Plymouth Industrial REIT's Q3 2024 Update: Strong Leasing Results
Plymouth Industrial REIT Reports Positive Developments for Q3 2024
BOSTON - Plymouth Industrial REIT, Inc. (NYSE: PLYM) has recently shared an insightful update regarding its activities for the third quarter of 2024, unveiling promising advancements in leasing and development sectors. Alongside this update, the company has scheduled its upcoming earnings conference call and webcast, taking place soon.
CEO Insights and Leasing Achievements
Jeff Witherell, the Chief Executive Officer and Co-Founder of Plymouth, expressed optimism about the company’s leasing initiatives. Notably, the team has successfully addressed 74% of lease expirations set for 2024 and an impressive 39% for 2025. Furthermore, the development program is now fully leased, showcasing robust demand in the key markets they operate. Witherell stated, “We see encouraging activity in our leading leasing opportunities and anticipate reporting more progress as the year unfolds.”
Leasing Statistics for Q3
In the third quarter that ended on September 30, 2024, Plymouth saw its leasing activity soar, totaling 1,095,115 square feet across various leases. Each of these leases has a minimum duration of six months, reinforcing the company's encouraging position. This comprised 598,858 square feet dedicated to renewals and 496,257 square feet attributed to new leasing. Additionally, the rental rates experienced notable growth, reflecting a cash basis increase of 12.2%. Renewals had a 9.1% increase, while new leases saw a striking 15.7% rise, indicating a strong market response.
Portfolio Occupancy and Future Prospects
By the end of September, the overall portfolio occupancy stood at an impressive 94.2%. Though there was a slight impact of 230 basis points from some previously disclosed vacancies in St. Louis and the recent acquisition in Memphis, same-store occupancy remained a robust 97.5%. Furthermore, leases lined up for commencement in 2024 represented an aggregate of 5,646,792 square feet, showing strong forward momentum.
Details on Active Leasing Efforts
Plymouth continues to actively market a prominent 769,500-square-foot Class A industrial site located in the Metro East submarket of St. Louis. Currently, ten active prospects are engaged, including both full and half-building users. Proposals are under negotiation with several strong candidates, though timing remains uncertain.
Recent Extensions and Lease Activity
Noteworthy leasing developments this quarter include a one-year extension for 566,281 square feet in Memphis scheduled to commence in early 2025. Additionally, a five-year extension for 327,194 square feet in Chicago has been executed, set to start in late 2024.
Development Projects
Plymouth is nearing the completion of the final project in its first development phase, a fully leased 52,920-square-foot building located in Jacksonville, expected to launch in November 2024. In further movements, the company added a 10-year lease for 53,352 square feet in its Cincinnati site, pushing its overall development occupancy to an impressive 100%.
Strategic Acquisitions
During this quarter, Plymouth successfully acquired an expansive 1,621,241-square-foot industrial property portfolio stretching across the Southeast and Northeast regions, specifically targeting Memphis. The investment of $100.5 million reflects an initial net operating income yield of 8.0%, presenting a lucrative opportunity, given that the buildings currently enjoy a 94.0% lease rate.
Sale Transactions
Plymouth also executed a notable transaction during the quarter, selling a 527,127-square-foot industrial property in Columbus, Ohio, for approximately $21.1 million. This disposition is part of the company’s ongoing strategy to optimize its asset portfolio.
Future Joint Ventures
Looking ahead, Plymouth is on track to finalize a significant joint venture with Sixth Street, covering 34 of its properties based in the Chicago area with a total of around 5.9 million square feet. This venture’s closing is anticipated to occur in mid-November.
Upcoming Earnings Call
The company is set to release its Q3 earnings and supplementary financial updates shortly after the market closes on November 6, 2024. Plymouth will conduct a conference call and audio webcast on November 7 at 9:00 a.m. Eastern Time, providing shareholders with insights directly from the management.
About Plymouth Industrial REIT
Plymouth Industrial REIT, Inc. (NYSE: PLYM) stands as a committed full-service, vertically integrated real estate investment firm. The company concentrates on acquiring and managing both single and multi-tenant industrial properties, aiming to deliver adaptable and safe spaces to their tenants.
Frequently Asked Questions
What recent developments did Plymouth Industrial REIT announce?
Plymouth Industrial REIT announced strong Q3 leasing activity, with significant increases in rental rates and testament to occupancy levels.
When will Plymouth hold its next earnings call?
Plymouth will host its Q3 earnings call on November 7, 2024, at 9:00 a.m. Eastern Time.
What is the current occupancy rate of Plymouth's portfolio?
The overall portfolio occupancy rate stood at 94.2% as of September 30, 2024, with same-store occupancy at 97.5%.
What are the plans for future properties in development?
Plymouth's final project in their development program is set to complete soon, contributing to their 100% leased status.
What should investors know about the Sixth Street joint venture?
The joint venture will cover a substantial portion of Plymouth’s properties in Chicago, closing is expected in mid-November 2024.
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