Eye-Catching Stock to Track: Industrial Logistics Properties Trust (NASDAQ: ILPT)

On 06 March, shares of Industrial Logistics Properties Trust (NASDAQ: ILPT) oscillated between $20.29 and $20.69 before concluding trading period lower/higher +0.93% or +0.19 at $20.53. The stock recorded total trading quantity of 202,036 shares as compared to its ninety days average volume of 522,531 shares.

Industrial Logistics Properties Trust (ILPT) recently reported financial results for the quarter and year ended December 31, 2018.

Results for the Quarter Ended December 31, 2018:

Net income for the quarter ended December 31, 2018 was $18.3M, or $0.28 per diluted share, contrast to $15.3M for the same quarter last year. Normalized funds from operations, or Normalized FFO, for the quarter ended December 31, 2018 were $25.9M, or $0.40 per diluted share, contrast to $21.2M for the same quarter last year.

ILPT was formed in 2017 as a wholly owned subsidiary of Select Income REIT, or SIR, a former publicly traded real estate investment trust, or REIT, that merged with Office Properties Income Trust (OPI) (formerly Government Properties Income Trust) on December 31, 2018. On January 17, 2018, ILPT sold about 30.8% of its ordinary shares in an initial public offering, or the IPO, and became a separate public company. For periods previous to January 17, 2018, ILPT’s historical results of operations and financial position have been derived from the financial statements of SIR and may not be comparable to future results. SIR before owned 45,000,000 of ILPT’s outstanding ordinary shares. On December 27, 2018, SIR distributed all 45,000,000 ordinary shares of ILPT that SIR owned to SIR’s shareholders of record as of the close of business on December 20, 2018.

Results for the Year Ended December 31, 2018:

Net income for the year ended December 31, 2018 was $74.4M, or $1.16 per diluted share, contrast to $80.1M for the year ended December 31, 2017. Normalized FFO for the year ended December 31, 2018 were $103.0M, or $1.61 per diluted share, contrast to $108.4M for the year ended December 31, 2017.

Reconciliations of net income determined in accordance with GAAP to FFO and to Normalized FFO for the years ended December 31, 2018 and 2017 appear later in this press release.

Leasing, Occupancy and Same Property Results:

During the quarter ended December 31, 2018, ILPT entered new and renewal leases and completed rent resets for about 1,872,000 square feet, which resulted in weighted average (by square feet) rental rates that were about 23.7% higher than previous rental rates for the same space, with a weighted average (by square feet) lease term of 14.4 years for new and renewal leases. Commitments for leasing capital and concessions for new and renewal leases totaled about $1.6M, or about $0.06 per square foot per lease year.

Recent Investment Activities:

As before revealed, in October 2018, ILPT purchased a land parcel adjacent to a property it owns located in Ankeny, IA for a purchase price of $450,000, not including acquisition related costs. This land parcel will be used for a 194,000 square foot expansion for the existing tenant.

Also as before revealed, in October 2018, ILPT purchased a multi-tenant, net leased property located in Maple Grove, MN with 319,062 rentable square feet for a purchase price of $27.7M, not including acquisition related costs. This property is 100% leased and had a remaining weighted average (by revenue) lease term of about six years as of the acquisition date.

In February 2019, ILPT entered an contract to acquire a portfolio of eight industrial properties located in the Indianapolis and Cincinnati market areas with an aggregate of about 4.2M rentable square feet for a purchase price of $280.0M, not including acquisition related costs. ILPT completed the acquisition of seven of the eight properties on February 14, 2019. The acquisition of the remaining property is predictable to occur by April 15, 2019. These properties are 100% leased to ten tenants and have a remaining weighted average (by revenue) lease term of about four years.

Recent Financing Activities:

On January 29, 2019, ILPT obtained a $650.0M mortgage loan secured by 186 of its properties (178 land parcels and eight buildings) containing about 9.6M square feet located on the island of Oahu, Hawaii. The non-amortizing loan matures on February 7, 2029 and requires monthly interest payments at a fixed rate of 4.31% per annum. ILPT used the proceeds from this loan to repay outstanding borrowings under its $750.0M unsecured revolving credit facility and to fund acquisitions.

The Company has 65.13 million shares outstanding and 65.04 million shares were floated in market. The short ratio in the company’s stock is documented at 1.95 and the short float is around of 1.57%. The average true range of the stock is observed at 0.53 and the relative strength index of the stock is recorded at 44.36.

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