ILPT Q2 Revenue Tops Consensus at $112.1M, Normalized FFO at 21c

Industrial Logistics Property Trust reported Q2 normalized FFO of 21c, in line with consensus estimates. Revenue reached $112.1M, beating the consensus of $111.94M.

Title: Industrial Logistics Properties Trust Reports Q2 2025 Financial Results

Industrial Logistics Properties Trust (ILPT) reported its second quarter 2025 financial results, showcasing modest improvements in key metrics while taking strategic steps to address its debt structure. The company’s stock closed at $5.44 on the reporting day, gaining 1.97% in after-hours trading.

ILPT reported a net loss attributable to common shareholders of $21.3 million, or $0.32 per diluted share, for Q2 2025, a slight improvement from the previous quarter’s loss of $0.33 per share. Normalized FFO attributable to common shareholders was $13.8 million, or $0.21 per diluted share, exceeding the company’s guidance of $0.19-$0.21 and showing sequential improvement from $0.20 per share in Q1.

The company’s net operating income (NOI) increased by 1.5% to $87.6 million, while Adjusted EBITDA remained relatively stable at $85.0 million. ILPT demonstrated strength in its leasing activities, executing 171,000 square feet of new and renewal leases at weighted average rental rates that were 21.1% higher than prior rental rates.

The most significant developments in the quarter were ILPT’s strategic refinancing of $1.235 billion of floating rate debt with $1.16 billion of fixed rate debt due July 2030, and the increase of its quarterly cash distribution to common shareholders from $0.01 per share to $0.05 per share. The debt refinancing represents an important step in stabilizing the company’s capital structure by reducing exposure to interest rate fluctuations. The company’s debt maturity schedule shows that the majority of its debt matures in 2026 and beyond, providing near-term stability.

The dividend increase, while modest in absolute terms, represents a significant 400% increase from the previous level and signals management’s growing confidence in the company’s financial stability and cash flow generation. ILPT’s portfolio continues to demonstrate resilience with 94.3% of its space leased and only 2.1 million square feet (3.6% of leased area) set to expire in the next 12 months.

ILPT’s tenant base is notable, with FedEx Corporation accounting for 28.8% of total annualized rental revenues, followed by Amazon.com Services at 6.7%. Despite operational improvements, ILPT’s leverage remains a significant concern, with a net debt to total gross assets ratio of 69.9% and a net debt to total market capitalization of 89.8%.

The company’s portfolio is split between wholly owned properties and joint ventures. ILPT has time to execute its strategy, but investors will likely continue to monitor the company’s progress in addressing its leverage concerns while maintaining strong operational performance in an evolving industrial real estate market.

References
[1] https://www.investing.com/news/company-news/industrial-logistics-q2-2025-slides-dividend-increase-debt-refinancing-highlight-quarter-93CH-4158664
[2] https://www.quiverquant.com/news/American+Assets+Trust%2C+Inc.+Reports+Q2+2025+Financial+Results+and+Increases+FFO+Guidance