Industrial Logistics Properties Trust (ILPT) Nareit REITweek: 2025 Investor Conference summary

Portfolio overview and market positioning

• Owns 411 industrial and logistics properties across 39 states, totaling nearly 60 million sq ft, with 95% occupancy and a 7.8-year weighted average lease term.

• Hawaii portfolio is a key differentiator, comprising 226 properties and 16.7 million sq ft, accounting for 28% of annualized revenues.

• Hawaii assets are primarily ground leases in premier locations, benefiting from scarcity of industrial-zoned land and strong rent growth on lease expirations.

• 61% stake in Mountain Industrial JV (94 properties, 21 million sq ft, nearly 100% leased, 6.5-year WALT) acquired via Monmouth REIT in 2022.

• 76% of revenues come from investment-grade tenants or secure Hawaii land leases, supporting portfolio stability.

Hawaii portfolio dynamics

• Two main concentrations: near Honolulu CBD/airport/seaport (ground leases) and a heavy industrial zone further out.

• Tenants build and finance improvements on leased land, with banks incentivized to avoid defaults.

• Minimal operating costs as tenants cover insurance, taxes, and improvements; pure profit model.

• Scarcity of industrial land drives demand and allows for rapid tenant replacement with minimal downtime.

• Rent reset structure historically led to 60%-80% roll-ups every 10 years; now shifting to annual increases for steadier growth.

Leasing, tenant retention, and market trends

• Focused on tenant retention, maximizing mark-to-market rent growth, and filling vacancies.

• Largest tenants are FedEx (29% of revenue) and Amazon (just under 7%).

• Portfolio less sensitive to tariff volatility due to geographic focus and long lease terms; tenants increasingly opting to renew.

• Two notable vacancies: a 2.2 million sq ft undeveloped Hawaii parcel (0.7% of revenue) and a 535,000 sq ft Indianapolis property.

• Both vacancies impact occupancy but have limited effect on NOI; proposals out to energy sector tenants for Hawaii site.