Business
Industrial Logistics Properties Trust Completes Acquisition of Monmouth Real Estate Investment Corporation
Acquisition of High Quality E-Commerce Properties Enhances ILPT’s Scale and Increases Tenant and Geographic Diversity Complements ILPT’s Existing Portfolio
About this update from Industrial Logistics Properties Trust
[{"type":"text","content":"\nAcquisition of High Quality E-Commerce Properties Enhances ILPT’s Scale and Increases Tenant and Geographic Diversity\n\nComplements ILPT’s Existing Portfolio and Increases Exposure to Key Markets\n\nAcquisition Expected to be Accretive to Normalized FFO Per Share\n\nEntered Into a New Joint Venture with an Institutional Investor for 95 MNR properties\n\n NEWTON, Mass.--(BUSINESS WIRE)--\nIndustrial Logistics Properties Trust (Nasdaq: ILPT) today announced that it has completed its acquisition of Monmouth Real Estate Investment Corporation (NYSE: MNR) for $21.00 per share in an all-cash transaction, valued at approximately $4.0 billion, including committed MNR acquisitions, transaction costs and the assumption of approximately $323 million of debt. This transaction was approved by MNR’s shareholders on February 17, 2022 and closed on February 25, 2022. The MNR portfolio includes 126 Class A, single tenant, net leased, e-commerce focused industrial properties containing over 26 million square feet of space with a weighted average lease term of approximately eight years that was 99.7% occupied and over 80.0% leased to investment grade rated tenants as of February 25, 2022. ILPT expects the MNR portfolio to generate annualized rental revenues of approximately $175 million in 2022 and expects the transaction to be accretive to normalized funds from operations, or Normalized FFO, per share.\n\nSimultaneous with closing the MNR transaction, ILPT entered into a new joint venture with an institutional investor for 95 MNR properties that are expected to generate approximately $137 million in annualized net operating income, or NOI, in 2022. The investor contributed approximately $587 million for a 39% non-controlling equity interest and ILPT retained a 61% equity interest in the joint venture. The joint venture also entered into a $1.4 billion floating rate CMBS loan secured by 82 of the acquired properties and assumed $323 million of existing MNR mortgage debt. ILPT used the proceeds from the joint venture to partially fund the MNR purchase. ILPT funded its equity interest in the joint venture and the balance of the MNR purchase price with proceeds from a $1.385 billion draw on a bridge loan facility secured by 109 MNR and ILPT properties and proceeds from a $700 million fixed rate CMBS loan secured by 17 existing ILPT properties. In ...