Plymouth Industrial to join growing list of REITs trading on the public market
2017 has been an interesting year overall, breaking multiple records in the number of IPOs that have already taken place. The strength of the IPOs has been varying. Indexes like the Renaissance Capital model have been rising and falling. The volatility of the market, while threatening to some firms, has opened doors to some groups of companies to ride the IPO wave. One of those groups is REITS.
A REIT stands for a real estate investment trust. Such a company is formed by another firm for the sole purpose of merging with or acquiring firms within a given bracket. REITs are more commonly known as blank check companies given their leeway in funding and the freedom within which they operate. For the past several weeks, more and more REITs have been crawling out the woodwork and listing on stock markets. For now, this article will not tell you the reason for this but just give you one more example of this.
Plymouth Industrial REIT was formed in 2011. Maybe you didn’t know it under this label. At the time it was formed, the company was known as Plymouth Industrial Opportunity REIT. Torchlight Investors came together at that time to found Plymouth Industrial because they needed an avenue to acquire land that was not expensive but not illegal either. As you might expect, the REIR has been involved in some pretty good deals since it started its operations.
One of the biggest upsides for the REIT launching on the public market is that so far the company has had positive financials. What’s not to like about an investment that will give you a long-term stable revenue stream? In the twelve months that ended on December 31st, 2016, Plymouth Industrial made revenue of $20 million. The income has been stable over the years, so you don’t have to worry about drastic losses if you decide to take part in the IPO.
You can also look at the fact that the company currently has a somewhat wide portfolio. Between 2011 and 2017 Plymouth Industrial REIT has been responsible for getting interests in buildings on behalf of its backers. In case you are wondering these properties are all related to the industrial arena. Plymouth Industrial operates what are called Class B properties. That means a few distribution centers, some warehouses in the mix not to mention buildings that carry out light industrial processes. Plymouth Industrial runs all twenty of its properties in the US, mostly in the Midwest and Eastern regions.
One of the reasons that the company (and some analysts) think that an IPO would be good for Plymouth Industrial is that all of them are bullish about the future of REITs. Plymouth Industrial will be the fourth REIT to have this year because of that. REITs are the new unicorn tech companies that everyone wants to get their hands on. That’s why the company management that all 3.8 million of common shares on offer will have cleared out on the first day of trading between $19 and $21.