Industrial Logistics Properties Trust · NASDAQ:ILPT
Industrial Logistics Properties Trust — Q4 2022 Earnings Presentation
28 slides from Industrial Logistics Properties Trust's earnings presentation, May 7, 2023
Slide 1: Investor Presentation Q4 2022
INDUSTRIAL LOGISTICS PROPERTIES TRUST INVESTOR PRESENTATION Q4 2022 5 Logistics Drive Carlisle, PA 205,090 Square Feet ILPT Ownership: 100%
Slide 2: Warning Regarding Forward Looking Statements
INDUSTRIAL LOGISTICS PROPERTIES TRUST 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. Also, whenever ILPT uses words such as “believe”, “expect”, “
Slide 3: ILPT at a Glance
INDUSTRIAL LOGISTICS PROPERTIES TRUST ILPT AT A GLANCE U.S. REIT with Located in 413 60 Million 99% 39 Industrial & Logistics Rentable Square Feet Occupancy States Properties 78% 9 Annualized Rental 30% 29% Revenues from Annualized Rental Years of Weighted Average Investment Grade Annualized Rental
Slide 4: Geographic Diversity with a Unique Hawaiian Footprint
INDUSTRIAL LOGISTICS PROPERTIES TRUST GEOGRAPHIC DIVERSITY WITH A UNIQUE HAWAIIAN FOOTPRINT Mainland Properties Hawaii Properties • 187 industrial and logistics properties located in 38 • 226 well-located properties near Oahu’s prime CBD. states. • 16.7 million square feet that is 98.2% leased with
Slide 5: Select Portfolio Properties
INDUSTRIAL LOGISTICS PROPERTIES TRUST SELECT PORTFOLIO PROPERTIES Sand Island Industrial Land, Honolulu, HI 7303 Rickenbacker Parkway, West 48 Buildings and Leaseable Land Parcels Columbus, OH Approximate Square Feet: 2,448,000 357,504 Square Feet ILPT Ownership: 100% ILPT Ownership: 100% Burlington
Slide 6: Real Estate Fundamentals Remain Strong
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 drive
Slide 7: Growth in E-Commerce Driving Incremental Industrial Demand
INDUSTRIAL LOGISTICS PROPERTIES TRUST GROWTH IN E-COMMERCE DRIVING INCREMENTAL INDUSTRIAL DEMAND E-commerce will continue to drive demand for industrial and logistics properties, support rent growth and sustain a favorable investment environment. U.S. E-Commerce Sales(1) U.S. Retail Sales Compositio
Slide 8: Select Portfolio Properties
INDUSTRIAL LOGISTICS PROPERTIES TRUST SELECT PORTFOLIO PROPERTIES 4000 Principio Parkway 3800 Midlink Drive North East, MD Kalamazoo, MI 1,194,744 Square Feet 7307 Rickenbacker 158,497Parkway, West Square Feet ILPT Ownership: 100% Columbus, ILPT Ownership: 100%OH 357,504 Square Feet 510 John Dodd Ro
Slide 9: High Quality Industrial Properties
INDUSTRIAL LOGISTICS PROPERTIES TRUST HIGH QUALITY INDUSTRIAL PROPERTIES Highly functional industrial properties leased to tenants in thriving industries and well located Hawaii land. Approximately 90% of Mainland rental revenues are generated by logistics facilities. Tenant Industry Type % of Prope
Slide 10: Strong Credit Quality and Diversified Tenant Base
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 Total Annualized % of Annualized Rental Rev
Slide 11: Recent Business Highlights
INDUSTRIAL LOGISTICS PROPERTIES TRUST RECENT BUSINESS HIGHLIGHTS Full Year 2022 Same Property NOI +2.6% Same Property Cash Basis NOI +1.0% Leasing Activity 7,811,000 SF Rental Rates +47.3% Leasing Activity 14.6 years WALT (SQ FT) 11 11
Slide 12: Investment Portfolio Q4 2022 Results
INDUSTRIAL LOGISTICS PROPERTIES TRUST INVESTMENT PORTFOLIO Q4 2022 RESULTS Consolidated ILPT 61% 100% Ownership Ownership Hawaii Properties Mainland Properties Mountain Industrial JV(1) 226 98.2% 92 99.6% 94 99.1% Properties Occupancy Properties Occupancy Properties Occupancy 310 SF +22.3% 612 SF +2
Slide 13: Proactive Asset Management and Leasing
INDUSTRIAL LOGISTICS PROPERTIES TRUST PROACTIVE ASSET MANAGEMENT AND LEASING ILPT achieved record annual leasing activity during 2022 as a result of strong industry demand for high quality industrial real estate. Leasing Activity Square Footage in Millions 11.0 47.3% 50.0% 40.0% Leasing Pipeline 9.0
Slide 14: Lease Expirations and Rent Resets by Investment Portfolio
INDUSTRIAL LOGISTICS PROPERTIES TRUST LEASE EXPIRATIONS AND RENT RESETS BY INVESTMENT PORTFOLIO Total Consolidated Portfolio Expirations and Resets Wholly Owned Mainland Property Expirations % Total ILPT Annualized Rental Revenues % Total ILPT Annualized Rental Revenues 12.7% 7.9% 6.8% 5.5% 5.1% 5.8
Slide 15: Debt Summary
INDUSTRIAL LOGISTICS PROPERTIES TRUST DEBT SUMMARY Key Facts Debt Maturity ($ in Millions) • Total consolidated debt of $4.3 billion. $2,658.3 (1) • Weighted average debt maturity term of 4.2 years, excluding extension options. $1,534.5 • No material debt maturities until 2027, including extension o
Slide 16: Joint Ventures
INDUSTRIAL LOGISTICS PROPERTIES TRUST JOINT VENTURES Raise capital at property net asset value. Grow relationships with new and existing investors. Target opportunistic acquisitions. Mountain Industrial REIT The Industrial Fund REIT LLC LLC ILPT/JV Ownership 61% / 39% 22% / 78% Number of Properties
Slide 17: Managed by The RMR Group LLC, an Alternative Asset Manager
INDUSTRIAL LOGISTICS PROPERTIES TRUST MANAGED BY THE RMR GROUP LLC, AN ALTERNATIVE ASSET MANAGER The RMR Group LLC RMR Managed Companies RMR’s Operations Include: Over More than $37 Billion $16 billion Financial Real Estate Business in AUM in Annual Revenues Services: Services: Services: Acquisition
Slide 18: Management Aligned with Shareholder Interests
INDUSTRIAL LOGISTICS PROPERTIES TRUST MANAGEMENT ALIGNED WITH SHAREHOLDER INTERESTS Key Terms of Management Agreements Alignment of Interests • Base Business Management Fee: 0.5% • If ILPT’s stock price goes up and its total market multiplied by the lower of (i) gross historical cap exceeds its hist
Slide 19: A Winning Tradition
INDUSTRIAL LOGISTICS PROPERTIES TRUST A WINNING TRADITION RMR RECOGNITION Fortune IREM Women on Commercial Boston Boston Business GlobeSt. Real Magazine’s Real Estate Boards; Property Executive Globe’s Journal Estate Forum’s Fastest Management Winning Top Commercial Top Places to Middle Market Best
Slide 20: Appendix
INDUSTRIAL LOGISTICS PROPERTIES TRUST APPENDIX 482 Chaney Avenue Greenwood, IN 671,354 Square Feet 20 ILPT Ownership: 61%
Slide 21: Selected Financial Information
INDUSTRIAL LOGISTICS PROPERTIES TRUST SELECTED FINANCIAL INFORMATION As of and For the Three Months Ended (dollars in thousands, except per share data) 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
Slide 22: Calculation and Reconciliation of NOI and Cash Basis NOI
INDUSTRIAL LOGISTICS PROPERTIES TRUST CALCULATION AND RECONCILIATION OF NOI AND CASH BASIS NOI 22
Slide 23: Reconciliation of NOI to Same Property NOI
INDUSTRIAL LOGISTICS PROPERTIES TRUST RECONCILIATION OF NOI TO SAME PROPERTY NOI AND CALCULATION OF SAME PROPERTY CASH BASIS NOI 23
Slide 24: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
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. 24
Slide 25: Calculation of FFO and Normalized FFO
INDUSTRIAL LOGISTICS PROPERTIES TRUST CALCULATION OF FFO AND NORMALIZED FFO ATTRIBUTABLE TO COMMON SHAREHOLDERS (dollars and shares in thousands, except per share data) For the Three Months Ended For the Year Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 12/31/2022 12/31/2021 Net (loss)
Slide 26: Key Financial Data by Investment Portfolio
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 standalone
Slide 27: Definitions
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 attributable
Slide 28: Investor Presentation
INDUSTRIAL LOGISTICS PROPERTIES TRUST INVESTOR PRESENTATION Q4 2022 Two Newton Place 255 Washington Street, Suite 300 Newton, Massachusetts 02458 ILPTREIT.COM 5 Logistics Drive Carlisle, PA 205,090 Square Feet
Industrial Logistics Properties Trust — Q4 2022 Earnings Presentation on 6ix