Industrial Logistics Properties Trust · NASDAQ:ILPT
Industrial Logistics Properties Trust — Investor Presentation (June 2024)
26 slides from Industrial Logistics Properties Trust's investor presentation, Jun 3, 2024
Slide 1: Investor Presentation June 2024
INDUSTRIAL LOGISTICS PROPERTIES TRUST June 2024 309 Dulty’s Lane Burlington, NJ 633,836 Square Feet ILPT Ownership: 100% INVESTOR PRESENTATION Exhibit 99.1
Slide 2: Forward-looking statements
2 INDUSTRIAL LOGISTICS PROPERTIES TRUST 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 may include words such as “believe”, “expec
Slide 3: ILPT at a Glance
3 INDUSTRIAL LOGISTICS PROPERTIES TRUST 3 U.S. REIT with 411 Industrial & Logistics Properties ILPT AT A GLANCE Industrial Logistics Properties Trust (Nasdaq: ILPT) is a REIT focused on owning and leasing high quality distribution and logistics properties. More than 75% of ILPT’s annualized rental r
Slide 4: Geographic Diversity with a Unique Hawaiian Footprint
4 INDUSTRIAL LOGISTICS PROPERTIES TRUST HI, 28.0% OH, 7.1% IN, 5.7% SC, 5.7% GA, 4.8% FL, 5.1% TX, 4.3% NJ, 3.3% TN, 2.9% NC, 2.3% 29 Other States, 30.8% GEOGRAPHIC DIVERSITY WITH A UNIQUE HAWAIIAN FOOTPRINT Location and Number of Properties Geographic Mix of Total Annualized Rental Revenues • 185 i
Slide 5: Recent Business Highlights
5 INDUSTRIAL LOGISTICS PROPERTIES TRUST RECENT BUSINESS HIGHLIGHTS Full Year 2023 5 Q1 2024 (1) Reflects change from the year-ago period. Full Year 2022 Same Property Cash Basis NOI (1) Rental Rates (1) Leasing Activity (Sq. Ft.) +1.0% +47.3% Leasing Activity WALT (by Sq. Ft.) 14.6 years Same Proper
Slide 6: Debt Summary
DEBT SUMMARY ILPT Secured Floating Rate Debt $1.2B Mountain JV Secured Floating Rate Debt $1.4B Secured Fixed Rate Debt $1.7B $1,235.0 $1,400.0 $13.7 $18.8 $19.5 $20.2 $21.0 $1,593.3 2024 2025 2026 2027 2028 Thereafter Secured fixed rate debt Secured floating rate debt of consolidated joint venture
Slide 7: Select Portfolio Properties
INDUSTRIAL LOGISTICS PROPERTIES TRUST SELECT PORTFOLIO PROPERTIES 309 Dulty’s Lane Burlington, NJ 633,836 Square Feet ILPT Ownership: 100% INDUSTRIAL LOGISTICS PROPERTIES TRUST 725 Darlington Avenue Mahwah, NJ 167,424 Square Feet ILPT Ownership: 100% 13509 Waterworks Street Jacksonville, FL 304,859
Slide 8: High Quality Industrial Properties
8 INDUSTRIAL LOGISTICS PROPERTIES TRUST Warehouse & Distribution: 66% Ground Lease: 28% Light Manufacturing: 6% HIGH QUALITY INDUSTRIAL PROPERTIES Tenant Industry Type % of Portfolio Property Type by % of Total Annualized Rental Revenues Transportation & Shipping 37.3% Automotive 9.1% Construction &
Slide 9: Strong Credit Profile Across Sectors
9 INDUSTRIAL LOGISTICS PROPERTIES TRUST STRONG CREDIT PROFILE ACROSS SECTORS 77% of annualized rental revenues are derived from investment grade tenants/subsidiaries or from secure Hawaii land leases. Tenant Credit Characteristics % of Total Annualized Rental Revenues Other Unrated or Non-IGR Other
Slide 10: Portfolio Q1 2024 Results
10 INDUSTRIAL LOGISTICS PROPERTIES TRUST Mountain Industrial JV (2) Consolidated ILPT (1) 61% Ownership 94 Properties 99.2% Occupancy $32.8M NOI $31.5M Cash Basis NOI $30.1M Adjusted EBITDAre $3.2B Total Gross Assets (1) Excludes one consolidated mainland property containing approximately 64,000 ren
Slide 11: Proactive Asset Management and Leasing
1,143 1,534 1,981 15.1% 19.7% 38.3% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 0.0 500.0 1,000.0 1,500.0 2,000.0 2,500.0 Q1 2023 Q4 2023 Q1 2024 Total Leasing (Sq. Ft.) Rent Roll-Up PROACTIVE ASSET MANAGEMENT AND LEASING Leasing Activity Square Footage in thousands INDUSTRIAL LOGISTICS PROPERTIES TRUST ILPT
Slide 12: Lease Expirations and Rent Resets by Investment Portfolio
LEASE EXPIRATIONS AND RENT RESETS BY INVESTMENT PORTFOLIO INDUSTRIAL LOGISTICS PROPERTIES TRUST 12 Hawaii Property Expirations and Resets % of Total ILPT Annualized Rental Revenues Mountain Joint Venture Expirations % of Total ILPT Annualized Rental Revenues Wholly Owned Mainland Property Expiration
Slide 13: Managed by The RMR Group, an Alternative Asset Manager
13 INDUSTRIAL LOGISTICS PROPERTIES TRUST RMR’s Operations Include: National Multi-Sector Investment Platform INDUSTRIAL SENIOR LIVING MEDICAL OFFICE LIFE SCIENCE HOTELS SERVICE RETAIL OFFICE RMR Managed Companies Over 20,000 Employees Approximately 2,100 Properties More than $5 billion in Annual Rev
Slide 14: RMR Management Fees
14 INDUSTRIAL LOGISTICS PROPERTIES TRUST • Base business management fee: 0.5% multiplied by the lower of (i) gross historical cost of real estate or (ii) average market cap. (1) • Property management fees: 3% of gross collected rents and 5% of construction costs. • Incentive management fee: 12% of t
Slide 15: A Winning Tradition
15 INDUSTRIAL LOGISTICS PROPERTIES TRUST A WINNING TRADITION To find out more about RMR’s highlights, insights and accomplishments, please visit The RMR Group’s Annual Sustainability Report. EPA’S 2024 ENERGY STAR® Partner of the Year. 88 properties with EPA ENERGY STAR certifications 70 properties
Slide 16: Appendix
16 INDUSTRIAL LOGISTICS PROPERTIES TRUST APPENDIX 725 Darlington Avenue Mahwah, NJ 167,424 Square Feet ILPT Ownership: 100% 16
Slide 17: Selected Financial Data
17 INDUSTRIAL LOGISTICS PROPERTIES TRUST As of and for the Three Months Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Selected Income Statement Data: Rental income $ 112,235 $ 108,895 $ 110,142 $ 108,043 $ 110,258 Net loss $ (33,902) $ (41,402) $ (36,191) $ (36,580) $ (35,546) Net loss at
Slide 18: Calculation and Reconciliation of NOI and Cash Basis NOI
18 INDUSTRIAL LOGISTICS PROPERTIES TRUST 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 $ 110,25
Slide 19: Reconciliation of NOI to Same Property NOI
19 INDUSTRIAL LOGISTICS PROPERTIES TRUST 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 (1
Slide 20: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
20 INDUSTRIAL LOGISTICS PROPERTIES TRUST CALCULATION OF EBITDA, EBITDAre AND ADJUSTED EBITDAre (1) Amounts represent equity based compensation to ILPT's trustees and officers and certain other employees of RMR. (dollars in thousands) For the Three Months Ended 3/31/2024 12/31/2023 9/30/2023 6/30/202
Slide 21: Calculation of FFO, Normalized FFO and CAD
21 INDUSTRIAL LOGISTICS PROPERTIES TRUST 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) losses of unconsolidated joint venture (1,723) 6,521 (719) (
Slide 22: Calculation of FFO, Normalized FFO and CAD (Continued)
22 INDUSTRIAL LOGISTICS PROPERTIES TRUST CALCULATION OF FFO, NORMALIZED FFO AND CAD (CONTINUED) (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 $
Slide 23: Key Financial Data by Investment Portfolio
23 INDUSTRIAL LOGISTICS PROPERTIES TRUST KEY FINANCIAL DATA BY INVESTMENT PORTFOLIO (dollars and sq. ft in thousands, except per sq. ft.) (1) With the exception of measures attributable to common shareholders, amounts shown reflect 100% ownership interest of this joint venture, not ILPT's proportion
Slide 24: Non-GAAP Financial Measures and Certain Definitions
24 INDUSTRIAL LOGISTICS PROPERTIES TRUST NON-GAAP FINANCIAL MEASURES AND CERTAIN DEFINITIONS Non-GAAP Financial Measures: ILPT presents certain “non-GAAP financial measures” within the meaning of the applicable rules of the Securities and Exchange Commission, or the SEC, including FFO attributable t
Slide 25: Non-GAAP Financial Measures and Certain Definitions (Continued)
25 INDUSTRIAL LOGISTICS PROPERTIES TRUST NON-GAAP FINANCIAL MEASURES AND CERTAIN DEFINITIONS (CONTINUED) Certain Definitions: Annualized rental revenues: Annualized rental revenues is the annualized contractual base rents from ILPT's tenants pursuant to its lease agreements as of the measurement dat
Slide 26: Dulty’s Lane Burlington, NJ 633,836 Square Feet ILPT Ownership: 100% June 2024 Two Newton
INDUSTRIAL LOGISTICS PROPERTIES TRUST 309 Dulty’s Lane Burlington, NJ 633,836 Square Feet ILPT Ownership: 100% June 2024 INVESTOR PRESENTATION Two Newton Place 255 Washington Street, Suite 300 Newton, Massachusetts 02458 ILPTREIT.COM
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