Plymouth Industrial REIT's Strong Q4 2024: Cash Rental Rate Increase, Portfolio Expansion, and Joint Venture Formation

Plymouth Industrial REIT, Inc. (NYSE: PLYM) recently provided an activity update for the fourth quarter of 2024, highlighting its strong performance and strategic initiatives. The company reported a 17.4% cash rental rate increase for the year in its Consolidated Portfolio, the closing of the Sixth Street Joint Venture, and the acquisition of the first phase of a new industrial portfolio in Cincinnati. These developments demonstrate Plymouth's commitment to growth and value creation for its shareholders.

Cash Rental Rate Increase and Leasing Activity

Plymouth Industrial REIT experienced a significant 17.4% cash rental rate increase in 2024, outpacing historical trends and industry averages. This achievement reflects the company's strong performance in the market and its ability to capitalize on favorable demand-supply fundamentals in its core markets. In the fourth quarter alone, Plymouth executed leases totaling 1,467,245 square feet, with a 19.5% increase in rental rates on a cash basis. This strong leasing activity indicates robust demand and pricing power, as well as Plymouth's ability to attract and retain tenants.



Portfolio Expansion: Cincinnati Acquisition

Plymouth Industrial REIT expanded its portfolio in the fourth quarter of 2024 by acquiring a portfolio of primarily small bay industrial properties in Cincinnati, Ohio for $20.1 million. This acquisition equates to an anticipated initial NOI yield of 6.8% and consists of nine buildings totaling 258,082 square feet, currently 96.9% leased to 23 tenants with a weighted average lease term of approximately 2.75 years. Plymouth has a second tranche of this portfolio under contract for $17.9 million, expected to close in the first quarter of 2025, with an anticipated initial yield of 7.3%. This strategic acquisition aligns with Plymouth's long-term growth strategy, focusing on multi-tenant, small-bay industrial properties that diversify tenant risk and provide stable cash flows.

Sixth Street Joint Venture: Capital Structure Optimization

Plymouth Industrial REIT formed the Sixth Street Joint Venture in November 2024 by contributing 100% of its equity interests in directly and indirectly wholly-owned subsidiaries owning 34 properties located in and around the Chicago MSA to Isosceles JV, LLC, an affiliate of Sixth Street Partners, LLC. This partnership optimizes Plymouth's capital structure while maintaining operational control, enabling the company to leverage institutional capital, manage inflation and interest rate pressures, and potentially access new investment opportunities. The total purchase price for this transaction was $356.6 million, reflecting the strong market demand for industrial properties and Plymouth's ability to generate value for its shareholders.

Q4 Earnings Call and Outlook

Plymouth Industrial REIT plans to issue its earnings release, supplemental financial information, and prepared commentary after the market closes on Wednesday, February 26, 2025. The company will host a conference call and live audio webcast on Thursday, February 27, 2025, at 9:00 a.m. Eastern Time. This earnings call will provide investors with an opportunity to learn more about Plymouth's financial performance and strategic initiatives for the fourth quarter of 2024 and its outlook for the future.

In conclusion, Plymouth Industrial REIT's strong performance in the fourth quarter of 2024, highlighted by its 17.4% cash rental rate increase, portfolio expansion through the Cincinnati acquisition, and the formation of the Sixth Street Joint Venture, demonstrates the company's commitment to growth and value creation. As Plymouth continues to execute its strategic initiatives, investors can expect the company to deliver strong financial performance and generate long-term value for its shareholders.