Industrial Logistics Properties Trust · NASDAQ:ILPT
Industrial Logistics Properties Trust — Q4 2018 Earnings Presentation
45 slides from Industrial Logistics Properties Trust's earnings presentation, Feb 20, 2019
Slide 1: Fourth Quarter 2018 Supplemental Operating and Financial Data
Industrial Logistics Properties Trust Exhibit 99.2 Fourth Quarter 2018 Supplemental Operating and Financial Data 16101 Queens Court, Upper Marlboro, MD Square Feet: 220,800 Tenant: La Z Boy Incorporated 1 All amounts in this report are unaudited.
Slide 2: Table of Contents
TABLE OF CONTENTS PAGE/ EXHIBIT WARNING CONCERNING FORWARD LOOKING STATEMENTS 3 CORPORATE INFORMATION Company Profile 7 Investor Information 8 Research Coverage 9 FINANCIALS TABLE OF CONTENTS TABLE Key Financial Data 11 Consolidated Balance Sheets 12 Consolidated Statements of Income 13 Consolidated
Slide 3: Warning Concerning Forward Looking Statements
WARNING CONCERNING FORWARD LOOKING STATEMENTS THIS PRESENTATION OF SUPPLEMENTAL OPERATING AND FINANCIAL DATA CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO, WHENEVER WE USE WORD
Slide 4: Warning Concerning Forward Looking Statements (Continued)
WARNING CONCERNING FORWARD LOOKING STATEMENTS (CONTINUED) • THE IMPACT OF CONDITIONS IN THE ECONOMY AND THE CAPITAL MARKETS ON US AND OUR TENANTS, • COMPETITION WITHIN THE REAL ESTATE INDUSTRY, PARTICULARLY FOR INDUSTRIAL AND LOGISTICS PROPERTIES IN THOSE MARKETS IN WHICH OUR PROPERTIES ARE LOCATED,
Slide 5: Warning Concerning Forward Looking Statements (Continued)
WARNING CONCERNING FORWARD LOOKING STATEMENTS (CONTINUED) • SOME OF OUR TENANTS MAY NOT RENEW EXPIRING LEASES, AND WE MAY BE UNABLE TO OBTAIN NEW TENANTS TO MAINTAIN OR INCREASE THE HISTORICAL OCCUPANCY RATES OF, OR RENTS FROM, OUR PROPERTIES, • THE COMPETITIVE ADVANTAGES WE BELIEVE WE HAVE MAY NOT
Slide 6: Corporate Information
CORPORATE INFORMATION 10100 89th Avenue, Maple Grove, MN Square Feet: 319,062 Major Tenant: Bunzl Minneapolis, LLC 6
Slide 7: Company Profile
COMPANY PROFILE The Company: Industrial Logistics Properties Trust, or ILPT, we our or us, is a real estate investment trust, or REIT, formed in 2017 as a wholly owned subsidiary of Select Income REIT, or SIR, a former publicly traded REIT that merged with Office Properties Income Trust, or OPI, Cor
Slide 8: Investor Information
INVESTOR INFORMATION Board of Trustees Bruce M. Gans Lisa Harris Jones Joseph L. Morea Independent Trustee Independent Trustee Independent Trustee John G. Murray Adam D. Portnoy Managing Trustee Managing Trustee INVESTOR INFORMATION INVESTOR Senior Management John G. Murray Richard W. Siedel, Jr. Pr
Slide 9: Research Coverage
RESEARCH COVERAGE Equity Research Coverage B. Riley FBR RBC Capital Markets Bryan Maher Michael Carroll (646) 885-5423 (440) 715-2649 RESEARCH COVERAGE bmaher@brileyfbr.com michael.carroll@rbccm.com Bank of America / Merrill Lynch UBS Equities James Feldman Frank Lee (646) 855-5808 (415) 352-5679 ja
Slide 10: Financials
FINANCIALS 5300 Centerpoint Parkway, Groveport, OH Square Feet: 581,342 Tenant: Avnet, Inc. 10
Slide 11: Key Financial Data
KEY FINANCIAL DATA (dollars in thousands, except per share data) As of and For the Three Months Ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 Selected Balance Sheet Data: Total gross assets (1) $ 1,627,902 $ 1,594,907 $ 1,544,931 $ 1,512,327 $ 1,486,297 Total assets $ 1,534,611 $ 1,506,6
Slide 12: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS (dollars in thousands, except per share data) December 31, 2018 2017 ASSETS Real estate properties: Land $ 670,501 $ 642,706 Buildings and improvements 791,895 700,896 1,462,396 1,343,602 Accumulated depreciation (93,291) (74,614) 1,369,105 1,268,988 Acquired real estate
Slide 13: Consolidated Statements of Income
CONSOLIDATED STATEMENTS OF INCOME (amounts in thousands, except per share data) Three Months Ended December 31, Year Ended December 31, 2018 2017 2018 2017 Revenues: Rental income $ 35,841 $ 33,905 $ 139,311 $ 134,826 Tenant reimbursements and other income 6,233 5,490 23,219 21,680 Total revenues 42
Slide 14: Consolidated Statements of Cash Flows
CONSOLIDATED STATEMENTS OF CASH FLOWS (dollars in thousands) Year Ended December 31, 2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 74,388 $ 80,103 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 18,781 17,738 Net amortization of debt issu
Slide 15: Consolidated Statements of Cash Flows (Continued)
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (dollars in thousands) Year Ended December 31, 2018 2017 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common shares, net 444,309 — Borrowings under revolving credit facility 193,000 750,000 Repayments of revolving credit facility (
Slide 16: Debt Summary
DEBT SUMMARY (dollars in thousands) Coupon Interest Principal Maturity Due at Years to Rate (1) Rate (2) Balance (3) Date Maturity Maturity DEBT SUMMARY As of December 31, 2018: Unsecured Floating Rate Debt: Revolving credit facility (4) 3.810% 3.810% $ 413,000 12/29/2021 $ 413,000 3.0 Secured Fixed
Slide 17: Debt Maturity Schedule
DEBT MATURITY SCHEDULE (dollars in thousands) Scheduled Principal Payments as of December 31, 2018 Unsecured Secured Floating Fixed Year Rate Debt Rate Debt Total (2) 2020 $ — $ 48,750 $ 48,750 2021 413,000 (1) — 413,000 Total (3) $ 413,000 $ 48,750 $ 461,750 DEBT MATURITY SCHEDULE DEBT MATURITY Per
Slide 18: Leverage Ratios and Coverage Ratios
(1) LEVERAGE RATIOS AND COVERAGE RATIOS (1) (dollars in thousands) As of and For the Three Months Ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 (2) Leverage Ratios Post-IPO: Total debt (3) / total gross assets (4) 28.4% 26.9% 24.8% 23.2% Total debt (3) / gross book value of real estate assets (5) 2
Slide 19: Capital Expenditures Summary
CAPITAL EXPENDITURES SUMMARY (dollars in thousands) For the Three Months Ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 Tenant improvements (1) $ 1,362 $ — $ — $ 69 $ 384 Leasing costs (2) 1,206 188 324 5 80 Building improvements (3) 827 657 211 90 228 Recurring capital expenditures 3,395
Slide 20: Property Acquisitions and Dispositions Information Since 1/1/18
PROPERTY ACQUISITIONS AND DISPOSITIONS INFORMATION SINCE 1/1/18 (dollars and sq. ft. in thousands, except per sq. ft. data) Acquisitions (1): Weighted Average Purchase Remaining Date Number of Purchase Price (2) / Cap Lease Term Percent Acquired Location Properties Sq. Ft. Price (2) Sq. Ft. Rate (3)
Slide 21: Calculation and Reconciliation of NOI and Cash Basis NOI
NOI CALCULATION AND RECONCILIATION OF NET OPERATING INCOME (NOI) AND CASH BASIS NOI (1) (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 12/31/2018 12/31/2017 Calculation of NOI and Cash Basis NOI: Rental income $ 35,841 $ 34,78
Slide 22: Reconciliation of NOI to Same Property NOI and Cash Basis NOI
RECONCILIATION OF NOI TO SAME PROPERTY NOI AND CALCULATION OF SAME PROPERTY CASH BASIS NOI (1) (dollars in thousands) Three Months Ended December 31, Year Ended December 31, CASH BASIS NOI 2018 2017 2018 2017 Reconciliation of NOI to Same Property NOI (2)(3): Rental income $ 35,841 $ 33,905 $ 139,31
Slide 23: Calculation of EBITDA and Adjusted EBITDA
CALCULATION OF EBITDA AND ADJUSTED EBITDA (1) (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 12/31/2018 12/31/2017 Net income $ 18,288 $ 18,142 $ 18,726 $ 19,232 $ 15,269 $ 74,388 $ 80,103 Plus: interest expense 4,675 4,052 3,
Slide 24: Calculation of FFO and Normalized FFO
CALCULATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO (1) (dollars and shares in thousands, except per share data) For the Three Months Ended For the Year Ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 12/31/2018 12/31/2017 Net income $ 18,288 $ 18,142 $ 18,726 $ 19,232 $ 15,269 $
Slide 25: Definitions of Certain Non-GAAP Financial Measures
DEFINITIONS OF CERTAIN NON-GAAP FINANCIAL MEASURES NOI and Cash Basis NOI: The calculations of NOI and Cash Basis NOI exclude certain components of net income in order to provide results that are more closely related to our property level results of operations. We calculate NOI and Cash Basis NOI as
Slide 26: Portfolio Information
PORTFOLIO INFORMATION 5 Logistics Drive, Carlisle, PA Square Feet: 205,090 Tenant: TAP Worldwide, LLC 26
Slide 27: Portfolio Summary by Property Type
PORTFOLIO SUMMARY BY PROPERTY TYPE (dollars and sq. ft. in thousands) As of and For the Three Months Ended December 31, 2018 Mainland Hawaii Key Statistic Properties Properties Total Leasable properties 44 226 (1) 270 Percent of total 16.3% 83.7% 100.0% Total square feet 12,701 16,834 29,535 Percent
Slide 28: Same Property Results of Operations by Property Type
SAME PROPERTY RESULTS OF OPERATIONS BY PROPERTY TYPE (dollars and sq. ft. in thousands) As of and For the Three Months Ended (1) As of and For the Year Ended (2) 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Leasable Properties: Mainland Properties 40 40 40 40 Hawaii Properties 226 226 226 226 Total 2
Slide 29: Same Property Results of Operations by Property Type (Continued)
SAME PROPERTY RESULTS OF OPERATIONS BY PROPERTY TYPE (CONTINUED) (dollars in thousands) As of and For the Three Months Ended (1) As of and For the Year Ended (2) 12/31/2018 12/31/2017 12/31/2018 12/31/2017 NOI (3): Mainland Properties $ 13,524 $ 13,636 $ 54,530 $ 54,570 Hawaii Properties 18,435 18,3
Slide 30: Leasing Summary
LEASING SUMMARY (dollars and sq. ft. in thousands, except per sq. ft. data) As of and For the Three Months Ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 Leasable buildings (1) 270 269 267 266 266 Total sq. ft. (2) 29,535 29,216 28,780 28,540 28,540 Square feet leased 29,321 29,002 28,516
Slide 31: Occupancy and Leasing Analysis by Property Type
OCCUPANCY AND LEASING ANALYSIS BY PROPERTY TYPE (sq. ft. in thousands) Total Sq. Ft. (1) Sq. Ft. Leases Executed During As of the Three Months Ended 12/31/2018 Property Type 12/31/2018 New (2) Renewals Total Mainland Properties 12,701 — 513 513 Hawaii Properties 16,834 — 1,085 1,085 Total 29,535 — 1
Slide 32: Tenant Credit Characteristics
TENANT CREDIT CHARACTERISTICS As of December 31, 2018 % of Annualized Rental Revenues (1) Mainland Tenant Credit Characteristics Properties Consolidated Investment grade rated 39.7% 23.4% Subsidiaries of investment grade rated parent entities 8.9% 4.2% Other leased Hawaii lands —% 45.9% Subtotal inv
Slide 33: Tenants Representing 1% or More of Total Annualized Rental Revenues
TENANTS REPRESENTING 1% OR MORE OF TOTAL ANNUALIZED RENTAL REVENUES As of December 31, 2018 (sq. ft. in thousands) % of Rented % of Total Annualized Rental Tenant Property Type Sq. Ft. (1) Rented Sq. Ft. (1) Revenues (2) 1 Amazon.com.dedc, LLC / Amazon.com.kydc LLC Mainland Industrial 3,048 10.4% 9.
Slide 34: Five Year Lease Expiration and Reset Schedule by Property Type
FIVE YEAR LEASE EXPIRATION AND RESET SCHEDULE BY PROPERTY TYPE As of December 31, 2018 (dollars and sq. ft. in thousands) 2024 and Total 2019 2020 2021 2022 2023 Thereafter Mainland Properties Expirations: Total sq. ft. (1) 12,701 Leased sq. ft. (1) (2) 12,701 33 394 625 399 1,307 9,943 Percent 0.3%
Slide 35: Portfolio Lease Expiration Schedule
PORTFOLIO LEASE EXPIRATION SCHEDULE As of December 31, 2018 (dollars and sq. ft. in thousands) Cumulative % of Total Cumulative % % of Total % of Total Rented Rented of Total Rented Annualized Annualized Annualized Number of Square Feet Square Feet Square Feet Rental Revenues Rental Revenues Rental
Slide 36: Exhibit A
EXHIBIT A Sand Island Industrial Land, Honolulu, HI 48 Buildings and Leasable Land Parcels Approximate Square Feet: 2,448,000 36
Slide 37: Property Detail
PROPERTY DETAIL As of December 31, 2018 (dollars and square feet in thousands) EXHIBIT A Number of Year Buildings, Annualized Built or Land Parcels Property Rental Undepreciated Depreciated Date Most Recent Property City State and Easements Type Square Feet % Leased Revenues (1) Carrying Value (2) C
Slide 38: Property Detail (Continued)
PROPERTY DETAIL (CONTINUED) As of December 31, 2018 (dollars and square feet in thousands) EXHIBIT A Number of Year Buildings, Annualized Built or Land Parcels Property Rental Undepreciated Depreciated Date Most Recent Property City State and Easements Type Square Feet % Leased Revenues (1) Carrying
Slide 39: Property Detail (Continued)
PROPERTY DETAIL (CONTINUED) As of December 31, 2018 (dollars and square feet in thousands) EXHIBIT A Number of Year Buildings, Annualized Built or Land Parcels Property Rental Undepreciated Depreciated Date Most Recent Property City State and Easements Type Square Feet % Leased Revenues (1) Carrying
Slide 40: Property Detail (Continued)
PROPERTY DETAIL (CONTINUED) As of December 31, 2018 (dollars and square feet in thousands) EXHIBIT A Number of Year Buildings, Annualized Built or Land Parcels Property Rental Undepreciated Depreciated Date Most Recent Property City State and Easements Type Square Feet % Leased Revenues (1) Carrying
Slide 41: Property Detail (Continued)
PROPERTY DETAIL (CONTINUED) As of December 31, 2018 (dollars and square feet in thousands) EXHIBIT A Number of Year Buildings, Annualized Built or Land Parcels Property Rental Undepreciated Depreciated Date Most Recent Property City State and Easements Type Square Feet % Leased Revenues (1) Carrying
Slide 42: Property Detail (Continued)
PROPERTY DETAIL (CONTINUED) As of December 31, 2018 (dollars and square feet in thousands) EXHIBIT A Number of Year Buildings, Annualized Built or Land Parcels Property Rental Undepreciated Depreciated Date Most Recent Property City State and Easements Type Square Feet % Leased Revenues (1) Carrying
Slide 43: Property Detail (Continued)
PROPERTY DETAIL (CONTINUED) As of December 31, 2018 (dollars and square feet in thousands) EXHIBIT A Number of Year Buildings, Annualized Built or Land Parcels Property Rental Undepreciated Depreciated Date Most Recent Property City State and Easements Type Square Feet % Leased Revenues (1) Carrying
Slide 44: Property Detail (Continued)
PROPERTY DETAIL (CONTINUED) As of December 31, 2018 (dollars and square feet in thousands) EXHIBIT A Number of Year Buildings, Annualized Built or Land Parcels Property Rental Undepreciated Depreciated Date Most Recent Property City State and Easements Type Square Feet % Leased Revenues (1) Carrying
Slide 45: Property Detail (Continued)
PROPERTY DETAIL (CONTINUED) As of December 31, 2018 (dollars and square feet in thousands) EXHIBIT A Number of Year Buildings, Annualized Built or Land Parcels Property Rental Undepreciated Depreciated Date Most Recent Property City State and Easements Type Square Feet % Leased Revenues (1) Carrying
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