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Plymouth Industrial Secures Lease in St. Louis, Sees Rent Growth
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Plymouth Industrial REIT, Inc. (PLYM - Free Report) has executed a two-year lease agreement at its 769,500-square-feet Class A industrial building in St. Louis with a major international manufacturing, engineering and logistics service provider. The lease encompasses 600,000 square feet for the first year and 450,000 in the second year.
With the lease being executed at rates higher than recent deals in the market, PLYM’s better negotiating abilities are highlighted. It also reflects the tenant’s confidence in its high-quality assets.
Plymouth’s Leasing and Portfolio Performance
Per the REIT’s recent quarterly update, leasing activity during the fourth quarter totaled 1,467,245 square feet, comprising 1,042,732 square feet of renewal leases and 424,513 square feet of new leases. Rental rates soared, with a 19.5% increase on a cash basis, showcasing the strength of Plymouth’s portfolio and tenant demand. New leases achieved a staggering 33% increase in rental rates, while renewals grew by 12.4%.
For 2024, Plymouth executed leases totaling 5.8 million square feet, representing 71.4% of 2024 expiring leases. Cash rental rates increased 17.3%, driven by a 28.2% rise in new leases. These results underline Plymouth’s ability to capture higher rents. While same-store occupancy came in at 95.7% as of Dec. 31, 2024, total portfolio occupancy was 92.5% by year end and reflected a 110-basis-point (bps) negative impact from prior disclosed tenancy issues in Cleveland.
Final Thoughts on PLYM Stock
With its healthy leasing activity, Plymouth is well positioned to benefit over the long term. However, broader market concerns and the elevated supply of industrial real estate are key concerns.
Shares of Plymouth, currently carrying a Zacks Rank #4 (Sell), have plunged 19.6% in the past three months compared with the industry’s decline of 8.7%. Analysts too seem bearish on this stock, with its 2024 funds from operations (FFO) per share being lowered over the past week marginally to $1.83.
Image: Bigstock
Plymouth Industrial Secures Lease in St. Louis, Sees Rent Growth
Plymouth Industrial REIT, Inc. (PLYM - Free Report) has executed a two-year lease agreement at its 769,500-square-feet Class A industrial building in St. Louis with a major international manufacturing, engineering and logistics service provider. The lease encompasses 600,000 square feet for the first year and 450,000 in the second year.
With the lease being executed at rates higher than recent deals in the market, PLYM’s better negotiating abilities are highlighted. It also reflects the tenant’s confidence in its high-quality assets.
Plymouth’s Leasing and Portfolio Performance
Per the REIT’s recent quarterly update, leasing activity during the fourth quarter totaled 1,467,245 square feet, comprising 1,042,732 square feet of renewal leases and 424,513 square feet of new leases. Rental rates soared, with a 19.5% increase on a cash basis, showcasing the strength of Plymouth’s portfolio and tenant demand. New leases achieved a staggering 33% increase in rental rates, while renewals grew by 12.4%.
For 2024, Plymouth executed leases totaling 5.8 million square feet, representing 71.4% of 2024 expiring leases. Cash rental rates increased 17.3%, driven by a 28.2% rise in new leases. These results underline Plymouth’s ability to capture higher rents. While same-store occupancy came in at 95.7% as of Dec. 31, 2024, total portfolio occupancy was 92.5% by year end and reflected a 110-basis-point (bps) negative impact from prior disclosed tenancy issues in Cleveland.
Final Thoughts on PLYM Stock
With its healthy leasing activity, Plymouth is well positioned to benefit over the long term. However, broader market concerns and the elevated supply of industrial real estate are key concerns.
Shares of Plymouth, currently carrying a Zacks Rank #4 (Sell), have plunged 19.6% in the past three months compared with the industry’s decline of 8.7%. Analysts too seem bearish on this stock, with its 2024 funds from operations (FFO) per share being lowered over the past week marginally to $1.83.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are SL Green Realty (SLG - Free Report) and Welltower (WELL - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Welltower’s 2025 FFO per share stands at $4.79, indicative of growth of 11.3% year over year.
The Zacks Consensus Estimate for SL Green’s 2025 FFO per share is pegged at $5.51, suggestive of 9.5% growth year over year.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.