Industrial Logistics Properties (ILPT) AI Stock Analysis

• Market Cap: $387.25M
• Dividend Yield: 2.2%
• Average Volume (3M): 343.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: 1.08%
• EPS Growth: 14.30%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): -0.03
• Shares Outstanding: 66,653,130
• 10 Day Avg. Volume: 310,835
• 30 Day Avg. Volume: 343,364
• PEG Ratio: 0.18
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 6.03
• Enterprise Value/Market Cap: 11.46
• Enterprise Value/Revenue: 9.89
• Enterprise Value/Gross Profit: 78.26
• Enterprise Value/Ebitda: 13.53
• 1Y Price Target: $7.00
• Price Target Upside: 26.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.79
• Revenue Forecast (FY): $451.06M

• Rating: 51 Neutral
• Price Target: $5.50 ▼(-0.36% Downside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is held back primarily by weak financial performance (multi-year net losses and historically high leverage), partly offset by positive cash flow resilience. Earnings-call commentary and guidance were meaningfully better (strong leasing/FFO momentum), while technicals are neutral and valuation is constrained by the negative P/E despite a moderate dividend yield.

Positive Factors

High gross margins and revenue expansion

Sustained high gross margins (~86%) alongside sharp revenue expansion indicate durable operating economics and pricing power in industrial leasing. This supports long-term NOI stability and cash conversion, helping absorb overhead and financing costs even if macro demand softens.

Scale, occupancy and long lease terms

Large, geographically diversified portfolio with high occupancy and a multi-year weighted-average lease term provides durable rental income visibility. Scale reduces single-asset sensitivity, and long leases embed rent escalations and lower tenant turnover over multiple quarters.

Management continuity with internal CEO promotion

Promoting an experienced internal executive preserves institutional knowledge and execution continuity. Given recent operational improvements under prior management, an insider CEO reduces transition risk and supports follow-through on leasing, hedging and balance-sheet actions.

Negative Factors

Historically very high leverage

Multi-year elevated leverage and declining equity reduce financial flexibility and magnify earnings volatility. High leverage increases refinancing, covenant and interest-rate vulnerability, limiting the company's ability to fund growth or weather downturns without asset sales or equity issuance.

Material tenant concentration

Heavy reliance on a few large tenants raises exposure to tenant-specific renewals, pricing negotiations and operational shifts. Concentration can lead to abrupt revenue swings if a major tenant restructures footprints or demands concessions, undermining long-term cash predictability.

JV refinancing timing and limited disposition optionality

A large JV floating loan requiring refinancing within a limited window creates execution and rate exposure. Coupled with only opportunistic dispositions, the company may face constrained liquidity options, higher refinance costs, or forced asset sales under unfavorable market conditions.

Industrial Logistics Properties Business Overview & Revenue Model

Company Description

ILPT 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 Money

ILPT generates revenue primarily through leasing its industrial properties to a diverse mix of tenants, including e-commerce companies, third-party logistics providers, and traditional retailers. The company's revenue model is built on long-term lease agreements, which typically include rent escalations and options for renewal, providing a stable income stream. Key revenue streams include rental income from its portfolio of industrial properties and ancillary income from services related to property management. Additionally, ILPT benefits from the growing demand for logistics and warehousing space driven by e-commerce growth, making it well-positioned to capitalize on current market trends. The company's strong relationships with tenants and its focus on acquiring strategically located properties further contribute to its earnings potential.

Industrial Logistics Properties Financial Statement Overview

Summary

Strong revenue growth and consistently high gross margin (~86%) are positives, and operating/free cash flow stayed positive with a sharp FCF rebound in 2025. Offsetting this, ILPT has multi-year net losses and the balance sheet shows historically very high leverage with declining equity, which elevates financial risk despite recent improvement signals.

Income Statement

Revenue has expanded sharply in recent years (notably strong growth in 2022 and again in 2025), and gross margin has stayed very high and stable (~86%), which is a clear operating strength. However, profitability has deteriorated meaningfully: net income has been negative from 2022–2025, and net margin remains firmly in the red despite some improvement versus 2022. The large EBITDA loss in 2025 also signals elevated non-core costs or charges that are weighing on reported earnings power.

Balance Sheet

Leverage is the key issue. Debt-to-equity was very high in 2022–2024 (roughly 5x–8x), and equity has trended down versus 2021, consistent with ongoing losses. Returns on equity have been negative from 2022–2025, highlighting weak value creation for shareholders over the period. The 2025 snapshot shows zero debt reported, but given the prior years’ consistently large debt balance, that figure looks like a data/structure change and reduces confidence in a clean leverage trend conclusion from the provided data.

Cash Flow

Cash generation has been more resilient than earnings: operating cash flow and free cash flow are positive across all years shown, with a particularly strong step-up in free cash flow in 2025 and solid cash flow in 2022. That said, cash flow has been volatile (very weak levels in 2023–2024 before rebounding), and in several loss years cash flow strength may not be fully sustainable if it reflects working-capital timing rather than durable improvement.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	448.85M	442.32M	437.34M	388.15M	219.87M
Gross Profit	56.72M	379.76M	377.29M	337.53M	189.74M
EBITDA	327.93M	322.19M	316.75M	147.16M	165.26M
Net Income	-66.19M	-95.67M	-107.99M	-226.72M	119.68M
Balance Sheet
Total Assets	5.19B	5.41B	5.56B	5.68B	1.91B
Cash, Cash Equivalents and Short-Term Investments	183.03M	131.71M	112.34M	48.26M	29.40M
Total Debt	4.22B	4.32B	4.32B	4.27B	840.56M
Total Liabilities	4.29B	4.40B	4.40B	4.35B	870.52M
Stockholders Equity	489.70M	562.02M	669.95M	790.72M	1.04B
Cash Flow
Free Cash Flow	60.67M	1.96M	6.06M	65.52M	105.74M
Operating Cash Flow	60.67M	1.96M	6.06M	83.25M	110.65M
Investing Cash Flow	3.96M	16.42M	67.74M	-3.45B	22.88M
Financing Cash Flow	-124.08M	-21.63M	31.14M	3.47B	-126.96M

Industrial Logistics Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ILPT, the sentiment is Positive. The current price of 5.52 is below the 20-day moving average (MA) of 5.54, below the 50-day MA of 5.60, and above the 200-day MA of 5.23, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 63.09 is Neutral, neither overbought nor oversold. The STOCH value of 86.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ILPT.

Industrial Logistics Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STAG	71 Outperform	$7.41B	26.55	7.75%	4.02%	9.62%	31.08%
LXP	68 Neutral	$2.86B	26.66	5.45%	5.33%	6.98%	465.32%
FR	67 Neutral	$8.50B	33.34	9.27%	2.98%	9.66%	-23.17%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
REXR	64 Neutral	$8.61B	43.15	2.50%	4.30%	10.27%	15.25%
ILPT	51 Neutral	$387.25M	-5.94	-16.39%	2.20%	1.08%	14.30%

Industrial Logistics Properties Corporate Events

Industrial Logistics Properties Appoints New CEO

On December 8, 2025, Industrial Logistics Properties announced the appointment of Yael Duffy as a Managing Trustee and as President and Chief Executive Officer, effective January 1, 2026. Ms. Duffy, who has been with the company in various roles since 2019, will succeed Matthew P. Jordan, who resigned effective December 31, 2025. The company clarified that Mr. Jordan’s resignation was not due to any disagreements with the company’s operations or policies. Ms. Duffy’s appointment does not involve any special arrangements or relationships requiring disclosure.

The most recent analyst rating on (ILPT) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Industrial Logistics Properties stock, see the ILPT Stock Forecast page.