Industrial Logistics Properties Trust Sells Six Properties to Its Joint Venture

ILPT to Receive Total Net Proceeds of Approximately $190 Million

Industrial Logistics Properties Trust (Nasdaq: ILPT) today announced that it has entered into an agreement to add six industrial properties to its existing joint venture with institutional investors for an aggregate price of approximately $206 million. The properties are 100% leased for a weighted average remaining lease term (by annualized rental income) of 4.0 years and total 2.5 million square feet. ILPT continues to own a 22% equity interest in the joint venture and the joint venture plans to incur approximately $134 million of debt secured by the properties in early 2022, which will result in total net proceeds to ILPT of approximately $190 million. ILPT plans to use the net proceeds from the sale and subsequent debt financing to reduce outstanding borrowings under its $750 million unsecured revolving credit facility.

John Murray, President and Chief Executive Officer of ILPT, made the following statement regarding today’s announcement:

“The sale of these six properties to our joint venture underscores the value of ILPT’s high-quality industrial portfolio and the strength of our relationships with strong institutional private capital partners. This transaction will enable ILPT to raise efficient equity capital that will be used to reduce leverage and increase financing capacity to fund future growth plans. With these assets, our joint venture now totals 11.7 million square feet across 18 properties in 12 states. We look forward to continuing to expand this private capital vehicle and enhancing value for ILPT shareholders over the long term.”

The list of properties contributed to the joint venture in this transaction is as follows:

The joint venture is managed by The RMR Group (Nasdaq: RMR), which also manages ILPT. RMR provides property management services nationwide for nearly 1,300 properties with approximately 91 million square feet of office, industrial, medical office, life science and retail space.

About Industrial Logistics Properties Trust

Industrial Logistics Properties Trust (Nasdaq: ILPT) is a real estate investment trust, or REIT, focused on owning and leasing high quality distribution and logistics properties that serve the growing needs of e-commerce. ILPT’s portfolio consists of more than 290 properties containing approximately 36 million rentable square feet leased to over 260 tenants in 33 states. More than 70% of ILPT’s annual rental revenues 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 more than $32 billion in assets under management and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. ILPT is headquartered in Newton, MA. For more information, visit ilptreit.com.

About The RMR Group Inc.

The RMR Group (Nasdaq: RMR) is a leading U.S. alternative asset management company, unique for its focus on commercial real estate (CRE) and related businesses. RMR’s vertical integration is supported by approximately 600 real estate professionals in over 30 offices nationwide who manage over $32 billion in assets under management and leverage 35 years of institutional experience in buying, selling, financing and operating CRE. RMR benefits from a scalable platform, a deep and experienced management team and a diversity of direct real estate strategies across its clients. RMR is headquartered in Newton, MA and was founded in 1986. For more information, please visit www.rmrgroup.com.

WARNING CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon ILPT’s present beliefs and expectations, but these statements and the implications of these statements are not guaranteed to occur and may not occur for various reasons, some of which are beyond ILPT’s control. For example:

• This press release states that the joint venture plans to incur approximately $134 million of debt secured by the properties in early 2022. However, the joint venture may be unable to obtain debt financing in early 2022 or at all, and any debt financing arrangement the joint venture may enter into may not be on the terms ILPT expects or desires. As a result, ILPT may receive lower total net proceeds from this transaction than it currently expects.
• Mr. Murray states that the sale of properties to the joint venture announced today underscores the value of ILPT’s industrial real estate. This may imply that ILPT’s remaining portfolio may have similar value or that ILPT could finance those properties in similar joint venture or other transactions. However, the value of ILPT’s properties may not be similar to the value of the six properties that are the subject of the sale announced today. Further, property values change and may decline. In addition, investors and other financing sources may not agree to finance any of those properties.
• Mr. Murray states in this press release that the sale of properties to the joint venture underscores the strength of ILPT’s relationships with strong institutional private capital partners. This may imply that ILPT will engage in additional transactions with its joint venture partners and that ILPT will find additional capital partners or enter into additional joint ventures in the future. However, ILPT may not engage in additional transactions with its joint venture partners and ILPT may not be able to identify other suitable capital partners in the future. In addition, any future joint venture arrangements ILPT may enter into may not be successful.
• Mr. Murray’s states that this transaction will enable ILPT to raise efficient equity capital that will be used to reduce leverage and increase financing capacity to fund future growth plans. This may imply that ILPT’s leverage will be sustained at this reduced level. However, ILPT has a revolving credit facility under which it may borrow, repay and reborrow amounts and ILPT may seek to obtain additional debt financing in the future. As such, ILPT may not maintain the reduced leverage it achieves by completing this transaction and may not have increased financing capacity to fund future growth plans.
• Mr. Murray states in this press release that ILPT looks forward to both continuing to expand its private capital vehicle and enhancing value for ILPT shareholders over the long term. However, ILPT may not be able to raise or deploy additional private capital in the future or its capital partners may fail to fund their required capital contributions. Further, any raising and deployment of additional capital may not increase value for ILPT’s shareholders and ILPT may not realize the value to its shareholders it expects from this joint venture.

The information contained in ILPT’s filings with the Securities and Exchange Commission, or SEC, including under the caption “Risk Factors” in ILPT’s periodic reports or incorporated therein, identifies important factors that could cause ILPT’s actual results to differ materially from those stated 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.

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