ILPT Reports $0.32 Per Share in Normalized Funds From Operations for Third Quarter
Key Facts
Industrial Logistics Properties Trust reported third-quarter results on October 28 for the three months ended September 30, 2026, recording $0.32 per share in normalized funds from operations. The measure increased 42.4% year over year, compared with $0.26 per share in the third quarter of 2025, based on figures the company restated. But the result fell below the range the company had previously set for the quarter, at $0.34 to $0.36 per share. The analyst estimate of $0.35 included in the earlier draft could not be verified. The results highlight two divergent trends: improving operating cash flow and occupancy, alongside a wider net loss than a year earlier.
Net loss attributable to common shareholders was $30.214 million, or $0.46 per share, in the third quarter of 2026. In the same period of 2025, the trust recorded a net loss of $21.565 million, or $0.33 per share. Net loss therefore widened despite year-over-year growth in normalized funds from operations. The two measures present the results differently: the first reflects net loss, while the second measures normalized funds from operations attributable to common shareholders. The company said prior comparisons for this measure were restated after including incentive management fees recognized under U.S. accounting standards.
Rental income rose to $116.805 million in the third quarter, from $110.936 million in the same period a year earlier. Same-property net operating income also increased 5.7% year over year to $91.993 million. The company completed leases covering about 645,000 square feet during the quarter, at weighted-average rates 162.7% above the prior rents for the same spaces. The average lease term, weighted by annualized rental income, was 15.8 years. At the end of September, portfolio occupancy reached 98.3%, up 420 basis points year over year.
The company attributed growth in normalized funds from operations to a refinancing completed in the second quarter, which it said eliminated its remaining exposure to variable interest rates. It also linked the increase to occupancy rising 420 basis points from a year earlier. The company said 100% of its debt carries fixed interest rates and that no debt maturities are scheduled until 2029. These factors provide context for growth in the operating measure during the quarter, while net loss remained wider than in the corresponding period. Restating prior periods also means the comparison of normalized funds from operations uses the updated accounting basis announced by the company.
For its outlook, the company maintained its 2026 fiscal-year estimate for net operating income of between $363 million and $364 million. It also forecast normalized funds from operations of between $82 million and $83 million, or $1.23 to $1.25 per diluted share. Fourth-quarter guidance puts the measure at between $22 million and $23 million, or $0.33 to $0.35 per diluted share. The results were announced one day after the closing price recorded in EL7 data, with ILPT shares closing at $7.38 on October 27. The company’s results conference call was scheduled for October 29 at 10:00 a.m. Eastern time.
The company declared a quarterly cash distribution of $0.10 per share on October 8, payable on or about November 12, 2026. The distribution announcement was among the quarterly details the company reported alongside its operating and debt results. The results conference call scheduled for October 29 is expected to provide details on performance and the announced guidance. The prior third-quarter guidance range remains the direct benchmark for the result, at $0.34 to $0.36 per share compared with an actual result of $0.32. By contrast, the company’s annual data showed growth in normalized funds from operations and improved occupancy, while net loss increased.