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Plymouth Upsizes and Prices Equity Offering of 7.5M Shares
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Plymouth Industrial REIT, Inc. (PLYM - Free Report) upsized and priced a public offering of 7,500,000 shares of its common stock. Further, as part of the offering, the company will give underwriters a 30-day option to purchase up to an additional 1,125,000 shares.
The shares are priced at $12.85 per share. The offering, subject to the fulfillment of customary closing conditions, is expected to close on Aug 21.
Plymouth previously offered 5,750,000 shares, which was subsequently increased by 1,750,000 shares. Net proceeds of the offering, after deducting underwriting commissions and offering expenses, are expected to be $91.1 million.
The company expects to utilize the net proceeds from the offering to fund buyouts, including specific industrial properties under contract, working capital needs and other general purposes, which include the repayment of outstanding debt under its revolving credit facility.
Notably, the industrial asset category showed resilience during the June-end quarter amid the coronavirus crisis on low vacancy rates, high-asking rents, positive net absorptions and robust rent collections. There has been a notable increase in e-commerce’s share of total retail sales, spurring demand for warehouses and distribution spaces.
Hence, the acquisitions will position Plymouth to benefit from the growing demand for industrial real estate. In fact, as of the second-quarter end, the company’s real estate investments comprised of 125 industrial properties, spanning 20 million square feet of space. As of the same date, the properties were 95.1% occupied.
Further, its rent collection has been healthy as it collected around 94% and 96% of the rent for the second quarter and July, respectively.
While resorting to equity issuance will provide the company with additional capital to pursue strategic endeavors, the earnings dilution (on a per-share basis) cannot be avoided.
Moreover, shares of this Zacks Rank #3 (Hold) company have lost 26.1% over the past year, wider than the industry’s decline of 7.6%.
Terreno Realty Corporation’s (TRNO - Free Report) FFO per share estimates for 2020 have been revised marginally upward to $1.43 over the past month. It currently carries a Zacks Rank of 2.
Duke Realty Corporation’s Zacks Consensus Estimate for 2020 FFO per share has revised marginally upward to $1.49 over the past week. The company currently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Plymouth Upsizes and Prices Equity Offering of 7.5M Shares
Plymouth Industrial REIT, Inc. (PLYM - Free Report) upsized and priced a public offering of 7,500,000 shares of its common stock. Further, as part of the offering, the company will give underwriters a 30-day option to purchase up to an additional 1,125,000 shares.
The shares are priced at $12.85 per share. The offering, subject to the fulfillment of customary closing conditions, is expected to close on Aug 21.
Plymouth previously offered 5,750,000 shares, which was subsequently increased by 1,750,000 shares. Net proceeds of the offering, after deducting underwriting commissions and offering expenses, are expected to be $91.1 million.
The company expects to utilize the net proceeds from the offering to fund buyouts, including specific industrial properties under contract, working capital needs and other general purposes, which include the repayment of outstanding debt under its revolving credit facility.
Notably, the industrial asset category showed resilience during the June-end quarter amid the coronavirus crisis on low vacancy rates, high-asking rents, positive net absorptions and robust rent collections. There has been a notable increase in e-commerce’s share of total retail sales, spurring demand for warehouses and distribution spaces.
Hence, the acquisitions will position Plymouth to benefit from the growing demand for industrial real estate. In fact, as of the second-quarter end, the company’s real estate investments comprised of 125 industrial properties, spanning 20 million square feet of space. As of the same date, the properties were 95.1% occupied.
Further, its rent collection has been healthy as it collected around 94% and 96% of the rent for the second quarter and July, respectively.
While resorting to equity issuance will provide the company with additional capital to pursue strategic endeavors, the earnings dilution (on a per-share basis) cannot be avoided.
Moreover, shares of this Zacks Rank #3 (Hold) company have lost 26.1% over the past year, wider than the industry’s decline of 7.6%.
Stocks to Consider
City Office REIT, Inc.’s (CIO - Free Report) FFO per share estimates for the ongoing year have been marginally revised upward to $1.14 over the past week. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Terreno Realty Corporation’s (TRNO - Free Report) FFO per share estimates for 2020 have been revised marginally upward to $1.43 over the past month. It currently carries a Zacks Rank of 2.
Duke Realty Corporation’s Zacks Consensus Estimate for 2020 FFO per share has revised marginally upward to $1.49 over the past week. The company currently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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