Industrial Logistics Properties Trust (NASDAQ: ILPT) announced it has priced $1.62 billion of five-year, interest-only fixed rate mortgage financing for its consolidated joint venture, Mountain Industrial REIT LLC, at an interest rate of 5.71%.

The financing proceeds will be used to refinance Mountain JV's $1.4 billion of floating rate mortgage debt due in March 2027 and $0.2 billion of fixed rate amortizing mortgage debt. The new financing will be secured by the same 90 industrial properties previously pledged as collateral for the debt being refinanced.

The closing of the financing is expected to occur on or about May 8, 2026.

"With this refinancing, Mountain JV will unlock nearly $20 million in annual cash flow by eliminating its amortizing debt," said Tiffany Sy, Chief Financial Officer and Treasurer of ILPT. "All of ILPT's consolidated debt will be fixed rate, limiting our exposure to market interest rate volatility."

The financing is being led by Wells Fargo Bank, National Association, and is provided together with Citi Real Estate Funding Inc., Bank of America N.A., UBS AG New York Branch, Morgan Stanley Bank N.A., and Bank of Montreal.

As of December 31, 2025, ILPT's portfolio consisted of 409 properties containing approximately 59.6 million rentable square feet located in 39 states. Approximately 76% of ILPT's annualized rental revenues are derived from investment grade tenants, tenants that are subsidiaries of investment grade rated entities or Hawaii land leases.

ILPT is managed by The RMR Group (NASDAQ: RMR), which has over $37 billion in assets under management as of December 31, 2025.