Plymouth Industrial REIT: A Warehouse Giant With Acquisitions and Buyout Talks

Plymouth Industrial REIT is a warehouse-focused REIT that has received an acquisition offer. The company has a strong portfolio of industrial properties and a history of solid financial performance. As a finance expert, I would recommend holding onto this REIT, hoping that buyout talks succeed. The acquisition offer could lead to a significant increase in value for shareholders.

Plymouth Industrial REIT (PLYM), a warehouse-focused real estate investment trust (REIT), has received an unsolicited, non-binding acquisition proposal from Sixth Street Partners. The offer, valued at $24.10 per share, represents a 63% premium to the unaffected share price, valuing the company at approximately $970 million. The stock has surged over 42% in the past week, with technical indicators suggesting overbought territory [1].

The proposal comes nearly one year after the initial announcement of a strategic partnership between Plymouth and Sixth Street. During this period, Plymouth's stock has declined over 40%, significantly underperforming the industrial REIT sector, which saw the MSCI Industrial REIT index fall 20% [1]. The underperformance was attributed to transaction complexity, operational challenges, and policy measures such as tariffs [1].

Despite the recent decline, Plymouth has demonstrated resilience. In the second quarter of 2025, the company reported an earnings per share (EPS) of -$0.14, missing expectations by 800%, but revenue slightly exceeded projections [1]. The company also completed over $200 million in new acquisitions and managed 1.4 million square feet of leasing during the period [1].

Citizens JMP analyst Mitch Germain reaffirmed a Market Outperform rating for Plymouth with a $24.00 price target, citing the company’s active performance in the second quarter [1]. The firm does not anticipate additional proposals to emerge, suggesting limited upside from current levels [1].

Plymouth Industrial REIT's portfolio includes 148 properties across 11 states, totaling 32.1 million rentable square feet [3]. The company's recent acquisitions, with an average net operating income (NOI) yield of 6.7%, underscore its focus on high-quality, cash-generative assets [3]. The $1,685.32 million gross real estate value, net of $291.87 million in depreciation, leaves a $1,393.45 million asset base that's already producing 94.6% occupancy [3].

The acquisition offer undervalues Plymouth's asset base and growth potential. The company's 94.6% occupancy, 6.0-6.5% same-store NOI growth guidance, and 13.6% re-leasing rent spreads highlight strong re-leasing potential to boost asset value by $194M annually [3]. With $278M in credit capacity and conservative 56% leverage, Plymouth could justify a $26-$27 share price through organic growth and strategic acquisitions [3].

Given the strong fundamentals and growth prospects, shareholders are advised to push for a higher bid or bet on standalone growth. The current offer discounts intrinsic value by 20% while the REIT demonstrates resilience in a tightening cap rate environment [3].

References:
[1] https://www.investing.com/news/analyst-ratings/citizens-jmp-downgrades-plymouth-industrial-reit-stock-rating-as-sixth-street-proposes-acquisition-93CH-4201262
[2] https://finance.yahoo.com/news/plymouth-rises-47-receiving-acquisition-161000343.html
[3] https://www.ainvest.com/news/plymouth-industrial-reit-24-10-takeover-offer-unlocking-opportunity-strategic-growth-2508/