KeyBanc reiterates Overweight rating on Plymouth Industrial REIT stock

Published 09/07/2025, 15:14
KeyBanc reiterates Overweight rating on Plymouth Industrial REIT stock

Investing.com - KeyBanc maintained its Overweight rating and $18.00 price target on Plymouth Industrial REIT (NYSE:PLYM) following the company’s second quarter 2025 activity update. The REIT, currently trading at a P/E ratio of 5.32x and offering a 5.97% dividend yield, has maintained dividend increases for three consecutive years according to InvestingPro data.

The industrial REIT, with a market capitalization of $744 million, reported improvements in occupancy rates, with both same-store and total portfolio occupancy increasing 30 basis points sequentially to 95% and 94.6%, respectively. These gains were driven by leasing activity in several markets including St. Louis, Cleveland, and Cincinnati, along with recent acquisitions, partially offset by a 330,000 square foot vacancy in Memphis.

Plymouth Industrial also reported stronger rent growth, with cash rent change in the second quarter rising to 10% from 9.6% in the previous quarter. The company noted that cash rent change on nearly 6 million square feet of scheduled 2025 lease commencements stands at 13%.

The REIT disclosed it had repurchased 805,000 shares of common stock during the quarter at an average price of $16.26 per share. KeyBanc estimates these buybacks yield an implied 8.8% cap rate on current NOI, though they may limit the company’s near-term ability to reduce leverage.

KeyBanc characterized the activity update as "in line to slightly positive," particularly noteworthy given the stock’s 710 basis point year-to-date underperformance compared to other industrial REITs. For deeper insights into Plymouth Industrial REIT’s performance metrics and growth potential, access the comprehensive Pro Research Report available on InvestingPro, which includes detailed financial analysis and peer comparisons.

In other recent news, Plymouth Industrial REIT reported strong leasing activity in the second quarter of 2025, securing leases for 1.45 million square feet of industrial space. The company achieved a 10% increase in cash rents across these transactions, with renewal leases seeing a 9% increase and new leases a 14% increase. Plymouth also acquired 22 industrial buildings totaling 2.05 million square feet for $204.7 million, including a significant $193 million acquisition in Ohio, which consists of 21 buildings leased to 75 tenants. Citizens JMP analysts reiterated a Market Outperform rating on Plymouth’s stock, maintaining a $24.00 price target, citing the company’s strategic acquisitions and potential benefits from below-market rents. In the first quarter of 2025, Plymouth exceeded earnings expectations with an EPS of $0.13, significantly higher than the forecasted -$0.22, although revenue fell short at $45.57 million against the projected $48.58 million. The company has also actively deployed funds from Sixth Street into targeted markets, with over $250 million in investments announced during 2025. Plymouth plans to release its full second-quarter financial results on August 6, with a conference call scheduled for the following day. The company remains focused on expanding its portfolio and maintaining a strong balance sheet, with no debt maturities in 2025 and $415 million available on credit.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.