both open for the general public to hear, later that day
at 9:00 a.m. Eastern Time. The number to call for this interactive
teleconference is (844) 784-1727 (international callers: (412)
717-9587). A replay of the call will be available through November
10, 2022, by dialing (877) 344-7529 and entering the replay access
code, 3256551.
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. (NYSE:
PLYM) is a full service, vertically integrated real estate
investment company focused on the acquisition, ownership and
management of single and multi-tenant industrial properties. Our
mission is to provide tenants with cost effective space that is
functional, flexible and safe.
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 statements, 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20221007005050/en/
Tripp Sullivan SCR Partners (615) 942-7077
TSullivan@scr-ir.com
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