Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer☑ ☑ Non-accelerated Filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Exchange Act Rule 12b-2). Yes ☐ No ☑

As of ~~August~~November 1, 2022, the Registrant had outstanding ~~40,127,561~~42,849,489 shares of common stock.

PLYMOUTH INDUSTRIAL REIT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(In thousands, except share and per share amounts)

	June 30,			December 31,
	2022			2021			September 30,			December 31,
							2022			2021
Assets
Real estate properties	$	1,501,917		$	1,254,007		$	1,538,416		$	1,254,007
Less accumulated depreciation		(172,678	)		(142,192	)		(189,170	)		(142,192	)
Real estate properties, net		1,329,239			1,111,815			1,349,246			1,111,815

Cash		16,566			26,232			16,341			26,232
Cash held in escrow		13,055			11,893			13,156			11,893
Restricted cash		6,445			5,249			6,756			5,249
Deferred lease intangibles, net		82,771			75,864			76,674			75,864
Investment in unconsolidated joint venture		—			5,833			—			5,833
Interest rate swaps		15,928			—			32,404			—
Other assets		35,485			33,919			36,566			33,919
Total assets	$	1,499,489		$	1,270,805		$	1,531,143		$	1,270,805

Liabilities, Preferred Stock and Equity
Liabilities:
Secured debt, net	$	392,315		$	352,075		$	390,944		$	352,075
Unsecured debt, net		447,126			297,840			447,182			297,840
Borrowings under line of credit		40,500			38,000			67,500			38,000
Accounts payable, accrued expenses and other liabilities		70,841			66,880			74,701			66,880
Deferred lease intangibles, net		10,337			10,273			9,612			10,273
Financing lease liability		2,237			2,227			2,243			2,227
Total liabilities		963,356			767,295			992,182			767,295
Commitments and contingencies (Note 13)

Preferred stock, par value $0.01 per share, 100,000,000 shares authorized,
Series A: 2,007,170 and 2,023,551 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively (aggregate liquidation preference of $50,179 and $50,589 at June 30, 2022 and December 31, 2021, respectively)		48,081			48,473
Series B: 2,205,882 and 4,411,764 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively (aggregate liquidation preference of $50,765 and $97,277 at June 30, 2022 and December 31, 2021, respectively)		48,717			94,437
Series A: 1,972,427 and 2,023,551 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively (aggregate liquidation preference of $49,311 and $50,589 at September 30, 2022 and December 31, 2021, respectively)								47,249			48,473
Series B: 0 and 4,411,764 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively (aggregate liquidation preference of $0 and $97,277 at September 30, 2022 and December 31, 2021, respectively)								—			94,437

Equity:
Common stock, $0.01 par value: 900,000,000 shares authorized; 40,133,311 and 36,110,659 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively		401			361
Common stock, $0.01 par value: 900,000,000 shares authorized; 42,849,489 and 36,110,659 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively								428			361
Additional paid in capital		604,013			532,666			644,447			532,666
Accumulated deficit		(186,101	)		(177,258	)		(190,728	)		(177,258	)
Accumulated other comprehensive income		15,720			—			32,002			—
Total stockholders' equity		434,033			355,769			486,149			355,769
Non-controlling interest		5,302			4,831			5,563			4,831
Total equity		439,335			360,600			491,712			360,600
Total liabilities, preferred stock and equity	$	1,499,489		$	1,270,805		$	1,531,143		$	1,270,805

The accompanying notes are an integral part of the condensed consolidated financial statements.

PLYMOUTH INDUSTRIAL REIT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(In thousands, except share and per share amounts)


	For the Three Months Ended June 30,						For the Six Months Ended June 30,						For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2022			2021			2022			2021			2022			2021			2022			2021

Rental revenue	$	45,612		$	32,758		$	88,332		$	64,591		$	47,788		$	35,877		$	136,120		$	100,468
Management fee revenue and other income		2			97			88			180			2			85			90			265
Total revenues		45,614			32,855			88,420			64,771			47,790			35,962			136,210			100,733

Operating expenses:
Operating expenses:
Property		13,799			10,940			27,874			22,366			14,495			12,032			42,369			34,398
Depreciation and amortization		24,208			16,902			46,899			32,679			24,860			18,305			71,759			50,984
General and administrative		4,146			3,309			7,698			6,318			4,078			3,264			11,776			9,582
Total operating expenses		42,153			31,151			82,471			61,363			43,433			33,601			125,904			94,964

Other income (expense):
Other income (expense):
Interest expense		(7,925	)		(4,825	)		(14,320	)		(9,583	)		(8,983	)		(4,906	)		(23,303	)		(14,489	)
Earnings (loss) in investment of unconsolidated joint venture		—			(224	)		(147	)		(497	)		—			(178	)		(147	)		(675	)
Loss on extinguishment of debt		—			—			(2,176	)		—			—			—			(2,176	)		—
Gain on sale of real estate		—			—			—			590			—			—			—			590
Unrealized (appreciation) depreciation of warrants		—			(636	)		1,760			(883	)		—			(926	)		1,760			(1,809	)
Total other income (expense)		(7,925	)		(5,685	)		(14,883	)		(10,373	)		(8,983	)		(6,010	)		(23,866	)		(16,383	)

Net loss		(4,464	)		(3,981	)		(8,934	)		(6,965	)		(4,626	)		(3,649	)		(13,560	)		(10,614	)
Less: Net loss attributable to non-controlling interest		(55	)		(71	)		(115	)		(136	)		(55	)		(57	)		(170	)		(193	)
Net loss attributable to Plymouth Industrial REIT, Inc.		(4,409	)		(3,910	)		(8,819	)		(6,829	)		(4,571	)		(3,592	)		(13,390	)		(10,421	)
Less: Preferred stock dividends		1,320			1,652			3,019			3,304
Less: Series B preferred stock accretion to redemption value		750			1,807			2,250			3,614
Less: Preferred Stock dividends														930			1,652			3,949			4,956
Less: Series B Preferred Stock accretion to redemption value														2,371			1,807			4,621			5,421
Less: Loss on extinguishment of Series A Preferred Stock		24			—			24			—			56			—			80			—
Less: Amount allocated to participating securities		65			48			132			105			62			48			194			153
Net loss attributable to common stockholders	$	(6,568	)	$	(7,417	)	$	(14,244	)	$	(13,852	)	$	(7,990	)	$	(7,099	)	$	(22,234	)	$	(20,951	)
Net loss basic and diluted per share attributable to common stockholders	$	(0.17	)	$	(0.25	)	$	(0.38	)	$	(0.49	)	$	(0.19	)	$	(0.22	)	$	(0.57	)	$	(0.71	)

Weighted-average common shares outstanding basic and diluted		39,106,576			29,348,561			37,675,032			28,282,565			41,128,421			32,301,693			38,838,811			29,636,996

The accompanying notes are an integral part of the condensed consolidated financial statements.

PLYMOUTH INDUSTRIAL REIT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
UNAUDITED
(In thousands, except share and per share amounts)


	For the Three Months Ended June 30,						For the Six Months Ended June 30,						For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2022			2021			2022			2021			2022			2021			2022			2021

Net loss	$	(4,464	)	$	(3,981	)	$	(8,934	)	$	(6,965	)	$	(4,626	)	$	(3,649	)	$	(13,560	)	$	(10,614	)

Other comprehensive income:
Unrealized gain (loss) on interest rate swaps		5,860			—			15,928			—			16,476			—			32,404			—
Other comprehensive income		5,860			—			15,928			—			16,476			—			32,404			—
Comprehensive income (loss)		1,396			(3,981	)		6,994			(6,965	)		11,850			(3,649	)		18,844			(10,614	)
Less: Net loss attributable to non-controlling interest		(55	)		(71	)		(115	)		(136	)		(55	)		(57	)		(170	)		(193	)
Less: Other comprehensive income (loss) attributable to non-controlling interest		73			—			208			—			194			—			402			—
Comprehensive income (loss) attributable to Plymouth Industrial REIT, Inc.	$	1,378		$	(3,910	)	$	6,901		$	(6,829	)	$	11,711		$	(3,592	)	$	18,612		$	(10,421	)

The accompanying notes are an integral part of the condensed consolidated financial statements.

PLYMOUTH INDUSTRIAL REIT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PREFERRED STOCK AND EQUITY
UNAUDITED
(In thousands, except share and per share amounts)

	Preferred Stock Series A $0.01 Par Value					Preferred Stock Series B $0.01 Par Value			Common Stock, $0.01 Par Value			Additional Paid in			Accumulated			Accumulated Other Comprehensive		Stockholders’			Non- controlling			Total			Preferred Stock Series A $0.01 Par Value					Preferred Stock Series B $0.01 Par Value			Common Stock, $0.01 Par Value			Additional Paid in			Accumulated			Accumulated Other Comprehensive		Stockholders’			Non- controlling			Total
	Shares		Amount			Shares	Amount		Shares	Amount		Capital			Deficit			Income		Equity			Interest			Equity			Shares		Amount			Shares	Amount		Shares	Amount		Capital			Deficit			Income		Equity			Interest			Equity
Balance January 1, 2021	2,023,999		$	48,485		4,411,764	$	87,209	25,344,161	$	253	$	360,752		$	(162,250	)	$	—	$	198,755		$	4,767		$	203,522		2,023,999		$	48,485		4,411,764	$	87,209	25,344,161	$	253	$	360,752		$	(162,250	)	$	—	$	198,755		$	4,767		$	203,522
Repurchase and extinguishment of Series A Preferred stock	(448	)		(12	)	—		—	—		—		—			—			—		—			—			—
Series B Preferred stock accretion to redemption value	—			—		—		1,807	—		—		(1,807	)		—			—		(1,807	)		—			(1,807	)
Repurchase and extinguishment of Series A Preferred Stock																													(448	)		(12	)	—		—	—		—		—			—			—		—			—			—
Series B Preferred Stock accretion to redemption value																													—			—		—		1,807	—		—		(1,807	)		—			—		(1,807	)		—			(1,807	)
Net proceeds from common stock	—			—		—		—	2,883,794		30		42,480			—			—		42,510			—			42,510		—			—		—		—	2,883,794		30		42,480			—			—		42,510			—			42,510
Stock based compensation	—			—		—		—	—		—		418			—			—		418			—			418		—			—		—		—	—		—		418			—			—		418			—			418
Restricted shares issued	—			—		—		—	110,000		—		—			—			—		—			—			—		—			—		—		—	110,000		—		—			—			—		—			—			—
Dividends and distributions	—			—		—		—	—		—		(7,320	)		—			—		(7,320	)		(121	)		(7,441	)	—			—		—		—	—		—		(7,320	)		—			—		(7,320	)		(121	)		(7,441	)
Net loss	—			—		—		—	—		—		—			(2,919	)		—		(2,919	)		(65	)		(2,984	)	—			—		—		—	—		—		—			(2,919	)		—		(2,919	)		(65	)		(2,984	)
Balance, March 31, 2021	2,023,551		$	48,473		4,411,764	$	89,016	28,337,955	$	283	$	394,523		$	(165,169	)	$	—	$	229,637		$	4,581		$	234,218		2,023,551		$	48,473		4,411,764	$	89,016	28,337,955	$	283	$	394,523		$	(165,169	)	$	—	$	229,637		$	4,581		$	234,218
Series B Preferred stock accretion to redemption value	—			—		—		1,807	—		—		(1,807	)		—			—		(1,807	)		—			(1,807	)
Series B Preferred Stock accretion to redemption value																													—			—		—		1,807	—		—		(1,807	)		—			—		(1,807	)		—			(1,807	)
Net proceeds from common stock	—			—		—		—	2,646,854		26		48,558			—			—		48,584			—			48,584		—			—		—		—	2,646,854		26		48,558			—			—		48,584			—			48,584
Stock based compensation	—			—		—		—	—		—		461			—			—		461			—			461		—			—		—		—	—		—		461			—			—		461			—			461
Restricted shares issued	—			—		—		—	5,000		—		—			—			—		—			—			—		—			—		—		—	5,000		—		—			—			—		—			—			—
Redemption of partnership units	—			—		—		—	99,118		1		1,684			—			—		1,685			(1,685	)		—		—			—		—		—	99,118		1		1,684			—			—		1,685			(1,685	)		—
Reallocation of non-controlling interest	—			—		—		—	—		—		(1,078	)		—			—		(1,078	)		1,078			—		—			—		—		—	—		—		(1,078	)		—			—		(1,078	)		1,078			—
Dividends and distributions	—			—		—		—	—		—		(8,180	)		—			—		(8,180	)		(106	)		(8,286	)	—			—		—		—	—		—		(8,180	)		—			—		(8,180	)		(106	)		(8,286	)
Net loss	—			—		—		—	—		—		—			(3,910	)		—		(3,910	)		(71	)		(3,981	)	—			—		—		—	—		—		—			(3,910	)		—		(3,910	)		(71	)		(3,981	)
Balance, June 30, 2021	2,023,551		$	48,473		4,411,764	$	90,823	31,088,927	$	310	$	434,161		$	(169,079	)	$	—	$	265,392		$	3,797		$	269,189		2,023,551		$	48,473		4,411,764	$	90,823	31,088,927	$	310	$	434,161		$	(169,079	)	$	—	$	265,392		$	3,797		$	269,189
Series B Preferred Stock accretion to redemption value																													—			—		—		1,807	—		—		(1,807	)		—			—		(1,807	)		—			(1,807	)
Net proceeds from common stock																													—			—		—		—	3,173,883		32		69,258			—			—		69,290			—			69,290
Stock based compensation																													—			—		—		—	—		—		340			—			—		340			—			340
Restricted shares issued																													—			—		—		—	10,434		1		—			—			—		1			—			1
Reallocation of non-controlling interest																													—			—		—		—	—		—		(1,100	)		—			—		(1,100	)		1,100			—
Dividends and distributions																													—			—		—		—	—		—		(8,849	)		—			—		(8,849	)		(106	)		(8,955	)
Net loss																													—			—		—		—	—		—		—			(3,592	)		—		(3,592	)		(57	)		(3,649	)
Balance, September 30, 2021																													2,023,551		$	48,473		4,411,764	$	92,630	34,273,244	$	343	$	492,003		$	(172,671	)	$	—	$	319,675		$	4,734		$	324,409

The accompanying notes are an integral part of the condensed consolidated financial statements.

PLYMOUTH INDUSTRIAL REIT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
(In thousands)


	For the Six Months Ended June 30,						For the Nine Months Ended September 30,
	2022			2021			2022			2021
Operating activities
Net loss	$	(8,934	)	$	(6,965	)	$	(13,560	)	$	(10,614	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		46,899			32,679			71,759			50,984
Straight line rent adjustment		(1,726	)		(1,760	)		(3,045	)		(2,726	)
Intangible amortization in rental revenue, net		(2,091	)		(1,109	)		(2,632	)		(1,589	)
Loss on extinguishment of debt		2,176			—			2,176			—
Amortization of debt related costs		1,032			739			1,597			1,163
Unrealized appreciation (depreciation) of warrants		(1,760	)		883			(1,760	)		1,809
Stock based compensation		980			879			1,498			1,219
(Earnings) loss in investment of unconsolidated joint venture		147			497			147			675
Gain on sale of real estate		—			(590	)		—			(590	)
Changes in operating assets and liabilities:
Other assets		1,146			706			1,160			(6,720	)
Deferred leasing costs		(2,107	)		(2,103	)		(4,316	)		(3,363	)
Accounts payable, accrued expenses and other liabilities		(103	)		2,761			5,828			4,299
Net cash provided by operating activities		35,659			26,617			58,852			34,547

Investing activities
Acquisition of real estate properties		(180,275	)		(76,023	)		(197,085	)		(166,374	)
Real estate improvements		(17,464	)		(7,718	)		(39,687	)		(15,630	)
Proceeds from sale of real estate, net		222			2,204			222			2,204
Net cash used in investing activities		(197,517	)		(81,537	)		(236,550	)		(179,800	)

Financing activities
Proceeds from issuance of common stock, net		41,507			91,094			58,319			160,386
Repayment of secured debt		(18,073	)		(2,667	)		(19,621	)		(4,019	)
Proceeds from issuance of unsecured debt		150,000			—			150,000			150,000
Proceeds from line of credit facility		161,000			42,000			203,000			51,000
Repayment of line of credit facility		(158,500	)		(64,000	)		(173,500	)		(141,000	)
Repurchase of Series A Preferred Stock		(416	)		(12	)		(1,304	)		(12	)
Redemption of Series B Preferred Stock								(15,000	)		—
Debt issuance costs		(1,690	)		—			(1,798	)		(1,691	)
Dividends and distributions paid		(19,278	)		(14,235	)		(29,519	)		(22,522	)
Net cash provided by financing activities		154,550			52,180			170,577			192,142

Net (decrease) increase in cash, cash held in escrow, and restricted cash		(7,308	)		(2,740	)		(7,121	)		46,889
Cash, cash held in escrow, and restricted cash at beginning of period		43,374			32,054			43,374			32,054
Cash, cash held in escrow, and restricted cash at end of period	$	36,066		$	29,314		$	36,253		$	78,943

Supplemental Cash Flow Disclosures:
Cash paid for interest	$	12,588		$	8,916		$	20,645		$	13,357
Assumption of cash, cash held in escrow, and restricted cash upon consolidation of investment in joint venture	$	2,895		$	—		$	2,895		$	—

Supplemental Non-cash Financing and Investing Activities:
Dividends declared included in dividends payable	$	9,204		$	7,232		$	9,427		$	7,900
Distribution payable to non-controlling interest holder	$	108		$	106		$	108		$	106
Series B accretion to redemption value	$	2,250		$	3,614		$	4,621		$	5,421
Real estate improvements included in accounts payable, accrued expenses and other liabilities	$	6,373		$	1,960		$	5,261		$	3,497
Deferred leasing costs included in accounts payable, accrued expenses and other liabilities	$	1,809		$	248		$	634		$	1,373
Assumption of secured debt							$	—		$	10,820
Conversion of common stock warrants	$	3,758		$	—		$	3,758		$	—
Conversion of Series B Preferred Stock	$	47,970		$	—		$	84,058		$	—
Consolidation of net book value of investment in joint venture	$	5,686		$	—		$	5,686		$	—
Assumption of other assets upon consolidation of investment in joint venture	$	638		$	—		$	638		$	—
Assumption of accounts payable, accrued expenses and other liabilities upon consolidation of investment in joint venture	$	1,955		$	—		$	1,955		$	—
Assumption of secured debt upon consolidation of investment in joint venture	$	56,000		$	—		$	56,000		$	—

The accompanying notes are an integral part of the condensed consolidated financial statements.

Plymouth Industrial REIT, Inc.
Notes to Condensed Consolidated Financial Statements
Unaudited
(all dollar amounts in thousands, except share and per share data)

Plymouth Industrial REIT, Inc., (the “Company”, “we” or the “REIT”) is a Maryland corporation formed on March 7, 2011. The Company is structured as an umbrella partnership REIT, commonly called an UPREIT, and owns substantially all of its assets and conducts substantially all of its business through its operating partnership, Plymouth Industrial Operating Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”). The Company, as general partner of the Operating Partnership, controls the Operating Partnership and consolidates the assets, liabilities, and results of operations of the Operating Partnership. As of ~~June~~September 30, 2022 and December 31, 2021, the Company owned a ~~98.8~~98.9% and 98.7%, respectively, equity interest in the Operating Partnership.

The Company is a real estate investment trust focused on the acquisition, ownership and management of single and multi-tenant industrial properties, including distribution centers, warehouses, light industrial and small bay industrial properties, located in primary and secondary markets within the main industrial, distribution and logistics corridors of the United States. As of ~~June~~September 30, 2022, the Company, through its subsidiaries, owned ~~156~~157 industrial properties comprising ~~206~~207 buildings with an aggregate of approximately ~~33.6~~33.8 million square feet, and our regional property management office building located in Columbus, Ohio totaling approximately 17,260 square feet.

The accounting policies underlying the accompanying unaudited condensed consolidated financial statements are those set forth in the Company's audited financial statements for the years ended December 31, 2021 and 2020. Additional information regarding the Company’s significant accounting policies related to the accompanying interim financial statements is as follows:

The Company’s interim condensed consolidated financial statements include the accounts of the Company, the Operating Partnership and their subsidiaries. The interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). All significant intercompany transactions have been eliminated in consolidation. These interim condensed consolidated financial statements include adjustments of a normal and recurring nature considered necessary by management to fairly present the Company's financial position and results of operations. These interim condensed consolidated financial statements may not be indicative of financial results for the full year. These interim condensed consolidated financial statements and notes thereto should be read in conjunction with the Company's audited consolidated financial statements and the notes thereto for the years ended December 31, 2021 and 2020 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 as filed with the United States Securities and Exchange Commission on February 23, 2022.

We consolidate all entities that are wholly owned and those in which we own less than 100% but control, as well as any variable interest entities (“VIEs”) in which we are the primary beneficiary. We evaluate our ability to control an entity and whether the entity is a variable interest entity and we are the primary beneficiary through consideration of the substantive terms of the arrangement to identify which enterprise has the power to direct the activities of a variable interest entity that most significantly impacts the entity’s economic performance and the obligation to absorb losses of the entity or the right to receive benefits from the entity. Investments in entities in which we do not control but over which we have the ability to exercise significant influence over operating and financial policies are presented under the equity method. Investments in entities that we do not control and over which we do not exercise significant influence are carried at the lower of cost or fair value, as appropriate. Our ability to correctly assess our influence and/or control over an entity affects the presentation of these investments in our condensed consolidated financial statements.

Consolidated VIEs are those for which the Company is considered to be the primary beneficiary of a VIE. The primary beneficiary is the entity that has a controlling financial interest in the VIE, which is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance and (2) the obligation to absorb losses or the right to receive the returns from the VIE that could potentially be significant to the VIE. The Company has determined that the Operating Partnership is a VIE and the Company is the primary beneficiary. The Company's only significant asset is its investment in the Operating Partnership, therefore, substantially all of the Company’s assets and liabilities are the assets and liabilities of the Operating Partnership.

Plymouth Industrial REIT, Inc.
Notes to Condensed Consolidated Financial Statements
Unaudited
(all dollar amounts in thousands, except share and per share data)

The state of the overall economy can significantly impact the Company’s operational performance and thus impact its financial position. Should the Company experience a significant decline in operational performance, it may affect the Company’s ability to make distributions to its stockholders, service debt, or meet other financial obligations.

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management makes significant estimates regarding the allocation of tangible and intangible assets of real estate acquisitions, impairments of long-lived assets, stock-based compensation and its common stock warrants liability. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management adjusts such estimates when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from those estimates and assumptions.

The Company has one reportable segment, industrial properties. These properties have similar economic characteristics and meet the other criteria that permit the properties to be aggregated into one reportable segment.

Minimum rental revenue from real estate operations is recognized on a straight-line basis. The straight-line rent calculation on leases includes the effects of rent concessions and scheduled rent increases, and the calculated straight-line rent income is recognized over the lives of the individual leases. In accordance to ASC 842, we assess the collectability of lease receivables (including future minimum rental payments) both at commencement and throughout the lease term. If our assessment of collectability changes during the lease term, any difference between the revenue that would have been received under the straight-line method and the lease payments that have been collected will be recognized as a current period adjustment to rental revenue. Rental revenue associated with leases where collectability has been deemed less than probable is recognized on a cash basis in accordance with ASC 842. Management fee revenue represents management fees earned from the unconsolidated joint venture. For the ~~six~~nine months ended ~~June~~September 30, 2022, we recognized fees of $82 related to asset management services we provided to the unconsolidated joint venture.

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents at ~~June~~September 30, 2022 and December 31, 2021. The Company maintains cash and restricted cash, which includes tenant security deposits and cash collateral for its borrowings discussed in Note 6, and cash held in escrow for real estate tax, insurance, tenant capital improvements and leasing commissions, in bank deposit accounts, which at times may exceed federally insured limits. As of ~~June~~September 30, 2022, the Company has not realized any losses in such cash accounts and believes it mitigates its risk of loss by depositing its cash and restricted cash in highly rated financial institutions.

The following table presents a reconciliation of cash, cash held in escrow and restricted cash reported within our condensed consolidated balance sheets to amounts reported within our condensed consolidated statements of cash flows:

Summary of Significant Accounting Policies - Schedule of Cash, Cash Equivalents and Restricted Cash

	June 30,		December 31,		September 30,		December 31,
	2022		2021		2022		2021
Cash	$	16,566	$	26,232	$	16,341	$	26,232
Cash held in escrow		13,055		11,893		13,156		11,893
Restricted cash		6,445		5,249		6,756		5,249
Cash, cash held in escrow, and restricted cash	$	36,066	$	43,374	$	36,253	$	43,374

Plymouth Industrial REIT, Inc.
Notes to Condensed Consolidated Financial Statements
Unaudited
(all dollar amounts in thousands, except share and per share data)

The Company applies various valuation approaches in determining the fair value of its financial assets and liabilities within a hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The fair value hierarchy is broken down into three levels based on the source of inputs as follows:

Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level input that is significant to the overall fair value measurement. Level 3 inputs are applied in determining the fair value of our debt, interest rate swaps and warrants to purchase common stock, discussed in Notes 6, 7 and 8, respectively.

Financial instruments, including cash, restricted cash, cash held in escrow, accounts receivable, accounts payable, accrued expenses and other current liabilities, are considered Level 1 in fair value hierarchy. The amounts reported on the condensed consolidated balance sheets for these financial instruments approximate their fair value due to their relatively short maturities and prevailing interest rates. Derivative financial instruments are considered Level 2 in the fair value hierarchy as discussed in Note 7.

We record all derivatives on the accompanying consolidated balance sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. We may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply, or we elect not to apply hedge accounting.

In accordance with fair value measurement guidance, we made an accounting policy election to measure the credit risk of our derivative financial instruments that are subject to master netting arrangements on a net basis by the counterparty portfolio. Credit risk is the risk of failure of the counterparty to perform under the terms of the contract. We minimize the credit risk in our derivative financial instruments by entering into transactions with various high-quality counterparties. Our exposure to credit risk at any point is generally limited to amounts recorded as assets on the accompanying condensed consolidated balance sheets.

Debt issuance costs other than those associated with the revolving line of credit facility are reflected as a reduction to the respective loan amounts in the form of a debt discount. Amortization of this expense is included in interest expense in the condensed consolidated statements of operations.

Plymouth Industrial REIT, Inc.
Notes to Condensed Consolidated Financial Statements
Unaudited
(all dollar amounts in thousands, except share and per share data)

Debt issuance costs amounted to $~~10,680~~10,786 and $9,710 at ~~June~~September 30, 2022 and December 31, 2021, respectively, and related accumulated amortization amounted to $~~5,395~~5,784 and $4,689 at ~~June~~September 30, 2022 and December 31, 2021, respectively. At ~~June~~September 30, 2022 and December 31, 2021, the Company has classified net unamortized debt issuance costs of $~~2,752~~2,529 and $2,405, respectively, related to borrowings under the line of credit to other assets in the condensed consolidated balance sheets.

The Company grants stock-based compensation awards to our employees and directors typically in the form of restricted shares of common stock. The Company measures stock-based compensation expense based on the fair value of the awards on the grant date and recognizes the expense ratably over the vesting period. Forfeitures of unvested shares are recognized in the period the forfeiture occurs.

The Company follows the two-class method when computing net earnings (loss) per common share as the Company has issued shares that meet the definition of participating securities. The two-class method determines net earnings (loss) per share for each class of common and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income available to common stockholders for the period to be allocated between common and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. Diluted net loss per share is the same as basic net loss per share since the Company does not have any common stock equivalents such as stock options. The common stock warrants are not included in the computation of diluted net loss per share as they are anti-dilutive for the periods presented.

Investment in unconsolidated joint venture represents a non-controlling equity interest in a joint venture we entered into during October 2020. The Company determined that the venture is not a VIE in accordance with the accounting standard for the consolidation of VIEs. As a result, the Company used the voting interest model under the accounting standard for consolidation in order to determine whether to consolidate the investment in unconsolidated joint venture. We have concluded that we have the ability to exercise significant influence; however, we do not have control or kick out rights and therefore the investment in the unconsolidated joint venture is accounted for under the equity method of accounting. Accordingly, we initially recorded our investment at cost, and subsequently adjust for equity in earnings or losses and cash contributions and distributions. Any difference between the carrying amount of these investments on the condensed consolidated balance sheets and the underlying equity in net assets will be amortized as an adjustment to equity in earnings (loss) in investment of unconsolidated joint venture over the life of the related asset. Our net equity investment in the joint venture is reflected within the condensed consolidated balance sheets, and our share of net income or loss from the joint venture is included within the condensed consolidated statements of operations.

On March 11, 2022, the Company acquired full ownership of the unconsolidated joint venture as discussed in Note 4.

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04 Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform-related activities that impact debt, leases, derivatives, and other contracts. The guidance in ASU 2020-04 was effective upon issuance on a prospective basis beginning January 1, 2020, and may be elected over time as reference rate activities occur. During the second quarter of 2022, we elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future London Inter-bank Offered Rate (“LIBOR”) indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding instrument. To date, the adoption of ASU 2020-04 has not had a material impact on our condensed consolidated financial statements.

In March 2021, the Financial Conduct Authority formally announced that the publication of LIBOR was ending and confirmed that U.S. dollar LIBOR-indexed rates would cease to be published after June 30, 2023. For derivative financial instruments that are currently indexed to U.S dollar London Inter-bank Offered (“LIBOR”) as of June 30, 2022, we anticipate future modifications to these derivative financial instruments will not have a material impact on our condensed consolidated financial statements.

Plymouth Industrial REIT, Inc.
Notes to Condensed Consolidated Financial Statements
Unaudited
(all dollar amounts in thousands, except share and per share data)

Real estate properties consisted of the following at ~~June~~September 30, 2022 and December 31, 2021:

	June 30,			December 31,			September 30,			December 31,
	2022			2021			2022			2021
Land	$	229,631		$	201,164		$	231,829		$	201,164
Buildings and improvements		1,112,522			930,678			1,127,172			930,678
Site improvements		129,510			108,756			132,295			108,756
Construction in progress		30,254			13,409			47,120			13,409
		1,501,917			1,254,007			1,538,416			1,254,007
Less: accumulated depreciation		(172,678	)		(142,192	)		(189,170	)		(142,192	)
Real estate properties, net	$	1,329,239		$	1,111,815		$	1,349,246		$	1,111,815

Depreciation expense was $~~16,093~~16,565 and $~~10,760~~11,466 for the three months ended ~~June~~September 30, 2022 and 2021, respectively, and $~~30,486~~47,051 and $~~20,902~~32,368 for the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, respectively.

The Company made the following acquisitions of properties during the ~~six~~nine months ended ~~June~~September 30, 2022:

Location	Date Acquired	Square Feet	Properties	Purchase Price (in thousands) ⁽¹⁾			Date Acquired	Square Feet	Properties	Purchase Price (in thousands) ⁽¹⁾
Atlanta, GA	January 20, 2022	150,000	1	$	9,750		January 20, 2022	150,000	1	$	9,750
Jacksonville, FL	February 7, 2022	85,920	1		12,300		February 7, 2022	85,920	1		12,300
Cincinnati, OH; Columbus, OH; Indianapolis, IN	February 24, 2022	678,745	3		43,250		February 24, 2022	678,745	3		43,250
Memphis, TN	March 11, 2022	2,320,773	16		106,508	⁽²⁾	March 11, 2022	2,320,773	16		106,508	⁽²⁾
Memphis, TN	March 11, 2022	67,557	1		8,150		March 11, 2022	67,557	1		8,150
Atlanta, GA	March 15, 2022	200,000	1		12,500		March 15, 2022	200,000	1		12,500
St. Louis, MO	April 6, 2022	76,485	1		8,450		April 6, 2022	76,485	1		8,450
Chicago, IL	April 14, 2022	78,743	1		7,300		April 14, 2022	78,743	1		7,300
Cincinnati, OH; Cleveland, OH	May 18, 2022	153,903	2		12,700		May 18, 2022	153,903	2		12,700
Charlotte, NC	May 19, 2022	155,220	1		20,400		May 19, 2022	155,220	1		20,400
Cleveland, OH							July 7, 2022	197,518	1		16,500
Total		3,967,346	28	$	241,308			4,164,864	29	$	257,808

Plymouth Industrial REIT, Inc.
Notes to Condensed Consolidated Financial Statements
Unaudited
(all dollar amounts in thousands, except share and per share data)

The allocation of the aggregate purchase price in accordance with Financial Accounting Standards Board, (FASB), ASU 2017-01 (Topic 805) “Business Combinations,” of the assets and liabilities acquired at their relative fair values as of their acquisition date, is as follows:

Real Estate Properties - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed


	Six Months Ended June 30, 2022					Nine Months Ended September 30, 2022
Purchase price allocation	Purchase Price			Weighted Average Amortization Period (years) of Intangibles at Acquisition		Purchase Price			Weighted Average Amortization Period (years) of Intangibles at Acquisition
Total Purchase Price
Purchase price	$	241,308			N/A	$	257,808		N/A
Acquisition costs		1,970			N/A		2,280		N/A
Total	$	243,278				$	260,088

Allocation of Purchase Price
Land	$	28,689			N/A	$	30,887		N/A
Building		176,230			N/A		186,710		N/A
Site improvements		20,753			N/A		23,538		N/A
Total real estate properties		225,672					241,135

Deferred Lease Intangibles
Tenant relationships		3,082			3.7		3,429		3.8
Leasing commissions		2,391			4.0		2,678		4.0
Above market lease value		732			4.3		732		4.3
Below market lease value		(2,520	)		7.4		(2,520	)	7.4
Lease in place value		13,654			3.6		14,367		3.7
Net deferred lease intangibles		17,339					18,686
Assumed debt – market value (Above)/below assumed market debt value		267			5.8		267		5.8
Totals	$	243,278				$	260,088

All acquisitions completed during the ~~six~~nine months ended ~~June~~September 30, 2022 were considered asset acquisitions under ASC 805.

On October 23, 2020, a wholly owned subsidiary of the Operating Partnership entered into a $150,000 equity joint venture agreement (the “MIR JV”) with an unrelated third-party partner (the “MIR JV Partner”). The purpose of the MIR JV agreement is to acquire value-add/opportunistic industrial properties that meet certain criteria as outlined within the MIR JV agreement. The Operating Partnership owns a 20% interest in the MIR JV. The Operating Partnership is responsible for the day-to-day oversight of the MIR JV, its subsidiaries and properties and is entitled to an annual asset management fee equal to 1% of total equity contributed to the MIR JV by the partners paid quarterly as well as a promote based on return thresholds as set forth in the MIR JV agreement. The MIR JV completed its initial investment of a 28-building portfolio of industrial buildings totaling approximately 2.3 million square feet in metropolitan Memphis, Tennessee on December 17, 2020 for $86,000. The initial investment was funded by the MIR JV via $30,000 cash equity contributions to the MIR JV on a 20%/80% pro-rata basis and a 7-year secured mortgage for $56,000.

On March 11, 2022, the Company acquired the remaining 80% interest in the MIR JV from the MIR JV Partner for $46,401, as well as the assumption of the $56,000 secured mortgage. Upon the completion of the acquisition of the MIR JV Partner’s interest, the Company fully consolidated the former MIR JV assets and liabilities into its condensed consolidated financial statements. Assets consolidated included the 28-building portfolio of industrial buildings and financial assets of approximately $3,533, comprised of cash, cash held in escrow, other assets and the net book value of our 20% investment in the former MIR JV of $5,686. Liabilities consolidated included the 7-year secured mortgage of $56,000 and approximately $1,955 accounts payable, accrued expenses and other current liabilities.

Plymouth Industrial REIT, Inc.
Notes to Condensed Consolidated Financial Statements
Unaudited
(all dollar amounts in thousands, except share and per share data)

We lease our properties to tenants under agreements that are classified as operating leases. We recognize the total minimum lease payments provided for under the leases on a straight-line basis over the lease term. Many of our leases include the recovery of certain operating expenses such as common area maintenance, insurance, real estate taxes and utilities from our tenants. The recovery of such operating expenses is recognized in rental revenue in the condensed consolidated statements of operations. Some of our tenants’ leases are subject to changes in the Consumer Price Index (“CPI”).

The Company includes accounts receivable and straight-line rent receivables within other assets in the condensed consolidated balance sheets. For the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, rental revenue was derived from various tenants. As such, future receipts are dependent upon the financial strength of the lessees and their ability to perform under the lease agreements.


	Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021			2022			2021			2022			2021
Income from leases	$	33,362		$	23,865		$	63,946		$	47,312		$	34,886		$	26,008		$	98,832		$	73,320
Straight-line rent adjustments		904			1,146			1,726			1,760			1,319			966			3,045			2,726
Tenant recoveries		10,801			7,131			20,569			14,410			11,042			8,423			31,611			22,833
Amortization of above market leases		(198	)		(288	)		(364	)		(587	)		(184	)		(237	)		(548	)		(824	)
Amortization of below market leases		743			904			2,455			1,696			725			717			3,180			2,413
Total	$	45,612		$	32,758		$	88,332		$	64,591		$	47,788		$	35,877		$	136,120		$	100,468

Tenant recoveries included within rental revenue for the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021 are variable in nature.

As of ~~June~~September 30, 2022, we have five office space operating leases and a single ground operating sublease. The office lease agreements do not contain residual value guarantees or an option to renew. The ground sublease agreement does not contain residual value guarantees and includes multiple options to extend the sublease between nineteen and twenty years for each respective ~~option~~.option. The operating leases have remaining lease terms ranging from ~~1.9~~1.7 years to ~~33.5~~33.3 years, which includes the exercise of a single twenty-year renewal option pertaining to the ground sublease. As of ~~June~~September 30, 2022, total operating right of use assets and lease liabilities were approximately $~~6,130~~5,918 and $~~7,345~~7,097, respectively. The operating lease liability as of ~~June~~September 30, 2022 represents a weighted-average incremental borrowing rate of ~~4.1~~4.0% over the weighted-average remaining lease term of ~~8.9~~8.8 years. The incremental borrowing rate is our estimated borrowing rate on a fully-collateralized basis for the term of the respective leases.

The following table summarizes the operating lease expense recognized during the three and ~~six~~nine months ended ~~June~~September 30, 2022 and 2021 included in the Company’s condensed consolidated statements of operations.


	Three Months Ended June 30,				Six Months Ended June 30,				Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021		2022		2021		2022		2021
Operating lease expense included in general and administrative expense attributable to office leases	$	207	$	188	$	422	$	370	$	210	$	216	$	632	$	586
Operating lease expense included in property expense attributable to ground sublease		9		9		18		29		9		9		27		38
Non-cash adjustment due to straight-line rent adjustments		25		17		50		104		28		18		78		122
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)	$	241	$	214	$	490	$	503	$	247	$	243	$	737	$	746

Plymouth Industrial REIT, Inc.
Notes to Condensed Consolidated Financial Statements
Unaudited
(all dollar amounts in thousands, except share and per share data)

The following table summarizes the maturity analysis of our operating leases, which is discounted by our incremental borrowing rate to calculate the lease liability as included in accounts payable, accrued expenses and other liabilities in the Company’s condensed consolidated balance sheets for the operating leases in which we are the lessee (in thousands):

Leases - Schedule of Lessee Future Minimum Rental Commitments under Non-Cancellable Leases


July 1, 2022 – December 31, 2022	$	646
October 1, 2022 – December 31, 2022				$	324
2023		1,311			1,311
2024		1,280			1,280
2025		894			894
2026		801			803
Thereafter		4,311			4,309
Total minimum operating lease payments	$	9,243		$	8,921
Less imputed interest		(1,898	)		(1,824	)
Total operating lease liability	$	7,345		$	7,097

As of ~~June~~September 30, 2022, we have a single finance lease in which we are the sublessee for a ground lease. The Company includes the financing lease right of use asset within real estate properties and the corresponding liability within financing lease liability in the condensed consolidated balance sheets. The ground sublease agreement does not contain a residual value guarantee and includes multiple options to extend the sublease between nineteen and twenty years for each respective option. The lease has a remaining lease term of approximately ~~33.5~~33.3 years, which includes the exercise of a single twenty-year renewal option. The financing lease liability as of ~~June~~September 30, 2022 represents a weighted-average incremental borrowing rate of 7.8% over the weighted-average remaining lease term of ~~33.5~~33.3 years. The incremental borrowing rate is our estimated borrowing rate on a fully-collateralized basis for the term of the respective lease.

The following table summarizes the financing lease expense recognized during the three and ~~six~~nine months ended ~~June~~September 30, 2022 and 2021 included in the Company’s condensed consolidated statements of operations.


	Three Months Ended June 30,				Six Months Ended June 30,				Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021		2022		2021		2022		2021
Depreciation/amortization of financing lease right-of-use assets	$	7	$	6	$	14	$	13	$	7	$	6	$	21	$	19
Interest expense for financing lease liability		44		43		88		87		44		43		132		130
Total financing lease cost	$	51	$	49	$	102	$	100	$	51	$	49	$	153	$	149

The following table summarizes the maturity analysis of our financing lease (in thousands):


July 1, 2022 – December 31, 2022	$	77
October 1, 2022 – December 31, 2022				$	39
2023		155			155
2024		155			155
2025		170			170
2026		170			170
Thereafter		6,537			6,537
Total minimum financing lease payments	$	7,264		$	7,226
Less imputed interest		(5,027	)		(4,983	)
Total financing lease liability	$	2,237		$	2,243

Plymouth Industrial REIT, Inc.
Notes to Condensed Consolidated Financial Statements
Unaudited
(all dollar amounts in thousands, except share and per share data)

The following table sets forth a summary of the Company’s borrowings outstanding under its respective secured debt, unsecured line of credit and unsecured debt as of ~~June~~September 30, 2022 and December 31, 2021.

	Outstanding Balance at								Outstanding Balance at
Debt	June 30, 2022			December 31, 2021			Interest rate at June 30, 2022	Final Maturity Date	September 30, 2022			December 31, 2021			Interest rate at September 30, 2022	Final Maturity Date
Secured debt:
AIG Loan	$	113,131		$	114,477		4.08%	November 1, 2023	$	112,449		$	114,477		4.08%	November 1, 2023
Transamerica Loan		68,061			68,709		4.35%	August 1, 2028		67,731			68,709		4.35%	August 1, 2028
Allianz Loan		62,935			63,115		4.07%	April 10, 2026		62,663			63,115		4.07%	April 10, 2026
Minnesota Life Loan		20,238			20,453		3.78%	May 1, 2028		20,129			20,453		3.78%	May 1, 2028
Minnesota Life Memphis Industrial Loan⁽¹⁾		56,000			—		3.15%	January 1, 2028		56,000			—		3.15%	January 1, 2028
JPMorgan Chase Loan⁽²⁾		—			13,205		5.23%	January 1, 2027		—			13,205		5.23%	January 1, 2027
Ohio National Life Mortgage		19,356			19,660		4.14%	August 1, 2024		19,201			19,660		4.14%	August 1, 2024
Nationwide Loan		15,000			15,000		2.97%	October 1, 2027		15,000			15,000		2.97%	October 1, 2027
Lincoln Life Gateway Mortgage		28,800			28,800		3.43%	January 1, 2028		28,800			28,800		3.43%	January 1, 2028
Midland National Life Insurance Mortgage		10,820			10,820		3.50%	March 10, 2028		10,820			10,820		3.50%	March 10, 2028
Total secured debt	$	394,341		$	354,239				$	392,793		$	354,239
Unamortized debt issuance costs, net		(2,410	)		(2,861	)				(2,185	)		(2,861	)
Unamortized premium/(discount), net		384			697					336			697
Total secured debt, net	$	392,315		$	352,075				$	390,944		$	352,075

Unsecured debt:
$100m KeyBank Term Loan⁽³⁾		100,000			100,000		2.80%⁽⁴⁾	August 11, 2026		100,000			100,000		3.10%⁽⁴⁾⁽⁵⁾	August 11, 2026
$200m KeyBank Term Loan⁽³⁾		200,000			200,000		2.80%⁽⁴⁾	February 11, 2027		200,000			200,000		3.08%⁽⁴⁾⁽⁵⁾	February 11, 2027
$150m KeyBank Term Loan⁽³⁾		150,000			—		2.80%⁽⁴⁾	May 2, 2027		150,000			—		4.50%⁽⁴⁾⁽⁵⁾	May 2, 2027
Total unsecured debt	$	450,000		$	300,000				$	450,000		$	300,000
Unamortized debt issuance costs, net		(2,874	)		(2,160	)				(2,818	)		(2,160	)
Total unsecured debt, net	$	447,126		$	297,840				$	447,182		$	297,840

Borrowings under line of credit:
KeyBank unsecured line of credit⁽³⁾		40,500			38,000		3.01%⁽⁴⁾	August 11, 2025		67,500			38,000		4.16%⁽⁴⁾	August 11, 2025
Total borrowings under line of credit	$	40,500		$	38,000				$	67,500		$	38,000

Plymouth Industrial REIT, Inc.
Notes to Condensed Consolidated Financial Statements
Unaudited
(all dollar amounts in thousands, except share and per share data)

The Company is in compliance with all respective financial covenants for our secured and unsecured debt and unsecured line of credit as of ~~June~~September 30, 2022.

The fair value of our debt and borrowings under line of credit was estimated using Level 3 inputs by calculating the present value of principal and interest payments, using discount rates that best reflect current market interest rates for financings with similar characteristics and credit quality, and assuming each loan is outstanding through its maturity.

The following table summarizes the aggregate principal outstanding under the Company’s indebtedness and the corresponding estimate of fair value as of ~~June~~September 30, 2022 and December 31, 2021:


	June 30, 2022					December 31, 2021					September 30, 2022					December 31, 2021
Indebtedness (in thousands)	Principal Outstanding			Fair Value		Principal Outstanding			Fair Value		Principal Outstanding			Fair Value		Principal Outstanding			Fair Value
Secured debt	$	394,341		$	390,324	$	354,239		$	369,459	$	392,793		$	370,473	$	354,239		$	369,459
Unsecured debt		450,000			450,000		300,000			300,000		450,000			450,000		300,000			300,000
Borrowings under line of credit, net		40,500			40,500		38,000			38,000		67,500			67,500		38,000			38,000
Total		884,841		$	880,824		692,239		$	707,459		910,293		$	887,973		692,239		$	707,459
Unamortized debt issuance cost, net		(5,284	)				(5,021	)				(5,003	)				(5,021	)
Unamortized premium/(discount), net		384					697					336					697
Total carrying value	$	879,941				$	687,915				$	905,626				$	687,915

The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings.

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2022, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. There were no such derivatives during 2021.

~~The following table sets forth a summary of our interest rate swaps as of June 30, 2022 and December 31, 2021.~~16

~~Derivative Financial Instruments - Schedule of Interest Rate Derivatives~~

Notional Value⁽¹⁾ Fair Value⁽²⁾
Interest Rate Swap
Counterparty Trade
Date Effective
Date Maturity
Date LIBOR Interest
Strike Rate⁽³⁾ June 30,
2022 December 31,
2021 June 30,
2022 December 31,
2021
Capital One, N.A. January 28, 2022 February 1, 2022 February 11, 2027 1.609% $ 200,000 $ — $ 10,900 $ —
JPMorgan Chase Bank, N.A. January 28, 2022 February 1, 2022 August 8, 2026 1.591% $ 100,000 $ — $ 5,028 $ —

~~_______________~~

~~(1)~~	~~Represents the notional value of interest rate swaps effective as of June 30, 2022.~~
~~(2)~~	~~As of June 30, 2022, all our interest rate swaps were in an asset position.~~
~~(3)~~	~~Both interest rate swaps were transitioned to SOFR on July 13, 2022. See note 14 for additional disclosure.~~

Plymouth Industrial REIT, Inc.
Notes to Condensed Consolidated Financial Statements
Unaudited
(all dollar amounts in thousands, except share and per share data)

The following table sets forth a summary of our interest rate swaps as of September 30, 2022 and December 31, 2021.

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income (“AOCI”) and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt.

The following table sets forth the impact of our interest rate swaps on our condensed consolidated financial statements for the three and ~~six~~nine months ended ~~June~~September 30, 2022 and 2021.

Derivative Financial Instruments - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The Company’s valuation of the interest rate swaps is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs including interest rate curves.

The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of ~~June~~September 30, 2022, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.

Plymouth Industrial REIT, Inc.
Notes to Condensed Consolidated Financial Statements
Unaudited
(all dollar amounts in thousands, except share and per share data)

The following table summarizes the Company’s interest rate swaps that are accounted for at fair value on a recurring basis as of ~~June~~September 30, 2022.

Level 2			Fair Value Measurements as of June 30, 2022 Using								Fair Value Measurements as of September 30, 2022 Using
Balance Sheet Line Item	Fair Value as of June 30, 2022		Level 1		Level 2		Level 3		Fair Value as of September 30, 2022		Level 1		Level 2		Level 3
Interest rate swaps - Asset	$	15,928	$	—	$	15,928	$	—	$	32,404	$	—	$	32,404	$	—

The Company does not use derivatives for trading or speculative purposes and currently does not have any derivatives that are not designated as hedges. Changes in the fair value of derivatives not designated in hedging relationships would be recorded directly in earnings.

The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. Specifically, the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness.

As of ~~June~~September 30, 2022, the Company does not have any derivatives in a net liability position. As of ~~June~~September 30, 2022, the Company has not posted any collateral related to these agreements. If the Company had breached any of these provisions at ~~June~~September 30, 2022, it could have been required to settle its obligations under the agreements at their termination value.

Plymouth Industrial REIT, Inc.
Notes to Condensed Consolidated Financial Statements
Unaudited
(~~all dollar amounts in thousands, except share and per share data~~)

On November 9, 2021, the Company entered into a distribution agreement with KeyBanc Capital Markets Inc., Robert W. Baird & Co. Incorporated, Barclays Capital Inc., Berenberg Capital Markets LLC, BMO Capital Markets Corp., Capital One Securities Inc., JMP Securities LLC, J.P. Morgan Securities, LLC, National Securities Corporation, Wedbush Securities Inc and Wells Fargo Securities, LLC pursuant to which the Company may issue and sell, from time to time, shares of its common stock, with aggregate gross sales proceeds of up to $200,000 through an “at-the-market” equity offering program (the “2021 $200 Million ATM Program”).

For the ~~six~~nine months ended ~~June~~September 30, 2022, the Company has issued ~~1,542,700~~2,345,247 shares of its common stock under the 2021 $200 Million ATM Program for aggregate net proceeds of approximately $~~41,507~~58,319. The Company has approximately $~~112,313~~95,179 available for issuance under the 2021 $200 Million ATM Program.

On March 23, 2022, the common stock warrants were exercised in full and converted on a cashless basis, resulting in 139,940 shares of common stock transferred to the holder of the warrants at a fair value of $3,757. Prior to the full exercise of the common stock warrants, the Company had warrants outstanding to acquire 354,230 shares of the Company’s common stock at an exercise price of $16.24 per share. The warrants were accounted for as a liability within accounts payable, accrued expenses and other liabilities on the accompanying condensed consolidated balance sheet as they contained provisions that are considered outside of the Company’s control, such as the holders’ option to receive cash in lieu and other securities in the event of a reorganization of the Company’s common stock underlying such warrants. The fair value of these warrants was re-measured at each financial reporting period with any changes in fair value recognized as an unrealized appreciation/depreciation of warrants in the accompanying condensed consolidated statements of operations. The warrants were not included in the computation of diluted net loss per share during the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021.

Plymouth Industrial REIT, Inc.
Notes to Condensed Consolidated Financial Statements
Unaudited
(all dollar amounts in thousands, except share and per share data)


Balance at January 1, 2022	$	5,517		$	5,517
Unrealized appreciation (depreciation)		(1,760	)		(1,760	)
Balance at March 23, 2022 (exercise date)		3,757			3,757
Conversion of common stock warrants		(3,757	)		(3,757	)
Balance at June 30, 2022	$	—
Balance at September 30, 2022				$	—

The warrants in the amount of $5,517 at December 31, 2021 represent their fair value determined using a Binomial Valuation Model applying Level 3 inputs as described in Note 2. The significant inputs into the model were: exercise price of $16.24, volatility of 17.5%, an expected annual dividend of $0.84, a term of 0.45 years and an annual risk-free interest rate of 0.19%.

The following table sets forth the common stock distributions that were declared during the ~~six~~nine months ended ~~June~~September 30, 2022 and the year ended December 31, 2021.

	Cash Dividends Declared per Share		Aggregate Amount		Cash Dividends Declared per Share		Aggregate Amount
2022
First quarter	$	0.2200	$	8,137	$	0.2200	$	8,137
Second quarter	$	0.2200	$	8,829	$	0.2200	$	8,829
Third quarter					$	0.2200	$	9,426

2021
First quarter	$	0.2000	$	5,668	$	0.2000	$	5,668
Second quarter	$	0.2100	$	6,528	$	0.2100	$	6,528
Third quarter	$	0.2100	$	7,197	$	0.2100	$	7,197
Fourth quarter	$	0.2100	$	7,583	$	0.2100	$	7,583

During the nine months ended September 30, 2022, the Company repurchased and retired 51,124 shares of Series A Preferred Stock. The table below sets forth the Company’s outstanding Series A Preferred Stock as of September 30, 2022.

The following table sets forth the 7.5% Series A Preferred Stock distributions that were declared during the nine months ended September 30, 2022 and the year ended December 31, 2021.

Plymouth Industrial REIT, Inc.
Notes to Condensed Consolidated Financial Statements
Unaudited
(all dollar amounts in thousands, except share and per share data)

~~During the six months ended June 30, 2022, the Company repurchased and retired~~ ~~16,381~~ ~~shares of Series A Preferred Stock. The table below sets forth the Company’s outstanding Series A Preferred Stock as of June 30, 2022.~~

~~The following table sets forth the 7.5% Series A preferred stock distributions that were declared during the six months ended June 30, 2022 and the year ended December 31, 2021.~~

On April 29, 2022, 2,205,882 shares of the Company’s Series B Convertible Redeemable Preferred Stock were converted to our common stock on a one-to-one basis.

On August 12, 2022, the holder of the Company's Series B Convertible Redeemable Preferred Stock informed the Company that it had elected to convert the remaining 2,205,882 shares of Series B Convertible Redeemable Preferred Stock into the Company's common stock. Pursuant to the terms of the Series B Convertible Redeemable Preferred Stock agreement, the Company elected a combination settlement comprised of 1,915,511 shares of common stock and $15,000 in cash, which was settled on August 17, 2022.

The ~~table below sets forth the Company’s~~Company has no outstanding Series B Convertible Redeemable Preferred Stock as of ~~June~~September 30, 2022.

The following table sets forth the Series B ~~preferred stock~~Preferred Stock dividends for the ~~six~~nine months ended ~~June~~September 30, 2022 and the year ended December 31, 2021.

	Cash Dividends Declared per Share		Aggregate Amount		Cash Dividends Declared per Share		Aggregate Amount
2022
First quarter	$	0.170000	$	750	$	0.170000	$	750
Second quarter	$	0.170000	$	375	$	0.170000	$	375
Third quarter					$	—	$	—

2021
First quarter	$	0.159375	$	703	$	0.159375	$	703
Second quarter	$	0.159375	$	703	$	0.159375	$	703
Third quarter	$	0.159375	$	703	$	0.159375	$	703
Fourth quarter	$	0.159375	$	703	$	0.159375	$	703

Plymouth Industrial REIT, Inc.
Notes to Condensed Consolidated Financial Statements
Unaudited
(~~all dollar amounts in thousands, except share and per share data~~)

In connection with prior acquisitions of real estate property, the Company, through its Operating Partnership, had issued Operating Partnership Units (“OP Units”) to the former owners as part of the acquisition price. The holders of the OP Units are entitled to receive distributions concurrent with the dividends paid on our common stock. The holders of the OP Units can also convert their respective OP Units for the Company’s common stock on a 1-to-1 basis. Upon conversion, the Company adjusts the carrying value of non-controlling interest to reflect its modified share of the book value of the Operating Partnership. Such adjustments are recorded to additional paid-in capital as a reallocation of non-controlling interest on the accompanying condensed consolidated statements of changes in preferred stock and equity. OP Units outstanding as of ~~June~~September 30, 2022 and December 31, 2021, were 490,299 and 490,299, respectively.

The following table sets forth the OP Unit distributions that were declared during the ~~six~~nine months ended ~~June~~September 30, 2022 and the year ended December 31, 2021.

	Cash Distributions Declared per OP Unit		Aggregate Amount		Cash Distributions Declared per OP Unit		Aggregate Amount
2022
First quarter	$	0.2200	$	108	$	0.2200	$	108
Second quarter	$	0.2200	$	108	$	0.2200	$	108
Third quarter					$	0.2200	$	108

2021
First quarter	$	0.2000	$	121	$	0.2000	$	121
Second quarter	$	0.2100	$	106	$	0.2100	$	106
Third quarter	$	0.2100	$	106	$	0.2100	$	106
Fourth quarter	$	0.2100	$	103	$	0.2100	$	103

Plymouth Industrial REIT, Inc.
Notes to Condensed Consolidated Financial Statements
Unaudited
(all dollar amounts in thousands, except share and per share data)

The proportionate share of the loss attributed to the OP Units was $55 and $7157 for the three months ended ~~June~~September 30, 2022 and 2021, respectively, and $~~115~~170 and $~~136~~193 for the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, respectively.

The following table is a summary of the total restricted shares granted, forfeited and vested for the ~~six~~nine months ended ~~June~~September 30, 2022:

The Company recorded equity-based compensation expense in the amount of $~~980~~1,498 and $~~879~~1,219 for the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, respectively, which is included in general and administrative expenses in the accompanying condensed consolidated statements of operations. Equity-based compensation expense for shares issued to employees and directors is based on the grant-date fair value of the award and recognized on a straight-line basis over the requisite period of the award. The unrecognized compensation expense associated with the Company’s restricted shares of common stock at ~~June~~September 30, 2022 was approximately $~~5,422~~4,863 and is expected to be recognized over a weighted average period of approximately ~~3.1~~2.9 years. The fair value of the ~~137,130~~141,000 restricted shares granted during the ~~six~~nine months ended ~~June~~September 30, 2022 was approximately $~~3,636~~3,714 with a weighted average fair value of $~~26.52~~26.34 per share.

Plymouth Industrial REIT, Inc.
Notes to Condensed Consolidated Financial Statements
Unaudited
(~~all dollar amounts in thousands, except share and per share data~~)

Basic and diluted net loss per share attributable to common stockholders was calculated as follows:


	Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021			2022			2021			2022			2021
Numerator
Net loss	$	(4,464	)	$	(3,981	)	$	(8,934	)	$	(6,965	)	$	(4,626	)	$	(3,649	)	$	(13,560	)	$	(10,614	)
Less: Net loss attributable to non-controlling interest		(55	)		(71	)		(115	)		(136	)		(55	)		(57	)		(170	)		(193	)
Net loss attributable to Plymouth Industrial REIT, Inc.		(4,409	)		(3,910	)		(8,819	)		(6,829	)		(4,571	)		(3,592	)		(13,390	)		(10,421	)
Less: Preferred stock dividends		1,320			1,652			3,019			3,304
Less: Series B Preferred stock accretion to redemption value		750			1,807			2,250			3,614
Less: Loss on extinguishment of Series A Preferred stock		24			—			24			—
Less: Preferred Stock dividends														930			1,652			3,949			4,956
Less: Series B Preferred Stock accretion to redemption value														2,371			1,807			4,621			5,421
Less: Loss on extinguishment of Series A Preferred Stock														56			—			80			—
Less: Amount allocated to participating securities		65			48			132			105			62			48			194			153
Net loss attributable to common stockholders	$	(6,568	)	$	(7,417	)	$	(14,244	)	$	(13,852	)	$	(7,990	)	$	(7,099	)	$	(22,234	)	$	(20,951	)
Denominator
Weighted-average common shares outstanding basic and diluted		39,106,576			29,348,561			37,675,032			28,282,565			41,128,421			32,301,693			38,838,811			29,636,996
Net loss per share attributable to common stockholders – basic and diluted	$	(0.17	)	$	(0.25	)	$	(0.38	)	$	(0.49	)	$	(0.19	)	$	(0.22	)	$	(0.57	)	$	(0.71	)

The Company uses the two-class method of computing earnings per common share in which participating securities are included within the basic earnings per share (“EPS”) calculation. The amount allocated to participating securities is according to dividends declared (whether paid or unpaid). The restricted stock does not have any participatory rights in undistributed earnings. The unvested shares of restricted stock are accounted for as participating securities as they contain nonforfeitable rights to dividends.

Plymouth Industrial REIT, Inc.
Notes to Condensed Consolidated Financial Statements
Unaudited
(all dollar amounts in thousands, except share and per share data)

In periods where there is a net loss, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company’s potential dilutive securities at ~~June~~September 30, 2022 include the ~~293,954~~280,074 shares of restricted common stock. The restricted common shares have been excluded from the computation of diluted net loss per share attributable to common stockholders as the effect of including them would reduce the net loss per share.

The Company has entered into employment agreements with the Company’s Chief Executive Officer, President and Chief Investment Officer, Chief Financial Officer, and Executive Vice President Asset Management. As approved by the compensation committee of the Board of Directors the agreements provide for base salaries ranging from $300 to $550 annually with discretionary cash performance awards. The agreements contain provisions for equity awards, general benefits, and termination and severance provisions, consistent with similar positions and companies.

The Company is not currently party to any material legal proceedings. At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses, as incurred, the costs related to such legal proceedings.

In conjunction with the issuance of the OP Units for acquisitions, the agreements contain a provision for the Company to provide tax protection to the holders if the acquired properties are sold in a transaction that would result in the recognition of taxable income or gain prior to the sixth anniversary of the acquisition. The Company intends to hold these investments and has no plans to sell or transfer any interest that would give rise to a taxable transaction.

Plymouth Industrial REIT, Inc.
Notes to Condensed Consolidated Financial Statements
Unaudited
(~~all dollar amounts in thousands, except share and per share data~~)

On ~~July 7, 2022~~,The Company has evaluated subsequent events through the ~~Company acquired a single-building, single-tenant industrial property, consisting~~filing of ~~approximately~~ ~~197,518~~ ~~square feet, located in Cleveland, Ohio for an aggregate purchase price of $16,500~~.

~~On July 13, 2022, the Company entered into an amendment~~this Quarterly Report on Form 10-Q and concluded that were no subsequent events requiring adjustment or disclosure to the $~~100,000~~ ~~notional interest rate swap agreement with JPMorgan Chase Bank, N.A. The amendment transitions the previous USD-LIBOR floating rate to USD-SOFR CME Term, adjusting the fixed rate to~~ ~~1.504%. The amendment is effective~~ ~~July 1, 2022, and terminates~~ ~~August 8, 2026~~.

~~On July 13, 2022, the Company entered into an amendment to the $200,000~~ ~~notional interest rate swap agreement with Capital One, N.A. The amendment transitions the previous USD-LIBOR floating rate to USD-SOFR CME Term, adjusting the fixed rate to~~ ~~1.5273%. The amendment is effective~~ ~~July 1, 2022, and terminates~~ ~~February 11, 2027~~.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

We make statements in this Quarterly Report on Form 10-Q that are forward-looking statements, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions. Our forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by our forward-looking statements are reasonable, we can give no assurance that our plans, intentions, expectations, strategies or prospects will be attained or achieved and you should not place undue reliance on these forward-looking statements. Additionally, unforeseen factors emerge from time to time, and we cannot predict which factors will arise or their ultimate impact on our business or the extent to which any such factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and may be affected by a variety of risks and factors including, without limitation:

Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict those events or how they may affect us. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The following discussion and analysis is based on, and should be read in conjunction with our unaudited financial statements and notes thereto for the periods ended ~~June~~September 30, 2022 and 2021 included elsewhere in this Quarterly Report, as well as information contained in our Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 10-K“) filed with the United States Securities and Exchange Commission (the “SEC”) on February 23, 2022, including the audited historical financial statements and related notes thereto as of and for the years ended December 31, 2021 and 2020 contained therein, which is accessible on the SEC’s website at www.sec.gov.

The Company is a real estate investment trust strategically focused on the acquisition, ownership and management of single and multi-tenant industrial properties, including distribution centers, warehouses, light industrial and small bay industrial properties, located in primary and secondary markets within the main industrial, distribution and logistics corridors of the United States. As of ~~June~~September 30, 2022, the Company, through its subsidiaries, owned ~~156~~157 industrial properties comprising ~~206~~207 buildings with an aggregate of approximately ~~33.6~~33.8 million square feet, and our property management office building located in Columbus, Ohio, totaling approximately 17,260 square feet.

We are also evaluating diversifying our portfolio of real estate assets to include the origination or acquisition of mortgage, bridge or mezzanine loans, all of which would be collateralized by properties that meet investment criteria that are substantially the same as our real estate portfolio or that are complementary to our existing assets. The Company believes expanding its investment strategy to include these types of real estate-related assets will enable it to deploy its capital efficiently to continue to grow at times when acquisitions of industrial properties are limited due either to availability or cost.

We seek to generate attractive risk-adjusted returns for our stockholders through a combination of dividends and capital appreciation.

Our core investment strategy is to acquire industrial properties located in primary and secondary markets across the U.S, as well as select sub-markets across the U.S. We expect to acquire these properties through third-party purchases and structured sale-leasebacks where we believe we can achieve high initial yields and strong ongoing cash-on-cash returns.

Our target markets are located in primary and secondary markets, as well as select sub-markets, because we believe these markets tend to have less occupancy and rental rate volatility and less buyer competition relative to gateway markets. We also believe that the systematic aggregation of such properties will result in a diversified portfolio that will produce sustainable risk-adjusted returns. Future results of operations may be affected, either positively or negatively, by our ability to effectively execute this strategy.

We also intend to continue pursuing joint venture arrangements with institutional partners which could provide management fee income as well as residual profit-sharing income. Such joint ventures may involve investing in industrial assets that would be characterized as opportunistic or value-add investments. These may involve development or redevelopment strategies that may require significant up-front capital expenditures, lengthy lease-up periods and result in inconsistent cash flows. As such, these properties’ risk profiles and return metrics would likely differ from the non-joint venture properties that we target for acquisition.

We receive income primarily from rental revenue from our properties. The amount of rental revenue generated by the Company’s portfolio depends principally on the occupancy levels and lease rates at our properties, our ability to lease currently available space and space that becomes available as a result of lease expirations and on the rental rates at our properties. As of ~~June~~September 30, 2022, the Company’s portfolio was approximately ~~97.3%~~98.8% occupied. Our occupancy rate is impacted by general market conditions in the geographic areas which our properties are located and the financial condition of tenants in our target markets.

Our ability to re-lease space subject to expiring leases will impact our results of operations and will be affected by economic and competitive conditions in the markets in which we operate and by the desirability of our individual properties. During the period from ~~July~~October 1, 2022 through to December 31, 2024, an aggregate of ~~36.0%~~30.6% of the annualized base rent leases in the Company’s portfolio are scheduled to expire, which we believe will provide us an opportunity to adjust below market ~~rates~~leases to reflect current market conditions.

The table below reflects certain data about our new and renewed leases with terms of greater than six months executed in the ~~six~~nine months ended ~~June~~September 30, 2022.

Period	Type	Square Footage	% of Total Square Footage	Expiring Rent		New Rent		% Change	Tenant Improvements $/SF/YR		Lease Commissions $/SF/YR			Type	Square Footage	% of Total Square Footage	Expiring Rent		New Rent		% Change	Tenant Improvements $/SF/YR		Lease Commissions $/SF/YR
Six Months Ended June 30, 2022
Nine Months Ended September 30, 2022													Nine Months Ended September 30, 2022
	Renewals	1,419,046	50.8%	$	4.70	$	5.17	10.0%	$	0.22	$	0.16		Renewals	2,874,374	53.8%	$	4.44	$	4.93	11.0%	$	0.23	$	0.15
	New Leases	1,373,890	49.2%	$	3.70	$	4.88	31.9%	$	0.42	$	0.26		New Leases	2,470,901	46.2%	$	3.47	$	4.51	30.0%	$	0.40	$	0.24
	Total/weighted average	2,792,936	100%	$	4.21	$	5.03	19.5%	$	0.32	$	0.21		Total/weighted average	5,345,275	100%	$	3.99	$	4.74	18.8%	$	0.31	$	0.19

The Company’s portfolio is located in various primary and secondary markets within the main industrial distribution and logistics corridors of the United States. Positive or negative changes in economic or other conditions, adverse weather conditions and natural disasters in these markets are likely to affect our overall performance.

Our rental expenses generally consist of utilities, real estate taxes, insurance and repair and maintenance costs. For the majority of the Company’s portfolio, property expenses are controlled, in part, by either the triple net provisions or modified gross lease expense reimbursement provisions in tenant leases. However, the terms of our tenant leases vary and in some instances the leases may provide that we are responsible for certain property expenses. Accordingly, our overall financial results will be impacted by the extent to which we are able to pass-through property expenses to our tenants.

We expect to incur increased general and administrative expenses, including legal, accounting and other expenses related to corporate governance and public reporting and compliance. In addition, we anticipate that our staffing levels will increase from current levels as of ~~June~~September 30, 2022 during the subsequent 12 to 24 months and, as a result, our general and administrative expenses will increase further.

Our financial statements are prepared in accordance with GAAP. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management makes significant estimates regarding the allocation of tangible and intangible assets or business acquisitions, impairments of long-lived assets, stock-based compensation and its common stock warrants liability. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management adjusts such estimates when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from those estimates and assumptions.

During the ~~six~~nine months ended ~~June~~September 30, 2022, we added an additional critical accounting policy to account for our interest rate swaps as follows:

In accordance with fair value measurement guidance, we made an accounting policy election to measure the credit risk of our derivative financial instruments that are subject to master netting arrangements on a net basis by counterparty portfolio. Credit risk is the risk of failure of the counterparty to perform under the terms of the contract. We minimize the credit risk in our derivative financial instruments by entering into transactions with various high-quality counterparties. Our exposure to credit risk at any point is generally limited to amounts recorded as assets on the accompanying condensed consolidated balance sheets.

Our other critical accounting policies are described under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Significant Judgments and Estimates” in our Annual Report on Form 10-K filed with the SEC on February 23, 2022 and the notes to the financial statements appearing elsewhere in this Quarterly Report on Form 10-Q. We believe that the following critical accounting policies involve the most judgment and complexity:

Accordingly, we believe the policies set forth in our 2021 10-K are critical to fully understand and evaluate our financial condition and results of operations. If actual results or events differ materially from the estimates, judgments and assumptions used by us in applying these policies, our reported financial condition and results of operations could be materially affected.

Our consolidated results of operations are often not comparable from period to period due to the effect of property acquisitions and dispositions completed during the comparative reporting periods. Our Total Portfolio represents all of the properties owned during the reported periods. To eliminate the effect of changes in our Total Portfolio due to acquisitions, dispositions and other, and to highlight the operating results of our on-going business, we have separately presented the results of our Same Store Properties Portfolio and Acquisitions, Dispositions and Other.

For the three and ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, we define the Same Store Portfolio as a subset of our Total Portfolio and includes properties that were wholly-owned by us for the entire period presented. We define Acquisitions, Dispositions and Other as any properties that were acquired, sold or held for development or repurposing during the period from January 1, 2021 through ~~June~~September 30, 2022.

Three Months Ended ~~June~~September 30, 2022 Compared to ~~June~~September 30, 2021

The following table summarizes the results of operations for our Same Store Portfolio, our acquisitions, dispositions and other and total portfolio for the three months ended ~~June~~September 30, 2022 and 2021 (dollars in thousands):

Rental revenue: Rental revenue increased by ~~$12,854~~$11,911 to ~~$45,612~~$47,788 for the three months ended ~~June~~September 30, 2022 as compared to ~~$32,758~~$35,877 for the three months ended ~~June~~September 30, 2021. This was primarily related to a net increase of ~~$10,756~~$11,289 within acquisitions, dispositions and other primarily due to an increase in rental revenue from acquisitions, an increase of ~~$2,098~~$622 from same store properties primarily from an increase in rent income of ~~$1,410~~$1,394 due to scheduled rent steps, leasing activities, an increase of ~~$1,676~~$470 in tenant reimbursements, ~~partially~~ offset by a decrease in early termination revenue of $850 and decrease in non-cash rent adjustments of ~~$1,014~~$392 for the three months ended ~~June~~September 30, 2022.

Management fee revenue and other income: Management fee revenue and other income represents management fee income earned from the unconsolidated joint venture and other miscellaneous income. As a result of the acquisition and consolidation of the remaining 80% interest of the former MIR JV from the MIR JV Partner on March 11, 2022, the Company will no longer earn management fee revenue related to the former MIR JV.

Property expenses: Property expenses increased ~~$2,859~~$2,463 for the three months ended ~~June~~September 30, 2022 to ~~$13,799~~$14,495 as compared to ~~$10,940~~$12,032 for the three months ended ~~June~~September 30, 2021. This was primarily due to a net increase of ~~$2,772~~$2,674 within acquisitions, dispositions and other due to property expenses related to acquisitions. Property expenses for the same store properties ~~increased~~decreased approximately ~~$87~~$211 driven by ~~an increase~~a decrease in real estate ~~taxes and operating expenses.~~taxes.

Depreciation and amortization: Depreciation and amortization expense increased by ~~$7,306~~$6,555 to ~~$24,208~~$24,860 for the three months ended ~~June~~September 30, 2022 as compared to ~~$16,902~~$18,305 for the three months ended ~~June~~September 30, 2021, primarily due to a net increase of ~~$8,808~~$8,131 within acquisitions, dispositions and other, partially offset by a decrease of ~~$1,502~~$1,576 for the same store properties.

General and administrative: General and administrative expenses increased approximately ~~$837~~$814 to ~~$4,146~~$4,078 for the three months ended ~~June~~September 30, 2022 as compared to ~~$3,309~~$3,264 for the three months ended ~~June~~September 30, 2021. The increase is attributable primarily to increased compensation expense of ~~$181~~$675 due to increased head count and employee compensation, an increase in non-cash stock compensation of ~~$77 and an increase~~$178, offset by a decrease in professional fees of ~~$325.~~$135.

Interest expense: Interest expense increased by approximately ~~$3,100~~$4,077 to ~~$7,925~~$8,983 for the three months ended ~~June~~September 30, 2022, as compared to ~~$4,825~~$4,906 for the three months ended ~~June~~September 30, 2021. The increase is primarily due to additional borrowings associated with our acquisition and development activity during the three months ended ~~June~~September 30, 2022 compared to the three months ended ~~June~~September 30, 2021. The schedule below is a comparative analysis of the components of interest expense for the three months ~~June~~September 30, 2022 and 2021.

Earnings (loss) in investment of unconsolidated joint venture: Earnings (loss) in investment of unconsolidated joint venture represents the Company’s pro-rata share of the net loss recognized by the former MIR JV, which was consolidated into the Company’s condensed consolidated financial statements following the Company’s acquisition of the remaining 80% interest in the MIR JV from the MIR JV Partner on March 11, 2022.

Unrealized (appreciation) depreciation of warrants: Unrealized (appreciation) depreciation of warrants represents the change in the fair market value of our common stock warrants. For the three months ended ~~June~~September 30, 2021, the Company recorded an unrealized appreciation of warrants of ~~$636.~~$926. During Q1 2022, all common stock warrants were fully exercised on a cash-less basis and no warrants remained outstanding as of ~~June~~September 30, 2022.

~~Six~~Nine Months Ended ~~June~~September 30, 2022 Compared to ~~June~~September 30, 2021

The following table summarizes the results of operations for our Same Store Portfolio, our acquisitions, dispositions and other and total portfolio for the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021 (dollars in thousands):

	Same Store Portfolio							Acquisitions, Dispositions and Other									Total Portfolio											Same Store Portfolio								Acquisitions, Dispositions and Other										Total Portfolio
	Six Months Ended June 30,				Change			Six Months Ended June 30,				Change					Six Months Ended June 30,						Change					Nine Months Ended September 30,				Change				Nine Months Ended September 30,				Change						Nine Months Ended September 30,						Change
	2022		2021		$		%	2022		2021		$			%		2022			2021			$			%		2022		2021		$		%		2022		2021		$			%			2022			2021			$			%
Revenue:
Rental revenue	$	62,544	$	58,784	$	3,760	6.4%	$	25,788	$	5,807	$	19,981		344.1%		$	88,332		$	64,591		$	23,741		36.8%		$	94,050	$	89,667	$	4,383		4.9%	$	42,070	$	10,801	$	31,269			289.5%		$	136,120		$	100,468		$	35,652			35.5%
Management fee revenue and other income		—		—		—	—		88		180		(92	)	(51.1%	)		88			180			(92	)	(51.1%	)		—		—		—		—		90		265		(175	)		(66.0%	)		90			265			(175	)		(66.0%	)
Total revenues		62,544		58,784		3,760	6.4%		25,876		5,987		19,889		332.2%			88,420			64,771			23,649		36.5%			94,050		89,667		4,383		4.9%		42,160		11,066		31,094			281.0%			136,210			100,733			35,477			35.2%

Property expenses		20,598		19,867		731	3.7%		7,276		2,499		4,777		191.2%			27,874			22,366			5,508		24.6%			30,538		30,019		519		1.7%		11,831		4,379		7,452			170.2%			42,369			34,398			7,971			23.2%
Depreciation and amortization																		46,899			32,679			14,220		43.5%																					71,759			50,984			20,775			40.7%
General and administrative																		7,698			6,318			1,380		21.8%																					11,776			9,582			2,194			22.9%
Total operating expenses																		82,471			61,363			21,108		34.4%																					125,904			94,964			30,940			32.6%

Other income (expense):
Interest expense																		(14,320	)		(9,583	)		(4,737	)	49.4%																					(23,303	)		(14,489	)		(8,814	)		60.8%
Earnings (loss) in investment of unconsolidated joint venture																		(147	)		(497	)		350		(70.4%	)																				(147	)		(675	)		528			(78.2%	)
Loss on extinguishment of debt																		(2,176	)		—			(2,176	)	—																					(2,176	)		—			(2,176	)		—
Gain on sale of real estate																		—			590			(590	)	(100%	)																				—			590			(590	)		(100%	)
Unrealized (appreciation) depreciation of warrants																		1,760			(883	)		2,643		(299.3%	)																				1,760			(1,809	)		3,569			(197.3%	)
Total other income (expense)																		(14,883	)		(10,373	)		(4,510	)	43.5%																					(23,866	)		(16,383	)		(7,483	)		45.7%

Net loss																	$	(8,934	)	$	(6,965	)	$	(1,969	)	28.3%																				$	(13,560	)	$	(10,614	)	$	(2,946	)		27.8%

Rental revenue: Rental revenue increased by ~~$23,741~~$35,652 to ~~$88,332~~$136,120 for the ~~six~~nine months ended ~~June~~September 30, 2022 as compared to ~~$64,591~~$100,468 for the ~~six~~nine months ended ~~June~~September 30, 2021. This was primarily related to a net increase of ~~$19,981~~$31,269 within acquisitions, dispositions and other primarily due to an increase in rental revenue from acquisitions, an increase of ~~$3,760~~$4,383 from same store properties primarily from an increase in rent income of ~~$1,812~~$3,206 due to scheduled rent steps, leasing activities, an increase of ~~$2,856~~$3,327 in tenant reimbursements, ~~partially~~ offset by a decrease in early termination revenue of $840 and a decrease in non-cash rent adjustments of ~~$919~~$1,310 for the ~~six~~nine months ended ~~June~~September 30, 2022.

Property expenses: Property expenses increased ~~$5,508~~$7,971 for the ~~six~~nine months ended ~~June~~September 30, 2022 to ~~$27,874~~$42,369 as compared to ~~$22,366~~$34,398 for the ~~six~~nine months ended ~~June~~September 30, 2021. This was primarily due to a net increase of ~~$4,777~~$7,452 within acquisitions, dispositions and other due to property expenses related to acquisitions. Property expenses for the same store properties increased approximately ~~$731~~$519 driven by an increase in real estate taxes and operating expenses.

Depreciation and amortization: Depreciation and amortization expense increased by ~~$14,220~~$20,775 to ~~$46,899~~$71,759 for the ~~six~~nine months ended ~~June~~September 30, 2022 as compared to ~~$32,679~~$50,984 for the ~~six~~nine months ended ~~June~~September 30, 2021, primarily due to a net increase of ~~$16,979~~$25,110 within acquisitions, dispositions and other, partially offset by a decrease of ~~$2,759~~$4,335 for the same store properties.

General and administrative: General and administrative expenses increased approximately ~~$1,380~~$2,194 to ~~$7,698~~$11,776 for the ~~six~~nine months ended ~~June~~September 30, 2022 as compared to ~~$6,318~~$9,582 for the ~~six~~nine months ended ~~June~~September 30, 2021. The increase is attributable primarily to increased compensation expense of ~~$551~~$1,226 due to increased head count and employee compensation, an increase in non-cash stock compensation of ~~$102~~$280 and an increase in professional fees of ~~$367.~~$231.

Interest expense: Interest expense increased by approximately ~~$4,737~~$8,814 to ~~$14,320~~$23,303 for the ~~six~~nine months ended ~~June~~September 30, 2022, as compared to ~~$9,583~~$14,489 for the ~~six~~nine months ended ~~June~~September 30, 2021. The increase is primarily due to additional borrowings associated with our acquisition and development activity during the ~~six~~nine months ended ~~June~~September 30, 2022 compared to the ~~six~~nine months ended ~~June~~September 30, 2021. The schedule below is a comparative analysis of the components of interest expense for the ~~six~~nine months ~~June~~September 30, 2022 and 2021.

Loss on extinguishment of debt: Loss on extinguishment of debt of $2,176 for the ~~six~~nine months ended ~~June~~September 30, 2022, was due to the repayment of the JPMorgan Chase Loan.

Gain on sale of real estate: Gain on sale of real estate of $590 represents the gain realized on the sale of real estate for the ~~six~~nine months ended ~~June~~September 30, 2021. There was no gain/loss on sales of real estate during the ~~six~~nine months ended ~~June~~September 30, 2022.

Unrealized (appreciation) depreciation of warrants: Unrealized (appreciation) depreciation of warrants represents the change in the fair market value of our common stock warrants. For the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, the Company recorded an unrealized depreciation of warrants of $1,760 and an unrealized appreciation of warrants of ~~$833,~~$1,809, respectively. During Q1 2022, all common stock warrants were fully exercised on a cash-less basis and no warrants remained outstanding as of ~~June~~September 30, 2022.

Investors in and industry analysts following the real estate industry utilize supplemental earnings measures such as net operating income (“NOI), earnings before interest, taxes, depreciation and amortization for real estate (“EBITDAre”), funds from operations (“FFO”), core funds from operations (“Core FFO”) and adjusted funds from operations (“AFFO”) as supplemental operating performance measures of an equity REIT. Historical cost accounting for real estate assets in accordance with accounting principles generally accepted in the United States of America ("GAAP") implicitly assumes that the value of real estate assets diminishes predictably over time through depreciation. Since real estate values instead have historically risen or fallen with market conditions, many industry analysts and investors prefer to supplement operating results that use historical cost accounting with measures such as NOI, EBITDAre, FFO, Core FFO and AFFO, among others. We provide information related to NOI, EBITDAre, FFO, Core FFO and AFFO both because such industry analysts are interested in such information, and because our management believes NOI, EBITDAre, FFO, Core FFO and AFFO are important performance measures. NOI, EBITDAre, FFO, Core FFO and AFFO are factors used by management in measuring our performance. Neither NOI, EBITDAre, FFO, Core FFO or AFFO should be considered as a substitute for net income, or any other measures derived in accordance with GAAP. Neither NOI, EBITDAre, FFO, Core FFO or AFFO represents cash generated from operating activities in accordance with GAAP and neither should be considered as an alternative to cash flow from operating activities as a measure of our liquidity, nor is either indicative of funds available for our cash needs, including our ability to make cash distributions.

We consider net operating income, or NOI, to be an appropriate supplemental measure to net income in that it helps both investors and management understand the core operations of our properties. We define NOI as total revenue (including rental revenue and tenant reimbursements) less property-level operating expenses. NOI excludes depreciation and amortization, general and administrative expenses, impairments, gain/loss on sale of real estate, interest expense, and other non-operating items.

The following is a reconciliation from historical reported net loss, the most directly comparable financial measure calculated and presented in accordance with GAAP, to NOI:

	For the Three Months						For the Six Months						For the Three Months						For the Nine Months
	Ended June 30,						Ended June 30,						Ended September 30,						Ended September 30,
NOI:	2022			2021			2022			2021			2022			2021			2022			2021
Net loss	$	(4,464	)	$	(3,981	)	$	(8,934	)	$	(6,965	)	$	(4,626	)	$	(3,649	)	$	(13,560	)	$	(10,614	)
General and administrative		4,146			3,309			7,698			6,318			4,078			3,264			11,776			9,582
Depreciation and amortization		24,208			16,902			46,899			32,679			24,860			18,305			71,759			50,984
Interest expense		7,925			4,825			14,320			9,583			8,983			4,906			23,303			14,489
(Earnings) loss in investment of unconsolidated joint venture		—			224			147			497			—			178			147			675
Loss on extinguishment of debt		—			—			2,176						—			—			2,176			—
Gain on sale of real estate		—			—			—			(590	)		—			—			—			(590	)
Unrealized appreciation (depreciation) of warrants		—			636			(1,760	)		883			—			926			(1,760	)		1,809
Management fee revenue and other income		(2	)		(97	)		(88	)		(180	)		(2	)		(85	)		(90	)		(265	)
NOI	$	31,813		$	21,818		$	60,458		$	42,225		$	33,293		$	23,845		$	93,751		$	66,070

We define earnings before interest, taxes, depreciation and amortization for real estate in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”). EBITDAre represents net income (loss), computed in accordance with GAAP, before interest expense, tax, depreciation and amortization, gains or losses on the sale of rental property, unrealized appreciation/(depreciation) of warrants, loss on impairments, and loss on extinguishment of debt. We believe that EBITDAre is helpful to investors as a supplemental measure of our operating performance as a real estate company as it is a direct measure of the actual operating results of our industrial properties. The following table sets forth a reconciliation of our historical net loss to EBITDAre for the periods presented:

	For the Three Months						For the Six Months						For the Three Months						For the Nine Months
	Ended June 30,						Ended June 30,						Ended September 30,						Ended September 30,
EBITDAre:	2022			2021			2022			2021			2022			2021			2022			2021
Net loss	$	(4,464	)	$	(3,981	)	$	(8,934	)	$	(6,965	)	$	(4,626	)	$	(3,649	)	$	(13,560	)	$	(10,614	)
Depreciation and amortization		24,208			16,902			46,899			32,679			24,860			18,305			71,759			50,984
Interest expense		7,925			4,825			14,320			9,583			8,983			4,906			23,303			14,489
Loss on extinguishment of debt		—			—			2,176						—			—			2,176			—
Gain on sale of real estate		—			—			—			(590	)		—			—			—			(590	)
Unrealized appreciation (depreciation) of warrants		—			636			(1,760	)		883			—			926			(1,760	)		1,809
EBITDAre	$	27,669		$	18,382		$	52,701		$	35,590		$	29,217		$	20,488		$	81,918		$	56,078

Funds from operations, or FFO, is a non-GAAP financial measure that is widely recognized as a measure of REIT operating performance. We consider FFO to be an appropriate supplemental measure of our operating performance as it is based on a net income analysis of property portfolio performance that excludes non-cash items such as depreciation. The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time. Since real estate values rise and fall with market conditions, presentations of operating results for a REIT, using historical accounting for depreciation, could be less informative. In December 2018, NAREIT issued a white paper restating the definition of FFO. The purpose of the restatement was not to change the fundamental definition of FFO, but to clarify existing NAREIT guidance. The restated definition of FFO is as follows: Net Income (calculated in accordance with GAAP), excluding: (i) Depreciation and amortization related to real estate, (ii) Gains and losses from the sale of certain real estate assets, (iii) Gain and losses from change in control, and (iv) Impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.

We define FFO consistent with the NAREIT definition. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect FFO on the same basis. Other equity REITs may not calculate FFO as we do, and, accordingly, our FFO may not be comparable to such other REITs’ FFO. FFO should not be used as a measure of our liquidity and is not indicative of funds available for our cash needs, including our ability to pay dividends. Core FFO represents FFO reduced by dividends paid (or declared) to holders of our preferred stock, acquisition and transaction related expenses for transactions not completed, and excludes certain non-cash operating expenses such as impairment on real estate lease, unrealized appreciation/(depreciation) of warrants and loss on extinguishment of debt. As with FFO, our reported Core FFO may not be comparable to other REITs’ Core FFO, should not be used as a measure of our liquidity, and is not indicative of our funds available for our cash needs, including our ability to pay dividends.

The following table sets forth a reconciliation of our historical net loss to FFO and Core FFO for the periods presented:

	For the Three Months						For the Six Months						For the Three Months						For the Nine Months
	Ended June 30,						Ended June 30,						Ended September 30,						Ended September 30,
FFO:	2022			2021			2022			2021			2022			2021			2022			2021
Net loss	$	(4,464	)	$	(3,981	)	$	(8,934	)	$	(6,965	)	$	(4,626	)	$	(3,649	)	$	(13,560	)	$	(10,614	)
Gain on sale of real estate		—			—			—			(590	)		—			—			—			(590	)
Depreciation and amortization		24,208			16,902			46,899			32,679			24,860			18,305			71,759			50,984
Depreciation and amortization from unconsolidated joint venture		—			408			268			801			—			374			268			1,176
FFO:	$	19,744		$	13,329		$	38,233		$	25,925		$	20,234		$	15,030		$	58,467		$	40,956
Preferred stock dividends		(1,320	)		(1,652	)		(3,019	)		(3,304	)		(930	)		(1,652	)		(3,949	)		(4,956	)
Acquisition expenses		150			—			150			—			51			—			201			—
Unrealized appreciation (depreciation) of warrants		—			636			(1,760	)		883			—			926			(1,760	)		1,809
Loss on extinguishment of debt		—			—			2,176			—			—			—			2,176			—
Core FFO	$	18,574		$	12,313		$	35,780		$	23,504		$	19,355		$	14,304		$	55,135		$	37,809

Adjusted funds from operations, or AFFO, is presented in addition to Core FFO. AFFO is defined as Core FFO, excluding certain non-cash operating revenues and expenses, capitalized interest and recurring capitalized expenditures. Recurring capitalized expenditures include expenditures required to maintain and re-tenant our properties, tenant improvements and leasing commissions. AFFO further adjusts Core FFO for certain other non-cash items, including the amortization or accretion of above or below market rents included in revenues, straight line rent adjustments, non-cash equity compensation and non-cash interest expense.

We believe AFFO provides a useful supplemental measure of our operating performance because it provides a consistent comparison of our operating performance across time periods that is comparable for each type of real estate investment and is consistent with management’s analysis of the operating performance of our properties. As a result, we believe that the use of AFFO, together with the required GAAP presentations, provide a more complete understanding of our operating performance.

As with Core FFO, our reported AFFO may not be comparable to other REITs’ AFFO, should not be used as a measure of our liquidity, and is not indicative of our funds available for our cash needs, including our ability to pay dividends.

The following table sets forth a reconciliation of FFO attributable to common stockholders and unit holders to AFFO.

	For the Three Months						For the Six Months						For the Three Months						For the Nine Months
	Ended June 30,						Ended June 30,						Ended September 30,						Ended September 30,
AFFO:	2022			2021			2022			2021			2022			2021			2022			2021
Core FFO	$	18,574		$	12,313			35,780		$	23,504		$	19,355		$	14,304		$	55,135		$	37,809
Amortization of debt related costs		527			370			1,032			739			565			424			1,597			1,163
Non-cash interest expense		262			(29	)		906			(72	)		676			41			1,582			(31	)
Stock compensation		538			461			980			879			518			340			1,498			1,219
Capitalized interest		(142	)		—			(206	)		—			(315	)		—			(521	)		—
Straight line rent		(904	)		(1,146	)		(1,726	)		(1,760	)		(1,319	)		(966	)		(3,045	)		(2,726	)
Above/below market lease rents		(545	)		(616	)		(2,091	)		(1,109	)		(541	)		(480	)		(2,632	)		(1,589	)
Recurring capital expenditures ⁽¹⁾		(1,782	)		(1,555	)		(3,455	)		(3,415	)		(1,985	)		(3,312	)		(5,440	)		(6,727	)
AFFO:	$	16,528		$	9,798		$	31,220		$	18,766		$	16,954		$	10,351		$	48,174		$	29,118

A summary of our cash flows for the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021 are as follows:

	Six Months Ended June 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Net cash provided by operating activities	$	35,659		$	26,617		$	58,852		$	34,547
Net cash used in investing activities	$	(197,517	)	$	(81,537	)	$	(236,550	)	$	(179,800	)
Net cash provided by financing activities	$	154,550		$	52,180		$	170,577		$	192,142

Operating activities: Net cash provided by operating activities for the ~~six~~nine months ended ~~June~~September 30, 2022 increased approximately ~~$9,042~~$24,305 compared to the ~~six~~nine months ended ~~June~~September 30, 2021. The increase was primarily attributable to incremental operating cash flows from acquisitions completed between Q3Q4 2021 and Q2Q3 2022 and same store properties, offset by the unrealized depreciation of warrants.

Investing activities: Net cash used in investing activities for the ~~six~~nine months ended ~~June~~September 30, 2022 increased approximately ~~$115,980~~$56,750 compared to the ~~six~~nine months ended ~~June~~September 30, 2021 primarily due to property acquisitions completed during the first ~~six~~nine months in 2022 totaling ~~$180,275~~$197,085 as opposed to ~~$76,023~~$166,374 during the first ~~six~~nine months of 2021, an increase in capital expenditures of ~~$9,746,~~$24,057, offset by a decrease in proceeds from the sale of real estate property and land parcel of $1,982 during the first ~~six~~nine months of 2021.

Financing activities: Net cash provided by financing activities for the ~~six~~nine months ended ~~June~~September 30, 2022 ~~increased $102,370~~decreased $21,565 compared to the ~~six~~nine months ended ~~June~~September 30, 2021. The change was predominantly driven by an increase of ~~$159,094~~$103,898 in net proceeds from secured and unsecured debt and the line of credit, an increase of ~~$404~~$1,292 in repurchase and extinguishment of Series A Preferred Stock, an increase in debt offering costs of ~~$1,690,~~$107, an increase of ~~$5,043~~$6,997 in dividends paid, and an increase of $15,000 in redemption of Series B Preferred Stock during the third quarter of 2022, offset by a decrease of ~~$49,587~~$102,067 in net proceeds from the issuance of common stock.

We intend to make reserve contributions as necessary to aid our objective of preserving capital for our investors by supporting the maintenance and viability of properties we acquire in the future. If reserves and any other available income become insufficient to cover our operating expenses and liabilities, it may be necessary to obtain additional funds by borrowing, refinancing properties or liquidating our investments.

Our short-term liquidity requirements consist primarily of funds to pay for operating expenses and other expenditures directly associated with our properties, including:

In addition, we will require funds for future dividends required to be paid on our Series A ~~and Series B~~ Preferred Stock.

We intend to satisfy our short-term liquidity requirements through our existing cash, cash flow from operating activities and the net proceeds of any potential future offerings.

Our long-term liquidity needs consist primarily of funds necessary to pay for acquisitions, recurring and non-recurring capital expenditures and scheduled debt maturities. We intend to satisfy our long-term liquidity needs through cash flow from operations, long-term secured and unsecured borrowings, future issuances of equity and debt securities, property dispositions and joint venture transactions, and, in connection with acquisitions of additional properties, the issuance of OP units.

As of ~~June~~September 30, 2022, we had available liquidity of approximately ~~$339.3~~$312.0 million, comprised of ~~$29.8~~$29.5 million in cash and cash equivalents and ~~$309.5~~$282.5 million of borrowing capacity on our KeyBank unsecured line of credit. The Company anticipates it will have sufficient liquidity and access to capital resources to meet its current obligations and to meet any scheduled debt maturities.

The following is a schedule of our indebtedness as of ~~June~~September 30, 2022:

	Outstanding Balance			Interest rate at June 30, 2022			Final Maturity Date	Outstanding Balance			Interest rate at September 30, 2022	Final Maturity Date
Secured debt:
AIG Loan	$	113,131			4.08%		November 1, 2023	$	112,449		4.08%	November 1, 2023
Transamerica Loan		68,061			4.35%		August 1, 2028		67,731		4.35%	August 1, 2028
Allianz Loan		62,935			4.07%		April 10, 2026		62,663		4.07%	April 10, 2026
Minnesota Life Loan		20,238			3.78%		May 1, 2028		20,129		3.78%	May 1, 2028
Minnesota Life Memphis Industrial Loan⁽¹⁾		56,000			3.15%		January 1, 2028		56,000		3.15%	January 1, 2028
Lincoln Life Gateway Mortgage		28,800			3.43%		January 1, 2028		28,800		3.43%	January 1, 2028
Ohio National Life Mortgage		19,356			4.14%		August 1, 2024		19,201		4.14%	August 1, 2024
Nationwide Loan		15,000			2.97%		October 1, 2027		15,000		2.97%	October 1, 2027
Midland National Life Insurance Mortgage		10,820			3.50%		March 10, 2028		10,820		3.50%	March 10, 2028
Total secured debt		394,341						$	392,793
Unamortized debt issuance costs, net		(2,410	)						(2,185	)
Unamortized premium/(discount), net		384							336
Secured debt, net		392,315						$	390,944
Unsecured debt:
$100m KeyBank Term Loan⁽²⁾		100,000			2.80%	⁽³⁾	August 11, 2026		100,000		3.10%⁽³⁾⁽⁴⁾	August 11, 2026
$200m KeyBank Term Loan⁽²⁾		200,000			2.80%	⁽³⁾	February 11, 2027		200,000		3.08%⁽³⁾⁽⁴⁾	February 11, 2027
$150m KeyBank Term Loan⁽²⁾		150,000			2.80%	⁽³⁾	May 2, 2027		150,000		4.50%⁽³⁾⁽⁴⁾	May 2, 2027
Total unsecured debt	$	450,000						$	450,000
Unamortized debt issuance costs, net		(2,874	)						(2,818	)
Unsecured debt, net	$	447,126						$	447,182

Borrowings under line of credit:
KeyBank unsecured line of credit⁽²⁾		40,500			3.01%	⁽³⁾	August 11, 2025		67,500		4.16%⁽³⁾	August 11, 2025
Total borrowings under line of credit	$	40,500						$	67,500

The KeyBank unsecured line of credit contains certain financial covenants including limitations on total leverage, unsecured interest coverage and fixed charge coverage charges ratios. Our access to borrowings may be limited if we fail to meet any of these covenants. We are in compliance with our financial covenants as of ~~June~~September 30, 2022, and we anticipate that we will be able to operate in compliance with our financial covenants for the next twelve months.

On June 11, 2021, the Company and Operating Partnership filed a shelf registration statement on Form S-3 (“2021 $750 Million S-3 Filing”) with the U.S. Securities and Exchange Commission (“SEC”) registering an aggregate of $750,000 of securities, consisting of an indeterminate amount of common stock, preferred stock, depository shares, warrants, rights to purchase our common stock and debt securities. As of ~~June~~September 30, 2022, the Company has ~~$600,536~~$583,401 available for issuance under the 2021 $750 Million S-3 Filing.

On May 26, 2021, the Company entered into a distribution agreement with KeyBanc Capital Markets Inc., Robert W. Baird & Co. Incorporated, Barclays Capital Inc., Berenberg Capital Markets LLC, BMO Capital Markets Corp., Capital One Securities Inc., JMP Securities LLC, J.P. Morgan Securities, LLC, National Securities Corporation and Wedbush Securities Inc pursuant to which the Company may issue and sell, from time to time, shares of its common stock, with aggregate gross sales proceeds of up to $125,000 through an “at-the-market” equity offering program (the “2021 $125 Million ATM Program”).

On August 10, 2021, the Company entered into an amendment to the 2021 $125 Million ATM Program (the “2021 Amended ATM Program”) to reference the Company’s shelf registration statement on Form S-3 that was filed with the Securities and Exchange Commission on June 11, 2021. The Company, under the 2021 Amended ATM Program may issue and sell, from time to time, shares of its common stock, with aggregate gross sales proceeds of up to $82,288 through an “at-the-market” equity offering program.

On November 9, 2021, the Company entered into a distribution agreement with KeyBanc Capital Markets Inc., Robert W. Baird & Co. Incorporated, Barclays Capital Inc., Berenberg Capital Markets LLC, BMO Capital Markets Corp., Capital One Securities Inc., JMP Securities LLC, J.P. Morgan Securities, LLC, National Securities Corporation, Wedbush Securities Inc and Wells Fargo Securities pursuant to which the Company may issue and sell, from time to time, shares of its common stock, with aggregate gross sales proceeds of up to $200,000 through an “at-the-market” equity offering program (the “2021 $200 Million ATM Program”).

For the ~~six~~nine months ended ~~June~~September 30, 2022, the Company has issued ~~1,542,700~~2,345,247 shares of its common stock under the 2021 $200 Million ATM Program for aggregate net proceeds of approximately ~~$41,507.~~$58,319. The Company has approximately ~~$112,313~~$95,179 available for issuance under the 2021 $200 Million ATM Program.

Most of our leases are either triple net or provide for tenant reimbursement for costs related to real estate taxes and operating expenses. In addition, most of the leases provide for fixed rent increases. We believe that inflationary increases may be at least partially offset by the contractual rent increases and tenant payment of taxes and expenses described above. We do not believe that inflation has had a material impact on our historical financial position or results of operations.

The Company uses interest rate swap agreements as a derivative instrument to manage interest rate risk and is recognized on the condensed consolidated balance sheets at fair value. As of ~~June~~September 30, 2022, all our outstanding variable rate debt, with the exception of the KeyBank unsecured line of credit, was fixed with interest rate swaps through maturity. We recognize all derivatives within the condensed consolidated balance sheets at fair value. If the derivative is a hedge, depending on the nature of the hedge, changes in the fair value of derivatives are either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive income, which is a component of stockholders’ equity. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings. As of ~~June~~September 30, 2022, the Company has entered into ~~two~~five interest rate swap agreements.

The following table details our outstanding interest rate swaps as of ~~June~~September 30, 2022.

Interest Rate				LIBOR Interest		Notional Value⁽¹⁾		Fair Value⁽²⁾					SOFR Interest		Notional Value⁽¹⁾		Fair Value⁽²⁾
Swap Counterparty	Trade Date	Effective Date	Maturity Date	Strike Rate		June 30, 2022				Trade Date	Effective Date	Maturity Date	Strike Rate		September 30, 2022
Capital One, N.A.	January 28, 2022	February 1, 2022	February 11, 2027		1.609%	$	200,000	$	10,900	July 13, 2022	July 1, 2022	February 11, 2027		1.527%⁽³⁾	$	200,000	$	18,285
JPMorgan Chase Bank, N.A.	January 28, 2022	February 1, 2022	August 8, 2026		1.591%	$	100,000	$	5,028	July 13, 2022	July 1, 2022	August 8, 2026		1.504%⁽³⁾	$	100,000	$	8,489
JPMorgan Chase Bank, N.A.										August 19, 2022	September 1, 2022	May 2, 2027		2.904%	$	75,000	$	2,819
Capital One, N.A.										August 19, 2022	September 1, 2022	May 2, 2027		2.904%	$	37,500	$	1,411
Wells Fargo Bank, N.A.										August 19, 2022	September 1, 2022	May 2, 2027		2.904%	$	37,500	$	1,400

During the next twelve months, the Company estimates that an additional ~~$4,528~~$9,708 will be reclassified as a decrease to interest expense. No assurance can be given that any future hedging activities by us will have the desired beneficial effect on our results of operations or financial condition.

At ~~June~~September 30, 2022, we had ~~$490,500~~$517,500 of outstanding variable rate debt. As of ~~June~~September 30, 2022, all our outstanding variable debt, with the exception of the ~~$150m KeyBank Term Loan and the~~ KeyBank unsecured line of credit which ~~have~~has a balance of ~~$150,000 and $40,500 respectively,~~$67,500, was fixed with interest rate swaps through maturity. The ~~$150m KeyBank Term Loan and~~ KeyBank unsecured line of credit ~~were~~was subject to a weighted average interest rate of ~~2.85%~~3.89% during the ~~six~~nine months ended ~~June~~September 30, 2022. Based on the variable rate borrowings for our ~~$150 KeyBank Term Loan and~~ KeyBank unsecured line of credit outstanding during the ~~six~~nine months ended ~~June~~September 30, 2022, we estimate that had the average interest rate on our weighted average borrowings increased by 25 basis points for the ~~six~~nine months ended ~~June~~September 30, 2022, our interest expense for the quarter would have increased by approximately ~~$109.~~$99. This estimate assumes the interest rate of each borrowing is raised by 25 basis points. The impact on future interest expense as a result of future changes in interest rates will depend largely on the gross amount of our borrowings at that time.

The Financial Conduct Authority announced it intended to stop compelling banks to submit rates for the calculation of LIBOR after June 30, 2023. As a result, in the U.S., the Federal Reserve Board and the Federal Reserve Bank of New York identified the Secured Overnight Financing Rate ("SOFR") as its preferred alternative rate for USD LIBOR in debt and derivative financial instruments. As of ~~June~~September 30, 2022, our interest rate swaps are indexed to ~~LIBOR. While we currently expect LIBOR-indexed rates to be available until June 30, 2023, it is possible that they will become unavailable prior to that time.~~SOFR.

For fixed rate debt, changes in interest rates generally affect the fair value of the debt, but not our earnings or cash flows. The interest rate risk and changes in fair market value of fixed rate debt generally do not have a significant impact on us until we are required to refinance such debt. See Note 6 to the Condensed Consolidated Financial Statements for a discussion of the maturity dates of our various fixed rate debt.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (amounts in thousands)

Our future income, cash flows and fair values relevant to financial instruments are dependent upon prevailing market interest rates. Market risk refers to the risk of loss from adverse changes in market prices and interest rates. The primary market risk we are exposed to is interest rate risk. We have used derivative financial instruments to manage, or hedge, interest rate risks related to some of our borrowings, primarily through interest rate swaps. For additional detail, refer to Interest Rate Risk section within Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” above.

Our management has evaluated, under supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of ~~June~~September 30, 2022. Based on the evaluation, our Chief Executive Officer and Chief Financial Officer concluded that as of ~~June~~September 30, 2022, our disclosure controls and procedures were effective to ensure that information required to be disclosed in reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures.

There were no changes in our internal control over financial reporting during the quarter ended ~~June~~September 30, 2022 that have materially affected, or were reasonably likely to materially affect, our internal control over financial reporting.

The nature of our business exposes our properties, us and our Operating Partnership to the risk of claims and litigation in the normal course of business. Other than routine litigation arising out of the ordinary course of business, we are not presently subject to any material litigation nor, to our knowledge, is any material litigation threatened against us.

There have been no material changes to the risk factors disclosed in our annual report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 23, 2022. For a full description of these risk factors, please refer to "Item 1A. Risk Factors" in our annual report on Form 10-K for the year ended December 31, 2021.

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on our behalf by the undersigned, hereunto duly authorized.

Maryland		27-5466153
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

20 Custom House Street, 11th Floor, Boston, MA 02110		(617) 340-3814
(Address of principal executive offices)		(Registrant’s telephone number)

Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share	PLYM	New York Stock Exchange
7.50% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share	~~PLYM-PrA~~	PLYM-PrA	NYSE American

PART I.	FINANCIAL INFORMATION	PAGE

ITEM 1.1.	Financial Statements

	Condensed Consolidated Balance Sheets at ~~June~~September 30, 2022 and December 31, 2021	1

	Condensed Consolidated Statements of Operations for the Three and ~~Six~~Nine Months Ended ~~June~~September 30, 2022 and 2021	2

	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and ~~Six~~Nine Months Ended ~~June~~September 30, 2022 and 2021	3

	Condensed Consolidated Statements of Changes in Preferred Stock and Equity for the Three and ~~Six~~Nine Months Ended ~~June~~September 30, 2022 and 2021	4

	Condensed Consolidated Statements of Cash Flows for the ~~Six~~Nine Months Ended ~~June~~September 30, 2022 and 2021	6

	Notes to Condensed Consolidated Financial Statements	7

ITEM 2.2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23

ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	3536

ITEM 4.	Controls and Procedures	3536

PART II.	OTHER INFORMATION	3637

SIGNATURES		3738

(1)	On March 11, 2022, a wholly-owned subsidiary of the Operating Partnership assumed a mortgage (the “Minnesota Life Memphis Industrial Loan”) with a balance of $56,000 in conjunction with our acquisition of all outstanding interests in the entity owning the portfolio in Memphis, Tennessee. The Minnesota Life Memphis Industrial Loan, held by Minnesota Life Insurance Company, matures on January 1, 2028, bears interest at 3.15% and is secured by the property. The Minnesota Life Memphis Industrial Loan requires monthly installments of interest only through January 1, 2023, and afterwards, monthly installments of principal plus accrued interest through January 1, 2028, at which time a balloon payment is required. The Company has the right to prepay the borrowings outstanding, subject to a prepayment penalty in effect until the loan approaches maturity.
(2)	On February 1, 2022, the Company repaid in full, the outstanding principal and interest balance of approximately $13,245 on the JPMorgan Chase Loan. The Company recognized a $2,176 loss on extinguishment of debt resulting from prepayment penalty and fees incurred as a result of the repayment.
(3)	On May 2, 2022, the Company entered into an amendment to the KeyBank unsecured facility. The credit facility agreement, as amended, expanded the availability on the KeyBank unsecured line of credit up to $350 million and entered into a new $150 million unsecured term loan (the “$150m KeyBank Term Loan”), with an accordion feature that allows the total borrowing capacity under the credit facility to be increased to $1 billion, subject to certain conditions. The $150m KeyBank Term Loan matures in May 2027. The maturity date for the KeyBank unsecured line of credit remains unchanged. The amendment also provided for the transition of the reference rate for the KeyBank unsecured line of credit and the $100m, $200m, and $150m KeyBank Term Loans from 1-month LIBOR to the Secured Overnight Financing Rate (“SOFR”). Borrowings under the credit agreement, as amended, bear interest at either (1) the base rate (determined as the highest of (a) KeyBank’s prime rate, (b) the Federal Funds rate plus 0.50% and (c) the Adjusted Term SOFR for a one month tenor plus 1.0% or (2) SOFR, plus, in either case, a spread (A) between 35 and 90 basis points for revolver base rate loans or between 135 and 190 basis points for revolver SOFR rate loans and (B) between 30 and 85 basis points for term base rate loans or between 130 and 185 basis points for term SOFR rate loans, with the amount of the spread depending on the Borrower’s total leverage ratio.
(4)	AsFor the month of ~~June 30,~~September 2022, the one-month term SOFR for our unsecured debt and borrowings under line of credit was ~~1.15% and 1.31%, respectively.~~2.512%. The spread over the applicable rate for the $100m, $150m, and $200m KeyBank Term Loans and KeyBank unsecured line of credit is based on the Company’s total leverage ratio plus the 0.1% SOFR index adjustment.
(5)	As of September 30, 2022, the one-month term SOFR for the $100m, $150m and $200m KeyBank Term Loans was swapped to a fixed rate of 1.504%, 2.904%, and 1.5273%, respectively.

Preferred Stock Issuance		Issuance Date		Number of Shares		Liquidation Value per Share			Dividend Rate
7.5% Series A Preferred Stock		10/25/2017		1,972,427		$	25.00		7.5%

					Notional Value⁽¹⁾				Fair Value⁽²⁾
Interest Rate Swap Counterparty	Trade Date	Effective Date	Maturity Date	LIBOR Interest Strike Rate⁽³⁾	June 30, 2022		December 31, 2021		June 30, 2022		December 31, 2021
Capital One, N.A.	January 28, 2022	February 1, 2022	February 11, 2027	1.609%	$	200,000	$	—	$	10,900	$	—
JPMorgan Chase Bank, N.A.	January 28, 2022	February 1, 2022	August 8, 2026	1.591%	$	100,000	$	—	$	5,028	$	—

(1)	Represents the notional value of interest rate swaps effective as of September 30, 2022.
(2)	As of September 30, 2022, all our interest rate swaps were in an asset position.
(3)	On July 13, 2022, the Company entered into amendments to the $200,000 and $100,000 notional interest rate swap agreements with Capital One, N.A. and JPMorgan Chase Bank, N.A., respectively. The amendments transitioned the previous USD-LIBOR floating rates to USD-SOFR CME Term floating rates and are effective as of July 1, 2022.


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
Interest Rate Swaps in Cash Flow Hedging Relationships:	2022		2021		2022		2021
Amount of unrealized gain recognized in AOCI on derivatives	$	5,860	$	—	$	15,928	$	—
Total interest expense presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded	$	635	$	—	$	1,339	$	—

	Shares
Unvested restricted stock at January 1, 2022		227,356
Granted		~~137,130~~141,000
Forfeited		(~~3,000~~8,750	)
Vested		(~~67,532~~79,532	)
Unvested restricted stock at ~~June~~September 30, 2022		~~293,954~~280,074

	•	the uncertainty and economic impact of pandemics, epidemics or other public health emergencies or fear of such events, such as the outbreak of COVID-19, including, without limited, its impact on the Company’s ability to pay common stock dividends and/or the amount and frequency of the dividends;
	•	the competitive environment in which we operate;
	•	real estate risks, including fluctuations in real estate values and the general economic climate in local markets and competition for tenants in such markets;
	•	decreased rental rates or increasing vacancy rates;
	•	potential defaults on or non-renewal of leases by tenants;
	•	potential bankruptcy or insolvency of tenants;
	•	acquisition risks, including failure of such acquisitions to perform in accordance with projections;
	•	the timing of acquisitions and dispositions;
	•	potential natural disasters such as earthquakes, wildfires or floods;
	•	national, international, regional and local economic conditions;
	•	the general level of interest rates;
	•	potential changes in the law or governmental regulations that affect us and interpretations of those laws and regulations, including changes in real estate and zoning or REIT tax laws, and potential increases in real property tax rates;
	•	financing risks, including the risks that our cash flows from operations may be insufficient to meet required payments of principal and interest and we may be unable to refinance our existing debt upon maturity or obtain new financing on attractive terms or at all;
	•	lack of or insufficient amounts of insurance;
	•	our ability to maintain our qualification as a REIT;
	•	litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; and
	•	possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us.

	•	Investments in Real Estate
	•	Impairment of Long-lived assets
	•	Consolidation

	•	property expenses that are not borne by our tenants under our leases;
	•	principal and interest expense on outstanding indebtedness;
	•	general and administrative expenses; and
	•	capital expenditures for tenant improvements and leasing commissions.

	(1)	Represents the notional value of interest rate swaps effective as of ~~June~~September 30, 2022.
	(2)	As of ~~June~~September 30, 2022, all our interest rate swaps were in an asset position.
(3)	On July 13, 2022, the Company entered into amendments to the $200,000 and $100,000 notional interest rate swap agreements with Capital One, N.A. and JPMorgan Chase Bank, N.A., respectively. The amendments transitioned the previous USD-LIBOR floating rates to USD-SOFR CME Term floating rates and are effective as of July 1, 2022.

~~10.1~~31.1	Second Amended and Restated Credit Agreement, dated as of August 11, 2021, by and among Plymouth Industrial OP, LP, the Guarantors named therein, KeyBank National Association and the other lenders party thereto, as amended by the Second Amendment, Increase and Joinder Agreement ~~(incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-38106) filed on May 4, 2022~~

~~10.2~~	Term Loan Credit Agreement, dated as of August 11, 2021, by and among Plymouth Industrial OP, LP, the Guarantors named therein, KeyBank National Association and the other lenders party thereto, as amended by the First Amendment and Joinder Agreement ~~(incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K (File No. 001-38106) filed on May 4, 2022~~

~~31.1~~	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002

32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002

101	The financial information from the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended ~~June~~September 30, 2022 formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income (Loss), (iv) Condensed Consolidated Statements of Changes in Preferred Stock and Equity, (v) Condensed Consolidated Statements of Cash Flows, and (vi) Notes to Condensed Consolidated Financial Statements.

104	Cover Page Interactive Data File formatted in Inline XBRL and contained in Exhibit 101.