Plymouth REIT reports robust Q1 leasing activity

BOSTON - Plymouth Industrial REIT, Inc. (NYSE:PLYM), a company specializing in the acquisition and management of industrial properties, has reported significant leasing activity for the first quarter of 2025. The company announced that leases commencing in the first quarter, which ended March 31, 2025, covered an aggregate of 2,437,267 square feet. This included 1,540,756 square feet of renewal leases and 896,511 square feet of new leases. The $671 million market cap REIT currently trades at attractive valuations according to InvestingPro analysis, with a P/E ratio of 5.56x and offering a substantial 6.52% dividend yield.The rental rates for these leases showed a marked increase, with a 16.2% rise on a cash basis for all leases excluding a major St. Louis lease. Renewal leases alone saw a 15.0% increase, while new leases jumped 22.1%. However, when including the St. Louis lease, the overall rental rate increase was 9.6%, and new leases specifically saw a modest 0.9% increase.Same store occupancy as of March 31, 2025, stood at 94.7%, with the total portfolio occupancy at 94.3%. This reflects a positive impact from the St. Louis lease and leasing activities in Cleveland, Cincinnati, and Atlanta, offset by a net negative impact from other leasing activities during the quarter.For the remainder of 2025, Plymouth has executed leases totaling 4,652,684 square feet, which represents 56.3% of the total expirations for the year. These include 3,731,230 square feet of renewal leases and 921,454 square feet of new leases.In terms of acquisition activity, Plymouth closed on six industrial buildings totaling 801,161 square feet for $65.1 million during the first quarter. These fully leased properties have a weighted average initial estimated net operating income (NOI) yield of 6.8% and a weighted average remaining lease term of 4.4 years. The company maintains a strong operational efficiency with a gross profit margin of 68.06%, though InvestingPro data indicates its current ratio of 0.81 suggests tight liquidity management.

Memphis is highlighted as a key logistics hub due to its extensive transportation infrastructure

The company also released its second Market Portrait, focusing on the Memphis industrial market, which is available on their corporate website. Memphis is highlighted as a key logistics hub due to its extensive transportation infrastructure.Plymouth Industrial REIT will hold its first quarter earnings conference call and webcast on May 2, 2025. The earnings release and supplemental financial information will be issued after the market closes on May 1, 2025. With the stock trading near its 52-week low after a 29.68% decline over the past six months, investors can access comprehensive analysis and 10+ additional ProTips through InvestingPro’s detailed research reports, which provide deep-dive analysis of PLYM’s valuation, financial health, and growth prospects.This update is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those anticipated in these forward-looking statements.In other recent news, Plymouth Industrial REIT reported its Q4 2024 earnings, which showed a mixed performance. The company’s earnings per share (EPS) came in at $3.24, significantly surpassing the forecast of $0.0314, yet its revenue of $47.57 million fell short of the anticipated $50.76 million. Additionally, JMP Securities adjusted Plymouth’s price target to $24 from a previous $27, maintaining a Market Outperform rating. This adjustment reflects a cautious view due to tenant turnover and increased competition in investment sales markets. Meanwhile, Plymouth Industrial REIT appointed Robert O. Stephenson, Omega Healthcare’s CFO, to its Board of Directors, enhancing its governance with his extensive REIT sector experience. Furthermore, JMP Securities analysts highlighted Plymouth’s strategic market exposure and strong dividend yield, noting that the stock trades at a lower multiple compared to industry averages. Despite recent operational challenges, Plymouth’s management is optimistic about a robust leasing pipeline and strategic capital deployment.