ILPT
$22.10
Industrial Logistics Properties Trust
$.37
1.70%
Earnings Details
3rd Quarter September 2020
Wednesday, October 28, 2020 7:00:00 AM
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Summary

Industrial Logistics Properties Trust (ILPT) Recent Earnings

Industrial Logistics Properties Trust (ILPT) reported 3rd Quarter September 2020 earnings of $0.46 per share on revenue of $65.1 million. The consensus earnings estimate was $0.47 per share on revenue of $65.2 million. Revenue grew 6.8% on a year-over-year basis.

Results
Reported Earnings
$0.46
Earnings Whisper
-
Consensus Estimate
$0.47
Reported Revenue
$65.1 Mil
Revenue Estimate
$65.2 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Industrial Logistics Properties Trust Announces Third Quarter 2020 Results

Third Quarter Net Income Attributable to Common Shareholders of $0.22 Per Share

Third Quarter Normalized FFO Attributable to Common Shareholders of $0.46 Per Share

NEWTON, Mass.--(BUSINESS WIRE)--Industrial Logistics Properties Trust (Nasdaq: ILPT) today announced financial results for the quarter and nine months ended September 30, 2020.

John Murray, President and Chief Executive Officer of ILPT, made the following statement:

“Our third quarter results reflect the strength and resilience of industrial and logistics properties despite a challenging economic environment. ILPT continues to benefit from robust industry fundamentals, a portfolio of high-quality warehouse and distribution assets, and strong credit tenants. We reported solid third quarter results, including same-property cash NOI growth and increased FFO year over year, as well as more than $460 million of liquidity at quarter end. We executed nearly 800,000 square feet of leasing activity with a 9.6% rollup in rent during the quarter, and demand for our properties was strong with occupancy rates holding steady at nearly 99% at quarter end. After giving effect to modest rent deferrals granted to certain tenants, we collected 98% of our contractual rents for the quarter. ILPT's portfolio of industrial properties positions us well to continue to successfully manage through current economic disruptions and drive growth and value creation over the long term."

Results for the Quarter Ended September 30, 2020:

Net income attributable to common shareholders for the quarter ended September 30, 2020 was $14.1 million, or $0.22 per diluted share, compared to $10.9 million, or $0.17 per diluted share, for the same quarter last year. Normalized funds from operations attributable to common shareholders, or Normalized FFO attributable to common shareholders, for the quarter ended September 30, 2020 were $30.1 million, or $0.46 per diluted share, compared to $28.5 million, or $0.44 per diluted share, for the same quarter last year.

Reconciliations of net income attributable to common shareholders determined in accordance with U.S. generally accepted accounting principles, or GAAP, to funds from operations, or FFO, attributable to common shareholders and to Normalized FFO attributable to common shareholders for the quarters ended September 30, 2020 and 2019 appear later in this press release.

Results for the Nine Months Ended September 30, 2020:

Net income attributable to common shareholders for the nine months ended September 30, 2020 was $41.8 million, or $0.64 per diluted share, compared to $40.8 million, or $0.63 per diluted share, for the same period last year. Normalized FFO attributable to common shareholders for the nine months ended September 30, 2020 were $90.8 million, or $1.40 per diluted share, compared to $84.7 million, or $1.30 per diluted share, for the same period last year.

Reconciliations of net income attributable to common shareholders determined in accordance with GAAP to FFO attributable to common shareholders and to Normalized FFO attributable to common shareholders for the nine months ended September 30, 2020 and 2019 appear later in this press release.

Leasing, Occupancy and Same Property Results:

During the quarter ended September 30, 2020, ILPT entered new and renewal leases and completed rent resets for approximately 776,000 square feet of space, which resulted in weighted average (by square feet) rental rates that were approximately 9.6% higher than prior rental rates for the same space, with a weighted average (by square feet) lease term of 4.4 years for new and renewal leases. Commitments for leasing capital and concessions for new and renewal leases entered during the quarter ended September 30, 2020 totaled approximately $927,000, or approximately $0.44 per square foot per lease year.

As of September 30, 2020, 98.8% of ILPT’s total rentable square feet was leased, compared to 98.8% as of June 30, 2020 and 99.5% as of September 30, 2019. Occupancy for properties owned continuously since July 1, 2019 on a same property basis was 98.7% as of September 30, 2020 compared to 98.7% as of June 30, 2020 and 99.5% at September 30, 2019. Same property cash basis net operating income, or Cash Basis NOI, increased 1.9% for the quarter ended September 30, 2020 compared to the quarter ended September 30, 2019, primarily as a result of contractual rent increases and leasing activity at certain properties since July 1, 2019.

Reconciliations of net income determined in accordance with GAAP to net operating income, or NOI, and Cash Basis NOI, and a reconciliation of NOI to same property NOI and calculation of same property Cash Basis NOI, for the quarters ended September 30, 2020 and 2019, appear later in this press release.

In response to the COVID-19 pandemic, ILPT granted requests to 43 tenants to defer aggregate rent payments of $3.6 million as of October 23, 2020, and in most cases, these tenants were obligated to pay the deferred rents in 12 equal monthly installments beginning in September 2020. For the quarter ended September 30, 2020, ILPT collected approximately 98% of its contractual rents due after giving effect to such rent deferrals.

Acquisition and Disposition Activities:

In September 2020, ILPT entered into an agreement to sell one property located in Virginia containing approximately 308,000 rentable square feet for a sales price of $11.0 million, excluding closing costs. This sale is expected to occur during the fourth quarter of 2020. ILPT has classified this property as held for sale as of September 30, 2020.

Conference Call:

At 10:00 a.m. Eastern Time this morning, John Murray, Chief Executive Officer, Richard Siedel, Chief Financial Officer, and Yael Duffy, Chief Operating Officer, will host a conference call to discuss ILPT’s third quarter 2020 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, November 4, 2020. To access the replay, dial (412) 317-0088. The replay pass code is 10148193.

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 third quarter conference call are strictly prohibited without the prior written consent of ILPT.

Supplemental Data:

A copy of ILPT’s Third Quarter 2020 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.

ILPT is a real estate investment trust, or REIT, that owns and leases industrial and logistics properties throughout the United States. ILPT is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, MA.

Non-GAAP Financial Measures:

ILPT presents certain “non-GAAP financial measures” within the meaning of applicable rules of the Securities and Exchange Commission, or SEC, including FFO attributable to common shareholders, Normalized FFO attributable to common shareholders, NOI and 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 or net income 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 and net income attributable to common shareholders as presented in ILPT’s condensed consolidated statements of income. ILPT considers these non-GAAP measures to be appropriate supplemental measures of operating performance for a REIT, along with net income and net income 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 NOI, Cash Basis NOI, same property NOI, same property Cash Basis NOI, FFO attributable to common shareholders and Normalized FFO attributable to common shareholders and a reconciliation of those amounts to amounts determined in accordance with GAAP.

 

Industrial Logistics Properties Trust
Condensed Consolidated Statements of Income
(amounts in thousands, except per share data)
(unaudited)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

 

Rental income

 

$

65,106

 

 

$

60,958

 

 

$

194,494

 

 

$

167,035

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

Real estate taxes

 

9,036

 

 

8,586

 

 

26,779

 

 

21,646

 

Other operating expenses

 

5,511

 

 

4,821

 

 

15,733

 

 

12,405

 

Depreciation and amortization

 

18,488

 

 

17,568

 

 

55,303

 

 

43,888

 

Acquisition and certain other transaction related costs

 

178

 

 

 

 

178

 

 

 

General and administrative

 

5,180

 

 

4,475

 

 

14,857

 

 

13,131

 

Total expenses

 

38,393

 

 

35,450

 

 

112,850

 

 

91,070

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

81

 

 

113

 

 

580

 

Interest expense (including net amortization of debt issuance costs,
premiums and discounts of $664, $524, $1,893 and $1,421, respectively)

 

(12,886)

 

 

(14,687)

 

 

(40,610)

 

 

(36,207)

 

Gain on early extinguishment of debt

 

 

 

 

 

120

 

 

 

Income before income tax expense and equity in earnings of an investee

 

13,827

 

 

10,902

 

 

41,267

 

 

40,338

 

Income tax expense

 

(13)

 

 

(63)

 

 

(202)

 

 

(131)

 

Equity in earnings of an investee

 

 

 

83

 

 

 

 

617

 

Net income

 

13,814

 

 

10,922

 

 

41,065

 

 

40,824

 

Net loss attributable to noncontrolling interest

 

275

 

 

 

 

691

 

 

 

Net income attributable to common shareholders

 

$

14,089

 

 

$

10,922

 

 

$

41,756

 

 

$

40,824

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic

 

65,112

 

 

65,055

 

 

65,092

 

 

65,042

 

Weighted average common shares outstanding - diluted

 

65,129

 

 

65,060

 

 

65,101

 

 

65,048

 

 

 

 

 

 

 

 

 

 

Per common share data (basic and diluted):

 

 

 

 

 

 

 

 

Net income attributable to common shareholders

 

$

0.22

 

 

$

0.17

 

 

$

0.64

 

 

$

0.63

 

 

Industrial Logistics Properties Trust
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 September 30,

 

Nine Months Ended September 30,

 

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

 

Net income attributable to common shareholders

 

$

14,089

 

 

$

10,922

 

 

$

41,756

 

 

$

40,824

 

Depreciation and amortization

 

18,488

 

 

17,568

 

 

55,303

 

 

43,888

 

FFO adjustments attributable to noncontrolling interest

 

(2,638)

 

 

 

 

(6,272)

 

 

 

FFO attributable to common shareholders

 

29,939

 

 

28,490

 

 

90,787

 

 

84,712

 

Acquisition and certain other transaction related costs

 

178

 

 

 

 

178

 

 

 

Gain on early extinguishment of debt

 

 

 

 

 

(120)

 

 

 

Normalized FFO attributable to common shareholders

 

$

30,117

 

 

$

28,490

 

 

$

90,845

 

 

$

84,712

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic

 

65,112

 

 

65,055

 

 

65,092

 

 

65,042

 

Weighted average common shares outstanding - diluted

 

65,129

 

 

65,060

 

 

65,101

 

 

65,048

 

 

 

 

 

 

 

 

 

 

Per common share data (basic and diluted):

 

 

 

 

 

 

 

 

FFO attributable to common shareholders

 

$

0.46

 

 

$

0.44

 

 

$

1.39

 

 

$

1.30

 

Normalized FFO attributable to common shareholders

 

$

0.46

 

 

$

0.44

 

 

$

1.40

 

 

$

1.30

 

Distributions declared

 

$

0.33

 

 

$

0.33

 

 

$

0.99

 

 

$

0.99

 

(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, which is net income attributable to common shareholders, calculated in accordance with GAAP, plus real estate depreciation and amortization 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, if any, and includes business management incentive fees, if any, only in the fourth quarter versus the quarter when they are recognized as an expense in accordance with GAAP due to their quarterly volatility not necessarily being indicative of ILPT’s core operating performance and the uncertainty as to whether any such business management incentive fees will be payable when all contingencies for determining such fees are known at the end of the calendar year. 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.

 

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 September 30,

 

Nine Months Ended September 30,

 

 

2020

 

2019

 

2020

 

2019

Calculation of NOI and Cash Basis NOI:

 

 

 

 

 

 

 

 

Rental income

 

$

65,106

 

 

$

60,958

 

 

$

194,494

 

 

$

167,035

 

Real estate taxes

 

(9,036)

 

 

(8,586)

 

 

(26,779)

 

 

(21,646)

 

Other operating expenses

 

(5,511)

 

 

(4,821)

 

 

(15,733)

 

 

(12,405)

 

NOI

 

50,559

 

 

47,551

 

 

151,982

 

 

132,984

 

Non-cash straight line rent adjustments included in rental income

 

(2,120)

 

 

(979)

 

 

(6,183)

 

 

(3,960)

 

Lease value amortization included in rental income

 

(202)

 

 

(182)

 

 

(606)

 

 

(1,002)

 

Cash Basis NOI

 

$

48,237

 

 

$

46,390

 

 

$

145,193

 

 

$

128,022

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Income to NOI and Cash Basis NOI:

 

 

 

 

 

 

 

 

Net income

 

$

13,814

 

 

$

10,922

 

 

$

41,065

 

 

$

40,824

 

Equity in earnings of an investee

 

 

 

(83)

 

 

 

 

(617)

 

Income tax expense

 

13

 

 

63

 

 

202

 

 

131

 

Income before income tax expense and equity in earnings of an investee

 

13,827

 

 

10,902

 

 

41,267

 

 

40,338

 

Gain on early extinguishment of debt

 

 

 

 

 

(120)

 

 

 

Interest expense

 

12,886

 

 

14,687

 

 

40,610

 

 

36,207

 

Interest income

 

 

 

(81)

 

 

(113)

 

 

(580)

 

General and administrative

 

5,180

 

 

4,475

 

 

14,857

 

 

13,131

 

Acquisition and certain other transaction related costs

178

 

 

 

 

178

 

 

 

Depreciation and amortization

 

18,488

 

 

17,568

 

 

55,303

 

 

43,888

 

NOI

50,559

 

 

47,551

 

 

151,982

 

 

132,984

 

Non-cash straight line rent adjustments included in rental income

 

(2,120)

 

 

(979)

 

 

(6,183)

 

 

(3,960)

 

Lease value amortization included in rental income

 

(202)

 

 

(182)

 

 

(606)

 

 

(1,002)

 

Cash Basis NOI

 

$

48,237

 

 

$

46,390

 

 

$

145,193

 

 

$

128,022

 

(1)

The calculations of NOI and Cash Basis NOI exclude certain components of net income 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 September 30,

 

Nine Months Ended September 30,

 

 

2020

 

2019

 

2020

 

2019

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

 

 

 

 

 

 

 

 

Rental income

 

$

65,106

 

 

$

60,958

 

 

$

194,494

 

 

$

167,035

 

Real estate taxes

 

(9,036)

 

 

(8,586)

 

 

(26,779)

 

 

(21,646)

 

Other operating expenses

 

(5,511)

 

 

(4,821)

 

 

(15,733)

 

 

(12,405)

 

NOI

 

50,559

 

 

47,551

 

 

151,982

 

 

132,984

 

Less:

 

 

 

 

 

 

 

 

NOI of properties not included in same property results

 

(1,720)

 

 

(508)

 

 

(47,198)

 

 

(30,900)

 

Same property NOI

 

$

48,839

 

 

$

47,043

 

 

$

104,784

 

 

$

102,084

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Same property NOI

 

$

48,839

 

 

$

47,043

 

 

$

104,784

 

 

$

102,084

 

Less:

 

 

 

 

 

 

 

 

Non-cash straight line rent adjustments included in rental income

 

(1,902)

 

 

(1,004)

 

 

(3,914)

 

 

(2,432)

 

Lease value amortization included in rental income

 

(202)

 

 

(182)

 

 

(366)

 

 

(849)

 

Same property Cash Basis NOI

$

46,735

 

 

$

45,857

 

 

$

100,504

 

 

$

98,803

 

(1)

See footnote (1) on page 6 of this press release for the definitions of NOI and Cash Basis NOI and page 3 for a description of why ILPT believes they are appropriate supplemental measures and a description of how ILPT uses these measures.

 

(2)

For the three months ended September 30, 2020 and 2019, same property NOI and same property Cash Basis NOI are based on properties that ILPT owned as of September 30, 2020 and that it owned continuously since July 1, 2019 and exclude one property classified as held for sale.

 

(3)

For the nine months ended September 30, 2020 and 2019, same property NOI and same property Cash Basis NOI are based on properties that ILPT owned as of September 30, 2020 and that it owned continuously since January 1, 2019 and exclude one property classified as held for sale.

 

Industrial Logistics Properties Trust
Condensed Consolidated Balance Sheets
(dollars in thousands, except per share data)
(unaudited)

 

 

 

September 30,

 

December 31,

 

 

2020

 

2019

ASSETS

 

 

 

 

Real estate properties:

 

 

 

 

Land

 

$

757,522

 

 

$

747,794

 

Buildings and improvements

 

1,632,842

 

 

1,588,170

 

Total real estate properties, gross

 

2,390,364

 

 

2,335,964

 

Accumulated depreciation

 

(160,570)

 

 

(131,468)

 

Total real estate properties, net

 

2,229,794

 

 

2,204,496

 

Assets of property held for sale

 

10,136

 

 

 

Acquired real estate leases, net

 

123,146

 

 

138,596

 

Cash and cash equivalents

 

39,105

 

 

28,415

 

Restricted cash

 

12,806

 

 

6,135

 

Rents receivable, including straight line rents of $64,236 and $58,336, respectively

 

70,597

 

 

62,782

 

Deferred leasing costs, net

 

6,037

 

 

6,581

 

Debt issuance costs, net

 

1,846

 

 

2,954

 

Due from related persons

 

 

 

1,504

 

Other assets, net

 

5,527

 

 

3,438

 

Total assets

 

$

2,498,994

 

 

$

2,454,901

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

Revolving credit facility

 

$

320,000

 

 

$

310,000

 

Mortgage notes payable, net

 

1,048,521

 

 

1,096,608

 

Liabilities of property held for sale

 

227

 

 

 

Assumed real estate lease obligations, net

 

15,778

 

 

17,508

 

Accounts payable and other liabilities

 

19,162

 

 

16,475

 

Rents collected in advance

 

8,098

 

 

9,442

 

Security deposits

 

6,698

 

 

6,680

 

Due to related persons

 

3,087

 

 

2,498

 

Total liabilities

 

1,421,571

 

 

1,459,211

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

Equity attributable to common shareholders:

 

 

 

 

Common shares of beneficial interest, $.01 par value: 100,000,000 shares authorized; 65,301,088 and 65,180,628 shares issued and outstanding, respectively

 

653

 

 

652

 

Additional paid in capital

 

1,010,139

 

 

999,302

 

Cumulative net income

 

183,911

 

 

142,155

 

Cumulative common distributions

 

(210,959)

 

 

(146,419)

 

Total equity attributable to common shareholders

 

983,744

 

 

995,690

 

Noncontrolling interest:

 

 

 

 

Total equity attributable to noncontrolling interest

 

93,679

 

 

 

Total equity

 

1,077,423

 

 

995,690

 

Total liabilities and equity

 

$

2,498,994

 

 

$

2,454,901

 

 

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:

  • Mr. Murray states that ILPT’s third quarter results reflect the strength and resilience of industrial and logistics properties despite a challenging economic environment. He further states that ILPT continues to benefit from robust industry fundamentals, a portfolio of high-quality warehouse and distribution assets and strong credit tenants. However, if the COVID-19 pandemic and current economic conditions continue or worsen, ILPT’s tenants’ operations and liquidity could be adversely impacted, which may impact their ability to pay rent due to ILPT. If this occurs, ILPT’s financial results and liquidity could be adversely impacted and the value of its properties could decline,
  • Mr. Murray’s statements in this press release regarding ILPT’s leasing activity may imply that ILPT will achieve similar or better results in the future. However, leasing activity depends on various factors, including the impact of the COVID-19 pandemic, existing tenants’ continuing need for space, the timing of the expiration of existing leases, the market demand to lease space at ILPT’s properties, ILPT’s ability to successfully compete for tenants and other economic and market conditions. As a result, ILPT may not realize similar or better leasing results in the future, and these leasing results may worsen,
  • Mr. Murray states that, after giving effect to modest rent deferrals granted to certain tenants, ILPT collected 98% of its contractual rents for the third quarter. This may imply that ILPT will continue to have strong rent collections in the future. However, if the COVID-19 pandemic and economic conditions continue or worsen, ILPT’s tenants’ operations and liquidity may be adversely impacted, which may impact their ability to pay rent due to ILPT, and
  • ILPT has classified one property as held for sale as of September 30, 2020 and has entered into an agreement to sell this property for a sales price of $11.0 million, excluding closing costs. This may imply that this property will be sold. However, this sale is subject to conditions. Those conditions may not be satisfied and this sale may not occur, may be delayed or the terms may change, and ILPT may incur losses with respect to the sale of such property.

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.

Kevin Barry, Manager, Investor Relations
(617) 658-0776

Source: Industrial Logistics Properties Trust