Industrial Logistics Properties Trust Announces $350 Million Mortgage Financing for a Portfolio of Mainland Properties
NEWTON, Mass.--(BUSINESS WIRE)--Oct 23, 2019--
Industrial Logistics Properties Trust (Nasdaq: ILPT) today announced that it has closed on a $350 million mortgage loan that matures in November 2029. The loan is secured by a portfolio of 11 of ILPT’s mainland properties located in eight states containing approximately eight million square feet. ILPT’s cost basis in this portfolio of properties is $556.8 million, and as of September 30, 2019, the weighted average remaining lease term (by annualized rental revenue) for these properties was 7.1 years and occupancy was 100%.
The 10-year loan is non-amortizing and carries a fixed interest rate of 3.33% per annum, which is lower than the current borrowing cost on ILPT’s unsecured revolving credit facility. ILPT expects to use the proceeds of this loan to reduce outstanding borrowings under its $750 million unsecured revolving credit facility.
“We are pleased to take advantage of the current low interest rate environment to replace a portion of our floating rate debt with attractive long term, interest only, fixed rate debt,” said John Murray, ILPT’s President and Chief Executive Officer. “This financing increases our fixed rate debt to 79% of total debt, extends the average maturity of our debt to over 7.5 years, and provides positive leverage on this high quality mainland industrial portfolio.”
The loan was provided by Morgan Stanley, UBS Investment Bank and Bank of America. Tremont Realty Advisors acted as ILPT’s advisor and Sullivan & Worcester LLP provided legal counsel to ILPT in this transaction.
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 Regarding 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:
The information contained in ILPT’s filings with the Securities and Exchange Commission, or the SEC, including under the caption “Risk Factors” in ILPT’s periodic reports or incorporated therein, could cause ILPT’s actual results to differ materially from those stated or implied in this press release.
ILPT’s filings with the SEC are available at the SEC’s website at www.sec.gov.
For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release.
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.
A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
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CONTACT: Olivia Snyder, Manager, Investor Relations
KEYWORD: UNITED STATES NORTH AMERICA MASSACHUSETTS
INDUSTRY KEYWORD: REIT FINANCE PROFESSIONAL SERVICES COMMERCIAL BUILDING & REAL ESTATE CONSTRUCTION & PROPERTY
SOURCE: Industrial Logistics Properties Trust
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PUB: 10/23/2019 08:00 AM/DISC: 10/23/2019 08:01 AM