Industrial Logistics Properties Trust Announces Fourth Quarter 2022 Results

Executed 1.4 Million Square Feet of Leasing at 18.7% Higher Rental Rates

Full Year Leasing Activity of 7.8 Million Square Feet at 47.3% Higher Rental Rates

Net Loss Attributable to Common Shareholders of $0.48 Per Share

Normalized FFO Attributable to Common Shareholders of $0.08 Per Share

Industrial Logistics Properties Trust (Nasdaq: ILPT) today announced its financial results for the quarter ended December 31, 2022.

Yael Duffy, President and Chief Operating Officer of ILPT, made the following statement:

“As we look ahead to 2023, we believe the strength of industrial real estate fundamentals will continue to allow us to organically grow cash flows through mark-to-market opportunities and tenant retention as evidenced by our record 2022 leasing activity and related rent roll-ups. With a 99.1% leased portfolio, exceptional tenant roster and no near-term debt maturities, we will continue to be patient as we evaluate opportunities to strengthen our balance sheet and reduce leverage.”

Quarterly Results:

  • Net loss attributable to common shareholders was $31.0 million, or $0.48 per diluted share.
  • Normalized funds from operations, or Normalized FFO, attributable to common shareholders were $5.4 million, or $0.08 per diluted share.
  • Same property net operating income, or NOI, and same property Cash Basis NOI for the quarter ended December 31, 2022 increased 1.4% and 0.3%, respectively, compared to the prior year quarter. ILPT reduced its reserves for uncollectible revenues from certain tenants by $0.4 million during the prior year quarter. Excluding such reduction, same property NOI and same property Cash Basis NOI increased 2.3% and 1.3%, respectively.

(dollars in thousands, except per share data)

Three Months Ended December 31,

Financial (1)

2022

 

2021

 

Change

Net (loss) income attributable to common shareholders

($31,043)

 

$63,207

 

(149.1)%

Net (loss) income attributable to common shareholders per diluted share

$(0.48)

 

$0.97

 

(149.5)%

Normalized FFO attributable to common shareholders

$5,440

 

$31,714

 

(82.8)%

Normalized FFO attributable to common shareholders per diluted share

$0.08

 

$0.49

 

(83.7)%

Adjusted EBITDAre

$79,213

 

$42,162

 

87.9%

NOI

$83,598

 

$43,771

 

91.0%

Cash Basis NOI

$79,931

 

$41,925

 

90.7%

Same property NOI

$42,197

 

$41,622

 

1.4%

Same property Cash Basis NOI

$39,923

 

$39,801

 

0.3%

(1)

 

Additional information and reconciliations of net income (loss) attributable to common shareholders determined in accordance with U.S. generally accepted accounting principles, or GAAP, to certain non-GAAP measures, including funds from operations, or FFO, attributable to common shareholders, Normalized FFO attributable to common shareholders, earnings before interest, taxes, depreciation and amortization, or EBITDA, EBITDA for real estate, or EBITDAre, Adjusted EBITDAre, NOI, Cash Basis NOI, same property NOI and same property Cash Basis NOI for the quarters ended December 31, 2022 and 2021 appear later in this press release.

 

Three Months Ended

Leasing Activity

December 31, 2022

Leasing activity for new and renewal leases and rent resets (square feet)

1,369,000

Weighted average lease term for new and renewal leases (by square feet)

8.0 years

Weighted average rental rate change versus prior rental rate for same space (by square feet)

18.7%

Commitments for leasing costs and concessions for new and renewal leases (per square foot per year)

$0.47

 

Three Months Ended

Occupancy

December 31, 2022

 

September 30, 2022

 

December 31, 2021

Occupancy

99.1%

 

99.2%

 

99.2%

Same property occupancy

99.1%

 

99.3%

 

99.2%

Conference Call:

On Wednesday, February 15, 2023 at 10:00 am Eastern Time, Yael Duffy, President and Chief Operating Officer, and Brian Donley, Chief Financial Officer and Treasurer, will host a conference call to discuss ILPT’s fourth quarter 2022 financial results.

The conference call telephone number is (877) 418-4826. Participants calling from outside the United States and Canada should dial (412) 902-6758. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through 11:59 p.m. on Wednesday, February 22, 2023. To access the replay, dial (412) 317-0088. The replay pass code is 9022133.

A live audio webcast of the conference call will also be available in a listen-only mode on ILPT’s website, at www.ilptreit.com. Participants wanting to access the webcast should visit ILPT’s website about five minutes before the call. The archived webcast will be available for replay on ILPT’s website following the call for about one week. The transcription, recording and retransmission in any way of ILPT’s fourth quarter conference call are strictly prohibited without the prior written consent of ILPT.

Supplemental Data:

A copy of ILPT’s Fourth Quarter 2022 Supplemental Operating and Financial Data is available for download at ILPT’s website, which is located at www.ilptreit.com. ILPT’s website is not incorporated as part of this press release.

About Industrial Logistics Properties Trust:

Industrial Logistics Properties Trust (Nasdaq: ILPT) is a real estate investment trust, or REIT, focused on owning and leasing high quality distribution and logistics properties that serve the growing needs of e-commerce. As of December 31, 2022, ILPT’s portfolio consisted of 413 properties containing approximately 60.0 million rentable square feet located in 39 states. More than 78% of ILPT’s annualized rental revenues as of December 31, 2022 are derived from investment grade tenants, tenants that are subsidiaries of investment grade rated entities or Hawaii land leases. ILPT is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $37 billion in assets under management as of December 31, 2022 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. ILPT is headquartered in Newton, MA. For more information, visit www.ilptreit.com.

Non-GAAP Financial Measures:

ILPT presents certain “non-GAAP financial measures” within the meaning of the applicable rules of the Securities and Exchange Commission, or SEC, including FFO attributable to common shareholders, Normalized FFO attributable to common shareholders, EBITDA, EBITDAre, Adjusted EBITDAre, NOI, Cash Basis NOI, same property NOI and same property Cash Basis NOI. These measures do not represent cash generated by operating activities in accordance with GAAP and should not be considered alternatives to net income (loss) or net income (loss) attributable to common shareholders as indicators of ILPT’s operating performance or as measures of ILPT’s liquidity. These measures should be considered in conjunction with net income (loss) and net income (loss) attributable to common shareholders as presented in ILPT’s consolidated statements of income (loss). ILPT considers these non-GAAP measures to be appropriate supplemental measures of operating performance for a REIT, along with net income (loss) and net income (loss) attributable to common shareholders. ILPT believes these measures provide useful information to investors because by excluding the effects of certain historical amounts, such as depreciation and amortization expense, they may facilitate a comparison of ILPT’s operating performance between periods and with other REITs and, in the case of NOI and Cash Basis NOI, reflecting only those income and expense items that are generated and incurred at the property level may help both investors and management to understand the operations of ILPT’s properties.

Please see the pages attached hereto for a more detailed statement of ILPT’s operating results and financial condition and for an explanation of ILPT’s calculation of FFO attributable to common shareholders and Normalized FFO attributable to common shareholders, EBITDA, EBITDAre, Adjusted EBITDAre, NOI, Cash Basis NOI, same property NOI and same property Cash Basis NOI and reconciliations of those amounts to amounts determined in accordance with GAAP.

Industrial Logistics Properties Trust

Consolidated Statements of Income (Loss)

(amounts in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

 

Rental income

 

$

106,339

 

 

$

56,496

 

 

$

388,151

 

 

$

219,874

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

Real estate taxes

 

 

14,164

 

 

 

7,781

 

 

 

50,624

 

 

 

30,134

 

Other operating expenses

 

 

8,577

 

 

 

4,944

 

 

 

30,855

 

 

 

18,678

 

Depreciation and amortization

 

 

46,886

 

 

 

13,396

 

 

 

160,982

 

 

 

50,598

 

General and administrative

 

 

7,981

 

 

 

4,006

 

 

 

32,877

 

 

 

16,724

 

Acquisition and other transaction related costs

 

 

 

 

 

486

 

 

 

586

 

 

 

1,132

 

Loss on impairment of real estate

 

 

 

 

 

 

 

 

100,747

 

 

 

 

Total expenses

 

 

77,608

 

 

 

30,613

 

 

 

376,671

 

 

 

117,266

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

 

763

 

 

 

 

 

 

2,663

 

 

 

 

Interest expense (including net amortization of debt issuance costs, premiums and discounts of $6,709, $506, $96,974 and $2,022, respectively)

 

 

(71,765

)

 

 

(9,157

)

 

 

(280,051

)

 

 

(35,625

)

Gain (loss) on sale of real estate

 

 

 

 

 

11,114

 

 

 

(10

)

 

 

12,054

 

Loss on equity securities

 

 

 

 

 

 

 

 

(5,758

)

 

 

 

Loss on early extinguishment of debt

 

 

 

 

 

 

 

 

(22,198

)

 

 

 

(Loss) income before income tax expense and equity in earnings of unconsolidated joint venture

 

 

(42,271

)

 

 

27,840

 

 

 

(293,874

)

 

 

79,037

 

Income tax benefit (expense)

 

 

68

 

 

 

(96

)

 

 

(45

)

 

 

(273

)

Equity in earnings of unconsolidated joint venture

 

 

444

 

 

 

35,463

 

 

 

7,078

 

 

 

40,918

 

Net (loss) income

 

 

(41,759

)

 

 

63,207

 

 

 

(286,841

)

 

 

119,682

 

Net loss attributable to noncontrolling interest

 

 

10,716

 

 

 

 

 

 

60,118

 

 

 

 

Net (loss) income attributable to common shareholders

 

$

(31,043

)

 

$

63,207

 

 

$

(226,723

)

 

$

119,682

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic

 

 

65,307

 

 

 

65,212

 

 

 

65,248

 

 

 

65,169

 

Weighted average common shares outstanding - diluted

 

 

65,307

 

 

 

65,231

 

 

 

65,248

 

 

 

65,211

 

 

 

 

 

 

 

 

 

 

Per common share data (basic and diluted):

 

 

 

 

 

 

 

 

Net (loss) income attributable to common shareholders

 

$

(0.48

)

 

$

0.97

 

 

$

(3.47

)

 

$

1.83

 

Industrial Logistics Properties Trust

Calculation and Reconciliation of Funds from Operations Attributable to Common Shareholders and Normalized Funds from Operations Attributable to Common Shareholders (1)

(amounts in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

 

Net (loss) income attributable to common shareholders

 

$

(31,043

)

 

$

63,207

 

 

$

(226,723

)

 

$

119,682

 

Depreciation and amortization

 

 

46,886

 

 

 

13,396

 

 

 

160,982

 

 

 

50,598

 

Equity in earnings of unconsolidated joint venture

 

 

(444

)

 

 

(35,463

)

 

 

(7,078

)

 

 

(40,918

)

Loss on equity securities

 

 

 

 

 

 

 

 

5,758

 

 

 

 

Share of FFO from unconsolidated joint venture

 

 

1,291

 

 

 

1,202

 

 

 

6,406

 

 

 

4,823

 

Loss on impairment of real estate

 

 

 

 

 

 

 

 

100,747

 

 

 

 

(Gain) loss on sale of real estate

 

 

 

 

 

(11,114

)

 

 

10

 

 

 

(12,054

)

FFO adjustments attributable to noncontrolling interest

 

 

(11,250

)

 

 

 

 

 

(38,695

)

 

 

 

FFO attributable to common shareholders

 

 

5,440

 

 

 

31,228

 

 

 

1,407

 

 

 

122,131

 

Loss on early extinguishment of debt

 

 

 

 

 

 

 

 

22,198

 

 

 

 

Acquisition, transaction related and certain other financing costs (2)

 

 

 

 

 

486

 

 

 

80,992

 

 

 

1,132

 

Normalized FFO adjustments attributable to noncontrolling interest

 

 

 

 

 

 

 

 

(28,379

)

 

 

 

Normalized FFO attributable to common shareholders

 

$

5,440

 

 

$

31,714

 

 

$

76,218

 

 

$

123,263

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic

 

 

65,307

 

 

 

65,212

 

 

 

65,248

 

 

 

65,169

 

Weighted average common shares outstanding - diluted

 

 

65,307

 

 

 

65,231

 

 

 

65,248

 

 

 

65,211

 

 

 

 

 

 

 

 

 

 

Per common share data (basic and diluted):

 

 

 

 

 

 

 

 

FFO attributable to common shareholders

 

$

0.08

 

 

$

0.48

 

 

$

0.02

 

 

$

1.87

 

Normalized FFO attributable to common shareholders

 

$

0.08

 

 

$

0.49

 

 

$

1.17

 

 

$

1.89

 

Distributions declared

 

$

0.01

 

 

$

0.33

 

 

$

0.68

 

 

$

1.32

 

(1)

 

ILPT calculates FFO attributable to common shareholders and Normalized FFO attributable to common shareholders as shown above. FFO attributable to common shareholders is calculated on the basis defined by The National Association of Real Estate Investment Trusts, or Nareit, which is net income (loss) attributable to common shareholders, calculated in accordance with GAAP, excluding loss on impairment of real estate, any gain or loss on sale of real estate, equity in earnings of unconsolidated joint venture and any realized and unrealized gains or losses on equity securities, plus real estate depreciation and amortization of consolidated properties and its proportionate share of FFO of the unconsolidated joint venture properties and minus FFO adjustments attributable to noncontrolling interest, as well as certain other adjustments currently not applicable to ILPT. In calculating Normalized FFO attributable to common shareholders, ILPT adjusts for the items shown above including similar adjustments for ILPT’s unconsolidated joint venture, if any. FFO attributable to common shareholders and Normalized FFO attributable to common shareholders are among the factors considered by ILPT’s Board of Trustees when determining the amount of distributions to ILPT’s shareholders. Other factors include, but are not limited to, requirements to maintain ILPT’s qualification for taxation as a REIT, limitations in the agreements governing ILPT’s debt, the availability to ILPT of debt and equity capital, ILPT’s distribution rate as a percentage of the trading price of its common shares, or dividend yield, and ILPT’s dividend yield compared to the dividend yields of other industrial REITs, ILPT’s expectation of its future capital requirements and operating performance and ILPT’s expected needs for and availability of cash to pay its obligations. Other real estate companies and REITs may calculate FFO attributable to common shareholders and Normalized FFO attributable to common shareholders differently than ILPT does.

 

(2)

 

Amount for the year ended December 31, 2022 primarily includes certain debt issuance costs recorded as interest expense related to ILPT’s bridge loan facility and other transaction related costs expensed under GAAP.

Industrial Logistics Properties Trust

Calculation and Reconciliation of EBITDA, EBITDAre and Adjusted EBITDAre (1)

(dollars in thousands)

(unaudited)

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

Net (loss) income

$

(41,759

)

 

$

63,207

 

 

$

(286,841

)

 

$

119,682

 

Plus: interest expense

 

71,765

 

 

 

9,157

 

 

 

280,051

 

 

 

35,625

 

Plus: income tax (benefit) expense

 

(68

)

 

 

96

 

 

 

45

 

 

 

273

 

Plus: depreciation and amortization

 

46,886

 

 

 

13,396

 

 

 

160,982

 

 

 

50,598

 

EBITDA

 

76,824

 

 

 

85,856

 

 

 

154,237

 

 

 

206,178

 

Loss on impairment of real estate

 

 

 

 

 

 

 

100,747

 

 

 

 

(Gain) loss on sale of real estate

 

 

 

 

(11,114

)

 

 

10

 

 

 

(12,054

)

Equity in earnings of unconsolidated joint venture

 

(444

)

 

 

(35,463

)

 

 

(7,078

)

 

 

(40,918

)

Share of EBITDAre from unconsolidated joint venture

 

2,432

 

 

 

2,000

 

 

 

9,949

 

 

 

8,013

 

Loss on equity securities

 

 

 

 

 

 

 

5,758

 

 

 

 

EBITDAre

 

78,812

 

 

 

41,279

 

 

 

263,623

 

 

 

161,219

 

Plus: acquisition and other transaction related costs

 

 

 

 

486

 

 

 

586

 

 

 

1,132

 

Plus: general and administrative expense paid in common shares (2)

 

401

 

 

 

397

 

 

 

2,221

 

 

 

2,329

 

Plus: loss on early extinguishment of debt

 

 

 

 

 

 

 

22,198

 

 

 

 

Adjusted EBITDAre

$

79,213

 

 

$

42,162

 

 

$

288,628

 

 

$

164,680

 

(1)

 

ILPT calculates EBITDA, EBITDAre and Adjusted EBITDAre as shown above. EBITDAre is calculated on the basis defined by Nareit, which is EBITDA, including ILPT’s proportionate share of EBITDAre from unconsolidated joint venture properties, and excluding gains and losses on the sale of real estate, equity in earnings of unconsolidated joint venture, loss on impairment of real estate, any realized and unrealized gains or losses on equity securities, as well as certain other adjustments currently not applicable to ILPT. In calculating Adjusted EBITDAre, ILPT adjusts for the items shown above. Other real estate companies and REITs may calculate EBITDA, EBITDAre and Adjusted EBITDAre differently than ILPT does.

 

(2)

 

Amounts represent equity based compensation to ILPT’s trustees and officers and certain other employees of RMR.

Industrial Logistics Properties Trust

Calculation and Reconciliation of Property Net Operating Income and Cash Basis Net Operating Income (1)

(dollars in thousands)

(unaudited)

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2022

 

2021

 

2022

 

2021

Calculation of NOI and Cash Basis NOI:

 

 

 

 

 

 

 

 

Rental income

 

$

106,339

 

 

$

56,496

 

 

$

388,151

 

 

$

219,874

 

Real estate taxes

 

 

(14,164

)

 

 

(7,781

)

 

 

(50,624

)

 

 

(30,134

)

Other operating expenses

 

 

(8,577

)

 

 

(4,944

)

 

 

(30,855

)

 

 

(18,678

)

NOI

 

 

83,598

 

 

 

43,771

 

 

 

306,672

 

 

 

171,062

 

Non-cash straight line rent adjustments included in rental income

 

 

(3,368

)

 

 

(1,590

)

 

 

(11,538

)

 

 

(7,263

)

Lease value amortization included in rental income

 

 

(279

)

 

 

(256

)

 

 

(4,544

)

 

 

(781

)

Lease termination fees included in rental income

 

 

(20

)

 

 

 

 

 

(50

)

 

 

(512

)

Cash Basis NOI

 

$

79,931

 

 

$

41,925

 

 

$

290,540

 

 

$

162,506

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net (Loss) Income to NOI and Cash Basis NOI:

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(41,759

)

 

$

63,207

 

 

$

(286,841

)

 

$

119,682

 

Equity in earnings of unconsolidated joint venture

 

 

(444

)

 

 

(35,463

)

 

 

(7,078

)

 

 

(40,918

)

Income tax (benefit) expense

 

 

(68

)

 

 

96

 

 

 

45

 

 

 

273

 

(Loss) income before income tax expense and equity in earnings of unconsolidated joint venture

 

 

(42,271

)

 

 

27,840

 

 

 

(293,874

)

 

 

79,037

 

Loss on early extinguishment of debt

 

 

 

 

 

 

 

 

22,198

 

 

 

 

Interest and other income

 

 

(763

)

 

 

 

 

 

(2,663

)

 

 

 

Interest expense

 

 

71,765

 

 

 

9,157

 

 

 

280,051

 

 

 

35,625

 

(Gain) loss on sale of real estate

 

 

 

 

 

(11,114

)

 

 

10

 

 

 

(12,054

)

Loss on equity securities

 

 

 

 

 

 

 

 

5,758

 

 

 

 

General and administrative

 

 

7,981

 

 

 

4,006

 

 

 

32,877

 

 

 

16,724

 

Acquisition and other transaction related costs

 

 

 

 

 

486

 

 

 

586

 

 

 

1,132

 

Loss on impairment of real estate

 

 

 

 

 

 

 

 

100,747

 

 

 

 

Depreciation and amortization

 

 

46,886

 

 

 

13,396

 

 

 

160,982

 

 

 

50,598

 

NOI

 

 

83,598

 

 

 

43,771

 

 

 

306,672

 

 

 

171,062

 

Non-cash straight line rent adjustments included in rental income

 

 

(3,368

)

 

 

(1,590

)

 

 

(11,538

)

 

 

(7,263

)

Lease value amortization included in rental income

 

 

(279

)

 

 

(256

)

 

 

(4,544

)

 

 

(781

)

Lease termination fees included in rental income

 

 

(20

)

 

 

 

 

 

(50

)

 

 

(512

)

Cash Basis NOI

 

$

79,931

 

 

$

41,925

 

 

$

290,540

 

 

$

162,506

 

(1)

 

The calculations of NOI and Cash Basis NOI exclude certain components of net income (loss) in order to provide results that are more closely related to ILPT’s property level results of operations. ILPT calculates NOI and Cash Basis NOI as shown above. ILPT defines NOI as income from its rental of real estate less its property operating expenses. NOI excludes amortization of capitalized tenant improvement costs and leasing commissions that ILPT records as depreciation and amortization expense. ILPT defines Cash Basis NOI as NOI excluding non-cash straight line rent adjustments, lease value amortization and lease termination fees, if any. ILPT uses NOI and Cash Basis NOI to evaluate individual and company-wide property level performance. Other real estate companies and REITs may calculate NOI and Cash Basis NOI differently than ILPT does.

Industrial Logistics Properties Trust

Reconciliation of Net Operating Income to Same Property Net Operating Income and Calculation of Same

Property Cash Basis Net Operating Income (1)

(dollars in thousands)

(unaudited)

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2022

 

2021

 

2022

 

2021

Reconciliation of NOI to Same Property NOI (2) (3):

 

 

 

 

 

 

 

 

Rental income

 

$

106,339

 

 

$

56,496

 

 

$

388,151

 

 

$

219,874

 

Real estate taxes

 

 

(14,164

)

 

 

(7,781

)

 

 

(50,624

)

 

 

(30,134

)

Other operating expenses

 

 

(8,577

)

 

 

(4,944

)

 

 

(30,855

)

 

 

(18,678

)

NOI

 

 

83,598

 

 

 

43,771

 

 

 

306,672

 

 

 

171,062

 

Less:

 

 

 

 

 

 

 

 

NOI of properties not included in same property results

 

 

(41,401

)

 

 

(2,149

)

 

 

(138,844

)

 

 

(7,520

)

Same property NOI

 

$

42,197

 

 

$

41,622

 

 

$

167,828

 

 

$

163,542

 

 

 

 

 

 

 

 

 

 

Calculation of Same Property Cash Basis NOI (2) (3):

 

 

 

 

 

 

 

 

Same property NOI

 

$

42,197

 

 

$

41,622

 

 

$

167,828

 

 

$

163,542

 

Less:

 

 

 

 

 

 

 

 

Non-cash straight line rent adjustments included in rental income

 

 

(2,077

)

 

 

(1,570

)

 

 

(6,873

)

 

 

(7,080

)

Lease value amortization included in rental income

 

 

(177

)

 

 

(251

)

 

 

(4,172

)

 

 

(773

)

Lease termination fees included in rental income

 

 

(20

)

 

 

 

 

 

(50

)

 

 

(512

)

Same property Cash Basis NOI

 

$

39,923

 

 

$

39,801

 

 

$

156,733

 

 

$

155,177

 

(1)

 

See footnote (1) on page 7 of this press release for the definitions of NOI and Cash Basis NOI. ILPT calculates same property NOI and same property Cash Basis NOI in the same manner that it calculates the corresponding NOI and Cash Basis NOI, except that it only includes same properties in calculating same property NOI and same property Cash Basis NOI.

 

 

 

(2)

 

For the three months ended December 31, 2022 and 2021, same property NOI and same property Cash Basis NOI are based on properties that ILPT owned as of December 31, 2022 and that it owned continuously since October 1, 2021 and exclude properties owned by an unconsolidated joint venture.

 

 

 

(3)

 

For the years ended December 31, 2022 and 2021, same property NOI and same property Cash Basis NOI are based on properties that ILPT owned as of December 31, 2022 and that it owned continuously since January 1, 2021 and exclude properties owned by an unconsolidated joint venture.

Industrial Logistics Properties Trust

Consolidated Balance Sheets

(dollars in thousands, except per share data)

(unaudited)

 

 

 

 

 

December 31,

 

 

2022

 

2021

ASSETS

 

 

 

 

Real estate properties:

 

 

 

 

Land

 

$

1,117,779

 

 

$

699,037

 

Buildings and improvements

 

 

4,058,329

 

 

 

1,049,796

 

Total real estate properties, gross

 

 

5,176,108

 

 

 

1,748,833

 

Accumulated depreciation

 

 

(273,467

)

 

 

(167,490

)

Total real estate properties, net

 

 

4,902,641

 

 

 

1,581,343

 

Investment in unconsolidated joint venture

 

 

124,358

 

 

 

143,021

 

Acquired real estate leases, net

 

 

297,445

 

 

 

63,441

 

Cash and cash equivalents

 

 

48,261

 

 

 

29,397

 

Restricted cash

 

 

92,519

 

 

 

 

Rents receivable, including straight line rents of $80,710 and $69,172, respectively

 

 

107,011

 

 

 

75,877

 

Other assets, net

 

 

103,931

 

 

 

15,479

 

Total assets

 

$

5,676,166

 

 

$

1,908,558

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

Revolving credit facility

 

$

 

 

$

182,000

 

Mortgages and notes payable, net

 

 

4,244,501

 

 

 

646,124

 

Accounts payable and other liabilities

 

 

73,547

 

 

 

27,772

 

Assumed real estate lease obligations, net

 

 

22,523

 

 

 

12,435

 

Due to related persons

 

 

4,824

 

 

 

2,185

 

Total liabilities

 

 

4,345,395

 

 

 

870,516

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

Equity attributable to common shareholders:

 

 

 

 

Common shares of beneficial interest, $.01 par value: 100,000,000 shares authorized; 65,568,145 and 65,404,592 shares issued and outstanding, respectively

 

 

656

 

 

 

654

 

Additional paid in capital

 

 

1,014,201

 

 

 

1,012,224

 

Cumulative net income

 

 

117,185

 

 

 

343,908

 

Cumulative other comprehensive income

 

 

21,903

 

 

 

 

Cumulative common distributions

 

 

(363,221

)

 

 

(318,744

)

Total equity attributable to common shareholders

 

 

790,724

 

 

 

1,038,042

 

Total equity attributable to noncontrolling interest

 

 

540,047

 

 

 

 

Total equity

 

 

1,330,771

 

 

 

1,038,042

 

Total liabilities and equity

 

$

5,676,166

 

 

$

1,908,558

 

Warning Concerning Forward-Looking Statements

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Whenever ILPT uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and negatives or derivatives of these or similar expressions, ILPT is making forward-looking statements. These forward-looking statements are based upon ILPT’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by ILPT’s forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond ILPT’s control. For example:

  • Ms. Duffy states that ILPT believes the strength of industrial real estate fundamentals will continue to allow ILPT to organically grow cash flows through mark-to-market opportunities and tenant retention and that ILPT will continue to be patient as it evaluates opportunities to strengthen its balance sheet and reduce leverage. However, the current strength of industrial real estate fundamentals may not continue, and as a result, ILPT may not be able to organically grow cash flows, it may fail to execute on opportunities that may exist or arise and its tenant retention may decline. Further, market conditions could decline due to many factors beyond ILPT’s control, including high inflation, rising or sustained high interest rates, economic downturns and a possible recession. As a result, ILPT may not be able to grow cash flows, strengthen its balance sheet or reduce leverage, and
  • Ms. Duffy’s statement regarding ILPT’s record leasing activity in 2022 and related rent roll-ups may imply that ILPT will continue to achieve similar or better leasing results in the future. However, ILPT’s leasing activity will depend on the extent to which ILPT has vacant properties or leases with approaching expirations, and its ability to successfully negotiate and enter into new or renewed leases for rents that exceed prior rents for that space. Accordingly, ILPT may not continue to successfully lease vacant space and the rent roll-ups ILPT achieves on any leased space may decline.

The information contained in ILPT’s filings with the SEC, including under “Risk Factors” in ILPT’s periodic reports, or incorporated therein, identifies important factors that could cause ILPT’s actual results to differ materially from those stated in or implied by ILPT’s forward-looking statements. ILPT’s filings with the SEC are available on the SEC’s website at www.sec.gov.

You should not place undue reliance upon forward-looking statements.

Except as required by law, ILPT does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.

A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.

No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.

Contacts

Kevin Barry, Director, Investor Relations

(617) 658-0776

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