Breaking Down Plymouth Industrial REIT, Inc. (PLYM) Financial Health: Key Insights for Investors

You're looking at Plymouth Industrial REIT, Inc. (PLYM) right now and wondering if the industrial real estate momentum is still strong enough to justify the price, especially after a mixed Q3 report; the short answer is that the underlying property performance remains solid, but financing costs are a defintely headwind. We need to look past the headline net loss of ($1.23) per share in Q3 2025 and focus on the operational metrics, which tell a story of continued demand. For the full fiscal year 2025, management has affirmed Core Funds From Operations (FFO) guidance in the range of $1.85 to $1.89 per share, which is the true measure of a REIT's cash flow health, and the portfolio's total occupancy held strong at 94.6% as of mid-year. The real opportunity lies in the leasing spreads: new and renewal leases commencing this year are expected to deliver a 13.6% cash rental rate increase, showing the pricing power of their Class B industrial assets is still very much intact, even as the company navigated a wider net loss due to a non-cash loss on a financing transaction.

Revenue Analysis

You need to know where the money is coming from to truly understand Plymouth Industrial REIT, Inc. (PLYM), especially with the pending acquisition. The direct takeaway here is simple: PLYM's revenue is nearly all rental revenue from its industrial properties, and the top-line number is contracting slightly in 2025, mainly due to strategic portfolio moves, not a collapse in demand.

As a Real Estate Investment Trust (REIT), PLYM's business model is straightforward. Its primary revenue source is the rent collected from tenants occupying its single and multi-tenant industrial properties-warehouses, distribution centers, and light industrial spaces-all within the United States. They manage their activities as a single operating segment: Industrial Properties. This means the contribution of other business segments to overall revenue is essentially zero; it's a pure-play industrial landlord.

Here's the quick math on the near-term trend. For the nine months ended September 30, 2025, Plymouth Industrial REIT, Inc. reported total rental revenue of $143.5 million. To be fair, this is a distinct drop from the $150.3 million reported for the same nine-month period in the prior year, representing a 4.5% decrease year-over-year. You're seeing a similar trend for the third quarter of 2025, where rental revenue was $51.1 million, a slight dip from $51.4 million in Q3 2024.

The contraction in the top line is the most significant change in the revenue stream for 2025, but it's not necessarily a red flag for the underlying assets. The company attributes this revenue decrease partly to property sales and contributions to joint ventures (JVs). These are strategic portfolio adjustments, not a failure to collect rent, which is a key distinction. In fact, their weighted-average new lease rent was up by 12.3% in 2025, showing strong pricing power on new deals. The underlying demand for their Class B industrial space in markets like Ohio, Indiana, and Florida remains solid. You can find a deeper dive into the company's financial health in Breaking Down Plymouth Industrial REIT, Inc. (PLYM) Financial Health: Key Insights for Investors.

The revenue structure is simple, but the near-term trajectory is complex. Here's the breakdown:

• Primary Source: Rental Revenue from industrial leases.
• Segment Contribution: 100% from the Industrial Properties segment.
• YOY Trend (9M 2025): Rental revenue decreased by 4.5%.
• Key Driver: Revenue decline is linked to asset dispositions and JV contributions.

The other major factor is the pending acquisition by Makarora for $23.50 per share in cash, announced in October 2025. This merger fundamentally changes the investment thesis from long-term growth to a near-term arbitrage play, making the annual revenue figure less critical than the deal closing probability. Still, the revenue stability-even with the slight dip-is what helped set the floor for that acquisition price.

Profitability Metrics

You want to know if Plymouth Industrial REIT, Inc. (PLYM) is actually making money from its core business, and the simple answer is: the headline net profit is misleadingly high, but the operating performance is tight. The key is to look past the one-time sales gains and focus on the operational efficiency, which is where the real risk lies for a REIT.

For the Trailing Twelve Months (TTM) ending around mid-2025, Plymouth Industrial REIT, Inc. reported a Gross Margin of 65.10%. This is a solid figure for a real estate investment trust (REIT), as it reflects the efficiency of converting rental revenue into profit before administrative costs, interest, and depreciation. This margin shows strong property-level profitability, which is a good sign of their ability to manage property expenses.

Here's the quick math on the core profitability ratios based on TTM data ending mid-2025 (amounts in millions USD):

The stark difference between the Gross Margin (65.10%) and the Operating Margin (8.23%) tells a story about operational efficiency. That 56.87 percentage point drop is largely driven by selling, general, and administrative (SG&A) expenses and significant depreciation and amortization, which totaled $97.7 million (TTM Jun '25). This low Operating Margin is a red flag on cost management outside of property-level operations. It shows overhead is eating up most of the gross profit.

Now, let's talk about that Net Profit Margin of 75.7%. Honestly, that number is a mirage. It is inflated by a massive, non-core Gain on Sale of Assets of $136.82 million reported in the TTM period. This is an excellent capital recycling move, but it has nothing to do with the day-to-day profitability of their rental portfolio. You can't count on asset sales every year to prop up your bottom line. Look at the Q3 2025 results: total revenues were $51.16 million, but the net loss was $52.5 million, driven by financing and merger-related expenses.

When you compare this to the Industrial REIT sector, the low Operating Margin for Plymouth Industrial REIT, Inc. stands out. While the sector is seeing solid fundamentals-with Industrial REITs posting an 8.0% growth in Funds From Operations (FFO) in Q3 2025-PLYM's core operational profitability before financing costs is quite thin at 8.23% of revenue. The low margin suggests they have less cushion to absorb rising interest rates or unexpected property expenses compared to peers. This is a crucial point for investors seeking stable income.

• Gross Margin is strong at 65.10%.
• Operating Margin is thin at 8.23%.
• Net Profit is distorted by a $136.82 million asset sale gain.
• Operational efficiency needs defintely improvement to sustain growth.

For a deeper analysis of the risks and opportunities, including the impact of the recent acquisition agreement, check out the full post: Breaking Down Plymouth Industrial REIT, Inc. (PLYM) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

You need to know how Plymouth Industrial REIT, Inc. (PLYM) is funding its growth, especially in a higher interest rate environment. The short answer is they lean on debt more than the average industrial REIT, but they are actively balancing this with equity raises and maintaining covenant compliance. Their Debt-to-Equity (D/E) ratio sits at about 1.36, which is notably higher than the Industrial REIT sector average of 0.98 as of late 2025.

This higher ratio means Plymouth Industrial REIT, Inc. is using more debt to finance its assets and expansion, a common strategy for REITs (Real Estate Investment Trusts) to boost shareholder returns, but it also increases financial risk. To be fair, REITs are capital-intensive, so they defintely need a lot of financing. You want to see that leverage managed carefully, and Plymouth Industrial REIT, Inc. has been compliant with all its debt covenants as of September 30, 2025.

Overview of Debt and Leverage

Plymouth Industrial REIT, Inc.'s capital structure reflects a mix of secured and unsecured borrowings. As of the third quarter of 2025, the company's unsecured term loans, which represent a significant portion of their long-term debt, stood at $450.0 million. Their short-term debt, primarily borrowings under the unsecured line of credit, was approximately $221.9 million. Here's the quick math on their Q2 2025 balance sheet components, which showed total debt at roughly $836.787 million against a total equity of $545.458 million.

The company uses this debt to fuel its acquisition strategy, recently utilizing its unsecured line of credit to fund new property purchases. However, this leverage comes with costs; the company reported a significant loss on a financing transaction of $41.4 million in the third quarter of 2025, which widened its net loss. This highlights the sensitivity of their earnings to financing market conditions.

• Long-term debt (Unsecured Term Loans): $450.0 million (Q3 2025).
• Short-term debt (Line of Credit): $221.9 million (Q3 2025).
• Debt-to-Equity Ratio: 1.36, compared to the Industrial REIT average of 0.98.

Balancing Debt and Equity Funding

The company's strategy involves a constant balancing act between debt and equity. While debt is a cheaper source of capital, equity provides a buffer against market volatility. In the near-term, Plymouth Industrial REIT, Inc. has been tapping into equity markets, raising $79.0 million via Series C Preferred Units during the nine months ended September 30, 2025. This preferred equity is a hybrid instrument that offers a fixed dividend, helping to fund growth without immediately increasing the common stock float or adding to traditional debt load.

What this estimate hides is the potential for future common stock issuance, which could dilute existing shareholders, or the need for refinancing their unsecured debt in a challenging rate environment. Their ability to manage debt maturities and cost of capital will be critical for sustaining their Mission Statement, Vision, & Core Values of Plymouth Industrial REIT, Inc. (PLYM).

Your action item here is to monitor their refinancing schedule and the interest rate on new debt. If the cost of debt continues to climb, that $41.4 million financing loss you saw in Q3 2025 could become a recurring problem. You need to see a clear path to reducing that Debt-to-EBITDA ratio over the next 12 months.

Liquidity and Solvency

You need to know how easily Plymouth Industrial REIT, Inc. (PLYM) can cover its near-term obligations, and the quick answer is that while their operating cash flow is solid, their balance sheet liquidity ratios signal a tight position, which is typical for an aggressive growth-focused REIT. This means they rely heavily on cash generated from operations and new financing, which is a higher-risk strategy.

As of the most recent reporting period in late 2025, Plymouth Industrial REIT, Inc. (PLYM)'s liquidity ratios are quite low. The Current Ratio is approximately 0.61, and the Quick Ratio sits around 0.28. A Current Ratio below 1.0 means that the company's current assets (what they can convert to cash in a year) are less than its current liabilities (what they owe in a year). For a capital-intensive Real Estate Investment Trust (REIT), this isn't always a red flag, but it defintely warrants attention.

Here's the quick math on their working capital: The company is running with a significant negative Net Current Asset Value (working capital) of roughly $-950.76 million on a trailing twelve-month (TTM) basis. This negative working capital trend is a direct result of their strategy to finance long-term real estate assets with a mix of equity and short-term debt, including borrowings under their unsecured line of credit, which stood at $221.9 million as of Q3 2025. This is a high-wire act; they are essentially using short-term funds to fuel long-term growth.

The cash flow statement for the nine months ended September 30, 2025, tells a more nuanced story, highlighting the firm's operational strength against its capital deployment. Operating cash flow (OCF) is the real engine for a REIT, and it remains a clear strength.

• Operating Cash Flow (OCF): Net cash provided by operating activities was strong at $59.0 million year-to-date (YTD) through Q3 2025. This OCF is the primary source of funds for dividends and debt service.
• Investing Cash Flow: The company deployed significant capital, acquiring 19 properties totaling 2.85 million square feet for $269.7 million YTD, which is a massive cash outflow, as expected for a growth REIT.
• Financing Cash Flow: This activity was robust, including raising $79.0 million via Series C Preferred Units, which helps fund the acquisitions and manage the debt structure. They also maintain $450.0 million in unsecured term loans.

The main liquidity concern is the low ratio coverage, but the primary strength is the consistent, positive, and growing $59.0 million in operating cash flow, plus the fact that management reported compliance with all debt covenants. The total cash and cash equivalents on the balance sheet as of September 30, 2025, was $41.97 million. This cash position is adequate for day-to-day operations but not a large buffer against unexpected capital calls or a sudden drop in rent collections. To understand the strategic foundation of these decisions, you can review their Mission Statement, Vision, & Core Values of Plymouth Industrial REIT, Inc. (PLYM).

What this estimate hides is the potential impact of one-time events: the Q3 2025 net loss widened to $52.5 million, driven by a $41.4 million loss on a financing transaction. While non-cash, this highlights the volatility that complex capital structure moves can introduce. Your action item is to monitor the Debt Service Coverage Ratio-which was 7.80 (TTM)-to ensure that operating cash flow continues to comfortably exceed interest and principal payments.

Valuation Analysis

You're looking at Plymouth Industrial REIT, Inc. (PLYM) and asking the right question: Is the market pricing this industrial player fairly? The short answer is that the valuation metrics suggest the stock is trading at a discount to its sector peers on an earnings basis, but analysts are signaling caution, placing it squarely in 'Hold' territory.

As of mid-November 2025, Plymouth Industrial REIT, Inc.'s stock price is hovering around the $22.31 mark. To get a real read on value, we need to look past the price tag and check the engine with a few key ratios. The company's trailing twelve-month (TTM) Price-to-Earnings (P/E) ratio sits at a compelling 7.71. Here's the quick math: that P/E is significantly lower-about 68% lower-than the Real Estate sector average of 24.21, suggesting the stock might be undervalued relative to its recent earnings. Still, the forward 2025 P/E estimate is higher at 11.87, which points to a potential normalization or lower expected earnings growth in the near term.

The Price-to-Book (P/B) ratio, which measures the market's value of a company relative to its book value, is around 1.85. For a REIT, this is a more critical measure than a typical operating company. Plus, the Enterprise Value-to-EBITDA (EV/EBITDA) ratio, which is a better measure of total company value including debt, is at 19.40. This figure is a bit stretched for an industrial REIT, especially when you consider the company's total enterprise value is roughly $1.83 billion against a market cap of about $1.00 billion, showing the significant role debt plays in its capital structure.

• P/E (TTM): 7.71 (Suggests undervaluation versus sector)
• P/B Ratio: 1.85 (Fairly priced for a REIT)
• EV/EBITDA: 19.40 (Indicates a higher valuation when factoring in debt)

Looking at the stock's movement, Plymouth Industrial REIT, Inc. has defintely had a good run. Over the last 12 months leading up to November 2025, the stock price has climbed by about 7.73%, with a year-to-date return of approximately 24.38%. It hit a 52-week high of $22.65 in August 2025 after trading as low as $12.70 in April 2025. That kind of volatility means you need to be realistic about near-term price stability. A 50% surge over the past three months shows strong momentum, but also raises the risk of a pullback.

For income investors, the dividend picture is stable. Plymouth Industrial REIT, Inc. pays an annual dividend of $0.96 per share, which translates to a yield of about 4.31% as of November 2025. The payout ratio, which is the percentage of earnings paid out as dividends, is a conservative 33.2% of earnings. This is a healthy number for a REIT and suggests the dividend is well-covered, giving the company room to reinvest in its portfolio or continue its modest dividend growth.

Wall Street analysts are not universally bullish, but they aren't ringing the alarm bells either. The consensus rating is a firm Hold. The average 12-month price target from analysts sits around $21.40 to $22.40. Since the stock is currently trading right at the high end of that range, you should be asking yourself if the market has already priced in the near-term upside. The highest target is $24.00, and the lowest is $17.00, so there is still a significant spread in professional opinion. If you want to dig deeper into who is buying and selling, check out Exploring Plymouth Industrial REIT, Inc. (PLYM) Investor Profile: Who's Buying and Why?

Here's a snapshot of the key valuation metrics you should be tracking:

Risk Factors

You need to look past the strong operational metrics and focus on the major strategic and financial risks right now. For Plymouth Industrial REIT, Inc. (PLYM), the single largest factor overshadowing everything else is the pending go-private transaction, which introduces a unique set of near-term financial and strategic uncertainties.

The company's latest filings confirm that the core risks from the 2024 Annual Report on Form 10-K still apply, but the proposed acquisition by Makarora and Ares Alternative Credit Funds is the new, dominant strategic risk. Honestly, this deal can either be a quick exit for shareholders or a source of significant cost if it unravels.

Strategic and Financial Headwinds

The most immediate and critical risk is the potential failure or delay of the proposed $2.1 billion privatization transaction. If the Merger Agreement is terminated-say, for a superior proposal or other reasons-Plymouth Industrial REIT, Inc. could incur significant additional costs, including legal and financial advisory fees already spent. This would be a major financial hit, plus it would leave the company with the distraction of a failed deal.

Looking at the Q3 2025 financial results, the company reported a substantial Net Loss of approximately $54.5 million, or $1.23 per share. This is a sharp contrast to the Funds from Operations (FFO) of $21.1 million, or $0.48 per share, for the same period. Here's the quick math: a big net loss in a single quarter, even if non-cash items contribute, highlights the financial volatility that REITs (Real Estate Investment Trusts) face, especially with rising interest expense, which totaled $60,868 in other income/expense for the recent filing.

• Failure of the $2.1 billion merger deal could trigger major financial penalties.
• High reliance on the unsecured line of credit for acquisitions poses a risk if credit markets tighten.
• The broader Real Estate Industry and the Broader Economy risks remain a constant external pressure.

Operational and External Market Risks

As an industrial REIT, Plymouth Industrial REIT, Inc. is exposed to the cyclical nature of the industrial real estate sector. While the company has shown strong operational performance-like the 10.0% increase in rental rates on a cash basis for leases commenced in Q2 2025-a significant economic downturn could quickly erode this advantage by reducing tenant demand and increasing vacancy. The total portfolio occupancy of 94.6% as of June 30, 2025, is solid, but even a small drop can impact Net Operating Income (NOI).

Also, don't forget the external, non-market risks like Environmental Matters. Under federal, state, and local laws, the company can be held responsible for the cleanup of contaminated properties, even if they did not cause or know about the contamination. That's an unpredictable, high-cost operational risk you can defintely not budget for easily.

Mitigation and Actionable Insights

The management team has been actively signaling confidence and managing capital. They have an active share repurchase program, having acquired and settled 1,031,223 shares through August 4, 2025, which helps support the stock price and returns value to shareholders. They are also executing their core strategy well, focusing on strategic acquisitions, like the 22 industrial buildings totaling 2.05 million square feet acquired in Q2 2025 for $204.7 million, with an expected initial Net Operating Income (NOI) yield of around 6.7% to 7.0%. This disciplined focus on high-yield properties is a key mitigation against broader market pressures.

To understand the foundation of their strategy, you should review their core principles: Mission Statement, Vision, & Core Values of Plymouth Industrial REIT, Inc. (PLYM).

Growth Opportunities

You need to know what drives the future value of Plymouth Industrial REIT, Inc. (PLYM), and the most critical near-term prospect isn't a new lease-it's the definitive merger agreement announced on October 24, 2025. The company is set to be acquired by Makarora Management LP and Ares Alternative Credit funds for $22.00 per share in an all-cash transaction, valuing the company at approximately $2.1 billion, including assumed debt. This deal, expected to close in early 2026, is the ultimate action for shareholders, turning future operational growth into an immediate, certain cash value.

Still, to understand the value Makarora saw, you must look at PLYM's operational momentum in 2025. The core growth driver has been their aggressive, disciplined acquisition strategy in secondary markets like the Midwest and Southeast. Here's the quick math: in the second quarter of 2025 alone, PLYM closed on 22 industrial buildings totaling 2.05 million square feet for $204.7 million. This strategy focuses on Class B industrial assets, which are typically older but offer higher initial yields and are acquired below replacement cost, positioning them as a more affordable option for cost-conscious tenants.

The leasing activity has been defintely strong, proving the demand for this asset class. For the full year 2025, the company has executed leases for 5.81 million square feet, representing 67.5% of total 2025 expirations, with a robust 13.0% cash rent spread. This indicates that rents on new and renewed leases are significantly higher than the expiring ones, a key driver of net operating income (NOI). Occupancy also remains high, rising to 94.3% in the first quarter of 2025, with management expecting it to reach approximately 97% by year-end.

Looking at the company's financial trajectory right before the acquisition announcement, analysts projected full-year 2025 revenue to land around $196.85 million, reflecting an average growth rate of 1.9%. While the third quarter 2025 revenue came in at $51.16 million, beating consensus, the GAAP Earnings Per Share (EPS) for the full year was projected to be a loss of -$0.16. The focus is really on Core Funds From Operations (FFO) for a REIT, which was $0.46 per share for Q2 2025.

The competitive advantage for Plymouth Industrial REIT, Inc. has always been its niche focus. They target bulk distribution warehouses and light manufacturing facilities in established markets, owning assets within a day's drive of 70% of the U.S. population. This geographic diversification across the Midwest and East Coast, combined with the UPREIT (Umbrella Partnership Real Estate Investment Trust) structure that helps with tax-efficient property acquisitions, made them an attractive target. The pending acquisition, however, crystallizes all that embedded value for public shareholders now. You can dive deeper into the operational details in the full analysis: Breaking Down Plymouth Industrial REIT, Inc. (PLYM) Financial Health: Key Insights for Investors.

• Acquisitions: 22 buildings for $204.7 million in Q2 2025.
• Leasing: 13.0% cash rent spread on 2025 expirations.
• 2025 Revenue Estimate: $196.85 million.
• Final Prospect: $2.1 billion acquisition by Makarora.

What this estimate hides is the immediate shift from long-term growth planning to a short-term, all-cash payout. The company's future growth is now tied to the successful closure of the $2.1 billion deal in early 2026.