Financing Proceeds Will Be Used to Fully Repay $1.4 Billion Floating Rate Loan and $0.2 Billion of Fixed Rate Amortizing Mortgage Debt
NEWTON, Mass.--(BUSINESS WIRE)--
Industrial Logistics Properties Trust (Nasdaq: ILPT) today announced that it has priced $1.62 billion of five-year, interest-only fixed rate mortgage financing for its consolidated joint venture, Mountain Industrial REIT LLC, or Mountain JV, at an interest rate of 5.71%. The financing proceeds are expected to be used to refinance Mountain JV’s $1.4 billion of floating rate mortgage debt due in March 2027 and $0.2 billion of fixed rate amortizing mortgage debt. The new financing will be secured by the same 90 industrial properties previously pledged as collateral for the floating rate and amortizing mortgage debt being refinanced. The closing of the financing is expected to occur on or about May 8, 2026.
Tiffany Sy, Chief Financial Officer and Treasurer of ILPT, made the following statement:
“With this refinancing, Mountain JV will unlock nearly $20 million in annual cash flow by eliminating its amortizing debt. All of ILPT’s consolidated debt will be fixed rate, limiting our exposure to market interest rate volatility. We believe this successful execution underscores the strength of our high quality industrial and logistics properties.”
The financing is being led by Wells Fargo Bank, National Association, and is provided together with Citi Real Estate Funding Inc.; Bank of America, N.A.; UBS AG New York Branch; Morgan Stanley Bank, N.A.; Bank of Montreal, represented by Sidley Austin 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, or REIT, focused on owning and leasing high quality industrial and logistics properties. As of December 31, 2025, ILPT’s portfolio consisted of 409 properties containing approximately 59.6 million rentable square feet located in 39 states. Approximately 76% of ILPT’s annualized rental revenues as of December 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 over $37 billion in assets under management as of December 31, 2025 and 40 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.
WARNING CONCERNING 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. For example:
The closing of Mountain JV’s $1.62 billion mortgage financing is expected to occur on or about May 8, 2026 with an interest rate of 5.71%, and the financing proceeds are expected to be used to refinance Mountain JV’s $1.4 billion floating rate debt and $0.2 billion of fixed rate amortizing mortgage debt. However, ILPT cannot be sure that Mountain JV will close this financing on the expected terms and/or for the expected proceeds or at all or that the closing of the financing will not be delayed, or that it will be able to repay its floating rate and/or amortizing debt with the financing proceeds or when expected; and
Ms. Sy made statements in this press release regarding the execution of the secured financing, Mountain JV’s expected annual cash flow and the strength of ILPT’s high quality industrial and logistics properties. However, the closing of the financing is subject to conditions and may not occur on the terms or timeline as expected. As a result, Mountain JV may not be able to eliminate its amortizing debt to increase its annual cash flow, and ILPT may not be able to take advantage of a fixed interest rate and limit its exposure to market interest rate volatility.
Actual results may differ materially from those contained in or implied by ILPT’s forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond ILPT’s control.
The information contained in ILPT’s filings with the SEC, including under the caption “Risk Factors” in ILPT’s periodic reports, or incorporated therein, identifies other important factors that could cause differences from ILPT’s forward-looking statements. ILPT’s filings with the SEC are available on 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.
Kevin Barry, Senior Director, Investor Relations
(617) 219-1410
Source: Industrial Logistics Properties Trust
Key Terms
fixed ratefinancial
A fixed rate is an interest percentage or return that does not change for the life of a loan, bond, deposit, or other financial contract, giving predictable payments or income like a lease with the same rent each month. For investors it matters because it locks in earnings or costs regardless of market swings, helping with budgeting and risk control but potentially missing out if market rates rise.
mortgage financingfinancial
A mortgage financing is a long-term loan secured by real estate that lets buyers or companies purchase property by paying over time while the property itself serves as collateral. Investors care because mortgages affect property owners’ cash flow, credit risk and ability to expand — similar to a household using a car loan to free up cash for other needs — and changes in interest rates or default rates can materially change the value and income of related investments.
floating ratefinancial
An interest rate on a loan, bond or deposit that is not fixed but resets at regular intervals based on a reference market rate plus a set margin, so the payments rise or fall as overall interest rates change. For investors, floating-rate instruments act like a weather vane: they can protect income when rates climb by increasing payouts, but they introduce unpredictable cash flow and price movement when rates fall or shift, affecting expected yield and valuation.
amortizing mortgage debtfinancial
Amortizing mortgage debt is a loan structure where each scheduled payment includes both interest and part of the original loan amount, so the outstanding balance steadily falls until the debt is fully paid at the end of the term. Investors care because this creates predictable cash flows and reduces outstanding leverage over time, lowering default risk and improving a borrower’s financial health — like watching a car loan get smaller with every monthly payment.
collateralfinancial
Collateral is an asset a borrower pledges to a lender as security for a loan; if the borrower fails to repay, the lender can take the asset to recover losses. For investors, collateral matters because it reduces lender risk, influences interest rates and loan terms, and determines who gets paid first if a company faces financial trouble—think of it like a pawned item that gives the lender extra protection.
A loan or payment plan where the borrower pays only the interest for a set period while the original loan amount (the principal) stays unchanged; after that period payments typically rise to cover principal or a lump-sum principal payment is due. For investors this matters because interest-only structures change cash flows and risk: they can boost short-term income but increase the chance of payment shock or default later, similar to renting a car without paying down the purchase cost until the final bill arrives.
