Industrial Logistics Properties Trust 10-K

Item 9A. Controls and Procedures As of the end of the period covered by this Annual Report on Form 10-K, our management carried out an evaluation, under the supervision and with the participation of our Managing Trustees, our President and Chief Operating Officer and our Chief Financial Officer and Treasurer, of the effectiveness of our disclosure controls and procedures pursuant to Rules 13a-15 and 60 Table of Contents 15d-15 under the Exchange Act. Based upon that evaluation, our Managing Trustees, our President and Chief Operating Officer and our Chief Financial Officer and Treasurer concluded that our disclosure controls and procedures are effective. There have been no changes in our internal control over financial reporting during the quarter ended December 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Management Report on Assessment of Internal Control Over Financial Reporting We are responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control system is designed to provide reasonable assurance to our management and Board of Trustees regarding the preparation and fair presentation of published financial statements. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2022. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control - Integrated Framework (2013 Framework). Based on this assessment, we believe that, as of December 31, 2022, our internal control over financial reporting was effective. Deloitte & Touche LLP, the independent registered public accounting firm that audited our 2022 Consolidated Financial Statements included in this Annual Report on Form 10-K, has issued an attestation report on our internal control over financial reporting. The report appears elsewhere herein. Item 9B. Other Information None. Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Not applicable. 61 Table of Contents PART III Item 10. Directors, Executive Officers and Corporate Governance We have a Code of Conduct that applies to our officers and Trustees, RMR, senior and executive officers of RMR, members of the board of directors of RMR Inc. and employees of RMR who provide significant services to us. Our Code of Conduct is posted on our website, www.ilptreit.com. A printed copy of our Code of Conduct is also available free of charge to any person who requests a copy by writing to Investor Relations, Industrial Logistics Properties Trust, Two Newton Place, 255 Washington Street, Suite 300, Newton, Massachusetts 02458-1634. We intend to satisfy the requirements under Item 5.05 of Form 8-K regarding disclosure of amendments to, or waivers from, provisions of our Code of Conduct that apply to our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, on our website. The remainder of the information required by Item 10 is incorporated by reference to our definitive Proxy Statement. Item 11. Executive Compensation The information required by Item 11 is incorporated by reference to our definitive Proxy Statement. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Equity Compensation Plan Information. We may grant common shares to our officers and other employees of RMR under our 2018 Equity Compensation Plan, or the 2018 Plan. In addition, each of our Trustees receives common shares as part of his or her annual compensation for serving as a Trustee and such shares are awarded under the 2018 Plan. The terms of awards made under the 2018 Plan are determined by the Compensation Committee of our Board of Trustees at the time of the awards. The following table is as of December 31, 2022: Number of securities Number of securities remaining available for future to be issued upon Weighted-average issuance under equity exercise of exercise price of compensation plan (excluding outstanding options, outstanding options, securities reflected in warrants and rights warrants and rights column (a)) Plan category (a) (b) (c) Equity compensation plans approved by securityholders - 2018 Plan None. None. 3,431,885 (1) Equity compensation plans not approved by securityholders None. None. None Total None. None. 3,431,885 (1) (1) Consists of common shares available for issuance pursuant to the terms of the 2018 Plan. Share awards that are repurchased or forfeited will be added to the common shares available for issuance under the 2018 Plan. Payments by us to RMR employees are described in Notes 7 and 10 to the Notes to Consolidated Financial Statements included in Part IV, Item 15 of this Annual Report on Form 10-K. The remainder of the information required by Item 12 is incorporated by reference to our definitive Proxy Statement. Item 13. Certain Relationships and Related Transactions, and Director Independence The information required by Item 13 is incorporated by reference to our definitive Proxy Statement. Item 14. Principal Accountant Fees and Services The information required by Item 14 is incorporated by reference to our definitive Proxy Statement. 62 Table of Contents PART IV Item 15. Exhibits and Financial Statement Schedules (a) Index to Financial Statements and Financial Statement Schedules The following consolidated financial statements and financial statement schedules of Industrial Logistics Properties Trust are included on the pages indicated: Reports of Independent Registered Public Accounting Firm (PCAOB ID No. 34 ) F-1 Consolidated Balance Sheets as of December 31, 202 2 and 20 2 1 F-5 Consolidated Statements of Comprehensive Income ( loss ) for each of the three years in the period ended December 31, 20 2 2 F-6 Consolidated Statements of Shareholders’ Equity for each of the three years in the period ended December 31, 20 2 2 F-7 Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, 20 2 2 F-8 Notes to Consolidated Financial Statements F-10 Schedule III—Real Estate and Accumulated Depreciation S-1 All other schedules for which provision is made in the applicable accounting regulations of the SEC are not required under the related instructions, or are inapplicable, and therefore have been omitted. Significant Tenant Subsidiaries of FedEx were the lessees of 39.7% of our gross real estate assets as of December 31, 2022. Financial information about FedEx may be found on SEC’s website by entering its name at http://www.sec.gov/edgar/searchedgar/companysearch.html. Reference to FedEx’s financial information on this external website is presented to comply with applicable accounting regulations of the SEC. Except for such financial information contained therein as is required to be included herein under such regulations, FedEx’s public filings and other information located in external websites are not incorporated by reference in these financial statements. See Note 4 to the Notes to Consolidated Financial Statements included in Part IV, Item 15 of this Annual Report on Form 10-K for further information relating to our leases with FedEx. (b) Exhibits Exhibit Number Description 2.1 Agreement and Plan of Merger, dated as of November 5, 2021, by and among the Company, Monmouth Real Estate Investment Corporation and Maple Delaware Merger Sub LLC (now known as Mountain I n dustrial REIT LLC) . (Incorporated by reference to the Company’s Current Report on Form 8-K filed on November 9, 2021.) 2.2 Amendment No. 1 to Agreement and Plan of Merger, dated as of February 7, 2022, by and among the Company, Monmouth Real Estate Investment Corporation and Maple Delaware Merger Sub LLC (now known as M o untain Industrial REIT LLC) . (Incorporated by reference to the Company’s Current Report on Form 8-K filed on February 7, 2022.) 3.1 Composite Copy of Amended and Restated Declaration of Trust of the Company, dated as of January 11, 2018, as amended to date. (Incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020.) 3.2 Amended and Restated Bylaws of the Company, adopted March 25, 2019. (Incorporated by reference to the Company’s Current Report on Form 8-K filed on March 26, 2019.) 4.1 Form of Common Share Certificate. (Incorporated by reference to Amendment No. 2 to the Company’s Registration Statement on Form S-11, File No. 333-221708.) 4.2 Description of Securities. (Incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.) 8.1 Opinion of Sullivan & Worcester LLP as to certain tax matters. (Filed herewith.) 63 Table of Contents 10.1 Transaction Agreement, dated as of January 17, 2018, between the Company and Office Properties Income Trust (f/k/a Government Properties Income Trust) (as successor to Select Income REIT). (Incorporated by reference to the Company’s Current Report on Form 8-K filed on January 18, 2018.) 10.2 Business Management Agreement, dated as of January 17, 2018, between the Company and The RMR Group LLC.(+) (Incorporated by reference to the Company’s Current Report on Form 8-K filed on January 18, 2018.) 10.3 Amendment to Business Management Agreement, dated as of December 31, 2018, between the Company and The RMR Group LLC.(+) (Incorporated by reference to the Company’s Current Report on Form 8-K filed on January 4, 2019.) 10.4 Second Amendment to Business Management Agreement, effective as of August 1, 2021, between the Company and The RMR Group LLC.(+) (Incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021.) 10.5 Property Management Agreement, dated as of January 17, 2018, between the Company and The RMR Group LLC.(+) (Incorporated by reference to the Company’s Current Report on Form 8-K filed on January 18, 2018.) 10.6 2018 Equity Compensation Plan.(+) (Incorporated by reference to the Company’s Current Report on Form 8-K filed on January 18, 2018.) 10.7 Form of Share Award Agreement.(+) (Incorporated by reference to Amendment No. 3 to the Company’s Registration Statement on Form S-11, File No. 333-221708.) 10.8 Form of Share Award Agreement.(+) (Incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020.) 10.9 Form of Indemnification Agreement.(+) (Incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022.) 10.10 Summary of Trustee Compensation.(+) (Incorporated by reference to the Company’s Current Report on Form 8-K filed on June 2, 2022.) 10.11 Loan Agreement, dated as of January 29, 2019, among certain of the Company’s subsidiaries, as co-borrowers, and Morgan Stanley Bank, N.A., Citi Real Estate Funding Inc., UBS AG and JPMorgan Chase Bank, National Association. (Incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.) 10.12 Loan Agreement, dated as of February 25, 2022, among certain subsidiaries of Mountain Industrial REIT LLC and Citi Real Estate Funding Inc., UBS AG, Bank of America, N.A., Bank of Montreal and Morgan Stanley Bank, N.A. (Incorporated by reference to the Company’s Current Report on Form 8-K filed on February 28, 2022.) 10.13 First Amendment to Loan Agreement and Other Loan Documents, dated as of March 8, 2022, among certain subsidiaries of Mountain Industrial REIT LLC and Citi Real Estate Funding Inc., UBS AG, Bank of America, N.A., Bank of Montreal and Morgan Stanley Bank, N.A. (Incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.) 10.14 Loan Agreement, dated as of February 25, 2022, among certain subsidiaries of the Company and Citi Real Estate Funding Inc., UBS AG, Bank of America, N.A., Bank of Montreal and Morgan Stanley Bank, N.A. (Incorporated by reference to the Company’s Current Report on Form 8-K filed on February 28, 2022.) 10.15 Mezzanine A Loan Agreement, dated as of February 25, 2022, among ILPT Mezz Fixed Borrower 2 LLC, Citigroup Global Markets Realty Corp., UBS AG, Bank of America, N.A., Bank of Montreal and Morgan Stanley Mortgage Capital Holdings LLC. (Incorporated by reference to the Company’s Current Report on Form 8-K filed on February 28, 2022.) 10.16 Mezzanine B Loan Agreement, dated as of February 25, 2022, among ILPT Mezz Fixed Borrower LLC, Citigroup Global Markets Realty Corp., UBS AG, Bank of America, N.A., Bank of Montreal and Morgan Stanley Mortgage Capital Holdings LLC. (Incorporated by reference to the Company’s Current Report on Form 8-K filed on February 28, 2022.) 64 Table of Contents 10.17 Loan Agreement, dated as of September 22, 2022, among certain subsidiaries of the Company, Citi Real Estate Funding Inc., UBS AG New York (1285 Avenue of the Americas) Branch, Bank of America, N.A., Bank of Montreal and Morgan Stanley Mortgage Capital Holdings LLC. (Incorporated by reference to the Company’s Current Report on Form 8-K filed on September 26, 2022.) 10.18 Mezzanine Loan Agreement, dated as of September 22, 2022, among certain subsidiaries of the Company, Citigroup Global Markets Realty Corp., UBS AG New York (1285 Avenue of the Americas) Branch, Bank of America, N.A., Bank of Montreal, and Morgan Stanley Mortgage Capital Holdings LLC. (Incorporated by reference to the Company’s Current Report on Form 8-K filed on September 26, 2022.) 21.1 Subsidiaries of the Company. (Filed herewith.) 23.1 Consent of Deloitte & Touche LLP. (Filed herewith.) 23.2 Consent of Sullivan & Worcester LLP. (Contained in Exhibit 8.1.) 31.1 Rule 13a-14(a) Certification. (Filed herewith.) 31.2 Rule 13a-14(a) Certification. (Filed herewith.) 31.3 Rule 13a-14(a) Certification. (Filed herewith.) 31.4 Rule 13a-14(a) Certification. (Filed herewith.) 32.1 Section 1350 Certification. (Furnished herewith.) 99.1 Letter Agreement, dated as of January 29, 2019, between the Company and The RMR Group LLC. (Incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.) 99.2 Letter Agreement, dated as of February 25, 2022, between the Company and The RMR Group LLC. (Incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.) 101.INS XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. 101.SCH XBRL Taxonomy Extension Schema Document. (Filed herewith.) 101.CAL XBRL Taxonomy Extension Calculation Linkbase Document. (Filed herewith.) 101.DEF XBRL Taxonomy Extension Definition Linkbase Document. (Filed herewith.) 101.LAB XBRL Taxonomy Extension Label Linkbase Document. (Filed herewith.) 101.PRE XBRL Taxonomy Extension Presentation Linkbase Document. (Filed herewith.) 104 Cover Page Interactive Data File (Formatted as Inline XBRL and contained in Exhibit 101.) (+) Management contract or compensatory plan or arrangement. Item 16. Form 10-K Summary None. 65 Table of Contents Report of Independent Registered Public Accounting Firm To the Trustees and Shareholders of Industrial Logistics Properties Trust Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Industrial Logistics Properties Trust (the “Company”) as of December 31, 2022 and 2021, the related consolidated statements of comprehensive income, shareholders’ equity, and cash flows, for each of the three years in the period ended December 31, 2022, and the related notes and the schedule listed in the Index at Item 15(a) (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 14, 2023, expressed an unqualified opinion on the Company's internal control over financial reporting. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Purchase Price Allocation for the Acquisition of Monmouth Real Estate Investment Corporation – Refer to Note 3 Critical Audit Matter Description The Company completed the acquisition of Monmouth Real Estate Investment Corporation on February 25, 2022. The Company concluded that this was an asset acquisition, and as such, the purchase price was allocated to all assets acquired and liabilities assumed based on their relative fair values. The method for determining the fair value of each asset acquired and liability assumed required management to make significant estimates and assumptions related to future cash flows, capitalization rates, and sales comparables. Performing audit procedures to evaluate the reasonableness of those significant estimates and assumptions required a high degree of auditor judgment and an increased effort, including the need to involve our fair value specialists, and we therefore identified the allocation of purchase price as a critical audit matter. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to the purchase price allocation for the acquisition of Monmouth Real Estate Investment Corporation included the following, among others: F-1 Table of Contents • We tested the effectiveness of controls over management’s evaluation of the purchase price allocation, including the assumptions used to value the acquired assets and liabilities assumed. • We held discussions with the Company’s management and evaluated Company-prepared analyses to assess the reasonableness of the accounting treatment as an asset acquisition as opposed to a business combination. • We obtained and evaluated the third-party purchase price allocation report along with relevant supporting documentation, such as the executed purchase and sale agreement, in order to corroborate our understanding of the substance of the acquisition obtained through inquiry with the Company’s management, as well as assess the completeness of the assets acquired and the liabilities assumed as part of the acquisition. • We performed risk assessment procedures to evaluate the fair value estimates allocated to assets acquired and liabilities assumed to identify outliers for further investigation. • With the assistance of our fair value specialists, we evaluated the reasonableness of the valuation methodology, costs to replace certain assets, and significant assumptions used in the cash flow models, including testing the mathematical accuracy of the calculation and comparing the key inputs used in the projections to external market sources. • We tested the reasonableness of management’s capitalization rates by comparing the assumptions used to external market sources. • We tested, on a sample basis, the reasonableness of management’s projections of property net operating income by comparing the assumptions used in the projections to executed lease agreements and the actual net operating income for the period ended December 31, 2022. /s/ Deloitte & Touche LLP Boston, Massachusetts February 14, 2023 We have served as the Company's auditor since 2020. F-2 Table of Contents Report of Independent Registered Public Accounting Firm To the Trustees and Shareholders of Industrial Logistics Properties Trust Opinion on Internal Control over Financial Reporting We have audited the internal control over financial reporting of Industrial Logistic Properties Trust (the “Company”) as of December 31, 2022, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2022, of the Company and our report dated February 14, 2023, expressed an unqualified opinion on those financial statements. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management Report on Assessment of Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Deloitte & Touche LLP Boston, Massachusetts February 14, 2023 F-3 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST CONSOLIDATED BALANCE SHEETS (dollars in thousands, except per share data) December 31, 2022 2021 ASSETS Real estate properties: Land $ 1,117,779 $ 699,037 Buildings and improvements 4,058,329 1,049,796 Total real estate properties, gross 5,176,108 1,748,833 Accumulated depreciation ( 273,467 ) ( 167,490 ) Total real estate properties, net 4,902,641 1,581,343 Investment in unconsolidated joint venture 124,358 143,021 Acquired real estate leases, net 297,445 63,441 Cash and cash equivalents 48,261 29,397 Restricted cash 92,519 — Rents receivable, including straight line rents of $ 80,710 and $ 69,172 , respectively 107,011 75,877 Other assets, net 103,931 15,479 Total assets $ 5,676,166 $ 1,908,558 LIABILITIES AND EQUITY Revolving credit facility $ — $ 182,000 Mortgages and notes payable, net 4,244,501 646,124 Accounts payable and other liabilities 73,547 27,772 Assumed real estate lease obligations, net 22,523 12,435 Due to related persons 4,824 2,185 Total liabilities 4,345,395 870,516 Commitments and contingencies Equity: Equity attributable to common shareholders: Common shares of beneficial interest, $ .01 par value: 100,000,000 shares authorized; 65,568,145 and 65,404,592 shares issued and outstanding, respectively 656 654 Additional paid in capital 1,014,201 1,012,224 Cumulative net income 117,185 343,908 Cumulative other comprehensive income 21,903 — Cumulative common distributions ( 363,221 ) ( 318,744 ) Total equity attributable to common shareholders 790,724 1,038,042 Total equity attributable to noncontrolling interest 540,047 — Total equity 1,330,771 1,038,042 Total liabilities and equity $ 5,676,166 $ 1,908,558 The accompanying notes are an integral part of these consolidated financial statements. F-4 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (amounts in thousands, except per share data) Year Ended December 31, 2022 2021 2020 Rental income $ 388,151 $ 219,874 $ 254,575 Expenses: Real estate taxes 50,624 30,134 35,185 Other operating expenses 30,855 18,678 20,749 Depreciation and amortization 160,982 50,598 70,518 General and administrative 32,877 16,724 200 Acquisition and other transaction related costs 586 1,132 19,580 Loss on impairment of real estate 100,747 — — Total expenses 376,671 117,266 146,232 Interest and other income 2,663 — 113 Interest expense (including net amortization of debt issuance costs, premiums and discounts of $ 96,974 , $ 2,022 , and $ 2,481 , respectively) ( 280,051 ) ( 35,625 ) ( 51,619 ) (Loss) gain on sale of real estate ( 10 ) 12,054 23,996 Loss on equity securities ( 5,758 ) — — (Loss) gain on early extinguishment of debt ( 22,198 ) — 120 (Loss) income before income tax expense and equity in earnings of unconsolidated joint venture ( 293,874 ) 79,037 80,953 Income tax expense ( 45 ) ( 273 ) ( 277 ) Equity in earnings of unconsolidated joint venture 7,078 40,918 529 Net (loss) income ( 286,841 ) 119,682 81,205 Net loss attributable to noncontrolling interest 60,118 — 866 Net (loss) income attributable to common shareholders ( 226,723 ) 119,682 82,071 Other comprehensive income: Unrealized gain on derivatives 30,194 — — Less: unrealized gain on derivatives attributable to noncontrolling interest ( 8,291 ) — — Other comprehensive income attributable to common shareholders 21,903 — — Comprehensive (loss) income attributable to common shareholders $ ( 204,820 ) $ 119,682 $ 82,071 Weighted average common shares outstanding - basic 65,248 65,169 65,104 Weighted average common shares outstanding - diluted 65,248 65,211 65,114 Per common share data (basic and diluted): Net (loss) income attributable to common shareholders $ ( 3.47 ) $ 1.83 $ 1.26 The accompanying notes are an integral part of these consolidated financial statements. F-5 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (dollars in thousands) Cumulative Total Equity Total Equity Number of Additional Other Cumulative Attributable to Attributable to Common Common Paid In Cumulative Comprehensive Common Common Noncontrolling Total Shares Shares Capital Net Income Income Distributions Shareholders Interest Equity Balance at December 31, 2019 65,180,628 $ 652 $ 999,302 $ 142,155 $ — $ ( 146,419 ) $ 995,690 $ — $ 995,690 Net income (loss) — — — 82,071 — — 82,071 ( 866 ) 81,205 Share grants 139,100 1 2,335 — — — 2,336 — 2,336 Share repurchases ( 18,060 ) — ( 382 ) — — — ( 382 ) — ( 382 ) Share forfeitures ( 580 ) — ( 3 ) — — — ( 3 ) — ( 3 ) Distributions to common shareholders — — — — — ( 86,089 ) ( 86,089 ) — ( 86,089 ) Contributions from noncontrolling interest — — 9,567 — — — 9,567 98,375 107,942 Distributions to noncontrolling interest — — — — — — — ( 5,479 ) ( 5,479 ) Sale of interest in joint venture — — — — — — — ( 92,030 ) ( 92,030 ) Balance at December 31, 2020 65,301,088 $ 653 $ 1,010,819 $ 224,226 $ — $ ( 232,508 ) $ 1,003,190 $ — $ 1,003,190 Net income (loss) — — — 119,682 — — 119,682 — 119,682 Share grants 139,800 1 2,331 — — — 2,332 — 2,332 Share repurchases ( 35,596 ) — ( 922 ) — — — ( 922 ) — ( 922 ) Share forfeitures ( 700 ) — ( 4 ) — — — ( 4 ) — ( 4 ) Distributions to common shareholders — — — — — ( 86,236 ) ( 86,236 ) — ( 86,236 ) Balance at December 31, 2021 65,404,592 $ 654 $ 1,012,224 $ 343,908 $ — $ ( 318,744 ) $ 1,038,042 $ — $ 1,038,042 Net income (loss) — — — ( 226,723 ) — — ( 226,723 ) ( 60,118 ) ( 286,841 ) Share grants 197,800 2 2,228 — — — 2,230 — 2,230 Share repurchases ( 32,347 ) — ( 242 ) — — — ( 242 ) — ( 242 ) Share forfeitures ( 1,900 ) — ( 9 ) — — — ( 9 ) — ( 9 ) Distributions to common shareholders — — — — — ( 44,477 ) ( 44,477 ) — ( 44,477 ) Net current period other comprehensive income — — — — 21,903 — 21,903 8,291 30,194 Contributions from noncontrolling interest — — — — — — — 593,239 593,239 Distributions to noncontrolling interest — — — — — — — ( 1,365 ) ( 1,365 ) Balance at December 31, 2022 65,568,145 $ 656 $ 1,014,201 $ 117,185 $ 21,903 $ ( 363,221 ) $ 790,724 $ 540,047 $ 1,330,771 The accompanying notes are an integral part of these consolidated financial statements. F-6 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST CONSOLIDATED STATEMENTS OF CASH FLOWS (dollars in thousands) Year Ended December 31, 2022 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) income $ ( 286,841 ) $ 119,682 $ 81,205 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation 106,236 32,457 43,821 Loss on impairment of real estate 100,747 — — Net amortization of debt issuance costs, premiums and discounts 96,974 2,022 2,481 Amortization of acquired real estate leases and assumed real estate lease obligations 48,570 16,656 24,573 Amortization of deferred leasing costs 1,675 938 1,357 Loss on equity securities 5,758 — — Straight line rental income ( 11,538 ) ( 7,263 ) ( 9,041 ) Loss (gain) on early extinguishment of debt 22,198 — ( 120 ) Loss (gain) on sale of real estate 10 ( 12,054 ) ( 23,996 ) Other non-cash expenses 3,249 2,328 2,331 Distributions of earnings from unconsolidated joint venture 5,282 2,640 — Equity in earnings of unconsolidated joint venture ( 7,078 ) ( 40,918 ) ( 529 ) Change in assets and liabilities: Rents receivable ( 19,596 ) 54 ( 2,907 ) Deferred leasing costs ( 9,599 ) ( 4,694 ) ( 2,443 ) Due from related persons — 2,665 ( 3,871 ) Other assets 12,267 ( 3,434 ) ( 1,068 ) Accounts payable and other liabilities 3,034 2,525 2,613 Rents collected in advance 7,878 583 279 Security deposits 1,385 ( 3,443 ) 12 Due to related persons 2,640 ( 94 ) ( 133 ) Net cash provided by operating activities 83,251 110,650 114,564 CASH FLOWS FROM INVESTING ACTIVITIES: Real estate acquisitions ( 3,589,389 ) ( 134,730 ) ( 115,813 ) Real estate improvements ( 17,732 ) ( 4,911 ) ( 5,857 ) Proceeds from sale of marketable securities 140,792 — — Distributions in excess of earnings from unconsolidated joint venture 20,460 — — Proceeds from sale of properties to joint venture, net — 160,506 — Proceeds from sale of real estate — 1,206 10,578 Proceeds from sale of joint venture — 804 106,283 Distributions in excess of earnings from Affiliates Insurance Company — — 287 Net cash (used in) provided by investing activities ( 3,445,869 ) 22,875 ( 4,522 ) The accompanying notes are an integral part of these consolidated financial statements. F-7 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (dollars in thousands) Year Ended December 31, 2022 2021 2020 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of mortgage notes payable 3,335,000 — — Repayment of mortgage notes payable ( 18,070 ) — ( 48,750 ) Proceeds from secured bridge loan facility 1,385,158 — — Repayment of secured bridge loan facility ( 1,385,158 ) — — Borrowings under revolving credit facility 3,000 301,000 234,000 Repayments of revolving credit facility ( 185,000 ) ( 340,000 ) ( 323,000 ) Payment of debt issuance costs ( 211,996 ) ( 804 ) — Proceeds from sale of interest rate cap 7,740 — — Distributions to common shareholders ( 44,477 ) ( 86,236 ) ( 86,089 ) Proceeds from noncontrolling interest, net 589,411 — 107,942 Repurchase of common shares ( 242 ) ( 922 ) ( 382 ) Distributions to noncontrolling interest ( 1,365 ) — ( 5,479 ) Net cash provided by (used in) financing activities 3,474,001 ( 126,962 ) ( 121,758 ) Increase (decrease) in cash, cash equivalents and restricted cash 111,383 6,563 ( 11,716 ) Cash, cash equivalents and restricted cash at beginning of period 29,397 22,834 34,550 Cash, cash equivalents and restricted cash at end of period $ 140,780 $ 29,397 $ 22,834 Year Ended December 31, 2022 2021 2020 SUPPLEMENTAL DISCLOSURES: Interest paid $ 178,842 $ 33,278 $ 50,433 Income taxes paid $ 228 $ 485 $ 209 Interest capitalized $ 180 $ — $ — NON-CASH INVESTING ACTIVITIES: Decrease in assets and liabilities resulting from the deconsolidation of investments that were previously consolidated: Real estate, net $ — $ — $ ( 631,879 ) Mortgage notes, net $ — $ — $ 403,160 Real estate acquired by assumption of mortgage notes payable $ 323,432 $ — $ — Real estate improvements accrued not paid $ 2,507 $ 705 $ 629 NON-CASH FINANCING ACTIVITIES: Assumption of mortgage notes payable $ ( 323,432 ) $ — $ — SUPPLEMENTAL DISCLOSURE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH: The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets to the amounts shown in the consolidated statements of cash flows: As of December 31, 2022 2021 2020 Cash and cash equivalents $ 48,261 $ 29,397 $ 22,834 Restricted cash (1) 92,519 — — Total cash, cash equivalents and restricted cash shown in the statements of cash flows $ 140,780 $ 29,397 $ 22,834 (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 in which we own a 61 % equity interest. The accompanying notes are an integral part of these consolidated financial statements. F-8 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in thousands, except per share data) Note 1. Organization Industrial Logistics Properties Trust, or, collectively with its consolidated subsidiaries, we, us or our, is a real estate investment trust, or REIT, organized under Maryland law on September 15, 2017. As of December 31, 2022, 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 (all square footage amounts included within this Annual Report on Form 10-K are unaudited) that were primarily industrial lands located on the island of Oahu, Hawaii, or our Hawaii Properties and 187 properties containing approximately 43,254,000 rentable square feet of industrial properties located in 38 other states, or our Mainland Properties, which included 94 properties owned by a consolidated joint venture in which we own a 61 % equity interest. As of December 31, 2022, we also owned a 22 % equity interest in an unconsolidated joint venture that owns 18 properties located in 12 states in the mainland United States containing approximately 11,726,000 rentable square feet. Note 2. Summary of Significant Accounting Policies Basis of Presentation. These consolidated financial statements include the accounts of us and our subsidiaries. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. On February 25, 2022, we acquired Monmouth Real Estate Investment Corporation, or MNR, pursuant to the merger of MNR with and into one of our wholly owned subsidiaries, or the Merger, as further described below. In connection with the Merger, we entered into a new joint venture arrangement for 95 of the acquired MNR properties, including two then committed, but not yet then completed, property acquisitions, located in the mainland United States, in which we retained a 61 % equity interest. Real Estate Properties. We record properties at cost. Our real estate investments in lands are not depreciated. We calculate depreciation on other real estate investments on a straight line basis over estimated useful lives generally ranging from seven to 40 years. We allocate the purchase prices of our properties to land, building and improvements based on determinations of the fair values of these assets assuming the properties are vacant. We determine the fair value of each property using methods similar to those used by independent appraisers, which may involve estimated cash flows that are based on a number of factors, including capitalization rates and discount rates, among others. In some circumstances, we engage independent real estate appraisal firms to provide market information and evaluations which are relevant to our purchase price allocations and determinations of depreciable useful lives; however, we are ultimately responsible for the purchase price allocations and determinations of useful lives. We allocate a portion of the purchase price to above market and below market leases based on the present value (using an interest rate which reflects the risks associated with acquired in place leases at the time each property was acquired by us) of the difference, if any, between (i) the contractual amounts to be paid pursuant to the acquired in place leases and (ii) our estimates of fair market lease rates for the corresponding leases, measured over a period equal to the terms of the respective leases. The terms of below market leases that include bargain renewal options, if any, are further adjusted if we determine renewal to be probable. We allocate a portion of the purchase price to acquire in place leases and tenant relationships based upon market estimates to lease up the property based on the leases in place at the time of purchase. In making these allocations, we consider factors such as estimated carrying costs during the expected lease up periods, including real estate taxes, insurance and other operating income and expenses and costs, such as leasing commissions, legal and other related expenses, to execute similar leases in current market conditions at the time a property was acquired by us. We allocate this aggregate value between acquired in place lease values and tenant relationships based on our evaluation of the specific characteristics of each tenant’s lease. However, we have not separated the value of tenant relationships from the value of acquired in place leases because such value and related amortization expense is immaterial to the accompanying consolidated financial statements. If the value of tenant relationships becomes material in the future, we may separately allocate those amounts and amortize the allocated amount over the estimated life of the relationships. We amortize capitalized above market lease values (included in acquired real estate leases in our consolidated balance sheets) and below market lease values (presented as assumed real estate lease obligations in our consolidated balance sheets) as a reduction or increase, respectively, to rental income over the terms of the associated leases. Such amortization resulted in increases in rental income of $ 4,544 , $ 781 and $ 791 during the years ended December 31, 2022, 2021 and 2020, respectively. We amortize the value of acquired in place leases (included in acquired real estate leases in our consolidated balance sheets), exclusive of the value of above market and below market acquired in place leases, or lease origination value, over the terms of F-9 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) the associated leases. Such amortization, which is included in depreciation and amortization expense, totaled $ 53,113 , $ 17,437 and $ 25,364 during the years ended December 31, 2022, 2021 and 2020, respectively. If a lease is terminated prior to its stated expiration, we write off the unamortized amounts relating to that lease. As of December 31, 2022 and 2021, our acquired real estate leases and assumed real estate lease obligations were as follows: December 31, 2022 2021 Acquired real estate leases: Capitalized above market lease values $ 31,313 $ 20,725 Less: accumulated amortization ( 15,598 ) ( 13,225 ) Capitalized above market lease values, net 15,715 7,500 Lease origination value 384,496 122,945 Less: accumulated amortization ( 102,766 ) ( 67,004 ) Lease origination value, net 281,730 55,941 Acquired real estate leases, net $ 297,445 $ 63,441 Assumed real estate lease obligations: Capitalized below market lease values $ 42,600 $ 33,674 Less: accumulated amortization ( 20,077 ) ( 21,239 ) Assumed real estate lease obligations, net $ 22,523 $ 12,435 As of December 31, 2022, the weighted average amortization periods for capitalized above market lease values, lease origination value and capitalized below market lease values were 9.4 years, 7.8 years, and 7.2 years, respectively. Future amortization of net intangible acquired real estate lease assets and liabilities to be recognized over the current terms of the associated leases as of December 31, 2022 are estimated to be $ 52,698 in 2023, $ 43,248 in 2024, $ 34,950 in 2025, $ 28,506 in 2026, $ 25,962 in 2027 and $ 89,558 thereafter. We recognize impairment losses on real estate investments when indicators of impairment are present and the estimated undiscounted cash flow from our real estate investments is less than the carrying amount of such real estate investments. Impairment indicators may include declining tenant occupancy, lack of progress releasing 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. We review our properties for impairment quarterly, or whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. If indicators of impairment are present, we evaluate the carrying value of the related property by comparing it to the expected future undiscounted cash flows expected to be generated from that property. 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 sum of these expected future undiscounted cash flows is less than the carrying value, we reduce the net carrying value of the property to its estimated fair value. The determination of undiscounted cash flow includes consideration of many factors including income to be earned from the investment, holding costs (exclusive of interest), estimated selling prices, and prevailing economic and market conditions. Certain of our industrial lands in Hawaii may require environmental remediation, especially if the use of those lands is changed; however, we do not have any present plans to change the use of those lands or to undertake this environmental cleanup. As of both December 31, 2022 and 2021, accrued environmental remediation costs of $ 6,940 were included in accounts payable and other liabilities in our consolidated balance sheets. These accrued environmental remediation costs relate to maintenance of our properties for current uses, and, because of the indeterminable timing of the remediation, these amounts have not been discounted to present value. In general, we do not have any insurance designated to limit any losses that we may incur as a result of known or unknown environmental conditions which are not caused by an insured event, such as, for example, fire or flood, although some of our tenants may maintain such insurance that may benefit us. Although we do not believe that there are environmental conditions at any of our properties that will have a material adverse effect on us, we cannot F-10 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) be sure that such conditions are not present at our properties or that costs we incur to remediate contamination will not have a material adverse effect on our business or financial condition. Charges for environmental remediation costs, if any, are included in other operating expenses in our consolidated statements of comprehensive income (loss). Capitalization Policy. Costs directly related to the development of properties are capitalized. We capitalize development costs, including interest, real estate taxes, insurance, and other project costs, incurred during the period of development. Determinations of when a development project commences and capitalization begins, and when a development project is substantially complete and held available for occupancy and capitalization must cease, involve judgments. We begin the capitalization of costs during the pre-construction period, which we consider to begin when activities that are necessary to the development of the property commence. We consider a development project as substantially completed and held available for occupancy upon the completion of tenant improvements, but no later than one year from cessation of major construction activity. Cash and Cash Equivalents. We consider highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Restricted Cash. Restricted cash consists of amounts escrowed for future capital expenditures as required by certain of our mortgaged properties and cash held for the operations of our consolidated joint venture in which we own a 61 % equity interest. Deferred Leasing Costs. Deferred leasing costs include capitalized brokerage costs and inducements associated with our entering leases. We amortize deferred leasing costs, which are included in depreciation and amortization expense, and inducements, which are included as a reduction to rental income, each on a straight line basis over the terms of the respective leases. Legal costs associated with the execution of our leases are expensed as incurred and included in general and administrative expenses in our consolidated statements of comprehensive income (loss). Deferred leasing costs totaled $ 22,371 and $ 12,918 at December 31, 2022 and 2021, respectively, and accumulated amortization of deferred leasing costs totaled $ 4,366 and $ 4,035 at December 31, 2022 and 2021, respectively. Future amortization of deferred leasing costs to be recognized during the current terms of our existing leases as of December 31, 2022, are estimated to be $ 2,199 in 2023, $ 2,156 in 2024, 1,926 in 2025, $ 1,786 in 2026, $ 1,723 in 2027 and $ 8,215 thereafter. Deferred leasing costs are included in other assets, net in our consolidated balance sheets. Debt Issuance Costs. Debt issuance costs include capitalized issuance costs related to borrowings, which are amortized to interest expense over the terms of the respective loans. As of December 31, 2021, we had debt issuance costs for our revolving credit facility, which we repaid and terminated in February 2022, totaling $ 6,711 and accumulated amortization of debt issuance costs of $ 5,907 . Debt issuance costs for our revolving credit facility were included in other assets, net in our consolidated balance sheets. Debt issuance costs, net of accumulated amortization, for our mortgage notes payable are presented as a direct deduction from the associated debt liability in our consolidated balance sheets. As of December 31, 2022 and 2021, we had debt issuance costs, net of accumulated amortization, of $ 45,862 and $ 3,876 , respectively, for certain of our mortgage notes payable. Future amortization of debt issuance costs to be recognized with respect to our mortgage notes payable as of December 31, 2022 are estimated to be $ 27,233 in 2023, $ 12,245 in 2024, $ 1,122 in 2025, $ 1,122 in 2026, $ 1,122 in 2027 and $ 3,019 thereafter. Derivative Instruments and Hedging Activities. We account for our derivative instruments at fair value. Accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative instrument and the designation of the derivative instrument. The change in fair value of the effective portion of the derivative instrument that is not designated as a hedge or that does not meet the hedge accounting criteria is recorded as a gain or loss to operations. Partially Owned Entities. We consolidate entities in which we have a controlling financial interest. In determining whether we have a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, we consider (i) whether the entity is a variable interest entity, or VIE, in which we are the primary beneficiary or (ii) whether the entity is a voting interest entity in which we have a majority of the voting interests of the entity. We are deemed to be the primary beneficiary of a VIE when we have (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. We generally do not control a partially owned entity if the approval of all of the partners/members is contractually required with respect to decisions that most significantly impact the performance of the partially owned entity. This includes decisions regarding operating/capital budgets, and the placement of new or additional financing secured by the assets of the F-11 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) venture, among others. We account for investments under the equity method when the requirements for consolidation are not met, and we have significant influence over the operations of the investee. Equity Method Investments. We own a 22 % equity interest in an unconsolidated joint venture which owns 18 properties. The properties owned by the unconsolidated joint venture are encumbered by an aggr egate $ 503,980 o f mo rtgage debts. We do not control the activities that are most significant to this joint venture and, as a result, we account for our investment in this joint venture under the equity method of accounting under the fair value option. See Notes 3, 5, 6, 9, 10 and 11 for more information regarding our joint ventures. Revenue Recognition. 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. Our leases provide for base rent payments and may also include variable payments. Rental income from operating leases, including any payments derived by index or market based indices, is recognized on a straight line basis over the lease term when we have determined that the collectability of substantially all the lease payments is probable. Some of our leases have options to extend or terminate the lease exercisable at the option of our tenants, which are considered when determining the lease term. Certain of our leases contain non-lease components, such as property level operating expenses and capital expenditures reimbursed by our tenants as well as other required lease payments. We have determined that all our leases qualify for the practical expedient to not separate the lease and non-lease components because (i) the lease components are operating leases and (ii) the timing and pattern of recognition of the non-lease components are the same as those of the lease components. We apply ASC 842, Leases , to the combined component. Income derived by our leases is recorded in rental income in our consolidated statements of comprehensive income (loss). Certain tenants are obligated to pay directly their obligations under their leases for insurance, real estate taxes and certain other expenses. These obligations, which have been assumed by the tenants under the terms of their respective leases, are not reflected in our consolidated financial statements. To the extent any tenant responsible for any such obligations under the applicable lease defaults on such lease or if it is deemed probable that the tenant will fail to pay for such obligations, we would record a liability for such obligations. Income Taxes. We have elected to be taxed as a REIT under the United States Internal Revenue Code of 1986, as amended, and, accordingly, we generally are not, and will not be, subject to federal income taxes provided we distribute our taxable income and meet certain organization and operating requirements to qualify for taxation as a REIT. We are, however, subject to certain state and local taxes. Use of Estimates. Preparation of these financial statements in conformity with U.S. generally accepted accounting principles, or GAAP, requires us to make estimates and assumptions that may affect the amounts reported in these consolidated financial statements and related notes. Right of Use Asset and Lease Liability. In connection with our acquisition of MNR, we assumed the lease for MNR’s former corporate headquarters, which expires on December 31, 2029, or the MNR lease, and three of the properties we acquired as part of the MNR acquisition were subject to ground leases under which we are the lessee. For leases under which we are the lessee, we are required to record a right of use asset and lease liability for all leases with a term greater than 12 months. As of December 31, 2022, the values of the right of use asset and related liability representing our future obligations under the lease arrangements under which we are the lessee were $ 5,084 and $ 5,149 , respectively. The right of use asset and related lease liability are included in other assets , net and accounts payable and other liabilities , respectively, in our consolidated balance sheets. We have a sublease for a portion of the MNR lease that expires on December 30, 2029. Rent expense incurred under the MNR lease, net of sublease revenue, was $ 231 for the year ended December 31, 2022. Rent expense is included in general and administrative expense in our consolidated statements of comprehensive income (loss). 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. F-12 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) Cumulative Other Comprehensive Income (Loss). Cumulative other comprehensive income (loss) represents our share of the cumulative comprehensive income and losses of our equity method investees. Net Income (Loss) Per Common Share. We calculate basic earnings per common share by dividing net income (loss) by the weighted average number of common shares outstanding during the period. We calculate diluted net income (loss) per share using the more dilutive of the two class method or the treasury stock method. Unvested share awards and other potentially dilutive common shares and the related impact on earnings are considered when calculating diluted earnings per share. Noncontrolling Interests. Noncontrolling interests represent the share of our consolidated joint venture owned by a third party. We recognize the noncontrolling holder’s share of the estimated fair value of the net assets at the date of formation or acquisition. Noncontrolling interests are subsequently adjusted for the noncontrolling holder’s share of additional contributions, distributions and their share of the net earnings or losses of our consolidated joint venture. We allocate net income (loss) to noncontrolling interests based on ownership interest during the period. The net income (loss) that is not attributable to us is reflected in the line item net loss attributable to noncontrolling interest. We do not recognize a gain or loss on transactions with the consolidated entity in which we do not own 100% of the equity and recognize the difference between the carrying amount of the noncontrolling interest and the consideration paid or received as additional paid-in-capital. Segment Reporting. We operate in one business segment: ownership and leasing of properties that include industrial and logistics buildings and leased industrial lands. Reclassifications. Reclassifications have been made to the prior years’ consolidated financial statements to conform to the current year’s presentations. Note 3. Real Estate Investments As of December 31, 2022, our portfolio was comprised of 413 consolidated properties containing approximately 59,983,000 rentable square feet, including our Hawaii Properties and our Mainland Properties, which included 94 properties owned by a consolidated joint venture in which we own a 61 % equity interest. As of December 31, 2022, we also owned a 22 % equity interest in an unconsolidated joint venture which owns 18 properties located in 12 states in the mainland United States totaling approximately 11,726,000 rentable square feet that were 100 % leased. We incurred capital expenditures at certain of our properties of $ 30,331 and $ 10,211 during the years ended December 31, 2022 and 2021, respectively. During the year ended December 31, 2022, we committed $ 20,334 for expenditures related to tenant improvements and leasing costs for leases executed during the period for approximately 7,580,000 square feet. Committed, but unspent tenant related obligations based on existing leases as of December 31, 2022, were $ 25,547 , of which $ 9,706 is expected to be spent during the next 12 months. 2022 Acquisitions: On February 25, 2022, we completed the acquisition of MNR pursuant to the Agreement and Plan of Merger, dated as of November 5, 2021 and as amended on February 7, 2022, or the Merger Agreement, by and among us, Maple Delaware Merger Sub LLC, a Delaware limited liability company and our wholly owned subsidiary, or Merger Sub, and MNR. At the effective time on February 25, 2022, or the Effective Time, MNR merged with and into Merger Sub, with Merger Sub continuing as the surviving entity, and the separate existence of MNR ceased. MNR’s portfolio included 124 Class A, single tenant, net leased, e-commerce focused industrial properties containing approximately 25,745,000 rentable square feet and two then committed, but not yet then completed, property acquisitions. The aggregate value of the consideration paid in the Merger was $ 3,739,048 , including the assumption of $ 323,432 aggregate principal amount of former MNR mortgage debt, the repayment of $ 885,269 of MNR debt and the payment of certain transaction fees and expenses, net of MNR’s cash on hand, and excluding two then pending property acquisitions for an aggregate purchase price of $ 78,843 , excluding acquisition related costs. Pursuant to the terms set forth in the Merger Agreement, at the Effective Time, each share of common stock, par value $ 0.01 per share, of MNR that was issued and outstanding immediately prior to the Effective Time was automatically converted into the right to receive $ 21.00 per share in cash, or the Common Stock Consideration, and each share of 6.125 % Series C Cumulative Redeemable Preferred Stock, par value $ 0.01 per share, of MNR, that was issued and outstanding immediately prior to the Effective Time was automatically converted into the right to receive an amount in cash equal to $ 25.00 plus accumulated and unpaid dividends. F-13 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) At the Effective Time, each MNR stock option and restricted stock award outstanding immediately prior to the Effective Time, whether vested or unvested, became fully vested and converted into the right to receive, in the case of stock options, the difference between the Common Stock Consideration and the exercise price and, in the case of restricted stock awards, the Common Stock Consideration. Any out-of-money stock options were canceled for no consideration. Immediately following the closing of the Merger, we entered into a joint venture arrangement with an institutional investor for 95 MNR properties in 27 states, including two then committed, but not yet then completed, property acquisitions. The investor acquired a 39 % equity interest in the joint venture from us for $ 589,411 , as of the completion of this transaction, and we retained the remaining 61 % equity interest in the joint venture. In connection with the transaction, the joint venture assumed $ 323,432 aggregate principal amount of former MNR mortgage debt secured by 11 properties and entered into a $ 1,400,000 interest only floating rate CMBS loan secured by 82 properties, or the Floating Rate Loan. 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 based on the secured overnight financing rate, or SOFR, plus a premium of 2.77 %. See Notes 5, 6, 10 and 11 for more information regarding this joint venture and related loans. In connection with the closing of the Merger, we entered into a $ 1,385,158 interest only bridge loan facility secured by 109 of our properties, or the Bridge Loan. We also entered into a $ 700,000 interest only fixed rate CMBS loan secured by 17 of our properties, or the Fixed Rate Loan. The Bridge Loan was scheduled to mature in February 2023 and required that interest be paid at an annual rate of SOFR plus a weighted average premium of 2.92 %. We repaid the Bridge Loan in full on September 22, 2022. The Fixed Rate Loan matures in March 2032 and requires that interest be paid at a weighted average annual interest rate of 4.42 %. The Floating Rate Loan, the Bridge Loan and the Fixed Rate Loan are collectively referred to as the Loans. See Note 5 for more information regarding the Loans. We used the proceeds from our sale of the equity interest in our joint venture in which we retained a 61 % equity interest to partially fund our acquisition of MNR. We funded our equity interest in that joint venture and the balance of the acquisition of MNR with proceeds from the Bridge Loan and the Fixed Rate Loan. In connection with the Merger and the Loans, we repaid the outstanding principal balance under our $ 750,000 unsecured revolving credit facility and then terminated the agreement governing the facility, which was scheduled to expire in June 2022, in accordance with its terms and without penalty. F-14 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) We accounted for the Merger as an acquisition of assets. The following table summarizes the purchase price allocation for the Merger: Land $ 430,818 Buildings 3,035,309 Acquired real estate leases (1) 294,576 Cash 8,814 Other assets, net 14,194 Securities available for sale (2) 146,550 Total assets 3,930,261 Mortgage notes payable, at fair value ( 323,432 ) Accounts payable and other liabilities ( 25,327 ) Assumed real estate lease obligations ( 17,829 ) Equity attributable to noncontrolling interest on the joint venture ( 3,827 ) Net assets acquired 3,559,846 Assumed working capital ( 144,230 ) Assumed mortgage notes payable, principal 323,432 Purchase price $ 3,739,048 (1) As of the date of acquisition, the weighted average amortization periods for the above market lease values, lease origination value and capitalized below market lease values were 11.1 years, 8.5 years and 7.8 years, respectively. (2) As part of the Merger, we acquired a portfolio of marketable securities and classified them as available for sale. During the year ended December 31, 2022, we sold all of these securities with a cost of $ 146,550 for net proceeds of $ 140,792 , resulting in a $ 5,758 realized loss on sale of equity securities for the year ended December 31, 2022. In July 2022, our consolidated joint venture acquired a property located in Augusta, Georgia containing 226,000 rentable square feet for a purchase price of approximately $ 38,053 , including acquisition related costs of $ 53 . This property is 100 % leased to a single tenant with a remaining lease term of approximately 14.9 years at the time of acquisition. We allocated the purchase price for this acquisition based on the estimated fair value of the acquired assets as follows: Purchase Buildings and Acquired Real Estate Price Land Improvements Leases $ 38,053 $ 3,818 $ 30,780 $ 3,455 This property was one of two committed MNR property acquisitions at the time of the Merger and was acquired directly by our consolidated joint venture. In September 2022, our consolidated joint venture terminated the agreement for the other committed MNR property acquisition. F-15 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) 2021 Acquisitions: During the year ended December 31, 2021, we acquired four industrial properties and one parcel of developable land containing 1,644,508 rentable square feet for an aggregate purchase price of $ 134,730 , including acquisition related costs of $ 1,030 . These acquisitions were accounted for as acquisitions of assets. We allocated the purchase prices for these acquisitions based on the estimated fair value of the acquired assets and assumed liabilities as follows: Number Rentable Buildings Acquired Acquired of Square Purchase and Real Estate Real Estate Date Market Area Properties Feet Price Land Improvements Leases Lease Obligations May 2021 Dallas, TX 1 — $ 2,319 $ 2,319 $ — $ — $ — June 2021 Columbus, OH 1 357,504 31,762 1,491 27,407 2,864 — August 2021 Memphis, TN 3 1,287,004 100,649 5,922 87,600 7,192 ( 65 ) 5 1,644,508 $ 134,730 $ 9,732 $ 115,007 $ 10,056 $ ( 65 ) 2020 Acquisitions: During the year ended December 31, 2020, we acquired two industrial properties containing a combined 1,465,846 rentable square feet for an aggregate purchase price of $ 115,813 , including acquisition related costs of $ 332 . These acquisitions were accounted for as acquisitions of assets. We allocated the purchase prices for these acquisitions based on the estimated fair value of the acquired assets and assumed liabilities as follows: Number Rentable Buildings Acquired of Square Purchase and Real Estate Date Market Area Properties Feet Price Land Improvements Leases February 2020 Phoenix, AZ 1 820,384 $ 71,628 $ 11,214 $ 54,676 $ 5,738 December 2020 Kansas City, KS 1 645,462 44,185 5,740 32,701 5,744 2 1,465,846 $ 115,813 $ 16,954 $ 87,377 $ 11,482 2021 Disposition: As a result of an eminent domain taking in September 2021, we sold a portion of a land parcel located in Rock Hill, South Carolina for $ 1,400 , excluding closing costs, resulting in a net gain on sale of real estate of $ 940 . 2020 Disposition: During the year ended December 31, 2020, we sold one property located in Virginia containing approximately 308,000 rentable square feet for a sales price of $ 10,775 , excluding closing costs. The sale of this property, as presented in the table below, did not represent a significant disposition or a strategic shift. As a result, the results of operations of this property was included in continuing operations through the date of sale in our consolidated statements of comprehensive income (loss). Number of Square Gross Gain on Sale of Date of Sale Properties Location Feet Sale Price (1) Real Estate December 2020 1 Winchester, VA 308,217 $ 10,775 $ 581 (1) Gross sale price is the gross contract price, adjusted for purchase price adjustments, if any, and excluding closing costs. F-16 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) Joint Venture Activities: As of December 31, 2022, we had equity investments in our joint ventures that consist of the following: ILPT Carrying Value ILPT of Investment Number of Square Joint Venture Presentation Ownership at December 31, 2022 Properties Location Feet Mountain Industrial REIT LLC Consolidated 61 % N/A 94 Various 20,980,664 The Industrial Fund REIT LLC Unconsolidated 22 % $ 124,358 18 Various 11,726,137 Consolidated Joint Venture - Mountain Industrial REIT LLC: As noted above, we entered into a joint venture arrangement immediately following the closing of the Merger and we control this joint venture and therefore account for the properties owned by this joint venture on a consolidated basis in our consolidated financial statements. We recognized a 39 % noncontrolling interest in our consolidated financial statements for the year ended December 31, 2022. The portion of this joint venture's net loss not attributable to us, or $ 60,067 , for the year ended December 31, 2022, is reported as noncontrolling interest in our consolidated statements of comprehensive income (loss). During the year ended December 31, 2022, this joint venture made aggregate cash distributions of $ 1,365 to the other joint venture investor, which is reflected as a decrease in total equity attributable to noncontrolling interest in our consolidated balance sheets. As of December 31, 2022, this joint venture had total assets of $ 3,100,448 and total liabilities of $ 1,725,397 . Consolidated Tenancy in Common: An unrelated third party owns an approximate 33 % tenancy in common interest in one of the properties we acquired as part of the MNR acquisition located in Somerset, New Jersey, and we own the remaining 67 % tenancy in common interest in this property. The portion of this property’s net loss not attributable to us, or $ 51 , for the year ended December 31, 2022, is reported as noncontrolling interest in our consolidated statements of comprehensive income (loss). Unconsolidated Joint Venture - The Industrial Fund REIT LLC: As of December 31, 2022 and 2021, we also owned a 22 % equity interest in an unconsolidated joint venture with 18 properties in 12 states. We account for the unconsolidated joint venture under the equity method of accounting under the fair value option. We recorded a change in the fair value of our investment in the unconsolidated joint venture of $ 7,078 and $ 40,918 for the years ended December 31, 2022 and 2021, respectively, as equity in earnings of unconsolidated joint venture in our consolidated statements of comprehensive income (loss). In addition, the unconsolidated joint venture made aggregate cash distributions to us of $ 25,742 and $ 2,640 during the year ended December 31, 2022 and 2021, respectively. Until November 2020, we owned a majority equity interest in our current unconsolidated joint venture and we consolidated that joint venture until November 2020, when we sold an additional 39 % equity interest in that joint venture and reduced our equity interest to 22 %. The portion of that joint venture's net loss not attributable to us, or $ 866 for the year ended December 31, 2020, is reported as noncontrolling interest in our consolidated statements of comprehensive income (loss). During the year ended December 31, 2020, the joint venture made aggregate cash distributions of $ 14,049 , including $ 5,479 to the other joint venture investor, which was reflected as a decrease in total equity attributable to noncontrolling interest and $ 8,570 to us. We determined that, while we owned a 61 % equity interest in this joint venture, this joint venture was a VIE as defined under the Consolidation Topic of the FASB ASC. We concluded that we must consolidate this VIE, and we did so, until we sold an additional 39 % equity interest in the joint venture in November 2020. We reached this determination because we were the entity with the power to direct the activities that most significantly impacted the VIE's economic performance and we had the obligation to absorb losses of, and the right to receive benefits from, the VIE that could be significant to the VIE, and therefore were the primary beneficiary of the VIE. The joint venture investor's interest in this consolidated entity was reflected as noncontrolling interest in our consolidated financial statements. See Notes 2, 5, 6, 9, 10 and 11 for more information regarding these joint ventures . F-17 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) Note 4. Leases Rental income from operating leases, including payments derived by index or market-based indices, is recognized 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 $ 11,538 , $ 7,263 and $ 9,041 to record revenue on a straight line basis during the years ended December 31, 2022, 2021 and 2020, 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 $ 63,168 , $ 38,732 and $ 45,858 for the years ended December 31, 2022, 2021 and 2020, respectively. The following operating lease maturity analysis presents the future contractual lease payments to be received by us through 2064 as of December 31, 2022: Year Amount 2023 $ 342,082 2024 329,996 2025 307,225 2026 287,847 2027 266,822 Thereafter 1,833,081 $ 3,367,053 Tenant Concentration Subsidiaries of FedEx Corporation, or FedEx, accounted for 28.0 % of our rental income as of December 31, 2022. FedEx accounted for $ 108,704 , $ 10,894 and $ 10,752 of our rental income for the years ended December 31, 2022, 2021 and 2020, respectively. In addition, subsidiaries of Amazon.com, Inc. accounted for 7.1 % of our rental income as of December 31, 2022. Amazon.com, Inc. accounted for $ 27,382 , $ 21,440 and $ 38,241 of our rental income for the years ended December 31, 2022, 2021 and 2020, respectively. Geographic Concentration For the years ended December 31, 2022, 2021 and 2020, approximately 29.7 %, 50.6 % and 42.2 %, respectively, of our rental income was from our Hawaii Properties. F-18 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) Note 5. Indebtedness As of December 31, 2022 and 2021, our outstanding indebtedness consisted of the following: Net Book Value Principal Balance as of of Collateral December 31, December 31, Interest At December 31, Entity Type Secured By: 2022 (1) 2021 (1) Rate Maturity 2022 ILPT Revolving credit facility (2) Unsecured $ — $ 182,000 N/A N/A $ — ILPT Floating Rate - Interest only (3) 104 Properties 1,235,000 — 6.18 % 10/09/24 1,071,815 ILPT Fixed Rate - Interest only 186 Properties 650,000 650,000 4.31 % 02/07/29 490,416 ILPT Fixed Rate - Interest only 17 Properties 700,000 — 4.42 % 03/09/32 518,806 Mountain JV (4) Floating Rate - Interest only (5) 82 Properties 1,400,000 — 6.17 % 03/09/24 1,909,185 Mountain JV (4) Fixed Rate - Amortizing One Property 13,556 — 3.76 % 10/01/28 63,314 Mountain JV (4) Fixed Rate - Amortizing One Property 4,865 — 3.77 % 04/01/30 39,724 Mountain JV (4) Fixed Rate - Amortizing One Property 5,145 — 3.85 % 04/01/30 39,724 Mountain JV (4) Fixed Rate - Amortizing One Property 14,392 — 3.56 % 09/01/30 50,825 Mountain JV (4) Fixed Rate - Amortizing One Property 12,691 — 3.67 % 05/01/31 30,800 Mountain JV (4) Fixed Rate - Amortizing One Property 14,144 — 4.14 % 07/01/32 44,777 Mountain JV (4) Fixed Rate - Amortizing One Property 30,949 — 4.02 % 10/01/33 87,143 Mountain JV (4) Fixed Rate - Amortizing One Property 43,219 — 4.13 % 11/01/33 131,539 Mountain JV (4) Fixed Rate - Amortizing One Property 26,175 — 3.10 % 06/01/35 47,718 Mountain JV (4) Fixed Rate - Amortizing One Property 42,087 — 2.95 % 01/01/36 101,896 Mountain JV (4) Fixed Rate - Amortizing One Property 46,109 — 4.27 % 11/01/37 113,063 Mountain JV (4) Fixed Rate - Amortizing One Property 52,031 — 3.25 % 01/01/38 116,607 Total indebtedness 4,290,363 832,000 $ 4,857,352 Unamortized debt issuance costs ( 45,862 ) ( 3,876 ) Total indebtedness, net $ 4,244,501 $ 828,124 (1) The principal balances are the amounts stated in contracts. In accordance with GAAP, our carrying values and recorded interest expense may be different because of market conditions at the time we assumed certain of these debts. (2) In February 2022, we repaid the outstanding principal balance under our $ 750,000 unsecured revolving credit facility and then terminated the agreement governing the facility in accordance with its terms and without penalty. (3) This loan matures in October 2024, subject to three , one year extension options, and requires that interest be paid at an annual rate of SOFR plus a weighted average premium of 3.93 %. We also purchased an interest rate cap through October 2024 with a SOFR strike rate equal to 2.25 %. (4) Mountain JV is Mountain Industrial REIT LLC, our consolidated joint venture, in which we own a 61 % equity interest . For more information regarding this joint venture, see Notes 2, 3, 6, 9, 10 and 11. (5) This 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 %. We also purchased an interest rate cap through March 2024 with a SOFR strike rate equal to 3.40 %. F-19 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) The following table provides a summary of the mortgage debts of the unconsolidated joint venture: Principal Balance Interest at December 31, Joint Venture (Unconsolidated) Rate Maturity Date 2022 (1) Mortgage notes payable (secured by one property in Florida) 3.60 % (2) 10/1/2023 $ 56,980 Mortgage notes payable (secured by 11 other properties in eight states) 3.33 % (2) 11/7/2029 350,000 Mortgage notes payable (secured by 5 properties in four states) 5.30 % 10/1/2027 97,000 Weighted average/total 3.74 % (2) $ 503,980 (1) Amounts are not adjusted for our minority interest; none of the debt is recourse to us. (2) Includes the effect of mark to market purchase accounting. As of December 31, 2021, we had a $ 750,000 unsecured revolving credit facility that was available for our general business purposes, including acquisitions. The maturity date of this revolving credit facility was June 29, 2022 and we had an option to extend the maturity date for one , six month period, subject to payment of extension fees and satisfaction of other conditions. As of December 31, 2021, the annual interest rate payable on borrowings under this revolving credit facility was 1.41 %. The weighted average annual interest rate for borrowings under this revolving credit facility was 1.41 %, for the period from January 1, 2022 to February 25, 2022, and 1.44 % and 2.36 % for the years ended December 31, 2021 and 2020, respectively. In connection with the closing of the Merger, we entered into the Loans, and repaid the outstanding principal balance under this revolving credit facility and then terminated the agreement governing the facility in accordance with its terms and without penalty. During the year ended December 31, 2022, we recorded a $ 828 loss on early extinguishment of debt to write off unamortized costs related to this facility. On February 25, 2022, subsidiaries of our consolidated joint venture entered into a loan agreement with a group of institutional lenders, or the Floating Rate Lenders, pursuant to which this joint venture obtained the Floating Rate Loan. Also on February 25, 2022, our consolidated joint venture entered into a guaranty in favor of the Floating Rate Lenders, pursuant to which this joint venture guaranteed certain limited recourse obligations of its subsidiaries with respect to the Floating Rate Loan. 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 2.25 %. Effective in March 2022, the Floating Rate Lenders exercised their option to increase the premium in connection with the securitization of the Floating Rate Loan, resulting in an increase of 51.5 basis points in the premium. We also purchased an interest rate cap through March 2024 with a SOFR strike rate equal to 3.40 %. The weighted average annual interest rate payable under the Floating Rate Loan was 6.17 % as of both December 31, 2022 and February 9, 2023, and was 6.10 % for the period from February 25, 2022 to December 31, 2022. Also on February 25, 2022, certain of our subsidiaries entered into a loan agreement with a group of institutional lenders, or the Bridge Lenders, and a mezzanine loan agreement with an institutional lender, or the Bridge Mezz Lender, together pursuant to which we obtained the Bridge Loan. Also on February 25, 2022, we entered into a guaranty in favor of the Bridge Lenders and the Bridge Mezz Lender, pursuant to which we guaranteed certain limited recourse obligations of its subsidiaries with respect to the Bridge Loan. The Bridge Loan was scheduled to mature in February 2023 and required that interest only be paid at an annual rate of SOFR plus a premium of 1.75 % under the loan agreement and a premium of 8.0 % under the mezzanine loan agreement. We also purchased an interest rate cap with a SOFR strike rate equal to 2.70 %. We repaid the Bridge Loan in full on September 22, 2022 with cash on hand and proceeds from our $ 1,235,000 floating rate loan, which is further described below. During the year ended December 31, 2022, we recorded a $ 21,370 loss on early extinguishment of debt to write off unamortized costs related to the Bridge Loan and related interest rate cap. The weighted average annual interest rate payable under the Bridge Loan was 4.24 % for the period from February 25, 2022 to September 22, 2022. Also on February 25, 2022, certain of our subsidiaries entered into a loan agreement with a group of institutional lenders, or the Fixed Rate Lenders, and mezzanine loan agreements with a separate group of institutional lenders, or the Fixed Mezz Lenders, pursuant to which we obtained the Fixed Rate Loan. Also on February 25, 2022, we entered into a guaranty in favor of the Fixed Rate Lenders and the Fixed Mezz Lenders, pursuant to which we guaranteed certain limited recourse obligations of our subsidiaries with respect to the Fixed Rate Loan. The interest only Fixed Rate Loan matures in March 2032 and requires that interest be paid at a weighted average annual fixed rate of 4.42 %. F-20 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) We used the aggregate net proceeds from the Loans to partially fund the acquisition of MNR. Principal payments on the Floating Rate Loan and Fixed Rate Loan are not required prior to the end of their respective initial terms, subject to certain conditions set forth in the applicable loan agreement. Subject to the satisfaction of certain conditions, we have the option under the applicable loan agreement: (1) to prepay up to $ 280,000 of the Floating Rate Loan after March 2023, at par with no premium, and to prepay the balance of the Floating Rate Loan at any time, subject to a premium; and (2) to prepay the Fixed Rate Loan in full or part at any time, subject to a premium, and beginning in September 2031, without a premium. On September 22, 2022, certain of our subsidiaries entered into a loan agreement with a group of institutional lenders, or the ILPT Floating Rate Lenders, and a mezzanine loan agreement with a separate group of institutional lenders, or the ILPT Floating Rate Mezz Lenders, pursuant to which we obtained the ILPT Floating Rate Loan, secured by 104 of our properties. The ILPT Floating Rate Loan is comprised of a $ 1,100,000 mortgage loan and a $ 135,000 mezzanine loan. Also, on September 22, 2022, we entered into a guaranty in favor of the ILPT Floating Rate Lenders and the ILPT Floating Rate Mezz Lenders, pursuant to which we guaranteed certain limited recourse obligations of our subsidiaries with respect to the ILPT Floating Rate Loan. The interest only ILPT Floating Rate Loan matures on October 9, 2024, subject to three , one year extension options, and requires that interest be paid at an annual rate of SOFR, which is capped at an annual rate of 2.25 % for the initial term of the ILPT Floating Rate Loan, plus a weighted average premium of 3.93 %. Subject to the satisfaction of certain conditions, we have the option: (1) to prepay up to $ 247,000 of the ILPT Floating Rate Loan at par with no premium; and (2) to prepay the balance of the ILPT Floating Rate Loan in full or in part at any time, subject to a premium, and beginning in October 2023, without a premium. The weighted average interest rate payable under the ILPT Floating Rate Loan was 6.18 % as of both December 31, 2022 and February 9, 2023 and for the period from September 22, 2022 to December 31, 2022. The agreements governing the Floating Rate Loan, Fixed Rate Loan and the ILPT Floating Rate Loan contain customary covenants and provide for acceleration of payment of all amounts due thereunder upon the occurrence and continuation of certain events of default. In May 2020, we prepaid, at par plus accrued interest, a mortgage note secured by one of our properties with an outstanding principal balance of approximately $ 48,750 , an annual interest rate of 3.48 % and a maturity date in November 2020. As a result of the prepayment of this mortgage note, we recorded a gain on early extinguishment of debt of $ 120 for the year ended December 31, 2020 to write off unamortized premiums. The required principal payments due during the next five years and thereafter under all our outstanding debt as of December 31, 2022 are as follows: Principal Year Payment 2023 $ 22,428 2024 2,658,268 2025 24,141 2026 25,047 2027 25,988 Thereafter 1,534,491 $ 4,290,363 (1) (1) Total debt outstanding as of December 31, 2022, including unamortized debt issuance costs of $ 45,862 , was $ 4,244,501 . F-21 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) Note 6. Fair Value of Assets and Liabilities Our financial instruments include cash and cash equivalents, restricted cash, rents receivable, the Floating Rate Loan, the ILPT Floating Rate Loan, the Fixed Rate Loan, mortgage notes payable, accounts payable, rents collected in advance, interest rate caps, security deposits and amounts due from or to related persons. At December 31, 2022 and 2021, the fair value of our financial instruments approximated their carrying values in our consolidated financial statements, due to their short term nature or floating interest rates, except as follows: At December 31, 2022 At December 31, 2021 Carrying Estimated Carrying Estimated Value (1) Fair Value Value (1) Fair Value Fixed rate loan, 3.76 % interest rate, due in 2028 $ 13,556 $ 12,784 $ — $ — Fixed rate loan, 4.31 % interest rate, due in 2029 646,669 592,295 646,124 709,198 Fixed rate loan, 3.77 % interest rate, due in 2030 4,865 4,553 — — Fixed rate loan, 3.85 % interest rate, due in 2030 5,145 4,829 — — Fixed rate loan, 3.56 % interest rate, due in 2030 14,392 13,315 — — Fixed rate loan, 3.67 % interest rate, due in 2031 12,691 11,713 — — Fixed rate loan, 4.42 % interest rate, due in 2032 694,704 623,133 — — Fixed rate loan, 4.14 % interest rate, due in 2032 14,144 13,182 — — Fixed rate loan, 4.02 % interest rate, due in 2033 30,949 28,195 — — Fixed rate loan, 4.13 % interest rate, due in 2033 43,219 39,573 — — Fixed rate loan, 3.10 % interest rate, due in 2035 26,175 22,373 — — Fixed rate loan, 2.95 % interest rate, due in 2036 42,087 35,444 — — Fixed rate loan, 4.27 % interest rate, due in 2037 46,109 41,880 — — Fixed rate loan, 3.25 % interest rate, due in 2038 52,031 43,878 — — $ 1,646,736 $ 1,487,147 $ 646,124 $ 709,198 (1) Includes unamortized debt issuance costs, premiums and discounts of $ 8,627 and $ 3,876 as of December 31, 2022 and 2021, respectively. We estimate the fair value of our mortgage notes payable using discounted cash flow analyses and current prevailing market rates as of the measurement date (Level 3 inputs). As Level 3 inputs are unobservable, our estimated fair value may differ materially from the actual fair value. F-22 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) The table below presents certain of our assets measured on a recurring and non-recurring basis at fair value at December 31, 2022 and 2021, 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 December 31, 2022 Recurring fair value measurements Investment in unconsolidated joint venture (1) $ 124,358 $ — $ — $ 124,358 Interest rate cap derivatives (2) $ 73,133 $ — $ 73,133 $ — Non-recurring fair value measurements Real estate properties (3) $ 555,123 $ — $ — $ 555,123 At December 31, 2021 Recurring fair value measurements Investment in unconsolidated joint venture (1) $ 143,021 $ — $ — $ 143,021 (1) We own a 22 % equity interest in a joint venture that owns 18 properties and is included in investment in unconsolidated joint venture in our consolidated balance sheet, and is reported at fair value, which is based on significant unobservable inputs (Level 3 inputs). The significant unobservable inputs used in the fair value are discount rates of between 5.25 % and 7.00 %, exit capitalization rates of between 4.75 % and 6.00 %, direct capitalization rates of between 5.25 % and 7.00 %, holding periods of approximately 10 years and market rents. Our assumptions are based on the location, type and nature of each property, and current and anticipated market conditions, which are derived from appraisers, industry publications and our experience. See Notes 2, 3, 5, 9, 10 and 11 for more information regarding our joint ventures. (2) Our derivative assets are carried at fair value as required by GAAP. The estimated fair values of the derivative assets are based on current market prices in secondary markets for similar derivative contracts, (Level 2 inputs). See Notes 5 and 11 for more information regarding our derivatives and hedging activities. (3) We recorded a loss on impairment of real estate of $ 100,747 to reduce the carrying value of 25 properties in our consolidated balance sheet to their estimated fair value, based on third party offers (Level 3 inputs as defined in the fair value hierarchy under GAAP), due to a change in plans to sell and the reclassification of those properties from held for sale to held and used. See Notes 2 and 3 for more information regarding our investing and financing activities, including our acquisition of MNR. Note 7. Shareholders’ Equity Common Share Awards: We have common shares available for issuance under the terms of our 2018 Equity Compensation Plan, or the 2018 Plan. During the years ended December 31, 2022, 2021 and 2020, we awarded to our officers and other employees of The RMR Group LLC, or RMR, annual share awards of 173,300 , 118,800 and 108,600 of our common shares, respectively, valued at $ 1,184 , $ 3,086 and $ 2,460 , in aggregate, respectively. In accordance with our Trustee compensation arrangements, we awarded each of our then Trustees 3,500 of our common shares with an aggregate value of $ 369 ($ 53 per Trustee), 3,500 of our common shares with an aggregate value of $ 538 ($ 90 per Trustee) and 3,500 of our common shares with an aggregate value of $ 460 ($ 66 per Trustee) during the years ended December 31, 2022, 2021 and 2020, respectively, as part of their annual compensation. Also in 2020, in connection with the election of two of our then Trustees, we awarded 3,000 of our common shares to each such Trustee with an aggregate value of $ 141 ($ 71 per Trustee) as part of their annual compensation. The values of the share awards were based upon the closing price of our common shares trading on The Nasdaq Stock Market LLC, or Nasdaq, on the dates of awards. The common shares awarded to our Trustees vested immediately. The common shares awarded to our officers and certain other employees of RMR vest in five equal annual installments beginning on the date of award. We recognize share forfeitures as they occur. We include the value of awarded shares in general and administrative expenses ratably over the vesting period. F-23 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) A summary of shares awarded, vested and forfeited under the terms of the 2018 Plan for the years ended December 31, 2022, 2021 and 2020 is as follows: Year Ended December 31, 2022 December 31, 2021 December 31, 2020 Weighted Weighted Weighted Average Average Average Number Grant Date Number Grant Date Number Grant Date of Shares Fair Value of Shares Fair Value of Shares Fair Value Unvested at beginning of year 192,380 $ 24.15 162,200 $ 22.37 108,200 $ 22.08 Granted 197,800 7.85 139,800 25.93 139,100 22.01 Vested ( 127,480 ) 17.44 ( 108,920 ) 23.78 ( 84,520 ) 21.41 Forfeited ( 1,900 ) 24.55 ( 700 ) 22.24 ( 580 ) 22.20 Unvested at end of year 260,800 $ 15.07 192,380 $ 24.15 162,200 $ 22.37 The 260,800 unvested shares as of December 31, 2022 are scheduled to vest as follows: 93,780 shares in 2023, 75,240 shares in 2024, 57,120 shares in 2025 and 34,660 in 2026. As of December 31, 2022, the estimated future compensation expense for the unvested shares was approximately $ 3,400 . The weighted average period over which the compensation expense will be recorded is approximately 23 months. During the years ended December 31, 2022, 2021 and 2020, we recorded $ 2,221 , $ 2,329 and $ 2,331 respectively, of compensation expense related to the 2018 Plan. At December 31, 2022, 3,431,855 common shares remain available for issuance under the 2018 Plan. Common Share Purchases: During the years ended December 31, 2022, 2021 and 2020, we purchased an aggregate of 32,347 , 35,596 and 18,060 of our common shares, respectively, at weighted average prices of $ 7.50 , $ 25.91 and $ 21.16 per common share, respectively, from certain of our Trustees and certain 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. Distributions: During the years ended December 31, 2022, 2021 and 2020, we paid distributions on our common shares as follows: Annual Per Characterization of Distribution Share Total Return of Ordinary Capital Year Distribution Distribution Capital Income Gain 2022 $ 0.68 $ 44,477 89.7 % 9.6 % 0.7 % 2021 $ 1.32 $ 86,236 — % 93.2 % 6.8 % 2020 $ 1.32 $ 86,089 — % 71.0 % 29.0 % On January 12, 2023, we declared a regular quarterly distribution of $ 0.01 per common share, or approximately $ 656 , to our common shareholders of record on January 23, 2023. We expect to pay this distribution to our shareholders on or about February 16, 2023. F-24 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) Note 8. Per Common Share Amounts We calculate basic earnings per common share by dividing net income (loss) attributable to common shareholders by the weighted average number of our common shares outstanding during the period. We calculate diluted earnings per share using the more dilutive of the two class method or the treasury stock method. Unvested common share awards, and the related impact on earnings, are considered when calculating diluted earnings per share. The calculation of basic and diluted earnings per share is as follows: Year Ended December 31, 2022 2021 2020 Numerators: Net (loss) income attributable to common shareholders $ ( 226,723 ) $ 119,682 $ 82,071 Loss attributable to unvested participating securities ( 131 ) ( 307 ) ( 154 ) Net (loss) income attributable to common shareholders used in calculating earnings per share $ ( 226,854 ) $ 119,375 $ 81,917 Denominators: Weighted average common shares for basic earnings per share 65,248 65,169 65,104 Effect of dilutive securities: unvested share awards — 42 10 Weighted average common shares for diluted earnings per share 65,248 65,211 65,114 Net (loss) income attributable to common shareholders per common share - basic and diluted $ ( 3.47 ) $ 1.83 $ 1.26 Note 9. 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. Management Agreements with RMR. Our management agreements with RMR provide for an annual base management fee, an annual incentive management fee and property management and construction supervision fees, payable in cash, among other terms: • Base Management Fee . The annual base management fee payable to RMR by us for each applicable period is equal to the lesser of: ◦ the sum of (i) 0.5 % of the average aggregate historical cost of the real estate assets acquired from a REIT to which RMR provided business management or property management services, or the Transferred Assets, plus (ii) 0.7 % of the average aggregate historical cost of our real estate investments excluding the Transferred Assets up to $ 250,000 , plus (iii) 0.5 % of the average aggregate historical cost of our real estate investments excluding the Transferred Assets exceeding $ 250,000 ; and ◦ the sum of (i) 0.7 % of the average closing price per share of our common shares on the stock exchange on which such shares are principally traded during such period, multiplied by the average number of our common shares outstanding during such period, plus the daily weighted average of the aggregate liquidation preference of each class of our preferred shares outstanding during such period, plus the daily weighted average of the aggregate principal amount of our consolidated indebtedness during such period, or, together, our Average Market Capitalization, up to $ 250,000 , plus (ii) 0.5 % of our Average Market Capitalization exceeding $ 250,000 . The average aggregate historical cost of our real estate investments includes our consolidated assets invested, directly or indirectly, in equity interests in or loans secured by real estate and personal property owned in connection with such real estate (including acquisition related costs and costs which may be allocated to intangibles or are unallocated), all before reserves for depreciation, amortization, impairment charges or bad debts or other similar non-cash reserves. F-25 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) • Incentive Management Fee . The incentive management fee which may be earned by RMR for an annual period is calculated as follows: ◦ An amount, subject to a cap, based on the value of our common shares outstanding, equal to 12.0 % of the product of: – if the relevant measurement period ends on or before December 31, 2020, $ 1,560,000 (our unadjusted equity market capitalization as calculated at our initial public offering, or our IPO) or, if the relevant measurement period ends thereafter, our equity market capitalization on the last trading day of the calendar year immediately prior to the relevant measurement period, and – the amount (expressed as a percentage) by which the total return per share, as defined in the business management agreement and further described below, of our common shareholders (i.e., share price appreciation plus dividends) exceeds the total shareholder return of the applicable market index, or the benchmark return per share, for the relevant measurement period. The MSCI U.S. REIT/Industrial REIT Index is the benchmark index for periods on and after August 1, 2021, and the SNL U.S. REIT Industrial Index is the benchmark index for periods prior to August 1, 2021. For purposes of the total return per share of our common shareholders, share price appreciation for a measurement period is determined by subtracting (i) if the measurement period ends on or before December 31, 2020, $ 24.00 per common share (our unadjusted initial share price, as defined under the business management agreement, based on our IPO price of our common shares) or, if the measurement period ends after December 31, 2020, the closing price of our common shares on Nasdaq on the last trading day of the year immediately before the first year of the applicable measurement period from (ii) the average closing price of our common shares on the 10 consecutive trading days having the highest average closing prices during the final 30 trading days in the last year of the measurement period. ◦ The calculation of the incentive management fee (including the determinations of our equity market capitalization, initial share price and the total return per share of our common shareholders) is subject to adjustments if we issue or repurchase our common shares, or our common shares are forfeited, during the measurement period. ◦ No incentive management fee is payable by us unless our total return per share during the measurement period is positive. ◦ The measurement periods are generally three year periods ending with the year for which the incentive management fee is being calculated, with a shorter period applicable in the case of the calculation of the incentive fee for 2020 (the period beginning on January 12, 2018, the first day our common shares began trading, and ending on December 31, 2020). ◦ If our total return per share exceeds 12.0 % per year in any measurement period, the benchmark return per share is adjusted to be the lesser of the total shareholder return of the applicable market index for such measurement period and 12.0 % per year, or the adjusted benchmark return per share. In instances where the adjusted benchmark return per share applies, the incentive management fee will be reduced if our total return per share is between 200 basis points and 500 basis points below the applicable market index in any year, by a low return factor, as defined in the business management agreement, and there will be no incentive management fee paid if, in these instances, our total return per share is more than 500 basis points below the applicable market index in any year, determined on a cumulative basis (i.e., between 200 basis points and 500 basis points per year multiplied by the number of years in the measurement period and below the applicable market index). ◦ The incentive management fee is subject to a cap. The cap is equal to the value of the number of our common shares which would, after issuance, represent 1.5 % of the number of our common shares then outstanding multiplied by the average closing price of our common shares during the 10 consecutive trading days having the highest average closing prices during the final 30 trading days of the relevant measurement period. F-26 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) ◦ Incentive management fees we paid to RMR for any period may be subject to “clawback” if our financial statements for that period are restated due to material non-compliance with any financial reporting requirements under the securities laws as a result of the bad faith, fraud, willful misconduct or gross negligence of RMR and the amount of the incentive management fee we paid was greater than the amount we would have paid based on the restated financial statements. Pursuant to our business management agreement with RMR, we recognized net business management fees of $ 23,701 , $ 10,562 and $ 12,983 for the years ended December 31, 2022, 2021 and 2020. The net business management fees we recognized for the year ended December 31, 2020 include $ 1,005 of management fees paid to RMR by our joint venture that was a consolidated subsidiary of ours until November 2020. See Notes 2, 3, 5, 6, 10 and 11 for further information regarding this joint venture. The net business management fees we recognized are included in general and administrative expenses in our consolidated statements of comprehensive income (loss) for the years ended December 31, 2022, 2021 and 2020. We did no t incur any incentive management fee pursuant to our business management agreement for the years ended December 31, 2022, 2021 and 2020. • Property Management and Construction Supervision Fees . The property management fees payable to RMR by us for each applicable period are equal to 3.0 % of gross collected rents and the construction supervision fees payable to RMR by us for each applicable period are equal to 5.0 % of construction costs. Pursuant to our property management agreement with RMR, we recognized aggregate property management and construction supervision fees of $ 11,916 , $ 6,606 and $ 7,472 for the years ended December 31, 2022, 2021 and 2020, respectively. For the years ended December 31, 2022, 2021 and 2020, $ 11,058 , $ 6,395 and $ 7,267 , respectively, of the total net property management and construction supervision fees were expensed to other operating expenses in our consolidated statements of comprehensive income (loss) and $ 858 , $ 211 and $ 205 , respectively, were capitalized as building improvements in our consolidated balance sheets. The amounts capitalized are being depreciated over the estimated useful lives of the related capital assets. • Expense Reimbursement . We are generally responsible for all of 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 and as otherwise agreed. Our property level operating expenses are generally incorporated into rents charged to our tenants, including certain payroll and related costs incurred by RMR. We reimbursed RMR $ 6,785 , $ 4,786 and $ 4,948 for these expenses and costs for the years ended December 31, 2022, 2021 and 2020, respectively. These amounts are included in other operating expenses and general and administrative expenses, as applicable, for these periods. • Term . Our management agreements with RMR have terms that end on December 31, 2042, and automatically extend on December 31st of each year for an additional year, so that the terms of our management agreements thereafter end on the 20th anniversary of the date of the extension. • Termination Rights . We have the right to terminate one or both of our management agreements with RMR: (i) at any time on 60 days’ written notice for convenience, (ii) immediately on written notice for cause, as defined therein, (iii) on written notice given within 60 days after the end of an applicable calendar year for a performance reason, as defined therein, and (iv) by written notice during the 12 months following a change of control of RMR, as defined therein. RMR has the right to terminate the management agreements for good reason, as defined therein. F-27 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) • Termination Fee . If we terminate one or both of our management agreements with RMR for convenience, or if RMR terminates one or both of our management agreements for good reason, we have agreed to pay RMR a termination fee in an amount equal to the sum of the present values of the monthly future fees, as defined therein, for the terminated management agreement(s) for the term that was remaining prior to such termination, which, depending on the time of termination would be between 19 and 20 years. If we terminate one or both of our management agreements with RMR for a performance reason, we have agreed to pay RMR the termination fee calculated as described above, but assuming a 10 year term was remaining prior to the termination. We are not required to pay any termination fee if we terminate our management agreements with RMR for cause or as a result of a change of control of RMR. • Transition Services . RMR has agreed to provide certain transition services to us for 120 days following an applicable termination by us or notice of termination by RMR, including cooperating with us and using commercially reasonable efforts to facilitate the orderly transfer of the management and real estate investment services provided under our business management agreement and to facilitate the orderly transfer of the management of the managed properties under our property management agreement, as applicable. • Vendors . Pursuant to our management agreements with RMR, RMR may from time to time negotiate on our behalf with certain third party vendors and suppliers for the procurement of goods and services to us. As part of this arrangement, we may enter agreements with RMR and other companies to which RMR or its subsidiaries provide management services for the purpose of obtaining more favorable terms from such vendors and suppliers. • Investment Opportunities . Under our business management agreement with RMR, we acknowledge that RMR may engage in other activities or businesses and act as the manager to any other person or entity (including other REITs) even though such person or entity has investment policies and objectives similar to ours and we are not entitled to preferential treatment in receiving information, recommendations and other services from RMR. Management Agreements Between Our Joint Ventures and RMR. We have two separate joint venture arrangements. As described further in Notes 2, 3, 5, 6, 10 and 11, one of these joint ventures is with two , third party institutional investors. This joint venture owns 18 properties, and we own a 22 % equity interest in this joint venture. We entered into this joint venture in February 2020. The other joint venture we entered into in connection with the Merger is with one , third party institutional investor. This joint venture owns 94 properties. We own a 61 % equity interest in this joint venture, and the other joint venture investor acquired a 39 % equity interest in the joint venture from us for $ 589,411 as of the completion of the transaction, in connection with the joint venture’s formation in February 2022. RMR provides management services to both of these joint ventures. Prior to November 2020, our 18 property joint venture was our consolidated subsidiary and, as such, we were obligated to pay fees under our management agreements with RMR regarding this joint venture; however, any fees paid by that joint venture were credited against the fees payable by us to RMR. Starting in November 2020, this joint venture is no longer our consolidated subsidiary and, as a result, we are no longer required to pay management fees to RMR with respect to our 18 property joint venture and fees this joint venture pays to RMR are no longer credited against amounts we owe to RMR. Our 94 property joint venture is our consolidated subsidiary and, as a result, we are obligated to pay management fees to RMR under our management agreements with RMR for the services it provides regarding that joint venture; however that joint venture pays management fees directly to RMR, and any such fees paid by that joint venture are credited against the fees payable by us to RMR. Note 10. 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 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 Jordan, our other Managing Trustee, is executive vice president, chief financial officer and treasurer of RMR Inc., an officer and employee of RMR and an officer of ABP Trust. John 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. F-28 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) Some of our Independent Trustees also serve as independent trustees or independent directors of other public companies to which RMR or its subsidiaries provide management services. Adam Portnoy serves as chair of the boards and as a managing director or managing trustee of these public companies. Other officers of RMR, including Messrs. Jordan and Murray and certain of our officers, serve as managing trustees, managing directors or officers of certain of these companies. Our Manager, RMR . We have two agreements with RMR to provide management services to us. See Note 9 for further information regarding our management agreements with RMR. Our Joint Ventures. We have two separate joint venture arrangements. See Notes 2, 3, 5, 6, 9 and 11 for further information regarding our joint ventures, including properties we have sold to, and equity interests we have sold in, these joint ventures. As of December 31, 2022 and December 31, 2021, we owed $ 616 and $ 225 , 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 consolidated balance sheet. We paid the amounts we owed as of December 31, 2022 in January 2023 and the amounts we owed as of December 31, 2021 in January 2022. As of December 31, 2020, the unconsolidated joint venture owed to us $ 2,665 for post-closing adjustments relating to our sale of some of our equity interests to a second third party institutional investor in November 2020. That joint venture paid these amounts due to us during the year ended December 31, 2022. This amount is presented as due from related persons in our consolidated balance sheet. RMR provides management services to each of our joint ventures. See Note 9 for further information regarding RMR’s management agreements with our joint ventures. Share Awards to RMR Employees . As described in Note 7, we award shares to our officers and other employees of RMR annually. Generally, one fifth of these awards vest on the grant date and one fifth vests on each of the next four anniversaries of the grant dates. In certain instances, we may accelerate the vesting of an award, such as in connection with the award holder’s retirement as an officer of us or an officer or employee of RMR. These awards to RMR employees are in addition to the share awards to our Managing Trustees, as Trustee compensation, and the fees we paid to RMR. See Note 7 for information regarding our share awards and activity as well as certain share purchases we made in connection with share award recipients satisfying tax withholding obligations on the vesting of share awards. Affiliates Insurance Company . Until its dissolution on February 13, 2020, we, ABP Trust and five other companies to which RMR provides management services owned Affiliates Insurance Company, or AIC, in equal amounts. In connection with AIC’s dissolution, we and each other AIC shareholder received a liquidating distribution of approximately $ 287 in June 2020 and a final liquidating distribution of $ 12 in December 2021. TravelCenters of America Inc. In May 2021, we acquired a property located in the Dallas, Texas market from TravelCenters of America Inc., or TA, for a purchase price of $ 2,319 , including acquisition related costs of $ 119 . RMR provides management services to TA and Mr. Portnoy serves as the chair of the board of directors and as a managing director of TA. See Note 3 for further information regarding this acquisition. Note 11. 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 a part of 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. F-29 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (dollars in thousands, except per share data) Cash Flow Hedges of Interest Rate Risk As required by ASC 815, Derivatives and Hedging , we record all derivatives on the balance sheet 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 as of December 31, 2022: Interest Rate Derivative Balance Sheet Line Item Underlying Instrument Number of Instruments Strike Rate Notional Amount Fair Value at December 31, 2022 Interest Rate Cap Other assets Floating Rate Loan (1) 1 3.40 % $ 1,400,000 $ 23,337 Interest Rate Cap Other assets ILPT Floating Rate Loan 2 2.25 % $ 1,235,000 $ 49,796 (1) The Floating Rate Loan was entered into by our consolidated joint venture. 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 accumulated other comprehensive income (loss) 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 accumulated other comprehensive income (loss) 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 Bridge Loan, 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 (loss) as a reduction of loss on early extinguishment of debt. Year Ended December 31, 2022 Amount of gain recognized in cumulative other comprehensive income (loss) $ 34,825 Amount reclassified from cumulative other comprehensive income (loss) into interest expense 2,330 Amount reclassified from cumulative other comprehensive income (loss) into loss on early extinguishment of debt ( 6,961 ) Unrealized gain on derivative instrument recognized in cumulative other comprehensive income $ 30,194 We expect to reclassify approximately $ 25,810 from accumulated other comprehensive income to interest expense during the next twelve months, of which $ 6,845 would be attributable to noncontrolling interest. F-30 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION December 31, 2022 (dollars in thousands) Initial Cost to Gross Amount Carried at Company Costs Close of Period (4) Buildings Capitalized Buildings Original and Subsequent to Impairment/ and Accumulated Date Construction Property Location State Property Type Encumbrances (1) Land Equipment Acquisition Writedowns (2) Land Equipment Total (2) Depreciation (3) Acquired Date 1 510 Production Avenue Madison AL Mainland Properties (B) $ 1,200 $ 9,967 $ — $ ( 2,118 ) $ 973 $ 8,076 $ 9,049 $ ( 136 ) 2/25/2022 2004 2 6735 Trippel Road Mobile AL Mainland Properties (E) 1,500 44,354 — — 1,500 44,354 45,854 ( 1,077 ) 2/25/2022 2017 3 11224 Will Walker Road Vance AL Mainland Properties (B) 3,901 40,857 550 — 3,901 41,407 45,308 ( 1,800 ) 2/25/2022 2021 4 3200 Rodeo Court Bessemer AL Mainland Properties (C) 3,201 23,462 — — 3,201 23,462 26,663 ( 570 ) 2/25/2022 2021 5 4501 Industrial Drive Fort Smith AR Mainland Properties (B) 900 3,485 — — 901 3,484 4,385 ( 690 ) 1/29/2015 2013 6 9860 West Buckeye Road Tolleson AZ Mainland Properties (B) 4,801 26,716 1 — 4,802 26,716 31,518 ( 1,132 ) 2/25/2022 2002 7 3870 Ronald Reagan Boulevard Johnstown CO Mainland Properties (B) 2,780 9,722 1 — 2,779 9,724 12,503 ( 1,207 ) 4/9/2019 2007 8 125 North Troy Hill Road Colorado Springs CO Mainland Properties (B) 5,402 32,981 — ( 10,790 ) 3,883 23,710 27,593 ( 342 ) 2/25/2022 2016 9 14257 E. Easter Avenue Centennial CO Mainland Properties (B) 1,801 10,563 — ( 2,607 ) 1,421 8,336 9,757 ( 169 ) 2/25/2022 2003 10 955 Aeroplaza Drive Colorado Springs CO Mainland Properties (B) 800 7,412 39 — 800 7,451 8,251 ( 1,481 ) 1/29/2015 2012 11/12 13400 East 39th Avenue and 3800 Wheeling Street Denver CO Mainland Properties (B) 3,100 12,955 5 — 3,100 12,960 16,060 ( 2,568 ) 1/29/2015 1973 13 150 Greenhorn Drive Pueblo CO Mainland Properties (B) 200 4,177 — — 200 4,177 4,377 ( 827 ) 1/29/2015 2013 14 2 Tower Drive Wallingford CT Mainland Properties (B) 1,471 2,165 888 — 1,471 3,053 4,524 ( 1,129 ) 10/24/2006 1978 15 50 Hollow Tree Lane Newington CT Mainland Properties (C) 600 4,793 — — 600 4,793 5,393 ( 136 ) 2/25/2022 2000 16 235 Great Pond Road Windsor CT Mainland Properties (B) 2,400 9,469 — — 2,400 9,469 11,869 ( 2,467 ) 7/20/2012 2004 17 2100 NW 82nd Avenue Miami FL Mainland Properties (B) 144 1,297 454 — 144 1,751 1,895 ( 939 ) 3/19/1998 1987 18 10450 Doral Boulevard Doral FL Mainland Properties (B) 15,225 28,102 — — 15,225 28,102 43,327 ( 4,216 ) 6/27/2018 1996 19 13509 Waterworks Street Jacksonville FL Mainland Properties (B) 3,701 37,720 ( 1 ) ( 9,345 ) 2,866 29,209 32,075 ( 421 ) 2/25/2022 2014 20 27200 SW 127th Avenue Homestead FL Mainland Properties (B) 24,808 22,762 — ( 8,376 ) 20,440 18,754 39,194 ( 271 ) 2/25/2022 2017 21 3155 Grissom Parkway Cocoa FL Mainland Properties (B) 3,101 20,542 27 ( 4,620 ) 2,494 16,556 19,050 ( 279 ) 2/25/2022 2006 22 950 Bennett Road Orlando FL Mainland Properties (B) 2,701 12,334 215 ( 737 ) 2,568 11,945 14,513 ( 200 ) 2/25/2022 1997 23 3736 Salisbury Road Jacksonville FL Mainland Properties (B) 1,600 12,071 158 ( 2,998 ) 1,250 9,581 10,831 ( 240 ) 2/25/2022 1998 24 1341 N. Clyde Morris Boulevard Daytona Beach FL Mainland Properties (B) 3,001 38,858 486 ( 1,762 ) 2,875 37,708 40,583 ( 537 ) 2/25/2022 2017 25 5000 North Ridge Trail Davenport FL Mainland Properties (C) 4,001 52,290 — — 4,001 52,290 56,291 ( 1,270 ) 2/25/2022 2016 26 14001 Jetport Loop Ft. Myers FL Mainland Properties (C) 5,902 25,616 — — 5,902 25,616 31,518 ( 622 ) 2/25/2022 2016 27 8411 Florida Mining Boulevard Tampa FL Mainland Properties (C) 7,602 29,985 19 — 7,602 30,004 37,606 ( 851 ) 2/25/2022 2003 28 5101 West Waters Avenue Tampa FL Mainland Properties (C) 3,101 12,134 157 — 3,101 12,291 15,392 ( 413 ) 2/25/2022 1997 29 3404 Cragmont Drive Tampa FL Mainland Properties (C) 1,600 6,557 160 — 1,600 6,717 8,317 ( 223 ) 2/25/2022 1989 30 7569 Golf Course Boulevard Punta Gorda FL Mainland Properties (C) — 6,042 — — — 6,042 6,042 ( 147 ) 2/25/2022 2007 S-1 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued) December 31, 2022 (dollars in thousands) Initial Cost to Gross Amount Carried at Company Costs Close of Period (4) Buildings Capitalized Buildings Original and Subsequent to Impairment/ and Accumulated Date Construction Property Location State Property Type Encumbrances (1) Land Equipment Acquisition Writedowns (2) Land Equipment Total (2) Depreciation (3) Acquired Date 31 1900 Interstate Boulevard Lakeland FL Mainland Properties (C) 500 3,405 — — 500 3,405 3,905 ( 96 ) 2/25/2022 1993 32 2902 Gun Club Road Augusta GA Mainland Properties (B) 1,200 9,861 — ( 6,995 ) 441 3,625 4,066 ( 53 ) 2/25/2022 2004 33 1078 Bertram Road Augusta GA Mainland Properties (B) 900 1,867 64 ( 1,374 ) 453 1,004 1,457 ( 24 ) 2/25/2022 1993 34 590 Northport Parkway Savannah GA Mainland Properties (C) 16,905 66,945 — — 16,905 66,945 83,850 ( 1,626 ) 2/25/2022 2017 35 3150 Highway 42 Locust Grove GA Mainland Properties (E) 9,803 109,420 41 — 9,803 109,461 119,264 ( 2,657 ) 2/25/2022 2020 36 650 Braselton Parkway Braselton GA Mainland Properties (E) 6,902 82,238 — — 6,902 82,238 89,140 ( 1,997 ) 2/25/2022 2018 37 700 Hudson Road Griffin GA Mainland Properties (C) 900 20,442 45 — 900 20,487 21,387 ( 695 ) 2/25/2022 2002 38 505 Morgan Lakes Industrial Blvd. Savannah GA Mainland Properties (C) 8,203 31,714 — — 8,203 31,714 39,917 ( 770 ) 2/25/2022 2018 39 2002 International Boulevard Augusta GA Mainland Properties 3,818 30,780 2 — 3,819 30,781 34,600 ( 408 ) 7/14/2022 2022 40 2815 Kaihikapu Street Honolulu HI Hawaii Properties (A) 1,818 — 6 — 1,818 6 1,824 ( 2 ) 12/5/2003 — 41 609 Ahua Street Honolulu HI Hawaii Properties (A) 616 — — — 616 — 616 — 12/5/2003 — 42 2849 Kaihikapu Street Honolulu HI Hawaii Properties (A) 860 — — — 860 — 860 — 12/5/2003 — 43 709 Ahua Street Honolulu HI Hawaii Properties (A) 1,801 — — — 1,801 — 1,801 — 12/5/2003 — 44 2839 Kilihau Street Honolulu HI Hawaii Properties (A) 627 — — — 627 — 627 — 12/5/2003 — 45 2906 Kaihikapu Street Honolulu HI Hawaii Properties (A) 1,814 2 — — 1,814 2 1,816 ( 1 ) 12/5/2003 — 46 733 Mapunapuna Street Honolulu HI Hawaii Properties (A) 3,403 — — — 3,403 — 3,403 — 12/5/2003 — 47 2864 Awaawaloa Street Honolulu HI Hawaii Properties (A) 1,836 — 7 — 1,836 7 1,843 ( 6 ) 12/5/2003 — 48 2850 Awaawaloa Street Honolulu HI Hawaii Properties (A) 287 172 ( 1 ) — 286 172 458 ( 82 ) 12/5/2003 — 49 2806 Kaihikapu Street Honolulu HI Hawaii Properties (A) 1,801 — — — 1,801 — 1,801 — 12/5/2003 — 50 2838 Kilihau Street Honolulu HI Hawaii Properties (A) 4,262 — — — 4,262 — 4,262 — 12/5/2003 — 51 852 Mapunapuna Street Honolulu HI Hawaii Properties (A) 1,801 — — — 1,801 — 1,801 — 12/5/2003 — 52 812 Mapunapuna Street Honolulu HI Hawaii Properties (A) 1,960 25 628 — 2,613 — 2,613 — 12/5/2003 — 53 2969 Mapunapuna Street Honolulu HI Hawaii Properties (A) 4,038 15 — — 4,038 15 4,053 ( 10 ) 12/5/2003 — 54 855 Ahua Street Honolulu HI Hawaii Properties (A) 1,834 — — — 1,834 — 1,834 — 12/5/2003 — 55 2855 Kaihikapu Street Honolulu HI Hawaii Properties (A) 1,807 — — — 1,807 — 1,807 — 12/5/2003 — 56 865 Ahua Street Honolulu HI Hawaii Properties (A) 1,846 — — — 1,846 — 1,846 — 12/5/2003 — 57 719 Ahua Street Honolulu HI Hawaii Properties (A) 1,960 — — — 1,960 — 1,960 — 12/5/2003 — 58 759 Puuloa Road Honolulu HI Hawaii Properties (A) 1,766 3 ( 3 ) — 1,766 — 1,766 — 12/5/2003 — 59 770 Mapunapuna Street Honolulu HI Hawaii Properties (A) 1,801 — — — 1,801 — 1,801 — 12/5/2003 — S-2 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued) December 31, 2022 (dollars in thousands) Initial Cost to Gross Amount Carried at Company Costs Close of Period (4) Buildings Capitalized Buildings Original and Subsequent to Impairment/ and Accumulated Date Construction Property Location State Property Type Encumbrances (1) Land Equipment Acquisition Writedowns (2) Land Equipment Total (2) Depreciation (3) Acquired Date 60 2915 Kaihikapu Street Honolulu HI Hawaii Properties (A) 2,579 — — — 2,579 — 2,579 — 12/5/2003 — 61 704 Mapunapuna Street Honolulu HI Hawaii Properties (A) 2,390 685 — — 2,390 685 3,075 ( 326 ) 12/5/2003 — 62 822 Mapunapuna Street Honolulu HI Hawaii Properties (A) 1,795 15 ( 15 ) — 1,795 — 1,795 — 12/5/2003 — 63 842 Mapunapuna Street Honolulu HI Hawaii Properties (A) 1,795 14 ( 14 ) — 1,795 — 1,795 — 12/5/2003 — 64 2839 Mokumoa Street Honolulu HI Hawaii Properties (A) 1,942 — — — 1,942 — 1,942 — 12/5/2003 — 65 2861 Mokumoa Street Honolulu HI Hawaii Properties (A) 3,867 — — — 3,867 — 3,867 — 12/5/2003 — 66 619 Mapunapuna Street Honolulu HI Hawaii Properties (A) 1,401 2 12 — 1,401 14 1,415 ( 3 ) 12/5/2003 — 67 2847 Awaawaloa Street Honolulu HI Hawaii Properties (A) 582 303 184 — 582 487 1,069 ( 167 ) 12/5/2003 — 68 2928 Kaihikapu Street - A Honolulu HI Hawaii Properties (A) 1,801 — — — 1,801 — 1,801 — 12/5/2003 — 69 2928 Kaihikapu Street - B Honolulu HI Hawaii Properties (A) 1,948 — — — 1,948 — 1,948 — 12/5/2003 — 70 850 Ahua Street Honolulu HI Hawaii Properties (A) 2,682 2 ( 2 ) — 2,682 — 2,682 — 12/5/2003 — 71 659 Ahua Street Honolulu HI Hawaii Properties (A) 860 20 ( 20 ) — 860 — 860 — 12/5/2003 — 72 2831 Awaawaloa Street Honolulu HI Hawaii Properties (A) 860 — — — 860 — 860 — 12/5/2003 — 73 2760 Kam Highway Honolulu HI Hawaii Properties (A) 703 — 191 — 703 191 894 ( 29 ) 12/5/2003 — 74 2965 Mokumoa Street Honolulu HI Hawaii Properties (A) 2,140 — — — 2,140 — 2,140 — 12/5/2003 — 75 2814 Kilihau Street Honolulu HI Hawaii Properties (A) 1,925 — — — 1,925 — 1,925 — 12/5/2003 — 76 2804 Kilihau Street Honolulu HI Hawaii Properties (A) 1,775 2 — — 1,775 2 1,777 — 12/5/2003 — 77 2833 Kilihau Street Honolulu HI Hawaii Properties (A) 601 — — — 601 — 601 — 12/5/2003 — 78 692 Mapunapuna Street Honolulu HI Hawaii Properties (A) 1,796 2 — — 1,796 2 1,798 — 12/5/2003 — 79 669 Ahua Street Honolulu HI Hawaii Properties (A) 1,801 14 62 — 1,801 76 1,877 ( 33 ) 12/5/2003 — 80 761 Ahua Street Honolulu HI Hawaii Properties (A) 3,757 2 339 — 3,757 341 4,098 ( 35 ) 12/5/2003 — 81 702 Ahua Street Honolulu HI Hawaii Properties (A) 1,784 3 ( 4 ) — 1,783 — 1,783 — 12/5/2003 — 82 645 Ahua Street Honolulu HI Hawaii Properties (A) 882 — — — 882 — 882 — 12/5/2003 — 83 675 Mapunapuna Street Honolulu HI Hawaii Properties (A) 1,081 — — — 1,081 — 1,081 — 12/5/2003 — 84 2858 Kaihikapu Street Honolulu HI Hawaii Properties (A) 1,801 — — — 1,801 — 1,801 — 12/5/2003 — 85 2857 Awaawaloa Street Honolulu HI Hawaii Properties (A) 983 — — — 983 — 983 — 12/5/2003 — 86 2812 Awaawaloa Street Honolulu HI Hawaii Properties (A) 1,801 3 ( 2 ) — 1,801 1 1,802 — 12/5/2003 — 87 2809 Kaihikapu Street Honolulu HI Hawaii Properties (A) 1,837 — — — 1,837 — 1,837 — 12/5/2003 — 88 803 Ahua Street Honolulu HI Hawaii Properties (A) 3,804 — — — 3,804 — 3,804 — 12/5/2003 — S-3 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued) December 31, 2022 (dollars in thousands) Initial Cost to Gross Amount Carried at Company Costs Close of Period (4) Buildings Capitalized Buildings Original and Subsequent to Impairment/ and Accumulated Date Construction Property Location State Property Type Encumbrances (1) Land Equipment Acquisition Writedowns (2) Land Equipment Total (2) Depreciation (3) Acquired Date 89 2889 Mokumoa Street Honolulu HI Hawaii Properties (A) 1,783 5 — — 1,783 5 1,788 — 12/5/2003 — 90 819 Ahua Street Honolulu HI Hawaii Properties (A) 4,821 583 9 — 4,821 592 5,413 ( 287 ) 12/5/2003 — 91 830 Mapunapuna Street Honolulu HI Hawaii Properties (A) 1,801 25 ( 25 ) — 1,801 — 1,801 — 12/5/2003 — 92 2831 Kaihikapu Street Honolulu HI Hawaii Properties (A) 1,272 529 55 — 1,272 584 1,856 ( 277 ) 12/5/2003 — 93 2846-A Awaawaloa Street Honolulu HI Hawaii Properties (A) 2,181 954 — — 2,181 954 3,135 ( 454 ) 12/5/2003 — 94 2816 Awaawaloa Street Honolulu HI Hawaii Properties (A) 1,009 27 — — 1,009 27 1,036 ( 13 ) 12/5/2003 — 95 673 Ahua Street Honolulu HI Hawaii Properties (A) 1,801 — — — 1,801 — 1,801 — 12/5/2003 — 96 697 Ahua Street Honolulu HI Hawaii Properties (A) 994 811 ( 4 ) — 994 807 1,801 ( 384 ) 12/5/2003 — 97 808 Ahua Street Honolulu HI Hawaii Properties (A) 3,279 — ( 1 ) — 3,278 — 3,278 ( 7 ) 12/5/2003 — 98 659 Puuloa Road Honolulu HI Hawaii Properties (A) 1,807 — — — 1,807 — 1,807 — 12/5/2003 — 99 666 Mapunapuna Street Honolulu HI Hawaii Properties (A) 860 2 ( 2 ) — 860 — 860 — 12/5/2003 — 100 679 Puuloa Road Honolulu HI Hawaii Properties (A) 1,807 3 ( 3 ) — 1,807 — 1,807 — 12/5/2003 — 101 673 Mapunapuna Street Honolulu HI Hawaii Properties (A) 1,801 20 ( 20 ) — 1,801 — 1,801 — 12/5/2003 — 102 2827 Kaihikapu Street Honolulu HI Hawaii Properties (A) 1,801 — — — 1,801 — 1,801 — 12/5/2003 — 103 2826 Kaihikapu Street Honolulu HI Hawaii Properties (A) 3,921 — — — 3,921 — 3,921 — 12/5/2003 — 104 685 Ahua Street Honolulu HI Hawaii Properties (A) 1,801 — — — 1,801 — 1,801 — 12/5/2003 — 105 2844 Kaihikapu Street Honolulu HI Hawaii Properties (A) 1,960 14 ( 14 ) — 1,960 — 1,960 — 12/5/2003 — 106 789 Mapunapuna Street Honolulu HI Hawaii Properties (A) 2,608 3 ( 3 ) — 2,608 — 2,608 — 12/5/2003 — 107 2808 Kam Highway Honolulu HI Hawaii Properties (A) 310 — — — 310 — 310 — 12/5/2003 — 108 2815 Kilihau Street Honolulu HI Hawaii Properties (A) 287 — — — 287 — 287 — 12/5/2003 — 109 2821 Kilihau Street Honolulu HI Hawaii Properties (A) 287 — — — 287 — 287 — 12/5/2003 — 110 2829 Kilihau Street Honolulu HI Hawaii Properties (A) 287 — — — 287 — 287 — 12/5/2003 — 111 2819 Mokumoa Street - A Honolulu HI Hawaii Properties (A) 1,821 — — — 1,821 — 1,821 — 12/5/2003 — 112 2819 Mokumoa Street - B Honolulu HI Hawaii Properties (A) 1,816 — — — 1,816 — 1,816 — 12/5/2003 — 113 2879 Mokumoa Street Honolulu HI Hawaii Properties (A) 1,789 — — — 1,789 — 1,789 — 12/5/2003 — 114 2927 Mokumoa Street Honolulu HI Hawaii Properties (A) 1,778 — — — 1,778 — 1,778 — 12/5/2003 — 115 2833 Paa Street #2 Honolulu HI Hawaii Properties (A) 1,675 — — — 1,675 — 1,675 — 12/5/2003 — 116 855 Mapunapuna Street Honolulu HI Hawaii Properties (A) 3,265 — — — 3,265 — 3,265 — 12/5/2003 — 117 2829 Awaawaloa Street Honolulu HI Hawaii Properties (A) 1,720 2 ( 2 ) — 1,720 — 1,720 — 12/5/2003 — S-4 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued) December 31, 2022 (dollars in thousands) Initial Cost to Gross Amount Carried at Company Costs Close of Period (4) Buildings Capitalized Buildings Original and Subsequent to Impairment/ and Accumulated Date Construction Property Location State Property Type Encumbrances (1) Land Equipment Acquisition Writedowns (2) Land Equipment Total (2) Depreciation (3) Acquired Date 118 766 Mapunapuna Street Honolulu HI Hawaii Properties (A) 1,801 — — — 1,801 — 1,801 — 12/5/2003 — 119 2908 Kaihikapu Street Honolulu HI Hawaii Properties (A) 1,798 23 — — 1,798 23 1,821 ( 3 ) 12/5/2003 — 120 729 Ahua Street Honolulu HI Hawaii Properties (A) 1,801 — — — 1,801 — 1,801 — 12/5/2003 — 121 739 Ahua Street Honolulu HI Hawaii Properties (A) 1,801 — — — 1,801 — 1,801 — 12/5/2003 — 122 2868 Kaihikapu Street Honolulu HI Hawaii Properties (A) 1,801 — — — 1,801 — 1,801 — 12/5/2003 — 123 660 Ahua Street Honolulu HI Hawaii Properties (A) 1,783 4 ( 4 ) — 1,783 — 1,783 — 12/5/2003 — 124 2869 Mokumoa Street Honolulu HI Hawaii Properties (A) 1,794 — — — 1,794 — 1,794 — 12/5/2003 — 125 2836 Awaawaloa Street Honolulu HI Hawaii Properties (A) 1,353 — — — 1,353 — 1,353 — 12/5/2003 — 126 113 Puuhale Road Honolulu HI Hawaii Properties (A) 3,729 — — — 3,729 — 3,729 — 12/5/2003 — 127 2140 Kaliawa Street Honolulu HI Hawaii Properties (A) 931 — — — 931 — 931 — 12/5/2003 — 128 165 Sand Island Access Road Honolulu HI Hawaii Properties (A) 758 — — — 758 — 758 — 12/5/2003 — 129 2106 Kaliawa Street Honolulu HI Hawaii Properties (A) 1,568 — 228 — 1,568 228 1,796 ( 124 ) 12/5/2003 — 130 140 Puuhale Road Honolulu HI Hawaii Properties (A) 1,100 — 41 — 1,100 41 1,141 ( 9 ) 12/5/2003 — 131 2020 Auiki Street Honolulu HI Hawaii Properties (A) 2,385 — — — 2,385 — 2,385 — 12/5/2003 — 132 2103 Kaliawa Street Honolulu HI Hawaii Properties (A) 3,212 — — — 3,212 — 3,212 — 12/5/2003 — 133 1926 Auiki Street Honolulu HI Hawaii Properties (A) 2,872 — 1,722 — 2,872 1,722 4,594 ( 709 ) 12/5/2003 1959 134 1931 Kahai Street Honolulu HI Hawaii Properties (A) 3,779 — — — 3,779 — 3,779 — 12/5/2003 — 135 215 Puuhale Road Honolulu HI Hawaii Properties (A) 2,117 — — — 2,117 — 2,117 — 12/5/2003 — 136 207 Puuhale Road Honolulu HI Hawaii Properties (A) 2,024 — — — 2,024 — 2,024 — 12/5/2003 — 137 125 Puuhale Road Honolulu HI Hawaii Properties (A) 1,630 — — — 1,630 — 1,630 — 12/5/2003 — 138 125B Puuhale Road Honolulu HI Hawaii Properties (A) 2,815 — — — 2,815 — 2,815 — 12/5/2003 — 139 2001 Kahai Street Honolulu HI Hawaii Properties (A) 1,091 — — — 1,091 — 1,091 — 12/5/2003 — 140 2110 Auiki Street Honolulu HI Hawaii Properties (A) 837 — — — 837 — 837 — 12/5/2003 — 141 142 Mokauea Street Honolulu HI Hawaii Properties (A) 2,182 — 1,576 — 2,182 1,576 3,758 ( 541 ) 12/5/2003 1972 142 2139 Kaliawa Street Honolulu HI Hawaii Properties (A) 885 — — — 885 — 885 — 12/5/2003 — 143 2122 Kaliawa Street Honolulu HI Hawaii Properties (A) 1,365 — — — 1,365 — 1,365 — 12/5/2003 — 144 148 Mokauea Street Honolulu HI Hawaii Properties (A) 3,476 — — — 3,476 — 3,476 — 12/5/2003 — 145 151 Puuhale Road Honolulu HI Hawaii Properties (A) 1,956 — 48 — 1,956 48 2,004 ( 2 ) 12/5/2003 — 146 2127 Auiki Street Honolulu HI Hawaii Properties (A) 2,906 — 67 — 2,906 67 2,973 ( 38 ) 12/5/2003 — S-5 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued) December 31, 2022 (dollars in thousands) Initial Cost to Gross Amount Carried at Company Costs Close of Period (4) Buildings Capitalized Buildings Original and Subsequent to Impairment/ and Accumulated Date Construction Property Location State Property Type Encumbrances (1) Land Equipment Acquisition Writedowns (2) Land Equipment Total (2) Depreciation (3) Acquired Date 147 2144 Auiki Street Honolulu HI Hawaii Properties (A) 2,640 — 7,594 — 2,640 7,594 10,234 ( 2,925 ) 12/5/2003 1953 148 179 Sand Island Access Road Honolulu HI Hawaii Properties (A) 2,480 — — — 2,480 — 2,480 — 12/5/2003 — 149 106 Puuhale Road Honolulu HI Hawaii Properties (A) 1,113 — 274 — 1,113 274 1,387 ( 112 ) 12/5/2003 1966 150 120 Mokauea Street Honolulu HI Hawaii Properties (A) 1,953 — 1,091 — 1,953 1,091 3,044 ( 228 ) 12/5/2003 1970 151 120B Mokauea Street Honolulu HI Hawaii Properties (A) 1,953 — — — 1,953 — 1,953 — 12/5/2003 1970 152 231 Sand Island Access Road Honolulu HI Hawaii Properties (A) 752 — — — 752 — 752 — 12/5/2003 — 153 231B Sand Island Access Road Honolulu HI Hawaii Properties (A) 1,539 — — — 1,539 — 1,539 — 12/5/2003 — 154 220 Puuhale Road Honolulu HI Hawaii Properties (A) 2,619 — — — 2,619 — 2,619 — 12/5/2003 — 155 150 Puuhale Road Honolulu HI Hawaii Properties (A) 4,887 — — — 4,887 — 4,887 — 12/5/2003 — 156 197 Sand Island Access Road Honolulu HI Hawaii Properties (A) 1,238 — — — 1,238 — 1,238 — 12/5/2003 — 157 2019 Kahai Street Honolulu HI Hawaii Properties (A) 1,377 — — — 1,377 — 1,377 — 12/5/2003 — 158 2344 Pahounui Drive Honolulu HI Hawaii Properties (A) 6,709 — — — 6,709 — 6,709 — 12/5/2003 — 159 238 Sand Island Access Road Honolulu HI Hawaii Properties (A) 2,273 — — — 2,273 — 2,273 — 12/5/2003 — 160 2308 Pahounui Drive Honolulu HI Hawaii Properties (A) 3,314 — — — 3,314 — 3,314 — 12/5/2003 — 161 2135 Auiki Street Honolulu HI Hawaii Properties (A) 825 — — — 825 — 825 — 12/5/2003 — 162 218 Mohonua Place Honolulu HI Hawaii Properties (A) 1,741 — — — 1,741 — 1,741 — 12/5/2003 — 163 180 Sand Island Access Road Honolulu HI Hawaii Properties (A) 1,655 — — — 1,655 — 1,655 — 12/5/2003 — 164 2250 Pahounui Drive Honolulu HI Hawaii Properties (A) 3,862 — — — 3,862 — 3,862 — 12/5/2003 — 165 158 Sand Island Access Road Honolulu HI Hawaii Properties (A) 2,488 — — — 2,488 — 2,488 — 12/5/2003 — 166 2264 Pahounui Drive Honolulu HI Hawaii Properties (A) 1,632 — — — 1,632 — 1,632 — 12/5/2003 — 167 2276 Pahounui Drive Honolulu HI Hawaii Properties (A) 1,619 — — — 1,619 — 1,619 — 12/5/2003 — 168 204 Sand Island Access Road Honolulu HI Hawaii Properties (A) 1,689 — — — 1,689 — 1,689 — 12/5/2003 — 169 228 Mohonua Place Honolulu HI Hawaii Properties (A) 1,865 — — — 1,865 — 1,865 — 12/5/2003 — 170 212 Mohonua Place Honolulu HI Hawaii Properties (A) 1,067 — — — 1,067 — 1,067 — 12/5/2003 — 171 214 Sand Island Access Road Honolulu HI Hawaii Properties (A) 1,864 — 593 — 1,864 593 2,457 ( 161 ) 12/5/2003 1981 172 2879 Paa Street Honolulu HI Hawaii Properties (A) 1,691 — 44 — 1,691 44 1,735 ( 16 ) 12/5/2003 — 173 2833 Paa Street Honolulu HI Hawaii Properties (A) 1,701 — — — 1,701 — 1,701 — 12/5/2003 — 174 1055 Ahua Street Honolulu HI Hawaii Properties (A) 1,216 — — — 1,216 — 1,216 — 12/5/2003 — 175 2875 Paa Street Honolulu HI Hawaii Properties (A) 1,330 — — — 1,330 — 1,330 — 12/5/2003 — S-6 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued) December 31, 2022 (dollars in thousands) Initial Cost to Gross Amount Carried at Company Costs Close of Period (4) Buildings Capitalized Buildings Original and Subsequent to Impairment/ and Accumulated Date Construction Property Location State Property Type Encumbrances (1) Land Equipment Acquisition Writedowns (2) Land Equipment Total (2) Depreciation (3) Acquired Date 176 1000 Mapunapuna Street Honolulu HI Hawaii Properties (A) 2,252 — — — 2,252 — 2,252 — 12/5/2003 — 177 2850 Paa Street Honolulu HI Hawaii Properties (A) 22,827 — — — 22,827 — 22,827 — 12/5/2003 — 178 2828 Paa Street Honolulu HI Hawaii Properties (A) 12,448 — — — 12,448 — 12,448 — 12/5/2003 — 179 1045 Mapunapuna Street Honolulu HI Hawaii Properties (A) 819 — — — 819 — 819 — 12/5/2003 — 180 1122 Mapunapuna Street Honolulu HI Hawaii Properties (A) 5,781 — — — 5,781 — 5,781 — 12/5/2003 — 181 2810 Paa Street Honolulu HI Hawaii Properties (A) 3,340 — — — 3,340 — 3,340 — 12/5/2003 — 182 2886 Paa Street Honolulu HI Hawaii Properties (A) 2,205 — — — 2,205 — 2,205 — 12/5/2003 — 183 2810 Pukoloa Street Honolulu HI Hawaii Properties (A) 27,699 — — — 27,699 — 27,699 — 12/5/2003 — 184 1052 Ahua Street Honolulu HI Hawaii Properties (A) 1,703 — 240 — 1,703 240 1,943 ( 104 ) 12/5/2003 — 185 1024 Mapunapuna Street Honolulu HI Hawaii Properties (A) 1,385 — — — 1,385 — 1,385 — 12/5/2003 — 186 1030 Mapunapuna Street Honolulu HI Hawaii Properties (A) 5,655 — — — 5,655 — 5,655 — 12/5/2003 — 187 1001 Ahua Street Honolulu HI Hawaii Properties (A) 15,155 3,312 92 — 15,155 3,404 18,559 ( 1,609 ) 12/5/2003 — 188 944 Ahua Street Honolulu HI Hawaii Properties (A) 1,219 — — — 1,219 — 1,219 — 12/5/2003 — 189 918 Ahua Street Honolulu HI Hawaii Properties (A) 3,820 — — — 3,820 — 3,820 — 12/5/2003 — 190 2864 Mokumoa Street Honolulu HI Hawaii Properties (A) 2,092 — — — 2,092 — 2,092 — 12/5/2003 — 191 1050 Kikowaena Place Honolulu HI Hawaii Properties (A) 1,404 873 — — 1,404 873 2,277 ( 416 ) 12/5/2003 — 192 949 Mapunapuna Street Honolulu HI Hawaii Properties (A) 11,568 — — — 11,568 — 11,568 — 12/5/2003 — 193 2855 Pukoloa Street Honolulu HI Hawaii Properties (A) 1,934 — — — 1,934 — 1,934 — 12/5/2003 — 194 2865 Pukoloa Street Honolulu HI Hawaii Properties (A) 1,934 — — — 1,934 — 1,934 — 12/5/2003 — 195 2850 Mokumoa Street Honolulu HI Hawaii Properties (A) 2,143 — — — 2,143 — 2,143 — 12/5/2003 — 196 905 Ahua Street Honolulu HI Hawaii Properties (A) 1,148 — — — 1,148 — 1,148 — 12/5/2003 — 197 1150 Kikowaena Street Honolulu HI Hawaii Properties (A) 2,445 — — — 2,445 — 2,445 — 12/5/2003 — 198 960 Ahua Street Honolulu HI Hawaii Properties (A) 614 — — — 614 — 614 — 12/5/2003 — 199 1062 Kikowaena Place Honolulu HI Hawaii Properties (A) 1,049 598 125 — 1,049 723 1,772 ( 294 ) 12/5/2003 — 200 2829 Pukoloa Street Honolulu HI Hawaii Properties (A) 2,088 — — — 2,088 — 2,088 — 12/5/2003 — 201 2841 Pukoloa Street Honolulu HI Hawaii Properties (A) 2,088 — — — 2,088 — 2,088 — 12/5/2003 — 202 2819 Pukoloa Street Honolulu HI Hawaii Properties (A) 2,090 — 34 — 2,090 34 2,124 ( 12 ) 12/5/2003 — 203 950 Mapunapuna Street Honolulu HI Hawaii Properties (A) 1,724 — — — 1,724 — 1,724 — 12/5/2003 — 204 960 Mapunapuna Street Honolulu HI Hawaii Properties (A) 1,933 — — — 1,933 — 1,933 — 12/5/2003 — S-7 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued) December 31, 2022 (dollars in thousands) Initial Cost to Gross Amount Carried at Company Costs Close of Period (4) Buildings Capitalized Buildings Original and Subsequent to Impairment/ and Accumulated Date Construction Property Location State Property Type Encumbrances (1) Land Equipment Acquisition Writedowns (2) Land Equipment Total (2) Depreciation (3) Acquired Date 205 930 Mapunapuna Street Honolulu HI Hawaii Properties (A) 3,654 — — — 3,654 — 3,654 — 12/5/2003 — 206 1038 Kikowaena Place Honolulu HI Hawaii Properties (A) 2,576 — — — 2,576 — 2,576 — 12/5/2003 — 207 1024 Kikowaena Place Honolulu HI Hawaii Properties (A) 1,818 — — — 1,818 — 1,818 — 12/5/2003 — 208 2970 Mokumoa Street Honolulu HI Hawaii Properties (A) 1,722 — — — 1,722 — 1,722 — 12/5/2003 — 209 970 Ahua Street Honolulu HI Hawaii Properties (A) 817 — — — 817 — 817 — 12/5/2003 — 210 2840 Mokumoa Street Honolulu HI Hawaii Properties (A) 2,149 — — — 2,149 — 2,149 — 12/5/2003 — 211 2830 Mokumoa Street Honolulu HI Hawaii Properties (A) 2,146 — — — 2,146 — 2,146 — 12/5/2003 — 212 1027 Kikowaena Place Honolulu HI Hawaii Properties (A) 5,444 — — — 5,444 — 5,444 — 12/5/2003 — 213 2960 Mokumoa Street Honolulu HI Hawaii Properties (A) 1,977 — — — 1,977 — 1,977 — 12/5/2003 — 214 80 Sand Island Access Road Honolulu HI Hawaii Properties (A) 7,972 — — — 7,972 — 7,972 — 12/5/2003 — 215 94-240 Pupuole Street Waipahu HI Hawaii Properties (A) 717 — — — 717 — 717 — 12/5/2003 — 216 525 N. King Street Honolulu HI Hawaii Properties (A) 1,342 — — — 1,342 — 1,342 — 12/5/2003 — 217 1360 Pali Highway Honolulu HI Hawaii Properties (A) 9,170 — 161 — 9,170 161 9,331 ( 146 ) 12/5/2003 — 218 1330 Pali Highway Honolulu HI Hawaii Properties (A) 1,423 — — — 1,423 — 1,423 — 12/5/2003 — 219 33 S. Vineyard Boulevard Honolulu HI Hawaii Properties (A) 844 — — — 844 — 844 — 12/5/2003 — 220 848 Ala Lilikoi Street Honolulu HI Hawaii Properties (A) 9,426 — — — 9,426 — 9,426 — 12/5/2003 — 221 846 Ala Lilikoi Street Honolulu HI Hawaii Properties (A) 234 — — — 234 — 234 — 12/5/2003 — 222 2635 Waiwai Loop A Honolulu HI Hawaii Properties (A) 934 350 683 — 934 1,033 1,967 ( 355 ) 12/5/2003 — 223 2635 Waiwai Loop B Honolulu HI Hawaii Properties (A) 1,177 105 682 — 1,177 787 1,964 ( 238 ) 12/5/2003 — 224 120 Sand Island Access Road Honolulu HI Hawaii Properties (A) 1,132 11,307 1,452 — 1,132 12,759 13,891 ( 5,624 ) 11/23/2004 2004 225 91-222 Olai Kapolei HI Hawaii Properties (B) 2,035 — 77 — 2,035 77 2,112 ( 3 ) 6/15/2005 — 226 91-265 Hanua Kapolei HI Hawaii Properties (B) 1,569 — — — 1,569 — 1,569 — 6/15/2005 — 227 91-255 Hanua Kapolei HI Hawaii Properties (B) 1,230 — 35 — 1,230 35 1,265 ( 8 ) 6/15/2005 — 228 91-241 Kalaeloa Kapolei HI Hawaii Properties (B) 426 3,983 883 — 426 4,866 5,292 ( 2,002 ) 6/15/2005 1990 229 91-141 Kalaeloa Kapolei HI Hawaii Properties (B) 11,624 — — — 11,624 — 11,624 — 6/15/2005 — 230 91-250 Komohana Kapolei HI Hawaii Properties (B) 1,506 — — — 1,506 — 1,506 — 6/15/2005 — 231 91-202 Kalaeloa Kapolei HI Hawaii Properties (B) 1,722 — 326 — 1,722 326 2,048 ( 77 ) 6/15/2005 1964 232 91-080 Hanua Kapolei HI Hawaii Properties (B) 2,187 — — — 2,187 — 2,187 — 6/15/2005 — 233 91-027 Kaomi Loop Kapolei HI Hawaii Properties (B) 2,667 — — — 2,667 — 2,667 — 6/15/2005 — S-8 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued) December 31, 2022 (dollars in thousands) Initial Cost to Gross Amount Carried at Company Costs Close of Period (4) Buildings Capitalized Buildings Original and Subsequent to Impairment/ and Accumulated Date Construction Property Location State Property Type Encumbrances (1) Land Equipment Acquisition Writedowns (2) Land Equipment Total (2) Depreciation (3) Acquired Date 234 91-185 Kalaeloa Kapolei HI Hawaii Properties (B) 1,761 — 81 — 1,761 81 1,842 ( 2 ) 6/15/2005 — 235 91-329 Kauhi Kapolei HI Hawaii Properties (B) 294 2,297 2,783 — 294 5,080 5,374 ( 2,165 ) 6/15/2005 1980 236 91-399 Kauhi Kapolei HI Hawaii Properties (B) 27,405 — — — 27,405 — 27,405 — 6/15/2005 — 237 91-086 Kaomi Loop Kapolei HI Hawaii Properties 13,884 — — — 13,884 — 13,884 — 6/15/2005 — 238 91-349 Kauhi Kapolei HI Hawaii Properties (B) 649 — — — 649 — 649 — 6/15/2005 — 239 91-400 Komohana Kapolei HI Hawaii Properties (B) 1,494 — — — 1,494 — 1,494 — 6/15/2005 — 240 91-174 Olai Kapolei HI Hawaii Properties (B) 962 — 47 — 962 47 1,009 ( 28 ) 6/15/2005 — 241 91-218 Olai Kapolei HI Hawaii Properties (B) 1,622 — 62 — 1,622 62 1,684 ( 34 ) 6/15/2005 — 242 91-175 Olai Kapolei HI Hawaii Properties (B) 1,243 — 87 — 1,243 87 1,330 ( 32 ) 6/15/2005 — 243 91-210 Olai Kapolei HI Hawaii Properties (B) 706 — — — 706 — 706 — 6/15/2005 — 244 91-087 Hanua Kapolei HI Hawaii Properties (B) 381 — — — 381 — 381 — 6/15/2005 — 245 91-083 Hanua Kapolei HI Hawaii Properties (B) 716 — — — 716 — 716 — 6/15/2005 — 246 91-091 Hanua Kapolei HI Hawaii Properties (B) 552 — — — 552 — 552 — 6/15/2005 — 247 91-220 Kalaeloa Kapolei HI Hawaii Properties (B) 242 1,457 155 — 242 1,612 1,854 ( 677 ) 6/15/2005 1991 248 91-252 Kauhi Kapolei HI Hawaii Properties (B) 536 — — — 536 — 536 — 6/15/2005 — 249 91-259 Olai Kapolei HI Hawaii Properties (B) 2,944 — — — 2,944 — 2,944 — 6/15/2005 — 250 91-238 Kauhi Kapolei HI Hawaii Properties (B) 1,390 — 9,495 — 1,390 9,495 10,885 ( 3,594 ) 6/15/2005 1981 251 91-416 Komohana Kapolei HI Hawaii Properties (B) 713 — 11 — 713 11 724 ( 5 ) 6/15/2005 — 252 91-410 Komohana Kapolei HI Hawaii Properties (B) 418 — 12 — 418 12 430 ( 6 ) 6/15/2005 — 253 91-300 Hanua Kapolei HI Hawaii Properties (B) 1,381 — 18 — 1,381 18 1,399 ( 2 ) 6/15/2005 1994 254 91-171 Olai Kapolei HI Hawaii Properties (B) 218 — 13 — 218 13 231 ( 7 ) 6/15/2005 — 255 91-210 Kauhi Kapolei HI Hawaii Properties (B) 567 — 663 — 567 663 1,230 ( 43 ) 6/15/2005 1990 256 91-110 Kaomi Loop Kapolei HI Hawaii Properties (B) 1,293 — — — 1,293 — 1,293 — 6/15/2005 — 257 91-102 Kaomi Loop Kapolei HI Hawaii Properties (B) 1,599 — — — 1,599 — 1,599 — 6/15/2005 — 258 91-064 Kaomi Loop Kapolei HI Hawaii Properties (B) 1,826 — — — 1,826 — 1,826 — 6/15/2005 — 259 91-119 Olai Kapolei HI Hawaii Properties (B) 1,981 — — — 1,981 — 1,981 — 6/15/2005 — 260 91-150 Kaomi Loop Kapolei HI Hawaii Properties (B) 3,159 — — — 3,159 — 3,159 — 6/15/2005 — 261 Texaco Easement Kapolei HI Hawaii Properties 2,657 — — — 2,657 — 2,657 — 6/15/2005 — 262 Tesaro 967 Easement Kapolei HI Hawaii Properties 6,593 — — — 6,593 — 6,593 — 6/15/2005 — S-9 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued) December 31, 2022 (dollars in thousands) Initial Cost to Gross Amount Carried at Company Costs Close of Period (4) Buildings Capitalized Buildings Original and Subsequent to Impairment/ and Accumulated Date Construction Property Location State Property Type Encumbrances (1) Land Equipment Acquisition Writedowns (2) Land Equipment Total (2) Depreciation (3) Acquired Date 263 AES HI Easement Kapolei HI Hawaii Properties 1,250 — — — 1,250 — 1,250 — 6/15/2005 — 264 Other Easements & Lots Kapolei HI Hawaii Properties 358 — 1,437 — 358 1,437 1,795 ( 682 ) 6/15/2005 — 265 889 Ahua Street Honolulu HI Hawaii Properties (A) 5,888 315 — — 5,888 315 6,203 ( 80 ) 11/21/2012 — 266 951 Trails Road Eldridge IA Mainland Properties (D) 470 7,480 2,278 — 470 9,758 10,228 ( 3,450 ) 4/2/2007 1994 267 2300 North 33rd Avenue East Newton IA Mainland Properties (B) 500 13,236 117 — 500 13,353 13,853 ( 4,802 ) 9/29/2008 2008 268 3425 Maple Drive Fort Dodge IA Mainland Properties (B) 100 2,000 — — 100 2,000 2,100 ( 213 ) 4/9/2019 2014 269 4401 112th Street Urbandale IA Mainland Properties (C) 800 3,117 — — 800 3,117 3,917 ( 132 ) 2/25/2022 1985 270 7121 South Fifth Avenue Pocatello ID Mainland Properties (B) 400 4,201 581 — 400 4,782 5,182 ( 896 ) 1/29/2015 2007 271 2580 Technology Drive Elgin IL Mainland Properties (B) 1,500 9,068 16 ( 3,053 ) 1,067 6,464 7,531 ( 164 ) 2/25/2022 2001 272 5795 Logistics Parkway Rockford IL Mainland Properties (B) 400 3,368 — ( 688 ) 327 2,753 3,080 ( 46 ) 2/25/2022 1998 273 1602 Vincent Drive Sauget IL Mainland Properties (C) 1,400 27,028 444 — 1,400 27,472 28,872 ( 676 ) 2/25/2022 2014 274 6 Konzen Court Granite City IL Mainland Properties (C) 900 20,268 15 — 900 20,283 21,183 ( 861 ) 2/25/2022 2001 275 1000 Knell Road Montgomery IL Mainland Properties (C) 2,101 19,258 — — 2,101 19,258 21,359 ( 655 ) 2/25/2022 2000 276 1430 South Wolf Road Wheeling IL Mainland Properties (C) 4,702 19,641 ( 1 ) — 4,701 19,641 24,342 ( 477 ) 2/25/2022 2003 277 1270 North Wilkening Schaumburg IL Mainland Properties (C) 2,801 7,733 23 — 2,801 7,756 10,557 ( 329 ) 2/25/2022 1996 278 4472 Technology Drive Rockford IL Mainland Properties (C) 400 5,912 — — 400 5,912 6,312 ( 168 ) 2/25/2022 2011 279 7019 High Grove Boulevard Burr Ridge IL Mainland Properties (C) 800 1,090 — — 800 1,090 1,890 ( 31 ) 2/25/2022 1997 280 1230 West 171st Street Harvey IL Mainland Properties (B) 800 1,673 — — 800 1,673 2,473 ( 332 ) 1/29/2015 2004 281 5156 American Road Rockford IL Mainland Properties (B) 400 1,529 348 — 400 1,877 2,277 ( 396 ) 1/29/2015 1996 282 9215-9347 E Pendleton Pike Lawrence IN Mainland Properties (B) 3,763 34,877 1 — 3,763 34,878 38,641 ( 3,867 ) 2/14/2019 2009 283 6825 West County Road 400 North Greenfield IN Mainland Properties (D) 918 14,300 924 — 918 15,224 16,142 ( 1,747 ) 2/14/2019 2008 284 900 Commerce Parkway West Drive Greenwood IN Mainland Properties (D) 1,483 16,253 9 — 1,483 16,262 17,745 ( 1,802 ) 2/14/2019 2007 285 2482 Century Drive Goshen IN Mainland Properties (B) 840 9,061 — — 840 9,061 9,901 ( 965 ) 4/9/2019 2005 286 3201 Bearing Drive Franklin IN Mainland Properties (D) 1,100 15,403 ( 2 ) — 1,100 15,401 16,501 ( 1,914 ) 4/9/2019 1973 287 482 Chaney Avenue Greenwood IN Mainland Properties (C) 2,401 55,810 — — 2,401 55,810 58,211 ( 1,581 ) 2/25/2022 2014 288 1151 South Graham Road Greenwood IN Mainland Properties (E) 7,002 108,700 — — 7,002 108,700 115,702 ( 2,640 ) 2/25/2022 2019 289 5440 Haggerty Lane Lafayette IN Mainland Properties (C) 3,601 31,058 22 — 3,601 31,080 34,681 ( 754 ) 2/25/2022 2019 290 8951 Mirabel Road Indianapolis IN Mainland Properties (C) 3,001 36,978 — — 3,001 36,978 39,979 ( 898 ) 2/25/2022 2014 291 17001 West Mercury Street Gardner KS Mainland Properties (D) 5,741 32,701 401 — 5,741 33,102 38,843 ( 1,648 ) 12/30/2020 2018 S-10 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued) December 31, 2022 (dollars in thousands) Initial Cost to Gross Amount Carried at Company Costs Close of Period (4) Buildings Capitalized Buildings Original and Subsequent to Impairment/ and Accumulated Date Construction Property Location State Property Type Encumbrances (1) Land Equipment Acquisition Writedowns (2) Land Equipment Total (2) Depreciation (3) Acquired Date 292 435 SE 70th Steet Topeka KS Mainland Properties (B) — 3,563 120 ( 594 ) — 3,089 3,089 ( 53 ) 2/25/2022 2006 293 22525 West 167th Street Olathe KS Mainland Properties (C) 4,301 52,183 ( 1 ) — 4,301 52,182 56,483 ( 1,267 ) 2/25/2022 2016 294 2552 South 98th Street Edwardsville KS Mainland Properties (C) 3,601 20,988 — — 3,601 20,988 24,589 ( 595 ) 2/25/2022 2013 295 2701 South 98th Street Edwardsville KS Mainland Properties (C) 2,701 10,998 — — 2,701 10,998 13,699 ( 374 ) 2/25/2022 2001 296 1985 International Way Hebron KY Mainland Properties (B) 1,453 8,546 1,625 — 1,454 10,170 11,624 ( 1,314 ) 2/14/2019 1997 297 2311 South Park Road Louisville KY Mainland Properties (B) 1,600 13,119 — — 1,600 13,119 14,719 ( 316 ) 2/25/2022 2016 298 1509 Leestown Road Frankfort KY Mainland Properties (C) 4,801 38,708 — — 4,801 38,708 43,509 ( 1,097 ) 2/25/2022 2014 299 4555 West Highway 146 Buckner KY Mainland Properties (C) 3,201 39,977 — — 3,201 39,977 43,178 ( 1,133 ) 2/25/2022 2013 300 450 Northpointe Court Covington LA Mainland Properties (C) 1,300 26,883 — — 1,300 26,883 28,183 ( 653 ) 2/25/2022 2015 301 209 South Bud Street Lafayette LA Mainland Properties (B) 700 4,549 41 — 700 4,590 5,290 ( 908 ) 1/29/2015 2010 302 17200 Manchac Park Lane Baton Rouge LA Mainland Properties (B) 1,700 8,860 — — 1,700 8,860 10,560 ( 1,754 ) 1/29/2015 2014 303 11900 Trolley Lane Beltsville MD Mainland Properties (B) 8,203 23,095 — ( 1,243 ) 7,877 22,178 30,055 ( 374 ) 2/25/2022 2000 304 4000 Principio Parkway North East MD Mainland Properties (D) 4,200 71,518 803 — 4,200 72,321 76,521 ( 14,290 ) 1/29/2015 2012 305 3466 Shippers Drive Walker MI Mainland Properties (C) 4,902 29,780 13 — 4,902 29,793 34,695 ( 723 ) 2/25/2022 2016 306 1601 Brown Road Orion MI Mainland Properties (C) 4,700 57,812 721 — 4,700 58,533 63,233 ( 1,447 ) 2/25/2022 2006 307 38401 Amrhein Road Livonia MI Mainland Properties (C) 1,400 14,778 — — 1,400 14,778 16,178 ( 419 ) 2/25/2022 1999 308 28000 Five M Center Drive Romulus MI Mainland Properties (C) 300 8,530 ( 5 ) — 300 8,525 8,825 ( 242 ) 2/25/2022 1997 309 3800 Midlink Drive Kalamazoo MI Mainland Properties (B) 2,630 40,599 — — 2,630 40,599 43,229 ( 8,036 ) 1/29/2015 2014 310 10100 89th Avenue N Maple Grove MN Mainland Properties (D) 3,469 21,284 725 — 3,469 22,009 25,478 ( 2,581 ) 10/16/2018 2015 311 2427 Henry Road NW Stewartville MN Mainland Properties (C) 1,300 3,145 — — 1,300 3,145 4,445 ( 89 ) 2/25/2022 2013 312 2401 Cram Avenue SE Bemidji MN Mainland Properties (B) 100 2,137 — — 100 2,137 2,237 ( 423 ) 1/29/2015 2013 313 5501 Providence Hill Drive St. Joseph MO Mainland Properties (B) 400 3,500 26 — 402 3,524 3,926 ( 383 ) 4/9/2019 2014 314 3502 Enterprise Avenue Joplin MO Mainland Properties (B) 1,380 12,121 34 — 1,380 12,155 13,535 ( 1,292 ) 4/9/2019 2014 315 5703 Mitchell Avenue St. Joseph MO Mainland Properties (C) 1,600 19,085 65 — 1,600 19,150 20,750 ( 812 ) 2/25/2022 2000 316 10551 N Congress Avenue Kansas City MO Mainland Properties (C) 600 13,538 — — 600 13,538 14,138 ( 329 ) 2/25/2022 2014 317 831 Lone Star Drive O'Fallon MO Mainland Properties (C) 1,200 7,304 — — 1,200 7,304 8,504 ( 248 ) 2/25/2022 1989 318 2901 E Heartland Drive Liberty MO Mainland Properties (C) 1,100 6,886 — — 1,100 6,886 7,986 ( 234 ) 2/25/2022 1997 319 110 Stanbury Industrial Drive Brookfield MO Mainland Properties (B) 200 1,859 — — 200 1,859 2,059 ( 368 ) 1/29/2015 2012 320 12385 Crossroad Drive Olive Branch MS Mainland Properties (E) 3,301 61,763 — — 3,301 61,763 65,064 ( 1,750 ) 2/25/2022 2012 S-11 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued) December 31, 2022 (dollars in thousands) Initial Cost to Gross Amount Carried at Company Costs Close of Period (4) Buildings Capitalized Buildings Original and Subsequent to Impairment/ and Accumulated Date Construction Property Location State Property Type Encumbrances (1) Land Equipment Acquisition Writedowns (2) Land Equipment Total (2) Depreciation (3) Acquired Date 321 8644 Polk Lane Olive Branch MS Mainland Properties (C) 900 20,171 — — 900 20,171 21,071 ( 490 ) 2/25/2022 2011 322 440 US Highway 49 South Richland MS Mainland Properties (C) 200 2,329 — — 200 2,329 2,529 ( 99 ) 2/25/2022 1986 323 105 Business Park Drive Ridgeland MS Mainland Properties (C) 500 1,949 8 — 500 1,957 2,457 ( 83 ) 2/25/2022 1988 324 590 Assembly Court Fayetteville NC Mainland Properties (B) 700 9,410 1 ( 2,328 ) 540 7,243 7,783 ( 147 ) 2/25/2022 1996 325 4350 Fortune Ave NW Concord NC Mainland Properties (C) 4,401 53,085 — — 4,401 53,085 57,486 ( 1,290 ) 2/25/2022 2017 326 4690 Global Avenue NW Concord NC Mainland Properties (C) 4,601 45,793 — — 4,601 45,793 50,394 ( 1,112 ) 2/25/2022 2015 327 6538 & 6526 Judge Adams Road Whitsett NC Mainland Properties (E) 2,501 46,343 — — 2,501 46,343 48,844 ( 1,125 ) 2/25/2022 2019 328 4040 Business Park Court Winston Salem NC Mainland Properties (C) 800 8,411 — — 800 8,411 9,211 ( 238 ) 2/25/2022 2001 329 628 Patton Avenue Asheville NC Mainland Properties 500 1,514 — — 500 1,514 2,014 ( 300 ) 1/29/2015 1987 330 3900 NE 6th Street Minot ND Mainland Properties (B) 700 3,223 — — 700 3,223 3,923 ( 638 ) 1/29/2015 2013 331 7130 Q Street Omaha NE Mainland Properties (B) 1,600 7,390 1 ( 2,138 ) 1,220 5,633 6,853 ( 114 ) 2/25/2022 1997 332 1415 West Commerce Way Lincoln NE Mainland Properties (B) 2,200 8,518 388 — 2,200 8,906 11,106 ( 1,784 ) 1/29/2015 1971 333 52 Pettengill Road Londonderry NH Mainland Properties (D) 5,871 43,335 7 — 5,871 43,342 49,213 ( 4,618 ) 4/9/2019 2015 334 1135 Easton Avenue Franklin Township NJ Mainland Properties 3,601 5,564 5 — 3,601 5,569 9,170 ( 236 ) 2/25/2022 1969 335 584 US Highway 130 Trenton NJ Mainland Properties (E) 70,422 62,639 — — 70,422 62,639 133,061 ( 1,521 ) 2/25/2022 2017 336 725 Darlington Avenue Mahwah NJ Mainland Properties (D) 8,492 9,451 1,796 — 8,492 11,247 19,739 ( 2,515 ) 4/9/2014 1999 337 309 Dulty's Lane Burlington NJ Mainland Properties (D) 1,600 51,400 ( 1 ) — 1,600 51,399 52,999 ( 10,174 ) 1/29/2015 2001 338 7000 West Post Road Las Vegas NV Mainland Properties (D) 4,230 13,472 246 — 4,230 13,718 17,948 ( 1,738 ) 4/9/2019 2010 339 2375 East Newlands Road Fernley NV Mainland Properties (B) 1,100 17,314 286 — 1,100 17,600 18,700 ( 3,523 ) 1/29/2015 2007 340 158 West Yard Road Feura Bush NY Mainland Properties (B) 1,870 7,931 73 — 1,870 8,004 9,874 ( 1,482 ) 4/9/2019 1989 341 3779 Lake Shore Road Hamburg NY Mainland Properties (C) 2,701 38,186 18 — 2,701 38,204 40,905 ( 927 ) 2/25/2022 2016 342 1289 Walden Avenue Cheektowaga NY Mainland Properties (C) 600 6,314 — — 600 6,314 6,914 ( 268 ) 2/25/2022 2001 343 4 Liebich Lane Halfmoon NY Mainland Properties (C) 400 8,521 — — 400 8,521 8,921 ( 207 ) 2/25/2022 2011 344 55 Commerce Avenue Albany NY Mainland Properties (B) 1,000 10,105 180 — 1,000 10,285 11,285 ( 2,059 ) 1/29/2015 2013 345 32150 Just Imagine Drive Avon OH Mainland Properties (B) 2,200 23,280 — — 2,200 23,280 25,480 ( 7,906 ) 5/29/2009 1996 346/347/348 1580, 1590 & 1600 Williams Road Columbus OH Mainland Properties (B) 2,060 29,143 — — 2,060 29,143 31,203 ( 3,621 ) 4/9/2019 1992 349 7303 Rickenbacker Parkway West Columbus OH Mainland Properties (D) 1,491 27,407 — — 1,491 27,407 28,898 ( 1,196 ) 6/21/2021 2020 350 3245 Henry Road and 3185 Columbia Road Richfield OH Mainland Properties (B) 2,499 21,640 19 — 2,501 21,657 24,158 ( 611 ) 2/25/2022 2005 S-12 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued) December 31, 2022 (dollars in thousands) Initial Cost to Gross Amount Carried at Company Costs Close of Period (4) Buildings Capitalized Buildings Original and Subsequent to Impairment/ and Accumulated Date Construction Property Location State Property Type Encumbrances (1) Land Equipment Acquisition Writedowns (2) Land Equipment Total (2) Depreciation (3) Acquired Date 351 8341 Industrial Parkway Plain City OH Mainland Properties (E) 6,702 97,563 — — 6,702 97,563 104,265 ( 2,369 ) 2/25/2022 2020 352 201 Exploration Drive Monroe OH Mainland Properties (E) 1,801 38,868 — — 1,801 38,868 40,669 ( 944 ) 2/25/2022 2014 353 9780 Mopar Drive Streetsboro OH Mainland Properties (C) 2,701 26,021 — — 2,701 26,021 28,722 ( 737 ) 2/25/2022 2011 354 2465 Fontaine Street Kenton OH Mainland Properties (C) 1,000 19,323 — — 1,000 19,323 20,323 ( 469 ) 2/25/2022 2017 355 4651 Prosper Drive Stow OH Mainland Properties (C) 1,400 30,772 — — 1,400 30,772 32,172 ( 747 ) 2/25/2022 2017 356 747 Mill Park Drive Lancaster OH Mainland Properties (C) 1,400 17,609 — — 1,400 17,609 19,009 ( 428 ) 2/25/2022 2019 357 9667 Inter-Ocean Drive West Chester Twp. OH Mainland Properties (C) 1,300 10,880 — — 1,300 10,880 12,180 ( 370 ) 2/25/2022 1999 358 5313 Majestic Parkway Bedford Heights OH Mainland Properties (C) 1,100 8,107 15 — 1,100 8,122 9,222 ( 345 ) 2/25/2022 1998 359 1115 Regina Graeter Way Cincinnati OH Mainland Properties (C) 700 7,908 — — 700 7,908 8,608 ( 192 ) 2/25/2022 2015 360 4170 Columbia Road Lebanon OH Mainland Properties (C) 400 9,841 3 — 403 9,841 10,244 ( 239 ) 2/25/2022 2011 361 1415 Industrial Drive Chillicothe OH Mainland Properties (B) 1,200 3,265 — — 1,200 3,265 4,465 ( 646 ) 1/29/2015 2012 362 200 Orange Point Drive Lewis Center OH Mainland Properties (B) 1,300 8,613 162 — 1,301 8,774 10,075 ( 1,776 ) 1/29/2015 2013 363 301 Commerce Drive South Point OH Mainland Properties (B) 600 4,530 ( 1 ) — 601 4,528 5,129 ( 898 ) 1/29/2015 2013 364 5300 Centerpoint Parkway Groveport OH Mainland Properties (D) 2,700 29,863 68 — 2,700 29,931 32,631 ( 5,926 ) 1/29/2015 2014 365 2701 S.W. 18TH Street Oklahoma City OK Mainland Properties (B) 2,401 18,865 ( 1 ) ( 5,675 ) 1,760 13,830 15,590 ( 200 ) 2/25/2022 2011 366 8000 Mid America Blvd. Oklahoma City OK Mainland Properties (B) 900 12,813 — ( 1,814 ) 781 11,118 11,899 ( 187 ) 2/25/2022 2017 367 1414 South Council Road Oklahoma City OK Mainland Properties (C) 5,002 39,952 — — 5,002 39,952 44,954 ( 970 ) 2/25/2022 2017 368 6101 SW 44th Street Oklahoma City OK Mainland Properties (C) 2,401 13,868 — — 2,401 13,868 16,269 ( 337 ) 2/25/2022 2020 369 2759 North Garnett Road Tulsa OK Mainland Properties (C) 800 4,879 — — 800 4,879 5,679 ( 118 ) 2/25/2022 2008 370 2820 State Highway 31 McAlester OK Mainland Properties (B) 581 2,237 4,582 — 581 6,819 7,400 ( 1,050 ) 1/29/2015 2012 371 1729 Pennsylvania Avenue Monaca PA Mainland Properties (B) 1,200 13,257 — ( 2,173 ) 1,020 11,264 12,284 ( 384 ) 2/25/2022 1977 372 101 North Campus Drive Imperial PA Mainland Properties (C) 3,801 26,700 — — 3,801 26,700 30,501 ( 649 ) 2/25/2022 2015 373 231 Theater Drive Altoona PA Mainland Properties (C) 1,400 9,864 — — 1,400 9,864 11,264 ( 279 ) 2/25/2022 2013 374 700 Marine Drive Rock Hill SC Mainland Properties (B) 820 8,381 798 — 820 9,179 9,999 ( 1,144 ) 4/9/2019 1986 375 1990 Hood Road Greer SC Mainland Properties (B) 400 10,702 ( 1 ) — 400 10,701 11,101 ( 1,140 ) 4/9/2019 2015 376 7410 Magi Drive Hanahan SC Mainland Properties (B) 2,401 31,029 — — 2,401 31,029 33,430 ( 1,052 ) 2/25/2022 2001 377 6850 Weber Boulevard Charleston SC Mainland Properties (B) 11,604 44,602 — ( 12,228 ) 9,079 34,899 43,978 ( 503 ) 2/25/2022 2018 378 1892 Anfield Road North Charleston SC Mainland Properties (B) 4,001 21,179 1 ( 3,822 ) 3,394 17,965 21,359 ( 259 ) 2/25/2022 2017 379 7409 Magi Drive Hanahan SC Mainland Properties (B) 1,801 13,651 — ( 1,389 ) 1,639 12,424 14,063 ( 209 ) 2/25/2022 2004 S-13 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued) December 31, 2022 (dollars in thousands) Initial Cost to Gross Amount Carried at Company Costs Close of Period (4) Buildings Capitalized Buildings Original and Subsequent to Impairment/ and Accumulated Date Construction Property Location State Property Type Encumbrances (1) Land Equipment Acquisition Writedowns (2) Land Equipment Total (2) Depreciation (3) Acquired Date 380 1103 Powderhouse Road SE Aiken SC Mainland Properties (C) 1,200 36,140 — — 1,200 36,140 37,340 ( 878 ) 2/25/2022 2017 381 3058 Lakemont Blvd Ft. Mill SC Mainland Properties (C) 2,901 33,304 20 — 2,901 33,324 36,225 ( 809 ) 2/25/2022 2008 382 510 John Dodd Road Spartanburg SC Mainland Properties (D) 3,300 57,998 419 — 3,301 58,416 61,717 ( 11,548 ) 1/29/2015 2012 383 996 Paragon Way Rock Hill SC Mainland Properties (B) 2,334 35,920 ( 2 ) — 2,334 35,918 38,252 ( 7,109 ) 1/29/2015 2014 384 5001 West Del(B) Street Sioux Falls SD Mainland Properties (B) 2,570 14,832 — — 2,570 14,832 17,402 ( 1,580 ) 4/9/2019 2016 385 5025 Tuggle Road Memphis TN Mainland Properties (C) 1,400 31,520 — — 1,400 31,520 32,920 ( 893 ) 2/25/2022 1994 386 900 Hutchinson Place Lebanon TN Mainland Properties (C) 2,601 31,582 — — 2,601 31,582 34,183 ( 1,342 ) 2/25/2022 1993 387 6023 Century Oaks Drive Chattanooga TN Mainland Properties (C) 500 5,759 15 — 500 5,774 6,274 ( 245 ) 2/25/2022 2002 388 3774 Snyder Road Kodak TN Mainland Properties (C) 3,201 30,564 — — 3,201 30,564 33,765 ( 742 ) 2/25/2022 2021 389 4836 Hickory Hill Road Memphis TN Mainland Properties (D) 1,402 10,769 1,625 — 1,403 12,393 13,796 ( 2,494 ) 12/23/2014 1984 390 2020 Joe B. Jackson Parkway Murfreesboro TN Mainland Properties (D) 7,500 55,259 299 — 7,500 55,558 63,058 ( 10,987 ) 1/29/2015 2012 391 2500, 2526 and 2614 Big Town Boulevard Mesquite TX Mainland Properties 2,319 — 10,015 — 2,319 10,015 12,334 — 5/7/2021 — 392 11501 Wilkinson Drive El Paso TX Mainland Properties (B) 2,401 19,665 ( 1 ) ( 2,259 ) 2,155 17,651 19,806 ( 358 ) 2/25/2022 2005 393 5005 Samuell Blvd. Mesquite TX Mainland Properties (C) 6,366 62,879 2,458 — 6,366 65,337 71,703 ( 1,672 ) 2/25/2022 2017 394 2701 Texas Longhorn Way Ft. Worth TX Mainland Properties (E) 9,303 42,504 78 — 9,303 42,582 51,885 ( 1,032 ) 2/25/2022 2015 395 2000 Luna Road Carrollton TX Mainland Properties (C) 1,801 25,816 31 — 1,801 25,847 27,648 ( 732 ) 2/25/2022 2008 396 21200 Spring Plaza Drive Spring TX Mainland Properties (C) 2,701 29,832 — — 2,701 29,832 32,533 ( 845 ) 2/25/2022 2013 397 502 West Independence Drive Edinburg TX Mainland Properties (C) 800 19,673 — — 800 19,673 20,473 ( 478 ) 2/25/2022 2011 398 800 Lindale Industrial Parkway Lindale TX Mainland Properties (C) 800 18,947 692 — 800 19,639 20,439 ( 509 ) 2/25/2022 2014 399 685 Alliance Parkway Hewitt TX Mainland Properties (C) 800 23,207 — — 800 23,207 24,007 ( 658 ) 2/25/2022 2012 400 16211 Air Center Boulevard Houston TX Mainland Properties (C) 1,600 13,529 — — 1,600 13,529 15,129 ( 329 ) 2/25/2022 2005 401 246 Glasson Drive Corpus Christi TX Mainland Properties (C) — 9,596 — — — 9,596 9,596 ( 233 ) 2/25/2022 2011 402 985 Kershaw Street Ogden UT Mainland Properties (B) 2,301 13,994 — ( 1,903 ) 2,032 12,360 14,392 ( 178 ) 2/25/2022 2019 403 1095 South 4800 West Salt Lake City UT Mainland Properties (B) 1,500 6,913 20 — 1,500 6,933 8,433 ( 1,376 ) 1/29/2015 2012 404 8800 Studley Road Mechanicsville VA Mainland Properties (C) 1,100 10,813 16 — 1,100 10,829 11,929 ( 460 ) 2/25/2022 1988 405 1935 Blue Hills Drive Roanoke VA Mainland Properties (C) 1,300 13,908 — — 1,300 13,908 15,208 ( 394 ) 2/25/2022 2013 406 3736 Tom Andrews Road Roanoke VA Mainland Properties (C) 600 9,273 — — 600 9,273 9,873 ( 263 ) 2/25/2022 1996 407 2300 Westmoreland Street Richmond VA Mainland Properties (C) 600 6,109 — — 600 6,109 6,709 ( 208 ) 2/25/2022 2004 408 1122 Stony Ridge Road Charlottesville VA Mainland Properties (C) 2,101 6,051 — — 2,101 6,051 8,152 ( 147 ) 2/25/2022 1998 S-14 Table of Contents INDUSTRIAL LOGISTICS PROPERTIES TRUST SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued) December 31, 2022 (dollars in thousands) Initial Cost to Gross Amount Carried at Company Costs Close of Period (4) Buildings Capitalized Buildings Original and Subsequent to Impairment/ and Accumulated Date Construction Property Location State Property Type Encumbrances (1) Land Equipment Acquisition Writedowns (2) Land Equipment Total (2) Depreciation (3) Acquired Date 409 1901 Meadowville Technology Parkway Chester VA Mainland Properties (D) 4,000 67,511 170 — 4,000 67,681 71,681 ( 13,383 ) 1/29/2015 2012 410 635 Community Drive South Burlington VT Mainland Properties (C) 10,003 38,560 — — 10,003 38,560 48,563 ( 936 ) 2/25/2022 2021 411 2000 South Walnut Street Burlington WA Mainland Properties (E) 8,603 22,749 — — 8,602 22,750 31,352 ( 552 ) 2/25/2022 2015 412 5300 International Drive Cudahy WI Mainland Properties (C) 1,801 17,367 38 — 1,801 17,405 19,206 ( 422 ) 2/25/2022 2001 413 3383 Spirit Way Green Bay WI Mainland Properties (C) 601 9,346 — — 601 9,346 9,947 ( 227 ) 2/25/2022 2013 $ 1,132,989 $ 4,064,666 $ 71,482 ( 93,029 ) $ 1,117,779 $ 4,058,329 5,176,108 ( 273,467 ) (1) Represents mortgage notes and includes the unamortized balance of debt issuance costs totaling $ 45,862 . Certain of our properties are encumbered as follows: Encumbrance Undepreciated Cost (A) - 186 properties encumbered by one mortgage loan $ 646,669 $ 506,264 (B) - 104 properties encumbered by the ILPT Floating Rate Loan 1,216,078 1,170,474 (C) - 82 properties encumbered by the Floating Rate Loan 1,381,687 1,956,835 (D) - 17 properties encumbered by the Fixed Rate Loan 694,704 613,138 (E) - 11 properties encumbered by mortgages 305,363 845,100 $ 4,244,501 $ 5,091,811 (2) Excludes value of real estate intangibles. (3) Depreciation on buildings and improvements is provided for periods ranging up to 40 years and on equipment up to seven years . (4) The total aggregate cost for U.S. federal income tax purposes is approximately $ 5,720,412 . S-15 Table of Contents Analysis of the carrying amount of real estate properties and accumulated depreciation: Real Estate Accumulated Properties Depreciation Balance at December 31, 2019 $ 2,335,964 $ ( 131,468 ) Additions 109,020 ( 43,821 ) Disposals ( 635,914 ) 33,883 Balance at December 31, 2020 1,809,070 ( 141,406 ) Additions 129,724 ( 32,389 ) Disposals ( 189,961 ) 6,305 Balance at December 31, 2021 1,748,833 ( 167,490 ) Additions 3,520,563 ( 106,236 ) Disposals ( 259 ) 259 Impairments ( 93,029 ) — Balance at December 31, 2022 $ 5,176,108 $ ( 273,467 ) S-16 Table of Contents SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. INDUSTRIAL LOGISTICS PROPERTIES TRUST By: /s/ Yael Duffy Yael Duffy President and Chief Operating Officer Dated: February 14, 2023 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature Title Date /s/ Yael Duffy President and Chief Operating Officer February 14, 2023 Yael Duffy /s/ Brian E. Donley Chief Financial Officer and Treasurer (principal financial February 14, 2023 Brian E. Donley officer and principal accounting officer) /s/ Adam D. Portnoy Managing Trustee February 14, 2023 Adam D. Portnoy /s/ Matthew P. Jordan Managing Trustee February 14, 2023 Matthew P. Jordan /s/ Bruce M. Gans, M.D. Independent Trustee February 14, 2023 Bruce M. Gans, M.D. /s/ Lisa Harris Jones Independent Trustee February 14, 2023 Lisa Harris Jones /s/ Joseph L. Morea Independent Trustee February 14, 2023 Joseph L. Morea /s/ Kevin C. Phelan Independent Trustee February 14, 2023 Kevin C. Phelan /s/ June S. Youngs Independent Trustee February 14, 2023 June S. Youngs