Industrial Logistics Properties Trust (ILPT) Nareit REITweek: 2026 Investor Conference summary

Portfolio overview and performance

• Owns 409 properties across 39 states, totaling about 60 million square feet, with 95% leased and a weighted average lease term of just under 7.5 years.

• Hawaii portfolio includes 226 properties, mostly ground leased, with minimal operating expenses and significant rent roll-ups due to unique long-term lease structures.

• Largest tenants are FedEx (20% of revenue) and Amazon (just under 7%).

• Mountain Industrial joint venture comprises 94 properties, 100% leased, and 21 million square feet.

• Ranked among the top three best-performing REITs, trending as the second best this year.

Hawaii market and leasing dynamics

• Hawaii industrial land is scarce, with most land zoned for conservation; commercial land is a single-digit percentage.

• Rent resets every 10 years have historically led to 30%-60% rent increases; moving toward annual rent escalations for stability.

• Hawaii vacancy rate is under 1%, enabling quick backfilling and 20%-30% rent roll-ups when tenants default.

• Largest industrial landlord in Hawaii apart from the government.

Balance sheet and financing strategy

• Fixed $1.235 billion of floating rate debt in 2025, reducing interest expense and volatility.

• In May, refinanced $1.4 billion of floating rate debt and $200 million of amortizing debt into $1.62 billion of fixed rate, interest-only debt, freeing up $20 million in cash.

• Weighted average interest rate is now 5.48%, with next maturity in 2029; total consolidated debt is $4.2 billion.

• Exploring bringing in a second partner for the Mountain Industrial JV to help de-lever.