ILPT’s primary business objectives are to own and lease a diversified portfolio of industrial and logistics properties and to pay a consistent cash distribution to our common shareholders.

Internal Growth Through Rent Resets And Fixed Increases In Our Current Leases

Many of the leases for our Hawaii properties provide that the rents we receive are reset to fair market value periodically during the lease terms. Since our predecessor began acquiring our Hawaii properties in December 2003, our Hawaii properties have remained at least 97% leased, and the periodic rent resets and lease expirations have resulted in significant rent increases. Because of the limited availability of land suitable for industrial uses that might compete with our Hawaii properties, we believe that our Hawaii properties offer the potential for rent growth as a result of periodic rent resets and new leasing following current lease expirations.

In addition to the internal rent growth which may result from our rent resets and lease expirations at our Hawaii properties, a majority of the leases at our mainland properties and certain leases at our Hawaii properties include periodic set dollar amount or percentage increases that raise the cash rent payable to us.

External Growth Through Acquisitions

We believe the U.S. retail industry is experiencing a major shift away from stores and shopping centers to e-commerce sales platforms and that this change is causing increasing demand for industrial and logistics real estate. We intend to grow our business by investing primarily in industrial and logistics properties that serve these growing needs of e-commerce.

We are focused on acquiring properties that are of strategic importance to our tenants’ businesses, such as build to suit properties, strategic distribution hubs or other properties in which tenants have invested significant amounts of capital. We target occupied properties, where tenants are financially responsible for all, or substantially all, increases in property level operating expenses.