Industrial Logistics Properties Trust (ILPT) Q4 2025 earnings summary

Executive summary

• Achieved record quarterly leasing volume in Q4 2025, executing nearly 4 million sq ft at a 25.7% rent roll-up, with 94.5% occupancy and strong tenant retention, marking the fifth consecutive quarter of double-digit rent growth.

• Normalized FFO grew 113% year-over-year, and same property cash basis NOI increased 5.2%, highlighting portfolio strength.

• Total shareholder return exceeded 55% in 2025, ranking third among all U.S. REITs and outperforming the industrial sector benchmark.

• Portfolio comprised 409 properties across 39 states, totaling 59.6 million sq ft, with a weighted average lease term of seven years.

• 76% of annualized rental revenues as of December 31, 2025, are from investment grade tenants, subsidiaries of investment grade entities, or Hawaii land leases.

Financial highlights

• Q4 normalized FFO was $18.9 million ($0.29/share), up 9% sequentially and 113% year-over-year; Adjusted EBITDA totaled $85.1 million.

• Same property NOI reached $88.2 million; same property cash basis NOI was $85.7 million, both increasing year-over-year and sequentially.

• Interest expense decreased by $8.4 million (11.7%) year-over-year due to lower debt and improved rates.

• Recognized $14.6 million of earnings from an unconsolidated joint venture due to increased real estate fair value.

• Net loss attributable to common shareholders was $1.8 million ($0.03 per diluted share) for Q4 2025.

Outlook and guidance

• Q1 2026 normalized FFO expected between $0.29-$0.31 per share; Adjusted EBITDA between $84-$85 million.

• Interest expense for Q1 forecasted at $61.5 million, including $4.5 million non-cash amortization.

• Leasing pipeline of 6.4 million sq ft, with 3.8 million sq ft in advanced negotiations.

• Rent roll-ups expected to average 20% on the mainland and 30% in Hawaii.

• Entering 2026 with a robust leasing pipeline and opportunities to further strengthen the balance sheet.