Industrial Logistics Properties Trust · NASDAQ:ILPT
Industrial Logistics Properties Trust — Investor Presentation (November 2020)
34 slides from Industrial Logistics Properties Trust's investor presentation, November 2020
Slide 1: Investor Presentation November 2020
INVESTOR PRESENTATION N OV E M B E R 2 0 2 0
Slide 2: Warning Regarding Forward Looking Statements, Disclaimers and Non-GAAP Financial Measures
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T WARNING REGARDING FORWARD LOOKING STATEMENTS, DISCLAIMERS AND NON-GAAP FINANCIAL MEASURES This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995and other secu
Slide 3: Warning Regarding Forward Looking Statements, Disclaimers and Non-GAAP Financial Measures
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T WARNING REGARDING FORWARD LOOKING STATEMENTS, DISCLAIMERS AND NON-GAAP FINANCIAL MEASURES (s) ILPT may not meet the applicable conditions to extend the maturity date of its revolving credit facility, (t) changes in ILPT’s leverage m
Slide 4: Introduction to ILPT
I N T R O D U C T I O N TO I L P T 510 John Dodd Road, Spartanburg, SC I L P Tsq.4ft. 1,016,000
Slide 5: ILPT is a REIT Focused on E-Commerce Industrial Properties
I N T R O D U C T I O N INDUSTRIAL LOGISTICS PROPERTIES TRUST (ILPT) IS A REIT FOCUSED ON E-COMMERCE INDUSTRIAL PROPERTIES • ILPT owns and leases over 300 industrial and logistics properties totaling approximately 43.8 million square feet throughout the United States. Logistics properties used for
Slide 6: ILPT's Compelling Investment Highlights
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T ILPT’S COMPELLING INVESTMENT HIGHLIGHTS High quality properties leased to diversified tenants. • The average age of ILPT’s mainland properties is approximately 10 years (weighted by sq. ft.). • The average clear height (weighted by
Slide 7: Recent Joint Venture Transaction
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T RECENT JOINT VENTURE TRANSACTION • In the first quarter of 2020, a $680 million Joint Venture was completed for a 12 property portfolio of ILPT’s mainland properties totaling 9.2 million square feet. Property valuations represent
Slide 8: ILPT Business and Growth Opportunities
I L P T B U S I N E S S A N D G R O W T H O P P O R T U N I T I E S 20 Logistics Blvd., Walton, KY I L604,000 P T sq.8 ft.
Slide 9: Geographic Diversity with a Unique Hawaiian Footprint
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T GEOGRAPHIC DIVERSITY WITH A UNIQUE HAWAIIAN FOOTPRINT • ILPT’s portfolio consists of 301 properties with 43.8 million square feet located in 31 states. Hawaii portfolio consists of 226 properties on Oahu which comprise 38.3% of to
Slide 10: Hawaii Lands Provide Stable and Growing Rents
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T HAWAII LANDS PROVIDE STABLE AND GROWING RENTS • 90.6% of annualized rental revenues from ILPT’s Hawaii properties comes from land leases. • Since December 2003, year end occupancy has not decreased below 98% and rental income has re
Slide 11: Hawaii Rent Increases Have Been Historically Strong
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T HAWAII RENT INCREASES HAVE BEEN HISTORICALLY STRONG • Many of ILPT’s Hawaii properties provide that the rents received are reset to fair market value periodically during the lease term. History of Hawaii Rent Increases(1) Annualized
Slide 12: Location and Scarcity of Land Drives Value of Hawaiian Portfolio
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T LOCATION AND SCARCITY OF LAND DRIVES THE VALUE OF ILPT’S HAWAIIAN PORTFOLIO • All of ILPT’s Hawaii properties are located on the island of Oahu, and more than 80% of ILPT’s Hawaii properties’ annualized rental revenues come from pro
Slide 13: Many Tenants in Hawaii Have Built Improvements on ILPT's Land
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T MANY TENANTS IN HAWAII HAVE BUILT IMPROVEMENTS ON ILPT’S LAND TO RUN THEIR BUSINESSES Coca-Cola Bottling of Hawaii leases 351,000 sq. ft. of ILPT’s land Grainger leases 60,000 sq. ft. of ILPT’s land on which it operates on which it
Slide 14: Mainland Properties Provide an Avenue for Growth
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T MAINLAND PROPERTIES PROVIDE AN AVENUE FOR GROWTH • ILPT owns 75 industrial and logistics properties totaling approximately 27.0 million square feet located in 30 states. 99.8% leased to 51 different tenants for a weighted average
Slide 15: Mainland Properties Have Geographic and Tenant Diversity
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T MAINLAND PROPERTIES HAVE GEOGRAPHIC AND TENANT DIVERSITY ILPT owns 7 510 John Dodd Road, Spartanburg, SC 1095 South 4800 West, Salt Lake City, UT ILPT owns 17 build to suit 1,016,000 sq. ft. 150,000 sq. ft. logistics facilities logi
Slide 16: Favorable Market Conditions Support Internal Growth Opportunities
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T FAVORABLE MARKET CONDITIONS SUPPORT INTERNAL GROWTH OPPORTUNITIES • Growing demand for industrial and logistics properties will allow owners like ILPT to maintain high occupancy rates and increase rents. (sq. ft. in 000’s) U.S. Indu
Slide 17: Growth in E-Commerce Driving Industrial Demand
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T GROWTH IN E-COMMERCE DRIVING INDUSTRIAL DEMAND • The retail industry is experiencing a major shift away from malls and shopping centers towards e-commerce platforms. E-commerce is projected to increase demand for industrial and lo
Slide 18: External Growth Strategy Takes Advantage of E-Commerce Demand
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T EXTERNAL GROWTH STRATEGY TAKES ADVANTAGE OF THE INCREASED DEMAND FROM E-COMMERCE • ILPT intends to grow its business by investing primarily in industrial and logistics properties that serve the growing needs of e-commerce. • ILPT ha
Slide 19: ILPT Leases, Tenants and Financials
I L P T L E A S E S, T E N A N T S A N D F I N A N C I A L S 5300 Centerpoint Parkway, Groveport, OH 581,000 sq. ft. I L P T 19
Slide 20: Hawaii and Mainland Lease Terms Are Consistent and Secure
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T HAWAII AND MAINLAND LEASE TERMS ARE CONSISTENT AND SECURE • ILPT’s Hawaii tenants generally pay fixed rent and are responsible for reimbursement of property level operating and maintenance Hawaii expenses. Leases • Many of ILPT’s Ha
Slide 21: Secure Hawaii Ground Lease Structure
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T SECURE HAWAII GROUND LEASE STRUCTURE • 90.6% of ILPT’s annualized rental revenues in Hawaii comes from ground leased to tenants that operate businesses on ILPT’s land. Many of ILPT’s land tenants have constructed improvements on t
Slide 22: High Quality Properties Leased to Diversified Tenants
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T HIGH QUALITY PROPERTIES LEASED TO DIVERSIFIED TENANTS • ILPT has a total of 264 tenants. Amazon is ILPT’s largest tenant at 15.9% of annualized rental revenues. No other tenant contributes more than 3.7% to ILPT’s annualized ren
Slide 23: Stable Cash Flows from Long Term Leases with Strong Credit Quality Tenants
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T STABLE CASH FLOWS FROM LONG TERM LEASES WITH STRONG CREDIT QUALITY TENANTS • ILPT’s properties are 98.8% leased for a weighted average remaining lease term of approximately 9.0 years. • 75.7% of ILPT’s annualized rental revenues com
Slide 24: Hawaii Financing Underscores the Value of High Quality Properties
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T HAWAII FINANCING UNDERSCORES THE VALUE OF ILPT’S HIGH QUALITY PROPERTIES • In January 2019, ILPT obtained a $650 million mortgage financing on a select portfolio of its Hawaii properties. • The portfolio included 186 properties near
Slide 25: Selected Financial Information
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T SELECTED FINANCIAL INFORMATION (dollars in thousands, except per share data) As of and For the Three Months Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 Selected Balance Sheet Data: Total gross assets $ 2,659,564 $ 2,659
Slide 26: Capitalization
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T CAPITALIZATION (dollars and shares in thousands, except per share data) As of and For the (1) Three Months Ended 9/30/2020 Revolving Credit Facility $ 320,000 Mortgage Notes 1,056,980 Total Debt $ 1,376,980 Less: Cash (39,105) Net D
Slide 27: Appendix
A P P E N D I X 996 Paragon Way, Rock Hill, SC I L945,000 P T sq.27 ft.
Slide 28: Experienced Management Team with National Real Estate Platform
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T EXPERIENCED MANAGEMENT TEAM WITH NATIONAL REAL ESTATE PLATFORM ILPT obtains high quality and cost-effective management services from RMR for its national real estate operating platform. • RMR is an alternative asset management compa
Slide 29: Calculation and Reconciliation of NOI and Cash Basis NOI
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T CALCULATION AND RECONCILIATION OF NOI AND CASH BASIS NOI (1) (dollars in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 9/30/2020 9/30/2019 Calculation of NOI and C
Slide 30: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T CALCULATION OF EBITDA, EBITDAre AND ADJUSTED EBITDAre (1) For the Nine Months (dollars in thousands) For the Three Months Ended Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 9/30/2020 9/30/2019 Net income $ 13,814 $ 14,55
Slide 31: Calculation of FFO and Normalized FFO Attributable to Common Shareholders
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T CALCULATION OF FFO AND NORMALIZED FFO ATTRIBUTABLE TO COMMON SHAREHOLDERS (1) For the Nine Months (dollars and shares in thousands, except per share data) For the Three Months Ended Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/3
Slide 32: Non-GAAP Financial Measures and Certain Definitions
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T NON-GAAP FINANCIAL MEASURES AND CERTAIN DEFINITIONS Non-GAAP Financial Measures: ILPT presents certain “non-GAAP financial measures” within the meaning of applicable SEC rules, including FFO attributable to common shareholders, Norm
Slide 33: Non-GAAP Financial Measures and Certain Definitions
I N D U S T R I A L L O G I S T I C S P R O P E R T I E S T R U S T NON-GAAP FINANCIAL MEASURES AND CERTAIN DEFINITIONS Annualized dividend yield - Annualized dividend yield is the annualized dividend paid during the applicable period divided by the closing price of ILPT's common shares at the end o
Slide 34: Two Newton Place, Newton, Massachusetts
Two Newton Place 255 Washington Street, Suite 300 Newton, Massachusetts 02458 I L P T R E I T. C O M
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