Industrial Logistics Properties Trust(US:ILPT)2025-10-28 20:57Property Portfolio and Leasing Activity - As of September 30, 2025, the company owned 411 properties with approximately 59,890,000 rentable square feet and a 94.1% occupancy rate[84]. - The average effective rental rate per square foot for all properties increased to $7.88 for the three months ended September 30, 2025, compared to $7.69 for the same period in 2024[89]. - During the nine months ended September 30, 2025, the company completed rent resets for approximately 204,000 square feet at its Hawaii Properties, resulting in rental rates that were 29.1% higher than prior rates[94]. - The company entered into new and renewal leases totaling 3,122,000 square feet during the nine months ended September 30, 2025, with a weighted average rental rate change of 19.5%[93]. - As of September 30, 2025, FedEx and Amazon accounted for 22.7% and 8.1% of total leased square feet, representing 28.3% and 6.8% of total annualized rental revenues, respectively[96]. - 4.0% of annualized rental revenues, amounting to $17,435, is scheduled to expire by September 30, 2026, with 5.9% of rentable square feet currently vacant[97]. - The company’s portfolio includes properties in 39 states, with a weighted average remaining lease term of 7.4 years[86]. - The company anticipates strong demand for industrial properties due to long-term growth in e-commerce and supply chain resiliency, despite economic uncertainties[85]. Financial Performance - Rental income for the three months ended September 30, 2025, was $110,184, an increase of 2.1% compared to $107,969 for the same period in 2024[99]. - Net operating income for the three months ended September 30, 2025, was $86,417, reflecting a 2.9% increase from $83,986 in 2024[99]. - Total operating expenses decreased by 0.9% to $23,767 for the three months ended September 30, 2025, compared to $23,983 in 2024[99]. - General and administrative expenses increased by 46.3% to $10,586 in the three months ended September 30, 2025, up from $7,237 in 2024[99]. - Net loss attributable to common shareholders for the three months ended September 30, 2025, was $21,565, a decrease of 13.7% from $24,990 in 2024[99]. - Rental income for the nine months ended September 30, 2025, was $328,856, a slight decrease of 0.9% from $331,744 in 2024[107]. - Net loss for the nine months ended September 30, 2025, was $91,994, a reduction of 10.5% compared to $102,788 in 2024[107]. - Net loss per share attributable to common shareholders for the nine months ended September 30, 2025, was $0.98, improving from $1.09 in 2024[107]. - NOI for the three months ended September 30, 2025, was $86,950, compared to $84,709 for the same period in 2024, reflecting a 2.9% increase[118]. - FFO attributable to common shareholders for the three months ended September 30, 2025, was $14,947, up from $8,063 in 2024, representing an 85.5% increase[121]. Expenses and Impairments - The company recognized a loss on impairment of real estate amounting to $6,081 during the three months ended September 30, 2025[104]. - General and administrative expenses increased primarily due to accrued incentive management fees of $4,716 for the 2025 period[111]. - The company recognized a loss on impairment of real estate of $6,081 during the 2025 period[112]. - Interest expense decreased by 14.2% to $63,470 for the three months ended September 30, 2025, compared to $73,936 in 2024[99]. - The company recognized a $5,070 loss on extinguishment of debt related to the repayment of the ILPT Floating Rate Loan during the nine months ended September 30, 2025[134]. Cash Flow and Debt Management - Cash and cash equivalents at the end of the nine months ended September 30, 2025, were $177,704, down from $264,931 in 2024[123]. - The company had two properties under agreements to sell for an aggregate sales price of $51,650 as of October 28, 2025[127]. - The company expects to maintain sufficient cash flow to meet operating and capital obligations for the foreseeable future[125]. - As of September 30, 2025, the company had an aggregate principal amount of $4,218,799 in indebtedness, including a $1,160,000 mortgage loan and a $700,000 mortgage loan[133]. - The Mountain Floating Rate Loan has a principal balance of $1,400,000 with an annual interest rate of 5.87%, maturing on March 9, 2026[143]. - The weighted average interest rate for fixed rate debt as of September 30, 2025, was 5.21%, with total annual interest expense of $146,851[148]. - The company has a $1,160,000 fixed rate mortgage loan with an annual interest rate of 6.40%, maturing in July 2030[134]. - The company maintains a minimum consolidated net worth requirement of at least $250,000 and liquidity of at least $15,000 under the terms of its $650,000 mortgage loan[136]. Distributions and Joint Ventures - During the nine months ended September 30, 2025, the company declared and paid regular quarterly distributions totaling $4,640 to common shareholders[138]. - The unconsolidated joint venture made cash distributions of $990 for each of the three months ended September 30, 2025, and 2024[131]. - The company holds a 22% equity interest in an unconsolidated joint venture as of September 30, 2025[84]. Interest Rate Sensitivity - A one percentage point increase in interest rates would result in a decrease in annual earnings per share of $1.48, assuming the weighted average interest rate of the Mountain Floating Rate Loan increases to 6.87%[146]. - Interest expense decreased due to the repayment of the ILPT Floating Rate Loan in June 2025[113]. - The company expects to spend $4,988 in committed but unspent tenant-related obligations over the next 12 months[129].