Group 1 - Albert Anthony is a Croatian-American business author and media contributor on investor platforms, with over 1,000 followers on Seeking Alpha [1] - He has a non-traditional financial background, having worked as an analyst in the IT sector for Fortune 500 companies [1] - In 2021, he launched his own equities research firm, Albert Anthony & Company, which operates 100% remotely [1] Group 2 - Albert Anthony is set to release a book titled "Financial Markets: The Next Generation" on Amazon in 2025 [1] - He has participated in numerous business and innovation conferences in Croatia, contributing to the growth of the southern European economy [1] - The author has completed degrees and ongoing training from institutions like Drew University and the Corporate Finance Institute [1] Group 3 - Albert Anthony is launching a YouTube show called "Financial Markets with Albert Anthony" in 2025, focusing on market commentary [1] - The author does not write about non-publicly traded companies, small-cap stocks, or startup CEOs [1] - Albert Anthony & Company is a sole proprietorship registered in Austin, Texas, and does not provide personalized financial advisory services [1]

Group 1 - The article discusses the author's journey into investing, starting in high school in 2011, focusing on REITs, preferred stocks, and high-yield bonds, indicating a long-standing interest in markets and the economy [1] - The author has recently adopted a strategy that combines long stock positions with covered calls and cash secured puts, emphasizing a fundamental long-term investment approach [1] - The author primarily covers REITs and financials on Seeking Alpha, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1]

Financial Data and Key Metrics Changes - Cash basis NOI grew by 2.1% year over year and normalized FFO increased by 54% year over year [7] - Normalized FFO for Q2 2025 was $13,800,000 or $0.21 per share, representing a 54% increase compared to the same quarter last year [16] - NOI was reported at $87,600,000, with cash basis NOI at $84,700,000, both showing increases year over year and sequentially [17] - Interest expense decreased by $1,900,000 compared to the previous year, reflecting the impact of a lower interest rate cap [17] - The net debt to total assets ratio increased slightly to 69.9%, while the net debt coverage ratio remained unchanged at 12 times [18] Business Line Data and Key Metrics Changes - The portfolio consisted of 411 distribution and logistics properties across 39 states, totaling 60,000,000 square feet with a weighted average lease term of 7.6 years [7] - Leasing activity in Q2 totaled 171,000 square feet, with weighted average rental rates 21.1% higher than prior rates for the same space [8] - Year-to-date leasing activity is expected to increase annualized rental revenue by approximately $3,200,000, with one-third yet to be realized [8] Market Data and Key Metrics Changes - ILPT ended the quarter with an occupancy rate of 94.3%, exceeding the national industrial average by 170 basis points [12] - The leasing pipeline totals 7,800,000 square feet, with more than half related to renewal discussions for leases expiring in 2026 and 2027 [13] Company Strategy and Development Direction - The company is focused on evaluating opportunities to improve its balance sheet and reduce leverage, including potential asset sales to enhance liquidity [9] - A property was classified as held for sale at an attractive valuation of $50,000,000, with proceeds expected to partially repay a $700,000,000 fixed-rate mortgage loan [10] - The company remains committed to driving value through new and renewal leasing with strong economics [10] Management's Comments on Operating Environment and Future Outlook - Management believes ILPT is well-positioned to navigate current market conditions and capitalize on long-term fundamentals despite ongoing macroeconomic uncertainty [11] - The company expects normalized FFO for 2025 to be between $0.25 and $0.27 per share based on leasing activity and interest expense savings from refinancing [19] Other Important Information - The quarterly dividend was increased from $0.01 per share to $0.05 per share, reflecting confidence in the company's financial position [7][16] - The refinancing of $1,235,000,000 of floating rate debt into $1,160,000,000 of fixed rate debt is expected to yield annual cash savings of approximately $8,500,000 [15] Q&A Session Summary Question: Were there any one-time earnings this quarter? - A remediation payment of $50,000 related to a scheduled lease termination was noted as the only one-time item [22] Question: Are there plans to refinance the $1,400,000,000 JV debt? - The company is actively evaluating options for refinancing the JV debt [23] Question: Should more properties be expected for sale in the coming quarters? - While there are no immediate plans, the company is evaluating opportunities and may consider additional properties for disposition in the second half of the year or early 2026 [24] Question: What factors influenced the timing of the recent refinancing? - The refinancing was driven by the higher interest rate of the previous loan, and the company has time to evaluate options for the Mountain loans [32] Question: What is the current status of the leasing activity in the Hawaiian and Indiana properties? - There has been increased activity in the Indiana property, while the Hawaiian property remains status quo with no significant changes [38]

Financial Performance - ILPT announced a quarterly distribution on its common shares of $005 per share[11] - Net loss attributable to common shareholders was $2131 million or $032 per diluted share[14] - Normalized FFO attributable to common shareholders was $1381 million or $021 per diluted share[14] - NOI increased by 15% to $8756 million and Cash Basis NOI increased by 21% to $8467 million compared to Q2 2024[14] Portfolio and Leasing Activities - Approximately 76% of annualized rental revenues are generated from investment grade tenants or their subsidiaries and Hawaii land leases[13][14] - Occupancy of the portfolio was 943%[14] - Executed 171000 square feet of new and renewal leases at rental rates 211% higher than prior rates with a weighted average lease term of 48 years[14] - Only 36% or 21 million square feet of leased space is set to expire in the next 12 months[14] Debt and Capital Structure - Refinanced $1235 billion of floating rate debt with $116 billion of fixed rate debt due July 2030 using $75 million of cash on hand[14] - Ended the quarter with $586 million of cash on hand excluding restricted cash[14] - Net debt to total gross assets was 699%[30]

[PART I: Financial Information](index=4&type=section&id=PART%20I%20Financial%20Information) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Industrial Logistics Properties Trust as of June 30, 2025, and for the three and six-month periods then ended It includes the Balance Sheets, Statements of Comprehensive Income (Loss), Statements of Shareholders' Equity, Statements of Cash Flows, and the accompanying notes which provide detailed explanations of accounting policies and financial activities [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, the company's total assets were $5.24 billion, a decrease from $5.41 billion at year-end 2024 The decrease was primarily driven by a reduction in real estate properties, net, and cash equivalents Total liabilities also decreased to $4.29 billion from $4.40 billion, mainly due to changes in mortgage notes payable Consequently, total equity declined from $1.01 billion to $947.8 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total real estate properties, net | $4,573,309 | $4,656,499 | | Cash and cash equivalents | $58,559 | $131,706 | | **Total assets** | **$5,238,548** | **$5,406,331** | | Mortgages notes payable, net | $4,200,314 | $4,300,537 | | **Total liabilities** | **$4,290,784** | **$4,397,001** | | **Total equity** | **$947,764** | **$1,009,330** | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) For the second quarter of 2025, rental income slightly increased to $112.1 million from $110.6 million in Q2 2024 The net loss attributable to common shareholders improved to $(21.3) million, or $(0.32) per share, compared to $(23.2) million, or $(0.35) per share, in the prior-year quarter For the six-month period, the net loss per share also improved to $(0.65) from $(0.71) year-over-year Key Income Statement Data (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Rental income | $112,097 | $110,621 | $224,002 | $222,856 | | Total expenses | $75,645 | $75,716 | $149,804 | $153,165 | | Net loss | $(30,394) | $(33,479) | $(61,563) | $(67,381) | | Net loss attributable to common shareholders | $(21,310) | $(23,175) | $(42,842) | $(46,578) | | Net loss per share (basic and diluted) | $(0.32) | $(0.35) | $(0.65) | $(0.71) | [Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Total equity decreased from $1.01 billion at the end of 2024 to $947.8 million as of June 30, 2025 The decline was primarily driven by the net loss for the period and distributions to common shareholders, which totaled $1.3 million for the six months - Total equity attributable to common shareholders decreased from **$562.0 million** at December 31, 2024, to **$519.1 million** at June 30, 2025, primarily due to a cumulative net deficit increase from **$(86.5) million** to **$(129.3) million**[10](index=10&type=chunk)[15](index=15&type=chunk) - For the six months ended June 30, 2025, the company declared and paid distributions to common shareholders totaling **$1,323 thousand**[15](index=15&type=chunk)[60](index=60&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities increased to $29.8 million from $18.8 million in the prior year period Net cash used in investing activities was $5.8 million, a shift from cash provided of $4.6 million in 2024 Financing activities used significantly more cash, $107.4 million compared to $10.6 million, largely due to debt repayments This resulted in a total decrease in cash, cash equivalents, and restricted cash of $83.4 million Summary of Cash Flows (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $29,780 | $18,839 | | Net cash (used in) provided by investing activities | $(5,767) | $4,648 | | Net cash used in financing activities | $(107,428) | $(10,641) | | **(Decrease) increase in cash** | **$(83,415)** | **$12,846** | - The significant increase in cash used for financing activities was primarily due to the repayment of the **$1.24 billion** ILPT Floating Rate Loan, partially offset by proceeds from a new **$1.16 billion** mortgage note[17](index=17&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide crucial context to the financial statements, detailing the company's real estate portfolio, lease concentrations, debt structure, fair value measurements, and related-party transactions As of June 30, 2025, the portfolio consisted of 411 properties Key tenants FedEx and Amazon represented 28.8% and 6.7% of annualized rental revenues, respectively The company also detailed significant debt refinancing activity during the quarter - As of June 30, 2025, the company's portfolio comprised **411 properties** with approximately **59.9 million rentable square feet**, including properties in a consolidated joint venture[25](index=25&type=chunk) - Major tenant concentration exists with FedEx Corporation (**28.8%** of annualized rental revenues) and Amazon (**6.7%**) as of June 30, 2025[41](index=41&type=chunk) - In June 2025, the company obtained a new **$1.16 billion** fixed-rate mortgage loan and used the proceeds to repay its **$1.235 billion** floating-rate loan, resulting in a **$5.1 million** loss on debt extinguishment[46](index=46&type=chunk) - The company has no employees and is managed by The RMR Group LLC (RMR), to which it pays business and property management fees For Q2 2025, business management fees were **$5.8 million** and property management fees were **$3.2 million**[61](index=61&type=chunk)[65](index=65&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and results of operations, highlighting a portfolio of 411 properties with 94.3% occupancy The analysis covers property operations, leasing activity, period-over-period financial comparisons, non-GAAP measures like FFO, and liquidity Key events include significant leasing activity with an 18.7% increase in rental rates for new/renewal leases in H1 2025 and a major debt refinancing Normalized FFO per share increased to $0.21 in Q2 2025 from $0.14 in Q2 2024 [Overview and Property Operations](index=20&type=section&id=Overview%20and%20Property%20Operations) As of June 30, 2025, ILPT's portfolio consisted of 411 properties totaling 59.9 million square feet with 94.3% occupancy, down slightly from 95.4% a year prior During the first six months of 2025, the company executed new and renewal leases for 2.3 million square feet, achieving a weighted average rental rate increase of 18.7% Additionally, rent resets for land at its Hawaii properties resulted in a 34.6% rental rate increase Portfolio Summary as of June 30, 2025 | Metric | Value | | :--- | :--- | | Number of Properties | 411 | | Rentable Square Feet | 59,890,000 | | Occupancy | 94.3% | Leasing Activity - Six Months Ended June 30, 2025 | Metric | Value | | :--- | :--- | | Square feet leased (New & Renewals) | 2,346,000 | | Weighted average rental rate change | +18.7% | | Weighted average lease term (years) | 6.1 | - During the first six months of 2025, rent resets for approximately **144,000 square feet** of land at Hawaii Properties resulted in rental rates that were **34.6%** higher than prior rates[90](index=90&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Comparing Q2 2025 to Q2 2024, rental income grew 1.3% to $112.1 million and Net Operating Income (NOI) increased 1.5% to $87.6 million The net loss attributable to common shareholders improved to $(21.3) million from $(23.2) million For the six-month period, rental income rose 0.5% and NOI grew 1.6%, with the net loss attributable to common shareholders narrowing to $(42.8) million from $(46.6) million year-over-year Q2 2025 vs Q2 2024 Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Rental income | $112,097 | $110,621 | 1.3% | | Net operating income (NOI) | $87,557 | $86,265 | 1.5% | | Net loss attributable to common shareholders | $(21,310) | $(23,175) | 8.0% | Six Months 2025 vs 2024 Performance (in thousands) | Metric | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | Rental income | $224,002 | $222,856 | 0.5% | | Net operating income (NOI) | $175,059 | $172,317 | 1.6% | | Net loss attributable to common shareholders | $(42,842) | $(46,578) | (8.0)% | [Non-GAAP Financial Measures](index=26&type=section&id=Non-GAAP%20Financial%20Measures) The company provides non-GAAP measures including NOI, FFO, and Normalized FFO For Q2 2025, FFO attributable to common shareholders was $7.4 million ($0.11/share), and Normalized FFO was $13.8 million ($0.21/share) This represents a significant increase in Normalized FFO per share from $0.14 in Q2 2024, primarily due to adjustments for incentive management fees and a loss on debt extinguishment FFO and Normalized FFO per Share | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | FFO per share | $0.11 | $0.14 | $0.30 | $0.28 | | Normalized FFO per share | $0.21 | $0.14 | $0.41 | $0.28 | - Normalized FFO for Q2 2025 includes adjustments for **$1.3 million** in accrued incentive management fees and a **$5.1 million** loss on extinguishment of debt[118](index=118&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary liquidity source is rental income As of June 30, 2025, cash and cash equivalents were $58.6 million (excluding restricted cash) Total indebtedness was $4.2 billion In a key financing event in June 2025, the company secured a new $1.16 billion fixed-rate mortgage loan maturing in 2030 to repay a $1.235 billion floating-rate loan that was due in 2025, extending its debt maturity profile - As of June 30, 2025, the company had **$58.6 million** in cash and cash equivalents, excluding restricted cash[122](index=122&type=chunk) - In June 2025, the company refinanced its **$1.235 billion** ILPT Floating Rate Loan with a new **$1.16 billion** fixed-rate mortgage, extending the maturity to July 2030[131](index=131&type=chunk) - On July 10, 2025, the company declared a quarterly distribution of **$0.05 per share**, a significant increase from the previous **$0.01 per share**[60](index=60&type=chunk)[137](index=137&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure is to interest rate changes This risk is managed through a combination of fixed-rate debt and interest rate caps on its floating-rate debt As of June 30, 2025, the company had $1.4 billion in floating-rate debt and $2.8 billion in fixed-rate debt The floating-rate debt is hedged by an interest rate cap, mitigating the impact of rising rates - As of June 30, 2025, the company had **$1.4 billion** of floating-rate debt related to the Mountain Floating Rate Loan, which is subject to an interest rate cap with a SOFR strike rate of **3.10%**[142](index=142&type=chunk)[143](index=143&type=chunk) - The company held **$2.8 billion** in fixed-rate debt as of June 30, 2025 A hypothetical **1%** change in interest rates would alter the fair value of this debt by approximately **$121.1 million**[147](index=147&type=chunk)[149](index=149&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the Managing Trustees and Chief Financial Officer, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025 There were no material changes to the company's internal control over financial reporting during the quarter - Based on an evaluation as of the end of the reporting period, the company's management concluded that its disclosure controls and procedures are effective[150](index=150&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, these controls[151](index=151&type=chunk) [PART II: Other Information](index=36&type=section&id=PART%20II%20Other%20Information) [Item 1A. Risk Factors](index=36&type=page&id=Item%201A.%20Risk%20Factors) This section supplements the risk factors disclosed in the 2024 Annual Report It specifically highlights the risk that changes in U.S. and foreign trade policies, such as tariffs and trade agreement modifications, could disrupt global supply chains and negatively impact the macroeconomic environment, which in turn could adversely affect the company and its tenants' businesses and financial conditions - The company identifies significant changes to U.S. and foreign trade policies, treaties, and tariffs as a key risk These changes could disrupt global supply chains, increase costs, and adversely affect the revenues and profitability of tenants who rely on imported goods[162](index=162&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the second quarter of 2025, the company purchased 9,095 of its common shares at a weighted average price of $3.17 per share These purchases were not part of a publicly announced buyback program but were made to satisfy tax withholding and payment obligations for a former officer and other former employees of RMR in connection with the vesting of share awards Issuer Purchases of Equity Securities (Q2 2025) | Total Shares Purchased | Weighted Average Price Paid per Share | | :--- | :--- | | 9,095 | $3.17 | - The share purchases were made to satisfy tax withholding obligations for former officers and employees of RMR related to the vesting of prior common share awards[163](index=163&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q Notable exhibits include corporate governance documents, certifications required by the Sarbanes-Oxley Act, and a new Loan Agreement dated June 26, 2025, related to the company's recent debt financing activities - A key exhibit filed is the Loan Agreement dated June 26, 2025, among subsidiaries of ILPT and a syndicate of banks including Citi Real Estate Funding Inc. and Bank of America, N.A[164](index=164&type=chunk)

[Quarterly Results](index=3&type=section&id=QUARTERLY%20RESULTS) [Industrial Logistics Properties Trust Announces Second Quarter 2025 Financial Results](index=4&type=section&id=Industrial%20Logistics%20Properties%20Trust%20Announces%20Second%20Quarter%202025%20Financial%20Results) Industrial Logistics Properties Trust (ILPT) announced its Q2 2025 financial results, highlighting a successful refinancing of $1.235 billion in floating-rate debt with fixed-rate debt, which is expected to provide stability and annual cash savings - Successfully refinanced **$1.235 billion** of floating-rate debt with **$1.16 billion** of fixed-rate debt, providing stability and annual cash savings[10](index=10&type=chunk) - The quarterly distribution on common shares was increased to **$0.05 per share**, payable in August 2025[12](index=12&type=chunk) - As of June 30, 2025, ILPT's portfolio consisted of **411 properties** with approximately **59.9 million rentable square feet** across 39 states[14](index=14&type=chunk) - Approximately **76%** of ILPT's annualized rental revenues are derived from investment-grade tenants, their subsidiaries, or Hawaii land leases[14](index=14&type=chunk) [Second Quarter 2025 Highlights](index=5&type=section&id=Second%20Quarter%202025%20Highlights) In Q2 2025, ILPT reported a net loss of $21.3 million ($0.32 per share) but generated Normalized FFO of $13.8 million ($0.21 per share), achieving a 1.5% increase in NOI and a 2.1% increase in Cash Basis NOI compared to Q2 2024 Key Financial Highlights | Metric | Value | Per Share | | :--- | :--- | :--- | | Net loss attributable to common shareholders | $(21.3) million | $(0.32) | | Normalized FFO attributable to common shareholders | $13.8 million | $0.21 | | Adjusted EBITDAre | $85.0 million | N/A | - **NOI increased by 1.5% to $87.6 million** and **Cash Basis NOI increased by 2.1% to $84.7 million** compared to Q2 2024[15](index=15&type=chunk) - Executed **171,000 square feet** of new and renewal leases with weighted average rental rates **21.1% higher** than prior rates for the same space[15](index=15&type=chunk) - Portfolio cash flows remain stable with **94.3% occupancy** and a weighted average lease term of **7.6 years**[15](index=15&type=chunk) [Financials](index=6&type=section&id=FINANCIALS) [Key Financial Data](index=7&type=section&id=Key%20Financial%20Data) For Q2 2025, ILPT reported rental income of $112.1 million and a net loss attributable to common shareholders of $21.3 million, or ($0.32) per share, with Normalized FFO at $13.8 million, or $0.21 per share Selected Income Statement Data (Q2 2025) | Metric | Amount (in thousands) | Per Share | | :--- | :--- | :--- | | Rental income | $112,097 | N/A | | Net loss attributable to common shareholders | $(21,310) | $(0.32) | | NOI | $87,557 | N/A | | Cash Basis NOI | $84,672 | N/A | | Normalized FFO attributable to common shareholders | $13,808 | $0.21 | | CAD attributable to common shareholders | $10,500 | $0.16 | Capitalization (as of June 30, 2025) | Metric | Amount (in thousands) | | :--- | :--- | | Equity market capitalization | $301,829 | | Debt | $4,223,519 | | Total market capitalization | $4,525,348 | | Net debt | $4,064,454 | [Condensed Consolidated Statements of Income (Loss)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) For the second quarter ended June 30, 2025, ILPT recorded rental income of $112.1 million, a slight increase from $110.6 million in the same period of 2024, reporting a net loss attributable to common shareholders of $21.3 million, an improvement from the $23.2 million loss in Q2 2024 Condensed Consolidated Statements of Income (Loss) | (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Rental income | $112,097 | $110,621 | | Total expenses | $75,645 | $75,716 | | Interest expense | $(67,914) | $(73,631) | | Loss on extinguishment of debt | $(5,070) | - | | Net loss | $(30,394) | $(33,479) | | Net loss attributable to common shareholders | $(21,310) | $(23,175) | | Net loss per share (basic and diluted) | $(0.32) | $(0.35) | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, ILPT's total assets stood at $5.24 billion, a decrease from $5.41 billion at the end of 2024, with total liabilities at $4.29 billion, primarily due to a reduction in mortgages notes payable Condensed Consolidated Balance Sheets | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total real estate properties, net | $4,573,309 | $4,656,499 | | Total assets | $5,238,548 | $5,406,331 | | Mortgages notes payable, net | $4,200,314 | $4,300,537 | | Total liabilities | $4,290,784 | $4,397,001 | | Total equity | $947,764 | $1,009,330 | [Debt Summary](index=10&type=section&id=Debt%20Summary) As of June 30, 2025, ILPT had total debt of approximately $4.22 billion with a weighted average interest rate of 5.43% and a weighted average maturity of 3.9 years, including a $1.4 billion floating-rate loan in the Mountain JV maturing in March 2026 Debt Overview | Metric | Value | | :--- | :--- | | Total Principal Balance | $4,223,519 thousand | | Weighted Average Interest Rate | 5.43% | | Weighted Average Years to Maturity | 3.9 | - The debt portfolio includes a newly issued **$1.16 billion fixed-rate loan** at **6.40%** maturing in July 2030[23](index=23&type=chunk) - The Mountain JV has a significant **$1.4 billion floating-rate loan** with a **5.87% interest rate**, maturing in March 2026[23](index=23&type=chunk) [Debt Maturity Schedule](index=11&type=section&id=Debt%20Maturity%20Schedule) The debt maturity schedule as of June 30, 2025, indicates a significant maturity of $1.4 billion in 2026, consisting of secured floating-rate debt from a consolidated joint venture, with minimal maturities in 2025, 2027, and 2028 - A major debt maturity of **$1.4 billion** is scheduled for 2026, representing secured floating-rate debt of a consolidated joint venture[27](index=27&type=chunk)[28](index=28&type=chunk) - There are no significant maturities in 2025, 2027, and 2028[27](index=27&type=chunk) - A total of **$671.8 million** in secured fixed-rate debt matures in 2029[27](index=27&type=chunk) [Leverage and Coverage Ratios](index=12&type=section&id=Leverage%20and%20Coverage%20Ratios) As of Q2 2025, ILPT's Net Debt to Annualized Adjusted EBITDAre was 12.0x, and its interest coverage ratio was 1.3x, with variable rate debt significantly decreasing to 34.4% of net debt from 64.8% in the prior quarter Leverage and Coverage Ratios | Ratio | 6/30/2025 | 3/31/2025 | | :--- | :--- | :--- | | **Leverage Ratios:** | | | | Net debt / total gross assets | 69.9% | 68.7% | | Variable rate debt / net debt | 34.4% | 64.8% | | **Coverage Ratios:** | | | | Net debt / annualized Adjusted EBITDAre | 12.0x | 11.9x | | Adjusted EBITDAre / interest expense | 1.3x | 1.2x | [Capital Expenditures Summary](index=13&type=section&id=Capital%20Expenditures%20Summary) Total capital expenditures for Q2 2025 amounted to $5.2 million, a significant increase from $2.8 million in the prior-year quarter, primarily allocated to tenant improvements and building improvements Capital Expenditures | (in thousands) | For the Three Months Ended 6/30/2025 | For the Three Months Ended 6/30/2024 | | :--- | :--- | :--- | | Tenant improvements | $2,393 | $142 | | Leasing costs | $300 | $184 | | Building improvements | $2,458 | $2,506 | | **Total capital expenditures** | **$5,151** | **$2,832** | [Portfolio Information](index=14&type=section&id=PORTFOLIO%20INFORMATION) [Same Property Results](index=15&type=section&id=Same%20Property%20Results) For its same-property portfolio of 410 properties, ILPT reported positive year-over-year growth in Q2 2025, with Net Operating Income (NOI) increasing by 1.5% to $86.9 million and Cash Basis NOI growing by 2.1% to $84.0 million Same Property Performance | (dollars in thousands) | For the Three Months Ended 6/30/2025 | For the Three Months Ended 6/30/2024 | % Change | | :--- | :--- | :--- | :--- | | Properties | 410 | 410 | 0.0% | | Percent leased | 94.3% | 95.3% | (1.0%) | | NOI | $86,893 | $85,607 | 1.5% | | Cash Basis NOI | $83,953 | $82,236 | 2.1% | [Occupancy and Leasing Summary](index=16&type=section&id=Occupancy%20and%20Leasing%20Summary) As of Q2 2025, ILPT's total portfolio of 411 properties was 94.3% leased, with 171,000 square feet of new and renewal leases executed at a weighted average GAAP rent increase of 21.1% - The total portfolio of **411 properties**, comprising **59.9 million rentable square feet**, was **94.3% leased** at the end of Q2 2025[41](index=41&type=chunk) Leasing Activity (Q2 2025) | Leasing Activity (Q2 2025) | Square Feet | % Change in GAAP Rent | Weighted Avg. Lease Term (Years) | | :--- | :--- | :--- | :--- | | New leases | 44,000 | 83.4% | 5.0 | | Renewals | 127,000 | 16.4% | 5.5 | | **Total/Weighted Avg.** | **171,000** | **21.1%** | **5.4** | [Tenant Credit Characteristics and Concentration](index=17&type=section&id=Tenant%20Credit%20Characteristics%20and%20Concentration) ILPT's revenue is supported by a strong tenant base, with 76.2% of total annualized rental revenues derived from investment-grade tenants, their subsidiaries, and Hawaii land leases, though the top 10 tenants account for 47.1% of revenues - A combined **76.2% of annualized rental revenue** comes from high-quality sources: investment-grade rated tenants (**18.3%**), subsidiaries of investment-grade parents (**37.1%**), and leased Hawaii lands (**20.8%**)[43](index=43&type=chunk) Top Tenant Concentration | Top 5 Tenants | % of Total Annualized Rental Revenues | | :--- | :--- | | 1. FedEx Corporation | 28.8% | | 2. Amazon.com Services, Inc. | 6.7% | | 3. Home Depot U.S.A., Inc. | 2.2% | | 4. OldCo Tire Distributors, Inc. | 1.7% | | 5. UPS Supply Chain Solutions, Inc. | 1.5% | | **Total Top 10** | **47.1%** | [Portfolio Lease Expiration and Reset Schedules](index=18&type=section&id=Portfolio%20Lease%20Expiration%20and%20Reset%20Schedules) The portfolio's lease expirations are well-laddered, with only 7.1% of leased square feet expiring through the end of 2026, and a significant portion (55.0% of leased square feet) expiring in 2030 and beyond Lease Expiration Schedule | Year | Leased Square Feet Expiring (%) | Cumulative (%) | Annualized Rental Revenues Expiring (%) | Cumulative (%) | | :--- | :--- | :--- | :--- | :--- | | 2025 | 1.5% | 1.5% | 0.7% | 0.7% | | 2026 | 5.6% | 7.1% | 4.4% | 5.1% | | 2027 | 14.7% | 21.8% | 11.7% | 16.8% | | 2028 | 11.0% | 32.8% | 10.8% | 27.6% | | 2029 | 12.2% | 45.0% | 10.2% | 37.8% | | Thereafter | 55.0% | 100.0% | 62.2% | 100.0% | - The weighted average remaining lease term is **6.8 years by square feet** and **7.6 years by annualized rental revenues**[47](index=47&type=chunk) [Key Financial Data by Investment Portfolio](index=19&type=section&id=Key%20Financial%20Data%20by%20Investment%20Portfolio) This section provides a breakdown of key metrics across ILPT's wholly-owned Mainland and Hawaii properties, and its consolidated Mountain Industrial REIT joint venture, highlighting the Mountain JV's nearly full occupancy at 99.8% Investment Portfolio Key Financial Data | (As of Q2 2025) | ILPT Wholly Owned (Total) | Mountain Industrial REIT LLC (1) | ILPT Consolidated | | :--- | :--- | :--- | :--- | | Properties | 316 | 94 | 411 | | Occupancy % | 91.4% | 99.8% | 94.3% | | Total gross assets (thousands) | $2,524,443 | $3,103,542 | $5,818,254 | | Total debt (principal, thousands) | $2,510,000 | $1,713,519 | $4,223,519 | | NOI (thousands) | $53,716 | $33,752 | $87,557 | | Cash Basis NOI (thousands) | $51,652 | $32,944 | $84,672 | [Joint Ventures](index=20&type=section&id=JOINT%20VENTURES) [Consolidated Joint Venture - Mountain Industrial REIT LLC](index=21&type=section&id=Consolidated%20Joint%20Venture%20-%20Mountain%20Industrial%20REIT%20LLC) ILPT holds a 61% ownership interest in the consolidated Mountain Industrial REIT LLC, which owns 94 properties with 99.8% occupancy, and generated $42.6 million in rental income for Q2 2025 - ILPT has a **61% ownership** in the Mountain Industrial REIT LLC, which owns **94 properties** in 27 states and is **99.8% occupied**[63](index=63&type=chunk) - The JV's largest tenant is **FedEx Corporation**, representing **55.6%** of its annualized rental revenues[58](index=58&type=chunk) Mountain Industrial REIT LLC Operating Information (100% Basis) | Operating Information (100% Basis) | Three Months Ended June 30, 2025 | | :--- | :--- | | Rental income | $42,643 thousand | | Net loss | $(23,247) thousand | | FFO and Normalized FFO | $2,368 thousand | | CAD | $(1,180) thousand | [Unconsolidated Joint Venture - The Industrial Fund REIT LLC](index=25&type=section&id=Unconsolidated%20Joint%20Venture%20-%20The%20Industrial%20Fund%20REIT%20LLC) ILPT owns a 22% interest in The Industrial Fund REIT LLC, an unconsolidated joint venture with 18 properties and 98.7% occupancy, which reported a net loss of $1.0 million for Q2 2025 - ILPT holds a **22% ownership stake** in this unconsolidated joint venture, which owns **18 properties** and is **98.7% occupied**[69](index=69&type=chunk) - For Q2 2025, the JV generated **$18.7 million in rental income** and had a net loss of **$1.0 million** (on a 100% basis)[69](index=69&type=chunk) - ILPT received distributions totaling **$990,000** from this joint venture in Q2 2025[69](index=69&type=chunk) [Appendix](index=26&type=section&id=APPENDIX) [Calculation and Reconciliation of Non-GAAP Financial Measures](index=27&type=section&id=Calculation%20and%20Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations for key non-GAAP financial measures to their nearest GAAP equivalents, including Net Loss to NOI, FFO, Normalized FFO, and Cash Available for Distribution (CAD) for Q2 2025 - Reconciles Net Loss to NOI and Cash Basis NOI: For Q2 2025, **Net Loss of ($30.4 million)** is reconciled to **NOI of $87.6 million**[75](index=75&type=chunk) - Reconciles Net Loss Attributable to Common Shareholders to FFO and Normalized FFO: For Q2 2025, **Net Loss of ($21.3 million)** is reconciled to **Normalized FFO of $13.8 million**[81](index=81&type=chunk) - Reconciles Normalized FFO to CAD: For Q2 2025, **Normalized FFO of $13.8 million** is reconciled to **CAD of $10.5 million**[82](index=82&type=chunk) [Company Profile, Research Coverage and Governance Information](index=31&type=section&id=Company%20Profile%2C%20Research%20Coverage%20and%20Governance%20Information) This section outlines ILPT's corporate structure, leadership, and market information, noting that ILPT is externally managed by The RMR Group, an alternative asset management company with approximately $40 billion in assets under management - ILPT is managed by The RMR Group (Nasdaq: RMR), which had approximately **$40 billion in assets under management** as of June 30, 2025[83](index=83&type=chunk) - The document lists key officers, including Yael Duffy (President and COO) and Tiffany R. Sy (CFO and Treasurer), as well as the Board of Trustees[83](index=83&type=chunk)[85](index=85&type=chunk) - Equity research coverage is provided by firms including BTIG and B. Riley Securities, Inc[84](index=84&type=chunk) [Non-GAAP Financial Measures and Certain Definitions](index=32&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Certain%20Definitions) This section provides definitions and calculation methodologies for non-GAAP financial measures such as Net Operating Income (NOI), Funds From Operations (FFO), and Cash Available for Distribution (CAD), along with other key operational and financial terms - Provides definitions and calculation methodologies for non-GAAP measures such as NOI, Cash Basis NOI, FFO, Normalized FFO, CAD, and EBITDAre[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) - Defines key terms used in the report, including 'Annualized rental revenues', 'Gross book value of real estate assets', 'Net debt', and 'Same property'[93](index=93&type=chunk)[94](index=94&type=chunk)[97](index=97&type=chunk)[100](index=100&type=chunk) [Warning Concerning Forward-Looking Statements](index=35&type=section&id=WARNING%20CONCERNING%20FORWARD-LOOKING%20STATEMENTS) This standard safe harbor statement cautions readers about the forward-looking statements in the presentation, clarifying that future performance is subject to risks and uncertainties, and advises investors to consult SEC filings for detailed risk factors - The presentation contains forward-looking statements regarding future expectations, such as generating cash flow growth, strengthening the balance sheet, and reducing leverage[102](index=102&type=chunk) - These statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations[103](index=103&type=chunk) - Investors are advised to consult the 'Risk Factors' section in ILPT's periodic filings with the SEC for a more detailed understanding of potential risks[103](index=103&type=chunk)

Core Viewpoint - Industrial Logistics Properties Trust (ILPT) has experienced a significant increase in share price, attributed to strong investor optimism following a substantial dividend announcement and positive earnings expectations [1][2]. Group 1: Stock Performance - ILPT shares rose 14.7% to $5.39 in the last trading session, with a trading volume higher than average [1]. - Over the past four weeks, ILPT stock has gained 32% [1]. Group 2: Dividend Announcement - The company announced a quarterly cash dividend of 5 cents per share, marking a 400% increase from the previous quarter [2]. - The dividend is scheduled to be paid on August 14 to shareholders of record as of July 21, 2025 [2]. Group 3: Earnings Expectations - ILPT is expected to report quarterly funds from operations (FFO) of $0.21 per share, reflecting a year-over-year increase of 50% [3]. - Revenue projections stand at $112.05 million, which is a 1.3% increase compared to the same quarter last year [3]. Group 4: FFO Estimate Revisions - The consensus FFO per share estimate for ILPT has been revised 45% higher in the last 30 days [4]. - Positive trends in FFO estimate revisions are typically associated with stock price appreciation [4]. Group 5: Industry Context - ILPT holds a Zacks Rank of 1 (Strong Buy), indicating strong market confidence [5]. - In comparison, Crown Castle (CCI), another stock in the same industry, has a Zacks Rank of 3 (Hold) and has seen a 0.5% increase in its last trading session [5][6].

Technical Analysis - Industrial Logistics Properties Trust (ILPT) has reached a key level of support, indicated by a "golden cross" where its 50-day simple moving average has crossed above its 200-day simple moving average [1][2] - A golden cross is a bullish signal that suggests a potential breakout, typically formed when a stock's short-term moving average surpasses a longer-term moving average [2] Market Performance - ILPT has experienced a rally of 30.8% over the past four weeks, indicating strong market performance [4] - The company currently holds a 1 (Strong Buy) rating on the Zacks Rank, suggesting positive investor sentiment and potential for further gains [4] Earnings Outlook - The earnings outlook for ILPT is positive, with no downward revisions in earnings estimates over the past two months and one upward revision, leading to an increase in the Zacks Consensus Estimate [4][5] - This positive movement in earnings estimates, combined with the favorable technical indicators, positions ILPT for potential gains in the near future [5]

Portfolio Overview - ILPT owns 411 industrial and logistics properties[1], covering 60 million rentable square feet[13], with 95% occupancy[13] across 39 states[13] - Approximately 76% of ILPT's annualized rental revenues are derived from investment grade tenants, subsidiaries of investment grade rated entities, or Hawaii land leases[13,32] - The portfolio includes 185 mainland properties with 432 million rentable square feet and 226 Hawaii properties with 167 million rentable square feet[18] Financial Performance (Q1 2025) - Leasing activity totaled 2319000 square feet[20], with rental rates increasing by 189%[20] - The company reported a net loss attributable to common shareholders, but it declined by 80% year-over-year[20] - Adjusted EBITDAre increased by 11% compared to the prior year period[20] - Cash Basis NOI increased by 19% compared to the prior year period[20] - Normalized FFO attributable to common shareholders was $13490000 or $020 per share[65] Debt and Lease Management - Total consolidated debt is $43 billion[29], with a weighted average interest rate of 55% including the impact of interest rate caps[29] - The weighted average debt maturity term is 28 years, excluding extension options[29] - No debt maturities until 2027, including extension options[29] - Lease expirations and rent resets for the total consolidated portfolio are 11% of total ILPT annualized rental revenues in 2025[45]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Strategy - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - A safer strategy involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Industrial Logistics Properties Trust (ILPT) - ILPT has shown significant recent price momentum, with a four-week price change of 33.2%, indicating growing investor interest [4] - Over the past 12 weeks, ILPT's stock has gained 69%, with a beta of 2.3, suggesting it moves 130% higher than the market in either direction [5] - ILPT has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - ILPT has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - The stock is currently trading at a Price-to-Sales ratio of 0.68, suggesting it is undervalued, as investors pay only 68 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides ILPT, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [8] - Various Zacks Premium Screens are available to help identify potential winning stock picks based on different investing styles [9]