NEWTON, Mass.--(BUSINESS WIRE)--Industrial Logistics Properties Trust (Nasdaq: ILPT) today announced transactions to acquire two portfolios of industrial properties for an aggregate purchase price of $905.3 million, excluding acquisition related costs.
On February 14, 2019, ILPT agreed to acquire from an unrelated third party an eight-property portfolio located in the Indianapolis and Cincinnati market areas, with an aggregate of approximately 4.2 million square feet. The total purchase price of the portfolio was $280.0 million, excluding acquisition related costs, representing a GAAP capitalization rate of 6.0%. On February 14, 2019, ILPT closed on seven of the eight properties and the purchase of the remaining property remains subject to due diligence and is expected to close within 60 days. The eight properties are 100% leased to 10 tenants and have a weighted average (by revenue) remaining lease term of more than four years, a weighted average (by square feet) building age of 13 years and a weighted average (by square feet) clear height of 34 feet. Investment grade rated tenants, including leading e-commerce companies, account for approximately 59% of the annualized rental revenues from this portfolio.
Also on February 14, 2019, ILPT entered an agreement to acquire from affiliates of Cole Office & Industrial REIT (CCIT II), Inc. a portfolio of 18 properties located in 12 states with an aggregate of approximately 8.7 million square feet. The total purchase price of the portfolio is $625.3 million, excluding acquisition related costs, representing a GAAP capitalization rate of 6.4%. This acquisition is subject to customary closing conditions and is expected to close within 60 days. The 18 properties are 100% leased to 13 tenants and have a weighted average (by revenue) remaining lease term of more than nine years, a weighted average (by square feet) building age of nine years and a weighted average (by square feet) clear height of 33 feet. Investment grade rated tenants, including leading e-commerce companies, account for approximately 74% of the annualized rental revenues from this portfolio.
ILPT is funding these acquisitions with cash on hand from its recent $650 million mortgage financing and by drawing on its $750 million revolving credit facility.
“We have made great progress on our acquisition and portfolio optimization strategy in 2019,” said John Murray, ILPT’s President and Chief Executive Officer. “These transactions demonstrate ILPT’s commitment to executing on our business plan to grow our industrial asset base using low cost debt to enhance future earnings and create value for our shareholders. We have announced the acquisition of more than $1 billion of high quality properties since our IPO in January 2018, and we continue to be encouraged by the growth of e-commerce and logistics industries and the strength of the nationwide industrial market. When both of the transactions announced today are closed, Amazon and FedEx will be our two largest tenants accounting for 13.8% and 3.6%, respectively, of annualized rental revenue.”
Industrial Logistics Properties Trust is a real estate investment trust, or REIT, that owns and leases industrial and logistics properties throughout the United States. ILPT is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, MA.
WARNING REGARDING FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO, WHENEVER ILPT USES WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”, “INTEND”, “PLAN”, “ESTIMATE”, “WILL”, “MAY” AND NEGATIVES OR DERIVATIVES OF THESE OR SIMILAR EXPRESSIONS, ILPT IS MAKING FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON ILPT’S PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY ILPT’S FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. FOR EXAMPLE:
- THIS PRESS RELEASE STATES THAT THE ACQUISITION OF THE REMAINING PROPERTY IN THE EIGHT PROPERTY PORTFOLIO IS EXPECTED TO CLOSE WITHIN 60 DAYS AND THAT THE ACQUISITION OF THE PORTFOLIO OF 18 PROPERTIES IS EXPECTED TO CLOSE WITHIN 60 DAYS. HOWEVER, THESE TRANSACTIONS ARE SUBJECT TO CONDITIONS AND THEY MAY NOT OCCUR, THEY MAY BE DELAYED OR THEIR TERMS MAY CHANGE.
- ILPT’S PRESIDENT AND CHIEF EXECUTIVE OFFICER STATES IN THIS PRESS RELEASE THAT ILPT IS COMMITTED ON EXECUTING ITS BUSINESS PLAN TO GROW ITS INDUSTRIAL ASSET BASE USING LOW COST DEBT TO ENHANCE FUTURE EARNINGS AND CREATE VALUE FOR ITS SHAREHOLDERS. HOWEVER, ILPT MAY NOT SUCCEED IN EXECUTING ITS BUSINESS PLAN.
- ILPT’S PRESIDENT AND CHIEF EXECUTIVE OFFICER STATES IN THIS PRESS RELEASE THAT ILPT CONTINUES TO BE ENCOURAGED BY THE GROWTH OF E-COMMERCE AND LOGISTICS INDUSTRIES AND THE STRENGTH OF THE NATIONWIDE INDUSTRIAL MARKET. THIS MAY IMPLY THAT THESE TRENDS WILL CONTINUE. HOWEVER, E-COMMERCE RETAIL SALES MAY NOT CONTINUE TO GROW AND INCREASE THE DEMAND FOR INDUSTRIAL AND LOGISTICS PROPERTIES AS ILPT EXPECTS.
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A Maryland Real Estate Investment Trust with transferable shares of
beneficial interest listed on the Nasdaq.
No shareholder,
Trustee or officer is personally liable for any act or obligation of the
Trust.
