Industrial Logistics Properties Trust · NASDAQ:ILPT
Industrial Logistics Properties Trust — Q2 2018 Earnings Presentation
46 slides from Industrial Logistics Properties Trust's earnings presentation, Jul 27, 2018
Slide 1: Second Quarter 2018 Supplemental Operating and Financial Data
Industrial Logistics Properties Trust Exhibit 99.2 7958 South Chester Street, Centennial, CO Square Feet: 167,917 Second Quarter 2018 United Launch Alliance Corporate HeadquartersSupplemental Operating and Financial Data Former Damon Estate, Honolulu, HI 185 buildings, leasable land parcels and ease
Slide 2: Table of Contents
TABLE OF CONTENTS PAGE/ EXHIBIT CORPORATE INFORMATION Company Profile 7 Investor Information 8 Research Coverage 9 FINANCIALS Key Financial Data 11 Condensed Consolidated Balance Sheets 12 Condensed Consolidated Statements of Income 13 Condensed Consolidated Statements of Cash Flows 14 TABLE OF CONT
Slide 3: Warning Concerning Forward Looking Statements
WARNING CONCERNING FORWARD LOOKING STATEMENTS THIS PRESENTATION OF SUPPLEMENTAL OPERATING AND FINANCIAL DATA CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO, WHENEVER WE USE WORD
Slide 4: Warning Concerning Forward Looking Statements (Continued)
WARNING CONCERNING FORWARD LOOKING STATEMENTS (CONTINUED) • LIMITATIONS IMPOSED ON OUR BUSINESS AND OUR ABILITY TO SATISFY COMPLEX RULES IN ORDER FOR US TO QUALIFY FOR TAXATION AS A REIT FOR U.S. FEDERAL INCOME TAX PURPOSES, • ACTUAL AND POTENTIAL CONFLICTS OF INTEREST WITH OUR RELATED PARTIES, INCL
Slide 5: Warning Concerning Forward Looking Statements (Continued)
WARNING CONCERNING FORWARD LOOKING STATEMENTS (CONTINUED) • CONTINUED AVAILABILITY OF BORROWINGS UNDER OUR REVOLVING CREDIT FACILITY IS SUBJECT TO OUR SATISFYING CERTAIN FINANCIAL COVENANTS AND OTHER CREDIT FACILITY CONDITIONS THAT WE MAY BE UNABLE TO SATISFY, • ACTUAL COSTS UNDER OUR REVOLVING CRED
Slide 6: Corporate Information
CORPORATE INFORMATION 10450 Doral Boulevard, Doral, FL Square Feet: 240,283 Tenant: Hellmann Worldwide Logistics, Inc. , 6 6
Slide 7: Company Profile
COMPANY PROFILE The Company: ILPT is a real estate investment trust, or REIT, that owns and leases industrial and logistics properties throughout the United States. As of June 30, 2018, we owned 267 properties with approximately 28.8 million rentable square feet located Corporate Headquarters: in 25
Slide 8: Investor Information
INVESTOR INFORMATION Board of Trustees Bruce M. Gans Lisa Harris Jones Joseph L. Morea Independent Trustee Independent Trustee Independent Trustee John C. Popeo Adam D. Portnoy Managing Trustee Managing Trustee INVESTOR INFORMATION INVESTOR Senior Management John C. Popeo Richard W. Siedel, Jr. Pres
Slide 9: Research Coverage
RESEARCH COVERAGE Equity Research Coverage B.Riley FBR RBC Capital Markets Bryan Maher Michael Carroll (646) 885-5423 (440) 715-2649 RESEARCH COVERAGE bmaher@brileyfbr.com michael.carroll@rbccm.com Bank of America / Merrill Lynch UBS Equities James Feldman Frank Lee (646) 855-5808 (415) 352-5679 jam
Slide 10: Financials
FINANCIALS 2020 Joe B. Jackson Parkway, Murfreesboro, TN Square Feet: 1,016,281 Tenant: Amazon.com.dedc, LLC 10 10
Slide 11: Key Financial Data
KEY FINANCIAL DATA (dollars in thousands, except per share data) As of and For the Three Months Ended 6/30/2018 3/31/2018 12/31/2017 9/30/2017 6/30/2017 Selected Balance Sheet Data: Total gross assets (1) $ 1,544,931 $ 1,512,327 $ 1,486,297 $ 1,487,409 $ 1,477,278 Total assets $ 1,461,350 $ 1,433,23
Slide 12: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in thousands, except per share data) June 30, December 31, 2018 2017 ASSETS Real estate properties: Land $ 657,931 $ 642,706 Buildings and improvements 729,823 700,896 1,387,754 1,343,602 Accumulated depreciation (83,581) (74,614) 1,304,173 1,268,988 Ac
Slide 13: Condensed Consolidated Statements of Income
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (amounts in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenues: Rental income $ 33,880 $ 33,427 $ 68,689 $ 67,297 Tenant reimbursements and other income 5,540 5,178 11,336 10,748 Total reven
Slide 14: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (dollars in thousands) Six Months Ended June 30, 2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 37,958 $ 41,931 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 8,967 8,877 Net amortization of
Slide 15: Condensed Consolidated Statements of Cash Flows (Continued)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (dollars in thousands) Six Months Ended June 30, 2018 2017 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common shares, net 444,309 — Borrowings under revolving credit facility 55,000 — Repayments of revolving credit facil
Slide 16: Debt Summary
DEBT SUMMARY (dollars in thousands) Coupon Interest Principal Maturity Due at Years to Rate (1) Rate (2) Balance (3) Date Maturity Maturity DEBT SUMMARY As of June 30, 2018: Unsecured Floating Rate Debt: Revolving credit facility (LIBOR + 130 bps) (4) 3.377% 3.377% $ 335,000 12/29/2021 $ 335,000 3.5
Slide 17: Debt Maturity Schedule
DEBT MATURITY SCHEDULE (dollars in thousands) Scheduled Principal Payments as of June 30, 2018 Unsecured Secured Floating Fixed Year Rate Debt Rate Debt Total (2) 2020 $ — $ 48,750 $ 48,750 2021 335,000 (1) — 335,000 Total $ 335,000 $ 48,750 $ 383,750 DEBT MATURITY SCHEDULE DEBT MATURITY Percent 87.
Slide 18: Leverage Ratios and Coverage Ratios
LEVERAGE RATIOS AND COVERAGE RATIOS (dollars in thousands) As of and For the Three Months Ended 6/30/2018 3/31/2018 (1) Leverage Ratios Post-IPO: Total debt (2) / total gross assets (3) 24.8% 23.2% Total debt (2) / gross book value of real estate assets (4) 25.7% 24.2% Total debt (2) / total market
Slide 19: Capital Expenditures Summary
CAPITAL EXPENDITURES SUMMARY (dollars in thousands) For the Three Months Ended 6/30/2018 3/31/2018 12/31/2017 9/30/2017 6/30/2017 Tenant improvements (1) $ — $ 69 $ 384 $ 2 $ 61 Leasing costs (2) 324 5 80 95 24 Building improvements (3) 211 90 228 224 264 Recurring capital expenditures 535 164 692 3
Slide 20: Property Acquisitions and Dispositions Information Since 1/1/18
PROPERTY ACQUISITIONS AND DISPOSITIONS INFORMATION SINCE 1/1/18 (dollars and sq. ft. in thousands, except per sq. ft. data) Acquisitions: Weighted Average Purchase Remaining Date Number of Purchase Price (1) / Cap Lease Term Percent Acquired Location Properties Sq. Ft. Price (1) Sq. Ft. Rate (2) in
Slide 21: Calculation of Property NOI and Cash Basis NOI
CALCULATION OF PROPERTY NET OPERATING INCOME (NOI) AND CASH BASIS NOI (1) (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2018 3/31/2018 12/31/2017 9/30/2017 6/30/2017 6/30/2018 6/30/2017 Calculation of NOI and Cash Basis NOI: Rental income $ 33,880 $ 34,809 $ 33,905
Slide 22: Reconciliation of NOI to Same Property NOI and Cash Basis NOI
RECONCILIATION OF NOI TO SAME PROPERTY NOI AND CALCULATION OF SAME PROPERTY CASH BASIS NOI (1) (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, CASH BASIS NOI 2018 2017 2018 2017 Reconciliation of NOI to Same Property NOI (2)(3): Rental income $ 33,880 $ 33,427 $ 68,689 $
Slide 23: Calculation of EBITDA and Adjusted EBITDA
CALCULATION OF EBITDA AND ADJUSTED EBITDA (1) (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2018 3/31/2018 12/31/2017 9/30/2017 6/30/2017 6/30/2018 6/30/2017 Net income $ 18,726 $ 19,232 $ 15,269 $ 22,903 $ 21,575 $ 37,958 $ 41,931 Plus: interest expense 3,552 3,802
Slide 24: Calculation of FFO and Normalized FFO
CALCULATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO (1) (dollars and shares in thousands, except per share data) For the Three Months Ended For the Six Months Ended 6/30/2018 3/31/2018 12/31/2017 9/30/2017 6/30/2017 6/30/2018 6/30/2017 Net income $ 18,726 $ 19,232 $ 15,269 $ 22,903 $ 21,57
Slide 25: Definitions of Certain Non-GAAP Financial Measures
DEFINITIONS OF CERTAIN NON-GAAP FINANCIAL MEASURES NOI and Cash Basis NOI: The calculations of NOI and Cash Basis NOI exclude certain components of net income in order to provide results that are more closely related to our property level results of operations. We calculate NOI and Cash Basis NOI as
Slide 26: Portfolio Information
PORTFOLIO INFORMATION 3800 Midlink Drive, Kalamazoo, MI Square Feet: 158,497 Tenant: General Mills Operations, LLC 26 26
Slide 27: Portfolio Summary by Property Type
PORTFOLIO SUMMARY BY PROPERTY TYPE (dollars and sq. ft. in thousands) As of and For the Three Months Ended June 30, 2018 Mainland Hawaii Key Statistic Properties Properties Total Leasable properties (1) 41 226 267 Percent of total 15.4% 84.6% 100.0% Total square feet 11,946 16,834 28,780 Percent of
Slide 28: Same Property Results of Operations by Property Type
SAME PROPERTY RESULTS OF OPERATIONS BY PROPERTY TYPE (dollars and sq. ft. in thousands) As of and For the Three Months Ended (1) As of and For the Six Months Ended (2) 6/30/2018 6/30/2017 6/30/2018 6/30/2017 Leasable Properties: Mainland Properties 40 40 40 40 Hawaii Properties 226 226 226 226 Total
Slide 29: Same Property Results of Operations by Property Type (Continued)
SAME PROPERTY RESULTS OF OPERATIONS BY PROPERTY TYPE (CONTINUED) (dollars in thousands) As of and For the Three Months Ended (1) As of and For the Six Months Ended (2) 6/30/2018 6/30/2017 6/30/2018 6/30/2017 NOI (3): Mainland Properties $ 13,831 $ 13,470 $ 27,384 $ 27,271 Hawaii Properties 18,160 18
Slide 30: Leasing Summary
LEASING SUMMARY (dollars and sq. ft. in thousands, except per sq. ft. data) As of and For the Three Months Ended 6/30/2018 3/31/2018 12/31/2017 9/30/2017 6/30/2017 Leasable buildings (1) 267 266 266 266 266 Total sq. ft. (2) 28,780 28,540 28,540 28,540 28,505 Square feet leased 28,516 28,534 28,533
Slide 31: Occupancy and Leasing Analysis by Property Type
OCCUPANCY AND LEASING ANALYSIS BY PROPERTY TYPE (sq. ft. in thousands) Total Sq. Ft. (1) Sq. Ft. Leases Executed During As of the Three Months Ended 6/30/2018 Property Type 6/30/2018 New Renewals Total Mainland Properties 11,946 — — — Hawaii Properties 16,834 55 163 218 Total 28,780 55 163 218 Sq. F
Slide 32: Tenant Credit Characteristics
TENANT CREDIT CHARACTERISTICS As of June 30, 2018 % of Annualized Rental Revenues (1) Mainland Tenant Credit Characteristics Properties Consolidated Investment grade rated 43.3% 17.8% Subsidiaries of investment grade rated parent entities 8.3% 3.4% Other leased Hawaii lands —% 54.0% Subtotal investm
Slide 33: Tenants Representing 1% or More of Total Annualized Rental Revenues
TENANTS REPRESENTING 1% OR MORE OF TOTAL ANNUALIZED RENTAL REVENUES As of June 30, 2018 (sq. ft. in thousands) % of Total Rented % of Total Annualized Rental Tenant Property Type Sq. Ft. (1) Rented Sq. Ft. (1) Revenues (2) 1. Amazon.com.dedc, LLC / Amazon.com.kydc LLC Mainland Industrial 3,048 10.7%
Slide 34: Five Year Lease Expiration Schedule by Property Type
FIVE YEAR LEASE EXPIRATION SCHEDULE BY PROPERTY TYPE As of June 30, 2018 (dollars and sq. ft. in thousands) 2023 and Total 2018 2019 2020 2021 2022 Thereafter Mainland Properties: Total sq. ft. 11,946 Leased sq. ft. (1) 11,946 — 95 455 625 243 10,528 Percent —% 0.8% 3.8% 5.2% 2.0% 88.2% Annualized r
Slide 35: Portfolio Lease Expiration Schedule
PORTFOLIO LEASE EXPIRATION SCHEDULE As of June 30, 2018 (dollars and sq. ft. in thousands) Cumulative % of Total Cumulative % Annualized % of Total % of Total Rented Rented of Total Rented Rental Annualized Annualized Number of Square Feet Square Feet Square Feet Revenues Rental Revenues Rental Reve
Slide 36: Hawaii Land Rent Reset Summary
HAWAII LAND RENT RESET SUMMARY (dollars and sq. ft. in thousands) Historical Hawaii Land Rent Resets: For the Three Months Ended 6/30/2018 3/31/2018 12/31/2017 9/30/2017 6/30/2017 Number of leases reset 1 — 4 1 1 Square feet 34 — 200 27 79 Percent change in GAAP rent (1) 18.0% —% 38.6% 45.3% 48.9% S
Slide 37: Exhibit A
EXHIBIT A 725 Darlington Avenue, Mahwah, NJ Square Feet: 167,424 Tenant: The Net-A-Porter Group LLC 37 37
Slide 38: Property Detail
PROPERTY DETAIL As of June 30, 2018 (dollars and square feet in thousands) EXHIBIT A Number of Year Buildings, Annualized Built or Land Parcels Property Rental Undepreciated Depreciated Date Most Recent Property City State and Easements Type Square Feet % Leased Revenues (1) Carrying Value (2) Carry
Slide 39: Property Detail (Continued)
PROPERTY DETAIL (CONTINUED) As of June 30, 2018 (dollars and square feet in thousands) EXHIBIT A Number of Year Buildings, Annualized Built or Land Parcels Property Rental Undepreciated Depreciated Date Most Recent Property City State and Easements Type Square Feet % Leased Revenues (1) Carrying Val
Slide 40: Property Detail (Continued)
PROPERTY DETAIL (CONTINUED) As of June 30, 2018 (dollars and square feet in thousands) EXHIBIT A Number of Year Buildings, Annualized Built or Land Parcels Property Rental Undepreciated Depreciated Date Most Recent Property City State and Easements Type Square Feet % Leased Revenues (1) Carrying Val
Slide 41: Property Detail (Continued)
PROPERTY DETAIL (CONTINUED) As of June 30, 2018 (dollars and square feet in thousands) EXHIBIT A Number of Year Buildings, Annualized Built or Land Parcels Property Rental Undepreciated Depreciated Date Most Recent Property City State and Easements Type Square Feet % Leased Revenues (1) Carrying Val
Slide 42: Property Detail (Continued)
PROPERTY DETAIL (CONTINUED) As of June 30, 2018 (dollars and square feet in thousands) EXHIBIT A Number of Year Buildings, Annualized Built or Land Parcels Property Rental Undepreciated Depreciated Date Most Recent Property City State and Easements Type Square Feet % Leased Revenues (1) Carrying Val
Slide 43: Property Detail (Continued)
PROPERTY DETAIL (CONTINUED) As of June 30, 2018 (dollars and square feet in thousands) EXHIBIT A Number of Year Buildings, Annualized Built or Land Parcels Property Rental Undepreciated Depreciated Date Most Recent Property City State and Easements Type Square Feet % Leased Revenues (1) Carrying Val
Slide 44: Property Detail (Continued)
PROPERTY DETAIL (CONTINUED) As of June 30, 2018 (dollars and square feet in thousands) EXHIBIT A Number of Year Buildings, Annualized Built or Land Parcels Property Rental Undepreciated Depreciated Date Most Recent Property City State and Easements Type Square Feet % Leased Revenues (1) Carrying Val
Slide 45: Property Detail (Continued)
PROPERTY DETAIL (CONTINUED) As of June 30, 2018 (dollars and square feet in thousands) EXHIBIT A Number of Year Buildings, Annualized Built or Land Parcels Property Rental Undepreciated Depreciated Date Most Recent Property City State and Easements Type Square Feet % Leased Revenues (1) Carrying Val
Slide 46: Property Detail (Continued)
PROPERTY DETAIL (CONTINUED) As of June 30, 2018 (dollars and square feet in thousands) EXHIBIT A Number of Year Buildings, Annualized Built or Land Parcels Property Rental Undepreciated Depreciated Date Most Recent Property City State and Easements Type Square Feet % Leased Revenues (1) Carrying Val
Industrial Logistics Properties Trust — Q2 2018 Earnings Presentation on 6ix