Plymouth Industrial REIT (PLYM) Financials

Plymouth Industrial REIT (NYSE: PLYM) has demonstrated a mixed financial performance over the last several years through Q1 2025, with key developments noted in its income statements, cash flow, and balance sheets.

Positive Financial Highlights:

• Plymouth Industrial REIT reported positive net income in recent quarters, most notably a consolidated net income of $7.01 million in Q1 2025 after experiencing losses in prior quarters including Q3 2024 and Q1 2023.
• The company shows strong non-interest income, particularly "Other Non-Interest Income," which was $45.87 million in Q1 2025, consistent with strong revenue streams independent of interest income.
• Net cash from continuing operating activities has been positive and substantial, with $15.6 million in Q1 2025 and consistently positive operating cash flows over prior quarters indicating operational cash generation.
• Issuance of debt has been used strategically to support operations and investments, with $64.5 million issued in Q1 2025, providing liquidity for continued growth or refinancing.
• Total assets remain sizable and stable, around $1.4 billion in Q1 2025, supported by substantial premises and equipment net value ($1.2 billion), reflecting solid asset backing.
• Total common equity improved to $571 million as of Q1 2025, indicating an increase in shareholder value compared to previous periods (e.g., $436 million in Q3 2024), suggesting strengthening equity base.

Neutral Financial Observations:

• The company consistently reports no total interest income or expense, which reflects a business model not reliant on interest income or payments, typical for a real estate investment trust.
• Cash and equivalents remain relatively steady in the $16-$23 million range in recent quarters, and restricted cash also fluctuates but remains well supported, indicating reasonable liquidity management.
• Depreciation expense remains significant (around $19-$24 million quarterly), consistent with asset-heavy real estate operations and is a non-cash charge that impacts earnings but not cash.
• Weighted average shares outstanding are stable around 45 million shares, suggesting limited dilution recently.

Negative Financial Factors and Risks:

• Several quarters, including much of 2023 and 2024, saw negative net income attributable to common shareholders, with the largest losses seen in Q3 2024 (-$15.7 million) and similar losses in early 2023, indicating volatility and profitability challenges.
• Non-operating income/expense shows significant quarterly volatility with notable large losses in Q3 2024 (-$25 million) and net non-operating loss of $681,000 in Q1 2025, which impacts overall profitability.
• There is a substantial level of debt on the balance sheet, with short-term debt of $84.5 million and long-term debt of $623.2 million at Q1 2025, which generates high interest payments ($6.13 million paid in Q1 2025) and could pressure financial flexibility.
• The company paid significant dividends consistently (approx. $11.6 million in Q1 2025), which while positive for investors, could constrain internal capital availability for debt repayment or investment.
• Net realized and unrealized capital gains have been volatile, swinging between gains (e.g., $8 million in Q1 2024) and large losses (e.g., -$8.9 million in Q4 2024), which adds to earnings volatility and uncertainty.

Summary: Plymouth Industrial REIT has shown a recovery in profitability in the newest quarter after several challenging quarters of losses, supported by strong non-interest income streams and positive operating cash flow. However, earnings remain volatile due to fluctuating capital gains and non-operating expenses, alongside a heavy debt load and sizeable dividend commitments. Investors should weigh the company's asset base and operating cash generation against its debt obligations and income variability when considering the stock.