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Plymouth (PLYM) Drives Growth With Solid Leasing Activity in Q2
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Plymouth Industrial REIT (PLYM - Free Report) continues to demonstrate its strength in the industrial real estate sector with solid leasing activity in the second quarter. With an experienced management team and a solid balance sheet, Plymouth is well-positioned to capitalize on the growing demand for industrial real estate space.
In the second quarter of 2023, Plymouth reported impressive leasing results. Leases commencing during the quarter totaled 2,103,095 square feet, all with terms of at least six months. These leases encompassed 1,440,165 square feet of renewals and 662,930 square feet of new leases. PLYM anticipates a substantial 19.3% increase in rental rates on a cash basis from these leases, contributing to its strong performance.
Furthermore, executed leases scheduled to commence throughout 2023, including the second quarter activity, account for an impressive 4,719,317 square feet. These leases are projected to generate a substantial 19.9% increase in rental rates on a cash basis. Within this figure, renewal leases amount to 3,340,955 square feet, while new leases make up 1,078,362 square feet. Plymouth has already successfully leased 1,623,791 square feet of space, which will commence in 2024 with a 14.5% rise in rental rates on a cash basis, indicating its positive growth trajectory.
Plymouth's ongoing development program underscores its commitment to expanding its portfolio and meeting the growing demand for industrial real estate. With three projects totaling 260,322 square feet, PLYM is making progress. In Jacksonville, FL, two fully leased industrial buildings, totaling 80,322 square feet, are expected to be completed in the third and fourth quarters of 2023. Additionally, in Atlanta, a 180,000-square-foot industrial building is estimated to be completed in the third quarter of 2023, with active leasing efforts currently underway. Moreover, Plymouth recently promoted three individuals to key positions within its senior management team.
Amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies, the demand for industrial real estate space has been shooting up.
Apart from the fast adoption of e-commerce, the industrial real estate space is poised to gain traction over the long run from a likely rise in the inventory levels of companies as a precaution for any supply-chain disruption. This will offer opportunities to industrial landlords, including Plymouth, Rexford Industrial Realty (REXR - Free Report) and EastGroup Properties (EGP - Free Report) , to enjoy a favorable market environment.
Plymouth, with its strong leasing activity and strategically planned development program, is well-positioned to benefit from these market trends. The company's impressive leasing results, including strong renewal rates and new leases, highlight its ability to attract and retain tenants. The anticipated rental rate increases demonstrate the financial growth potential for PLYM. Additionally, the ongoing development projects contribute to portfolio expansion and provide avenues for future revenue generation.
Shares of Plymouth, currently carrying a Zacks Rank #3 (Hold), have risen 10.8% in the past three months against the industry’s decline of 0.9%.
Image Source: Zacks Investment Research
Rexford Industrial Realty carries a Zacks Rank of 2 (Buy) at present. Rexford Industrial Realty’s long-term growth rate is projected at 10.6%. The Zacks Consensus Estimate for REXR’s 2023 funds from operations (FFO) per share of $2.19 suggests an 11.7% year-over-year increase. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EastGroup Properties has a Zacks Rank of 2. The Zacks Consensus Estimate for EastGroup Properties’ current-year FFO per share has moved marginally north over the past two months to $7.56.
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.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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Plymouth (PLYM) Drives Growth With Solid Leasing Activity in Q2
Plymouth Industrial REIT (PLYM - Free Report) continues to demonstrate its strength in the industrial real estate sector with solid leasing activity in the second quarter. With an experienced management team and a solid balance sheet, Plymouth is well-positioned to capitalize on the growing demand for industrial real estate space.
In the second quarter of 2023, Plymouth reported impressive leasing results. Leases commencing during the quarter totaled 2,103,095 square feet, all with terms of at least six months. These leases encompassed 1,440,165 square feet of renewals and 662,930 square feet of new leases. PLYM anticipates a substantial 19.3% increase in rental rates on a cash basis from these leases, contributing to its strong performance.
Furthermore, executed leases scheduled to commence throughout 2023, including the second quarter activity, account for an impressive 4,719,317 square feet. These leases are projected to generate a substantial 19.9% increase in rental rates on a cash basis. Within this figure, renewal leases amount to 3,340,955 square feet, while new leases make up 1,078,362 square feet. Plymouth has already successfully leased 1,623,791 square feet of space, which will commence in 2024 with a 14.5% rise in rental rates on a cash basis, indicating its positive growth trajectory.
Plymouth's ongoing development program underscores its commitment to expanding its portfolio and meeting the growing demand for industrial real estate. With three projects totaling 260,322 square feet, PLYM is making progress. In Jacksonville, FL, two fully leased industrial buildings, totaling 80,322 square feet, are expected to be completed in the third and fourth quarters of 2023. Additionally, in Atlanta, a 180,000-square-foot industrial building is estimated to be completed in the third quarter of 2023, with active leasing efforts currently underway. Moreover, Plymouth recently promoted three individuals to key positions within its senior management team.
Amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies, the demand for industrial real estate space has been shooting up.
Apart from the fast adoption of e-commerce, the industrial real estate space is poised to gain traction over the long run from a likely rise in the inventory levels of companies as a precaution for any supply-chain disruption. This will offer opportunities to industrial landlords, including Plymouth, Rexford Industrial Realty (REXR - Free Report) and EastGroup Properties (EGP - Free Report) , to enjoy a favorable market environment.
Plymouth, with its strong leasing activity and strategically planned development program, is well-positioned to benefit from these market trends. The company's impressive leasing results, including strong renewal rates and new leases, highlight its ability to attract and retain tenants. The anticipated rental rate increases demonstrate the financial growth potential for PLYM. Additionally, the ongoing development projects contribute to portfolio expansion and provide avenues for future revenue generation.
Shares of Plymouth, currently carrying a Zacks Rank #3 (Hold), have risen 10.8% in the past three months against the industry’s decline of 0.9%.
Image Source: Zacks Investment Research
Rexford Industrial Realty carries a Zacks Rank of 2 (Buy) at present. Rexford Industrial Realty’s long-term growth rate is projected at 10.6%. The Zacks Consensus Estimate for REXR’s 2023 funds from operations (FFO) per share of $2.19 suggests an 11.7% year-over-year increase. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EastGroup Properties has a Zacks Rank of 2. The Zacks Consensus Estimate for EastGroup Properties’ current-year FFO per share has moved marginally north over the past two months to $7.56.
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.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.