I ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with covered calls and cash secured puts. I approach investing purely from a fundamental long-term point of view. On Seeking Alpha I mostly cover REITs and financials, with occasional articles on ETFs and other stocks driven by a macro trade idea.Analyst’s D ...

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Industrial Logistics Properties Trust (NasdaqGS:ILPT) Q3 2025 Earnings Call October 29, 2025 10:00 AM ET Company ParticipantsMarc Krohn - Vice PresidentKevin Barry - Senior Director of Investor RelationsTiffany Sy - CFO and TreasurerYael Duffy - President and COOConference Call ParticipantsJohn Massocca - Senior Research AnalystOperatorGood morning and welcome to Industrial Logistics Properties Trust's third quarter 2025 financial results conference call. All participants will be in listen-only mode. Should ...

Financial Data and Key Metrics Changes - ILPT reported third-quarter normalized FFO of $17.4 million or $0.26 per share, representing a 26% increase sequentially and a 116% increase year-over-year [11] - Same property cash basis NOI increased by 3% compared to the same period last year, supported by strong renewal activity and rent growth [5] - Interest expense decreased by $4.4 million compared to the second quarter of 2025, totaling $63.5 million, due to a $1.16 billion fixed-rate debt refinancing completed in June [11] Business Line Data and Key Metrics Changes - The company completed 836,000 sq ft of leasing during the third quarter, with renewals accounting for 70% of the activity [7] - The weighted average rental rates for the new leases were 22% higher than prior rates for the same space [7] - The leasing pipeline now exceeds 8 million sq ft, with anticipated average roll-ups in rent of 20% on the mainland and 30% in Hawaii [10] Market Data and Key Metrics Changes - ILPT's consolidated occupancy rate was 94.1%, outperforming the U.S. industrial average by 150 basis points [7] - Over 76% of annualized revenues come from investment-grade rated tenants or secure Hawaii land leases [6] Company Strategy and Development Direction - The company is focused on addressing lease expirations in 2026 and 2027 while evaluating opportunities to improve its balance sheet and reduce leverage [7][10] - ILPT has identified three properties for sale totaling 867,000 sq ft, anticipating a combined sales price of approximately $55 million [8] Management's Comments on Operating Environment and Future Outlook - Management noted that despite macroeconomic and tariff uncertainties, the industrial real estate sector remains resilient, driven by e-commerce growth and reshoring initiatives [4] - For the fourth quarter of 2025, normalized FFO is expected to be between $0.27-$0.29 per share, excluding incentive fees [14] Other Important Information - The company recognized a $6.1 million impairment charge on one of the properties held for sale [12] - ILPT ended the quarter with cash on hand of $83 million and restricted cash of $95 million, with a net debt-to-total assets ratio of 69.3% [12] Q&A Session Summary Question: Guidance on incentive fees - Management indicated that a full-year incentive fee of $6.3 million would be recorded, with less than $2 million expected in Q4 [16][18] Question: GAAP rent increase on mainland assets - Management explained that a specific deal with the United States Postal Service drove down the GAAP rent increase to 1.8% [23][24] Question: Disposition opportunities in 2026 - Management stated that they are constantly evaluating the portfolio and may sell more properties in 2026, particularly within the Mountain joint venture [27] Question: Update on leasing in Indianapolis - Management reported optimism with three proposals out in Indianapolis, expecting potential leasing in the first half of next year [30] Question: Leasing progress in Hawaii - Management mentioned ongoing diligence with a full-site user prospect in Hawaii, hopeful for a lease [34] Question: Overall leasing and renewal outlook for 2026 - Management confirmed good progress on 2026 and 2027 expirations, with many signed LOIs or active lease negotiations [35]

Financial Data and Key Metrics Changes - ILPT reported third-quarter normalized FFO of $17.4 million or $0.26 per share, representing a 26% increase sequentially and a 116% increase year-over-year [11] - Same property cash basis NOI increased by 3% compared to the same period last year, supported by strong renewal activity and rent growth [5] - Interest expense decreased by $4.4 million compared to the second quarter of 2025, totaling $63.5 million, due to a $1.16 billion fixed-rate debt refinancing completed in June [11] Business Line Data and Key Metrics Changes - The company completed 836,000 square feet of leasing during the third quarter, with renewals accounting for 70% of the activity [6][9] - The weighted average rental rates for the new leases were 22% higher than prior rates for the same space [6] - The portfolio consists of 411 distribution and logistics properties across 39 states, totaling 60 million square feet, with a weighted average lease term of 7.4 years [5] Market Data and Key Metrics Changes - Consolidated occupancy was reported at 94.1%, outperforming the U.S. industrial average by 150 basis points [6] - The leasing pipeline now exceeds 8 million square feet, with anticipated near-term conversion of approximately 75% [9][10] Company Strategy and Development Direction - The company is focused on evaluating opportunities to improve its balance sheet and reduce leverage, identifying three properties for sale totaling 867,000 square feet [7] - The anticipated sales price for these properties is approximately $55 million, with proceeds used to partially repay a $700 million loan due in 2032 [8] Management's Comments on Operating Environment and Future Outlook - Management noted that despite macroeconomic and tariff uncertainties, the industrial real estate sector continues to show resilience [4] - Looking ahead to the fourth quarter of 2025, normalized FFO is expected to be between $0.27 and $0.29 per share, excluding incentive fees [13] Other Important Information - The company recognized a $6.1 million impairment charge on one of the properties held for sale [12] - The net debt-to-total assets ratio decreased slightly to 69.3%, with a net debt coverage ratio remaining unchanged at 12 times [12] Q&A Session Summary Question: Guidance on incentive fees - Management indicated that a full-year incentive fee of $6.3 million would be recorded, with less than $2 million expected in Q4 [16][18] Question: GAAP rent increase on mainland assets - A specific deal with the United States Postal Service drove down the GAAP rent increase to 1.8% [23][25] Question: Disposition opportunities in 2026 - Management is constantly evaluating the portfolio and may sell more properties in 2026, particularly within the Mountain joint venture [28] Question: Update on leasing in Indianapolis - There are three proposals out in Indianapolis, with optimism for leasing in the first half of next year [30] Question: Leasing updates in Hawaii - A prospect for a full-site user is currently in diligence, with hopes for a lease [35] Question: Overall leasing and renewal outlook for 2026 - Management is making good progress on 2026 and 2027 expirations, with many signed LOIs or active lease negotiations [36]

Financial Results and Supplemental Information THIRD QUARTER 2025 October 28, 2025 2020 Joe B. Jackson Parkway Murfreesboro, TN 1,016,281 Square Feet ILPT Ownership: 100% Table of Contents QUARTERLY RESULTS | Industrial Logistics Properties Trust Announces Third Quarter 2025 Financial Results | 4 | | --- | --- | | Third Quarter 2025 Highlights | 5 | | FINANCIALS | | | Key Financial Data | 7 | | Condensed Consolidated Statements of Income (Loss) | 8 | | Condensed Consolidated Balance Sheets | 9 | | Debt Summ ...

Core Viewpoint - Industrial Logistics Properties Trust (ILPT) reported quarterly funds from operations (FFO) of $0.26 per share, matching the Zacks Consensus Estimate and showing an increase from $0.12 per share a year ago [1] - The company posted revenues of $110.94 million for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.68% and showing a year-over-year increase from $108.94 million [2] Financial Performance - The FFO for the previous quarter was expected to be $0.21 per share, and the actual result was $0.21, indicating no surprise [1] - Over the last four quarters, ILPT has not surpassed consensus FFO estimates [1] - The current consensus FFO estimate for the upcoming quarter is $0.18 on revenues of $112.03 million, and for the current fiscal year, it is $0.86 on revenues of $447.73 million [7] Stock Performance - ILPT shares have increased approximately 60.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 16.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Industry Outlook - The REIT and Equity Trust - Other industry, to which ILPT belongs, is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in estimate revisions, which can impact ILPT's performance [5]

Property Portfolio and Leasing Activity - As of September 30, 2025, the company owned 411 properties with approximately 59,890,000 rentable square feet and a 94.1% occupancy rate[84]. - The average effective rental rate per square foot for all properties increased to $7.88 for the three months ended September 30, 2025, compared to $7.69 for the same period in 2024[89]. - During the nine months ended September 30, 2025, the company completed rent resets for approximately 204,000 square feet at its Hawaii Properties, resulting in rental rates that were 29.1% higher than prior rates[94]. - The company entered into new and renewal leases totaling 3,122,000 square feet during the nine months ended September 30, 2025, with a weighted average rental rate change of 19.5%[93]. - As of September 30, 2025, FedEx and Amazon accounted for 22.7% and 8.1% of total leased square feet, representing 28.3% and 6.8% of total annualized rental revenues, respectively[96]. - 4.0% of annualized rental revenues, amounting to $17,435, is scheduled to expire by September 30, 2026, with 5.9% of rentable square feet currently vacant[97]. - The company’s portfolio includes properties in 39 states, with a weighted average remaining lease term of 7.4 years[86]. - The company anticipates strong demand for industrial properties due to long-term growth in e-commerce and supply chain resiliency, despite economic uncertainties[85]. Financial Performance - Rental income for the three months ended September 30, 2025, was $110,184, an increase of 2.1% compared to $107,969 for the same period in 2024[99]. - Net operating income for the three months ended September 30, 2025, was $86,417, reflecting a 2.9% increase from $83,986 in 2024[99]. - Total operating expenses decreased by 0.9% to $23,767 for the three months ended September 30, 2025, compared to $23,983 in 2024[99]. - General and administrative expenses increased by 46.3% to $10,586 in the three months ended September 30, 2025, up from $7,237 in 2024[99]. - Net loss attributable to common shareholders for the three months ended September 30, 2025, was $21,565, a decrease of 13.7% from $24,990 in 2024[99]. - Rental income for the nine months ended September 30, 2025, was $328,856, a slight decrease of 0.9% from $331,744 in 2024[107]. - Net loss for the nine months ended September 30, 2025, was $91,994, a reduction of 10.5% compared to $102,788 in 2024[107]. - Net loss per share attributable to common shareholders for the nine months ended September 30, 2025, was $0.98, improving from $1.09 in 2024[107]. - NOI for the three months ended September 30, 2025, was $86,950, compared to $84,709 for the same period in 2024, reflecting a 2.9% increase[118]. - FFO attributable to common shareholders for the three months ended September 30, 2025, was $14,947, up from $8,063 in 2024, representing an 85.5% increase[121]. Expenses and Impairments - The company recognized a loss on impairment of real estate amounting to $6,081 during the three months ended September 30, 2025[104]. - General and administrative expenses increased primarily due to accrued incentive management fees of $4,716 for the 2025 period[111]. - The company recognized a loss on impairment of real estate of $6,081 during the 2025 period[112]. - Interest expense decreased by 14.2% to $63,470 for the three months ended September 30, 2025, compared to $73,936 in 2024[99]. - The company recognized a $5,070 loss on extinguishment of debt related to the repayment of the ILPT Floating Rate Loan during the nine months ended September 30, 2025[134]. Cash Flow and Debt Management - Cash and cash equivalents at the end of the nine months ended September 30, 2025, were $177,704, down from $264,931 in 2024[123]. - The company had two properties under agreements to sell for an aggregate sales price of $51,650 as of October 28, 2025[127]. - The company expects to maintain sufficient cash flow to meet operating and capital obligations for the foreseeable future[125]. - As of September 30, 2025, the company had an aggregate principal amount of $4,218,799 in indebtedness, including a $1,160,000 mortgage loan and a $700,000 mortgage loan[133]. - The Mountain Floating Rate Loan has a principal balance of $1,400,000 with an annual interest rate of 5.87%, maturing on March 9, 2026[143]. - The weighted average interest rate for fixed rate debt as of September 30, 2025, was 5.21%, with total annual interest expense of $146,851[148]. - The company has a $1,160,000 fixed rate mortgage loan with an annual interest rate of 6.40%, maturing in July 2030[134]. - The company maintains a minimum consolidated net worth requirement of at least $250,000 and liquidity of at least $15,000 under the terms of its $650,000 mortgage loan[136]. Distributions and Joint Ventures - During the nine months ended September 30, 2025, the company declared and paid regular quarterly distributions totaling $4,640 to common shareholders[138]. - The unconsolidated joint venture made cash distributions of $990 for each of the three months ended September 30, 2025, and 2024[131]. - The company holds a 22% equity interest in an unconsolidated joint venture as of September 30, 2025[84]. Interest Rate Sensitivity - A one percentage point increase in interest rates would result in a decrease in annual earnings per share of $1.48, assuming the weighted average interest rate of the Mountain Floating Rate Loan increases to 6.87%[146]. - Interest expense decreased due to the repayment of the ILPT Floating Rate Loan in June 2025[113]. - The company expects to spend $4,988 in committed but unspent tenant-related obligations over the next 12 months[129].

Financial Performance - The net loss attributable to common shareholders was $21.6 million, or $0.33 per diluted share, compared to a net loss of $24.99 million in Q3 2024[15]. - Normalized FFO attributable to common shareholders was $17.4 million, or $0.26 per diluted share, reflecting an increase from $13.8 million in Q3 2024[15]. - The net loss attributable to common shareholders for Q3 2025 was $21,565, compared to a loss of $24,990 in Q3 2024, showing an improvement of 13.0%[20]. - Total rental income for the three months ended September 30, 2025, was $68.528 million, with a net loss attributable to common shareholders of $21.565 million[51]. - The net loss for the three months ended September 30, 2025, was $22,764,000, compared to a net loss of $26,737,000 for the same period in 2024, indicating an improvement[66]. - The net loss for the three months ended September 30, 2025, was $163 thousand, a significant improvement from a net loss of $944 thousand in the same period of 2024[68]. - For the three months ended September 30, 2025, the net loss attributable to common shareholders was $21,565,000, compared to a net loss of $24,101,000 for the same period in 2024, representing a 10.5% improvement[78]. Revenue and Income - Rental income for Q3 2025 was $110,936, a 1.0% increase from $108,945 in Q3 2024[20]. - The annualized rental income for the three months ended September 30, 2025, was $42,126,000, slightly down from $42,189,000 in the same period of 2024[66]. - For the three months ended September 30, 2025, rental income was $19,163 thousand, an increase from $18,206 thousand in the same period of 2024, representing a growth of 5.3%[68]. - For the nine months ended September 30, 2025, rental income totaled $57,471 thousand, up from $55,626 thousand in the same period of 2024, indicating a growth of 3.3%[68]. Expenses and Liabilities - Total expenses increased to $81,687 in Q3 2025 from $74,678 in Q3 2024, representing a 9.0% rise[20]. - The total liabilities as of September 30, 2025, were $4.3 billion, with total equity at $913.6 million[19]. - The total interest expense for the nine months ended September 30, 2025, was $201,197,000, compared to $220,797,000 for the same period in 2024, showing a reduction of 8.9%[78]. - The total liabilities of the consolidated joint venture were $1,749,362,000 as of September 30, 2025, compared to $1,757,801,000 at the end of 2024[62]. Cash and Assets - The company ended the quarter with $83.2 million in cash on hand, excluding restricted cash, to meet operating and debt service requirements[15]. - Cash and cash equivalents decreased to $83,173 as of September 30, 2025, from $131,706 as of December 31, 2024, a drop of 36.8%[21]. - The company had approximately $39 billion in assets under management as of September 30, 2025, indicating strong management capabilities in the commercial real estate sector[80]. - The total assets decreased to $5,218,846 as of September 30, 2025, from $5,406,331 as of December 31, 2024, a decline of 3.5%[21]. Leasing Activity - In Q3 2025, Industrial Logistics Properties Trust (ILPT) executed approximately 836,000 square feet of leasing activity at weighted average rental rates that were 22.4% higher than prior rates for the same space[15]. - The percentage of properties leased was 94.5% as of September 30, 2025, up from 94.4% in the same period last year[40]. - New leases generated a 14.0% increase in GAAP rent, while renewals saw a 25.8% increase[43]. - Leasing activity for the quarter included 839,000 square feet, with a weighted average lease term of 7.8 years[51]. Property and Tenant Information - As of September 30, 2025, approximately 76% of annualized rental revenues were generated from investment grade tenants or their subsidiaries[15]. - The top 10 tenants contributed 46.7% of total annualized rental revenues, with FedEx Corporation alone accounting for 28.3%[46]. - The occupancy rate for the Mountain Industrial REIT LLC properties was reported at 100% as of September 30, 2025, with a total of 94 properties across 27 states[62]. - Major tenants accounted for 80.3% of annualized rental revenues, with FedEx Corporation contributing 54.9%[56]. Capital Expenditures and Investments - Capital expenditures for Q3 2025 totaled $6,737, compared to $5,151 in Q2 2025, indicating a 30.8% increase[35]. - The company reported capital expenditures of $15,847,000 for the nine months ended September 30, 2025, compared to $11,842,000 for the same period in 2024, indicating an increase of 33.0%[79]. Financial Metrics - The weighted average interest rate on debt was 5.43% as of September 30, 2025[23]. - The net debt to total gross assets ratio was 69.3% as of September 30, 2025, slightly down from 69.9% in the previous quarter[32]. - The company's cash basis NOI for the three months ended September 30, 2025, was $84,749 thousand, compared to $82,503 thousand in the same period of 2024, marking an increase of 2.7%[75]. - Same property NOI for the three months ended September 30, 2025, was $86,417 thousand, up from $83,986 thousand in the same period of 2024, reflecting a growth of 2.9%[75].

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]