Part I [Business](index=5&type=section&id=Item%201.%20Business) ILPT is a REIT owning 411 industrial and logistics properties, externally managed, focusing on growth through rent increases and acquisitions Portfolio Overview as of December 31, 2023 | Metric | Value | | :--- | :--- | | Total Properties | 411 | | Total Rentable Square Feet | 59,951,000 | | Locations | 39 states | | Mainland Properties (sq. ft.) | 43,222,000 (185 properties) | | Hawaii Properties (sq. ft.) | 16,729,000 (226 properties) | | Mainland Properties (% of Annualized Rental Revenues) | 72.1% | | Hawaii Properties (% of Annualized Rental Revenues) | 27.9% | - On February 25, 2022, ILPT acquired Monmouth Real Estate Investment Corporation (MNR), adding **124 industrial properties** and forming a consolidated joint venture for **95 of these properties**[24](index=24&type=chunk) Top Tenants by Annualized Rental Revenues as of December 31, 2023 | Tenant | % of Total Leased Sq. Ft. | % of Total Annualized Rental Revenues | | :--- | :--- | :--- | | FedEx Corporation / FedEx Ground Package System, Inc. | 21.7% | 29.7% | | Amazon.com Services, Inc. / Amazon.com Services LLC | 7.7% | 6.7% | | Home Depot U.S.A., Inc. | 1.6% | 2.1% | | UPS Supply Chain Solutions, Inc. | 1.3% | 1.6% | | American Tire Distributors, Inc. | 1.2% | 1.5% | | Restoration Hardware, Inc. | 2.0% | 1.5% | - The company's internal growth strategy relies on increasing rents, particularly through periodic fair market value resets for its Hawaii Properties, which have historically resulted in significant rent increases due to limited land availability[26](index=26&type=chunk) - ILPT has no employees and is externally managed by The RMR Group LLC (RMR), which provides day-to-day operations, management, and administrative services[48](index=48&type=chunk)[50](index=50&type=chunk) - To maintain its REIT status, the company must annually distribute at least **90% of its REIT taxable income**, influencing its financing policies that rely on future financing, property sales, and equity/debt issuance to fund growth and repay debt[44](index=44&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from high debt, leverage, market conditions, tenant concentration, external management, and dividend limitations Debt and Leverage as of December 31, 2023 | Metric | Value | | :--- | :--- | | Consolidated Debt | ~$4.3 billion | | Ratio of Consolidated Net Debt to Total Gross Assets | 68.4% | - High interest rates have significantly increased borrowing costs, adversely affecting cash flows, the ability to service debt, and the ability to pay shareholder distributions[185](index=185&type=chunk)[187](index=187&type=chunk) - The company has significant tenant concentration, with **FedEx** and **Amazon** representing **29.7%** and **6.7%** of total annualized rental revenues, respectively, as of December 31, 2023, where a default by these tenants could materially and adversely affect the company[177](index=177&type=chunk) - The quarterly cash distribution rate on common shares was reduced to **$0.01 per share** in 2022 to enhance liquidity and may remain at this level for an indefinite period or be eliminated, subject to REIT tax requirements and Board discretion[202](index=202&type=chunk)[205](index=205&type=chunk) - The company is dependent on its external manager, RMR, for all operations, and this relationship, along with cross-ownership and shared executives, may create conflicts of interest[208](index=208&type=chunk)[211](index=211&type=chunk)[213](index=213&type=chunk) - Failure to maintain qualification as a REIT would result in significant adverse consequences, including being subject to federal and state income taxes, which would reduce cash available for distributions[232](index=232&type=chunk)[233](index=233&type=chunk) [Unresolved Staff Comments](index=48&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the Securities and Exchange Commission - None[241](index=241&type=chunk) [Cybersecurity](index=49&type=section&id=Item%201C.%20Cybersecurity) The company relies on its external manager, RMR, for cybersecurity risk management, with Audit Committee oversight - ILPT relies on its manager, RMR, to identify and manage material risks from cybersecurity threats, with the Audit Committee overseeing these matters[243](index=243&type=chunk) - The company states it has not been materially affected and does not believe it is reasonably likely to be materially affected by risks from cybersecurity threats[243](index=243&type=chunk) [Properties](index=49&type=section&id=Item%202.%20Properties) ILPT's portfolio consists of 411 properties totaling 59.95 million square feet across 39 states, including a significant joint venture Properties by State as of December 31, 2023 (Top 5 by Undepreciated Carrying Value) | State | Number of Properties | Undepreciated Carrying Value ($ thousands) | Depreciated Carrying Value ($ thousands) | Encumbrances ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Hawaii | 226 | $637,049 | $609,808 | $862,930 | | Ohio | 20 | $448,931 | $407,112 | $332,539 | | Georgia | 8 | $393,931 | $375,536 | $201,780 | | Florida | 15 | $360,722 | $340,803 | $296,191 | | Indiana | 9 | $348,421 | $322,604 | $236,897 | - The total undepreciated carrying value of the **411 properties** is approximately **$5.17 billion**, with total encumbrances of approximately **$4.33 billion**[246](index=246&type=chunk) [Legal Proceedings](index=51&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently a party to any litigation that it expects to have a material adverse effect on its business - The company is not currently party to any litigation expected to have a material adverse effect on its business[248](index=248&type=chunk) [Mine Safety Disclosures](index=51&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[249](index=249&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=52&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) ILPT common shares trade on Nasdaq, with a current $0.01 quarterly distribution, though future distributions are not guaranteed - The company's common shares trade on the Nasdaq under the symbol **ILPT**[252](index=252&type=chunk) - The current cash distribution rate is **$0.01 per share per quarter**, but future distributions are not guaranteed and depend on various factors, including financial performance, REIT requirements, and debt limitations[253](index=253&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=52&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition, highlighting increased rental income and NOI, but notes economic uncertainties, high interest rates, and leverage constraints Leasing Activity for the Year Ended December 31, 2023 | Metric | New Leases | Renewals | Total | | :--- | :--- | :--- | :--- | | Square Feet Leased (thousands) | 870 | 4,112 | 4,982 | | Weighted Avg. Rental Rate Change | 33.9% | 17.6% | 19.9% | | Weighted Avg. Lease Term (years) | 8.9 | 7.2 | 7.5 | - In 2023, rent resets for approximately **420,000 square feet** of land at Hawaii Properties resulted in rental rates that were **29.6% higher** than prior rates[261](index=261&type=chunk) Consolidated Results of Operations (Year Ended Dec 31) | Metric ($ thousands) | 2023 | 2022 | | :--- | :--- | :--- | | Rental income | $437,338 | $388,151 | | Net operating income (NOI) | $339,093 | $306,672 | | Net loss attributable to common shareholders | $(107,989) | $(226,723) | | Net loss per share | $(1.65) | $(3.47) | Normalized FFO (Year Ended Dec 31) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Normalized FFO attributable to common shareholders ($ thousands) | $31,541 | $76,218 | | Normalized FFO per share | $0.48 | $1.17 | - As of December 31, 2023, the company had cash and cash equivalents of **$112.3 million**, and its principal debt obligations totaled approximately **$4.3 billion**[295](index=295&type=chunk)[302](index=302&type=chunk) - Critical accounting estimates include the allocation of purchase prices for real estate investments and the assessment of carrying values and potential impairments of long-lived assets, which require significant management judgment[317](index=317&type=chunk)[318](index=318&type=chunk)[320](index=320&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate changes, managed with interest rate caps on its $2.635 billion floating-rate debt Debt Composition as of December 31, 2023 | Debt Type | Principal Balance ($ thousands) | | :--- | :--- | | Floating Rate Debt | $2,635,000 | | Fixed Rate Debt | $1,690,944 | - The company uses interest rate caps to hedge its exposure to interest rate volatility on its floating-rate debt, with the ILPT Floating Rate Loan having a SOFR strike rate of **2.25%** and the Floating Rate Loan having a SOFR strike rate of **3.40%**[326](index=326&type=chunk) - A hypothetical one percentage point increase in interest rates would increase the company's annual floating rate interest expense by approximately **$26.7 million**, from **$165.0 million** to **$191.7 million**, before considering the mitigating effects of the existing interest rate caps[327](index=327&type=chunk) [Financial Statements and Supplementary Data](index=66&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section includes the company's audited consolidated financial statements for FY2023 and supplementary data - The information required by this item, including audited consolidated financial statements and supplementary data, is included in Item 15 of the Annual Report on Form 10-K[333](index=333&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=66&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[334](index=334&type=chunk) [Controls and Procedures](index=66&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective as of December 31, 2023 - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[335](index=335&type=chunk) - Management's assessment, based on the COSO framework, concluded that the company's internal control over financial reporting was effective as of December 31, 2023[338](index=338&type=chunk) [Other Information](index=67&type=section&id=Item%209B.%20Other%20Information) During the fourth quarter of 2023, none of the company's Trustees or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No Trustees or officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the fourth quarter of 2023[340](index=340&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Executive Compensation, Security Ownership, and Certain Relationships](index=68&type=section&id=Items%2010%2C%2011%2C%2012%2C%2013%20and%2014) Information for Items 10-14 is incorporated by reference from the 2024 Proxy Statement, detailing governance, compensation, and equity plans - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference to the company's definitive Proxy Statement for the 2024 Annual Meeting of Shareholders[7](index=7&type=chunk)[345](index=345&type=chunk)[346](index=346&type=chunk) Equity Compensation Plan Information as of December 31, 2023 | Plan Category | Securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price | Securities remaining available for future issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by securityholders - 2018 Plan | None | None | 3,156,613 | Part IV [Exhibits and Financial Statement Schedules](index=69&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section provides an index of consolidated financial statements, schedules, and exhibits, including the auditor's report - This section contains the index to financial statements, schedules, and exhibits[354](index=354&type=chunk) - A significant tenant, **FedEx**, leased **39.5%** of the company's gross real estate assets as of December 31, 2023[355](index=355&type=chunk) [Form 10-K Summary](index=71&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports that there is no Form 10-K summary - None[361](index=361&type=chunk)

Leasing Activity - In Q4 2023, Industrial Logistics Properties Trust executed 1,534,000 square feet of total leasing, achieving a weighted average rental rate that was 19.7% higher than prior rents for the same space [6]. - The portfolio's lease renewals accounted for approximately 80% of leasing activity, indicating strong tenant retention and demand for high-quality warehouse and distribution properties [12]. - The company signed 276 new leases during the quarter, a significant increase from 64 new leases in the prior quarter, reflecting a 331.3% quarter-over-quarter growth [35]. - Renewal leases totaled 1,220, up from 694 in the previous quarter, indicating a 76.0% increase in renewal activity [35]. - The percentage change in GAAP rent for new leases was 65.9%, compared to a decrease of 15.7% in the previous quarter, showing a strong recovery in rental rates [35]. - The percentage of properties leased was 98.8% as of December 31, 2023, down from 99.1% in the previous year [34]. - As of December 31, 2023, the occupancy rate was 98.8%, slightly down from 98.9% in the previous quarter [35]. - The weighted average remaining lease term for expiring leases is 7.0 years, with 391 leases expiring in total [38]. Financial Performance - The net loss attributable to common shareholders was $31.2 million, or $0.48 per share, compared to a net loss of $26.1 million in the previous quarter [12]. - Normalized FFO attributable to common shareholders was $8.1 million, or $0.12 per share, consistent with the previous quarter [12]. - Adjusted EBITDAre increased by 4.9% to $83.1 million compared to Q4 2022 [12]. - Same property NOI and same property Cash Basis NOI increased by 3.3% and 4.0%, respectively, compared to the prior year [12]. - Rental income for Q4 2023 was $108,895,000, a 2.4% increase from $106,339,000 in Q4 2022 [17]. - Total expenses decreased to $76,061,000 in Q4 2023 from $77,608,000 in Q4 2022, reflecting a reduction of 2.0% [17]. - The company reported a net loss of $149,719,000 for the year ended December 31, 2023, compared to a net loss of $286,841,000 for the year ended December 31, 2022 [17]. - The total assets decreased to $5,563,675,000 as of December 31, 2023, from $5,676,166,000 as of December 31, 2022 [18]. - The net loss attributable to common shareholders for Q4 2023 was $31,240,000, consistent with the loss of $31,043,000 in Q4 2022 [17]. - The company reported a Cash Basis NOI of $81,453,000 for the three months ended December 31, 2023, compared to $79,931,000 for the same period in 2022, reflecting a growth of 1.9% [65]. Debt and Liquidity - Total gross assets were reported at $5,961.1 million, while total liabilities stood at $4,401.9 million [16]. - The net debt to total gross assets ratio was 68.4% as of December 31, 2023, slightly down from 69.7% a year earlier [24]. - The company aims to focus on organic cash flow growth and reducing leverage while building liquidity in 2024 [7]. - The company sold one property in Asheville, NC for $4.3 million and another in Mesquite, TX for $20.9 million, with proceeds retained to preserve liquidity [12]. - Total debt (principal) stood at $1,740,944,000 as of December 31, 2023, compared to $1,722,070,000 in the previous year, reflecting a slight increase of about 1.3% [48]. - The weighted average interest rate on secured debt was 4.22% as of December 31, 2023, with a total principal balance of $538,700,000 [53]. Investment and Asset Management - Approximately 77% of annualized rental revenues are derived from investment-grade tenants or their subsidiaries [10]. - 76.9% of the company's rental revenues come from investment-grade rated tenants or subsidiaries of investment-grade rated entities [36]. - The company has 40 leases expiring in 2024, representing 8.6% of total leased square feet, with annualized rental revenues of $24,239,000 [38]. - The company has a total of 411 properties, with a total square footage of 59,951,000 [35]. - The joint venture, Mountain Industrial REIT LLC, reported total assets of $3,026,194,000 as of December 31, 2023, down from $3,100,448,000 in 2022, a decrease of approximately 2.4% [48]. - ILPT owns 316 wholly owned properties, comprising approximately 16.7 million rentable square feet in Hawaii and 90 properties in 34 other states [86]. - The Mountain Industrial REIT LLC joint venture owns 94 mainland properties with approximately 21.0 million rentable square feet located in 27 states [88]. Market Position and Outlook - ILPT is included in 117 market indices, comprising more than 1% of several key indices as of December 31, 2023 [58]. - Forward-looking statements reflect ILPT's current expectations and are subject to risks and uncertainties that may cause actual results to differ materially [92]. - ILPT's ability to maintain high occupancy at its properties is critical for sustaining cash flows and meeting distribution obligations [92]. - The company emphasizes the importance of managing leverage and liquidity in the current economic environment [91].

Industrial Logistics Properties Trust (NASDAQ:ILPT) Q3 2023 Earnings Conference Call October 26, 2023 11:00 AM ET Company Participants Stephen Colbert - Director of Investor Relations Yael Duffy - President and Chief Operating Officer Tiffany Sy - Chief Financial Officer and Treasurer Conference Call Participants Bryan Maher - B. Riley Mitch Germain - JMP Securities Operator Good morning, and welcome to Industrial Logistics Properties Trust Third Quarter 2023 Financial Results Conference Call. [Operator Ins ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-38342 INDUSTRIAL LOGISTICS PROPERTIES TRUST (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-38342 INDUSTRIAL LOGISTICS PROPERTIES TRUST (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Empl ...

Industrial Logistics Properties Trust (NASDAQ:ILPT) Q1 2023 Earnings Conference Call April 26, 2023 10:00 AM ET Company Participants Stephen Colbert - Director, Investor Relations Yael Duffy - President & Chief Operating Officer Brian Donley - Chief Financial Officer & Treasurer Conference Call Participants Bryan Maher - B. Riley FBR Mitch Germain - JMP Securities DG Balachandran - RBC Capital Markets Operator Hello and welcome to the Industrial Logistics Properties Trust First Quarter 2023 Financial Result ...

PART I: Financial Information [Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28unaudited%29) This section presents the unaudited condensed consolidated financial statements for Industrial Logistics Properties Trust as of March 31, 2023, and for the three-month periods ended March 31, 2023, and 2022. It includes the balance sheets, statements of comprehensive income (loss), statements of shareholders' equity, statements of cash flows, and accompanying notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a slight decrease in total assets from $5.68 billion at year-end 2022 to $5.63 billion as of March 31, 2023. Total liabilities remained relatively stable at approximately $4.35 billion, while total equity decreased from $1.33 billion to $1.29 billion, primarily due to a net loss and distributions Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total real estate properties, net | $4,873,569 | $4,902,641 | | Cash and cash equivalents | $61,250 | $48,261 | | **Total assets** | **$5,634,976** | **$5,676,166** | | Mortgages and notes payable, net | $4,245,651 | $4,244,501 | | **Total liabilities** | **$4,348,801** | **$4,345,395** | | **Total equity** | **$1,286,175** | **$1,330,771** | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) For the three months ended March 31, 2023, the company reported a net loss of $35.5 million, a significant increase from the $9.8 million net loss in the same period of 2022. The net loss attributable to common shareholders was $24.8 million, or ($0.38) per share, compared to a loss of $6.5 million, or ($0.10) per share, in Q1 2022. The increased loss was driven by higher interest and operating expenses following acquisition activities Q1 2023 vs. Q1 2022 Performance (in thousands, except per share data) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Rental income | $110,258 | $71,375 | | Total expenses | $79,149 | $45,163 | | Interest expense | ($70,771) | ($40,999) | | Net loss | ($35,546) | ($9,787) | | Net loss attributable to common shareholders | ($24,809) | ($6,514) | | Net loss per share (basic and diluted) | ($0.38) | ($0.10) | [Condensed Consolidated Statements of Shareholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) Total equity decreased from $1.33 billion at the end of 2022 to $1.29 billion at March 31, 2023. The decrease was primarily driven by a net loss of $35.5 million and common distributions of $0.7 million, partially offset by share-based compensation - Total equity attributable to common shareholders declined from **$790.7 million** to **$758.6 million** during the first quarter of 2023[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was $1.2 million in Q1 2023, a sharp decrease from $56.6 million in Q1 2022, mainly due to higher interest payments. Investing activities provided $9.4 million, compared to a $3.4 billion use of cash in the prior-year period which included the MNR acquisition. Financing activities used $6.2 million, a reversal from the $3.8 billion provided in Q1 2022 which was used to fund the acquisition Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,167 | $56,639 | | Net cash provided by (used in) investing activities | $9,435 | ($3,442,485) | | Net cash (used in) provided by financing activities | ($6,223) | $3,777,878 | | **Increase in cash, cash equivalents and restricted cash** | **$4,379** | **$392,032** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed disclosure on the company's accounting policies and activities. Key details include the composition of the real estate portfolio, joint venture structures, lease information including tenant and geographic concentrations, a breakdown of outstanding indebtedness and related interest rate caps, and details on related party transactions with its manager, RMR - As of March 31, 2023, the portfolio consisted of 413 consolidated properties totaling approximately **60.0 million** rentable square feet[24](index=24&type=chunk) - For Q1 2023, subsidiaries of FedEx Corporation and Amazon.com, Inc. accounted for **31.6%** and **6.8%** of rental income, respectively. Properties in Hawaii accounted for **27.4%** of rental income[40](index=40&type=chunk)[41](index=41&type=chunk) - The company has two floating-rate loans totaling **$2.635 billion**, with interest rate caps to manage exposure to rising SOFR rates[70](index=70&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's operating results for Q1 2023 compared to Q1 2022, highlighting the impact of the MNR acquisition on revenue and expenses. The discussion covers property operations, leasing activity, non-GAAP financial measures (NOI and FFO), liquidity, capital resources, and debt covenants. Management also acknowledges macroeconomic risks from inflation and rising interest rates [Overview and Property Operations](index=17&type=section&id=Overview%20and%20Property%20Operations) As of March 31, 2023, ILPT's consolidated portfolio of 413 properties was 98.7% leased, with a weighted average remaining lease term of 8.4 years. The company executed 1.14 million square feet of new and renewal leases in Q1 2023 with a weighted average rental rate increase of 15.1%. Management notes that rising interest rates and inflation have increased the cost of capital and pose a risk to financial conditions Portfolio Occupancy | Metric | As of March 31, 2023 | As of March 31, 2022 | | :--- | :--- | :--- | | Total properties | 413 | 412 | | Total rentable square feet (thousands) | 59,983 | 59,736 | | Percent leased | 98.7% | 98.9% | Q1 2023 Leasing Activity | Metric | Total | | :--- | :--- | | Square feet leased (thousands) | 1,143 | | Weighted average rental rate change | 15.1% | | Weighted average lease term (years) | 8.9 | - Leases representing **2.9%** of total annualized rental revenues are scheduled to expire by the end of 2023[84](index=84&type=chunk) - The company faces risks from inflationary pressures and rising interest rates, which have increased its cost of capital and could negatively impact tenant financial health and property values[78](index=78&type=chunk) [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Comparing Q1 2023 to Q1 2022, rental income rose 54.5% to $110.3 million, primarily due to the MNR acquisition. However, this was offset by a 74.5% increase in real estate taxes, a 98.7% increase in depreciation and amortization, and a 72.6% rise in interest expense, all largely attributable to the acquisition. Consequently, the net loss widened from $9.8 million to $35.5 million Consolidated Results Comparison (in thousands) | Line Item | Q1 2023 | Q1 2022 | % Change | | :--- | :--- | :--- | :--- | | Rental income | $110,258 | $71,375 | 54.5% | | Total operating expenses | $25,785 | $16,208 | 59.1% | | Net operating income (NOI) | $84,473 | $55,167 | 53.1% | | Depreciation and amortization | $45,457 | $22,878 | 98.7% | | Interest expense | ($70,771) | ($40,999) | 72.6% | | Net loss | ($35,546) | ($9,787) | N/M | - The significant increases in rental income, operating expenses, depreciation, and interest expense are primarily a result of the acquisition of Monmouth Real Estate Investment Corporation (MNR) in February 2022[96](index=96&type=chunk)[97](index=97&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) [Non-GAAP Financial Measures](index=22&type=section&id=Non-GAAP%20Financial%20Measures) The company reported Net Operating Income (NOI) of $84.5 million for Q1 2023, up 53.1% from $55.2 million in Q1 2022. Normalized Funds From Operations (Normalized FFO) attributable to common shareholders was $7.9 million, or $0.12 per share, a significant decrease from $27.6 million, or $0.42 per share, in Q1 2022. The decline in Normalized FFO was primarily due to higher interest expense NOI Reconciliation (in thousands) | Line Item | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net loss | ($35,546) | ($9,787) | | Add back: Interest, G&A, D&A, etc. | $120,019 | $64,954 | | **NOI** | **$84,473** | **$55,167** | Normalized FFO Reconciliation (in thousands, except per share data) | Line Item | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net loss attributable to common shareholders | ($24,809) | ($6,514) | | Adjustments (D&A, etc.) | $32,725 | $14,616 | | **FFO attributable to common shareholders** | **$7,916** | **$8,102** | | Acquisition and transaction related costs | — | $18,673 | | **Normalized FFO attributable to common shareholders** | **$7,916** | **$27,603** | | **Normalized FFO per share** | **$0.12** | **$0.42** | [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2023, the company had $61.3 million in cash and cash equivalents. The primary source of liquidity is rent from tenants. The company has $4.28 billion in debt, with significant floating-rate loans maturing in 2024. Management believes operating cash flow will be sufficient to meet obligations for the next 12 months but notes that the REIT distribution requirement limits capital retention. The company is in compliance with all debt covenants - The company's principal sources of funds are rents from tenants. As of March 31, 2023, **77.6%** of annualized rental revenues came from investment-grade tenants or Hawaii land leases[114](index=114&type=chunk) - The company has two major floating-rate loans: a **$1.235 billion** loan maturing in October 2024 and a **$1.4 billion** loan (in a consolidated JV) maturing in March 2024. Both have extension options[118](index=118&type=chunk)[119](index=119&type=chunk) - As of March 31, 2023, the company believes it was in compliance with all debt covenants, including a minimum consolidated net worth of **$250 million** and liquidity of at least **$15 million** required by one of its mortgage loans[132](index=132&type=chunk) Q1 2023 Capital Expenditures (in thousands) | Category | Amount | | :--- | :--- | | Tenant improvements and leasing costs | $2,040 | | Building improvements | $370 | | Development, redevelopment and other | $2,521 | | **Total** | **$4,931** | [Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk on its $2.64 billion of floating-rate debt. This risk is partially managed through interest rate caps. A hypothetical 1% increase in interest rates would increase annual interest expense by approximately $26.7 million, excluding the impact of the caps. The company also has $1.65 billion in fixed-rate debt, whose fair value is sensitive to market rate changes Floating Rate Debt Summary (as of March 31, 2023) | Debt | Principal Balance | Interest Rate | | :--- | :--- | :--- | | ILPT Floating Rate Loan | $1,235,000,000 | 6.18% | | Floating Rate Loan (JV) | $1,400,000,000 | 6.17% | | **Total** | **$2,635,000,000** | | - To hedge against rising SOFR rates, the company purchased an interest rate cap with a **2.25%** strike rate for the ILPT Floating Rate Loan and a **3.40%** strike rate for the JV's Floating Rate Loan[140](index=140&type=chunk) - A hypothetical immediate one percentage point increase in interest rates would change the fair value of the company's fixed-rate debt by approximately **$26.7 million**[146](index=146&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the President, COO, and CFO, evaluated the company's disclosure controls and procedures and concluded that they were effective as of March 31, 2023. There were no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of the end of the period, the company's management concluded that its disclosure controls and procedures are effective[147](index=147&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[148](index=148&type=chunk) PART II: Other Information [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors from those previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022 - There have been no material changes to the risk factors from those provided in the 2022 Annual Report[159](index=159&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the quarter ended March 31, 2023, the company purchased a total of 976 of its own common shares at a weighted average price of $3.33 per share. These purchases were made to satisfy tax withholding obligations for certain former officers and employees of RMR in connection with vested share awards Issuer Purchases of Equity Securities (Q1 2023) | Calendar Month | Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2023 | 582 | $3.50 | | March 2023 | 394 | $3.07 | | **Total** | **976** | **$3.33** | [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the company's organizational documents, officer certifications (Rule 13a-14(a) and Section 1350), and XBRL data files - The exhibits filed include certifications by the President & COO and the CFO & Treasurer regarding the accuracy and completeness of the report[162](index=162&type=chunk)

Industrial Logistics Properties Trust (NASDAQ:ILPT) Q4 2022 Earnings Conference Call February 15, 2023 10:00 AM ET Company Participants Kevin Barry - Director, Investor Relations Yael Duffy - President & Chief Operating Officer Brian Donley - Chief Financial Officer & Treasurer Conference Call Participants Bryan Maher - B. Riley FBR Mitch Germain - JMP Securities Michael Carroll - RBC Capital Markets Operator Good morning, and welcome to the Industrial Logistics Properties Trust Fourth Quarter 2022 Financia ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-38342 INDUSTRIAL LOGISTICS PROPERTIES TRUST (Exact Name of Registrant as Specified in Its Charter) Maryland 82-2809631 (State of Organization) (I.R.S. Employer Identification No. ...

Industrial Logistics Properties Trust (NASDAQ:ILPT) Q3 2022 Earnings Conference Call October 26, 2022 10:00 AM ET Company Participants Kevin Barry - Director, Investor Relations Yael Duffy - President & Chief Operating Officer Brian Donley - Chief Financial Officer & Treasurer Conference Call Participants Bryan Maher - B. Riley Securities Mitchell Germain - JMP Securities Tom Catherwood - BTIG Aditi Balachandran - RBC Capital Markets Operator Good morning, and welcome to the Industrial Logistics Properties ...