ILPT - Industrial Logistics Q1 revenue earnings benefit from higher rental rates

2023-04-25 16:46:24 ET

Industrial Logistics Properties ( NASDAQ: ILPT ) Q1 earnings and revenue exceeded Wall Street expectations as the REIT benefited from rising rents for its industrial real estate. Still, ILPT shares slipped 1.0% in Tuesday after-hours trading.

Q1 normalized FFO per share of $0.12, exceeding the $0.08 consensus, rose from $0.08 in the prior quarter and dropped from $0.42 in the year-ago period.

Q1 rental revenue of $110.3M, topping the $106.6M consenus, climbed from $106.3M in Q4 2022 and from $71.4M in Q1 2022.

"With no near-term debt maturities, a cash flowing portfolio, and continued stability in the industrial sector, we are focused on generating organic cash flow through mark-to-market rent increase opportunities," said President and Chief Operating Officer Yael Duffy.

The industrial REIT completed 1.14M square feet of leasing activity during the quarter with a weighted average lease term of 8.9 years. Leasing activity yielded a 15.1% roll up in rents.

Same-property cccupancy totaled 99.0% as of March 31, 2023 compared with 99.1% at Dec. 31, 2022 and 99.3% at March 31, 2022.

Q1 same-property cash net operating income increased 3.2% from a year ago, an improvement from the 0.3% Y/Y increase in Q4 2022.

Conference call on April 26 at 10:00 AM ET.

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