Plymouth Industrial REIT Inc (PLYM) Reports Strong Earnings Growth and Increased Dividends
Net Income: PLYM reported a net income of $9.2 million for Q4 2023, a significant improvement from a net loss of $4.5 million in Q4 2022.
Revenue: Consolidated total revenues increased to $50.8 million in Q4 2023 from $47.3 million in the same period last year.
NOI: Net Operating Income (NOI) rose to $35.6 million in Q4 2023, up from $33.1 million in Q4 2022.
Dividends: The Board declared a 6.7% increase in the regular quarterly common stock dividend to $0.240 per share for Q1 2024.
Occupancy Rates: Total portfolio occupancy was at 98.1% at the end of 2023, with same-store occupancy at 98.4%.
Debt Profile: 94% of PLYM's outstanding debt is fixed at a weighted average interest rate of 3.99%.
Leasing Activity: PLYM experienced a 21% increase in rental rates on a cash basis from leases executed during 2023.
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Plymouth Industrial REIT Inc (NYSE:PLYM) released its 8-K filing on February 21, 2024, detailing a robust financial performance for the fourth quarter and full year ended December 31, 2023. The company, which specializes in the acquisition, ownership, and management of Class B industrial properties, reported a notable turnaround in net income and a solid increase in revenues.
Financial Performance Highlights
PLYM's net income attributable to common stockholders for Q4 2023 was $9.2 million, or $0.20 per weighted average common share, a stark contrast to the net loss of $4.5 million, or $(0.11) per weighted average common share, for the same period in 2022. This improvement was primarily driven by a $10.5 million net gain on the sale of real estate and an increase in net operating income, despite increased interest expenses due to higher rates.
The company's consolidated total revenues for Q4 2023 reached $50.8 million, up from $47.3 million in the prior year's quarter. The increase in revenues was complemented by a rise in NOI, which stood at $35.6 million for the quarter, compared to $33.1 million in Q4 2022. The same-store NOI on a cash basis saw a 9.7% increase, indicating strong underlying property performance.
Core Funds from Operations (Core FFO) for the quarter was $21.6 million, or $0.47 per weighted average common share and unit, up from $19.1 million, or $0.44 per weighted average common share and unit, for the same period in 2022. Adjusted Funds from Operations (AFFO) also saw an increase, reaching $22.0 million, or $0.48 per weighted average common share and unit.
Operational and Strategic Developments
PLYM's leasing activity remained robust, with a 21% increase in rental rates on a cash basis for leases commencing during 2023. The company's portfolio occupancy rates were strong, with total portfolio occupancy at 98.1% and same-store occupancy at 98.4% as of December 31, 2023.
On the capital markets front, PLYM has a current cash balance of approximately $7.7 million and approximately $194.6 million of capacity under its existing unsecured line of credit. The company has also taken steps to secure its debt profile, with 94% of its outstanding debt now fixed at a weighted average interest rate of 3.99%.
Reflecting confidence in its financial position and future prospects, PLYM's Board of Directors declared a 6.7% increase in the regular quarterly common stock dividend to $0.240 per share, effective with the first quarter of 2024.
Looking Forward
PLYM's management expressed a positive outlook for the coming years, with a focus on strategic deployment of liquidity to generate growth. The company has issued guidance for full-year 2024, projecting Core FFO attributable to common stockholders and unit holders per share to be between $1.88 and $1.92.
As Plymouth Industrial REIT Inc (NYSE:PLYM) continues to navigate the industrial real estate market, its latest earnings report reflects a company that is not only growing its financials but also strategically positioning itself for future opportunities. For value investors, PLYM's strong performance, increased dividends, and solid occupancy rates present a compelling case for consideration.
For a more detailed analysis of Plymouth Industrial REIT Inc's financial results, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from Plymouth Industrial REIT Inc for further details.
This article first appeared on GuruFocus.
