- The company has a poor location diversification with 50% of rental revenues coming from Hawaii.
- However, tenant diversification is quite good, with the exception of Amazon being responsible for 10% of the company's rental revenues.
- The company has widely outperformed VNQ while it is relatively unleveraged and has a track record of FFO and revenue growth.
- I believe that the current discount on a P/FFO basis is there due to the poor location diversification and the external management by RMR.
- In my book, this is a nice investment opportunity to gain exposure to the logistics market.
For further details see:
Industrial Logistics Properties Trust: Concentration Risk Offers Attractive Valuation