Plymouth Industrial REIT Sells Chicago Portfolio for $357.9M

By Tamara Parker • Wednesday, November 20 06:02 • Permanent Link

Plymouth Industrial REIT, Inc. recently completed a transaction pursuant to the agreement with Isosceles JV Investments, LLC, an affiliate of Sixth Street Partners, LLC, involving the contribution of Plymouth’s Chicago portfolio properties asset group to Isosceles JV, LLC. In exchange for the Chicago Portfolio, Plymouth received total gross consideration of $357.9 million. The transaction was completed on November 13, 2024.

The unaudited pro forma condensed combined financial statements reflect the estimated effects of the transaction. The unaudited pro forma condensed combined balance sheet as of September 30, 2024, gives effect to the disposal and related transactions as if they had occurred on that date. The removal of the Chicago portfolio property assets, liabilities, and historical operating results, recognition of the fair market value of the equity method investment in Isosceles JV, LLC, and related earnings or losses from the equity method investment are some of the adjustments made.

The pro forma net gain on the sale of real estate is estimated to be $133.1 million, based on Plymouth’s historical balance sheet information as of September 30, 2024. The estimated net gain on the sale of real estate is reflected in the accumulated deficit line item of the unaudited pro forma condensed combined balance sheet as if the disposal was consummated as of September 30, 2024.

For the nine months ended September 30, 2024, the pro forma net loss attributable to common stockholders is $30.1 million, while for the year ended December 31, 2023, the pro forma net income attributable to common stockholders is $114.0 million.

These figures provide a snapshot of the financial impact of the transaction on Plymouth Industrial REIT, Inc., and its shareholders, and illustrate the significant changes in the company's financial position and results of operations following the completion of the transaction. As a result of these announcements, the company's shares have moved 1.1% on the market, and are now trading at a price of $18.57. For the full picture, make sure to review Plymouth Industrial REIT's 8-K report.

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