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Plymouth Industrial REIT, Inc. (PLYM)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered steady operational execution: Core FFO per share was $0.46 (flat sequentially; down vs $0.48 in Q2 2024), AFFO per share was $0.44, SS NOI grew 6.7% GAAP and 4.1% cash; total revenue was $47.2M .
  • Guidance: Core FFO FY2025 reaffirmed at $1.85–$1.89; assumptions updated (higher G&A, interest, lower weighted average shares/units) reflecting capital actions and acquisitions; average SS occupancy maintained at 95–97% .
  • Leasing momentum: Q2 commencing leases totaled 1.45M sq ft at +10% cash rent spread; YTD executed leases now 5.92M sq ft at +13.6% blended cash spread; same-store occupancy 95.0%, total portfolio 94.6% .
  • Capital deployment: Closed $204.7M acquisitions (2.05M sq ft; initial NOI yield 6.7%), issued $79.0M Series C Preferred Units, and repurchased 805,394 shares in Q2 (225,829 more post-quarter) .
  • Stock-reaction catalysts: reaffirmed FY Core FFO, clear embedded rent upside from Ohio portfolio (~22% below market), visible larger-tenant renewals (St. Louis renewal “any day” per management), and continued buybacks supporting per-share economics .

What Went Well and What Went Wrong

What Went Well

  • Strong leasing execution: Q2 commenced 1.45M sq ft at +10.0% cash spreads; YTD 5.92M sq ft at +13.6% with 69.1% of 2025 expirations addressed .
  • Accretive acquisitions: $204.7M across 22 buildings (2.05M sq ft) at 6.7% initial NOI yield; Ohio Light Industrial portfolio (~1.95M sq ft) acquired at ~25%+ discount to replacement cost with ~22% below-market rents .
  • Discipline and capital allocation: $79.0M Series C Preferred issuance; buybacks at ~$16.26 (Q2) and $16.14 (post-quarter) highlighting confidence in intrinsic value; ample revolver capacity ($278–$286M) .

Management quote: “Our second quarter results reflect the consistent execution of our strategy—driving internal growth through strong leasing outcomes and stable occupancy, while deploying capital into accretive acquisitions across our core markets.” — Jeff Witherell, CEO .

What Went Wrong

  • GAAP earnings pressure: Net loss to common of ($6.2M), or ($0.14) per share, versus $1.2M ($0.03) in Q2 2024; drivers include Chicago JV deconsolidation, higher Series C Preferred dividends, and JV losses despite reduced interest expense .
  • Non-GAAP compression vs prior year: Core FFO per share down to $0.46 (from $0.48); AFFO per share down to $0.44 (from $0.49) on higher recurring capex tied to leasing, and preferred dividends .
  • Occupancy headwind mix: Sequential total occupancy gains were offset in part by known Memphis rollover (-130 bps impact), creating near-term leasing workload in that market .

Financial Results

GAAP Metrics vs prior year and quarter (Amounts USD)

MetricQ2 2024Q4 2024Q1 2025Q2 2025
Total Revenues ($M)$48.69 $47.57 $45.57 $47.20
Net Income to Common ($M)$1.22 $146.21 $5.76 ($6.20)
Diluted EPS ($)$0.03 $3.24 $0.13 ($0.14)
Weighted Avg Shares Diluted (M)45.03 45.10 45.10 44.93

Non-GAAP Operating Metrics

MetricQ2 2024Q4 2024Q1 2025Q2 2025
NOI ($M)$35.08 $33.16 $30.71 $33.32
EBITDAre ($M)$31.24 $30.66 $28.97 $30.82
Core FFO ($M)$21.83 $21.06 $20.15 $20.86
Core FFO per share ($)$0.48 $0.46 $0.44 $0.46
AFFO ($M)$22.30 $18.55 $18.91 $19.94
AFFO per share ($)$0.49 $0.40 $0.41 $0.44

KPIs and Leasing

KPIQ1 2025Q2 2025
Same-store NOI YoY (GAAP)+1.1% +6.7%
Same-store NOI YoY (Cash)+2.0% +4.1%
Same-store Occupancy94.7% 95.0%
Total Portfolio Occupancy94.3% 94.6%
Qtr Commencing Leases (sq ft)2,437,267 1,453,757
Qtr Cash Rent Spread9.6% 10.0%
YTD Executed Leases (sq ft)4,893,074 5,923,104
YTD Blended Cash Spread12.2% 13.6%

Estimates vs Actuals (S&P Global methodology; may differ from company-reported GAAP)

MetricQ2 2025 ConsensusQ2 2025 Actual (S&P)
Primary EPS ($)-0.17171*-0.0096*
Revenue ($M)46.24*39.98*
EBITDA ($M)29.52*21.07*

Values retrieved from S&P Global. Company-reported Q2 2025 revenue was $47.20M (different presentation than S&P “Revenue”) .

Guidance Changes

MetricPeriodPrevious Guidance (Feb 26, 2025)Current Guidance (Aug 6, 2025)Change
Core FFO per shareFY 2025$1.85 – $1.89 $1.85 – $1.89 Maintained
SS NOI growth (Cash)FY 20256.0% – 6.5% 6.0% – 6.5% Maintained
Avg SS OccupancyFY 202595.0% – 97.0% 95.0% – 97.0% Maintained
Acquisition VolumeFY 2025$270M – $450M $270M – $450M Maintained
G&A ExpenseFY 2025$15.85M – $16.45M $16.80M – $17.20M Raised
Interest Expense (net)FY 2025$32.0M – $36.5M $33.0M – $35.5M Tightened
Weighted Avg Shares & UnitsFY 202546,051 45,500 Lower
Dividend per shareQ2 2025$0.24 (Q1 paid 4/30) $0.24 (paid 7/31) Maintained

Earnings Call Themes & Trends

TopicQ4 2024 (Prior Q-2)Q1 2025 (Prior Q-1)Q2 2025 (Current)Trend
Tariffs/reshoring & supply chainJV/credit facility completed; portfolio positioned for rent growth Reshoring tailwinds; short-term warehousing demand; Memphis/Columbus flexibility “Local-for-local” manufacturing boosting demand for infill assets; longer-term commitments Strengthening demand for infill/light manufacturing
Leasing quality & spreads19.4% cash spread in Q4; occupancy 92.5% total; SS 95.2% Record volume; 9.6% blended (+16.2% ex St. Louis) +10% blended; YTD +13.6%; SS occupancy up to 95.0% Healthy spreads; larger deals lower spread mix
St. Louis large boxNew 769.5k sf lease (Jan 15); favorable net rate 169.5k sf short-term extension; renewal in process 624k sf renewal “in DocuSign; no chance it’s not happening” High confidence renewal
Memphis rolloverKnown headwind; Q4 total occupancy impacted Disposition/redevelopment; conversion of 100k sf call center -130 bps impact in Q2; 2-year extension being worked Progressing but near-term drag
Acquisitions/deploymentJV proceeds & credit facility set table $65.1M acquisitions; pipeline advancing $204.7M closed; ~$750M pipeline; off-market portfolio active Accelerating deployment
Balance sheet & leverageNo 2025 maturities; revolver upsized Net debt/EBITDA 5.9x; 88.1% fixed Net debt+Pref/EBITDA ~7.1x; 74.5% fixed; expect ~6x by YE Temporarily higher leverage, expected to normalize

Management Commentary

  • Strategic focus: “PLYM-type assets… exhibit occupancy rates 420 bps above broader market averages… well insulated and positioned to outperform” — Prepared Commentary .
  • Pipeline visibility: “Pipeline currently stands at about $750,000,000… fully engaged on a large off market portfolio… around $91,000,000 left to deploy” — CFO .
  • Leasing confidence: “St. Louis… in DocuSign… no chance it’s not happening” — EVP Asset Management .
  • Macro positioning: “Local-for-local manufacturing… driving incremental demand for well-located, functional industrial product” — Prepared Commentary .

Q&A Highlights

  • Large-box renewals: St. Louis 624k sf renewal expected imminently; Memphis extension in process (two-year) .
  • 2026 visibility: Two large international tenants (~370k sf) nearing signature; retention trending elevated for Ohio portfolio .
  • Acquisitions vs buybacks: ~$91M remaining to deploy; mix to resemble prior period; pursuing off-market portfolio; balancing with ongoing repurchases .
  • 3PL demand & rent bumps: 3PL activity up in Indy/Columbus given cost advantage; rent escalators averaging ~3.5% in new/renewal negotiations .

Estimates Context

  • On S&P Global’s “Primary EPS,” Q2 2025 printed better than consensus (Actual -$0.0096 vs -$0.17171*), while S&P “Revenue” and “EBITDA” were below consensus (Actual $39.98M vs $46.24M*; Actual $21.07M vs $29.52M*)*. Values retrieved from S&P Global.
  • Note: Company-reported Q2 revenue was $47.20M, reflecting different revenue presentation vs S&P methodology .
  • Forward investor implications: Expect estimate models to adjust for ongoing JV deconsolidation impacts, preferred dividends, and higher recurring capex tied to leasing; Core FFO trajectory supported by rent escalations and embedded mark-to-market in Ohio.

Guidance Changes

(See table above.) Key changes: G&A raised to $16.8–$17.2M (from $15.85–$16.45M), net interest narrowed to $33.0–$35.5M, weighted average shares/units lowered to 45,500, while Core FFO per share range and SS NOI growth maintained .

Key Takeaways for Investors

  • Leasing momentum is durable with clear catalysts (St. Louis renewal, larger-tenant activity), sustaining SS NOI growth and occupancy into H2 2025 .
  • Accretive acquisitions at 6.7–7.0% yields with ~20%+ rent mark-to-market provide multi-year internal growth runway, notably in Ohio .
  • Near-term headwinds (preferred dividends, JV accounting, recurring capex) weigh on GAAP/AFFO vs prior year, but Core FFO guide intact; buybacks underpin per-share metrics .
  • Balance sheet flexibility (no 2025 maturities; ~$278–$286M revolver capacity) supports pipeline execution; leverage expected to retrace toward ~6x by YE as assets season .
  • For estimates: S&P methodology differs from company GAAP revenue; modelers should align definitions when benchmarking beats/misses*. Values retrieved from S&P Global.
  • Trading lens: Reaffirmed Core FFO, visible renewals, and below-market rents in recent acquisitions are positive narrative drivers; Memphis roll and higher G&A are watch items .
  • Medium-term thesis: Infill, small-bay industrial exposure with constrained new supply and embedded rent growth, supported by reshoring and 3PL demand, should compound cash flows .

Additional Press Releases (Q2 2025)

  • Activity Update (July 8): Confirmed Q2 leasing metrics and revolver capacity (~$285.8M); reiterated acquisitions and buyback execution .
  • Ohio Acquisition (June 23): 21-building, 1.95M sq ft portfolio; ~22% below market rents; ~25%+ discount to replacement cost .
  • Dividend (June 16): Declared $0.24 per share, paid July 31 .

Citations: All facts and figures are sourced from the Q2 2025 8-K and press release , Q2 prepared commentary , Q2 earnings call transcript , Q1 2025 8-K and supplemental , Q4 2024 release , and additional Q2 press releases . S&P Global consensus and actuals marked with an asterisk are “Values retrieved from S&P Global.”