Plymouth REIT

Investment Criteria

We acquire predominantly Class B industrial assets (warehouse, distribution, flex and light manufacturing) in secondary and select primary markets across the United States.

  • East of the Mississippi: Markets we currently serve include Atlanta, Chicago, Columbus, Indianapolis and Memphis among others.
  • Well-Leased: We typically acquire assets that are 90% to 100% leased, providing strong and consistent cash flow. However, we also buy assets that are 50% to 80% leased if we can implement a compelling lease-up strategy and they meet our risk-adjusted return criteria.
  • Lease Term: We will continue to acquire assets with near-term rollover provided we are comfortable with the tenants' history with the property, their capital investment in the space and future business outlook.

UPREIT'S

We are uniquely positioned to provide sellers with tax-friendly transactions via the use of the UPREIT structure. The primary benefits for sellers are:

  • The transaction can be completed on a tax-deferred basis. The seller does not recognize immediate gain on the transaction, as they receive Operating Partnership Units (OP units) instead of cash. These OP units can be converted to Plymouth common stock (NYSE American: PLYM) on a 1:1 conversion rate after one year.
  • While the seller holds the OP units for one year (or more if desired), they receive the same dividend distributions as if they held the common stock.
  • The seller is only taxed when the OP units are converted to common stock.
  • The seller's basis is adjusted at time of death when OP units are transferred to heirs.

Additional benefits include:

  • Property owners who sell their property via an UPREIT structure trade a single asset for exposure to a portfolio of assets located in different markets, thereby benefiting from diversified assets and locations as well as multiple cash flow streams.
  • By trading an illiquid, single asset for shares in a liquid publicly trading REIT, property owners can still "remain" in real estate and benefit from the REIT's potential growth and share price appreciation, without the risks typically associated with single asset ownership and illiquidity.