Industrial Logistics Properties Trust (ILPT), mcap=$930m, $14.22 vs $13.97

– A cheap logistics-focused REIT with properties with assets in Hawaii and the mainland U.S at a 9.4% yield.
– High-quality assets under long-term leases – distribution centers of the likes of FDX, AMZN, and RH. – – Externally managed by (in)famous RMR.
– Recently completed a very large acquisition (80% of today’s TEV) and significantly levered up the company.
– Since ILPT was able to find a JV partner for the deal, it is unlikely they overpaid.

– Annualized FFO is about $1.68/share, so trading at 8.3x FFO, or about a 12% FFO yield.
– Assuming the dividend holds, the cash yield stands at 9.4%.
– Valuing all $ILPT properties at a 10% discount to per sq ft of the recently completed acquisition price results in a $58/share valuation for $ILPT.

Exp. gain: Not specified

Full ILPT write-up (free guest account required):

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