We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Plymouth (PLYM) Expands Scale in Ohio With Portfolio Buyout
Read MoreHide Full Article
Plymouth Industrial REIT, Inc. (PLYM - Free Report) recently shelled out $94 million for the acquisition of a portfolio of industrial buildings in Akron and Canton, OH. The move comes as part of the company’s effort to boost its presence in key industrial markets.
The portfolio, which aggregates 2.1 million square feet of space, comprises 10 industrial buildings. The buildings are 98% leased to 15 tenants, reflecting the solid demand for the properties. The tenant roster for this portfolio is well diversified, with tenants from a variety of industries, including transportation and logistics, healthcare, industrial manufacturing and food and beverage.The weighted average lease term of the portfolio is 3.5 years.
The move seems a strategic fit for the company, with the acquisition projected to provide an annual current yield of 7.5%. The acquisition brings Plymouth’s scale in the Cleveland metropolitan area to 3.6 million square feet as well as boosts the company’s Ohio portfolio to 7.5 million square feet. With the greater Cleveland region continuing to witness positive net absorption and low vacancy, this expansion offers scope to the company to bank upon.
The industrial asset class has grabbed the limelight for showing resilience amid the coronavirus pandemic with low vacancy rates, high asking rents and robust rent collections. There has been a notable increase in e-commerce’s share of total retail sales, spurring demand for warehouse and distribution spaces. Apart from the fast adoption of e-commerce, the industrial real estate space is anticipated to gain traction over the long run from a likely rise in the inventory levels of companies as a precaution for any supply-chain disruptions.
This, in turn, will likely keep supporting industrial landlords like Plymouth, Prologis (PLD - Free Report) , Duke Realty Corp. and Terreno Realty Corporation (TRNO - Free Report) to enjoy a favorable market environment.
Plymouth, in particular, has been banking on growth opportunities and the company has shelled out approximately $244 million for the acquisition of 5.5 million square feet of industrial properties so far this year. With ownership of 23.3 million square feet of industrial properties throughout the United States, the company is well poised to leverage on this asset categories’ growth potential.
However, the pandemic’s adverse impact on the economy might thwart demand for space to some extent in the near term. Rent relief and deferrals for tenants are likely to be concerns. Also, surplus supply is a concern for the industrial real estate market.
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Bigstock
Plymouth (PLYM) Expands Scale in Ohio With Portfolio Buyout
Plymouth Industrial REIT, Inc. (PLYM - Free Report) recently shelled out $94 million for the acquisition of a portfolio of industrial buildings in Akron and Canton, OH. The move comes as part of the company’s effort to boost its presence in key industrial markets.
The portfolio, which aggregates 2.1 million square feet of space, comprises 10 industrial buildings. The buildings are 98% leased to 15 tenants, reflecting the solid demand for the properties. The tenant roster for this portfolio is well diversified, with tenants from a variety of industries, including transportation and logistics, healthcare, industrial manufacturing and food and beverage.The weighted average lease term of the portfolio is 3.5 years.
The move seems a strategic fit for the company, with the acquisition projected to provide an annual current yield of 7.5%. The acquisition brings Plymouth’s scale in the Cleveland metropolitan area to 3.6 million square feet as well as boosts the company’s Ohio portfolio to 7.5 million square feet. With the greater Cleveland region continuing to witness positive net absorption and low vacancy, this expansion offers scope to the company to bank upon.
The industrial asset class has grabbed the limelight for showing resilience amid the coronavirus pandemic with low vacancy rates, high asking rents and robust rent collections. There has been a notable increase in e-commerce’s share of total retail sales, spurring demand for warehouse and distribution spaces. Apart from the fast adoption of e-commerce, the industrial real estate space is anticipated to gain traction over the long run from a likely rise in the inventory levels of companies as a precaution for any supply-chain disruptions.
This, in turn, will likely keep supporting industrial landlords like Plymouth, Prologis (PLD - Free Report) , Duke Realty Corp. and Terreno Realty Corporation (TRNO - Free Report) to enjoy a favorable market environment.
Plymouth, in particular, has been banking on growth opportunities and the company has shelled out approximately $244 million for the acquisition of 5.5 million square feet of industrial properties so far this year. With ownership of 23.3 million square feet of industrial properties throughout the United States, the company is well poised to leverage on this asset categories’ growth potential.
However, the pandemic’s adverse impact on the economy might thwart demand for space to some extent in the near term. Rent relief and deferrals for tenants are likely to be concerns. Also, surplus supply is a concern for the industrial real estate market.
Plymouth currently carries a Zacks Rank #3 (Hold). The company’s shares have declined 2.4%, as against the industry’s growth of 0.7% over the past three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>