Industrial Logistics Properties Trust(ILPT) - 2023 Q4 - Annual Results

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$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$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$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].