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Industrial Logistics Properties Trust (Nasdaq: ILPT) has successfully priced $1.16 billion in five-year, interest-only fixed-rate mortgage financing. The financing is secured by a portfolio of 101 industrial properties located across the U.S. mainland and Hawaii.
The transaction is expected to close on or around June 26, 2025. The proceeds, along with $75 million in cash on hand, will be used to fully repay $1.235 billion in floating-rate mortgage debt due in October 2025. This refinancing will reduce ILPT’s interest expense, lower the interest rate to a fixed 6.399%, and eliminate the need for future interest rate caps on this tranche of debt.
ILPT’s Chief Financial Officer and Treasurer, Tiffany Sy, stated that the refinancing allows the company to convert 100% of its wholly owned debt to fixed rates. By repaying $75 million of debt, locking in a lower interest rate, and eliminating interest rate cap requirements, ILPT anticipates 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, Bank of Montreal, Morgan Stanley Mortgage Capital Holdings LLC, Royal Bank of Canada, and UBS AG New York Branch, with Dechert LLP representing the lenders and Skadden, Arps, Slate, Meagher & Flom LLP serving as legal counsel to ILPT.
ILPT, a real estate investment trust (REIT), specializes in owning and leasing high-quality distribution and logistics properties. As of March 31, 2025, its portfolio consisted of 411 properties spanning 59.9 million rentable square feet across 39 states. Approximately 76% of ILPT’s annualized rental revenues come from investment-grade tenants, 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 $40 billion in assets under management as of March 31, 2025.
For more details, visit ILPT’s official website or read the full announcement here.
