Industrial Logistics Properties Trust(US:ILPT)2025-04-29 20:26Property and Occupancy - As of March 31, 2025, the company owned 411 properties with approximately 59,890,000 rentable square feet and a 94.6% occupancy rate[76]. - As of March 31, 2025, 5.4% of rentable square feet was vacant, and $5,478,000 or 1.2% of annualized rental revenues was included in leases scheduled to expire by March 31, 2026[87]. - FedEx and Amazon accounted for 22.5% and 8.0% of total leased square feet, representing 28.7% and 6.7% of total annualized rental revenues, respectively[86]. Rental Rates and Income - The average effective rental rate increased to $7.92 per square foot as of March 31, 2025, compared to $7.58 in 2024[79]. - During the three months ended March 31, 2025, the company completed new and renewal leases totaling 2,175,000 square feet, with a weighted average rental rate change of 18.5%[83]. - Approximately 144,000 square feet of land at Hawaii Properties had rent resets that were 34.6% higher than prior rental rates[84]. - Rental income for Q1 2025 was $111,905, a decrease of 0.3% from $112,235 in Q1 2024, primarily due to vacancies at certain properties[91][92]. Financial Performance - Net operating income (NOI) increased by 1.7% to $87,502 in Q1 2025 from $86,052 in Q1 2024[91][100]. - Net loss attributable to common shareholders improved to $(21,532) in Q1 2025 from $(23,403) in Q1 2024, reflecting an 8.0% reduction[91][103]. - Funds from operations (FFO) attributable to common shareholders increased to $12,523 in Q1 2025, up from $9,450 in Q1 2024[91][103]. - Normalized FFO attributable to common shareholders also rose to $13,490 in Q1 2025, compared to $9,450 in Q1 2024[91][103]. Expenses and Cash Flow - General and administrative expenses rose by 7.1% to $8,238 in Q1 2025, driven by accrued incentive management fees of $967[91][95]. - Interest income decreased by 31.0% to $1,968 in Q1 2025, attributed to lower interest rates and average cash balances[91][96]. - Cash and cash equivalents at the end of Q1 2025 were $236,702, slightly up from $236,477 at the end of Q1 2024[91][105]. Debt and Financing - The company plans to explore refinancing alternatives and property sales as debt approaches maturity[91][107]. - Total outstanding floating rate debt as of March 31, 2025, was $2,635,000, with an annual interest expense of $167,340[124]. - A one percentage point increase in interest rates would result in an annual floating rate interest expense of $196,381 and a decrease in annual earnings per share of $2.98[127]. - The ILPT Floating Rate Loan had a weighted average interest rate of 6.71% for the three months ended March 31, 2025, compared to 6.18% in 2024[116]. - The Mountain Floating Rate Loan had a weighted average interest rate of 5.82% for the three months ended March 31, 2025, down from 6.09% in 2024[116]. Tenant and Lease Management - The company has a weighted average remaining lease term of 7.8 years across its portfolio[85]. - American Tire Distributors, which represented 1.6% of total annualized rental revenues, filed for Chapter 11 bankruptcy but intends to modify lease terms rather than vacate[89]. - The company plans to seek rents equal to or higher than historical rents during lease renewals and extensions, depending on market conditions[87]. Capital Expenditures and Obligations - For the three months ended March 31, 2025, total capital expenditures amounted to $3,959,000, an increase of 17.3% from $3,373,000 in the same period of 2024[109]. - As of March 31, 2025, committed but unspent tenant-related obligations were $6,786,000, expected to be spent within the next 12 months[110]. Shareholder Returns - The company declared and paid a regular quarterly distribution of $661,000 to common shareholders during the three months ended March 31, 2025[119]. Compliance and Accounting - The company believes it was in compliance with all covenants and terms under the agreements governing its loans as of March 31, 2025[117]. - There have been no significant changes in critical accounting estimates since the year ended December 31, 2024[122].