Twelfth Property is 100% Leased to Amazon
ILPT Received Additional Proceeds of $26 Million, Bringing the Total Proceeds to Approximately $108 Million, and Owns a 61% Equity Stake in the 12 Property Joint Venture
Sold 39% Joint Venture Equity Interest at a 5.8% GAAP Capitalization Rate
Industrial Logistics Properties Trust (Nasdaq: ILPT) today announced that it has closed on the twelfth and final property included in its previously announced $680 million joint venture with an Asian institutional investor. The property is 100% leased to Amazon. The investor contributed approximately $26 million for this twelfth property in addition to the approximately $82 million contributed for the initial 11 properties last month. The investor owns a 39% equity interest in the joint venture and ILPT owns the remaining 61% equity interest in the joint venture. The joint venture also assumed approximately $57 million of existing secured debt on this twelfth property in addition to $350 million of secured debt on the initial 11 properties.
ILPT expects to use the proceeds from this transaction to reduce outstanding borrowings under its $750 million unsecured revolving credit facility.
The 12 industrial properties contain an aggregate 9.2 million square feet and are located in nine states. As of December 31, 2019, these properties were 100% leased for a weighted average remaining lease term (by annualized rental income) of 7.5 years.
John Murray, President and Chief Executive Officer of ILPT, made the following statement:
"We are pleased to announce the closing of the twelfth and final property included in our first joint venture transaction. With the current uncertain market conditions, we want to reaffirm with our stakeholders that we remain dedicated to executing on our business strategies to find opportunities for potential growth and value enhancement at ILPT."
Industrial Logistics Properties Trust is a real estate investment trust, or REIT, that owns and leases industrial and logistics properties throughout the United States. ILPT is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, MA.
WARNING CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon ILPT’s present beliefs and expectations, but these statements and the implications of these statements are not guaranteed to occur and may not occur for various reasons, some of which are beyond ILPT’s control. For example:
- Mr. Murray’s statement that ILPT remains dedicated to executing on its business strategies to find opportunities for potential growth and value enhancement may imply that ILPT will be successful in executing on its business strategies despite the current uncertain market conditions, including as a result of the impacts of the COVID-19 pandemic. However, if the current market conditions remain uncertain, or if market conditions worsen, ILPT may not be able to successfully execute on its business strategies or find opportunities for potential growth and value enhancement at ILPT until market conditions improve or otherwise.
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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.
Olivia Snyder, Manager, Investor Relations