Industrial Logistics Properties Trust · NASDAQ:ILPT
Industrial Logistics Properties Trust — Q3 2023 Earnings Presentation
38 slides from Industrial Logistics Properties Trust's earnings presentation, Oct 25, 2023
Slide 1: Third Quarter 2023 Financial Results and Supplemental Information
510 John Dodd Road Spartanburg, SC 1,015,740 Square Feet ILPT Ownership 100% Industrial Logistics Properties Trust Third Quarter 2023 Financial Results and Supplemental Information October 25, 2023 1
Slide 2: Table of Contents
Table of Contents QUARTERLY RESULTS Industrial Logistics Properties Trust Announces Third Quarter 2023 Financial Results .................................................... 4 Third Quarter 2023 Highlights ..............................................................................................
Slide 3: Quarterly Results
Quarterly Results RETURN TO TABLE OF CONTENTS Q3 2023 3
Slide 4: ILPT Announces Third Quarter 2023 Financial Results
INDUSTRIAL LOGISTICS PROPERTIES TRUST ANNOUNCES THIRD QUARTER 2023 FINANCIAL RESULTS Newton, MA (October 25, 2023): Industrial Logistics Properties Trust (Nasdaq: ILPT) today "During the third quarter, ILPT experienced same announced its financial results for the quarter ended September 30, 2023. Di
Slide 5: Third Quarter 2023 Highlights
Third Quarter 2023 Highlights (As of and for the three months ended September 30, 2023, unless otherwise noted) • Executed 758,000 square feet of new and renewal leases at 13.5% higher rents. • Lease renewals accounted for approximately 92% of leasing activity, which highlights strong tenant retenti
Slide 6: Financials
Financials RETURN TO TABLE OF CONTENTS Q3 2023 6
Slide 7: Key Financial Data
Key Financial Data (dollars in thousands, except per share data) As of and for the Three Months Ended As of 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 9/30/2023 Selected Income Statement Data: Capitalization: Rental income $ 110,142 $ 108,043 $ 110,258 $ 106,339 $ 103,215 Total common shares
Slide 8: Condensed Consolidated Statements of Income (Loss)
Condensed Consolidated Statements of Income (Loss) (amounts in thousands, except percentage data and per share data) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Rental income $ 110,142 $ 103,215 $ 328,443 $ 281,812 22525 West 167th Street Olathe, KS Expenses:
Slide 9: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (dollars in thousands, except per share data) September 30, December 31, 2023 2022 ASSETS Real estate properties 5,127,634 5,176,108 Accumulated depreciation (361,814) (273,467) Total real estate properties, net 4,765,820 4,902,641 Assets of properties held for
Slide 10: Debt Summary
Debt Summary As of September 30, 2023 (dollars in thousands) Interest Principal Maturity Years to Entity Type Secured By Rate (1) Balance (2) Date Maturity (1) Interest rates reflect the impact of interest rate caps, as applicable. ILPT Floating rate - interest only (3) 69 mainland and 35 Hawaii pro
Slide 11: Debt Maturity Schedule
Debt Maturity Schedule As of September 30, 2023 (dollars in millions) $18.1 $1,400.0 Principal $1,235.0 $671.8 $721.8 3350 Laurel Ridge Avenue Ruskin, FL 1,017,693 Square Feet $4.4 $18.8 $19.5 $20.2 $21.0 $113.6 $22.4 $63.8 ILPT Ownership: 22% 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033+
Slide 12: Leverage and Coverage Ratios
Leverage and Coverage Ratios As of and for the Three Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 900 Commerce Parkway West Drive Leverage Ratios: Greenwood, IN 294,388 Square Feet Net debt / total gross assets 68.5% 68.8% 69.7% 69.7% 69.9% ILPT Ownership: 100% Net debt / gross bo
Slide 13: Capital Expenditures Summary
Capital Expenditures Summary (dollars in thousands) For the Three Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Tenant improvements and leasing costs $ 1,241 $ 2,498 $ 2,040 $ 4,369 $ 2,302 Building improvements 2,720 1,283 370 2,221 1,292 Recurring capital expenditures 3,961 3,781
Slide 14: Property Acquisitions and Dispositions
Property Acquisitions and Dispositions Since January 1, 2023 (dollars in thousands) 17001 West Mercury Street Gardner, KS 645,462 Square Feet ILPT Ownership: 100% Acquisitions: ILPT has not acquired any properties since January 1, 2023. Dispositions: ILPT has not disposed of any properties since Jan
Slide 15: Portfolio Information
Portfolio Information RETURN TO TABLE OF CONTENTS Q3 2023 15
Slide 16: Same Property Results
Same Property Results (dollars and sq. ft. in thousands) As of and for the Three Months Ended As of and for the Nine Months Ended 9/30/2023 9/30/2022 9/30/2023 9/30/2022 Properties (end of period) 409 409 285 285 Square feet 59,207 59,185 33,462 33,440 Percent leased 98.9% 99.2% 98.8% 99.3% Rental i
Slide 17: Occupancy and Leasing Summary
Occupancy and Leasing Summary (1) (2) (dollars and sq. ft. in thousands, except per sq. ft. data) As of and for the As of and for the Three Months Ended Nine Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 9/30/2023 Properties 413 413 413 413 413 413 Total sq. ft. 59,983 59,983 59,98
Slide 18: Tenant Credit Characteristics and Concentration
Tenant Credit Characteristics and Concentration As of September 30, 2023 % of Total (dollars and sq. ft. in thousands) Annualized Rental Tenant Credit Characteristics Revenues 725 Darlington Avenue Mahwah, NJ Investment grade rated 17.6% 167,424 Square Feet Subsidiaries of investment grade rated par
Slide 19: Portfolio Lease Expiration and Reset Schedules
Portfolio Lease Expiration and Reset Schedules Cumulative Cumulative As of September 30, 2023 % of Total % of Total % of Total % of Total (dollars and sq. ft. in thousands) Leased Leased Leased Annualized Annualized Annualized No. of Square Feet Square Feet Square Feet Rental Revenues Rental Revenue
Slide 20: Key Financial Data by Investment Portfolio
Key Financial Data by Investment Portfolio (dollars and sq. ft. in thousands, except per sq. ft. data) As of and for the Three Months Ended September 30, 2023 ILPT Wholly Owned Properties Mountain Industrial ILPT Hawaii Mainland Total REIT LLC (1) Other (2) Consolidated Ownership % 100.0% 100.0% 100
Slide 21: Joint Ventures
Joint Ventures RETURN TO TABLE OF CONTENTS Q3 2023 21
Slide 22: Consolidated Joint Venture - Mountain Industrial REIT LLC
Consolidated Joint Venture - Mountain Industrial REIT LLC As of September 30, 2023 (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 LLC 61% Consolidated 94 27 20,981 Mo
Slide 23: Consolidated Joint Venture - Financial Information
Consolidated Joint Venture - Financial Information (dollars in thousands, except percentage data and per share data) Operating Information of the Consolidated Pro-Rata Operating Information of the Consolidated Joint Venture (100%) (1) Joint Venture (ILPT Share) (2) Three Months Ended Nine Months End
Slide 24: Consolidated Joint Venture - Financial Information (Continued)
Consolidated Joint Venture - Financial Information (Continued) (dollars in thousands, except percentage data and per share data) Operating Information of the Consolidated Pro-Rata Operating Information of the Consolidated Joint Venture (100%) (1) Joint Venture (ILPT Share) (2) Three Months Ended Nin
Slide 25: Consolidated Joint Venture - Portfolio Information
Consolidated Joint Venture - Portfolio Information As of September 30, 2023 (dollars in thousands) Lease Expiration Schedule Major Tenants $100,000 % of Annualized Rental Tenant Revenues $90,000 FedEx Corporation / FedEx Ground Package System, Inc. 57.0% $80,000 Annualized Revenue Expiring Amazon.co
Slide 26: Unconsolidated Joint Venture - The Industrial Fund REIT LLC
Unconsolidated Joint Venture - The Industrial Fund REIT LLC (1) As of September 30, 2023 (dollars and sq. ft. in thousands) ILPT Number of Square Investment in Joint Venture Ownership Properties States Feet Joint Venture The Industrial Fund REIT LLC 22% 18 12 11,726 $ 124,411 Three Months Ended Sept
Slide 27: Appendix
Appendix RETURN TO TABLE OF CONTENTS Q3 2023 27
Slide 28: Company Profile and Research Coverage
Company Profile and Research Coverage The Company: Equity Research Coverage Industrial Logistics Properties Trust (Nasdaq: ILPT) is a REIT that owns and leases B. Riley Securities, Inc. BTIG industrial and logistics properties throughout the United States. ILPT is included in Bryan Maher Thomas Cath
Slide 29: Governance Information
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 Chair of the Board & Managing Trustee June S. Youngs Indepe
Slide 30: Non-GAAP Financial Measures and Certain Definitions
Non-GAAP Financial Measures and Certain Definitions 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 for inf
Slide 31: Non-GAAP Financial Measures and Certain Definitions (Continued)
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 share of Normalized FFO of unconsolidated joint venture propert
Slide 32: Non-GAAP Financial Measures and Certain Definitions (Continued)
Non-GAAP Financial Measures and Certain Definitions (Continued) 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 3
Slide 33: Calculation and Reconciliation of NOI and Cash Basis NOI
Calculation and Reconciliation of NOI and Cash Basis NOI (dollars in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 9/30/2023 9/30/2022 Calculation of NOI and Cash Basis NOI: Rental income $ 110,142 $ 108,043 $ 110,258 $ 106,339 $ 1
Slide 34: 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 (dollars in thousands) For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 Joe B. Jackson Parkway 2023 2022 2023 2022 Murfreesboro, TN Reconciliation of NOI to Same Property N
Slide 35: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 9/30/2023 9/30/2022 Net loss $ (36,191) $ (36,580) $ (35,546) $ (41,759) $ (83,974) $ (108,317) $ (245,082) Plus: inter
Slide 36: Calculation of FFO, Normalized FFO and CAD
Calculation of FFO, Normalized FFO and CAD (dollars and shares in thousands, except per share data) For the Three Months Ended For the Nine Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 9/30/2023 9/30/2022 Net loss attributable to common shareholders $ (26,112) $ (25,828) $ (24,809
Slide 37: Calculation of FFO, Normalized FFO and CAD (Continued)
Calculation of FFO, Normalized FFO and CAD (Continued) (dollars and shares in thousands, except per share data) For the Three Months Ended For the Nine Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 9/30/2023 9/30/2022 Normalized FFO attributable to common shareholders $ 7,945 $ 7,5
Slide 38: Warning Concerning Forward-Looking Statements
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 may include words such as “believe”,
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