Industrial Logistics Properties Trust Acquires Industrial Building in Kansas City, KS for $44 Million

Rhea-AI Summary

Industrial Logistics Properties Trust (Nasdaq: ILPT) has acquired a Class A industrial building in Kansas City, Kansas, for $44 million. This property spans 645,000 rentable square feet and is fully leased for 12 years, offering a 6.5% capitalization rate. The acquisition enhances ILPT's portfolio and diversifies its geographic presence in a key U.S. industrial market. The building, built in 2018, is strategically located with access to transportation infrastructure and additional land for potential future growth.

Positive

• Strategic acquisition of a 645,000 square foot Class A facility for $44 million.
• Property is fully leased with a 12-year remaining lease term.
• Enhances geographic diversification in a top 20 U.S. industrial market.

Negative

• Potential development of acquired land is uncertain.

Industrial Logistics Properties Trust (Nasdaq: ILPT) announced the acquisition of a net leased Class A industrial building in Kansas City, Kansas for a purchase price of $44.0 million, excluding acquisition related costs. The building is situated on 57 acres located at 17001 West Mercury Street and consists of approximately 645,000 rentable square feet. This single tenant property is 100% leased and has a remaining lease term of approximately 12 years. The purchase price represents a 6.5% capitalization rate.

John Murray, President and Chief Executive Officer of ILPT, made the following statement:

“We are pleased to add this modern distribution facility to ILPT’s high quality portfolio of industrial and logistics assets. The property was constructed in 2018, is well located with access to convenient transportation infrastructure and includes developable land to support future growth and expansion. This acquisition expands ILPT’s geographic diversification into another top 20 U.S. industrial market, the largest and fastest growing submarket in Kansas City.”

About Industrial Logistics Properties Trust

Industrial Logistics Properties Trust is a real estate investment trust, or REIT, that owns and leases industrial and logistics properties throughout the United States. As of September 30, 2020, ILPT owned 301 properties with 43.8 million rentable square feet which are approximately 98.8% leased to 264 different tenants with a weighted average remaining lease term of approximately 9.0 years.

Warning Concerning Forward-Looking Statements

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever ILPT uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and negatives or derivatives of these or similar expressions, ILPT is making forward-looking statements. These forward-looking statements are based upon ILPT’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by ILPT’s forward-looking statements as a result of various factors. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond ILPT's control. For example:

• Mr. Murray states that the acquired property includes developable land to support future growth and expansion. However, this property may not be developed or expanded in the future.

The information contained in ILPT’s filings with the SEC, including under “Risk Factors” in ILPT’s periodic reports, or incorporated therein, identifies other important factors that could cause ILPT’s actual results to differ materially from those stated in or implied by ILPT’s forward-looking statements. ILPT’s filings with the SEC are available on the SEC's website at www.sec.gov.

You should not place undue reliance upon forward-looking statements.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210107005250/en/

FAQ

What is the acquisition value of the industrial building by ILPT?

The acquisition value is $44 million.

How many square feet does the newly acquired building have?

The building has approximately 645,000 rentable square feet.

What is the remaining lease term for the property acquired by ILPT?

The remaining lease term is approximately 12 years.

In which market has ILPT expanded through this acquisition?

ILPT has expanded into the Kansas City, Kansas market.

What is the capitalization rate for the acquisition made by ILPT?

The capitalization rate for the acquisition is 6.5%.