1 Industrial Logistics Properties Trust Second Quarter 2024 Financial Results and Supplemental Information July 30, 2024 Exhibit 99.2 1901 Meadowville Tech Pkwy Chester, VA 1,016,281 Square Feet ILPT Ownership 100%
2Q2 2024RETURN TO TABLE OF CONTENTS QUARTERLY RESULTS Industrial Logistics Properties Trust Announces Second Quarter 2024 Financial Results .................................................................... 4 Second Quarter 2024 Highlights ...................................................................................................................................................................... 5 FINANCIALS Key Financial Data ............................................................................................................................................................................................... 7 Condensed Consolidated Statements of Income (Loss) .............................................................................................................................. 8 Condensed Consolidated Balance Sheets ..................................................................................................................................................... 9 Debt Summary .................................................................................................................................................................................................... 10 Debt Maturity Schedule ...................................................................................................................................................................................... 11 Leverage and Coverage Ratios ......................................................................................................................................................................... 12 Capital Expenditures Summary ......................................................................................................................................................................... 13 PORTFOLIO INFORMATION Same Property Results ........................................................................................................................................................................................ 15 Occupancy and Leasing Summary ................................................................................................................................................................... 16 Tenant Credit Characteristics and Concentration ......................................................................................................................................... 17 Portfolio Lease Expiration and Reset Schedules ........................................................................................................................................... 18 Key Financial Data by Investment Portfolio .................................................................................................................................................... 19 JOINT VENTURES Consolidated Joint Venture - Mountain Industrial REIT LLC ....................................................................................................................... 21 - 24 Unconsolidated Joint Venture - The Industrial Fund REIT LLC ................................................................................................................... 25 APPENDIX Calculation and Reconciliation of NOI and Cash Basis NOI ........................................................................................................................ 27 Reconciliation of NOI to Same Property NOI and Calculation of Same Property Cash Basis NOI ...................................................... 28 Calculation of EBITDA, EBITDAre and Adjusted EBITDAre ......................................................................................................................... 29 Calculation of FFO, Normalized FFO and CAD ............................................................................................................................................. 30 - 31 Company Profile, Research Coverage and Governance Information ....................................................................................................... 32 Non-GAAP Financial Measures and Certain Definitions .............................................................................................................................. 33 - 35 WARNING CONCERNING FORWARD-LOOKING STATEMENTS 36 Table of Contents All amounts in this presentation are unaudited. Please refer to Non-GAAP Financial Measures and Certain Definitions for terms used throughout this document. Trading Symbols: Common Shares: ILPT Investor Relations Contact Kevin Brady, Director (617) 231-3017 kevin.brady@ilptreit.com Corporate Headquarters Two Newton Place 255 Washington Street, Suite 300 Newton, Massachusetts 02458-1634
3Q2 2024RETURN TO TABLE OF CONTENTS Quarterly Results
4Q2 2024RETURN TO TABLE OF CONTENTS “Operating results for ILPT's second quarter remained strong as we executed 628,000 square feet of new and renewal leases at weighted average rental rates that were 15.8% higher than prior rental rates for the same space and saw same property cash basis NOI grow by 2.6% compared to the same period last year. As we head into the second half of 2024, we believe there is continued opportunity to generate organic cash flow growth and reduce leverage, which has declined to 11.9x from 12.7x over the last year. Accordingly, we are focused on tenant retention, maximizing mark to market rent growth opportunities and managing operating expenses.” Yael Duffy President and Chief Operating Officer INDUSTRIAL LOGISTICS PROPERTIES TRUST ANNOUNCES SECOND QUARTER 2024 FINANCIAL RESULTS Newton, MA (July 30, 2024): Industrial Logistics Properties Trust (Nasdaq: ILPT) today announced its financial results for the quarter ended June 30, 2024. Distribution On July 11, 2024, ILPT declared a quarterly distribution on its common shares of $0.01 per share to shareholders of record as of the close of business on July 22, 2024. This distribution will be paid on or about August 15, 2024. Conference Call A conference call to discuss ILPT's second quarter results will be held on Wednesday, July 31, 2024 at 10:00 a.m. Eastern Time. The conference call may be accessed by dialing (877) 418-4826 or (412) 902-6758 (if calling from outside the United States and Canada); a pass code is not required. A replay of the conference call will be available for one week by dialing (412) 317-0088; the replay pass code is 4118140. 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. The archived webcast will be available for replay on ILPT’s website after the call. The transcription, recording and retransmission in any way of ILPT's second quarter conference call are strictly prohibited without the prior written consent of ILPT. About Industrial Logistics Properties Trust ILPT is a real estate investment trust, or REIT, focused on owning and leasing high quality industrial and logistics properties. As of June 30, 2024, ILPT’s portfolio consisted of 411 properties containing approximately 59.9 million rentable square feet located in 39 states. Approximately 77% of ILPT’s annualized rental revenues as of June 30, 2024 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 over $41 billion in assets under management as of June 30, 2024 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.
5Q2 2024RETURN TO TABLE OF CONTENTS Portfolio Update • Executed approximately 628,000 square feet of total leasing at weighted average rental rates that were 15.8% higher than prior rental rates for the same space. • Cash flows remain stable, as approximately 77% of annualized rental revenues are generated from leases with investment grade tenants (or their subsidiaries) and Hawaii land leases with a weighted average lease term (by annualized rental revenues) of 7.9 years. • Occupancy decreased by 3.6% from the prior quarter to 95.4%, primarily due to a vacated Hawaii property, representing approximately 2,238,000 square feet and 0.7% of total annualized rental revenues. Financial Results • Net loss attributable to common shareholders was $23.2 million, or $0.35 per diluted share. • Normalized FFO attributable to common shareholders was $9.0 million, or $0.14 per diluted share. • Adjusted EBITDAre increased by 4.6% to $85.1 million compared to the second quarter of 2023. • Same property NOI and same property Cash Basis NOI increased by 2.2% and 2.6%, respectively, compared to the second quarter of 2023. Financing and Liquidity • As of July 30, 2024, ILPT intends to exercise the first of its three, one year options to extend the maturity date of its $1.2 billion floating rate loan. • ILPT had approximately $258.6 million of cash and restricted cash. • Leverage ratio decreased to 11.9x from 12.7x compared to the second quarter of 2023. Second Quarter 2024 Highlights (As of and for the three months ended June 30, 2024, unless otherwise noted)
6Q2 2024RETURN TO TABLE OF CONTENTS Financials
7Q2 2024RETURN TO TABLE OF CONTENTS As of and for the Three Months Ended As of 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 Selected Income Statement Data: Capitalization: Rental income $ 110,621 $ 112,235 $ 108,895 $ 110,142 $ 108,043 Total common shares 65,992,509 Net loss $ (33,479) $ (33,902) $ (41,402) $ (36,191) $ (36,580) Closing price $ 3.68 Net loss attributable to common shareholders $ (23,175) $ (23,403) $ (31,240) $ (26,112) $ (25,828) Equity market capitalization $ 242,852 NOI $ 86,265 $ 86,052 $ 84,887 $ 85,309 $ 84,424 Debt 4,316,970 Cash Basis NOI $ 82,935 $ 82,196 $ 81,453 $ 81,643 $ 80,827 Total market capitalization $ 4,559,822 Adjusted EBITDAre $ 85,057 $ 84,400 $ 83,072 $ 83,194 $ 81,331 FFO attributable to common shareholders $ 8,965 $ 9,450 $ 7,799 $ 7,945 $ 7,375 Liquidity: Normalized FFO attributable to common shareholders $ 8,965 $ 9,450 $ 8,086 $ 7,945 $ 7,594 Cash and cash equivalents $ 146,150 CAD attributable to common shareholders $ 14,005 $ 11,928 $ 8,948 $ 10,505 $ 9,803 Total liquidity $ 146,150 Rolling four quarter CAD attributable to common shareholders $ 45,386 $ 41,184 $ 39,438 $ 35,238 $ 33,023 Per Common Share Data (basic and diluted): Net loss attributable to common shareholders $ (0.35) $ (0.36) $ (0.48) $ (0.40) $ (0.40) FFO attributable to common shareholders $ 0.14 $ 0.14 $ 0.12 $ 0.12 $ 0.11 Normalized FFO attributable to common shareholders $ 0.14 $ 0.14 $ 0.12 $ 0.12 $ 0.12 CAD attributable to common shareholders $ 0.21 $ 0.18 $ 0.14 $ 0.16 $ 0.15 Rolling four quarter CAD attributable to common shareholders $ 0.69 $ 0.63 $ 0.60 $ 0.54 $ 0.51 Dividends: Annualized dividends paid per share $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.04 Annualized dividend yield (at end of period) 1.1% 0.9% 0.9% 1.4% 1.2% Annualized Normalized FFO attributable to common shareholders payout ratio 7.1% 7.1% 8.3% 8.3% 8.3% CAD attributable to common shareholders payout ratio 4.8% 5.6% 7.1% 6.3% 6.7% Rolling four quarter CAD attributable to common shareholders payout ratio 5.8% 6.3% 6.7% 7.4% 7.8% Selected Balance Sheet Data: Total gross assets $ 5,950,348 $ 5,956,536 $ 5,961,129 $ 6,000,494 $ 5,997,715 Total assets $ 5,489,822 $ 5,527,569 $ 5,563,675 $ 5,634,315 $ 5,662,080 Total liabilities $ 4,402,055 $ 4,405,069 $ 4,401,896 $ 4,416,177 $ 4,400,791 Total equity $ 1,087,767 $ 1,122,500 $ 1,161,779 $ 1,218,138 $ 1,261,289 (dollars in thousands, except per share data) Key Financial Data 55 Commerce Ave Albany, NY 125,000 Square Feet ILPT Ownership: 100%
8Q2 2024RETURN TO TABLE OF CONTENTS Condensed Consolidated Statements of Income (Loss) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Rental income $ 110,621 $ 108,043 $ 222,856 $ 218,301 Expenses: Real estate taxes 15,149 15,100 31,010 31,567 Other operating expenses 9,207 8,519 19,529 17,837 Depreciation and amortization 43,421 44,909 86,998 90,366 General and administrative 7,939 8,131 15,628 16,038 Loss on impairment of real estate — 254 — 254 Total expenses 75,716 76,913 153,165 156,062 Interest income 2,935 1,797 5,787 2,943 Interest expense (73,631) (71,846) (146,861) (142,617) Loss on sale of real estate — — — (974) Loss on early extinguishment of debt — (359) — (359) Loss before income taxes and equity in earnings of unconsolidated joint venture (35,791) (39,278) (71,383) (78,768) Income tax expense (36) (45) (69) (62) Equity in earnings of unconsolidated joint venture 2,348 2,743 4,071 6,704 Net loss (33,479) (36,580) (67,381) (72,126) Net loss attributable to noncontrolling interest 10,304 10,752 20,803 21,489 Net loss attributable to common shareholders $ (23,175) $ (25,828) $ (46,578) $ (50,637) Weighted average common shares outstanding (basic and diluted) 65,626 65,369 65,591 65,339 Net loss per share attributable to common shareholders (basic and diluted) $ (0.35) $ (0.40) $ (0.71) $ (0.77) (amounts in thousands, except per share data) 700 Hudson Road Griffin, GA 218,120 Square Feet ILPT Ownership: 61%
9Q2 2024RETURN TO TABLE OF CONTENTS Condensed Consolidated Balance Sheets June 30, December 31, 2024 2023 ASSETS Real estate properties $ 5,173,408 $ 5,169,552 Accumulated depreciation (460,526) (397,454) Total real estate properties, net 4,712,882 4,772,098 Investment in unconsolidated joint venture 117,451 115,360 Acquired real estate leases, net 219,975 243,521 Cash and cash equivalents 146,150 112,341 Restricted cash and cash equivalents 112,419 133,382 Rents receivable 118,173 119,170 Other assets, net 62,772 67,803 Total assets $ 5,489,822 $ 5,563,675 LIABILITIES AND EQUITY Mortgages and notes payable, net $ 4,306,586 $ 4,305,941 Accounts payable and other liabilities 74,021 72,455 Assumed real estate lease obligations, net 16,692 18,534 Due to related persons 4,756 4,966 Total liabilities 4,402,055 4,401,896 Commitments and contingencies Equity attributable to common shareholders 618,328 669,954 Noncontrolling interest 469,439 491,825 Total equity 1,087,767 1,161,779 Total liabilities and equity $ 5,489,822 $ 5,563,675 (dollars in thousands) 200 Orange Point Drive Lewis Center, OH 125,060 Square Feet ILPT Ownership: 100%
10Q2 2024RETURN TO TABLE OF CONTENTS (1) Interest rates reflect the impact of interest rate caps, as applicable. (2) This loan has three, one year extension options, subject to the satisfaction of certain conditions, and requires that interest be paid at an annual rate of SOFR plus a weighted average premium of 3.93%. ILPT purchased an interest rate cap through October 2024 with a SOFR strike rate equal to 2.25%. (3) This loan has two remaining one year extension options, subject to the satisfaction of certain conditions, and requires that interest be paid at an annual rate of SOFR plus a premium of 2.77%. Mountain JV purchased an interest rate cap through March 2025 with a SOFR strike rate equal to 3.04%. Interest Principal Maturity Years to Entity Type Secured By Rate (1) Balance Date Maturity ILPT Floating rate - interest only (2) 69 mainland and 35 Hawaii properties 6.18% $ 1,235,000 10/09/2024 0.3 ILPT Fixed rate - interest only 186 Hawaii properties 4.31% 650,000 02/07/2029 4.6 ILPT Fixed rate - interest only 17 mainland properties 4.42% 700,000 03/09/2032 7.7 Mountain JV Floating rate - interest only (3) 82 mainland properties 5.81% 1,400,000 03/09/2025 0.7 Mountain JV Fixed rate - interest only Four mainland properties 6.25% 91,000 06/10/2030 5.9 Mountain JV Fixed rate - amortizing One mainland property 3.67% 10,706 05/01/2031 6.8 Mountain JV Fixed rate - amortizing One mainland property 4.14% 12,283 07/01/2032 8.0 Mountain JV Fixed rate - amortizing One mainland property 4.02% 27,423 10/01/2033 9.3 Mountain JV Fixed rate - amortizing One mainland property 4.13% 38,369 11/01/2033 9.3 Mountain JV Fixed rate - amortizing One mainland property 3.10% 23,542 06/01/2035 10.9 Mountain JV Fixed rate - amortizing One mainland property 2.95% 38,043 01/01/2036 11.5 Mountain JV Fixed rate - amortizing One mainland property 4.27% 42,683 11/01/2037 13.3 Mountain JV Fixed rate - amortizing One mainland property 3.25% 47,921 01/01/2038 13.5 Weighted average / total 5.35% $ 4,316,970 3.0 Debt Summary (dollars in thousands) As of June 30, 2024 158 West Yard Road Feura Bush, NY 354,000 Square Feet ILPT Ownership: 100%
11Q2 2024RETURN TO TABLE OF CONTENTS (1) This secured floating rate loan matures in March 2025, subject to two remaining one year extension options. (2) This secured floating rate loan matures in October 2024, subject to three, one year extension options. Debt Maturity Schedule (dollars in millions) As of June 30, 2024 Current Maturity Date Pr in ci p al $1,235.0 $1,400.0$9.1 $18.8 $19.5 $20.2 $21.0 $1,593.4 Secured fixed rate debt Secured floating rate debt of consolidated joint venture Secured floating rate debt 2024 2025 2026 2027 2028 Thereafter (1) (2) 9860 West Buckeye Road Tolleson, AZ 288,045 Square Feet ILPT Ownership: 100%
12Q2 2024RETURN TO TABLE OF CONTENTS As of and for the Three Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Leverage Ratios: Net debt / total gross assets 68.2% 68.6% 68.4% 68.5% 68.8% Net debt / gross book value of real estate assets 71.2% 71.7% 71.3% 71.7% 72.2% Net debt / total market capitalization 89.0% 88.7% 88.0% 90.9% 90.6% Secured debt / total assets 78.6% 78.2% 77.8% 76.9% 76.6% Variable rate debt / net debt 64.9% 64.5% 64.6% 64.1% 63.9% Coverage Ratios: Net debt / annualized Adjusted EBITDAre 11.9x 12.1x 12.3x 12.3x 12.7x Adjusted EBITDAre / interest expense 1.2x 1.2x 1.1x 1.1x 1.1x Leverage and Coverage Ratios 945 Monument Drive Lebanon, IN 962,500 Square Feet ILPT Ownership: 22%
13Q2 2024RETURN TO TABLE OF CONTENTS (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 06/30/2024 06/30/2023 Tenant improvements $ 142 $ 444 $ 1,423 $ 194 $ 1,221 $ 586 $ 1,699 Leasing costs 184 2,127 1,196 1,047 1,277 2,311 2,839 Building improvements 2,506 802 2,406 2,720 1,283 3,308 1,653 Recurring capital expenditures 2,832 3,373 5,025 3,961 3,781 6,205 6,191 Development, redevelopment and other activities — — 381 1,314 3,870 — 6,391 Total capital expenditures $ 2,832 $ 3,373 $ 5,406 $ 5,275 $ 7,651 $ 6,205 $ 12,582 Capital Expenditures Summary 955 Aeroplaza Drive Colorado Springs, CO 125,060 Square Feet ILPT Ownership: 100%
14Q2 2024RETURN TO TABLE OF CONTENTS Portfolio Information
15Q2 2024RETURN TO TABLE OF CONTENTS (dollars and sq. ft. in thousands) As of and for the Three Months Ended As of and for the Six Months Ended 6/30/2024 6/30/2023 6/30/2024 6/30/2023 Properties 411 411 411 411 Square feet (1) 59,893 59,951 59,893 59,951 Percent leased 95.4% 99.1% 95.4% 99.1% Rental income $ 110,621 $ 108,001 $ 222,856 $ 218,196 NOI $ 86,265 $ 84,400 $ 172,350 $ 168,827 NOI % change 2.2% 2.1% Cash Basis NOI $ 82,935 $ 80,804 $ 165,164 $ 161,199 Cash Basis NOI % change 2.6% 2.5% Same Property Results (1) Subject to modest adjustments when space is remeasured or reconfigured for new tenants and when land leases are converted to building leases. 7409 Magi Drive Hanahan, SC 91,776 Square Feet ILPT Ownership: 100%
16Q2 2024RETURN TO TABLE OF CONTENTS (dollars and sq. ft. in thousands, except per sq. ft. data) As of and for the As of and for the Three Months Ended Six Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 Properties 411 411 411 413 413 411 Total sq. ft. 59,893 59,893 59,951 59,983 59,983 59,893 Percentage leased 95.4% 99.0% 98.8% 98.9% 99.1% 95.4% Leasing Activity (Sq. Ft.): New leases 73 90 276 64 494 163 Renewals 555 1,785 1,220 694 1,091 2,340 Rent resets — 106 38 — 382 106 Expirations (2,832) (1,811) (1,563) (857) (1,363) (4,643) % Change in GAAP Rent: New leases 43.5% 48.1% 65.9% (15.7%) 36.5% 46.0% Renewals 11.2% 38.5% 16.2% 16.9% 25.5% 28.7% Rent resets —% 27.5% 28.0% —% 29.9% 27.5% Weighted average (by sq. ft.) 15.8% 38.3% 19.7% 13.5% 29.6% 30.5% Leasing Costs and Concession Commitments: New leases $ 587 $ 717 $ 1,528 $ 140 $ 2,920 $ 1,304 Renewals 290 2,754 2,122 1,301 975 3,044 Total $ 877 $ 3,471 $ 3,650 $ 1,441 $ 3,895 $ 4,348 Leasing Costs and Concession Commitments per Sq. Ft.: New leases $ 8.03 $ 7.96 $ 5.53 $ 2.21 $ 5.91 $ 7.99 Renewals $ 0.52 $ 1.54 $ 1.74 $ 1.87 $ 0.89 $ 1.30 Weighted average $ 1.40 $ 1.85 $ 2.44 $ 1.90 $ 2.46 $ 1.74 Weighted Average Lease Term by Sq. Ft. (Years): New leases 14.6 19.4 3.9 4.9 11.6 17.2 Renewals 5.8 5.6 7.3 4.0 7.7 5.6 Weighted average 6.8 6.2 6.7 4.1 8.9 6.4 Leasing Costs and Concession Commitments per Sq. Ft. per Year: New leases $ 0.55 $ 0.41 $ 1.41 $ 0.45 $ 0.51 $ 0.46 Renewals $ 0.09 $ 0.28 $ 0.24 $ 0.47 $ 0.12 $ 0.23 Weighted average $ 0.21 $ 0.30 $ 0.37 $ 0.46 $ 0.28 $ 0.27 Occupancy and Leasing Summary (1) (1) The leasing summary is based on leases entered into during the periods indicated.
17Q2 2024RETURN TO TABLE OF CONTENTS As of June 30, 2024 % of Total Annualized Tenant Credit Characteristics Rental Revenues Investment grade rated 18.5% Subsidiaries of investment grade rated parent entities 37.1% Other leased Hawaii lands 20.9% Subtotal investment grade rated, subsidiaries of investment grade rated parent entities and other leased Hawaii lands 76.5% Other unrated or non-investment grade 23.5% 100.0% Tenant Credit Characteristics and Concentration % of Total Annualized No. of Leased % of Total Rental Tenants with 1% or More of Total Annualized Rental Revenues States Properties Sq. Ft. Leased Sq. Ft. Revenues 1 FedEx Corporation / FedEx Ground Package System, Inc. Various (33 States) 79 12,815 22.4% 29.0% 2 Amazon.com Services, Inc. / Amazon.com Services LLC AL, IN, OK, SC, TN, VA 8 4,539 7.9% 6.8% 3 Home Depot U.S.A., Inc. GA, HI 2 956 1.7% 2.2% 4 American Tire Distributors, Inc. CO, LA, NE, NY, OH 5 722 1.3% 1.6% 5 UPS Supply Chain Solutions, Inc. NH, NY 3 794 1.4% 1.5% 6 Restoration Hardware, Inc. MD 1 1,195 2.1% 1.5% 7 Servco Pacific, Inc. HI 7 629 1.1% 1.4% 8 DHL Group SC 1 945 1.7% 1.2% 9 TD SYNNEX Corporation OH 2 939 1.6% 1.1% 10 Berkshire Hathaway Inc. GA 1 832 1.5% 1.0% 11 Techtronic Industries Company Limited MS 1 862 1.5% 1.0% 110 25,228 44.2% 48.3% (dollars and sq. ft. in thousands) 22525 West 167th Street Olathe, KS 313,763 Square Feet ILPT Ownership: 61%
18Q2 2024RETURN TO TABLE OF CONTENTS Cumulative Cumulative % of Total % of Total % of Total % of Total Leased Leased Leased Annualized Annualized Annualized No. of Square Feet Square Feet Square Feet Rental Revenues Rental Revenues Rental Revenues Year Leases Expiring Expiring Expiring Expiring Expiring Expiring 2024 17 1,342 2.3% 2.3% $ 13,798 3.1% 3.1% 2025 32 4,201 7.4% 9.7% 25,908 5.9% 9.0% 2026 33 4,178 7.3% 17.0% 29,781 6.8% 15.8% 2027 39 8,759 15.3% 32.3% 53,676 12.2% 28.0% 2028 42 6,156 10.8% 43.1% 45,866 10.4% 38.4% Thereafter 224 32,473 56.9% 100.0% 269,974 61.6% 100.0% Total 387 57,109 100.0% $ 439,003 100.0% Weighted average remaining lease term (years) 7.1 7.9 Portfolio Lease Expiration and Reset Schedules (dollars and sq. ft. in thousands) As of June 30, 2024 Scheduled Rent Resets at Hawaii Properties: 2024 2025 2026 2027 2028 Thereafter Total Reset sq. ft. — 204 154 86 — 2,940 3,384 Percent (1) —% 1.4% 1.1% 0.6% —% 20.4% Annualized rental revenues $ — $ 1,002 $ 1,315 $ 795 $ — $ 19,632 $ 22,744 Percent (1) —% 0.8% 1.1% 0.7% —% 16.2% (1) Percent based on leased square feet and annualized rental revenues at Hawaii properties, excluding leased square feet and annualized rental revenues attributable to mainland properties. 3150 Highway 42 Locust Grove, GA 657,518 Square Feet ILPT Ownership: 61%
19Q2 2024RETURN TO TABLE OF CONTENTS (dollars and sq. ft. in thousands, except per sq. ft. data) Key Financial Data by Investment Portfolio As of and for the Three Months Ended June 30, 2024 ILPT Wholly Owned Properties Mountain Industrial ILPT Mainland Hawaii Total REIT LLC (1) Other (2) Consolidated Ownership % 100% 100% 100% 61% Properties 90 226 316 94 1 411 Sq. ft. 22,119 16,729 38,848 20,981 64 59,893 Occupancy % 98.9% 86.1% 93.4% 99.0% 100.0% 95.4% Selected Balance Sheet Data: Total gross assets $ 1,801,767 $ 722,541 $ 2,524,308 $ 3,147,390 $ 278,650 $ 5,950,348 Total debt (principal) $ 1,722,070 $ 862,930 $ 2,585,000 $ 1,731,970 $ — $ 4,316,970 Selected Income Statement Data: Rental income $ 38,223 $ 30,052 $ 68,275 $ 42,012 $ 334 $ 110,621 Net (loss) income $ (18,955) $ 8,319 $ (10,636) $ (26,451) $ 3,608 $ (33,479) Net (loss) income attributable to common shareholders $ (18,955) $ 8,319 $ (10,636) $ (16,136) $ 3,597 $ (23,175) NOI $ 30,405 $ 22,072 $ 52,477 $ 33,586 $ 202 $ 86,265 Cash Basis NOI $ 29,418 $ 20,771 $ 50,189 $ 32,544 $ 202 $ 82,935 Adjusted EBITDAre $ 27,830 $ 21,031 $ 48,861 $ 30,958 $ 5,238 $ 85,057 Normalized FFO attributable to common shareholders $ (3,006) $ 9,048 $ 6,042 $ 74 $ 2,849 $ 8,965 CAD attributable to common shareholders $ 1,333 $ 9,194 $ 10,527 $ 191 $ 3,287 $ 14,005 Key Ratios: Annualized Cash Basis NOI / total gross assets 6.5% 11.5% 8.0% 4.1% 5.6% Net debt / annualized Adjusted EBITDAre 15.4x 10.3x 13.2x 13.1x 11.9x Select Quarterly Leasing Activity: Leasing activity (sq. ft.): 432 196 628 — — 628 % change in GAAP rent (weighted average by sq. ft.): 9.6% 23.8% 15.8% —% —% 15.8% Weighted average lease term by sq. ft. (years): 4.6 11.6 6.8 — — 6.8 (1) With the exception of measures attributable to common shareholders, amounts shown reflect 100% ownership interest of this joint venture, not ILPT's proportionate share thereof. Amounts presented are derived from GAAP information and may not be comparable to amounts reflected in this joint venture's standalone financial information. (2) Other includes data for: 100% of the ownership interest of one consolidated mainland property containing approximately 64 rentable square feet located in New Jersey in which ILPT has a 67% ownership interest attributable to common shareholders; any corporate assets and liabilities including ILPT's equity investment in its unconsolidated joint venture; and adjustments to remove the noncontrolling interest of Mountain JV from the balance sheet and income statement data.
20Q2 2024RETURN TO TABLE OF CONTENTS Joint Ventures
21Q2 2024RETURN TO TABLE OF CONTENTS GA: 12.5% TX: 10.2% OH: 9.9% IN: 8.5% NC: 5.9% FL: 5.1%MI: 4.7% NJ: 3.9% IL: 3.8% MS: 3.6% KS: 3.6% 16 Other States: 28.3% Consolidated Joint Venture - Mountain Industrial REIT LLC (dollars in thousands) Number of Leases Expiring 1 7 12 13 7 41 % of Total Annualized Rental Revenues Expiring 1.4% 7.1% 6.5% 13.4% 10.5% 61.1% A nn ua liz ed R ev en ue s Ex p ir in g 2024 2025 2026 2027 2028 Thereafter $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 Lease Expiration Schedule As of June 30, 2024 Major Tenants % of Annualized Rental Top 10 Tenants Revenues FedEx Corporation / FedEx Ground Package System, Inc. 56.2% Amazon.com Services, Inc. / Amazon.com Services LLC 7.1% Home Depot U.S.A., Inc. 3.8% Berkshire Hathaway Inc. 2.8% Techtronic Industries Company Limited 2.6% Ulta Beauty, Inc. 2.5% Autoneum Holding AG 2.4% DSV Solutions Holding A/S 1.6% Beam Suntory Inc. 1.4% Treehouse Foods, Inc. 1.4% Geographic Diversification (1) (1) Based on the aggregate annualized rental revenues of ILPT's consolidated joint venture as of June 30, 2024.
22Q2 2024RETURN TO TABLE OF CONTENTS (dollars and sq. ft. in thousands) ILPT Number of Square Joint Venture Ownership Presentation Properties States Feet Mountain Industrial REIT LLC 61% Consolidated 94 27 20,981 (1) Amounts shown in the balance sheet reflect 100% ownership interest of this joint venture, not ILPT's proportionate share thereof unless otherwise stated. (2) ILPT's proportionate share of the principal amount of debt based on its ownership percentage of Mountain JV as of June 30, 2024 is $1,056,502. None of the debt is recourse to ILPT, subject to certain limitations. As of June 30, 2024 Consolidated Balance Sheets to the Consolidated Joint Venture (1) June 30, 2024 December 31, 2023 ASSETS Real estate properties $ 2,841,507 $ 2,840,142 Accumulated depreciation (183,125) (143,757) Total real estate properties, net 2,658,382 2,696,385 Acquired real estate leases, net 149,386 163,307 Cash, cash equivalents and restricted cash 110,598 131,159 Other assets, net 45,899 35,343 Total assets $ 2,964,265 $ 3,026,194 LIABILITIES Mortgage and notes payable, net (2) $ 1,731,019 $ 1,736,426 Other liabilities 38,480 37,954 Total liabilities $ 1,769,499 $ 1,774,380 Noncontrolling interest (39%) $ 465,571 $ 488,012 5440 Haggerty Lane Lafayette, IN 350,418 Square Feet ILPT Ownership: 61% Consolidated Joint Venture - Mountain Industrial REIT LLC
23Q2 2024RETURN TO TABLE OF CONTENTS Operating Information of the Consolidated Joint Venture (100%) Pro-Rata Operating Information of the Consolidated Joint Venture (ILPT Share) (1) Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 2024 2023 2024 2023 Rental income $ 42,012 $ 41,207 $ 84,375 $ 84,273 $ 25,627 $ 25,137 $ 51,468 $ 51,407 Real estate taxes 5,070 5,934 10,733 12,999 3,093 3,619 6,547 7,929 Other operating expenses 3,356 2,799 7,264 5,877 2,047 1,707 4,431 3,585 Depreciation and amortization 26,573 27,348 53,256 54,925 16,210 16,681 32,487 33,505 General and administrative 3,906 4,027 7,981 8,118 2,383 2,456 4,869 4,952 Total expenses 38,905 40,108 79,234 81,919 23,733 24,463 48,334 49,971 Interest income 1,278 1,128 2,708 1,815 780 688 1,652 1,107 Interest expense (30,812) (29,197) (61,205) (57,669) (18,795) (17,810) (37,335) (35,178) Loss on sale of real estate — — — (974) — — — (594) Loss before income taxes (26,427) (26,970) (53,356) (54,474) (16,121) (16,448) (32,549) (33,229) Loss on early extinguishment of debt — (359) — (359) — (219) — (219) Income tax expense (24) (34) (48) (48) (15) (20) (30) (29) Net loss $ (26,451) $ (27,363) $ (53,404) $ (54,881) $ (16,136) $ (16,687) $ (32,579) $ (33,477) Net loss $ (26,451) $ (27,363) $ (53,404) $ (54,881) $ (16,136) $ (16,687) $ (32,579) $ (33,477) Plus: depreciation and amortization 26,573 27,348 53,256 54,925 16,210 16,681 32,487 33,505 Plus: loss on sale of real estate — — — 974 — — — 594 FFO 122 (15) (148) 1,018 74 (6) (92) 622 Plus: loss on early extinguishment of debt — 359 — 359 — 219 — 219 Normalized FFO $ 122 $ 344 $ (148) $ 1,377 $ 74 $ 213 $ (92) $ 841 (dollars in thousands) (1) See page 34 for more information regarding Pro-Rata Operating Information of Consolidated Joint Venture. Consolidated Joint Venture - Mountain Industrial REIT LLC
24Q2 2024RETURN TO TABLE OF CONTENTS Operating Information of the Consolidated Joint Venture (100%) Pro-Rata Operating Information of the Consolidated Joint Venture (ILPT Share) (1) Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 2024 2023 2024 2023 Normalized FFO $ 122 $ 344 $ (148) $ 1,377 $ 74 $ 213 $ (92) $ 841 Plus: non-cash interest expense 6,628 4,133 11,759 8,253 4,043 2,521 7,173 5,034 Minus: non-cash revenues (1,043) (1,122) (2,349) (2,304) (636) (684) (1,433) (1,405) Minus: recurring capital expenditures (886) (2,509) (1,375) (3,702) (540) (1,530) (838) (2,258) Minus: principal amortization (4,508) (5,168) (8,974) (10,698) (2,750) (3,152) (5,474) (6,526) CAD $ 313 $ (4,322) $ (1,087) $ (7,074) $ 191 $ (2,632) $ (664) $ (4,314) Net loss $ (26,451) $ (27,363) $ (53,404) $ (54,881) $ (16,136) $ (16,687) $ (32,579) $ (33,477) Plus: interest expense 30,812 29,197 61,205 57,669 18,795 17,810 37,335 35,178 Plus: income tax expense 24 34 48 48 15 20 30 29 Plus: depreciation and amortization 26,573 27,348 53,256 54,925 16,210 16,681 32,487 33,505 EBITDA 30,958 29,216 61,105 57,761 18,884 17,824 37,273 35,235 Plus: loss on sale of real estate — — — 974 — — — 594 EBITDAre 30,958 29,216 61,105 58,735 18,884 17,824 37,273 35,829 Plus: loss on early extinguishment of debt — 359 — 359 — 219 — 219 Adjusted EBITDAre $ 30,958 $ 29,575 $ 61,105 $ 59,094 $ 18,884 $ 18,043 $ 37,273 $ 36,048 (dollars in thousands) (1) See page 34 for more information regarding Pro-Rata Operating Information of Consolidated Joint Venture. Consolidated Joint Venture - Mountain Industrial REIT LLC
25Q2 2024RETURN TO TABLE OF CONTENTS Unconsolidated Joint Venture - The Industrial Fund REIT LLC (1) As of June 30, 2024 ILPT Number of Square Investment in Joint Venture Ownership Properties States Feet Joint Venture The Industrial Fund REIT LLC 22% 18 12 11,726 $ 117,451 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Rental income $ 18,395 $ 17,141 $ 37,420 $ 34,552 Real estate taxes 2,617 2,554 5,334 5,008 Other operating expenses 1,898 1,761 4,416 3,922 Depreciation and amortization 7,738 8,004 15,540 16,250 General and administrative 1,004 821 1,994 1,806 Total expenses 13,257 13,140 27,284 26,986 Interest income 175 151 312 215 Interest expense (6,300) (5,325) (12,602) (10,522) Loss before income taxes (987) (1,173) (2,154) (2,741) Income tax expense (4) (4) (9) (9) Net loss $ (991) $ (1,177) $ (2,163) $ (2,750) Distributions received (2) $ 990 $ 990 $ 1,980 $ 1,980 Type Secured by Interest Rate Maturity Date Principal Balance Fixed rate - interest only One Mainland Property 6.96% 11/01/2028 $ 65,000 Floating rate - interest only (3) Six Mainland Properties 5.30% 10/01/2027 123,700 Fixed rate - interest only 11 Mainland Properties 3.33% 11/07/2029 350,000 Weighted average / total 4.22% $ 538,700 (1) Amounts shown in the income statement and secured debt table reflect 100% ownership interest of this joint venture, not ILPT's proportionate share thereof. (2) Represents ILPT's distributions from this joint venture, including distributions of proceeds from this joint venture's financing activities, if any. (3) The $123,700 loan requires that interest be paid at an annual rate of SOFR plus a premium of 1.80% through October 1, 2027. The Industrial Fund REIT LLC has purchased an interest rate cap through October 2025 with a SOFR strike rate equal to 3.50%. (dollars and sq. ft. in thousands) 1800 Union Airpark Blvd Union, OH 1,791,246 Square Feet ILPT Ownership: 22%
26Q2 2024RETURN TO TABLE OF CONTENTS Appendix
27Q2 2024RETURN TO TABLE OF CONTENTS Calculation and Reconciliation of NOI and Cash Basis NOI (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 6/30/2023 Calculation of NOI and Cash Basis NOI: Rental income $ 110,621 $ 112,235 $ 108,895 $ 110,142 $ 108,043 $ 222,856 $ 218,301 Real estate taxes (15,149) (15,861) (13,560) (14,926) (15,100) (31,010) (31,567) Other operating expenses (9,207) (10,322) (10,448) (9,907) (8,519) (19,529) (17,837) NOI 86,265 86,052 84,887 85,309 84,424 172,317 168,897 Non-cash straight line rent adjustments included in rental income (2,952) (3,489) (3,068) (3,414) (3,355) (6,441) (7,117) Lease value amortization included in rental income (378) (367) (366) (252) (242) (745) (512) Cash Basis NOI $ 82,935 $ 82,196 $ 81,453 $ 81,643 $ 80,827 $ 165,131 $ 161,268 Reconciliation of net loss to NOI and Cash Basis NOI: Net loss $ (33,479) $ (33,902) $ (41,402) $ (36,191) $ (36,580) $ (67,381) $ (72,126) Equity in (earnings) losses of unconsolidated joint venture (2,348) (1,723) 6,521 (719) (2,743) (4,071) (6,704) Income tax expense (benefit) 36 33 (9) 51 45 69 62 Loss before income taxes and equity in earnings of unconsolidated joint venture (35,791) (35,592) (34,890) (36,859) (39,278) (71,383) (78,768) Loss on early extinguishment of debt — — — — 359 — 359 (Gain) loss on sale of real estate — — (2,684) — — — 974 Interest expense 73,631 73,230 72,979 72,941 71,846 146,861 142,617 Interest income (2,935) (2,852) (2,571) (2,397) (1,797) (5,787) (2,943) (Recovery) loss on impairment of real estate — — (98) — 254 — 254 Acquisition and other transaction related costs — — 287 — — — — General and administrative 7,939 7,689 7,414 7,712 8,131 15,628 16,038 Depreciation and amortization 43,421 43,577 44,450 43,912 44,909 86,998 90,366 NOI 86,265 86,052 84,887 85,309 84,424 172,317 168,897 Non-cash straight line rent adjustments included in rental income (2,952) (3,489) (3,068) (3,414) (3,355) (6,441) (7,117) Lease value amortization included in rental income (378) (367) (366) (252) (242) (745) (512) Cash Basis NOI $ 82,935 $ 82,196 $ 81,453 $ 81,643 $ 80,827 $ 165,131 $ 161,268
28Q2 2024RETURN TO TABLE OF CONTENTS Reconciliation of NOI to Same Property NOI and Calculation of Same Property Cash Basis NOI (dollars in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Reconciliation of NOI to Same Property NOI: Rental income $ 110,621 $ 108,043 $ 222,856 $ 218,301 Real estate taxes (15,149) (15,100) (31,010) (31,567) Other operating expenses (9,207) (8,519) (19,529) (17,837) NOI 86,265 84,424 172,317 168,897 Less: NOI of properties not included in same property results — (24) 33 (70) Same property NOI $ 86,265 $ 84,400 $ 172,350 $ 168,827 Calculation of Same Property Cash Basis NOI: Same property NOI $ 86,265 $ 84,400 $ 172,350 $ 168,827 Less: Non-cash straight line rent adjustments included in rental income (2,952) (3,355) (6,441) (7,116) Lease value amortization included in rental income (378) (241) (745) (512) Same property Cash Basis NOI $ 82,935 $ 80,804 $ 165,164 $ 161,199 1509 Leestown Road Frankfort, KY 599,840 Square Feet ILPT Ownership: 61%
29Q2 2024RETURN TO TABLE OF CONTENTS Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 6/30/2023 Net loss $ (33,479) $ (33,902) $ (41,402) $ (36,191) $ (36,580) $ (67,381) $ (72,126) Plus: interest expense 73,631 73,230 72,979 72,941 71,846 146,861 142,617 Plus: income tax expense (benefit) 36 33 (9) 51 45 69 62 Plus: depreciation and amortization 43,421 43,577 44,450 43,912 44,909 86,998 90,366 EBITDA 83,609 82,938 76,018 80,713 80,220 166,547 160,919 (Recovery) loss on impairment of real estate — — (98) — 254 — 254 (Gain) loss on sale of real estate — — (2,684) — — — 974 Equity in (earnings) losses of unconsolidated joint venture (2,348) (1,723) 6,521 (719) (2,743) (4,071) (6,704) Share of EBITDAre from unconsolidated joint venture 2,872 2,846 2,717 2,724 2,674 5,718 5,287 EBITDAre 84,133 84,061 82,474 82,718 80,405 168,194 160,730 Plus: acquisition and other transaction related costs — — 287 — — — — Plus: general and administrative expense paid in common shares (1) 924 339 311 476 567 1,263 954 Plus: loss on early extinguishment of debt — — — — 359 — 359 Adjusted EBITDAre $ 85,057 $ 84,400 $ 83,072 $ 83,194 $ 81,331 $ 169,457 $ 162,043 (1) Amounts represent equity based compensation to ILPT's trustees and officers and certain other employees of RMR.
30Q2 2024RETURN TO TABLE OF CONTENTS Calculation of FFO, Normalized FFO and CAD (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 6/30/2023 Net loss attributable to common shareholders $ (23,175) $ (23,403) $ (31,240) $ (26,112) $ (25,828) $ (46,578) $ (50,637) Equity in (earnings) losses of unconsolidated joint venture (2,348) (1,723) 6,521 (719) (2,743) (4,071) (6,704) (Gain) loss on sale of real estate — — (2,684) — — — 974 (Recovery) loss on impairment of real estate — — (98) — 254 — 254 Depreciation and amortization 43,421 43,577 44,450 43,912 44,909 86,998 90,366 Share of FFO from unconsolidated joint venture 1,484 1,459 1,367 1,446 1,502 2,943 2,970 FFO adjustments attributable to noncontrolling interest (10,417) (10,460) (10,517) (10,582) (10,719) (20,877) (21,932) FFO attributable to common shareholders 8,965 9,450 7,799 7,945 7,375 18,415 15,291 Loss on early extinguishment of debt — — — — 359 — 359 Acquisition, transaction related and certain other financing costs — — 287 — — — — Normalized FFO adjustments attributable to noncontrolling interest — — — — (140) — (140) Normalized FFO attributable to common shareholders $ 8,965 $ 9,450 $ 8,086 $ 7,945 $ 7,594 $ 18,415 $ 15,510
31Q2 2024RETURN TO TABLE OF CONTENTS (dollars and shares in thousands, except per share data) For the Three Months Ended For the Six Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 6/30/2023 Normalized FFO attributable to common shareholders $ 8,965 $ 9,450 $ 8,086 $ 7,945 $ 7,594 $ 18,415 $ 15,510 Plus (minus): Non-cash interest expense 15,355 13,859 12,883 12,884 12,861 29,214 25,714 Non-cash revenues (3,330) (3,856) (3,434) (3,666) (3,597) (7,186) (7,629) General and administrative expense paid in common shares (1) 924 339 311 476 567 1,263 954 Recurring capital expenditures (2,832) (3,373) (5,025) (3,961) (3,781) (6,205) (6,191) Principal amortization (4,508) (4,466) (4,425) (4,385) (5,168) (8,974) (10,698) Share of Normalized FFO from unconsolidated joint venture (1,484) (1,459) (1,367) (1,446) (1,502) (2,943) (2,970) Distributions from unconsolidated joint venture 990 990 990 990 990 1,980 1,980 CAD adjustments attributable to noncontrolling interest (75) 444 929 1,668 1,839 369 3,315 CAD attributable to common shareholders $ 14,005 $ 11,928 $ 8,948 $ 10,505 $ 9,803 $ 25,933 $ 19,985 Weighted average common shares outstanding (basic and diluted) 65,626 65,556 65,551 65,488 65,369 65,591 65,339 Per Common Share Data (basic and diluted): Net loss attributable to common shareholders $ (0.35) $ (0.36) $ (0.48) $ (0.40) $ (0.40) $ (0.71) $ (0.77) FFO attributable to common shareholders $ 0.14 $ 0.14 $ 0.12 $ 0.12 $ 0.11 $ 0.28 $ 0.23 Normalized FFO attributable to common shareholders $ 0.14 $ 0.14 $ 0.12 $ 0.12 $ 0.12 $ 0.28 $ 0.24 CAD attributable to common shareholders $ 0.21 $ 0.18 $ 0.14 $ 0.16 $ 0.15 $ 0.40 $ 0.31 (1) Amounts represent equity based compensation to ILPT's trustees and officers and certain other employees of RMR. Calculation of FFO, Normalized FFO and CAD
32Q2 2024RETURN TO TABLE OF CONTENTS Company Profile, Research Coverage and Governance Information The Company: ILPT is included in 144 market indices and comprises more than 1% of the following indices as of June 30, 2024: Invesco S&P SmallCap High Dividend Low Volatility ETF INAV Index (XSHDIV), Bloomberg US Micro Cap Real Estate Price Return Index (BMICR), Bloomberg Real Estate Investment Trust Small Cap Index (BBRESMLC) and Invesco KBW Premium Yield Equity REIT ETF INAV Index (KBWYIV). Management: ILPT is managed by The RMR Group (Nasdaq: RMR). RMR is an alternative asset management company that is focused on commercial real estate and related businesses. As of June 30, 2024, RMR had over $41 billion in assets under management and the combined RMR managed companies had more than $5 billion of annual revenues, approximately 2,000 properties and over 20,000 employees. ILPT believes that being managed by RMR is a competitive advantage for ILPT because of RMR’s depth of management and experience in the real estate industry. ILPT also believes RMR provides management services to it at a lower cost than it would have to pay for similar quality services if it were self managed. Board of Trustees Bruce M. Gans Lisa Harris Jones Matthew P. Jordan Lead Independent Trustee Independent Trustee Managing Trustee Joseph L. Morea Kevin C. Phelan Adam D. Portnoy Independent Trustee Independent Trustee Chair of the Board and Managing Trustee June S. Youngs Independent Trustee Executive Officers Yael Duffy Tiffany R. Sy Marc Krohn President and Chief Financial Officer Vice President Chief Operating Officer and Treasurer Equity Research Coverage B. Riley Securities, Inc. BTIG JMP Securities Bryan Maher Thomas Catherwood Mitchell Germain bmaher@brileyfin.com tcatherwood@btig.com mgermain@jmpsecurities.com (646) 885-5423 (212) 738-6140 (212) 906-3537 ILPT is followed by the analysts listed on this page. Please note that any opinions, estimates or forecasts regarding ILPT’s performance made by these analysts do not represent opinions, forecasts or predictions of ILPT or its management. ILPT does not by its reference above imply its endorsement of or concurrence with any information, conclusions or recommendations provided by any of these analysts.
33Q2 2024RETURN TO TABLE OF CONTENTS Unless otherwise noted, all data presented in this presentation excludes 18 properties, which are encumbered by $538.7 million of mortgage notes, owned by an unconsolidated joint venture in which ILPT owns a 22% equity interest. See page 25 for information regarding this joint venture and related mortgage notes. Non-GAAP Financial Measures: ILPT presents certain “non-GAAP financial measures” within the meaning of the applicable rules of the Securities and Exchange Commission, or the SEC, including FFO attributable to common shareholders, Normalized FFO attributable to common shareholders, EBITDA, EBITDAre, Adjusted EBITDAre, NOI, same property NOI, Cash Basis NOI and same property Cash Basis NOI. These measures do not represent cash generated by operating activities in accordance with GAAP and should not be considered alternatives to net loss or net loss attributable to common shareholders, as indicators of ILPT's operating performance or as measures of its liquidity. These measures should be considered in conjunction with net loss and net loss attributable to common shareholders as presented in ILPT's condensed consolidated statements of income (loss). ILPT considers these non-GAAP measures to be appropriate supplemental measures of operating performance for a REIT, along with net loss and net 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 its 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. NOI and Cash Basis NOI: The calculations of net operating income, or NOI, and Cash Basis NOI exclude certain components of net loss in order to provide results that are more closely related to ILPT's property level results of operations. ILPT calculates NOI and Cash Basis NOI as shown on page 27 and same property NOI and same property Cash Basis NOI as shown on page 28. ILPT defines NOI as income from its rental of real estate less its property operating expenses. NOI excludes depreciation and amortization expense. ILPT defines Cash Basis NOI as NOI excluding non-cash straight line rent adjustments, lease value amortization and lease termination fees, if any. ILPT uses NOI and Cash Basis NOI to evaluate individual and company-wide property level performance. ILPT calculates same property NOI and same property Cash Basis NOI in the same manner that it calculates the corresponding NOI and Cash Basis NOI amounts, except that ILPT only includes same properties in calculating same property NOI and same property Cash Basis NOI. Other real estate companies and REITs may calculate NOI and Cash Basis NOI differently than ILPT does. FFO and Normalized FFO Attributable to Common Shareholders: ILPT calculates funds from operations, or FFO, attributable to common shareholders and normalized funds from operations, or Normalized FFO, attributable to common shareholders as shown on page 30. FFO attributable to common shareholders is calculated on the basis defined by The National Association of Real Estate Investment Trusts, or Nareit, which is: (1) net loss attributable to common shareholders calculated in accordance with GAAP, excluding recovery or loss on impairment of real estate, any gain or loss on sale of real estate and equity in earnings or losses of unconsolidated joint venture; (2) plus real estate depreciation and amortization of ILPT's properties and ILPT's proportionate share of FFO from unconsolidated joint venture properties; (3) minus FFO adjustments attributable to noncontrolling interest; and (4) certain other adjustments currently not applicable to ILPT. In calculating Normalized FFO attributable to common shareholders, ILPT adjusts for certain non-recurring items shown on page 30, including adjustments for such items related to the unconsolidated joint venture, if any. FFO attributable to common shareholders and Normalized FFO attributable to common shareholders are among the factors considered by ILPT's Board of Trustees when determining the amount of distributions to its shareholders. Other factors include, but are not limited to, requirements to maintain ILPT's qualification for taxation as a REIT, limitations in the agreements governing its debt, the availability to ILPT of debt and equity capital, its distribution rate as a percentage of the trading price of ILPT's common shares, or dividend yield, and ILPT's dividend yield compared to the dividend yields of other industrial REITs, ILPT's expectation of its future capital requirements and operating performance and its expected needs for and availability of cash to pay its obligations. Other real estate companies and REITs may calculate FFO attributable to common shareholders and Normalized FFO attributable to common shareholders differently than ILPT does. Non-GAAP Financial Measures and Certain Definitions
34Q2 2024RETURN TO TABLE OF CONTENTS Non-GAAP Financial Measures and Certain Definitions (Continued) Cash Available for Distribution: ILPT calculates cash available for distribution, or CAD, as shown on page 31. ILPT defines CAD as Normalized FFO minus ILPT's proportionate share of Normalized FFO from unconsolidated joint venture properties, plus operating cash flow distributions received from ILPT's unconsolidated joint venture, recurring real estate related capital expenditures, adjustments for other non-cash and nonrecurring items, certain amounts excluded from Normalized FFO but settled in cash, minus CAD adjustments attributable to noncontrolling interest, as well as certain other adjustments currently not applicable to ILPT. CAD is among the factors considered by ILPT's Board of Trustees when determining the amount of distributions to ILPT's shareholders. Other real estate companies and REITs may calculate CAD differently than ILPT does. EBITDA, EBITDAre and Adjusted EBITDAre: ILPT calculates earnings before interest, taxes, depreciation and amortization, or EBITDA, EBITDA for real estate, or EBITDAre, and Adjusted EBITDAre as shown on page 29. EBITDAre is calculated on the basis defined by Nareit, which is EBITDA, including ILPT's proportionate share of EBITDAre from unconsolidated joint venture properties, and excluding any gain or loss on the sale of real estate, equity in earnings or losses of unconsolidated joint venture, recovery or loss on impairment of real estate, as well as certain other adjustments currently not applicable to ILPT. In calculating Adjusted EBITDAre, ILPT adjusts for the items shown on page 29. Other real estate companies and REITs may calculate EBITDA, EBITDAre and Adjusted EBITDAre differently than ILPT does. Pro-Rata Operating Information of Consolidated Joint Venture: ILPT believes this financial presentation of its joint venture information provides useful information to investors by providing additional insight into the financial performance of its consolidated joint venture, in which ILPT owns a 61% equity interest. This information may not accurately depict the impact of these investments in accordance with GAAP. Pro-rata information should not be considered in isolation or as a substitute for ILPT's condensed consolidated financial statements in accordance with GAAP. Certain Definitions: Annualized dividend yield - Annualized dividend yield is the annualized dividend paid during the applicable period divided by the closing price of ILPT's common shares at the end of the relevant period. Annualized rental revenues - Annualized rental revenues is the annualized contractual base rents from ILPT's tenants pursuant to its lease agreements as of the measurement date, including straight line rent adjustments and estimated recurring expense reimbursements to be paid to ILPT, and excluding lease value amortization. Building improvements - Building improvements generally include (i) expenditures to replace obsolete building components and (ii) expenditures that extend the useful life of existing assets. Development, redevelopment and other activities - Development, redevelopment and other activities generally include capital expenditures projects that (i) reposition a property or (ii) result in new sources of revenue. GAAP - GAAP refers to U.S. generally accepted accounting principles. Gross book value of real estate assets - Gross book value of real estate assets is real estate assets at cost, plus certain acquisition related costs, if any, before depreciation and purchase price allocations, if any. ILPT Ownership - References to ILPT's percentage ownership of properties owned by its joint ventures reflect ILPT's ownership percentage of the joint venture.
35Q2 2024RETURN TO TABLE OF CONTENTS ILPT Wholly Owned Properties - ILPT Wholly Owned Properties is comprised of 316 properties that are wholly owned by ILPT, including 226 buildings, leasable land parcels and easements containing approximately 16.7 million rentable square feet that are primarily industrial lands located on the island of Oahu, Hawaii, or the Hawaii Portfolio, and 90 properties containing approximately 22.1 million rentable square feet located in 34 other states, or the Mainland Portfolio. Information included in this presentation with respect to the Mainland Portfolio and the Hawaii Portfolio include certain allocations of interest expense on debts secured by properties in each portfolio and of general and administrative expense based upon gross asset value of properties in each portfolio. ILPT believes the information presented for these portfolios is useful to investors to provide insight into the financial performance of these portfolios. Leased square feet - Leased square feet is pursuant to existing leases as of June 30, 2024, and includes space being fitted out for occupancy, if any, and space which is leased but is not occupied. Leasing costs - Leasing costs include leasing related costs, such as brokerage commissions and tenant inducements. Leasing costs and concession commitments - Leasing costs and concession commitments include commitments made for leasing expenditures and concessions, such as tenant improvements, leasing commissions, tenant reimbursements and free rent. Mountain JV - Mountain Industrial REIT LLC, or Mountain JV, owns 94 mainland properties containing approximately 21.0 million rentable square feet located in 27 states. ILPT owns a 61% equity interest in this joint venture. ILPT consolidates 100% of this joint venture in its financial statements in accordance with GAAP. Net debt - Net debt is the total outstanding principal of ILPT's debt less cash and cash equivalents and restricted cash and cash equivalents. Non-cash interest expense - Non-cash interest expense includes the amortization of debt discounts, premiums, issuance costs and interest rate caps. Non-cash revenues - Non-cash revenues include lease value amortization and straight line rent adjustments, if any. n/m - Not meaningful. Percent change in GAAP rent - Percent change in GAAP rent is the percent change from prior rents charged for same space. Rents include estimated recurring expense reimbursements and exclude lease value amortization. Same space represents the same land area and building area (with leasing rates for vacant space based upon the most recent rental rate for the same space). Rentable square feet - Represents total square feet available for lease as of the measurement date. Square footage measurements are subject to changes when space is remeasured or reconfigured for new tenants. Rolling four quarter CAD - Represents CAD for the preceding twelve month period as of the respective quarter end date. Same property - For the three months ended June 30, 2024 and 2023, same property NOI and Cash Basis NOI are based on properties that ILPT owned as of June 30, 2024 and that it owned continuously since April 1, 2023, and exclude properties owned by an unconsolidated joint venture. For the six months ended June 30, 2024 and 2023, same property NOI and Cash Basis NOI are based on properties that ILPT owned as of June 30, 2024 and that it owned continuously since January 1, 2023, and exclude properties owned by an unconsolidated joint venture. SOFR - SOFR is the secured overnight financing rate. Tenant improvements - Tenant improvements include capital expenditures used to improve tenants' space or amounts paid directly to tenants to improve their space. Total gross assets - Total gross assets is total assets plus accumulated depreciation. Total market capitalization - Total market capitalization is the total principal amount of debt plus the market value of ILPT's common shares at the end of the applicable period. Non-GAAP Financial Measures and Certain Definitions (Continued)
36Q2 2024RETURN TO TABLE OF CONTENTS Warning Concerning Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws that are subject to risks and uncertainties. These statements may include words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and negatives or derivatives of these or similar expressions. These forward-looking statements include, among others, statements about: ILPT's organic cash flow growth; reduction of ILPT's leverage; quality and retention of ILPT’s tenants; ILPT's rent growth opportunities and management of operating expenses; debt maturities; ILPT's and/or Mountain JV's expected or potential exercise of their options to extend the maturity date of their respective loans; and ILPT’s capital expenditure plans and commitments. Forward-looking statements reflect ILPT’s current expectations, are based on judgments and assumptions, are inherently uncertain and are subject to risks, uncertainties and other factors, which could cause ILPT’s actual results, performance or achievements to differ materially from expected future results, performance or achievements expressed or implied in those forward-looking statements. Some of the risks, uncertainties and other factors that may cause its actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements include, but are not limited to, the following: ILPT’s ability to reduce its leverage, generate cash flow and take advantage of mark-to-market leasing opportunities; whether ILPT's tenants will renew or extend their leases or whether ILPT will obtain replacement tenants on terms as favorable to it as the terms of its existing leases; ILPT's ability to successfully compete for tenancies, the likelihood that the rents it realizes will increase when ILPT renews or extends its leases, enters new leases, or its rents reset at ILPT’s properties in Hawaii; ILPT’s ability to maintain high occupancy at its properties; ILPT's ability to cost-effectively raise and balance its use of debt or equity capital; ILPT’s ability to purchase cost effective interest rate caps; ILPT’s ability to pay interest on and principal of its debt; ILPT’s ability to maintain sufficient liquidity; demand for industrial and logistics properties; ILPT’s ability and the ability of its tenants to operate under unfavorable market and commercial real estate industry conditions, due to high interest rates, prolonged high inflation, labor market challenges, supply chain disruptions, emerging technologies, volatility in the public equity and debt markets, pandemics, geopolitical instability and tensions, economic downturns or a possible recession or changes in real estate utilization; whether the industrial and logistics sector and the extent to which ILPT's tenants' businesses are critical to sustaining a resilient supply chain and that ILPT's business will benefit as a result; ILPT’s tenants’ ability and willingness to pay their rent obligations to ILPT; the credit qualities of ILPT’s tenants; changes in the security of cash flows from ILPT’s properties; potential defaults of ILPT's leases by its tenants; ILPT's tenant and geographic concentrations; ILPT’s ability to pay distributions to its shareholders and to increase or sustain the amount of such distributions; ILPT’s ability to sell properties at prices it targets; ILPT’s ability to complete sales without delay, or at all, at existing agreement terms; ILPT’s ability to prudently pursue, and successfully and profitably complete, expansion and renovation projects at its properties and to realize its expected returns on those projects; ILPT’s expected capital expenditures and leasing costs, as well as risks and uncertainties regarding the development, redevelopment or repositioning of ILPT’s properties, including as a result of prolonged high inflation, cost overruns, supply chain challenges, labor shortages, construction delays or inability to obtain necessary permits; ILPT’s ability to lease space at these properties at targeted returns and volatility in the commercial real estate markets; ILPT’s ability to sell additional equity interests in, or contribute additional properties to, its existing joint ventures, to enter into additional real estate joint ventures or to attract co-venturers and benefit from its existing joint ventures or any real estate joint ventures ILPT may enter into; non-performance by the counterparties to ILPT's interest rate caps; the ability of ILPT’s manager, RMR, to successfully manage it; changes in environmental laws or in their interpretations or enforcement as a result of climate change or otherwise, or ILPT’s incurring environmental remediation costs or other liabilities; competition within the commercial real estate industry, particularly for industrial and logistics properties in those markets in which ILPT’s properties are located; compliance with, and changes to, federal, state and local laws and regulations, accounting rules, tax laws and similar matters; limitations imposed by and ILPT’s ability to satisfy complex rules to maintain its qualification for taxation as a REIT for U.S. federal income tax purposes; actual and potential conflicts of interest with ILPT’s related parties, including its managing trustees, RMR and others affiliated with them; acts of terrorism, outbreaks of pandemics or other public health safety events or conditions, war or other hostilities, global climate change or other manmade or natural disasters beyond ILPT's control; and other matters. These risks, uncertainties and other factors are not exhaustive and should be read in conjunction with other cautionary statements that are included in ILPT’s periodic filings. The information contained in ILPT’s filings with the SEC, including under the caption “Risk Factors” in ILPT’s periodic reports, or incorporated therein, identifies important factors that could cause differences from ILPT’s forward-looking statements in this presentation. ILPT’s filings with the SEC are available on the SEC’s website at www.sec.gov. You should not place undue reliance upon ILPT’s 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.
