Property and Rental Performance - As of March 31, 2020, the company owned 301 properties with approximately 43.8 million rentable square feet, achieving an occupancy rate of 98.9%[75] - The average effective rental rate per square foot for all properties increased to $6.02 in Q1 2020, up from $5.89 in Q1 2019, representing a 2.2% increase[78] - During Q1 2020, the company entered lease renewals and new leases for approximately 49,000 square feet at weighted average rental rates approximately 12.3% higher than prior rates[80] - As of March 31, 2020, 74.1% of annualized rental revenues were derived from investment-grade rated tenants[69] - Only 0.5% of annualized rental revenues were set to expire over the next 12 months, indicating strong lease stability[69] - Scheduled rent resets at Hawaii properties total $30,085,000 as of March 31, 2020, with significant increases expected in future years[85] - The weighted average remaining lease term for properties was approximately 9.3 years as of March 31, 2020[75] - As of March 31, 2020, annualized rental revenues from tenants represented 57.1% of total revenues, with Amazon.com Services, Inc. contributing 16.1%[86] - The Mainland Properties accounted for approximately 59.9% of annualized rental revenues, with lease renewals expected despite potential COVID-19 impacts[87] - Hawaii Properties represented 40.1% of annualized rental revenues, with rents periodically resetting based on fair market values every ten years[88] Financial Performance - For the three months ended March 31, 2020, rental income increased by 39.8% to $64,278,000 compared to $45,987,000 in the same period in 2019[97] - Total operating expenses rose by 56.3% to $13,992,000 for the three months ended March 31, 2020, compared to $8,951,000 in the prior year[97] - Net income attributable to common shareholders decreased by 23.5% to $12,846,000 for the three months ended March 31, 2020, down from $16,786,000 in 2019[97] - Rental income for the three months ended March 31, 2020, was $50,286,000, up from $37,036,000 in the same period of 2019, reflecting a growth of approximately 35.5%[111] - Net income for the three months ended March 31, 2020, decreased to $12,694,000 from $16,786,000 in 2019, representing a decline of about 24.9%[111] - Net Operating Income (NOI) for the three months ended March 31, 2020, was $50,286,000, compared to $37,036,000 for the same period in 2019, indicating a 35.5% increase[111] - Funds From Operations (FFO) attributable to common shareholders for the three months ended March 31, 2020, was $30,159,000, up from $26,397,000 in 2019, a rise of approximately 10.6%[114] COVID-19 Impact and Response - The company is closely monitoring the impact of COVID-19 on its operations and tenant relationships, with a focus on maintaining liquidity and operational stability[69] - The company anticipates that future rental rates will depend on prevailing market conditions, which may be adversely affected by the COVID-19 pandemic[90] - The company expects to maintain its ability to meet operating and capital expenses, debt service obligations, and shareholder distributions for the next 12 months[115] - The company is focused on industrial and logistics properties, anticipating that demand for e-commerce will continue to support its performance amid the COVID-19 pandemic[115] Debt and Liquidity - The company has $485,000 available under its revolving credit facility and only $48,750 in debt maturities remaining for 2020[69] - As of April 29, 2020, the company had $485,000 available under its revolving credit facility, with debt maturities of $48,750,000 remaining in 2020[115] - The company had debt maturities totaling $1,105,730, with $48,750 due in 2020, $56,980 in 2023, and $1,000,000 in 2029[123] - The company had $265,000 outstanding under its revolving credit facility, with $485,000 available to borrow[120] - The company expects to use borrowings under its revolving credit facility and net proceeds from equity or debt offerings to fund future property acquisitions and developments[126] Joint Ventures and Acquisitions - The company acquired a property with 820,384 rentable square feet for a purchase price of $71,481,000 during the three months ended March 31, 2020[93] - A joint venture was formed for 12 Mainland Properties, resulting in proceeds of $108,266,000 for a 39% equity interest[94] - The company entered into a joint venture for 12 Mainland Properties, receiving proceeds of $108,266 for a 39% equity interest, while retaining a 61% equity interest[125] - The company acquired 31 properties from January 1, 2019, to March 31, 2020, contributing to increased rental income[98] Cash Flow and Distributions - The company reported cash flows from operating activities of $29,445,000 for the three months ended March 31, 2020, compared to $28,330,000 in the same period of 2019, reflecting an increase of approximately 3.9%[118] - The company paid a quarterly cash distribution totaling $21,510 during the three months ended March 31, 2020, using existing cash balances and borrowings[128] - A regular quarterly distribution of $0.33 per common share, or approximately $21,500, was declared on April 6, 2020, to shareholders of record on April 16, 2020[130] Interest Rate Sensitivity - The company’s fixed-rate debt totaled $1,105,730, with an annual interest expense of $43,666[146] - The annual interest cost would increase or decrease by approximately $11,057 if mortgage notes are refinanced at interest rates one percentage point higher or lower[148] - A hypothetical one percentage point change in interest rates would change the fair value of fixed rate debt obligations by approximately $87,787[149] - As of March 31, 2020, the company had $265,000 in floating rate debt under its revolving credit facility, which matures on December 29, 2021[150] - A one percentage point increase in interest rates would raise the annual floating rate interest expense from $6,625 to $9,275, impacting earnings per share by $(0.14)[151] - If fully drawn on the revolving credit facility, a one percentage point increase in interest rates would raise the annual interest expense from $18,750 to $26,250, impacting earnings per share by $(0.40)[153] - The company's exposure to fluctuations in floating interest rates will increase or decrease with changes in the outstanding amounts of its revolving credit facility and other floating rate debt[154] - The company expects LIBOR to be phased out in 2021, which may affect the determination of interest on borrowings under its revolving credit facility[155]

1 2353 & 2373 Global Drive, Obetz, OH Two Properties, Square Feet: 392,016 Major Tenant: Expolanka USA, LLC Fourth Quarter 2019 Supplemental Operating and Financial Data All amounts in this report are unaudited. ABLE OF CONTENTS TABLE OF CONTENTS | --- | --- | --- | |------------|------------------------------------------------------------------------------------------------------------------|---------------| | | CORPORATE INFORMATION | PAGE/ EXHIBIT | | | Company Profile | | | | Investor Information | 5 | ...

Financial Structure and Debt - The company has a $750.0 million unsecured revolving credit facility for working capital and acquisition funding [53]. - In January 2019, the company secured a $650.0 million mortgage loan backed by 186 properties with 9.6 million rentable square feet in Oahu, HI [53]. - As of December 31, 2019, the company had outstanding fixed rate debt totaling $1,105,730, with an annual interest expense of $43,666 [332]. - The company’s mortgage notes require interest-only payments until maturity, and a one percentage point change in interest rates would affect annual interest costs by approximately $11,057 [334]. - The company’s floating rate debt amounted to $310,000 under a revolving credit facility, with an annual interest expense of $10,106 at a rate of 3.26% [337]. - A one percentage point increase in interest rates would raise the annual interest expense on the floating rate debt to $13,206, impacting earnings per share by $(0.20) [338]. - If fully drawn on the revolving credit facility, a one percentage point increase in interest rates would increase annual interest expense to $31,950, impacting earnings per share by $(0.49) [339]. - The company is exposed to market risks associated with interest rate fluctuations, but does not expect significant changes in its exposure in the near future [330]. - The company’s fixed rate debt obligations would see a fair value change of approximately $80,690 with a hypothetical one percentage point change in interest rates [335]. Real Estate Investment Trust (REIT) Status - The company has elected to be taxed as a REIT since the 2018 taxable year and believes it will continue to qualify under the IRC [71]. - The company is generally not subject to federal income tax on net income distributed as dividends to shareholders, provided it meets certain requirements [72]. - If the company fails to qualify as a REIT in any year, it will be subject to federal income tax as a C corporation, which could significantly reduce cash available for distribution to shareholders [74]. - The company must distribute at least 85% of its REIT ordinary income and 95% of its REIT capital gain net income to avoid a 4% excise tax on the excess [77]. - The company has no outstanding preferred shares, meaning all distributions are made on common shares [72]. - The company believes it has satisfied the REIT qualification tests during the requisite periods and will continue to do so [78]. - The company’s subsidiaries that are C corporations will be required to pay federal corporate income tax on their earnings [82]. - The company has invested in real estate through partnerships, which are treated as partnerships for federal income tax purposes [83]. - The company’s counsel has opined that it has qualified for taxation as a REIT for the 2018 and 2019 taxable years [73]. - The company is subject to various penalties if it fails to meet REIT qualification requirements due to reasonable cause [81]. - The company intends to file a protective TRS election effective for Q1 2020 and will reaffirm this election annually unless ownership falls below 10% [85]. - The company believes that all or substantially all of its rents and related service charges have qualified as "rents from real property" under Section 856 of the IRC [93]. - The company expects that any gain from future asset dispositions will generally qualify as income satisfying the 75% and 95% gross income tests [97]. - The company is permitted to own up to 20% of the total value of its assets in TRS securities without affecting its REIT status [86]. - The company has complied with TRS status requirements and expects to continue compliance for all current and future TRSs [87]. - The company anticipates that protective TRS elections will not impact compliance with the 75% and 95% gross income tests [85]. - The company believes that its TRSs can perform services for tenants without disqualifying rents under the gross income tests [88]. - The company is subject to restrictions to ensure TRSs are taxed appropriately, including excise taxes on excessive payments [89]. - The company aims to avoid prohibited transactions and intends to structure activities through TRSs to mitigate tax implications [96]. - The company expects to maintain compliance with the 75% asset test through its subsidiary REITs [84]. - The company believes it has satisfied the 75% and 95% gross income tests and will continue to do so in the future [99]. - At least 75% of the value of the company's total assets must consist of real estate assets, including real property and cash [99]. - The company must maintain records of asset values to document compliance with the REIT asset tests [105]. - The company is required to make annual distributions equal to at least 90% of its real estate investment trust taxable income to qualify for REIT taxation [106]. - If the company fails to meet distribution requirements, it may be subject to a 4% nondeductible excise tax [110]. - The company may need to arrange new debt or equity financing to meet distribution requirements if it lacks sufficient cash [111]. - Upon acquiring a C corporation, the company must distribute all inherited C corporation earnings and profits to maintain REIT qualification [117]. - The company generally depreciates its real property on a straight-line basis over 40 years [118]. - The company may incur corporate income taxation on built-in gains if it sells assets acquired from a C corporation within five years [116]. - The company intends to take actions to cure any failures to satisfy asset tests within specified timeframes [103]. - The company expects to make distributions to shareholders, which may include cash and property distributions [123]. Taxation and Shareholder Implications - The maximum federal income tax rate for long-term capital gains for noncorporate U.S. shareholders is generally 15% or 20% depending on income thresholds [124]. - Distributions not designated as capital gain dividends will generally be treated as ordinary income dividends to the extent of available earnings and profits [125]. - If the company retains net capital gain income, U.S. shareholders will be taxed on their proportionate share as if it were distributed [127]. - Non-U.S. shareholders' distributions and proceeds from the sale of shares are expected not to be treated as income effectively connected with a U.S. trade or business [138]. - The company has carried over SIR's tax basis and depreciation schedule for assets received, adjusted by recognized gains [120]. - If the Deemed Exchange is deemed taxable, the company may face lower depreciation deductions than anticipated [121]. - The company believes its leases will be classified as true leases for federal income tax purposes [122]. - Distributions in excess of current or accumulated earnings will reduce the shareholder's basis in shares and may be taxed as capital gains [129]. - The company urges shareholders to consult tax advisors regarding the specific tax treatment of redemptions and distributions [123]. - Non-U.S. shareholders may face a 30% federal income tax withholding on distributions not designated as capital gain dividends [139]. - Capital gain dividends paid to non-U.S. shareholders on shares listed on a U.S. national securities exchange are not subject to withholding [140]. - Tax treaties may reduce withholding obligations, but specific conditions must be met for REITs [141]. - If shares are not listed on a U.S. national securities exchange, distributions may be taxed as effectively connected with a U.S. trade or business [142]. - Non-U.S. shareholders' gains on the sale of shares are generally not subject to U.S. federal income taxation if shares are not USRPIs [143]. - A "domestically controlled" REIT status is maintained if less than 50% of shares are held by non-U.S. shareholders over the preceding five years [144]. - Non-U.S. financial institutions must comply with diligence and reporting requirements to avoid a 30% withholding tax [151]. - Legislative changes may retroactively affect tax treatment for the company and its shareholders [152]. - Fiduciaries of ERISA Plans must consider fiduciary obligations and potential personal liability for investment decisions [154]. - Prohibited transactions under ERISA and the IRC may result in penalties and loss of tax-exempt status for certain accounts [157]. Company Operations and Market Position - The company operates in a competitive market against various public and private REITs and financial institutions [57]. - RMR LLC, the company's manager, had more than 600 full-time employees as of December 31, 2019 [59]. - The company has transitioned to standalone property insurance coverage after not renewing a combined property insurance program [60]. - The company is monitoring the phase-out of LIBOR, which is expected to occur in 2021, and is assessing the impact on its floating rate debt [340].

Industrial Logistics Properties Trust (NASDAQ:ILPT) Q4 2019 Earnings Conference Call February 24, 2020 10:00 AM ET Company Participants Olivia Snyder - Manager, Investor Relations John Murray - President and Chief Executive Officer Rick Seidel - Chief Financial Officer and Treasurer Yael Duffy - Vice President Conference Call Participants Jason Idoine - RBC Capital Markets. Matt Boone - B Riley FBR Operator Good morning. And welcome to the Industrial Logistics Properties Trust Fourth Quarter 2019 Financial ...

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, 2019 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 O ...

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, 2019 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 Organi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR Maryland 82-2809631 (IRS Employer Identification No.) Two Newton Place, 255 Washington Street, Suite 300, Newton, Massachusetts 02458-1634 (Address of Principal Executive Offices) (Zip Code) 617-219-1460 (Registrant's Telephone Number, Including Area Code) Indicate by check mark whether the ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 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) (IRS Employer Ide ...