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Industrial Logistics Properties Trust (ILPT)
NASDAQ:ILPT
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Industrial Logistics Properties
(NASDAQ:ILPT)
52Neutral
Positive Factors
Debt management
ILPT can push its debt maturities out for two more years, which could potentially align with a more favorable rate environment.
Leasing activity
Leasing volumes expanded by 1.3x, relative to the trailing four-quarter average, with significant contributions from a 13-property FedEx portfolio.
Negative Factors
Bankruptcy impact
The American Tire Distributors bankruptcy creates more potential near-term portfolio headwinds; ILPT has exposure to five leases aggregating 1.6% of rents.
Vacancy trends
Recent move-outs and vacancies have negatively impacted property trends, particularly in the historically durable Hawaii region.
Industrial Logistics Properties (ILPT) vs. S&P 500 (SPY)
Market Cap
$203.06M
Dividend Yield1.3%
Average Volume (3M)391.51K
Price to Earnings (P/E)―
Beta (1Y)1.35
Revenue Growth0.55%
EPS Growth12.36%
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength75
IndustryREIT - Industrial
Share Statistics
EPS (TTM)-1.43
Shares Outstanding66,142,140
10 Day Avg. Volume303,274
30 Day Avg. Volume391,509
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap23.35
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit12.49
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.00Price Target Upside225.73% Upside
Rating ConsensusHold
Number of Analyst Covering1
Industrial Logistics Properties Business Overview & Revenue Model
Company DescriptionILPT 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.
How the Company Makes MoneyILPT generates revenue primarily through the leasing of its industrial and logistics properties to a diverse range of tenants. The company earns rental income from long-term lease agreements with firms engaged in various industries, including e-commerce, logistics, manufacturing, and retail. Key revenue streams include base rent from leases, tenant reimbursement for property-related expenses, and potential revenue from property improvements. ILPT may also benefit from strategic partnerships and joint ventures that enhance its property portfolio and tenant base. The company's financial performance is influenced by factors such as occupancy rates, lease terms, property location, and market demand for industrial space.
Industrial Logistics Properties Financial Statement Overview
Summary
Industrial Logistics Properties faces profitability challenges despite positive revenue growth and healthy EBIT margins. The balance sheet sees reduced leverage but declining equity, and cash flow management is inconsistent, with fluctuations in free cash flow.Income Statement
Industrial Logistics Properties showed a mixed performance in recent years. The gross profit margin is robust, indicating good control over cost of goods sold. However, net income has been negative for the last three years, leading to a negative net profit margin, which is a concern. Revenue growth has been positive, but the company has struggled to convert top-line growth into bottom-line profitability. The EBIT margin is healthy, but the negative EBITDA margin in the latest year is alarming, indicating operational inefficiencies or high non-operational expenses.―
Balance Sheet
The company's balance sheet has seen some improvement with a reduction in total debt, leading to a better debt-to-equity ratio. Despite this, the stockholders' equity has declined, impacting the equity ratio negatively. The company has shown a positive return on equity in the past, but recent losses have led to a deterioration in ROE. Overall, while leverage has reduced, the declining equity base is a concern.60
Cash Flow
Cash flow analysis reveals challenges in free cash flow generation in recent times, with a significant drop in operating cash flow. The operating cash flow to net income ratio is positive, indicating some level of cash earnings, but free cash flow to net income ratio is low, reflecting limited cash available after capital expenditures. The fluctuation in free cash flow growth indicates instability in cash flow management.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 442.32M | 437.34M | 388.15M | 219.87M | 254.57M | Gross Profit |
| 379.76M | 377.00M | 337.53M | 189.74M | 219.39M | EBIT |
| 138.77M | 129.20M | 115.48M | 103.74M | 108.66M | EBITDA |
| 310.76M | 307.93M | 276.46M | 154.34M | 179.17M | Net Income Common Stockholders |
| -95.67M | -107.99M | -293.92M | 78.76M | 82.07M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 242.48M | 112.34M | 48.26M | 29.40M | 22.83M | Total Assets |
| 5.41B | 5.56B | 5.68B | 1.91B | 1.92B | Total Debt |
| 4.32B | 4.32B | 4.27B | 840.56M | 881.21M | Net Debt |
| 4.18B | 4.21B | 4.22B | 811.16M | 858.38M | Total Liabilities |
| 4.40B | 4.40B | 4.35B | 870.52M | 912.55M | Stockholders Equity |
| 562.02M | 669.95M | 790.72M | 1.04B | 1.00B |
| Cash Flow | Free Cash Flow | |||
| 1.96M | 6.06M | 65.52M | 105.74M | 108.71M | Operating Cash Flow |
| 1.96M | 6.06M | 83.25M | 110.65M | 114.56M | Investing Cash Flow |
| 16.42M | 67.74M | -3.45B | 22.88M | -4.52M | Financing Cash Flow |
| -21.63M | 31.14M | 3.47B | -126.96M | -121.76M |
Industrial Logistics Properties Technical Analysis
Neutral
3.07
Price Trends
3.26
Negative
3.48
Negative
3.95
Negative
Market Momentum
-0.14
Negative
56.42
Neutral
70.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ILPT, the sentiment is Neutral. The current price of 3.07 is above the 20-day moving average (MA) of 2.72, below the 50-day MA of 3.26, and below the 200-day MA of 3.95, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 56.42 is Neutral, neither overbought nor oversold. The STOCH value of 70.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ILPT.
Industrial Logistics Properties Risk Analysis
Industrial Logistics Properties disclosed 45 risk factors in its most recent earnings report. Industrial Logistics Properties reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Industrial Logistics Properties Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $706.69M | 5.04 | 26.05% | 6.25% | -3.48% | 615.20% | |
73 Outperform | $6.46B | 25.58 | 7.15% | 4.38% | 8.81% | 33.30% | |
70 Outperform | $6.69B | 24.31 | 10.18% | 3.17% | 9.18% | -7.05% | |
69 Neutral | $8.12B | 27.87 | 3.35% | 4.91% | 18.02% | 12.12% | |
64 Neutral | $2.41B | 41.65 | 2.98% | 6.50% | 5.68% | 358.78% | |
60 Neutral | $2.79B | 11.29 | 0.22% | 8508.24% | 6.33% | -14.20% | |
52 Neutral | $203.06M | ― | -15.86% | 1.30% | 0.55% | 12.36% |
* Real Estate Sector Average
Performance Comparison
ILPT
Industrial Logistics Properties
3.07
-1.11
-26.56%
STAG
Stag Industrial
33.87
0.48
1.44%
FR
First Industrial Realty
49.02
3.45
7.57%
LXP
LXP Industrial Trust
8.15
-0.03
-0.37%
REXR
Rexford Industrial Realty
34.21
-8.38
-19.68%
PLYM
Plymouth Industrial Reit
15.35
-4.13
-21.20%
Industrial Logistics Properties Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 17.18%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, successful leasing activity, and strategic focus on improving operations and reducing leverage. However, challenges remain with significant vacancies and potential impacts from global tariffs.Q1-2025 Updates
Positive Updates
Strong Financial Performance
Normalized FFO increased by 43% year-over-year and 52% on a sequential quarter basis. NOI and EBITDAre both saw year-over-year and sequential increases.
Leasing Activity and Occupancy
Executed over 2.3 million square feet of total leasing activity with an occupancy rate of 94.6%, a sequential increase of 20 basis points. GAAP and cash leasing spreads were 18.9% and 9.8% respectively.
Mainland Leasing Success
The Mainland accounted for 79% of leasing activity, including a 250,000 square foot lease in Indiana with a 45% rent increase and no downtime.
Hawaii Portfolio Performance
Renewed 492,000 square feet of leases in Hawaii with an 18.2% increase in rental rates and a weighted average lease term of 4.9 years.
Interest Expense Reduction
Interest expense decreased by $3.4 million year-over-year due to lower interest rate cap costs.
Negative Updates
Vacancy in Hawaii
A 2.2 million square foot undeveloped land parcel in Hawaii remains vacant, impacting occupancy.
Leasing Challenges in Indianapolis
Despite being close to a lease agreement, a 535,000 square foot property in Indianapolis remains vacant.
Risk from Global Tariffs
Monitoring the evolving landscape surrounding global tariffs, which may impact tenant demand and the leasing environment.
Company Guidance
During the first quarter of 2025, Industrial Logistics Properties Trust (ILPT) reported several key metrics showcasing a strong performance. The company's cash basis net operating income (NOI) grew by nearly 2% compared to the previous year, while normalized funds from operations (FFO) increased by 43% year-over-year and 52% sequentially. ILPT executed over 2.3 million square feet of leasing activity, achieving a 94.6% occupancy rate, marking a 20 basis point increase from the previous quarter. The weighted average lease term for new and renewal leases was six years, with GAAP and cash leasing spreads of 18.9% and 9.8%, respectively. The portfolio comprises 411 properties totaling 60 million square feet, with a significant presence in Hawaii, accounting for 226 properties and 16.7 million square feet. The company's top 10 tenants contribute 47% of annualized rental revenues, with 76% of revenues coming from investment-grade rated tenants or secure Hawaii land leases. Financially, ILPT reported a normalized FFO of $13.5 million or $0.20 per share, exceeding guidance by $0.02, with NOI at $87.5 million and adjusted EBITDAre at $85.3 million. Interest expense decreased to $69.8 million, contributing to a net debt coverage ratio improvement to 11.9x. Looking ahead, ILPT aims to maintain strong tenant retention, maximize growth opportunities, and explore options to improve the balance sheet and reduce leverage.Industrial Logistics Properties Corporate Events
Business Operations and Strategy
Industrial Logistics Properties Trust Resilient Amid Market Challenges
Positive
Nov 15, 2024
Industrial Logistics Properties Trust (ILPT), a U.S. REIT, focuses on high-quality distribution and logistics properties with 411 locations in 39 states and a significant Hawaiian footprint. With over 75% of its rental revenues from investment-grade tenants, ILPT maintains a 94% occupancy rate. Despite facing market uncertainties, the trust remains resilient, leveraging strategic leasing and capital management to navigate challenges like high interest rates and inflation while offering potential growth through its industrial real estate investments.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.