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
Industrial Logistics Properties Trust Fourth Quarter 2023 Financial Results and Supplemental Information February 20, 2024 158 West Yard Road Feura Bush, NY 354,000 Square Feet ILPT Ownership 100% 1
Slide 2: Table of Contents
Table of Contents QUARTERLY RESULTS Industrial Logistics Properties Trust Announces Fourth Quarter 2023 Financial Results .................................................. 4 Fourth Quarter 2023 Highlights...............................................................................................
Slide 3: Quarterly Results
Quarterly Results RETURN TO TABLE OF CONTENTS Q4 2023 3
Slide 4: ILPT Announces Fourth Quarter 2023 Financial Results
INDUSTRIAL LOGISTICS PROPERTIES TRUST ANNOUNCES FOURTH QUARTER 2023 FINANCIAL RESULTS Newton, MA (February 20, 2024): Industrial Logistics Properties Trust (Nasdaq: ILPT) today announced its financial results for the quarter ended December 31, 2023. "We finished the year with strong demand for our h
Slide 5: Fourth Quarter 2023 Highlights
Fourth Quarter 2023 Highlights (As of and for the three months ended December 31, 2023, unless otherwise noted) • 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
Slide 6: Financials
Financials RETURN TO TABLE OF CONTENTS Q4 2023 6
Slide 7: Key Financial Data
Key Financial Data (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 Total common shar
Slide 8: Consolidated Statements of Income (Loss)
Consolidated Statements of Income (Loss) (amounts in thousands, except percentage data and per share data) 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 o
Slide 9: Consolidated Balance Sheets
Consolidated Balance Sheets (dollars in thousands, except per share data) December 31, 2023 2022 246 Glasson Drive ASSETS Corpus Christi, TX 46,253 Square Feet Real estate properties $ 5,169,552 $ 5,176,108 ILPT Ownership: 61% Accumulated depreciation (397,454) (273,467) Total real estate properties
Slide 10: Debt Summary
Debt Summary As of December 31, 2023 (dollars in thousands) Interest Principal Maturity Years to Entity Type Secured By Rate (1) Balance (2) Date Maturity (1) Interest rates reflect the impact of interest ILPT Floating rate - interest only (3) 69 mainland and 35 Hawaii properties 6.18% $ 1,235,000 1
Slide 11: Debt Maturity Schedule (at Initial Maturity)
Debt Maturity Schedule (at Initial Maturity) As of December 31, 2023 (dollars in millions) 1151 South Graham Road Greenwood, IN 615,284 Square Feet $18.1 ILPT Ownership: 61% $1,400.0 Principal $1,235.0 $671.8 $721.8 $113.6 $18.8 $19.5 $20.2 $21.0 $22.4 $20.5 $43.3 2024 2025 2026 2027 2028 2029 2030
Slide 12: Leverage and Coverage Ratios
Leverage and Coverage Ratios 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 market c
Slide 13: Capital Expenditures Summary
Capital Expenditures Summary (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 5,025 3,96
Slide 14: Property Acquisitions and Dispositions
Property Acquisitions and Dispositions Since January 1, 2023 (dollars and sq. ft. in thousands) Acquisitions: ILPT has not acquired any properties since January 1, 2023. Dispositions: Gross Gain (loss) on Number of Gross Gross Sales Price Sale of Date Sold Location Properties Sq. Ft. Sales Price (1)
Slide 15: Portfolio Information
Portfolio Information RETURN TO TABLE OF CONTENTS Q4 2023 15
Slide 16: Same Property Results
Same Property Results (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 59,951 33,980 33,980 Percent leased 98.8% 99.1% 98.7% 99.1% Rental income $ 108,895 $ 1
Slide 17: Occupancy and Leasing Summary
Occupancy and Leasing Summary (1) (2) (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,
Slide 18: Tenant Credit Characteristics and Concentration
Tenant Credit Characteristics and Concentration As of December 31, 2023 (dollars and sq. ft. in thousands) % 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% Sub
Slide 19: Portfolio Lease Expiration and Reset Schedules
Portfolio Lease Expiration and Reset Schedules As of December 31, 2023 (dollars and sq. ft. in thousands) Cumulative Cumulative 900 Commerce Parkway West Drive Greenwood, IN % of Total % of Total % of Total % of Total 294,388 Square Feet Leased Leased Leased Annualized Annualized Annualized ILPT Own
Slide 20: Key Financial Data by Investment Portfolio
Key Financial Data by Investment Portfolio (dollars and sq. ft. in thousands, except per sq. ft. data) 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) Consolidated Ownership % 100% 100% 100% 61%
Slide 21: Joint Ventures
Joint Ventures RETURN TO TABLE OF CONTENTS Q4 2023 21
Slide 22: Consolidated Joint Venture - Mountain Industrial REIT LLC
Consolidated Joint Venture - Mountain Industrial REIT LLC As of December 31, 2023 (dollars in thousands) Lease Expiration Schedule Major Tenants % of Annualized Rental $100,000 Tenant Revenues FedEx Corporation / FedEx Ground Package System, Inc. 57.2% $90,000 Amazon.com Services, Inc. / Amazon.com
Slide 23: Consolidated Joint Venture - Financial Information
Consolidated Joint Venture - Financial Information (1) As of December 31, 2023 (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 December 31, 2023 2022 ASSETS Real
Slide 24: Consolidated Joint Venture - Financial Information (Continued)
Consolidated Joint Venture - Financial Information (Continued) (dollars in thousands, except percentage data and per share data) Operating Information of the Consolidated Pro-Rata Operating Information of the Consolidated Joint Venture (100%) (1) Joint Venture (ILPT Share) (2) Three Months Ended Yea
Slide 25: Consolidated Joint Venture - Financial Information (Continued)
Consolidated Joint Venture - Financial Information (Continued) (dollars in thousands, except percentage data and per share data) Operating Information of the Consolidated Pro-Rata Operating Information of the Consolidated Joint Venture (100%) (1) Joint Venture (ILPT Share) (2) Three Months Ended Yea
Slide 26: Unconsolidated Joint Venture - The Industrial Fund REIT LLC
Unconsolidated Joint Venture - The Industrial Fund REIT LLC (1) As of December 31, 2023 (dollars and sq. ft. in thousands) 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 Decem
Slide 27: Appendix
Appendix RETURN TO TABLE OF CONTENTS Q4 2023 27
Slide 28: Company Profile and Research Coverage
Company Profile and Research Coverage The Company: Equity Research Coverage Industrial Logistics Properties Trust (Nasdaq: ILPT) is a REIT that owns and leases B. Riley Securities, Inc. BTIG industrial and logistics properties throughout the United States. ILPT is included in Bryan Maher Thomas Cath
Slide 29: Governance Information
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 & Managing Trustee June S. Youngs Indepe
Slide 30: Calculation and Reconciliation of NOI and Cash Basis NOI
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 $ 110,142 $ 108,043 $ 110,258 $ 106,3
Slide 31: Reconciliation of NOI to Same Property NOI
Reconciliation of NOI to Same Property NOI and Calculation of Same Property Cash Basis NOI (dollars in thousands) For the Three Months Ended For the Year Ended December 31, December 31, 1800 Union Airpark Blvd. 2023 2022 2023 2022 Union, OH 1,791,246 Square Feet Reconciliation of NOI to Same Propert
Slide 32: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
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) $ (149,719) $ (286,841) Plus: interest
Slide 33: Calculation of FFO, Normalized FFO and CAD
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 shareholders $ (31,240) $ (26,112) $ (25,828) $
Slide 34: Calculation of FFO, Normalized FFO and CAD (Continued)
Calculation of FFO, Normalized FFO and CAD (Continued) (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 $
Slide 35: Non-GAAP Financial Measures and Certain Definitions
Non-GAAP Financial Measures and Certain Definitions 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 inf
Slide 36: Non-GAAP Financial Measures and Certain Definitions (Continued)
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 from unconsolidated joint venture prope
Slide 37: Non-GAAP Financial Measures and Certain Definitions (Continued)
Non-GAAP Financial Measures and Certain Definitions (Continued) 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 3
Slide 38: Warning Concerning Forward-Looking Statements
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 may include words such as “believe”,
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