Plymouth Industrial REIT In Investment Deal With Sixth Street; Confirms FY24 Core FFO View

(RTTNews) - Plymouth Industrial REIT, Inc. (PLYM), a full service, vertically integrated real estate investment company, announced Tuesday a strategic agreement with investment firm Sixth Street, providing around $500 million of capital to pursue acquisitions.

Further, Plymouth affirmed its previously issued fiscal 2024 Core FFO guidance range of $1.88 to $1.90 per share.

Under the deal, Plymouth will get $250 million investment from Sixth Street to fund additional growth on a leverage-neutral basis without exclusive reliance on the public equity markets.

Sixth Street intends to be a strategic partner in pursuing additional joint venture opportunities with Plymouth in both new and existing industrial markets. Sixth Street will provide a total of $250 million of capital in the form of a $116 million, or 65 percent joint venture ownership of Plymouth's Chicago portfolio; as well as a $140 million of non-convertible preferred equity investment into the Operating Partnership.

Plymouth said it will contribute its Chicago-area properties to the joint venture with Sixth Street at a 6.2 percent capitalization rate for a total gross asset value of around $356 million. It will retain 35 percent ownership of the around 5.9 million-square-foot portfolio.

The joint venture will generate around $294 million of gross proceeds to Plymouth, which results in around $212 million of deployable proceeds after the mortgage assumption, transaction costs and capital expenditure escrows.

The deal is leverage-neutral with overall leverage expected to decline sequentially in the fourth quarter after closing of the joint venture and remain in line with Plymouth's stated leverage targets for 2024.

Jeff Witherell, Co-Founder, Chairman and Chief Executive Officer of Plymouth, said, "By teaming up with Sixth Street, we are able to access a significant amount of capital to fuel accretive growth while keeping us within our stated leverage boundaries for 2024. With this investment, we are well positioned for the balance of 2024 and 2025 as we face an evolving market with increasingly interesting opportunities."