Home Featured Industrial Logistics Properties Trust Reveals Two Portfolio Acquisitions Totaling $905.3M

Industrial Logistics Properties Trust Reveals Two Portfolio Acquisitions Totaling $905.3M

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Industrial Logistics Properties Trust recently revealed transactions to acquire two portfolios of industrial properties for an aggregate purchase price of $905.3 million, excluding acquisition related costs.

On February 14, 2019, ILPT agreed to acquire from an unrelated third party an eight-property portfolio located in the Indianapolis and Cincinnati market areas, with an aggregate of approximately 4.2 million square feet. The total purchase price of the portfolio was $280 million, excluding acquisition related costs, representing a GAAP capitalization rate of 6.0%.

On February 14, 2019, ILPT closed on seven of the eight properties and the purchase of the remaining property remains subject to due diligence and is expected to close within 60 days. The eight properties are 100% leased to 10 tenants and have a weighted average (by revenue) remaining lease term of more than four years, a weighted average (by square feet) building age of 13 years and a weighted average (by square feet) clear height of 34 feet. Investment grade rated tenants, including leading e-commerce companies, account for approximately 59% of the annualized rental revenues from this portfolio.

Also on February 14, 2019, ILPT entered an agreement to acquire from affiliates of Cole Office & Industrial REIT (CCIT II), Inc. a portfolio of 18 properties located in 12 states with an aggregate of approximately 8.7 million square feet. The total purchase price of the portfolio is $625.3 million, excluding acquisition related costs, representing a GAAP capitalization rate of 6.4%. This acquisition is subject to customary closing conditions and is expected to close within 60 days. The 18 properties are 100% leased to 13 tenants and have a weighted average (by revenue) remaining lease term of more than nine years, a weighted average (by square feet) building age of nine years and a weighted average (by square feet) clear height of 33 feet. Investment grade rated tenants, including leading e-commerce companies, account for approximately 74% of the annualized rental revenues from this portfolio.

ILPT is funding these acquisitions with cash on hand from its recent $650 million mortgage financing and by drawing on its $750 million revolving credit facility.

“We have made great progress on our acquisition and portfolio optimization strategy in 2019,” said John Murray, ILPT’s President and Chief Executive Officer. “These transactions demonstrate ILPT’s commitment to executing on our business plan to grow our industrial asset base using low cost debt to enhance future earnings and create value for our shareholders. We have announced the acquisition of more than $1 billion of high-quality properties since our IPO in January 2018, and we continue to be encouraged by the growth of e-commerce and logistics industries and the strength of the nationwide industrial market. When both of the transactions announced today are closed, Amazon and FedEx will be our two largest tenants accounting for 13.8% and 3.6%, respectively, of annualized rental revenue.”