Plymouth Industrial REIT taken private in $2.1B deal
Makarora and Ares complete all-cash acquisition at $22 per share, 50% premium to August price
Makarora Management and Ares Alternative Credit funds completed their approximately $2.1 billion acquisition of Plymouth Industrial REIT on Tuesday, taking the industrial property company private at $22.00 per share in an all-cash transaction. The acquisition price represented a roughly 50% premium to Plymouth's unaffected closing common stock price on August 18, 2025, signaling strong confidence in the industrial real estate sector's outlook despite broader market volatility.
Plymouth's shares traded at the deal price on Tuesday with elevated volume of approximately 3.57 million shares, compared with typical daily volume of fewer than 1 million shares, as investors positioned ahead of the transaction's closing. The company's stock will be delisted from the NYSE following the completion of the deal.
Boston-based Plymouth Industrial REIT operates as a vertically integrated real estate investment company specializing in industrial properties. Its portfolio comprises 226 buildings totaling more than 32 million square feet, strategically located across key Midwest and East Coast logistics markets in the United States. The assets are positioned near major population centers, which the acquirers expect to benefit from sustained industrial demand.
The transaction marks a significant expansion for Ares into industrial real estate, adding a large, diversified logistics portfolio to its alternative credit platform. According to industry analysts, the deal allows the buyers to leverage Plymouth's portfolio of cost-competitive industrial assets, which align with broader trends favoring warehouse and distribution space amid the growth of e-commerce and supply chain reconfiguration.
Prior to the acquisition announcement, Plymouth Industrial REIT maintained a Hold rating from seven analysts with an average target price of $22.20, according to Zacks Investment Research. The company's 52-week trading range spanned from $12.38 to $22.73, reflecting significant volatility in the REIT sector over the past year.
In the fiscal quarter ending September 30, 2025, Plymouth reported revenue of $163.7 million over the trailing twelve months, with earnings per share of $2.02 and a dividend yield of 4.37%. The deal's $22.00 per share purchase price values the company at approximately 10.9 times trailing earnings, a multiple consistent with recent industrial REIT take-private transactions.
The completion follows Plymouth shareholder approval of the acquisition proposal around January 26, 2026. The all-cash nature of the transaction provided shareholders with immediate liquidity at a substantial premium, particularly attractive given the uncertain interest rate environment that has pressured REIT valuations throughout 2025.
Industrial real estate has remained a relatively resilient segment within commercial property markets, bolstered by structural shifts in supply chains and continued demand for logistics facilities near population centers. However, rising interest rates have increased financing costs for property owners, creating opportunities for well-capitalized private equity firms to acquire public REITs at attractive valuations.
For Makarora and Ares, the Plymouth acquisition represents a strategic bet on the long-term fundamentals of the U.S. industrial market. The buyers have indicated they plan to operate the portfolio as a private entity, potentially pursuing operational improvements and selective asset management strategies away from public market scrutiny.
The deal is the latest in a series of take-private transactions in the REIT sector, as private capital providers target quality real estate platforms that have seen their share prices compress despite strong underlying property fundamentals. With the completion of this transaction, Plymouth Industrial REIT exits public markets after approximately seven years as a NYSE-listed company.