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 ...

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 March 31, 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. Emp ...

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 ...

Property Management and Leasing - As of September 30, 2022, the company owned 413 consolidated properties with approximately 59,962,000 rentable square feet, achieving a leasing rate of 99.2%[112] - The average effective rental rate per square foot for all properties increased to $6.96 for the three months ended September 30, 2022, compared to $6.22 for the same period in 2021[122] - During the three months ended September 30, 2022, the company signed new leases for 543,000 square feet with a weighted average rental rate change of 280.7%[124] - The company completed rent resets for approximately 194,000 square feet of land in Hawaii at rates approximately 36.8% higher than prior rates[126] - The company has a weighted average remaining lease term of approximately 8.9 years across its consolidated properties[112] - As of September 30, 2022, the total annualized rental revenues amount to $419,981,000, with a weighted average remaining lease term of 8.6 years[127] - Federal Express Corporation accounts for 22.0% of total rentable square feet and 29.6% of annualized rental revenues, with a remaining lease term of 7.3 years[129] - Hawaii Properties contribute approximately 28.5% of annualized rental revenues, with scheduled rent resets totaling $23,121,000 as of September 30, 2022[130] - The company expects to renew or extend leases at Mainland Properties, which represent approximately 71.5% of annualized rental revenues, due to tenants' capital investments[129] - The company employs a tenant review process to assess creditworthiness, which includes evaluating information provided by tenants and third-party sources[133] Financial Performance - Rental income for Q3 2022 was $53,357, an increase of $767 or 1.5% compared to $52,590 in Q3 2021[135] - Net operating income for Q3 2022 was $41,014, a decrease of $109 or 0.3% compared to $41,123 in Q3 2021[135] - Total operating expenses for Q3 2022 were $12,343, an increase of $876 or 7.6% compared to $11,467 in Q3 2021[135] - General and administrative expenses increased by 92.7% to $9,110 in Q3 2022 from $4,728 in Q3 2021, primarily due to higher business management fees[141] - Interest expense rose significantly to $(89,739) in Q3 2022 from $(9,084) in Q3 2021, reflecting higher average interest rates and outstanding debt[142] - Net loss attributable to common shareholders for Q3 2022 was $(45,627), compared to net income of $18,307 in Q3 2021[145] - The company recorded a significant loss on impairment of real estate amounting to $100,747 in 2022, impacting overall financial performance[1] - Net loss attributable to common shareholders was $(195,680) for the nine months ended September 30, 2022, compared to a net income of $56,475 in 2021, reflecting a change of $(252,155)[1] - The company recorded a loss on equity securities of $5,758, reflecting realized losses from certain equity securities acquired during the MNR acquisition[1] Debt and Financing - The company entered into a $1,235,000 Floating Rate Loan secured by 104 properties, maturing in October 2024, with an interest rate capped at 2.25%[117] - The weighted average annual interest rate payable under the Floating Rate Loan was 5.62% as of September 30, 2022[174] - The company has aggregate floating rate debt of $2,635,000, with an annual interest expense of $155,003 as of September 30, 2022[215] - A one percentage point increase in floating interest rates would raise the annual floating rate interest expense to $181,288, impacting earnings per share by $0.40[216] - The company plans to prepay up to $280,000 of the Floating Rate Loan after March 2023, and the Fixed Rate Loan can be prepaid in full or part at any time, subject to a premium[177] - The company intends to explore refinancing alternatives, property sales, or sales of equity interests in joint ventures to manage its debt as maturities approach[191] - As of September 30, 2022, the company had an aggregate principal amount of $4,295,842 of debt, scheduled to mature between 2022 and 2038[181] Cash Flow and Distributions - Cash and cash equivalents at the end of the nine months ended September 30, 2022, were $126,669,000, up from $44,093,000 at the end of the same period in 2021[171] - The company reduced its quarterly cash distribution rate to $0.01 per share as of July 14, 2022[173] - The company reduced its quarterly dividend to $0.01 per common share to enhance liquidity until the long-term financing plan for the MNR acquisition is completed[194] - During the nine months ended September 30, 2022, the company paid quarterly cash distributions to shareholders totaling $43,821[193] Market and Economic Conditions - The company anticipates that market conditions will influence future rental rates and lease negotiations, particularly for Hawaii Properties[130] - Economic conditions in areas where properties are located may decline, reducing demand for leasing industrial space and impacting financial results[230] - Delays in the anticipated sales of former MNR properties are due to current market conditions, which may result in lower sale prices than carrying values[228] Risks and Challenges - The ability to grow the business and increase distributions largely depends on acquiring properties that generate rents exceeding capital costs, which may not be achievable[228] - Existing and future derivative contracts may expose the company to additional risks, including counterparty credit risk, which could lead to unforeseen losses[228] - The competitive advantages the company believes it has may not materialize, and competition may increase, affecting market position[234] - The company may face challenges in maintaining good relations with significant tenants, which could affect occupancy rates and rental income[228]

Industrial Logistics Properties Trust (NASDAQ:ILPT) Q2 2022 Earnings Conference Call July 27, 2022 10:00 AM ET Company Participants Kevin Barry - Director, IR Yael Duffy - President & COO Richard Siedel - CFO & Treasurer Conference Call Participants Bryan Maher - B. Riley Securities Michael Carroll - RBC Capital Markets William Catherwood - BTIG Connor Siversky - Berenberg Mitchell Germain - JMP Securities Operator Good morning, and welcome to the Industrial Logistics Properties Trust Second Quarter 2022 Ea ...

Property and Acquisition Details - As of June 30, 2022, the company owned 412 consolidated properties with approximately 59.7 million rentable square feet, achieving an occupancy rate of 98.9%[104] - The company completed the acquisition of MNR on February 25, 2022, acquiring 124 Class A industrial properties with a total of approximately 25.7 million rentable square feet for an aggregate value of $3.73 billion[105] - The acquisition of MNR on February 25, 2022, included 124 Class A properties with a total of approximately 25,745,000 rentable square feet and a remaining weighted average lease term of eight years[123] - The aggregate value of the consideration paid in the MNR merger was $3,734,485, which included the assumption of $323,432 in mortgage debt[123] - Major tenants include Federal Express Corporation, which accounts for 21.8% of leased square feet and 29.2% of annualized rental revenues[116] Financial Performance - Rental income increased to $56,888, up 8.6% from $52,388 in the same period last year, primarily due to acquisition activities and leasing activity[130] - Net operating income rose to $45,395, reflecting a 10.8% increase compared to $41,499 in the prior year[130] - The company recorded a significant loss on impairment of real estate amounting to $100,747, impacting the overall financial results[137] - General and administrative expenses increased by 129.3% to $9,709, driven by higher business management fees related to acquisition activities[136] - Interest expense surged to $77,548, attributed to higher average interest rates on larger outstanding balances due to acquisitions[139] - The net loss attributable to common shareholders was $(143,539), compared to a net income of $18,831 in the previous year[142] - The company reported a loss on equity securities of $9,450 related to the acquisition of MNR[140] - Total operating expenses were $20,328, a 71.8% increase from $11,830 in the same quarter last year[130] - The company experienced a decrease in equity in earnings of investees, down 14.2% to $1,610 compared to $1,876 in the prior year[141] - The company reported a net loss per common share of $(2.30) for the six months ended June 30, 2022, compared to earnings of $0.58 per share in 2021[1] Lease and Rental Activity - The average effective rental rate per square foot for all properties increased to $7.26 for the three months ended June 30, 2022, compared to $6.29 for the same period in 2021, reflecting a year-over-year increase of 15.5%[110] - During the three months ended June 30, 2022, the company entered into new leases totaling 2.65 million square feet, with a weighted average rental rate change of 104.7%[112] - Approximately 2.1% of total leased square feet and 2.2% of total annualized rental revenues are scheduled to expire by December 31, 2022[114] - The company has a weighted average remaining lease term of 8.8 years across its properties as of June 30, 2022[115] - The company intends to seek rents equal to or higher than historical rents during lease renewals or extensions, although market conditions may impact this ability[121] Economic and Market Conditions - The company faces potential economic challenges due to rising interest rates and concerns about a recession, which could impact tenant lease renewals and rental payments[107] - Hawaii Properties represented approximately 29.0% of annualized rental revenues as of June 30, 2022, with future rental rates dependent on prevailing market conditions[118] - The company’s Hawaii Properties have historically seen revenue increases due to rent resets, but future increases depend on market conditions[118] Debt and Financing - The company has an aggregate principal amount of $4,451,429 of debt scheduled to mature between 2022 and 2038[173] - The consolidated joint venture assumed an aggregate $323,432 of former MNR mortgages secured by 11 properties[172] - The company plans to sell additional equity interests in its consolidated joint venture to reduce outstanding indebtedness[174] - The company has $2,785,158 in aggregate floating rate debt, which includes a $1,400,000 Floating Rate Loan and a $1,385,158 Bridge Loan[206] - The annual interest expense for the outstanding floating rate debt at June 30, 2022, is $114,799, which would increase to $142,651 with a one percentage point increase in interest rates[207] - The company purchased interest rate caps with a SOFR strike rate of 2.70% for the Bridge Loan and 3.40% for the Floating Rate Loan to hedge against interest rate risks[206] Cash Flow and Distributions - The net cash provided by operating activities for the six months ended June 30, 2022, was $80,931 thousand, an increase from $62,607 thousand in the same period of 2021[164] - The company reported net cash used in investing activities of $(3,416,022) thousand for the six months ended June 30, 2022, primarily due to the acquisition of MNR[164] - The company reduced its quarterly cash distribution rate to $0.01 per share, ensuring compliance with REIT distribution requirements[166] - During the six months ended June 30, 2022, the company paid quarterly cash distributions to shareholders totaling $43,167[185] - A quarterly distribution of $0.01 per common share, approximately $650, is expected to be paid to shareholders on or about August 18, 2022[186]

Financial Data and Key Metrics Changes - Total portfolio same property cash basis NOI for Q1 2022 increased by 3.1% year-over-year, with a negative impact of approximately 200 basis points due to a pending lease termination in Hawaii [31] - Adjusted EBITDA for Q1 2022 was $52.5 million, reflecting a 30% year-over-year increase [32] - First quarter normalized FFO was $27.6 million, or $0.42 per share, affected by $0.03 due to the sale of six properties and $0.03 from lease termination charges [33] Business Line Data and Key Metrics Changes - Same property cash basis NOI in Hawaii increased by 8.5%, while on the Mainland it grew by 1.9% [32] - First quarter leasing activity totaled 885,000 square feet with a 27.9% roll-up over prior rents, marking the 10th consecutive quarter of double-digit growth [23] - New leases in Hawaii averaged a 61% roll-up in rent, while a renewal in Northern New Jersey achieved a 29% roll-up [24] Market Data and Key Metrics Changes - New US industrial leasing activity surpassed 200 million square feet for the sixth consecutive quarter, with national average asking rents reaching $7.89 per square foot, a 15.2% increase year-over-year [12] - The national vacancy rate dropped to a record low of 3.3%, with Hawaii's industrial market vacancy rate at 1.4% [12][13] Company Strategy and Development Direction - The acquisition of Monmouth Real Estate Investment Corporation added 126 e-commerce-focused properties, enhancing tenant and geographic diversity [10] - The company plans to reduce leverage through selling additional equity interests in the joint venture and marketing 30 legacy Monmouth properties for sale [37] - The focus is on capitalizing on the strong demand environment and robust industry fundamentals to drive long-term growth [38] Management's Comments on Operating Environment and Future Outlook - Management believes the acquisition will enhance growth prospects despite macroeconomic challenges [11] - The company is optimistic about exiting the bridge loan by the end of Q3 2022 through various financing strategies [45] - Management expressed confidence in the portfolio's performance and the successful integration of Monmouth properties [63] Other Important Information - The company has a weighted average remaining lease term of approximately nine years, with over 75% of revenues coming from investment-grade rated tenants [20][19] - The integration of Monmouth properties is complete, with significant contributions from the RMR Group [15] Q&A Session Summary Question: Clarification on higher expenses in Q1 - Management noted seasonal one-time expenses but confirmed no specific impact from the Hawaii tenant lease [41][42] Question: Impact of interest rates on Monmouth transaction outlook - Management remains confident in exiting the bridge loan by Q3 through various strategies [45] Question: Details on lease termination charge in Hawaii - The lease termination was necessary to secure a new investment-grade tenant, increasing the profile of the Hawaii portfolio [55] Question: Differences between properties being sold and those retained - The properties for sale are representative of the larger portfolio, with a mix of non-FedEx and FedEx properties in strong markets [47] Question: Expectations for new joint venture partner valuation - Current discussions indicate no re-trading on valuation, with expectations to maintain similar valuation as the first partner [61]

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 March 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 or Other Jurisdiction of Incorporation or Organ ...