Industrial Logistics Properties Trust · NASDAQ:ILPT
Industrial Logistics Properties Trust — Q4 2022 Earnings Presentation
28 slides from Industrial Logistics Properties Trust's earnings presentation, Mar 2, 2023
Slide 1: Q4 2022 Investor Presentation
ST Q4 2022 5 Logistics Drive Carlisle, PA 205,090 Square Feet ILPT Ownership: 22% INVESTOR PRESENTATION
Slide 2: Forward-looking statements
2 INDUSTRIAL LOGISTICS PROPERTIES TRUST This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever ILPT uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”,
Slide 3: ILPT at a Glance
3 INDUSTRIAL LOGISTICS PROPERTIES TRUST 3 U.S. REIT with 413 Industrial & Logistics Properties ILPT AT A GLANCE Industrial Logistics Properties Trust (Nasdaq: ILPT) is a real estate investment trust, or REIT, focused on owning and leasing high quality distribution and logistics properties that serve
Slide 4: Geographic Diversity with a Unique Hawaiian Footprint
4 INDUSTRIAL LOGISTICS PROPERTIES TRUST 29 Other States, 30.9% HI, 28.9% OH, 7.0% IN, 5.6% SC, 5.1% FL, 5.1% GA, 4.7% TX, 4.1% NJ, 3.4% TN, 2.8% NC, 2.4% GEOGRAPHIC DIVERSITY WITH A UNIQUE HAWAIIAN FOOTPRINT Location and Number of Properties Geographic Mix of Annualized Rental Revenues • 187 industr
Slide 5: Select Portfolio Properties
9 SELECT PORTFOLIO PROPERTIES Burlington, NJ 7303 Rickenbacker Parkway, West Columbus, OH 357,504 Square Feet ILPT Ownership: 100% 309 Dulty’s Lane Burlington, NJ 633,836 Square Feet ILPT Ownership: 100% 4690 Global Avenue NW Concord, NC 330,717 Square Feet ILPT Ownership: 61% Sand Island Industrial
Slide 6: Industrial Real Estate Fundamentals Remain Strong
6 INDUSTRIAL LOGISTICS PROPERTIES TRUST INDUSTRIAL REAL ESTATE FUNDAMENTALS REMAIN STRONG Robust demand for industrial and logistics properties will enable owners like ILPT to maintain high occupancy rates and increase rents. • U.S. industrial REIT sector has benefited from strong secular demand dri
Slide 7: Growth in E-Commerce Driving Incremental Industrial Demand
7 INDUSTRIAL LOGISTICS PROPERTIES TRUST 0% 2% 4% 6% 8% 10% 12% 14% 16% $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 11' 12' 13' 14' 15' 16' 17' 18' 19' 20' 21' 22' In-Store Sales U.S. E-commerce Sales % Online $0 $200 $400 $600 $800 $1,000 $1,200 11' 12' 13' 14' 15' 16' 17' 18' 19' 20'
Slide 8: Select Portfolio Properties
INDUSTRIAL LOGISTICS PROPERTIES TRUST SELECT PORTFOLIO PROPERTIES 7307 Rickenbacker Parkway, West Columbus, OH 357,504 Square Feet 510 John Dodd Road Spartanburg, SC 1,015,740 Square Feet ILPT Ownership: 100% 101 North Campus Drive Imperial, PA 125,860 Square Feet ILPT Ownership: 61% 3800 Midlink Dr
Slide 9: High Quality Industrial Properties
9 INDUSTRIAL LOGISTICS PROPERTIES TRUST Warehouse & Distribution: 65% Ground Lease: 29% Light Manufacturing: 6% HIGH QUALITY INDUSTRIAL PROPERTIES Property Type % of Annualized Rental Revenues Tenant Industry Type % of Portfolio Transportation & Shipping 36.4 Construction & Building Materials 10.5 A
Slide 10: Strong Credit Quality and Diversified Tenant Base
10 INDUSTRIAL LOGISTICS PROPERTIES TRUST STRONG CREDIT QUALITY AND DIVERSIFIED TENANT BASE More than 75% of annualized rental revenues are derived from investment grade tenants/subsidiaries or from secure Hawaii land leases. Tenant Credit Characteristics % of Annualized Rental Revenues Other Unrated
Slide 11: Recent Business Highlights
11 INDUSTRIAL LOGISTICS PROPERTIES TRUST RECENT BUSINESS HIGHLIGHTS Full Year 2022 Same Property Cash Basis NOI Rental Rates Leasing Activity +1.0% +47.3% Leasing Activity WALT (SQ FT) 14.6 years Same Property NOI +2.6% 7,811,000 SF 11
Slide 12: Investment Portfolio Q4 2022 Results
12 INDUSTRIAL LOGISTICS PROPERTIES TRUST Mountain Industrial JV(1) Consolidated ILPT 61% Ownership 94 Properties 99.1% Occupancy $33.1M NOI $31.7M Cash Basis NOI $29.8M Adjusted EBITDAre $3.2B Total Gross Assets (1) Amounts represent this joint venture at 100%, not ILPT’s proportionate share thereof
Slide 13: Proactive Asset Management and Leasing
3.3 2.6 3.0 3.6 7.8 25.1% 20.1% 16.7% 16.9% 47.3% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% -1.0 1.0 3.0 5.0 7.0 9.0 11.0 2018 2019 2020 2021 2022 Total Leasing (msf) Rent Roll-Up PROACTIVE ASSET MANAGEMENT AND LEASING Leasing Activity Square Footage in Millions INDUSTRIAL LOGISTICS PROPERTIE
Slide 14: Lease Expirations and Rent Resets by Investment Portfolio
1.3% 1.4% 0.6% 1.3% 2.2% 2023 2024 2025 2026 2027 Hawaii Expirations Hawaii Resets 1.1% 1.4% 3.1% 2.0% 5.0% 2023 2024 2025 2026 2027 LEASE EXPIRATIONS AND RENT RESETS BY INVESTMENT PORTFOLIO INDUSTRIAL LOGISTICS PROPERTIES TRUST 14 Hawaii Property Expirations and Resets % Total ILPT Annualized Renta
Slide 15: Debt Summary
DEBT SUMMARY 15 Secured Floating Rate Debt $1.2B JV Secured Floating Rate Debt $1.4B Secured Fixed Rate Debt $1.7B $22.4 $2,658.3 $24.1 $25.0 $26.0 $1,534.5 2023 2024 2025 2026 2027 2028+ INDUSTRIAL LOGISTICS PROPERTIES TRUST Key Facts Debt Maturity Total Consolidated Debt Current Estimated Quarterl
Slide 16: Joint Ventures
JOINT VENTURES $11.1 Million$29.8 Million Mountain Industrial REIT LLC 22% / 78% Number of Properties Square Feet EBITDAre1 61% / 39% 1894 11,726,000 SF20,981,000 SF ILPT/JV Ownership The Industrial Fund REIT LLC Raise capital at property net asset value. Grow relationships with new and existing inv
Slide 17: Managed by The RMR Group LLC
17 INDUSTRIAL LOGISTICS PROPERTIES TRUST RMR’s Operations Include: National Multi-Sector Investment Platform OFFICE INDUSTRIAL GOVERNMENT MEDICAL OFFICE LIFE SCIENCE SENIOR LIVING HOTELS SERVICE RETAIL RMR Managed Companies Over 38,000 Employees Nearly 2,100 Properties More than $16 billion in Annua
Slide 18: Management fees
18 INDUSTRIAL LOGISTICS PROPERTIES TRUST • Base Business Management Fee: 0.5% multiplied by the lower of (i) gross historical cost or (ii) average market capitalization.(1) • Property Management Fees: 3% of gross collected rents and 5% of construction costs. • Incentive Management Fee: 12% of the ou
Slide 19: A Winning Tradition: RMR Recognition
19 INDUSTRIAL LOGISTICS PROPERTIES TRUST A WINNING TRADITION RMR RECOGNITION EPA’S ENERGY STAR Partner of the Year 2019 - 2022. 70 properties with EPA ENERGY STAR certifications 60 properties with BOMA designations. Ranked #2 for portfolio with most designations 56 properties with LEED designations
Slide 20: Appendix
20 INDUSTRIAL LOGISTICS PROPERTIES TRUST APPENDIX 482 Chaney Avenue Greenwood, IN 671,354 Square Feet ILPT Ownership: 61%
Slide 21: Selected Financial Information
21 INDUSTRIAL LOGISTICS PROPERTIES TRUST SELECTED FINANCIAL INFORMATION As of and For the Three Months Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Selected Balance Sheet Data: Total gross assets $ 5,949,633 $ 5,962,116 $ 6,166,704 $ 6,286,275 $ 2,076,048 Total assets $ 5,676,166 $ 5,71
Slide 22: Calculation and Reconciliation of NOI and Cash Basis NOI
22 INDUSTRIAL LOGISTICS PROPERTIES TRUST CALCULATION AND RECONCILIATION OF NOI AND CASH BASIS NOI
Slide 23: Reconciliation of NOI to Same Property NOI
23 INDUSTRIAL LOGISTICS PROPERTIES TRUST RECONCILIATION OF NOI TO SAME PROPERTY NOI AND CALCULATION OF SAME PROPERTY CASH BASIS NOI
Slide 24: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
24 INDUSTRIAL LOGISTICS PROPERTIES TRUST CALCULATION OF EBITDA, EBITDAre AND ADJUSTED EBITDAre 1. Amounts represent equity based compensation to our trustees, our officers and certain other employees of RMR.
Slide 25: Calculation of FFO and Normalized FFO
25 INDUSTRIAL LOGISTICS PROPERTIES TRUST CALCULATION OF FFO AND NORMALIZED FFO ATTRIBUTABLE TO COMMON SHAREHOLDERS 1. Amounts for the year ended December 31, 2022, and three months ended March 31, 2022, June 30, 2022 and September 30, 2022, primarily represent debt issuance costs related to the $1,3
Slide 26: Key Financial Data by Investment Portfolio
26 INDUSTRIAL LOGISTICS PROPERTIES TRUST KEY FINANCIAL DATA BY INVESTMENT PORTFOLIO 1. Amounts represent this joint venture at 100%, not our proportionate share thereof. Amounts presented are derived from GAAP information and may not be comparable to amounts reflected in this joint venture's standal
Slide 27: Definitions
27 INDUSTRIAL LOGISTICS PROPERTIES TRUST DEFINITIONS Non-GAAP Financial Measures: We present certain “non-GAAP financial measures” within the meaning of the applicable rules of the Securities and Exchange Commission, or SEC, including FFO attributable to common shareholders, Normalized FFO attributa
Slide 28: Q4 2022 contact information
INDUSTRIAL LOGISTICS PROPERTIES TRUST Q4 2022 INVESTOR PRESENTATION Two Newton Place 255 Washington Street, Suite 300 Newton, Massachusetts 02458 ILPTREIT.COM 5 Logistics Drive Carlisle, PA 205,090 Square Feet ILPT Ownership: 22%
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