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- **Leasing Strength**: 70% renewals, 22% rent reset, and 8 million sq ft pipeline conversion expected.
- **Financial Growth**: Normalized FFO up 116% YoY, supported by debt refinancing and tenant retention.
- **Strategic Sales**: $55M asset sales to reduce leverage, with 2026 pipeline targeting 3 million sq ft net absorption.
- **Forward Guidance**: Q4 FFO $0.27-$0.29/share, EBITDAre $84M-$85M, reflecting stable cash flows and disciplined capital management.

**【CEO Summary Section】**
- **Portfolio Resilience**: 94.1% occupancy rate, outperforming the U.S. industrial average by 150 basis points. 836,000 sq ft leased in Q3, with 70% renewals and 22% rent reset spread.
- **Leasing Momentum**: 2026 and 2027 pipeline exceeds 8 million sq ft, with 75% near-term conversion expected. Mainland roll-ups at 20%, Hawaii at 30%.
- **Strategic Sales**: 3 properties (867k sq ft) targeted for sale, with $55M proceeds to reduce debt. One property encumbered by 2032 loan.

**【CFO Financial Commentary】**
- **Normalized FFO**: $17.4M ($0.26/share), up 26% sequentially and 116% YoY. Same-property NOI $86.4M, supported by strong tenant retention.
- **Debt Management**: 5.43% weighted average interest rate. $1.16B debt refinanced in Q2, reducing interest expense by $4.4M.
- **Balance Sheet**: $83M cash, 69.3% debt-to-assets ratio. 2026 guidance: FFO $0.27-$0.29/share, EBITDAre $84M-$85M.

**【Q&A Key Highlights】**
- **Incentive Fees**: $6.3M annual fee accrued but excluded from normalized FFO. Paid in Q1 '26, not impacting Q4 metrics.
- **Leasing Performance**: USPS deal capped at 2% GAAP roll-up, contrasting 22% cash basis spread. 2026 pipeline 75% advanced.
- **Dispositions Outlook**: 2026 sales focus on Mountain JV, with flexibility to act on market opportunities. Hawaii and Indianapolis leasing in early stages.

Industrial Logistics Properties Trust (ILPT) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ILPT

ILPT fundamentals

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