Industrial Logistics Properties Trust · NASDAQ:ILPT
Industrial Logistics Properties Trust — Q3 2022 Earnings Presentation
32 slides from Industrial Logistics Properties Trust's earnings presentation, Oct 25, 2022
Slide 1: Supplemental Operating and Financial Data Third Quarter 2022
1 Supplemental Operating and Financial Data ALL AMOUNTS IN THIS REPORT ARE UNAUDITED. THIRD QUARTER 2022 Exhibit 99.2 201 Exploration Drive Monroe, OH 387,000 387,000 Square Feet ILPT Ownership: 61%
Slide 2: Table of Contents
2Supplemental Q3 2022 CORPORATE INFORMATION Company Profile ............................................................................................................................................................................................................. 3 Investor Information ...........
Slide 3: Company Profile
3Supplemental Q3 2022 Corporate Headquarters: Two Newton Place 255 Washington Street, Suite 300 Newton, MA 02458-1634 (t) (617) 219-1460 Stock Exchange Listing: Nasdaq Trading Symbol: Common Shares: ILPT The Company: Industrial Logistics Properties Trust, or ILPT, we, our or us, is a real estate inv
Slide 4: Investor Information
4Supplemental Q3 2022 Investor 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 J
Slide 5: Equity Research Coverage
5Supplemental Q3 2022 ILPT is followed by the analysts listed here. Please note that any opinions, estimates or forecasts regarding ILPT’s performance made by these analysts do not represent opinions, forecasts or predictions of ILPT or its management. ILPT does not by its reference above imply its
Slide 6: Key Financial Data
6Supplemental Q3 2022 (dollars in thousands, except per share data) As of and For the Three Months Ended 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 Selected Balance Sheet Data: Total gross assets $ 5,962,116 $ 6,166,704 $ 6,286,275 $ 2,076,048 $ 2,212,938 Total assets $ 5,719,635 $ 5,955,838
Slide 7: Condensed Consolidated Balance Sheets
7Supplemental Q3 2022 Condensed Consolidated Balance Sheets September 30, December 31, 2022 2021 ASSETS Real estate properties: Land $ 1,117,801 $ 699,037 Buildings and improvements 4,053,913 1,049,796 Total real estate properties, gross 5,171,714 1,748,833 Accumulated depreciation (242,481) (167,49
Slide 8: Condensed Consolidated Statements of Income (Loss)
8Supplemental Q3 2022 Condensed Consolidated Statements of Income (Loss) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Rental income $ 103,215 $ 54,981 $ 281,812 $ 163,378 Expenses: Real estate taxes 13,749 7,617 36,460 22,353 Other operating expenses 8,453 4,4
Slide 9: Debt Summary
9Supplemental Q3 2022 (1) Interest rates are as of September 30, 2022. (2) Principal balance excludes unamortized debt issuance costs related to these debts. Total debt outstanding as of September 30, 2022, including unamortized debt issuance costs totaling $52,571, was $4,243,271. (3) The $1,235,00
Slide 10: Debt Maturity Schedule
10Supplemental Q3 2022 (1) Principal balance excludes unamortized debt issuance costs related to these debts. Total debt outstanding as of September 30, 2022, including unamortized debt issuance costs totaling $52,571, was $4,243,271. (2) The $1,235,000 Floating Rate Loan matures in October 2024, su
Slide 11: Leverage Ratios and Coverage Ratios
11Supplemental Q3 2022 As of and For the Three Months Ended 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 Leverage Ratios: Net debt / total gross assets 69.9% 65.1% 64.2% 38.7% 43.4% Net debt / gross book value of real estate assets 73.1% 73.7% 76.4% 42.3% 45.7% Net debt / total market capitali
Slide 12: Capital Expenditures Summary
12Supplemental Q3 2022 (dollars in thousands) For the Three Months Ended 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 Tenant improvements and leasing costs $ 2,302 $ 2,627 $ 3,361 $ 2,736 $ 1,819 Building improvements 1,292 376 110 1,315 1,625 Recurring capital expenditures 3,594 3,003 3,471 4
Slide 13: Property Acquisitions and Dispositions Information Since 1/1/2022
13Supplemental Q3 2022 Property Acquisitions and Dispositions Information Since 1/1/2022 (dollars and sq. ft. in thousands, except per sq. ft. data) Acquisitions: Dispositions: Weighted Average Percent Purchase Remaining Leased Date Market Number of Purchase Price / Cap Lease Term at Acquired Buyer
Slide 14: Portfolio Summary By Property Type
14Supplemental Q3 2022 Portfolio Summary By Property Type (dollars and sq. ft. in thousands) (1) Includes buildings, leasable land parcels and easements which are primarily industrial lands located in Hawaii. As of and For the Three Months Ended September 30, 2022 Mainland Hawaii Key Statistics Prop
Slide 15: Same Property Results of Operations by Property Type
15Supplemental Q3 2022 (dollars and sq. ft. in thousands) As of and For the Three Months Ended As of and For the Nine Months Ended 9/30/2022 9/30/2021 9/30/2022 9/30/2021 Properties: Mainland Properties 61 61 60 60 Hawaii Properties 226 226 226 226 Total 287 287 286 286 Square Feet (1): Mainland Pro
Slide 16: Same Property Results of Operations by Property Type (Cont.)
16Supplemental Q3 2022 As of and For the Three Months Ended As of and For the Nine Months Ended 9/30/2022 9/30/2021 9/30/2022 9/30/2021 NOI: Mainland Properties $ 20,965 $ 20,495 $ 61,904 $ 60,988 Hawaii Properties 20,049 20,628 64,087 61,312 Total $ 41,014 $ 41,123 $ 125,991 $ 122,300 Cash Basis NO
Slide 17: Leasing Summary
17Supplemental Q3 2022 (dollars and sq. ft. in thousands, except per sq. ft. data) As of and For the Three Months Ended 9/30/2022 06/30/2022 3/31/2022 12/31/2021 9/30/2021 Properties 413 412 412 288 294 Total sq. ft. (3) 59,962 59,736 59,736 33,991 36,488 Square feet leased 59,469 59,060 59,059 33,7
Slide 18: Occupancy and Leasing Analysis by Property Type
18Supplemental Q3 2022 Occupancy and Leasing Analysis by Property Type (sq. ft. in thousands) Sq. Ft. Leased New and As of 6/30/2022 Acquisitions / Expired Renewal As of 9/30/2022 Property Type 6/30/2022 % Leased (2) (Sales) Leases Leases 9/30/2022 % Leased Mainland Properties 42,557 99.0% 226 (1,21
Slide 19: Tenant Credit Characteristics
19Supplemental Q3 2022 As of September 30, 2022 Mainland Properties % of Annualized Rental Revenues Investment Grade Rated: 20.6% Subsidiaries of Investment Grade Rated Parent Entities: 52.2% Other Unrated or Non-Investment Grade: 27.2% Investment Grade Rated: 20.4% Subsidiaries of Investment Grade
Slide 20: Tenants Representing 1% or More of Annualized Rental Revenues
20Supplemental Q3 2022 % of Total No. of Leased % of Total Annualized Rental Tenant States Properties Sq. Ft. Leased Sq. Ft. Revenues 1 Federal Express Corporation/ FedEx Ground Package System, Inc. Various (34 states) 84 13,109 22.0% 29.6% 2 Amazon.com Services, Inc./ Amazon.com Services LLC AL, IN
Slide 21: Lease Expiration Schedule by Property Type
21Supplemental Q3 2022 2027 and Total 2022 2023 2024 2025 2026 Thereafter Mainland Properties Expirations: Total sq. ft. 43,233 Leased sq. ft. 42,966 201 2,768 4,216 4,543 3,127 28,111 Percent 0.5% 6.4% 9.8% 10.6% 7.3% 65.4% Annualized rental revenues $ 300,203 $ 1,394 $ 19,878 $ 27,731 $ 26,159 $ 1
Slide 22: Lease Expiration Schedule
22Supplemental Q3 2022 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 Expiring Expiring Expiring Expir
Slide 23: Joint Ventures
23Supplemental Q3 2022 Joint Ventures (dollars and sq. ft. in thousands) Investment in Joint Ventures: Three Months Ended ILPT September 30, 2022 Carrying Value at Joint Joint ILPT Number of Number of Square September 30, Venture Venture Joint Venture Ownership Presentation Properties States Feet 20
Slide 24: Joint Venture - Mountain Industrial REIT LLC
24Supplemental Q3 2022 GA: 11.1% OH: 10.5% TX: 10.2% IN: 8.4% NC: 6.1% FL: 5.2%MI: 4.8% NJ: 4.1% IL: 3.9% KS: 3.7% MS: 3.5% 16 Other States: 28.5% Joint Venture - Mountain Industrial REIT LLC (dollars in thousands) Number of Leases Expiring 1 6 6 8 10 13 38 % of Total Annualized Rental Revenues Expi
Slide 25: Joint Venture - The Industrial Fund REIT LLC
25Supplemental Q3 2022 IN: 23.5% OH: 17.8% FL: 14.4% AZ: 7.5% VA: 7.0% MO: 6.1% MS: 5.8% KY: 4.9% IA: 4.6% TN: 3.5% MD: 3.0% PA: 1.9% Joint Venture - The Industrial Fund REIT LLC (dollars in thousands) Number of Leases Expiring — 4 3 2 4 3 6 % of Total Annualized Rental Revenues Expiring —% 6.2% 10.
Slide 26: Calculation and Reconciliation of NOI and Cash Basis NOI
26Supplemental Q3 2022 Calculation and Reconciliation of NOI and Cash Basis NOI (dollars in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 9/30/2022 9/30/2021 Calculation of NOI and Cash Basis NOI: Rental income $ 103,215 $ 107,222
Slide 27: Reconciliation of NOI to Same Property NOI
27Supplemental Q3 2022 Reconciliation of NOI to Same Property NOI and Calculation of Same Property Cash Basis NOI (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Reconciliation of NOI to Same Property NOI : Rental income $ 103,215 $ 54,981
Slide 28: Calculation of EBITDA, EBITDAre, and Adjusted EBITDAre
28Supplemental Q3 2022 Calculation of EBITDA, EBITDAre, and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 9/30/2022 9/30/2021 Net (loss) income $ (83,974) $ (151,321) $ (9,787) $ 63,207 $ 18,307 $ (245
Slide 29: Calculation of FFO and Normalized FFO
29Supplemental Q3 2022 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 For the Nine Months Ended 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 9/30/2
Slide 30: Non-GAAP Financial Measures and Certain Definitions
30Supplemental Q3 2022 FFO and Normalized FFO Attributable to Common Shareholders: We calculate funds from operations, or FFO, attributable to common shareholders and Normalized FFO attributable to common shareholders as shown on page 29. FFO attributable to common shareholders is calculated on the
Slide 31: Non-GAAP Financial Measures and Certain Definitions (Cont.)
31Supplemental Q3 2022 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 our common shares at the end of the relevant period. Annualized rental
Slide 32: Warning Concerning Forward-Looking Statements
32Supplemental Q3 2022 This supplemental operating and financial data may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Whenever we use words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estim
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