Plymouth Industrial REIT Reports 9.3% Revenue Decline, Net Income Increases 11.5%

Plymouth Industrial REIT, Inc. reported a decrease in total revenues for the first quarter of 2025, generating $45.6 million compared to $50.2 million in the same period last year, marking a decline of approximately 9.3%. The company's rental revenue also fell to $45.4 million from $50.2 million, primarily due to a significant decrease in revenue from acquisitions and dispositions, which dropped by nearly 50%. However, the Same Store Portfolio saw a modest increase in rental income, attributed to improved leasing activities and tenant recoveries.

The company's operating expenses decreased to $38.2 million from $42.4 million, a reduction of 9.9%. This decline was driven by lower property expenses associated with the sale of multiple properties in 2024, although there was an increase in expenses within the Same Store Portfolio. Notably, general and administrative expenses rose by 22.6% to $4.1 million, reflecting higher compensation and professional fees. Despite these challenges, Plymouth Industrial REIT reported a net income of $7 million, an increase of 11.5% from $6.3 million in the prior year, largely due to reduced interest expenses and a gain on financing transactions.

In terms of strategic developments, Plymouth Industrial REIT made significant acquisitions during the quarter, investing approximately $65.7 million in new properties, which included a consolidation of a previously held interest in a joint venture. The company also sold a property in Memphis, TN, for $2.4 million, realizing a net gain of $301,000. As of March 31, 2025, the company owned 133 industrial properties totaling approximately 30 million square feet, with a portfolio occupancy rate of 94.3%.

The company’s financial position remains stable, with total assets increasing to $1.4 billion from $1.37 billion at the end of 2024. Total liabilities also rose to $827.3 million, up from $781.3 million, primarily due to increased borrowings under the line of credit. Plymouth Industrial REIT reported available liquidity of approximately $435.4 million, which includes cash and borrowing capacity, indicating a strong position to meet its obligations and pursue future growth opportunities.

Looking ahead, Plymouth Industrial REIT aims to continue its strategy of acquiring industrial properties in primary and secondary markets while exploring joint ventures to enhance its portfolio. The company anticipates that upcoming lease expirations will provide opportunities to increase rental rates, contributing to future revenue growth. However, it remains cautious of market conditions and potential economic impacts that could affect its operations and financial performance.