Update shared on21 Aug 2025
Fair value Increased 7.05%The consensus price target for Plymouth Industrial REIT has been raised to $19.62, reflecting the premium and perceived fairness of Sixth Street’s acquisition offer at a 7.5% cap rate and limited likelihood of a competing bid.
Analyst Commentary
- Price target increase reflects Sixth Street's acquisition offer at a 7.5% implied cap rate, viewed as fair relative to historical valuation.
- The offer represents a substantial 45.2% premium over Plymouth's volume-weighted average price.
- Premium is also 1.5% above the consensus net asset value of $23.74 per share.
- There is potential for the board to allow a 30-day go-shop period to seek higher bids.
- Bullish analysts believe the likelihood of a competing bidder emerging is low.
What's in the News
- Sixth Street Partners proposed to acquire a 90.01% stake in Plymouth Industrial REIT for approximately $1 billion ($24.10 per share) in a cash transaction.
- The company completed a share buyback of 1,031,223 shares (2.26% of shares outstanding) for $16.76 million.
- Plymouth Industrial REIT was dropped from the Russell 2000 Dynamic Index.
- Acquired a 1.95-million-square-foot portfolio in Ohio (21 buildings, 97% leased) for $193 million, with in-place rents ~22% below market and a 25%-plus discount to replacement cost.
- Acquired a 100,420-square-foot, fully leased warehouse in Atlanta for $11.7 million at a 6.95% NOI yield, expanding its Atlanta footprint to 15 buildings.
Valuation Changes
Summary of Valuation Changes for Plymouth Industrial REIT
- The Consensus Analyst Price Target has risen from $18.33 to $19.62.
- The Discount Rate for Plymouth Industrial REIT has fallen from 10.19% to 9.37%.
- The Future P/E for Plymouth Industrial REIT has risen from 13.16x to 14.17x.
Disclaimer
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