Industrial Logistics Properties Trust (ILPT) 10-Q 28 Oct 20 2020 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2020	Oct. 26, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	001-38342
Entity Registrant Name	INDUSTRIAL LOGISTICS PROPERTIES TRUST
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	82-2809631
Entity Address, Address Line One	Two Newton Place,
Entity Address, Address Line Two	255 Washington Street,
Entity Address, Address Line Three	Suite 300,
Entity Address, City or Town	Newton,
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02458-1634
City Area Code	617
Local Phone Number	219-1460
Title of 12(b) Security	Common Shares of Beneficial Interest
Trading Symbol	ILPT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		65,301,088
Entity Central Index Key	0001717307
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
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	0
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	0	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	0
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:
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
Total equity attributable to noncontrolling interest	93,679	0
Total equity	1,077,423	995,690
Total liabilities and equity	$ 2,498,994	$ 2,454,901

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Straight line rents	$ 64,236	$ 58,336
Common shares, par value (in dollars per share)	$ 0.01	$ 0.01
Common shares, shares authorized (in shares)	100,000,000	100,000,000
Common shares, shares issued (in shares)	65,301,088	65,180,628
Common shares, shares outstanding (in shares)	65,301,088	65,180,628

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
REVENUES:
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	0	178	0
General and administrative	5,180	4,475	14,857	13,131
Total expenses	38,393	35,450	112,850	91,070
Interest income	0	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	0	0	120	0
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	0	83	0	617
Net income	13,814	10,922	41,065	40,824
Net loss attributable to noncontrolling interest	275	0	691	0
Net income attributable to common shareholders	14,089	10,922	41,756	40,824
Other comprehensive income:
Equity in unrealized gains of an investee	0	(46)	0	91
Other comprehensive income	0	(46)	0	91
Comprehensive income attributable to common shareholders	$ 14,089	$ 10,876	$ 41,756	$ 40,915
Weighted average common shares outstanding - basic (in shares)	65,112	65,055	65,092	65,042
Weighted average common shares outstanding - diluted (in shares)	65,129	65,060	65,101	65,048
Net income attributable to common shareholders (in dollars per share)	$ 0.22	$ 0.17	$ 0.64	$ 0.63

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Amortization of debt issuance costs and premium	$ 664	$ 524	$ 1,893	$ 1,421

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common shares	Additional Paid-in Capital	Cumulative Net Income	Cumulative Other Comprehensive Income	Cumulative Common Distributions	Total Equity Attributable to Common Shareholders	Total Attributable to Noncontrolling Interest
Beginning balance (in shares) at Dec. 31, 2018		65,074,791
Beginning balance at Dec. 31, 2018	$ 1,028,273	$ 651	$ 998,447	$ 89,657	$ 0	$ (60,482)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	16,786			16,786
Equity in unrealized gains of an investee	66				66
Share grants	73		73
Distributions to common shareholders	(21,474)					(21,474)
Ending balance (in shares) at Mar. 31, 2019		65,074,791
Ending balance at Mar. 31, 2019	1,023,724	$ 651	998,520	106,443	66	(81,956)
Beginning balance (in shares) at Dec. 31, 2018		65,074,791
Beginning balance at Dec. 31, 2018	1,028,273	$ 651	998,447	89,657	0	(60,482)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	40,824
Equity in unrealized gains of an investee	91
Ending balance (in shares) at Sep. 30, 2019		65,181,913
Ending balance at Sep. 30, 2019	1,005,448	$ 652	999,134	130,481	91	(124,910)
Beginning balance (in shares) at Mar. 31, 2019		65,074,791
Beginning balance at Mar. 31, 2019	1,023,724	$ 651	998,520	106,443	66	(81,956)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	13,116			13,116
Equity in unrealized gains of an investee	71				71
Shares granted in period (in shares)		15,000
Share grants	345		345
Share repurchases (in shares)		(1,362)
Share repurchases	(28)		(28)
Share forfeitures (in shares)		(240)
Share forfeitures	(1)		(1)
Distributions to common shareholders	(21,475)					(21,475)
Ending balance (in shares) at Jun. 30, 2019		65,088,189
Ending balance at Jun. 30, 2019	1,015,752	$ 651	998,836	119,559	137	(103,431)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	10,922			10,922
Equity in unrealized gains of an investee	(46)				(46)
Shares granted in period (in shares)		104,200
Share grants	522	$ 1	521
Share repurchases (in shares)		(10,476)
Share repurchases	(223)		(223)
Distributions to common shareholders	(21,479)					(21,479)
Ending balance (in shares) at Sep. 30, 2019		65,181,913
Ending balance at Sep. 30, 2019	1,005,448	$ 652	999,134	130,481	$ 91	(124,910)
Beginning balance (in shares) at Dec. 31, 2019		65,180,628
Beginning balance at Dec. 31, 2019	995,690	$ 652	999,302	142,155		(146,419)	$ 995,690	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	12,694			12,846			12,846	(152)
Shares granted in period (in shares)		6,000
Share grants	326		326				326
Share repurchases (in shares)		(951)
Share repurchases	(18)		(18)				(18)
Distributions to common shareholders	(21,510)					(21,510)	(21,510)
Contributions from noncontrolling interest	107,640		6,972				6,972	100,668
Ending balance (in shares) at Mar. 31, 2020		65,185,677
Ending balance at Mar. 31, 2020	1,094,822	$ 652	1,006,582	155,001		(167,929)	994,306	100,516
Beginning balance (in shares) at Dec. 31, 2019		65,180,628
Beginning balance at Dec. 31, 2019	995,690	$ 652	999,302	142,155		(146,419)	995,690	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	41,065
Equity in unrealized gains of an investee	0
Ending balance (in shares) at Sep. 30, 2020		65,301,088
Ending balance at Sep. 30, 2020	1,077,423	$ 653	1,010,139	183,911		(210,959)	983,744	93,679
Beginning balance (in shares) at Mar. 31, 2020		65,185,677
Beginning balance at Mar. 31, 2020	1,094,822	$ 652	1,006,582	155,001		(167,929)	994,306	100,516
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	14,557			14,821			14,821	(264)
Shares granted in period (in shares)		24,500
Share grants	654		654				654
Share repurchases (in shares)		(613)
Share repurchases	(13)		(13)				(13)
Distributions to common shareholders	(21,511)					(21,511)	(21,511)
Distributions to noncontrolling interest	(1,898)							(1,898)
Ending balance (in shares) at Jun. 30, 2020		65,209,564
Ending balance at Jun. 30, 2020	1,086,611	$ 652	1,007,223	169,822		(189,440)	988,257	98,354
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	13,814			14,089			14,089	(275)
Equity in unrealized gains of an investee	0
Shares granted in period (in shares)		108,600
Share grants	676	$ 1	675				676
Share repurchases (in shares)		(16,496)
Share repurchases	(351)		(351)				(351)
Share forfeitures (in shares)		(580)
Share forfeitures	(3)		(3)				(3)
Distributions to common shareholders	(21,519)					(21,519)	(21,519)
Contributions from noncontrolling interest	302		2,595				2,595	(2,293)
Distributions to noncontrolling interest	(2,107)							(2,107)
Ending balance (in shares) at Sep. 30, 2020		65,301,088
Ending balance at Sep. 30, 2020	$ 1,077,423	$ 653	$ 1,010,139	$ 183,911		$ (210,959)	$ 983,744	$ 93,679

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 41,065	$ 40,824
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	34,307	27,161
Net amortization of debt issuance costs, premiums and discounts	1,893	1,421
Amortization of acquired real estate leases and assumed real estate lease obligations	19,458	15,085
Amortization of deferred leasing costs	952	659
Straight line rental income	(6,183)	(3,960)
Gain on early extinguishment of debt	(120)	0
Other non-cash expenses	1,652	939
Equity in earnings of an investee	0	(617)
Change in assets and liabilities:
Rents receivable	(1,984)	4
Deferred leasing costs	(514)	(584)
Due from related persons	1,504	858
Other assets	(2,413)	(7,863)
Accounts payable and other liabilities	3,865	7,440
Rents collected in advance	(1,210)	6,106
Security deposits	71	688
Due to related persons	589	997
Net cash provided by operating activities	92,932	89,158
CASH FLOWS FROM INVESTING ACTIVITIES:
Real estate acquisitions and deposits	(71,628)	(884,445)
Real estate improvements	(4,495)	(7,789)
Distributions in excess of earnings from Affiliates Insurance Company	287	0
Net cash used in investing activities	(75,836)	(892,234)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of mortgage notes payable	0	650,000
Borrowings under revolving credit facility	180,000	736,000
Repayments of revolving credit facility	(170,000)	(499,000)
Repayment of mortgage note payable	(48,750)	0
Payment of debt issuance costs	0	(5,517)
Distributions to common shareholders	(64,540)	(64,428)
Proceeds from noncontrolling interest, net	107,942	0
Distributions to noncontrolling interest	(4,005)	0
Repurchase of common shares	(382)	(251)
Net cash provided by financing activities	265	816,804
Increase in cash, cash equivalents and restricted cash	17,361	13,728
Cash, cash equivalents and restricted cash at beginning of period	34,550	9,608
Cash, cash equivalents and restricted cash at end of period	51,911	23,336
SUPPLEMENTAL DISCLOSURES:
Interest paid	39,125	31,995
Income taxes paid	199	164
NON-CASH INVESTING ACTIVITIES:
Real estate acquired by assumption of mortgage note payable	0	(56,980)
Assumption of mortgage note payable	0	56,980
SUPPLEMENTAL DISCLOSURE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Total cash, cash equivalents and restricted cash shown in the statements of cash flows	$ 51,911	$ 23,336

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements of Industrial Logistics Properties Trust and its consolidated subsidiaries, or we, us or our, are unaudited. Certain information and disclosures required by U.S. generally accepted accounting principles, or GAAP, for complete financial statements have been condensed or omitted. We believe the disclosures made are adequate to make the information presented not misleading. However, the accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2019, or our 2019 Annual Report. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of results for the interim period have been included. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. Our operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. Reclassifications have been made to the prior year’s condensed consolidated financial statements to conform to the current year’s presentation. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts. Actual results could differ from those estimates. Significant estimates in the condensed consolidated financial statements include purchase price allocations, useful lives of fixed assets, impairments of real estate and related intangibles. In February and March 2020, we entered into agreements related to a joint venture with an institutional investor for 12 of our properties located in the mainland United States. The investor owns a 39% equity interest in the joint venture, and we own the remaining 61% equity interest in the joint venture. We have determined that this joint venture is a variable interest entity, or VIE, as defined under the Consolidation Topic of the Financial Accounting Standards Board, or FASB, Accounting Standards Codification. We concluded that we must consolidate this VIE because we are the entity with the power to direct the activities that most significantly impact the VIE’s economic performance and we have the obligation to absorb losses of, and the right to receive benefits from, the VIE that could be significant to the VIE, and therefore are the primary beneficiary of the VIE. The assets of this VIE were $655,618 as of September 30, 2020 and consist primarily of the real estate owned by the joint venture. The liabilities of this VIE were $408,906 as of September 30, 2020 and consist primarily of mortgage debts secured by the properties owned by the joint venture. The joint venture investor's interest in this consolidated entity is reflected as noncontrolling interest in our condensed consolidated financial statements. See Note 11 for further information about this joint venture.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2020
Accounting Standards Update and Change in Accounting Principle [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires that entities use a new forward looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. We adopted this standard which was effective as of January 1, 2020 using the modified retrospective approach. The implementation of this standard did not have a material impact in our condensed consolidated financial statements.

Real Estate Properties

Real Estate Properties	9 Months Ended
	Sep. 30, 2020
Real Estate [Abstract]
Real Estate Properties	Real Estate PropertiesAs of September 30, 2020, we owned 301 properties with a total of approximately 43,759,000 rentable square feet, including 226 buildings, leasable land parcels and easements with a total of approximately 16,756,000 rentable square feet of primarily industrial lands located on the island of Oahu, HI, or our Hawaii Properties, and 75 properties with a total of approximately 27,003,000 rentable square feet of industrial properties located in 30 other states, or our Mainland Properties, including 12 properties with approximately 9,227,000 rentable square feet owned by a joint venture in which we own a 61% equity interest and one property with approximately 308,000 rentable square feet which is classified as held for sale. We operate in one business segment: ownership and leasing of properties that include industrial and logistics buildings and leased industrial lands. For the three months ended September 30, 2020 and 2019, approximately 40.7% and 40.5%, respectively, of our rental income was from our Hawaii Properties. For the nine months ended September 30, 2020 and 2019, approximately 41.0% and 45.2%, respectively, of our rental income was from our Hawaii Properties. In addition, a subsidiary of Amazon.com, Inc., which is a tenant at certain of our Mainland Properties, accounted for $10,288, or 15.8%, and $8,992, or 14.8%, of our rental income for the three months ended September 30, 2020 and 2019, respectively, and $30,349, or 15.6%, and $22,557, or 13.5%, of our rental income for the nine months ended September 30, 2020 and 2019, respectively. During the nine months ended September 30, 2020, we completed the acquisition of an industrial property containing 820,384 rentable square feet for a purchase price of $71,628, including acquisition related costs of $147. This acquisition was accounted for as an asset acquisition. We allocated the purchase price for this acquisition based on the estimated fair value of the acquired assets as follows: Number Rentable Buildings Acquired of Square Purchase and Real Estate Date Market Area Properties Feet Price Land Improvements Leases February 2020 Phoenix, AZ 1 820,384 $ 71,628 $ 11,214 $ 54,676 $ 5,738 1 820,384 $ 71,628 $ 11,214 $ 54,676 $ 5,738 In September 2020, we entered into an agreement to sell one property located in Virginia containing approximately 308,000 rentable square feet for a sales price of $11,000, excluding closing costs. This sale is expected to occur during the fourth quarter of 2020. However, this sale is subject to conditions; accordingly, we cannot be sure that we will complete this sale, that this sale will not be delayed or that the terms will not change. We have classified this property as held for sale in our condensed consolidated balance sheets as of September 30, 2020. During the nine months ended September 30, 2020, we committed $1,614 for expenditures related to tenant improvements and leasing costs for leases executed during the period for approximately 849,000 square feet. Committed but unspent tenant related obligations based on existing leases as of September 30, 2020 were $499. Certain of our industrial lands in Hawaii may require environmental remediation, especially if the use of those lands is changed; however, we do not have any present plans to change the use of those lands. As of both September 30, 2020 and December 31, 2019, accrued environmental remediation costs of $6,940 were included in accounts payable and other liabilities in our condensed consolidated balance sheets. These accrued environmental remediation costs relate to maintenance of our properties for current uses, and, because of the indeterminable timing of the remediation, these amounts have not been discounted to present value. In general, we do not have any insurance designated to limit any losses that we may incur as a result of known or unknown environmental conditions which are not caused by an insured event, such as fire or flood, although some of our tenants may maintain such insurance that may benefit us. Although we do not believe that there are environmental conditions at any of our properties that will have a material adverse effect on us, we cannot be sure that such conditions are not present at our properties or that costs we incur to remediate contamination will not have a material adverse effect on our business or financial condition. Charges for environmental remediation costs, if any, are included in other operating expenses in our condensed consolidated statements of comprehensive income.

Leases

Leases	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Leases	Leases We are a lessor of industrial and logistics properties. Our leases provide our tenants with the contractual right to use and economically benefit from all the physical space specified in the leases; therefore, we have determined to evaluate our leases as lease arrangements. Our leases provide for base rent payments and in addition may include variable payments. Rental income from operating leases, including any payments derived by index or market-based indices, is recognized on a straight line basis over the lease term when we have determined that the collectability of substantially all of the lease payments is probable. Some of our leases have options to extend or terminate the lease exercisable at the option of our tenants, which are considered when determining the lease term. We do not include in our measurement of our lease receivables certain variable payments, including payments determined by changes in the index or market-based indices after the inception of the lease, certain tenant reimbursements and other income until the specific events that trigger the variable payments have occurred. Such payments totaled $11,943 and $10,915 for the three months ended September 30, 2020 and 2019, respectively, of which tenant reimbursements totaled $11,698 and $10,915, respectively, and $35,103 and $28,679 for the nine months ended September 30, 2020 and 2019, respectively, of which tenant reimbursements totaled $34,368 and $27,517, respectively. We increased rental income to record revenue on a straight line basis by $2,120 and $979 for the three months ended September 30, 2020 and 2019, respectively, and $6,183 and $3,960 for the nine months ended September 30, 2020 and 2019, respectively. Certain of our tenants have requested relief from their obligations to pay rent due to us in response to the current economic conditions resulting from the COVID-19 pandemic. As of October 23, 2020, we granted requests to certain of our tenants to defer aggregate rent payments of $3,578. In most cases, these tenants were obligated to pay the deferred rents in 12 equal monthly installments beginning in September 2020. We have elected to use the FASB relief package regarding the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. The FASB relief package provides entities with the option to account for lease concessions resulting from the COVID-19 pandemic outside of the existing lease modification guidance if the resulting cash flows from the modified lease are substantially the same as the original lease. Because the deferred rents referenced above will be repaid, the cash flows from the respective leases are substantially the same as before the rent deferrals. These deferred amounts did not impact our operating results for the three and nine months ended September 30, 2020 and as of September 30, 2020, we recognized $2,847 in our accounts receivable related to these deferred amounts.

Indebtedness

Indebtedness	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Indebtedness	Indebtedness As of September 30, 2020, our outstanding indebtedness consisted of the following: Net Book Value Principal Balance as of of Collateral September 30, December 31, Interest At September 30, 2020 (1) 2019 (1) Rate Maturity 2020 Unsecured revolving credit facility (2) $ 320,000 $ 310,000 1.56 % Dec 2021 $ — Mortgage note payable (secured by one property in Florida) (3) 56,980 56,980 4.22 % Oct 2023 104,173 Mortgage note payable (secured by 186 properties in Hawaii) 650,000 650,000 4.31 % Feb 2029 491,724 Mortgage note payable (secured by 11 Mainland Properties) (3) 350,000 350,000 3.33 % Nov 2029 490,109 Mortgage note payable (secured by one property in Virginia) — 48,750 N/A N/A N/A 1,376,980 1,415,730 $ 1,086,006 Unamortized debt issuance costs, premiums and discounts (8,459) (9,122) $ 1,368,521 $ 1,406,608 (1) The principal balances are the amounts stated in contracts. In accordance with GAAP, our carrying values and recorded interest expense may be different because of market conditions at the time we assumed certain of these debts. (2) The maturity date of our revolving credit facility is December 29, 2021 and we have the option to extend the maturity date for two, six (3) The properties encumbered by these mortgages are owned by a joint venture in which we own a 61% equity interest. We have a $750,000 unsecured revolving credit facility that is available for our general business purposes, including acquisitions. The maturity date of our revolving credit facility is December 29, 2021. We may borrow, repay and reborrow funds under our revolving credit facility until maturity, and no principal repayment is due until maturity. Interest on borrowings under our revolving credit facility is calculated at floating rates based on LIBOR plus a premium that varies based on our leverage ratio. We have the option to extend the maturity date of our revolving credit facility for two, six Our credit agreement provides for acceleration of payment of all amounts due thereunder upon the occurrence and continuation of certain events of default, such as a change of control of us, which includes The RMR Group LLC, or RMR LLC, ceasing to act as our business manager and property manager. Our credit agreement also contains a number of covenants, including covenants that restrict our ability to incur debts or to make distributions in certain circumstances, and generally requires us to maintain certain financial ratios. We believe we were in compliance with the terms and conditions of the covenants under our credit agreement at September 30, 2020. In May 2020, we prepaid at par plus accrued interest a mortgage note secured by one of our properties with an outstanding principal balance of approximately $48,750, an annual interest rate of 3.48% and a maturity date in November 2020. As a result of the prepayment of this mortgage note, we recorded a gain on early extinguishment of debt of $120 for the nine months ended September 30, 2020 to write off unamortized debt premiums.

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value of Assets and Liabilities	Fair Value of Assets and Liabilities Our financial instruments include cash and cash equivalents, restricted cash, rents receivable, our revolving credit facility, mortgage notes payable, accounts payable, rents collected in advance, security deposits and amounts due from or to related persons. At September 30, 2020 and December 31, 2019, the fair value of our financial instruments approximated their carrying values in our condensed consolidated financial statements, due to their short term nature or floating interest rates, except as follows: At September 30, 2020 At December 31, 2019 Carrying Estimated Carrying Estimated Value (1) Fair Value Value (1) Fair Value Mortgage notes payable $ 1,048,521 $ 1,140,188 $ 1,096,608 $ 1,143,437 (1) Includes unamortized debt issuance costs, premiums and discounts of $8,459 and $9,122 as of September 30, 2020 and December 31, 2019, respectively. We estimate the fair value of our mortgage notes payable using discounted cash flow analyses and currently prevailing market rates as of the measurement date (Level 3 inputs). Because Level 3 inputs are unobservable, our estimated fair value may differ materially from the actual fair value.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
Shareholders' Equity	Shareholders’ Equity Common Share Awards: On February 21, 2020, in connection with the election of two of our Trustees, we awarded to each such Trustee 3,000 of our common shares, valued at $23.54 per share, the closing price of our common shares on The Nasdaq Stock Market LLC, or Nasdaq, on that day. On May 28, 2020, in accordance with our Trustee compensation arrangements, we awarded to each of our then seven Trustees 3,500 of our common shares, valued at $18.77 per share, the closing price of our common shares on Nasdaq on that day. On September 17, 2020, we awarded under our equity compensation plan an aggregate of 108,600 of our common shares, valued at $22.65 per share, the closing price of our common shares on Nasdaq on that day, to our officers and certain other employees of RMR LLC. Common Share Purchases: During the nine months ended September 30, 2020, we purchased our common shares from our officers and certain former and current officers and employees of RMR LLC in satisfaction of tax withholding and payment obligations in connection with the vesting of awards of our common shares, valued at the closing price of our common shares on Nasdaq on the purchase dates, as follows: Date Purchased Number of Shares Price per Share 1/9/2020 420 $ 22.01 3/13/2020 531 $ 17.75 6/30/2020 613 $ 20.55 9/21/2020 16,496 $ 21.27 Distributions: During the nine months ended September 30, 2020 , we declared and paid a regular quarterly distribution to common shareholders as follows: Record Date Payment Date Distribution Per Share Total Distribution January 27, 2020 February 20, 2020 $ 0.33 $ 21,510 April 16, 2020 May 21, 2020 $ 0.33 $ 21,511 July 27, 2020 August 20, 2020 $ 0.33 $ 21,519 On October 15, 2020, we declared a regular quarterly distribution of $0.33 per common share, or approximately $21,550, to shareholders of record on October 26, 2020. We expect to pay this distribution on or about November 19, 2020.

Per Common Share Amounts

Per Common Share Amounts	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Per Common Share Amounts	Per Common Share Amounts The following table provides a reconciliation of the weighted average number of common shares used in the calculation of basic and diluted earnings per share (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Weighted average common shares for basic earnings per share 65,112 65,055 65,092 65,042 Effect of dilutive securities: unvested share awards 17 5 9 6 Weighted average common shares for diluted earnings per share 65,129 65,060 65,101 65,048

Business and Property Managemen

Business and Property Management Agreements with RMR LLC	9 Months Ended
	Sep. 30, 2020
Related Party Transactions [Abstract]
Business and Property Management Agreements with RMR LLC	Business and Property Management Agreements with RMR LLCWe have no employees. The personnel and various services we require to operate our business are provided to us by RMR LLC. We have two agreements with RMR LLC to provide management services to us: (1) a business management agreement, which relates to our business generally; and (2) a property management agreement, which relates to our property level operations. Pursuant to our business management agreement with RMR LLC, we recognized net business management fees of $3,410 and $9,994 for the three and nine months ended September 30, 2020, respectively, and $3,291 and $8,576 for the three and nine months ended September 30, 2019, respectively. T he net business management fees we recognized for the three and nine months ended September 30, 2020 include $347 and $823, respectively, of management fees related to our subsidiary level management agreement with RMR LLC entered in connection with our joint venture arrangement, which arrangement is further described in Note 11. Based on our common share total return, as defined in our business management agreement, as of September 30, 2020 and 2019, no incentive fees are included in the net business management fees we recognized for the three or nine months ended September 30, 2020 or 2019. The actual amount of annual incentive fees for 2020, if any, will be based on our common share total return, as defined in our business management agreement, for the period from January 12, 2018 to December 31, 2020 and will be payable in 2021. We did not incur any incentive fee payable to RMR LLC for the year ended December 31, 2019. We include business management fees in general and administrative expenses in our condensed consolidated statements of comprehensive income. Pursuant to our property management agreement with RMR LLC, we recognized aggregate property management and construction supervision fees of $1,914 and $5,697 for the three and nine months ended September 30, 2020, respectively, and $2,098 and $5,367 for the three and nine months ended September 30, 2019, respectively. These amounts are included in other operating expenses or have been capitalized, as appropriate, in our condensed consolidated financial statements. We are generally responsible for all our operating expenses, including certain expenses incurred or arranged by RMR LLC on our behalf. We are generally not responsible for payment of RMR LLC’s employment, office or administrative expenses incurred to provide management services to us, except for the applicable employment and related expenses of RMR LLC’s employees assigned to work exclusively or partly at our properties, our share of the wages, benefits and other related costs of RMR LLC’s centralized accounting personnel, our share of RMR LLC’s costs for providing our internal audit function, or as otherwise agreed. Our property level operating expenses are generally incorporated into the rents charged to our tenants, including certain payroll and related costs incurred by RMR LLC. We reimbursed RMR LLC $1,328 and $3,744 for these expenses and costs for the three and nine months ended September 30, 2020, respectively, and $1,203 and $3,132 for the three and nine months ended September 30, 2019, respectively. These amounts are included in other operating expenses and general and administrative expenses, as applicable, in our condensed consolidated statements of comprehensive income. See Note 10 for further information regarding our relationships, agreements and transactions with RMR LLC.

Related Person Transactions

Related Person Transactions	9 Months Ended
	Sep. 30, 2020
Related Party Transactions [Abstract]
Related Person Transactions	Related Person Transactions We have relationships and historical and continuing transactions with RMR LLC, The RMR Group Inc., or RMR Inc., and others related to them, including other companies to which RMR LLC or its subsidiaries provide management services and some of which have trustees, directors or officers who are also our Trustees or officers. RMR LLC is a majority owned subsidiary of RMR Inc. The Chair of our Board of Trustees and one of our Managing Trustees, Adam Portnoy, is the sole trustee, an officer and the controlling shareholder of ABP Trust, which is the controlling shareholder of RMR Inc., a managing director and the president and chief executive officer of RMR Inc. and an officer and employee of RMR LLC. John Murray, our other Managing Trustee and our President and Chief Executive Officer, also serves as an officer of RMR LLC, and each of our other officers is also an officer and employee of RMR LLC. Some of our Independent Trustees also serve as independent trustees or independent directors of other public companies to which RMR LLC or its subsidiaries provide management services. Adam Portnoy serves as chair of the boards of trustees or boards of directors of several of these public companies and as a managing director or managing trustee of these public companies. Other officers of RMR LLC, including Mr. Murray and certain of our other officers, serve as managing trustees, managing directors or officers of certain of these companies. See Note 7 for information relating to the awards of our common shares we made in September 2020 to our officers and certain other employees of RMR LLC and common shares we purchased in 2020 from our officers and certain former and current officers and employees of RMR LLC in satisfaction of tax withholding and payment obligations in connection with the vesting of awards of our common shares. We include amounts recognized as expense for awards of our common shares to our officers and RMR LLC employees in general and administrative expenses in our condensed consolidated statements of comprehensive income. Our Manager, RMR LLC . We have two agreements with RMR LLC to provide management services to us. See Note 9 for further information regarding our management agreements with RMR LLC. OPI. Office Properties Income Trust, or OPI, owed to us $1,504 as of December 31, 2019 for rents that it collected on our behalf from certain of our tenants. A predecessor of OPI previously owned those properties and those tenants first became tenants at those properties prior to our ownership. OPI paid these amounts due to us or collected on our behalf in January 2020. AIC. Until its dissolution on February 13, 2020, we, ABP Trust and five other companies to which RMR LLC provides management services owned Affiliates Insurance Company, or AIC, an Indiana insurance company, in equal amounts. Certain of our Trustees and certain trustees or directors of the other AIC shareholders served on the board of directors of AIC, until its dissolution. We and the other AIC shareholders historically participated in a combined property insurance program arranged and insured or reinsured in part by AIC. The policies under that program expired on June 30, 2019, and we and the other AIC shareholders elected not to renew the AIC property insurance program; we have instead purchased standalone property insurance coverage with unrelated third party insurance providers. As of September 30, 2020 and December 31, 2019, our investment in AIC had a carrying value of $11 and $298, respectively. These amounts are included in other assets in our condensed consolidated balance sheets. In June 2020, we received an additional liquidating distribution of approximately $287 from AIC in connection with its dissolution. We did not recognize any income related to our investment in AIC for the three and nine months ended September 30, 2020, respectively, and recognized $83 and $617 related to our investment in AIC for the three and nine months ended September 30, 2019, respectively, which amounts are presented as equity in earnings of an investee in our condensed consolidated statements of comprehensive income. Our other comprehensive income included our proportionate share of unrealized gains on securities, if any, which were owned by AIC, related to our investment in AIC. For further information about these and other such relationships and certain other related person transactions, see our 2019 Annual Report.

Noncontrolling Interest

Noncontrolling Interest	9 Months Ended
	Sep. 30, 2020
Noncontrolling Interest [Abstract]
Noncontrolling Interest	Noncontrolling Interest In February and March 2020, we entered into agreements related to a joint venture for 12 of our Mainland Properties with an Asian institutional investor. We contributed to the joint venture 11 of these properties in February 2020 and the remaining property in March 2020. We received from the investor $108,676 in aggregate for a 39% equity interest in the joint venture, and we retained the remaining 61% equity interest. The joint venture assumed $406,980 of then existing mortgage debts on the properties we contributed. We incurred transaction costs of $734 in connection with the formation of this joint venture. We recognized a noncontrolling interest in our condensed consolidated balance sheets of $98,375 as of the completion of this transaction, which was equal to 39% of our aggregate carrying value of the total equity of the properties immediately prior to our respective contributions of the properties to the joint venture. The difference between the net proceeds received from this transaction and the noncontrolling interest recognized, which was $9,567, has been reflected as an increase in additional paid in capital in our condensed consolidated balance sheets. The portion of the joint venture's net loss not attributable to us, or $275 and $691 for the three and nine months ended September 30, 2020, respectively, is reported as noncontrolling interest in our condensed consolidated statements of comprehensive income. During the three and nine months ended September 30, 2020, the joint venture made aggregate cash distributions of $2,107 and $4,005, respectively, to the other joint venture investor, which are reflected as a decrease in total equity attributable to noncontrolling interest in our condensed consolidated balance sheets. As of September 30, 2020, the joint venture held real estate assets with an aggregate net book value of $655,618, including restricted cash of $12,806, and had liabilities of $408,906.

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Standards Update and Change in Accounting Principle [Abstract]
Organization and basis of presentation	The accompanying condensed consolidated financial statements of Industrial Logistics Properties Trust and its consolidated subsidiaries, or we, us or our, are unaudited. Certain information and disclosures required by U.S. generally accepted accounting principles, or GAAP, for complete financial statements have been condensed or omitted. We believe the disclosures made are adequate to make the information presented not misleading. However, the accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2019, or our 2019 Annual Report. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of results for the interim period have been included. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. Our operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. Reclassifications have been made to the prior year’s condensed consolidated financial statements to conform to the current year’s presentation.
Use of estimates	The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts. Actual results could differ from those estimates. Significant estimates in the condensed consolidated financial statements include purchase price allocations, useful lives of fixed assets, impairments of real estate and related intangibles.
Recent accounting pronouncements	In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires that entities use a new forward looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. We adopted this standard which was effective as of January 1, 2020 using the modified retrospective approach. The implementation of this standard did not have a material impact in our condensed consolidated financial statements.
Fair value of assets and liabilities	We estimate the fair value of our mortgage notes payable using discounted cash flow analyses and currently prevailing market rates as of the measurement date (Level 3 inputs). Because Level 3 inputs are unobservable, our estimated fair value may differ materially from the actual fair value.

Real Estate Properties (Tables)

Real Estate Properties (Tables)	9 Months Ended
	Sep. 30, 2020
Real Estate [Abstract]
Schedule of real estate properties	We allocated the purchase price for this acquisition based on the estimated fair value of the acquired assets as follows: Number Rentable Buildings Acquired of Square Purchase and Real Estate Date Market Area Properties Feet Price Land Improvements Leases February 2020 Phoenix, AZ 1 820,384 $ 71,628 $ 11,214 $ 54,676 $ 5,738 1 820,384 $ 71,628 $ 11,214 $ 54,676 $ 5,738

Indebtedness (Tables)

Indebtedness (Tables)	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Schedule of outstanding indebtedness	As of September 30, 2020, our outstanding indebtedness consisted of the following: Net Book Value Principal Balance as of of Collateral September 30, December 31, Interest At September 30, 2020 (1) 2019 (1) Rate Maturity 2020 Unsecured revolving credit facility (2) $ 320,000 $ 310,000 1.56 % Dec 2021 $ — Mortgage note payable (secured by one property in Florida) (3) 56,980 56,980 4.22 % Oct 2023 104,173 Mortgage note payable (secured by 186 properties in Hawaii) 650,000 650,000 4.31 % Feb 2029 491,724 Mortgage note payable (secured by 11 Mainland Properties) (3) 350,000 350,000 3.33 % Nov 2029 490,109 Mortgage note payable (secured by one property in Virginia) — 48,750 N/A N/A N/A 1,376,980 1,415,730 $ 1,086,006 Unamortized debt issuance costs, premiums and discounts (8,459) (9,122) $ 1,368,521 $ 1,406,608 (1) The principal balances are the amounts stated in contracts. In accordance with GAAP, our carrying values and recorded interest expense may be different because of market conditions at the time we assumed certain of these debts. (2) The maturity date of our revolving credit facility is December 29, 2021 and we have the option to extend the maturity date for two, six

Fair Value of Assets and Liab_2

Fair Value of Assets and Liabilities (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Schedule of carrying value and the estimated fair market value of mortgage notes payable	At September 30, 2020 and December 31, 2019, the fair value of our financial instruments approximated their carrying values in our condensed consolidated financial statements, due to their short term nature or floating interest rates, except as follows: At September 30, 2020 At December 31, 2019 Carrying Estimated Carrying Estimated Value (1) Fair Value Value (1) Fair Value Mortgage notes payable $ 1,048,521 $ 1,140,188 $ 1,096,608 $ 1,143,437 (1) Includes unamortized debt issuance costs, premiums and discounts of $8,459 and $9,122 as of September 30, 2020 and December 31, 2019, respectively.

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
Schedule of share repurchases	During the nine months ended September 30, 2020, we purchased our common shares from our officers and certain former and current officers and employees of RMR LLC in satisfaction of tax withholding and payment obligations in connection with the vesting of awards of our common shares, valued at the closing price of our common shares on Nasdaq on the purchase dates, as follows: Date Purchased Number of Shares Price per Share 1/9/2020 420 $ 22.01 3/13/2020 531 $ 17.75 6/30/2020 613 $ 20.55 9/21/2020 16,496 $ 21.27
Schedule of distributions declared and paid	During the nine months ended September 30, 2020 , we declared and paid a regular quarterly distribution to common shareholders as follows: Record Date Payment Date Distribution Per Share Total Distribution January 27, 2020 February 20, 2020 $ 0.33 $ 21,510 April 16, 2020 May 21, 2020 $ 0.33 $ 21,511 July 27, 2020 August 20, 2020 $ 0.33 $ 21,519

Per Common Share Amounts (Table

Per Common Share Amounts (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Schedule of weighted average number of shares	The following table provides a reconciliation of the weighted average number of common shares used in the calculation of basic and diluted earnings per share (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Weighted average common shares for basic earnings per share 65,112 65,055 65,092 65,042 Effect of dilutive securities: unvested share awards 17 5 9 6 Weighted average common shares for diluted earnings per share 65,129 65,060 65,101 65,048

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details) $ in Thousands	Sep. 30, 2020USD ($)property	Mar. 31, 2020property	Feb. 29, 2020property	Dec. 31, 2019USD ($)
Variable Interest Entity [Line Items]
Value of VIE assets, net	$ 2,498,994			$ 2,454,901
Twelve Mainland Properties
Variable Interest Entity [Line Items]
Number of properties contributed | property	12	12	11
Ownership interest	61.00%	61.00%
Variable Interest Entity | Twelve Mainland Properties
Variable Interest Entity [Line Items]
Value of VIE assets, net	$ 655,618
Non-recourse liabilities	$ 408,906
Twelve Mainland Properties
Variable Interest Entity [Line Items]
Number of properties contributed | property	12
Equity interest sold in joint venture	39.00%

Real Estate Properties - Narrat

Real Estate Properties - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)ft²propertystatebuilding	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)ft²propertysegmentstatebuilding	Sep. 30, 2019USD ($)	Mar. 31, 2020property	Feb. 29, 2020property
Real Estate Properties [Line Items]
Number of properties owned | property	301		301
Net rentable area | ft²	43,759,000		43,759,000
Number of business segments | segment			1
Rental income | $	$ 65,106	$ 60,958	$ 194,494	$ 167,035
Commitments related to tenant improvements and leasing costs | $			$ 1,614
Net rentable area | ft²	849,000		849,000
Committed bus unspent tenant related obligations | $	$ 499		$ 499
Accrued environmental remediation costs | $	6,940		6,940
Amazon Inc Subsidiaries
Real Estate Properties [Line Items]
Rental income | $	$ 10,288	$ 8,992	$ 30,349	$ 22,557
Sales Revenue, Net | Customer Concentration Risk | Amazon Inc Subsidiaries
Real Estate Properties [Line Items]
Percentage of revenues	15.80%	14.80%	15.60%	13.50%
Hawaii
Real Estate Properties [Line Items]
Net rentable area | ft²	16,756,000		16,756,000
Number of buildings, leasable land parcels easements | building	226		226
Hawaii | Sales Revenue, Net | Geographic Concentration Risk
Real Estate Properties [Line Items]
Percentage of revenues	40.70%	40.50%	41.00%	45.20%
Other States
Real Estate Properties [Line Items]
Number of properties owned | property	75		75
Net rentable area | ft²	27,003,000		27,003,000
Number of states where real estate is located | state	30		30
Indianapolis and Cincinnati
Real Estate Properties [Line Items]
Net rentable area | ft²	820,384		820,384
Acquisition related costs | $			$ 147
Office and Industrial Properties
Real Estate Properties [Line Items]
Net rentable area | ft²	820,384		820,384
Payments to acquire property, plant, and equipment | $			$ 71,628
Twelve Mainland Properties
Real Estate Properties [Line Items]
Net rentable area | ft²	9,227,000		9,227,000
Number of properties contributed | property	12		12		12	11
Ownership interest	61.00%		61.00%		61.00%
Twelve Mainland Properties | Discontinued Operations, Held-for-sale
Real Estate Properties [Line Items]
Number of properties | property	1		1
Twelve Mainland Properties | Winchester, VA | Discontinued Operations, Held-for-sale
Real Estate Properties [Line Items]
Net rentable area | ft²	308,000		308,000
Number of properties | property	1		1
Disposal Group, Including Discontinued Operation, Consideration | $	$ 11		$ 11

Real Estate Properties - Schedu

Real Estate Properties - Schedule of Real Estate Properties (Details) $ in Thousands	1 Months Ended	9 Months Ended
	Feb. 29, 2020USD ($)ft²property	Sep. 30, 2020USD ($)ft²property	Dec. 31, 2019USD ($)
Real Estate [Line Items]
Rentable Square Feet | ft²		43,759,000
Land		$ 757,522	$ 747,794
Buildings and Improvements		1,632,842	1,588,170
Acquired Real Estate Leases		$ 123,146	$ 138,596
Office and Industrial Properties
Real Estate [Line Items]
Number of properties acquired | property		1
Rentable Square Feet | ft²		820,384
Purchase Price		$ 71,628
Land		11,214
Buildings and Improvements		54,676
Goodyear, AZ | Office and Industrial Properties
Real Estate [Line Items]
Number of properties acquired | property	1
Rentable Square Feet | ft²	820,384
Purchase Price	$ 71,628
Land	11,214
Buildings and Improvements	54,676
Acquired Real Estate Leases | Office and Industrial Properties
Real Estate [Line Items]
Acquired Real Estate Leases		$ 5,738
Acquired Real Estate Leases | Goodyear, AZ | Office and Industrial Properties
Real Estate [Line Items]
Acquired Real Estate Leases	$ 5,738

Leases - Narrative (Details)

Leases - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)payment	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)payment	Sep. 30, 2019USD ($)	Oct. 23, 2020USD ($)
Lessor, Lease, Description [Line Items]
Certain variable payments	$ 11,943	$ 10,915	$ 35,103	$ 28,679
Tenant reimbursements	11,698	10,915	34,368	27,517
Straight line rental income	$ 2,120	$ 979	$ 6,183	$ 3,960
Number of monthly installment payments | payment	12		12
Increase to accounts receivable from deferred payments			$ 2,847
Subsequent Event
Lessor, Lease, Description [Line Items]
Amount of rent assistance provided					$ 3,578

Indebtedness - Summary of Outst

Indebtedness - Summary of Outstanding Indebtedness (Details) $ in Thousands	1 Months Ended	9 Months Ended
	May 31, 2020USD ($)property	Sep. 30, 2020USD ($)optionproperty	Dec. 31, 2019USD ($)
Debt Instrument [Line Items]
Principal Balance		$ 1,376,980	$ 1,415,730
Unamortized debt issuance costs, premiums and discounts		(8,459)	(9,122)
Carrying value		1,368,521	1,406,608
Net Book Value of Collateral		$ 1,086,006
Virginia
Debt Instrument [Line Items]
Number of properties used as collateral | property		1
Hawaii
Debt Instrument [Line Items]
Number of properties used as collateral | property		186
Mainland Properties
Debt Instrument [Line Items]
Number of properties used as collateral | property		11
Florida
Debt Instrument [Line Items]
Number of properties used as collateral | property		1
Revolving credit facility
Debt Instrument [Line Items]
Principal Balance		$ 320,000	310,000
Interest rate (as a percent)		1.56%
Net Book Value of Collateral		$ 0
Number of options to extend maturity date | option		2
Extension of maturity date		6 months
Mortgage note payable | Mortgage note payable (secured by one property in Florida)
Debt Instrument [Line Items]
Principal Balance		$ 56,980	56,980
Interest rate (as a percent)		4.22%
Net Book Value of Collateral		$ 104,173
Mortgage note payable | Mortgage note payable (secured by 186 properties in Hawaii)
Debt Instrument [Line Items]
Principal Balance		$ 650,000	650,000
Interest rate (as a percent)		4.31%
Net Book Value of Collateral		$ 491,724
Mortgage note payable | Mortgage note payable (secured by 11 Mainland Properties)
Debt Instrument [Line Items]
Principal Balance		$ 350,000	350,000
Interest rate (as a percent)		3.33%
Net Book Value of Collateral		$ 490,109
Mortgage note payable | Mortgage note payable (secured by one property in Virginia)
Debt Instrument [Line Items]
Principal Balance	$ 48,750	$ 0	$ 48,750
Number of properties used as collateral | property	1
Eleven Mainland Properties
Debt Instrument [Line Items]
Ownership interest		61.00%

Indebtedness - Narrative (Detai

Indebtedness - Narrative (Details)	1 Months Ended	3 Months Ended		9 Months Ended
	May 31, 2020USD ($)property	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)option	Sep. 30, 2019USD ($)	Oct. 26, 2020USD ($)	Dec. 31, 2019USD ($)
Debt Instrument [Line Items]
Revolving credit facility		$ 320,000,000		$ 320,000,000			$ 310,000,000
Principal Balance		1,376,980,000		1,376,980,000			1,415,730,000
Gain on early extinguishment of debt		0	$ 0	120,000	$ 0
Revolving credit facility
Debt Instrument [Line Items]
Maximum borrowing capacity of revolving credit facility and term loan		750,000,000		$ 750,000,000
Number of options to extend maturity date | option				2
Extension of maturity date				6 months
Option to increase maximum borrowing capacity		$ 1,500,000,000		$ 1,500,000,000
Commitment fee percentage				0.25%
Interest rate at the end of the period (as a percent)		1.56%	3.26%	1.56%	3.26%
Weighted average interest rate (as a percent)		1.57%	3.73%	2.51%	3.75%
Revolving credit facility		$ 320,000,000		$ 320,000,000
Remaining borrowing capacity		430,000,000		430,000,000
Principal Balance		320,000,000		$ 320,000,000			310,000,000
Revolving credit facility | Subsequent Event
Debt Instrument [Line Items]
Revolving credit facility						$ 293,000,000
Remaining borrowing capacity						$ 457,000,000
Revolving credit facility | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate				1.40%
Mortgage note payable | Mortgage note payable (secured by one property in Virginia)
Debt Instrument [Line Items]
Number of properties used as collateral | property	1
Principal Balance	$ 48,750,000	$ 0		$ 0			$ 48,750,000
Stated interest rate	3.48%

Fair Value of Assets and Liab_3

Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value of Financial Instruments
Mortgage notes payable	$ 1,048,521	$ 1,096,608
Carrying Value
Fair Value of Financial Instruments
Mortgage notes payable	1,048,521	1,096,608
Estimated Fair Value
Fair Value of Financial Instruments
Mortgage notes payable	1,140,188	1,143,437
Mortgage note payable
Fair Value of Financial Instruments
Unamortized premium	$ 8,459	$ 9,122

Shareholders' Equity (Details)

Shareholders' Equity (Details) $ / shares in Units, $ in Thousands	Oct. 15, 2020USD ($)$ / shares	Sep. 21, 2020$ / sharesshares	Sep. 17, 2020$ / sharesshares	Aug. 20, 2020USD ($)$ / shares	Jun. 30, 2020$ / sharesshares	May 28, 2020employee$ / sharesshares	May 21, 2020USD ($)$ / shares	Mar. 13, 2020$ / sharesshares	Feb. 21, 2020employee$ / sharesshares	Feb. 20, 2020USD ($)$ / shares	Jan. 09, 2020$ / sharesshares	Sep. 30, 2020USD ($)	Jun. 30, 2020USD ($)$ / shares	Mar. 31, 2020USD ($)	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)
Shareholders' Equity
Dividends paid (in dollars per share)				$ 0.33			$ 0.33			$ 0.33
Dividends paid | $				$ 21,519			$ 21,511			$ 21,510		$ 21,519	$ 21,511	$ 21,510	$ 21,479	$ 21,475	$ 21,474
Common shares
Shareholders' Equity
Number of Shares (in shares) | shares		16,496			613			531			420
Price per Share (in dollars per share)		$ 21.27			$ 20.55			$ 17.75			$ 22.01		$ 20.55
Trustees
Shareholders' Equity
Number of officers elected | employee									2
Number of officers | employee						7
Trustees | Common shares
Shareholders' Equity
Common shares granted (in shares) | shares									3,000
Per share value of common shares granted (in dollars per share)						$ 18.77			$ 23.54
Shares granted in period (in shares) | shares						3,500
Officers and Other Employees | Common shares
Shareholders' Equity
Common shares granted (in shares) | shares			108,600
Per share value of common shares granted (in dollars per share)			$ 22.65
Subsequent Event
Shareholders' Equity
Dividends paid (in dollars per share)	$ 0.33
Dividends paid | $	$ 21,550

Per Common Share Amounts (Detai

Per Common Share Amounts (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Weighted average common shares for basic earnings per share (in shares)	65,112	65,055	65,092	65,042
Effect of dilutive securities: unvested share awards (in shares)	17	5	9	6
Weighted average common shares for diluted earnings per share (in shares)	65,129	65,060	65,101	65,048

Business and Property Managem_2

Business and Property Management Agreements with RMR LLC (Details)	3 Months Ended			9 Months Ended
	Sep. 30, 2020USD ($)employeeagreement	Mar. 31, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)employeeagreement	Sep. 30, 2019USD ($)
Related Party Transaction [Line Items]
Number of employees | employee	0			0
Business management fees	$ 347,000			$ 823,000
Incentive fee expense		$ 0
Reit Management And Research L L C
Related Party Transaction [Line Items]
Number of management service agreements | agreement	2			2
Business management fees	$ 3,410,000		$ 3,291,000	$ 9,994,000	$ 8,576,000
Construction supervision fees	1,914,000		2,098,000	5,697,000	5,367,000
Related party reimbursement expense	$ 1,328,000		$ 1,203,000	$ 3,744,000	$ 3,132,000

Related Person Transactions - N

Related Person Transactions - Narrative (Details)	1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 30, 2020USD ($)	Sep. 30, 2020USD ($)agreement	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)agreement	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Related Party Transaction [Line Items]
Due from related persons		$ 0		$ 0		$ 1,504,000
Distributions in excess of earnings from Affiliates Insurance Company				287,000	$ 0
Income in AIC investment		0	$ 83,000	0	617,000
AIC
Related Party Transaction [Line Items]
Investments in AIC		$ 11,000		11,000		298,000
Distributions in excess of earnings from Affiliates Insurance Company	$ 287,000
Income in AIC investment			$ 83,000	$ 0	$ 617,000
Select Income REIT
Related Party Transaction [Line Items]
Due from related persons						$ 1,504,000
Reit Management And Research L L C
Related Party Transaction [Line Items]
Number of management service agreements | agreement		2		2

Noncontrolling Interest (Detail

Noncontrolling Interest (Details)	2 Months Ended	3 Months Ended			9 Months Ended
	Mar. 31, 2020USD ($)property	Sep. 30, 2020USD ($)property	Mar. 31, 2020USD ($)property	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)property	Sep. 30, 2019USD ($)	Feb. 29, 2020property	Dec. 31, 2019USD ($)
Noncontrolling Interest [Line Items]
Contributions from noncontrolling interest		$ 302,000	$ 107,640,000
Net income (loss) attributable to noncontrolling interest		275,000		$ 0	$ 691,000	$ 0
Cash distributions from joint ventures					107,942,000	$ 0
Value of VIE assets, net		$ 2,498,994,000			$ 2,498,994,000			$ 2,454,901,000
Twelve Mainland Properties
Noncontrolling Interest [Line Items]
Number of properties contributed | property	12	12	12		12		11
Noncontrolling interest	$ 108,676,000
Noncontrolling interest, ownership percentage by noncontrolling owners	39.00%		39.00%				39.00%
Ownership interest	61.00%	61.00%	61.00%		61.00%
Transactions costs	$ 734,000
Noncontrolling Interest in Joint Ventures		$ 98,375,000			$ 98,375,000
Twelve Mainland Properties | Mortgage note payable
Noncontrolling Interest [Line Items]
Outstanding mortgage debt	$ 406,980,000		$ 406,980,000
Variable Interest Entity | Twelve Mainland Properties
Noncontrolling Interest [Line Items]
Net income (loss) attributable to noncontrolling interest		275,000			691,000
Cash distributions from joint ventures		2,107,000			4,005,000
Value of VIE assets, net		655,618,000			655,618,000
Restricted cash		12,806,000			12,806,000
Non-recourse liabilities		408,906,000			408,906,000
Additional Paid-in Capital
Noncontrolling Interest [Line Items]
Contributions from noncontrolling interest		$ 2,595,000	$ 6,972,000
Additional Paid-in Capital | Twelve Mainland Properties
Noncontrolling Interest [Line Items]
Contributions from noncontrolling interest					$ 9,567,000