Despite a 4.0% year-over-year revenue increase in 2026Q1, the company continues to report negative net income of $9.4 million, highlighting a disconnect between top-line growth and bottom-line profitability.
| Revenue | 453.36M | 448.85M | 442.32M | 437.34M | 388.15M | 219.87M | 254.57M | 229.23M | 162.53M | 156.51M | 153.31M | 147.89M |
| Revenue Growth % | 2.57% | 1.48% | 1.14% | 12.67% | 76.53% | -13.63% | 11.05% | 41.04% | 3.85% | 2.08% | 3.66% | - |
| Property Operating Expenses | 404.09M | 392.13M | 62.56M | 60.05M | 50.62M | 30.13M | 54.77M | 30.37M | 19.34M | 17.87M | 17.2M | 16.32M |
| Net Operating Income (NOI) | 49.27M | 56.72M | 379.76M | 377.29M | 337.53M | 189.74M | 199.81M | 198.87M | 143.19M | 138.64M | 136.11M | 131.57M |
| NOI Margin % | 10.87% | 12.64% | 85.86% | 86.27% | 86.96% | 86.29% | 78.49% | 86.75% | 88.1% | 88.58% | 88.78% | 88.97% |
| Operating Expenses | -100.95M | -91.21M | 240.99M | 248.08M | 224.71M | 86M | 200K | 96.76M | 52.89M | 55.03M | 46.87M | 42.51M |
| G&A Expenses | 38.19M | 36.96M | 30.45M | 31.16M | 32.88M | 16.72M | 200K | 17.19M | 11.31M | 16.8M | 9.2M | 8.74M |
| EBITDA | 305.92M | 313.15M | 310.76M | 307.93M | 273.8M | 154.34M | 268M | 161.75M | 117.67M | 108.76M | 115.19M | 97.86M |
| EBITDA Margin % | 67.48% | 69.77% | 70.26% | 70.41% | 70.54% | 70.19% | 105.28% | 70.56% | 72.4% | 69.49% | 75.13% | 66.17% |
| Depreciation & Amortization | 155.7M | 165.23M | 171.99M | 178.73M | 160.98M | 50.6M | 68.39M | 59.64M | 27.37M | 26.17M | 25.98M | 24.09M |
| D&A / Revenue % | 34.34% | 36.81% | 38.88% | 40.87% | 41.47% | 23.01% | 26.87% | 26.02% | 16.84% | 16.72% | 16.95% | 16.29% |
| Operating Income | 150.22M | 147.93M | 138.77M | 129.2M | 112.81M | 103.74M | 199.61M | 102.11M | 90.3M | 82.59M | 89.2M | 73.78M |
| Operating Margin % | 33.13% | 32.96% | 31.37% | 29.54% | 29.06% | 47.18% | 78.41% | 44.54% | 55.56% | 52.77% | 58.19% | 49.89% |
| Interest Expense | 4M | 265.17M | 292.54M | 288.54M | 280.05M | 35.63M | 51.62M | 50.85M | 16.08M | 2.44M | 2.26M | 2.09M |
| Interest Coverage | - | 0.61x | 0.51x | 0.48x | -0.05x | 3.22x | 2.10x | 2.02x | 5.63x | 33.86x | 39.44x | 35.27x |
| Non-Operating Income | -12.81M | -14.78M | -11.43M | -8.82M | 126.64M | -10.92M | 91.27M | -743K | -200K | 0 | 0 | 0 |
| Pretax Income | -91.94M | -102.46M | -137.01M | -149.62M | -286.8M | 119.95M | 81.48M | 52.67M | 74.42M | 80.15M | 86.94M | 71.68M |
| Pretax Margin % | -20.28% | -22.83% | -30.97% | -34.21% | -73.89% | 54.56% | 32.01% | 22.98% | 45.79% | 51.21% | 56.71% | 48.47% |
| Income Tax | 190K | 104K | 162K | 104K | 45K | 273K | 277K | 171K | 32K | 44K | 44K | 44K |
| Effective Tax Rate % | -0.21% | -0.1% | -0.12% | -0.07% | -0.02% | 0.23% | 0.34% | 0.32% | 0.04% | 0.05% | 0.05% | 0.06% |
| Net Income | -54.08M | -66.19M | -95.67M | -107.99M | -226.72M | 119.68M | 82.07M | 52.5M | 74.39M | 80.1M | 86.9M | 71.64M |
| Net Margin % | -11.93% | -14.75% | -21.63% | -24.69% | -58.41% | 54.43% | 32.24% | 22.9% | 45.77% | 51.18% | 56.68% | 48.44% |
| Net Income Growth % | 42.34% | 30.82% | 11.41% | 52.37% | -289.44% | 45.83% | 56.33% | -29.43% | -7.13% | -7.82% | 21.3% | - |
| Funds From Operations (FFO) | 101.62M | 99.04M | 76.32M | 70.74M | -65.74M | 170.28M | 150.47M | 112.14M | 101.76M | 106.28M | 112.88M | 95.73M |
| FFO Margin % | 22.41% | 22.07% | 17.25% | 16.17% | -16.94% | 77.44% | 59.1% | 48.92% | 62.61% | 67.9% | 73.63% | 64.73% |
| FFO Growth % | 142.32% | 29.77% | 7.89% | 207.6% | -138.61% | 13.17% | 34.18% | 10.2% | -4.25% | -5.85% | 17.92% | - |
| FFO per Share | 1.54 | 1.50 | 1.16 | 1.08 | -1.01 | 2.61 | 2.31 | 1.72 | 1.59 | 1.63 | 1.66 | 1.41 |
| FFO Payout Ratio % | 0.65% | 8.05% | 3.46% | 3.71% | -67.65% | 50.64% | 57.22% | 76.63% | 68.46% | 144.8% | 136.51% | 152.04% |
| EPS (Diluted) | -0.82 | -1.00 | -1.46 | -1.65 | -3.48 | 1.83 | 1.26 | 0.81 | 1.16 | 1.23 | 1.28 | 1.05 |
| EPS Growth % | 42.87% | 31.51% | 11.52% | 52.59% | -290.16% | 45.24% | 55.56% | -30.17% | -5.69% | -3.91% | 21.9% | - |
| EPS (Basic) | - | -1.00 | -1.46 | -1.65 | -3.48 | 1.83 | 1.26 | 0.81 | 1.16 | 1.23 | 1.28 | 1.05 |
| Diluted Shares Outstanding | 66.18M | 66.01M | 65.7M | 65.43M | 65.25M | 65.21M | 65.11M | 65.06M | 64.14M | 65M | 68M | 68M |
High interest expense burden
According to recent financial filings, ILPT reported a 4.0% year-over-year revenue increase in 2026Q1, yet this top-line expansion appears disconnected from property-level profitability, as the company continues to navigate the integration of its mainland logistics portfolio alongside its legacy Hawaii ground lease assets.
While revenue growth remains positive, the inability to translate this into consistent net income suggests that the cost of capital and external management fees are effectively neutralizing operational gains. Investors should monitor whether the current revenue trajectory can sustain the company's debt service requirements without further asset divestitures.
As reported in quarterly statements, ILPT experienced a significant NOI margin contraction to -2.0% in 2025Q4, a sharp departure from the typical 85% range observed in other periods, highlighting the sensitivity of property-level profitability to non-recurring charges or accounting adjustments within the portfolio.
The extreme volatility in NOI margins suggests that the company's property-level performance is susceptible to significant fluctuations, likely driven by the interplay between its Hawaii ground leases and the mainland industrial assets. This instability warrants further investigation into whether these margin swings are purely accounting-driven or indicative of underlying operational inefficiencies.
Based on reported figures, ILPT's FFO per share reached $0.34 in 2026Q1, reflecting a 12.9% growth rate, yet the persistent gap between FFO and GAAP net income suggests that the company's earnings quality remains heavily dependent on non-cash adjustments rather than pure operational cash generation.
The reliance on FFO as the primary performance metric masks the reality of the company's negative net income, which has remained a consistent feature across the last ten quarters. This discrepancy implies that the current dividend policy, while reduced, may still be under pressure if FFO growth fails to stabilize.
Financial data indicates that ILPT consistently reports negative net income, with losses reaching $9.4 million in 2026Q1, which suggests that the company's capital structure is fundamentally misaligned with its current operational earnings capacity, regardless of the reported FFO improvements seen in recent periods.
The persistent negative net income, despite positive revenue growth, points to a structural issue where interest expenses and management fees consume the entirety of the operating profit. This situation appears to create a high-risk environment where the company is effectively subsidizing its operations through debt rather than property-level cash flow.
Quick answers to the most common questions about buying ILPT stock.
For fiscal year 2025, Industrial Logistics Properties Trust (ILPT) reported total revenue of $448.8M. This represents a 203.5% increase compared to $147.9M in 2015.
Industrial Logistics Properties Trust (ILPT) reported a net loss of $66.2M for the fiscal year ending 2025.
Industrial Logistics Properties Trust (ILPT) reported an operating income of $147.9M, resulting in an operating profit margin of 33.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Industrial Logistics Properties Trust (ILPT) generated $56.7M in gross profit for the year, representing a gross profit margin of 12.6%. This demonstrates the company's core pricing power and production efficiency.