Industrial Logistics Properties Trust · NASDAQ:ILPT
Industrial Logistics Properties Trust — Investor Presentation (August 2021)
32 slides from Industrial Logistics Properties Trust's investor presentation, August 2021
Slide 1: Investor Presentation August 2021
INVESTOR PRESENTATION August 2021 7303 Rickenbacker Parkway West, Columbus, OH
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 ILPT uses words such as “believe”, “expect”, “
Slide 3: ILPT 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 291 $2.6 Billion 35 Million Industrial & Logistics Total Market Capitalization Rentable Square Feet Properties Located in 9.2 99.0% 32 Years of Weighted Average Occupancy States Remaining Lease Term Approximately 72% 51% Rents fro
Slide 5: Recent Business Highlights
INDUSTRIAL LOGISTICS PROPERTIES TRUST RECENT BUSINESS HIGHLIGHTS Full Year 2020 Q2 2021 YTD Net Income Attributable to Common Shareholders +56.3% +38.0% Normalized FFO +5.8% +0.9% Same Property NOI +3.1% +2.0% Leasing Activity 3,035,000 SF 1,184,000 SF Rental Rates +16.7% +16.8% Weighted Average Lea
Slide 6: Compelling Investment Opportunity
INDUSTRIAL LOGISTICS PROPERTIES TRUST COMPELLING INVESTMENT OPPORTUNITY • Rapid e-commerce growth is expected to drive demand for space and Strong Industrial Market support rent increases. Fundamentals • Strong absorption and rent growth is expected to continue. High Quality Portfolio • Portfolio in
Slide 7: Industry Landscape
2020 Joe B. Jackson Parkway, Murfreesboro, TN INDUSTRY LANDSCAPE 7
Slide 8: 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 9: 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 10: Property Portfolio
PROPERTY PORTFOLIO 16920 W. Commerce Drive, Goodyear, AZ 10
Slide 11: Geographic Diversity with a Unique Hawaiian Footprint
INDUSTRIAL LOGISTICS PROPERTIES TRUST GEOGRAPHIC DIVERSITY WITH A UNIQUE HAWAIIAN FOOTPRINT Mainland Properties Hawaii Properties • 65 industrial and logistics properties located in 31 • 226 well-located properties near Oahu’s prime CBD. states. • 17 million square feet that is 98% leased with a 13
Slide 12: 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 13: 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 14: Acquired Over $1 Billion of Properties
INDUSTRIAL LOGISTICS PROPERTIES TRUST ACQUIRED OVER $1 BILLION OF PROPERTIES We intend to expand our business by acquiring industrial and logistics properties that serve the growing needs of e-commerce. Square % Leased at Year Property Market Area Purchase Price Cap Rate Major Tenants Footage Acquis
Slide 15: 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 16: Joint Venture Validates the Strength of ILPT's Portfolio
INDUSTRIAL LOGISTICS PROPERTIES TRUST JOINT VENTURE VALIDATES THE STRENGTH OF ILPT’S PORTFOLIO Joint Venture raised equity capital at Net Asset Value to reduce debt, resulting in substantially reduced leverage for ILPT. • Established a $680 million joint venture (“JV”) for a portfolio of 12 mainland
Slide 17: Financials & Leasing
FINANCIALS & LEASING 5 Logistics Drive, Carlisle, PA 17
Slide 18: 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 $0.62 $0.47 $0.46 $0.46 $0.47 $0.47 $0.30 $0.29 $0.23 $0.22 Q2 2020 Q3 2020 Q
Slide 19: Balance Sheet Positioned to Support Growth
INDUSTRIAL LOGISTICS PROPERTIES TRUST BALANCE SHEET POSITIONED TO SUPPORT GROWTH Highlights Capital Structure • $2.6 billion in total market capitalization. Mortgage Notes 25% • $537 million of cash and revolver availability. • Minimal debt maturities in the next 8 years. Equity Market Revolving Cre
Slide 20: Stable Cash Flows from Long Term Leases
INDUSTRIAL LOGISTICS PROPERTIES TRUST STABLE CASH FLOWS FROM LONG TERM LEASES Focused on addressing lease expirations totaling ~30% of rental revenue by the end of 2024 to maximize rent growth and minimize potential downtime and capital costs. 1. Resetting leases are shown both in the year of the ne
Slide 21: Hawaii and Mainland Lease Terms Are Consistent and Secure
INDUSTRIAL LOGISTICS PROPERTIES TRUST HAWAII AND MAINLAND LEASE TERMS ARE CONSISTENT AND SECURE MAINLAND LEASES • Fixed rent leases that typically include periodic rent increases. • Leases largely only require us to maintain certain structural elements of the buildings. • As leases expire, opportuni
Slide 22: 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: $32 Billion Approximately $10 billion in AUM in Annual Revenues Financial Real Estate Business Services: Services: Services: Acquisitions
Slide 23: 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 24: 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 25: Appendix
APPENDIX 20 Logistics Blvd., Walton, KY 25
Slide 26: 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) 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 Selected Balance Sheet Data: Total gross assets $ 2,091,331 $ 2,058,022 $ 2,057,151 $ 2,659,5
Slide 27: Calculation and Reconciliation of NOI and Cash Basis NOI
INDUSTRIAL LOGISTICS PROPERTIES TRUST CALCULATION AND RECONCILIATION OF NOI AND CASH BASIS NOI For the Three Months Ended For the Six Months Ended (dollars in thousands) 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 6/30/2021 6/30/2020 Calculation of NOI and Cash Basis NOI: Rental income $ 54,1
Slide 28: 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 Six Months Ended (dollars in thousands) 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 6/30/2021 6/30/2020 Net income $ 18,831 $ 19,337 $ 40,140 $ 13,814 $ 14,557 $ 38,1
Slide 29: Calculation of FFO and Normalized FFO
INDUSTRIAL LOGISTICS PROPERTIES TRUST CALCULATION OF FFO AND NORMALIZED FFO ATTRIBUTABLE TO COMMON SHAREHOLDERS For the Three Months Ended For the Six Months Ended 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 6/30/2021 6/30/2020 Net income attributable to common shareholders $ 18,831 $ 19,337
Slide 30: Capitalization
INDUSTRIAL LOGISTICS PROPERTIES TRUST CAPITALIZATION As of and For the (dollars and shares in thousands, except per share data) Three Months Ended 6/30/2021 Revolving Credit Facility $ 244,000 Mortgage Note 650,000 Total Debt $ 894,000 Less: Cash (30,512) Net Debt $ 863,488 Total Shares Outstanding
Slide 31: 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 32: Investor Presentation
INVESTOR PRESENTATION August 2021 Two Newton Place 255 Washington Street, Suite 300 Newton, Massachusetts 02458 ILPTREIT.COM
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