By Sarina Isaacs
Shares of Industrial Logistics Properties Trust climbed after the real estate investment trust said it would save on a significant chunk of interest expenses by refinancing its debt.
The stock was recently up 23% at $4.21, bringing shares well into positive territory for the year.
The Newton, Mass., REIT said it priced $1.16 billion of five-year, interest-only fixed-rate mortgage financing that, together with $75 million of cash on hand, would be used to repay $1.235 billion of floating-rate mortgage debt.
Finance Chief Tiffany Sy said the refinancing will generate annual cash savings of about $8.5 million, or 13 cents per share, by trimming Industrial Logistics' debt levels and locking in a lower fixed-interest rate, as well as eliminating the need to purchase future interest-rate caps on this tranche of debt.
Industrial Logistics, which owns and leases distribution and logistics properties, said the new financing is secured by a portfolio of 101 industrial properties located on the U.S. mainland and Hawaii.
The financing is expected to close on or about June 26.
Write to Sarina Isaacs at sarina.isaacs@wsj.com
(END) Dow Jones Newswires
June 16, 2025 11:46 ET (15:46 GMT)
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