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Industrial Logistics Properties Trust Announces $350 Million Mortgage Financing for a Portfolio of Mainland Properties
NEWTON, Mass.--(BUSINESS WIRE)-- Industrial Logistics Properties Trust (Nasdaq: ILPT) today announced that it has closed on a $350 million mortgage loan that
About this update from Industrial Logistics Properties Trust
[{"type":"text","content":" NEWTON, Mass.--(BUSINESS WIRE)--\nIndustrial Logistics Properties Trust (Nasdaq: ILPT) today announced that it has closed on a $350 million mortgage loan that matures in November 2029. The loan is secured by a portfolio of 11 of ILPT’s mainland properties located in eight states containing approximately eight million square feet. ILPT’s cost basis in this portfolio of properties is $556.8 million, and as of September 30, 2019, the weighted average remaining lease term (by annualized rental revenue) for these properties was 7.1 years and occupancy was 100%.\n\n\nThe 10-year loan is non-amortizing and carries a fixed interest rate of 3.33% per annum, which is lower than the current borrowing cost on ILPT’s unsecured revolving credit facility. ILPT expects to use the proceeds of this loan to reduce outstanding borrowings under its $750 million unsecured revolving credit facility.\n\n\n“We are pleased to take advantage of the current low interest rate environment to replace a portion of our floating rate debt with attractive long term, interest only, fixed rate debt,” said John Murray, ILPT’s President and Chief Executive Officer. “This financing increases our fixed rate debt to 79% of total debt, extends the average maturity of our debt to over 7.5 years, and provides positive leverage on this high quality mainland industrial portfolio.”\n\n\nThe loan was provided by Morgan Stanley, UBS Investment Bank and Bank of America. Tremont Realty Advisors acted as ILPT’s advisor and Sullivan & Worcester LLP provided legal counsel to ILPT in this transaction.\n\n\nIndustrial Logistics Properties Trust is a real estate investment trust, or REIT, that owns and leases industrial and logistics properties throughout the United States. ILPT is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, MA.\n\n\nWarning Regarding Forward-Looking Statements\n\n\nThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon ILPT’s present beliefs and expectations, but these statements and the implications of these statements are not guaranteed to occur and may not occur for various reasons, some of which are beyond ILPT’s co...