Industrial Logistics Properties Trust (ILPT) reported its financial results for the fiscal year ending December 31, 2024, revealing a net loss attributable to common shareholders of $95.7 million, or $1.46 per share, compared to a net loss of $108.0 million, or $1.65 per share, in the previous year. The company generated rental income of $442.3 million, reflecting a 1.1% increase from $437.3 million in 2023. This growth was attributed to leasing activity and increased tenant reimbursement income, particularly from higher real estate taxes at certain properties.
The company’s total operating expenses rose to $303.6 million, up from $308.6 million in 2023, primarily due to increased real estate taxes and other operating expenses. Notably, depreciation and amortization expenses decreased to $172.0 million from $178.7 million, reflecting the impact of certain acquired real estate leases fully amortizing. The company’s net operating income (NOI) for the year was $341.2 million, a slight increase from $339.1 million in the prior year.
ILPT's portfolio consisted of 411 properties with approximately 59.9 million rentable square feet across 39 states, achieving an occupancy rate of 94.4%. The company’s properties in Hawaii accounted for 28% of annualized rental revenues, while its Mainland Properties represented 72%. The company also reported a significant tenant concentration, with subsidiaries of FedEx and Amazon accounting for 22.6% and 8.0% of total annualized rental revenues, respectively.
In terms of strategic developments, ILPT completed the acquisition of Monmouth Real Estate Investment Corporation in February 2022, which added 124 e-commerce-focused industrial properties to its portfolio. The company continues to focus on extending or entering new leases as existing leases approach expiration, with a strategy aimed at increasing rents and cash flows from its current properties. However, the company faces challenges from economic uncertainties, including interest rate fluctuations and inflation, which could impact its financial performance and tenant obligations.
Looking ahead, ILPT anticipates that demand for industrial properties will remain strong due to ongoing customer service expectations and supply chain resiliency. However, the company acknowledges potential risks, including the ability to renew leases and the impact of market conditions on rental rates. The company’s management remains committed to maintaining its REIT status and meeting distribution requirements, although future distributions may remain at the current rate of $0.01 per share per quarter for an indefinite period.
About Industrial Logistics Properties Trust
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