Industrial Logistics Properties Trust : Fourth Quarter 2024 Financial Results

Published: 2025-02-18 17:42:02 ET ILPT

Industrial Logistics Properties Trust

Fourth Quarter 2024

Financial Results and

Supplemental Information

February 18, 2025

996 Paragon Way

Rock Hill, SC

945,023 Square Feet1

ILPT Ownership: 100%

Table of Contents

QUARTERLY RESULTS

Industrial Logistics Properties Trust Announces Fourth Quarter 2024 Financial Results

Fourth Quarter 2024 Highlights

FINANCIALS

Key Financial Data

Condensed Consolidated Statements of Income (Loss)

Condensed Consolidated Balance Sheets

Debt Summary

Debt Maturity Schedule

Leverage and Coverage Ratios

Capital Expenditures Summary

PORTFOLIO INFORMATION

Same Property Results

Occupancy and Leasing Summary

Tenant Credit Characteristics and Concentration

Portfolio Lease Expiration and Reset Schedules

Key Financial Data by Investment Portfolio

JOINT VENTURES

Consolidated Joint Venture - Mountain Industrial REIT LLC

21- 24

Unconsolidated Joint Venture - The Industrial Fund REIT LLC

APPENDIX

Calculation and Reconciliation of NOI and Cash Basis NOI

Reconciliation of NOI to Same Property NOI and Calculation of Same Property Cash Basis NOI

Calculation of EBITDA, EBITDAre and Adjusted EBITDAre

Calculation of FFO, Normalized FFO and CAD

30- 31

Company Profile, Research Coverage and Governance Information

Non-GAAPFinancial Measures and Certain Definitions

33- 35

WARNING CONCERNING FORWARD-LOOKING STATEMENTS

Trading Symbols:

Common Shares: ILPT

Investor Relations Contact

Bryan Maher, Senior Vice President

Corporate Headquarters

Two Newton Place

255 Washington Street, Suite 300

Newton, Massachusetts 02458-1634

All amounts in this presentation are unaudited.

Please refer to Non-GAAP Financial Measures and Certain Definitions for terms used throughout this document.

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Q4 2024

Quarterly Results

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Q4 2024

INDUSTRIAL LOGISTICS PROPERTIES TRUST

ANNOUNCES FOURTH QUARTER 2024 FINANCIAL RESULTS

"We finished the year with continued strong demand for our high-quality portfolio as we achieved annual leasing of nearly 6,100,000 square feet. During the quarter, we completed 731,000 square feet of leasing at weighted average rental rates that were 39.3% higher than prior rents for the same space.

As we look ahead to 2025, we remain focused on our ability to realize organic cash flow growth through the leasing of our vacancies, leveraging favorable market conditions to increase rents, maintaining strong relationships with existing tenants to ensure high retention rates and identifying synergies in property operations to enhance net operating income. Simultaneously, we will continue to strategically evaluate opportunities to reduce leverage, in an effort to strengthen our balance sheet and enhance financial flexibility."

Yael Duffy

President and Chief Operating Officer

Newton, MA (February 18, 2025): Industrial Logistics Properties Trust (Nasdaq: ILPT) today announced its financial results for the quarter ended December 31, 2024.

Distribution

On January 16, 2025, ILPT declared a quarterly distribution on its common shares of $0.01 per share to shareholders of record as of the close of business on January 27, 2025. This distribution will be paid on or about February 20, 2025.

Conference Call

A conference call to discuss ILPT's fourth quarter results will be held on Wednesday, February 19, 2025 at 1:00 p.m. Eastern Time. The conference call may be accessed by dialing (877) 418-4826 or

About Industrial Logistics Properties Trust

ILPT is a real estate investment trust, or REIT, focused on owning and leasing high quality industrial and logistics properties. As of December 31, 2024, ILPT's portfolio consisted of 411 properties containing approximately 59.9 million rentable square feet located in 39 states. Approximately 77% of ILPT's annualized rental revenues as of December 31, 2024 are derived from investment grade tenants, tenants that are subsidiaries of investment grade rated entities or Hawaii land leases. ILPT is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $40 billion in assets under management as of December 31, 2024 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. ILPT is headquartered in Newton, MA. For more information, visit www.ilptreit.com.

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Q4 2024

Fourth Quarter 2024 Highlights

(As of and for the three months ended December 31, 2024, unless otherwise noted)

Portfolio

Update

Financial

Results

Financing

and

Liquidity

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Q4 2024

Financials

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Q4 2024

Key Financial Data

(dollars in thousands, except per share data)

As of and for the Three Months Ended

As of

12/31/2024

9/30/2024

6/30/2024

3/31/2024

12/31/2023

12/31/2024

Selected Income Statement Data:

Capitalization:

Rental income

110,521

108,945

110,621

112,235

108,895

Total common shares

66,144,308

Net loss

(34,380)

(35,407)

(33,479)

(33,902)

(41,402)

Closing price

3.65

Net loss attributable to common shareholders

(24,101)

(24,990)

(23,175)

(23,403)

(31,240)

Equity market capitalization

241,427

NOI

84,186

84,709

86,265

86,052

84,887

Debt

4,307,829

Cash Basis NOI

81,610

82,503

82,935

82,196

81,453

Total market capitalization

4,549,256

Adjusted EBITDAre

82,156

83,947

85,057

84,400

83,072

FFO attributable to common shareholders

8,877

8,063

8,965

9,450

7,799

Net Debt:

Normalized FFO attributable to common shareholders

8,877

8,063

8,965

9,450

8,086

Principal balance

4,307,829

CAD attributable to common shareholders

7,696

11,247

14,005

11,928

8,948

Cash and cash equivalents

(131,706)

Rolling four quarter CAD attributable to common shareholders

44,876

46,128

45,386

41,184

39,438

Restricted cash and cash equivalents

(110,774)

Net debt

4,065,349

Per Common Share Data (basic and diluted):

Net loss attributable to common shareholders

(0.37)

(0.38)

(0.35)

(0.36)

(0.48)

FFO attributable to common shareholders

0.13

0.12

0.14

0.12

Normalized FFO attributable to common shareholders

0.13

0.12

0.14

0.12

CAD attributable to common shareholders

0.12

0.17

0.21

0.18

0.14

Rolling four quarter CAD attributable to common shareholders

0.68

0.70

0.69

0.63

0.60

Dividends:

Annualized dividends paid per share

0.04

Annualized dividend yield (at end of period)

1.1%

0.8%

1.1%

0.9%

Annualized Normalized FFO attributable to common shareholders payout ratio

7.7%

8.3%

7.1%

8.3%

CAD attributable to common shareholders payout ratio

8.3%

5.9%

4.8%

5.6%

7.1%

Rolling four quarter CAD attributable to common shareholders payout ratio

5.9%

5.7%

5.8%

6.3%

6.7%

Selected Balance Sheet Data:

Total cash and cash equivalents

131,706

153,863

146,150

128,394

112,341

Total gross assets

5,930,217

5,946,943

5,950,348

5,956,536

5,961,129

1151 South Graham Road

Total assets

5,406,331

5,454,808

5,489,822

5,527,569

5,563,675

Greenwood, IN

Total liabilities

4,397,001

4,412,049

4,402,055

4,405,069

4,401,896

615,284 Square Feet

Total equity

1,009,330

1,042,759

1,087,767

1,122,500

1,161,779

ILPT Ownership: 61%

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Q4 2024

Condensed Consolidated Statements of Income (Loss)

(amounts in thousands, except per share data)

Three Months Ended December 31,

Year Ended December 31,

2024

2023

2024

2023

Rental income

110,521

108,895

442,322

437,338

Expenses:

Real estate taxes

16,214

13,560

62,563

60,053

Other operating expenses

10,121

10,448

38,547

38,192

Depreciation and amortization

41,784

44,450

171,987

178,728

General and administrative

7,589

7,414

30,454

31,164

Acquisition and other transaction related costs

287

(Recovery) loss on impairment of real estate (1)

(98)

156

Total expenses

75,708

76,061

303,551

308,580

Interest income

2,506

2,571

11,427

7,911

Interest expense

(71,739)

(72,979)

(292,536)

(288,537)

Gain on sale of real estate

2,684

1,710

Loss on early extinguishment of debt

(359)

Loss before income taxes and equity in earnings of unconsolidated joint venture

(34,420)

(34,890)

(142,338)

(150,517)

Income tax (expense) benefit

(60)

(162)

(104)

Equity in earnings (losses) of unconsolidated joint venture

100

(6,521)

5,332

902

Net loss

(34,380)

(41,402)

(137,168)

(149,719)

Net loss attributable to noncontrolling interest

10,279

10,162

41,499

41,730

Net loss attributable to common shareholders

(24,101)

(31,240)

(95,669)

(107,989)

Weighted average common shares outstanding (basic and diluted)

65,833

65,551

65,697

65,430

158 West Yard Road

Feura Bush, NY

354,000 Square Feet

ILPT Ownership: 100%

Net loss per share attributable to common shareholders (basic and diluted)

(0.37)

(0.48)

(1.46)

(1.65)

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Q4 2024

Condensed Consolidated Balance Sheets

(dollars in thousands)

December 31,

2024

2023

ASSETS

Real estate properties

5,180,385

5,169,552

Accumulated depreciation

(523,886)

(397,454)

Total real estate properties, net

4,656,499

4,772,098

Investment in unconsolidated joint venture

116,732

115,360

Acquired real estate leases, net

199,193

243,521

Cash and cash equivalents

131,706

112,341

Restricted cash and cash equivalents

110,774

133,382

Rents receivable

129,162

119,170

Other assets, net

62,265

67,803

Total assets

5,406,331

5,563,675

LIABILITIES AND EQUITY

Mortgages and notes payable, net

4,300,537

4,305,941

Accounts payable and other liabilities

76,753

72,455

Assumed real estate lease obligations, net

14,937

18,534

Due to related persons

4,774

4,966

Total liabilities

4,397,001

4,401,896

Commitments and contingencies

Equity attributable to common shareholders

562,019

669,954

Noncontrolling interest

447,311

491,825

Total equity

1,009,330

1,161,779

Total liabilities and equity

5,406,331

5,563,675

235 Great Pond Road

Windsor, CT

113,753 Square Feet

ILPT Ownership: 100%

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Q4 2024

Debt Summary

As of December 31, 2024

(dollars in thousands)

Interest

Principal

Maturity

Years to

Entity

Type

Secured By

Rate (1)

Balance

Date

Maturity

ILPT

Floating rate - interest only (2)

69 mainland and 35 Hawaii properties

6.71%

1,235,000

10/09/2025

0.8

ILPT

Fixed rate - interest only

186 Hawaii properties

4.31%

650,000

02/07/2029

4.1

ILPT

Fixed rate - interest only

17 mainland properties

4.42%

700,000

03/09/2032

7.2

Mountain JV

Floating rate - interest only (3)

82 mainland properties

5.81%

1,400,000

03/09/2025

0.2

Mountain JV

Fixed rate - interest only

Four mainland properties

6.25%

91,000

06/10/2030

5.4

Mountain JV

Fixed rate - amortizing

One mainland property

3.67%

10,020

05/01/2031

6.3

Mountain JV

Fixed rate - amortizing

One mainland property

4.14%

11,636

07/01/2032

7.5

Mountain JV

Fixed rate - amortizing

One mainland property

4.02%

26,200

10/01/2033

8.8

Mountain JV

Fixed rate - amortizing

One mainland property

4.13%

36,684

11/01/2033

8.8

Mountain JV

Fixed rate - amortizing

One mainland property

3.10%

22,637

06/01/2035

10.4

Mountain JV

Fixed rate - amortizing

One mainland property

2.95%

36,655

01/01/2036

11.0

Mountain JV

Fixed rate - amortizing

One mainland property

4.27%

41,491

11/01/2037

12.8

Mountain JV

Fixed rate - amortizing

One mainland property

3.25%

46,506

01/01/2038

13.0

Weighted average / total

5.51%

4,307,829

2.7

52 Pettengill Road

Londonderry, NH

614,240 Square Feet

ILPT Ownership: 100%

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Q4 2024

Disclaimer

Industrial Logistics Properties Trust published this content on February 18, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 18, 2025 at 22:39:41.690.