Industrial Logistics Properties Trust · NASDAQ:ILPT
Industrial Logistics Properties Trust — Q2 2024 Earnings Presentation
36 slides from Industrial Logistics Properties Trust's earnings presentation, Jul 30, 2024
Slide 1: Second Quarter 2024 Financial Results and Supplemental Information
1 Industrial Logistics Properties Trust Second Quarter 2024 Financial Results and Supplemental Information July 30, 2024 Exhibit 99.2 1901 Meadowville Tech Pkwy Chester, VA 1,016,281 Square Feet ILPT Ownership 100%
Slide 2: Table of Contents
2Q2 2024RETURN TO TABLE OF CONTENTS QUARTERLY RESULTS Industrial Logistics Properties Trust Announces Second Quarter 2024 Financial Results .................................................................... 4 Second Quarter 2024 Highlights ..........................................................
Slide 3: Quarterly Results
3Q2 2024RETURN TO TABLE OF CONTENTS Quarterly Results
Slide 4: ILPT Announces Second Quarter 2024 Financial Results
4Q2 2024RETURN TO TABLE OF CONTENTS “Operating results for ILPT's second quarter remained strong as we executed 628,000 square feet of new and renewal leases at weighted average rental rates that were 15.8% higher than prior rental rates for the same space and saw same property cash basis NOI grow b
Slide 5: Second Quarter 2024 Highlights
5Q2 2024RETURN TO TABLE OF CONTENTS Portfolio Update • Executed approximately 628,000 square feet of total leasing at weighted average rental rates that were 15.8% higher than prior rental rates for the same space. • Cash flows remain stable, as approximately 77% of annualized rental revenues are ge
Slide 6: Financials
6Q2 2024RETURN TO TABLE OF CONTENTS Financials
Slide 7: Key Financial Data
7Q2 2024RETURN TO TABLE OF CONTENTS As of and for the Three Months Ended As of 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 Selected Income Statement Data: Capitalization: Rental income $ 110,621 $ 112,235 $ 108,895 $ 110,142 $ 108,043 Total common shares 65,992,509 Net loss $ (33,47
Slide 8: Condensed Consolidated Statements of Income (Loss)
8Q2 2024RETURN TO TABLE OF CONTENTS Condensed Consolidated Statements of Income (Loss) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Rental income $ 110,621 $ 108,043 $ 222,856 $ 218,301 Expenses: Real estate taxes 15,149 15,100 31,010 31,567 Other operating expenses 9,20
Slide 9: Condensed Consolidated Balance Sheets
9Q2 2024RETURN TO TABLE OF CONTENTS Condensed Consolidated Balance Sheets June 30, December 31, 2024 2023 ASSETS Real estate properties $ 5,173,408 $ 5,169,552 Accumulated depreciation (460,526) (397,454) Total real estate properties, net 4,712,882 4,772,098 Investment in unconsolidated joint ventur
Slide 10: Debt Summary
10Q2 2024RETURN TO TABLE OF CONTENTS (1) Interest rates reflect the impact of interest rate caps, as applicable. (2) This loan has three, one year extension options, subject to the satisfaction of certain conditions, and requires that interest be paid at an annual rate of SOFR plus a weighted averag
Slide 11: Debt Maturity Schedule
11Q2 2024RETURN TO TABLE OF CONTENTS (1) This secured floating rate loan matures in March 2025, subject to two remaining one year extension options. (2) This secured floating rate loan matures in October 2024, subject to three, one year extension options. Debt Maturity Schedule (dollars in millions)
Slide 12: Leverage and Coverage Ratios
12Q2 2024RETURN TO TABLE OF CONTENTS As of and for the Three Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Leverage Ratios: Net debt / total gross assets 68.2% 68.6% 68.4% 68.5% 68.8% Net debt / gross book value of real estate assets 71.2% 71.7% 71.3% 71.7% 72.2% Net debt / total m
Slide 13: Capital Expenditures Summary
13Q2 2024RETURN TO TABLE OF CONTENTS (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 06/30/2024 06/30/2023 Tenant improvements $ 142 $ 444 $ 1,423 $ 194 $ 1,221 $ 586 $ 1,699 Leasing costs 184 2,127 1,196 1,047 1,277 2,311
Slide 14: Portfolio Information
14Q2 2024RETURN TO TABLE OF CONTENTS Portfolio Information
Slide 15: Same Property Results
15Q2 2024RETURN TO TABLE OF CONTENTS (dollars and sq. ft. in thousands) As of and for the Three Months Ended As of and for the Six Months Ended 6/30/2024 6/30/2023 6/30/2024 6/30/2023 Properties 411 411 411 411 Square feet (1) 59,893 59,951 59,893 59,951 Percent leased 95.4% 99.1% 95.4% 99.1% Rental
Slide 16: Occupancy and Leasing Summary
16Q2 2024RETURN TO TABLE OF CONTENTS (dollars and sq. ft. in thousands, except per sq. ft. data) As of and for the As of and for the Three Months Ended Six Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 Properties 411 411 411 413 413 411 Total sq. ft. 59,893 59,893 59,951
Slide 17: Tenant Credit Characteristics and Concentration
17Q2 2024RETURN TO TABLE OF CONTENTS As of June 30, 2024 % of Total Annualized Tenant Credit Characteristics Rental Revenues Investment grade rated 18.5% Subsidiaries of investment grade rated parent entities 37.1% Other leased Hawaii lands 20.9% Subtotal investment grade rated, subsidiaries of inve
Slide 18: Portfolio Lease Expiration and Reset Schedules
18Q2 2024RETURN TO TABLE OF CONTENTS Cumulative Cumulative % of Total % of Total % of Total % of Total Leased Leased Leased Annualized Annualized Annualized No. of Square Feet Square Feet Square Feet Rental Revenues Rental Revenues Rental Revenues Year Leases Expiring Expiring Expiring Expiring Expi
Slide 19: Key Financial Data by Investment Portfolio
19Q2 2024RETURN 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 June 30, 2024 ILPT Wholly Owned Properties Mountain Industrial ILPT Mainland Hawaii Total REIT LLC (1) Other (2) Consolidat
Slide 20: Joint Ventures
20Q2 2024RETURN TO TABLE OF CONTENTS Joint Ventures
Slide 21: Consolidated Joint Venture - Mountain Industrial REIT LLC
21Q2 2024RETURN TO TABLE OF CONTENTS GA: 12.5% TX: 10.2% OH: 9.9% IN: 8.5% NC: 5.9% FL: 5.1%MI: 4.7% NJ: 3.9% IL: 3.8% MS: 3.6% KS: 3.6% 16 Other States: 28.3% Consolidated Joint Venture - Mountain Industrial REIT LLC (dollars in thousands) Number of Leases Expiring 1 7 12 13 7 41 % of Total Annuali
Slide 22: Consolidated Balance Sheets of the Consolidated Joint Venture
22Q2 2024RETURN TO TABLE OF CONTENTS (dollars and sq. ft. in thousands) ILPT Number of Square Joint Venture Ownership Presentation Properties States Feet Mountain Industrial REIT LLC 61% Consolidated 94 27 20,981 (1) Amounts shown in the balance sheet reflect 100% ownership interest of this joint ve
Slide 23: Operating Information of the Consolidated Joint Venture
23Q2 2024RETURN TO TABLE OF CONTENTS Operating Information of the Consolidated Joint Venture (100%) Pro-Rata Operating Information of the Consolidated Joint Venture (ILPT Share) (1) Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, 2024 2023
Slide 24: Operating Information of the Consolidated Joint Venture (continued)
24Q2 2024RETURN TO TABLE OF CONTENTS Operating Information of the Consolidated Joint Venture (100%) Pro-Rata Operating Information of the Consolidated Joint Venture (ILPT Share) (1) Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, 2024 2023
Slide 25: Unconsolidated Joint Venture - The Industrial Fund REIT LLC
25Q2 2024RETURN TO TABLE OF CONTENTS Unconsolidated Joint Venture - The Industrial Fund REIT LLC (1) As of June 30, 2024 ILPT Number of Square Investment in Joint Venture Ownership Properties States Feet Joint Venture The Industrial Fund REIT LLC 22% 18 12 11,726 $ 117,451 Three Months Ended June 30
Slide 26: Appendix
26Q2 2024RETURN TO TABLE OF CONTENTS Appendix
Slide 27: Calculation and Reconciliation of NOI and Cash Basis NOI
27Q2 2024RETURN TO TABLE OF CONTENTS Calculation and Reconciliation of NOI and Cash Basis NOI (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 6/30/2023 Calculation of NOI and Cash Basis NOI: Rental income $ 110,6
Slide 28: Reconciliation of NOI to Same Property NOI
28Q2 2024RETURN TO TABLE OF CONTENTS Reconciliation of NOI to Same Property NOI and Calculation of Same Property Cash Basis NOI (dollars in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Reconciliation of NOI to Same Property NOI: Rental income $
Slide 29: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
29Q2 2024RETURN TO TABLE OF CONTENTS Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 6/30/2023 Net loss $ (33,479) $ (33,902) $ (41,402) $ (36,191) $ (36,580)
Slide 30: Calculation of FFO, Normalized FFO and CAD
30Q2 2024RETURN TO TABLE OF CONTENTS Calculation of FFO, Normalized FFO and CAD (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 6/30/2023 Net loss attributable to common shareholders $ (23,175) $ (23,403) $ (31,2
Slide 31: Calculation of CAD (continued)
31Q2 2024RETURN TO TABLE OF CONTENTS (dollars and shares in thousands, except per share data) For the Three Months Ended For the Six Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 6/30/2023 Normalized FFO attributable to common shareholders $ 8,965 $ 9,450 $ 8,086 $ 7,945
Slide 32: Company Profile, Research Coverage and Governance Information
32Q2 2024RETURN TO TABLE OF CONTENTS Company Profile, Research Coverage and Governance Information The Company: ILPT is included in 144 market indices and comprises more than 1% of the following indices as of June 30, 2024: Invesco S&P SmallCap High Dividend Low Volatility ETF INAV Index (XSHDIV), B
Slide 33: Non-GAAP Financial Measures and Certain Definitions
33Q2 2024RETURN TO TABLE OF CONTENTS Unless otherwise noted, all data presented in this presentation excludes 18 properties, which are encumbered by $538.7 million of mortgage notes, owned by an unconsolidated joint venture in which ILPT owns a 22% equity interest. See page 25 for information regard
Slide 34: Non-GAAP Financial Measures and Certain Definitions (Continued)
34Q2 2024RETURN TO TABLE OF CONTENTS Non-GAAP Financial Measures and Certain Definitions (Continued) Cash Available for Distribution: ILPT calculates cash available for distribution, or CAD, as shown on page 31. ILPT defines CAD as Normalized FFO minus ILPT's proportionate share of Normalized FFO fr
Slide 35: Certain Definitions: Wholly Owned Properties
35Q2 2024RETURN TO TABLE OF CONTENTS ILPT Wholly Owned Properties - ILPT Wholly Owned Properties is comprised of 316 properties that are wholly owned by ILPT, including 226 buildings, leasable land parcels and easements containing approximately 16.7 million rentable square feet that are primarily in
Slide 36: Warning Concerning Forward-Looking Statements
36Q2 2024RETURN 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. These statements
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