Financial Data and Key Metrics Changes - The company achieved a record quarterly leasing volume of nearly 4 million sq ft with a weighted average rent roll-up of 25.7%, marking the fifth consecutive quarter of double-digit rent growth [5][9] - Normalized FFO grew 113% year-over-year, reaching $18.9 million or $0.29 per share, which was at the high end of guidance [12] - Same property cash basis NOI increased by 5.2% year-over-year [5] - Total shareholder return exceeded 55% in 2025, ranking the company third among all U.S. REITs [5] Business Line Data and Key Metrics Changes - The company completed 42 new and renewal leases totaling 7.3 million sq ft during 2025, expected to generate an increase of approximately $10.6 million in annualized rental revenue [7] - Renewals represented the majority of leasing activity, with a tenant retention rate of 96% [9] - Significant lease renewals included Amazon (2.3 million sq ft), Restoration Hardware (1.2 million sq ft), and FedEx (152,000 sq ft) [9][10] Market Data and Key Metrics Changes - Consolidated occupancy at year-end was 94.5%, a 40 basis point increase from the previous quarter [7] - The company’s portfolio consists of 409 properties across 39 states, totaling approximately 60 million sq ft, with a weighted average lease term of seven years [6] Company Strategy and Development Direction - The company is focused on improving its balance sheet and positioning for future growth, including refinancing $1.2 billion of floating rate debt into fixed rate debt [6] - The leasing pipeline consists of 6.4 million sq ft, with 3.8 million sq ft in advanced stages of negotiation [10] - The company aims to generate organic cash flow growth and reduce leverage, which has declined from 12.4x to 11.8x over the last year [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance and momentum, indicating a focus on leasing priorities in 2026 [8] - The company noted that while construction has slowed, tenant retention remains strong, and there is no significant concern regarding competing supply in core markets [45] Other Important Information - The company ended the quarter with cash on hand of $95 million and restricted cash of $88 million, with a total net debt to total assets ratio of 69% [14] - The company expects interest expense for the first quarter to be $61.5 million, including $57 million of cash interest expense [15] Q&A Session Summary Question: Non-cash interest amount for the quarter - The non-cash interest amount for the quarter is $4.5 million [20] Question: Update on another asset under contract for sale - The company had a property under LOI for about $50 million, but the tenant preferred to engage in a renewal discussion instead of purchasing the property [21] Question: Known move-outs to be aware of - There are no material known move-outs at this point, and progress is being made on expirations [22][23] Question: Changes in marketing process for vacancies - Progress is being made on the Indianapolis property, with lease comments currently being exchanged [24] Question: Interest expense forecast for Q1 - The forecasted interest expense for Q1 is $61.5 million, with a decrease expected in Q2 due to the impact of a cap [26][28] Question: Same store NOI growth drivers - The increase in same store NOI growth is primarily due to leasing activities, with cash impacts expected to hit in the latter half of 2026 and into 2027 [36][38] Question: Thoughts on refinancing the Monmouth JV loan - The company is actively evaluating refinance opportunities and has flexibility due to the extension option [42] Question: Competing supply in core markets - There is currently no significant concern regarding competing supply, as tenant retention remains strong [45]

Financial Data and Key Metrics Changes - The company achieved a record quarterly leasing volume of nearly 4 million sq ft with a weighted average rent roll-up of 25.7%, marking the fifth consecutive quarter of double-digit rent growth [5][9] - Normalized FFO grew 113% year-over-year, reaching $18.9 million or $0.29 per share, which was at the high end of guidance [12][5] - Same property cash basis NOI increased by 5.2% year-over-year [5] - Total shareholder return exceeded 55% in 2025, ranking the company third among all U.S. REITs [5] Business Line Data and Key Metrics Changes - The company completed 42 new and renewal leases and two rent resets totaling 7.3 million sq ft, expected to generate an increase of approximately $10.6 million in annualized rental revenue [7] - Renewals represented the majority of leasing activity, with a tenant retention rate of 96% [9] - Notable lease renewals included Amazon and Restoration Hardware, with significant roll-ups in rent [9][10] Market Data and Key Metrics Changes - Consolidated occupancy at year-end was 94.5%, a 40 basis point increase from Q3 [7] - The company owns 409 properties across 39 states, totaling approximately 60 million sq ft, with a weighted average lease term of seven years [6] Company Strategy and Development Direction - The company is focused on leasing priorities, particularly a 2.2 million sq ft land parcel in Hawaii and a 535,000 sq ft property in Indianapolis [8] - The company aims to generate organic cash flow growth and reduce leverage, which has declined from 12.4x to 11.8x over the last year [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance and momentum, positioning the company well for 2026 [8] - The company noted that tenant retention remains strong, and there are no material known move-outs expected [23][25] - Management indicated that while construction has slowed, the company has not seen significant issues with competing supply [45] Other Important Information - The company successfully refinanced $1.2 billion of floating rate debt into fixed rate debt, resulting in annual cash savings of over $8 million [6] - The company ended the quarter with cash on hand of $95 million and restricted cash of $88 million, with a total net debt to total assets ratio of 69% [14] Q&A Session Summary Question: What is the non-cash interest amount for the quarter? - The non-cash interest amount for the quarter is $4.5 million [20] Question: Can you provide an update on another asset that was under contract for sale? - The company had a property under LOI for about $50 million, but the tenant preferred to engage in a renewal discussion instead of purchasing the property [21] Question: Are there any known move-outs we need to be aware of? - There are no material known move-outs at this point, and progress is being made on expirations [22][23] Question: Are there any changes in the marketing process for the Indianapolis and Hawaii vacancies? - Progress is being made in Indianapolis, and discussions are ongoing in Hawaii, but no concessions can be made due to the nature of the ground lease [24][25] Question: How did interest expense change from Q4 to Q1? - The change is primarily due to the number of days in the quarter, with 92 days in Q4 and 90 in Q1 [26] Question: What is the thought process around refinancing the Monmouth JV loan? - The company is actively evaluating refinance opportunities and has flexibility due to the extension option [42]

Financial Data and Key Metrics Changes - The company achieved a record quarterly leasing volume of nearly 4 million sq ft with a weighted average rent roll-up of 25.7%, marking the fifth consecutive quarter of double-digit rent growth [5][10] - Normalized FFO grew 113% year-over-year, reaching $18.9 million or $0.29 per share, which was at the high end of guidance [5][13] - Same property cash basis NOI increased by 5.2% year-over-year, totaling $85.7 million [5][13] - Total shareholder return exceeded 55% in 2025, ranking the company third among all U.S. REITs [5] Business Line Data and Key Metrics Changes - The company completed 42 new and renewal leases and two rent resets, totaling 7.3 million sq ft during 2025 [7] - Notable lease renewals included Amazon for 2.3 million sq ft with a roll-up in rent of 26.8% and Restoration Hardware for 1.2 million sq ft with a roll-up of 29% [10][11] - The tenant retention rate was reported at 96% for the quarter [10] Market Data and Key Metrics Changes - Consolidated occupancy at year-end was 94.5%, a 40 basis point increase from the previous quarter [7] - The company’s portfolio includes 409 properties across 39 states, totaling approximately 60 million sq ft, with a weighted average lease term of seven years [6] Company Strategy and Development Direction - The company is focused on leasing priorities, particularly a 2.2 million sq ft land parcel in Hawaii and a 535,000 sq ft property in Indianapolis [9] - The company aims to generate organic cash flow growth and reduce leverage, which has improved from 12.4x to 11.8x over the last year [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance and momentum, positioning the company well for 2026 [9][16] - The company noted that while construction has slowed, tenant retention remains strong, and there is no significant concern regarding competing supply in core markets [45] Other Important Information - The company successfully refinanced $1.2 billion of floating rate debt into fixed rate debt, resulting in annual cash savings of over $8 million [6] - The annualized dividend was increased from $0.04 to $0.20 per share [6] Q&A Session Summary Question: What is the non-cash interest amount for the quarter? - The non-cash interest amount for the quarter is $4.5 million [20] Question: Can you provide an update on another asset that was under contract for sale? - The property was under LOI for about $50 million, but the tenant preferred to engage in a renewal discussion instead of purchasing [21] Question: Are there any known move-outs we need to be aware of? - There are no material move-outs at this point, and progress is being made on expirations for 2026 and 2027 [22] Question: Are there any changes in the marketing process for the Indianapolis and Hawaii vacancies? - Progress is being made in Indianapolis, with lease comments currently being exchanged [24] - In Hawaii, discussions are ongoing, but the complexity of the parcel presents timing delays [25] Question: How did interest expense change from Q4 to Q1? - The interest expense is forecasted to be $61.5 million for Q1, influenced by the number of days in the quarter [26] Question: What is the thought process around refinancing the Monmouth JV loan? - The company is actively evaluating refinance opportunities and has flexibility due to the extension option [42]

Summary of Industrial Logistics Properties Trust (ILPT) Conference Call Company Overview - **Company**: Industrial Logistics Properties Trust (ILPT) - **Portfolio**: Owns and leases industrial and logistics properties across the United States, totaling approximately 60 million square feet across 411 properties in 39 states, with a 95% lease rate and a weighted average lease term of 7.8 years [1][2] Key Insights Unique Market Position - **Hawaii Portfolio**: ILPT has a significant presence in Hawaii, owning 226 properties totaling about 16.7 million square feet, primarily ground leased. This region contributes 28% to annualized revenues, with rent increases of 20% to 30% expected as leases expire [2][4] - **Tenant Quality**: 76% of revenues come from investment-grade rated tenants or secure land leases in Hawaii, indicating a strong tenant base [4] Financial Performance - **Debt Management**: Current leverage is at 11.9 times, with all debt at fixed rates or hedged through interest rate caps, averaging 5.5% as of March 31 [4][5] - **No Debt Maturities**: ILPT has no debt maturities until February 2027, providing stability [5] Market Dynamics - **Tariff Impact**: The company believes its portfolio is less sensitive to global tariff changes due to its unique tenant mix and geographic focus, primarily east of the Mississippi [3][13] - **Tenant Retention**: Increased tenant retention has been observed, with tenants opting to renew leases amid rising construction costs and tariff uncertainties [15] Growth Opportunities - **Rent Growth**: Historical rent resets every ten years have led to significant roll-ups in rents, with increases of 60% to 80% noted in recent years [12] - **Vacancy Management**: ILPT is actively working to fill vacancies, including a significant 2.2 million square feet property in Hawaii, which has impacted occupancy rates but not annualized revenue significantly [21][30] Strategic Focus Business Plan Adjustments - **Acquisition of Monmouth**: The acquisition in February 2022 has led to a reevaluation of the business plan due to rising interest rates and market volatility. The company is focusing on tenant retention and exploring asset sales to reduce leverage [18][19] - **Asset Sales**: While there is interest in asset sales, the current debt structure complicates this process. The company is evaluating inbound offers and considering sales that align with their debt yield requirements [38][42] Future Considerations - **Dividend Strategy**: The company is assessing the potential for reinstating dividends as market conditions improve and cash retention needs decrease [42][46] - **Long-term Outlook**: ILPT aims for a higher stock price and reduced vacancies in the coming year, focusing on operational control and leasing strategies [48] Additional Insights - **Market Conditions**: The company is experiencing a competitive leasing environment in Indianapolis, with new products entering the market, but remains optimistic about its positioning as a low-cost alternative [28] - **Infrastructure Challenges**: The Hawaii parcel's lack of utilities and infrastructure presents challenges for development, but the company prefers to hold the land for future appreciation [25][24] This summary encapsulates the key points discussed during the conference call, highlighting ILPT's strategic positioning, financial health, and market dynamics.

Financial Data and Key Metrics Changes - Cash basis NOI grew by nearly 2% year over year, while normalized FFO increased 43% year over year and 52% sequentially [7][15] - NOI for the quarter was reported at $87,500,000, with cash basis NOI at $83,800,000 and adjusted EBITDAre at $85,300,000, all showing increases year over year and sequentially [16] - Interest expense decreased to $69,800,000, reflecting a reduction in interest rate cap costs [16] Business Line Data and Key Metrics Changes - The company executed over 2,300,000 square feet of total leasing activity with an occupancy rate of 94.6%, reflecting a sequential increase of 20 basis points [7] - The Mainland properties accounted for nearly 80% of renewal activity, with significant leases signed with major tenants [11] - In Hawaii, 492,000 square feet of renewals were signed at rental rates 18.2% higher than prior rents [9] Market Data and Key Metrics Changes - The company is monitoring the evolving landscape surrounding global tariffs, which may impact tenant demand and the overall leasing environment [10] - The leasing pipeline includes 32 deals for more than 7,400,000 square feet, with anticipated roll-ups in rent of 20% on the Mainland and 30% in Hawaii [13] Company Strategy and Development Direction - The company aims to maximize mark-to-market growth opportunities, maintain strong tenant retention, and lease vacancies, particularly in undeveloped land parcels [10] - There is a focus on evaluating opportunities to improve the balance sheet and reduce leverage, potentially through refinancing existing debt and strategic property dispositions [10][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's ability to withstand short-term volatility due to its high-quality assets and diversified tenant roster [10] - The company anticipates that tariffs may positively impact tenant demand, leading to higher tenant retention in the short term [38] Other Important Information - The company reported a strong start to the year with solid financial performance and steady demand for industrial real estate [17] - The company has no debt maturities until 2027, with all debt currently carried at fixed rates [17] Q&A Session Summary Question: Details on bad debt recovery impact - The financial impact from bad debt recovery in the first quarter was around $750,000, which is reflected in revenues [20][21] Question: Insights on leasing timelines - Leasing timelines have elongated, with tenants looking to start renewal processes earlier due to more stakeholders involved in lease decisions [22][23] Question: Status of notable vacancies in Hawaii and Indianapolis - Activity has been seen for the Hawaii property, with proposals out, while the Indianapolis property is actively being marketed with proposals but no finalized leases yet [24][26] Question: Motivation for leverage reduction and property sales - The company is evaluating unsolicited offers for properties, particularly from owner-users, which may lead to higher valuations [28][30] Question: Impact of tariffs on tenant decisions - Tariffs are anticipated to be beneficial for tenant demand, with some tenants opting to stay in place rather than relocate due to concerns about construction costs [37][38] Question: Exposure of Hawaii portfolio to inbound travel - The portfolio's exposure to inbound travel is minimal, as tenants generally serve the local economy rather than relying on tourism [39]

Financial Performance - Net loss attributable to common shareholders was $21532000, or $033 per diluted share[17] - Normalized FFO attributable to common shareholders was $13490000, or $020 per diluted share[17] - NOI increased by 17% to $87502000 and Cash Basis NOI increased by 19% to $83780000, compared to the first quarter of 2024[17] - Adjusted EBITDAre increased by 11% to $85324000 compared to the first quarter of 2024[17] Portfolio and Leasing Activity - Executed 2319000 square feet of total leasing activity at weighted average rental rates that were 189% higher than prior rental rates for the same space and with a weighted average lease term of 60 years[17] - Lease renewals accounted for approximately 75% of leased square footage, highlighting strong tenant retention[17] - Approximately 76% of annualized rental revenues are generated from investment grade tenants (or their subsidiaries) and Hawaii land leases[17] - Portfolio occupancy stood at 946% with a weighted average lease term of 78 years[17] Debt and Financing - Mountain JV exercised the second of its three, one-year extension options for the maturity date of its $14 billion floating rate loan and purchased a one-year interest rate cap for $15000000 with a SOFR strike rate equal to 310%[17] - ILPT had $108000000 of cash, excluding restricted cash[17]