Analyst John Kim from BMO Capital maintained a Hold rating on Plymouth Industrial Reit (PLYM – Research Report) and keeping the price target at $19.00.
John Kim’s rating is based on a combination of factors that present both opportunities and challenges for Plymouth Industrial Reit. On the positive side, the company has shown robust leasing activity with significant spreads, indicating strong demand and pricing power. Additionally, Plymouth has addressed a substantial portion of its upcoming lease expirations with favorable terms, and market rents are expected to grow further, which could enhance future revenue streams. Furthermore, the company’s leverage has decreased, which is a positive sign for its financial health.
However, there are concerns that temper the outlook. The company’s guidance for 2025 Core FFOps is notably below market expectations, partly due to increased general and administrative as well as interest expenses. Additionally, there is an anticipated decline in same-store occupancy, marking the steepest drop in the industrial REIT sector. These factors contribute to a cautious outlook, leading to the Hold rating as they may offset the positive leasing and market rent trends.
Kim covers the Real Estate sector, focusing on stocks such as Equity Residential, Howard Hughes Holdings, and Prologis. According to TipRanks, Kim has an average return of 0.7% and a 49.30% success rate on recommended stocks.