Industrial Logistics Properties Trust · NASDAQ:ILPT
Industrial Logistics Properties Trust — Investor Presentation (November 2023)
28 slides from Industrial Logistics Properties Trust's investor presentation, Nov 13, 2023
Slide 1: Industrial Logistics Properties Trust Investor Presentation November 2023
INDUSTRIAL LOGISTICS PROPERTIES TRUST November 2023 510 John Dodd Road Spartanburg, SC 1,015,740 Square Feet ILPT Ownership: 100% INVESTOR PRESENTATION
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 413 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 29 Other States, 31.0% HI, 28.0% OH, 7.6% IN, 5.6% SC, 5.2% FL, 5.0% GA, 4.7% TX, 4.3% NJ, 3.4% TN, 2.9% NC, 2.3% GEOGRAPHIC DIVERSITY WITH A UNIQUE HAWAIIAN FOOTPRINT Location and Number of Properties Geographic Mix of Annualized Rental Revenues • 187 industr
Slide 5: Select Portfolio Properties
5 SELECT PORTFOLIO PROPERTIES 8411 Florida Mining Boulevard Tampa, FL 174,975 Square Feet ILPT Ownership: 61% 900 Commerce Parkway West Drive Greenwood, IN 294,388 Square Feet ILPT Ownership: 100% 2552 South 98th Street Edwardsville, KS 280,019 Square Feet ILPT Ownership: 61% 3350 Laurel Ridge Avenu
Slide 6: Growth in E-Commerce Driving Incremental Industrial Demand
6 INDUSTRIAL LOGISTICS PROPERTIES TRUST 0% 2% 4% 6% 8% 10% 12% 14% 16% $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 11' 12' 13' 14' 15' 16' 17' 18' 19' 20' 21' 22' In-Store Sales U.S. E-commerce Sales % Online $0 $200 $400 $600 $800 $1,000 $1,200 11' 12' 13' 14' 15' 16' 17' 18' 19' 20'
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 Property Type % of Annualized Rental Revenues Tenant Industry Type % of Portfolio Transportation & Shipping 37.5 Automotive 8.8 Construction & Building M
Slide 9: Strong Credit Quality and Diversified Tenant Base
9 INDUSTRIAL LOGISTICS PROPERTIES TRUST STRONG CREDIT QUALITY AND DIVERSIFIED TENANT BASE More than 75% of annualized rental revenues are derived from investment grade tenants/subsidiaries or from secure Hawaii land leases. Tenant Credit Characteristics % of Annualized Rental Revenues Other Unrated
Slide 10: Recent Business Highlights
10 INDUSTRIAL LOGISTICS PROPERTIES TRUST RECENT BUSINESS HIGHLIGHTS Full Year 2022 (1) Same Property Cash Basis NOI Rental Rates Leasing Activity +1.0% +37.1% Leasing Activity WALT (by Sq. Ft.) 8.0 years Same Property NOI +2.6% 5,573,000 SF 10 +4.9% +20.8% 7.8 years 3,868,000 SF Year to Date 2023 +3
Slide 11: Investment Portfolio Q3 2023 Results
11 INDUSTRIAL LOGISTICS PROPERTIES TRUST Mountain Industrial JV (1) Consolidated ILPT 61% Ownership 94 Properties 99.2% Occupancy $33.2M NOI $31.7M Cash Basis NOI $30.7M Adjusted EBITDAre $3.2B Total Gross Assets (1) Amounts represent this joint venture at 100%, not ILPT’s proportionate share thereo
Slide 12: Proactive Asset Management and Leasing
1.7 2.0 0.8 77.5% 29.6% 13.5% -20.0% 30.0% 80.0% 130.0% 180.0% 0.0 0.5 1.0 1.5 2.0 2.5 Q3 2022 Q2 2023 Q3 2023 Total Leasing (msf) Rent Roll-Up PROACTIVE ASSET MANAGEMENT AND LEASING Leasing Activity Square Footage in Millions INDUSTRIAL LOGISTICS PROPERTIES TRUST ILPT has executed nearly four milli
Slide 13: Lease Expirations and Rent Resets by Investment Portfolio
LEASE EXPIRATIONS AND RENT RESETS BY INVESTMENT PORTFOLIO INDUSTRIAL LOGISTICS PROPERTIES TRUST 13 Hawaii Property Expirations and Resets % Total ILPT Annualized Rental Revenues Mountain Joint Venture Expirations % Total ILPT Annualized Rental Revenues Wholly Owned Mainland Property Expirations % To
Slide 14: Debt Summary
DEBT SUMMARY 14 Secured Floating Rate Debt $1.2B JV Secured Floating Rate Debt $1.4B Secured Fixed Rate Debt $1.7B $4.4 $2,653.1 $18.8 $19.5 $20.2 $1,614.4 2023 2024 2025 2026 2027 2028+ INDUSTRIAL LOGISTICS PROPERTIES TRUST Key Facts Debt Maturity Total Consolidated Debt Current Estimated Quarterly
Slide 15: Joint Ventures
JOINT VENTURES $30.7 Million $12.4 Million Mountain Industrial REIT LLC 22% / 78% Number of Properties Square Feet Adjusted EBITDAre (1) 61% / 39% 94 18 20,981,000 SF 11,726,000 SF ILPT/JV Ownership The Industrial Fund REIT LLC Raise capital at property net asset value. Grow relationships with new a
Slide 16: Managed by The RMR Group LLC, an Alternative Asset Manager
16 INDUSTRIAL LOGISTICS PROPERTIES TRUST RMR’s Operations Include: National Multi-Sector Investment Platform OFFICE INDUSTRIAL GOVERNMENT MEDICAL OFFICE LIFE SCIENCE SENIOR LIVING HOTELS SERVICE RETAIL RMR Managed Companies Over 20,000 Employees Over 2,000 Properties More than $5 billion in Annual R
Slide 17: RMR management fee structure
17 INDUSTRIAL LOGISTICS PROPERTIES TRUST • Base Business Management Fee: 0.5% multiplied by the lower of (i) gross historical cost or (ii) average market capitalization.(1) • Property Management Fees: 3% of gross collected rents and 5% of construction costs. • Incentive Management Fee: 12% of the ou
Slide 18: A Winning Tradition: RMR Recognition
18 INDUSTRIAL LOGISTICS PROPERTIES TRUST A WINNING TRADITION RMR RECOGNITION EPA’S ENERGY STAR Partner of the Year 2019 - 2022. 77 properties with EPA ENERGY STAR certifications. 55 properties with BOMA designations. Ranked #2 for portfolio with most designations. 58 properties with LEED designation
Slide 19: Appendix
19 INDUSTRIAL LOGISTICS PROPERTIES TRUST APPENDIX 725 Darlington Avenue Mahwah, NJ 167,424 Square Feet ILPT Ownership: 100% 19
Slide 20: Selected quarterly financial data
20 INDUSTRIAL LOGISTICS PROPERTIES TRUST As of and for the Three Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Selected Income Statement Data: Rental income $ 110,142 $ 108,043 $ 110,258 $ 106,339 $ 103,215 Net loss $ (36,191) $ (36,580) $ (35,546) $ (41,759) $ (83,974) Net loss at
Slide 21: Calculation and Reconciliation of NOI and Cash Basis NOI
21 INDUSTRIAL LOGISTICS PROPERTIES TRUST 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 $
Slide 22: Reconciliation of NOI to Same Property NOI
22 INDUSTRIAL LOGISTICS PROPERTIES TRUST For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Reconciliation of NOI to Same Property NOI: Rental income $ 110,142 $ 103,215 $ 328,443 $ 281,812 Real estate taxes (14,926) (13,749) (46,493) (36,460) Other
Slide 23: Calculation of EBITDA and Adjusted EBITDAre
23 INDUSTRIAL LOGISTICS PROPERTIES TRUST 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: interest expense 72,941 71,846 70,771 71,
Slide 24: Calculation of FFO, Normalized FFO and CAD
24 INDUSTRIAL LOGISTICS PROPERTIES TRUST 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) $ (31,043) $ (45,627) $ (76,749) $ (195,680) Depreciation
Slide 25: Calculation of FFO, Normalized FFO and CAD (continued)
25 INDUSTRIAL LOGISTICS PROPERTIES TRUST CALCULATION OF FFO, NORMALIZED FFO AND CAD ATTRIBUTABLE TO COMMON SHAREHOLDERS (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 9/30/20
Slide 26: Results by portfolio, three months ended September 30, 2023
26 INDUSTRIAL LOGISTICS PROPERTIES TRUST 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) Consolidate Ownership % 100.0% 100.0% 100.0% 61.0% Properties 226 92 318 94 1 4 Sq. ft. 16,729 22,209 38
Slide 27: Definitions
27 INDUSTRIAL LOGISTICS PROPERTIES TRUST 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 to common shareholders, Normalized FFO at
Slide 28: Contact information
INDUSTRIAL LOGISTICS PROPERTIES TRUST November 2023 INVESTOR PRESENTATION Two Newton Place 255 Washington Street, Suite 300 Newton, Massachusetts 02458 ILPTREIT.COM 510 John Dodd Road Spartanburg, SC 1,015,740 Square Feet ILPT Ownership: 100%
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