Industrial Logistics Properties Trust · NASDAQ:ILPT
Industrial Logistics Properties Trust — Q3 2023 Earnings Presentation
38 slides from Industrial Logistics Properties Trust's earnings presentation, Oct 25, 2023
Slide 1: Third Quarter 2023 Financial Results and Supplemental Information
1 Industrial Logistics Properties Trust Third Quarter 2023 Financial Results and Supplemental Information October 25, 2023 Exhibit 99.2510 John Dodd Road Spartanburg, SC 1,015,740 Square Feet ILPT Ownership 100%
Slide 2: Table of Contents
2Q3 2023RETURN TO TABLE OF CONTENTS QUARTERLY RESULTS Industrial Logistics Properties Trust Announces Third Quarter 2023 Financial Results .................................................... 4 Third Quarter 2023 Highlights ............................................................................
Slide 3: Quarterly Results
3Q3 2023RETURN TO TABLE OF CONTENTS Quarterly Results
Slide 4: ILPT Announces Third Quarter 2023 Financial Results
4Q3 2023RETURN TO TABLE OF CONTENTS "During the third quarter, ILPT experienced same property NOI and same property Cash Basis NOI growth of 5.3% and 6.0%, respectively. This growth is primarily the result of strong leasing activity during 2022 and the first half of 2023, which is now being realized
Slide 5: Third Quarter 2023 Highlights
5Q3 2023RETURN TO TABLE OF CONTENTS Portfolio Update • Executed 758,000 square feet of new and renewal leases at 13.5% higher rents. • Lease renewals accounted for approximately 92% of leasing activity, which highlights strong tenant retention and continued demand for ILPT's high quality warehouse a
Slide 6: Financials
6Q3 2023RETURN TO TABLE OF CONTENTS Financials
Slide 7: Key Financial Data
7Q3 2023RETURN TO TABLE OF CONTENTS (dollars in thousands, except per share data) As of and for the Three Months Ended As of 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 9/30/2023 Selected Income Statement Data: Capitalization: Rental income $ 110,142 $ 108,043 $ 110,258 $ 106,339 $ 103,215 To
Slide 8: Condensed Consolidated Statements of Income (Loss)
8Q3 2023RETURN TO TABLE OF CONTENTS Condensed Consolidated Statements of Income (Loss) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Rental income $ 110,142 $ 103,215 $ 328,443 $ 281,812 Expenses: Real estate taxes 14,926 13,749 46,493 36,460 Other operating ex
Slide 9: Condensed Consolidated Balance Sheets
9Q3 2023RETURN TO TABLE OF CONTENTS Condensed Consolidated Balance Sheets September 30, December 31, 2023 2022 ASSETS Real estate properties 5,127,634 5,176,108 Accumulated depreciation (361,814) (273,467) Total real estate properties, net 4,765,820 4,902,641 Assets of properties held for sale 57,60
Slide 10: Debt Summary
10Q3 2023RETURN TO TABLE OF CONTENTS (1) Interest rates 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 September 30, 2023, including unamortized debt issuance costs totaling
Slide 11: Debt Maturity Schedule
11Q3 2023RETURN TO TABLE OF CONTENTS (1) The $1,400.0 secured floating rate loan of ILPT's consolidated joint venture matures in March 2024, subject to three, one year extension options. See pages 22-25 for further information relating to this joint venture. (2) The $1,235.0 secured floating rate lo
Slide 12: Leverage and Coverage Ratios
12Q3 2023RETURN TO TABLE OF CONTENTS As of and for the Three Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Leverage Ratios: Net debt / total gross assets 68.5% 68.8% 69.7% 69.7% 69.9% Net debt / gross book value of real estate assets 71.7% 72.2% 72.4% 72.6% 73.1% Net debt / total m
Slide 13: Capital Expenditures Summary
13Q3 2023RETURN TO TABLE OF CONTENTS (dollars in thousands) For the Three Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Tenant improvements and leasing costs $ 1,241 $ 2,498 $ 2,040 $ 4,369 $ 2,302 Building improvements 2,720 1,283 370 2,221 1,292 Recurring capital expenditures 3,9
Slide 14: Property Acquisitions and Dispositions
14Q3 2023RETURN TO TABLE OF CONTENTS Property Acquisitions and Dispositions Dispositions: Acquisitions: ILPT has not acquired any properties since January 1, 2023. 17001 West Mercury Street Gardner, KS 645,462 Square Feet ILPT Ownership: 100% Since January 1, 2023 (dollars in thousands) ILPT has not
Slide 15: Portfolio Information
15Q3 2023RETURN TO TABLE OF CONTENTS Portfolio Information
Slide 16: Same Property Results
16Q3 2023RETURN TO TABLE OF CONTENTS (dollars and sq. ft. in thousands) As of and for the Three Months Ended As of and for the Nine Months Ended 9/30/2023 9/30/2022 9/30/2023 9/30/2022 Properties (end of period) 409 409 285 285 Square feet 59,207 59,185 33,462 33,440 Percent leased 98.9% 99.2% 98.8%
Slide 17: Occupancy and Leasing Summary
17Q3 2023RETURN 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 Nine Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 9/30/2023 Properties 413 413 413 413 413 413 Total sq. ft. 59,983 59,983 59,983
Slide 18: Tenant Credit Characteristics and Concentration
18Q3 2023RETURN TO TABLE OF CONTENTS As of September 30, 2023 % of Total Annualized Rental Tenant Credit Characteristics Revenues Investment grade rated 17.6% Subsidiaries of investment grade rated parent entities 38.3% Other leased Hawaii lands 21.3% Subtotal investment grade rated, subsidiaries of
Slide 19: Portfolio Lease Expiration and Resets
19Q3 2023RETURN 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 20: Key Financial Data by Investment Portfolio
20Q3 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 September 30, 2023 ILPT Wholly Owned Properties Mountain Industrial ILPT Hawaii Mainland Total REIT LLC (1) Other (2) Conso
Slide 21: Joint Ventures
21Q3 2023RETURN TO TABLE OF CONTENTS Joint Ventures
Slide 22: Consolidated Joint Venture - Mountain Industrial REIT LLC
22Q3 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% Consolidated 94
Slide 23: Consolidated Joint Venture - Financial Information
23Q3 2023RETURN TO TABLE OF CONTENTS Consolidated Joint Venture - Financial Information Operating Information of the Consolidated Joint Venture (100%) (1) Pro-Rata Operating Information of the Consolidated Joint Venture (ILPT Share) (2) Three Months Ended September 30, Nine Months Ended September 30
Slide 24: Consolidated Joint Venture - Financial Information (Continued)
24Q3 2023RETURN TO TABLE OF CONTENTS Consolidated Joint Venture - Financial Information (Continued) Operating Information of the Consolidated Joint Venture (100%) (1) Pro-Rata Operating Information of the Consolidated Joint Venture (ILPT Share) (2) Three Months Ended September 30, Nine Months Ended
Slide 25: Consolidated Joint Venture - Portfolio Information
25Q3 2023RETURN TO TABLE OF CONTENTS GA: 12.0% OH: 11.0% TX: 10.2% IN: 8.4% NC: 5.9% FL: 5.0%MI: 4.6% NJ: 3.9% IL: 3.9% KS: 3.6% MS: 3.5% 16 Other States: 28.0% Consolidated Joint Venture - Portfolio Information (dollars in thousands) Number of Leases Expiring — 3 8 11 13 7 40 % of Total Annualized
Slide 26: Unconsolidated Joint Venture - The Industrial Fund REIT LLC
26Q3 2023RETURN TO TABLE OF CONTENTS Unconsolidated Joint Venture - The Industrial Fund REIT LLC (1) As of September 30, 2023 ILPT Number of Square Investment in Joint Venture Ownership Properties States Feet Joint Venture The Industrial Fund REIT LLC 22% 18 12 11,726 $ 124,411 Three Months Ended Se
Slide 27: Appendix
27Q3 2023RETURN TO TABLE OF CONTENTS Appendix
Slide 28: Company Profile and Research Coverage
28Q3 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 112 market indices and comprises more than
Slide 29: Governance Information
29Q3 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 the Board & M
Slide 30: Non-GAAP Financial Measures and Certain Definitions
30Q3 2023RETURN TO TABLE OF CONTENTS Unless otherwise noted, all data presented in this presentation excludes 18 properties, which are encumbered by $530.7 million of mortgage notes, owned by an unconsolidated joint venture in which ILPT owns a 22% equity interest. See page 26 for information regard
Slide 31: Non-GAAP Financial Measures and Certain Definitions (Continued)
31Q3 2023RETURN 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 37. ILPT defines CAD as Normalized FFO minus ILPT's proportionate share of Normalized FFO of
Slide 32: Certain Definitions
32Q3 2023RETURN TO TABLE OF CONTENTS ILPT Ownership - References to ILPT's percentage ownership of properties owned by its joint ventures reflect ILPT's ownership percentage of the joint venture. ILPT Wholly Owned Properties - ILPT Wholly Owned Properties is comprised of 318 properties that are whol
Slide 33: Calculation and Reconciliation of NOI and Cash Basis NOI
33Q3 2023RETURN TO TABLE OF CONTENTS 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 $ 110,
Slide 34: Reconciliation of NOI to Same Property NOI
34Q3 2023RETURN 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 September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Reconciliation of NOI to Same Property NOI: Rent
Slide 35: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
35Q3 2023RETURN TO TABLE OF CONTENTS Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (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 Net loss $ (36,191) $ (36,580) $ (35,546) $ (41,759) $ (83,974
Slide 36: Calculation of FFO, Normalized FFO and CAD
36Q3 2023RETURN TO TABLE OF CONTENTS Calculation of FFO, Normalized FFO and CAD (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 9/30/2023 9/30/2022 Net loss attributable to common shareho
Slide 37: Calculation of CAD (continued)
37Q3 2023RETURN TO TABLE OF CONTENTS (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 9/30/2023 9/30/2022 Normalized FFO attributable to common shareholders $ 7,945 $ 7,594 $ 7,916 $ 5,440
Slide 38: Warning Concerning Forward-Looking Statements
38Q3 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. These statements
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