Industrial Logistics Properties Trust Reduces Dividend for Second Quarter to $0.01 Per Share

Industrial Logistics Properties Trust (Nasdaq: ILPT) today announced that ILPT’s Board of Trustees has reduced ILPT’s regular quarterly cash distribution on its common shares for the second quarter to $0.01 per share. This dividend will be paid to ILPT’s common shareholders of record as of the close of business on July 25, 2022 and distributed on or about August 18, 2022.

Earlier this year, ILPT closed on the strategic acquisition of Monmouth Real Estate Investment Corporation, or Monmouth, which significantly enhanced ILPT’s scale, tenant base and geographic diversity. Since then, there have been unanticipated increases in interest rates and deterioration in real estate market conditions. As a result, it is taking longer than originally expected to complete ILPT’s long term financing plan for the Monmouth acquisition, which includes the sale of additional equity interests in its consolidated joint venture, property sales and other refinancing activities. ILPT is reducing its quarterly dividend to enhance its liquidity until it completes its long term financing plan for the Monmouth acquisition and/or its leverage profile otherwise improves. ILPT currently anticipates that its dividend will return to a rate at, or close to, its historical level sometime in 2023.

Regardless of its current reduced quarterly dividend rate of $0.01 per share, ILPT expects that its dividends to its common shareholders in 2022 will be at least equal to the minimum amounts required for ILPT to remain a real estate investment trust, or REIT, for federal income tax purposes.

ILPT plans to discuss today’s announcement further during its second quarter 2022 conference call scheduled for Wednesday, July 27, 2022.

Industrial Logistics Properties Trust (Nasdaq: ILPT) is a REIT focused on owning and leasing high quality distribution and logistics properties that serve the growing needs of e-commerce. As of March 31, 2022, ILPT’s portfolio consisted of 412 properties containing approximately 59.7 million rentable square feet located in 39 states. Approximately 77% 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 $37 billion in assets under management as of March 31, 2022 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 www.ilptreit.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:

• In this press release, ILPT announces that it is reducing its quarterly dividend to enhance its liquidity until ILPT completes its long term financing plan for the Monmouth acquisition and/or its leverage profile otherwise improves. However, if interest rates continue to increase and general real estate market conditions further deteriorate, the actions taken by ILPT may not provide sufficient liquidity and ILPT’s long term financing plan for the Monmouth acquisition may be further delayed, cost more than expected or never be completed. Further, unanticipated events may require ILPT to expend amounts not currently planned. As a result, ILPT may not be successful in managing its liquidity and reducing its leverage as expected.
• This press release states that ILPT currently anticipates that its dividend will return to a rate at, or close to, its historical level sometime in 2023. However, ILPT may not resume paying regular quarterly dividends on its common shares at or close to historical levels as or when expected, and its reduction of its regular quarterly dividend on its common shares may extend for an indefinite period. Moreover, capital market conditions may not improve or ILPT's own financial circumstances may change so that it becomes unable or unwilling to increase its regular quarterly dividends on its common shares. Also, ILPT’s rate of dividends on its common shares may be changed because of changes in ILPT’s earnings, liquidity, financial leverage or other circumstances.

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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