Industrial Logistics Properties Trust Reports Q2 2025 Financial Results with Increased Rental Income and Net Loss Improvement

Industrial Logistics Properties Trust (ILPT) reported its financial results for the second quarter of 2025, revealing a rental income of $112.1 million, a slight increase from $110.6 million in the same period last year. For the first half of 2025, rental income totaled $224.0 million, up from $222.9 million in the prior year. Despite this increase in revenue, the company experienced a net loss of $30.4 million for the quarter, compared to a loss of $33.5 million in Q2 2024. The net loss attributable to common shareholders was $21.3 million, or $0.32 per share, an improvement from a loss of $23.2 million, or $0.35 per share, in the previous year.

The company’s total assets decreased to $5.24 billion as of June 30, 2025, down from $5.41 billion at the end of 2024. This decline was primarily due to a reduction in cash and cash equivalents, which fell to $58.6 million from $131.7 million. Total liabilities also decreased to $4.29 billion from $4.40 billion, largely attributed to a reduction in mortgage notes payable. The company repaid its ILPT Floating Rate Loan of $1.24 billion using proceeds from a new fixed-rate mortgage loan of $1.16 billion, which carries an interest rate of 6.40% and matures in July 2030.

Operationally, ILPT maintained a portfolio of 411 properties with approximately 59.9 million rentable square feet, achieving an occupancy rate of 94.3%. The company leased space to around 300 tenants, with FedEx and Amazon accounting for 28.8% and 6.7% of annualized rental revenues, respectively. The average effective rental rate increased to $7.94 per square foot for the second quarter, compared to $7.76 in the same quarter of 2024. The company also reported a significant increase in leasing activity, with new leases covering 44,127 square feet and renewals covering 127,171 square feet during the quarter.

Looking ahead, ILPT expressed optimism regarding the demand for industrial properties, driven by consumer expectations and the need for supply chain resiliency. However, the company acknowledged potential challenges posed by economic uncertainties, including interest rate fluctuations and geopolitical tensions. The management indicated that they would continue to focus on maintaining high occupancy rates and managing operating costs effectively. The company declared a quarterly distribution of $0.05 per share, expected to be paid in August 2025, reflecting its commitment to returning value to shareholders while navigating the current market conditions.