Industrial Logistics Properties Trust Announces Two Portfolio Acquisitions Totaling $905.3 Million

Portfolio of Eight Properties in Two States, Seven of Which Closed on
February 14, 2019

Portfolio of 18 Properties in 12 States Expected to Close Within 60
Days

NEWTON, Mass.–(BUSINESS WIRE)–Industrial Logistics Properties Trust (Nasdaq: ILPT) today announced
transactions to acquire two portfolios of industrial properties for an
aggregate purchase price of $905.3 million, excluding acquisition
related costs.

On February 14, 2019, ILPT agreed to acquire from an unrelated third
party an eight-property portfolio located in the Indianapolis and
Cincinnati market areas, with an aggregate of approximately 4.2 million
square feet. The total purchase price of the portfolio was $280.0
million, excluding acquisition related costs, representing a GAAP
capitalization rate of 6.0%. On February 14, 2019, ILPT closed on seven
of the eight properties and the purchase of the remaining property
remains subject to due diligence and is expected to close within 60
days. The eight properties are 100% leased to 10 tenants and have a
weighted average (by revenue) remaining lease term of more than four
years, a weighted average (by square feet) building age of 13 years and
a weighted average (by square feet) clear height of 34 feet. Investment
grade rated tenants, including leading e-commerce companies, account for
approximately 59% of the annualized rental revenues from this portfolio.

Also on February 14, 2019, ILPT entered an agreement to acquire from
affiliates of Cole Office & Industrial REIT (CCIT II), Inc. a portfolio
of 18 properties located in 12 states with an aggregate of approximately
8.7 million square feet. The total purchase price of the portfolio is
$625.3 million, excluding acquisition related costs, representing a GAAP
capitalization rate of 6.4%. This acquisition is subject to customary
closing conditions and is expected to close within 60 days. The 18
properties are 100% leased to 13 tenants and have a weighted average (by
revenue) remaining lease term of more than nine years, a weighted
average (by square feet) building age of nine years and a weighted
average (by square feet) clear height of 33 feet. Investment grade rated
tenants, including leading e-commerce companies, account for
approximately 74% of the annualized rental revenues from this portfolio.

ILPT is funding these acquisitions with cash on hand from its recent
$650 million mortgage financing and by drawing on its $750 million
revolving credit facility.

We have made great progress on our acquisition and portfolio
optimization strategy in 2019,” said John Murray, ILPT’s President and
Chief Executive Officer. “These transactions demonstrate ILPT’s
commitment to executing on our business plan to grow our industrial
asset base using low cost debt to enhance future earnings and create
value for our shareholders. We have announced the acquisition of more
than $1 billion of high quality properties since our IPO in January
2018, and we continue to be encouraged by the growth of e-commerce and
logistics industries and the strength of the nationwide industrial
market. When both of the transactions announced today are closed, Amazon
and FedEx will be our two largest tenants accounting for 13.8% and 3.6%,
respectively, of annualized rental revenue.”

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 REGARDING 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. FOR EXAMPLE:

  • THIS PRESS RELEASE STATES THAT THE ACQUISITION OF THE REMAINING
    PROPERTY IN THE EIGHT PROPERTY PORTFOLIO IS EXPECTED TO CLOSE WITHIN
    60 DAYS AND THAT THE ACQUISITION OF THE PORTFOLIO OF 18 PROPERTIES IS
    EXPECTED TO CLOSE WITHIN 60 DAYS. HOWEVER, THESE TRANSACTIONS ARE
    SUBJECT TO CONDITIONS AND THEY MAY NOT OCCUR, THEY MAY BE DELAYED OR
    THEIR TERMS MAY CHANGE.
  • ILPT’S PRESIDENT AND CHIEF EXECUTIVE OFFICER STATES IN THIS PRESS
    RELEASE THAT ILPT IS COMMITTED ON EXECUTING ITS BUSINESS PLAN TO GROW
    ITS INDUSTRIAL ASSET BASE USING LOW COST DEBT TO ENHANCE FUTURE
    EARNINGS AND CREATE VALUE FOR ITS SHAREHOLDERS. HOWEVER, ILPT MAY NOT
    SUCCEED IN EXECUTING ITS BUSINESS PLAN.
  • ILPT’S PRESIDENT AND CHIEF EXECUTIVE OFFICER STATES IN THIS PRESS
    RELEASE THAT ILPT CONTINUES TO BE ENCOURAGED BY THE GROWTH OF
    E-COMMERCE AND LOGISTICS INDUSTRIES AND THE STRENGTH OF THE NATIONWIDE
    INDUSTRIAL MARKET. THIS MAY IMPLY THAT THESE TRENDS WILL CONTINUE.
    HOWEVER, E-COMMERCE RETAIL SALES MAY NOT CONTINUE TO GROW AND INCREASE
    THE DEMAND FOR INDUSTRIAL AND LOGISTICS PROPERTIES AS ILPT EXPECTS.

THE INFORMATION CONTAINED IN ILPT’S FILINGS WITH THE SECURITIES AND
EXCHANGE

COMMISSION, OR 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 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.

Contacts

Olivia Snyder, Manager, Investor Relations
(617) 219-1489
www.ilptreit.com

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