A Closer Look At Industrial Logistics Properties Trust

Industrial Logistics Properties Trust is focused on the ownership and leasing of industrial and logistics properties.

Summary

  • Select Income REIT has decided to commence an initial public offering of a subsidiary that holds their industrial and logistics properties in Hawaii and the mainland United States.
  • Industrial Logistics Properties Trust is focused on the ownership and leasing of industrial and logistics properties throughout the United States.
  • We are always concerned about RMR and their cross-holdings, and this concern weighs heavy upon our opinion.

Industrial/warehouse REITs have been very popular recently as they are viewed as one of the REIT sectors that stands to benefit from e-commerce and the “Amazon effect”. See my recent article: Beam Me Up, Scotty

For diversified REITs, it is often difficult to capitalize on the popularity of the industrial space as their other sector exposures are often not as popular or afforded the same valuations. Recently, one such diversified net lease REIT decided to capitalize on the value afforded industrial REITs by filing to commence an initial public offering of its industrial and logistics properties.

Select Income REIT (SIR) has decided to commence an initial public offering of a subsidiary that holds their industrial and logistics properties in Hawaii and the mainland United States.

Until the IPO is completed, SIR can be described as a REIT that owns and invests in lands and properties that are primarily net leased to single tenants. As of September 30, 2017, they owned 366 buildings with approximately 45.5 million rentable square feet located in 36 states, including 229 buildings, leasable land parcels and easements with approximately 17.8 million square feet which are primarily leasable industrial and commercial lands located in Hawaii.

At the end of November 2017, SIR announced that it intended to IPO its industrial and logistics properties as a new entity called Industrial Logistics Properties Trust which is expected to be listed on Nasdaq under the ticker ILPT.

Industrial Logistics Properties Trust (ILPT) is focused on the ownership and leasing of industrial and logistics properties throughout the United States. The new REIT will own 266 properties with approximately 28.5 million square feet. As of September 30, 2017, the properties were approximately 99.9% leased to 240 tenants with a weighted average remaining lease term of approximately 11.4 years.

Offering