Industrial Logistics Properties Trust · NASDAQ:ILPT
Industrial Logistics Properties Trust — Q4 2023 Earnings Presentation
38 slides from Industrial Logistics Properties Trust's earnings presentation, Feb 20, 2024
Slide 1: Fourth Quarter 2023 Financial Results and Supplemental Information
1 Industrial Logistics Properties Trust Fourth Quarter 2023 Financial Results and Supplemental Information February 20, 2024 Exhibit 99.2 158 West Yard Road Feura Bush, NY 354,000 Square Feet ILPT Ownership 100%
Slide 2: Table of Contents
2Q4 2023RETURN TO TABLE OF CONTENTS QUARTERLY RESULTS Industrial Logistics Properties Trust Announces Fourth Quarter 2023 Financial Results .................................................. 4 Fourth Quarter 2023 Highlights ............................................................................
Slide 3: Quarterly Results
3Q4 2023RETURN TO TABLE OF CONTENTS Quarterly Results
Slide 4: ILPT Announces Fourth Quarter 2023 Financial Results
4Q4 2023RETURN TO TABLE OF CONTENTS "We finished the year with strong demand for our high quality portfolio, consistent with the trends we saw throughout the year. During the fourth quarter, we completed over one and a half million square feet of leasing, including rent resets, at weighted average r
Slide 5: Fourth Quarter 2023 Highlights
5Q4 2023RETURN TO TABLE OF CONTENTS Portfolio Update • Executed 1,534,000 square feet of total leasing, including rent resets, at weighted average rental rates that were 19.7% higher than prior rents for the same space, to achieve total year to date leasing in 2023 of 5,402,000 square feet. • Lease
Slide 6: Financials
6Q4 2023RETURN TO TABLE OF CONTENTS Financials
Slide 7: Key Financial Data
7Q4 2023RETURN TO TABLE OF CONTENTS (dollars in thousands, except per share data) As of and for the Three Months Ended As of 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 Selected Income Statement Data: Capitalization: Rental income $ 108,895 $ 110,142 $ 108,043 $ 110,258 $ 106,339
Slide 8: Consolidated Statements of Income (Loss)
8Q4 2023RETURN TO TABLE OF CONTENTS Consolidated Statements of Income (Loss) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Rental income $ 108,895 $ 106,339 $ 437,338 $ 388,151 Expenses: Real estate taxes 13,560 14,164 60,053 50,624 Other operating expenses 10,448 8,577
Slide 9: Consolidated Balance Sheets
9Q4 2023RETURN TO TABLE OF CONTENTS Consolidated Balance Sheets December 31, 2023 2022 ASSETS Real estate properties $ 5,169,552 $ 5,176,108 Accumulated depreciation (397,454) (273,467) Total real estate properties, net 4,772,098 4,902,641 Investment in unconsolidated joint venture 115,360 124,358 A
Slide 10: Debt Summary
10Q4 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 December 31, 2023, including unamortized debt issuance costs totaling $
Slide 11: Debt Maturity Schedule (at Initial Maturity)
11Q4 2023RETURN TO TABLE OF CONTENTS (1) The $1,400.0 secured floating rate loan of Mountain JV matures in March 2024, subject to three, one year extension options. As of February 20, 2024, Mountain JV intends to exercise its option to extend the maturity of this loan. (2) The $1,235.0 secured float
Slide 12: Leverage and Coverage Ratios
12Q4 2023RETURN TO TABLE OF CONTENTS As of and for the Three Months Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 Leverage Ratios: Net debt / total gross assets 68.4% 68.5% 68.8% 69.7% 69.7% Net debt / gross book value of real estate assets 71.3% 71.7% 72.2% 72.4% 72.6% Net debt / total
Slide 13: Capital Expenditures Summary
13Q4 2023RETURN TO TABLE OF CONTENTS (dollars in thousands) For the Three Months Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 Tenant improvements and leasing costs $ 2,619 $ 1,241 $ 2,498 $ 2,040 $ 4,369 Building improvements 2,406 2,720 1,283 370 2,221 Recurring capital expenditures 5,
Slide 14: Property Acquisitions and Dispositions
14Q4 2023RETURN TO TABLE OF CONTENTS Property Acquisitions and Dispositions Dispositions: Acquisitions: ILPT has not acquired any properties since January 1, 2023. Since January 1, 2023 (dollars and sq. ft. in thousands) Gross Gain (loss) on Number of Gross Gross Sales Price Sale of Date Sold Locati
Slide 15: Portfolio Information
15Q4 2023RETURN TO TABLE OF CONTENTS Portfolio Information
Slide 16: Same Property Results
16Q4 2023RETURN TO TABLE OF CONTENTS 1509 Leestown Road Frankfort, KY 599,840 Square Feet ILPT Ownership: 61% (dollars and sq. ft. in thousands) As of and for the Three Months Ended As of and for the Year Ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Properties 411 411 286 286 Square feet 59,951
Slide 17: Occupancy and Leasing Summary
17Q4 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 Year Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 Properties 411 413 413 413 413 411 Total sq. ft. 59,951 59,983 59,983 59,9
Slide 18: Tenant Credit Characteristics and Concentration
18Q4 2023RETURN TO TABLE OF CONTENTS As of December 31, 2023 % of Total Annualized Rental Tenant Credit Characteristics Revenues Investment grade rated 17.7% Subsidiaries of investment grade rated parent entities 37.9% Other leased Hawaii lands 21.3% Subtotal investment grade rated, subsidiaries of
Slide 19: Portfolio Lease Expiration and Reset Schedules
19Q4 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
20Q4 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 December 31, 2023 ILPT Wholly Owned Properties Mountain Industrial ILPT Mainland Hawaii Total REIT LLC (1) Other (2) Consol
Slide 21: Joint Ventures
21Q4 2023RETURN TO TABLE OF CONTENTS Joint Ventures
Slide 22: Consolidated Joint Venture - Mountain Industrial REIT LLC
22Q4 2023RETURN TO TABLE OF CONTENTS GA: 12.1% OH: 10.9% TX: 10.2% IN: 8.3% NC: 5.9% FL: 5.0%MI: 4.6% NJ: 3.9% IL: 3.9% KS: 3.6% MS: 3.5% 16 Other States: 28.1% Consolidated Joint Venture - Mountain Industrial REIT LLC (dollars in thousands) Number of Leases Expiring 3 8 11 13 7 40 % of Total Annual
Slide 23: Consolidated Joint Venture - Financial Information
23Q4 2023RETURN TO TABLE OF CONTENTS Consolidated Joint Venture - Financial Information (1) (dollars and sq. ft. in thousands) ILPT Number of Number of Square Joint Venture Ownership Presentation Properties States Feet Mountain Industrial REIT LLC 61% Consolidated 94 27 20,981 (1) Amounts shown in t
Slide 24: Operating Information of the Consolidated Joint Venture
24Q4 2023RETURN TO TABLE OF CONTENTS Operating Information of the Consolidated Joint Venture (100%) (1) Pro-Rata Operating Information of the Consolidated Joint Venture (ILPT Share) (2) Three Months Ended December 31, Year Ended December 31, Three Months Ended December 31, Year Ended December 31, 20
Slide 25: Consolidated Joint Venture - Financial Information (Continued)
25Q4 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 December 31, Year Ended December
Slide 26: Unconsolidated Joint Venture - The Industrial Fund REIT LLC
26Q4 2023RETURN TO TABLE OF CONTENTS Unconsolidated Joint Venture - The Industrial Fund REIT LLC (1) As of December 31, 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 $ 115,360 Three Months Ended Dec
Slide 27: Appendix
27Q4 2023RETURN TO TABLE OF CONTENTS Appendix
Slide 28: Company Profile and Research Coverage
28Q4 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 117 market indices and comprises more than
Slide 29: Governance Information
29Q4 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: Calculation and Reconciliation of NOI and Cash Basis NOI
30Q4 2023RETURN TO TABLE OF CONTENTS Calculation and Reconciliation of NOI and Cash Basis NOI (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 12/31/2022 Calculation of NOI and Cash Basis NOI: Rental income $ 108,895
Slide 31: Reconciliation of NOI to Same Property NOI
31Q4 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 December 31, For the Year Ended December 31, 2023 2022 2023 2022 Reconciliation of NOI to Same Property NOI: Rental income
Slide 32: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
32Q4 2023RETURN TO TABLE OF CONTENTS Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 12/31/2022 Net loss $ (41,402) $ (36,191) $ (36,580) $ (35,546) $ (41,759) $
Slide 33: Calculation of FFO, Normalized FFO and CAD
33Q4 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 Year Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 12/31/2022 Net loss attributable to common shareholder
Slide 34: Calculation of CAD (Continued)
34Q4 2023RETURN TO TABLE OF CONTENTS (dollars and shares in thousands, except per share data) For the Three Months Ended For the Year Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 12/31/2022 Normalized FFO attributable to common shareholders $ 8,086 $ 7,945 $ 7,594 $ 7,916 $ 5
Slide 35: Non-GAAP Financial Measures and Certain Definitions
35Q4 2023RETURN 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 26 for information regard
Slide 36: Non-GAAP Financial Measures and Certain Definitions (Continued)
36Q4 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 34. ILPT defines CAD as Normalized FFO minus ILPT's proportionate share of Normalized FFO fr
Slide 37: Certain Definitions
37Q4 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 316 properties that are whol
Slide 38: Warning Concerning Forward-Looking Statements
38Q4 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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