Pendleton P. White Jr., a director at Plymouth Industrial REIT, Inc. (NYSE:PLYM), recently acquired 5,000 shares of the company’s common stock. The transaction was executed on November 15, 2024, at a price of $18.39 per share, totaling approximately $91,950. Following this acquisition, White holds 5,000 shares indirectly through a trust, in addition to 117,735 shares directly and 4,000 shares indirectly through his father’s estate. This purchase reflects White’s continued involvement with the real estate investment trust, which is headquartered in Boston, Massachusetts.
In other recent news, Plymouth Industrial REIT has seen some significant developments. The company announced a strategic partnership with Sixth Street during its third quarter 2024 earnings call. This partnership provides Plymouth Industrial REIT with $500 million for acquisitions and expands the company’s borrowing capacity to $1.5 billion. Despite a 2.7% vacancy rate due to tenant challenges, the company is focusing on capital deployment and leasing opportunities.
A Baird analyst has revised Plymouth Industrial REIT’s stock price target to $25.00 from $26.00, considering recent market developments and a joint venture transaction. However, the analyst maintained an Outperform rating, indicating a belief that the company has the potential to outperform the broader market or its industry sector. The company’s strategy includes mitigating risks associated with large tenant lease expirations set for 2025 and effective redeployment of capital from the joint venture transaction.
Plymouth Industrial REIT also disclosed a forthcoming acquisition in Cincinnati valued at approximately $40 million, expected to close by year-end. The company’s fourth-quarter implied guidance for FFO stands between 47 to 48 cents, impacted by a one-time $500,000 cleanup fee. Despite a slowdown in leasing activity, Plymouth Industrial REIT’s management remains confident in their strategies and future growth, leveraging its substantial 35 million-square-foot portfolio into 2025.
InvestingPro Insights
The recent insider purchase by Pendleton P. White Jr. comes at a time when Plymouth Industrial REIT (NYSE:PLYM) is facing some financial headwinds. According to InvestingPro data, the company’s stock has experienced a significant decline, with a 21.21% drop in the three-month price total return as of the latest available data. This decline has brought the stock near its 52-week low, trading at 71.86% of its 52-week high.
Despite these challenges, the company maintains a solid dividend yield of 5.23%, which may be attractive to income-focused investors. This yield is particularly noteworthy given the company’s dividend growth of 6.67% over the last twelve months, suggesting a commitment to returning value to shareholders even in a challenging environment.
InvestingPro Tips highlight that while Plymouth Industrial REIT has been profitable over the last twelve months, analysts do not anticipate the company will be profitable this year. This outlook, combined with the fact that the stock is trading at a high earnings multiple, suggests that investors should carefully consider the company’s valuation and future prospects.
For those interested in a deeper analysis, InvestingPro offers 10 additional tips for Plymouth Industrial REIT, providing a more comprehensive view of the company’s financial health and market position.
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