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Industrial Logistics Properties Trust (ILPT)
NASDAQ:ILPT
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Industrial Logistics Properties (ILPT) AI Stock Analysis

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ILPT

Industrial Logistics Properties

(NASDAQ:ILPT)

Rating:60Neutral
Price Target:
$5.50
▲(2.42%Upside)
Industrial Logistics Properties' overall score is driven by a positive earnings call and successful corporate events, counterbalanced by significant financial challenges. The company's strategic refinancing efforts and leasing performance are strong positives, but high leverage and negative profitability metrics weigh heavily on the score.
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. SPDR S&P 500 ETF (SPY)

Industrial Logistics Properties Business Overview & Revenue Model

Company DescriptionIndustrial Logistics Properties Trust (ILPT) is a real estate investment trust (REIT) focused on owning and leasing industrial and logistics properties. The company specializes in acquiring and managing high-quality industrial facilities, primarily in major distribution hubs across the United States. ILPT's portfolio includes warehouses, distribution centers, and other properties essential for supply chain operations, catering to a diverse range of tenants in the logistics and e-commerce sectors.
How the Company Makes MoneyILPT generates revenue primarily through leasing its industrial and logistics properties to tenants, which include e-commerce companies, third-party logistics providers, and other businesses requiring substantial warehouse and distribution space. The company's earnings are derived from rental income, which is structured through long-term lease agreements. These leases often feature annual rent escalations and renewal options that contribute to stable and predictable cash flows. Additionally, ILPT may engage in strategic acquisitions or divestitures of properties to optimize its portfolio and enhance shareholder value. The trust also benefits from its strategic focus on high-demand industrial markets, positioning it favorably to capitalize on trends such as the growth of e-commerce and the increasing complexity of supply chain logistics.

Industrial Logistics Properties Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q2-2025)
|
% Change Since: -2.72%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook with strong financial performance, successful refinancing efforts, and increased dividends. However, concerns remain regarding high debt levels and limited property sales. Overall, the company's progress and strategic initiatives indicate a positive sentiment.
Q2-2025 Updates
Positive Updates
Increase in Normalized FFO
Normalized FFO increased by 54% year-over-year, reaching $13.8 million or $0.21 per share, at the high end of guidance.
Successful Debt Refinancing
Refinanced $1.235 billion of floating rate debt into $1.16 billion of fixed rate debt, reducing the interest rate from 6.7% to 6.4%, resulting in expected annual cash savings of $8.5 million.
Increase in Quarterly Dividend
Quarterly dividend increased from $0.01 per share to $0.05 per share, reflecting improved financial performance.
Strong Leasing Performance
Executed 171,000 square feet of leasing with a 21.1% increase in rental rates compared to prior rates, and a tenant retention rate of 86%.
High Occupancy Rate
Maintained a high occupancy rate of 94.3%, exceeding the national industrial average by 170 basis points.
Negative Updates
High Debt Levels
Net debt to total assets ratio increased slightly to 69.9%, with a net debt coverage ratio remaining high at 12x.
Limited Property Sales
Only one property was classified as held for sale, with no additional properties currently in the works for disposition.
Company Guidance
In the second quarter of 2025, Industrial Logistics Properties Trust (ILPT) reported a significant improvement in its financial metrics, demonstrating robust growth and strategic progress. The company achieved a 2.1% increase in cash basis net operating income (NOI) compared to the previous year and a notable 54% year-over-year rise in normalized funds from operations (FFO). ILPT successfully refinanced $1.235 billion of floating rate debt into $1.16 billion of fixed rate debt, reducing its interest rate from 6.7% to 6.4% and achieving annual cash savings of approximately $8.5 million. The company also increased its quarterly dividend from $0.01 to $0.05 per share. As of June 30, 2025, ILPT's portfolio comprised 411 properties totaling 60 million square feet, with a weighted average lease term of 7.6 years and an occupancy rate of 94.3%, surpassing the national industrial average by 170 basis points. The company executed 171,000 square feet of leasing at a 21.1% increase over prior rental rates and maintained a high tenant retention rate of 86%. Looking ahead, ILPT aims to enhance its balance sheet by evaluating asset sales and refinancing opportunities, while continuing to drive leasing activity and rental growth.

Industrial Logistics Properties Financial Statement Overview

Summary
ILPT shows a mixed financial performance. While there is positive revenue growth and healthy EBIT margins, the company struggles with profitability due to negative net income and EBITDA margins. The balance sheet shows reduced leverage but declining equity, indicating a need for improved financial health.
Income Statement
55
Neutral
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
60
Neutral
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.
Cash Flow
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue443.47M442.32M437.34M388.15M219.87M254.57M
Gross Profit382.10M379.76M377.00M337.53M189.74M219.39M
EBITDA190.00M310.76M307.93M276.46M154.34M179.17M
Net Income-91.93M-95.67M-107.99M-293.92M78.76M82.07M
Balance Sheet
Total Assets5.24B5.41B5.56B5.68B1.91B1.92B
Cash, Cash Equivalents and Short-Term Investments159.06M242.48M112.34M48.26M29.40M22.83M
Total Debt0.004.32B4.32B4.27B840.56M881.21M
Total Liabilities4.29B4.40B4.40B4.35B870.52M912.55M
Stockholders Equity519.11M562.02M669.95M790.72M1.04B1.00B
Cash Flow
Free Cash Flow12.90M1.96M6.06M65.52M105.74M108.71M
Operating Cash Flow12.90M1.96M6.06M83.25M110.65M114.56M
Investing Cash Flow6.00M16.42M67.74M-3.45B22.88M-4.52M
Financing Cash Flow-118.41M-21.63M31.14M3.47B-126.96M-121.76M

Industrial Logistics Properties Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.37
Price Trends
50DMA
4.44
Positive
100DMA
3.76
Positive
200DMA
3.74
Positive
Market Momentum
MACD
0.27
Positive
RSI
57.97
Neutral
STOCH
37.35
Neutral
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 5.37 is above the 20-day moving average (MA) of 5.35, above the 50-day MA of 4.44, and above the 200-day MA of 3.74, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 57.97 is Neutral, neither overbought nor oversold. The STOCH value of 37.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$662.49M4.7226.05%6.67%-3.48%615.20%
75
Outperform
$6.65B23.8210.33%3.40%9.66%-4.60%
74
Outperform
$8.65B27.173.74%4.64%13.66%11.34%
71
Outperform
$6.54B27.176.89%4.32%8.56%22.20%
64
Neutral
$2.30B28.044.15%6.89%6.64%210.89%
63
Neutral
C$1.74B1.48-7.95%5.21%5.45%-25.47%
60
Neutral
$356.22M-16.16%1.49%0.36%11.92%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ILPT
Industrial Logistics Properties
5.37
0.51
10.49%
STAG
Stag Industrial
34.39
-4.29
-11.09%
FR
First Industrial Realty
47.88
-4.25
-8.15%
LXP
LXP Industrial Trust
7.75
-1.63
-17.38%
REXR
Rexford Industrial Realty
35.92
-11.22
-23.80%
PLYM
Plymouth Industrial Reit
14.39
-8.23
-36.38%

Industrial Logistics Properties Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Industrial Logistics Properties Secures $1.16 Billion Loan
Positive
Jul 1, 2025

On June 26, 2025, Industrial Logistics Properties secured a $1.16 billion loan from a consortium of lenders, including Citi Real Estate Funding Inc. and Bank of America, among others. The loan, which is secured by 101 properties, bears a fixed interest rate of 6.399% and matures in July 2030. The company used the proceeds to repay a $1.235 billion floating rate loan and terminated the associated agreements without penalty. This refinancing effort is part of the company’s strategic financial management, potentially impacting its financial stability and relationships with major financial institutions.

The most recent analyst rating on (ILPT) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Industrial Logistics Properties stock, see the ILPT Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Industrial Logistics Properties Highlights Strategic Focus
Neutral
Jun 2, 2025

On June 2, 2025, Industrial Logistics Properties Trust released an investor presentation highlighting its strategic focus and financial health. The presentation emphasized ILPT’s strong occupancy rate of 95% and its geographic diversity, with a notable presence in Hawaii. The company’s next debt maturity is in 2027, and it has $108 million in cash on hand. The presentation also addressed potential risks and uncertainties affecting the company, including market conditions, tenant renewals, and economic factors.

The most recent analyst rating on (ILPT) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Industrial Logistics Properties stock, see the ILPT Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Industrial Logistics Elects Trustees at Annual Meeting
Neutral
May 30, 2025

At the Company’s annual meeting of shareholders on May 28, 2025, Industrial Logistics Properties elected seven Trustees to its Board for a one-year term. Additionally, shareholders approved a non-binding advisory resolution on executive compensation and ratified Deloitte & Touche LLP as the independent auditors for the 2025 fiscal year.

The most recent analyst rating on (ILPT) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Industrial Logistics Properties stock, see the ILPT Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 01, 2025