Industrial Logistics Properties Trust · NASDAQ:ILPT
Industrial Logistics Properties Trust — Q1 2023 Earnings Presentation
37 slides from Industrial Logistics Properties Trust's earnings presentation, Apr 25, 2023
Slide 1: First Quarter 2023 Financial Results and Supplemental Information
1 Industrial Logistics Properties Trust First Quarter 2023 Financial Results and Supplemental Information April 25, 2023 Exhibit 99.2510 John Dodd Road Spartanburg, SC 1,015,740 Square Feet ILPT Ownership 100%
Slide 2: Table of Contents
2Supplemental Q1 2023RETURN TO TABLE OF CONTENTS QUARTERLY RESULTS Industrial Logistics Properties Trust Announces First Quarter 2023 Financial Results .......................................................................... 4 First Quarter 2023 Highlights and Results .............................
Slide 3: Quarterly Results
3Supplemental Q1 2023RETURN TO TABLE OF CONTENTS Quarterly Results
Slide 4: ILPT Announces First Quarter 2023 Financial Results
4Supplemental Q1 2023RETURN TO TABLE OF CONTENTS “During the first quarter, we executed 1.1 million square feet of new and renewal leases at weighted average rental rates that were 15.1% higher than prior rental rates for the same space. Same property cash basis NOI grew by over 3% compared to the s
Slide 5: First Quarter 2023 Highlights
5Supplemental Q1 2023RETURN TO TABLE OF CONTENTS Financial Results • Net loss attributable to common shareholders was $24.8 million, or $0.38 per diluted share. • Normalized FFO attributable to common shareholders were $7.9 million, or $0.12 per diluted share. • Adjusted EBITDAre was $80.7 million.
Slide 6: First Quarter 2023 Results
6Supplemental Q1 2023RETURN TO TABLE OF CONTENTS First Quarter 2023 Results (dollars in thousands, except per share data) 2552 South 98th Street Edwardsville, KS 280,019 Square Feet ILPT Ownership: 61% Three Months Ended March 31, Financial 2023 2022 Change Net loss attributable to common shareholde
Slide 7: Financials
7Supplemental Q1 2023RETURN TO TABLE OF CONTENTS Financials
Slide 8: Key Financial Data
8Supplemental Q1 2023RETURN TO TABLE OF CONTENTS (dollars in thousands, except per share data) As of and For the Three Months Ended As of 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 3/31/2023 Selected Income Statement Data: Capitalization: Rental income $ 110,258 $ 106,339 $ 103,215 $ 107,222
Slide 9: Condensed Consolidated Statements of Income (Loss)
9Supplemental Q1 2023RETURN TO TABLE OF CONTENTS Condensed Consolidated Statements of Income (Loss) Three Months Ended March 31, 2023 2022 Rental income $ 110,258 $ 71,375 Expenses: Real estate taxes 16,467 9,436 Other operating expenses 9,318 6,772 Depreciation and amortization 45,457 22,878 Genera
Slide 10: Condensed Consolidated Balance Sheets
10Supplemental Q1 2023RETURN TO TABLE OF CONTENTS Condensed Consolidated Balance Sheets March 31, December 31, 2023 2022 ASSETS Real estate properties: Land $ 1,116,561 $ 1,117,779 Buildings and improvements 4,061,589 4,058,329 Total real estate properties, gross 5,178,150 5,176,108 Accumulated depr
Slide 11: Debt Summary
11Supplemental Q1 2023RETURN TO TABLE OF CONTENTS (1) Interest rates are as of March 31, 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 March 31, 2023, including una
Slide 12: Debt Maturity Schedule
12Supplemental Q1 2023RETURN TO TABLE OF CONTENTS (1) Principal balance excludes unamortized debt issuance costs related to these debts. Total debt outstanding as of March 31, 2023, including unamortized debt issuance costs totaling $39,182, was $4,245,651. (2) The $1,235,000 floating rate loan matu
Slide 13: Leverage Ratios and Coverage Ratios
13Supplemental Q1 2023RETURN TO TABLE OF CONTENTS As of and For the Three Months Ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Leverage Ratios: Net debt / total gross assets 69.7% 69.7% 69.9% 65.1% 64.2% Net debt / gross book value of real estate assets 72.4% 72.6% 73.1% 73.7% 76.4% Net d
Slide 14: Capital Expenditures Summary
14Supplemental Q1 2023RETURN TO TABLE OF CONTENTS (dollars in thousands) For the Three Months Ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Tenant improvements and leasing costs $ 2,040 $ 4,369 $ 2,302 $ 2,627 $ 3,361 Building improvements 370 2,221 1,292 376 110 Recurring capital expendi
Slide 15: Property Acquisitions and Dispositions Since 1/1/2023
15Supplemental Q1 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 16: Portfolio Information
16Supplemental Q1 2023RETURN TO TABLE OF CONTENTS Portfolio Information
Slide 17: Same Property Results
17Supplemental Q1 2023RETURN TO TABLE OF CONTENTS (dollars and sq. ft. in thousands) As of and For the Three Months Ended 03/31/2023 03/31/2022 Properties (end of period) 287 287 Square Feet 34,012 33,991 Percent Leased 99.0% 99.3% Rental income $ 56,563 $ 52,570 NOI $ 43,500 $ 40,339 NOI % Change 7
Slide 18: Occupancy and Leasing Summary
18Supplemental Q1 2023RETURN TO TABLE OF CONTENTS (dollars and sq. ft. in thousands, except per sq. ft. data) As of and For the Three Months Ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Properties 413 413 413 412 412 Total sq. ft. 59,983 59,983 59,962 59,736 59,736 Square feet leased 59,
Slide 19: Tenant Concentration and Credit Characteristics
19Supplemental Q1 2023RETURN TO TABLE OF CONTENTS As of March 31, 2023 Tenant Credit Characteristics % of Annualized Rental Revenues Investment grade rated 18.5% Subsidiaries of investment grade rated parent entities 39.0% Other leased Hawaii lands 20.1% Subtotal investment grade rated, subsidiaries
Slide 20: Lease Expiration Schedule
20Supplemental Q1 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 Expiring Expir
Slide 21: Key Financial Data - By Investment Portfolio
21Supplemental Q1 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 March 31, 2023 ILPT Wholly Owned Properties Mountain Industrial ILPT Hawaii Mainland Total REIT LLC (1) Othe
Slide 22: Joint Ventures
22Supplemental Q1 2023RETURN TO TABLE OF CONTENTS Joint Ventures
Slide 23: Consolidated Joint Venture - Mountain Industrial REIT LLC
23Supplemental Q1 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 LLC 61% Con
Slide 24: Consolidated Joint Venture - Financial Information at 100%
24Supplemental Q1 2023RETURN TO TABLE OF CONTENTS Consolidated Joint Venture - Financial Information at 100% (1) Three Months Ended March 31, 2023 2022 (2) Mountain Industrial REIT LLC Rental income $ 43,066 $ 14,786 Real estate taxes 7,065 1,594 Other operating expenses 3,078 1,374 Depreciation and
Slide 25: Consolidated Joint Venture - Pro-Rata Financial Information
25Supplemental Q1 2023RETURN TO TABLE OF CONTENTS Consolidated Joint Venture - Pro-Rata Financial Information (1) Three Months Ended March 31, 2023 2022 (2) ILPT Share of Consolidated Joint Venture (61%) Rental income $ 26,270 $ 9,018 Real estate taxes 4,310 972 Other operating expenses 1,878 838 De
Slide 26: Consolidated Joint Venture - Portfolio Information
26Supplemental Q1 2023RETURN TO TABLE OF CONTENTS GA: 12.3% OH: 10.7% TX: 10.2% IN: 8.3% NC: 6.1%FL: 5.1% MI: 4.7% NJ: 4.0% MS: 3.6% KS: 3.6% TN: 3.3% 16 Other States: 28.1% Consolidated Joint Venture - Portfolio Information (dollars in thousands) Number of Leases Expiring 2 6 8 10 13 7 35 % of Tota
Slide 27: Unconsolidated Joint Venture - The Industrial Fund REIT LLC
27Supplemental Q1 2023RETURN TO TABLE OF CONTENTS Unconsolidated Joint Venture - The Industrial Fund REIT LLC (dollars in thousands) As of March 31, 2023 Investment in Unconsolidated ILPT Number of Square Joint Venture at Joint Venture Ownership Properties States Feet March 31, 2023 The Industrial F
Slide 28: Appendix
28Supplemental Q1 2023RETURN TO TABLE OF CONTENTS Appendix
Slide 29: Company Profile and Research Coverage
29Supplemental Q1 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 147 market indices and compri
Slide 30: Governance Information
30Supplemental Q1 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 Chair of
Slide 31: Non-GAAP Financial Measures and Certain Definitions
31Supplemental Q1 2023RETURN TO TABLE OF CONTENTS FFO and Normalized FFO Attributable to Common Shareholders: ILPT calculates funds from operations, or FFO, attributable to common shareholders and Normalized FFO attributable to common shareholders as shown on page 36. FFO attributable to common shar
Slide 32: Non-GAAP Financial Measures and Certain Definitions (Cont.)
32Supplemental Q1 2023RETURN TO TABLE OF CONTENTS Non-GAAP Financial Measures and Certain Definitions (Cont.) Annualized dividend yield - Annualized dividend yield is the annualized dividend paid during the applicable period divided by the closing price of ILPT's common shares at the end of the rele
Slide 33: Calculation and Reconciliation of NOI and Cash Basis NOI
33Supplemental Q1 2023RETURN TO TABLE OF CONTENTS Calculation and Reconciliation of NOI and Cash Basis NOI (dollars in thousands) For the Three Months Ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Calculation of NOI and Cash Basis NOI: Rental income $ 110,258 $ 106,339 $ 103,215 $ 107,222
Slide 34: Reconciliation of NOI to Same Property NOI
34Supplemental Q1 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 March 31, 2023 2022 Reconciliation of NOI to Same Property NOI: Rental income $ 110,258 $ 71,375 Real estate taxes (1
Slide 35: Calculation of EBITDA, EBITDAre, and Adjusted EBITDAre
35Supplemental Q1 2023RETURN TO TABLE OF CONTENTS Calculation of EBITDA, EBITDAre, and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Net loss $ (35,546) $ (41,759) $ (83,974) $ (151,321) $ (9,787) Plus: interest expense 70,771
Slide 36: Calculation of FFO and Normalized FFO
36Supplemental Q1 2023RETURN TO TABLE OF CONTENTS Calculation of FFO Attributable to Common Shareholders and Normalized FFO Attributable to Common Shareholders (dollars and shares in thousands, except per share data) For the Three Months Ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Net l
Slide 37: Warning Concerning Forward-Looking Statements
37Supplemental Q1 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 uncertainties. Thes
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