Industrial Logistics Properties Trust(ILPT) - 2024 Q4 - Annual Results

Leasing and Occupancy - Industrial Logistics Properties Trust achieved annual leasing of nearly 6,100,000 square feet, with 731,000 square feet leased in Q4 2024 at rental rates 39.3% higher than prior rents[7] - The portfolio's occupancy rate stands at 94.4%, with 77% of annualized rental revenues generated from investment-grade tenants[13] - The percentage of properties leased decreased to 94.4% in Q4 2024 from 98.8% in Q4 2023[36] - The company executed 731 leasing activities in the last quarter, including 148 new leases and 583 renewals, with a total of 682 expirations[39] - The weighted average lease term for newly leased properties is 11.5 years, with lease renewals accounting for approximately 80% of leased square footage[13] - The weighted average lease term for new leases was 21.3 years, and for renewals, it was 7.8 years[39] - The top 10 tenants contribute 43.2% of total annualized rental revenues, with FedEx Corporation alone accounting for 22.6%[40] - 76.7% of rental revenues come from investment-grade rated tenants or their subsidiaries[40] Financial Performance - Net loss attributable to common shareholders for Q4 2024 was $24.1 million, or$0.37 per diluted share[13] - Normalized FFO attributable to common shareholders was $8.9 million, or$0.13 per diluted share[13] - NOI for Q4 2024 was $84.2 million, with cash basis NOI at$81.6 million and Adjusted EBITDAre at $82.2 million[13] - Rental income for Q4 2024 was$110,521,000, a 1.5% increase from $108,895,000 in Q4 2023[18] - Net loss attributable to common shareholders for Q4 2024 was$24,101,000, compared to a net loss of $31,240,000 in Q4 2023, representing a 22.5$131,706,000 in 2024 from $112,341,000 in 2023, a rise of 17.3$(34,380) thousand for the three months ended December 31, 2024, compared to $(41,402) thousand in 2023[63] - The company’s total rental income for the year ended December 31, 2024, was$442,322 thousand, compared to $437,338 thousand in 2023[65] Debt and Liquidity - Total cash and cash equivalents as of December 31, 2024, were$131.7 million, excluding restricted cash[13] - The company exercised the first of three one-year extension options for its $1.2 billion floating rate loan, purchasing a one-year interest rate cap for$17.0 million[13] - Net debt to total gross assets ratio was 68.6% as of Q4 2024, slightly up from 68.1% in Q3 2024[29] - The weighted average interest rate on debt was 5.51% as of December 31, 2024[21] - Total liabilities amounted to $1,757,801, with mortgages and notes payable at$1,722,015[53] - The company is focused on maintaining sufficient liquidity and reducing leverage to navigate market uncertainties[98] Asset Management - Total assets decreased to $5,406,331,000 in 2024 from$5,563,675,000 in 2023, a decline of 2.8%[19] - The company managed over $40 billion in assets as of December 31, 2024, with more than$5 billion in annual revenues and approximately 2,000 properties[74] - ILPT wholly owns 316 properties, including 226 buildings and approximately 16.7 million rentable square feet primarily located in Hawaii[89] - Mountain JV owns 94 mainland properties with approximately 21.0 million rentable square feet across 27 states, fully consolidated in ILPT's financial statements[91] Future Outlook and Risks - Forward-looking statements indicate potential risks related to tenant lease renewals and market conditions affecting rental income[97] - The company aims to prudently pursue renovation projects to achieve expected returns despite potential cost overruns and supply chain challenges[98] - ILPT's performance is subject to various risks, including economic downturns and changes in real estate utilization[98] - The company does not intend to update forward-looking statements unless required by law, highlighting the inherent uncertainties in its projections[100]