Industrial Logistics Properties Trust Maintains Regular Quarterly Dividend on Common Shares

Industrial Logistics Properties Trust (Nasdaq: ILPT) today announced a regular quarterly cash dividend on its common shares of $0.33 per share ($1.32 per share per year), unchanged from its previous dividend level. This dividend will be paid to ILPT’s common shareholders of record as of the close of business on April 16, 2020 and distributed on or about May 21, 2020.

John Murray, President and Chief Executive Officer provided the following business update:

“ILPT is actively monitoring the developments of the COVID-19 pandemic. The welfare of employees as well as tenants and their businesses is of utmost importance in these challenging times. We believe the industrial logistics sector may be well-positioned to weather the disruptions related to the COVID-19 pandemic, due to a potential for increased reliance on e-commerce and logistics to support retailers and communities with essential services throughout the U.S. Many of our tenants are critical to the supply chain and responsible for a quick and reliable delivery of goods, which we believe will continue to support demand for industrial and logistics real estate like ours.

“Today’s dividend declaration underscores our Board of Trustee’s continued confidence in our capital position and ability to operate our business effectively through the current challenging market environment. As of December 31, 2019, we had $28.4 million in cash and approximately $440 million of availability under our $750 million revolving credit facility. In addition, we believe that our portfolio possesses a number of defensive qualities that may help mitigate the current disruptions facing the U.S. economy. For instance, more than 73% of our revenue comes from investment grade rated tenants, subsidiaries of investment grade rated parent entities or Hawaii land leases. Moreover, our portfolio is 99.3% occupied with a long average remaining lease term of 9.6 years and well-laddered lease maturities including 93.3% of annualized rent expiring after 2021.”

Industrial Logistics Properties Trust is a real estate investment trust, or REIT, that owns and leases industrial and logistics properties throughout the United States. ILPT is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, MA.

WARNING CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon ILPT’s present beliefs and expectations, but these statements and the implications of these statements are not guaranteed to occur and may not occur for various reasons, some of which are beyond ILPT’s control. For example:

• This press release states that ILPT’s dividend rate will be $0.33 per common share ($1.32 per share per year). A possible implication of this statement is that ILPT will continuously pay quarterly dividends of $0.33 per common share ($1.32 per share per year) in the future. ILPT’s dividend rates are set and reset from time to time by ILPT’s Board of Trustees. The ILPT Board considers many factors when setting dividend rates including ILPT’s historical and projected income, normalized funds from operations, cash available for distribution, the then current and expected needs and availability of cash to pay ILPT’s obligations and fund ILPT’s investments, ILPT’s distribution rate as a percentage of the trading price of its common shares, or divided yield, and the dividend yield of other industrial REITs, distributions which may be required to be paid by ILPT to qualify for taxation as a real estate investment trust and other factors deemed relevant by ILPT’s Board of Trustees in its discretion. Accordingly, future dividend rates may be increased or decreased and there is no assurance as to the rate at which future dividends will be paid.
• This press release states that ILPT believes that the industrial logistics sector may be well-positioned to weather the disruptions related to the COVID-19 pandemic, due to a potential for increased reliance on e-commerce and logistics to support retailers and communities with essential services through the U.S. However, even if this potential is realized it may not be maintained or could be limited if, for example, stresses and challenges to the supply chain were to arise due to the COVID-19 pandemic, such as if widespread illness negatively impacts the workforce or if other supply chain issues arise, including those that may be outside ILPT’s tenants’ control, or otherwise.
• Mr. Murray references various factors as reasons for ILPT’s confidence in its capital position and ability to operate its business effectively through the current challenging market environment, including its cash balances, the availability under its revolving credit facility, the extent to which its revenues come from investment grade rated tenants, subsidiaries of investment grade rated parent entities or Hawaii land leases, its portfolio’s current high occupancy with long average remaining lease terms and its well-laddered lease maturities. However, if the current market conditions continue for a long period or worsen, ILPT’s tenants may experience liquidity constraints despite their current characteristics, which may result in their being unable or unwilling to pay rent to ILPT and ILPT’s ability to operate its business effectively may be challenged. Further, ILPT’s ability to borrow under its credit facility is subject to it satisfying certain covenants and conditions. If ILPT’s operating results and financial condition are significantly negatively impacted by the current economic conditions or otherwise, it mail fail to satisfy those covenants and conditions.

The information contained in ILPT’s filings with the Securities and Exchange Commission, or SEC, including under the caption “Risk Factors” in ILPT’s periodic reports or incorporated therein, identifies important factors that could cause ILPT’s actual results to differ materially from those stated or implied by ILPT’s forward-looking statements. ILPT’s filings with the SEC are available at 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.

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