Q1 2026 Industrial Logistics Properties Trust Earnings Call

April 30, 2026

Speaker #1: Please go ahead.

Speaker #2: Good morning, and thank you for joining. ILPT's first quarter 2026 earnings call. With me on today's call are President and Chief Executive Officer Yael Duffy, Chief Financial Officer and Treasurer Tiffany Sy, and Vice President Marc Krohn.

Speaker #2: In just a moment, they will provide details about our business and quarterly results, followed by a question-and-answer session with sell-side analysts. Please note that the recording and retransmission of today's conference call is prohibited without the prior written consent of the company.

Kevin Barry: Good morning. Thank you for joining ILPT's Q1 2026 earnings call. With me on today's call are President and Chief Executive Officer, Yael Duffy, Chief Financial Officer and Treasurer, Tiffany Sy, and Vice President, Marc Krohn. In just a moment, they will provide details about our business and quarterly results, followed by a question and answer session with sell side analysts. Please note that the recording and retransmission of today's conference call is prohibited without the prior written consent of the company.

Speaker #2: Also note that today's conference call contains forward-looking statements within the meaning of the private securities litigation reform act of 1995 and other securities laws.

Speaker #2: Including guidance with respect to certain second-quarter and full-year 2026 financial measures. These forward-looking statements are based on ILPT's beliefs and expectations as of today, April 30th, 2026, and actual results may differ materially from those that we project.

Kevin Barry: Also note that today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws, including guidance with respect to certain Q2 and full year 2026 financial measures. These forward-looking statements are based on ILPT's beliefs and expectations as of today, 30 April 2026, and actual results may differ materially from those that we project. The company undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements made in today's conference call. Additional information concerning factors that could cause those differences is contained in our filings with the Securities and Exchange Commission, which can be accessed from our website, ilptreit.com. Investors are cautioned not to place undue reliance upon any forward-looking statements.

Speaker #2: The company undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements made in today's conference call. Additional information concerning factors that could cause those differences is contained in our filings with the Securities and Exchange Commission, which can be accessed from our website, ilpteread.com.

Speaker #2: Investors are cautioned not to place undue reliance upon any forward-looking statements. In addition, we will be discussing non-gas financial measures during this call, including normalized funds from operations or normalized FFO, adjusted EBITDA-RE, net operating income or NOI, and cash basis NOI.

Speaker #2: A reconciliation of these non-gas measures to net income is available in our financial results package, which can be found on our website. Lastly, we will be providing guidance on this call, including estimated normalized FFO and adjusted EBITDA-RE.

Kevin Barry: In addition, we will be discussing non-GAAP financial measures during this call, including normalized funds from operations or Normalized FFO, Adjusted EBITDAre, net operating income or NOI, and Cash Basis NOI. A reconciliation of these non-GAAP measures to net income is available in our financial results package, which can be found on our website. Lastly, we will be providing guidance on this call, including estimated Normalized FFO and Adjusted EBITDAre. We are not providing a reconciliation of these non-GAAP measures as part of our guidance because certain information required for such reconciliation is not available without unreasonable efforts or at all. I will now turn the call over to Yael.

Speaker #2: We are not providing a reconciliation of these non-gas measures as part of our guidance because certain information required for such reconciliation is not available without unreasonable efforts or at all.

Speaker #2: I will now turn the call over to Yael.

Speaker #3: Thank you, Kevin, and good morning. To begin, I would like to highlight the announcement we made last week that our Consolidated Joint Venture successfully priced $1.6 billion of fixed-rate interest-only debt at an attractive interest rate of 5.71%.

Speaker #3: This outcome was achieved despite geopolitical headwinds and capital markets volatility. It also speaks to the strength of our high-quality industrial portfolio, the creditworthiness of our tenants, and the depth of the banking relationships our manager the RMR Group has built.

Yael Duffy: Thank you, Kevin, good morning. To begin, I would like to highlight the announcement we made last week that our consolidated joint venture successfully priced $1.6 billion of fixed rate interest only debt at an attractive interest rate of 5.71%. This outcome was achieved despite geopolitical headwinds and capital markets volatility. It also speaks to the strength of our high quality industrial portfolio, the credit worthiness of our tenants, and the depth of the banking relationships our manager, The RMR Group, has built. As Tiffany will cover shortly, this financing takes out the JV's floating rate and amortizing debt, substantially strengthening its capital structure, insulating it from interest rate swings, and driving stronger cash flow.

Speaker #3: As Tiffany will cover shortly, this financing takes out the JV's floating rate and amortizing debt substantially strengthening its capital structure, insulating it from interest rate swings, and driving stronger cash flow.

Speaker #3: As a result, all of ILPT's Consolidated Debt will now be fixed-rate and non-amortizing at a weighted average interest rate of less than 5.5%. Turning to our results, we're pleased to report another quarter of strong earnings growth that outpaced our expectations, which was supported by continued leasing momentum across our portfolio.

Yael Duffy: As a result, all of ILPT's consolidated debt will now be fixed rate and non-amortizing at a weighted average interest rate of less than 5.5%. Turning to our results. We're pleased to report another quarter of strong earnings growth that outpaced our expectations, which was supported by continued leasing momentum across our portfolio. Same Property Cash Basis NOI increased more than 4% year-over-year and Normalized FFO grew more than 60%, demonstrating the meaningful progress we've made reducing financing costs and driving rent growth. We leased 862,000 sq ft at a weighted average rent roll-up of 26.3%, marking our 6th consecutive quarter of double-digit rent growth. Renewals accounted for approximately 70% of the activity, reflecting continued strong tenant retention and portfolio stability with consolidated occupancy of 94.6%.

Speaker #3: Same property cash basis NOI increased more than 4% year over year and normalized FFO grew more than 60%, demonstrating the meaningful progress we've made reducing financing costs and driving rent growth.

Speaker #3: We leased $862,000 square feet at a weighted average rent roll-up of 26.3%, marking our sixth consecutive quarter of double-digit rent growth. Renewals accounted for approximately 70% of the activity, reflecting continued strong tenant retention and portfolio stability with consolidated occupancy of 94.6%.

Speaker #3: Today, $8.1 million square feet or 11.5% of ILPT's total annualized revenue is scheduled to expire by the end of 2027. Which provides us a substantial runway to capture embedded rent growth and drive organic cash flow.

Speaker #3: Currently, our leasing pipeline stands at approximately $6 million square feet, with more than $2 million square feet already in advanced stages of negotiation or lease documentation.

Yael Duffy: Today, 8.1 million sq ft or 11.5% of ILPT's total annualized revenue is scheduled to expire by the end of 2027, which provides us a substantial runway to capture embedded rent growth and drive organic cash flow. Currently, our leasing pipeline stands at approximately 6 million sq ft with more than 2 million sq ft already in advanced stages of negotiation or lease documentation. We're especially pleased to share that we anticipate fully leasing the 535,000 sq ft vacancy in Indianapolis in June, accomplishing a key 2026 initiative for the company. Before I turn the call over to Tiffany, I want to take a moment to underscore the momentum we have built across three fronts, a meaningfully strengthened capital structure, continued double-digit leasing spreads, and a healthy pipeline of embedded mark-to-market opportunities still available to us.

Speaker #3: We're especially pleased to share that we anticipate fully leasing the 535,000 square foot vacancy in Indianapolis in June, accomplishing a key 2026 initiative for the company.

Speaker #3: Before I turn the call over to Tiffany, I want to take a moment to underscore the momentum we have built across three fronts. A meaningfully strengthened capital structure, continued double-digit leasing spreads, and a healthy pipeline of embedded mark-to-market opportunities still available to us.

Speaker #3: Looking ahead, we believe we have a clear path to continued cash flow growth and delivering value to our shareholders. Tiffany, thank you, Yael, and good morning, everyone.

Speaker #3: Yesterday, we reported first-quarter normalized FFO of $22 million or 33 cents per share. These results exceeded the high end of our guidance by 2 cents per share, driven by one-time revenues and fees totaling $1.1 million.

Yael Duffy: Looking ahead, we believe we have a clear path to continued cash flow growth and delivering value to our shareholders. Tiffany?

Speaker #3: Normalized FFO grew 16% on a sequential quarter basis and 63% compared to the same quarter a year ago. Same property NOI was 90.3 million, same property cash basis NOI was 87.4 million, and adjusted EBITDA-RE totaled 87 million.

Tiffany Sy: Thank you, Yael. Good morning, everyone. Yesterday, we reported Q1 Normalized FFO of $22 million or $0.33 per share. These results exceeded the high end of our guidance by $0.02 per share, driven by one-time revenues and fees totaling $1.1 million. Normalized FFO grew 16% on a sequential quarter basis and 63% compared to the same quarter a year ago. Same Property NOI was $90.3 million. Same Property Cash Basis NOI was $87.4 million. Adjusted EBITDAre totaled $87 million, each increasing on a year-over-year and sequential quarter basis. Turning to our balance sheet. We ended the quarter with cash on hand of $100 million and restricted cash of $86 million.

Speaker #3: Each increasing on a year-over-year and sequential quarter basis. Turning to our balance sheet, we ended the quarter with cash on hand of $100 million, and restricted cash of 86 million.

Speaker #3: Our net debt to total assets ratio declined modestly to 68.8%, and our net debt leverage ratio improved to 11.6 times from 11.8 times. Last week, we priced $1.6 billion of five-year fixed-rate interest-only mortgage financing for our Consolidated Joint Venture at 5.71%.

Same property. Noi was 90.3 million, same property Cash basis. Noi was 87.4 million and the adjusted i-bidder total of 87 million each increasing on a year-over-year and sequential quarter basis.

Turning to our balance sheet.

Speaker #3: We expect to close the loan on or about May 8th and plan to use the proceeds to refinance the joint venture's existing $1.4 billion floating-rate loan and $205 million of fixed-rate amortizing debt.

Tiffany Sy: Our Net Debt to Total Assets Ratio declined modestly to 68.8%, and our Net Debt Leverage Ratio improved to 11.6x from 11.8x. Last week, we priced $1.6 billion of 5-year fixed rate interest-only mortgage financing for our consolidated joint venture at 5.71%. We expect to close the loan on or about 8 May and plan to use the proceeds to refinance the joint venture's existing $1.4 billion floating rate loan and $205 million of fixed rate amortizing debt. The new debt is secured by the same 90 mainland properties as the existing borrowing. With this refinancing, our consolidated joint venture will unlock nearly $20 million in annual cash flow by eliminating its amortizing debt and the need to purchase interest rate caps.

We ended the quarter with cash on hand million dollars and restricted cash of 86 million. Our net debt to total assets ratio would decline modestly to 68.8% and our net leverage ratio improved to 11.6 times from 11.8 times,

Speaker #3: The new debt is secured by the same 90 mainland properties as the existing borrowing. With this refinancing, our Consolidated Joint Venture will unlock nearly $20 million in annual cash flow by eliminating its amortizing debt and the need to purchase interest-rate caps.

Last week we priced 1.6 billion dollars of 5-year fixed rate interest-only, mortgage financing for our Consolidated joint venture at 5.71%.

Speaker #3: Additionally, all of ILPT's Consolidated Debt will be fixed-rate. Limiting our exposure to market interest-rate volatility with a weighted average interest rate of 5.48% and no debt maturities until 2029.

We expect to close the loan on or about May 8th and plan to use the proceeds to refinance the joint ventures existing 1.4 billion, floating rate loan and 205 million of 6 rate advertising debt.

The new debt is secured by the same 90, Mainland properties as the existing borrowing.

Speaker #3: Turning to our outlook, we introduced full-year guidance in our earnings presentation issued last night in addition to the quarterly guidance we have been providing.

Tiffany Sy: Additionally, all of ILPT's consolidated debt will be fixed rate, limiting our exposure to market interest rate volatility with a weighted average interest rate of 5.48% and no debt maturities until 2029. Turning to our outlook. We introduced full year guidance in our earnings presentation issued last night in addition to the quarterly guidance we have been providing. For Q2 2026, we expect interest expense of $61.5 million, including $59 million of cash interest expense and $2.5 million of non-cash amortization of deferred financing fees. Adjusted EBITDAre between $85.5 million and $86.5 million and Normalized FFO between $0.31 to $0.33 per share.

Speaker #3: For the second quarter of 2026, we expect interest expense of 61.5 million including $59 million of cash interest expense and $2.5 million of non-cash amortization of deferred financing fees, adjusted EBITDA-RE between 85.5 and 86.5 million, and normalized FFO between 31 to 33 cents per share.

Additionally, all of opiates consolidated. Debt will be fixed rate, limiting our exposure to Market interest rate volatility with a weighted average interest rate of 5.48% and no debt maturities until 2029.

Turning to our Outlook. We introduced full year guidance, in our earnings presentation issued last night. In addition to the quarterly guidance, we have been providing

Speaker #3: For the full year 2026, we are guiding to interest expense of approximately $245 million, with cash interest of $234.5 million, and non-cash interest of 10.5 million.

For the second quarter of 2026, we expect interest expense of 61.5 million, including 59 million of cash, interest expense and 2.5 million of non-cash amortization of deferred financing fees.

Speaker #3: Adjusted EBITDA-RE between 344 and 349 million, and normalized FFO between $1.27 to $1.34 per share. This guidance reflects the impact of our Consolidated Joint Venture's refinance.

Adjusted. Even to our between 85.5 and 86.5 million.

And normalize ffo between 31 to 33 steps per share.

Tiffany Sy: For the full year 2026, we are guiding to interest expense of approximately $245 million with cash interest of $234.5 million and non-cash interest of $10.5 million. Adjusted EBITDAre between $344 million and $349 million and Normalized FFO between $1.27 to $1.34 per share. This guidance reflects the impact of our consolidated joint venture's refinance. It also assumes our vacant property in Indianapolis is leased in June 2026 and does not include the lease up of our Hawaii land parcel. In closing, we are pleased with the meaningful progress that ILPT has made over the past year, refinancing our floating rate debt and enhancing cash flow.

Speaker #3: It also assumes our vacant property in Indianapolis is leased in June 2026 and does not include the lease of our Hawaii land parcel. In closing, we are pleased with the meaningful progress that ILPT has made over the past year, refinancing our floating-rate debt and enhancing cash flow.

For the full year 2026. We are guiding to interest expense of approximately 245 million with cash interests of 234.5 million and non-cash interest of 10.5 million.

Adjusted EV between 344 and 349 million.

And normalize ffo between 1.27 cents to $1.34 per share.

Speaker #3: As we look ahead to the remainder of 2026, we are focused on building on this momentum, advancing our growth initiatives, and creating long-term value for our shareholders.

Speaker #3: That concludes our prepared remarks. Operator, please open the lines for questions.

This guidance reflects the impact of consolidated joint ventures and refinance. It also assumes our vacant property in Indianapolis is leased in June 2026, and does not include the lease of our Hawaii land parcel.

Speaker #1: Thank you very much. We will now begin the question-and-answer session. To ask a question, you may press star, then one on your touchstone phone.

Tiffany Sy: As we look ahead to the remainder of 2026, we are focused on building on this momentum, advancing our growth initiatives, and creating long-term value for our shareholders. That concludes our prepared remarks. Operator, please open the lines for questions.

Speaker #1: If you're using a speakerphone, please pick up your handset. Before pressing the keys, if at any time your question has been addressed and you would like to withdraw your question, please press star, then two.

In closing, we are pleased with the meaningful progress that op has made over the past year. Refinancing, our floating rate debt and enhancing cash flow. As we look ahead to the remainder of 20126, we are focused on building on this momentum advancing, our growth initiatives, and creating long-term value for our shareholders.

That concludes our prepared remarks operator, please open the lines for questions.

Operator: Thank you very much. We will now begin the question and answer session. Our first question comes from Mitch Germain with Citizens Bank. Please go ahead.

Speaker #1: At this time, we will pause momentarily to assemble our roster. Our first question comes from Mitch Germain, with Citizens Bank, please go ahead.

Thank you very much.

We will now begin the question and answer session.

to ask a question, you may press star then 1 on your touchtone phone,

If you're using a speaker-phone, please pick up your handset before pressing the keys.

if at any time your question has been addressed and you would like to withdraw your question please press star then to

Speaker #4: Thank you very much. Can you guys provide some sensitivity from the top to the bottom end of the guidance range, please?

At this time, we will pause momentarily to assemble our roster.

Speaker #3: Meaning what will impact the.

Speaker #4: Exactly. What factors bring you from the bottom and what factors take you to the high end of the range?

Our first question comes from Mitch, Germaine.

With Citizens Bank.

Speaker #3: Sure. I mean, sometimes we have one-time reimbursements, those types of things. Or one-time fees. They're usually not very large, so that's the accounting for the $1 million range in the guidance.

Please go ahead.

Mitch Germain: Thank you very much. Can you guys provide some sensitivity from the top to the bottom end of the guidance range, please?

Uh, thank you very much. Um, can you guys provide some—

Sensitivity. Uh, from the top to the bottom end of the guidance range, please.

Tiffany Sy: Meaning what will impact?

Speaker #4: Gotcha. Okay. That's helpful. Obviously, your interest rate is pretty much fixed at this point, so maybe provide some perspective on the Indianapolis lease. I know that this has been a big burden for you guys, a big priority strategically.

Meaning, what will impact?

Mitch Germain: Exactly. Like, what factor is bringing you from the bottom, and what factor is taking to the high end of the range?

Exactly. Like, what what factors? Bring you from the bottom and what factors take you to the high end of the range?

Tiffany Sy: Sure. I mean, sometimes we have one-time reimbursements, those types of things, or one-time fees. They're usually not very large. That's the accounting for the $1 million range in the guidance.

Sure. I mean, sometimes we have—

Speaker #4: Do you believe it becomes income-paying June? How should I think? And maybe just provide some perspective on the economics. Are we looking at rents going higher?

1 time reimbursements, those types of things, um, or 1 times fees, they're usually not very large. So that's the accounting for the million dollar range in the guidance.

Mitch Germain: Got you. Okay, that's helpful. Obviously your interest rate is pretty much fixed at this point, so, maybe provide some perspective on the Indianapolis lease. I know that this has been, you know, a big burden for you guys, a big priority strategically. Do you believe it becomes income paying, June? How should I think? Maybe just provide some perspective on the economics. Are we looking at rents going higher? Maybe if you can provide some details on that, please.

Speaker #4: Maybe if you can provide some details on that, please.

Speaker #3: Sure. Hi, Mitch. So we anticipate the lease to be signed in June. There will be a minimal free rent of four months. So we'll start seeing the cash in the back half of the year.

Got you, okay? That's helpful. Um, obviously, your interest rate is pretty much fixed at this point, so, um, yeah, maybe provide some perspective on the Indianapolis lease. I know that this has been, um, you know, a big burden for you guys, a big priority strategically. Um, do you believe it becomes income-paying?

Speaker #3: And it will be at a roll-up in rent.

Speaker #4: Great. And then last question for me with regards to the recent debt: does it offer some flexibility from the covenant perspective with regards to your ability to potentially look to sell some assets?

Uh, June, how should I think? And maybe just provide some perspective on the economics. Are we looking at rents going higher? Uh, maybe if you can provide some details on that, please.

Yael Duffy: Sure. Hi, Mitch. We anticipate the lease to be signed in June. There will be a minimal free rent of 4 months. We'll start seeing the cash in the back H2 of the year, and it will be at a roll-up in rent.

Sure. Hi Mitch. Um so we we anticipate the lease to be signed in June. There will be a minimal free rent.

Speaker #4: And then maybe just broadly speaking, do you think that asset sales might become more of a strategic priority?

Of 4 months. So, um, we'll start seeing the cash, um, in the back half of the year and it will be um, at a roll up in rent.

Mitch Germain: Great. Last question from me with regards to the recent debt. Does it offer some more flexibility from the covenant perspective with regards to your ability to potentially look to sell some assets? Maybe just broadly speaking, do you think that asset sales might become more of a strategic priority?

Great.

Speaker #3: Hi, Mitch. So there is a 24-month lockout period in the new debt.

Um, and then last question for me, with regards to the recent debt, um,

Speaker #5: And then I will add, I think with the leasing of this property in Indianapolis, it will allow us flexibility on the $1.16 billion debt to be able to look to sell properties in that pool.

Does it offer some Flex more flexibility? From the Covenant perspective with regards to your ability?

Uh, to potentially look to sell some assets and then maybe just broadly speaking.

Speaker #5: So while we might not be able to, in the short term, have dispositions within Mountain, we will have greater flexibility now that we've gotten this Indianapolis lease completed.

Um, do you think that asset sales might become more of a strategic priority?

Tiffany Sy: Mitch, there is a 24-month lockout period in the new debt.

In the, in the new debt.

Yael Duffy: I will add, I think with the leasing of this property in Indianapolis, it will allow us flexibility on the $1.16 billion debt to be able to look to sell properties in that pool. While we might not be able to, in the short term, have dispositions within Mountain, we will have greater flexibility now that we've gotten this Indianapolis lease completed.

Speaker #4: Thanks. And appreciate the guidance.

Speaker #3: Thanks, Mitch.

Speaker #1: Thank you. Again, if you have a question, please press star, then one. Our next question comes from John Massocca, with B. Riley. Please go ahead.

Speaker #6: Good morning. So maybe can you walk us through what the $1.1 million of one-time items were in the quarter? And I guess, is that kind of why guidance is calling for, I guess, a step down in 2Q versus 1Q at the midpoint?

And then I will add, I think, with the um leasing of this um property in Indianapolis it does it will allow us flexibility on the 1.16 billion dollar debt to be able to look to sell properties in that pool. So, while we might not be able to in the short term um, have dispositions within Mountain, we will have greater flexibility now that we've gotten this, India napus lease completed.

Mitch Germain: Thanks, and appreciate the guidance.

Thanks and appreciate the uh, guidance.

Yael Duffy: Thanks, Mitch.

Thanks Mitch.

Operator: Thank you. Again, if you have a question, please press star then one. Our next question comes from John Massocca with B. Riley. Please go ahead.

Thank you.

Again, if you have a question, please press star then 1.

Speaker #3: Yeah, that's exactly why. So there was $650,000 of percentage rent that gets trued up. That happened this quarter. And then we also had $450,000 of a one-time remediation fee related to a move-out that has already been released.

An expression comes from John masoka with B Riley. Please go ahead.

John Massocca: Morning.

Morning.

Yael Duffy: Good morning.

John Massocca: Maybe can you walk us through what the $1.1 million of one-time items were in the quarter? I guess, is that kind of why guidance is calling for, I guess, a step down in Q2 versus Q1 at the midpoint?

Good morning. Um, so maybe can, maybe. Can you walk us through what? The 1.1 million of 1 time items were in the quarter and I guess

Speaker #6: Okay. And the percentage rent, kind of true up, is that something that could hit in any given quarter, or is that usually a 1Q item?

Is that kind of why guidance is calling for, I guess a step down in 2q versus 1 Q at the midpoint.

Yael Duffy: Yeah, that's exactly why. There was $650,000 of percentage rent that gets trued up that happened this quarter. We also had $450,000 of a one-time remediation fee related to a move out that has already been released.

Speaker #3: It's always a 1Q item. We just never know what the amount will be or even if it will be incremental to us.

Speaker #6: And kind of post the debt transaction and now kind of your balance sheet really pretty set, how are you thinking about utilizing the kind of cash balance today?

Yeah, that's exactly why. So there was 650,000 of percentage rent that gets trued up. Um, that happened this quarter. And then we also had uh, 450,000 of a 1-time remediation fee related to uh a move out that has already been released.

John Massocca: Okay. The percentage rent kind of true up, is that something that could hit in any given quarter, or is that usually a Q1 item?

Speaker #6: Talk a little bit about dispositions maybe using that in the cash to pay down debt potentially, or would you even potentially look into the acquisition market?

Okay, and the percentage. Rent kind of true up is that something that could hit in any given quarter? Is that usually a 1 Q item?

Yael Duffy: It's always a 1 Q item. We just never know what the amount will be or even if it will be incremented to us.

Yael Duffy: It's always a 1Q item. We just never know what the amount will be or even if it will be incremented to us.

Speaker #6: Just kind of curious how you're thinking of kind of managing the cash outstanding given there's a little more certainty from a debt side of your balance sheet.

It's always a 1 Q item. We just never know what the amount will be or even if the if it will be incremental to us.

John Massocca: Kind of post the debt transaction and now kind of your balance sheet really pretty set, how are you thinking about utilizing the kind of cash balance today? You know, talk a little bit about dispositions, maybe using that in the cash to pay down debt potentially. Would you even potentially look into the acquisition market? Just kind of curious how you're thinking of kind of managing the cash outstanding, given there's a little more certainty from a debt side of your balance sheet.

Speaker #5: I think that's a good question. I think we're kind of evaluating all of our options right now. We want to make sure that we have cash on the balance sheet to address our tenants' needs.

Um, and kind of post the the debt transaction and now kind of your balance sheet, really pretty set. How are you thinking about?

Utilizing the kind of cash balance today.

Speaker #5: We have a couple of tenants we're in early discussions with who are looking at potential building expansions that they want us to partner with them on.

You know, talk a little bit about dispositions, maybe using that in the cache to pay down debt potentially, or would you even potentially look into the acquisition market? Just kind of curious how you're thinking of—

Speaker #5: So we want to make sure that we have that cash available to us. So I think it's early stages. We'll see where we shake out, and then go from there.

Kind of managing the cash outstanding given there's a little more certainty from a from a debt that you're balance sheet.

Yael Duffy: I think that's a good question. I think we're kind of evaluating all of our options right now. You know, we wanna make sure that we have cash on the balance sheet to address our tenants' needs. We have a couple tenants we're in early discussions with who are looking at potential building expansions that they want us to partner with them on. We want to make sure that we, you know, have that cash available to us. I think it's early stages. We'll see where we shake out and then go from there.

I think that's

Speaker #6: And I know those are potentially unique situations, but how do you think about a return threshold if you get back into the market of deploying capital?

Speaker #3: I think that we're certainly in a better position today than we were even a year ago. So I think that's something that we're always considering with the board.

A good question. I think we're, um, we're kind of evaluating all of our options right now. Um, you know, we want to make sure that we have cash on the balance sheet to address our tenants' needs. We have a couple tenants we're in early discussions with who are looking at potential building expansions that they want us to partner with them on.

so, we want to make sure that we

You know, have have that cash available to us.

Speaker #6: Okay. And then lastly, go ahead.

So, I think it's early stages. We'll see where we shake out, and then go from there.

John Massocca: I know those are potentially unique situations, but how do you think about, like, a return threshold if you get back into the market of deploying capital?

Speaker #5: No, I didn't know if you were asking about property acquisition specifically. Was that part of the question?

Speaker #6: Property acquisitions are even kind of investment. I mean, I know investments with existing tenants, there's other considerations at play there. But if you were to get back into the market, how would you kind of view the current cap rate environment versus where you'd want to deploy capital?

And I know those are potentially unique situations, but how do you think about like a return threshold if you get back into the market of deploying capital?

Yael Duffy: I think that, we're certainly in a better position today than we were even a year ago. I think that's something that, you know, we're always considering with the board.

Tiffany Sy: I think that, we're certainly in a better position today than we were even a year ago. I think that's something that, you know, we're always considering with the board.

Speaker #6: Are there things that are attractive out there today? Especially given it would probably be coming from cash on hand rather than newly raised capital.

I think that, uh, we're certainly in a better position today than we were even a year ago. So I think that's something that uh, you know, we're we're always considering with the board.

John Massocca: Okay. Then lastly.

Yael Duffy: Were you-

Okay. And then lastly,

John Massocca: Go ahead.

Yael Duffy: No, I didn't know if you were asking about property acquisitions specifically. Was that part of the question?

Speaker #5: I think given where our leverage is today, I don't see us looking to acquire any properties at least in the short term unless it's a very specific situation or an opportunistic one.

John Massocca: Well, either property acquisitions or even kind of investment. I mean, I know investments with existing tenants, you know, there's other considerations at play there. If you were to get back into the market, like how would you kind of view the current cap rate environment versus where you'd want to deploy capital? Are there things that are attractive out there today, especially given it would probably be coming from cash on hand rather than, you know, newly raised capital?

No, I didn't know. If you were asking about property acquisition specifically—was property acquisitions or even kind of investment? I mean, I know investments with existing tenants, you know, there's—there's...

Other considerations at play there. But if, if you were to get back into the market, like how would you kind of view the current cap rate environment versus

Speaker #6: Okay. And then lastly, the CapEx spending was down a little bit. I know 1Q can be a relatively weak period seasonally for CapEx spend, but is that kind of more typical run rate should be, or was the current quarter a little bit of an anomaly?

Where you would want to deploy, Capital are there things that are attractive out there today? Uh, especially given it would probably be coming from cash on hand rather than, you know, newly raised capital

Yael Duffy: I think given where our leverage is today, I don't see us looking to acquire any properties, at least in the short term, unless it's a, you know, very specific situation or an opportunistic one.

I think given where our leverages today, I don't see.

Speaker #3: Current quarter was an anomaly. I think Q1 can be down sometimes. That's not what we are forecasting going forward.

Why are any properties at least in the short term? Unless it's a, you know, very specific situation or an opportunistic.

John Massocca: Okay. Lastly, the CapEx spending was down a little bit. I know Q1 can be a relatively weak period seasonally for CapEx spend. Is that kind of more typical run rate should be, or was the current quarter a little bit of an anomaly?

Speaker #6: Okay. Okay. That's it for me. Thank you very much.

Okay.

Speaker #5: Thank you for joining today's call, and we look forward to meeting with many of you at the Na'vi Conference in June. Please reach out to investor relations if you're interested in scheduling a meeting with ILPT.

Um and then lastly the capex spending was down a little bit. I know 1 Q can be a relatively weak period seasonally for capex spend but um

Is that kind of more typical run rate should be or was the current quarter a little bit of an anomaly?

Speaker #5: Operator, that concludes our call.

Yael Duffy: Current quarter was an anomaly. I think Q1 can be down sometimes. That's not what we are forecasting going forward.

John Massocca: Okay. Okay. That's it for me. Thank you very much.

Was it was an anomaly. I think q1 can be down. Sometimes that's not. Um, what we are forecasting going forward. Okay.

Uh, that's it for me. Thank you very much.

Kevin Barry: Operator, I believe that concludes our Q&A.

Operator, I believe that concludes our Q&A.

Yael Duffy: Thank you for joining today's call. We look forward to meeting with many of you at the Nareit conference in June. Please reach out to investor relations if you're interested in scheduling a meeting with ILPT. Operator, that concludes our call.

Thank you for joining today's call and we look forward to meeting with many of you at the NY Conference in June. Please reach out to investor relations if you're interested in scheduling a meeting with ilpt operator that concludes our call.

Operator: Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Thank you.

The conference has now concluded, thank you for attending today's presentation. You may now disconnect

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