Industrial Logistics Properties Trust · NASDAQ:ILPT
Industrial Logistics Properties Trust — Q1 2024 Earnings Presentation
36 slides from Industrial Logistics Properties Trust's earnings presentation, Apr 30, 2024
Slide 1: First Quarter 2024 Financial Results and Supplemental Information
1 Industrial Logistics Properties Trust First Quarter 2024 Financial Results and Supplemental Information April 30, 2024 Exhibit 99.2 1151 South Graham Road Greenwood, IN 615,284 Square Feet ILPT Ownership 61%
Slide 2: Table of Contents
2Q1 2024RETURN TO TABLE OF CONTENTS QUARTERLY RESULTS Industrial Logistics Properties Trust Announces First Quarter 2024 Financial Results ..................................................... 4 First Quarter 2024 Highlights ...........................................................................
Slide 3: Quarterly Results
3Q1 2024RETURN TO TABLE OF CONTENTS Quarterly Results
Slide 4: ILPT Announces First Quarter 2024 Financial Results
4Q1 2024RETURN TO TABLE OF CONTENTS "Our first quarter results continued to highlight the strong operating fundamentals of our portfolio, as the majority of our key financial metrics increased year over year and sequentially. Leasing velocity also remained robust, as we completed nearly two million
Slide 5: First Quarter 2024 Highlights
5Q1 2024RETURN TO TABLE OF CONTENTS Portfolio Update • Portfolio occupancy grew to 99.0%, representing an increase of 20 basis points quarter-over-quarter. • Executed 1,981,000 square feet of total leasing, including rent resets, at weighted average rental rates that were 38.3% higher than prior ren
Slide 6: Financials
6Q1 2024RETURN TO TABLE OF CONTENTS Financials
Slide 7: Key Financial Data
7Q1 2024RETURN TO TABLE OF CONTENTS As of and for the Three Months Ended As of 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 3/31/2024 Selected Income Statement Data: Capitalization: Rental income $ 112,235 $ 108,895 $ 110,142 $ 108,043 $ 110,258 Total common shares 65,831,530 Net loss $ (33,90
Slide 8: Condensed Consolidated Statements of Income (Loss)
8Q1 2024RETURN TO TABLE OF CONTENTS Condensed Consolidated Statements of Income (Loss) Three Months Ended March 31, 2024 2023 Rental income $ 112,235 $ 110,258 Expenses: Real estate taxes 15,861 16,467 Other operating expenses 10,322 9,318 Depreciation and amortization 43,577 45,457 General and admi
Slide 9: Condensed Consolidated Balance Sheets
9Q1 2024RETURN TO TABLE OF CONTENTS Condensed Consolidated Balance Sheets March 31, December 31, 2024 2023 ASSETS Real estate properties $ 5,170,771 $ 5,169,552 Accumulated depreciation (428,967) (397,454) Total real estate properties, net 4,741,804 4,772,098 Investment in unconsolidated joint ventu
Slide 10: Debt Summary
10Q1 2024RETURN TO TABLE OF CONTENTS (1) Interest rates reflect the impact of interest rate caps, as applicable. (2) This loan has three, one year extension options, subject to the satisfaction of certain conditions, and requires that interest be paid at an annual rate of SOFR plus a weighted averag
Slide 11: Debt Maturity Schedule
11Q1 2024RETURN TO TABLE OF CONTENTS (1) In March 2024, Mountain JV exercised the first of its three, one year options to extend the maturity date of its secured floating rate loan. (2) This secured floating rate loan matures in October 2024, subject to three, one year extension options. Debt Maturi
Slide 12: Leverage and Coverage Ratios
12Q1 2024RETURN TO TABLE OF CONTENTS As of and for the Three Months Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Leverage Ratios: Net debt / total gross assets 68.6% 68.4% 68.5% 68.8% 69.7% Net debt / gross book value of real estate assets 71.7% 71.3% 71.7% 72.2% 72.4% Net debt / total m
Slide 13: Capital Expenditures Summary
13Q1 2024RETURN TO TABLE OF CONTENTS (dollars in thousands) For the Three Months Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Tenant improvements and leasing costs $ 2,571 $ 2,619 $ 1,241 $ 2,498 $ 2,040 Building improvements 802 2,406 2,720 1,283 370 Recurring capital expenditures 3,373
Slide 14: Portfolio Information
14Q1 2024RETURN TO TABLE OF CONTENTS Portfolio Information
Slide 15: Same Property Results
15Q1 2024RETURN TO TABLE OF CONTENTS (dollars and sq. ft. in thousands) As of and for the Three Months Ended 3/31/2024 3/31/2023 Properties 411 411 Square feet (1) 59,893 59,951 Percent leased 99.0% 98.7% Rental income $ 112,235 $ 110,195 NOI $ 86,085 $ 84,427 NOI % change 2.0% Cash Basis NOI $ 82,2
Slide 16: Occupancy and Leasing Summary
16Q1 2024RETURN TO TABLE OF CONTENTS (dollars and sq. ft. in thousands, except per sq. ft. data) As of and for the Three Months Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Properties 411 411 413 413 413 Total sq. ft. 59,893 59,951 59,983 59,983 59,983 Percentage leased 99.0% 98.8% 98.9%
Slide 17: Tenant Credit Characteristics and Concentration
17Q1 2024RETURN TO TABLE OF CONTENTS As of March 31, 2024 % of Total Annualized Tenant Credit Characteristics Rental Revenues Investment grade rated 18.4% Subsidiaries of investment grade rated parent entities 36.9% Other leased Hawaii lands 21.3% Subtotal investment grade rated, subsidiaries of inv
Slide 18: Portfolio Lease Expiration and Reset Schedules
18Q1 2024RETURN TO TABLE OF CONTENTS Cumulative Cumulative % of Total % of Total % of Total % of Total Leased Leased Leased Annualized Annualized Annualized No. of Square Feet Square Feet Square Feet Rental Revenues Rental Revenues Rental Revenues Period/Year Leases Expiring Expiring Expiring Expiri
Slide 19: Key Financial Data by Investment Portfolio
19Q1 2024RETURN TO TABLE OF CONTENTS (dollars and sq. ft. in thousands, except per sq. ft. data) Key Financial Data by Investment Portfolio As of and for the Three Months Ended March 31, 2024 ILPT Wholly Owned Properties Mountain Industrial ILPT Mainland Hawaii Total REIT LLC (1) Other (2) Consolida
Slide 20: Joint Ventures
20Q1 2024RETURN TO TABLE OF CONTENTS Joint Ventures
Slide 21: Consolidated Joint Venture - Mountain Industrial REIT LLC
21Q1 2024RETURN TO TABLE OF CONTENTS GA: 12.5% TX: 10.1% OH: 9.9% IN: 8.5% NC: 5.9% FL: 5.1%MI: 4.6% NJ: 3.9% IL: 3.8% MS: 3.7% KS: 3.6% 16 Other States: 28.4% Consolidated Joint Venture - Mountain Industrial REIT LLC (dollars in thousands) Number of Leases Expiring 2 7 12 13 7 41 % of Total Annuali
Slide 22: Mountain JV Consolidated Balance Sheets
22Q1 2024RETURN TO TABLE OF CONTENTS (dollars and sq. ft. in thousands) ILPT Number of Square Joint Venture Ownership Presentation Properties States Feet Mountain Industrial REIT LLC 61% Consolidated 94 27 20,981 (1) Amounts shown in the balance sheet reflect 100% ownership interest of this joint ve
Slide 23: Operating Information of the Consolidated Joint Venture
23Q1 2024RETURN TO TABLE OF CONTENTS Operating Information of the Consolidated Joint Venture (100%) Pro-Rata Operating Information of the Consolidated Joint Venture (ILPT Share) (1) Three Months Ended March 31, Three Months Ended March 31, 2024 2023 2024 2023 Rental income $ 42,363 $ 43,066 $ 25,841
Slide 24: Operating Information of the Consolidated Joint Venture (continued)
24Q1 2024RETURN TO TABLE OF CONTENTS Operating Information of the Consolidated Joint Venture (100%) Pro-Rata Operating Information of the Consolidated Joint Venture (ILPT Share) (1) Three Months Ended March 31, Three Months Ended March 31, 2024 2023 2024 2023 Normalized FFO $ (270) $ 1,033 $ (166) $
Slide 25: Unconsolidated Joint Venture - The Industrial Fund REIT LLC
25Q1 2024RETURN TO TABLE OF CONTENTS Unconsolidated Joint Venture - The Industrial Fund REIT LLC (1) As of March 31, 2024 ILPT Number of Square Investment in Joint Venture Ownership Properties States Feet Joint Venture The Industrial Fund REIT LLC 22% 18 12 11,726 $ 116,093 Three Months Ended March
Slide 26: Appendix
26Q1 2024RETURN TO TABLE OF CONTENTS Appendix
Slide 27: Calculation and Reconciliation of NOI and Cash Basis NOI
27Q1 2024RETURN TO TABLE OF CONTENTS Calculation and Reconciliation of NOI and Cash Basis NOI (dollars in thousands) For the Three Months Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Calculation of NOI and Cash Basis NOI: Rental income $ 112,235 $ 108,895 $ 110,142 $ 108,043 $ 110,258 Re
Slide 28: Reconciliation of NOI to Same Property NOI
28Q1 2024RETURN TO TABLE OF CONTENTS Reconciliation of NOI to Same Property NOI and Calculation of Same Property Cash Basis NOI (dollars in thousands) For the Three Months Ended March 31, 2024 2023 Reconciliation of NOI to Same Property NOI: Rental income $ 112,235 $ 110,258 Real estate taxes (15,86
Slide 29: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
29Q1 2024RETURN TO TABLE OF CONTENTS Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Net loss $ (33,902) $ (41,402) $ (36,191) $ (36,580) $ (35,546) Plus: interest expense 73,230 72,979 72,941
Slide 30: Calculation of FFO, Normalized FFO and CAD
30Q1 2024RETURN TO TABLE OF CONTENTS Calculation of FFO, Normalized FFO and CAD (dollars in thousands) For the Three Months Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Net loss attributable to common shareholders $ (23,403) $ (31,240) $ (26,112) $ (25,828) $ (24,809) Equity in (earnings
Slide 31: Calculation of CAD and Related Per Share Data
31Q1 2024RETURN TO TABLE OF CONTENTS (dollars and shares in thousands, except per share data) For the Three Months Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Normalized FFO attributable to common shareholders $ 9,450 $ 8,086 $ 7,945 $ 7,594 $ 7,916 Plus (minus): Non-cash interest expen
Slide 32: Company Profile, Research Coverage and Governance Information
32Q1 2024RETURN TO TABLE OF CONTENTS Company Profile, Research Coverage and Governance Information The Company: ILPT is included in 117 market indices and comprises more than 1% of the following indices as of March 31, 2024: Invesco S&P SmallCap High Dividend Low Volatility ETF INAV Index (XSHDIV),
Slide 33: Non-GAAP Financial Measures and Certain Definitions
33Q1 2024RETURN TO TABLE OF CONTENTS Unless otherwise noted, all data presented in this presentation excludes 18 properties, which are encumbered by $538.7 million of mortgage notes, owned by an unconsolidated joint venture in which ILPT owns a 22% equity interest. See page 25 for information regard
Slide 34: Non-GAAP Financial Measures and Certain Definitions (Continued)
34Q1 2024RETURN TO TABLE OF CONTENTS Non-GAAP Financial Measures and Certain Definitions (Continued) Cash Available for Distribution: ILPT calculates cash available for distribution, or CAD, as shown on page 31. ILPT defines CAD as Normalized FFO minus ILPT's proportionate share of Normalized FFO fr
Slide 35: Certain Definitions: ILPT Ownership and Wholly Owned Properties
35Q1 2024RETURN TO TABLE OF CONTENTS ILPT Ownership - References to ILPT's percentage ownership of properties owned by its joint ventures reflect ILPT's ownership percentage of the joint venture. ILPT Wholly Owned Properties - ILPT Wholly Owned Properties is comprised of 316 properties that are whol
Slide 36: Warning Concerning Forward-Looking Statements
36Q1 2024RETURN TO TABLE OF CONTENTS Warning Concerning Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws that are subject to risks and uncertainties. These statements
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