Financing Proceeds Plus $75 Million of Cash on Hand Will Be Used to Repay $1.235 Billion of Floating Rate Mortgage Debt
NEWTON, Mass., June 16, 2025–(BUSINESS WIRE)–Industrial Logistics Properties Trust (Nasdaq: ILPT) today announced that it has priced $1.16 billion of five-year, interest-only fixed rate mortgage financing. The new financing is secured by a portfolio of 101 industrial properties located on the U.S. mainland and Hawaii. The closing is expected to occur on or about June 26, 2025. The financing proceeds and $75 million of cash on hand will be used to fully repay $1.235 billion of floating rate mortgage debt due in October 2025, currently secured by substantially the same portfolio of properties. The new mortgage financing is expected to reduce ILPT’s interest expense by decreasing the amount of debt outstanding, lowering the interest rate to a fixed 6.399% and eliminating the need to purchase future interest rate caps on this tranche of debt.
Tiffany Sy, Chief Financial Officer and Treasurer of ILPT, made the following statement:
“This refinancing enables ILPT to take advantage of lower interest rates and to convert 100% of ILPT’s wholly owned debt to fixed rates. By repaying $75 million of debt, locking in a lower interest rate and eliminating interest rate cap requirements for this tranche of debt, we expect to generate annual cash savings of approximately $8.5 million, or $0.13 per share.”
The financing is provided by Citi Real Estate Funding Inc., Bank of America, N.A., Bank of Montreal, Morgan Stanley Mortgage Capital Holdings LLC, Royal Bank of Canada and UBS AG New York Branch, represented by Dechert LLP. Skadden, Arps, Slate, Meagher & Flom LLP serves as legal counsel to ILPT in this transaction.
About Industrial Logistics Properties Trust
ILPT is a real estate investment trust focused on owning and leasing high quality distribution and logistics properties. As of March 31, 2025, ILPT’s portfolio consisted of 411 properties containing approximately 59.9 million rentable square feet located in 39 states. Approximately 76% of ILPT’s annualized rental revenues as of March 31, 2025 are derived from investment grade tenants, tenants that are subsidiaries of investment grade rated entities or Hawaii land leases. ILPT is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with approximately $40 billion in assets under management as of March 31, 2025 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. ILPT is headquartered in Newton, MA. For more information, visit www.ilptreit.com.
