# Citizens JMP reiterates PLYMOUTH INDUSTRIAL REIT stock rating on Ohio buy

Citizens JMP reiterated a Market Outperform rating on Plymouth Industrial REIT (PLYM) with a $24 price target, citing a potential 44% upside and attractive valuation at 5x P/E. The firm highlights Plymouth's strategic acquisitions in Sunbelt and Midwest markets, funded by proceeds from Sixth Street, and expects over 6% same-store growth, supported by strong leasing and over $250 million in investments during 2025. While Q1 2025 EPS significantly exceeded forecasts, revenue fell short of expectations, though the company maintained its full-year core FFO guidance and anticipates a stronger second half of 2025.

Analysis

Citizens JMP analysts have reiterated a Market Outperform rating and a $24.00 price target for Plymouth Industrial REIT (PLYM), implying a significant 44% potential upside from its current price of $16.67. The stock's valuation appears attractive, trading at a P/E ratio of 5.0x and at 9 times its 2025 estimated Funds From Operations (FFO) per share, substantially below the industrial REIT sector average of 18 times. This positive outlook is supported by Plymouth's ongoing strategic deployment of capital from a strategic investor, Sixth Street, into acquisitions in Ohio, Memphis, and Atlanta, with over $250 million invested in 2025. Management anticipates these investments will yield benefits from capturing below-market rents, expansion opportunities, and operational synergies through existing regional offices, contributing to a forecasted same-store growth exceeding 6% for the year. The focus on Sunbelt and Midwest markets is also viewed as potentially less susceptible to tariffs and could benefit from manufacturing reshoring. Furthermore, Plymouth offers a compelling dividend yield of 5.8%, reportedly well-covered and 200 basis points above its peer average. Despite a notable Q1 2025 earnings per share of $0.13, which significantly beat the forecasted -$0.22, revenue of $45.57 million missed the projected $48.58 million, indicating a mixed quarterly performance. However, the company maintained its full-year core FFO guidance, reported strong leasing activity, and possesses a robust balance sheet with over 88% of its debt fixed, no maturities in 2025, and $415 million available on credit, suggesting a resilient financial position and preparedness for a stronger second half of 2025.

Key Decisions for Investors

• Investors may consider PLYM's current valuation attractive, particularly its FFO multiple discount relative to peers and the significant price target upside identified by Citizens JMP.
• Monitor the company's ability to convert its robust acquisition pipeline and leasing activities into sustained revenue growth, especially in light of the recent Q1 revenue miss.
• Evaluate the progress of integrating new acquisitions in the Sunbelt and Midwest markets and the realization of projected synergies, including capturing below-market rents and leveraging existing regional infrastructure.
• Consider the well-covered 5.8% dividend yield as a component of total return, supported by a strong balance sheet and maintained FFO guidance.