Fed’s Powell opens door to potential rate cuts at Jackson Hole
Investing.com - Citizens JMP analyst downgraded Plymouth Industrial REIT (NYSE:PLYM) from Market Outperform to Market Perform following Sixth Street Partners’ proposal to acquire all outstanding shares of the company. The stock has surged over 42% in the past week, with InvestingPro data showing technical indicators suggesting overbought territory.
Sixth Street Partners made a fully financed proposal to acquire Plymouth Industrial REIT at $24.10 per share, representing a 63% premium to the unaffected share price. The proposal values the company at approximately $970 million, with the stock currently trading at a P/E ratio of 7.38x and offering a dividend yield of 4.46%. The proposal comes nearly one year after the initial announcement of a strategic partnership between the two companies.
Plymouth Industrial REIT shares had declined over 40% since the original partnership announcement in August 2024, significantly underperforming the industrial REIT sector, which saw the MSCI Industrial REIT index fall 20% during the same period. The underperformance was attributed to transaction complexity, operational challenges across several assets, and policy measures including tariffs.
While Plymouth had strategically invested Sixth Street’s capital into core markets and properties aligned with its broader portfolio, the next phase of deployment was expected to be leverage enhancing, limiting Plymouth’s ability to act on its $750 million active deal pipeline.
Citizens JMP believes the transaction fairly values the shares and sees little risk of execution issues, as Sixth Street manages over $115 billion in assets and has obtained financing for the deal. According to InvestingPro’s Fair Value analysis, the stock is currently trading above its Fair Value, with 12+ additional exclusive insights available to subscribers. The firm does not anticipate additional proposals to emerge, suggesting limited upside from current levels.
In other recent news, Plymouth Industrial REIT reported its second-quarter earnings for 2025, which fell short of expectations. The company posted an earnings per share (EPS) of -$0.14, missing the anticipated $0.02, resulting in an EPS surprise of -800%. However, revenue slightly exceeded projections, coming in at $47.2 million compared to the forecasted $46.46 million. Additionally, Plymouth Industrial REIT received an unsolicited, non-binding proposal from Sixth Street Partners to acquire all outstanding shares for $24.10 per share in cash. Sixth Street currently owns about 9.99% of Plymouth’s outstanding common stock. In another development, Citizens JMP analyst Mitch Germain reaffirmed a Market Outperform rating for Plymouth with a $24.00 price target, citing the company’s active performance in the second quarter. During this period, Plymouth completed over $200 million in new acquisitions and managed 1.4 million square feet of leasing, alongside share repurchase activities. The company’s full-year guidance was reaffirmed, indicating potential earnings acceleration in the latter half of 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.