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On Tuesday, KeyBanc Capital Markets adjusted its price target for Plymouth Industrial REIT (NYSE:PLYM) shares, decreasing it to $18 from the previous $23, while maintaining an Overweight rating on the stock. The revision reflects a cautious outlook due to current global economic challenges. The stock, currently trading at $13.96, has seen significant pressure recently, trading near its 52-week low of $13.66. According to InvestingPro data, the REIT trades at an attractive P/E ratio of 5.56x, suggesting potential value opportunity despite market headwinds.
Plymouth Industrial REIT, which reported its first-quarter activities for 2025 today, revealed a slight dip in same-store occupancy to 94.7%, a 100 basis point decline since December 31. However, the total portfolio occupancy showed a positive trend, increasing by 200 basis points to 94.3%, aligning with management's past discussions. This increase is largely attributed to new leases, notably including a significant 600,000 square foot lease in the St. Louis Metropolitan Statistical Area (MSA). The REIT maintains a strong dividend yield of 6.88%, having raised its dividend for three consecutive years, as highlighted in InvestingPro's analysis.
Despite the positive leasing activity, the cash rent change for the quarter fell to 9.6%, including the St. Louis lease. Without this deal, the change would have been higher at 16.2%. The report also noted that Plymouth Industrial REIT did not disclose any new acquisitions in the latest update.
KeyBanc analysts have revised the REIT's financial forecasts for 2025 and 2026, taking into account the results from the fourth quarter of 2024 and investment activities in the current quarter. The lowered price target to $18 is a direct response to reduced growth expectations amid the recent volatility in global markets and the impact of new tariffs introduced earlier in the month.
The firm reiterated its Overweight rating, suggesting that despite the revised price target and potential headwinds, they still see the stock as a favorable investment relative to its peers. InvestingPro analysis indicates the stock is currently undervalued, with additional metrics and 13 more exclusive ProTips available to subscribers. The comprehensive Pro Research Report offers deep-dive analysis of PLYM's financial health, valuation metrics, and growth prospects, helping investors make more informed decisions in today's challenging market environment.
In other recent news, Plymouth Industrial REIT reported its Q4 2024 earnings, revealing a significant beat on earnings per share (EPS) at $3.24, far exceeding the forecasted $0.0314, although revenue fell short at $47.57 million compared to the expected $50.76 million. The company also announced robust leasing activity for Q1 2025, with leases covering over 2.4 million square feet, including both renewal and new leases. In terms of acquisitions, Plymouth closed deals on six industrial buildings totaling 801,161 square feet for $65.1 million in the first quarter, with a focus on expanding in the Southeast and Midwest regions.
JMP Securities maintained a Market Outperform rating for Plymouth Industrial REIT, though it adjusted the price target to $24 from $27 due to tenant turnover and competition concerns. The analysts noted the stock's attractiveness, emphasizing its dividend yield and strategic market positioning. Additionally, Plymouth appointed Robert O. Stephenson, CFO of Omega Healthcare (NYSE:OHI) Investors, to its Board of Directors, bringing extensive experience to the company. These developments underscore Plymouth's strategic initiatives and market positioning amidst the current economic environment.
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