Net Loss Attributable to Common Shareholders of $(0.10) Per Share

Normalized FFO Attributable to Common Shareholders of $0.42 Per Share

Same Property Cash Basis NOI Increased by 3.1% Compared to the Same Period Last Year

Closed Acquisition of Monmouth Real Estate Investment Corporation

Completed 885,000 Square Feet of Leasing for 27.9% Higher Rents

Industrial Logistics Properties Trust (Nasdaq: ILPT) today announced its financial results for the quarter ended March 31, 2022.

Yael Duffy, President and Chief Operating Officer of ILPT, made the following statement:

“We achieved a significant milestone for our company with the acquisition of Monmouth Real Estate Investment Corporation (MNR), which has enhanced our scale with increased tenant and geographic diversity. With the integration efforts completed, we are now focused on selling an additional equity interest in our newly formed joint venture consisting of 95 properties as well as divesting of 30 former MNR properties. We remain confident that these activities will be successful and will significantly reduce ILPT’s leverage before year end 2022.

The attractive operating environment and persistent demand for industrial assets continued to support solid leasing activity, robust leasing spreads and strong portfolio occupancy at ILPT. During the first quarter, we entered new and renewal leases and completed rent resets for approximately 885,000 square feet at weighted average rental rates that were 27.9% higher than prior rental rates for the same space. Same property occupancy increased on both a sequential and a year over year basis to 99.3%. While increased financing costs weighed on ILPT’s GAAP results and Normalized FFO, our portfolio performed well with same property cash basis NOI growth of 3.1% compared to the same period last year.”

Quarterly Results:

• Net loss attributable to common shareholders of $(6.5) million, or $(0.10) per share.
• Normalized funds from operations, or Normalized FFO, attributable to common shareholders of approximately $27.6 million, or $0.42 per share.

Reconciliations of net income (loss) attributable to common shareholders determined in accordance with U.S. generally accepted accounting principles, or GAAP, to funds from operations, or FFO, attributable to common shareholders and Normalized FFO attributable to common shareholders for the quarters ended March 31, 2022 and 2021 appear later in this press release. Further, reconciliations of net income (loss) determined in accordance with GAAP to earnings before interest, taxes, depreciation and amortization, or EBITDA, EBITDA for real estate, or EBITDAre, and Adjusted EBITDAre for the quarters ended March 31, 2022 and 2021 appear later in this press release. Reconciliations of net income (loss) determined in accordance with GAAP to net operating income, or NOI, and Cash Basis NOI, and a reconciliation of NOI to same property NOI and calculation of same property Cash Basis NOI for the quarters ended March 31, 2022 and 2021, also appear later in this press release.

Investing and Financing Activities:

• In February 2022, ILPT completed its previously announced acquisition of Monmouth Real Estate Investment Corporation, or MNR, for $21.00 per MNR share in an all-cash transaction, valued at approximately $3.8 billion, including committed property acquisitions, transaction costs and the assumption of approximately $323 million of existing MNR mortgage debt. The MNR portfolio, including two committed, but not yet completed, property acquisitions, included 126 Class A, single tenant, net leased, e-commerce focused industrial properties containing over 26 million rentable square feet with a weighted average remaining lease term of approximately eight years.
• Immediately following the closing of the MNR acquisition, ILPT entered into a new joint venture arrangement with an institutional investor for 95 MNR properties, including two committed, but not yet completed, property acquisitions. The investor acquired a 39% non-controlling equity interest in the joint venture from ILPT for approximately $587 million, and ILPT retained a 61% equity interest in the joint venture. The joint venture also entered into a $1.4 billion floating rate CMBS loan secured by 82 of the MNR properties and assumed $323 million of existing MNR mortgage debt secured by 11 properties.
• ILPT used the proceeds from the sale of equity interest in the joint venture to partially fund the MNR acquisition. ILPT funded its equity interest in the joint venture and the balance of the MNR purchase price with proceeds from a $700 million fixed rate CMBS loan secured by 17 properties and proceeds from a $1.4 billion bridge loan facility secured by 109 properties.
• In connection with the closing of the MNR acquisition, ILPT terminated the agreement governing its $750 million revolving credit facility that had been scheduled to expire in June 2022.

Conference Call:

On Wednesday, April 27, 2022 at 10:00 a.m. Eastern Time, Yael Duffy, President and Chief Operating Officer, and Richard Siedel, Chief Financial Officer and Treasurer, will host a conference call to discuss ILPT’s first quarter 2022 financial results.

The conference call telephone number is (877) 418-4826. Participants calling from outside the United States and Canada should dial (412) 902-6758. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through 11:59 p.m. on Wednesday, May 4, 2022. To access the replay, dial (412) 317-0088. The replay pass code is 7290774.

A live audio webcast of the conference call will also be available in a listen-only mode on ILPT’s website, at www.ilptreit.com. Participants wanting to access the webcast should visit ILPT’s website about five minutes before the call. The archived webcast will be available for replay on ILPT’s website following the call for about one week. The transcription, recording and retransmission in any way of ILPT’s first quarter conference call are strictly prohibited without the prior written consent of ILPT.

Supplemental Data:

A copy of ILPT’s First Quarter 2022 Supplemental Operating and Financial Data is available for download at ILPT’s website, which is located at www.ilptreit.com. ILPT’s website is not incorporated as part of this press release.

Industrial Logistics Properties Trust (Nasdaq: ILPT) is a real estate investment trust, or REIT, focused on owning and leasing high quality distribution and logistics properties that serve the growing needs of e-commerce. As of March 31, 2022, ILPT’s portfolio consisted of 412 properties containing approximately 59.7 million rentable square feet located in 39 states. More than 77.3% of ILPT’s annual rental revenues are derived from investment grade tenants, tenants that are subsidiaries of investment grade rated entities or Hawaii land leases. ILPT is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with more than $37 billion in assets under management as of March 31, 2022 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. ILPT is headquartered in Newton, MA. For more information, visit www.ilptreit.com.

Non-GAAP Financial Measures:

ILPT presents certain “non-GAAP financial measures” within the meaning of applicable rules of the Securities and Exchange Commission, or SEC, including FFO attributable to common shareholders, Normalized FFO attributable to common shareholders, EBITDA, EBITDAre, Adjusted EBITDAre, NOI, Cash Basis NOI, same property NOI and same property Cash Basis NOI for the three months ended March 31, 2022 and 2021. These measures do not represent cash generated by operating activities in accordance with GAAP and should not be considered alternatives to net income (loss) or net income (loss) attributable to common shareholders as indicators of ILPT’s operating performance or as measures of ILPT’s liquidity. These measures should be considered in conjunction with net income (loss) and net income (loss) attributable to common shareholders as presented in ILPT’s condensed consolidated statements of income. ILPT considers these non-GAAP measures to be appropriate supplemental measures of operating performance for a REIT, along with net income (loss) and net income (loss) attributable to common shareholders. ILPT believes these measures provide useful information to investors because by excluding the effects of certain historical amounts, such as depreciation and amortization expense, they may facilitate a comparison of ILPT’s operating performance between periods and with other REITs and, in the case of NOI and Cash Basis NOI, reflecting only those income and expense items that are generated and incurred at the property level may help both investors and management to understand the operations of ILPT’s properties.

Please see the pages attached hereto for a more detailed statement of ILPT’s operating results and financial condition and for an explanation of ILPT’s calculation of FFO attributable to common shareholders and Normalized FFO attributable to common shareholders, EBITDA, EBITDAre, Adjusted EBITDAre, NOI, Cash Basis NOI, same property NOI and same property Cash Basis NOI and reconciliations of those amounts to amounts determined in accordance with GAAP.

Warning Concerning Forward-Looking Statements

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Whenever ILPT uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and negatives or derivatives of these or similar expressions, ILPT is making forward-looking statements. These forward-looking statements are based upon ILPT’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by ILPT’s forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond ILPT’s control. For example:

• Ms. Duffy’s statements that ILPT’s acquisition of MNR has enhanced ILPT’s scale with increased tenant and geographic diversity may imply that ILPT will realize the benefits it expects from this acquisition. However, ILPT’s business is subject to various risks, and as a result, it may not realize the benefits it expects,
• Ms. Duffy states that ILPT is focused on selling an additional equity interest in ILPT’s newly formed joint venture as well as divesting 30 former MNR properties, and that ILPT remains confident these activities will be successful and will significantly reduce ILPT’s leverage before year end 2022. However, ILPT may elect not to pursue the sale of any additional equity interests. In addition, the sales of such properties depend on the economic and market conditions and such sales may not occur on a timely basis or on terms ILPT expects or at all. ILPT may not realize the sales prices it targets for any of these sales and it may be unable to reduce its leverage to its target level before year end 2022 or at all, and
• Ms. Duffy states that the attractive operating environment and persistent demand for industrial assets continued to support solid leasing activity, robust leasing spreads and strong portfolio occupancy, which may imply that these conditions will continue and that ILPT will achieve similar or better leasing activity and results in the future. However, these market conditions may not continue and could decline including due to inflation, or economic slowdown or otherwise. Further, ILPT’s business is subject to various risks, and its leasing activity and occupancy depend on various factors, including the timing of lease expirations, leasing demand at ILPT’s properties, ILPT’s ability to successfully compete for tenants and other economic and market conditions. As a result, ILPT may not achieve similar or better results in the future and these results may worsen.

The information contained in ILPT’s filings with the SEC, including under “Risk Factors” in ILPT’s periodic reports, or incorporated therein, identifies important factors that could cause ILPT’s actual results to differ materially from those stated in or implied by ILPT’s forward-looking statements. ILPT’s filings with the SEC are available on the SEC’s website at www.sec.gov.

You should not place undue reliance upon forward-looking statements.

Except as required by law, ILPT does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.

A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.

No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.

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