Industrial Logistics Properties Trust · NASDAQ:ILPT
Industrial Logistics Properties Trust — Q2 2023 Earnings Presentation
38 slides from Industrial Logistics Properties Trust's earnings presentation, Jul 25, 2023
Slide 1: Second Quarter 2023 Financial Results and Supplemental Information
1 Industrial Logistics Properties Trust Second Quarter 2023 Financial Results and Supplemental Information July 25, 2023 Exhibit 99.2309 Dulty's Lane Burlington, NJ 633,836 Square Feet ILPT Ownership 100%
Slide 2: Table of Contents
2Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS QUARTERLY RESULTS Industrial Logistics Properties Trust Announces Second Quarter 2023 Financial Results ................................................. 4 Second Quarter 2023 Highlights .......................................................
Slide 3: Quarterly Results
3Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Quarterly Results
Slide 4: ILPT Announces Second Quarter 2023 Financial Results
4Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS "We remain encouraged by the continued demand for ILPT's high quality portfolio and the strength in industrial real estate fundamentals. We completed two million square feet of leasing, including rent resets, in the second quarter at weighted
Slide 5: Second Quarter 2023 Highlights
5Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Portfolio Update • Portfolio occupancy grew to 99.1% representing an increase of 40 basis points quarter-over-quarter. • Executed 20 leases totaling 1,967,000 square feet at 29.6% higher rents. • Continued strong fundamentals in Hawaii result
Slide 6: Financials
6Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Financials
Slide 7: Key Financial Data
7Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS (dollars in thousands, except per share data) As of and For the Three Months Ended As of 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 6/30/2023 Selected Income Statement Data: Capitalization: Rental income $ 108,043 $ 110,258 $ 106,339
Slide 8: Condensed Consolidated Statements of Income (Loss)
8Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Condensed Consolidated Statements of Income (Loss) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Rental income $ 108,043 $ 107,222 $ 218,301 $ 178,597 Expenses: Real estate taxes 15,100 13,275 31,567 22,711 Other o
Slide 9: Condensed Consolidated Balance Sheets
9Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Condensed Consolidated Balance Sheets June 30, December 31, 2023 2022 ASSETS Real estate properties: Land $ 1,112,598 $ 1,117,779 Buildings and improvements 4,031,041 4,058,329 Total real estate properties, gross 5,143,639 5,176,108 Accumulat
Slide 10: Debt Summary
10Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS (1) Interest rates are as of June 30, 2023 and reflect the impact of interest rate caps, as applicable. (2) Principal balance excludes unamortized debt issuance costs related to these debts. Total debt outstanding as of June 30, 2023, includ
Slide 11: Debt Maturity Schedule
11Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS (1) Principal balance excludes unamortized debt issuance costs related to these debts. Total debt outstanding as of June 30, 2023, including unamortized debt issuance costs totaling $33,479, was $4,301,276. (2) The $1,400,000 floating rate l
Slide 12: Leverage Ratios and Coverage Ratios
12Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS As of and For the Three Months Ended 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 Leverage Ratios: Net debt / total gross assets 68.8% 69.7% 69.7% 69.9% 65.1% Net debt / gross book value of real estate assets 72.2% 72.4% 72.6% 73.1% 73
Slide 13: Capital Expenditures Summary
13Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS (dollars in thousands) For the Three Months Ended 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 Tenant improvements and leasing costs $ 2,498 $ 2,040 $ 4,369 $ 2,302 $ 2,627 Building improvements 1,283 370 2,221 1,292 376 Recurring capi
Slide 14: Property Acquisitions and Dispositions Since 1/1/2023
14Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Property Acquisitions and Dispositions Since 1/1/2023 Dispositions: ILPT has not disposed of any properties since January 1, 2023. Acquisitions: ILPT has not acquired any properties since January 1, 2023.
Slide 15: Portfolio Information
15Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Portfolio Information
Slide 16: Same Property Results
16Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS (dollars and sq. ft. in thousands) As of and For the Three Months Ended As of and For the Six Months Ended Ended 6/30/2023 6/30/2022 6/30/2023 6/30/2022 Properties (end of period) 409 409 285 285 Square Feet 59,207 59,185 33,462 33,440 Perce
Slide 17: Occupancy and Leasing Summary
17Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS (dollars and sq. ft. in thousands, except per sq. ft. data) As of and For the Three Months Ended As of and For the Six Months Ended 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 6/30/2023 Properties 413 413 413 413 412 413 Total sq. ft.
Slide 18: Tenant Concentration and Credit Characteristics
18Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS As of June 30, 2023 Tenant Credit Characteristics % of Annualized Rental Revenues Investment grade rated 18.3% Subsidiaries of investment grade rated parent entities 38.5% Other leased Hawaii lands 20.4% Subtotal investment grade rated, subs
Slide 19: Lease Expiration Schedule
19Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Cumulative % of Total Cumulative % % of Total % of Total Leased Leased of Total Leased Annualized Annualized Annualized Number of Square Feet Square Feet Square Feet Rental Revenues Rental Revenues Rental Revenues Period / Year Tenants Expir
Slide 20: Key Financial Data - By Investment Portfolio
20Earnings Presentation Q2 2023RETURN 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 June 30, 2023 ILPT Wholly Owned Properties Mountain Industrial ILPT Hawaii Mainland Total REIT LLC
Slide 21: Joint Ventures
21Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Joint Ventures
Slide 22: Consolidated Joint Venture - Mountain Industrial REIT LLC
22Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Consolidated Joint Venture - Mountain Industrial REIT LLC (dollars and sq. ft. in thousands) Investment in Joint Venture: ILPT Number of Number of Square Joint Venture Ownership Presentation Properties States Feet Mountain Industrial REIT LL
Slide 23: Consolidated Joint Venture - Financial Information
23Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Consolidated Joint Venture - Financial Information Operating Information of the Consolidated Joint Venture (100%) (1) Pro-Rata Operating Information of the Consolidated Joint Venture (ILPT Share) (2) Three Months Ended June 30, Six Months En
Slide 24: Consolidated Joint Venture - Financial Information (continued)
24Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Consolidated Joint Venture - Financial Information (continued) Operating Information of the Consolidated Joint Venture (100%) (1) Pro-Rata Operating Information of the Consolidated Joint Venture (ILPT Share) (2) Three Months Ended June 30, S
Slide 25: Consolidated Joint Venture - Portfolio Information
25Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS GA: 12.2% OH: 10.5% TX: 10.1% IN: 8.4% NC: 6.0% FL: 5.1%MI: 4.7% NJ: 3.9% IL: 3.8% MS: 3.6% KS: 3.5% 16 Other States: 28.2% Consolidated Joint Venture - Portfolio Information (dollars in thousands) Number of Leases Expiring 1 4 8 10 13 7 39
Slide 26: Unconsolidated Joint Venture - The Industrial Fund REIT LLC
26Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Unconsolidated Joint Venture - The Industrial Fund REIT LLC (dollars in thousands) As of June 30, 2023 Investment in Unconsolidated ILPT Number of Square Joint Venture at Joint Venture Ownership Properties States Feet June 30, 2023 The Indus
Slide 27: Appendix
27Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Appendix
Slide 28: Company Profile and Research Coverage
28Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Company Profile and Research Coverage The Company: Industrial Logistics Properties Trust (Nasdaq: ILPT) is a REIT that owns and leases industrial and logistics properties throughout the United States. ILPT is included in 111 market indices a
Slide 29: Governance Information
29Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Governance Information Board of Trustees Bruce M. Gans Lisa Harris Jones Matthew P. Jordan Lead Independent Trustee Independent Trustee Managing Trustee Joseph L. Morea Kevin C. Phelan Adam D. Portnoy Independent Trustee Independent Trustee
Slide 30: Non-GAAP Financial Measures and Certain Definitions
30Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Unless otherwise noted, all data presented in this presentation excludes 18 properties, which are encumbered by $530.7 million of mortgage notes, owned by an unconsolidated joint venture in which ILPT owns a 22% equity interest. See page 26
Slide 31: Non-GAAP Financial Measures and Certain Definitions (continued)
31Earnings Presentation Q2 2023RETURN 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 37. ILPT defines CAD as Normalized FFO minus ILPT's proportionate shar
Slide 32: Certain Definitions
32Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Gross book value of real estate assets - Gross book value of real estate assets is real estate assets at cost, plus certain acquisition related costs, if any, before depreciation and purchase price allocations, less impairment writedowns, if
Slide 33: Calculation and Reconciliation of NOI and Cash Basis NOI
33Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Calculation and Reconciliation of NOI and Cash Basis NOI (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 6/30/2023 6/30/2022 Calculation of NOI and Cash Basis NOI:
Slide 34: Reconciliation of NOI to Same Property NOI
34Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Reconciliation of NOI to Same Property NOI and Calculation of Same Property Cash Basis NOI (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Reconciliation of NOI to Same Property NOI: Rental in
Slide 35: Calculation of EBITDA, EBITDAre, and Adjusted EBITDAre
35Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Calculation of EBITDA, EBITDAre, and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 6/30/2023 6/30/2022 Net loss $ (36,580) $ (35,546) $ (41,759
Slide 36: Calculation of FFO, Normalized FFO and CAD
36Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS Calculation of FFO, Normalized FFO and CAD (dollars and shares in thousands, except per share data) For the Three Months Ended For the Six Months Ended 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 6/30/2023 6/30/2022 Net loss attributa
Slide 37: Calculation of Normalized FFO and CAD (continued)
37Earnings Presentation Q2 2023RETURN TO TABLE OF CONTENTS (dollars and shares in thousands, except per share data) For the Three Months Ended For the Six Months Ended 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 6/30/2023 6/30/2022 Normalized FFO attributable to common shareholders $ 7,594 $
Slide 38: Warning Concerning Forward-Looking Statements
38Earnings Presentation Q2 2023RETURN 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 uncertaint
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