Madison international entities sell $13.3 million in Plymouth Industrial REIT stock By Investing.com

In a recent series of transactions, a group of related entities under Madison International Realty have sold a significant portion of their holdings in Plymouth Industrial REIT, Inc. (NYSE:PLYM). The total value of the shares sold amounted to approximately $13.3 million, with the price per share fixed at $23.58.

The entities involved in the sale include MIRELF VI REIT Investments IV, LLC, MIRELF VI (U.S.), LP, Madison International Holdings VI, LLC, Madison International Realty VI, LLC, Madison International Realty Holdings, LLC, Madison International Realty Partners, LP, Madison International Realty Partners GP, LLC, and Ronald M. Dickerman. These sales were executed on August 19, 2024, and involved a total of 563,438 shares of common stock.

It is important to note that these entities, including Ronald Dickerman, have reported that they are no longer 10% owners of the company. The nature of the ownership and the sale is explained in the footnotes of the SEC filing, which clarify the relationships between the entities and their shared beneficial ownership of the sold shares.

The shares were sold indirectly, as indicated by the ownership nature in the filing, with several footnotes detailing the complex structure of ownership and management among the Madison International entities. This includes the role of MIRELF VI REIT as the managing member and sole shareholder of MIRELF VI REIT Investments IV, LLC, which directly held the shares sold.

Investors and market watchers often pay close attention to such sales by major stakeholders, as they can be indicative of the entities’ outlook on the company’s future performance or strategic shifts in their investment portfolios. Plymouth Industrial REIT, a real estate investment trust specializing in industrial properties, is publicly traded and follows the standard reporting requirements set by the Securities and Exchange Commission for such transactions.

The details of this transaction provide significant information for investors and analysts who track the investment movements of large real estate entities and their impact on the market. The disclosed sale by Madison International’s entities is a notable event in the trading of Plymouth Industrial REIT’s stock and will likely be of interest to those following the company’s shareholder dynamics.

In other recent news, Plymouth Industrial REIT showcased a strong performance in Q2 2024, exceeding expectations. The company’s financial health improved with leverage decreasing to 6.4 times, and it expanded its market presence by acquiring a property in Memphis. This acquisition increased Plymouth’s total property to almost 7 million square feet. Additionally, the company reported the third highest leasing volume in its history, indicating robust tenant demand.

Truist Securities recently updated its outlook on Plymouth Industrial REIT, raising the price target to $26.00 from $24.00 while maintaining a Buy rating. This adjustment reflects a positive view on the company’s recent leasing activities and a lower interest rate environment. The firm’s 2024 normalized funds from operations (FFO) estimate stands at $1.88 per share, aligning with the lower end of Plymouth’s guidance range.

Recent developments for Plymouth Industrial REIT include ongoing strategic expansions and a development program nearing completion, with full stabilization expected by 2025. Despite a temporary dip in occupancy in Q3, the company expects a rebound to around 98% by year-end. Analysts from Truist Securities noted potential challenges in leasing up certain properties and longer decision-making times for Class A space due to financing needs for manufacturing equipment. However, they anticipate strong demand in markets to continue and full benefits from the development program to be seen in 2025.

InvestingPro Insights

In light of Madison International Realty’s sale of a substantial stake in Plymouth Industrial REIT, Inc. (NYSE:PLYM), it’s pertinent to consider the company’s financial health and market position. Plymouth Industrial REIT’s market capitalization stands at $1.09 billion, reflecting its scale within the industrial real estate sector. Despite the recent sale, an InvestingPro Tip indicates that analysts predict the company will be profitable this year, which may offer reassurance to investors about the company’s future prospects.

From a valuation standpoint, Plymouth Industrial REIT is trading at a high earnings multiple with a P/E ratio of 44.24. This could suggest that the market has high expectations for the company’s earnings growth. However, it’s worth noting that the company’s PEG ratio, which measures the P/E ratio relative to earnings growth, is 0.21 for the last twelve months as of Q2 2024. This low PEG ratio could imply that the company’s stock price is undervalued relative to its earnings growth potential—an InvestingPro Tip that might appeal to value investors.

The company’s gross profit margin stands at a robust 69.36%, showing its ability to retain a significant portion of revenue as gross profit. Additionally, the dividend yield of 4.07% as of the latest data in 2024 is attractive to income-focused investors, especially considering the dividend growth of 6.67% in the last twelve months as of Q2 2024.

For those interested in a deeper analysis, InvestingPro offers additional tips and insights for Plymouth Industrial REIT, which can be found at https://www.investing.com/pro/PLYM. These insights provide a more comprehensive understanding of the company’s financial metrics and future outlook, enabling investors to make informed decisions.

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