Plymouth Industrial REIT's Net Loss Widens Amid Financing Costs, JV Losses

TL;DR

**PLYM's massive net loss and ballooning line of credit borrowings are a red flag; steer clear until they can stabilize their financing and joint venture performance.**

AI Summary

Plymouth Industrial REIT, Inc. reported a significant net loss of $54.608 million for the nine months ended September 30, 2025, a substantial increase from the $8.069 million loss in the same period of 2024. This was primarily driven by a $22.681 million loss in investment of unconsolidated joint ventures and a $26.449 million loss on financing transactions in 2025, compared to $0 and $14.657 million respectively in 2024. Total revenues decreased to $143.937 million in 2025 from $150.785 million in 2024, with rental revenue declining from $150.271 million to $143.540 million. The company's real estate properties, net, increased to $1.381 billion from $1.156 billion, reflecting significant acquisitions of $272.048 million. Secured debt remained relatively stable at $173.727 million, while borrowings under the line of credit surged to $221.900 million from $20.000 million. The company also issued Series C Preferred Units, increasing redeemable non-controlling interest to $77.694 million from $1.259 million, indicating a shift in capital structure.

Why It Matters

Plymouth Industrial REIT's widening net loss and increased debt, particularly the surge in line of credit borrowings, signal potential financial strain for investors. The substantial loss from unconsolidated joint ventures raises questions about the effectiveness of its partnership strategy and asset management. For employees, a struggling company could lead to job insecurity or reduced growth opportunities. Customers might see less investment in property improvements if financial health deteriorates. In the competitive industrial REIT market, these financial headwinds could weaken Plymouth's position against larger, more stable rivals, potentially impacting its ability to acquire and manage properties effectively.

Risk Assessment

Risk Level: high — The company reported a net loss of $54.608 million for the nine months ended September 30, 2025, significantly higher than the $8.069 million loss in 2024. This is exacerbated by a $22.681 million loss in investment of unconsolidated joint ventures and a $26.449 million loss on financing transactions. Additionally, borrowings under the line of credit increased dramatically from $20.000 million at December 31, 2024, to $221.900 million at September 30, 2025, indicating increased reliance on short-term debt.

Analyst Insight

Investors should exercise extreme caution and consider reducing exposure to Plymouth Industrial REIT. The significant increase in net loss and reliance on line of credit borrowings suggest underlying operational and financial challenges that need to be addressed before considering any new investment.

Financial Highlights

revenue

$143,937,000

total Assets

$1,381,000,000

total Debt

$395,627,000

net Income

-$54,608,000

eps

-$1.23

revenue Growth

-4.47%

Revenue Breakdown

Key Numbers

• $54.608M — Net Loss (9 months) (Increased from $8.069M in 2024, indicating significant financial deterioration.)
• $22.681M — Loss in Unconsolidated Joint Ventures (9 months) (A new and substantial loss compared to $0 in 2024, impacting profitability.)
• $26.449M — Loss on Financing Transaction (9 months) (Increased from $14.657M in 2024, highlighting rising financing costs.)
• $143.937M — Total Revenues (9 months) (Decreased from $150.785M in 2024, showing a decline in top-line performance.)
• $221.900M — Borrowings Under Line of Credit (Massive increase from $20.000M at Dec 31, 2024, signaling increased short-term debt reliance.)
• $77.694M — Redeemable Non-controlling Interest - Series C Preferred Units (Significant increase from $1.259M, indicating a major capital structure change.)
• $272.048M — Acquisition of Real Estate Properties (9 months) (Substantial investment, but not translating to improved net income.)
• $1.23 — Net Loss Per Share (9 months) (Increased from $0.19 in 2024, reflecting a larger loss per share for common stockholders.)

Key Players & Entities

• Plymouth Industrial REIT, Inc. (company) — registrant
• Plymouth Industrial Operating Partnership, L.P. (company) — operating partnership
• New York Stock Exchange (regulator) — exchange where common stock is registered
• $54.608 million (dollar_amount) — net loss attributable to Plymouth Industrial REIT, Inc. for nine months ended September 30, 2025
• $8.069 million (dollar_amount) — net loss attributable to Plymouth Industrial REIT, Inc. for nine months ended September 30, 2024
• $22.681 million (dollar_amount) — loss in investment of unconsolidated joint ventures for nine months ended September 30, 2025
• $26.449 million (dollar_amount) — loss on financing transaction for nine months ended September 30, 2025
• $143.937 million (dollar_amount) — total revenues for nine months ended September 30, 2025
• $221.900 million (dollar_amount) — borrowings under line of credit at September 30, 2025
• $77.694 million (dollar_amount) — redeemable non-controlling interest - Series C Preferred Units at September 30, 2025

FAQ

Risk Factors

• Increased Net Loss and Financing Costs [high — financial]: The company reported a net loss of $54.608 million for the nine months ended September 30, 2025, a significant increase from $8.069 million in the prior year. This deterioration is exacerbated by a $26.449 million loss on financing transactions, up from $14.657 million, indicating rising costs and potential financial strain.
• Reliance on Short-Term Debt [high — financial]: Borrowings under the line of credit surged to $221.900 million from $20.000 million, signaling a substantial increase in reliance on short-term debt. This could increase financial risk if interest rates rise or if the company faces challenges in refinancing.
• Losses in Unconsolidated Joint Ventures [medium — financial]: A new and significant loss of $22.681 million from unconsolidated joint ventures in 2025, compared to no such loss in 2024, is a major drag on profitability. The performance of these joint ventures is critical and currently negative.
• Capital Structure Shift [medium — financial]: The issuance of Series C Preferred Units led to a substantial increase in redeemable non-controlling interest to $77.694 million from $1.259 million. This indicates a significant change in the company's capital structure, potentially impacting future earnings per share and dividend capacity.
• Declining Total Revenues [medium — operational]: Total revenues decreased to $143.937 million from $150.785 million in the comparable period of 2024. This top-line decline, driven by a decrease in rental revenue, suggests potential challenges in occupancy, rental rates, or tenant retention.
• Acquisition Strategy vs. Profitability [medium — financial]: The company made substantial acquisitions of real estate properties totaling $272.048 million. However, these investments have not translated into improved net income, as evidenced by the significant net loss, raising questions about the effectiveness of the acquisition strategy in generating shareholder value.

Industry Context

The industrial REIT sector focuses on acquiring, owning, and managing properties like distribution centers and warehouses. This sector is influenced by e-commerce growth, supply chain logistics, and overall economic activity. Companies compete on location, property type, and tenant relationships within primary and secondary markets.

Regulatory Implications

As a REIT, Plymouth Industrial is subject to specific tax regulations and reporting requirements. Changes in accounting standards or tax laws could impact its financial reporting and operational flexibility. Compliance with SEC regulations for public companies is also a constant requirement.

What Investors Should Do

1. Monitor the performance of unconsolidated joint ventures closely, as they are a significant source of recent losses.
2. Analyze the impact of increased short-term debt and the new Series C Preferred Units on the company's leverage and future cash flows.
3. Evaluate the effectiveness of the recent $272.048 million in property acquisitions in generating positive returns, given the overall net loss.
4. Assess management's strategy for addressing the declining revenue and increasing financing costs.

Glossary

UPREIT

An Umbrella Partnership Real Estate Investment Trust, a structure where the REIT owns and operates its properties through a limited partnership, allowing for tax-deferred contributions of property. (Explains the corporate structure of Plymouth Industrial REIT, Inc.)

Redeemable Non-controlling Interest

Represents the value of equity interests held by parties other than the controlling entity that have redemption features, meaning they can be bought back by the company or sold by the holder at certain times. (Highlights the significant increase due to Series C Preferred Units, indicating a change in capital structure and potential future cash outflows.)

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task or project. (The company has a joint venture that is accounted for using the equity method, and losses from this venture are impacting overall profitability.)

Line of Credit

A flexible loan that allows a borrower to draw down funds, repay them, and borrow again up to a certain limit. It is typically used for short-term financing needs. (The substantial increase in borrowings under the line of credit indicates increased reliance on short-term debt.)

Year-Over-Year Comparison

Compared to the prior year, Plymouth Industrial REIT, Inc. has experienced a significant deterioration in financial performance. Total revenues have declined from $150.785 million to $143.937 million for the nine-month period. Most critically, the net loss has widened dramatically from $8.069 million to $54.608 million, driven by new substantial losses in joint ventures and increased financing transaction costs. The company's debt profile has also shifted, with a massive increase in borrowings under its line of credit and a significant issuance of preferred units.

Key Financial Figures

• $0.01 — ch Registered Common Stock, par value $0.01 per share PLYM New York Stock Excha

Filing Documents

• plym-20250930.htm (10-Q) — 4656KB
• plym-ex31_1.htm (EX-31.1) — 18KB
• plym-ex31_2.htm (EX-31.2) — 18KB
• plym-ex32_1.htm (EX-32.1) — 8KB
• plym-ex32_2.htm (EX-32.2) — 7KB
• 0001193125-25-274281.txt ( ) — 15888KB
• plym-20250930.xsd (EX-101.SCH) — 1516KB
• plym-20250930_htm.xml (XML) — 3443KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) Condensed Consolidated Balance Sheets at September 30, 2025 and December 31, 2024 1 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 2 Condensed Consolidated Statements of Comprehensive Loss for the Three and Nine Months Ended September 30, 2025 and 2024 3 Condensed Consolidated Statements of Changes in Redeemable Non-controlling Interest and Equity for the Three and Nine Months Ended September 30, 2025 and 2024 4 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 6 Notes to Condensed Consolidated Financial Statements 8 ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 30 ITEM 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 42 ITEM 4.

Controls and Procedures

Controls and Procedures 42 PART II. OTHER INFORMATION 43

SIGNATURES

SIGNATURES 47 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FIN ANCIAL STATEMENTS

ITEM 1. FIN ANCIAL STATEMENTS PLYMOUTH INDUSTRIAL REIT, INC. COND ENSED CONSOLIDATED BALANCE SHEETS UNAUDITED (In thousands, except share and per share amounts) September 30, December 31, 2025 2024 Assets Real estate properties $ 1,691,214 $ 1,418,305 Less accumulated depreciation ( 309,357 ) ( 261,608 ) Real estate properties, net 1,381,857 1,156,697 Cash 15,824 17,546 Cash held in escrow 1,990 1,964 Restricted cash 24,158 24,117 Investment in unconsolidated joint ventures 39,696 62,377 Deferred lease intangibles, net 52,570 41,677 Other assets 46,204 42,622 Interest rate swaps 8,178 17,760 Forward contract asset — 3,658 Total assets $ 1,570,477 $ 1,368,418 Liabilities, Redeemable Non-controlling Interest and Equity Liabilities: Secured debt, net $ 173,727 $ 175,980 Unsecured debt, net 448,297 447,741 Borrowings under line of credit 221,900 20,000 Accounts payable, accrued expenses and other liabilities 90,472 83,827 Warrant liability 62,069 45,908 Embedded derivative liability - Series C Preferred Units 11,793 — Deferred lease intangibles, net 6,884 5,026 Financing lease liability 2,305 2,297 Interest rate swaps 55 520 Total liabilities $ 1,017,502 $ 781,299 Commitments and contingencies (Note 13) Redeemable non-controlling interest - Series C Preferred Units, 500,000 units authorized, (aggregate liquidation preference of $ 186,587 and $ 81,985 at September 30, 2025 and December 31, 2024, respectively) 77,694 1,259 Equity: Common stock, $ 0.01 par value: 900,000,000 shares authorized; 44,551,164 and 45,389,186 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 446 454 Additional paid in capital 559,446 604,839 Accumulated deficit ( 97,870 ) ( 43,262 ) Accumulated other comprehensive income 8,039 17,517 Total stockhold

Business

Business Plymouth Industrial REIT, Inc., (the "Company," "we" or the "REIT") is a Maryland corporation formed on March 7, 2011. The Company is structured as an umbrella partnership REIT, commonly called an UPREIT, and owns substantially all of its assets and conducts substantially all of its business through its operating partnership, Plymouth Industrial Operating Partnership, L.P., a Delaware limited partnership (the "Operating Partnership"). The Company, as general partner of the Operating Partnership, controls the Operating Partnership and consolidates the assets, liabilities, and results of operations of the Operating Partnership. As of September 30, 2025 and December 31, 2024 , the Company owned a 98.9 % equity interest in the Operating Partnership. The Company is a real estate investment trust focused on the acquisition, ownership and management of single and multi-tenant industrial properties, including distribution centers, warehouses, light industrial and small bay industrial properties, located in primary and secondary markets within the main industrial, distribution and logistics corridors of the United States. As of September 30, 2025, the Company, through its subsidiaries, wholly owned 148 industrial properties comprising 226 buildings with an aggregate of approximately 32.1 million square feet , and our regional property management office building located in Columbus, Ohio totaling approximately 17,260 square feet. The Company also owns a 35 % non-controlling equity interest in, and provides management services to, a joint venture through a wholly owned subsidiary of the Operating Partnership. The joint venture is accounted for using the equity method of accounting. As such, the operating data of the joint venture is not consolidated with that of the Company. 2. Summary of Significant Accounting Policies The accounting policies underlying the accompanying unaudited condensed consolidated financial statements are those set forth in the Company's

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