Plymouth Industrial REIT, Inc. - FORM 8-K - EX-99 - August 8, 2018

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Second Quarter 2018

Supplemental

 

 

 

 

Plymouth Industrial REIT, Inc.
Table of Contents

 

Introduction                
Management, Board of Directors & Investor Contacts         2
Executive Summary               3
Transaction Activity Since IPO             4
Capitalization Analysis             5
Financial Information              
Consolidated Balance Sheets (unaudited)           6
Consolidated Statements of Operations - GAAP (unaudited)       7
Same Store Net Operating Income (NOI)           8
NOI               9
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)     10
Funds from Operations (FFO) & Adjusted Funds from Operations (AFFO)     11
Debt Overview               12
Operational & Portfolio Information            
Property Overview - Square Feet & Occupancy         13
Market Summary               14
Leasing Activity               15
Lease Expiration Schedule             16
Appendix                
Glossary               17

 

  Forward looking statements:  This supplemental package contains forward-looking statements within the meaning of the U.S. federal securities laws. We make statements in this supplemental package that are forward-looking statements, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions. Our forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by our forward-looking statements are reasonable, we can give no assurance that our plans, intentions, expectations, strategies or prospects will be attained or achieved and you should not place undue reliance on these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and may be affected by a variety of risks and factors. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict those events or how they may affect us. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
  Definitions and reconciliations:  For definitions of certain terms used throughout this supplemental, including certain non-GAAP financial measures, see the Glossary on pages 17. For reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures, see pages 9-11.

 

2Q 2018 Supplemental

1 

 

 

Plymouth Industrial REIT, Inc.
Management, Board of Directors & Investor Contacts

 

Corporate      
         
260 Franklin Street, Suite 700        
Boston, Massachusetts 02110        
617.340.3814        
www.plymouthreit.com        
         
Executive and Senior Management    
         
Jeffrey E. Witherell   Pendleton P. White, Jr. Daniel C. Wright  
Chief Executive Officer   President and Chief Investment Executive Vice President  
and Chairman   Officer and Chief Financial Officer  
         
         
Board of Directors      
         
Martin Barber Philip S. Cottone Richard J. DeAgazio  
Independent Director Independent Director Independent Director  
         
David G. Gaw Pendleton P. White, Jr. Jeffery E. Witherell  
Independent Director   President and Chief Investment Chief Executive Officer  
    Officer and Chairman  
         
Transfer Agent      
         
Continental Stock Transfer & Trust Company    
1 State Street, 30th Floor      
New York, New York 10004      
212.509.4000      
         
Investor Relations      
         
Tripp Sullivan        
SCR Partners        
615.760.1104        
TSullivan@scr-ir.com        

 

2Q 2018 Supplemental

2 

 

 

Plymouth Industrial REIT, Inc.
Executive Summary

 

Company overview: Plymouth Industrial REIT, Inc. (NYSE American: PLYM) is a vertically integrated and self-managed real estate investment trust focused on the acquisition and operation of single and multi-tenant industrial properties located in secondary and select primary markets across the United States. The Company seeks to acquire properties that provide income and growth that enable the Company to leverage its real estate operating expertise to enhance shareholder value through active asset management, prudent property re-positioning and disciplined capital deployment.
       
       
Unaudited    
      As of 06/30/18
Select Portfolio Statistics    
       
Number of Properties   51
Square Footage   9,484,117
Occupancy   93.4%
Weighted Average Lease Term Remaining     3.29
       
Balance Sheet ($ in thousands)    
       
Cash    $               12,128
Gross Assets    $            381,258
Total Debt    $            276,150
Net Debt (Total Debt less Cash)    $            264,022
Net Debt / Gross Assets   69.3%
       
       
    For the three months ended June 30,
Operating results ($ in thousands) 2018 2017
       
Total revenue  $               12,047  $                 5,027
Net operating income  $                 8,189  $                 3,509
       
       
2018 Capital Activity ($ in thousands)    
       
Increased secured line of credit agreement with KeyBank National 3/8/2018  $               45,000
Secured 10 year term loan with Minnesota Insurance 4/30/2018  $               21,500
Secured term loan with KeyBank 5/23/2018  $               35,700
Repaid Torchlight Mezzanine Loan 5/24/2018  $             (35,000)
Subsequent Capital Activity:    
Secured 10 year term loan with Aegon 7/10/2018  $               78,000
Repaid MWG Portfolio Loan 7/10/2018  $             (79,800)
Issued 1,102,464 common shares @ $15.60 per share 7/23/2018  $               16,253
Paid down KeyBank Term Loan 7/25/2018  $               (4,064)

 

2Q 2018 Supplemental

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Plymouth Industrial REIT, Inc.
Transaction Activity Since IPO

 

Unaudited ($ in thousands) (at 6/30/2018)        
           
 Acquisitions          
Location Acquisition Date # of Properties Purchase Price (1) Square Footage Projected Initial Yield
Elgin/Arlington Heights, IL 4/9/2018 2  $                 15,675              269,999 8.0%
Elgin, IL 12/22/2017 1                       4,050 75,000 9.7%
Atlanta. GA 12/21/2017 3                     11,425 330,361 8.3%
Multiple 11/30/2017 15                     99,750 3,027,987 8.1%
Memphis, TN 9/8/2017 1                       3,700 131,904 8.6%
Memphis, TN 8/16/2017 1                       7,825 235,000 10.5%
Columbus, OH 8/16/2017 1                       3,700 121,440 9.0%
Indianapolis, IN 8/11/2017 2                     16,875 606,871 8.5%
Southbend, IN 7/20/2017 5                     26,000              667,000 8.5%
           
 Total - Acquisitions   31  $              189,000 5,465,562  
           
(1) Represents total consideration paid rather than GAAP cost basis.      

 

2Q 2018 Supplemental

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Plymouth Industrial REIT, Inc.
Capitalization Analysis

 

Unaudited (in thousands except for per-share data and percentages)        
               
        Three Months Ended
        6/30/2018 3/31/2018 12/31/2017 9/30/2017
               
Common Stock Data            
               
  Weighted-Average Shares Outstanding - Basic   3,400 3,647 3,656 3,636
  Weighted-Average Shares Outstanding - Diluted   3,400 3,647 3,656 3,636
  High Closing Price      $                17.91  $                18.52  $                18.98  $                19.00
  Low Closing Price      $                15.09  $                16.25  $                17.22  $                16.50
  Average Closing Price      $                16.99  $                17.46  $                18.15  $                17.90
  Closing Price (as of period end)      $                16.00  $                17.18  $                18.48  $                18.21
  Dividends / Share (annualized) (1)      $                   1.50  $                   1.50  $                   1.50  $                   1.50
  Dividend Yield (annualized) (2)     9.4% 8.7% 8.1% 8.2%
  Common Shares Outstanding (2)     3,556 3,556 3,819 3,813
  Market Value of Common Shares (2)      $              56,896  $              61,092  $              70,579  $              69,433
  Total Market Capitalization (2) (3)      $            333,046  $            314,217  $            321,704  $            243,258

 

Equity Research Coverage (4)            
               
D.A. Davidson & Co. National Securities Corporation        
Barry Oxford John Benda          
646.885.5423 212.417.8127          
               
               
Investor Conference Call and Webcast:
The Company will hold a conference call and live audio webcast, both open for the general public to hear, on August 9, 2018 at 10:00 a.m. Eastern Time. The number to call for this interactive teleconference is (412) 717-9587. A replay of the call will be available through August 16, 2018 by dialing (412) 317-0088 and entering the replay access code, 10122697.

 

(1) Based on annualized dividend declared for the quarter.
(2) Based on closing price and ending shares for the last trading day of the quarter.
(3) Market value of shares plus total debt as of quarter end.
(4) The analysts listed provide research coverage on the Company. Any opinions, estimates or forecasts regarding the Company's performance made by these analysts are theirs alone and do not represent opinions, estimates or forecasts by the Company or its management. The Company does not by reference above imply its endorsement of or concurrence with such information, conclusions or recommendations.

 

2Q 2018 Supplemental

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Plymouth Industrial REIT, Inc.        
Consolidated Balance Sheets (unaudited)

 

(in thousands)        
           
           
    6/30/2018 3/31/2018 12/31/2017 (1) 9/30/2017
Assets:        
Real estate properties:        
Land  $                  63,688  $                  59,799  $                  59,797  $                  25,069
Building and improvements                    257,175                    244,428                    243,605                    165,066
Less accumulated depreciation                     (32,809)                     (28,828)                     (25,013)                     (22,094)
           
Total real estate properties, net  $                288,054  $                275,399  $                278,389  $                168,041
           
           
Cash and cash equivalents                       12,128                       13,097                       19,163                       10,818
Deferred lease intangibles, net                       25,020                       25,297                       27,619                       16,446
Other assets                         7,430                         5,284                         4,782                         2,286
           
Total assets  $                332,632  $                319,077  $                329,953  $                197,591
           
Liabilities:        
Debt, net  $                270,597  $                247,753  $                245,632  $                169,196
Deferred interest                               -                            1,575                         1,357                            765
Accounts payable, accrued expenses and other liabilities                       16,864                       15,174                       16,015                         7,476
Deferred lease intangibles, net                         6,657                         6,261                         6,807                         1,911
           
Total liabilities  $                294,118  $                270,763  $                269,811  $                179,348
           
Preferred Stock - Series A  $                  48,868  $                  48,878  $                  48,931  $                             -
           
Equity:        
Common stock  $                          36  $                          36  $                          39  $                          39
Additional paid in capital                    114,085                    116,183                    123,270                    125,231
Accumulated deficit                   (129,982)                   (123,277)                   (119,213)                   (114,789)
Total Plymouth Industrial REIT, Inc. stockholders' equity                     (15,861)                       (7,058)                         4,096                       10,481
Noncontrolling interest                         5,507                         6,494                         7,115                         7,762
           
Total equity  $                (10,354)  $                      (564)  $                  11,211  $                  18,243
           
Total liabilities, Series A preferred stock and equity  $                332,632  $                319,077  $                329,953  $                197,591
           
(1) Audited consolidated financial statements and notes for the year ended December 31, 2017 are available within our 2017 Annual Report on Form 10-K.

 

2Q 2018 Supplemental

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Plymouth Industrial REIT, Inc.  
Consolidated Statements of Operations - GAAP (unaudited)

 

(in thousands, except per-share amounts)                    
                       
        Three Months Ended
        6/30/2018   3/31/2018   12/31/2017   9/30/2017  
Revenues:                    
Rental income      $                     9,019    $                     8,483    $                     6,379    $                     4,699  
Tenant recoveries                             2,957                           2,946                           2,031                           1,743  
Other revenue                                   71                               450                                   1                                   1  
                       
Total revenues      $                   12,047    $                   11,879    $                     8,411    $                     6,443  
                       
Operating expenses:                    
Property related                             3,787                           4,452                           3,122                           2,159  
Depreciation and amortization                             6,444                           6,542                           4,943                           3,499  
General and administrative                             1,533                           1,373                           2,031                           1,224  
Acquisition costs                                      -                                    -                                 17                                   4  
                       
Total operating expenses      $                   11,764    $                   12,367    $                   10,113    $                     6,886  
                       
Operating income      $                        283    $                      (488)    $                   (1,702)    $                      (443)  
                       
Other income (expense):                    
Gain on disposition of equity investment                                      -                                    -                                   8                               223  
Interest expense                            (4,216)                          (3,985)                          (3,219)                          (2,619)  
Loss on debt extinguishment                            (3,601)                                    -                                    -                                    -  
                       
Total other income (expense)      $                   (7,817)    $                   (3,985)    $                   (3,211)    $                   (2,396)  
                       
Net loss      $                   (7,534)    $                   (4,473)    $                   (4,913)    $                   (2,839)  
                       
Less: Net income attributable to noncontrolling interest                               (829)                             (463)                             (489)                             (157)  
                       
Net loss attributable to Plymouth Industrial REIT, Inc.      $                   (6,705)    $                   (4,010)    $                   (4,424)    $                   (2,682)  
                       
Less: Series A preferred stock dividends (2)                                 956                               956                               723                                    -  
Less: Amount allocated to participating securities                                   46                                 61                               128                                    -  
                       
Net income (loss) attributable to common stockholders      $                   (7,707)    $                   (5,027)    $                   (5,275)    $                   (2,682)  
                       
Net income (loss) attributable to common stockholders per share - basic and diluted    $                     (2.27)    $                     (1.38)    $                     (1.44)    $                     (0.74)  
                       
Weighted-average shares outstanding - basic     3,400   3,647   3,656   3,636  
Weighted-average shares outstanding - diluted     3,400   3,647   3,656   3,636  

 

(1) Audited consolidated financial statements and notes for the year ended December 31, 2017 are available within our  2017 Annual Report on Form 10-K.
(2) Preferred stock dividend for the fourth quarter of 2017 of $0.46875, which was pro-rated to $0.3542 per share to reflect the period commencing October 25, 2017 (original issue date) and ending December 31, 2017, was declared in December 2017 and paid in January 2018.

 

2Q 2018 Supplemental

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Plymouth Industrial REIT, Inc.
Same Store Net Operating Income (NOI)

 

Unaudited (in thousands)              
                 
Trailing four quarter same store NOI Three Months Ended
    6/30/2018   3/31/2018   12/31/2017   9/30/2017
Same store properties   20   20   20   20
                 
Revenues:              
Rental income  $                3,423    $                     3,455    $                     3,626    $                     3,644
Tenant recoveries                      1,425                           1,382                           1,334                           1,392
Total operating revenues  $                4,848    $                     4,837    $                     4,960    $                     5,036
                 
Property expenses  $                1,388    $                     1,815    $                     2,031    $                     1,606
                 
Same store net operating income  $                3,460    $                     3,022    $                     2,929    $                     3,430

 

Trailing two quarter same store NOI Three Months Ended  
    6/30/2018   3/31/2018  
Same store properties   49   49  
           
Revenues:        
Rental income  $                8,657    $                     8,483  
Tenant recoveries                      2,945                           2,946  
Total operating revenues  $              11,602    $                   11,429  
           
Property expenses  $                3,707    $                     4,452  
           
Same store net operating income  $                7,895    $                     6,977  

 

2Q 2018 Supplemental

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Plymouth Industrial REIT, Inc.
NOI

 

Unaudited (in thousands)          
             
    Three Months Ended
    6/30/2018   3/31/2018 12/31/2017 9/30/2017
             
Net loss  $              (7,534)    $                   (4,473)  $                   (4,913)  $                   (2,839)
             
General and administrative                    1,533                           1,373                         2,031                         1,224
Acquisition expense                             -                                    -                               17                                 4
Interest expense                    4,216                           3,985                         3,219                         2,619
Depreciation and amortization                    6,444                           6,542                         4,943                         3,499
Loss on debt extinguishment                    3,601                                    -                                  -                                  -
Other income                        (71)                             (450)                                (9)                           (224)
             
Net Operating Income  $                8,189    $                     6,977  $                     5,288  $                     4,283

 

2Q 2018 Supplemental

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Plymouth Industrial REIT, Inc.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)

 

Unaudited (in thousands)          
             
    Three Months Ended
    6/30/2018   3/31/2018 12/31/2017 9/30/2017
             
Net loss  $              (7,534)    $                   (4,473)  $                   (4,913)  $                   (2,839)
             
Depreciation and amortization                    6,444                           6,542                         4,943                         3,499
Interest expense                    4,216                           3,985                         3,219                         2,619
Loss on debt extinguishment                    3,601                                    -                                  -                                  -
             
EBITDA  $                6,727    $                     6,054  $                     3,249  $                     3,279

 

2Q 2018 Supplemental

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Plymouth Industrial REIT, Inc.
Funds from Operations (FFO) & Adjusted Funds from Operations (AFFO)

 

Unaudited (in thousands, except per-share amounts)          
             
    Three Months Ended
    6/30/2018   3/31/2018 12/31/2017 9/30/2017
             
Net loss  $                (7,534)    $                   (4,473)  $                   (4,913)  $                   (2,839)
             
Depreciation and amortization                       6,444                           6,542                         4,943                         3,499
Loss on debt extinguishment                       3,601                                    -                                  -                                  -
Gain on disposition of equity investment                               -                                    -                                (8)                           (223)
             
FFO  $                  2,511    $                     2,069  $                           22  $                        437
             
Preferred stock dividend                        (956)                             (956)                           (723)                                  -
FFO attributable to common stockholders and unit holders  $                  1,555    $                     1,113  $                      (701)  $                        437
             
Deferred finance fee amortization                          466                               387                             259                             202
Acquisition costs                             -                                     -                                  17                                 4
Non-cash interest expense                          560                               247                             900                             565
Stock compensation                          200                               200                             192                             208
Straight line rent                        (461)                             (357)                             (82)                             (32)
Above/below market lease rents                        (306)                             (411)                           (168)                             (89)
Recurring capital expenditures (1)                        (350)                             (992)                           (227)                             (63)
AFFO  $                  1,664    $                        187  $                        190  $                     1,232
             
Weighted average common shares and units outstanding                       3,977                           4,232                         4,234                         3,913
             
FFO attributable to common stockholders and unit holders per share  $                    0.39    $                       0.26  $                     (0.17)  $                       0.11
             
AFFO attributable to common stockholders and unit holders per share  $                    0.42    $                       0.04  $                       0.04  $                       0.31

 

(1) Excludes non-recurring capital expenditures of $874, $373, $819 and $440 for the three months ending June 30, March 31, 2018, December 31, and September 30, 2017, respectively.

 

2Q 2018 Supplemental

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Plymouth Industrial REIT, Inc.
Debt Overview

 

Unaudited ($ in thousands) at 6/30/2018            
 Debt Instrument - Secured Facility Maturity Rate Rate Type Properties Encumbered Balance % of Total Debt
$45 million line of credit   August-21  4.75%(1) Floating                                 9  $                   19,150 6.9%
$120 million AIG Loan   October-23 4.08% Fixed                               20  $                 120,000 43.5%
$79.8 million MWG Loan   November-19 5.08% (2) Floating                               15  $                   79,800 28.9%
$35.7 million KeyBank Term Loan (4)   August-21 9.09% (3) Floating                                  -  $                   35,700 12.9%
$21.5 million Minnesota Life Loan   May-28 3.78% Fixed                                 6  $                   21,500 7.8%
                                        50  $                276,150 100.0%

 

Balance Sheet ($ in thousands) at 6/30/2018      
 Cash        $                   12,128
 Gross Assets (5)        $                 381,258
 Total Debt        $                 276,150
 Net Debt        $                 264,022

 

Subsquent Event
On July 10, 2018, we entered into a secured loan agreement with Aegon USA Realty Advisors, as agent for one of its affiliated life insurance companies, or the Aegon Lender, in the original principal amount of $78,000. The Aegon Secured Term Loan bears interest at 4.35% per annum and has a ten-year term, maturing on August 1, 2028. The Aegon Secured Term Loan provides for monthly payments of interest only for the first year of the term and thereafter monthly principal and interest payments based on a 30-year amortization period. The borrowings under the Aegon Secured Term Loan are secured by first lien mortgages on eighteen of the Company’s properties. Proceeds from the Aegon Secured Term Loan were used to retire the outstanding borrowings under the MWG Portfolio Secured Loan.
   
(1) Interest rate paid for the month of June 30, 2018. Borrowings under the Line of Credit Agreement bear interest at either (1) the base rate (determined from the highest of (a) KeyBank’s prime rate, (b) the federal funds rate plus 0.50% and (c) the one month LIBOR rate plus 1.0%) or (2) LIBOR, plus, in either case, a spread between 250 and 300 basis points depending on our total leverage ratio.
(2) Interest rate paid for the month of June 30, 2018.  Interest for the first year at a rate per annum equal to LIBOR plus 3.10% and for the second year at a rate per annum equal to LIBOR plus 3.35%.
(3) Interest rate for the month of June 30, 2018. Borrowings under the KeyBank Term Loan bear interest at either (1) LIBOR plus 7% or (2) KeyBank’s base rate plus 6%.
(4) The KeyBank Term Loan is secured by Plymouth Industrial REIT's equity interest within the Plymouth 20 and each of its property owning subsidiaries.
(5) The carrying amount of total assets plus accumulated depreciation and amortization, as reported in the Company's consolidated financial statements.

 

2Q 2018 Supplemental

12 

 

 

Plymouth Industrial REIT, Inc.
Property Overview - Square Feet & Occupancy

 

Unaudited ($ in thousands) at 6/30/18        
           
         
 Property  Market  Rentable
Square Feet 		 Leased
Square Feet 		 Occupancy
  32 Dart Road Atlanta                    194,800 194,800 100.0%
  1665 Dogwood Drive SW Atlanta                    198,000 198,000 100.0%
  1715 Dogwood Drive Atlanta                    100,000 100,000 100.0%
  11236 Harland Drive Atlanta                       32,361 32,361 100.0%
Subtotal - Atlanta                      525,161                    525,161 100.0%
  11351 W 183rd Street Chicago                       18,768                       18,768 100.0%
  11601 Central Avenue Chicago                    260,000                    260,000 100.0%
  13040 South Pulaski Avenue Chicago                    395,466                    395,466 100.0%
  1355 Holmes Road Chicago                       82,456                       82,456 100.0%
  13970 West Laurel Drive Chicago                       70,196                       70,196 100.0%
  1455-1645 Greenleaf Avenue Chicago                    150,000                    150,000 100.0%
  1600 Fleetwood Drive Chicago                    247,000                    247,000 100.0%
  1750 South Lincoln Drive Chicago                    499,200                    499,200 100.0%
  1796 Sherwin Avenue Chicago                       98,879                       98,879 100.0%
  1875 Holmes Road Chicago                    134,415                    134,415 100.0%
  189 Seegers Road Chicago                       25,000                       25,000 100.0%
  2401 Commerce Drive Chicago                       78,574                       78,574 100.0%
  28160 North Keith Drive Chicago                       77,924                       77,924 100.0%
  3 West College Drive Chicago                       33,263                       33,263 100.0%
  3841-3865 Swanson Court Chicago                       99,625                       99,625 100.0%
  3940 Stern Avenue Chicago                    146,798                    146,798 100.0%
  440 South McLean Chicago                       74,613                       74,613 100.0%
  6000 West 73rd Street Chicago                    148,091                    148,091 100.0%
  6510 West 73rd Street Chicago                    306,552                    306,552 100.0%
  6558 West 73rd Street Chicago                    301,000                    301,000 100.0%
  6751 Sayre Avenue Chicago                    242,690                    242,690 100.0%
  7200 Mason Ave Chicago                    207,345                    207,345 100.0%
  5110 South 6th Street Milwaukee                       58,500                       58,500 100.0%
  525 West Marquette Avenue Milwaukee                    112,144                       40,000 35.7%
Subtotal - Chicago                   3,868,499                 3,796,355 98.1%
  Mosteller Distribution Center Cincinnati                    358,386                    358,386 100.0%
  4115 Thunderbird Lane Cincinnati                       70,000                       70,000 100.0%
Subtotal - Cincinnati                      428,386                    428,386 100.0%
  3500 Southwest Boulevard Columbus                    527,127                    527,127 100.0%
  3100 Creekside Parkway Columbus                    340,000                               -    0.0%
  8288 Green Meadows Dr. Columbus                    300,000                    300,000 100.0%
  8273 Green Meadows Dr. Columbus                       77,271                       77,271 100.0%
  7001 American Pkwy Columbus                       54,100                       54,100 100.0%
  2120 - 2138 New World Drive Columbus                    121,200                    121,200 100.0%
Subtotal - Columbus                   1,419,698                 1,079,698 76.1%
  3035 North Shadeland Ave Indianapolis                    562,497                    537,497 95.6%
  3169 North Shadeland Ave Indianapolis                       44,374                       41,960 94.6%
  5861 W Cleveland Road South Bend                       62,550                       62,550 100.0%
  West Brick Road South Bend                    101,450                    101,450 100.0%
  4491 N Mayflower Road South Bend                       77,000                       77,000 100.0%
  5855 West Carbonmill Road South Bend                    198,000                    198,000 100.0%
  4955 Ameritech Drive South Bend                    228,000                    228,000 100.0%
Subtotal - Indianapolis/South Bend                   1,273,871                 1,246,457 97.8%
  6005, 6045 & 6075 Shelby Dr. Memphis                    202,303                    167,018 82.6%
  210 American Dr. Jackson                    638,400                    638,400 100.0%
  3635 Knight Road Memphis                    131,904                    131,904 100.0%
  Business Park Drive Memphis                    235,006                    128,457 54.7%
Subtotal - Memphis/Jackson                   1,207,613                 1,065,779 88.3%
  7585 Empire Drive Florence, KY                    148,415                    148,415 100.0%
  56 Milliken Road Portland, ME                    200,625                    200,625 100.0%
  4 East Stow Road Marlton, NJ                    156,279                    134,959 86.4%
  1755 Enterprise Parkway Cleveland, OH                    255,570                    234,370 91.7%
Subtotal - Others                      760,889                    718,369 94.4%
 Total - All Properties                   9,484,117                 8,860,205 93.4%

 

2Q 2018 Supplemental

13 

 

 

Plymouth Industrial REIT, Inc.
Market Summary

 

Unaudited (SF and $ in thousands) (at 6/30/2018)      
             
             
 Geography  State  Properties  Total
Acquisition
Cost (1) 		 Gross
Real Estate
Assets (2) 		 % Gross
Real Estate
Assets
 Atlanta   GA 4  $                      17,045  $                15,765 4.9%
 Chicago   IL, WI 24                        154,140                  143,179 44.6%
 Cincinnati   OH 2                          14,900                    13,349 4.2%
 Columbus   OH 6                          50,982                    48,427 15.1%
 Indianapolis/South Bend   IN 7                          43,450                    38,358 12.0%
 Memphis/Jackson   TN 4                          31,608                    26,345 8.2%
 Other   Various 4                          39,000                    35,163 11.0%
 Total   51  $                    351,125  $              320,586 100%

 

 

 

(1) Total acquisition cost prior to allocations per US GAAP.
(2) The gross book value of real estate assets as of June 30, 2018 excluding $277 in leasehold improvements related to our Corporate office. Gross book value of real estate assets excludes depreciation and the allocation of the acquisition cost towards intangible asset and liabilities required by US GAAP.

 

2Q 2018 Supplemental

14 

 

 

Plymouth Industrial REIT, Inc.
Leasing Activity

 

                 
 Year Type Square
Footage		 Percent  Expiring
Rent 		New Rent % Change Tenant Improvements $/SF/YR  Lease Commissions $/SF/YR
                 
2017 Renewals 234,679 84.1%  $        4.25  $         4.51 6.2%  $              0.07  $                 0.13
  New Leases 44,268 15.9%  $        2.16  $         3.00 38.7%  $              0.41  $                 0.27
  Total 278,947 100.0%  $        3.92  $         4.27 9.1%  $              0.13  $                 0.15
                 
Q1 2018 Renewals 146,798 47.5%  $        4.25  $         4.30 1.2%  $                   -     $                 0.11
  New Leases 162,119 52.5%  $        3.17  $         3.99 26.1%  $              0.09  $                 0.04
  Total 308,917 100.0%  $        3.68  $         4.07 10.6%  $              0.05  $                 0.07
                 
Q2 2018 Renewals 146,874 13.1%  $        4.83  $         5.00 3.6%  $              0.14  $                 0.13
  New Leases 664,828 59.3%  $        3.67  $         3.92 6.9%  $              0.42  $                 0.25
  Total 811,702 100.0%  $        3.88  $         4.21 8.4%  $              0.37  $                 0.23
                 
2018 Renewals 293,672 26.2%  $        4.54  $         4.65 2.4%  $              0.07  $                 0.11
  New Leases 826,947 73.8%  $        3.58  $         3.94 10.0%  $              0.35  $                 0.21
  Total 1,120,619 100.0%  $        3.83  $         4.13 7.7%  $              0.28  $                 0.18
                 
Total Renewals 528,351 37.8%  $        4.41  $         4.59 4.1%  $              0.07  $                 0.12
  New Leases 871,215 62.2%  $        3.51  $         3.89 10.9%  $              0.36  $                 0.22
  Total 1,399,566 100%  $        3.85  $         4.16 8.0%  $              0.25  $                 0.18

 

2Q 2018 Supplemental

15 

 

 

Plymouth Industrial REIT, Inc.
Lease Expiration Schedule

 

Unaudited ($ in thousands) (at 6/30/2018)  

 

Year Square
Footage		 Annualized
Base Rent (ABR) (1) 		% of ABR
 Expiring (2)
Available                                    623,911  $                                              -    -
2018                                    439,676                                            2,345 7.0%
2019                                 1,480,835                                            4,897 14.6%
2020                                 1,613,610                                            5,596 16.7%
2021                                 2,173,308                                            8,190 24.4%
2022                                    963,685                                            4,510 13.5%
Thereafter                                 2,189,092                                            7,996 23.8%
Total                                9,484,117  $                                     33,534 100.0%

 

 

 

(1) Annualized base rent is calculated as monthly contracted base rent per the terms of such lease, as of June 30, 2018, multiplied by 12. Excludes billboard and antenna revenue and rent abatements.
(2) Calculated as annualized base rent set forth in this table divided by total annualized base rent for the Company Portfolio as of June 30, 2018.

 

2Q 2018 Supplemental

16 

 

 

Plymouth Industrial REIT, Inc.
Glossary

 

Non-GAAP Financial Measures Definitions:
Net Operating Income (NOI): We consider net operating income, or NOI, to be an appropriate supplemental measure to net income because it helps both investors and management understand the core operations of our properties. We define NOI as total revenue (including rental revenue, tenant reimbursements, management, leasing and development services revenue and other income) less property-level operating expenses including allocated overhead. NOI excludes depreciation and amortization, general and administrative expenses, impairments, gain/loss on sale of real estate, interest expense, and other non-operating items.
EBITDA: We believe that earnings before interest, taxes, depreciation and amortization, or EBITDA, is helpful to investors as a supplemental measure of our operating performance as a real estate company because it is a direct measure of the actual operating results of our industrial properties. We also use this measure in ratios to compare our performance to that of our industry peers. EBITDA as presented herein is equal to EBITDAre as defined by NAREIT.
Funds From Operations attributable to common stockholders (“FFO”): Funds from operations, or FFO, is a non-GAAP financial measure that is widely recognized as a measure of REIT operating performance. We consider FFO to be an appropriate supplemental measure of our operating performance as it is based on a net income analysis of property portfolio performance that excludes non-cash items such as depreciation. The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time. Since real estate values rise and fall with market conditions, presentations of operating results for a REIT, using historical accounting for depreciation, could be less informative. We define FFO, consistent with the National Association of Real Estate Investment Trusts, or NAREIT, definition, as net income, computed in accordance with GAAP, excluding gains (or losses) from sales of property, depreciation and amortization of real estate assets, impairment losses, loss on extinguishment of debt and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect FFO on the same basis. Other equity REITs may not calculate FFO (in accordance with the NAREIT definition) as we do, and, accordingly, our FFO may not be comparable to such other REITs’ FFO. FFO should not be used as a measure of our liquidity, and is not indicative of funds available for our cash needs, including our ability to pay dividends.
Adjusted Funds From Operations attributable to common stockholders (“AFFO”):  Adjusted funds from operation, or AFFO, is presented in addition to FFO. AFFO is defined as FFO, excluding certain non-cash operating revenues and expenses, acquisition and transaction related costs for transactions not completed and recurring capitalized expenditures. Recurring capitalized expenditures includes expenditures required to maintain and re-tenant our properties, tenant improvements and leasing commissions. AFFO further adjusts FFO for certain other non-cash items, including the amortization or accretion of above or below market rents included in revenues, straight line rent adjustments, impairment losses, non-cash equity compensation and non-cash interest expense. We believe AFFO provides a useful supplemental measure of our operating performance because it provides a consistent comparison of our operating performance across time periods that is comparable for each type of real estate investment and is consistent with management’s analysis of the operating performance of our properties. As a result, we believe that the use of AFFO, together with the required GAAP presentations, provide a more complete understanding of our operating performance. As with FFO, our reported AFFO may not be comparable to other REITs’ AFFO, should not be used as a measure of our liquidity, and is not indicative of our funds available for our cash needs, including our ability to pay dividends.
Other Definitions:
GAAP: U.S generally accepted accounting principles.

Gross Assets: the carrying amount of total assets plus accumulated depreciation and amortization, as reported in the Company’s consolidated financial statements. For gross assets as of June 30, 2018 and December 31, 2017, the calculation is as follows:

 

  6/30/2018
Total Assets $332,632   
Add back depreciation expense 32,809   
Add back intangible asset amortization       15,817   
Gross assets $381,258   

 

Non-Recurring Capital Expenditures: Non-recurring capital expenditures include capital expenditures of long lived improvements required to upgrade/replace existing systems or items that previously did not exist.
Occupancy: We define occupany as the percentage of total leasable square footage in which either the sooner of lease term commencement or revenue recognition in accordance to GAAP has commenced as of the close of the reporting period.
Recurring Capital Expenditures: Recurring capitalized expenditures includes capital expenditures required to maintain and re-tenant our properties, tenant improvements and leasing commissions.
Same Store Portfolio: Our Same Property Portfolio is a subset of our consolidated portfolio and includes properties that were wholly-owned by us for the entire period presented. The trailing 4 quarters same store portfolio includes properties owned as of April 1, 2017, and still owned by us as of June 30, 2018. Therefore, we excluded from our Same Store Portfolio any properties that were acquired or sold during the period from April 1, 2017 through June 30, 2018. The trailing 2 quarters same store  portfolio includes properties owned as of January 1, 2018, and still owned by us as of June 30, 2018. Therefore, we excluded from our Same Store Portfolio any properties that were acquired or sold during the period from January 1, 2018 through June 30, 2018. The Company's computation of same store NOI may not be comparable to other REITs.
Weighted average lease term remaining: The average contractual lease term remaining as of the close of the reporting period (in years) weighted by square footage.

 

2Q 2018 Supplemental

17 

 

 

Plymouth Industrial REIT, Inc. Reports