Good afternoon, and thank you for joining ILPT's fourth quarter 2025 earnings call. With me on today's call are President and Chief Executive Officer Yael Duffy, Chief Financial Officer and Treasurer Tiffany Sy, and Vice President Marc Krohn.

In just a moment, they will provide details about our business and quarterly results, followed by a question-and-answer session with sell-side analysts. Please note that the recording and retransmission of today's conference call is prohibited without the prior written consent of the company.

Also note that today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws, including guidance with respect to certain first quarter 2026 financial measures. These forward-looking statements are based on ILPT's beliefs and expectations as of today, February 19th, 2026, and actual results may differ materially from those that we project.

The company undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements made in today's conference call. Additional information concerning factors that could cause those differences is contained in our filings with the Securities and Exchange Commission, which can be accessed from our website, ilptreit.com.

Investors are cautioned not to place undue reliance upon any forward-looking statements. In addition, we will be discussing non-GAAP financial measures during this call, including normalized funds from operations, or normalized FFO, adjusted EBITDAre, net operating income, or NOI, and cash basis NOI.

A reconciliation of these non-GAAP measures to net income is available in our financial results package, which can be found on our website. Lastly, we will be providing guidance on this call, including estimated normalized FFO and adjusted EBITDAre.

We are not providing a reconciliation of these non-GAAP measures as part of our guidance because certain information required for such reconciliation is not available without unreasonable efforts or at all. I will now turn the call over to Yael.

Thank you, Kevin, and good afternoon. We ended the year with robust demand for our high-quality portfolio of industrial and logistics properties, consistent with the trends we saw throughout 2025, delivering one of the strongest quarters in ILPT's history.

We achieved record quarterly leasing volume, executing nearly 4 million square feet at a weighted average rent roll-up of 25.7%, marking our fifth consecutive quarter of double-digit rent growth. Normalized FFO grew 113% year-over-year, and same property cash basis NOI increased 5.2%.

Our improved performance resulted in ILPT generating a total shareholder return of more than 55% in 2025, ranking us third in the U.S. across all REITs.

Additionally, we made notable progress on our strategic priorities, including improving our balance sheet and positioning ILPT for future growth. In June, we successfully refinanced $1.2 billion of floating-rate debt into fixed-rate debt, resulting in annual cash savings of more than $8 million.

Shortly thereafter, we announced a material increase in our annualized dividend from 4 cents to 20 cents per share. Turning to our portfolio.

As of December 31st, 2025, ILPT owned 409 properties across 39 states, totaling approximately 60 million square feet, with a weighted average lease term of 7 years. Our well-diversified portfolio is further highlighted by our unique Hawaii footprint, consisting of 226 properties totaling 16.7 million square feet.

More than 76% of our annualized revenues come from investment-grade rated tenants or from our secure Hawaii land leases. Consolidated occupancy at year-end was 94.5%, representing a 40 basis point increase from the third quarter.

During 2025, we completed 42 new and renewal leases and two rent resets totaling 7.3 million square feet. This activity is expected to generate an increase of approximately $10.6 million in annualized rental revenue, of which approximately $5.8 million, or 55%, has not yet commenced and will contribute to cash flow in 2026 and beyond.

Additionally, we continue to expand our relationships with FedEx and Amazon, our two largest tenants, which accounted for 2.8 million square feet, or 38% of our annual leasing volume. These results showcase our ability to realize mark-to-market rent growth through leasing and continued strong tenant retention.

Looking ahead to 2026, we remain focused on our leasing priorities, specifically the 2.2 million square foot land parcel in Hawaii and a 535,000 square foot property in Indianapolis. We believe there is continued opportunity to generate organic cash flow growth and reduce leverage, which has declined from 12.4 times to 11.8 times over the last year.

We are pleased with the strong performance and momentum we are building at ILPT, and we look forward to delivering long-term value for our shareholders. I will now turn the call over to Marc, who will provide further details into our fourth quarter leasing results within our mainland portfolio, as well as our pipeline.

Thank you, Yael, and good afternoon, everyone. During the fourth quarter, we executed nearly 4 million square feet of leasing at a weighted average lease term of 9.5 years and a roll-up in rent of 25.7%.

Given the limited available space within our portfolio, renewals represented the majority of the activity this quarter, reflecting a tenant retention rate of 96%. Notable leases include three lease renewals totaling 2.3 million square feet with Amazon, our second largest tenant, for a weighted average lease term of 11.5 years and a roll-up in rent of 26.8%; a 1.2 million square foot renewal with Restoration Hardware, our fourth largest tenant, for a weighted average lease term of 7.4 years and a roll-up in rent of 29%; and three lease renewals totaling 152,000 square feet with FedEx, our largest tenant, for a weighted average lease term of 4.6 years and a roll-up in rent of 11.7%.

These results are a testament to the quality of our portfolio, showcase our commitment to fostering strong tenant relationships, and underscore our collaborative and strategic approach to leasing. As we look ahead, 8.8 million square feet, or 11.8% of ILPT's total annualized revenue, is scheduled to expire by the end of 2027, which provides meaningful embedded rent growth opportunities.

Today, our leasing pipeline consists of 6.4 million square feet, of which 3.8 million square feet is in advanced stages of negotiation or lease documentation. Based on current discussions, we expect this activity to generate average rent roll-ups of approximately 20% on the mainland and 30% in Hawaii.

I will now turn the call over to Tiffany to review our financial results.

Thank you, Marc. Yesterday, we reported fourth quarter normalized FFO of $18.9 million, or 29 cents per share, which was at the high end of our guidance.

This represents an increase of 9% on a sequential quarter basis and 113% compared to the same quarter a year ago. Same property NOI was $88.2 million, and same property cash basis NOI was $85.7 million, both increasing on a year-over-year and sequential quarter basis, driven by strong tenant retention and rent roll-ups.

Adjusted EBITDAre totaled $85.1 million. During the quarter, we recognized $14.6 million of earnings from our unconsolidated joint venture, which was primarily driven by an increase in the fair value of the underlying real estate owned by this joint venture.

Additionally, we sold two vacant, unencumbered properties totaling 286,000 square feet for total proceeds of $3.9 million, resulting in a $1.4 million net loss. In January 2026, we paid our manager an incentive fee of $5.7 million incurred for the year ended December 31st, 2025.

This payment resulted from ILPT outperforming the total return of the industry benchmark over the trailing three-year measurement period by more than 60%. Turning to our balance sheet.

We ended the quarter with cash on hand of $95 million and restricted cash of $88 million. Our total net debt to total assets ratio declined modestly to 69%, and our net debt leverage ratio improved to 11.8 times.

As of December 31st, all of ILPT's debt is either fixed rate or fixed through an interest rate cap, with a weighted average interest rate of 5.43%. We continue to monitor capital market conditions as we evaluate opportunities to refinance our consolidated joint venture's $1.4 billion floating-rate loan.

Including its remaining extension option, this loan does not mature until March 2027. We currently expect to exercise this extension option and purchase a related interest rate cap for approximately $4 million.

Looking ahead to the first quarter, we expect interest expense to be $61.5 million, including $57 million of cash interest expense and $4.5 million of non-cash amortization of deferred financing fees and interest rate cap costs. We expect normalized FFO to be between 29 and 31 cents per share and adjusted EBITDAre between $84 and $85 million.

In summary, ILPT ended 2025 with strong operating momentum, improving financial performance, and less exposure to market and interest rate volatility. Our leasing results, stable tenant base, and focus on strengthening ILPT's balance sheet has us well positioned for 2026.

That concludes our prepared remarks. Operator, please open the line for questions.

Thank you. Tiffany, you were speaking a little too fast for me for me.

What's the non-cash interest amount for the year- for the quarter, I mean?

For the for the quarter, well, we- for the forecasted quarter, it's $4.5 million. So,

$61.5 starting out next year, is that the way to think about it?

That's correct.

Okay. Great.

I believe there was another asset that was under contract or maybe in discussion for sale. Can you provide an update there?

Sure. Hi, Mitch.

Yep, we had another property under LOI for about $50 million. The tenant was actually going to be the buyer of that property, and they decided that they preferred to engage in a renewal discussion versus buy the property.

We have a signed LOI for them for a seven-year renewal now that we're negotiating.

Okay. That's helpful.

Marc talked about expirations for next two years. Are there any known move-outs we need to be aware of?

Hey, Mitch. Nothing material in nature at this point.

We're making really good progress on our '26 expirations and '27 as we kind of move into beyond 2026. We feel good about kind of where we're landing right now.

Marc, while I have you, is there any changes that you're making in the marketing process for the Indy and Hawaii vacancies? I know it's been north of a year that you've been sitting on them now.

Have you kind of looked at possibly changing the concession package or some sort of adjustments there?

I'll touch on Indy, and then I'll let Yael touch on Hawaii. Indy, we've made some really good progress, and we're actually exchanging lease comments right now.

That could be as early as next quarter that we would be in a position to maybe provide some positive news about the lease-up of that space.

As it relates to Hawaii, we're in discussions with the same tenant that we've talked about the last couple quarters. I think it's just the size of that parcel and the complexity of [it?]

, just provide some timing delays. We're hopeful we'll be able to lease that one.

In terms of concessions, for that site specifically, there really isn't anything we can do just given it's a ground lease. It's just finding kind of that unicorn that wants to take such a big parcel.

Gotcha. I guess last one for me, maybe just Tiffany, bridge me from I think it was around $64 million or $63 million in interest expense in 4Q to the forecast that you just laid out for 1Q.

How do we get there?

It's really number of days. There were 92 days in this quarter and there's only 90 in the next quarter.

Does that suggest that it goes up again in 2Q?

No, it doesn't. Because if you consider what we think we would pay for a cap, $4 million, we'll have the impact of that in Q2, which should lower interest expense.

Okay. Great.

Thank you, guys. Appreciate it.

Welcome.

Thanks, Mitch.

Thank you.

Good afternoon.

Hi, John.

Maybe looking at the same-store NOI growth in the quarter a little higher versus kind of your past three quarters. Was there anything specific that drove that beyond kind of leasing and addressing some of the vacancy in the mainland portfolio?

Just curious if there's any kind of cash rent coming online or anything like that that may have caused that to be elevated relative to the last three quarters of the year.

Tiffany might want to expand, but I think really the reasoning is we do a lot of our leases ahead of time. It could be 12 to 18 months ahead of a natural lease expiration.

It does take a little while for the cash impact of the new leases to kind of hit. I think that's the majority of the increase.

That's right. It's leasing.

Okay. Would that be something then that as some of those new leases keep hitting that this level of same-store NOI growth is sustainable long term, or is it really going to be a product of just addressing some of the maturing leases that are still left in '26 and '27?

I'll give you as an example, this quarter, I think the impact of our leasing was about $10 million of cash growth, and most of that We haven't seen that yet this quarter. A lot of that, I would say at least 50% is going to hit probably in the back half of '26 and into 2027 because that's when the leases we renewed this quarter are going to actually go into effect later.

I would say that it's sustainable to continue to see that growth.

Okay. Then outside of the transactions closed in 4Q and the transaction that was potentially going to be a disposi-

-part of our business plan, at least in the near term, but we do get a lot of inbounds and sometimes they appear really good and we kind of investigate them further. I think it'll be any sales will really be opportunistic, but not a material part of our business plan.

Okay. Then with regards to the Mountain JV loan, sounds like you're going to utilize the extension, but what's kind of the thought process around refinancing?

How are you thinking about timing there? Is there something you want to see in the markets or something else kind of structurally with the JV you want to see before looking to address that refi?

Just kind of curious how we should think about that.

We're actively evaluating refinance opportunities. The good thing is, with the extension option that we have, it gives us flexibility to really not have to rush into anything, because it's no extra fees.

The only thing we have to do is purchase the interest rate cap, which we can later sell when we refinance if we refinance before the maturity date.

I guess is it just you want to see what kind of macro environment shapes out in terms of where we are with kind of base interest rates, or is there something within the portfolio or within the JV you're kind of looking to see before you go out there to kind of maximize the best pricing?

No, I wouldn't say that. I would think we're currently looking at macroeconomic factors and what's available to us.

These types of things do take some time, and we are aware of that, so...

I would just add, John, I think the portfolio, it's 100% leased and we've been seeing really good tenant retention. Even if we get a vacancy, we're able to lease it up.

From an operating perspective, there's nothing to do to put in a position to refinance.

Okay. Then lastly, how do some of your kind of core markets look, particularly on the mainland, in terms of kind of competing supply?

Is that at all kind of a near-term concern or is that something that, given where interest rates moved in the last couple of years and, et cetera, that that's not really a big issue going forward?

We haven't seen it be a big issue. I think the construction has slowed, and I think the vacancy increase, from a macro perspective, has just been new supply coming to the market.

I think tenants are realizing that it costs money to relocate and is also disruptive to their operations. I think we've had some tenants that have looked into potential relocations and then have come back and wanted to do a lease renewals.

Okay. That's it for me.

I appreciate all the color.

Thanks, John.

Thank you for joining today's call, and we look forward to meeting with many of you at industry conferences this spring. Please reach out to Investor Relations if you are interested in scheduling a meeting with ILPT.

Operator, that concludes our call.