Industrial Logistics Properties Trust(US:ILPT)2024-10-29 21:06Financial Performance - The net loss attributable to common shareholders was $25.0 million, or $0.38 per diluted share, while normalized FFO attributable to common shareholders was $8.1 million, or $0.12 per share [5]. - Adjusted EBITDAre increased by 0.9% to $83.9 million compared to Q3 2023 [5]. - Rental income for Q3 2024 was $108,945, a decrease of 1.1% from $110,142 in Q3 2023 [8]. - Net loss attributable to common shareholders for Q3 2024 was $(24,990), compared to $(26,112) in Q3 2023, showing an improvement of 4.3% [8]. - Adjusted EBITDAre for Q3 2024 was $83,947, down from $85,057 in Q2 2024 [6]. - Cash Basis NOI for Q3 2024 was $82,503, slightly down from $82,935 in Q2 2024 [6]. - Normalized FFO attributable to common shareholders for Q3 2024 was $8,063, consistent with Q2 2024 [6]. - CAD attributable to common shareholders for Q3 2024 was $11,247, down from $14,005 in Q2 2024 [6]. - Total rental income for the three months ended September 30, 2024, was $42,189,000, compared to $42,061,000 for the same period in 2023, reflecting a slight increase [33]. - The company reported a net loss attributable to common shareholders of $16,309,000 for the three months ended September 30, 2024 [20]. - Normalized FFO for the three months ended September 30, 2024, was $32,000, compared to $747,000 for the same period in 2023, reflecting a significant decrease [34]. - Net loss for the three months ended September 30, 2024, was $(26,737,000), slightly higher than the $(26,248,000) loss in the same period of 2023 [34]. - EBITDA for the three months ended September 30, 2024, was $31,044,000, compared to $30,749,000 for the same period in 2023, indicating a modest increase [34]. - Total expenses for the three months ended September 30, 2024, were $12,976,000, a decrease from $13,515,000 in the same period of 2023 [36]. - Cash Basis NOI for the three months ended September 30, 2024, was $82,503,000, compared to $81,643,000 for the same period in 2023, showing an increase of 1.1% [38]. Leasing Activity - In Q3 2024, Industrial Logistics Properties Trust (ILPT) executed approximately 2.74 million square feet of leases at rates 7.0% higher than prior rents, with a weighted average lease term of 5.5 years [2]. - Leasing activity included over 2.0 million square feet of renewals with FedEx, ILPT's largest tenant, at weighted average rental rates that were 4.5% higher than prior [5]. - The portfolio contains approximately 59.9 million rentable square feet, with 77% of annualized rental revenues coming from investment-grade tenants [4]. - The percentage of properties leased as of September 30, 2024, was 94.4%, down from 98.9% as of September 30, 2023 [14]. - As of September 30, 2024, the percentage of properties leased is 94.4%, down from 95.4% in the previous quarter [16]. - New leases showed a percentage change in GAAP rent of 4.1%, a significant decrease from 43.5% in the previous quarter [16]. - The top tenant, FedEx Corporation, accounts for 22.7% of total leased square feet and 29.3% of rental revenues [17]. - Leasing costs and concession commitments for new leases total $2,907,000, with an average cost per square foot of $6.77 [16]. - Scheduled rent resets at Hawaii properties total 3,384 square feet, with annualized rental revenues of $22,873,000 [19]. Financial Position - The company had approximately $153.9 million in cash and cash equivalents to meet capital obligations and fund future financing needs [5]. - Total liabilities as of September 30, 2024, were $4,412,049, compared to $4,401,896 as of December 31, 2023 [6]. - Total equity decreased to $1,042,759 as of September 30, 2024, from $1,161,779 as of December 31, 2023 [6]. - Total assets as of September 30, 2024, decreased to $5,454,808, down from $5,563,675 as of December 31, 2023, reflecting a decline of approximately 1.95% [9]. - Cash and cash equivalents increased to $153,863 as of September 30, 2024, from $112,341 as of December 31, 2023, an increase of approximately 36.9% [9]. - The weighted average interest rate on total debt was 5.36% as of September 30, 2024 [10]. - The company’s net debt to annualized Adjusted EBITDA ratio was 12.1x as of September 30, 2024, compared to 12.3x as of December 31, 2023 [12]. - The net debt to total gross assets ratio was 68.1% as of September 30, 2024, slightly improved from 68.2% as of June 30, 2024 [12]. - Total gross assets amounted to $2,522,145,000, while total debt was $2,585,000,000, resulting in a net debt to annualized Adjusted EBITDA ratio of 13.5x [20]. - The annualized Cash Basis NOI to total gross assets ratio was 7.9% [20]. Dividends and Distributions - ILPT's quarterly distribution was declared on October 16, 2024, to shareholders of record as of the close of business on October 30, 2024 [2]. - Annualized dividend yield at the end of Q3 2024 was 0.8%, down from 1.1% in Q2 2024 [6]. - The annualized dividend yield is calculated by dividing the annualized dividend paid by the closing price of ILPT's common shares [53]. Strategic Focus - The company remains focused on maximizing mark-to-market rent growth while evaluating opportunities to reduce operating expenses [2]. - The company plans to continue expanding its market presence and exploring new acquisition opportunities [22]. - The company believes that being managed by RMR provides a competitive advantage due to RMR's management depth and experience in the real estate industry [45]. - ILPT is included in 137 market indices, comprising more than 1% of several key indices as of September 30, 2024 [45]. Joint Ventures - ILPT owns a 61% equity interest in a joint venture that includes 94 properties with approximately 21.0 million rentable square feet [57]. - The joint venture, Mountain Industrial REIT LLC, had a total of 94 properties across 27 states as of September 30, 2024 [32]. - Distributions received from the joint venture for the three months ended September 30, 2024, were $990,000, down from $5,390,000 in the same period of 2023 [36]. - The weighted average interest rate for the joint venture's debt was 4.22% as of September 30, 2024 [36].