ILPT Normalized FFO Rises 42% After Fixed-Rate Refi

The Tip Desk · November 10, 2026 · 3 min read

Normalized FFO attributable to common shareholders was $0.32 a share, or $21.28 million, as occupancy reached 98.3%.

Industrial Logistics Properties Trust (ILPT), a real estate investment trust focused on industrial and logistics properties, reported normalized FFO attributable to common shareholders of $21.28 million, or $0.32 a share, for the three months ended September 30, 2026, up 42.4% from $14.95 million, or $0.23 a share, a year earlier.

The company said the increase reflected a May 2026 refinancing by Mountain JV that eliminated remaining variable-rate exposure and a 420-basis-point rise in occupancy. Normalized FFO also rose sequentially to $0.32 a share from $0.27 a share in the second quarter.

Net loss attributable to common shareholders was $30.21 million, or $0.46 a share. Rental income was $116.81 million. NOI was $91.99 million, up about 5.8% from $86.95 million. Same-property cash-basis NOI was $86.50 million. Adjusted EBITDAre was $87.02 million.

Interest expense decreased $2.30 million, or 3.6%, to $61.18 million from $63.47 million a year earlier after the Mountain JV refinancing. All of ILPT’s debt is now fixed, with a weighted-average rate of 5.48% and no scheduled maturities until 2029. Cash and cash equivalents ended the quarter at $130.66 million, excluding restricted cash.

Portfolio occupancy was 98.3%, up 420 basis points from 94.5% a year earlier. The portfolio consisted of 409 properties containing approximately 59.6 million rentable square feet in 39 states. About 79% of annualized rental revenues came from investment-grade tenants, subsidiaries of investment-grade entities, or Hawaii land leases. FedEx accounted for 27.7% of annualized rental revenues.

Leasing activity totaled 645,000 square feet at weighted-average rents 162.7% above prior rents for the same space, with a weighted-average lease term of 15.8 years by annualized rental revenues. The company said that marked the eighth consecutive quarter of double-digit rent increases. Weighted-average remaining lease term was 8.1 years, and 65.8% of annualized rental revenues expire beyond 2030.

On October 8, ILPT declared a quarterly common distribution of $0.10 a share, the second consecutive quarter at that level after a July 2026 increase. Annualized dividends paid were $0.40 a share, for a 5.6% yield at the period-end closing price of $7.10.

Beginning in the third quarter, Adjusted EBITDAre, normalized FFO and CAD include incentive management fees as recognized under GAAP, with prior periods recast. Third-quarter results included $1.89 million of such fees. On that recast basis, NOI of $91.99 million was $493 thousand above the prior guidance midpoint of $91.50 million. Adjusted EBITDAre of $87.02 million and normalized FFO of $21.28 million were below prior midpoints of $88.00 million and $23.00 million, respectively.

Fourth-quarter 2026 guidance was updated to NOI of $92.00 million to $93.00 million, Adjusted EBITDAre of $87.00 million to $88.00 million, and normalized FFO of $22.00 million to $23.00 million, or $0.33 to $0.35 a share. Full-year 2026 guidance was updated to NOI of $363.00 million to $364.00 million, Adjusted EBITDAre of $344.00 million to $345.00 million, and normalized FFO of $82.00 million to $83.00 million, or $1.23 to $1.25 a share, with recurring capital expenditures of $32.00 million to $34.00 million. Guidance assumes no acquisitions or dispositions and midpoint interest expense of about $61.00 million for the fourth quarter and $245.00 million for the full year.