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Plymouth (PLYM) Drives Growth With Solid Leasing Activity in Q3
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Plymouth Industrial REIT (PLYM - Free Report) continues to showcase its resilience and growth potential in the industrial real estate market, as evidenced by its leasing and development activity in the third quarter of 2023. With a commitment to providing cost-effective, functional, flexible and safe industrial spaces, Plymouth Industrial REIT has not only maintained high occupancy rates but also embarked on a strategic path toward sustained profitability.
Leases commencing during the third quarter totaled 1,761,715 square feet, all with terms of at least six months. This healthy leasing activity consisted of both renewal and new leases, with 1,194,817 square feet associated with renewals and 566,898 square feet of new leases. PLYM anticipates a 24.2% increase in rental rates on a cash basis from these leases, contributing to its strong performance.
As of Sep 30, 2023, the company's portfolio occupancy stood at an impressive 97.6%, reflecting recent new developments now in service. Furthermore, same-store occupancy as of the same date was 98.7%, demonstrating Plymouth's proficiency in tenant retention and property management.
The total square footage of executed leases set to begin in 2023, encompassing leases commencing within the first three quarters but excluding those related to new construction, amounts to 5,396,550 square feet, all of which have durations of at least six months. PLYM will experience a 20.5% increase in rental rates on a cash basis from these leases. Consequently, 7% of 2023 expirations need to be addressed.
The company has already executed leases covering 32% of its total 2024 expirations, with a 13.5% increase in rental rates on a cash basis, illustrating the management's proactive approach to securing future revenue streams.
Plymouth's development initiatives are equally noteworthy. In the third quarter, PLYM successfully delivered a 180,000-square-foot industrial building in Atlanta, securing a five-year, 72,000-square-foot lease set to commence in September.
In Jacksonville, the company delivered a fully leased 40,572-square-foot industrial building with an eight-year lease, and a second Jacksonville building, totaling 39,750 square feet and fully leased with a five-year term, is slated to come online in the fourth quarter. Additionally, a third 52,920-square-foot, fully leased building in Jacksonville is expected to be operational in mid-2024, boasting a 10-year lease.
Furthermore, the company inked a 10-year, 47,000-square-foot lease for its 147,000-square-foot industrial building in Cincinnati, commencing in September. These developments signify Plymouth Industrial REIT's commitment to expanding its footprint and providing high-quality spaces tailored to the evolving needs of its tenants.
The company's upcoming third-quarter earnings release on Nov 2, 2023, before market open, and a conference call later that day, is an event investors should keep an eye on for further insights into its financial performance and strategic outlook.
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, Prologis (PLD - 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 of PLYM. Additionally, 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 8.7% year to date against the industry’s decline of 12.5%.
Image Source: Zacks Investment Research
Prologis carries a Zacks Rank of 3 at present. PLD’s long-term growth rate is projected at 9%. The Zacks Consensus Estimate for the company’s 2023 funds from operations (FFO) per share of $5.59 suggests an 8.3% 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 (Buy). The Zacks Consensus Estimate for EastGroup Properties’ current-year FFO per share has moved marginally north over the past week to $7.64.
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 Q3
Plymouth Industrial REIT (PLYM - Free Report) continues to showcase its resilience and growth potential in the industrial real estate market, as evidenced by its leasing and development activity in the third quarter of 2023. With a commitment to providing cost-effective, functional, flexible and safe industrial spaces, Plymouth Industrial REIT has not only maintained high occupancy rates but also embarked on a strategic path toward sustained profitability.
Leases commencing during the third quarter totaled 1,761,715 square feet, all with terms of at least six months. This healthy leasing activity consisted of both renewal and new leases, with 1,194,817 square feet associated with renewals and 566,898 square feet of new leases. PLYM anticipates a 24.2% increase in rental rates on a cash basis from these leases, contributing to its strong performance.
As of Sep 30, 2023, the company's portfolio occupancy stood at an impressive 97.6%, reflecting recent new developments now in service. Furthermore, same-store occupancy as of the same date was 98.7%, demonstrating Plymouth's proficiency in tenant retention and property management.
The total square footage of executed leases set to begin in 2023, encompassing leases commencing within the first three quarters but excluding those related to new construction, amounts to 5,396,550 square feet, all of which have durations of at least six months. PLYM will experience a 20.5% increase in rental rates on a cash basis from these leases. Consequently, 7% of 2023 expirations need to be addressed.
The company has already executed leases covering 32% of its total 2024 expirations, with a 13.5% increase in rental rates on a cash basis, illustrating the management's proactive approach to securing future revenue streams.
Plymouth's development initiatives are equally noteworthy. In the third quarter, PLYM successfully delivered a 180,000-square-foot industrial building in Atlanta, securing a five-year, 72,000-square-foot lease set to commence in September.
In Jacksonville, the company delivered a fully leased 40,572-square-foot industrial building with an eight-year lease, and a second Jacksonville building, totaling 39,750 square feet and fully leased with a five-year term, is slated to come online in the fourth quarter. Additionally, a third 52,920-square-foot, fully leased building in Jacksonville is expected to be operational in mid-2024, boasting a 10-year lease.
Furthermore, the company inked a 10-year, 47,000-square-foot lease for its 147,000-square-foot industrial building in Cincinnati, commencing in September. These developments signify Plymouth Industrial REIT's commitment to expanding its footprint and providing high-quality spaces tailored to the evolving needs of its tenants.
The company's upcoming third-quarter earnings release on Nov 2, 2023, before market open, and a conference call later that day, is an event investors should keep an eye on for further insights into its financial performance and strategic outlook.
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, Prologis (PLD - 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 of PLYM. Additionally, 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 8.7% year to date against the industry’s decline of 12.5%.
Image Source: Zacks Investment Research
Prologis carries a Zacks Rank of 3 at present. PLD’s long-term growth rate is projected at 9%. The Zacks Consensus Estimate for the company’s 2023 funds from operations (FFO) per share of $5.59 suggests an 8.3% 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 (Buy). The Zacks Consensus Estimate for EastGroup Properties’ current-year FFO per share has moved marginally north over the past week to $7.64.
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.