0001717307false--12-312024Q3xbrli:sharesiso4217:USDiso4217:USDxbrli:sharesilpt:propertyutr:sqftilpt:stateilpt:buildingxbrli:pureilpt:segmentilpt:optionilpt:mortgageilpt:trusteeilpt:employeeilpt:agreement00017173072024-01-012024-09-3000017173072024-10-2800017173072024-09-3000017173072023-12-310001717307us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001717307us-gaap:NonrelatedPartyMember2024-09-300001717307us-gaap:NonrelatedPartyMember2023-12-310001717307us-gaap:RelatedPartyMember2024-09-300001717307us-gaap:RelatedPartyMember2023-12-3100017173072024-07-012024-09-3000017173072023-07-012023-09-3000017173072023-01-012023-09-300001717307us-gaap:CommonStockMember2023-12-310001717307us-gaap:AdditionalPaidInCapitalMember2023-12-310001717307us-gaap:RetainedEarningsMember2023-12-310001717307us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001717307ilpt:CumulativeCommonDistributionsMember2023-12-310001717307us-gaap:ParentMember2023-12-310001717307us-gaap:NoncontrollingInterestMember2023-12-310001717307us-gaap:RetainedEarningsMember2024-01-012024-03-310001717307us-gaap:ParentMember2024-01-012024-03-310001717307us-gaap:NoncontrollingInterestMember2024-01-012024-03-3100017173072024-01-012024-03-310001717307us-gaap:CommonStockMember2024-01-012024-03-310001717307us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310001717307ilpt:CumulativeCommonDistributionsMember2024-01-012024-03-310001717307us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310001717307us-gaap:CommonStockMember2024-03-310001717307us-gaap:AdditionalPaidInCapitalMember2024-03-310001717307us-gaap:RetainedEarningsMember2024-03-310001717307us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310001717307ilpt:CumulativeCommonDistributionsMember2024-03-310001717307us-gaap:ParentMember2024-03-310001717307us-gaap:NoncontrollingInterestMember2024-03-3100017173072024-03-310001717307us-gaap:RetainedEarningsMember2024-04-012024-06-300001717307us-gaap:ParentMember2024-04-012024-06-300001717307us-gaap:NoncontrollingInterestMember2024-04-012024-06-3000017173072024-04-012024-06-300001717307us-gaap:CommonStockMember2024-04-012024-06-300001717307us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-300001717307ilpt:CumulativeCommonDistributionsMember2024-04-012024-06-300001717307us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-04-012024-06-300001717307us-gaap:CommonStockMember2024-06-300001717307us-gaap:AdditionalPaidInCapitalMember2024-06-300001717307us-gaap:RetainedEarningsMember2024-06-300001717307us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-300001717307ilpt:CumulativeCommonDistributionsMember2024-06-300001717307us-gaap:ParentMember2024-06-300001717307us-gaap:NoncontrollingInterestMember2024-06-3000017173072024-06-300001717307us-gaap:RetainedEarningsMember2024-07-012024-09-300001717307us-gaap:ParentMember2024-07-012024-09-300001717307us-gaap:NoncontrollingInterestMember2024-07-012024-09-300001717307us-gaap:CommonStockMember2024-07-012024-09-300001717307us-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-300001717307ilpt:CumulativeCommonDistributionsMember2024-07-012024-09-300001717307us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300001717307us-gaap:CommonStockMember2024-09-300001717307us-gaap:AdditionalPaidInCapitalMember2024-09-300001717307us-gaap:RetainedEarningsMember2024-09-300001717307us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-300001717307ilpt:CumulativeCommonDistributionsMember2024-09-300001717307us-gaap:ParentMember2024-09-300001717307us-gaap:NoncontrollingInterestMember2024-09-300001717307us-gaap:CommonStockMember2022-12-310001717307us-gaap:AdditionalPaidInCapitalMember2022-12-310001717307us-gaap:RetainedEarningsMember2022-12-310001717307us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001717307ilpt:CumulativeCommonDistributionsMember2022-12-310001717307us-gaap:ParentMember2022-12-310001717307us-gaap:NoncontrollingInterestMember2022-12-3100017173072022-12-310001717307us-gaap:RetainedEarningsMember2023-01-012023-03-310001717307us-gaap:ParentMember2023-01-012023-03-310001717307us-gaap:NoncontrollingInterestMember2023-01-012023-03-3100017173072023-01-012023-03-310001717307us-gaap:CommonStockMember2023-01-012023-03-310001717307us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001717307ilpt:CumulativeCommonDistributionsMember2023-01-012023-03-310001717307us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001717307us-gaap:CommonStockMember2023-03-310001717307us-gaap:AdditionalPaidInCapitalMember2023-03-310001717307us-gaap:RetainedEarningsMember2023-03-310001717307us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001717307ilpt:CumulativeCommonDistributionsMember2023-03-310001717307us-gaap:ParentMember2023-03-310001717307us-gaap:NoncontrollingInterestMember2023-03-3100017173072023-03-310001717307us-gaap:RetainedEarningsMember2023-04-012023-06-300001717307us-gaap:ParentMember2023-04-012023-06-300001717307us-gaap:NoncontrollingInterestMember2023-04-012023-06-3000017173072023-04-012023-06-300001717307us-gaap:CommonStockMember2023-04-012023-06-300001717307us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300001717307ilpt:CumulativeCommonDistributionsMember2023-04-012023-06-300001717307us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300001717307us-gaap:CommonStockMember2023-06-300001717307us-gaap:AdditionalPaidInCapitalMember2023-06-300001717307us-gaap:RetainedEarningsMember2023-06-300001717307us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001717307ilpt:CumulativeCommonDistributionsMember2023-06-300001717307us-gaap:ParentMember2023-06-300001717307us-gaap:NoncontrollingInterestMember2023-06-3000017173072023-06-300001717307us-gaap:RetainedEarningsMember2023-07-012023-09-300001717307us-gaap:ParentMember2023-07-012023-09-300001717307us-gaap:NoncontrollingInterestMember2023-07-012023-09-300001717307us-gaap:CommonStockMember2023-07-012023-09-300001717307us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300001717307ilpt:CumulativeCommonDistributionsMember2023-07-012023-09-300001717307us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001717307us-gaap:CommonStockMember2023-09-300001717307us-gaap:AdditionalPaidInCapitalMember2023-09-300001717307us-gaap:RetainedEarningsMember2023-09-300001717307us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300001717307ilpt:CumulativeCommonDistributionsMember2023-09-300001717307us-gaap:ParentMember2023-09-300001717307us-gaap:NoncontrollingInterestMember2023-09-3000017173072023-09-300001717307stpr:HI2024-09-300001717307ilpt:OtherStatesMember2024-09-300001717307ilpt:MountainIndustrialREITLLCMembersrt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember2024-09-300001717307ilpt:TheIndustrialFundREITLLCMembersrt:PartnershipInterestMember2024-09-300001717307ilpt:TenantImprovementsMember2024-07-012024-09-300001717307ilpt:TenantImprovementsMember2023-07-012023-09-300001717307ilpt:TenantImprovementsMember2024-01-012024-09-300001717307ilpt:TenantImprovementsMember2023-01-012023-09-300001717307ilpt:LeasingCostsMember2024-07-012024-09-300001717307ilpt:LeasingCostsMember2023-07-012023-09-300001717307ilpt:LeasingCostsMember2024-01-012024-09-300001717307ilpt:LeasingCostsMember2023-01-012023-09-300001717307us-gaap:BuildingImprovementsMember2024-07-012024-09-300001717307us-gaap:BuildingImprovementsMember2023-07-012023-09-300001717307us-gaap:BuildingImprovementsMember2024-01-012024-09-300001717307us-gaap:BuildingImprovementsMember2023-01-012023-09-300001717307ilpt:DevelopmentRedevelopmentAndOtherActivitiesMember2024-07-012024-09-300001717307ilpt:DevelopmentRedevelopmentAndOtherActivitiesMember2023-07-012023-09-300001717307ilpt:DevelopmentRedevelopmentAndOtherActivitiesMember2024-01-012024-09-300001717307ilpt:DevelopmentRedevelopmentAndOtherActivitiesMember2023-01-012023-09-300001717307ilpt:ConsolidatedJointVentureMember2024-07-012024-09-300001717307ilpt:ConsolidatedJointVentureMember2023-07-012023-09-300001717307ilpt:ConsolidatedJointVentureMember2024-01-012024-09-300001717307ilpt:ConsolidatedJointVentureMember2023-01-012023-09-300001717307ilpt:TenancyInCommonMember2024-07-012024-09-300001717307ilpt:TenancyInCommonMember2023-07-012023-09-300001717307ilpt:TenancyInCommonMember2024-01-012024-09-300001717307ilpt:TenancyInCommonMember2023-01-012023-09-300001717307ilpt:MountainIndustrialREITLLCMemberilpt:OtherJointVentureInvestorMember2024-09-300001717307ilpt:SomersetNewJerseyMemberilpt:UnrelatedThirdPartyMemberilpt:TenancyInCommonMember2024-09-300001717307ilpt:SomersetNewJerseyMemberilpt:TenancyInCommonMemberilpt:UnrelatedThirdPartyMember2024-01-012024-09-300001717307ilpt:SomersetNewJerseyMemberilpt:TenancyInCommonMemberilpt:UnrelatedThirdPartyMember2024-09-300001717307ilpt:TenancyInCommonMemberilpt:UnrelatedThirdPartyMember2024-07-012024-09-300001717307ilpt:TenancyInCommonMemberilpt:UnrelatedThirdPartyMember2023-07-012023-09-300001717307ilpt:TenancyInCommonMemberilpt:UnrelatedThirdPartyMember2024-01-012024-09-300001717307ilpt:TenancyInCommonMemberilpt:UnrelatedThirdPartyMember2023-01-012023-09-300001717307ilpt:UnrelatedThirdPartyMember2024-09-300001717307ilpt:TwelveMainlandPropertiesMember2024-09-300001717307stpr:HIus-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMember2024-07-012024-09-300001717307stpr:HIus-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMember2023-07-012023-09-300001717307stpr:HIus-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMember2024-01-012024-09-300001717307stpr:HIus-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMember2023-01-012023-09-300001717307ilpt:SubsidiariesOfFedExCorpMember2024-09-300001717307ilpt:SubsidiariesOfAmazoncomIncMember2024-09-300001717307ilpt:SubsidiariesOfFedExCorpMember2023-09-300001717307ilpt:SubsidiariesOfAmazoncomIncMember2023-09-300001717307ilpt:FloatingRateLoan618DueIn2024Memberilpt:FloatingRateLoanMember2024-01-012024-09-300001717307ilpt:FloatingRateLoan618DueIn2024Memberilpt:FloatingRateLoanMember2024-09-300001717307ilpt:FixedRateLoan431DueIn2029Memberilpt:FixedRateLoanMember2024-01-012024-09-300001717307ilpt:FixedRateLoan431DueIn2029Memberilpt:FixedRateLoanMember2024-09-300001717307ilpt:FixedRateLoan442DueIn2032Memberilpt:FixedRateLoanMember2024-01-012024-09-300001717307ilpt:FixedRateLoan442DueIn2032Memberilpt:FixedRateLoanMember2024-09-300001717307ilpt:FloatingRateLoan5.81DueIn2025Memberilpt:FloatingRateLoanMember2024-01-012024-09-300001717307ilpt:FloatingRateLoan5.81DueIn2025Memberilpt:FloatingRateLoanMember2024-09-300001717307ilpt:FixedRateLoan625Due2030Memberilpt:FixedRateLoanMember2024-01-012024-09-300001717307ilpt:FixedRateLoan625Due2030Memberilpt:FixedRateLoanMember2024-09-300001717307ilpt:FixedRateLoan367Due2031Memberilpt:FixedRateLoanMember2024-01-012024-09-300001717307ilpt:FixedRateLoan367Due2031Memberilpt:FixedRateLoanMember2024-09-300001717307ilpt:FixedRateLoan414DueIn2032Memberilpt:FixedRateLoanMember2024-01-012024-09-300001717307ilpt:FixedRateLoan414DueIn2032Memberilpt:FixedRateLoanMember2024-09-300001717307ilpt:FixedRateLoan402Due2033Memberilpt:FixedRateLoanMember2024-01-012024-09-300001717307ilpt:FixedRateLoan402Due2033Memberilpt:FixedRateLoanMember2024-09-300001717307ilpt:FixedRateLoan413Due2033Memberilpt:FixedRateLoanMember2024-01-012024-09-300001717307ilpt:FixedRateLoan413Due2033Memberilpt:FixedRateLoanMember2024-09-300001717307ilpt:FixedRateLoan310Due2035Memberilpt:FixedRateLoanMember2024-01-012024-09-300001717307ilpt:FixedRateLoan310Due2035Memberilpt:FixedRateLoanMember2024-09-300001717307ilpt:FixedRateLoan295Due2036Memberilpt:FixedRateLoanMember2024-01-012024-09-300001717307ilpt:FixedRateLoan295Due2036Memberilpt:FixedRateLoanMember2024-09-300001717307ilpt:FixedRateLoan427Due2037Memberilpt:FixedRateLoanMember2024-01-012024-09-300001717307ilpt:FixedRateLoan427Due2037Memberilpt:FixedRateLoanMember2024-09-300001717307ilpt:FixedRateLoan325Due2038Memberilpt:FixedRateLoanMember2024-01-012024-09-300001717307ilpt:FixedRateLoan325Due2038Memberilpt:FixedRateLoanMember2024-09-300001717307ilpt:FloatingRateLoan618DueIn2024Memberilpt:FloatingRateLoanMember2023-01-012023-12-310001717307ilpt:FloatingRateLoan618DueIn2024Memberilpt:FloatingRateLoanMember2023-12-310001717307ilpt:FixedRateLoan431DueIn2029Memberilpt:FixedRateLoanMember2023-01-012023-12-310001717307ilpt:FixedRateLoan431DueIn2029Memberilpt:FixedRateLoanMember2023-12-310001717307ilpt:FixedRateLoan442DueIn2032Memberilpt:FixedRateLoanMember2023-01-012023-12-310001717307ilpt:FixedRateLoan442DueIn2032Memberilpt:FixedRateLoanMember2023-12-310001717307ilpt:FloatingRateLoan617DueIn2024Memberilpt:FloatingRateLoanMember2023-01-012023-12-310001717307ilpt:FloatingRateLoan617DueIn2024Memberilpt:FloatingRateLoanMember2023-12-310001717307ilpt:FixedRateLoan625Due2030Memberilpt:FixedRateLoanMember2023-01-012023-12-310001717307ilpt:FixedRateLoan625Due2030Memberilpt:FixedRateLoanMember2023-12-310001717307ilpt:FixedRateLoan367Due2031Memberilpt:FixedRateLoanMember2023-01-012023-12-310001717307ilpt:FixedRateLoan367Due2031Memberilpt:FixedRateLoanMember2023-12-310001717307ilpt:FixedRateLoan414DueIn2032Memberilpt:FixedRateLoanMember2023-01-012023-12-310001717307ilpt:FixedRateLoan414DueIn2032Memberilpt:FixedRateLoanMember2023-12-310001717307ilpt:FixedRateLoan402Due2033Memberilpt:FixedRateLoanMember2023-01-012023-12-310001717307ilpt:FixedRateLoan402Due2033Memberilpt:FixedRateLoanMember2023-12-310001717307ilpt:FixedRateLoan413Due2033Memberilpt:FixedRateLoanMember2023-01-012023-12-310001717307ilpt:FixedRateLoan413Due2033Memberilpt:FixedRateLoanMember2023-12-310001717307ilpt:FixedRateLoan310Due2035Memberilpt:FixedRateLoanMember2023-01-012023-12-310001717307ilpt:FixedRateLoan310Due2035Memberilpt:FixedRateLoanMember2023-12-310001717307ilpt:FixedRateLoan295Due2036Memberilpt:FixedRateLoanMember2023-01-012023-12-310001717307ilpt:FixedRateLoan295Due2036Memberilpt:FixedRateLoanMember2023-12-310001717307ilpt:FixedRateLoan427Due2037Memberilpt:FixedRateLoanMember2023-01-012023-12-310001717307ilpt:FixedRateLoan427Due2037Memberilpt:FixedRateLoanMember2023-12-310001717307ilpt:FixedRateLoan325Due2038Memberilpt:FixedRateLoanMember2023-01-012023-12-310001717307ilpt:FixedRateLoan325Due2038Memberilpt:FixedRateLoanMember2023-12-310001717307ilpt:FloatingRateLoan618DueIn2024Memberilpt:ILPTFloatingRateLoanMember2024-09-300001717307ilpt:FloatingRateLoan618DueIn2024Memberilpt:ILPTFloatingRateLoanMember2024-01-012024-09-300001717307ilpt:FloatingRateLoan618DueIn2024Memberilpt:ILPTFloatingRateLoanMemberus-gaap:SubsequentEventMember2024-10-012024-10-290001717307ilpt:FloatingRateLoan618DueIn2024Memberilpt:ILPTFloatingRateLoanMemberus-gaap:SubsequentEventMemberus-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-10-012024-10-290001717307ilpt:FloatingRateLoan618DueIn2024Memberilpt:ILPTFloatingRateLoanMemberus-gaap:SubsequentEventMemberus-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-10-290001717307ilpt:FloatingRateLoan618DueIn2024Memberus-gaap:SubsequentEventMemberus-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-10-290001717307ilpt:FloatingRateLoan618DueIn2024Memberus-gaap:SubsequentEventMemberus-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-10-280001717307ilpt:FloatingRateLoanDueIn2025Memberilpt:FloatingRateLoanMember2024-09-300001717307ilpt:FloatingRateLoanDueIn2025Memberilpt:FloatingRateLoanMember2024-01-012024-09-300001717307ilpt:FloatingRateLoanDueIn2025Memberilpt:FloatingRateLoanMember2024-03-012024-03-310001717307ilpt:FloatingRateLoanDueIn2025Memberilpt:FloatingRateLoanMemberus-gaap:InterestRateCapMembersrt:AffiliatedEntityMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-03-012024-03-310001717307ilpt:FloatingRateLoanDueIn2025Memberilpt:FloatingRateLoanMemberus-gaap:InterestRateCapMembersrt:AffiliatedEntityMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-03-310001717307ilpt:FloatingRateLoanDueIn2025Memberus-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-03-310001717307ilpt:FloatingRateLoanDueIn2025Memberus-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-03-300001717307ilpt:FloatingRateLoan618DueIn2024Memberilpt:ILPTFloatingRateLoanMember2024-07-012024-09-300001717307ilpt:FloatingRateLoan618DueIn2024Memberilpt:ILPTFloatingRateLoanMember2023-07-012023-09-300001717307ilpt:FloatingRateLoan618DueIn2024Memberilpt:ILPTFloatingRateLoanMember2023-01-012023-09-300001717307ilpt:FloatingRateLoanDueIn2025Memberilpt:FloatingRateLoanMember2024-07-012024-09-300001717307ilpt:FloatingRateLoanDueIn2025Memberilpt:FloatingRateLoanMember2023-07-012023-09-300001717307ilpt:FloatingRateLoanDueIn2025Memberilpt:FloatingRateLoanMember2023-01-012023-09-300001717307ilpt:FloatingRateLoan618DueIn2024Memberilpt:ILPTFloatingRateLoanMemberus-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-09-300001717307ilpt:FloatingRateLoanDueIn2025Memberus-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-09-300001717307ilpt:FloatingRateLoanDueIn2024Memberus-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-03-310001717307ilpt:FixedRateLoan6.25InterestRateDueIn2030Membersrt:AffiliatedEntityMemberus-gaap:MortgagesMember2023-05-310001717307ilpt:FixedRateLoan6.25InterestRateDueIn2030Membersrt:AffiliatedEntityMemberus-gaap:MortgagesMember2023-05-012023-05-310001717307srt:AffiliatedEntityMember2023-05-012023-05-310001717307us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-09-300001717307us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001717307us-gaap:EstimateOfFairValueFairValueDisclosureMember2024-09-300001717307us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001717307us-gaap:FairValueMeasurementsRecurringMember2024-09-300001717307us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001717307us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001717307us-gaap:FairValueMeasurementsRecurringMember2023-12-310001717307us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001717307us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001717307us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001717307us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDiscountRateMembersrt:MinimumMember2024-09-300001717307us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMember2024-09-300001717307us-gaap:FairValueInputsLevel3Memberilpt:MeasurementInputExitCapitalizationRateMembersrt:MinimumMember2024-09-300001717307us-gaap:FairValueInputsLevel3Memberilpt:MeasurementInputExitCapitalizationRateMembersrt:MaximumMember2024-09-300001717307us-gaap:FairValueInputsLevel3Memberilpt:MeasurementInputHoldingsPeriodsMembersrt:MinimumMember2024-09-300001717307us-gaap:FairValueInputsLevel3Memberilpt:MeasurementInputHoldingsPeriodsMembersrt:MaximumMember2024-09-300001717307us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDiscountRateMembersrt:MinimumMember2023-12-310001717307us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMember2023-12-310001717307us-gaap:FairValueInputsLevel3Memberilpt:MeasurementInputExitCapitalizationRateMembersrt:MinimumMember2023-12-310001717307us-gaap:FairValueInputsLevel3Memberilpt:MeasurementInputExitCapitalizationRateMembersrt:MaximumMember2023-12-310001717307us-gaap:FairValueInputsLevel3Memberilpt:MeasurementInputHoldingsPeriodsMembersrt:MinimumMember2023-12-310001717307us-gaap:FairValueInputsLevel3Memberilpt:MeasurementInputHoldingsPeriodsMembersrt:MaximumMember2023-12-310001717307us-gaap:EquityMethodInvestmentsMember2024-06-300001717307us-gaap:EquityMethodInvestmentsMember2023-06-300001717307us-gaap:EquityMethodInvestmentsMember2023-12-310001717307us-gaap:EquityMethodInvestmentsMember2022-12-310001717307us-gaap:EquityMethodInvestmentsMember2024-07-012024-09-300001717307us-gaap:EquityMethodInvestmentsMember2023-07-012023-09-300001717307us-gaap:EquityMethodInvestmentsMember2024-01-012024-09-300001717307us-gaap:EquityMethodInvestmentsMember2023-01-012023-09-300001717307us-gaap:EquityMethodInvestmentsMember2024-09-300001717307us-gaap:EquityMethodInvestmentsMember2023-09-3000017173072024-05-300001717307ilpt:TrusteeMember2024-05-302024-05-300001717307ilpt:TrusteeMember2024-05-300001717307srt:OfficerMember2024-09-112024-09-110001717307srt:OfficerMember2024-09-110001717307us-gaap:CommonStockMember2024-01-012024-09-300001717307us-gaap:SubsequentEventMember2024-10-162024-10-160001717307us-gaap:RelatedPartyMemberilpt:ReitManagementAndResearchLLCMember2024-09-300001717307us-gaap:RelatedPartyMember2024-07-012024-09-300001717307us-gaap:RelatedPartyMember2024-01-012024-09-300001717307us-gaap:RelatedPartyMember2023-07-012023-09-300001717307us-gaap:RelatedPartyMember2023-01-012023-09-300001717307us-gaap:RelatedPartyMember2023-01-012023-12-310001717307ilpt:PropertyManagementAndConstructionSupervisionFeesMember2024-07-012024-09-300001717307ilpt:PropertyManagementAndConstructionSupervisionFeesMember2024-01-012024-09-300001717307ilpt:PropertyManagementAndConstructionSupervisionFeesMember2023-07-012023-09-300001717307ilpt:PropertyManagementAndConstructionSupervisionFeesMember2023-01-012023-09-300001717307us-gaap:RelatedPartyMemberilpt:ExpensedPropertyManagementAndConstructionSupervisionFeesMember2024-07-012024-09-300001717307us-gaap:RelatedPartyMemberilpt:ExpensedPropertyManagementAndConstructionSupervisionFeesMember2024-01-012024-09-300001717307ilpt:CapitalizedPropertyManagementAndConstructionSupervisionFeesMember2024-07-012024-09-300001717307ilpt:CapitalizedPropertyManagementAndConstructionSupervisionFeesMember2024-01-012024-09-300001717307us-gaap:RelatedPartyMemberilpt:ExpensedPropertyManagementAndConstructionSupervisionFeesMember2023-07-012023-09-300001717307us-gaap:RelatedPartyMemberilpt:ExpensedPropertyManagementAndConstructionSupervisionFeesMember2023-01-012023-09-300001717307ilpt:CapitalizedPropertyManagementAndConstructionSupervisionFeesMember2023-07-012023-09-300001717307ilpt:CapitalizedPropertyManagementAndConstructionSupervisionFeesMember2023-01-012023-09-300001717307ilpt:ReimbursedPropertyLevelOperatingExpensesMember2024-07-012024-09-300001717307ilpt:ReimbursedPropertyLevelOperatingExpensesMember2024-01-012024-09-300001717307ilpt:ReimbursedPropertyLevelOperatingExpensesMember2023-07-012023-09-300001717307ilpt:ReimbursedPropertyLevelOperatingExpensesMember2023-01-012023-09-300001717307srt:AffiliatedEntityMember2024-09-300001717307srt:AffiliatedEntityMember2023-12-310001717307ilpt:ILPTFloatingRateLoanMemberus-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-09-300001717307ilpt:ILPTFloatingRateLoanMemberus-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001717307ilpt:FloatingRateLoanMemberus-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-09-300001717307ilpt:FloatingRateLoanMemberus-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001717307ilpt:FloatingRateLoanTwoMemberus-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-09-300001717307ilpt:FloatingRateLoanTwoMemberus-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-310001717307us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-09-300001717307us-gaap:InterestRateCapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
For the quarterly period ended September 30, 2024
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
Commission File Number 001-38342 
INDUSTRIAL LOGISTICS PROPERTIES TRUST
(Exact Name of Registrant as Specified in Its Charter)
Maryland 82-2809631
(State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.)
Two Newton Place, 255 Washington Street, Suite 300, Newton, Massachusetts 02458-1634
(Address of Principal Executive Offices)(Zip Code)
617-219-1460
(Registrant’s Telephone Number, Including Area Code)
Securities Registered Pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name Of Each Exchange On Which Registered
Common Shares of Beneficial InterestILPTThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer☐Accelerated filer☒
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
Number of registrant’s common shares of beneficial interest, $.01 par value per share, outstanding as of October 28, 2024: 66,144,422.


Table of Contents
INDUSTRIAL LOGISTICS PROPERTIES TRUST 
FORM 10-Q 
September 30, 2024
INDEX
 
  Page
   
   
 
Condensed Consolidated Balance Sheets — September 30, 2024 and December 31, 2023
  
 
   
 
   
 
   
   
Item 3. 
   
   
 
   
 
   
   
   
 
 
References in this Quarterly Report on Form 10-Q to the Company, we, us or our include Industrial Logistics Properties Trust and its consolidated subsidiaries unless otherwise expressly stated or the context indicates otherwise.
2
Table of Contents
PART I. Financial Information
 
Item 1. Financial Statements
INDUSTRIAL LOGISTICS PROPERTIES TRUST 
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except per share data)
(unaudited)
 September 30,December 31,
 20242023
ASSETS  
Real estate properties:
Land$1,113,711 $1,113,723 
Buildings and improvements4,062,588 4,055,829 
Total real estate properties, gross5,176,299 5,169,552 
Accumulated depreciation(492,135)(397,454)
Total real estate properties, net4,684,164 4,772,098 
Investment in unconsolidated joint venture117,622 115,360 
Acquired real estate leases, net208,785 243,521 
Cash and cash equivalents153,863 112,341 
Restricted cash and cash equivalents
111,068 133,382 
Rents receivable, including straight line rents of $102,591 and $94,309, respectively
122,730 119,170 
Other assets, net56,576 67,803 
Total assets$5,454,808 $5,563,675 
LIABILITIES AND EQUITY
Mortgages and notes payable, net$4,304,868 $4,305,941 
Accounts payable and other liabilities85,566 72,455 
Assumed real estate lease obligations, net15,795 18,534 
Due to related persons5,820 4,966 
Total liabilities4,412,049 4,401,896 
Commitments and contingencies
Equity:
Equity attributable to common shareholders:
Common shares of beneficial interest, $.01 par value: 100,000,000 shares authorized;
66,144,422 and 65,843,387 shares issued and outstanding, respectively
661 658 
Additional paid in capital1,017,172 1,015,777 
Cumulative net (deficit) income(62,372)9,196 
Cumulative other comprehensive (loss) income(1,749)10,171 
Cumulative common distributions(367,824)(365,848)
Total equity attributable to common shareholders585,888 669,954 
Noncontrolling interest456,871 491,825 
Total equity1,042,759 1,161,779 
Total liabilities and equity$5,454,808 $5,563,675 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3
Table of Contents
INDUSTRIAL LOGISTICS PROPERTIES TRUST 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(amounts in thousands, except per share data)
(unaudited) 
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Rental income$108,945 $110,142 $331,801 $328,443 
Expenses:
Real estate taxes15,339 14,926 46,349 46,493 
Other operating expenses8,897 9,907 28,426 27,744 
Depreciation and amortization43,205 43,912 130,203 134,278 
General and administrative7,237 7,712 22,865 23,750 
Loss on impairment of real estate— — — 254 
Total expenses74,678 76,457 227,843 232,519 
Interest income
3,134 2,397 8,921 5,340 
Interest expense
(73,936)(72,941)(220,797)(215,558)
Loss on sale of real estate— — — (974)
Loss on early extinguishment of debt— — — (359)
Loss before income taxes and equity in earnings of unconsolidated joint venture
(36,535)(36,859)(107,918)(115,627)
Income tax expense(33)(51)(102)(113)
Equity in earnings of unconsolidated joint venture1,161 719 5,232 7,423 
Net loss(35,407)(36,191)(102,788)(108,317)
Net loss attributable to noncontrolling interest10,417 10,079 31,220 31,568 
Net loss attributable to common shareholders(24,990)(26,112)(71,568)(76,749)
Other comprehensive income (loss):
Unrealized loss on derivatives(8,972)(6,635)(15,328)(3,392)
Less: unrealized loss on derivatives attributable to noncontrolling interest1,988 2,290 3,408 3,631 
Other comprehensive (loss) income attributable to common shareholders
(6,984)(4,345)(11,920)239 
Comprehensive loss attributable to common shareholders$(31,974)$(30,457)$(83,488)$(76,510)
Weighted average common shares outstanding (basic and diluted)65,769 65,488 65,651 65,389 
Per common share data (basic and diluted):
Net loss attributable to common shareholders$(0.38)$(0.40)$(1.09)$(1.17)
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



4
Table of Contents
INDUSTRIAL LOGISTICS PROPERTIES TRUST
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(dollars in thousands)
(unaudited)
Cumulative
Total Equity
Number ofAdditionalCumulativeOtherCumulative
Attributable to
CommonCommonPaid InNet (Deficit)ComprehensiveCommon
Common
NoncontrollingTotal
SharesSharesCapitalIncomeIncome (Loss)Distributions
Shareholders
InterestEquity
Balance at December 31, 202365,843,387 $658 $1,015,777 $9,196 $10,171 $(365,848)$669,954 $491,825 $1,161,779 
Net loss— — — (23,403)— — (23,403)(10,499)(33,902)
Share grants, repurchases and forfeitures(11,857)— 290 — — — 290 — 290 
Distributions to common shareholders— — — — — (658)(658)— (658)
Other comprehensive loss
— — — — (2,958)— (2,958)(1,888)(4,846)
Distributions to noncontrolling interest— — — — — — — (163)(163)
Balance at March 31, 202465,831,530 658 1,016,067 (14,207)7,213 (366,506)643,225 479,275 1,122,500 
Net loss— — — (23,175)— — (23,175)(10,304)(33,479)
Share grants, repurchases and forfeitures160,979 2 913 — — — 915 — 915 
Distributions to common shareholders— — — — — (659)(659)— (659)
Other comprehensive (loss) income— — — — (1,978)— (1,978)468 (1,510)
Balance at June 30, 202465,992,509 660 1,016,980 (37,382)5,235 (367,165)618,328 469,439 1,087,767 
Net loss— — — (24,990)— — (24,990)(10,417)(35,407)
Share grants, repurchases and forfeitures151,913 1 192 — — — 193 — 193 
Distributions to common shareholders— — — — — (659)(659)— (659)
Other comprehensive loss— — — — (6,984)— (6,984)(1,988)(8,972)
Distributions to noncontrolling interest— — — — —— — (163)(163)
Balance at September 30, 202466,144,422 $661 $1,017,172 $(62,372)$(1,749)$(367,824)$585,888 $456,871 $1,042,759 
Balance at December 31, 202265,568,145 $656 $1,014,201 $117,185 $21,903 $(363,221)$790,724 $540,047 $1,330,771 
Net loss— — — (24,809)— — (24,809)(10,737)(35,546)
Share grants, repurchases and forfeitures(2,176)— 384 — — — 384 — 384 
Distributions to common shareholders— — — — — (656)(656)— (656)
Other comprehensive loss— — — — (7,018)— (7,018)(1,760)(8,778)
Balance at March 31, 202365,565,969 656 1,014,585 92,376 14,885 (363,877)758,625 527,550 1,286,175 
Net loss— — — (25,828)— — (25,828)(10,752)(36,580)
Share grants, repurchases and forfeitures131,990 1 553 — — — 554 — 554 
Distributions to common shareholders— — — — — (656)(656)— (656)
Other comprehensive income— — — — 11,602 — 11,602 419 12,021 
Distributions to noncontrolling interest— — — — — — — (225)(225)
Balance at June 30, 202365,697,959 657 1,015,138 66,548 26,487 (364,533)744,297 516,992 1,261,289 
Net loss— — — (26,112)— — (26,112)(10,079)(36,191)
Share grants, repurchases and forfeitures147,114 1 330 — — — 331 — 331 
Distributions to common shareholders— — — — — (656)(656)— (656)
Other comprehensive loss— — — — (4,345)— (4,345)(2,290)(6,635)
Balance at September 30, 202365,845,073 $658 $1,015,468 $40,436 $22,142 $(365,189)$713,515 $504,623 $1,218,138 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
5
Table of Contents
INDUSTRIAL LOGISTICS PROPERTIES TRUST 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
(unaudited)
 Nine Months Ended September 30,
20242023
CASH FLOWS FROM OPERATING ACTIVITIES:  
Net loss$(102,788)$(108,317)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation94,767 93,545 
Amortization of interest rate caps
31,726 18,435 
Net amortization of debt issuance costs, premiums and discounts12,580 20,177 
Amortization of acquired real estate leases and assumed real estate lease obligations31,997 38,275 
Amortization of deferred leasing costs2,329 1,723 
Straight line rental income(8,282)(10,531)
Loss on sale of real estate— 974 
Loss on impairment of real estate— 254 
Loss on early extinguishment of debt— 359 
Proceeds from settlement of derivatives(52,365)(40,426)
General and administrative expenses paid in common shares
1,709 1,430 
Distributions of earnings from unconsolidated joint venture2,970 2,970 
Equity in earnings of unconsolidated joint venture(5,232)(7,423)
Change in assets and liabilities:
Rents receivable4,722 3,260 
Other assets(11,981)(11,459)
Accounts payable and other liabilities12,420 9,745 
Due to related persons854 1,072 
Net cash provided by operating activities
15,426 14,063 
CASH FLOWS FROM INVESTING ACTIVITIES:
Real estate improvements(6,142)(13,649)
Proceeds from sale of real estate— 243 
Purchase of interest rate cap
(26,175)— 
Proceeds from settlement of derivatives52,365 40,426 
Distributions in excess of earnings from unconsolidated joint venture— 4,400 
Net cash provided by investing activities20,048 31,420 
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of mortgage notes payable— 91,000 
Repayment of mortgage notes payable(13,524)(50,993)
Payment of debt issuance costs(129)(1,414)
Distributions to common shareholders(1,976)(1,968)
Repurchase of common shares(311)(160)
Distributions to noncontrolling interest(326)(225)
Net cash (used in) provided by financing activities(16,266)36,240 
Increase in cash and cash equivalents and restricted cash and cash equivalents19,208 81,723 
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period245,723 140,780 
Cash and cash equivalents and restricted cash and cash equivalents at end of period$264,931 $222,503 
SUPPLEMENTAL DISCLOSURES:
Interest paid$177,368 $218,369 
Income taxes (received) paid
$(80)$85 
NON-CASH INVESTING ACTIVITIES:
Real estate improvements accrued not paid$1,929 $2,810 
6
Table of Contents
SUPPLEMENTAL DISCLOSURE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS:
The following table provides a reconciliation of cash and cash equivalents and restricted cash and cash equivalents reported within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows:
As of September 30,
20242023
Cash and cash equivalents$153,863 $83,283 
Restricted cash and cash equivalents (1)
111,068 139,220 
Total cash and cash equivalents and restricted cash
$264,931 $222,503 

(1)Restricted cash and cash equivalents consist of amounts escrowed at certain of our mortgaged properties and cash held for the operations of our consolidated joint venture.
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
7
Table of Contents
INDUSTRIAL LOGISTICS PROPERTIES TRUST 
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share data)


Note 1. 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.
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.
Note 2. Recent 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 expect to include additional disclosures in the notes to our condensed consolidated financial statements as a result of the implementation of ASU 2023-07; however, these changes are not expected to have a material effect on our condensed consolidated financial statements.
Note 3. Real Estate Investments
As of September 30, 2024, our portfolio was comprised of 411 properties containing approximately 59,890,000 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 43,161,000 rentable square feet that were industrial and logistics properties located in 38 other states, or our Mainland Properties, which included 94 properties in 27 states totaling approximately 20,978,000 rentable square feet, owned by Mountain Industrial REIT LLC, or Mountain JV, or our consolidated joint venture, in which we own a 61% equity interest. As of September 30, 2024, we also owned a 22% equity interest in The Industrial Fund REIT LLC, or the unconsolidated joint venture.
We operate in one business segment: ownership and leasing of properties that include industrial and logistics buildings and leased industrial lands.
8
Table of Contents
INDUSTRIAL LOGISTICS PROPERTIES TRUST 
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share data)

During the three and nine months ended September 30, 2024 and 2023, amounts capitalized at our properties for tenant improvements, leasing costs, building improvements and development, redevelopment and other activities were as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Tenant improvements (1)
$433 $194 $1,019 $1,893 
Leasing costs (1)
2,695 1,047 5,006 3,886 
Building improvements (2)
2,509 2,720 5,817 4,373 
Development, redevelopment and other activities (3)
— 1,314 — 7,705 
$5,637 $5,275 $11,842 $17,857 
(1)Tenant improvements and leasing costs include capital expenditures used to improve tenants’ space or amounts paid directly to tenants to improve their space and leasing related costs, such as brokerage commissions and tenant inducements.
(2)Building improvements generally include expenditures to replace obsolete building components and expenditures that extend the useful life of existing assets.
(3)Development, redevelopment and other activities generally include capital expenditure projects that reposition a property or result in new sources of revenues.
During the three and nine months ended September 30, 2024 and 2023, recognized net income (loss) attributable to noncontrolling interest in our condensed consolidated financial statements was as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Consolidated joint venture$(10,428)$(10,238)$(31,256)$(31,642)
Tenancy in common11 159 36 74 
$(10,417)$(10,079)$(31,220)$(31,568)
Consolidated Joint Venture
We own a 61% equity interest in our consolidated joint venture. 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. As of September 30, 2024, our consolidated joint venture had total assets of $2,932,320 and total liabilities of $1,769,384.
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 approximate 67% tenancy in common interest in this property. The tenancy in common made cash distributions to the unrelated third party investor of $163 and $0 during the three months ended September 30, 2024 and 2023, respectively, and cash distributions of $326 and $225 during the nine months ended September 30, 2024 and 2023, respectively. As of September 30, 2024, the tenancy in common had total assets of $10,388 and total liabilities of $250.
Unconsolidated Joint Venture
We own a 22% equity interest in 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 using 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).
9
Table of Contents
INDUSTRIAL LOGISTICS PROPERTIES TRUST 
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share data)

Note 4. 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.
Our leases provide for base rent payments and may also 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. Allowances for bad debts are recognized as a direct reduction of rental income. In certain circumstances, some leases provide the tenant with the right to terminate if the legislature or other funding authority does not appropriate the funding necessary for the tenant to meet its lease obligations; we have determined the fixed non-cancelable lease term of these leases to be the full term of the lease because we believe the occurrence of early terminations to be a remote contingency based on both our historical experience and our assessments of the likelihood of lease cancellation on a separate lease basis.
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 $18,997 and $19,310 for the three months ended September 30, 2024 and 2023, respectively, and $60,228 and $58,700 for the nine months ended September 30, 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 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 $4,308 and $4,401, respectively, as of September 30, 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 September 30, 2024 and 2023, our Hawaii Properties represented 26.9% and 28.1%, respectively, of our rental income. For the nine months ended September 30, 2024 and 2023, our Hawaii Properties represented 27.4% and 27.9%, 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 29.3% and 6.8% of our annualized rental revenues as of September 30, 2024, respectively, and 29.8% and 6.7% as of September 30, 2023, respectively.
10
Table of Contents
INDUSTRIAL LOGISTICS PROPERTIES TRUST 
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share data)

Note 5. Indebtedness
Our outstanding indebtedness as of September 30, 2024 and December 31, 2023 is summarized below:
Number of
PropertiesPrincipalInterest
Carrying Value
EntitySecured ByBalance
Rate (1)
TypeMaturity
of Collateral
As of September 30, 2024
ILPT104$1,235,000 6.18%Floating10/09/2024$1,023,379 
ILPT186650,000 4.31%Fixed02/07/2029489,875 
ILPT17700,000 4.42%Fixed03/09/2032494,538 
Mountain JV
821,400,000 5.81%Floating03/09/20251,816,102 
Mountain JV491,000 6.25%Fixed06/10/2030179,605 
Mountain JV110,365 3.67%Fixed05/01/203128,525 
Mountain JV111,961 4.14%Fixed07/01/203242,558 
Mountain JV126,815 4.02%Fixed10/01/203383,031 
Mountain JV137,531 4.13%Fixed11/01/2033128,407 
Mountain JV123,091 3.10%Fixed06/01/203545,401 
Mountain JV137,352 2.95%Fixed01/01/203697,018 
Mountain JV142,090 4.27%Fixed11/01/2037108,408 
Mountain JV147,216 3.25%Fixed01/01/2038111,129 
Total / weighted average4,312,421 5.36%$4,647,976 
Unamortized debt issuance costs(7,553)
Total indebtedness, net$4,304,868 
As of December 31, 2023
ILPT104$1,235,000 6.18%Floating10/09/2024$1,044,028 
ILPT186650,000 4.31%Fixed02/07/2029490,149 
ILPT17700,000 4.42%Fixed03/09/2032505,153 
Mountain JV821,400,000 6.17%Floating03/09/20241,857,062 
Mountain JV491,000 6.25%Fixed06/10/2030183,264 
Mountain JV111,380 3.67%Fixed05/01/203128,932 
Mountain JV112,916 4.14%Fixed07/01/203243,510 
Mountain JV128,622 4.02%Fixed10/01/203384,793 
Mountain JV140,019 4.13%Fixed11/01/2033129,749 
Mountain JV124,433 3.10%Fixed06/01/203546,394 
Mountain JV139,411 2.95%Fixed01/01/203699,108 
Mountain JV143,850 4.27%Fixed11/01/2037110,097 
Mountain JV149,313 3.25%Fixed01/01/2038113,477 
Total / weighted average4,325,944 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.

11
Table of Contents
INDUSTRIAL LOGISTICS PROPERTIES TRUST 
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share data)

Our $1,235,000 loan, or the ILPT Floating Rate Loan, which is secured by 104 of our properties, was scheduled to mature in October 2024, subject to three, one year extension options, and required that interest be paid at an annual rate of secured overnight financing rate, or SOFR, plus a weighted average premium of 3.93%. In October 2024, we exercised the first of our three, one year extension options for the maturity date of this loan. In connection with the exercise of the extension, we purchased a one year interest rate cap for $16,975 with a SOFR strike rate equal to 2.78%, which replaced the previous interest rate cap with a SOFR strike rate equal to 2.25%. 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, matures in March 2025, subject to two remaining one year extension options, and requires that interest be paid at an annual rate of SOFR plus a premium of 2.77%. In March 2024, in connection with the exercise of the first of its three, one year extension options for the maturity date of this loan, 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%. Subject to the satisfaction of certain conditions, we have the option to prepay the Mountain Floating Rate Loan in full or in part at any time at par with no premium.
The weighted average interest rates under our floating rate loans for the three and nine months ended September 30, 2024 were as follows:

Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
ILPT Floating Rate Loan (1)
6.18%6.18%6.18%6.18%
Mountain Floating Rale Loan (2)
5.81%6.17%5.90%6.17%
(1)Reflects the impact of an interest rate cap with a SOFR strike rate equal to 2.25%.
(2)Reflects the impact of interest rate caps with a current SOFR strike rate equal to 3.04%, which replaced the previous strike rate equal to 3.40% in March 2024.
In May 2023, our consolidated joint venture obtained a $91,000 fixed rate, interest only mortgage loan secured by four properties owned by our consolidated joint venture. This mortgage loan matures in June 2030 and requires that interest be paid at an annual rate of 6.25%. A portion of the net proceeds from this mortgage loan was used to repay four then outstanding mortgage loans of our consolidated joint venture with an aggregate outstanding principal balance of $35,910 and a weighted average interest rate of 3.70%. We recognized a loss on early extinguishment of debt of $359 in conjunction with the repayment of these mortgage loans.
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 September 30, 2024 are as follows:
Principal
Payment
2024 (1)
$1,239,591 
2025 (2)
1,418,794 
202619,495 
202720,229 
202820,989 
Thereafter1,593,323 
$4,312,421 
(1)In October 2024, we exercised the first of our three, one year extension options for the maturity date of the ILPT Floating Rate Loan.
(2)Our consolidated joint venture has two remaining one year extension options for the maturity date of the Mountain Floating Rate Loan.
12
Table of Contents
INDUSTRIAL LOGISTICS PROPERTIES TRUST 
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share data)

Note 6. 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 September 30, 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 $1,669,925 and $1,682,501 as of September 30, 2024 and December 31, 2023, respectively, and a fair value of $1,599,252 and $1,553,863 as of September 30, 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 September 30, 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 inSignificant OtherSignificant
Active Markets forObservableUnobservable
Identical AssetsInputsInputs
 Total(Level 1)(Level 2)(Level 3)
As of September 30, 2024
Investment in unconsolidated joint venture$117,622 $— $— $117,622 
Interest rate caps$9,697 $— $9,697 $— 
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
ValuationDiscountCapitalizationHolding
TechniqueRatesRatesPeriods
As of September 30, 2024
Investment in unconsolidated joint venture Discounted cash flow
6.50% - 8.00%
5.25% - 6.50%
10 - 12 years
As of December 31, 2023
Investment in unconsolidated joint ventureDiscounted cash flow
5.75% - 8.00%
5.25% - 6.50%
9 - 12 years
13
Table of Contents
INDUSTRIAL LOGISTICS PROPERTIES TRUST 
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share data)


The table below presents a summary of the changes in fair value for our investment in the unconsolidated joint venture:
Three Months Ended
September 30,		Nine Months Ended
September 30,
 2024202320242023
Beginning balance$117,451 $129,082 $115,360 $124,358 
Equity in earnings of unconsolidated joint venture1,161 719 5,232 7,423 
Distributions from unconsolidated joint venture(990)(5,390)(2,970)(7,370)
Ending balance$117,622 $124,411 $117,622 $124,411 
Note 7. Shareholders’ Equity
Common Share Awards
On May 30, 2024, in accordance with our Trustee compensation arrangements, we awarded to each of our seven Trustees 23,316 of our common shares, valued at $3.86 per share, the closing price of our common shares on The Nasdaq Stock Market LLC, or Nasdaq, on that day.
On September 11, 2024, we awarded under our equity compensation plan an aggregate of 204,915 of our common shares, valued at $4.84 per share, the closing price of our common shares on Nasdaq on that day, to our officers and certain other employees of The RMR Group LLC, or RMR.
Common Share Purchases
During the three and nine months ended September 30, 2024, we purchased an aggregate of 53,002 and 67,092, respectively, of our common shares, valued at a weighted average price of $4.78 and $4.65 per common share, respectively, from our officers and certain other current and former officers and employees of 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 Nasdaq on the applicable purchase dates.
Distributions
During the nine months ended September 30, 2024, we declared and paid regular quarterly distributions to common shareholders as follows:
DistributionTotal
Declaration DateRecord DatePayment DatePer ShareDistribution
January 11, 2024January 22, 2024February 15, 2024$0.01 $658 
April 11, 2024April 22, 2024May 16, 20240.01 659 
July 11, 2024July 22, 2024August 15, 20240.01 659 
$0.03 $1,976 
On October 16, 2024, we declared a regular quarterly distribution to common shareholders of record on October 28, 2024 of $0.01 per share, or approximately $661. We expect to pay this distribution to our shareholders on or about November 14, 2024 using cash on hand.
Note 8. 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.
14
Table of Contents
INDUSTRIAL LOGISTICS PROPERTIES TRUST 
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share data)

Pursuant to our business management agreement with RMR, we recognized business management fees of $5,938 and $17,577 for the three and nine months ended September 30, 2024, respectively, and $5,919 and $17,301 for the three and nine months ended September 30, 2023, respectively. Based on our common share total return, as defined in our business management agreement, as of September 30, 2024 and 2023, no incentive fees are included in the business management fees we recognized for the three or nine months ended September 30, 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 $3,317 and $9,951 for the three and nine months ended September 30, 2024, respectively, and $3,464 and $10,286 for the three and nine months ended September 30, 2023, respectively. Of these amounts, for the three and nine months ended September 30, 2024, $3,202 and $9,648, respectively, were included in other operating expenses in our condensed consolidated financial statements and $115 and $303, respectively, were capitalized as building improvements in our condensed consolidated balance sheets. For the three and nine months ended September 30, 2023, $3,293 and $9,745, respectively, were included in other operating expenses in our condensed consolidated statements of comprehensive income (loss) and $171 and $541, 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 $1,856 and $5,190 for these expenses and costs for the three and nine months ended September 30, 2024, respectively, and $2,375 and $6,216 for the three and nine months ended September 30, 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.
Note 9. 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 other public companies managed by RMR. Other officers of RMR, including Mr. Jordan, serve as managing trustees or officers of certain of these public companies.
15
Table of Contents
INDUSTRIAL LOGISTICS PROPERTIES TRUST 
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share data)

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 September 30, 2024 and December 31, 2023, we owed $443 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.

Note 10. 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 September 30, 2024 and December 31, 2023:
Balance
SheetUnderlyingMaturityStrikeNotionalFair Value at
Line Item InstrumentDateRateAmountSeptember 30, 2024December 31, 2023
Other assetsILPT Floating Rate Loan
10/15/2024
2.25%$1,235,000 $1,366 $25,060 
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 8,331 — 
$9,697 $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.
In October 2024, we exercised the first of our three, one year extension options for the maturity date of the ILPT Floating Rate Loan. In connection with the exercise of the extension, we purchased a one year interest rate cap for $16,975 with a SOFR strike rate equal to 2.78%, which replaced the previous interest rate cap with a SOFR strike rate equal to 2.25%.
16
Table of Contents
INDUSTRIAL LOGISTICS PROPERTIES TRUST 
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share data)

The following table summarizes the activity related to our cash flow hedges within cumulative other comprehensive income (loss) for the periods shown:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Amount of (loss) gain recognized on derivative in other comprehensive income (loss)
$(3,564)$3,428 $5,035 $19,677 
Amount of gain reclassified from cumulative other comprehensive (loss) income into interest expense
$5,407 $10,063 $20,363 $23,069 
Total amount of interest expense presented in the condensed consolidated statements of comprehensive income (loss)
$(73,936)$(72,941)$(220,797)$(215,558)
17
Table of Contents
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
 
The following information should be read in conjunction with our condensed consolidated financial statements and accompanying notes included in this Quarterly Report on Form 10-Q and with our 2023 Annual Report.
OVERVIEW (dollars in thousands, except per square foot data)
 
We are a real estate investment trust, or REIT, organized under Maryland law. As of September 30, 2024, our portfolio was comprised of 411 properties containing approximately 59,890,000 rentable square feet located in 39 states with 94.4% occupancy leased to approximately 300 different tenants. As of September 30, 2024, we also owned a 22% equity interest in the unconsolidated joint venture.
Our portfolio as of September 30, 2024 is summarized below (square feet in thousands):
Weighted
Average
Ownership
Number ofRentableRemaining
Vehicle
OwnershipProperties
Location
Square FeetOccupancy
Lease Term (1)
Mainland Properties
ILPT100%90
34 states
22,119 96.5%5.1
Hawaii PropertiesILPT100%226
Hawaii
16,729 85.7%13.1
Mainland Properties
Mountain JV61%94
27 states
20,978 99.0%6.7
Mainland Properties
Tenancy in common67%1
New Jersey
64 100.0%5.0
Total / weighted average41159,890 94.4%8.0
(1)Based on annualized rental revenues as of September 30, 2024.
During the nine months ended September 30, 2024, our rental income and net operating income, or NOI, increased compared to the 2023 period primarily due to leasing activity and rent resets at our properties. Long-term e-commerce trends and supply chain resiliency have resulted in high occupancy and increases in rents. We believe customer service expectations, growth in the number of households and demand for supply chain resiliency will keep demand for industrial properties strong for the foreseeable future. However, high interest rates, even with the recent reduction and anticipated future reductions by the U.S. Federal Reserve, inflationary pressures, and global geopolitical hostilities and tensions, have given rise to economic uncertainty and have caused disruptions in the financial markets. These conditions continue to keep our cost of capital elevated and negatively impact our ability to reduce our leverage. An economic recession, or continued or intensified disruptions in the financial markets, could adversely affect our financial condition and that of our tenants, could adversely impact the ability or willingness of our tenants to renew our leases or pay rent to us, may restrict our access to and would likely increase our cost of capital, may impact our ability to sell properties and may cause the values of our properties and of our common shares or other securities to decline.
Property Operations
Occupancy data for our properties as of September 30, 2024 and 2023 were as follows:
All PropertiesComparable Properties 
as of September 30,
as of September 30, (1)
2024202320242023
Total properties411 413 411 411 
Total rentable square feet (in thousands) (2)
59,890 59,983 59,890 59,951 
Percent leased (3)
94.4 %98.9 %94.4 %98.9 %
(1)Consists of properties that we owned continuously since January 1, 2023.
(2)Subject to modest adjustments when space is remeasured or reconfigured for new tenants and when land leases are converted to building leases.
(3)Leased square feet is pursuant to existing leases as of September 30, 2024, and includes space being fitted out for occupancy, if any, and space which is leased but is not occupied, if any.
18
Table of Contents
The average effective rental rates per square foot represents total rental income divided by the average rentable square feet leased during the periods specified for our properties. For the three and nine months ended September 30, 2024 and 2023, the average effective rental rates per square foot of our properties were as follows:
Three Months EndedNine Months Ended
September 30, (1)
September 30, (2)
2024202320242023
All properties$7.69 $7.44 $7.68 $7.40 
Comparable properties
$7.69 $7.43 $7.68 $7.40 
(1)Consists of properties that we owned continuously since July 1, 2023.
(2)Consists of properties that we owned continuously since January 1, 2023.
During the three and nine months ended September 30, 2024, we entered into new and renewal leases as summarized in the following table (excluding the impact of rent resets):
Three Months Ended September 30, 2024
New LeasesRenewalsTotals
Square feet leased during the period (in thousands)17 2,740 2,757 
Weighted average rental rate change (by rentable square feet)4.1 %7.0 %7.0 %
Weighted average lease term by square feet (years)3.9 6.2 6.2 
Total leasing costs and concession commitments (1)
$113 $2,794 $2,907 
Total leasing costs and concession commitments per square foot (1)
$6.77 $1.02 $1.05 
Total leasing costs and concession commitments per square foot per year (1)
$1.75 $0.17 $0.17 
Nine Months Ended September 30, 2024