Industrial Logistics Properties Trust (NASDAQ:ILPT) Q2 2021 Earnings Conference Call July 29, 2021 10:00 AM ET Company Participants Kevin Barry – Manager of Investor Relations John Murray – Chief Executive Officer Yael Duffy – Chief Operating Officer Rick Siedel – Chief Financial Officer Conference Call Participants Bryan Maher – B. Riley Securities Elvis Rodriguez – Bank of America Tom Catherwood – BTIG Aaron Hecht – JMP Securities Operator Good morning, and welcome to Industrial Logistics Properties Trust ...

9475 East Pendleton Pike Lawrence, IN 534,769 Square Feet 1 | --- | --- | --- | --- | --- | --- | |-------------------------------------------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | SECOND QUARTER 2021 | | | | | | | Supplemental Operating | | | | | | | and Financial Data | | | | | | | ALL AMOUNTS IN THIS REPORT ARE UNAUDITED. | | | | | | Table of Contents CORPORATE INFORMATION Company Profile ...

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, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (State or Other Jurisdiction of Incorporation or Organization) (IRS Employer Identification No.) Two Newton Place, 255 Washington Street, Suite 300, Newton, Massachusetts 02458-1634 (Address of Princip ...

Financial Data and Key Metrics Changes - In Q1 2021, normalized FFO per share increased to $0.47 from $0.46 in the prior year quarter, reflecting a growth of 2.2% [9] - Total portfolio same property cash basis NOI for Q1 decreased less than 1% year-over-year, excluding lease termination income [26] - Adjusted EBITDA for the quarter was reported at $40.5 million, with debt to EBITDA at 5.2 times, more than two turns lower than the previous year [28][30] Business Line Data and Key Metrics Changes - The company executed new and renewal leases for 620,000 square feet, achieving a rental rate increase of 16% [9][19] - Portfolio occupancy remained healthy at 98.6%, with mainland occupancy improving to 100% [15][19] - The top 20 tenants represent 46% of total annualized rental revenue, with significant contributions from Amazon, FedEx, and Restoration Hardware [16] Market Data and Key Metrics Changes - The competition for e-commerce industrial properties remains aggressive, particularly for newer buildings leased to credit tenants, with cap rates currently averaging below 5% [13] - The company has an active pipeline of attractive acquisition targets, with letters of intent submitted for nine properties valued at over $540 million [12][13] Company Strategy and Development Direction - The company focuses on acquiring high-quality distribution properties with stable cash flows and strong rental growth margins, primarily in the top 30 industrial markets [10] - While development is not a primary growth driver in the near term, the company is evaluating potential expansions on vacant land in its portfolio [11] - The company is willing to consider properties outside of top markets if they offer strong rent growth potential [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leasing environment, noting minimal pushback on rent increases due to scarcity of available land [36] - The company is proactively engaging with tenants to maximize rent growth and minimize downtime, with a focus on lease expirations in the coming years [23] - Management indicated that while they are exploring development opportunities, the focus will remain on quality real estate [50] Other Important Information - The company declared a regular quarterly distribution to shareholders of $0.33 per share, unchanged from the prior level, representing an annualized dividend yield of approximately 5.4% [29] - As of March 31, the company had $559 million of total liquidity, including cash on hand and availability on its revolving credit facility [30] Q&A Session Summary Question: Outlook for EBITDA and FFO from the joint venture - Management indicated that the current run rate for FFO and EBITDA from the joint venture is fair for modeling going forward [34] Question: CapEx outlook for 2021 - Management expects Q2 CapEx to be higher than Q1, estimating it to be in the range of $2 million to $3 million [35] Question: Tenant discussions and rent increases in Hawaii - Management reported no significant pushback on rent increases, with tenants recognizing the scarcity of available land [36] Question: Acquisitions and market conditions - Management noted that while there is ongoing development, they are cautious about aggressive pricing in the current market [39] Question: Joint venture as a source of capital - Management sees the joint venture as a potential source of equity capital for growth and is evaluating properties for potential contributions to the joint venture [58] Question: Leasing negotiations for expiring leases - Management confirmed that negotiations for expiring leases are in Letter of Intent status [62]

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, 2021 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 ...

INVESTOR PRESENTATION FEBRUARY 2021 5300 Centerpoint Parkway, Groveport, OH INDUSTRIAL LOGISTICS PROPERTIES TRUST 2 WARNING REGARDING FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever ILPT uses words such as "believe", "expect", "anticipate", "intend", "plan", "estimate", "will", "may" and negatives or derivatives of these or similar expressions, ILPT is making ...

Part I [Business](index=7&type=section&id=Item%201.%20Business) ILPT is a REIT specializing in industrial and logistics properties, pursuing growth through rent resets and e-commerce-focused acquisitions - | Metric | Wholly Owned Properties | Unconsolidated Joint Venture (22% equity interest) | | :--- | :--- | :--- | | **Number of Properties** | 289 | 12 | | **Rentable Square Feet** | ~34.9 million | ~9.2 million | | **Occupancy** | ~98.5% | 100% | | **Weighted Avg. Lease Term** | ~9.5 years | 7.1 years | | **Geographic Split (Annualized Rental Revenues)** | Hawaii: 50.7%, Mainland: 49.3% | N/A | - The company's growth strategy is twofold: internal growth through rent resets (especially in Hawaii) and fixed lease escalations, and external growth by acquiring industrial and logistics properties that serve the e-commerce sector[36](index=36&type=chunk)[37](index=37&type=chunk)[39](index=39&type=chunk) - During the COVID-19 pandemic, ILPT granted rent deferrals of **$3.2 million** to tenants representing **9.6%** of annualized rental revenues, collecting approximately **97.6%** of contractual rents due after accounting for these deferrals[47](index=47&type=chunk) - ILPT has no employees and relies on RMR Group LLC (RMR LLC) for all personnel and services required to operate its business, under long-term business and property management agreements[48](index=48&type=chunk)[67](index=67&type=chunk) [Material U.S. Federal Income Tax Considerations](index=14&type=section&id=MATERIAL%20UNITED%20STATES%20FEDERAL%20INCOME%20TAX%20CONSIDERATIONS) This section details the complex requirements for ILPT to qualify and maintain its REIT status and the tax implications for shareholders - The company has elected to be taxed as a **REIT**, which generally exempts it from federal income tax on distributed net income, provided it adheres to strict qualification tests[80](index=80&type=chunk)[81](index=81&type=chunk) - To maintain REIT status, ILPT must annually distribute at least **90%** of its REIT taxable income and satisfy two gross income tests: at least **75%** of gross income must be from real property investments, and at least **95%** must be from a combination of real property income and other passive income sources like dividends and interest[101](index=101&type=chunk)[115](index=115&type=chunk) - Distributions to shareholders are generally not eligible for the preferential tax rates on qualified dividend income, typically taxed at ordinary income rates for noncorporate U.S. shareholders, though eligible for a deduction under Section 199A of the IRC through 2025[81](index=81&type=chunk)[130](index=130&type=chunk) [ERISA and Other Retirement Plan Considerations](index=32&type=section&id=ERISA%20PLANS%2C%20KEOGH%20PLANS%20AND%20INDIVIDUAL%20RETIREMENT%20ACCOUNTS) This section addresses fiduciary considerations for ERISA and other retirement plans investing in ILPT, noting that ILPT's shares are publicly offered securities - Fiduciaries of ERISA and other retirement plans must ensure that an investment in ILPT shares satisfies diversification, prudence, and other fiduciary responsibilities under applicable laws[162](index=162&type=chunk)[163](index=163&type=chunk) - ILPT's assets are not expected to be deemed "plan assets" of investing ERISA or Non-ERISA plans because its shares qualify as "publicly offered securities," which are widely held and freely transferable[166](index=166&type=chunk)[172](index=172&type=chunk) [Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant risks including tenant dependency, geographic concentration, COVID-19 impacts, debt, and external management conflicts - Business risks include dependence on tenants' financial health, potential inability to renew leases on favorable terms, and concentration in the industrial/logistics sector and single-tenant properties[177](index=177&type=chunk)[178](index=178&type=chunk)[181](index=181&type=chunk) - A significant number of properties are located on Oahu, Hawaii, exposing the company to geographic concentration risks such as natural disasters and local economic conditions[182](index=182&type=chunk) - The COVID-19 pandemic poses risks of tenant defaults, reduced demand for logistics space if economic conditions worsen, and potential disruptions to leasing activities[183](index=183&type=chunk)[184](index=184&type=chunk) - The company's relationship with its external manager, RMR LLC, presents risks of potential conflicts of interest, as RMR LLC manages other entities with similar investment objectives and its fee structure may not always align with shareholder interests[225](index=225&type=chunk)[229](index=229&type=chunk) - Financial risks include the inability to access reasonably priced capital, failure to comply with debt covenants, and adverse effects from changes in market interest rates, including the phase-out of LIBOR[202](index=202&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk) [Properties](index=52&type=section&id=Item%202.%20Properties) ILPT's wholly owned portfolio comprises 289 properties across 31 states, totaling 34.9 million square feet, with a significant concentration in Hawaii - Wholly Owned Properties by State (Top 5 by Annualized Rental Revenues) | State | Number of Properties | Annualized Rental Revenues (in thousands) | | :--- | :--- | :--- | | HI | 226 | $105,341 | | OH | 10 | $13,008 | | SC | 4 | $9,688 | | IN | 5 | $9,482 | | TN | 2 | $6,485 | - As of December 31, 2020, 186 properties located in Oahu, HI, with an undepreciated carrying value of **$505.2 million**, were encumbered by mortgages totaling **$650.0 million**[261](index=261&type=chunk) [Legal Proceedings](index=53&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently involved in any litigation expected to have a material adverse effect on its business - The company is not currently involved in any litigation expected to have a material adverse effect on its business[263](index=263&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=53&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) ILPT common shares are traded on Nasdaq under the symbol "ILPT", with **1,965** shareholders of record as of February 15, 2021 - ILPT common shares trade on Nasdaq under the symbol ILPT[266](index=266&type=chunk) - As of February 15, 2021, there were **1,965** shareholders of record[266](index=266&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) ILPT's 2020 financial performance showed significant growth in rental income and net income, driven by acquisitions and a real estate sale, while maintaining strong occupancy and liquidity - Consolidated Financial Results (Year Ended Dec 31) | Metric | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | Rental Income ($M) | $254.6 | $229.2 | 11.1% | | Net Operating Income (NOI) ($M) | $198.6 | $181.2 | 9.6% | | Net Income Attributable to Common Shareholders ($M) | $82.1 | $52.5 | 56.3% | | Net Income per Share (Diluted) ($) | $1.26 | $0.81 | 55.6% | | Normalized FFO per Share (Diluted) ($) | $1.86 | $1.76 | 5.7% | - The increase in net income was primarily driven by a **$24.0 million** gain on the sale of real estate, which resulted from the deconsolidation of and sale of an equity interest in a joint venture and the sale of one other property[301](index=301&type=chunk) - During 2020, the company entered new and renewal leases for **1.1 million sq. ft.** at rental rates **14.7%** higher than prior rates, with rent resets for **1.9 million sq. ft.** in Hawaii resulting in rates **20.1%** higher than prior rates[275](index=275&type=chunk) - In 2020, ILPT formed a joint venture for **12 properties**, initially retaining a **61%** interest, then selling an additional **39%** interest for **$108.8 million**, reducing its stake to **22%** and deconsolidating the joint venture from its balance sheet[287](index=287&type=chunk)[288](index=288&type=chunk) [Property Operations](index=54&type=section&id=Property%20Operations) As of year-end 2020, ILPT's portfolio maintained high occupancy and increased rental rates, with minimal near-term lease expirations - Occupancy and Rental Rates | Metric | 2020 | 2019 | | :--- | :--- | :--- | | **Percent Leased (All Properties)** | 98.5% | 99.3% | | **Percent Leased (Comparable Properties)** | 98.3% | 98.9% | | **Avg. Effective Rental Rate/Sq. Ft. (All Properties)** | $6.06 | $5.83 | | **Avg. Effective Rental Rate/Sq. Ft. (Comparable)** | $6.23 | $5.92 | - Top 3 Tenants by Annualized Rental Revenue (as of Dec 31, 2020) | Tenant | % of Total Annualized Rental Revenues | | :--- | :--- | | Amazon.com Services, Inc. | 10.0% | | Federal Express Corporation / FedEx Ground | 4.6% | | Restoration Hardware, Inc. | 3.0% | - The company has limited near-term lease expirations, with only **1.4%** of total annualized rental revenues scheduled to expire in 2021[277](index=277&type=chunk) [Liquidity and Capital Resources](index=63&type=section&id=Liquidity%20and%20Capital%20Resources) ILPT maintains strong liquidity through tenant rents and its revolving credit facility, supported by a high percentage of investment-grade tenants - Liquidity Position as of December 31, 2020 | Item | Amount (in thousands) | | :--- | :--- | | Cash and Cash Equivalents ($) | $22,834 | | Revolving Credit Facility Availability ($) | $529,000 | | Revolving Credit Facility Outstanding ($) | $221,000 | | Mortgage Notes Payable (Principal) ($) | $650,000 | - The company believes it is well-positioned due to its liquidity, with **72.2%** of annualized rental revenues derived from investment-grade tenants or Hawaii land leases, and only **1.4%** of revenues from leases expiring in the next 12 months[317](index=317&type=chunk) - The company's credit agreement contains covenants requiring maintenance of certain financial ratios, with compliance maintained as of December 31, 2020[337](index=337&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) ILPT's primary market risk is interest rate exposure, with a hypothetical 1% rate increase impacting annual interest expense by $2.2 million and EPS by $0.03 - Debt Structure as of December 31, 2020 | Debt Type | Principal Balance ($) | Interest Rate Type | | :--- | :--- | :--- | | Mortgage Notes | $650,000 | Fixed (4.31%) | | Revolving Credit Facility | $221,000 | Floating (LIBOR + 1.55%) | - A hypothetical **1%** increase in interest rates would increase annual interest expense on the **$221 million** of floating-rate debt by approximately **$2.2 million**, reducing annual EPS by **$0.03**[353](index=353&type=chunk) - The company acknowledges the expected phase-out of LIBOR and anticipates its credit agreements will be revised or amended to use an alternative rate that approximates the existing interest rate calculation[357](index=357&type=chunk) [Controls and Procedures](index=71&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2020 - The President and CEO, along with the CFO and Treasurer, concluded that the company's disclosure controls and procedures were effective as of December 31, 2020[360](index=360&type=chunk) - Management's assessment, based on the COSO framework, concluded that internal control over financial reporting was effective as of December 31, 2020[363](index=363&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, and Related Matters](index=73&type=section&id=Items%2010-14) Information on directors, executive officers, corporate governance, and related matters is incorporated by reference from the 2021 Proxy Statement - Information regarding directors, executive compensation, security ownership, and related party transactions is incorporated by reference from the company's 2021 Proxy Statement[369](index=369&type=chunk)[370](index=370&type=chunk)[373](index=373&type=chunk)[374](index=374&type=chunk) - Equity Compensation Plan Information (as of Dec 31, 2020) | 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 | None | None | 3,698,912 | Part IV [Exhibits and Financial Statement Schedules](index=74&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section includes the company's audited consolidated financial statements, accompanying reports, and a list of all exhibits filed with the 10-K [Consolidated Financial Statements](index=80&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements present ILPT's financial position, results of operations, and cash flows, reflecting asset and liability changes due to a joint venture deconsolidation - Key Balance Sheet Figures (as of Dec 31) | Account | 2020 | 2019 | | :--- | :--- | :--- | | Total Real Estate Properties, net ($M) | $1,667.7 | $2,204.5 | | Total Assets ($M) | $1,915.7 | $2,454.9 | | Total Liabilities ($M) | $912.6 | $1,459.2 | | Total Shareholders' Equity ($M) | $1,003.2 | $995.7 | - Key Income Statement Figures (Year Ended Dec 31) | Account | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Rental Income ($M) | $254.6 | $229.2 | $162.5 | | Total Expenses ($M) | $146.2 | $127.1 | $72.2 | | Net Income ($M) | $81.2 | $52.5 | $74.4 | - Key Cash Flow Figures (Year Ended Dec 31, 2020) | Activity | Net Cash Flow ($M) | | :--- | :--- | | Operating Activities | $114.6 | | Investing Activities | ($4.5) | | Financing Activities | ($121.8) | [Notes to Consolidated Financial Statements](index=85&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of accounting policies, joint venture transactions, debt structure, related party agreements, and shareholder equity information - The company's joint venture transaction in 2020 involved contributing **12 properties**, initially consolidating the VIE with a **61%** interest, and later deconsolidating it after selling down to a **22%** interest, resulting in a net gain on sale of **$23.4 million**[459](index=459&type=chunk)[461](index=461&type=chunk) - As of Dec 31, 2020, the company's outstanding debt included **$221 million** on its revolving credit facility and a **$650 million** mortgage note, maturing in Dec 2021 (with extension options) and Feb 2029 respectively[472](index=472&type=chunk)[475](index=475&type=chunk)[477](index=477&type=chunk) - The business management fee paid to RMR LLC is calculated based on the lower of the historical cost of real estate assets or the company's average market capitalization, with property management fees at **3.0%** of gross collected rents and construction supervision fees at **5.0%** of construction costs[498](index=498&type=chunk)[506](index=506&type=chunk) - In 2020, the company paid total distributions of **$1.32** per common share, characterized as **71.0%** ordinary income and **29.0%** return of capital[495](index=495&type=chunk)

Industrial Logistics Properties Trust (NASDAQ:ILPT) Q4 2020 Results Earnings Conference Call February 18, 2021 10:00 AM ET Company Participants Kevin Barry - Manager, Investor Relations John Murray - Chief Executive Officer Rick Seidel - Chief Financial Officer Yael Duffy - Chief Operating Officer Conference Call Participants Bryan Maher - B.Riley Jason Idoine - RBC Aaron Hecht - JMP Securities Jamie Feldman - Bank of America Operator Good morning. And welcome to the Industrial Logistics Properties Trust Fo ...

Monmouth Real Estate Investment Corporation A Public REIT Since 1968 November 2020 Investor Presentation NYSE: MNR This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements provide Monmouth Real Estate Investment Corporation's current expectations or forecasts of future events. Forward-looking statements include statements about Monmouth's exp ...

Property Management and Occupancy - As of September 30, 2020, the company owned 301 properties with approximately 43.8 million rentable square feet, achieving an occupancy rate of 98.8%[82] - For the three months ended September 30, 2020, the company collected approximately 98.4% of contractual rents due after accounting for rent deferrals[73] - The average effective rental rate per square foot for all properties increased to $6.03 for the three months ended September 30, 2020, compared to $5.76 for the same period in 2019[86] - New and renewal leases for approximately 486,000 square feet were signed at weighted average rental rates approximately 7.9% higher than prior rates for the same space[88] - Rent resets for approximately 290,000 square feet of land at Hawaii properties resulted in rates approximately 15.6% higher than previous rates[88] - As of September 30, 2020, 75.7% of annualized rental revenues derived from investment-grade rated tenants[76] - Tenants representing 1% or more of total annualized rental revenues account for 57.2% of rented square feet, with Amazon.com Services, Inc. contributing 16.1%[93] - Mainland Properties represent approximately 59.3% of annualized rental revenues, while Hawaii Properties account for 40.7%[94][95] - As of September 30, 2020, 0.2% of total rented square feet and annualized rental revenues are scheduled to expire by December 31, 2020, amounting to $474,000[90] - Annualized rental revenues scheduled to reset in 2021 total $2,844,000, with a cumulative total of $31,447,000 for all future resets[92] Financial Performance - Rental income for Q3 2020 was $62,932, a 4.3% increase from $60,354 in Q3 2019, contributing to a consolidated rental income of $65,106, up 6.8% from $60,958[1] - Net operating income for Q3 2020 was $50,559, reflecting a 6.3% increase from $47,551 in Q3 2019[1] - Net income attributable to common shareholders increased by 29.0% to $14,089 in Q3 2020 from $10,922 in Q3 2019[1] - Total operating expenses rose to $14,547 in Q3 2020, an 8.5% increase from $13,407 in Q3 2019[1] - Interest expense decreased by 12.3% to $12,886 in Q3 2020 from $14,687 in Q3 2019, primarily due to a lower weighted average interest rate[1] - General and administrative expenses increased by 15.8% to $5,180 in Q3 2020 from $4,475 in Q3 2019, driven by higher professional fees[1] - The increase in rental income was attributed to acquisition activity and leasing activity, including rent resets and tax expense reimbursements[1] - Net operating income (NOI) for the nine months ended September 30, 2020, was $151,982, reflecting a 14.3% increase from $132,984 in 2019[135] - Total operating expenses rose to $42,512, a 24.8% increase from $34,051, driven by higher real estate taxes and other operating expenses[120] - Net income attributable to common shareholders was $41,756, a 2.3% increase from $40,824 in the prior year[130] Debt and Liquidity - The company had $457,000 of availability under its revolving credit facility as of October 26, 2020[72] - No outstanding debt is scheduled to mature during the remainder of 2020, with the next maturity in December 2021[72] - As of September 30, 2020, the company had unrestricted cash and cash equivalents of $39,105,000[146] - Cash and cash equivalents at the end of the nine months ended September 30, 2020, were $51,911,000, compared to $23,336,000 at the end of the same period in 2019[143] - The company expects to fund future property acquisitions and developments through borrowings under its revolving credit facility and net proceeds from equity or debt securities offerings[150] - The company recorded a gain on early extinguishment of debt amounting to $120 during the period[128] Tenant and Market Risks - The company is closely monitoring the impact of COVID-19 on its operations and tenant performance, conducting financial modeling and sensitivity analyses[72] - The company faces limited lease expirations over the next 12 months, which may help mitigate risks associated with tenant defaults[191] - The demand for e-commerce and logistics may decline if current economic conditions do not improve, potentially impacting tenants' ability to pay rent[194] - The company faces increased risk of tenants being unable to sustain operations due to extended economic activity cessation[196] - There is a heightened risk of default or bankruptcy among tenants, impacting overall financial stability[196] - Economic demand has decreased due to mass layoffs and furloughs, affecting the viability of tenants and demand for industrial properties[196] - The company may incur higher costs for capital expenditures than previously expected[191] - The extent and strength of economic recovery post-COVID-19 remain uncertain, with potential long-term impacts on business operations[198] Acquisitions and Investments - During the nine months ended September 30, 2020, the company acquired a property with 820,384 rentable square feet for $71,481,000[100] - A property located in Virginia is under agreement for sale at a gross price of $11,000,000, expected to close in Q4 2020[101] - In February and March 2020, the company received $108,676,000 from a joint venture for a 39% equity interest in 12 Mainland Properties[103] - The company prepaid a mortgage note with an outstanding balance of approximately $48,750,000, resulting in a gain of $120,000 for the nine months ended September 30, 2020[104] Capital Expenditures and Leasing Costs - Tenant improvements and leasing costs for the three months ended September 30, 2020, were $242 million, a decrease of 51% from $495 million in the same period of 2019[154] - Building improvements for the nine months ended September 30, 2020, totaled $2,978 million, slightly down from $2,986 million in 2019[154] - Total leasing costs and concession commitments for the nine months ended September 30, 2020, amounted to $1,613 million, with new leases contributing $695 million and renewals $918 million[156] - The average lease term for new leases was 16.9 years, while for renewals it was 10.3 years, resulting in a weighted average lease term of 10.9 years[156] Interest Rate Exposure - The company is exposed to market risks associated with interest rate changes, with strategies in place to manage this exposure[165] - A one percentage point increase in interest rates would raise the annual floating rate interest expense from $4.99 million to $8.19 million, impacting earnings per share by $(0.13)[172] - As of September 30, 2020, the company had outstanding fixed-rate debt of $1,056.98 million, with an annual interest expense of $41.72 million[166] - The company’s floating rate debt consisted of $320 million under its revolving credit facility, which matures on December 29, 2021[171]