Thu, May 1, 8:30 PM (21 days ago)
**Plymouth Industrial REIT, Inc. (PLYM) Q1 2025 Financial Performance Summary** **Financial Health and Performance:** - **Revenue:** Total revenues decreased by 9.3% to $45.6 million, primarily due to a $5.8 million decrease in rental revenue within the Acquisitions, Dispositions, and Other portfolio, partially offset by a $1 million increase in the Same Store Portfolio. - **Profit Margins:** Net income increased by 11.5% to $7 million, driven by a decrease in interest expense and gains on financing transactions. - **Cash Flow:** Net cash provided by operating activities decreased by 6.1% to $15.6 million. Net cash used in investing activities increased significantly by $64.0 million to $67.8 million due to acquisitions and capital expenditures. Net cash provided by financing activities increased by $63.9 million to $52.1 million, primarily due to increased borrowings under the line of credit. **Key Metrics:** - **Rental Revenue:** Decreased by 9.5% to $45.4 million due to dispositions and acquisitions. - **Property Expenses:** Decreased by 11.6% to $14.7 million, driven by a decrease in expenses within the Acquisitions, Dispositions, and Other portfolio. - **Depreciation and Amortization:** Decreased by 13.5% to $19.4 million. - **Interest Expense:** Decreased by 28.6% to $6.8 million. - **Gain on Financing Transaction:** Recorded a gain of $14.1 million, primarily due to adjustments in the fair market value of warrants and forward contracts. **Trends and Uncertainties:** - **Occupancy Rate:** As of March 31, 2025, the portfolio was approximately 94.3% occupied. - **Lease Expirations:** 49.9% of the annualized base rent leases are scheduled to expire from April 1, 2025, to December 31, 2027, providing an opportunity to increase rents. - **Market Conditions:** The portfolio's performance is influenced by economic conditions in various primary and secondary markets within the main industrial, distribution, and logistics corridors of the United States. - **Debt Management:** The company is in compliance with all financial covenants for its secured and unsecured debt and unsecured revolving line of credit as of March 31, 2025. **Future Operations Impact:** - **Acquisitions and Dispositions:** The company continues to evaluate diversifying its portfolio to include mortgage, bridge, or mezzanine loans collateralized by properties that meet investment criteria. - **Liquidity:** As of March 31, 2025, the company had available liquidity of approximately $435.4 million, comprised of $19.9 million in cash and cash equivalents and $415.5 million of borrowing capacity on its KeyBank unsecured line of credit. - **Interest Rate Risk:** The company uses interest rate swap agreements to manage interest rate risk, with all outstanding variable rate debt fixed through maturity, except for the balance under the KeyBank unsecured line of credit.