Industrial Logistics Properties Trust · NASDAQ:ILPT
Industrial Logistics Properties Trust — Q4 2021 Earnings Presentation
33 slides from Industrial Logistics Properties Trust's earnings presentation, May 4, 2022
Slide 1: Investor Presentation Q4 2021
INVESTOR PRESENTATION | Q4 2021 9475 East Pendleton Pike, Lawrence, IN
Slide 2: Warning Regarding Forward Looking Statements
INDUSTRIAL LOGISTICS PROPERTIES TRUST WARNING REGARDING 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. Also, whenever Industrial Logistics Properties Trust (ILPT) u
Slide 3: Introduction
ILPT INTRODUCTION 4000 Principio Parkway, North East, MD 3
Slide 4: ILPT at a Glance
INDUSTRIAL LOGISTICS PROPERTIES TRUST ILPT AT A GLANCE U.S. REIT with 288 $2.5 Billion 34 Million Industrial & Logistics Total Market Capitalization Rentable Square Feet Properties Located in 9.4 99.2% 31 Years of Weighted Average Occupancy States Remaining Lease Term 72% 53% Rents from Investment 5
Slide 5: Recent Business Performance
INDUSTRIAL LOGISTICS PROPERTIES TRUST RECENT BUSINESS PERFORMANCE1 Full Year 2021 Net Income Attributable to +45.8% Common Shareholders Normalized FFO +1.8% Same Property NOI +2.2% Leasing Activity 3,565,000 SF Rental Rates +16.9% Weighted Average Lease Term 10.2 years (WALT) 1. Percentage growth re
Slide 6: ILPT Property Portfolio
ILPT PROPERTY PORTFOLIO 16920 W. Commerce Drive, Goodyear, AZ 6 6
Slide 7: Geographic Diversity with a Unique Hawaiian Footprint
INDUSTRIAL LOGISTICS PROPERTIES TRUST GEOGRAPHIC DIVERSITY WITH A UNIQUE HAWAIIAN FOOTPRINT Mainland Properties Hawaii Properties • 62 industrial and logistics properties located in 30 • 226 well-located properties near Oahu’s prime CBD. states. • 17 million square feet that is 98% leased with a 13
Slide 8: Strong Credit Quality and Diversified Tenant Base
INDUSTRIAL LOGISTICS PROPERTIES TRUST STRONG CREDIT QUALITY AND DIVERSIFIED TENANT BASE More than 70% of annualized rental revenues are derived from investment grade tenants/subsidiaries or from secure Hawaii land leases. % of Total Annualized Top 15 Tenants Rental Revenues Tenant Credit Characteris
Slide 9: High Quality Industrial Properties
INDUSTRIAL LOGISTICS PROPERTIES TRUST HIGH QUALITY INDUSTRIAL PROPERTIES Well located Hawaii land and highly functional industrial properties leased to tenants in thriving industries. Approximately 90% of Mainland rental revenues are generated by logistics facilities. Property Type % of Tenant Indus
Slide 10: Financials & Leasing
FINANCIALS & LEASING 5 Logistics Drive, Carlisle, PA 10
Slide 11: Recent Financial Performance
INDUSTRIAL LOGISTICS PROPERTIES TRUST RECENT FINANCIAL PERFORMANCE Existing portfolio provides stable cash flow and a well covered dividend. Net Income Attributable to Common Normalized FFO Per Share Shareholders Per Share Same Property Cash Basis NOI Dividend Per Share 5.3% annualized ($ in million
Slide 12: Balance Sheet Positioned to Support Growth
INDUSTRIAL LOGISTICS PROPERTIES TRUST BALANCE SHEET POSITIONED TO SUPPORT GROWTH Highlights Capital Structure • $2.5 billion in total market capitalization. Mortgage Notes • $597 million of cash and revolver availability. • Minimal debt maturities in the next 7 years. Equity Market Capitalization •
Slide 13: Stable Cash Flows from Long Term Leases
INDUSTRIAL LOGISTICS PROPERTIES TRUST STABLE CASH FLOWS FROM LONG TERM LEASES Opportunity to take advantage of industrial rent growth with expirations totaling nearly 30% of rental revenues by the end of 2025. 1. Resetting leases are shown both in the year of the next reset and in their year of expi
Slide 14: Hawaii and Mainland Lease Terms Are Consistent and Secure
INDUSTRIAL LOGISTICS PROPERTIES TRUST HAWAII AND MAINLAND LEASE TERMS ARE CONSISTENT AND SECURE HAWAII LEASES • 90% of rental revenues are driven by ground leases to tenants that have constructed significant leasehold improvements with strong history of rental growth from lease renewals or extension
Slide 15: Industry Landscape
2020 Joe B. Jackson Parkway, Murfreesboro, TN INDUSTRY LANDSCAPE 15
Slide 16: Industrial Real Estate Fundamentals Remain Strong
INDUSTRIAL LOGISTICS PROPERTIES TRUST INDUSTRIAL REAL ESTATE FUNDAMENTALS REMAIN STRONG Robust demand for industrial and logistics properties will enable owners like ILPT to maintain high occupancy rates and increase rents. • U.S. industrial REIT sector has benefited from strong secular demand drive
Slide 17: Growth in E-Commerce Driving Incremental Industrial Demand
INDUSTRIAL LOGISTICS PROPERTIES TRUST GROWTH IN E-COMMERCE DRIVING INCREMENTAL INDUSTRIAL DEMAND E-commerce will continue to stimulate demand for industrial and logistics properties, support rent growth and sustain a favorable investment environment. U.S. Retail Sales Composition & U.S. E-Commerce S
Slide 18: ILPT Acquisitions & Strategy
ILPT ACQUISITIONS & STRATEGY 7303 Rickenbacker Parkway West, Columbus, OH 18
Slide 19: Monmouth Real Estate Acquisition Overview
INDUSTRIAL LOGISTICS PROPERTIES TRUST MONMOUTH REAL ESTATE ACQUISITION OVERVIEW • Acquired Monmouth Real Estate Investment Corporation (MNR) on February 25, 2022. Transaction • All-cash transaction valued at ~$4.0B. Details • Consideration of $21.00 per MNR common share. • 126 Class A, single tenant
Slide 20: Strategic Benefits of Monmouth Acquisition
INDUSTRIAL LOGISTICS PROPERTIES TRUST STRATEGIC BENEFITS OF MONMOUTH ACQUISITION Complements ILPT’s • Adds Class A, e-commerce-focused assets, which are 83% leased to Existing Portfolio investment grade tenants for a WALT of approximately eight years. • Enhances capital markets access with potential
Slide 21: Pro Forma Combined Company
INDUSTRIAL LOGISTICS PROPERTIES TRUST PRO FORMA COMBINED COMPANY1 U.S. REIT with 383 55 Million Rentable Square Feet Industrial & Logistics Properties Located in 39 7.9 WALT States 76% Rents from Investment Grade 99.5% Tenants/Subsidiaries Occupancy or Hawaii Land Leases 31% 26% Annualized Rental Re
Slide 22: Acquisition Strategy
INDUSTRIAL LOGISTICS PROPERTIES TRUST ACQUISITION STRATEGY Focused On Acquiring High Quality, Diversified Assets with Stable Cash Flows in Strong Rental Growth Markets GEOGRAPHY PRICING TENANCY PHYSICAL • Focus on top 30 • Remain disciplined • High-quality credit • Target modern and U.S. industrial
Slide 23: Managed by The RMR Group LLC, an Alternative Asset Manager
INDUSTRIAL LOGISTICS PROPERTIES TRUST MANAGED BY THE RMR GROUP LLC, AN ALTERNATIVE ASSET MANAGER The RMR Group LLC RMR Managed Companies RMR’s Operations Include: ~$33 Billion ~$12 billion Financial Real Estate in AUM in Annual Revenues Business Services: Services: Services: Acquisitions/ Accounting
Slide 24: A Winning Tradition
INDUSTRIAL LOGISTICS PROPERTIES TRUST A WINNING TRADITION RMR RECOGNITION Fortune IREM Women on Commercial Boston Boston Business GlobeSt. Magazine’s Real Estate Boards; Property Globe’s Journal Real Estate Fastest Management Winning Executive Top Places Middle Market Forum’s Growing Excellence Orga
Slide 25: Management Aligned with Shareholder Interests
INDUSTRIAL LOGISTICS PROPERTIES TRUST MANAGEMENT ALIGNED WITH SHAREHOLDER INTERESTS We believe that being managed by RMR provides us with a depth and quality of management that would be difficult and prohibitively expensive for a company of our size to duplicate. Key Terms of Management Agreements A
Slide 26: Appendix
APPENDIX 20 Logistics Blvd., Walton, KY 26
Slide 27: Selected Financial Information
INDUSTRIAL LOGISTICS PROPERTIES TRUST SELECTED FINANCIAL INFORMATION As of and For the Three Months Ended (dollars in thousands, except for per share data) 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Selected Balance Sheet Data: Total gross assets $ 2,076,048 $ 2,212,938 $ 2,091,331 $ 2,058,
Slide 28: Calculation and Reconciliation of NOI and Cash Basis NOI
INDUSTRIAL LOGISTICS PROPERTIES TRUST CALCULATION AND RECONCILIATION OF NOI AND CASH BASIS NOI (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/2021 12/31/2020 Calculation of NOI and Cash Basis NOI: Rental income $ 56,496
Slide 29: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
INDUSTRIAL LOGISTICS PROPERTIES TRUST CALCULATION OF EBITDA, EBITDAre AND ADJUSTED EBITDAre For the Three Months Ended For the Year Ended (dollars in thousands) 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/2021 12/31/2020 Net income $ 63,207 $ 18,307 $ 18,831 $ 19,337 $ 40,140 $ 119,682
Slide 30: Calculation of FFO and Normalized FFO
INDUSTRIAL LOGISTICS PROPERTIES TRUST CALCULATION OF FFO AND NORMALIZED FFO ATTRIBUTABLE TO COMMON SHAREHOLDERS (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/2021 12/31/2020 Net income attributable to common shareholder
Slide 31: Capitalization
INDUSTRIAL LOGISTICS PROPERTIES TRUST CAPITALIZATION As of and For the (dollars and shares in thousands, except per share data) Three Months Ended 12/31/2021 Revolving Credit Facility $ 182,000 Mortgage Note 650,000 Total Debt $ 832,000 Less: Cash $ 29,397 Net Debt $ 802,603 Total Shares Outstanding
Slide 32: Definitions
INDUSTRIAL LOGISTICS PROPERTIES TRUST DEFINITIONS Non-GAAP Financial Measures: We present certain “non-GAAP financial measures” within the meaning of applicable SEC rules, including FFO attributable to common shareholders, Normalized FFO attributable to common shareholders, EBITDA, EBITDAre, Adjuste
Slide 33: Two Newton Place 255 Washington Street, Suite 300 Newton, Massachusetts 02458
Two Newton Place 255 Washington Street, Suite 300 Newton, Massachusetts 02458 ILPTREIT.COM
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