Industrial Logistics Properties Trust · NASDAQ:ILPT
Industrial Logistics Properties Trust — Q3 2024 Earnings Presentation
36 slides from Industrial Logistics Properties Trust's earnings presentation, Oct 29, 2024
Slide 1: Third Quarter 2024 Financial Results and Supplemental Information
1 Industrial Logistics Properties Trust Third Quarter 2024 Financial Results and Supplemental Information October 29, 2024 Exhibit 99.2 309 Dulty's Lane Burlington, NJ 633,836 Square Feet ILPT Ownership 100%
Slide 2: Table of Contents
2Q3 2024RETURN TO TABLE OF CONTENTS QUARTERLY RESULTS Industrial Logistics Properties Trust Announces Third Quarter 2024 Financial Results ........................................................................ 4 Third Quarter 2024 Highlights ........................................................
Slide 3: Quarterly Results
3Q3 2024RETURN TO TABLE OF CONTENTS Quarterly Results
Slide 4: Third Quarter 2024 Results Commentary
4Q3 2024RETURN TO TABLE OF CONTENTS “In the third quarter, ILPT generated year-over- year growth in many of its key metrics including FFO, Cash Basis NOI and EBITDAre. From a leasing perspective, ILPT experienced strong demand with over 2.7 million square feet of executed leases at rates 7.0% higher
Slide 5: Third Quarter 2024 Highlights
5Q3 2024RETURN TO TABLE OF CONTENTS Portfolio Update • Executed approximately 2,740,000 square feet of renewals at weighted average rental rates that were 7.0% higher than prior rental rates for the same space and with a weighted average lease term (by annualized rental revenues) of 5.5 years. • Lea
Slide 6: Financials
6Q3 2024RETURN TO TABLE OF CONTENTS Financials
Slide 7: Key Financial Data
7Q3 2024RETURN TO TABLE OF CONTENTS As of and for the Three Months Ended As of 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 9/30/2024 Selected Income Statement Data: Capitalization: Rental income $ 108,945 $ 110,621 $ 112,235 $ 108,895 $ 110,142 Total common shares 66,144,422 Net loss $ (35,40
Slide 8: Condensed Consolidated Statements of Income (Loss)
8Q3 2024RETURN TO TABLE OF CONTENTS Condensed Consolidated Statements of Income (Loss) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Rental income $ 108,945 $ 110,142 $ 331,801 $ 328,443 Expenses: Real estate taxes 15,339 14,926 46,349 46,493 Other operating ex
Slide 9: Condensed Consolidated Balance Sheets
9Q3 2024RETURN TO TABLE OF CONTENTS Condensed Consolidated Balance Sheets September 30, December 31, 2024 2023 ASSETS Real estate properties $ 5,176,299 $ 5,169,552 Accumulated depreciation (492,135) (397,454) Total real estate properties, net 4,684,164 4,772,098 Investment in unconsolidated joint v
Slide 10: Debt Summary
10Q3 2024RETURN TO TABLE OF CONTENTS (1) Interest rates reflect the impact of interest rate caps, as applicable. (2) This loan requires that interest be paid at an annual rate of SOFR plus a weighted average premium of 3.93%. In October 2024, ILPT exercised the first of its three, one year extension
Slide 11: Debt Maturity Schedule
11Q3 2024RETURN TO TABLE OF CONTENTS (1) This secured floating rate loan matures in March 2025, subject to two remaining one year extension options. (2) In October 2024, ILPT exercised the first of its three, one year extension options for the maturity date of this secured floating rate loan. Debt M
Slide 12: Leverage and Coverage Ratios
12Q3 2024RETURN TO TABLE OF CONTENTS As of and for the Three Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Leverage Ratios: Net debt / total gross assets 68.1% 68.2% 68.6% 68.4% 68.5% Net debt / gross book value of real estate assets 71.0% 71.2% 71.7% 71.3% 71.7% Net debt / total m
Slide 13: Capital Expenditures Summary
13Q3 2024RETURN TO TABLE OF CONTENTS (dollars in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 09/30/2024 09/30/2023 Tenant improvements $ 433 $ 142 $ 444 $ 1,423 $ 194 $ 1,019 $ 1,893 Leasing costs 2,695 184 2,127 1,196 1,047 5,00
Slide 14: Portfolio Information
14Q3 2024RETURN TO TABLE OF CONTENTS Portfolio Information
Slide 15: Same Property Results
15Q3 2024RETURN 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 9/30/2024 9/30/2023 9/30/2024 9/30/2023 Properties 411 411 411 411 Rentable square feet 59,890 59,951 59,890 59,951 Percent leased 94.4% 98.9% 94.4% 98.9%
Slide 16: Occupancy and Leasing Summary
16Q3 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 Nine Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 9/30/2024 Properties 411 411 411 411 413 411 Rentable square feet 59,890 59,893
Slide 17: Tenant Credit Characteristics and Concentration
17Q3 2024RETURN TO TABLE OF CONTENTS As of September 30, 2024 % of Total Annualized Tenant Credit Characteristics Rental Revenues Investment grade rated 18.6% Subsidiaries of investment grade rated parent entities 37.5% Other leased Hawaii lands 21.1% Subtotal investment grade rated, subsidiaries of
Slide 18: Portfolio Lease Expiration and Reset Schedules
18Q3 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
19Q3 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 September 30, 2024 ILPT Wholly Owned Properties Mountain Industrial ILPT Mainland Hawaii Total REIT LLC (1) Other (2) Conso
Slide 20: Joint Ventures
20Q3 2024RETURN TO TABLE OF CONTENTS Joint Ventures
Slide 21: Consolidated Joint Venture - Mountain Industrial REIT LLC
21Q3 2024RETURN TO TABLE OF CONTENTS GA: 12.5% TX: 10.2% OH: 9.9% IN: 8.5% NC: 5.9% FL: 5.2%MI: 4.6% 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 — 5 11 13 7 45 % of Total Annuali
Slide 22: Mountain Industrial REIT LLC Balance Sheets
22Q3 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 20,978 (1) Amounts shown on this page reflect 100% ownership interest of this joint venture, n
Slide 23: Operating Information of the Consolidated Joint Venture
23Q3 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 September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended Se
Slide 24: Operating Information of the Consolidated Joint Venture (continued)
24Q3 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 September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended Se
Slide 25: Unconsolidated Joint Venture - The Industrial Fund REIT LLC
25Q3 2024RETURN TO TABLE OF CONTENTS Unconsolidated Joint Venture - The Industrial Fund REIT LLC (1) As of September 30, 2024 ILPT ILPT Number of Square Investment in Joint Venture Ownership Properties States Feet Joint Venture The Industrial Fund REIT LLC 22% 18 12 11,726 $ 117,622 Three Months End
Slide 26: Appendix
26Q3 2024RETURN TO TABLE OF CONTENTS Appendix
Slide 27: Calculation and Reconciliation of NOI and Cash Basis NOI
27Q3 2024RETURN 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 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 9/30/2024 9/30/2023 Calculation of NOI and Cash Basis NOI: Rental income $ 108,
Slide 28: Reconciliation of NOI to Same Property NOI
28Q3 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 September 30, For the Nine Months Ended September 30, 2024 2023 2024 2023 Reconciliation of NOI to Same Property NOI: Rent
Slide 29: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
29Q3 2024RETURN TO TABLE OF CONTENTS Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 9/30/2024 9/30/2023 Net loss $ (35,407) $ (33,479) $ (33,902) $ (41,402) $ (36,191
Slide 30: Calculation of FFO, Normalized FFO and CAD
30Q3 2024RETURN TO TABLE OF CONTENTS Calculation of FFO, Normalized FFO and CAD (dollars in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 9/30/2024 9/30/2023 Net loss attributable to common shareholders $ (24,990) $ (23,175) $ (23,
Slide 31: Calculation of CAD
31Q3 2024RETURN TO TABLE OF CONTENTS (amounts in thousands, except per share data) For the Three Months Ended For the Nine Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 9/30/2024 9/30/2023 Normalized FFO attributable to common shareholders $ 8,063 $ 8,965 $ 9,450 $ 8,086 $ 7,945 $
Slide 32: Company Profile, Research Coverage and Governance Information
32Q3 2024RETURN TO TABLE OF CONTENTS Company Profile, Research Coverage and Governance Information The Company: ILPT is included in 137 market indices and comprises more than 1% of the following indices as of September 30, 2024: Invesco S&P SmallCap High Dividend Low Volatility ETF INAV Index (XSHDI
Slide 33: Non-GAAP Financial Measures and Certain Definitions
33Q3 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)
34Q3 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
35Q3 2024RETURN TO TABLE OF CONTENTS ILPT Wholly Owned Properties - ILPT Wholly Owned Properties refers to 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 indus
Slide 36: Warning Concerning Forward-Looking Statements
36Q3 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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