Yahoo Finance Plymouth (PLYM) Boosts Growth With Solid Leasing Activity in Q2
Plymouth Industrial REIT PLYM continues to showcase its resilience and growth potential in the industrial real estate market, as evidenced by its leasing and development activity in the second quarter of 2024. Also, shares of PLYM were up around 0.9% during the regular trading session on the NYSE yesterday, reflecting positive investors’ sentiment.
Leases commencing during the second quarter totaled 1,811,939 square feet, all with terms of at least six months. This healthy leasing activity consisted of both renewal and new leases, with 1,610,786 square feet associated with renewals and 201,153 square feet of new leases. PLYM anticipates an 18.8% increase in rental rates on a cash basis from these leases, contributing to its strong performance.
As of Jun 30, 2024, the company's portfolio occupancy stood at an impressive 97.0%, reflecting recent new developments now in service. Furthermore, same-store occupancy as of the same date was 98.2%, demonstrating Plymouth's proficiency in tenant retention and property management.
Executed leases scheduled to commence during 2024, inclusive of activity through the second quarter, aggregated to 4,654,825 square feet. All of these leases are associated with a period of at least six months.
Representing 63.3% of total 2024 expirations, these leases comprised 3,588,209 square feet of renewal leases and 1,066,616 square feet of new leases, of which 137,090 square feet remained unoccupied at the beginning of 2024. The rental rates from these leases will increase by 15.7% for the company on a cash basis, illustrating management's proactive approach to securing future revenue streams.
Plymouth's development initiatives are equally noteworthy. The final project in the first stage of its development program, a fully leased 52,920-square-foot building in Jacksonville, is anticipated to be operational in the fourth quarter of this year.
For its 154,692-square-foot industrial building in Cincinnati, Plymouth has reached an agreement with a prospective tenant for the remaining 53,352 square feet. Once the lease is executed, the company's development program will be fully leased.
PLYM's upcoming second-quarter earnings release on Jul 31, 2024, after market close, and a conference call on Aug 1 is an event that investors should keep an eye on for further insights into its financial performance and strategic outlook.
Shares of Plymouth, currently carrying a Zacks Rank #3 (Hold), have risen 3.1% in the past month compared with the industry’s increase of 1.7%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Americold Realty Trust, Inc. COLD and Innovative Industrial Properties, Inc. IIPR, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Americold’s 2024 FFO per share is pegged at $1.44, which suggests 13.4% year-over-year growth.
The Zacks Consensus Estimate for Innovative Industrial Properties’ 2024 FFO per share of $9.13 indicates a marginal increase year over year.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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