Industrial Logistics Properties Trust reported its fourth‑quarter 2025 results with a net loss of $1.8 million, or $0.03 per share, a dramatic improvement from the $24.1 million loss ($0.37 per diluted share) recorded in Q4 2024. Normalized FFO rose to $18.9 million, or $0.29 per share, up 113% from $8.9 million ($0.13 per diluted share) in the prior year, and exceeded analyst consensus of $0.28 per share by $0.01, or roughly 3.6%. Revenue for the quarter was $113.91 million, slightly below the $114.12 million consensus estimate, a miss of $0.21 million (0.18%).
The sharp narrowing of the net loss and the substantial jump in Normalized FFO reflect a combination of stronger leasing activity and higher rent roll‑ups. The company leased 3.99 million square feet during the quarter, a record volume, and achieved a weighted‑average rent increase of 25.7%, while maintaining a consolidated occupancy rate of 94.5%. These leasing gains helped offset the modest revenue shortfall and drove the FFO beat.
Management guidance for the first quarter of 2026 projects an earnings loss of $0.12 per share on revenue of $114.37 million, and a full‑year 2026 loss of $0.81 per share on revenue of $460.08 million. The guidance signals a cautious outlook, with management acknowledging the need to manage costs while capitalizing on the strong leasing momentum that underpinned the quarter’s performance.
Financial leverage remains a concern: net debt stood at $4.03 billion, representing 69.0% of total gross assets and 87.9% of market capitalization. The debt‑to‑equity ratio of 4.59 and an interest‑coverage ratio of 1.3× highlight the company’s high leverage and thin coverage of interest expenses.
Market reaction to the earnings was muted; shares held steady in after‑market trading, reflecting the mixed signals of a strong earnings beat offset by a slight revenue miss and a cautious outlook for the coming year.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.