Industrial Logistics Properties Trust · NASDAQ:ILPT
Industrial Logistics Properties Trust — Nareit REITweek 2019 Annual Conference
32 slides from Industrial Logistics Properties Trust's conference presentation, November 2019
Slide 1: Nareit REITworld 2019 Annual Conference
NAREIT REITWORLD 2019 ANNUAL CONFERENCE NOVEMBER 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. Also, whenever we use words suc
Slide 3: Warning Regarding Forward Looking Statements (Cont.)
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 (CONT.) Our Annual Report on Form 10-K for the year ended December 31, 2018, including under the heading “Risk Factors,” our Quarterly Report on Form 10-Q for the quarter ended September
Slide 4: 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.4ft. 1,016,000
Slide 5: ILPT is a national REIT focused on the strong industrial market
I N T R O D U C T I O N INDUSTRIAL LOGISTICS PROPERTIES TRUST IS A NATIONAL REIT FOCUSED ON THE STRONG INDUSTRIAL MARKET • ILPT was formed in 2018 to own and lease industrial and logistics properties throughout the U.S. ➢ Currently owns 300 industrial and logistics properties with approximately 42.7
Slide 6: ILPT's Compelling 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 ILPT’S COMPELLING INVESTMENT HIGHLIGHTS High quality properties leased to diversified tenants. • Average age of mainland properties is less than 10 years (weighted by sq. ft.) and average clear height (weighted by sq. ft.) of wareho
Slide 7: 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.7 ft.
Slide 8: Geographic Diversity with a Unique Hawaiian Footprint
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 GEOGRAPHIC DIVERSITY WITH A UNIQUE HAWAIIAN FOOTPRINT • Our portfolio consists of 300 properties Location and Number of Properties with 42.7 million square feet located in 30 states. Annualized Rental Revenues 20 Other States NJ 15.
Slide 9: Hawaii Lands Provide Stable and Growing 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 HAWAII LANDS PROVIDE STABLE AND GROWING RENTS • 90.2% of our annualized rental revenues from our Hawaii properties comes from lands leased to tenants. • Since The RMR Group LLC (RMR) began managing our Hawaii properties in December
Slide 10: Hawaii Rent Increases Have Been Historically Strong
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 HAVE BEEN HISTORICALLY STRONG • 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
Slide 11: Location and Scarcity of Land Drives Value of Hawaiian Portfolio
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 LOCATION AND SCARCITY OF LAND DRIVES THE VALUE OF OUR HAWAIIAN PORTFOLIO • All of our Hawaii properties are located on the island of Oahu, and more than 80% of our Hawaii properties’ annualized rental revenues come from properties l
Slide 12: Many Hawaii Tenants Have Built Improvements on Our Land
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 MANY HAWAII TENANTS HAVE BUILT IMPROVEMENTS ON OUR LAND TO RUN THEIR BUSINESSES 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 bu
Slide 13: Mainland Properties Provide an Avenue for Growth
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 PROVIDE AN AVENUE FOR GROWTH • We own 74 industrial and logistics properties with approximately 26.0 million sq. ft. located in 29 states. ➢ 100% leased to 51 different tenants for a weighted average remaining le
Slide 14: Mainland Properties Have Geographic and Tenant Diversity
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 HAVE GEOGRAPHIC AND TENANT DIVERSITY ILPT owns 6 510 John Dodd Road, Spartanburg, SC 1095 South 4800 West, Salt Lake City, UT ILPT owns 17 build to suit 1,016,000 sq. ft. 150,000 sq. ft. logistics facilities logi
Slide 15: 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 • There is growing demand for industrial and logistics properties that will allow owners like us to maintain high occupancy rates and increase rents. (sq. ft. in 000’
Slide 16: 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 • The U.S. retail industry is experiencing a major shift away from malls and shopping centers to e-commerce sales platforms. ➢ E-commerce sales may require up to 3x the amount of indust
Slide 17: External Growth Strategy Takes Advantage of E-Commerce 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 EXTERNAL GROWTH STRATEGY TAKES ADVANTAGE OF THE INCREASED DEMAND FROM E-COMMERCE • We intend to grow our business by investing primarily in industrial and logistics properties that serve the growing needs of e-commerce. • We have ac
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: Hawaii and Mainland Lease Terms Are Consistent and Secure
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 AND MAINLAND LEASE TERMS ARE CONSISTENT AND SECURE • 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 ou
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 • 90.2% 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 270 different tenants. ➢ Amazon is our largest tenant. ➢ No other tenant contributes more than 4.0% of annualized rental revenues. Top 15 Tenants Rented % of
Slide 22: Stable Cash Flows from Long Term Leases with Strong Credit 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 99.5% leased for a weighted average remaining lease term of approximately 9.6 years. • 73.7% of our annualized rental revenues comes fro
Slide 23: Hawaii Financing Underscores the Value of Our 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 HAWAII FINANCING UNDERSCORES THE VALUE OF OUR HIGH QUALITY PROPERTIES • In January 2019 we obtained a $650 million mortgage financing on a select portfolio of our Hawaii properties. • The portfolio included 186 properties near Honol
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 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 Selected Balance Sheet Data: Total gross assets (1) $ 2,588,109 $ 2
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 9/30/2019 Revolving Credit Facility $ 650,000 Mortgage Notes 755,730 Total Debt $ 1,405,730 Less: Cash (23,336) Net Deb
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: Experienced Management Team with National Real Estate Platform
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 EXPERIENCED MANAGEMENT TEAM WITH NATIONAL REAL ESTATE PLATFORM ILPT obtains high quality and cost-effective management services from RMR for its national real estate operating platform. • RMR is an alternative asset management compa
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 NOI AND CASH BASIS NOI(1) (1) (dollars in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 9/30/2019 9/30/2018 Calculation of NOI an
Slide 29: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
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, EBITDAre AND ADJUSTED EBITDAre(1) (1) (dollars in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 9/30/2019 9/30/2018 Net income $ 10,922 $ 13
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 FFO AND NORMALIZED FFO(1) (1) (dollars and shares in thousands, except per share data) For the Three Months Ended For the Nine Months Ended 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 9/30/2019 9/30/2018 Net in
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 Non-GAAP Financial Measures: We present certain “non-GAAP financial measures” within the meaning of applicable SEC rules, including FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre, NOI and Cash Basis NOI. These
Slide 32: Two Newton Place, Newton, Massachusetts
Two Newton Place 255 Washington Street, Suite 300 Newton, Massachusetts 02458 I L P T R E I T. C O M
Industrial Logistics Properties Trust — Nareit REITweek 2019 Annual Conference on 6ix