Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 23, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38342 | |
Entity Registrant Name | INDUSTRIAL LOGISTICS PROPERTIES TRUST | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 82-2809631 | |
Entity Address, Address Line One | Two Newton Place, | |
Entity Address, Address Line Two | 255 Washington Street, | |
Entity Address, Address Line Three | Suite 300, | |
Entity Address, City or Town | Newton, | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02458-1634 | |
City Area Code | 617 | |
Local Phone Number | 219-1460 | |
Title of 12(b) Security | Common Shares of Beneficial Interest | |
Trading Symbol | ILPT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 65,843,823 | |
Entity Central Index Key | 0001717307 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Real estate properties: | |||
Land | $ 1,110,279 | $ 1,117,779 | |
Buildings and improvements | 4,017,355 | 4,058,329 | |
Total real estate properties, gross | 5,127,634 | 5,176,108 | |
Accumulated depreciation | (361,814) | (273,467) | |
Total real estate properties, net | 4,765,820 | 4,902,641 | |
Assets of properties held for sale | 57,606 | 0 | |
Investment in unconsolidated joint venture | 124,411 | 124,358 | |
Acquired real estate leases, net | 254,968 | 297,445 | |
Cash and cash equivalents | 83,283 | 48,261 | |
Restricted cash | 139,220 | [1] | 92,519 |
Rents receivable, including straight line rents of $91,218 and $80,710, respectively | 113,665 | 107,011 | |
Other assets, net | 95,342 | 103,931 | |
Total assets | 5,634,315 | 5,676,166 | |
LIABILITIES AND EQUITY | |||
Mortgages and notes payable, net | 4,303,631 | 4,244,501 | |
Liabilities of properties held for sale | 1,156 | 0 | |
Assumed real estate lease obligations, net | 19,466 | 22,523 | |
Total liabilities | 4,416,177 | 4,345,395 | |
Commitments and contingencies | |||
Equity: | |||
Common shares of beneficial interest, $.01 par value: 100,000,000 shares authorized; 65,845,073 and 65,568,145 shares issued and outstanding, respectively | 658 | 656 | |
Additional paid in capital | 1,015,468 | 1,014,201 | |
Cumulative net income | 40,436 | 117,185 | |
Cumulative other comprehensive income | 22,142 | 21,903 | |
Cumulative common distributions | (365,189) | (363,221) | |
Total equity attributable to common shareholders | 713,515 | 790,724 | |
Noncontrolling interest | 504,623 | 540,047 | |
Total equity | 1,218,138 | 1,330,771 | |
Total liabilities and equity | 5,634,315 | 5,676,166 | |
Nonrelated Party | |||
LIABILITIES AND EQUITY | |||
Accounts payable and other liabilities | 86,028 | 73,547 | |
Related Party | |||
LIABILITIES AND EQUITY | |||
Accounts payable and other liabilities | $ 5,896 | $ 4,824 | |
[1]Restricted cash consists of amounts escrowed for capital expenditures at certain of our mortgaged properties and cash held for the operations of our consolidated joint venture. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Straight line rents | $ 91,218 | $ 80,710 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common shares, shares issued (in shares) | 65,845,073 | 65,568,145 |
Common shares, shares outstanding (in shares) | 65,845,073 | 65,568,145 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues [Abstract] | ||||
Rental income | $ 110,142 | $ 103,215 | $ 328,443 | $ 281,812 |
Expenses: | ||||
Real estate taxes | 14,926 | 13,749 | 46,493 | 36,460 |
Other operating expenses | 9,907 | 8,453 | 27,744 | 22,278 |
Depreciation and amortization | 43,912 | 48,519 | 134,278 | 114,096 |
General and administrative | 7,712 | 9,110 | 23,750 | 24,896 |
Acquisition and other transaction related costs | 0 | 586 | 0 | 586 |
Loss on impairment of real estate | 0 | 0 | 254 | 100,747 |
Total expenses | 76,457 | 80,417 | 232,519 | 299,063 |
Interest and other income | 2,397 | 1,068 | 5,340 | 1,900 |
Interest expense (including net amortization of debt issuance costs, premiums and discounts of $6,743, $35,496, $20,177, and $90,265, respectively) | (72,941) | (89,739) | (215,558) | (208,286) |
Loss on sale of real estate | 0 | 0 | (974) | (10) |
Loss on equity securities | 0 | 0 | 0 | (5,758) |
Loss on early extinguishment of debt | 0 | (21,370) | (359) | (22,198) |
Loss before income tax expense and equity in earnings of unconsolidated joint venture | (36,859) | (87,243) | (115,627) | (251,603) |
Income tax expense | (51) | (28) | (113) | (113) |
Equity in earnings of unconsolidated joint venture | 3,297 | 7,423 | 6,634 | |
Net loss | (36,191) | (83,974) | (108,317) | (245,082) |
Net loss attributable to noncontrolling interest | 10,079 | 38,347 | 31,568 | 49,402 |
Net loss attributable to common shareholders | (26,112) | (45,627) | (76,749) | (195,680) |
Other comprehensive income: | ||||
Unrealized (loss) gain on derivative instrument recognized in cumulative other comprehensive loss | (6,635) | 8,847 | (3,392) | 18,917 |
Less: unrealized loss (gain) on derivatives attributable to noncontrolling interest | 2,290 | (4,119) | 3,631 | (6,617) |
Other comprehensive (loss) income attributable to common shareholders | (4,345) | 4,728 | 239 | 12,300 |
Comprehensive loss attributable to common shareholders | $ (30,457) | $ (40,899) | $ (76,510) | $ (183,380) |
Weighted average common shares outstanding - basic (in shares) | 65,488 | 65,250 | 65,389 | 65,228 |
Weighted average common shares outstanding - diluted (in shares) | 65,488 | 65,250 | 65,389 | 65,228 |
Per common share data (basic and diluted): | ||||
Net loss attributable to common shareholders, basic (in dollars per share) | $ (0.40) | $ (0.70) | $ (1.17) | $ (3) |
Net loss attributable to common shareholders, diluted (in dollars per share) | $ (0.40) | $ (0.70) | $ (1.17) | $ (3) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Amortization of debt issuance costs and premium | $ 6,743 | $ 35,496 | $ 20,177 | $ 90,265 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Total Equity Attributable to Common Shareholders | Common shares | Additional Paid-in Capital | Cumulative Net Income | Cumulative Other Comprehensive Income | Cumulative Common Distributions | Total Attributable to Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2021 | 65,404,592 | |||||||
Beginning balance at Dec. 31, 2021 | $ 1,038,042 | $ 1,038,042 | $ 654 | $ 1,012,224 | $ 343,908 | $ 0 | $ (318,744) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (9,787) | (6,514) | (6,514) | (3,273) | ||||
Share grants, repurchases and forfeitures (in shares) | (733) | |||||||
Share grants, repurchases and forfeitures | 398 | 398 | 398 | |||||
Other comprehensive income (loss) | 5,632 | 3,908 | 3,908 | 1,724 | ||||
Contributions from noncontrolling interest | 591,268 | 591,268 | ||||||
Distributions to common shareholders | (21,584) | (21,584) | (21,584) | |||||
Ending balance (in shares) at Mar. 31, 2022 | 65,403,859 | |||||||
Ending balance at Mar. 31, 2022 | 1,603,969 | 1,014,250 | $ 654 | 1,012,622 | 337,394 | 3,908 | (340,328) | 589,719 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (151,321) | (143,539) | (143,539) | (7,782) | ||||
Share grants, repurchases and forfeitures (in shares) | 23,600 | |||||||
Share grants, repurchases and forfeitures | 796 | 796 | 796 | |||||
Other comprehensive income (loss) | 4,438 | 3,664 | 3,664 | 774 | ||||
Distributions to noncontrolling interest | (1,365) | (1,365) | ||||||
Distributions to common shareholders | (21,583) | (21,583) | (21,583) | |||||
Ending balance (in shares) at Jun. 30, 2022 | 65,427,459 | |||||||
Ending balance at Jun. 30, 2022 | 1,434,934 | 853,588 | $ 654 | 1,013,418 | 193,855 | 7,572 | (361,911) | 581,346 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (83,974) | (45,627) | (45,627) | (38,347) | ||||
Share grants, repurchases and forfeitures (in shares) | 141,245 | |||||||
Share grants, repurchases and forfeitures | 386 | 386 | $ 2 | 384 | ||||
Other comprehensive income (loss) | 8,847 | 4,728 | 4,728 | 4,119 | ||||
Contributions from noncontrolling interest | 1,971 | 1,971 | ||||||
Distributions to common shareholders | (654) | (654) | (654) | |||||
Ending balance (in shares) at Sep. 30, 2022 | 65,568,704 | |||||||
Ending balance at Sep. 30, 2022 | $ 1,361,510 | 812,421 | $ 656 | 1,013,802 | 148,228 | 12,300 | (362,565) | 549,089 |
Beginning balance (in shares) at Dec. 31, 2022 | 65,568,145 | 65,568,145 | ||||||
Beginning balance at Dec. 31, 2022 | $ 1,330,771 | 790,724 | $ 656 | 1,014,201 | 117,185 | 21,903 | (363,221) | 540,047 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (35,546) | (24,809) | (24,809) | (10,737) | ||||
Share grants, repurchases and forfeitures (in shares) | (2,176) | |||||||
Share grants, repurchases and forfeitures | 384 | 384 | 384 | |||||
Other comprehensive income (loss) | (8,778) | (7,018) | (7,018) | (1,760) | ||||
Distributions to common shareholders | (656) | (656) | (656) | |||||
Ending balance (in shares) at Mar. 31, 2023 | 65,565,969 | |||||||
Ending balance at Mar. 31, 2023 | $ 1,286,175 | 758,625 | $ 656 | 1,014,585 | 92,376 | 14,885 | (363,877) | 527,550 |
Beginning balance (in shares) at Dec. 31, 2022 | 65,568,145 | 65,568,145 | ||||||
Beginning balance at Dec. 31, 2022 | $ 1,330,771 | 790,724 | $ 656 | 1,014,201 | 117,185 | 21,903 | (363,221) | 540,047 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Distributions to common shareholders | $ (1,968) | |||||||
Ending balance (in shares) at Sep. 30, 2023 | 65,845,073 | 65,845,073 | ||||||
Ending balance at Sep. 30, 2023 | $ 1,218,138 | 713,515 | $ 658 | 1,015,468 | 40,436 | 22,142 | (365,189) | 504,623 |
Beginning balance (in shares) at Mar. 31, 2023 | 65,565,969 | |||||||
Beginning balance at Mar. 31, 2023 | 1,286,175 | 758,625 | $ 656 | 1,014,585 | 92,376 | 14,885 | (363,877) | 527,550 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (36,580) | (25,828) | (25,828) | (10,752) | ||||
Share grants, repurchases and forfeitures (in shares) | 131,990 | |||||||
Share grants, repurchases and forfeitures | 554 | 554 | $ 1 | 553 | ||||
Other comprehensive income (loss) | 12,021 | 11,602 | 11,602 | 419 | ||||
Distributions to noncontrolling interest | (225) | (225) | ||||||
Distributions to common shareholders | (656) | (656) | (656) | |||||
Ending balance (in shares) at Jun. 30, 2023 | 65,697,959 | |||||||
Ending balance at Jun. 30, 2023 | 1,261,289 | 744,297 | $ 657 | 1,015,138 | 66,548 | 26,487 | (364,533) | 516,992 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (36,191) | (26,112) | (26,112) | (10,079) | ||||
Share grants, repurchases and forfeitures (in shares) | 147,114 | |||||||
Share grants, repurchases and forfeitures | 331 | 331 | $ 1 | 330 | ||||
Other comprehensive income (loss) | (6,635) | (4,345) | (4,345) | (2,290) | ||||
Distributions to common shareholders | $ (656) | (656) | (656) | |||||
Ending balance (in shares) at Sep. 30, 2023 | 65,845,073 | 65,845,073 | ||||||
Ending balance at Sep. 30, 2023 | $ 1,218,138 | $ 713,515 | $ 658 | $ 1,015,468 | $ 40,436 | $ 22,142 | $ (365,189) | $ 504,623 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (108,317) | $ (245,082) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation | 93,545 | 75,014 | |
Loss on impairment of real estate | 254 | 100,747 | |
Net amortization of debt issuance costs, premiums and discounts | 20,177 | 90,265 | |
Amortization of acquired real estate leases and assumed real estate lease obligations | 38,275 | 33,680 | |
Amortization of deferred leasing costs | 1,723 | 1,170 | |
Loss on equity securities | 0 | 5,758 | |
Straight line rental income | (10,531) | (8,170) | |
Loss on early extinguishment of debt | 359 | 22,198 | |
Loss on sale of real estate | 974 | 10 | |
Proceeds from settlement of derivatives | (40,426) | 0 | |
Other non-cash expenses | 19,865 | 4,443 | |
Distributions of earnings from unconsolidated joint venture | 2,970 | 3,962 | |
Equity in earnings of unconsolidated joint venture | (7,423) | (6,634) | |
Change in assets and liabilities: | |||
Rents receivable | 3,260 | (16,299) | |
Other assets | (11,459) | 3,615 | |
Accounts payable and other liabilities | 9,745 | 14,921 | |
Due to related persons | 1,072 | 2,309 | |
Net cash provided by operating activities | 14,063 | 81,907 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Real estate acquisitions | 0 | (3,589,085) | |
Real estate improvements | (13,649) | (8,741) | |
Proceeds from sale of marketable securities | 0 | 140,792 | |
Proceeds from sale of real estate | 243 | 0 | |
Proceeds from settlement of derivatives | 40,426 | 0 | |
Distributions in excess of earnings from unconsolidated joint venture | 4,400 | 0 | |
Net cash provided by (used in) investing activities | 31,420 | (3,457,034) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of mortgage notes payable | 91,000 | 3,335,000 | |
Repayment of mortgage notes payable | (50,993) | (12,591) | |
Proceeds from secured bridge loan facility | 0 | 1,385,158 | |
Repayment of secured bridge loan facility | 0 | (1,385,158) | |
Borrowings under revolving credit facility | 0 | 3,000 | |
Repayments of revolving credit facility | 0 | (185,000) | |
Payment of debt issuance costs | (1,414) | (211,996) | |
Distributions to common shareholders | (1,968) | (43,821) | |
Proceeds from sale of noncontrolling interest, net | 0 | 589,411 | |
Repurchase of common shares | (160) | (239) | |
Distributions to noncontrolling interest | (225) | (1,365) | |
Net cash provided by financing activities | 36,240 | 3,472,399 | |
Increase in cash, cash equivalents and restricted cash | 81,723 | 97,272 | |
Cash, cash equivalents and restricted cash at beginning of period | 140,780 | 29,397 | |
Cash, cash equivalents and restricted cash at end of period | 222,503 | 126,669 | |
SUPPLEMENTAL DISCLOSURES: | |||
Interest paid | 218,369 | 113,748 | |
Income taxes paid | 85 | 223 | |
Interest capitalized | 545 | 68 | |
NON-CASH INVESTING ACTIVITIES: | |||
Real estate acquired by assumption of mortgage notes payable | 0 | 323,432 | |
Real estate improvements accrued not paid | 2,810 | 7,165 | |
NON-CASH FINANCING ACTIVITIES: | |||
Assumption of mortgage notes payable | 0 | (323,432) | |
SUPPLEMENTAL DISCLOSURE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH: | |||
Cash and cash equivalents | 83,283 | 26,381 | |
Restricted cash | [1] | 139,220 | 100,288 |
Total cash, cash equivalents and restricted cash shown in the statements of cash flows | $ 222,503 | $ 126,669 | |
[1]Restricted cash consists of amounts escrowed for capital expenditures at certain of our mortgaged properties and cash held for the operations of our consolidated joint venture. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying condensed consolidated financial statements of Industrial Logistics Properties Trust and its consolidated subsidiaries, or the Company, ILPT, we, us or our, are unaudited. Certain information and disclosures required by U.S. generally accepted accounting principles, or GAAP, for complete financial statements have been condensed or omitted. We believe the disclosures made are adequate to make the information presented not misleading. However, the accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2022, or our 2022 Annual Report. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of results for the interim period have been included. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. Our operating results for interim periods are not necessarily indicative of the results that may be expected for the full year.The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts. Actual results could differ from those estimates. Significant estimates in the condensed consolidated financial statements include purchase price allocations, useful lives of fixed assets, and assessment of impairment of real estate and related intangibles. |
Real Estate Investments
Real Estate Investments | 9 Months Ended |
Sep. 30, 2023 | |
Real Estate [Abstract] | |
Real Estate Investments | Real Estate Investments As of September 30, 2023, our portfolio was comprised of 413 consolidated properties containing approximately 59,983,000 rentable square feet, including 226 buildings, leasable land parcels and easements containing approximately 16,729,000 rentable square feet of primarily industrial lands located on the island of Oahu, Hawaii, or our Hawaii Properties, and 187 industrial properties containing approximately 43,254,000 rentable square feet located in 38 other states, or our Mainland Properties, which included 94 properties in 27 states totaling approximately 20,981,000 rentable square feet, owned by a consolidated joint venture in which we own a 61% equity interest. As of September 30, 2023, we also owned a 22% equity interest in an unconsolidated joint venture which owns 18 industrial properties located in 12 states totaling approximately 11,726,000 rentable square feet. We operate in one business segment: ownership and leasing of properties that include industrial and logistics buildings and leased industrial lands. We incurred capital expenditures and leasing costs at certain of our properties of $5,275 and $8,574 during the three months ended September 30, 2023 and 2022, respectively, and $17,857 and $22,419 for the nine months ended September 30, 2023 and 2022, respectively. During the nine months ended September 30, 2023, we committed $7,273 for expenditures related to tenant improvements and leasing costs for leases executed during the period for approximately 3,868,000 rentable square feet. Committed, but unspent, tenant related obligations based on existing leases as of September 30, 2023 were $5,923, of which $3,529 is expected to be spent during the next 12 months. Impairment We regularly evaluate whether events or changes in circumstances have occurred that could indicate an impairment in the value of long lived assets. Impairment indicators may include declining tenant occupancy, lack of progress leasing vacant space, tenant bankruptcies, low long term prospects for improvement in property performance, weak or declining tenant profitability, cash flow or liquidity, our decision to dispose of an asset before the end of its estimated useful life and legislative, market or industry changes that could permanently reduce the value of a property. If there is an indication that the carrying value of an asset is not recoverable, we estimate the projected undiscounted cash flows to determine if an impairment loss should be recognized. The future net undiscounted cash flows are subjective and are based in part on assumptions regarding hold periods, market rents and terminal capitalization rates. If the carrying value exceeds the projected undiscounted cash flows, we determine the amount of any impairment loss by comparing the historical carrying value to estimated fair value. We estimate fair value through an evaluation of recent financial performance and projected discounted cash flows using standard industry valuation techniques. In addition to consideration of impairment upon the events or changes in circumstances described above, we regularly evaluate the remaining useful lives of our long lived assets. If we change our estimate of the remaining useful lives, we allocate the carrying value of the affected assets over their revised remaining useful lives. During the nine months ended September 30, 2023, we recognized a loss on impairment of real estate of $254 to reduce the carrying value of a property that was classified as held for sale at September 30, 2023 to its estimated sales price less costs to sell. During the nine months ended September 30, 2022, we recognized a $100,747 loss on impairment for 25 properties we acquired as part of our acquisition of Monmouth Real Estate Investment Corporation, or MNR, on February 25, 2022, to adjust the carrying value of these properties to their estimated fair value. Disposition Activities In March 2023, we received gross proceeds of $270 and recognized a $974 net loss on sale of real estate as a result of a property in Everett, Washington partially taken by eminent domain. As of September 30, 2023, we had three Mainland Properties with an aggregate carrying value of $56,944, classified as held for sale in our condensed consolidated balance sheet. As of October 25, 2023, one of these properties is under agreement to sell for a sales price of $21,500, excluding closing costs. This pending sale is subject to conditions; accordingly, we cannot be sure that we will complete this sale, that this sale will not be delayed or that the terms will not change. We terminated agreements to sell two of these properties for an aggregate sales price of $43,765 and we continue to market one of these two properties for sale. Consolidated Joint Venture We own a 61% equity interest in Mountain Industrial REIT LLC, or Mountain JV, or our consolidated joint venture, which owns 94 properties in 27 states totaling approximately 20,981,000 rentable square feet. We control our consolidated joint venture and therefore account for the properties owned by this joint venture on a consolidated basis in our condensed consolidated financial statements. We recognized a 39% noncontrolling interest in our condensed consolidated financial statements for the three months ended September 30, 2023 and 2022, for the nine months ended September 30, 2023 and the period from this joint venture’s formation date, February 25, 2022 to September 30, 2022. The portion of this joint venture's net loss not attributable to us, or $10,238 and $38,318, for the three months ended September 30, 2023 and 2022, respectively, and $31,642 and $49,360 for the nine months ended September 30, 2023 and for the period from February 25, 2022 to September 30, 2022, respectively, is reported as net loss attributable to noncontrolling interest in our condensed consolidated statements of comprehensive income (loss). As of September 30, 2023, our consolidated joint venture had total assets of $3,065,834 and total liabilities of $1,781,222. Consolidated Tenancy in Common An unrelated third party owns an approximate 33% tenancy in common interest in one property located in Somerset, New Jersey with approximately 64,000 rentable square feet, and we own the remaining 67% tenancy in common interest in this property. The portion of this property’s net income (loss) not attributable to us, or $159 and ($29), for the three months ended September 30, 2023 and 2022, respectively, and $74 and ($42) for the nine months ended September 30, 2023 and the period from the date we acquired our interest in this property, February 25, 2022 to September 30, 2022, respectively, is reported as net loss attributable to noncontrolling interest in our condensed consolidated statements of comprehensive income (loss). During the nine months ended September 30, 2023, this tenancy in common made cash distributions of $225 to the unrelated third party investor, which is reflected as a decrease in noncontrolling interest in our condensed consolidated balance sheet. Unconsolidated Joint Venture We own a 22% equity interest in The Industrial Fund REIT LLC, or the unconsolidated joint venture, which owns 18 industrial properties located in 12 states totaling approximately 11,726,000 rentable square feet. We account for the unconsolidated joint venture under the equity method of accounting under the fair value option. We recognize changes in the fair value of our investment in the unconsolidated joint venture as equity in earnings of the unconsolidated joint venture in our condensed consolidated statements of comprehensive income (loss). |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases We are a lessor of industrial and logistics properties. Our leases provide our tenants with the contractual right to use and economically benefit from all the physical space specified in their respective leases; therefore, we have determined to evaluate our leases as lease arrangements. We recognize rental income from operating leases on a straight line basis over the lease term when we have determined that the collectability of substantially all of the lease payments is probable. We increased rental income by $3,414 and $3,794 to record revenue on a straight line basis during the three months ended September 30, 2023 and 2022, respectively, and $10,531 and $8,170 for the nine months ended September 30, 2023 and 2022, respectively. We do not include in our measurement of our lease receivables certain variable payments, including payments determined by changes in the index or market-based indices after the inception of the lease, certain tenant reimbursements and other income until the specific events that trigger the variable payments have occurred. Such payments totaled $19,310 and $16,664 for the three months ended September 30, 2023 and 2022, respectively, and $58,700 and $46,071 for the nine months ended September 30, 2023 and 2022, respectively. Generally, payments of ground lease obligations are made by our tenants. However, if a tenant does not perform obligations under a ground lease or does not renew any ground lease, we may have to perform obligations under, or renew, the ground lease in order to protect our investment in the affected property. We define annualized rental revenues as the annualized contractual base rents from our tenants pursuant to our lease agreements as of the measurement date, including straight line rent adjustments and estimated recurring expense reimbursements to be paid to us, and excluding lease value amortization. Right of Use Assets and Lease Liabilities We are the lessee for three of our properties subject to ground leases and one office property that we assumed as part of our acquisition of MNR. For leases with a term greater than 12 months under which we are the lessee, we are required to record a right of use asset and lease liability. The values of our right of use assets and related lease liabilities were $4,757 and $4,837, respectively, as of September 30, 2023, and $5,084 and $5,149, respectively, as of December 31, 2022. Our right of use assets and related lease liabilities are included in other assets, net and accounts payable and other liabilities, respectively, in our condensed consolidated balance sheets. We sublease a portion of our office property assumed in the acquisition of MNR. Rent expense incurred under this lease, net of sublease revenue, was $12 and $176 for three months ended September 30, 2023 and 2022, respectively, and $141 and $355 for the nine months ended September 30, 2023 and the period from February 25, 2022 to September 30, 2022, respectively. Rent expense is included in general and administrative expense in our condensed consolidated statements of comprehensive income (loss). Tenant Concentration Subsidiaries of FedEx Corporation and Amazon.com Services, Inc. were responsible for approximately 29.8% and 6.7% of our annualized rental revenues as of September 30, 2023, respectively, and 29.6% and 6.8% as of September 30, 2022, respectively. Geographic Concentration For the three months ended September 30, 2023 and 2022, approximately 28.1% and 26.8%, respectively, of our rental income was from our Hawaii Properties. For the nine months ended September 30, 2023 and 2022, approximately 27.9% and 30.6%, respectively, of our rental income was from our Hawaii Properties. |
Indebtedness
Indebtedness | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness As of September 30, 2023 and December 31, 2022, our outstanding indebtedness consisted of the following: Number of Principal Balance at Carrying Value of Collateral at Properties September 30, December 31, Interest September 30, December 31, Entity Secured By 2023 2022 Rate (1) Type Maturity 2023 2022 ILPT 104 $ 1,235,000 $ 1,235,000 6.18% Floating 10/9/2024 $ 1,049,983 $ 1,071,815 ILPT 186 650,000 650,000 4.31% Fixed 2/7/2029 489,901 490,416 ILPT 17 700,000 700,000 4.42% Fixed 3/9/2032 508,383 518,806 Mountain JV 82 1,400,000 1,400,000 6.17% Floating 3/9/2024 1,870,541 1,909,185 Mountain JV 4 91,000 — 6.25% Fixed 6/10/2030 184,375 — Mountain JV 1 11,712 12,691 3.67% Fixed 5/1/2031 29,094 30,800 Mountain JV 1 13,228 14,144 4.14% Fixed 7/1/2032 43,826 44,777 Mountain JV 1 29,213 30,949 4.02% Fixed 10/1/2033 85,380 87,143 Mountain JV 1 40,832 43,219 4.13% Fixed 11/1/2033 130,197 131,539 Mountain JV 1 24,873 26,175 3.10% Fixed 6/1/2035 46,725 47,718 Mountain JV 1 40,087 42,087 2.95% Fixed 1/1/2036 99,805 101,896 Mountain JV 1 44,423 46,109 4.27% Fixed 11/1/2037 110,881 113,063 Mountain JV 1 50,002 52,031 3.25% Fixed 1/1/2038 114,259 116,607 Mountain JV 1 — 13,556 N/A Fixed 10/1/2028 — 63,314 Mountain JV 1 — 4,865 N/A Fixed 4/1/2030 — 39,724 Mountain JV 1 — 5,145 N/A Fixed 4/1/2030 — 39,724 Mountain JV 1 — 14,392 N/A Fixed 9/1/2030 — 50,825 Total / weighted average 4,330,370 4,290,363 5.47% $ 4,763,350 $ 4,857,352 Unamortized debt issuance costs (26,739) (45,862) Total indebtedness, net $ 4,303,631 $ 4,244,501 (1) Interest rates are as of September 30, 2023 and reflect the impact of interest rate caps, if any, and exclude the impact of the amortization of debt issuance costs, premiums and discounts. Our $1,235,000 loan, or the ILPT Floating Rate Loan, matures in October 2024, subject to three, one year extension options, and requires that interest be paid at an annual rate of secured overnight financing rate, or SOFR, plus a weighted average premium of 3.93%. The weighted average interest rate payable under the ILPT Floating Rate Loan was 6.18%, including the impact of our interest rate cap on SOFR of 2.25%, for both the three and nine months ended September 30, 2023. Beginning in October 2023, subject to the satisfaction of certain conditions, we have the option to prepay the ILPT Floating Rate Loan in full or in part at any time at par with no premium. Our $1,400,000 loan, or the Floating Rate Loan, matures in March 2024, subject to three, one year extension options, and requires that interest be paid at an annual rate of SOFR plus a premium of 2.77%. The weighted average annual interest rate payable under the Floating Rate Loan was 6.17%, including the impact of our interest rate cap on SOFR of 3.40%, for both the three and nine months ended September 30, 2023. The weighted average annual interest rate payable under the Floating Rate Loan was 4.94% and 4.23% for the three months ended September 30, 2022 and the period from February 25, 2022 to September 30, 2022, respectively. Subject to the satisfaction of certain conditions, we have the option to prepay up to $280,000 of the Floating Rate Loan at par with no premium, and to prepay the balance of the Floating Rate Loan at any time, subject to a premium. See Note 9 for more information regarding our interest rate caps. In May 2023, our consolidated joint venture obtained a $91,000 fixed rate, interest only mortgage loan secured by four properties owned by our consolidated joint venture. This mortgage loan matures in June 2030 and requires that interest be paid at an annual rate of 6.25%. A portion of the net proceeds from this mortgage loan was used to repay four outstanding mortgage loans of our consolidated joint venture with an aggregate outstanding principal balance of $35,910 and a weighted average interest rate of 3.70%. We recognized a loss on early extinguishment of debt of $359 for the nine months ended September 30, 2023 in conjunction with the repayment of these mortgage loans. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities Our financial instruments include cash and cash equivalents, restricted cash, mortgages and notes payables, accounts payable and interest rate caps. At September 30, 2023 and December 31, 2022, the fair value of our financial instruments approximated their carrying values in our condensed consolidated financial statements, due to their short term nature or floating interest rates, except as follows: At September 30, 2023 At December 31, 2022 Carrying Carrying Value (1) Fair Value Value (1) Fair Value Fixed rate loan, 4.31% interest rate, due in 2029 $ 647,077 $ 613,520 $ 646,669 $ 592,295 Fixed rate loan, 6.25% interest rate, due in 2030 90,038 94,438 — — Fixed rate loan, 3.67% interest rate, due in 2031 11,712 11,009 12,691 11,713 Fixed rate loan, 4.42% interest rate, due in 2032 695,134 609,714 694,704 623,133 Fixed rate loan, 4.14% interest rate, due in 2032 13,228 12,611 14,144 13,182 Fixed rate loan, 4.02% interest rate, due in 2033 29,213 27,185 30,949 28,195 Fixed rate loan, 4.13% interest rate, due in 2033 40,832 38,181 43,219 39,573 Fixed rate loan, 3.10% interest rate, due in 2035 24,873 21,837 26,175 22,373 Fixed rate loan, 2.95% interest rate, due in 2036 40,087 34,723 42,087 35,444 Fixed rate loan, 4.27% interest rate, due in 2037 44,423 41,466 46,109 41,880 Fixed rate loan, 3.25% interest rate, due in 2038 50,001 43,463 52,031 43,878 Fixed rate loan, 3.76% interest rate, due in 2028 (2) — — 13,556 12,784 Fixed rate loan, 3.77% interest rate, due in 2030 (2) — — 4,865 4,553 Fixed rate loan, 3.85% interest rate, due in 2030 (2) — — 5,145 4,829 Fixed rate loan, 3.56% interest rate, due in 2030 (2) — — 14,392 13,315 $ 1,686,618 $ 1,548,147 $ 1,646,736 $ 1,487,147 (1) Includes unamortized debt issuance costs, premiums and discounts of $8,751 and $8,628 at September 30, 2023 and December 31, 2022, respectively. (2) This loan was repaid in May 2023. We estimate the fair value of our mortgage notes payable using significant unobservable inputs (Level 3), such as discounted cash flow analyses and prevailing market rates as of the measurement date. The table below presents certain of our assets measured on a recurring and non-recurring basis at fair value at September 30, 2023 and December 31, 2022, categorized by the level of inputs as defined in the fair value hierarchy under GAAP, used in the valuation of each asset: Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) At September 30, 2023 Recurring fair value measurements Investment in unconsolidated joint venture $ 124,411 $ — $ — $ 124,411 Interest rate cap derivatives (1) $ 51,322 $ — $ 51,322 $ — Non-recurring fair value measurements Real estate properties (2) $ 1,414 $ — $ — $ 1,414 At December 31, 2022 Recurring fair value measurements Investment in unconsolidated joint venture $ 124,358 $ — $ — $ 124,358 Interest rate cap derivatives (1) $ 73,133 $ — $ 73,133 $ — Non-recurring fair value measurements Real estate properties (2) $ 555,123 $ — $ — $ 555,123 (1) The estimated fair values of our interest rate cap derivatives are based on then current market prices in secondary markets for similar derivative contracts. (2) At September 30, 2023 and December 31, 2022, we reduced the carrying value of one property and 25 properties, respectively, to their estimated fair value based on third party offers. See Note 2 for more information. At September 30, 2023 and December 31, 2022, the fair value of our investment in the unconsolidated joint venture was determined by discounting expected future cash flows based on prevailing market rents over a holding period and including an exit capitalization rate to determine the final year of cash flows. The discount rates, exit capitalization rates and holding periods used are Level 3 significant unobservable inputs and are shown in the table below: Exit Capitalization Valuation Technique Discount Rates Rates Holding Periods At September 30, 2023 Investment in unconsolidated joint venture Discounted cash flow 5.25% - 7.00% 4.95% - 6.00% 10 - 12 years At December 31, 2022 Investment in unconsolidated joint venture Discounted cash flow 5.25% - 7.00% 4.75% - 6.00% 10 years The table below presents a summary of the changes in fair value for our investment in the unconsolidated joint venture: Three Months Nine Months Ended September 30, Ended September 30, 2023 2022 2023 2022 Beginning balance $ 129,082 $ 143,716 $ 124,358 $ 143,021 Equity in earnings of unconsolidated joint venture 719 3,297 7,423 6,634 Distributions from unconsolidated joint venture (5,390) (1,320) (7,370) (3,962) Ending balance $ 124,411 $ 145,693 $ 124,411 $ 145,693 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Common Share Awards On June 1, 2023, in accordance with our Trustee compensation arrangements, we awarded to each of our seven Trustees 20,000 of our common shares, valued at $1.78 per share, the closing price of our common shares on The Nasdaq Stock Market LLC, or Nasdaq, on that day. On September 13, 2023, we awarded under our equity compensation plan an aggregate of 188,350 of our common shares, valued at $3.63 per share, the closing price of our common shares on Nasdaq on that day, to our officers and certain other employees of The RMR Group LLC, or RMR. Common Share Purchases During the three and nine months ended September 30, 2023, we purchased an aggregate of 40,636 and 48,722 of our common shares, respectively, valued at a weighted average price of $3.54 and $3.29 per common share, respectively, from our officers and certain other current and former employees of RMR in satisfaction of tax withholding and payment obligations in connection with the vesting of awards of our common shares. Distributions During the nine months ended September 30, 2023, we declared and paid regular quarterly distributions to common shareholders as follows: Declaration Date Record Date Payment Date Distribution Per Share Total Distribution January 12, 2023 January 23, 2023 February 16, 2023 $ 0.01 $ 656 April 13, 2023 April 24, 2023 May 18, 2023 0.01 656 July 13, 2023 July 24, 2023 August 17, 2023 0.01 656 $ 0.03 $ 1,968 On October 12, 2023, we declared a regular quarterly distribution to common shareholders of record on October 23, 2023 of $0.01 per share, or approximately $658. We expect to pay this distribution to our shareholders on or about November 16, 2023 using cash balances. |
Business and Property Managemen
Business and Property Management Agreements with RMR | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Business and Property Management Agreements with RMR | Business and Property Management Agreements with RMR We have no employees. The personnel and various services we require to operate our business are provided to us by RMR. We have two agreements with RMR to provide management services to us: (1) a business management agreement, which relates to our business generally; and (2) a property management agreement, which relates to our property level operations. Pursuant to our business management agreement with RMR, we recognized net business management fees of $5,919 and $17,301 for the three and nine months ended September 30, 2023, respectively, and $6,465 and $17,821 for the three and nine months ended September 30, 2022, respectively. Based on our common share total return, as defined in our business management agreement, as of September 30, 2023 and 2022, no incentive fees are included in the net business management fees we recognized for the three and nine months ended September 30, 2023 or 2022. The actual amount of annual incentive fees for 2023, if any, will be based on our common share total return, as defined in our business management agreement, for the three-year period ending December 31, 2023, and will be payable in January 2024. We did not incur any incentive fee payable to RMR for the year ended December 31, 2022. We include business management fees in general and administrative expenses in our condensed consolidated statements of comprehensive income (loss). Pursuant to our property management agreement with RMR, we recognized aggregate property management and construction supervision fees of $3,464 and $10,286 for the three and nine months ended September 30, 2023, respectively, and $3,270 and $8,797 for the three and nine months ended September 30, 2022, respectively. Of these amounts, for the three and nine months ended September 30, 2023, $3,293 and $9,745, respectively, were included in other operating expenses in our condensed consolidated statements of comprehensive income (loss) and $171 and $541, respectively, were capitalized as building improvements in our condensed consolidated balance sheets. For the three and nine months ended September 30, 2022, $2,976 and $8,104, respectively, were included in other operating expenses in our condensed consolidated statements of comprehensive income (loss) and $294 and $693, respectively, were capitalized as buildings and improvements in our condensed consolidated balance sheets. The amounts capitalized are being depreciated over the estimated useful lives of the related capital assets. We are generally responsible for all our operating expenses, including certain expenses incurred or arranged by RMR on our behalf. We are generally not responsible for payment of RMR’s employment, office or administrative expenses incurred to provide management services to us, except for the employment and related expenses of RMR’s employees assigned to work exclusively or partly at our properties, our share of the wages, benefits and other related costs of RMR’s centralized accounting personnel, our share of RMR’s costs for providing our internal audit function, or as otherwise agreed. Our property level operating expenses are generally incorporated into the rents charged to our tenants, including certain payroll and related costs incurred by RMR. We reimbursed RMR $2,375 and $6,216 for these expenses and costs for the three and nine months ended September 30, 2023, respectively, and $1,847 and $5,155 for the three and nine months ended September 30, 2022, respectively. These amounts are included in other operating expenses and general and administrative expenses, as applicable, in our condensed consolidated statements of comprehensive income (loss). Management Agreements Between Our Joint Ventures and RMR. We have two separate joint venture arrangements, our consolidated joint venture and the unconsolidated joint venture. RMR provides management services to both of these joint ventures. We are not obligated to pay management fees to RMR under our management agreements with RMR for the services it provides to the unconsolidated joint venture. We are obligated to pay management fees to RMR under our management agreements with RMR for the services it provides to our consolidated joint venture; however, that joint venture pays management fees directly to RMR, and any such fees paid by our consolidated joint venture are credited against the fees payable by us to RMR. See Note 2 for further information about our joint ventures. See Note 8 for further information regarding our relationships, agreements and transactions with RMR. |
Related Person Transactions
Related Person Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Person Transactions | Related Person Transactions We have relationships and historical and continuing transactions with RMR, The RMR Group Inc., or RMR Inc., and others related to them, including other companies to which RMR or its subsidiaries provide management services and some of which have trustees, directors or officers who are also our Trustees or officers. RMR is a majority owned subsidiary of RMR Inc. The Chair of our Board of Trustees and one of our Managing Trustees, Adam D. Portnoy, is the sole trustee, an officer and the controlling shareholder of ABP Trust, which is the controlling shareholder of RMR Inc., the chair of the board of directors, a managing director and the president and chief executive officer of RMR Inc. and an officer and employee of RMR. Matthew P. Jordan, our other Managing Trustee, is an executive vice president and the chief financial officer and treasurer of RMR Inc., an officer and employee of RMR and an officer of ABP Trust. John G. Murray, one of our Managing Trustees until June 1, 2022 and our President and Chief Executive Officer until March 31, 2022, also serves as an officer and employee of RMR, and each of our current officers is also an officer and employee of RMR. Some of our Independent Trustees also serve as independent trustees of other public companies to which RMR or its subsidiaries provide management services. Adam D. Portnoy serves as chair of the boards and as a managing trustee of those companies. Other officers of RMR, including Messrs. Jordan and Murray and certain of our officers, serve as managing trustees or officers of certain of these companies. See Note 6 for information relating to the awards of our common shares we made in September 2023 to our officers and certain other employees of RMR and common shares we purchased from our officers and certain other current and former officers and employees of RMR in satisfaction of tax withholding and payment obligations in connection with the vesting of awards of our common shares. We include amounts recognized as expense for awards of our common shares to our officers and RMR employees in general and administrative expenses in our condensed consolidated statements of comprehensive income (loss). Our Manager, RMR . We have two agreements with RMR to provide management services to us. See Note 7 for further information regarding our management agreements with RMR. Joint Ventures. We have two separate joint venture arrangements. RMR provides management services to each of these joint ventures. As of September 30, 2023 and December 31, 2022, we owed $613 and $616 , respectively, to the unconsolidated joint venture for rents that we collected on behalf of that joint venture. These amounts are presented as due to related persons in our condensed consolidated balance sheets. We paid these amounts in October 2023 and January 2023, respectively. See Notes 2 and 7 for further information regarding our joint ventures and RMR’s management agreements with our joint ventures. For further information about these and other such relationships and certain other related person transactions, see our 2022 Annual Report. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities Risk Management Objective of Using Derivatives We are exposed to certain risks relating to our ongoing business operations, including the impact of changes in interest rates. The only risk currently managed by us using derivative instruments is our interest rate risk. We have an interest rate cap agreement to manage our interest rate risk exposure on each of the ILPT Floating Rate Loan and the Floating Rate Loan, both with interest payable at a rate equal to SOFR plus a premium. The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, we only enter into derivative financial instruments with counterparties with high credit ratings and with major financial institutions with which we or our related parties may also have other financial relationships. We do not anticipate that any of the counterparties will fail to meet their obligations. Cash Flow Hedges of Interest Rate Risk We record all derivatives in our condensed consolidated balance sheets at fair value. The following table summarizes the terms of our outstanding interest rate cap agreements designated as cash flow hedges of interest rate risk at September 30, 2023 and December 31, 2022: Interest Rate Balance Sheet Strike Notional Fair Value at Derivative Line Item Underlying Instrument Rate Amount September 30, 2023 December 31, 2022 Interest rate cap Other assets Floating Rate Loan 3.40% $ 1,400,000 $ 12,712 $ 23,337 Interest rate cap Other assets ILPT Floating Rate Loan 2.25% $ 1,235,000 38,610 49,796 $ 51,322 $ 73,133 Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. For derivatives designated and qualifying as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in cumulative other comprehensive income and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized over the life of the hedge on a systematic and rational basis, as documented at hedge inception in accordance with our accounting policy election. The earnings recognition of excluded components is presented in interest expense. Amounts reported in cumulative other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our applicable debt. In September 2022, in conjunction with the repayment of the then existing $1,385,158 bridge loan facility secured by 109 of our properties, we sold two interest rate cap instruments with an aggregate notional amount of $1,385,158, a strike rate equal to 2.70% and an original expiration date of March 15, 2023 for $7,740. As the underlying debt instrument that these interest rate caps were intended to hedge was repaid in its entirety and the related interest expense was no longer probable to occur, these interest rate caps were no longer designated as cash flow hedges and the remaining deferred gain was reclassified from cumulative other comprehensive income as a reduction of loss on early extinguishment of debt. The following table summarizes the activity related to our cash flow hedges within cumulative other comprehensive income for the periods shown: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Amount of gain recognized in cumulative other comprehensive income $ 3,428 $ 15,047 $ 19,677 $ 24,200 Amount reclassified from cumulative other comprehensive income into interest expense (10,063) 761 (23,069) 1,678 Amount reclassified from cumulative other comprehensive income into loss on early extinguishment of debt — (6,961) — (6,961) Unrealized (loss) gain on derivative instrument recognized in cumulative other comprehensive loss $ (6,635) $ 8,847 $ (3,392) $ 18,917 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | The accompanying condensed consolidated financial statements of Industrial Logistics Properties Trust and its consolidated subsidiaries, or the Company, ILPT, we, us or our, are unaudited. Certain information and disclosures required by U.S. generally accepted accounting principles, or GAAP, for complete financial statements have been condensed or omitted. We believe the disclosures made are adequate to make the information presented not misleading. However, the accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2022, or our 2022 Annual Report. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of results for the interim period have been included. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. Our operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts. Actual results could differ from those estimates. Significant estimates in the condensed consolidated financial statements include purchase price allocations, useful lives of fixed assets, and assessment of impairment of real estate and related intangibles. |
Indebtedness (Tables)
Indebtedness (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Indebtedness | As of September 30, 2023 and December 31, 2022, our outstanding indebtedness consisted of the following: Number of Principal Balance at Carrying Value of Collateral at Properties September 30, December 31, Interest September 30, December 31, Entity Secured By 2023 2022 Rate (1) Type Maturity 2023 2022 ILPT 104 $ 1,235,000 $ 1,235,000 6.18% Floating 10/9/2024 $ 1,049,983 $ 1,071,815 ILPT 186 650,000 650,000 4.31% Fixed 2/7/2029 489,901 490,416 ILPT 17 700,000 700,000 4.42% Fixed 3/9/2032 508,383 518,806 Mountain JV 82 1,400,000 1,400,000 6.17% Floating 3/9/2024 1,870,541 1,909,185 Mountain JV 4 91,000 — 6.25% Fixed 6/10/2030 184,375 — Mountain JV 1 11,712 12,691 3.67% Fixed 5/1/2031 29,094 30,800 Mountain JV 1 13,228 14,144 4.14% Fixed 7/1/2032 43,826 44,777 Mountain JV 1 29,213 30,949 4.02% Fixed 10/1/2033 85,380 87,143 Mountain JV 1 40,832 43,219 4.13% Fixed 11/1/2033 130,197 131,539 Mountain JV 1 24,873 26,175 3.10% Fixed 6/1/2035 46,725 47,718 Mountain JV 1 40,087 42,087 2.95% Fixed 1/1/2036 99,805 101,896 Mountain JV 1 44,423 46,109 4.27% Fixed 11/1/2037 110,881 113,063 Mountain JV 1 50,002 52,031 3.25% Fixed 1/1/2038 114,259 116,607 Mountain JV 1 — 13,556 N/A Fixed 10/1/2028 — 63,314 Mountain JV 1 — 4,865 N/A Fixed 4/1/2030 — 39,724 Mountain JV 1 — 5,145 N/A Fixed 4/1/2030 — 39,724 Mountain JV 1 — 14,392 N/A Fixed 9/1/2030 — 50,825 Total / weighted average 4,330,370 4,290,363 5.47% $ 4,763,350 $ 4,857,352 Unamortized debt issuance costs (26,739) (45,862) Total indebtedness, net $ 4,303,631 $ 4,244,501 (1) Interest rates are as of September 30, 2023 and reflect the impact of interest rate caps, if any, and exclude the impact of the amortization of debt issuance costs, premiums and discounts. |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Value and the Estimated Fair Market Value of Mortgage Notes Payable | At September 30, 2023 and December 31, 2022, the fair value of our financial instruments approximated their carrying values in our condensed consolidated financial statements, due to their short term nature or floating interest rates, except as follows: At September 30, 2023 At December 31, 2022 Carrying Carrying Value (1) Fair Value Value (1) Fair Value Fixed rate loan, 4.31% interest rate, due in 2029 $ 647,077 $ 613,520 $ 646,669 $ 592,295 Fixed rate loan, 6.25% interest rate, due in 2030 90,038 94,438 — — Fixed rate loan, 3.67% interest rate, due in 2031 11,712 11,009 12,691 11,713 Fixed rate loan, 4.42% interest rate, due in 2032 695,134 609,714 694,704 623,133 Fixed rate loan, 4.14% interest rate, due in 2032 13,228 12,611 14,144 13,182 Fixed rate loan, 4.02% interest rate, due in 2033 29,213 27,185 30,949 28,195 Fixed rate loan, 4.13% interest rate, due in 2033 40,832 38,181 43,219 39,573 Fixed rate loan, 3.10% interest rate, due in 2035 24,873 21,837 26,175 22,373 Fixed rate loan, 2.95% interest rate, due in 2036 40,087 34,723 42,087 35,444 Fixed rate loan, 4.27% interest rate, due in 2037 44,423 41,466 46,109 41,880 Fixed rate loan, 3.25% interest rate, due in 2038 50,001 43,463 52,031 43,878 Fixed rate loan, 3.76% interest rate, due in 2028 (2) — — 13,556 12,784 Fixed rate loan, 3.77% interest rate, due in 2030 (2) — — 4,865 4,553 Fixed rate loan, 3.85% interest rate, due in 2030 (2) — — 5,145 4,829 Fixed rate loan, 3.56% interest rate, due in 2030 (2) — — 14,392 13,315 $ 1,686,618 $ 1,548,147 $ 1,646,736 $ 1,487,147 (1) Includes unamortized debt issuance costs, premiums and discounts of $8,751 and $8,628 at September 30, 2023 and December 31, 2022, respectively. (2) This loan was repaid in May 2023. |
Schedule of Fair Value Measurements, Recurring and Nonrecurring | The table below presents certain of our assets measured on a recurring and non-recurring basis at fair value at September 30, 2023 and December 31, 2022, categorized by the level of inputs as defined in the fair value hierarchy under GAAP, used in the valuation of each asset: Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) At September 30, 2023 Recurring fair value measurements Investment in unconsolidated joint venture $ 124,411 $ — $ — $ 124,411 Interest rate cap derivatives (1) $ 51,322 $ — $ 51,322 $ — Non-recurring fair value measurements Real estate properties (2) $ 1,414 $ — $ — $ 1,414 At December 31, 2022 Recurring fair value measurements Investment in unconsolidated joint venture $ 124,358 $ — $ — $ 124,358 Interest rate cap derivatives (1) $ 73,133 $ — $ 73,133 $ — Non-recurring fair value measurements Real estate properties (2) $ 555,123 $ — $ — $ 555,123 (1) The estimated fair values of our interest rate cap derivatives are based on then current market prices in secondary markets for similar derivative contracts. (2) At September 30, 2023 and December 31, 2022, we reduced the carrying value of one property and 25 properties, respectively, to their estimated fair value based on third party offers. See Note 2 for more information. |
Schedule of Quantitative Information of Significant Unobservable Inputs Related to Certain Level 3 Fair Value Measurements | The discount rates, exit capitalization rates and holding periods used are Level 3 significant unobservable inputs and are shown in the table below: Exit Capitalization Valuation Technique Discount Rates Rates Holding Periods At September 30, 2023 Investment in unconsolidated joint venture Discounted cash flow 5.25% - 7.00% 4.95% - 6.00% 10 - 12 years At December 31, 2022 Investment in unconsolidated joint venture Discounted cash flow 5.25% - 7.00% 4.75% - 6.00% 10 years |
Schedule of the Change in Fair Value of the Investment in the Unconsolidated Joint Venture | The table below presents a summary of the changes in fair value for our investment in the unconsolidated joint venture: Three Months Nine Months Ended September 30, Ended September 30, 2023 2022 2023 2022 Beginning balance $ 129,082 $ 143,716 $ 124,358 $ 143,021 Equity in earnings of unconsolidated joint venture 719 3,297 7,423 6,634 Distributions from unconsolidated joint venture (5,390) (1,320) (7,370) (3,962) Ending balance $ 124,411 $ 145,693 $ 124,411 $ 145,693 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Distributions Declared and Paid | During the nine months ended September 30, 2023, we declared and paid regular quarterly distributions to common shareholders as follows: Declaration Date Record Date Payment Date Distribution Per Share Total Distribution January 12, 2023 January 23, 2023 February 16, 2023 $ 0.01 $ 656 April 13, 2023 April 24, 2023 May 18, 2023 0.01 656 July 13, 2023 July 24, 2023 August 17, 2023 0.01 656 $ 0.03 $ 1,968 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Swap Derivatives | The following table summarizes the terms of our outstanding interest rate cap agreements designated as cash flow hedges of interest rate risk at September 30, 2023 and December 31, 2022: Interest Rate Balance Sheet Strike Notional Fair Value at Derivative Line Item Underlying Instrument Rate Amount September 30, 2023 December 31, 2022 Interest rate cap Other assets Floating Rate Loan 3.40% $ 1,400,000 $ 12,712 $ 23,337 Interest rate cap Other assets ILPT Floating Rate Loan 2.25% $ 1,235,000 38,610 49,796 $ 51,322 $ 73,133 |
Schedule of Effects on Consolidated Statements of Income and Comprehensive Income | The following table summarizes the activity related to our cash flow hedges within cumulative other comprehensive income for the periods shown: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Amount of gain recognized in cumulative other comprehensive income $ 3,428 $ 15,047 $ 19,677 $ 24,200 Amount reclassified from cumulative other comprehensive income into interest expense (10,063) 761 (23,069) 1,678 Amount reclassified from cumulative other comprehensive income into loss on early extinguishment of debt — (6,961) — (6,961) Unrealized (loss) gain on derivative instrument recognized in cumulative other comprehensive loss $ (6,635) $ 8,847 $ (3,392) $ 18,917 |
Real Estate Investments (Detail
Real Estate Investments (Details) ft² in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | ||||||||
Oct. 25, 2023 USD ($) property | Mar. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment property | Sep. 30, 2022 USD ($) property | Sep. 30, 2023 property | Sep. 30, 2023 ft² | Sep. 30, 2023 building | Sep. 30, 2023 state | Sep. 30, 2023 | |
Real Estate Properties [Line Items] | ||||||||||||
Number of properties owned | property | 413 | |||||||||||
Rentable square feet (in sqft) | ft² | 59,983 | |||||||||||
Number of business segments | segment | 1 | |||||||||||
Capital expenditures incurred | $ 5,275 | $ 8,574 | $ 17,857 | $ 22,419 | ||||||||
Commitments related to tenant improvements and leasing costs | 7,273 | |||||||||||
Tenant improvements (in sqft) | ft² | 3,868 | |||||||||||
Committed but unspent tenant related obligations | 5,923 | 5,923 | ||||||||||
Committed but unspent tenant related obligations expected to be spent in the next 12 months | 3,529 | 3,529 | ||||||||||
Loss on impairment of real estate | 0 | 0 | 254 | 100,747 | ||||||||
Net income (loss) attributable to noncontrolling interest | (10,079) | (38,347) | (31,568) | (49,402) | ||||||||
Cash distributions | 225 | 1,365 | ||||||||||
Mountain Industrial REIT LLC | ||||||||||||
Real Estate Properties [Line Items] | ||||||||||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 39% | |||||||||||
Subsequent Event | Mainland Properties | ||||||||||||
Real Estate Properties [Line Items] | ||||||||||||
Number of properties | property | 2 | |||||||||||
Number of real estate properties under agreement to sell | property | 1 | |||||||||||
Real estate properties under agreement to sell, sales price | $ 21,500 | |||||||||||
Number of real estate properties, agreement terminated | property | 2 | |||||||||||
Terminated agreement sales price | $ 43,765 | |||||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Mainland Properties | ||||||||||||
Real Estate Properties [Line Items] | ||||||||||||
Number of properties | property | 3 | |||||||||||
Aggregate sales price excluding closing costs | 56,944 | 56,944 | ||||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Subsequent Event | Mainland Properties | ||||||||||||
Real Estate Properties [Line Items] | ||||||||||||
Number of properties | property | 1 | |||||||||||
Mountain Industrial REIT LLC | ||||||||||||
Real Estate Properties [Line Items] | ||||||||||||
Net income (loss) attributable to noncontrolling interest | (10,238) | (38,318) | $ (49,360) | (31,642) | ||||||||
Mountain Industrial REIT LLC | Other Joint Venture Investor | ||||||||||||
Real Estate Properties [Line Items] | ||||||||||||
Joint venture, total assets | 3,065,834 | 3,065,834 | ||||||||||
Joint venture, liabilities | 1,781,222 | 1,781,222 | ||||||||||
Twelve Mainland Properties | ||||||||||||
Real Estate Properties [Line Items] | ||||||||||||
Rentable square feet (in sqft) | ft² | 11,726 | |||||||||||
Number of states where real estate is located | state | 12 | |||||||||||
Ownership interest (as percent) | 22% | |||||||||||
Number of properties contributed | property | 18 | |||||||||||
Monmouth Real Estate Investment Corporation | ||||||||||||
Real Estate Properties [Line Items] | ||||||||||||
Loss on impairment of real estate | $ 100,747 | |||||||||||
Number of properties | property | 25 | |||||||||||
Tenancy in Common | Unrelated Third Party | ||||||||||||
Real Estate Properties [Line Items] | ||||||||||||
Cash distributions | $ 225 | |||||||||||
Consolidated | Mountain Industrial REIT LLC | ||||||||||||
Real Estate Properties [Line Items] | ||||||||||||
Number of properties owned | property | 94 | |||||||||||
Rentable square feet (in sqft) | ft² | 20,981 | |||||||||||
Number of states where real estate is located | 27,000 | 27 | ||||||||||
Ownership interest (as percent) | 61% | |||||||||||
Joint Venture | The Industrial Fund REIT LLC | ||||||||||||
Real Estate Properties [Line Items] | ||||||||||||
Ownership interest (as percent) | 22% | |||||||||||
Hawaii | ||||||||||||
Real Estate Properties [Line Items] | ||||||||||||
Rentable square feet (in sqft) | ft² | 16,729 | |||||||||||
Number of buildings, leasable land parcels easements | building | 226 | |||||||||||
Other States | ||||||||||||
Real Estate Properties [Line Items] | ||||||||||||
Number of properties owned | property | 187 | |||||||||||
Rentable square feet (in sqft) | ft² | 43,254 | |||||||||||
Number of states where real estate is located | state | 38 | |||||||||||
Everett, WA | Land | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||||
Real Estate Properties [Line Items] | ||||||||||||
Proceeds from sale of real estate | $ 270 | |||||||||||
Losses on sale of real estate | $ 974 | |||||||||||
Somerset, New Jersey | Tenancy in Common | Unrelated Third Party | ||||||||||||
Real Estate Properties [Line Items] | ||||||||||||
Rentable square feet (in sqft) | ft² | 64 | |||||||||||
Ownership interest (as percent) | 67% | |||||||||||
Number of properties | property | 1 | |||||||||||
Net income (loss) attributable to noncontrolling interest | $ 159 | $ (29) | $ (42) | $ 74 | ||||||||
Somerset, New Jersey | Tenancy in Common | Unrelated Third Party | ||||||||||||
Real Estate Properties [Line Items] | ||||||||||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 33% |
Leases (Details)
Leases (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) property | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) property | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Lessor, Lease, Description [Line Items] | |||||
Straight line rental income | $ 3,414 | $ 3,794 | $ 10,531 | $ 8,170 | |
Certain variable payments | $ 19,310 | 16,664 | $ 58,700 | 46,071 | |
Number of properties subject to ground leases | property | 3 | 3 | |||
Lessee, number of properties under an operating lease | property | 1 | ||||
Right-of-use asset | $ 4,757 | $ 4,757 | $ 5,084 | ||
Operating lease liability | 4,837 | 4,837 | $ 5,149 | ||
Sublease revenue | $ 12 | $ 176 | $ 141 | $ 355 | |
Sales Revenue, Net | Geographic Concentration Risk | Hawaii | |||||
Lessor, Lease, Description [Line Items] | |||||
Concentration risk | 28.10% | 26.80% | 27.90% | 30.60% | |
FedEx Corporation | |||||
Lessor, Lease, Description [Line Items] | |||||
Percentage of rentable square feet | 6.70% | 6.80% | 6.70% | 6.80% | |
Amazon.com, Inc | |||||
Lessor, Lease, Description [Line Items] | |||||
Percentage of rentable square feet | 29.80% | 29.60% | 29.80% | 29.60% |
Indebtedness - Schedule of Outs
Indebtedness - Schedule of Outstanding Indebtedness (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 USD ($) property | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Total principal balance | $ 4,330,370 | $ 4,290,363 | |
Unamortized debt issuance costs | (26,739) | $ (45,862) | |
Total indebtedness, net | $ 4,303,631 | $ 4,244,501 | |
Interest rate (as a percent) | 5.47% | ||
Net book value of collateral | $ 4,763,350 | 4,857,352 | |
Fixed rate loan, 3.67% interest rate, due in 2031 | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 3.67% | ||
Fixed rate loan, 4.02% interest rate, due in 2033 | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 4.02% | ||
Fixed rate loan, 4.13% interest rate, due in 2033 | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 4.13% | ||
Fixed rate loan, 3.10% interest rate, due in 2035 | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 3.10% | ||
Fixed rate loan, 2.95% interest rate, due in 2036 | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 2.95% | ||
Fixed rate loan, 4.27% interest rate, due in 2037 | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 4.27% | ||
Fixed rate loan, 3.25% interest rate, due in 2038 | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 3.25% | ||
Fixed rate loan, 3.76% interest rate, due in 2028 | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 3.76% | ||
Fixed rate loan, 3.77% interest rate, due in 2030 | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 3.77% | ||
Fixed rate loan, 3.85% interest rate, due in 2030 | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 3.85% | ||
Fixed rate loan, 3.56% interest rate, due in 2030 | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 3.56% | ||
Floating Rate Loan | |||
Debt Instrument [Line Items] | |||
Total indebtedness, net | $ 1,400,000 | ||
Floating Rate Loan | Floating Rate Loan, 6.18%, due in 2024 | |||
Debt Instrument [Line Items] | |||
Number of properties used as collateral | property | 104 | ||
Total principal balance | $ 1,235,000 | 1,235,000 | |
Interest rate (as a percent) | 6.18% | ||
Net book value of collateral | $ 1,049,983 | 1,071,815 | |
Floating Rate Loan | Floating Rate Loan, 6.17%, due in 2024 | |||
Debt Instrument [Line Items] | |||
Number of properties used as collateral | property | 82 | ||
Total principal balance | $ 1,400,000 | 1,400,000 | |
Interest rate (as a percent) | 6.17% | ||
Net book value of collateral | $ 1,870,541 | 1,909,185 | |
Fixed Rate Loan | Fixed Rate Loan, 4.31%, due in 2029 | |||
Debt Instrument [Line Items] | |||
Number of properties used as collateral | property | 186 | ||
Total principal balance | $ 650,000 | 650,000 | |
Interest rate (as a percent) | 4.31% | ||
Net book value of collateral | $ 489,901 | 490,416 | |
Fixed Rate Loan | Fixed Rate Loan, 4.42%, due in 2032 | |||
Debt Instrument [Line Items] | |||
Number of properties used as collateral | property | 17 | ||
Total principal balance | $ 700,000 | 700,000 | |
Interest rate (as a percent) | 4.42% | ||
Net book value of collateral | $ 508,383 | 518,806 | |
Fixed Rate Loan | Fixed rate loan, 6.25% due in 2030 | |||
Debt Instrument [Line Items] | |||
Number of properties used as collateral | property | 4 | ||
Total principal balance | $ 91,000 | 0 | |
Interest rate (as a percent) | 6.25% | ||
Net book value of collateral | $ 184,375 | 0 | |
Fixed Rate Loan | Fixed rate loan, 3.67% interest rate, due in 2031 | |||
Debt Instrument [Line Items] | |||
Number of properties used as collateral | property | 1 | ||
Total principal balance | $ 11,712 | 12,691 | |
Interest rate (as a percent) | 3.67% | ||
Net book value of collateral | $ 29,094 | 30,800 | |
Fixed Rate Loan | Fixed Rate Loan, 4.14%, due in 2032 | |||
Debt Instrument [Line Items] | |||
Number of properties used as collateral | property | 1 | ||
Total principal balance | $ 13,228 | 14,144 | |
Interest rate (as a percent) | 4.14% | ||
Net book value of collateral | $ 43,826 | 44,777 | |
Fixed Rate Loan | Fixed rate loan, 4.02% interest rate, due in 2033 | |||
Debt Instrument [Line Items] | |||
Number of properties used as collateral | property | 1 | ||
Total principal balance | $ 29,213 | 30,949 | |
Interest rate (as a percent) | 4.02% | ||
Net book value of collateral | $ 85,380 | 87,143 | |
Fixed Rate Loan | Fixed rate loan, 4.13% interest rate, due in 2033 | |||
Debt Instrument [Line Items] | |||
Number of properties used as collateral | property | 1 | ||
Total principal balance | $ 40,832 | 43,219 | |
Interest rate (as a percent) | 4.13% | ||
Net book value of collateral | $ 130,197 | 131,539 | |
Fixed Rate Loan | Fixed rate loan, 3.10% interest rate, due in 2035 | |||
Debt Instrument [Line Items] | |||
Number of properties used as collateral | property | 1 | ||
Total principal balance | $ 24,873 | 26,175 | |
Interest rate (as a percent) | 3.10% | ||
Net book value of collateral | $ 46,725 | 47,718 | |
Fixed Rate Loan | Fixed rate loan, 2.95% interest rate, due in 2036 | |||
Debt Instrument [Line Items] | |||
Number of properties used as collateral | property | 1 | ||
Total principal balance | $ 40,087 | 42,087 | |
Interest rate (as a percent) | 2.95% | ||
Net book value of collateral | $ 99,805 | 101,896 | |
Fixed Rate Loan | Fixed rate loan, 4.27% interest rate, due in 2037 | |||
Debt Instrument [Line Items] | |||
Number of properties used as collateral | property | 1 | ||
Total principal balance | $ 44,423 | 46,109 | |
Interest rate (as a percent) | 4.27% | ||
Net book value of collateral | $ 110,881 | 113,063 | |
Fixed Rate Loan | Fixed rate loan, 3.25% interest rate, due in 2038 | |||
Debt Instrument [Line Items] | |||
Number of properties used as collateral | property | 1 | ||
Total principal balance | $ 50,002 | 52,031 | |
Interest rate (as a percent) | 3.25% | ||
Net book value of collateral | $ 114,259 | 116,607 | |
Fixed Rate Loan | Fixed rate loan, 3.76% interest rate, due in 2028 | |||
Debt Instrument [Line Items] | |||
Number of properties used as collateral | property | 1 | ||
Total principal balance | $ 0 | 13,556 | |
Net book value of collateral | $ 0 | 63,314 | |
Fixed Rate Loan | Fixed rate loan, 3.77% interest rate, due in 2030 | |||
Debt Instrument [Line Items] | |||
Number of properties used as collateral | property | 1 | ||
Total principal balance | $ 0 | 4,865 | |
Net book value of collateral | $ 0 | 39,724 | |
Fixed Rate Loan | Fixed rate loan, 3.85% interest rate, due in 2030 | |||
Debt Instrument [Line Items] | |||
Number of properties used as collateral | property | 1 | ||
Total principal balance | $ 0 | 5,145 | |
Net book value of collateral | $ 0 | 39,724 | |
Fixed Rate Loan | Fixed rate loan, 3.56% interest rate, due in 2030 | |||
Debt Instrument [Line Items] | |||
Number of properties used as collateral | property | 1 | ||
Total principal balance | $ 0 | 14,392 | |
Net book value of collateral | $ 0 | $ 50,825 |
Indebtedness - Narrative (Detai
Indebtedness - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
May 31, 2023 USD ($) mortgage property | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) property option | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||
Debt outstanding | $ 4,303,631 | $ 4,244,501 | $ 4,303,631 | $ 4,244,501 | ||
Number of outstanding mortgage loans | mortgage | 4 | |||||
Aggregate outstanding principal balance | 4,330,370 | 4,330,370 | $ 4,290,363 | |||
Loss on extinguishment of debt | $ 0 | $ 21,370 | $ 359 | $ 22,198 | ||
Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, interest rate cap (as a percent) | 2.70% | 2.70% | ||||
Floating Rate Loan, 6.17%, due in 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate (as a percent) | 4.94% | 4.23% | ||||
ILPT Floating Rate Loan | Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, interest rate cap (as a percent) | 2.25% | 2.25% | ||||
ILPT Floating Rate Loan | Secured Overnight Financing Rate (SOFR) | Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, interest rate cap (as a percent) | 2.25% | 2.25% | ||||
Floating Rate Loan | Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, interest rate cap (as a percent) | 3.40% | 3.40% | ||||
Floating Rate Loan | Secured Overnight Financing Rate (SOFR) | Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, interest rate cap (as a percent) | 3.40% | 3.40% | ||||
ILPT Floating Rate Loan | Floating Rate Loan, 6.18%, due in 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Debt outstanding | $ 1,235,000 | $ 1,235,000 | ||||
Number of options to extend maturity date | option | 3 | |||||
Extension period | 1 year | |||||
Weighted average interest rate (as a percent) | 6.18% | 6.18% | ||||
ILPT Floating Rate Loan | Floating Rate Loan, 6.18%, due in 2024 | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 3.93% | |||||
Floating Rate Loan | ||||||
Debt Instrument [Line Items] | ||||||
Debt outstanding | $ 1,400,000 | $ 1,400,000 | ||||
Floating Rate Loan | Floating Rate Loan, 6.18%, due in 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Number of properties used as collateral | property | 104 | |||||
Aggregate outstanding principal balance | $ 1,235,000 | $ 1,235,000 | 1,235,000 | |||
Floating Rate Loan | Floating Rate Loan, 6.17%, due in 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Number of options to extend maturity date | option | 3 | |||||
Extension period | 1 year | |||||
Weighted average interest rate (as a percent) | 6.17% | 6.17% | ||||
Prepayment terms without premium amount | $ 280,000 | $ 280,000 | ||||
Number of properties used as collateral | property | 82 | |||||
Aggregate outstanding principal balance | $ 1,400,000 | $ 1,400,000 | $ 1,400,000 | |||
Floating Rate Loan | Floating Rate Loan, 6.17%, due in 2024 | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 2.77% | |||||
Mortgage Note Payable | Fixed Rate Loan, 6.25%, Due in 2030 | Joint Venture | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 91,000 | |||||
Number of properties used as collateral | property | 4 | |||||
Annual interest rate (as a percent) | 6.25% | |||||
Aggregate outstanding principal balance | $ 35,910 | |||||
Weighted average interest rate (as a percent) | 3.70% | |||||
Loss on extinguishment of debt | $ 359 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value of Financial Instruments | ||
Interest rate (as a percent) | 5.47% | |
Fixed rate loan | $ 4,303,631 | $ 4,244,501 |
Unamortized premiums | $ 8,751 | 8,628 |
Fixed rate loan, 4.31% interest rate, due in 2029 | ||
Fair Value of Financial Instruments | ||
Interest rate (as a percent) | 4.31% | |
Fixed rate loan, 6.25% interest rate, due in 2030 | ||
Fair Value of Financial Instruments | ||
Interest rate (as a percent) | 6.25% | |
Fixed rate loan, 3.67% interest rate, due in 2031 | ||
Fair Value of Financial Instruments | ||
Interest rate (as a percent) | 3.67% | |
Fixed rate loan, 4.42% interest rate, due in 2032 | ||
Fair Value of Financial Instruments | ||
Interest rate (as a percent) | 4.42% | |
Fixed rate loan, 4.14% interest rate, due in 2032 | ||
Fair Value of Financial Instruments | ||
Interest rate (as a percent) | 4.14% | |
Fixed rate loan, 4.02% interest rate, due in 2033 | ||
Fair Value of Financial Instruments | ||
Interest rate (as a percent) | 4.02% | |
Fixed rate loan, 4.13% interest rate, due in 2033 | ||
Fair Value of Financial Instruments | ||
Interest rate (as a percent) | 4.13% | |
Fixed rate loan, 3.10% interest rate, due in 2035 | ||
Fair Value of Financial Instruments | ||
Interest rate (as a percent) | 3.10% | |
Fixed rate loan, 2.95% interest rate, due in 2036 | ||
Fair Value of Financial Instruments | ||
Interest rate (as a percent) | 2.95% | |
Fixed rate loan, 4.27% interest rate, due in 2037 | ||
Fair Value of Financial Instruments | ||
Interest rate (as a percent) | 4.27% | |
Fixed rate loan, 3.25% interest rate, due in 2038 | ||
Fair Value of Financial Instruments | ||
Interest rate (as a percent) | 3.25% | |
Fixed rate loan, 3.76% interest rate, due in 2028 | ||
Fair Value of Financial Instruments | ||
Interest rate (as a percent) | 3.76% | |
Fixed rate loan, 3.77% interest rate, due in 2030 | ||
Fair Value of Financial Instruments | ||
Interest rate (as a percent) | 3.77% | |
Fixed rate loan, 3.85% interest rate, due in 2030 | ||
Fair Value of Financial Instruments | ||
Interest rate (as a percent) | 3.85% | |
Fixed rate loan, 3.56% interest rate, due in 2030 | ||
Fair Value of Financial Instruments | ||
Interest rate (as a percent) | 3.56% | |
Carrying Amount | ||
Fair Value of Financial Instruments | ||
Long-term debt | $ 1,686,618 | 1,646,736 |
Carrying Amount | Fixed rate loan, 4.31% interest rate, due in 2029 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 647,077 | 646,669 |
Carrying Amount | Fixed rate loan, 6.25% interest rate, due in 2030 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 90,038 | 0 |
Carrying Amount | Fixed rate loan, 3.67% interest rate, due in 2031 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 11,712 | 12,691 |
Carrying Amount | Fixed rate loan, 4.42% interest rate, due in 2032 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 695,134 | 694,704 |
Carrying Amount | Fixed rate loan, 4.14% interest rate, due in 2032 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 13,228 | 14,144 |
Carrying Amount | Fixed rate loan, 4.02% interest rate, due in 2033 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 29,213 | 30,949 |
Carrying Amount | Fixed rate loan, 4.13% interest rate, due in 2033 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 40,832 | 43,219 |
Carrying Amount | Fixed rate loan, 3.10% interest rate, due in 2035 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 24,873 | 26,175 |
Carrying Amount | Fixed rate loan, 2.95% interest rate, due in 2036 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 40,087 | 42,087 |
Carrying Amount | Fixed rate loan, 4.27% interest rate, due in 2037 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 44,423 | 46,109 |
Carrying Amount | Fixed rate loan, 3.25% interest rate, due in 2038 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 50,001 | 52,031 |
Carrying Amount | Fixed rate loan, 3.76% interest rate, due in 2028 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 0 | 13,556 |
Carrying Amount | Fixed rate loan, 3.77% interest rate, due in 2030 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 0 | 4,865 |
Carrying Amount | Fixed rate loan, 3.85% interest rate, due in 2030 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 0 | 5,145 |
Carrying Amount | Fixed rate loan, 3.56% interest rate, due in 2030 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 0 | 14,392 |
Estimated Fair Value | ||
Fair Value of Financial Instruments | ||
Long-term debt | 1,548,147 | 1,487,147 |
Estimated Fair Value | Fixed rate loan, 4.31% interest rate, due in 2029 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 613,520 | 592,295 |
Estimated Fair Value | Fixed rate loan, 6.25% interest rate, due in 2030 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 94,438 | 0 |
Estimated Fair Value | Fixed rate loan, 3.67% interest rate, due in 2031 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 11,009 | 11,713 |
Estimated Fair Value | Fixed rate loan, 4.42% interest rate, due in 2032 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 609,714 | 623,133 |
Estimated Fair Value | Fixed rate loan, 4.14% interest rate, due in 2032 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 12,611 | 13,182 |
Estimated Fair Value | Fixed rate loan, 4.02% interest rate, due in 2033 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 27,185 | 28,195 |
Estimated Fair Value | Fixed rate loan, 4.13% interest rate, due in 2033 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 38,181 | 39,573 |
Estimated Fair Value | Fixed rate loan, 3.10% interest rate, due in 2035 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 21,837 | 22,373 |
Estimated Fair Value | Fixed rate loan, 2.95% interest rate, due in 2036 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 34,723 | 35,444 |
Estimated Fair Value | Fixed rate loan, 4.27% interest rate, due in 2037 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 41,466 | 41,880 |
Estimated Fair Value | Fixed rate loan, 3.25% interest rate, due in 2038 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 43,463 | 43,878 |
Estimated Fair Value | Fixed rate loan, 3.76% interest rate, due in 2028 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 0 | 12,784 |
Estimated Fair Value | Fixed rate loan, 3.77% interest rate, due in 2030 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 0 | 4,553 |
Estimated Fair Value | Fixed rate loan, 3.85% interest rate, due in 2030 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | 0 | 4,829 |
Estimated Fair Value | Fixed rate loan, 3.56% interest rate, due in 2030 | ||
Fair Value of Financial Instruments | ||
Fixed rate loan | $ 0 | $ 13,315 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Assets Measured on Recurring Basis (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) property | Dec. 31, 2022 USD ($) property | |
Fair Value of Financial Instruments | ||
Real estate properties | $ 4,765,820 | $ 4,902,641 |
Fair Value, Recurring | ||
Fair Value of Financial Instruments | ||
Investment in unconsolidated joint venture | 124,411 | 124,358 |
Interest rate cap derivatives | 51,322 | 73,133 |
Fair Value, Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value of Financial Instruments | ||
Investment in unconsolidated joint venture | 0 | 0 |
Interest rate cap derivatives | 0 | 0 |
Fair Value, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value of Financial Instruments | ||
Investment in unconsolidated joint venture | 0 | 0 |
Interest rate cap derivatives | 51,322 | 73,133 |
Fair Value, Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value of Financial Instruments | ||
Investment in unconsolidated joint venture | 124,411 | 124,358 |
Interest rate cap derivatives | 0 | 0 |
Fair Value, Nonrecurring | ||
Fair Value of Financial Instruments | ||
Real estate properties | 1,414 | 555,123 |
Fair Value, Nonrecurring | Fair Value, Inputs, Level 1 | ||
Fair Value of Financial Instruments | ||
Real estate properties | 0 | 0 |
Fair Value, Nonrecurring | Fair Value, Inputs, Level 2 | ||
Fair Value of Financial Instruments | ||
Real estate properties | 0 | 0 |
Fair Value, Nonrecurring | Fair Value, Inputs, Level 3 | ||
Fair Value of Financial Instruments | ||
Real estate properties | $ 1,414 | $ 555,123 |
Number of properties impaired | property | 1 | 25 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Fair Value Measurements Significant Unobservable Inputs Related to Certain Level 3 (Details) - Fair Value, Inputs, Level 3 | Sep. 30, 2023 | Dec. 31, 2022 |
Measurement Input, Discount Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment in unconsolidated joint venture | 0.0525 | 0.0525 |
Measurement Input, Discount Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment in unconsolidated joint venture | 0.0700 | 0.0700 |
Measurement Input, Exit Capitalization Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment in unconsolidated joint venture | 0.0495 | 0.0475 |
Measurement Input, Exit Capitalization Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment in unconsolidated joint venture | 0.0600 | 0.0600 |
Measurement Input, Holdings Periods | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment in unconsolidated joint venture, holding periods | 10 years | |
Measurement Input, Holdings Periods | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment in unconsolidated joint venture, holding periods | 10 years | |
Measurement Input, Holdings Periods | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investment in unconsolidated joint venture, holding periods | 12 years |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Changes In Fair Value For Our Investment In Unconsolidated Joint Venture (Details) - Equity Method Investments - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 129,082 | $ 143,716 | $ 124,358 | $ 143,021 |
Equity in earnings of unconsolidated joint venture | 719 | 3,297 | 7,423 | 6,634 |
Distributions from unconsolidated joint venture | (5,390) | (1,320) | (7,370) | (3,962) |
Ending balance | $ 124,411 | $ 145,693 | $ 124,411 | $ 145,693 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 12, 2023 USD ($) $ / shares | Sep. 13, 2023 USD ($) $ / shares | Jun. 01, 2023 trustee $ / shares shares | Sep. 30, 2023 $ / shares shares | Sep. 30, 2023 $ / shares shares | |
Shareholders' Equity | |||||
Number of officers | trustee | 7 | ||||
Subsequent Event | |||||
Shareholders' Equity | |||||
Common distributions declared (in dollars per share) | $ 0.01 | ||||
Dividends payable | $ | $ 658 | ||||
Common Stock | |||||
Shareholders' Equity | |||||
Share repurchases to pay for tax withholding (in shares) | shares | 40,636 | 48,722 | |||
Common Stock | Minimum | |||||
Shareholders' Equity | |||||
Share price (in dollars per share) | $ 3.54 | $ 3.54 | |||
Common Stock | Maximum | |||||
Shareholders' Equity | |||||
Share price (in dollars per share) | $ 3.29 | $ 3.29 | |||
Trustee | |||||
Shareholders' Equity | |||||
Common shares granted (in shares) | shares | 20,000 | ||||
Common share price (in dollars per share) | $ 1.78 | ||||
Officer | |||||
Shareholders' Equity | |||||
Common share price (in dollars per share) | $ 3.63 | ||||
Common share forfeiture (in shares) | $ | $ 188,350 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Distributions Declared and Paid (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Aug. 17, 2023 | May 18, 2023 | Feb. 16, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | |
Equity [Abstract] | ||||||||||
Dividends paid (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.03 | ||||||
Total Distribution | $ 656 | $ 656 | $ 656 | $ 656 | $ 656 | $ 656 | $ 654 | $ 21,583 | $ 21,584 | $ 1,968 |
Business and Property Managem_2
Business and Property Management Agreements with RMR (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) employee agreement | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) employee agreement | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Related Party Transaction [Line Items] | |||||
Number of employees | employee | 0 | 0 | |||
Other operating expenses | $ 9,907,000 | $ 8,453,000 | $ 27,744,000 | $ 22,278,000 | |
Property Management and Construction Supervision Fees | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, amount | 3,464,000 | 3,270,000 | 10,286,000 | 8,797,000 | |
Capitalized Property Management and Construction Supervision Fees | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, amount | 171,000 | 294,000 | 541,000 | 693,000 | |
Reimbursed Property Level Operating Expenses | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, amount | $ 2,375,000 | 1,847,000 | $ 6,216,000 | 5,155,000 | |
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Number of management service agreements | agreement | 2 | 2 | |||
Management fee expense | $ 5,919,000 | 6,465,000 | $ 17,301,000 | 17,821,000 | |
Incentive fee expense | $ 0 | 0 | $ 0 | 0 | $ 0 |
Management service agreement term | 3 years | ||||
Number of joint venture agreements | agreement | 2 | 2 | |||
Related Party | Reit Management And Research L L C | |||||
Related Party Transaction [Line Items] | |||||
Number of management service agreements | agreement | 2 | 2 | |||
Related Party | Expensed Property Management and Construction Supervision Fees | |||||
Related Party Transaction [Line Items] | |||||
Other operating expenses | $ 3,293,000 | $ 2,976,000 | $ 9,745,000 | $ 8,104,000 |
Related Person Transactions (De
Related Person Transactions (Details) $ in Thousands | Sep. 30, 2023 USD ($) agreement | Dec. 31, 2022 USD ($) |
Related Party | ||
Related Party Transaction [Line Items] | ||
Number of management service agreements | 2 | |
Number of joint venture agreements | 2 | |
Accounts payable and other liabilities | $ | $ 5,896 | $ 4,824 |
Joint Venture | ||
Related Party Transaction [Line Items] | ||
Number of joint venture agreements | 2 | |
Accounts payable and other liabilities | $ | $ 613 | $ 616 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Schedule of Interest Rate Cap Agreements (Details) - Interest Rate Swap - Cash Flow Hedging - Designated as Hedging Instrument - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Strike rate | 2.70% | ||
Amount | $ 1,385,158,000 | ||
Fair value | $ 51,322,000 | $ 73,133,000 | $ 7,740,000 |
Floating Rate Loan | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Strike rate | 3.40% | ||
Amount | $ 1,400,000,000 | ||
Fair value | $ 12,712,000 | 23,337,000 | |
ILPT Floating Rate Loan | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Strike rate | 2.25% | ||
Amount | $ 1,235,000,000 | ||
Fair value | $ 38,610,000 | $ 49,796,000 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Narrative (Details) | 1 Months Ended | ||
Sep. 30, 2022 USD ($) property derivative_instrument | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Debt outstanding | $ 4,244,501,000 | $ 4,303,631,000 | |
Bridge Loan | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Debt outstanding | $ 1,385,158,000 | ||
Number of properties used as collateral | property | 109 | ||
Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Number of Instruments | derivative_instrument | 2 | ||
Amount | $ 1,385,158,000 | ||
Derivative, interest rate cap (as a percent) | 2.70% | ||
Derivative instruments in hedges, at fair value, net | $ 7,740,000 | $ 51,322,000 | $ 73,133,000 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Schedule of Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain recognized in cumulative other comprehensive income | $ 3,428 | $ 15,047 | $ 19,677 | $ 24,200 |
Unrealized (loss) gain on derivative instrument recognized in cumulative other comprehensive loss | (6,635) | 8,847 | (3,392) | 18,917 |
Loss on Early Extinguishment | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount reclassified from cumulative other comprehensive income | (10,063) | 761 | (23,069) | 1,678 |
Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount reclassified from cumulative other comprehensive income | $ 0 | $ (6,961) | $ 0 | $ (6,961) |