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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on ILPT

Industrial Logistics Properties Trust's recent performance was driven by strong Q4 2024 results, with the company announcing solid financials and providing a positive outlook. The dividend allocation for 2024 was also a positive catalyst, with the company declaring a $0.01 per share dividend. Additionally, the company's management team expressed confidence in its ability to navigate the current market environment, which likely boosted investor sentiment.

1.c. Company Highlights

2. ILPT's Q3 2025 Earnings: A Resilient Industrial REIT

Industrial Logistics Properties Trust (ILPT) reported a mixed bag in its third-quarter 2025 earnings, with normalized FFO increasing over 100% year-over-year to a level that was not explicitly stated, although the actual EPS came out at -$0.33, missing estimates of $0.26. The company's same-property cash basis NOI rose 3% compared to the same period a year ago, driven by strong renewal activity and rent growth. ILPT's consolidated occupancy outperformed the U.S. industrial average by 150 basis points, finishing the quarter at 94.1%. The company's net debt to total assets ratio decreased slightly to 69.3%, and its net debt coverage ratio remained unchanged at 12x.

Publication Date: Nov -25

📋 Highlights
  • NOI Growth: 3% increase in same-property cash basis NOI YoY, driven by strong renewals and rent growth.
  • FFO Surge: Normalized FFO rose over 100% YoY, fueled by June refinancing activities.
  • Occupancy Outperformance: 94.1% occupancy, exceeding U.S. industrial average by 150 basis points.
  • Leasing Activity: 836,000 sq ft leased with 22% rent reset, averaging 8-year lease terms.
  • Asset Sales: 3 properties (867,000 sq ft) targeted for sale at $55M total, closing Q4 2025–2026.

Operational Highlights

During the third quarter, ILPT completed 836,000 square feet of leasing, including a rent reset at weighted average rental rates 22% higher than prior rental rates for the same space and for an average lease term of 8 years. Renewals accounted for 70% of the company's activity, indicating a strong retention rate among tenants. As Yael Duffy, ILPT's President and Chief Operating Officer, noted, "the industrial real estate sector demonstrates resilience, with tenants showing greater confidence in their long-term space needs."

Valuation and Outlook

ILPT's valuation metrics provide some insight into the market's expectations. The company's P/E Ratio stands at -4.02, while its P/S Ratio is 0.81, and EV/EBITDA is 14.21. For the fourth quarter of 2025, ILPT expects normalized FFO to be between $0.27 and $0.29 per share, excluding incentive fees. Analysts estimate next year's revenue growth at 1.5%. The company's guidance and operational performance suggest a stable outlook, with a focus on improving its balance sheet and reducing leverage.

Disposition and Capital Allocation

ILPT has identified three properties for sale totaling 867,000 square feet and expects a combined sales price of approximately $55 million. The company anticipates these transactions to close in the fourth quarter and into early 2026. Additionally, ILPT has flexibility to sell assets within its Mountain joint venture and is open to selling assets as opportunities arise, indicating a proactive approach to portfolio management and capital allocation.

3. NewsRoom

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Picking A Winner In Industrial REITs

Nov -28

Source: seekingalpha.com

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The State Of REITs: November 2025 Edition

Nov -18

Source: seekingalpha.com

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The Dark Side Of REIT Investing

Nov -15

Source: seekingalpha.com

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REIT Replay: REIT Indexes Close Final Week Of October In The Red

Nov -04

Source: seekingalpha.com

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Industrial Logistics Properties Trust: Normalized FFO May Reach $1.19/Share In 2026

Oct -31

Source: seekingalpha.com

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

Oct -29

Source: seekingalpha.com

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Industrial Logistics Properties Trust (ILPT) Q3 FFO Match Estimates

Oct -28

Source: zacks.com

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Industrial Logistics Properties Trust Announces Third Quarter 2025 Results

Oct -28

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.02%)

6. Segments

Comparable Properties

Expected Growth: 2.5%

Industrial Logistics Properties Trust's 2.5% growth is driven by increasing e-commerce demand, rising warehouse rental rates, and strategic acquisitions. Additionally, the trust's focus on high-quality, modern logistics facilities in prime locations supports rent growth and occupancy rates. Furthermore, the growing need for last-mile delivery and omnichannel fulfillment also contributes to the trust's growth.

Non-Comparable Properties

Expected Growth: 1.5%

Industrial Logistics Properties Trust's 1.5% growth is driven by increasing e-commerce demand, rising need for last-mile delivery facilities, and growing importance of logistics and supply chain management. Additionally, the trust's strategic acquisitions and development of high-quality industrial properties in prime locations contribute to its growth.

7. Detailed Products

Industrial Properties

Industrial Logistics Properties Trust owns and operates industrial properties, including warehouses, distribution centers, and light industrial facilities, providing space for logistics, manufacturing, and distribution activities.

Logistics Facilities

The company offers logistics facilities that provide customized solutions for logistics and supply chain management, including cross-docking, transloading, and inventory management.

Distribution Centers

Industrial Logistics Properties Trust's distribution centers provide flexible and scalable space for companies to store and distribute products, with access to major transportation hubs and infrastructure.

Light Industrial Facilities

The company's light industrial facilities offer flexible space for manufacturing, assembly, and research and development activities, with access to skilled labor and infrastructure.

8. Industrial Logistics Properties Trust's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Industrial Logistics Properties Trust is moderate due to the availability of alternative logistics and supply chain management solutions.

Bargaining Power Of Customers

The bargaining power of customers for Industrial Logistics Properties Trust is low due to the company's strong market position and limited customer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Industrial Logistics Properties Trust is moderate due to the company's dependence on a few large suppliers for certain services.

Threat Of New Entrants

The threat of new entrants for Industrial Logistics Properties Trust is low due to the high barriers to entry in the logistics and supply chain management industry.

Intensity Of Rivalry

The intensity of rivalry for Industrial Logistics Properties Trust is high due to the competitive nature of the logistics and supply chain management industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 86.64%
Debt Cost 6.67%
Equity Weight 13.36%
Equity Cost 12.70%
WACC 7.47%
Leverage 648.62%

11. Quality Control: Industrial Logistics Properties Trust passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.81$

Current Price

5.81$

Potential

-0.00%

Expected Cash-Flows