Financial Data and Key Metrics Changes - ILPT reported third-quarter normalized FFO of $17.4 million or $0.26 per share, representing a 26% increase sequentially and a 116% increase year-over-year [11] - Same property cash basis NOI increased by 3% compared to the same period last year, supported by strong renewal activity and rent growth [5] - Interest expense decreased by $4.4 million compared to the second quarter of 2025, totaling $63.5 million, due to a $1.16 billion fixed-rate debt refinancing completed in June [11] Business Line Data and Key Metrics Changes - The company completed 836,000 square feet of leasing during the third quarter, with renewals accounting for 70% of the activity [6][9] - The weighted average rental rates for the new leases were 22% higher than prior rates for the same space [6] - The portfolio consists of 411 distribution and logistics properties across 39 states, totaling 60 million square feet, with a weighted average lease term of 7.4 years [5] Market Data and Key Metrics Changes - Consolidated occupancy was reported at 94.1%, outperforming the U.S. industrial average by 150 basis points [6] - The leasing pipeline now exceeds 8 million square feet, with anticipated near-term conversion of approximately 75% [9][10] Company Strategy and Development Direction - The company is focused on evaluating opportunities to improve its balance sheet and reduce leverage, identifying three properties for sale totaling 867,000 square feet [7] - The anticipated sales price for these properties is approximately $55 million, with proceeds used to partially repay a $700 million loan due in 2032 [8] Management's Comments on Operating Environment and Future Outlook - Management noted that despite macroeconomic and tariff uncertainties, the industrial real estate sector continues to show resilience [4] - Looking ahead to the fourth quarter of 2025, normalized FFO is expected to be between $0.27 and $0.29 per share, excluding incentive fees [13] Other Important Information - The company recognized a $6.1 million impairment charge on one of the properties held for sale [12] - The net debt-to-total assets ratio decreased slightly to 69.3%, with a net debt coverage ratio remaining unchanged at 12 times [12] Q&A Session Summary Question: Guidance on incentive fees - Management indicated that a full-year incentive fee of $6.3 million would be recorded, with less than $2 million expected in Q4 [16][18] Question: GAAP rent increase on mainland assets - A specific deal with the United States Postal Service drove down the GAAP rent increase to 1.8% [23][25] Question: Disposition opportunities in 2026 - Management is constantly evaluating the portfolio and may sell more properties in 2026, particularly within the Mountain joint venture [28] Question: Update on leasing in Indianapolis - There are three proposals out in Indianapolis, with optimism for leasing in the first half of next year [30] Question: Leasing updates in Hawaii - A prospect for a full-site user is currently in diligence, with hopes for a lease [35] Question: Overall leasing and renewal outlook for 2026 - Management is making good progress on 2026 and 2027 expirations, with many signed LOIs or active lease negotiations [36]