Industrial Logistics Properties Trust · NASDAQ:ILPT
Industrial Logistics Properties Trust — Investor Presentation (April 2019)
32 slides from Industrial Logistics Properties Trust's investor presentation, April 2019
Slide 1: Investor Presentation April 2019
INVESTOR PRESENTATION APRIL 2019
Slide 2: Warning Regarding Forward Looking Statements
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 THIS PRESENTATION CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. REFERENCES IN THIS PRESENTATION
Slide 3: 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.3ft. 1,016,000
Slide 4: Industrial Logistics Properties Trust
I N T R O D U C T I O N INDUSTRIAL LOGISTICS PROPERTIES TRUST • ILPT was formed in 2018 to own and lease industrial and logistics properties throughout the U.S. ➢ Currently owns 270 industrial and logistics properties with approximately 29.5 million sq. ft. ➢ Logistics properties are a subset of ind
Slide 5: 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 INVESTMENT HIGHLIGHTS High quality properties leased to diversified tenants. • Average age of mainland properties is 9.2 years (weighted by sq. ft.) and average clear height (weighted by sq. ft.) of warehouses at mainland properties
Slide 6: 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.6 ft.
Slide 7: ILPT Business
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 BUSINESS • Our portfolio consists of 270 Location and Number of Properties properties with 29.5 million square feet located in 26 states. Annualized Rental Revenues 58% 42% Hawaii Mainland Properties Properties Annualized % of
Slide 8: Stable and Growing Hawaii 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 STABLE AND GROWING HAWAII RENTS • 90.9% of our annualized rental revenues from our Hawaii properties comes from lands leased to tenants. • Since RMR began managing our Hawaii properties in December 2003, year end occupancy has not b
Slide 9: Hawaii Rent Increases
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 • Many of our Hawaii properties provide that the rents we receive are reset to fair market value periodically during the lease term. History of Hawaii Rent Increases(1) Annualized Annualized Average Rent Before
Slide 10: Estimated Value of Hawaii 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 ESTIMATED VALUE OF HAWAII PROPERTIES • All of our Hawaii properties are located on the island of Oahu, and more than 80% of our Hawaii properties’ annualized rental revenue comes from properties located between downtown Honolulu and
Slide 11: Selected Hawaii 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 SELECTED HAWAII PROPERTIES 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 has built a bottling plant and distribution facility. its o
Slide 12: Mainland 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 MAINLAND PROPERTIES • We own 44 industrial and logistics properties with approximately 12.7 million sq. ft. located in 25 states. ➢ 100% leased to 26 different tenants for a weighted average remaining lease term of 7.5 years ➢ The a
Slide 13: Selected Mainland 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 SELECTED MAINLAND PROPERTIES ILPT owns 3 510 John Dodd Road, Spartanburg, SC 1095 South 4800 West, Salt Lake City, UT ILPT owns 13 built to suit 1,016,000 sq. ft. 150,000 sq. ft. logistics facilities logistics facilities (674,000 sq
Slide 14: 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 • We believe there is growing demand for industrial and logistics properties that will allow owners like us to maintain high occupancy rates and increase rents. (sq.
Slide 15: 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 • We believe the U.S. retail industry is experiencing a major shift away from stores and shopping centers to e- commerce sales platforms. ➢ We believe e-commerce sales may require up to
Slide 16: External Growth Strategy
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 • We intend to grow our business by investing primarily in industrial and logistics properties that serve the growing needs of e-commerce. • We have announced the acquisition of over $1 billion of properties
Slide 17: External Growth Acquisitions Considerations
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 ACQUISITIONS CONSIDERATIONS • Top tier industrial/logistics market; last mile e-commerce distribution center; Location, Location, Location etc. Tenant Credit Quality • Investment grade rated or non-investment grade r
Slide 18: 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. ILPT 18
Slide 19: Summary Lease Terms
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 SUMMARY LEASE TERMS • Our Hawaii tenants generally pay fixed rent and also pay or reimburse us for substantially all property level operating and Hawaii maintenance expenses. Leases • Many of our Hawaii properties are leased for fix
Slide 20: 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 • 90.9% of our annualized rental revenues from Hawaii comes from ground leased to tenants that operate businesses on our lands. ➢ Many of our land tenants have constructed improvements on their l
Slide 21: 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 • We have a total of 248 tenants. ➢ Amazon is our largest tenant. ➢ No other tenant contributes more than 3.5% of annualized rental revenues. Top 15 Tenants Sq. Ft.(1) % of Total
Slide 22: 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 • Our properties are 99.3% leased for a weighted average remaining lease term of approximately 11.0 years. • 73.5% of our annualized rental revenues comes fr
Slide 23: Recent Financing
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 FINANCING • In January 2019 we announced a $650 million mortgage financing on a select portfolio of our Hawaii properties. • 186 properties near Honolulu containing approximately 9.6 million square feet, or about 57% of our t
Slide 24: 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 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 Selected Balance Sheet Data: Total gross assets (1) $ 1,627,902 $
Slide 25: 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 12/31/2018 Cash $ 9,608 Revolving Credit Facility $ 413,000 Mortgage Notes $ 48,750 Total Debt $ 461,750 Total Shares O
Slide 26: Appendix
A P P E N D I X 996 Paragon Way, Rock Hill, SC I L945,000 P T sq.26 ft.
Slide 27: Management 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 MANAGEMENT STRUCTURE ILPT obtains high quality and cost-effective management services from The RMR Group LLC (RMR) for its national real estate operating platform. • RMR is an alternative asset management company with $29.7 billion
Slide 28: 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 NET OPERATING INCOME (NOI) AND CASH BASIS NOI(1) (dollars in thousands) For the Three Months Ended (1) For the Year Ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 12/31/2018 12/31/2017 Ca
Slide 29: Calculation of EBITDA and Adjusted EBITDA
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 AND ADJUSTED EBITDA(1) (1) (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 12/31/2018 12/31/2017 Net income $ 18,288 $ 18,142 $ 18,726 $
Slide 30: Calculation of FFO and Normalized FFO
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 FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO(1) (1) (dollars and shares in thousands, except per share data) For the Three Months Ended For the Year Ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 12/31/20
Slide 31: 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 DEFINITIONS 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 calcul
Slide 32: Investor Presentation
INVESTOR PRESENTATION APRIL 2019
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