Plymouth Industrial (PLYM) Signs Lease for Creekside Property
Plymouth Industrial REIT, Inc. PLYM recently announced signing a new three-year lease with Spartan Logistics for 257,962 square feet at 3100 Creekside in Columbus, OH. The move has helped fill the largest vacancy in its portfolio and achieve 76% leasing for the 340,000-square-foot Creekside property.
The full-service third-party logistics (3PL) company — Spartan — is expected to physically occupy the property in September, and use it for warehouse and distribution for personal care supplies. As Plymouth’s prior outlook did not include the gains from this new lease, the company plans to update its guidance with the benefit during the third-quarter earnings release.
Apart from signing the lease, Plymouth announced the addition of JPMorgan Chase JPM to its new $100-million senior secured revolving credit facility. The addition of JPMorgan Chase to the solid syndicate of lenders on its credit facility led by KeyBank, Barclays and Capital One adds to the company’s financial flexibility.
Notably, rising e-commerce boom, resilient consumer sentiment, low unemployment level and rising wages are playing key roles in keeping up the industrial and logistics sector’s healthy performance. Companies are making strategic moves to improve supply-chain efficiencies, spurring demand for logistics infrastructure and efficient distribution networks. This is offering ample opportunities to Plymouth and other industrial REITs, like Duke Realty Corp. DRE and Prologis PLD to prosper.
Nevertheless, there has been a steady recovery in the industrial market for long and a whole lot of new buildings are becoming available in the market, leading to higher supply and lesser scope for robust rent and occupancy growth. Additionally, any protectionist trade policies will have an adverse impact on economic growth and the company’s business over the long term.
Currently, Plymouth carries a Zacks Rank #3 (Hold). Its shares have gained 22.9% compared with the industry’s rise of 10.5%, over the past six months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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