Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 65,831,530 | |
Entity Central Index Key | 0001717307 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | |
Real estate properties: | |||
Land | $ 1,113,723 | $ 1,113,723 | |
Buildings and improvements | 4,057,048 | 4,055,829 | |
Total real estate properties, gross | 5,170,771 | 5,169,552 | |
Accumulated depreciation | (428,967) | (397,454) | |
Total real estate properties, net | 4,741,804 | 4,772,098 | |
Investment in unconsolidated joint venture | 116,093 | 115,360 | |
Acquired real estate leases, net | 231,621 | 243,521 | |
Cash and cash equivalents | 128,394 | 112,341 | |
Restricted cash and cash equivalents | 108,083 | [1] | 133,382 |
Rents receivable, including straight line rents of $97,798 and $94,309, respectively | 116,170 | 119,170 | |
Other assets, net | 85,404 | 67,803 | |
Total assets | 5,527,569 | 5,563,675 | |
LIABILITIES AND EQUITY | |||
Mortgages and notes payable, net | 4,307,999 | 4,305,941 | |
Assumed real estate lease obligations, net | 17,608 | 18,534 | |
Total liabilities | 4,405,069 | 4,401,896 | |
Commitments and contingencies | |||
Equity: | |||
Common shares of beneficial interest, $.01 par value: 100,000,000 shares authorized; 65,831,530 and 65,843,387 shares issued and outstanding, respectively | 658 | 658 | |
Additional paid in capital | 1,016,067 | 1,015,777 | |
Cumulative net (deficit) income | (14,207) | 9,196 | |
Cumulative other comprehensive income | 7,213 | 10,171 | |
Cumulative common distributions | (366,506) | (365,848) | |
Total equity attributable to common shareholders | 643,225 | 669,954 | |
Noncontrolling interest | 479,275 | 491,825 | |
Total equity | 1,122,500 | 1,161,779 | |
Total liabilities and equity | 5,527,569 | 5,563,675 | |
Nonrelated Party | |||
LIABILITIES AND EQUITY | |||
Accounts payable and other liabilities | 73,923 | 72,455 | |
Related Party | |||
LIABILITIES AND EQUITY | |||
Accounts payable and other liabilities | $ 5,539 | $ 4,966 | |
[1] Restricted cash and cash equivalents consists of amounts escrowed for capital expenditures at certain of our mortgaged properties and cash held for the operations of our consolidated joint venture. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Straight line rents | $ 97,798 | $ 94,309 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common shares, shares issued (in shares) | 65,831,530 | 65,843,387 |
Common shares, shares outstanding (in shares) | 65,831,530 | 65,843,387 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues [Abstract] | ||
Rental income | $ 112,235 | $ 110,258 |
Expenses: | ||
Real estate taxes | 15,861 | 16,467 |
Other operating expenses | 10,322 | 9,318 |
Depreciation and amortization | 43,577 | 45,457 |
General and administrative | 7,689 | 7,907 |
Total expenses | 77,449 | 79,149 |
Interest and other income | 2,852 | 1,146 |
Interest expense | (73,230) | (70,771) |
Loss on sale of real estate | 0 | (974) |
Loss before income taxes and equity in earnings of unconsolidated joint venture | (35,592) | (39,490) |
Income tax expense | (33) | (17) |
Equity in earnings of unconsolidated joint venture | 1,723 | 3,961 |
Net loss | (33,902) | (35,546) |
Net loss attributable to noncontrolling interest | 10,499 | 10,737 |
Net loss attributable to common shareholders | (23,403) | (24,809) |
Other comprehensive income: | ||
Unrealized loss on derivatives | (4,846) | (8,778) |
Less: unrealized loss on derivatives attributable to noncontrolling interest | 1,888 | 1,760 |
Other comprehensive loss attributable to common shareholders | (2,958) | (7,018) |
Comprehensive loss attributable to common shareholders | $ (26,361) | $ (31,827) |
Weighted average common shares outstanding - basic (in shares) | 65,556 | 65,309 |
Weighted average common shares outstanding - diluted (in shares) | 65,556 | 65,309 |
Per common share data (basic and diluted): | ||
Net loss attributable to common shareholders, basic (in dollars per share) | $ (0.36) | $ (0.38) |
Net loss attributable to common shareholders, diluted (in dollars per share) | $ (0.36) | $ (0.38) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Total Equity Attributable to Common Shareholders | Common shares | Additional Paid In Capital | Cumulative Net (Deficit) Income | Cumulative Other Comprehensive Income | Cumulative Common Distributions | Total Attributable to Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2022 | 65,568,145 | |||||||
Beginning balance at Dec. 31, 2022 | $ 1,330,771 | $ 790,724 | $ 656 | $ 1,014,201 | $ 117,185 | $ 21,903 | $ (363,221) | $ 540,047 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (35,546) | (24,809) | (24,809) | (10,737) | ||||
Share grants, repurchases and forfeitures (in shares) | (2,176) | |||||||
Share grants, repurchases and forfeitures | 384 | 384 | 384 | |||||
Distributions to common shareholders | (656) | (656) | (656) | |||||
Other comprehensive loss | (8,778) | (7,018) | (7,018) | (1,760) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 65,565,969 | |||||||
Ending balance at Mar. 31, 2023 | $ 1,286,175 | 758,625 | $ 656 | 1,014,585 | 92,376 | 14,885 | (363,877) | 527,550 |
Beginning balance (in shares) at Dec. 31, 2023 | 65,843,387 | 65,843,387 | ||||||
Beginning balance at Dec. 31, 2023 | $ 1,161,779 | 669,954 | $ 658 | 1,015,777 | 9,196 | 10,171 | (365,848) | 491,825 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (33,902) | (23,403) | (23,403) | (10,499) | ||||
Share grants, repurchases and forfeitures (in shares) | (11,857) | |||||||
Share grants, repurchases and forfeitures | 290 | 290 | 290 | |||||
Distributions to common shareholders | (658) | (658) | (658) | |||||
Other comprehensive loss | (4,846) | (2,958) | (2,958) | (1,888) | ||||
Distributions to noncontrolling interest | $ (163) | (163) | ||||||
Ending balance (in shares) at Mar. 31, 2024 | 65,831,530 | 65,831,530 | ||||||
Ending balance at Mar. 31, 2024 | $ 1,122,500 | $ 643,225 | $ 658 | $ 1,016,067 | $ (14,207) | $ 7,213 | $ (366,506) | $ 479,275 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (33,902) | $ (35,546) | |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Depreciation | 31,540 | 31,224 | |
Net amortization of debt issuance costs, premiums and discounts | 6,654 | 6,713 | |
Amortization of acquired real estate leases and assumed real estate lease obligations | 10,974 | 13,414 | |
Amortization of deferred leasing costs | 705 | 559 | |
Straight line rental income | (3,489) | (3,762) | |
Loss on sale of real estate | 0 | 974 | |
Proceeds from settlement of derivatives | (16,537) | (12,976) | |
General and administrative expenses paid in common shares | 339 | 387 | |
Other non-cash expenses | 7,210 | 6,145 | |
Distributions of earnings from unconsolidated joint venture | 990 | 990 | |
Equity in earnings of unconsolidated joint venture | (1,723) | (3,961) | |
Change in assets and liabilities: | |||
Rents receivable | 6,489 | (242) | |
Other assets | (3,972) | (7,449) | |
Accounts payable and other liabilities | 2,138 | 3,747 | |
Due to related persons | 573 | 950 | |
Net cash provided by operating activities | 7,989 | 1,167 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Real estate improvements | (2,132) | (3,784) | |
Purchase of interest rate cap | (26,175) | 0 | |
Proceeds from settlement of derivatives | 16,537 | 12,976 | |
Proceeds from sale of real estate | 0 | 243 | |
Net cash (used in) provided by investing activities | (11,770) | 9,435 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayment of mortgage notes payable | (4,466) | (5,530) | |
Payment of debt issuance costs | (129) | (34) | |
Distributions to common shareholders | (658) | (656) | |
Repurchase of common shares | (49) | (3) | |
Distributions to noncontrolling interest | (163) | 0 | |
Net cash used in financing activities | (5,465) | (6,223) | |
(Decrease) increase in cash and cash equivalents and restricted cash and cash equivalents | (9,246) | 4,379 | |
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period | 245,723 | 140,780 | |
Cash and cash equivalents and restricted cash and cash equivalents at end of period | 236,477 | 145,159 | |
SUPPLEMENTAL DISCLOSURES: | |||
Interest paid | 59,621 | 68,600 | |
Cash received for income tax refund | 80 | 0 | |
NON-CASH INVESTING ACTIVITIES: | |||
Real estate improvements accrued not paid | 348 | 2,092 | |
SUPPLEMENTAL DISCLOSURE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS: | |||
Cash and cash equivalents | 128,394 | 61,250 | |
Restricted cash and cash equivalents | [1] | 108,083 | 83,909 |
Total cash and cash equivalents and restricted cash shown in the statements of cash flows | $ 236,477 | $ 145,159 | |
[1] Restricted cash and cash equivalents consists of amounts escrowed for capital expenditures at certain of our mortgaged properties and cash held for the operations of our consolidated joint venture. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
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 the Company, ILPT, 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, 2023, or our 2023 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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements New Accounting Pronouncements. In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update, or ASU, 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities, including those with a single reportable segment, to: (i) provide disclosures of significant segment expenses and other segment items if they are regularly provided to the chief operating decision maker, or the CODM, and included in each reported measure of segment profit or loss; (ii) provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by Accounting Standards Codification, or ASC, 280, Segment Reporting , in interim periods; and (iii) disclose the CODM’s title and position, as well as an explanation of how the CODM uses the reported measures and other disclosures. ASU 2023-07 does not change how a public entity identifies its operating segments, aggregates those operating segments or applies the quantitative thresholds to determine its reportable segments. ASU 2023-07 is required to be applied retrospectively and is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact ASU 2023-07 will have on our condensed consolidated financial statements. |
Real Estate Investments
Real Estate Investments | 3 Months Ended |
Mar. 31, 2024 | |
Real Estate [Abstract] | |
Real Estate Investments | Real Estate Investments As of March 31, 2024, our portfolio was comprised of 411 properties containing approximately 59,893,000 rentable square feet located in 39 states, including 226 buildings, leasable land parcels and easements containing approximately 16,729,000 rentable square feet that were primarily industrial lands located on the island of Oahu, Hawaii, or our Hawaii Properties, and 185 properties containing approximately 43,164,000 rentable square feet that were industrial and logistics properties located in 38 other states, or our Mainland Properties. As of March 31, 2024, we also owned a 22% equity interest in an unconsolidated joint venture. We operate in one business segment: ownership and leasing of properties that include industrial and logistics buildings and leased industrial lands. We incurred capital expenditures at certain of our properties of $3,373, and $4,931, during the three months ended March 31, 2024 and 2023, respectively. Capital expenditures include leasing costs of $2,127 and $1,562 for the three months ended March 31, 2024 and 2023, respectively. During the three months ended March 31, 2024, we committed $3,471 for expenditures related to tenant improvements and leasing costs for leases executed during the period for approximately 1,981,000 rentable square feet. Committed, but unspent, tenant related obligations based on existing leases as of March 31, 2024 were $5,981, all of which is expected to be spent during the next 12 months. Consolidated Joint Venture We own a 61% equity interest in Mountain Industrial REIT LLC, or Mountain JV, or our consolidated joint venture, which owns 94 properties in 27 states totaling approximately 20,981,000 rentable square feet. We control this consolidated joint venture and therefore account for the properties owned by this joint venture on a consolidated basis in our condensed consolidated financial statements. We recognized net loss attributable to noncontrolling interest in our condensed consolidated financial statements for the three months ended March 31, 2024 and 2023 of $10,514 and $10,728, respectively. As of March 31, 2024, our consolidated joint venture had total assets of $2,991,343 and total liabilities of $1,771,327. Consolidated Tenancy in Common An unrelated third party owns an approximate 33% tenancy in common interest in one property located in Somerset, New Jersey with approximately 64,000 rentable square feet, and we own the remaining 67% tenancy in common interest in this property. We recognized net income (loss) attributable to noncontrolling interest in our condensed consolidated financial statements for the three months ended March 31, 2024 and 2023 of $15 and ($9), respectively. During the three months ended March 31, 2024, the tenancy in common made cash distributions of $163 to the unrelated third party investor. As of March 31, 2024, the tenancy in common had total assets of $10,877 and total liabilities of $60. Unconsolidated Joint Venture We own a 22% equity interest in The Industrial Fund REIT LLC, or the unconsolidated joint venture, which owns 18 industrial properties located in 12 states totaling approximately 11,726,000 rentable square feet. We account for the unconsolidated joint venture under the equity method of accounting under the fair value option. We recognize changes in the fair value of our investment in the unconsolidated joint venture as equity in earnings of the unconsolidated joint venture in our condensed consolidated statements of comprehensive income (loss). |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
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 their respective leases and are generally classified as operating leases. 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 $21,175 and $21,099 for the three months ended March 31, 2024 and 2023, respectively. Generally, payments of ground lease obligations are made by our tenants. However, if a tenant does not perform obligations under a ground lease or does not renew any ground lease, we may have to perform obligations under, or renew, the ground lease in order to protect our investment in the affected property. Right of Use Assets and Lease Liabilities We are the lessee for three of our properties subject to ground leases and one office lease that we assumed in an acquisition. For leases with a term greater than 12 months under which we are the lessee, we recognize right of use assets and lease liabilities. The values of our right of use assets and related lease liabilities were $4,534 and $4,621, respectively, as of March 31, 2024, and $4,646 and $4,730, respectively, as of December 31, 2023. Our right of use assets and related lease liabilities are included in other assets, net and accounts payable and other liabilities, respectively, in our condensed consolidated balance sheets. Geographic Concentration For the three months ended March 31, 2024 and 2023, our Hawaii Properties represented 28.0% and 27.4%, respectively, of our rental income. Tenant Concentration We define annualized rental revenues as the annualized contractual base rents from our tenants pursuant to our lease agreements as of the measurement date, including straight line rent adjustments and estimated recurring expense reimbursements to be paid to us, and excluding amortization of deferred leasing costs. Subsidiaries of FedEx Corporation, or FedEx, and subsidiaries of Amazon.com Services, Inc., or Amazon, represented 28.9% and 6.7% of our annualized rental revenues as of March 31, 2024, respectively, and 30.1% and 6.9% as of March 31, 2023, respectively. |
Indebtedness
Indebtedness | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness Our outstanding indebtedness as of March 31, 2024 is summarized below: Number of Properties Principal Interest Carrying Value Entity Secured By Balance Rate (1) Type Maturity of Collateral ILPT 104 $ 1,235,000 6.18% Floating 10/09/2024 $ 1,036,749 ILPT 186 650,000 4.31% Fixed 02/07/2029 490,619 ILPT 17 700,000 4.42% Fixed 03/09/2032 501,338 Mountain JV 82 1,400,000 5.81% Floating 03/09/2025 1,843,036 Mountain JV 4 91,000 6.25% Fixed 06/10/2030 181,935 Mountain JV 1 11,045 3.67% Fixed 05/01/2031 28,769 Mountain JV 1 12,601 4.14% Fixed 07/01/2032 43,193 Mountain JV 1 28,026 4.02% Fixed 10/01/2033 84,206 Mountain JV 1 39,198 4.13% Fixed 11/01/2033 129,302 Mountain JV 1 23,989 3.10% Fixed 06/01/2035 46,063 Mountain JV 1 38,730 2.95% Fixed 01/01/2036 98,411 Mountain JV 1 43,269 4.27% Fixed 11/01/2037 109,573 Mountain JV 1 48,620 3.25% Fixed 01/01/2038 112,694 Total/weighted average 4,321,478 5.35% $ 4,705,888 Unamortized debt issuance costs (13,479) Total indebtedness, net $ 4,307,999 (1) Interest rates reflect the impact of interest rate caps, if any, and exclude the impact of the amortization of debt issuance costs, premiums and discounts. Our outstanding indebtedness as of December 31, 2023 is summarized below: Number of Properties Principal Interest Carrying Value Entity Secured By Balance Rate (1) Type Maturity of Collateral ILPT 104 $ 1,235,000 6.18% Floating 10/09/2024 $ 1,044,028 ILPT 186 650,000 4.31% Fixed 02/07/2029 490,149 ILPT 17 700,000 4.42% Fixed 03/09/2032 505,153 Mountain JV 82 1,400,000 6.17% Floating 03/09/2024 1,857,062 Mountain JV 4 91,000 6.25% Fixed 06/10/2030 183,264 Mountain JV 1 11,380 3.67% Fixed 05/01/2031 28,932 Mountain JV 1 12,916 4.14% Fixed 07/01/2032 43,510 Mountain JV 1 28,622 4.02% Fixed 10/01/2033 84,793 Mountain JV 1 40,019 4.13% Fixed 11/01/2033 129,749 Mountain JV 1 24,433 3.10% Fixed 06/01/2035 46,394 Mountain JV 1 39,411 2.95% Fixed 01/01/2036 99,108 Mountain JV 1 43,850 4.27% Fixed 11/01/2037 110,097 Mountain JV 1 49,313 3.25% Fixed 01/01/2038 113,477 Total/weighted average 4,325,944 5.47% $ 4,735,716 Unamortized debt issuance costs (20,003) Total indebtedness, net $ 4,305,941 (1) Interest rates reflect the impact of interest rate caps, if any, and exclude the impact of the amortization of debt issuance costs, premiums and discounts. Our $1,235,000 loan, or the ILPT Floating Rate Loan, which is secured by 104 of our properties, matures in October 2024, subject to three, one year extension options, and requires that interest be paid at an annual rate of secured overnight financing rate, or SOFR, plus a weighted average premium of 3.93%. The weighted average interest rate under the ILPT Floating Rate Loan was 6.18%, including the impact of our interest rate cap on SOFR of 2.25%, as of March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023. Subject to the satisfaction of certain conditions, we have the option to prepay the ILPT Floating Rate Loan in full or in part at any time at par with no premium. Our consolidated joint venture’s $1,400,000 loan, or the Mountain Floating Rate Loan, was scheduled to mature in March 2024, subject to three, one year extension options, and required that interest be paid at an annual rate of SOFR plus a premium of 2.77%. In March 2024, our consolidated joint venture exercised the first of its three, one year options to extend the maturity date of this loan. As part of the extension, our consolidated joint venture purchased a one year interest rate cap for $26,175 with a SOFR strike rate equal to 3.04%, which replaced the previous interest rate cap with a SOFR strike rate equal to 3.40%. As of March 31, 2024 and December 31, 2023, the interest rate under the Mountain Floating Rate Loan was 5.81% and 6.17%, respectively. The weighted average interest rate under the Mountain Floating Rate Loan was 6.09% and 6.17% for the three months ended March 31, 2024 and 2023, respectively, including the impact of our interest rate caps. Subject to the satisfaction of certain conditions, we have the option to prepay up to $280,000 of the Mountain Floating Rate Loan at par with no premium, and to prepay the balance of the Mountain Floating Rate Loan at any time, subject to a premium. The agreements governing certain of our indebtedness contain customary covenants and provide for acceleration of payment of all amounts due thereunder upon the occurrence and continuation of certain events of default. See Note 10 for further information regarding our interest rate caps. The required principal payments due during the next five years and thereafter under all our outstanding debt as of March 31, 2024 are as follows: Principal Payment 2024 $ 1,248,648 2025 1,418,794 2026 19,495 2027 20,229 2028 20,989 Thereafter 1,593,323 $ 4,321,478 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
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 and cash equivalents, mortgages and notes payable, accounts payable and interest rate caps. As of March 31, 2024 and December 31, 2023, 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 for our fixed rate mortgage notes payable. Our fixed rate mortgage notes payable had an aggregate carrying value of $1,678,351 and $1,682,501 as of March 31, 2024 and December 31, 2023, respectively, and a fair value of $1,531,780 and $1,553,863 as of March 31, 2024 and December 31, 2023, respectively. We estimate the fair value of our fixed rate mortgage notes payable using significant unobservable inputs (Level 3), including discounted cash flow analyses and prevailing market interest rates. The table below presents certain of our assets measured on a recurring basis at fair value as of March 31, 2024 and December 31, 2023, categorized by the level of inputs as defined in the fair value hierarchy under ASC 820, Fair Value Measurement , used in the valuation of each asset: Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) As of March 31, 2024 Investment in unconsolidated joint venture $ 116,093 $ — $ — $ 116,093 Interest rate caps $ 44,700 $ — $ 44,700 $ — As of December 31, 2023 Investment in unconsolidated joint venture $ 115,360 $ — $ — $ 115,360 Interest rate caps $ 30,576 $ — $ 30,576 $ — The fair value of our investment in the unconsolidated joint venture is determined by applying our ownership percentage to the net asset value of the entity. The net asset value of the unconsolidated joint venture is determined by using similar estimation techniques as those used for consolidated real estate properties, including discounting expected future cash flows of the underlying real estate investments based on prevailing market rents over a holding period and including an exit capitalization rate to determine the final year of cash flows. The fair values of our interest rate cap derivatives are based on prevailing market prices in secondary markets for similar derivative contracts as of the measurement date. The discount rates, exit capitalization rates and holding periods used to determine the fair value of our investment in the unconsolidated joint venture are Level 3 significant unobservable inputs and are shown in the table below: Exit Valuation Discount Capitalization Holding Technique Rates Rates Periods As of March 31, 2024 Investment in unconsolidated joint venture Discounted cash flow 5.75% - 8.00% 5.25% - 6.50% 10 - 12 years As of December 31, 2023 Investment in unconsolidated joint venture Discounted cash flow 5.75% - 8.00% 5.25% - 6.50% 9 - 12 years The table below presents a summary of the changes in fair value for our investment in the unconsolidated joint venture: Three Months Ended March 31, 2024 2023 Beginning balance $ 115,360 $ 124,358 Equity in earnings of unconsolidated joint venture 1,723 3,961 Distributions from unconsolidated joint venture (990) (990) Ending balance $ 116,093 $ 127,329 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Common Share Purchases During the three months ended March 31, 2024, we purchased an aggregate of 11,857 of our common shares, valued at a weighted average price of $4.12 per common share, from certain former employees of The RMR Group LLC, or RMR, in satisfaction of tax withholding and payment obligations in connection with the vesting of awards of our common shares. We withheld and purchased these common shares at their fair market values based upon the trading prices of our common shares at the close of trading on The Nasdaq Stock Market LLC, or Nasdaq, on the applicable purchase dates. Distributions During the three months ended March 31, 2024, we declared and paid a regular quarterly distribution to common shareholders as follows: Distribution Total Declaration Date Record Date Payment Date Per Share Distribution January 11, 2024 January 22, 2024 February 15, 2024 $ 0.01 $ 658 On April 11, 2024, we declared a regular quarterly distribution to common shareholders of record on April 22, 2024 of $0.01 per share, or approximately $658. We expect to pay this distribution to our shareholders on or about May 16, 2024 using cash on hand. |
Business and Property Managemen
Business and Property Management Agreements with RMR | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Business and Property Management Agreements with RMR | Business and Property Management Agreements with RMR We have no employees. The personnel and various services we require to operate our business are provided to us by RMR. We have two agreements with RMR 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, we recognized business management fees of $5,830 and $5,726 for the three months ended March 31, 2024 and 2023, respectively. Based on our common share total return, as defined in our business management agreement, as of March 31, 2024 and 2023, no incentive fees are included in the business management fees we recognized for the three months ended March 31, 2024 or 2023. The actual amount of annual incentive fees for 2024, if any, will be based on our common share total return, as defined in our business management agreement, for the three year period ending December 31, 2024, and will be payable in January 2025. We did not incur any incentive fee payable to RMR for the year ended December 31, 2023. We include business management fees in general and administrative expenses in our condensed consolidated statements of comprehensive income (loss). Pursuant to our property management agreement with RMR, we recognized aggregate property management and construction supervision fees of $3,403 and $3,452 for the three months ended March 31, 2024 and 2023, respectively. Of these amounts, for the three months ended March 31, 2024 and 2023, $3,330 and $3,319, respectively, were included in other operating expenses in our condensed consolidated statements of comprehensive income (loss) and $73 and $133, respectively, were capitalized as building improvements in our condensed consolidated balance sheets. The amounts capitalized are being depreciated over the estimated useful lives of the related capital assets. We are generally responsible for all of our operating expenses, including certain expenses incurred or arranged by RMR on our behalf. We are generally not responsible for payment of RMR’s employment, office or administrative expenses incurred to provide management services to us, except for the employment and related expenses of RMR’s employees assigned to work exclusively or partly at our properties, our share of the wages, benefits and other related costs of RMR’s centralized accounting personnel, our share of RMR’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. We reimbursed RMR $1,687 and $1,841 for these expenses and costs for the three months ended March 31, 2024 and 2023, respectively. These amounts are included in other operating expenses and general and administrative expenses, as applicable, in our condensed consolidated statements of comprehensive income (loss). Management Agreements Between Our Joint Ventures and RMR. We have two separate joint venture arrangements, our consolidated joint venture and the unconsolidated joint venture. RMR provides management services to both of these joint ventures. We are not obligated to pay management fees to RMR under our management agreements with RMR for the services it provides to the unconsolidated joint venture. We are obligated to pay management fees to RMR under our management agreements with RMR for the services it provides to our consolidated joint venture; however, our consolidated joint venture pays management fees directly to RMR, and any such fees paid by our consolidated joint venture are credited against the fees payable by us to RMR. See Note 9 for further information regarding our relationships, agreements and transactions with RMR. |
Related Person Transactions
Related Person Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Person Transactions | Related Person Transactions We have relationships and historical and continuing transactions with RMR, The RMR Group Inc., or RMR Inc., and others related to them, including other companies to which RMR or its subsidiaries provide management services and some of which have trustees, directors or officers who are also our Trustees or officers. RMR is a majority owned subsidiary of RMR Inc. The Chair of our Board of Trustees and one of our Managing Trustees, Adam D. Portnoy, is the sole trustee, an officer and the controlling shareholder of ABP Trust, which is the controlling shareholder of RMR Inc., the chair of the board of directors, a managing director and the president and chief executive officer of RMR Inc. and an officer and employee of RMR. Matthew P. Jordan, our other Managing Trustee, is an executive vice president and the chief financial officer and treasurer of RMR Inc., an officer and employee of RMR and an officer of ABP Trust. Each of our officers is also an officer and employee of RMR. Some of our Independent Trustees also serve as independent trustees of other public companies to which RMR or its subsidiaries provide management services. Mr. Portnoy serves as chair of the boards and as a managing trustee of these public companies. Yael Duffy, our President and Chief Operating Officer, is also the president and chief operating officer of Office Properties Income Trust, one of the public companies managed by RMR. Other officers of RMR, including Mr. Jordan, serve as managing trustees or officers of certain of these public companies. Our Manager, RMR . We have two agreements with RMR to provide management services to us. See Note 8 for further information regarding our management agreements with RMR. Joint Ventures. We have two separate joint venture arrangements. RMR provides management services to each of these joint ventures. See Note 3 for further information regarding our joint ventures. As of March 31, 2024 and December 31, 2023, we owed $652 and $680, respectively, to the unconsolidated joint venture for rents that we collected on behalf of that joint venture. These amounts are presented as due to related persons in our condensed consolidated balance sheets. For further information about these and other such relationships and certain other related person transactions, see our 2023 Annual Report. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities We are exposed to certain risks relating to our ongoing business operations, including the impact of changes in interest rates. The only risk currently managed by us using derivative instruments is our interest rate risk. We have interest rate cap agreements to manage our interest rate risk exposure on each of the ILPT Floating Rate Loan and the Mountain Floating Rate Loan, both with interest payable at a rate equal to SOFR plus a premium. The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, we only enter into derivative financial instruments with counterparties with high credit ratings and with major financial institutions with which we or our related parties may also have other financial relationships. We do not anticipate that any of the counterparties will fail to meet their obligations. Our interest rate cap agreements are designated as cash flow hedges of interest rate risk and are measured on a recurring basis at fair value. See Notes 5 and 6 for further information regarding the debt our interest rate caps are related to and the fair value of our interest rate caps. The following table summarizes the terms of our outstanding interest rate cap agreements as of March 31, 2024 and December 31, 2023: Balance Sheet Underlying Current Strike Notional Fair Value at Line Item Instrument Maturity Rate Amount March 31, 2024 December 31, 2023 Other assets Mountain Floating Rate Loan 03/15/2024 3.40% $ 1,400,000 $ — $ 5,516 Other assets Mountain Floating Rate Loan 03/15/2025 3.04% $ 1,400,000 25,345 — Other assets ILPT Floating Rate Loan 10/15/2024 2.25% $ 1,235,000 19,355 25,060 $ 44,700 $ 30,576 Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. For derivatives designated and qualifying as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in cumulative other comprehensive income and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized over the life of the hedge on a systematic and rational basis, as documented at hedge inception in accordance with our accounting policy election. The earnings recognition of excluded components is presented in interest expense. Amounts reported in cumulative other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our applicable debt. The following table summarizes the activity related to our cash flow hedges within cumulative other comprehensive income for the periods shown: Three Months Ended March 31, 2024 2023 Unrealized gain (loss) on derivatives recognized in cumulative other comprehensive income $ 4,674 $ (3,776) Realized gain on derivatives reclassified from cumulative other comprehensive income into interest expense (9,520) (5,002) Unrealized loss on derivatives recognized in cumulative other comprehensive income $ (4,846) $ (8,778) |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | The accompanying condensed consolidated financial statements of Industrial Logistics Properties Trust and its consolidated subsidiaries, or the Company, ILPT, 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, 2023, or our 2023 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. |
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 and assessment of impairment of real estate and related intangibles. |
New Accounting Pronouncements | New Accounting Pronouncements. In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update, or ASU, 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities, including those with a single reportable segment, to: (i) provide disclosures of significant segment expenses and other segment items if they are regularly provided to the chief operating decision maker, or the CODM, and included in each reported measure of segment profit or loss; (ii) provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by Accounting Standards Codification, or ASC, 280, Segment Reporting , in interim periods; and (iii) disclose the CODM’s title and position, as well as an explanation of how the CODM uses the reported measures and other disclosures. ASU 2023-07 does not change how a public entity identifies its operating segments, aggregates those operating segments or applies the quantitative thresholds to determine its reportable segments. ASU 2023-07 is required to be applied retrospectively and is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact ASU 2023-07 will have on our condensed consolidated financial statements. |
Indebtedness (Tables)
Indebtedness (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Indebtedness | Our outstanding indebtedness as of March 31, 2024 is summarized below: Number of Properties Principal Interest Carrying Value Entity Secured By Balance Rate (1) Type Maturity of Collateral ILPT 104 $ 1,235,000 6.18% Floating 10/09/2024 $ 1,036,749 ILPT 186 650,000 4.31% Fixed 02/07/2029 490,619 ILPT 17 700,000 4.42% Fixed 03/09/2032 501,338 Mountain JV 82 1,400,000 5.81% Floating 03/09/2025 1,843,036 Mountain JV 4 91,000 6.25% Fixed 06/10/2030 181,935 Mountain JV 1 11,045 3.67% Fixed 05/01/2031 28,769 Mountain JV 1 12,601 4.14% Fixed 07/01/2032 43,193 Mountain JV 1 28,026 4.02% Fixed 10/01/2033 84,206 Mountain JV 1 39,198 4.13% Fixed 11/01/2033 129,302 Mountain JV 1 23,989 3.10% Fixed 06/01/2035 46,063 Mountain JV 1 38,730 2.95% Fixed 01/01/2036 98,411 Mountain JV 1 43,269 4.27% Fixed 11/01/2037 109,573 Mountain JV 1 48,620 3.25% Fixed 01/01/2038 112,694 Total/weighted average 4,321,478 5.35% $ 4,705,888 Unamortized debt issuance costs (13,479) Total indebtedness, net $ 4,307,999 (1) Interest rates reflect the impact of interest rate caps, if any, and exclude the impact of the amortization of debt issuance costs, premiums and discounts. Our outstanding indebtedness as of December 31, 2023 is summarized below: Number of Properties Principal Interest Carrying Value Entity Secured By Balance Rate (1) Type Maturity of Collateral ILPT 104 $ 1,235,000 6.18% Floating 10/09/2024 $ 1,044,028 ILPT 186 650,000 4.31% Fixed 02/07/2029 490,149 ILPT 17 700,000 4.42% Fixed 03/09/2032 505,153 Mountain JV 82 1,400,000 6.17% Floating 03/09/2024 1,857,062 Mountain JV 4 91,000 6.25% Fixed 06/10/2030 183,264 Mountain JV 1 11,380 3.67% Fixed 05/01/2031 28,932 Mountain JV 1 12,916 4.14% Fixed 07/01/2032 43,510 Mountain JV 1 28,622 4.02% Fixed 10/01/2033 84,793 Mountain JV 1 40,019 4.13% Fixed 11/01/2033 129,749 Mountain JV 1 24,433 3.10% Fixed 06/01/2035 46,394 Mountain JV 1 39,411 2.95% Fixed 01/01/2036 99,108 Mountain JV 1 43,850 4.27% Fixed 11/01/2037 110,097 Mountain JV 1 49,313 3.25% Fixed 01/01/2038 113,477 Total/weighted average 4,325,944 5.47% $ 4,735,716 Unamortized debt issuance costs (20,003) Total indebtedness, net $ 4,305,941 (1) Interest rates reflect the impact of interest rate caps, if any, and exclude the impact of the amortization of debt issuance costs, premiums and discounts. |
Schedule of the Principal Payments Due Under the Outstanding Debt | The required principal payments due during the next five years and thereafter under all our outstanding debt as of March 31, 2024 are as follows: Principal Payment 2024 $ 1,248,648 2025 1,418,794 2026 19,495 2027 20,229 2028 20,989 Thereafter 1,593,323 $ 4,321,478 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements, Recurring and Nonrecurring | The table below presents certain of our assets measured on a recurring basis at fair value as of March 31, 2024 and December 31, 2023, categorized by the level of inputs as defined in the fair value hierarchy under ASC 820, Fair Value Measurement , used in the valuation of each asset: Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) As of March 31, 2024 Investment in unconsolidated joint venture $ 116,093 $ — $ — $ 116,093 Interest rate caps $ 44,700 $ — $ 44,700 $ — As of December 31, 2023 Investment in unconsolidated joint venture $ 115,360 $ — $ — $ 115,360 Interest rate caps $ 30,576 $ — $ 30,576 $ — |
Schedule of Quantitative Information of Significant Unobservable Inputs Related to Certain Level 3 Fair Value Measurements | The discount rates, exit capitalization rates and holding periods used to determine the fair value of our investment in the unconsolidated joint venture are Level 3 significant unobservable inputs and are shown in the table below: Exit Valuation Discount Capitalization Holding Technique Rates Rates Periods As of March 31, 2024 Investment in unconsolidated joint venture Discounted cash flow 5.75% - 8.00% 5.25% - 6.50% 10 - 12 years As of December 31, 2023 Investment in unconsolidated joint venture Discounted cash flow 5.75% - 8.00% 5.25% - 6.50% 9 - 12 years |
Schedule of the Change in Fair Value of the Investment in the Unconsolidated Joint Venture | The table below presents a summary of the changes in fair value for our investment in the unconsolidated joint venture: Three Months Ended March 31, 2024 2023 Beginning balance $ 115,360 $ 124,358 Equity in earnings of unconsolidated joint venture 1,723 3,961 Distributions from unconsolidated joint venture (990) (990) Ending balance $ 116,093 $ 127,329 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Distributions Declared and Paid | During the three months ended March 31, 2024, we declared and paid a regular quarterly distribution to common shareholders as follows: Distribution Total Declaration Date Record Date Payment Date Per Share Distribution January 11, 2024 January 22, 2024 February 15, 2024 $ 0.01 $ 658 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Swap Derivatives | The following table summarizes the terms of our outstanding interest rate cap agreements as of March 31, 2024 and December 31, 2023: Balance Sheet Underlying Current Strike Notional Fair Value at Line Item Instrument Maturity Rate Amount March 31, 2024 December 31, 2023 Other assets Mountain Floating Rate Loan 03/15/2024 3.40% $ 1,400,000 $ — $ 5,516 Other assets Mountain Floating Rate Loan 03/15/2025 3.04% $ 1,400,000 25,345 — Other assets ILPT Floating Rate Loan 10/15/2024 2.25% $ 1,235,000 19,355 25,060 $ 44,700 $ 30,576 |
Schedule of Effects on Consolidated Statements of Income and Comprehensive Income | The following table summarizes the activity related to our cash flow hedges within cumulative other comprehensive income for the periods shown: Three Months Ended March 31, 2024 2023 Unrealized gain (loss) on derivatives recognized in cumulative other comprehensive income $ 4,674 $ (3,776) Realized gain on derivatives reclassified from cumulative other comprehensive income into interest expense (9,520) (5,002) Unrealized loss on derivatives recognized in cumulative other comprehensive income $ (4,846) $ (8,778) |
Real Estate Investments (Detail
Real Estate Investments (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) ft² property state segment building | Mar. 31, 2023 USD ($) | |
Real Estate Properties [Line Items] | ||
Number of properties owned | property | 411 | |
Rentable square feet (in sqft) | ft² | 59,893 | |
Number of business segments | segment | 1 | |
Capital expenditures incurred | $ 3,373 | $ 4,931 |
Leasing cost incurred | 2,127 | 1,562 |
Commitments related to tenant improvements and leasing costs | $ 3,471 | |
Tenant improvements (in sqft) | ft² | 1,981 | |
Committed but unspent tenant related obligations | $ 5,981 | |
Net income (loss) attributable to noncontrolling interest | (10,499) | (10,737) |
Cash distributions | 163 | 0 |
Unrelated Third Party | ||
Real Estate Properties [Line Items] | ||
Tenancy in common, total assets | 10,877 | |
Tenancy in common, total liabilities | $ 60 | |
Twelve Mainland Properties | ||
Real Estate Properties [Line Items] | ||
Rentable square feet (in sqft) | ft² | 11,726 | |
Number of states where real estate is located | state | 12 | |
Ownership interest (as percent) | 22% | |
Number of properties contributed | property | 18 | |
Mountain Industrial REIT LLC | ||
Real Estate Properties [Line Items] | ||
Net income (loss) attributable to noncontrolling interest | $ (10,514) | (10,728) |
Mountain Industrial REIT LLC | Other Joint Venture Investor | ||
Real Estate Properties [Line Items] | ||
Joint venture, total assets | 2,991,343 | |
Joint venture, liabilities | 1,771,327 | |
Tenancy in Common | Unrelated Third Party | ||
Real Estate Properties [Line Items] | ||
Cash distributions | $ 163 | |
Consolidated Entity, Excluding Consolidated VIE | Mountain Industrial REIT LLC | ||
Real Estate Properties [Line Items] | ||
Number of properties owned | property | 94 | |
Rentable square feet (in sqft) | ft² | 20,981 | |
Number of states where real estate is located | state | 27 | |
Ownership interest (as percent) | 61% | |
Joint Venture | The Industrial Fund REIT LLC | ||
Real Estate Properties [Line Items] | ||
Ownership interest (as percent) | 22% | |
Hawaii | ||
Real Estate Properties [Line Items] | ||
Rentable square feet (in sqft) | ft² | 16,729 | |
Number of states where real estate is located | state | 39 | |
Number of buildings, leasable land parcels easements | building | 226 | |
Other States | ||
Real Estate Properties [Line Items] | ||
Number of properties owned | property | 185 | |
Rentable square feet (in sqft) | ft² | 43,164 | |
Number of states where real estate is located | state | 38 | |
Somerset, New Jersey | Tenancy in Common | Unrelated Third Party | ||
Real Estate Properties [Line Items] | ||
Rentable square feet (in sqft) | ft² | 64 | |
Ownership interest (as percent) | 67% | |
Net income (loss) attributable to noncontrolling interest | $ 15 | $ (9) |
Number of properties | property | 1 | |
Somerset, New Jersey | Tenancy in Common | Unrelated Third Party | ||
Real Estate Properties [Line Items] | ||
Noncontrolling interest, ownership percentage by noncontrolling owners | 33% |
Leases (Details)
Leases (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) property | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Lessor, Lease, Description [Line Items] | |||
Certain variable payments | $ 21,175 | $ 21,099 | |
Number of properties subject to ground leases | property | 3 | ||
Lessee, number of properties under an operating lease | property | 1 | ||
Right-of-use asset | $ 4,534 | $ 4,646 | |
Operating lease liability | $ 4,621 | $ 4,730 | |
Amazon.com, Inc | |||
Lessor, Lease, Description [Line Items] | |||
Percentage of rentable square feet | 28.90% | 30.10% | |
FedEx Corporation | |||
Lessor, Lease, Description [Line Items] | |||
Percentage of rentable square feet | 6.70% | 6.90% | |
Sales Revenue, Net | Geographic Concentration Risk | Hawaii | |||
Lessor, Lease, Description [Line Items] | |||
Concentration risk | 28% | 27.40% |
Indebtedness - Schedule of Outs
Indebtedness - Schedule of Outstanding Indebtedness (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 USD ($) property | Dec. 31, 2023 USD ($) property | |
Debt Instrument [Line Items] | ||
Total principal balance | $ 4,321,478 | $ 4,325,944 |
Interest rate (as a percent) | 5.35% | 5.47% |
Carrying Value of Collateral | $ 4,705,888 | $ 4,735,716 |
Unamortized debt issuance costs | (13,479) | (20,003) |
Total indebtedness, net | $ 4,307,999 | $ 4,305,941 |
Mountain Floating Rate Loan | Floating Rate Loan, 6.18%, due in 2024 | ||
Debt Instrument [Line Items] | ||
Number of properties used as collateral | property | 104 | 104 |
Total principal balance | $ 1,235,000 | $ 1,235,000 |
Interest rate (as a percent) | 6.18% | 6.18% |
Carrying Value of Collateral | $ 1,036,749 | $ 1,044,028 |
Mountain Floating Rate Loan | Floating Rate Loan, 6.17%, due in 2024 | ||
Debt Instrument [Line Items] | ||
Number of properties used as collateral | property | 82 | 82 |
Total principal balance | $ 1,400,000 | $ 1,400,000 |
Interest rate (as a percent) | 5.81% | 6.17% |
Carrying Value of Collateral | $ 1,843,036 | $ 1,857,062 |
Total indebtedness, net | $ 1,400,000 | |
Fixed Rate Loan | Fixed Rate Loan, 4.31%, due in 2029 | ||
Debt Instrument [Line Items] | ||
Number of properties used as collateral | property | 186 | 186 |
Total principal balance | $ 650,000 | $ 650,000 |
Interest rate (as a percent) | 4.31% | 4.31% |
Carrying Value of Collateral | $ 490,619 | $ 490,149 |
Fixed Rate Loan | Fixed Rate Loan, 4.42%, due in 2032 | ||
Debt Instrument [Line Items] | ||
Number of properties used as collateral | property | 17 | 17 |
Total principal balance | $ 700,000 | $ 700,000 |
Interest rate (as a percent) | 4.42% | 4.42% |
Carrying Value of Collateral | $ 501,338 | $ 505,153 |
Fixed Rate Loan | Fixed rate loan, 6.25% due in 2030 | ||
Debt Instrument [Line Items] | ||
Number of properties used as collateral | property | 4 | 4 |
Total principal balance | $ 91,000 | $ 91,000 |
Interest rate (as a percent) | 6.25% | 6.25% |
Carrying Value of Collateral | $ 181,935 | $ 183,264 |
Fixed Rate Loan | Fixed rate loan, 3.67% Due 2031 | ||
Debt Instrument [Line Items] | ||
Number of properties used as collateral | property | 1 | 1 |
Total principal balance | $ 11,045 | $ 11,380 |
Interest rate (as a percent) | 3.67% | 3.67% |
Carrying Value of Collateral | $ 28,769 | $ 28,932 |
Fixed Rate Loan | Fixed Rate Loan, 4.14%, due in 2032 | ||
Debt Instrument [Line Items] | ||
Number of properties used as collateral | property | 1 | 1 |
Total principal balance | $ 12,601 | $ 12,916 |
Interest rate (as a percent) | 4.14% | 4.14% |
Carrying Value of Collateral | $ 43,193 | $ 43,510 |
Fixed Rate Loan | Fixed rate loan, 4.02% Due 2033 | ||
Debt Instrument [Line Items] | ||
Number of properties used as collateral | property | 1 | 1 |
Total principal balance | $ 28,026 | $ 28,622 |
Interest rate (as a percent) | 4.02% | 4.02% |
Carrying Value of Collateral | $ 84,206 | $ 84,793 |
Fixed Rate Loan | Fixed rate loan, 4.13% Due 2033 | ||
Debt Instrument [Line Items] | ||
Number of properties used as collateral | property | 1 | 1 |
Total principal balance | $ 39,198 | $ 40,019 |
Interest rate (as a percent) | 4.13% | 4.13% |
Carrying Value of Collateral | $ 129,302 | $ 129,749 |
Fixed Rate Loan | Fixed rate loan, 3.10% Due 2035 | ||
Debt Instrument [Line Items] | ||
Number of properties used as collateral | property | 1 | 1 |
Total principal balance | $ 23,989 | $ 24,433 |
Interest rate (as a percent) | 3.10% | 3.10% |
Carrying Value of Collateral | $ 46,063 | $ 46,394 |
Fixed Rate Loan | Fixed rate loan, 2.95% Due 2036 | ||
Debt Instrument [Line Items] | ||
Number of properties used as collateral | property | 1 | 1 |
Total principal balance | $ 38,730 | $ 39,411 |
Interest rate (as a percent) | 2.95% | 2.95% |
Carrying Value of Collateral | $ 98,411 | $ 99,108 |
Fixed Rate Loan | Fixed rate loan, 4.27% Due 2037 | ||
Debt Instrument [Line Items] | ||
Number of properties used as collateral | property | 1 | 1 |
Total principal balance | $ 43,269 | $ 43,850 |
Interest rate (as a percent) | 4.27% | 4.27% |
Carrying Value of Collateral | $ 109,573 | $ 110,097 |
Fixed Rate Loan | Fixed rate loan, 3.25% Due 2038 | ||
Debt Instrument [Line Items] | ||
Number of properties used as collateral | property | 1 | 1 |
Total principal balance | $ 48,620 | $ 49,313 |
Interest rate (as a percent) | 3.25% | 3.25% |
Carrying Value of Collateral | $ 112,694 | $ 113,477 |
Indebtedness - Narrative (Detai
Indebtedness - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 USD ($) property option | Mar. 31, 2023 | Dec. 31, 2023 USD ($) property | Feb. 29, 2024 | |
Debt Instrument [Line Items] | ||||
Debt outstanding | $ 4,307,999 | $ 4,305,941 | ||
Interest rate (as a percent) | 5.35% | 5.47% | ||
Floating Rate Loan, 6.18%, due in 2024 | ILPT Floating Rate Loan | ||||
Debt Instrument [Line Items] | ||||
Debt outstanding | $ 1,235,000 | |||
Number of properties used as collateral | property | 104 | |||
Number of options to extend maturity date | option | 3 | |||
Extension period | 1 year | |||
Weighted average interest rate (as a percent) | 6.18% | 6.18% | ||
Floating Rate Loan, 6.18%, due in 2024 | ILPT Floating Rate Loan | Secured Overnight Financing Rate (SOFR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 3.93% | |||
Floating Rate Loan, 6.18%, due in 2024 | ILPT Floating Rate Loan | Secured Overnight Financing Rate (SOFR) | Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument | ||||
Debt Instrument [Line Items] | ||||
Derivative, interest rate cap (as a percent) | 2.25% | |||
Floating Rate Loan, 6.18%, due in 2024 | ILPT Floating Rate Loan | Secured Overnight Financing Rate (SOFR) | Interest Rate Cap | Cash Flow Hedging | Designated as Hedging Instrument | ||||
Debt Instrument [Line Items] | ||||
Derivative, interest rate cap (as a percent) | 2.25% | 2.25% | ||
Floating Rate Loan, 6.18%, due in 2024 | Mountain Floating Rate Loan | ||||
Debt Instrument [Line Items] | ||||
Number of properties used as collateral | property | 104 | 104 | ||
Interest rate (as a percent) | 6.18% | 6.18% | ||
Floating Rate Loan, 6.17%, due in 2024 | Secured Overnight Financing Rate (SOFR) | Interest Rate Cap | Cash Flow Hedging | Designated as Hedging Instrument | ||||
Debt Instrument [Line Items] | ||||
Derivative, interest rate cap (as a percent) | 3.04% | 3.40% | ||
Floating Rate Loan, 6.17%, due in 2024 | Mountain Floating Rate Loan | ||||
Debt Instrument [Line Items] | ||||
Debt outstanding | $ 1,400,000 | |||
Number of properties used as collateral | property | 82 | 82 | ||
Number of options to extend maturity date | option | 3 | |||
Extension period | 1 year | |||
Weighted average interest rate (as a percent) | 6.09% | 6.17% | ||
Interest rate (as a percent) | 5.81% | 6.17% | ||
Prepayment terms without premium amount | $ 280,000 | |||
Floating Rate Loan, 6.17%, due in 2024 | Mountain Floating Rate Loan | Joint Venture | ||||
Debt Instrument [Line Items] | ||||
Number of options to extend maturity date | option | 3 | |||
Extension period | 1 year | |||
Floating Rate Loan, 6.17%, due in 2024 | Mountain Floating Rate Loan | Interest Rate Cap | Cash Flow Hedging | Designated as Hedging Instrument | Joint Venture | ||||
Debt Instrument [Line Items] | ||||
Term of contract period | 1 year | |||
Notional amount | $ 26,175 | |||
Floating Rate Loan, 6.17%, due in 2024 | Mountain Floating Rate Loan | Secured Overnight Financing Rate (SOFR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 2.77% |
Indebtedness - Summary of Futur
Indebtedness - Summary of Future Indebtedness Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
2024 | $ 1,248,648 | |
2025 | 1,418,794 | |
2026 | 19,495 | |
2027 | 20,229 | |
2028 | 20,989 | |
Thereafter | 1,593,323 | |
Total principal balance | $ 4,321,478 | $ 4,325,944 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Carrying Amount | ||
Fair Value of Financial Instruments | ||
Notes payable | $ 1,678,351 | $ 1,682,501 |
Estimated Fair Value | ||
Fair Value of Financial Instruments | ||
Notes payable | $ 1,531,780 | $ 1,553,863 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Assets Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value of Financial Instruments | ||
Investment in unconsolidated joint venture | $ 116,093 | $ 115,360 |
Interest rate cap derivatives | 44,700 | 30,576 |
Fair Value, Inputs, Level 1 | ||
Fair Value of Financial Instruments | ||
Investment in unconsolidated joint venture | 0 | 0 |
Interest rate cap derivatives | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fair Value of Financial Instruments | ||
Investment in unconsolidated joint venture | 0 | 0 |
Interest rate cap derivatives | 44,700 | 30,576 |
Fair Value, Inputs, Level 3 | ||
Fair Value of Financial Instruments | ||
Investment in unconsolidated joint venture | 116,093 | 115,360 |
Interest rate cap derivatives | $ 0 | $ 0 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Fair Value Measurements Significant Unobservable Inputs Related to Certain Level 3 (Details) - Fair Value, Inputs, Level 3 | Mar. 31, 2024 | Dec. 31, 2023 |
Measurement Input, Discount Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment in unconsolidated joint venture | 0.0575 | 0.0575 |
Measurement Input, Discount Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment in unconsolidated joint venture | 0.0800 | 0.0800 |
Measurement Input, Exit Capitalization Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment in unconsolidated joint venture | 0.0525 | 0.0525 |
Measurement Input, Exit Capitalization Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment in unconsolidated joint venture | 0.0650 | 0.0650 |
Measurement Input, Holdings Periods | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment in unconsolidated joint venture, holding periods | 10 years | 9 years |
Measurement Input, Holdings Periods | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment in unconsolidated joint venture, holding periods | 12 years | 12 years |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Changes In Fair Value For Our Investment In Unconsolidated Joint Venture (Details) - Equity Method Investments - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 115,360 | $ 124,358 |
Equity in earnings of unconsolidated joint venture | 1,723 | 3,961 |
Distributions from unconsolidated joint venture | (990) | (990) |
Ending balance | $ 116,093 | $ 127,329 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 11, 2024 | Mar. 31, 2024 | |
Subsequent Event | ||
Shareholders' Equity | ||
Common distributions declared (in dollars per share) | $ 0.01 | |
Dividends payable | $ 658 | |
Common Stock | ||
Shareholders' Equity | ||
Share repurchases to pay for tax withholding (in shares) | 11,857 | |
Share price (in dollars per share) | $ 4.12 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Distributions Declared and Paid (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Feb. 15, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Equity [Abstract] | |||
Distribution per share (in dollars per share) | $ 0.01 | ||
Total distribution | $ 658 | $ 658 | $ 656 |
Business and Property Managem_2
Business and Property Management Agreements with RMR (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 USD ($) employee agreement | Mar. 31, 2023 USD ($) | Dec. 31, 2024 | Dec. 31, 2023 USD ($) | |
Related Party Transaction [Line Items] | ||||
Number of employees | employee | 0 | |||
Other operating expenses | $ 10,322,000 | $ 9,318,000 | ||
Property Management and Construction Supervision Fees | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, amount | 3,403,000 | 3,452,000 | ||
Capitalized Property Management and Construction Supervision Fees | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, amount | 73,000 | 133,000 | ||
Reimbursed Property Level Operating Expenses | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, amount | $ 1,687,000 | 1,841,000 | ||
Related Party | ||||
Related Party Transaction [Line Items] | ||||
Number of management service agreements | agreement | 2 | |||
Management fee expense | $ 5,830,000 | 5,726,000 | ||
Incentive fee expense | $ 0 | 0 | $ 0 | |
Number of joint venture agreements | agreement | 2 | |||
Related Party | Forecast | ||||
Related Party Transaction [Line Items] | ||||
Management service agreement term | 3 years | |||
Related Party | Reit Management And Research L L C | ||||
Related Party Transaction [Line Items] | ||||
Number of management service agreements | agreement | 2 | |||
Related Party | Expensed Property Management and Construction Supervision Fees | ||||
Related Party Transaction [Line Items] | ||||
Other operating expenses | $ 3,330,000 | $ 3,319,000 |
Related Person Transactions (De
Related Person Transactions (Details) $ in Thousands | Mar. 31, 2024 USD ($) agreement | Dec. 31, 2023 USD ($) |
Related Party | ||
Related Party Transaction [Line Items] | ||
Number of management service agreements | 2 | |
Number of joint venture agreements | 2 | |
Accounts payable and other liabilities | $ | $ 5,539 | $ 4,966 |
Joint Venture | ||
Related Party Transaction [Line Items] | ||
Number of joint venture agreements | 2 | |
Accounts payable and other liabilities | $ | $ 652 | $ 680 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Schedule of Interest Rate Cap Agreements (Details) - Interest Rate Cap - Cash Flow Hedging - Designated as Hedging Instrument - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value | $ 44,700,000 | $ 30,576,000 |
Mountain Floating Rate Loan | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Strike rate | 3.40% | |
Notional amount | $ 1,400,000,000 | |
Fair value | $ 0 | 5,516,000 |
Mountain Floating Rate Loan | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Strike rate | 3.04% | |
Notional amount | $ 1,400,000,000 | |
Fair value | $ 25,345,000 | 0 |
ILPT Floating Rate Loan | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Strike rate | 2.25% | |
Notional amount | $ 1,235,000,000 | |
Fair value | $ 19,355,000 | $ 25,060,000 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Schedule of Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized gain (loss) on derivatives recognized in cumulative other comprehensive income | $ 4,674 | $ (3,776) |
Unrealized loss on derivatives recognized in cumulative other comprehensive income | (4,846) | (8,778) |
Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized gain on derivatives reclassified from cumulative other comprehensive income into interest expense | $ (9,520) | $ (5,002) |