Plymouth Industrial REIT Q2 2025 Earnings Report

Plymouth Industrial REIT EPS Results

• Actual EPS: $0.46
• Consensus EPS: $0.43
• Beat/Miss: Beat by +$0.03
• One Year Ago EPS: N/A

Plymouth Industrial REIT Revenue Results

• Actual Revenue: $47.20 million
• Expected Revenue: $46.20 million
• Beat/Miss: Beat by +$1.00 million
• YoY Revenue Growth: N/A

Plymouth Industrial REIT Announcement Details

• Quarter: Q2 2025
• Date: 8/6/2025
• Time: After Market Closes
• Conference Call Date: Thursday, August 7, 2025
• Conference Call Time: 9:00AM ET

Plymouth Industrial REIT (NYSE:PLYM), 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.

Plymouth Industrial REIT Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Commenced over 1.4 million sq ft of Q2 leasing (nearly 6 million sq ft YTD), addressed 70% of 2025 expirations and achieved blended cash rent spreads above 13%.
• Positive Sentiment: Closed on $254 million of acquisitions including the fully leased Ohio Light Industrial portfolio at a 6.7% initial yield and in-place rents ~22% below market, offering embedded upside.
• Positive Sentiment: Repurchased over 805,000 shares in Q2 and an additional 225,000 shares post-quarter, demonstrating ongoing capital return initiatives.
• Positive Sentiment: Same-store NOI grew 4.1% on a cash basis, occupancy rose sequentially, and management expects to finish 2025 near 96.5% occupancy.
• Positive Sentiment: Reaffirmed full-year 2025 core FFO guidance, anticipating a stronger second half fueled by lease-ups, rent growth and contributions from recent acquisitions.

Presentation

[Operator]

Good day and welcome to the Plymouth Industrial REIT Second Quarter twenty twenty five Earnings Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Ethan Farris, Investor Relations. Please go ahead.

[Ethan Farris, Senior Associate, Investor Relations at Plymouth Industrial REIT]

Thank you. Good morning. Welcome to the Plymouth Industrial REIT conference call to review the company's results for the 2025. Yesterday afternoon, we issued our earnings release and posted a copy of our prepared commentary in the supplemental deck on the Quarterly Results section of our Investor Relations page. In addition to these earnings documents, a copy of our 10 Q can be found on the SEC filings page of the IR site.

[Ethan Farris, Senior Associate, Investor Relations at Plymouth Industrial REIT]

Our supplemental deck includes our full year 2025 guidance assumptions, detailed information on our operations, portfolio and balance sheet and definitions of non GAAP measures and reconciliations to the most comparable GAAP measures. We will reference this information in our remarks. With me today is Jeff Witherell, Chairman and Chief Executive Officer Anthony Saladino, President and Chief Financial Officer and Jim Connolly, Executive Vice President of Asset Management. I would like to point everyone to our forward looking statements on Page three of our supplemental presentation and encourage you to read them carefully. They apply to the statements made in this call, our press release, our prepared commentary and in our supplemental financial information. I'll now turn the call over to Jeff.

[Jeffrey Witherell, Chairman & CEO at Plymouth Industrial REIT]

Thanks, Ethan. Good morning and thank you for joining us today. I hope that everyone had a chance to review the commentary and supplemental information we posted last night. First, I'll highlight a few key points from the quarter before we move to Q and A. The 2025 was another solid period of execution for Plymouth marked by strong leasing activity, continued deployment into high quality acquisitions and further progress on our capital allocation priorities.

[Jeffrey Witherell, Chairman & CEO at Plymouth Industrial REIT]

We commenced over 1,400,000.0 square feet of leasing in the quarter, bringing our year to date total to nearly 6,000,000 square feet, addressing nearly 70% of our 2025 lease expirations and driving blended cash rent spreads of over 13%. Leasing activity remains broad based, but we're seeing particular strength among light manufacturing users seeking long term space commitments in our core markets. We closed on $2.00 $4,000,000 of acquisitions in Q2, including the Ohio Light Industrial portfolio, one of the largest transactions in our company's history. These fully leased assets were acquired at an initial yield of 6.7% with in place rents approximately 22% below market in a weighted average remaining lease term of two point six years, offering embedded rent growth and long term upside. We also continued to execute on our share repurchase program acquiring over 805,000 shares in the quarter and another 225,000 shares post quarter end.

[Jeffrey Witherell, Chairman & CEO at Plymouth Industrial REIT]

Operationally, our portfolio continues to perform well. Same store NOI grew 4.1% on a cash basis, supported by strong rent growth and renewal activity. Occupancy increased sequentially. We expect to end the year with same store occupancy near 96.5%, driven by ongoing leasing success in our larger spaces and continued tenant retention across the portfolio. From a strategic standpoint, our focus remains on acquiring and operating smaller footprint infill industrial properties in dense supply constrained submarkets.

[Jeffrey Witherell, Chairman & CEO at Plymouth Industrial REIT]

These assets continue to outperform bulk product with occupancy rates over 400 basis points higher than broader market averages. With development concentrated in larger buildings, our portfolio is well insulated from new supply and positioned to capture strong rent growth. We ended the quarter with over two eighty five million dollars of availability on our unsecured credit line and 74.5% of our debt fixed including through interest rate swaps. With no debt maturities in 2025, we maintain strong balance sheet flexibility and expect to return to our targeted leverage range in the near term as newly acquired assets stabilize. We are reaffirming our full year 2025 core FFO guidance and continue to expect a stronger second half of the year supported by continued lease up activity, embedded rent growth and the full contribution from recently acquired assets.

[Jeffrey Witherell, Chairman & CEO at Plymouth Industrial REIT]

Thank you for your continued support and interest in Plymouth. I look forward to providing additional updates as we execute on our strategy. With that, I'll turn it over to the operator for questions.

[Operator]

Thank you. We will now begin our question and answer session. And the first question will come from Todd Thomas from KeyBanc Capital Markets. Please go ahead.

[Todd Thomas, MD & Senior Equity Research Analyst at KeyBanc Capital Markets]

Sounds like you're seeing a little bit of an increase in leasing demand more recently. Appreciate some of the detail on those the renewal and expansion opportunities underway. Can you provide us with an update on the year end expiration in Memphis? And then with regard to the 624,000 square foot August expiration in St. Louis, can you just discuss your confidence in that renewal materializing here?

[Todd Thomas, MD & Senior Equity Research Analyst at KeyBanc Capital Markets]

Is there any risk of that not happening at this point?

[James Connolly, EVP & Asset Management at Plymouth Industrial REIT]

Yes. On the Memphis exploration, we're currently working with them on a two year extension. So details will be coming shortly. And as far as the St. Louis 625,000 square foot that is in DocuSign.

[James Connolly, EVP & Asset Management at Plymouth Industrial REIT]

They have all of their client contracts, signatures approved and we just expect it any day. These signature processes with these international companies are quite extensive and take a while, but there's no chance it's not happening.

[Todd Thomas, MD & Senior Equity Research Analyst at KeyBanc Capital Markets]

Okay. That's helpful. And then can you also talk about some early indications around 2026 and your expectations for tenant retention? Any insight around what that might look like as you gain a little more visibility around '6 and begin working through expirations?

[James Connolly, EVP & Asset Management at Plymouth Industrial REIT]

Yes. '26 is probably it looks like it's a little light so far, but there's two big leases that are currently in the signature cycle. Again, both international companies and they take a while to sign. That's going to be 370,000 square feet that's going to be signed shortly. As far as retention, I mean, we're seeing quite a bit of that.

[James Connolly, EVP & Asset Management at Plymouth Industrial REIT]

We're getting people wanting to address their expirations early and we're working with several companies right now on these extensions.

[Todd Thomas, MD & Senior Equity Research Analyst at KeyBanc Capital Markets]

Okay. And if I could just ask one question around acquisitions. How should we think about additional acquisitions in the second half as you look to completely redeploy the Sixth Street capital proceeds in the context of additional stock buybacks. Wasn't clear if there is more to do in terms of acquisitions in your view just in light of where capital costs are today or if anything has changed?

[Anthony Saladino, President & CFO at Plymouth Industrial REIT]

Yes, Tom, this is Anthony. So just contextualizing that a bit. Pipeline currently stands at about $750,000,000 which is double the level we saw in the first quarter. All of the contemplated transactions are located in markets where we already have an operating presence, which perfectly aligns with our strategy of expanding within the existing metros. I'd say notably today we're we are fully engaged on a large off market portfolio.

[Anthony Saladino, President & CFO at Plymouth Industrial REIT]

And if successful this opportunity would bring us beyond the midpoint of our full year acquisition volume. I think as we think about guidance and our previously announced deployment, we probably have around $91,000,000 left to go. And so looking ahead, we would expect to potentially supplement acquisition and growth activity through a combination of balance sheet capacity, selective term financing and capital recycling initiatives.

[Todd Thomas, MD & Senior Equity Research Analyst at KeyBanc Capital Markets]

Okay. All right. Thank you.

[Anthony Saladino, President & CFO at Plymouth Industrial REIT]

Thanks.

[Operator]

The next question is from Eric Borden from BMO Capital Markets. Please go ahead.

[Eric Borden, Vice President at BMO Capital Markets]

Hey, good morning everyone. In your prepared commentary, you mentioned that 80% of the remaining 25 lease expirations were in active discussion. I was just hoping if you could provide a little bit more context as it relates to, is there a portion of the expirations that are under LOI? Are you currently trading papers with a portion of it? Or and is there a portion still kind of kicking the tires around those deals?

[Anthony Saladino, President & CFO at Plymouth Industrial REIT]

Eric, I think you were referring to what we previously disclosed as about 1,600,000 square feet of speculative leasing in same store. Is that correct?

[Eric Borden, Vice President at BMO Capital Markets]

It's the 847,000 square feet of remaining that of expirations in the prepared commentary.

[Anthony Saladino, President & CFO at Plymouth Industrial REIT]

Understood. Jim could speak to that.

[James Connolly, EVP & Asset Management at Plymouth Industrial REIT]

Yes. I don't have broken down exactly the way you laid it out, but we're going back and forth with on all these deals probably that's getting out Kyodis. And the rest of it is probably the ROIs are probably 40%. Active conversations are about 50% and just day to day communications with tenants 10%. So I mean they're in active discussions. They're in process and they're going to get done.

[Eric Borden, Vice President at BMO Capital Markets]

Okay. And is there just any risk that those get pushed out into 2026 just given the macro uncertainty and discussions with potentially just taking longer today?

[James Connolly, EVP & Asset Management at Plymouth Industrial REIT]

There's always a chance that something might slip a little bit, but I don't think that there's much risk in what we have left for this year.

[Eric Borden, Vice President at BMO Capital Markets]

Okay.

[Eric Borden, Vice President at BMO Capital Markets]

And then on the Ohio portfolio acquisition, I understand that there's a little bit of a shorter wall, but a pretty sizable mark to market opportunity. Just curious what portion of that portfolio lease rolls this year? And are you currently in active discussions with the remainder of the portfolio? And is there any sense of tenants staying or leaving today?

[Anthony Saladino, President & CFO at Plymouth Industrial REIT]

So with respect to OhioLight, you're right that the weighted average remaining lease term is just inside two point five years. With respect to the stickiness of tenancy, we anticipate renewals will be elevated relative to our average portfolio wide renewal or retention. Engagement has been high with respect to our PM teams and the in place tenancy. And we anticipate that our execution will be at or above pro form a levels.

[Eric Borden, Vice President at BMO Capital Markets]

Okay. And last one for me if I may. Jeff in your prepared remarks, you mentioned that demand is broad based. I was hoping that you could comment on the development leasing at the 42,000 square foot Liberty Business Park development that's currently underway?

[Jeffrey Witherell, Chairman & CEO at Plymouth Industrial REIT]

Yes. So we have a couple of full building users we're negotiating with now. At 46,000 square feet, we want to basically get a full building user if we can. We still got a couple of months left. So I think we're going to sign somebody up here fairly soon.

[Eric Borden, Vice President at BMO Capital Markets]

Thank you very much.

[Operator]

Thank you. And the next question is from Nikita Bali from JPMorgan. Please go ahead.

[Nikita Bely, VP - Equity Research at J.P. Morgan]

Hey, good morning guys. Can you talk a little bit about the leasing activity and maybe specifically what's driving that? It seems like you've had decent activity. What fundamentally what are your customers saying these days? I mean, it really more a function of them getting tired of all the headlines and the tariff news and people just moving on, which is kind of what we've been hearing this quarter?

[Nikita Bely, VP - Equity Research at J.P. Morgan]

Or is there something else that maybe is driving that?

[James Connolly, EVP & Asset Management at Plymouth Industrial REIT]

Yes. On the in the prepared comments, we did discuss that manufacturing firms are trying to solidify their space long term and maybe they think that there's going to be significant increases down the road in rents. Also there's a lot of 3PL activity. They're working with us. Instance, like in Indianapolis, we've seen an uptick in 3PL activity.

[James Connolly, EVP & Asset Management at Plymouth Industrial REIT]

We just signed a lease this week for 99,000 square feet that had been vacant. And we're working with several 3PLs long term whenever they get searching for business, we're like they come to us, they use our spaces there for their bids and this guy, he wants to extend it to some of our other buildings as well. So we're doing the same in Columbus. We have a strong relationship with certain GPLs there and they're using us for their bidding process and we're using them to backfill our spaces.

[Nikita Bely, VP - Equity Research at J.P. Morgan]

And what are these TPLs are saying? Because we've heard interesting the opposite from some of the companies, for example, in California, right, the TPLs have been somewhat retrenching in the last couple of years. This seems to be the opposite of what do you think is driving that? Different markets I understand of course.

[James Connolly, EVP & Asset Management at Plymouth Industrial REIT]

Yes. I think in our case that there's a lot of Class eight buildings on like in Indianapolis on the East Side outside of the city that are more expensive than our buildings. And I think our building and which is on the East Side, but more towards the central part of the city just offers a better cost structure. So it helps them win business.

[Nikita Bely, VP - Equity Research at J.P. Morgan]

And can you talk a little bit about the rents more at the market level? Like what are you seeing overall if you have maybe a prediction or guidance for 2025 in terms of the overall market rent? And how has that trended versus on a sequential basis, like 1Q versus 2Q and what are seeing in 2Q? Not specifically your portfolio, your rents, but the market rents where you guys participate and play around. Where are you seeing on a sequential basis with the market level rents there?

[James Connolly, EVP & Asset Management at Plymouth Industrial REIT]

Our market I'm going to answer for our market rents first. Our market rents have been growing maybe a little off pace from previous years except for the bigger box products, which has kind of muted our results. Like I think we show that if we backed out one property from our spreads, it's basically close to where we were last year. And we're seeing that across the board. It's just the big box in a couple of locations.

[James Connolly, EVP & Asset Management at Plymouth Industrial REIT]

It's not just us, it's everybody has had a level set their rent expectations because of the glut in bills that came up over the past year. So while that's being absorbed, the rents have kind of flattened a bit on big box, but we'll continue to grow once that space is full.

[Nikita Bely, VP - Equity Research at J.P. Morgan]

Got it. Maybe last one on the rent bumps. What kind of rent bumps are you guys achieving right now in all your new leases and renewals when you're renegotiating those contracts versus what's in place? Is that still higher? So we should expect the overall portfolio bumps to continue to trend up?

[James Connolly, EVP & Asset Management at Plymouth Industrial REIT]

Yes. We're probably averaging 3.5% on that.

[Nikita Bely, VP - Equity Research at J.P. Morgan]

On new and renewals on the bumps?

[James Connolly, EVP & Asset Management at Plymouth Industrial REIT]

Yes.

[Nikita Bely, VP - Equity Research at J.P. Morgan]

Got it. Excellent. Thank you.

[Operator]

The next question is from Brendan Lynch from Barclays. Please go ahead.

[Brendan Lynch, Director at Barclays Capital]

Good morning. Thanks for taking my question. Jeff, can you talk a little bit about your capital allocation priorities over the next couple of quarters? Obviously, you've been very active on the acquisition front, recycling some capital, but there's also been an uptick in share repurchases, kind of where that fits in your list of priorities?

[Jeffrey Witherell, Chairman & CEO at Plymouth Industrial REIT]

Sure, Brendan. I think as we mentioned, we have about $90,000,000 left to deploy whether that's across acquisitions or share repurchases. The thing about share repurchase is that they take time. You can only buy so much of the average daily volume. So what we're trying to do is look at acquisitions, look at the volume of the share repurchases.

[Jeffrey Witherell, Chairman & CEO at Plymouth Industrial REIT]

And I think we've done a pretty good job of basically blending that as we go. But we will by the end of the year, will deploy that $90,000,000 I can't say what the mix is going to be, but it will be similar to what you've seen in the past. So those are the two priorities right there.

[Brendan Lynch, Director at Barclays Capital]

In terms of the acquisitions, how much left do you have in terms of ten thirty one Exchange Capital?

[Anthony Saladino, President & CFO at Plymouth Industrial REIT]

Well, not $10.31 exactly, but essentially deployment of the strategic capacity created by the Sixth Street transaction. There's about as Jeff said about $91,000,000 left to deploy of the $500,000,000 that we announced at the time of the deal.

[Brendan Lynch, Director at Barclays Capital]

Okay. Thank you. And then any update on the potential build to suit opportunities in Cincinnati or Memphis?

[Jeffrey Witherell, Chairman & CEO at Plymouth Industrial REIT]

Yes. So we have two well, we got more than that Brendan as you know, because several other pieces of land, some in Charlotte and Atlanta. But all of our parcels with our brokers, we have built to suit packages out there. As of today, there's been very limited activity as you can imagine on new construction. But we continue to market it.

[Jeffrey Witherell, Chairman & CEO at Plymouth Industrial REIT]

There continues to be some interest. And I think as this absorption starts to really picks up here as we get into next year, we feel confident that we're going to find someone that and these are infill locations in Memphis, these are infill locations in Cincinnati. I mean, the Cincinnati is 200,000 square feet. It's ready to go. It's got high speed rail.

[Jeffrey Witherell, Chairman & CEO at Plymouth Industrial REIT]

It's owned heavy industry. So we think that space will go kind of as soon as some of this bigger box absorption happens.

[Brendan Lynch, Director at Barclays Capital]

Okay, great. Thanks for the color.

[Operator]

Thank you. And ladies and gentlemen, this concludes today's question and answer session and thus concludes today's call. We thank you for joining Plymouth Industrial REIT's second quarter earnings call. You may now disconnect your lines.

Participants

Executives

• Ethan Farris, Senior Associate, Investor Relations
• Jeffrey Witherell, Chairman & CEO
• James Connolly, EVP & Asset Management
• Anthony Saladino, President & CFO

Analysts

• Todd Thomas, MD & Senior Equity Research Analyst at KeyBanc Capital Markets
• Eric Borden, Vice President at BMO Capital Markets
• Nikita Bely, VP - Equity Research at J.P. Morgan
• Brendan Lynch, Director at Barclays Capital