[Quarterly Results](index=3&type=section&id=QUARTERLY%20RESULTS) This section presents Industrial Logistics Properties Trust's (ILPT) first quarter 2024 financial and operational performance, highlighting strong fundamentals and key achievements [Industrial Logistics Properties Trust Announces First Quarter 2024 Financial Results](index=4&type=section&id=Industrial%20Logistics%20Properties%20Trust%20Announces%20First%20Quarter%202024%20Financial%20Results) ILPT reported strong Q1 2024 financial results, driven by robust operating fundamentals, increased key metrics, and active leasing - Operating fundamentals were strong, with key financial metrics increasing year-over-year and sequentially[8](index=8&type=chunk) - Completed nearly two million square feet of leasing, including rent resets, at weighted average rental rates **38.3% higher** than prior rates for the same space[8](index=8&type=chunk) - Robust renewal activity accounted for **1.8 million square feet** of leasing[8](index=8&type=chunk) - ILPT declared a quarterly distribution on its common shares on April 11, 2024, payable on or about May 16, 2024[10](index=10&type=chunk) - ILPT is a REIT focused on owning and operating industrial and logistics properties, with a portfolio of approximately **59.9 million rentable square feet** as of March 31, 2024[12](index=12&type=chunk) - Approximately **77% of ILPT's annualized rental revenues** are from investment-grade tenants or subsidiaries of investment-grade rated entities[12](index=12&type=chunk) [First Quarter 2024 Highlights](index=5&type=section&id=First%20Quarter%202024%20Highlights) Q1 2024 highlights include **99.0% occupancy**, **38.3% rent increases** from leasing, stable cash flows, and the Mountain JV's **$1.4 billion loan extension** - Portfolio occupancy grew to **99.0%**, an increase of **20 basis points** quarter-over-quarter[14](index=14&type=chunk) - Executed **1,981,000 square feet** of total leasing, including rent resets, at weighted average rental rates **38.3% higher** than prior rates for the same space[14](index=14&type=chunk) - Lease renewals accounted for **90% of leasing activity**, demonstrating strong tenant retention[14](index=14&type=chunk) - Stable cash flows with **76.6% of annualized rental revenues** generated from leases with investment grade tenants (or their subsidiaries) and Hawaii land leases, with a weighted average lease term of **8.0 years**[14](index=14&type=chunk) Q1 2024 Financial Results Highlights | Metric | Value | Change vs. Q1 2023 | | :----------------------------------------- | :-------------- | :----------------- | | Net loss attributable to common shareholders | $(23.4) million | - | | Per diluted share | $(0.36) | - | | Normalized FFO attributable to common shareholders | $9.5 million | - | | Per diluted share | $0.14 | - | | Adjusted EBITDAre | $84.4 million | +4.6% | | Same property NOI | - | +2.0% | | Same property Cash Basis NOI | - | +2.3% | - Mountain JV exercised the first of its three, one-year options to extend the maturity date of its **$1.4 billion floating rate loan**, purchasing a one-year interest rate cap for **$26.2 million** with a SOFR strike rate of **3.04%**[14](index=14&type=chunk) [Financials](index=6&type=section&id=FINANCIALS) This section provides a comprehensive overview of ILPT's financial performance, including key income statement, balance sheet, debt, and capital expenditure data [Key Financial Data](index=7&type=section&id=Key%20Financial%20Data) This section presents ILPT's key financial metrics across multiple quarters, including income statement, per share data, and balance sheet trends Selected Income Statement Data (in thousands) | Metric | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | | :----------------------------------------- | :--------- | :--------- | :--------- | :--------- | :--------- | | Rental income | $112,235 | $108,895 | $110,142 | $108,043 | $110,258 | | Net loss | $(33,902) | $(41,402) | $(36,191) | $(36,580) | $(35,546) | | Net loss attributable to common shareholders | $(23,403) | $(31,240) | $(26,112) | $(25,828) | $(24,809) | | NOI | $86,052 | $84,887 | $85,309 | $84,424 | $84,473 | | Cash Basis NOI | $82,196 | $81,453 | $81,643 | $80,827 | $80,441 | | Adjusted EBITDAre | $84,400 | $83,072 | $83,194 | $81,331 | $80,712 | | FFO attributable to common shareholders | $9,450 | $7,799 | $7,945 | $7,375 | $7,916 | | Normalized FFO attributable to common shareholders | $9,450 | $8,086 | $7,945 | $7,594 | $7,916 | | CAD attributable to common shareholders | $11,928 | $8,948 | $10,505 | $9,803 | $10,182 | Per Common Share Data (basic and diluted) | Metric | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | | :----------------------------------------- | :-------- | :--------- | :-------- | :-------- | :-------- | | Net loss attributable to common shareholders | $(0.36) | $(0.48) | $(0.40) | $(0.40) | $(0.38) | | FFO attributable to common shareholders | $0.14 | $0.12 | $0.12 | $0.11 | $0.12 | | Normalized FFO attributable to common shareholders | $0.14 | $0.12 | $0.12 | $0.12 | $0.12 | | CAD attributable to common shareholders | $0.18 | $0.14 | $0.16 | $0.15 | $0.16 | Selected Balance Sheet Data (in thousands) | Metric | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | | :---------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total gross assets | $5,956,536 | $5,961,129 | $6,000,494 | $5,997,715 | $5,939,557 | | Total assets | $5,527,569 | $5,563,675 | $5,634,315 | $5,662,080 | $5,634,976 | | Total liabilities | $4,405,069 | $4,401,896 | $4,416,177 | $4,400,791 | $4,348,801 | | Total equity | $1,122,500 | $1,161,779 | $1,218,138 | $1,261,289 | $1,286,175 | [Condensed Consolidated Statements of Income (Loss)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) This section details the consolidated income statement for Q1 2024 versus Q1 2023, showing increased rental income and reduced net loss attributable to common shareholders Condensed Consolidated Statements of Income (Loss) (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | YoY Change | | :----------------------------------------- | :-------------------------------- | :-------------------------------- | :--------- | | Rental income | $112,235 | $110,258 | +1.8% | | Total expenses | $77,449 | $79,149 | -2.1% | | Interest expense | $(73,230) | $(70,771) | +3.5% | | Net loss | $(33,902) | $(35,546) | -4.6% | | Net loss attributable to common shareholders | $(23,403) | $(24,809) | -5.7% | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents consolidated balance sheets as of March 31, 2024, and December 31, 2023, indicating slight decreases in total assets and equity, with stable liabilities Condensed Consolidated Balance Sheets (in thousands) | Metric | March 31, 2024 | December 31, 2023 | QoQ Change | | :---------------- | :------------- | :---------------- | :--------- | | Total assets | $5,527,569 | $5,563,675 | -0.65% | | Total liabilities | $4,405,069 | $4,401,896 | +0.07% | | Total equity | $1,122,500 | $1,161,779 | -3.4% | [Debt Summary](index=10&type=section&id=Debt%20Summary) This section summarizes ILPT's debt as of March 31, 2024, detailing principal balances, interest rates, and collateral, with a **5.35% weighted average interest rate** Debt Summary (as of March 31, 2024, in thousands) | Entity | Type | Secured By | Interest Rate (1) | Principal Balance | | :---------- | :------------------------ | :--------------------------------------- | :---------------- | :---------------- | | ILPT | Floating rate - interest only | 69 mainland and 35 Hawaii properties | 6.18% | $1,235,000 | | ILPT | Fixed rate - interest only | 186 Hawaii properties | 4.31% | $650,000 | | ILPT | Fixed rate - interest only | 17 mainland properties | 4.42% | $700,000 | | Mountain JV | Floating rate - interest only | 82 mainland properties | 5.81% | $1,400,000 | | Mountain JV | Fixed rate - interest only | Four mainland properties | 6.25% | $91,000 | | Mountain JV | Fixed rate - amortizing | One mainland property | 3.67% | $11,045 | | Mountain JV | Fixed rate - amortizing | One mainland property | 4.14% | $12,601 | | Mountain JV | Fixed rate - amortizing | One mainland property | 4.02% | $28,026 | | Mountain JV | Fixed rate - amortizing | One mainland property | 4.13% | $39,198 | | Mountain JV | Fixed rate - amortizing | One mainland property | 3.10% | $23,989 | | Mountain JV | Fixed rate - amortizing | One mainland property | 2.95% | $38,730 | | Mountain JV | Fixed rate - amortizing | One mainland property | 4.27% | $43,269 | | Mountain JV | Fixed rate - amortizing | One mainland property | 3.25% | $48,620 | | | **Weighted average / total** | | **5.35%** | **$4,321,478** | - Mountain JV exercised the first of its three, one-year options to extend the maturity date of its **$1.4 billion floating rate loan**, purchasing a one-year interest rate cap for **$26.2 million** with a SOFR strike rate of **3.04%**[24](index=24&type=chunk) [Debt Maturity Schedule](index=11&type=section&id=Debt%20Maturity%20Schedule) This section illustrates ILPT's debt maturity profile as of March 31, 2024, detailing significant maturities in 2024 and beyond, by secured floating and fixed rate debt Principal Debt Maturities (in millions) | Year | Secured floating rate debt | Secured fixed rate debt | Secured floating rate debt of consolidated joint venture | | :-------- | :------------------------- | :---------------------- | :------------------------------------------------------- | | 2024 | $1,235.0 | $1,593.3 | - | | 2025 | - | $18.8 | - | | 2026 | - | $13.7 | - | | 2027 | - | - | $1,400.0 | | 2028 | - | $19.5 | - | | Thereafter | - | $20.2 | - | - Mountain JV exercised the first of its three, one-year options to extend the maturity date of its secured floating rate loan[27](index=27&type=chunk) [Leverage and Coverage Ratios](index=12&type=section&id=Leverage%20and%20Coverage%20Ratios) This section provides ILPT's key leverage and coverage ratios across quarters, showing a slight increase in net debt to total gross assets and stable Adjusted EBITDAre to interest expense Leverage Ratios | Metric | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | | :------------------------------------ | :-------- | :--------- | :-------- | :-------- | | Net debt / total gross assets | 68.6% | 68.4% | 68.5% | 68.8% | | Net debt / gross book value of real estate assets | 71.7% | 71.3% | 71.7% | 72.2% | | Net debt / total market capitalization | 88.7% | 88.0% | 90.9% | 90.6% | | Secured debt / total assets | 78.2% | 77.8% | 76.9% | 76.6% | | Variable rate debt / net debt | 64.5% | 64.6% | 64.1% | 63.9% | Coverage Ratios | Metric | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | | :-------------------------------- | :-------- | :--------- | :-------- | :-------- | | Net debt / annualized Adjusted EBITDAre | 12.1× | 12.3x | 12.3x | 12.7x | | Adjusted EBITDAre / interest expense | 1.2x | 1.1× | 1.1x | 1.1× | [Capital Expenditures Summary](index=13&type=section&id=Capital%20Expenditures%20Summary) This section summarizes ILPT's Q1 2024 capital expenditures, showing a decrease compared to prior quarters, driven by lower building improvements and no development activities Capital Expenditures Summary (in thousands) | Metric | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | | :-------------------------------------- | :-------- | :--------- | :-------- | :-------- | :-------- | | Tenant improvements and leasing costs | $2,571 | $2,619 | $1,241 | $2,498 | $2,040 | | Building improvements | $802 | $2,406 | $2,720 | $1,283 | $370 | | Recurring capital expenditures | $3,373 | $5,025 | $3,961 | $3,781 | $2,410 | | Development, redevelopment and other activities | - | $381 | $1,314 | $3,870 | $2,521 | | Total capital expenditures | $3,373 | $5,406 | $5,275 | $7,651 | $4,931 | [Portfolio Information](index=14&type=section&id=PORTFOLIO%20INFORMATION) This section details ILPT's property portfolio, covering same property results, occupancy, leasing, tenant characteristics, and lease expiration schedules [Same Property Results](index=15&type=section&id=Same%20Property%20Results) This section details ILPT's same property performance for Q1 2024 versus Q1 2023, showing increases in rental income, NOI, and Cash Basis NOI, with stable occupancy Same Property Results (Three Months Ended March 31) | Metric | 3/31/2024 | 3/31/2023 | % Change | | :--------------- | :-------- | :-------- | :------- | | Properties | 411 | 411 | 0% | | Square feet (thousands) | 59,893 | 59,951 | -0.1% | | Percent leased | 99.0% | 98.7% | +0.3% | | Rental income (thousands) | $112,235 | $110,195 | +1.85% | | NOI (thousands) | $86,085 | $84,427 | +2.0% | | Cash Basis NOI (thousands) | $82,229 | $80,395 | +2.3% | [Occupancy and Leasing Summary](index=16&type=section&id=Occupancy%20and%20Leasing%20Summary) This section details ILPT's Q1 2024 occupancy and leasing activities, highlighting strong renewals, significant rent increases, and a **6.2-year weighted average lease term** Occupancy and Leasing Activity (as of and for the Three Months Ended March 31) | Metric | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | | :----------------------------------------- | :-------- | :--------- | :-------- | :-------- | :-------- | | Percentage leased | 99.0% | 98.8% | 98.9% | 99.1% | 98.7% | | Leasing Activity (Sq. Ft. in thousands): | | | | | | | New leases | 90 | 276 | 94 | 494 | 36 | | Renewals | 1,785 | 1,220 | 694 | 1,091 | 1,107 | | Rent resets | 106 | 38 | - | 382 | - | | % Change in GAAP Rent (Weighted average by sq. ft.) | 38.3% | 19.7% | 13.5% | 29.6% | 15.1% | | Weighted Average Lease Term by Sq. Ft. (Years) | 6.2 | 6.7 | 4.1 | 8.9 | 8.9 | - New leases saw a **48.1% change in GAAP rent**, renewals **38.5%**, and rent resets **27.5%** for Q1 2024[39](index=39&type=chunk) [Tenant Credit Characteristics and Concentration](index=17&type=section&id=Tenant%20Credit%20Characteristics%20and%20Concentration) This section outlines ILPT's tenant credit quality and concentration as of March 31, 2024, showing significant annualized rental revenues from investment-grade tenants, with **FedEx Corporation** as the largest tenant Tenant Credit Characteristics (% of Total Annualized Rental Revenues) | Tenant Credit Characteristics | % of Total Annualized Rental Revenues | | :---------------------------------------------------------------- | :------------------------------------ | | Investment grade rated | 18.4% | | Subsidiaries of investment grade rated parent entities | 36.9% | | Other leased Hawaii lands | 21.3% | | Subtotal investment grade rated, subsidiaries of investment grade rated parent entities and other leased Hawaii lands | 76.6% | | Other unrated or non-investment grade | 23.4% | Top Tenants with 1% or More of Total Annualized Rental Revenues (as of March 31, 2024) | Tenant | % of Total Annualized Rental Revenues | | :--------------------------------------- | :------------------------------------ | | FedEx Corporation / FedEx Ground Package System, Inc. | 28.9% | | Amazon.com Services, Inc. / Amazon.com Services LLC | 6.7% | | Home Depot U.S.A., Inc. | 2.2% | | American Tire Distributors, Inc. | 1.6% | | UPS Supply Chain Solutions, Inc. | 1.5% | | Restoration Hardware, Inc. | 1.5% | | Servco Pacific, Inc. | 1.4% | | Par Pacific Holdings Inc. | 1.2% | | DHL Group | 1.2% | | TD SYNNEX Corporation | 1.1% | | Berkshire Hathaway Inc. | 1.0% | [Portfolio Lease Expiration and Reset Schedules](index=18&type=section&id=Portfolio%20Lease%20Expiration%20and%20Reset%20Schedules) This section details ILPT's lease expiration and rent reset schedules as of March 31, 2024, showing **6.8% of leased square feet** and **4.6% of annualized rental revenues** expire in 2024, with a **7.0-year weighted average remaining lease term** Lease Expiration Schedule (as of March 31, 2024, in thousands) | Period/Year | No. of Leases | Leased Square Feet Expiring | % of Total Leased Square Feet Expiring | Annualized Rental Revenues Expiring | % of Total Annualized Rental Revenues Expiring | | :---------- | :------------ | :-------------------------- | :------------------------------------- | :---------------------------------- | :--------------------------------------------- | | 2024 | 32 | 4,017 | 6.8% | $20,420 | 4.6% | | 2025 | 34 | 4,355 | 7.3% | $26,598 | 6.0% | | 2026 | 32 | 4,174 | 7.0% | $29,664 | 6.7% | | 2027 | 38 | 8,738 | 14.7% | $53,275 | 12.1% | | 2028 | 41 | 6,066 | 10.2% | $45,274 | 10.3% | | Thereafter | 213 | 31,963 | 54.0% | $265,595 | 60.3% | | Total | 390 | 59,313 | 100.0% | $440,826 | 100.0% | - Weighted average remaining lease term is **7.0 years by square feet** and **8.0 years by annualized rental revenues**[43](index=43&type=chunk) Scheduled Rent Resets at Hawaii Properties (in thousands) | Period/Year | Reset sq. ft. | Annualized rental revenues | | :---------- | :------------ | :------------------------- | | 2024 | - | - | | 2025 | 204 | $1,002 | | 2026 | 154 | $1,315 | | 2027 | 89 | $795 | | 2028 | - | - | | Thereafter | 2,940 | $19,338 | [Key Financial Data by Investment Portfolio](index=19&type=section&id=Key%20Financial%20Data%20by%20Investment%20Portfolio) This section breaks down key financial data for ILPT's wholly-owned properties (Mainland and Hawaii) and its consolidated joint venture, detailing individual performance metrics Portfolio Overview (as of and for the Three Months Ended March 31, 2024, in thousands) | Portfolio | Ownership % | Properties | Sq. ft. | Occupancy % | Total gross assets | Total debt (principal) | | :--------------------------- | :---------- | :--------- | :------ | :---------- | :----------------- | :--------------------- | | ILPT Wholly Owned Properties - Mainland | 100% | 90 | 22,119 | 98.9% | $1,814,875 | $1,722,070 | | ILPT Wholly Owned Properties - Hawaii | 100% | 226 | 16,729 | 99.0% | $727,437 | $862,930 | | Mountain Industrial REIT LLC | 61% | 94 | 20,981 | 99.2% | $3,154,781 | $1,736,478 | Selected Income Statement Data (Three Months Ended March 31, 2024, in thousands) | Portfolio | Rental income | NOI | Cash Basis NOI | Adjusted EBITDAre | Normalized FFO attributable to common shareholders | CAD attributable to common shareholders | | :--------------------------- | :------------ | :------ | :------------- | :---------------- | :------------------------------------------------- | :-------------------------------------- | | ILPT Wholly Owned Properties - Mainland | $37,987 | $29,622 | $28,661 | $27,285 | $(3,565) | $952 | | ILPT Wholly Owned Properties - Hawaii | $31,447 | $23,433 | $21,844 | $22,493 | $10,506 | $9,292 | | Mountain Industrial REIT LLC | $42,363 | $32,792 | $31,486 | $30,147 | $(166) | $(855) | Key Ratios (Annualized Cash Basis NOI / total gross assets) | Portfolio | Ratio | | :--------------------------- | :------ | | ILPT Wholly Owned Properties - Mainland | 6.3% | | ILPT Wholly Owned Properties - Hawaii | 12.0% | | Mountain Industrial REIT LLC | 4.0% | [Joint Ventures](index=20&type=section&id=JOINT%20VENTURES) This section provides detailed financial and operational information for ILPT's consolidated and unconsolidated joint ventures, highlighting their property portfolios, financial performance, and debt structures [Consolidated Joint Venture - Mountain Industrial REIT LLC](index=21&type=section&id=Consolidated%20Joint%20Venture%20-%20Mountain%20Industrial%20REIT%20LLC) This section details financial and operational information for Mountain Industrial REIT LLC, a **61% owned consolidated joint venture**, including major tenants, lease expirations, balance sheet, and operating results - ILPT owns a **61% interest** in Mountain Industrial REIT LLC, which is consolidated in ILPT's financial statements[52](index=52&type=chunk) - The joint venture owns **94 properties** across **27 states**, totaling approximately **20,981 thousand square feet**[52](index=52&type=chunk) Major Tenants by % of Total Annualized Rental Revenues Expiring (as of March 31, 2024) | Tenant | % of Total Annualized Rental Revenues Expiring | | :--------------------------------------- | :--------------------------------------------- | | FedEx Corporation / FedEx Ground Package System, Inc. | 1.5% (2024) | | Amazon.com Services, Inc. / Amazon.com Service | 7.1% (2025) | | Home Depot U.S.A., Inc. | 6.5% (2026) | | Berkshire Hathaway Inc. | 13.4% (2027) | | Techtronic Industries Company Limited | 10.4% (2028) | Consolidated Joint Venture Balance Sheets (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :-------------------------------- | :------------- | :---------------- | | Total real estate properties, net | $2,677,182 | $2,696,385 | | Total assets | $2,991,343 | $3,026,194 | | Mortgage and notes payable, net | $1,735,458 | $1,736,426 | | Total liabilities | $1,771,327 | $1,774,380 | Operating Information of the Consolidated Joint Venture (100%, Three Months Ended March 31, in thousands) | Metric | 2024 | 2023 | | :---------------- | :-------- | :-------- | | Rental income | $42,363 | $43,066 | | Total expenses | $40,329 | $41,811 | | Interest expense | $(30,393) | $(28,472) | | Net loss | $(26,953) | $(27,518) | | Normalized FFO | $(270) | $1,033 | | CAD | $(1,400) | $(2,752) | | Adjusted EBITDAre | $30,147 | $29,519 | [Unconsolidated Joint Venture - The Industrial Fund REIT LLC](index=25&type=section&id=Unconsolidated%20Joint%20Venture%20-%20The%20Industrial%20Fund%20REIT%20LLC) This section overviews The Industrial Fund REIT LLC, an unconsolidated joint venture with **22% ILPT ownership**, detailing its properties, investment, operating results, and secured debt - ILPT holds a **22% ownership interest** in The Industrial Fund REIT LLC, an unconsolidated joint venture[59](index=59&type=chunk) - The joint venture owns **18 properties** across **12 states**, totaling approximately **11,726 thousand square feet**[59](index=59&type=chunk) - ILPT's investment in the unconsolidated joint venture is **$116,093 thousand** as of March 31, 2024[59](index=59&type=chunk) Operating Information (Three Months Ended March 31, in thousands) | Metric | 2024 | 2023 | | :--------------- | :-------- | :-------- | | Rental income | $19,025 | $17,411 | | Total expenses | $14,027 | $13,846 | | Interest expense | $(6,302) | $(5,197) | | Net loss | $(1,172) | $(1,573) | | Distributions received | $990 | $990 | Secured Debt (as of March 31, 2024, in thousands) | Type | Interest Rate | Maturity Date | Principal Balance | | :------------------------ | :------------ | :------------ | :---------------- | | Mortgage notes payable (secured by one property in Florida) | 6.96% | 11/01/2028 | $65,000 | | Mortgage notes payable (secured by six properties in four states) | 5.30% | 10/01/2027 | $123,700 | | Mortgage notes payable (secured by 11 properties in eight states) | 3.33% | 11/07/2029 | $350,000 | | **Weighted average / total** | **4.22%** | | **$538,700** | [Appendix](index=26&type=section&id=APPENDIX) This section provides detailed calculations and reconciliations of non-GAAP financial measures, including NOI, Cash Basis NOI, EBITDA, FFO, Normalized FFO, and CAD [Calculation and Reconciliation of NOI and Cash Basis NOI](index=27&type=section&id=Calculation%20and%20Reconciliation%20of%20NOI%20and%20Cash%20Basis%20NOI) This section details the calculation and reconciliation of NOI and Cash Basis NOI from net loss for Q1 2024 and prior quarters, illustrating non-cash item adjustments Calculation of NOI and Cash Basis NOI (in thousands) | Metric | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | | :-------------------------------------- | :--------- | :--------- | :--------- | :--------- | :--------- | | Rental income | $112,235 | $108,895 | $110,142 | $108,043 | $110,258 | | Real estate taxes | $(15,861) | $(13,560) | $(14,926) | $(15,100) | $(16,467) | | Other operating expenses | $(10,322) | $(10,448) | $(9,907) | $(8,519) | $(9,318) | | **NOI** | **$86,052** | **$84,887** | **$85,309** | **$84,424** | **$84,473** | | Non-cash straight line rent adjustments | $(3,489) | $(3,068) | $(3,414) | $(3,355) | $(3,762) | | Lease value amortization | $(367) | $(366) | $(252) | $(242) | $(270) | | **Cash Basis NOI** | **$82,196** | **$81,453** | **$81,643** | **$80,827** | **$80,441** | - The reconciliation from net loss to NOI and Cash Basis NOI involves adding back items like interest expense, depreciation and amortization, and general and administrative expenses, while subtracting interest and other income[63](index=63&type=chunk) [Reconciliation of NOI to Same Property NOI and Calculation of Same Property Cash Basis NOI](index=28&type=section&id=Reconciliation%20of%20NOI%20to%20Same%20Property%20NOI%20and%20Calculation%20of%20Same%20Property%20Cash%20Basis%20NOI) This section reconciles total NOI to Same Property NOI and calculates Same Property Cash Basis NOI for Q1 2024 and 2023, adjusting for non-same properties and non-cash rent items Reconciliation of NOI to Same Property NOI and Calculation of Same Property Cash Basis NOI (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | NOI | $86,052 | $84,473 | | Less: NOI of properties not included in same property results | $33 | $(46) | | **Same property NOI** | **$86,085** | **$84,427** | | Less: Non-cash straight line rent adjustments | $(3,489) | $(3,762) |\ | Less: Lease value amortization | $(367) | $(270) | | **Same property Cash Basis NOI** | **$82,229** | **$80,395** | [Calculation of EBITDA, EBITDAre and Adjusted EBITDAre](index=29&type=section&id=Calculation%20of%20EBITDA%2C%20EBITDAre%20and%20Adjusted%20EBITDAre) This section details the calculation of EBITDA, EBITDAre, and Adjusted EBITDAre for Q1 2024 and prior quarters, starting from net loss and applying Nareit-defined adjustments Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (in thousands) | Metric | 3/31/2024 | 12/31/2023 | 9/30/2023 | | :-------------------------------------- | :--------- | :--------- | :--------- | | Net loss | $(33,902) | $(41,402) | $(36,191) | | Plus: interest expense | $73,230 | $72,979 | $72,941 | | Plus: income tax expense (benefit) | $33 | $(9) | $51 | | Plus: depreciation and amortization | $43,577 | $44,450 | $43,912 | | **EBITDA** | **$82,938** | **$76,018** | **$80,713** | | Equity in (earnings) losses of unconsolidated joint venture | $(1,723) | $6,521 | $(719) | | Share of EBITDAre from unconsolidated joint venture | $2,846 | $2,717 | $2,724 | | **EBITDAre** | **$84,061** | **$82,474** | **$82,718** | | Plus: general and administrative expense paid in common shares | $339 | $311 | $476 | | **Adjusted EBITDAre** | **$84,400** | **$83,072** | **$83,194** | [Calculation of FFO, Normalized FFO and CAD](index=30&type=section&id=Calculation%20of%20FFO%2C%20Normalized%20FFO%20and%20CAD) This section provides the calculation of FFO, Normalized FFO, and CAD attributable to common shareholders for Q1 2024 and prior quarters, detailing adjustments from net loss Calculation of FFO and Normalized FFO (in thousands) | Metric | 3/31/2024 | 12/31/2023 | 9/30/2023 | | :----------------------------------------- | :-------- | :--------- | :-------- | | Net loss attributable to common shareholders | $(23,403) | $(31,240) | $(26,112) | | Depreciation and amortization | $43,577 | $44,450 | $43,912 | | Share of FFO from unconsolidated joint venture | $1,459 | $1,367 | $1,446 | | FFO adjustments attributable to noncontrolling interest | $(10,460) | $(10,517) | $(10,582) |\ | **FFO attributable to common shareholders** | **$9,450** | **$7,799** | **$7,945** | | **Normalized FFO attributable to common shareholders** | **$9,450** | **$8,086** | **$7,945** | Calculation of CAD (in thousands) | Metric | 3/31/2024 | 12/31/2023 | 9/30/2023 | | :----------------------------------------- | :-------- | :--------- | :-------- | | Normalized FFO attributable to common shareholders | $9,450 | $8,086 | $7,945 | | Plus (minus): Non-cash interest expense | $13,859 | $12,883 | $12,884 | | Non-cash revenues | $(3,856) | $(3,434) | $(3,666) | | Recurring capital expenditures | $(3,373) | $(5,025) | $(3,961) | | Principal amortization | $(4,466) | $(4,425) | $(4,385) | | Distributions from unconsolidated joint venture | $990 | $990 | $990 | | **CAD attributable to common shareholders** | **$11,928** | **$8,948** | **$10,505** | [Company Profile, Research Coverage and Governance Information](index=32&type=section&id=Company%20Profile%2C%20Research%20Coverage%20and%20Governance%20Information) This section overviews ILPT's company profile, covering market index inclusions, management by The RMR Group, and details on its Board of Trustees and executive officers [Company Profile, Research Coverage and Governance Information](index=32&type=section&id=Company%20Profile%2C%20Research%20Coverage%20and%20Governance%20Information) This section overviews ILPT's company profile, covering market index inclusions, management by The RMR Group, and details on its Board of Trustees and executive officers - ILPT is included in **117 market indices** and comprises more than **1% of several key indices**, including Invesco S&P SmallCap High Dividend Low Volatility ETF INAV Index and Bloomberg US Micro Cap Real Estate Price Return Index[75](index=75&type=chunk) - ILPT is managed by The RMR Group (Nasdaq: RMR), an alternative asset management company with over **$41 billion in assets under management** as of March 31, 2024[76](index=76&type=chunk) - ILPT believes RMR provides management services at a lower cost than if it were self-managed, offering a competitive advantage due to RMR's depth of management and experience[76](index=76&type=chunk) - Executive Officers include Yael Duffy (President and Chief Operating Officer) and Tiffany R. Sy (Chief Financial Officer and Treasurer)[77](index=77&type=chunk) [Non-GAAP Financial Measures and Certain Definitions](index=33&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Certain%20Definitions) This section defines and explains ILPT's non-GAAP financial measures, including FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre, NOI, Cash Basis NOI, and CAD, plus other key report definitions [Non-GAAP Financial Measures and Certain Definitions](index=33&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Certain%20Definitions) This section defines and explains ILPT's non-GAAP financial measures, including FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre, NOI, Cash Basis NOI, and CAD, plus other key report definitions - ILPT presents non-GAAP financial measures including FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre, NOI, same property NOI, Cash Basis NOI, and same property Cash Basis NOI as supplemental measures of operating performance[81](index=81&type=chunk) - NOI is defined as rental income less property operating expenses, excluding depreciation and amortization. Cash Basis NOI further excludes non-cash straight line rent adjustments, lease value amortization, and lease termination fees[82](index=82&type=chunk) - FFO attributable to common shareholders is calculated based on Nareit's definition, adjusting net loss for real estate impairment/gains/losses, equity in unconsolidated joint venture earnings, and real estate depreciation/amortization[83](index=83&type=chunk) - CAD (Cash Available for Distribution) is defined as Normalized FFO minus ILPT's proportionate share of Normalized FFO from unconsolidated joint venture properties, plus operating cash flow distributions received from the unconsolidated joint venture, recurring capital expenditures, and other adjustments[84](index=84&type=chunk) - EBITDAre (EBITDA for real estate) is calculated based on Nareit's definition, including ILPT's proportionate share of EBITDAre from unconsolidated joint venture properties and excluding gains/losses on real estate sales, impairment, and equity in unconsolidated joint venture[85](index=85&type=chunk) - Key definitions include Annualized dividend yield, Annualized rental revenues, Building improvements, Development, redevelopment and other activities, GAAP, Gross book value of real estate assets, ILPT Wholly Owned Properties, Leased square feet, Leasing costs, Leasing costs and concession commitments, Mountain JV, Net debt, Non-cash interest expense, Percent change in GAAP rent, Rolling four quarter CAD, Same property, SOFR, Square feet, Tenant improvements, Total gross assets, and Total market capitalization[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) [Warning Concerning Forward-Looking Statements](index=36&type=section&id=WARNING%20CONCERNING%20FORWARD-LOOKING%20STATEMENTS) This section warns that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations [Warning Concerning Forward-Looking Statements](index=36&type=section&id=Warning%20Concerning%20Forward-Looking%20Statements) This section warns that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations - The presentation contains forward-looking statements that are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from expected future results[99](index=99&type=chunk)[100](index=100&type=chunk) - These risks include ILPT's ability to reduce leverage, renew leases, compete for tenancies, raise capital, pay debt, maintain REIT qualification, and operate under unfavorable market and commercial real estate industry conditions[100](index=100&type=chunk) - ILPT does not intend to update or change any forward-looking statements as a result of new information, future events, or otherwise, except as required by law[101](index=101&type=chunk)

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)

Financial Data and Key Metrics Changes - For Q4 2022, normalized funds from operations (FFO) were $5.4 million or $0.08 per share, a decline of $26.3 million compared to the prior year quarter, primarily due to higher interest expenses, partially offset by a $40 million increase in net operating income (NOI) [18] - Consolidated same-property cash-based NOI increased by 1.3% year-over-year, driven by leasing activity and contractual rent steps [19] - Adjusted EBITDAre increased by 88% year-over-year to $79.2 million, attributed to the acquisition of Monmouth and related financing activities earlier in 2022 [24] Business Line Data and Key Metrics Changes - The company achieved record annual leasing activity of 7.8 million square feet in 2022, with weighted average rental rates 47.3% higher than prior rates, resulting in an increase of $17.1 million in annualized rental revenue [13] - In Q4, the company entered 17 new and renewal leases totaling 1.4 million square feet, with GAAP and cash leasing spreads of 18.7% and 6.7% respectively [14] - Approximately 12 million square feet or 18% of the portfolio is scheduled to roll by the end of 2025, with expected average roll-ups in rent of 20% on the Mainland and 30% in Hawaii [15] Market Data and Key Metrics Changes - Occupancy at year-end was 99.1%, with major tenants including FedEx, Amazon, and Home Depot representing approximately 40% of annualized rental revenues [7][8] - The company noted that leasing activity in Hawaii was strong, but future leasing will likely focus more on the Mainland [23] Company Strategy and Development Direction - The company is focused on improving leverage but is patient due to ongoing uncertainty in capital markets, with no near-term debt maturities [16] - The company is evaluating opportunities for potential asset sales and joint ventures, remaining open to all options that could yield the highest proceeds [42][57] Management's Comments on Operating Environment and Future Outlook - Management expressed that the leasing market has been quiet due to rising interest rates, and they are looking for more data to assess cap rates before engaging in property sales [30] - The company expects to see growth in cash NOI as leasing activity from 2022 begins to take effect in 2023 and 2024 [46] Other Important Information - Capital expenditures for Q4 were $7.9 million, including tenant improvements, building improvements, and development costs [20] - The company has $48 million in cash on hand, excluding cash held by its consolidated joint venture [26] Q&A Session Summary Question: When will discussions with potential joint venture partners heat up? - Management indicated that the transaction market has been quiet due to rising interest rates, and they are waiting for more data on cap rates before proceeding [30] Question: What is the outlook for occupancy and known vacancies? - Management expects occupancy to remain around 99% to 98% and noted that they have a couple of known vacancies in Hawaii that they can typically release within a quarter or two [32] Question: What is the expected leverage range for 2023? - Management expects leverage to remain in the high 12 to low 13 range throughout 2023, influenced by the effects of rent roll-ups [38] Question: Are all properties on the table for potential sales? - Management stated they are evaluating all properties in their portfolio for potential disposition, not limited to the original pool of Monmouth assets [42] Question: When will the same-store pool change to include the Monmouth acquisition? - The same-store pool will include the Monmouth acquisition starting in Q2 [36]

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. ...