Industrial Logistics Properties Trust(ILPT) - 2025 Q1 - Quarterly Results

Leasing Activity - For Q1 2025, Industrial Logistics Properties Trust executed 2.3 million square feet of leasing activity at weighted average rental rates that were 18.9% higher than prior rates[14]. - Lease renewals accounted for approximately 75% of the leased square footage, indicating strong tenant retention and demand for high-quality assets[14]. - New leases signed during the quarter totaled 437 square feet, with a percentage change in GAAP rent of 22.2%[41]. - The company achieved a 30.7% increase in GAAP rent for leasing activity, weighted by square feet[52]. - Scheduled rent resets at Hawaii properties account for 13.0% of annualized rental revenues, indicating potential for revenue growth[48]. Financial Performance - Net loss attributable to common shareholders was $21.5 million, or $0.33 per diluted share, compared to a loss of $23.4 million in Q1 2024[14][19]. - Normalized FFO attributable to common shareholders was $13.5 million, or $0.20 per diluted share, reflecting an increase from $8.9 million in Q1 2024[14][18]. - NOI increased by 1.7% to $87.5 million, while Cash Basis NOI increased by 1.9% to $83.8 million compared to Q1 2024[14]. - Adjusted EBITDAre rose by 1.1% to $85.3 million compared to the same quarter last year[14]. - Total rental income for Q1 2025 was $111.9 million, slightly down from $112.2 million in Q1 2024[19]. - The company reported a net loss attributable to common shareholders of $(21,532,000)[52]. - For the three months ended March 31, 2025, the net loss was $31,169,000, an improvement from a net loss of $34,380,000 in the previous quarter[80]. - EBITDA for the same period was $80,190,000, slightly up from $79,203,000 in the prior quarter[80]. - Adjusted EBITDAre increased to $85,324,000 from $82,156,000 quarter-over-quarter[81]. - Normalized FFO attributable to common shareholders rose to $13,490,000, compared to $8,877,000 in the previous quarter, marking a significant increase of 52.9%[81]. Assets and Liabilities - Total assets as of March 31, 2025, amounted to $5,363,625, a decrease from $5,406,331 as of December 31, 2024[21]. - The company reported a total equity of $976,913 as of March 31, 2025, down from $1,009,330 at the end of 2024[21]. - The net debt to total gross assets ratio was 68.7% as of March 31, 2025, slightly up from 68.6% at the end of 2024[32]. - The company had a total debt balance of $4,303,196, with a significant portion maturing in the next 2.8 years[23]. - Total gross assets amount to $5,919,339,000, with total debt at $4,303,196,000, resulting in a net debt to annualized Adjusted EBITDAre ratio of 11.9x[52]. Tenant and Revenue Characteristics - As of March 31, 2025, approximately 76% of annualized rental revenues were derived from investment-grade tenants or their subsidiaries[14]. - The company’s tenant credit characteristics show that 37.0% of total annualized rental revenues come from subsidiaries of investment-grade rated parent entities[44]. - Top 10 tenants contribute 46.9% of total annualized rental revenues, with FedEx Corporation at 28.7% and Amazon.com Services, Inc. at 6.7%[45]. - The occupancy rate across properties is 94.6%, with the highest occupancy at Mountain Industrial REIT LLC at 99.8%[52]. - As of March 31, 2025, 387 leases are expiring, representing 56,680 square feet or 100% of total leased area, with annualized rental revenues of $443,909,000[48]. - The weighted average remaining lease term is 7.0 years, indicating stability in rental income[48]. Capital Expenditures and Debt Management - Total capital expenditures for the three months ended March 31, 2025, were $3,959,000, compared to $5,357,000 in the previous quarter[35]. - The weighted average interest rate on the company's debt was 5.53% as of March 31, 2025[23]. - The company reported interest expense of $69,813,000 for Q1 2025, slightly down from $71,739,000 in Q4 2024[79]. - The weighted average interest rate on the company's loans was 4.22% with a total principal balance of $538,700,000[73]. Joint Ventures and Consolidated Results - Consolidated Joint Venture reported rental income of $41,685,000 for Q1 2025, a decrease of 1.6% from $42,363,000 in Q1 2024[66]. - Total expenses for the Consolidated Joint Venture were $37,390,000 in Q1 2025, down 7.3% from $40,329,000 in Q1 2024[66]. - The net loss for the Consolidated Joint Venture was $24,801,000 in Q1 2025, compared to a net loss of $26,953,000 in Q1 2024, reflecting a 8% improvement[66]. - Normalized Funds From Operations (FFO) increased to $749,000 in Q1 2025 from a loss of $270,000 in Q1 2024[69]. - The Industrial Fund REIT LLC joint venture generated rental income of $19,635,000 in Q1 2025, an increase of 3.2% from $19,025,000 in Q1 2024[73]. Strategic Focus and Market Conditions - The company is focusing on market expansion and new product development to enhance future growth prospects[66]. - Geographic diversification shows that 12.2% of revenues come from Georgia, with significant contributions from other states, enhancing risk management[60]. - Forward-looking statements indicate expectations regarding leasing velocity and organic cash flow growth[101]. - Risks include tenant lease renewals, market conditions, and potential defaults affecting cash flows[101]. - ILPT's ability to maintain liquidity and manage capital expenditures is crucial for future performance[101]. - The company does not intend to update forward-looking statements unless required by law[102].